Switch in Carve units permitted

Stockholm (HedgeNordic) – Brummer & Parnters this week announced the possibility of unit holders in Carve (Cross Asset Relative Value Equity Focus) to switch between Carve 1 to Carve 2 and vice versa. This follows an approval from the Swedish Financial Supervisory Authority, FI. “Since the funds have different conditions  the purpose of the amendment is to give unitholders the opportunity to switch to the fund whose terms and conditions are most consistent with the shareholder requirements.”, Brummer & Partners writes on their webpage.

The initial holding period is three years, for unit holders wanting to switch from Carve 1 to Carve 2. If there is no switch completed by the end of the three year period, there will be another period of three years before switching is allowed.

The first date for switching from Carve 2 to Carve 1 will be December 31, 2015.  Unit holders will have the possibility to switch only a part of, or the entire holdings. The funds’ minimum investment requirements will however remain. After that switching of units will only allowed when advised by the investment manager.

Brummer & Partners launched  with both Carve 1 and 2 in mid November 2012 . Carve, managed by the former Zenit-managers Per Josefsson, Peter Thelin and Bo Börtmark, aims  to exploits the differences in the pricing of different types of assets within a company’s capital structure and, for example, investing in both equities and credit instruments of a company. (Cross Asset Relative Value Equity Focus)

Carve closed for new subscriptions in the third quarter of 2013 following substantial inflows to consolidate before Carve 2 re-opened for subscriptions in June 2014.

Early Estimates for Carve 1 indicate a loss of 3,3% in September (-0,9%YTD est.) while Carve 2 indicate a loss of 4% in NAV for September 2015 (-2%YTD est.), compounding 31% since inception. Assets in Carve 1 were 5,3 billion SEK and 4 billion SEK  for Carve 2 respectively as of August 31 2015.


Picture: (c) everything-possible—shutterstock.com


About Author

Kamran has been working in the financial industry since 1994 and has specialized on client relations and marketing. Having worked with retail clients in asset management and brokerage the first ten years of his career for major European banks, he joined a CTA / Managed Futures fund with 1,5 Billion USD under management where he was responsible for sales, client relations and operations in the BeNeLux and Nordic countries. Kamran joined a multi-family office managing their own fund of hedgefunds with 400 million USD AuM in 2009. Kamran has worked and lived in Vienna, Frankfurt, Amsterdam and Stockholm. Born in 1974, Kamran today again lives in Vienna, Austria.

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