Liquidation of the Nektar fund
Nektar Asset Management AB has decided to liquidate the Nektar fund. The decision is based on the fact that the market environment for the fund’s strategy continues to be challenging and that the fund's largest investor, Brummer Multi-Strategy, will be redeeming its investment in Nektar by 31 May 2019.
The fund started in 1998 and has yielded strong absolute returns with an average annual return of 9.1 per cent since inception. The fund's total assets under management as of 31 March 2019 amounted to approximately SEK 10 billion. After receiving information that the fund's largest shareholder will be redeeming all its units, the board has decided to discontinue the management of the fund. Nektar’s portfolio has already been largely de-risked. Fixed management fee is being charged until the portfolio is completely liquidated, although not beyond 15 May 2019 inclusive.
"The decision is ultimately a consequence of a prolonged challenging market environment for the Fund. Nektar’s 21 years in operation have been an inspiring journey and this was an emotional, but right decision", comments Patrik Olsson, Chairman and CIO at Nektar Asset Management AB.
BMS’ redemption will take place on 31 May 2019. Investors will be able to decide whether they want to:
- await the merger (see below) with Brummer Multi-Strategy or
- redeem their fund units in Nektar
Investors opting to wait may redeem their units at each month-end until the merger takes place.
MERGER WITH BRUMMER MULTI-STRATEGY
Nektar Asset Management AB has, together with Brummer Multi-Strategy AB, decided to apply for a merger between the Nektar fund and the fund Brummer Multi-Strategy (BMS). Upon a merger, the investors’ acquisition value of the holding in Nektar will transfer to BMS, so no taxable profit or loss will be realised as a result. However, a merger requires the approval of the Swedish Financial Supervisory Authority and may take place no earlier than three months after the Authority has given its permission for the merger. During the administration time, Nektar will have very limited market exposure. Investors who do not wish to participate in the merger have the opportunity to redeem their holdings according to the instructions below.
REDEMPTION
Investors with direct investment in the fund need to fill in a redemption form which must be received by Citco by 24 May 2019. The redemption form is available at brummer.se or can be ordered from Investor Relations. Investors who wish to await the merger do not need to take any action but to leave their holdings in Nektar until further information is available.
CONTACT INFORMATION
Please contact Investor Relations by phone at +46 8-566 214 80 or info@brummer.se for enquiries related to the merger or redemption.
For media related enquiries, please contact Johanna Hoffstedt at +46 739 874 311 or media@brummer.se.
Finally, we at Nektar Asset Management AB would like to thank you for your confidence and patience over recent years.
Gunnar Wiljander
CEO
Nektar Asset Management AB
Patrik Olsson
CIO and Chairman of the Board
Nektar Asset Management AB