Changes to specific SEB Fund 5 sub-funds and overall prospectus changes
On 7 August 2023 changes to specific SEB Fund 5 sub-funds and overall prospectus changes will take effect. The purpose of these changes is to ensure clarity and transparency.
Changes will affect the following sub-funds:
- SEB Fund 5 – SEB Corporate Bond Fund
- SEB Fund 5 – SEB Dynamic Bond Fund
The sub-funds occasionally have exposure in bonds that are below investment grade. To avoid any breach of investment restrictions and to maintain transparency for investors in this regard, a maximum exposure of 15% in contingent convertible bonds is now added in the sub-funds’ supplements. Notwithstanding the maximum level of 15%, going forward, the sub-funds’ investments in contingent convertible bonds are intended to remain between 0-10%.
The sub-funds will maintain low risk levels after the change.
Overall changes in the prospectus
Along with the changes in the sub-funds mentioned above, other non-material changes are also introduced. These are mainly to correct or supplement some factual statements. In particular, the removal of the 2% redemption charge for redemption within six months, the improvement of language in the section of “Coco bonds risk”.
The changes will not have any foreseeable impact on investments in the relevant sub-fund(s) made by the customers. The relevant sub-funds will continue to follow the same investment objective and strategy as previously, and the fund’s fees will not be affected.
In case the customers would like to redeem the holding, free of charge, it should be redeemed by 4 August 2023. Please note that redemption can result in taxation.
Additional information is available on the SEB group webpage.
