SEB Green Bond Fund

Fact sheet as of 13 June, 2024

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: 96.63 (6/13/2024). AuM (M EUR):265.67 (5/31/2024)
When calculating the returns the inflation is not taken into account

Return % EUR

Accumulated
since
Fund Benchmark*
1 day 0.18 0.09
1 month 0.58 0.47
6 months 1.68 1.60
1 year 4.89 4.81
2 years 5.03 4.34
3 years -3.92 -3.97
5 years -2.59 -1.63
Year to date 0.75 0.67
Average annual growth
3 years -1.32 -1.34
5 years -0.52 -0.33

* Benchmark, including dividends

Largest positions1 Share  %

US 2YR NOTE (CBT) Jun24 11.4
US 5YR NOTE (CBT) Jun24 4.1
EURO-BUND FUTURE Jun24 -3.0
United Utilities Water Finance PLC 3.750% 340523 1.9
Johnson Controls International plc / Tyco Fire & Security Finance SCA 1.750% 300915 1.7
ASR Nederland 3.625% 281212 1.7
Vasakronan 4.893% 260918 1.6
Tomra Systems 5.630% 290403 1.6
SpareBank 1 SR-Bank 4.875% 280824 1.6
SWEDISH 5YR FUT Jun24 -1.5
1Last updated 3/28/2024. Source: SEB

risk measures 1

No risk measures are calculated due to insufficient history

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, 13 June 2024

Investment comment

Texts as of May 2024
  • The month was characterised by rising Treasury yields
  • An interest rate cut as early as May is now the main scenario
  • The fund slightly underperformed its benchmark index during the month

Market Update

The month was characterised by rising Treasury yields. US inflation came in higher than expected and the labour market continues to be strong. The market now believes in just over one rate cut this year from the US Federal Reserve, compared with a forecast of seven rate cuts at the beginning of the year. For Sweden, the latest inflation figure was lower than expected and an interest rate cut as early as May is now the main scenario. What could make the Riksbank hesitate is a clear weakening of the Swedish krona. Both stock markets and the credit market showed surprising stability, despite the rise in Treasury yields. A large supply of bond issues, especially in the High Yield segment, was met by strong demand. The geopolitical tensions in the Middle East have so far had limited effects on the financial markets. Oil prices rose during the month, but without drama.

Fund update

In April, green bonds accounted for approximately 99 per cent of the fund's assets. The fund slightly underperformed 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

Fund costs

Information on the fund's fees and expenses is available in the fund's key information document (KID) or the fund's prospectus

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. Sunday, June 16, 2024 6:25:51 AM