On February 1, SEB will add the SEB Lux Equity Fund - Opportunity Europe to its range of funds offered under auspices of the Premium Pension Authority (PPM). The fund manager will be Jonas Romlin, who headed the successful SEB Optionsrätter Europafond (Warrants Europe Fund).
"Many customers have inquired about a warrants fund in the PPM scheme, and now they have an opportunity to select one," says Jan Palmberg, Head of mutual funds, SEB Invest & Funds.
The fund will mainly handle exchange-listed warrants in European companies, but it will also trade in shares. The fund can achieve a higher yield than a regular equity fund due to the gearing effect offered by warrants and options. This makes it a high-risk alternative, although this may be offset by investing in interest-bearing securities. This limits the gearing effect, for example in the event of substantial downturns in the market.
"Opportunity Europe suits people who choose to invest part of their resources in a fund with a European focus, and who are prepared to take a greater risk. A high-risk fund should not represent more than 5-10% of total savings," says Jonas Romlin, who is manager of the SEB Lux Equity Fund - Opportunity Europe.
The Opportunity Europe fund is registered in Luxembourg, which makes it possible to reinvest dividends directly in the fund.
The SEB Lux Equity Fund - Opportunity Europe is the 20th SEB PPM mutual fund. The PPM code is 846 949.