Postponement of trading in funds shares

On March 20, Simplicity has decided to postpone trading of shares in all funds that invest in corporate bonds.

The reason for the decision is that the spread of Covid 19 – the new corona virus – has created extreme uncertainty and volatility in financial markets and the pricing of corporate bonds is currently uncertain. The decision to postpone trading is based on the fact that we take responsibility for the fund’s unit owners by ensuring an accurate valuation of the assets in the funds. Having the funds open for trading could create disadvantages for the unit owners in the funds as the valuation of underlying assets cannot be ensured in the way that is done under normal circumstances.

The management of the funds is not affected and continues as normal.

The funds affected by the postponement are all share classes in Simplicity Likviditet, Simplicity Företagsobligationer and Simplicity Global Corporate Bond.

Background to the decision to postpone trading

On Thursday, March 19, the Swedish Financial Supervisory Authority, Finansinspektionen, held a dialogue meeting with representatives from Swedish fund companies where they announced that many of the companies had expressed problems with the stressed situation in the fixed income market and in particular in the corporate bond market.

Link to the Swedish Financial Supervisory Authority’s dialogue meeting with the fund companies on 2020-03-19: https://www.fi.se/sv/publicerat/nyheter/2020/dialogmote-med-fondbolag/

On Friday March 20, a number of other fund companies announced that, they had postponed trading in some funds due to challenges of pricing corporate bonds.

In the interests of all unit owners, we have also come to the conclusion that under these extreme market conditions it is associated with to much uncertainty to value holdings in the funds in accordance with the legal requirements.

What does postponement mean for You as a unit owner?

This means that trading in Simplicity Likviditet, Simplicity Företagsobligationer and Simplicity Global Corporate Bond will be postponed, from March 20, 2020 until further notice. The funds will be closed for subscriptions and redemptions until the funds opens up for trading again. Orders placed after the cut off time at 14:00 on March 19, 2020 will be executed when the funds open for trading again.

Information on when the funds will be open for trading again will be provided on Simplicity’s website and to unit owners in the relevant funds.

If you have any questions, please contact us at kundservice@simplicity.se or by phone on +46 340 – 21 95 00.

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