Both funds are actively managed and invest primarily in the fixed income area. SEB Trendsystem Renten invests mainly in EU countries and SEB Green Bond Fund invests globally.
SEB Trendsystem Renten, the merging fund, has experienced a reduction in investor interest over a longer period. This has led to a substantial reduction of assets under management which makes it difficult to run the fund efficiently and satisfactorily. In these circumstances, we believe a merger is the best course of action for all parties.
SEB Green Bond Fund
SEB Green Bond Fund offers the opportunity to invest in green bonds with a sustainable
profile that benefit the environment and the climate in areas such as wind farms, water
purification plants, clean transportation, sustainable agriculture, and waste management.
Morningstar gives SEB Green Bond Fund the sustainability rating of five globes, which is the highest possible rating. At least 80% of the bonds in the fund’s portfolio are green bonds. This can vary from month to month. In April 2021, for example, the fund’s assets included 94% green bonds, and 45% of the projects in which the fund has invested focus on renewable energy. SEB Green Bond Fund focuses on green projects that help reduce greenhouse gas emissions and contribute to efficient energy use and clean transport – both of which play a significant role in the transition to a more sustainable economy.
How the merger affects investors
This is a merger by absorption whereby the merging fund's holdings - assets and liabilities - will be transferred to the receiving fund and SEB Trendsystem Renten will cease to exist. In connection with the transfer of the merging fund’s holdings to the receiving fund, it may be necessary for the portfolio manager to rebalance the receiving fund’s portfolio due to the higher level of sustainability followed by the receiving fund. This can incur transaction costs.
SEB Investment Management AB bears any costs related to legal, advisory and administration costs that arise in relation to the merger.
15:30 CET on 3 September 2021: The merging fund closes for transactions.
10 September 2021: The net asset value for the merging fund is calculated, the exchange ratio for the merging fund is calculated and the merger takes effect.
Investors in SEB Trendsystem Renten
If you remain invested in the merging fund, you will automatically receive shares in the receiving fund. If you do not wish to do this, cut off time 15:30 CET on 3 September 2021 is the deadline to redeem your units before the merger. The merging fund closes for trading. No subscriptions, redemptions or transfers are accepted after this time. Note that redemption can result in taxation. Kindly consult your financial advisor.
Investors in SEB Green Bond Fund
The merger will not have any foreseeable impact on your investment in the receiving fund. SEB Green Bond Fund continues to follow the same investment objective and strategy. The fund’s fees remain the same.
You are not required to act, but we think you as an investor should know about the merger. If you do not wish to remain invested in SEB Green Bond Fund, 15:30 CET on 3 September 2021 is the deadline for redeeming your units free of charge. Redemption can result in taxation. Kindly consult your financial advisor for more information.
Merging fund into receiving fund, per unit class
Unitholders invested in SEB Trendsystem Renten at the time of the merger will automatically receive corresponding units in the receiving fund:
SEB Trendsystem Renten
|SEB Green Bond Fund|
BI (EUR), LU0116292888BII (EUR), LU0170040694
D (EUR), LU0041441808D (EUR), LU0041441808
Comparison of the two funds
See the attached table which aims to help investors understand the differences and similarities between the merging funds. The information in the table is taken directly from the funds’ key investor information documents and prospectus.
Kindly see the key investor information document for the receiving fund, included, and the summarised comparison of the funds, below. Product documentation for the funds is available on www.sebgroup.lu.
The depositary statement and the auditor report will be available, free of charge, on request from our registered office, 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 sebgroup.lu/funds.