Prospectus Prospectus for Öhman Småbolagsfond, an equity fund registered in Sweden. The prospectus for the above fund has been prepared in accordance with the Swedish Investment Funds Act (SFS 2004:46) and the regulations of Finansinspektionen (the Swedish Financial Supervisory Authority) governing investment funds (FFFS 2013:9). This document and the fund rules for the above fund together make up the full prospectus. The prospectus was published on January 4, 2016. Öhman Småbolagsfond Unit class A (Accumulation) ISIN: SE0000432775 Unit class B (Distribution) ISIN: SE0005066065 This fund is managed by E. Öhman J:or Fonder AB, corporate registration number 556050-3020, a subsidiary of E. Öhman J:or Asset Management AB. Öhman Fonder is part of the Öhman Group. The fund The information in this prospectus relates to Öhman Småbolagsfond. The fund was launched September 20, 1991. The name of the fund is Öhman Småbolagsfond (the Fund ). I n v e s t m e n t s t r a t e g y a n d t a r g e t r e t u r n s The Fund invests in the shares of small and medium-sized companies that, at the time of investment, have a market capitalisation not exceeding 1 percent of the total market capitalisation of the Nasdaq OMX Stockholm exchange. The Fund invests mainly in Swedish equities but may, to a limited extent, also invest in other Nordic equities. The Fund aims to achieve good long-term value growth. A s s e t c l a s s e s The Fund may invest in transferable securities, money market instruments, derivatives, fund units and accounts with credit institutions. D e r i v a t i v e s a n d m a n a g e m e n t t e c h n i q u e s The management of the Fund may make use of derivatives and management techniques to improve management efficiency (reducing costs and risks), but also to increase the return by increasing the Fund's exposure (creating leverage). A management technique that can be used to create leverage in the Fund is to purchase securities without the Fund holding cash equivalent to the purchase price. Payment for securities is normally made two or three days after the trade date, which makes it possible to increase the Fund's exposure during the time from which the security is purchased until payment is made. Trading in derivatives may involve greater market risk and counterparty risk in the form of the positive market value of derivatives or any excess collateral provided by the Fund to the counterparty. Trading in derivatives can be used to increase and decrease the Fund's net and gross exposure, which means that the Fund's market risk may increase. Counterparty risk is limited because the Fund does not normally
make use of OTC derivatives. The commitment approach is used in calculating the total exposure of the Fund, which means that positions are converted into an equivalent position in the underlying assets. E t h i c s a n d s o c i a l r e s p o n s i b i l i t y In addition to the basic general ethical guidelines below, the management company evaluates how companies manage environmental and social issues, as well as business ethics. The Fund has ethical investment restrictions regarding alcohol, weapons and defence materiel, as well as regarding companies that are active in the production of tobacco or pornography. The management of the Fund shall endeavour to demonstrate particular care with regard to transactions and actions that constitute an unacceptable risk of complicity in unethical action, violations of human rights and labour law, and corruption and environmental degradation. In support of this, the management company has developed its own ethical platform, based on the following international standards: UN Global Compact OECD Guidelines for Multinational Enterprises The management company continually gathers, processes and evaluates information about companies whose shares may be potential investments for the Fund. If the management company becomes aware that a company is involved in activities that directly conflict with the investment restrictions applicable to sustainable investments, that company s shares are excluded as a potential investment for the Fund. For companies that can be assumed to conduct activities that conflict with other parts of the management company s ethical platform, the management company works through active ownership with the aim of influencing the company in the desired direction. This occurs mainly through constructive dialogue with the company. An overall assessment is conducted, based on available information, which also considers the company's initiatives to deal with any issues. If active ownership in a company fails to achieve results, the company's shares may be excluded from the circle of potential investments for the Fund. G e n e r a l i n f o r m a t i o n a b o u t r i s k All investments in mutual funds are associated with some form of risk. Risk in this context means uncertainty about the future net asset value growth of the Fund. The value of the Fund is determined by the assets in which the Fund invests. This means that the Fund can both increase and decrease in value and there is no guarantee the unit holder will get back the full amount invested. Risk means primarily the risk of losing money, but investors should also consider the risk of obtaining a lower return than anticipated in relation to the purpose of the investment, the investor s risk tolerance and the need for returns. The EU has drawn up a common standard to illustrate the relationship between risk and return, whereby all mutual funds are classified according to a seven-point scale based on the fund's historical volatility, i.e. how much a fund s unit price has fluctuated in value over the past five years. Higher volatility means typically higher rewards, but also that the risk of losing money increases. Risk category 1 means a low level of risk (but not a risk-free investment) and limited potential returns. Risk category 7, which is the highest classification, means a relatively high level of risk and potentially better opportunity to achieve a high return. It should be noted that historical risk and reward data is not a guarantee of future fund performance. The classification of a fund can therefore only be used as part of assessing a fund's past performance. Information on the classification of the Fund is provided in the key investor information document for the Fund. T h e F u n d ' s r i s k p r o f i l e Equity funds are generally subject to large price fluctuations. The Fund limits its investments to a specific geographical region. It invests mainly in small and medium-sized companies, whose stock prices are typically subject to larger price fluctuations than large companies. The fund management seeks to be fully
