July 2010
 

Short-term trading suspension in investment fund’s Danish bond funds

Wednesday 27 January investment fund requested trading suspension in most of the Danish bond divisions. The background was the newly introduced bill, which repeals the tax-exemption on sanctioned bonds. The trading suspension entailed investors to neither buy nor sell fund shares in the affected bond funds until Monday 1 February.

”The investment industry was working persistently in order to survey the new regulations, which came like a bolt from the blue. The great advantage of fund shares is that Danes can invest their money or get their money back at any time, and the special Danish way of being listed entails better prices. Accordingly, everybody has a mutual interest in trading suspensions being as short-term as possible. However, it was a necessary time-out in order for us to safeguard the interests of the existing investors,” says Jens Jørgen Holm Møller, Managing Director in The Federation of Danish Investment Associations (IFR).