Baltic Horizon Fund's Strategic Move: Delisting SDRs Explained
Baltic Horizon Fund's Decision to Delist SDRs from Nasdaq Stockholm
Northern Horizon Capital AS has made the significant decision to terminate the Baltic Horizon Fund's Swedish Depositary Receipts (SDR) program. This strategic move will result in the delisting of the SDRs from Nasdaq Stockholm, a change anticipated to take place in the near future.
Understanding the Reasons Behind the Delisting
The decision to delist stems from a marked decline in the number of SDRs held by investors on Nasdaq Stockholm. As of late January, just 7,902,390 SDRs were active, representing a mere 5.5% of all outstanding units. This is in stark contrast to the previous year when over 24 million SDRs were held, accounting for around 25%. This downward trend has prompted the fund manager to reevaluate the necessity of the program.
Impact on Investors and Liquidity Concerns
Furthermore, it has become evident that many Swedish investors have chosen to convert their SDRs into Estonian fund units, which are tradable on Nasdaq Tallinn. This shift has directly impacted liquidity on Nasdaq Stockholm. In fact, during the previous year, only 4.8% of all trades in Baltic Horizon Fund units were executed on that platform. In total, over 15 million units changed hands across various exchanges, indicating a shift in focus among investors.
The Strategic Framework for Future Operations
Given these circumstances, the fund manager believes that discontinuing the SDR program and secondary listing on Nasdaq Stockholm is a prudent course of action. Not only does this help streamline operations, but it also offers a pathway to reduce the overall cost base of the fund. This decision is seen as being in the best interest of investors, allowing them to focus on more liquid and accessible trading platforms.
Future Steps for SDR Holders
Northern Horizon Capital AS is committed to ensuring a smooth transition for SDR holders. Detailed plans will be developed in collaboration with Swedish partners and advisors, providing SDR holders the opportunity to convert their receipts to fund units held in Nasdaq CSD. Adequate time will be allocated for investors to make informed decisions regarding their investments.
Clarifying the Delisting Effects
Importantly, while this adjustment will impact SDRs on Nasdaq Stockholm, it will have no adverse effects on investors who hold Baltic Horizon Fund units listed on Nasdaq Tallinn. This continuation ensures that the fund remains accessible to a vast array of investors despite the delisting of the SDRs.
More Information Available for Investors
Investors can expect detailed communications from the fund management team regarding the conversion process and timeline in the weeks to come. This information will provide clarity and guidance during this transition. Stakeholders will have the opportunity to learn about the impacts and the rationale behind these strategic choices.
For additional information, please contact:
Tarmo Karotam
Baltic Horizon Fund Manager
E-mail tarmo.karotam@nh-cap.com
www.baltichorizon.com
Frequently Asked Questions
Why is Baltic Horizon Fund delisting its SDRs from Nasdaq Stockholm?
The delisting is primarily due to a significant decrease in the number of SDRs traded on Stockholm, with many investors opting to convert to Estonian fund units.
What does the delisting mean for existing investors?
Existing investors holding SDRs will have options for conversion to fund units. The fund will provide detailed plans for them to follow.
How will this affect the liquidity of Baltic Horizon Fund units?
While liquidity may decrease in the short term on Nasdaq Stockholm, investments in units listed on Nasdaq Tallinn will remain unaffected.
When can investors expect more information about the conversion process?
Detailed communications regarding the conversion process and timeline will be shared with investors shortly.
Is there a future for Baltic Horizon Fund on Nasdaq Tallinn?
Yes, Baltic Horizon Fund will continue to operate and trade as usual on Nasdaq Tallinn despite the delisting of SDRs from Stockholm.
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