exposed to the market, but exposure is regularly reduced as the Fund needs to retain a certain part of the Fund's assets in cash and cash equivalents in order to be able to meet the needs of unit holders to redeem their fund units without delay. The Fund's market exposure may also exceed 100 percent of the net asset value of the Fund considering that derivatives and other techniques may be used to create leverage in the Fund. As the Fund invests in equities, the investor should expect the net asset value to vary significantly over time. Described below are a number of risks that are especially relevant to the Fund. Geographical risk The Fund invests in Swedish securities or securities with a Swedish connection. Investments in a limited geographical market typically carry a higher risk than investments in global securities with broad geographical risk diversification. Liquidity risk Certain holdings in the Fund could become hard to value or sell at a reasonable price and within a designated time. Market risk Investments in shares always involve a risk of large price volatility. The markets in which the Fund invests may fall, for example, due to an economic downturn, global events or similar. R i s k a s s e s s m e n t m e t h o d The commitment approach is used to calculate the Fund s total exposure. In the commitment approach, derivatives are converted into a corresponding position in the underlying assets. The commitment approach is described in Chapter 25, Section 5 of the regulations of Finansinspektionen, FFFS 2013:9. W h o i s t h e F u n d s u i t a b l e f o r? The Fund is aimed at investors seeking exposure to small and medium-sized Swedish companies and who have an investment horizon of at least five years. The investor must be able to accept that substantial price fluctuations may occur. M a x i m u m c h a r g e s Below is information about the maximum fees the management company may charge under the fund rules for selling and redeeming fund units and for management of the Fund, including costs for storage, supervision and auditors. Selling fee 0.00 %. Redemption fee 0.00 %. Ongoing management charge including storage, supervision and auditing 1.50 %. C u r r e n t c h a r g e s Below is information about the current fees the management company may charge for selling and redeeming fund units, including storage, supervision and auditing. Selling fee 0.00 %. Redemption fee 0.00 %. Ongoing management charge including storage, supervision and auditing 1.50 %.
The management company has entered into a number of agreements on behalf of the Fund with companies for the provision of certain analysis. This analysis enhances the quality of fund management and does not prevent the management company from acting in the interest of the unit holders. U n i t c l a s s e s The Fund comprises two unit classes, designated A and B. Class A fund units pay no dividend to unit holders. Class B fund units pay an annual dividend to unit holders. D i v i d e n d A dividend is paid annually on Class B fund units. Dividends can be received in cash or in the form of new units (reinvestment). Anyone registered in the register of unit holders as a holder of class B fund units on April 30 (the Record Date ) is entitled to the dividend. The dividend is based on the income received by the Fund in the previous financial year in the form of dividends and interest income. If this income is less than three percent of the net asset value of fund units of class B on the Record Date, the management company may nonetheless decide that the Fund will pay a dividend equivalent to three percent of the value of the fund units. This means that the dividend may be paid without any matching return or capital gain in the Fund. The complete rules for determining the Fund's dividend can be found in Section 12 of the fund rules. The dividend amount is reinvested in new units that are provided to each unit holder. Any unit holder wishing to instead receive the dividend as a cash distribution must notify the management company in writing. S a l e s a n d r e d e m p t i o n s o f u n i t s Fund units are sold by the management company. The buyer receives the price set on the banking day on which the money becomes available in the Fund s bank account, provided this takes place before 3:00 pm. Otherwise the buyer receives the price set on the next banking day. Redemption requests must be made in writing to the management company. Redemptions are made at the applicable price on the banking day on which the written request is received by the management company, provided this takes place before 3:00 pm. Otherwise the redemption takes place at the price set on the next banking day. The timing of the redemption may be postponed if it is necessary to acquire proceeds for the redemption through a sale of fund assets, and will in such cases take place as soon as possible. Requests for sales and redemptions may only be withdrawn if approved by the management company. Information on the current net asset value and the latest selling and redemption prices for fund units is available from the management company, and is published regularly (typically every banking day, but at least once per week) in the news media and on the management company s website. The management company confirms sales and redemptions of fund units in writing. Öhman Fonder has entered into agreements with distributors to sell the management company s funds. The current list can be found at www.ohman.se/distributorer L i m i t i n g o r d e r s It is not possible to limit orders for sales and redemption of fund units.
P a s t p e r f o r m a n c e The graph above shows past performance in Swedish kronor (SEK). No consideration is given to inflation. The return is calculated after all fees have been charged to the Fund. Please note that the Fund's past performance is not a guarantee of future returns. Fund units can increase and decrease in value and there is no guarantee that you will get back the full amount invested.