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Past performance is not indicative of future results. The value of fund units/shares can rise as well as fall and you may not get back the amount you invested. Funds with a risk level of 5-7 according to the fund’s key information document (KID) can both decrease and increase significantly in value. Fund information, including the KID, prospectus, and sustainability-related disclosures can be found at Our Luxembourg funds.
If you are invested in any of the affected funds, no action is required on your part. The value of your fund units remains unchanged. However, it is important you are aware of the upcoming changes.
At SEB Funds AB, we will be introducing the option for fund managers to engage in securities lending across several Sweden-domiciled funds. This allows funds to generate additional returns for unitholders without altering their market exposure.
Under specific conditions, fund managers may also reinvest cash collateral received from securities lending. Such reinvestments will only be made if deemed in the best interests of investors. Typically, these are placed in high-quality government bonds. Reinvesting collateral can introduce leverage into a fund – that is, increase its market exposure beyond 100 per cent – though this does not change the fund’s overall risk profile.
The change has been approved by the Swedish Financial Supervisory Authority (Finansinspektionen) and will take effect from 1 September 2025.
Securities lending is when a fund temporarily lends out securities, such as shares or bonds, to another party in exchange for a fee. This generates additional income for the fund, which can support higher returns for investors.
This change introduces the option for fund managers to use securities lending. If this option is utilised, it will be reflected in the fund’s prospectus.
|
Fund name & unit class |
ISIN |
|
SEB Sverigefond |
SE0000775298 |
|
SEB Sverigefond Småbolag Chans/Risk C |
SE0021770583 |
More information
Updated product documentation will be available on the fund list at seb.se/fondlistan and through our branch offices once the changes come into effect.
Lending shares allows the funds to generate additional returns for unitholders without changing their market exposure.
SEB AB is currently the sole counterparty to the fund. SEB AB, in turn, lends the shares to various parties that meet its criteria for approved counterparties.
A counterparty may borrow shares, for example, if they have not yet received the shares in one of their securities transactions. Alternatively, they may wish to sell the borrowed shares with the expectation of buying them back at a lower price before returning them to the fund.
The fund can sell shares even while they are on loan. In such cases, the shares are recalled in time for the sale. Alternatively, the counterparty, SEB AB, may return the shares from its own holdings.
The fund still receives amounts equivalent to the dividends from the loaned shares on the record date.
The fund refrains from lending shares in companies where it intends to engage in active ownership. Alternatively, it can recall loaned shares well in advance of a general meeting.
As the counterparty, SEB AB bears the risk if the borrower is unable to return the shares. If needed, SEB AB may use its own holdings or borrow shares from another market counterparty to return them to the fund.
The borrower must provide collateral equivalent to at least 100% of the value of the loaned shares. This collateral is adjusted daily to ensure it reflects the current market value of the shares.