Annual Report SEB deluxe

Transcription

1 Annual Report SEB deluxe Status: For the financial period from 1 October 2016 to 31 December 2017 R.C.S. K 4

2 Notice The sole legally binding basis for the purchase of units of the Fund described in this report is the latest valid Sales Prospectus with its terms of contract.

3 Table of Contents Page Additional Information to the Investors in Germany 2 Organisation 3 General Information 5 Management Report 7 Schedule of Investments: SEB deluxe - Multi Asset Defensive 9 SEB deluxe - Multi Asset Defensive Plus 11 SEB deluxe - Multi Asset Balance 13 Combined Statement of Operations 15 Combined Statement of Changes in Net Assets 16 Combined Statement of Net Assets 17 Statistical Information 18 Additional information on Management Fees 19 Notes to the Financial Statements 20 Audit Report 24 Risk Disclosure (unaudited) 27 Remuneration Disclosure (unaudited) 28 1

4 Additional Information to the Investors in Germany As at 31 December 2017 Units in circulation: The following Sub-Funds are publicly approved for distribution in Germany: SEB deluxe - Multi Asset Defensive SEB deluxe - Multi Asset Defensive Plus SEB deluxe - Multi Asset Balance The information disclosed above is as at 31 December 2017 and this may change after the period end. The current Sub- Funds in circulation and the current registrations per unit class are visible in the distribution matrix on 2

5 Organisation Management Company: SEB Investment Management AB (since 2 November 2016) Stjärntorget 4 SE Solna, Sweden SEB Asset Management S.A. (until 2 November 2016) 4, rue Peternelchen L-2370 Howald, Luxembourg Board of Directors of the Management Company: Chairperson Johan Wigh Advokat, Törngren Magnell Sandemarsvägen Enskede Sweden Members Magnus Wallberg Chief Financial Officer Life and Investment Management Division Skandinaviska Enskilda Banken AB (publ) Sweden Karin S. Thorburn Professor in Finance at the Norwegian School of Economics Starefossveien 58 A 5019 Bergen, Norway Jenny Askfelt Ruud (since 18 May 2017) Advisor Ratos AB Äppelviksv Bromma Sweden Branch of the Management Company: SEB Investment Management AB, Luxembourg Branch (since 2 November 2016) 4, rue Peternelchen L-2370 Howald, Luxembourg Central Administration (including the administrative, registrar and transfer agent function) and Paying Agent in Luxembourg: Investment Manager: Depositary: Auditor of the Fund: The Bank of New York Mellon SA/NV, Luxembourg Branch 2-4, rue Eugène Ruppert L-2453 Luxembourg SEB Investment Management AB Stjärntorget 4 SE Solna, Sweden Skandinaviska Enskilda Banken S.A. 4, rue Peternelchen L-2370 Howald, Luxembourg PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator L-2182 Luxembourg Auditor of the Management Company: PricewaterhouseCoopers AB Torsgatan 21 SE Stockholm, Sweden 3

6 Organisation Global Distributor: Representatives and Paying Agents outside Luxembourg: Skandinaviska Enskilda Banken AB (publ) Kungsträdgårdsgatan 8 SE Stockholm, Sweden The full list of representatives and paying agents outside Luxembourg can be obtained, free of any charge, at the address of the Management Company, at the address of the Branch and on the website of the Branch. 4

