15 Jul 2020 11:08

SEB Fund 3 - SEB Sustainability Global Index Fund merges into SEB Fund 3 -SEB Ethical Global Index Fund in August 2020

We wish to inform investors that we plan to merge SEB Fund 3 - SEB Sustainability Global Index Fund, the merging sub fund, into SEB Fund 3 - SEB Ethical Global Index Fund, the receiving sub fund. This is a merger by absorption and takes effect as of 21 August 2020.

We will also adjust SEB Fund 3 - SEB Ethical Global Index Fund’s investment objective and policy and change the name to SEB Fund 3 - SEB Sustainable Global Exposure Fund to reflect this change. 

  • The sub-fund investment objective and policy moves from “index-replicating” to “benchmark-referencing”, meaning that the sub-funds will be still passively managed with the aim, however, to create a return that does not replicate but is as close as possible to its benchmark. The Sub-Funds return will deviate from the benchmark since it excludes companies that do not comply with the Management Company’s highest level of exclusion criteria based on its sustainability policy (the “Sustainability Policy”). 
  • Accordingly, all references to the typical features of an index-replicating fund are removed i.e. tracking error mechanism, physical and synthetic replicating strategy, risks involved in index-replicating funds; 
  • The sub fund will reference MSCI All Country World Index. Previously it referenced MSCI ACWI Socially Responsible Index.
  • The sub-fund may no longer invest in transferable securities and money market instruments issued or guaranteed by any Member State of the EU, its local authorities, or public international bodies to which one or more of such Member States belong, or by any other State of the OECD, G20, Singapore or Hong Kong.

See the link below for more information about the name change. 

We consider a merger to be in the best interest of unitholders in the merging sub fund and the receiving sub fund. As a unitholder of the merging or receiving sub fund, it is important to know how this merger affects you. We recommend that you read the attached merger notice and Key Investor Information Document carefully.

The absorption will enable the fund management team to offer a streamlined product within the equity space thus providing unitholders in the merging and receiving sub funds with the opportunity to invest in an attractive strategy in the same product category. Additionally, we believe it will be possible to manage the fund with greater efficiency after the merger.

The merging sub fund is an index tracking fund while the receiving sub fund aims to create a return as close as possible to its benchmark. Other key features of the merging sub fund and the receiving sub fund are substantially equivalent, including but not limited to, base currency and applicable charges. Both sub funds are passively managed.

The merger has the following effect as of 21 August 2020 

  • All assets and liabilities of the merging sub fund transferred to the receiving sub fund
  • The merging sub fund and all its units cease to exist
  • Unitholders in the merging sub fund become unitholders of the receiving sub fund

You are not required to act due to these changes, but you should be familiar with them. If you do not wish to remain invested in any of the sub funds, you may redeem your units free of charge by 14 August 2020 for the merging sub fund, and 19 August 2020 for the receiving sub fund.                                                 

See the link below for a detailed description of the merger as well as a link to the Key Investor Information Document for the receiving sub fund. 

If you would like more information about the merger, kindly contact our registered office. Product documentation for the fund, including the changes describe here, will be available as of 21 August 2020 on www.sebgroup.lu and from our registered office.

Kindly see the links below for further information:

Notices for SEB Fund 3 - SEB Ethical Global Index Fund name and index changes

KIID SEB Sustainable Global Exposure Fund C (USD)

Detailed merger information

 

Sincerely,

SEB Investment Management AB, Luxembourg branch

 

Past performance does not guarantee future performance. The value of investment funds and other financial instruments may rise as well as fall and there is no guarantee you will recover your original investment. Key investor information documents and prospectuses are available on www.sebgroup.lu/funds.