Updates to SEB Fund 3

We are making changes to SEB Fund 3, including two amendments to SEB Fund 3 – SEB Global Exposure Fund (the “Sub-Fund”): a change to its benchmark index and an update of its name. These changes will take effect on 19 December 2025.

 You are not required to take any action as a result of these changes, and the value of your units in the Sub-Fund will remain unaffected. However, it is important that you are aware of the updates.

Benchmark index change

The Sub-Fund is passively managed and aims to achieve a performance and risk profile consistent with its benchmark index. The current benchmark, MSCI All County World Index, will be replaced by MSCI ACWI ex client defined securities, an MSCI custom index based on the stock exclusions defined by SEB (the “New Index”). 

The New Index is derived from the MSCI ACWI Index and includes global equities remaining after excluding companies that, in the Management Company’s assessment, do not meet the sustainability standards set out in its sustainability policy. These standards are based on international norms and include exclusions on environmental, social and governance (ESG) grounds. The Management Company identifies issuers that fail to meet these criteria and instructs the index provider to remove them from the MSCI ACWI universe; the securities that remain constitute the New Index. Current exclusion criteria are detailed in the Management Company’s sustainability policy.

The New Index incorporates SEB AM’s sustainability exclusions directly into the benchmark, aligning the benchmark and portfolio methodologies. This alignment generally reduces tracking error, provides a more accurate reflection of the Sub-Fund’s investable universe, and enhances comparability in performance and risk reporting. We view this as a positive with no adverse effect on investors. This change will not have any impact on the risk profile of the Sub-Fund.

Some portfolio adjustments may be made to reflect the composition of the New Index. However, no significant reallocation is anticipated, and any changes will be limited in scope. These adjustments are expected to involve highly liquid securities, and transaction costs are not expected to have a material impact on investors.

Name change

The Sub-Fund’s name will change from SEB Fund 3 – SEB Global Exposure Fund to SEB Fund 3 – SEB Global All Countries Exposure. The new name more clearly reflects the Sub-Fund’s exposure to both developed and emerging markets.

Other updates to SEB Fund 3

• Aggregate management fee cap when investing in other funds:
  For the following Sub-Funds: SEB Mixed Fund 30, SEB Mixed Fund 50, SEB Mixed Fund 80, SEB Pension Fund, SEB Pension Fund Plus and SEB Pension Fund Extra, the prospectus will clarify that, where a Sub-Fund invests in another UCI, the total management fee charged at the level of the Sub-Fund together with the fee charged at the level of the underlying fund shall not, in aggregate, exceed 3% per annum.
• SFDR annexes, wording update:
  In the SFDR annexes for all Sub-Funds, the specific numbered reference to “1.5 °C” target will be removed. A general reference to the objective of the Paris Agreement will remain.
• Eligible assets, clarification on target funds’ techniques:
  In Section 3.2 “Eligible Assets”, the wording will clarify that the UCITS and/or other UCIs in which the Sub-Funds may invest (the “target funds”) may, in accordance with their respective investment policies and applicable regulations, enter into securities lending transactions.

How you as an investor are affected

No material impact is expected on your investment. The Sub-Fund will continue to pursue the same investment objective and strategy, with no changes to fees or risk profile.

If you wish to redeem your holdings in the Sub-Fund, you may do so free of charge before the cut-off time on 17 December 2025.

Sincerely,
SEB Funds AB, Luxembourg Branch