Specific changes made to SEB High Yield – SEB European High Yield Fund
We are making these changes in response to the increased demand for products with stricter sustainability requirements, and to help fulfil our ambition of creating and offering sustainable investment products.
SFDR article change
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Previous SFDR Category |
New SFDR Category |
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Article 8 of SFDR |
Article 9 of SFDR |
The sub-fund will change from not only promoting sustainable investments, as described in Article 8 of SFDR, but to having sustainable investment as its objective, and thus adhering to Article 9 of SFDR.
New name
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Previous Name |
New Name |
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SEB High Yield – SEB European High Yield Fund |
SEB High Yield – SEB Climate Focus High Yield Fund |
New objective
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Previous objective |
New Objective |
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The objective of the sub-fund is to achieve long-term returns and outperform the Barclays Pan European High Yield Index* by investing in high-risk European bonds.
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To deliver an attractive return on your high-yield investments while simultaneously establishing a perdurable positive environmental impact in order to achieve the long-term objectives of the Paris Agreement. The sub-fund's index is the Bloomberg Pan-European High Yield Index, a European fixed income index covering corporate bonds with lower credit ratings. The Index is not aligned with the sustainable objective of the sub-fund and is used only for performance comparison. |
*For the avoidance of doubt, kindly note that Barclays Pan European High Yield Index has in the meantime changed its name to Bloomberg Pan European High Yield Index.
New investment policy
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Previous Investment Policy |
New Investment Policy |
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To achieve this aim, the sub-fund mainly invests in European non-investment grade rated bonds and up to 10% of its assets in European investment grade bonds or global non-investment grade rated bonds. The sub-fund may also invest in non-rated bonds. |
To achieve this objective, the sub-fund mainly invests in European non-investment grade rated bonds with a significant concentration on Nordic issuers (Denmark, Finland, Iceland, Norway, and Sweden), and up to 20% of its assets in European investment grade bonds or global non-investment grade rated bonds. The sub-fund may also invest in non-rated bonds. |
Amended investment universe
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Previous Investment Universe |
New Investment Universe |
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The sub-fund mainly invests in European non-investment grade rated bonds without a significant concentration on Nordic issuers and up to 10% of its assets in European investment grade bonds or global non-investment grade rated bonds. |
The sub-fund will change its investment universe to have a significant concentration on investments in Nordic Countries (Denmark, Finland, Iceland, Norway, and Sweden), and will also increase its possibility to invest in European investment grade bonds and global non-investment grade bonds from 10% to 20%. |
Removal of entry fee
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Previous Entry Fee |
New Entry Fee |
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|---|---|---|---|
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C (EUR) |
3% |
C (EUR) |
0% |
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D (EUR) |
3% |
D (EUR) |
0% |
After the removal of entry fees of the two (2) unit classes mentioned above, none of the unit classes have an entry (or exit) fee.
How you as an investor are affected
Due to the sub-fund’s new investment objective (as described above), it may be necessary to rebalance the portfolio. This could lead to transaction costs for the sub-fund.
For the avoidance of doubt, there is no change to the risk profile of the sub-fund or any other material changes (including the management fee) except the changes mentioned above.
SEB High Yield-SEB European High Yield Fund unit classes and ISIN codes may be found below:
Unit class ISIN code
C (EUR) LU0977257210
C (H-NOK) LU0977257723
C (H-SEK) LU0977257640
D (EUR) LU0977257301
D (H-SEK) LU1084480697
HNWC (EUR) LU1084480596
HNWC (H-NOK) LU1084481305
HNWC (H-SEK) LU1084480752
HNWD (H-SEK) LU1084480919
IC (EUR) LU0977257483
IC (H-SEK) LU1084481131
ZC (EUR) LU1732230997
ZD (EUR) LU1732231292
Overall changes to the High Yield umbrella
Clarification made concerning ancillary assets:
Following a recent FAQ by the financial authority in Luxembourg, Commission de Surveillance du Secteur Financier (CSSF), the amount of cash any sub-fund may hold has been limited to 20%. Although the management company already had this as an internal limit, it is now clarified in the general part of the prospectus. The wording concerning other liquid assets that are held on an ancillary basis have also been clarified.
New requirement for UCITS funds relating to covered bonds: As a result of Directive (EU) 2019/2162 being implemented in Luxembourg Law, we are updating the prospectus to reflect this regulatory change and to define the meaning of “covered bond” as per the requirement of the directive.
New Annexes related to SFDR: As part of the implementation of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR), all sub-funds will have their sustainability related disclosures located in an Annex at the end of the prospectus. The disclosures are mandatory for all sub-funds that adhere to article 8 or 9 of SFDR and will provide a better picture of each sub-fund’s sustainability commitment and taxonomy alignment.
Sustainability risks has been further clarified: In order to achieve greater transparency of the fund’s sustainability commitment, the sustainability approach in the general part of the prospectus has been amended to further highlight sustainability risks.
If you do not wish to remain invested in the sub-fund, you may redeem your units free of charge by 28 December 2022. Note that redemption can result in taxation. Kindly consult your financial advisor.
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. The fund is classified as a higher risk fund and may, due to its composition and management methods, fall or rise sharply in value. Key investor information documents and prospectuses are available on www.sebgroup.lu/funds.