SEB Sustainability Nordic Fund

Fact sheet as of 16 October, 2019

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. Key investor information documents and prospectuses are available on www.sebgroup.lu/funds.

SEB Sustainability Nordic Fund aims to create long-term capital growth taking into account the risk level of the sub fund as well as specific sustainability criteria. This actively managed fund focuses on the Nordic region. The investment process is based on fundamental analysis. A central part of the process is to identify companies that actively work with sustainability and have a proven capability to integrate their sustainability activities in their business model. Company visits and dialogues are important parts of our analysis. We focus on finding companies we consider to be reasonably valued and that fulfil our requirements for quality such as a strong market position, good finances and a proven ability to generate profitable growth. The fund does not invest in, for example, companies that breach international norms. Further, the fund follows specific exclusion criteria regarding companies whose business activities involve weapons, tobacco, alcohol, commercial gambling and pornography. Additionally, the fund does not invest in companies that extract coal, gas or oil. We compare the fund's return to the VINX Benchmark Cap Net Return Index, an index that includes equities from Nordic companies.

INVESTMENT TEAM

The fund is managed by the Swedish and Nordic Equity team with Tommi Saukkoriipi as the lead portfolio manager. The team, based in Stockholm, has extensive experience of the Swedish and Nordic stock markets.

Performance (EUR)

NAV: 13.12 EUR (10/16/2019). AuM (M EUR):201.12 (9/30/2019)
When calculating the returns the inflation is not taken into account

Return % EUR

Accumulated
since
Fund Benchmark*
1 day -0.15 -0.19
1 month -2.13 -0.80
6 months -3.86 -1.26
1 year 4.10 6.31
2 years -1.52 2.35
3 years 19.58 22.31
5 years 53.70 54.10
Year to date 15.93 14.15
Average annual growth
3 years 6.14 6.94
5 years 8.98 9.03

* Benchmark, including dividends

Sector allocation*

*Last updated 9/30/2019. Source: SEB

Largest positions1 Share  %

Investor 9.8
Volvo 9.4
Novo Nordisk 9.2
Tomra Systems 5.7
Sandvik 4.3
UPM-Kymmene 3.9
Stora Enso 3.8
Valmet 3.5
Beijer Ref 3.0
Bakkafrost 2.9
1Last updated 9/30/2019. Source: SEB

risk measures 1

Standard Deviation (Fund)14.2
Standard Deviation (Index)11.6
Tracking error4.59
Sharpe Ratio-0.01
Information Ratio-0.44
Alpha-2.01
Beta1.17
124 months rolling. Last updated 30 September, 2019

Other information

As of 21 September 2018 the fund has a more sustainable profile and a new name; SEB Sustainability Nordic Fund. At the same time SEB Nordic Focus Fund merged into SEB Sustainability Nordic Fund. As of 2 November 2016, the fund´s Management company is SEB Investment Management AB. SEB works actively with sustainability and follows the UN Principles for Responsible Investments. Read more at www.sebgroup.com

SEB Sustainability Nordic Fund, 16 October 2019

Investment comment

Texts as of September 2019
  • The fund rose more than its benchmark
  • Weaker global macro statistics contributed to US interest rate cuts, while Norway increased
  • EQT, Konecranes and Loomis were added to the portfolio

Market Update

The Nordic stock markets rose in August, in line with leading global stock markets. The Helsinki Stock Exchange was the strongest here with a rise of 4.5 per cent, followed by Stockholm with 3.4 per cent, Oslo 2.9 per cent and finally Copenhagen 0.7 per cent. Renewed optimism about the trade negotiations between the USA and China this time outweighed lower growth in Europe, the USA and China. In sectoral terms, the energy, finance, utilities, IT and engineering sectors performed best, while the healthcare sector and telecoms operators fell back a little.

Fund update

The fund rose more than its benchmark index during the month. The holdings that contributed most were Cargotec, Sandvik, Stora Enso, Jyske Bank and UPM-Kymmene. A more conciliatory tone in the trade talks between the USA and China contributed to an increased interest in more cyclical companies, while Jyske Bank benefited from a broader introduction of negative interest rates for private customers and discussions on a continued consolidation of the banking sector. Poorer holdings were Tomra, ÅF Pöyry, Sectra and Austevoll, the first two of which were affected by profit-taking following a strong price trend, and the latter two by half-yearly reports that failed to meet market expectations. During the month EQT, Konecranes and Loomis were added to the portfolio, and positions were extended in companies including Valmet and Bakkafrost. (Bakkafrost through participation in the new share issue to finance the acquisition of the Scottish salmon producer SSC.) At the same time, the holding in Cramo was disposed of and the holdings in Hexagon, Telenor and Stora Enso were reduced.

Strategy going forward

In spite of the current anxiety in the market, we believe that Nordic stocks are attractively valued. This is particularly true if you consider the strong balance sheets and not least the particularly low yields. In an environment with a continued focus on trade wars and increasing economic concern, our long-term strategy remains firm: a continued focus on reasonably valued companies with healthy balance sheets and the ability to deliver good performance on their own merits in relation to risk taken in a changing environment.

Key Facts

Year of launch1988
Value at launch (EUR)1.00
BenchmarkVINX Benchmark Cap Net Return Index
Fund Management CompanySEB Investment Management AB
Risk Level (SRRI-scale 1-7)61
ISINLU0030165871
Base CurrencyEUR
Share ClassC (EUR)
Legal StructureUCITS
Morningstar rating
Turnover Ratio0.602
Use of derivativesYes3
1The value of the fund may vary substantially because of its composition and the portfolio management methods applied by the management company.
2From 9/30/2019
3Derivatives may be used to achieve investment objectives or for hedging.

Dividend

Non-distributing share class

Costs %

Management Fee1.30
Entry FeeNone
Ongoing Charges11.362
1The ongoing charges include the management fee and constitute payment for fund management, including marketing and distribution. The ongoing charges do not include transaction costs such as brokerage commissions on securities transactions.
2From 15/02/2019

More information

Welcome to contact your financial advisor for more information or visit www.sebgroup.lu.

Important information

This material is prepared by SEB and contains general information regarding financial instruments marketed, sold or solicited by SEB. SEB is the global brand name for Skandinaviska Enskilda Banken AB (publ), its subsidiaries and affiliated companies. Neither this material nor the products described in it are intended for distribution or sale in the United States or to US persons, and any such distribution is not allowed. The offering of shares or units in the funds may also be restricted in other jurisdictions. This document may not be used to make an offer or solicitation with respect to the sale of shares or units where such an offer or solicitation is unlawful. Although the information in this material is based on sources deemed by SEB to be reliable, SEB assumes no liability whatsoever for incorrect or missing information or for any loss, damage or claim arising from the use of this material. 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. If you or a fund invests in financial instruments denominated in a foreign currency, changes in currency exchange rates can affect the return on the investment. SEB makes no representation that funds whose share or unit classes aim at hedging the fund’s return from changes in currency exchange rates will succeed in achieving this. Any tax information in this material is based on regulations valid as per the date of this presentation and may be subject to change. Note that any tax information in this material is general. Kindly contact your SEB investment advisor for tax and investment advice appropriate for your situation. You are fully and solely responsible for your investment decision. This material is not intended for or suitable as the sole basis for investment decisions. Instead, you should base your decision on the information in the fund’s product documentation, including its fact sheet, Key Investor Information Document, fund regulations and prospectus. These are available on www.sebgroup.lu/funds. Saturday, October 19, 2019 2:28:07 PM