the corona of the crisis caused by the exceptionally swaying in the financial markets has also been hit by investment fund activities.
in finland, too, some fund savers have benefited to follow the market’s roller-coaster deprived of the opportunity to buy or sell shares of certain funds.
for Example, Danske Bank (switch to another service) and Aktia have been forced to suspend certain of the investment funds subscriptions and redemptions. The situation has touched a particular fund that are invested in the interest rate market.
the financial institutions supervisory the financial supervisory authority according to the trading suspension of the market situation is very rare.
the corona virus with the market situation has been in some places chaotic.
office manager Eeva Granskog told me, that the trading suspension is due to the fact that the fund companies have not been able to determine the fund value of the units reliably.
in a Confused situation, it is not have enough information, for example, the actual trade of the price level.
in This case, the law provides the fund companies the possibility to suspend trading temporarily.
So that the fund can be made to the labelling and redemptions, the value of the fund should be able to define in a reliable manner. If this can not be done, then the funds should be put on the subscription and redemption of the stick, said Granskog.
Granskog stresses that trading, if disrupted, to protect the fund owners and ensure equal treatment for all.
the Gigantic stimulus package to calm the situation
the Situation was at its worst late last week, when the corona of a pandemic, progress of caused a mass panic among investors.
At the time of a maximum of about 20 investment funds in Finland was caught with a confused market situation, says Granskog.
central banks and states, the gigantic stimulus package of the situation in the financial markets have calmed down a bit.
on Thursday at noon in Finland was only 5 to 10 investment funds to catch up, find out Fsa information. For example, Danske Bank so far, stick to the funds is listed here (switch to another service).
Regular saver might consider whether your money is safe, if the fund is suspended. Granskog stress that the subscriptions and redemptions suspension has nothing to do with whether your money is safe.
It is related to the fact that the fund’s assets will be the value specified reliably, which aim is to protect all of the shares of the owners and treat them equally. The money is there safe and sound, Granskog said.
Temporarily closed the fund have a small minority of the Finnish fund in the provision. The Bank of finland according to the beginning of the year, Finland had offered to savers and investors with more than 500 different types of investment fund.
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