We have added a clarification in the fund’s prospectus regarding securities’ ratings. As of the above date, the fund may invest up to 10% of its portfolio in unrated securities (securities without an official rating from a credit rating agency).
Fund to use relative value at risk
Additionally, the fund will use relative value at risk (VaR) for its global risk exposure calculation methodology. Previously the fund used absolute VaR. This reflects the change in the fund’s comparative index, the Bloomberg Barclays MSCI Green Bond Index 1-5 years.
The value at risk methodology provides an estimate of the maximum potential loss over a specific time period and at a given confidence level, that is, probability level. Usually for UCITS, the time period is one month/20 business days and the confidence level is 99%.
Absolute VaR: estimate of the maximum potential loss a sub fund could experience over a specific time period (20 days) at a given confidence level (99%).
Relative VaR: Estimate of the maximum potential loss a sub fund could experience beyond the estimated maximum loss of a benchmark, over a specific time period (20 days), at a given confidence level (99%).
Product documentation for the fund, including the above mentioned changes, will be available as of 28 October 2019 on www.sebgroup.lu and from our registered office.
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.