Printable version:

Fact sheet as of May 23, 2013

SEB Russia Fund

The fund focuses on equity markets in Russia and CIS countries.

Fund manager: Sulev Raik
Employed in industry: 18 years

Investment Philosophy

Despite rapid development over the past decade, the Eastern European equity market is still inefficient. The market has been influenced by speculative flows. Sell-side coverage and investor interest have been concentrated to a few highly liquid names. The domestic institutional investor base is still in its infancy in most markets within our investment universe. By following a structured investment process, the team believes that it will be able to create added value for the funds investors.

Key Facts

key	value
Base Currency	EUR
Share Class	C (EUR)
ISIN-code	LU0273119544
Bloomberg Ticker	SEBRUSS LX
Benchmark	MSCI Russia 10/...
Year of launch	2006
Value at launch (EUR)	10.00
Legal Structure	UCITS IV
Fund Management Company	SEB Asset Management S.A.
Morningstar Rating (3 years) 30 Apr 2013
Turnover Ratio*	0.54

* 12 months rolling, last updated 30 Apr 2013

Dividend

The share class does not pay dividends; the return is reinvested

Costs

key	value
Management Fee	2.50
Ongoing Charges*	2.59
Entry Fee	Max 1%

* The ongoing charges includes the management fee and constitutes payment for fund management, including marketing and distribution. The ongoing charges does not include transaction costs such as brokerage commissions on securities transactions.

Risk Measures*

key	value
Standard Deviation (Fund)	22.9
Standard Deviation (Index)	25.3
Tracking Error	6.5
Sharpe Ratio	-0.3
Information Ratio	-0.3
Alpha	-1.8
Beta	0.9

* 36 months rolling, last updated 30 Apr 2013

Investment Process

Investment universe

The fund focuses on equity markets in Russia and other CIS (Commonwealth of Independent States) countries. Indirect exposures, i.e. companies that are traded elsewhere but still generate a significant proportion of their sales and profits in the fund’s investment region – are also eligible for investment. The team focuses on stock picking and targets a relatively high tracking error of 5-10%. Derivatives may be used to achieve the investment objective.

Investment team

The fund is managed by SEB´s Eastern European team which is based in the Region, near to the companies they invest in. All team members are Eastern European nationals. The fund is managed by Sulev Raik, who is responsible for the fund’s ongoing strategy and, ultimately, for fund performance. The portfolio manager is supported by sector specialists. The team is based in Tallinn, Estonia.

Research

The team applies a stock-picking approach focusing on analyzing single-company fundamentals. It looks for attractively valued companies and tries to identify emerging trends in company financials at an early stage. Company meetings add value to the financial analysis and a fair amount of attention is paid to corporate governance issues, since improving corporate governance has been one of the value creating factors in these markets. The portfolio manager also scans sell-side research and occasionally requests evaluation of any ideas found in this area by the other team members.

Portfolio construction

The team focuses on stock picking within sectors combined, to some extent, with sector selection. It expects to have about 90 percent of the portfolio invested in Russian equities, with about 10% invested in other CIS markets, predominantly Ukraine and Kazakhstan. The fund typically holds 40-60 stocks. Superior new investment alternatives can act as sell triggers, positions are exited when sustained deterioration in the fundamentals are determined.

Performance

Currency: EUR | NAV: 9.22 (5/23/2013) | AuM (M EUR) : 235.19 (4/30/2013)

SEB Russia Fund (FundEUR)

MSCI Russia 10/40 TR Net (Benchmark, incl. dividend)

	Fund EUR	Benchmark
Return % EUR	Fund	Benchmark
Accumulated since
1 day	-3.2	-3.7
1 month	8.0	7.3
3 months	-7.6	-7.1
6 months	-0.8	-1.7
1 year	3.4	10.3
3 years	0.2	2.5
5 years	-24.8	-31.4
Year to date	-4.6	-5.6
Average annual growth
3 years	0.1	0.8
5 years	-5.5	-7.3

Currency

Add benchmark

To ExcelTo txt

Download

Period

Largest Positions*

% of Total

	% of Total
Sberbank	8.1
VTB Bank	5.5
Protek	5.3
Magnit	5.1
Lukoil	4.6
Surgutneftegaz	4.4
Mobile Telesystems	4.0
Transneft	3.6
Norilsk Nickel	3.4
Novatek OAO	3.3

* Last updated 31 Mar 2013. Source: SEB

* Numbers are absolute, not relative

Sector Allocation*

* Last updated 31 Mar 2013. Source: SEB

* Numbers are absolute, not relative

Other Information

The fund changed its benchmark to MSCI Russia 10/40 TR Net January 1, 2011. Previous benchmark was RTS.

All figures net of fees.

This presentation has been prepared by SEB and contains general information in relation to financial instruments marketed, sold or solicitated by SEB. Neither this document nor the products described in it are intended for distribution or sale in the United States or to US persons, and any such distribution may be unlawful. Although the information has been based on sources deemed by SEB to be reliable, SEB assumes no liability whatsoever for incorrect or missing information nor for any loss, damage or claim arising from the use of this presentation. Past performance is not indicative of future results, which may vary. The value of investments and the income derived from investments can go down as well as up. Future returns are not guaranteed, and a loss of principal may occur. If you or a fund invests in financial instruments denominated in a foreign currency, changes in currency exchange rates may affect the return on the investment. For funds with share classes which aims at hedging the returns from changes in currency exchange rates of the fund’s base currency, SEB makes no representation or warranty as to achieving the currency exchange rate hedge. Information on taxes (if any) has been based on in force as per the date of this presentation, and such rules may be subject to change thereafter. It should also be noted that information on tax have not been tailored on any individual circumstances of any individual unit holder and in order for an individual unit holder to understand the tax treatment of an investment the unit holder should obtain tax advice. The unit holder is fully responsible for any decision to invest in a fund, and this material may not constitute the sole basis for any such decision. Instead, any decision to invest in a fund should be based on the detailed information regarding the fund or the funds which is contained in their respective fact sheets, Key Investor Information Documents (“KIID”), fund regulations and full prospectuses, which materials can be obtained from www.seb.se/fonder. For funds which are not managed by SEB’s fund management companies, the said information may be obtained free of charge from investment advisers within SEB. SEB assumes that any unit holder, prior to making a decision to invest, carefully reads the detailed information regarding the fund or the funds which is contained in their respective fact sheets, KIID, fund regulations and full prospectuses. For investment advice tailored to individual circumstances, you are kindly requested to contact your investment adviser within SEB.

Saturday, May 25, 2013 9:54:25 AM