SEB Green Bond Fund

Fact sheet as of 1 December, 2023
Printable version

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 Information Document and prospectuses are available on www.sebgroup.lu/funds.

This actively managed fund invests globally, mainly in green bonds with a sustainability profile, that directly or indirectly have a beneficial effect for the environment and the climate. A few examples are projects such as wind farms, water purification plants, clean transportation, sustainable agriculture, and waste management. At least 80% of the portfolio is invested in green bonds. When selecting investments, the fund also considers criteria for business ethics, the environment and social responsibility. The fund applies positive as well as negative screening. The fund invests in investment grade assets, which are assets from issuers with ratings no lower than investment grade or the equivalent. The fund may also invest up to 10% of its portfolio in unrated securities. The fund manager performs a sustainability risk as well as a credit risk assessment prior to investing. For detailed information about the fund’s sustainability approach, see the fund's Sustainability Information document on the Prices & Facts section of our website.
As from 2 July, 2018 the fund's return is compared to its benchmark.

INVESTMENT TEAM

The fund is managed by the Fixed Income team in Stockholm with Mattias Ekström, Martin Lundvall and Marianne Gut as the principal managers.

Performance (EUR)

NAV: 94.61 (12/1/2023). AuM (M EUR):236.06 (10/31/2023)
When calculating the returns the inflation is not taken into account

Return % EUR

Accumulated
since 		Fund Benchmark*
1 day 0.39 0.39
1 month 1.95 1.62
6 months 2.29 2.25
1 year 3.09 2.80
2 years -5.12 -5.24
3 years -6.23 -5.86
5 years -3.07 -1.19
Year to date 3.97 3.93
Average annual growth
3 years -2.12 -1.99
5 years -0.62 -0.24

* Benchmark, including dividends

Largest positions1 Share  %

US 5 Year Treasury Notes December 2013 11.2
EURO-BOBL FUTURE Dec23 4.6
Vasakronan 4.746% 240911 1.8
SpareBank 1 SR-Bank 4.875% 280824 1.7
EURO-BUND FUTURE Dec23 -1.6
SWEDISH 10YR FUT Dec23 -1.5
OP Corporate Bank 0.625% 270727 1.5
Länsförsäkringar Bank 5.148% 280908 1.5
Svenska Handelsbanken 0.010% 271202 1.4
VF Corp 0.250% 280225 1.4
1Last updated 9/29/2023. Source: SEB

risk measures 1

Standard Deviation (Fund)3.7
Standard Deviation (Index)3.7
Tracking error0.59
Sharpe Ratio-0.97
Information Ratio-0.16
Alpha-0.09
Beta0.98
124 months rolling. Last updated 31 October, 2023

Other information

The fund is re-designed as of December 12, 2017. 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 Green Bond Fund, 1 December 2023

Investment comment

Texts as of October 2023
  • End of the interest rate hike cycle, but no cuts in the near future either.
  • The fund performed in line with its benchmark index during the month.
  • In October, green bonds accounted for around 87 per cent of the fund’s assets.

Market Update

Focus was still on the fixed income market during the month and the US ten-year government yield climbed to 5 per cent. The market can see an end to the interest rate hike cycle, but does not expect any cuts in the near future either. A prolonged period of high interest rates was the message, which caused both the credit market and the stock exchange to turn sour. The quarterly reports did not help to raise the mood, either, and disappointing reports were penalised severely by the market. The banks reported strong results, but the improvement in net interest income seems to have peaked. Industrials’ reports reflect the macroeconomic uncertainty prevailing in many segments and regions. Future profit estimates seem to be on the way down. The Hamas/Israel conflict has caused indescribable human suffering and is a further reminder of the fragile geopolitical situation in many parts of the world, but so far the conflict has only had a limited impact on the financial markets.

Fund update

In October, green bonds accounted for around 87 per cent of the fund’s assets. The fund performed in line with its benchmark index during the month. The fund’s underlying green projects were broadly diversified. An estimated 35 per cent of the projects have a renewable energy focus. Projects range from financing environmentally-classified properties in Sweden and Europe, to financing sustainable global alternative energy sources and managing precious water resources.

Strategy going forward

The fund continues to focus on green projects that help to reduce greenhouse gas emissions and contribute to more efficient energy use and clean transport. The projects play a significant role in the transition to a more sustainable economy.

Key Facts

Year of launch2015
Value at launch (EUR)100.00
BenchmarkBloomberg Barclays MSCI Green Bond Index 1-5 years
Fund Management CompanySEB Investment Management AB
SRI scale 1-72
ISINLU1116557585
Base CurrencyEUR
Share ClassC (EUR)
Available Share ClassesEUR
Legal StructureUCITS
Morningstar rating
Use of derivativesYes1
1Derivatives such as futures may be used to achieve the fund's investment goals and make fund management more efficient.

Dividend

Non-distributing share class

Costs %

Management Fee0.40
Entry Fee1.50
Ongoing Charges10.452
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 31/05/2023

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 Information Document, fund regulations and prospectus. These are available on www.sebgroup.lu/funds. Tuesday, December 5, 2023 7:11:20 PM