To the fund unit holders of Mutual Fund LocalTapiola Inflation Bond and Mutual Fund LocalTapiola Bond
Mutual Fund LocalTapiola Inflation Bond will merge into Mutual Fund LocalTapiola Bond on 8 December 2026. The merger does not require any action on the part of the unit holders.
The Finnish Financial Supervisory Authority has approved the merger plan and granted permission for the merger of the funds. The merger will become effective on 8 December 2026.
Background to and reasons behind the merger
The merger is part of the development of the fund range.
Both the merging fund and the receiving fund are managed by Seligson & Co Fund Management Company Ltd.
Impact of the merger on the unit holders
The merger does not cause costs or tax consequences for unit holders liable to tax in Finland and does not affect the original acquisition value of the units or the length of the holding period. The necessary changes to the investment portfolio of the merging investment fund will be made prior to the merger. The bank account of Mutual Fund LocalTapiola Inflation Bond will be closed after the merger, and no more subscriptions can be paid to the account. Subscriptions to Mutual Fund LocalTapiola Bond can be made as usual.
Effects of the merger on the unit holders of Mutual Fund LocalTapiola Bond:
For the fund unit holders of Mutual Fund LocalTapiola Bond, the merger will mean an increase in the fund’s capital by approximately EUR 50.3 million euro and an increase in the number of fund unit holders by approximately 154 unit holders (estimate based on the situation on 31 August 2026).
As part of the merger, the investment universe of Mutual Fund LocalTapiola Bond will be expanded so that it invests in inflation-linked debt securities in accordance with the portfolio management’s view; this is expected to improve Mutual Fund LocalTapiola Bond’s expected return and reduce risk.
In connection with the merger, the accrued income and other balance sheet items of Mutual Fund LocalTapiola Inflation Bond will be combined with the accrued income and other corresponding balance sheet items of Mutual Fund LocalTapiola Bond.
Effects of the merger on the unit holders of Mutual Fund LocalTapiola Inflation Bond:
In connection with the merger, the fund units of the unit holders of Mutual Fund LocalTapiola Inflation Bond will be converted into units of Mutual Fund LocalTapiola Bond in a proportion corresponding to their holdings no later than on the banking day following the merger date. In the merger, the unit holders of Mutual Fund LocalTapiola Inflation Bond will receive units of Mutual Fund LocalTapiola Bond in an amount of EUR equal to the value of their holdings. The exchange ratio will be calculated using the values of the fund units on the value calculation date of 8 December 2026. No cash compensation will be paid.
A small amount of transaction costs may arise from adjustments to the fund’s holdings before the merger.
The assets and liabilities of Mutual Fund LocalTapiola Inflation Bond will be transferred to Mutual Fund LocalTapiola Bond. Mutual Fund LocalTapiola Inflation Bond will dissolve and cease to exist, and its unit holders will become unit holders of Mutual Fund LocalTapiola Bond. As of 8 December 2026, the unit holders of Mutual Fund LocalTapiola Inflation Bond may exercise their rights as unit holders of Mutual Fund LocalTapiola Bond.
The bank account of Mutual Fund LocalTapiola Inflation Bond will be closed after the merger, and no more subscriptions can be paid to the account. After the termination of the account, any amounts paid to the account will be refunded by the bank to the payer and a fee for the refund may be charged by your bank.
Comparative data and significant differences of the merging and receiving fund
| Merging fund
LocalTapiola Inflation Bond |
Receiving fund
Mutual Fund LocalTapiola Bond |
|
| Summary of the investment policy | Mutual Fund LocalTapiola Inflation Bond is an active long-term bond fund that invests in euro-denominated fixed-income investments in Europe and other OECD countries. The fund’s objective is to achieve the best possible total return over the long term. The most important factor affecting the return of the fund is the market performance of the underlying bonds. The objective of the fund is to promote environmental and social characteristics, among other characteristics. Investments are mainly in high-quality inflation-linked fixed income instruments issued by states, municipalities and other public entities. At the time of acquisition, the credit rating of investment objects issued or guaranteed by other entities than states must be very high, at least AA- (Standard & Poor’s) or Aa3 (Moody’s). The fund’s investee entities are selected based on the investment approach and analyses of the portfolio management. In accordance with the principles of sustainable investment operations of LocalTapiola Asset Management Group, the fund’s investment decisions take into account sustainability factors affecting the investment objects, the sustainability risks that may affect the value of the investments,
and the principal adverse impacts on sustainability arising from the operations of the investee entities. There is no limit on the term of the fund’s investments, i.e. the time until their final maturity date. The fund’s interest rate risk, or duration, is generally between 7 and 11 years. As a rule, the fund’s investments are inflation linked. If the actual inflation rate differs from the inflation rate set by the fund’s investment objects, it may result in a different return than that of a corresponding investment not hedged against inflation. The fund invests in standardised interest rate derivatives to hedge against adverse changes in the market.
