SEB Östeuropafond and SEB SICAV 2 - SEB Eastern Europe Small and Mid Cap Fund have, since 28 February 2022, been closed for trading. The reason is that it was not possible to make a reliable valuation of the Russian holdings in the funds, which at the time of closing amounted to 35-40% of each fund’s value.
Despite the fact that the Russian market has now opened, our assessment is that the value of the Russian holdings is close to zero, as it is not permitted for foreign investors to trade on the market. Therefore, we are currently unable to sell the funds’ Russian holdings. The funds’ underlying assets are valued daily, and in the event of changed market conditions, the value of the Russian holdings may change. We intend to sell these holdings in the two funds as soon as possible. This will be done in a responsible and controlled manner to protect the interests of shareholders.
We now want to give shareholders the possibility to redeem shares. However, the current market situation means that there is a risk that both new and existing shareholders would be disadvantaged by the funds being opened for subscription. Therefore, for now, we have chosen to only open the funds for redemption.
Orders placed prior to closing on 28 February 2022, and that still have not been carried out, will be cancelled. This means that customers who wish to redeem shares need to submit an order when the fund reopens for trading 28 March 2022.
To enable SEB Östeuropafond to be kept closed for subscriptions, the fund rules have been updated. The update of the fund rules has been approved by the Swedish Financial Supervisory Authority (Finansinspektionen) and came into effect the 25 March 2022. The SEB Eastern Europe Small and Mid Cap Fund can be kept closed for subscriptions without changes to the prospectus.
Since the closure of the funds on 28 February 2022, no management fee has been charged in the two funds. From 28 March 2022, when the funds open for sale, the management fee will be reinstated.
For more information about SEB Östeuropafond see:
* The fund’s legal name is SEB SICAV 2 – SEB Eastern Europe Small and Mid Cap Fund
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.