Notice of SEB Fund 1 Umbrella updates
SEB Investment Management AB company has decided to make changes in all sub-funds found within SEB Fund 1 as of 7 September 2022. Unitholders are not required to act due to these changes, but should be familiar with them. If unitholders do not wish to continue investing in the sub-fund(s).
- they may redeem their units free of charge by 6 September 2022 14.00;
- clients who have entered into unit-linked life insurance contract provided by the Estonian branch of SEB Life and Pension Baltic SE may redeem units of SEB Fund 1 free of redemption charge by filing the redemption or switch order by 31 August 2022. Other charges according to the contract price list apply.
SEB Fund 1 umbrella sub-funds: SEB Asset Selection Fund, SEB Europe Equity Fund, SEB Global Climate Opportunity Fund, SEB Europe Exposure Fund, SEB Global Fund, SEB Nordic Equity Fund, SEB Norway Focus Fund, SEB US All Cap.
Following general changes will be made to the prospectus:
- Inclusion of relevant SFDR article for each sub-fund
- Update the section related to performance fees and also include information about the calculation method used for Nordic Equity Fund
- For the sub-funds Nordic Equity Fund, Europe Exposure Fund and Europe Equity Fund, there will be corrected minor inconsistencies concerning the processing time
- Sustainability information update to SEB Investment Management latest standard
- Remove the tracking error estimation from all sub-funds not titled “exposure”, and redesign the wording relating to the benchmark of every sub-fund in order to provide a more accurate description of each sub-fund’s relation to its benchmark
- Clarify that the cash, or equivalent, to be held by a sub-fund is limited to 20% of its net assets
Specific sub-fund changes:
SEB Global Climate Opportunity Fund
In order for the sub-fund to achieve its climate objective it cannot be constrained by its benchmark. Although the benchmark will remain the same, it will not be used for portfolio reference purposes.
Specific changes of SEB US All Cap Fund and SEB Nordic Equity Fund is described in the table below:
| Criteria | SEB US All Cap | SEB Nordic Equity Fund |
|---|---|---|
| Investment manager | Aristotle Atlantic Partners, LLC | Will remain the same, SEB Investment Management AB |
| Name change | SEB US Focus Core Fund | SEB Nordic Future Opportunity Fund |
| Strategy | SEB US Focus Core Fund will continue to be fundamentally driven while focusing on core companies. The aim will be to create a focused portfolio encompassing mainly large, core companies. | Will remain the same, the investment team actively manages the fund’s holdings using a fundamental strategy to select companies that appear to offer the best potential for long-term capital growth. |
| Sustainability | The new investment manager will enable the Sub-Fund to be managed in a more sustainable fashion, and the Sub-Fund will thus be classified as promoting ESG factors within the meaning of Article 8 according to SFDR. Previously it was categorised as Article 6. | A sustainable investment to create a positive environmental and social impact. The Sub-Fund will be having sustainable investment as its objective and thus it will be categorised as Article 9 of SFDR. Previously it was categorised as Article 8. |
| Benchmark | The new benchmark will be the Russell 1000 Net Return Index, which tracks the performance of US companies | The benchmark will now be used for both performance comparison and performance fee calculation. Furthermore, the wording in the prospectus concerning the benchmark of the Sub-Fund has been amended to provide a more accurate description of how the Sub-Fund is managed in relation to the benchmark. |
| Fee structure | Will remain the same, information about the fees is available on fund manager webpage | Inclusion of a maximum performance fee of 15% of the returns above the VINX Benchmark Cap Net Return Index and lowering of the management fee for all unit-classes. A performance fee will be charged on unit classes, yet only when a unit class of a sub-fund ouperforms the “hurdle value” of the benchmark by a certain degree. The management fee will decrease for SEB Nordic Equity Fund C to 1.20 and for Nordic Equity Fund UC 0.60 |
In addition, due to the SEB Nordic Equity Fund’s new investment objective, it may be necessary to rebalance the portfolio. This could lead to transaction costs for the Sub-Fund.
Detailed information is available and upon request at the registered office of the Management Company. Updated product documentation for the sub-funds, including the prospectus, is available as of 7 September 2022 on www.sebgroup.lu and from our registered office.
