New PPM Platform Rules Bring Down Sharp Europe

Stockholm (HedgeNordic) – Europe-focused hedge fund Atlant Sharp Europe will merge into equity fund Viking Fonder Sverige in mid-December after the Swedish Pensions Agency published new rules for funds seeking distribution via Sweden’s premium pension system (PPM). With one of the new regulatory requirements demanding funds to have at least SEK 500 million in assets from investors outside the PPM system, Atlant Sharp Europe’s heavy reliance on PPM capital means the fund will no longer be allowed to access the PPM platform.

Coming into force on the first day of November, the new rules announced by the Swedish Pensions Agency – the operator of the PPM platform – also stipulate a minimum track record of three years for each fund and their fund managers, as well as minimum mandatory requirements for sustainability practices. The funds which fail to meet the new requirements will be taken off the PPM platform in 2019, according to the Swedish Pensions Agency, with the deadline for applications set for December 28, 2018. Since Atlant Sharp Europe oversees SEK 40.31 million in assets under management through its A share class and SEK 2.14 million through the B share class, the fund will not be able to use the PPM platform to reach pension savers in Sweden.

Following the approval of the Finansinspektionen, Atlant Sharp Europe, a hedge fund employing equity-related derivative strategies on the EuroStoxx50 Index, will be merged into Viking Fonder Sverige on December 20, 2018. Investors holding units in Atlant Sharp Europe will receive units in the Sweden-focused equity fund managed by asset manager Viking Fonder corresponding to the value of their existing units. Unit holders in Atlant Fonder’s Sharp Europe can also sell their units by December 12, 2018.

 

Picture © Aysezgicmeli—shutterstock

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Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index (NHX), as well as being a novice columnist covering the Nordic hedge fund industry for HedgeNordic. Prior to joining HedgeNordic, Eugeniu had served as a columnist for a U.S. journal covering insider trading activity, activist campaigns and hedge fund moves. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018.

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