|
Mutual Fund LocalTapiola Bond is an active long-term bond fund that invests in euro-denominated fixed-income investments in Europe and other OECD countries. The fund’s objective is to achieve the best possible total return over the long term. The most important factor affecting the return of the fund is the market performance of the underlying bonds. The objective of the fund is to promote environmental and social characteristics, among other characteristics. The investments are mainly in high-quality bonds issued by states, municipalities and other public entities, as well as in collateralised bonds. At the time of acquisition, the credit rating of investment objects issued or guaranteed by other entities than states must be very high, at least AA- (Standard & Poor’s) or Aa3 (Moody’s). There is no limit on the term of the fund’s investments, i.e. the time until their final maturity date. The fund’s interest rate risk, or duration, is generally between 2 and 10 years. The fund invests in standardised interest rate derivatives to hedge against adverse changes in the market. The fund’s investee entities are selected based on the investment approach and analyses of the portfolio management. In accordance with the principles of sustainable investment operations of LocalTapiola Asset Management Group, the fund’s investment decisions take into account sustainability factors affecting the investee entities, the sustainability risks that may affect the value of the investments, and the principal adverse impacts on sustainability arising from the operations of the investee entities.
|
| Benchmark indices | The fund does not have a benchmark index. | The fund is managed in relation to the iBoxx Euro Sovereigns Eurozone Performance Overall Index. As a rule, the index deviation is minor and the fund’s investments, weightings and risk level may differ somewhat from the composition of the benchmark index. |
| Fund units
and series |
Growth unit (A) | Growth unit (A)
|
| Size of fund (31 August 2026)
|
EUR 50.3 million | EUR 222.7 million
|
| Number of unit holders (31 August 2026) | 154 | 1096 |
| Risk category* (key information document) | 3, which is a medium-low risk category | 3, which is a medium-low risk category |
| Recommended minimum investment period | 3 years | 3 years |
| Determination of the subscription and redemption value date | Payment/order received on the value date no later than 15:00. | Payment/order received on the value date no later than 15:00.
|
| Management fee | 0.54% of the fund’s assets to be collected p.a. | 0.44% of the fund’s assets to be collected p.a. |
| Ongoing costs (key information document) | 0.55% p.a. | 0.45% p.a.
|
| EU Disclosure Regulation (SFDR) | Article 8 | Article 8 |
| Main adverse effects on sustainability factors (PAI) | To be taken into account where applicable and according to the availability of information | To be taken into account where applicable and according to the availability of information |
* The risk category is based on the standard deviation (volatility) of the yield fluctuations over the last five years and may vary.
Redemption before the merger and more information
If you accept the merger, no action is required from you.
If you want to redeem (sell) your fund units or exchange fund units for fund units of another fund before the merger, the redemption or exchange order must be issued no later than 8 December 2026 at 15.00.
No redemption fee will be charged to the unit holder in connection with a redemption or exchange. The redemption proceeds are paid in accordance with the fund’s rules.
Redemption and exchange may result in a capital gain or loss that affects the unit holder’s taxation.
Redemptions or exchanges to another fund can be made via LocalTapiola or Seligson & Co Fund Management Company. The units are redeemable at the service of the company where the units were originally subscribed:
- Seligson & Co Fund Management Company: Oma salkku service or Taskusalkku mobile app or by calling Seligson & Co Customer Service +358 9 6817 8200 (weekdays 9–16).
- LocalTapiola: lahitapiola.fi/en/personal/ or by calling the LocalTapiola Phone Service for Saving and Investment on +358 9 453 8500 (weekdays 9–16).
The current key information document, fund prospectus, fund rules, and information on the sustainability of Mutual Fund LocalTapiola Bond are available on the website of LocalTapiola at lahitapiola.fi/en/personal/ or on the website of Seligson & Co Fund Management Company seligson.fi. We recommend reviewing the above material. The website also contains semi-annual and annual reports for all funds.
The custodian of the funds has carried out an audit of the details of the merger required by the Finnish Act on Common Funds and issued a statement on the audit. The auditor’s report on the merger is available after the merger date from Seligson & Co Fund Management Company at Revontulenkuja 1, 02100 Espoo, or .
Our customer services will help you
For more information on the merger, please refer to your own service channel:
- Seligson & Co Customer Service or by phone +358 9 6817 8200 (weekdays 9–16).
- LocalTapiola Customer Service for Investment 358 9 453 8500 (weekdays 9– 16).
Best regards,
Seligson & Co Fund Management Company Plc
Attachment
The key information document of Mutual Fund LocalTapiola Bond (in Finnish)