SEB Varahaldus Changed Classes of Risks of Two Funds
OREANDA-NEWS. December 24, 2009. SEB Varahaldus has changed classes of risks of two funds: new class of risk of SEB Optimal Pension Fund is 2 (previously 3) and new class of risk of SEB Eastern Europe Bond Fund is 3 (previously 2), reported the press-centre of SEB.
In connection with the extended II Pillar Pension Fund offering which took place this year, we reviewed the risk classes of pension funds and decided to lower SEB Optimal Pension Fund risk class from level 3 to level 2. Our current product range consists of four II Pillar Funds. Two of those (SEB Conservative Pension Fund and SEB Optimal Pension Fund) are according to SEB scale positioned to risk class 2. SEB Progressive Pension Fund and SEB Energetic Pension Fund are positioned to risk class 3. Investors, who have accumulated their pension assets into pension funds with low risk class, and are now interested in investments into pension funds with average risk class, can now use as an alternative SEB Progressive and SEB Optimal Pension Funds.
The objective of Eastern European Bond Fund is to gain profit for investors from process of convergence in Eastern-European region. The expected strengthening process of local currency against euro can be regarded as one component of convergence. We have raised opened upgraded positions of Polish zloty, Czech croon, Hungarian forint and Russian rouble in strategic portfolio of the fund. Currency risk facilitates achievement of investment goals but it also can enhance fund NAV fluctuation.
We have analysed the impact of currency risk to fund NAV fluctuation and decided to change the fund’s risk class from level 2 to level 3. Investors who do not accept new risk level have an alternative to choose from funds with lower risk level. One can not change fund through the exchange of units, therefore as a solution one can execute sale of Eastern European Bond Fund and then perform a purchase of suitable lower risk fund. The purchase order of the new fund may be executed on the fourth banking day after the redemption order of the previous fund. SEB deLuxe Classic Plus ja SEB Corporate Bond Fund EUR may be regarded as low risk funds.
At present SEB Varahaldus uses 5 graded risk scale, according to which class 1 represents the lowest and class 5 the highest level of risk. The rules of funds managed by SEB Varahaldus, public offering prospectuses and any other important information can be found at SEB Varahaldus website: www.seb.ee/fondid.
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