The asset management company INVL Asset Management will merge the INVL Global Flexible Subfund into the INVL Baltic Fund. The merger of these funds was approved by the Bank of Lithuania on 11 April and is planned to be completed on 1 June 2016.
"By merging the funds we're optimizing the palette of products we manage, thus concentrating investments in those regions where we've built up the most competence and experience," said Tomas Krakauskas, the head of the Investment Management Department at INVL Asset Management.
On the date of completion of the merger of the funds, the INVL Baltic Fund will assume the assets and liabilities of the INVL Global Flexible Subfund, which will be terminated.
Following the merger, the participants of the INVL Global Flexible Subfund will become participants of the INVL Baltic Fund, and the INVL Global Flexible Subfund will cease operations. Units held by participants of this subfund will be converted free of charge into units of the INVL Baltic Fund, which will continue operating after the merger of the funds.
After merger of the funds, the assets of the INVL Baltic Fund will increase and so will its number of participants. As a result, fixed fees will be distributed among more participants, each of whom will thus bear a smaller part of the fund's management costs.
Investment units of the INVL Baltic Fund are traded on the Nasdaq Vilnius exchange, which provides fund participants with instant liquidity if they want to buy or sell investment units of the fund.
The INVL Baltic Fund currently has assets under management of EUR 1.9 million, while those of the INVL Global Flexible Subfund are EUR 0.4 million. The INVL Baltic Fund in late March earned international rating agency Lipper Leaders' highest marks in the "Total Return" and "Expense" categories for the full period since the fund's inception.
INVL Asset Management is part of Invalda INVL, one of the Baltic region's leading asset management groups. Companies in the group manage pension and mutual funds, alternative investments, individual portfolios, private equity and other financial instruments. They are entrusted by more than 150,000 clients in Lithuania and Latvia as well as international investors with the management of over EUR 300 million of assets.