SEB Concept Biotechnology

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.

This actively managed equity fund invests globally, primarily in companies in the biotech sector. Because US companies dominate the sector, the majority of the companies we invest in are in the US. We use an objective and disciplined investment process with a clear valuation element. The fund's focus on larger companies and low valuation gives it a relatively defensive character as compared to the biotech sector as a whole. The biotech sector is characterised by substantial price fluctuations. Since the fund invests in securities that are issued in other currencies than the base currency of the fund the return may be affected by changes in the exchange rates.

INVESTMENT TEAM

The fund is managed by the Global Equities team with Maria Werner and Lars Englund as the lead portfolio managers. The team, based in Stockholm, employs a systematic and disciplined investment process.

Performance (EUR)

NAV: 95.67 EUR (10/16/2019). AuM (M EUR):155.51 (9/30/2019)
When calculating the returns the inflation is not taken into account

Return % EUR

Accumulated
since
Fund Benchmark*
1 day -0.71 -0.30
1 month -3.09 -3.11
6 months -6.21 -4.44
1 year -10.42 -6.78
2 years -5.94 -2.99
3 years -1.63 14.69
5 years 10.30 35.76
Year to date 5.76 9.25
Average annual growth
3 years -0.55 4.67
5 years 1.98 6.30

* Benchmark, excluding dividends

Sector allocation*

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

Largest positions1 Share  %

Amgen 9.4
Gilead Sciences 9.1
Celgene 8.2
Vertex Pharmaceuticals Inc 6.2
Biogen 5.6
Illumina Inc 4.5
Regeneron Pharmaceuticals 4.5
Alexion Pharmaceuticals Inc 4.4
Incyte Corp 3.6
BioMarin Pharmaceutical Inc 3.1
1Last updated 9/30/2019. Source: SEB

risk measures 1

Standard Deviation (Fund)20.0
Standard Deviation (Index)20.4
Tracking error4.47
Sharpe Ratio-0.13
Information Ratio-0.23
Alpha-1.05
Beta0.95
Active share36.02
124 months rolling. Last updated 30 September, 2019
2Active share measures the difference between the fund’s and the benchmark’s holdings. From 9/30/2019

Other information

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 Concept Biotechnology, 16 October 2019

Investment comment

Texts as of September 2019
  • Biotech market performed negatively
  • Gentler tone in trade conflict
  • Uncertainty remains about the nature of Brexit

Market Update

The world’s broad stock markets saw generally positive performance during the period, while the biotech market fell back. Risk appetite in the market returned, supported by central banks and a slightly softer tone in the trade conflict between the USA and China. Clear doveish signals from the European Central Bank (ECB), which reduced the interest rate and resumed asset purchases with no upper time limit. The US central bank, the Fed, reduced the interest rate while at the same time conveying a positive view of the economy, but also a readiness to take strong action if required. Despite this, President Trump continued to criticise the Fed for not taking sufficiently aggressive action. The risks of a hard Brexit softened with new legislation that will force the UK to reach an agreement with the EU before the end of October, or to extend the negotiation period. The Swedish krona weakened against the US dollar and was largely unchanged against the euro.

Fund update

The biotech market rose during the first part of September, before falling back and ending on a negative total. The SEB Biotech Fund performed negatively in absolute figures, in terms of both euros and Swedish kronor, although better than its benchmark index. Factor allocation made a positive contribution to the relative performance, driven primarily by the exposure to attractively valued companies. At company level it was underweights in Novocure Ltd and SAGE Therapeutics, companies that fell back during the month, that contributed most to the positive relative return. Holdings that had a negative impact during the month included the fund’s underweight in ACADIA Pharmaceuticals, which performed strongly following successful results in clinical trials.

Strategy going forward

The fund is managed through an objective and disciplined investment process with distinct valuation features. The fund’s focus on large companies and low valuation gives it a rather defensive character. This makes it likely that the fund will perform better relative to its benchmark index in slightly rising and slightly falling markets than it would in strongly rising markets. We expect that, over time, this will result in the fund outperforming its benchmark index.

Key Facts

Year of launch2008
Value at launch (EUR)27.48
BenchmarkNasdaq Biotechnology Index
Fund Management CompanySEB Investment Management AB
Risk Level (SRRI-scale 1-7)61
ISINLU0385485148
Base CurrencyEUR
Share ClassC (EUR)
Legal StructureUCITS
Morningstar rating
Turnover Ratio0.502
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 Fee1.50
Entry FeeNone
Ongoing Charges11.562
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 2:28:21 PM