SEB Fund 5 – SEB Danish Mortgage Bond Fund changes July 2017
Kindly note that the changes in SEB Fund 5 – SEB Danish Mortgage Bond Fund described below will take effect as of 11 July 2017.
Summary of the main fund changes:
- Financial instruments: investments in warrants and credit default swaps will no longer be allowed. Note that the fund currently does not invest in any such instruments.
- Credit ratings for bonds: the fund will only be allowed to invest in bonds whose issuers have credit ratings ranging from AAA to a minimum of BBB- (investment grade) on Standard & Poor's scale or the equivalent.
- Risk management process: the method we use to measure the fund's level of risk will change from the value at risk method to the commitment method. We decided to make this change because we regard the commitment method to be better suited to calculating the fund's global exposure.
In addition to the changes described above, we would like to inform you that the index used for the calculation of performance fee when applicable, the Effas Danish Government > 1 year index, has ceased to be published. We have replaced it with a comparable alternative, the Bloomberg Denmark Sovereign Bond Index. Consequently, the fund’s return will be compared to a composite index consisting of Nykredit Danish Mortgage Bond (75%) and Bloomberg Denmark Sovereign Bond Index (25%) when calculating excess performance.