7 General Information Information SEB deluxe is an open-ended common fund ("FCP" - "Fonds Commun de Placement") governed by Part I of the Luxembourg Law on Undertakings for Collective Investment of 17 December 2010, as amended, (the Law). The Fund qualifies as an Undertaking for Collective Investment in Transferable Securities (UCITS). The Fund was set up on 2 January 2001 for an undetermined duration. The Management Regulations lastly modified with effect from 25 September 2017 have been published in the Recueil Electronique des Sociétés et Associations (RESA) on 19 October The Fund is registered in Luxembourg at the Luxembourg Register of Commerce under the number K 4. The Management Company was established on 19 May 1978 in the form of a Swedish limited liability company (AB). The Management Company is authorised by Finansinspektionen for the management of UCITS and for the discretionary management of financial instruments and investment portfolios under the Swedish UCITS Act (SFS 2004:46). The Management Company is also authorised as an alternative investment fund manager to manage alternative investment funds under the Swedish AIFM Act (SFS 2013:561). The Management Company has delegated parts of the Central Administration as further detailed hereafter, including the administrative, registrar and transfer agent functions - under its continued responsibility and control - at its own expenses to The Bank of New York Mellon SA/NV, Luxembourg Branch, 2-4, rue Eugène Ruppert, L-2453 Luxembourg. This company was incorporated in Luxembourg as a société anonyme on 15 December 1998 and is an indirect wholly-owned subsidiary of The Bank of New York Mellon Corporation. It is registered with the Luxembourg Trade and Companies' Register under Corporate Identity Number B (the Administrative Agent and "Registrar and Transfer Agent ). In the capacity of Administrative Agent, it carries out certain administrative duties related to the administration of the Fund, including the calculation of the NAV of the Units and the provision of account services for the Fund. In its capacity as Registrar and Transfer Agent, it will process all subscriptions, redemptions and transfers of units, and will register these transactions in the Unitholders register of the Fund. The main objective of each Sub-Fund will be to invest directly and/or indirectly in transferable securities and other Eligible Assets, with the purpose of spreading investment risks and achieving long-term capital growth. The investment objectives of the Sub-Funds will be carried out in compliance with the investment restrictions set forth in the latest prospectus. At present, three Sub-Funds are at the Unitholders disposal: SEB deluxe - Multi Asset Defensive SEB deluxe - Multi Asset Defensive Plus SEB deluxe - Multi Asset Balance Unless otherwise laid down in part II of the Prospectus "The Sub-Funds", the Management Company may decide to issue, for each Sub-Fund, capitalisation Units ("C" Units) and distribution Units ("D" Units). The "C" Units will reinvest their income, if any. The "D" Units may pay a dividend to its Unitholders, upon decision of the Management Company. Dividends are paid annually, except for those Sub-Funds where the Management Company would decide on a monthly, quarterly or semi-annual dividend payment. The Management Company may issue Unit Classes whose Reference Currency is not the Base Currency of the respective Sub-Fund. With regard to such Unit Classes, the Management Company has the ambition to hedge the currency exposure from the Base Currency into the currency exposure of the Reference Currency. Considering the practical challenges of doing so, the Management Company does not guarantee how successful such currency hedging of Unit Classes will be. For Unit Classes where the Management Company has an ambition to currency-hedge the Unit Class, an H- will precede the currency denomination of the Unit Class. For example (H-SEK) means that there is an ambition by the Management Company to hedge the currency exposure from a Base Currency into a SEK exposure for the Unit Class. The ambition of such hedging activity is to limit the performance impact related to fluctuations in the exchange rate between the Base Currency and the Reference Currency of the Unit Class. The profit and loss effects related to currency hedging of a particular Unit Class, will be allocated to the relevant Unit Class. 5

8 General Information General Informational Information Currently, the following unit classes are offered for the several Sub-Funds: SEB deluxe - Multi Asset Defensive: o Capitalisation units ( C (EUR) units) o Capitalisation units ( C (H-NOK) units) o Capitalisation units ( C (H-SEK) units) LU LU LU SEB deluxe - Multi Asset Defensive Plus: o Capitalisation units ( C (EUR) units) o Distribution units ( ID (EUR) units) LU LU SEB deluxe - Multi Asset Balance: o Capitalisation units ( C (EUR) units) o Capitalisation units ( C (H-SEK) units) o Distribution units ( ID (EUR) units) LU LU LU The base currency of the Fund and the Sub-Funds is Euro. The issue and redemption prices, which are computed daily on bank business days in Luxembourg, except 24 December and 31 December ("Valuation date"), can be obtained from the registered offices of the Management Company, the Depositary and the Paying Agent. In addition, the Net Asset Value, fact sheets and other informational material is published on the SEB Luxembourg website ("website"). When registered in other countries, the publication media might differ according to the regulatory requirements. Information about ongoing charges can be found in the Key Investor Information Document ("KIID"). The audited annual and un-audited semi-annual reports of the Fund may be obtained, free of charge at the registered office of the Management Company, at the address of its Branch and on the website. These reports as well as copies of the Prospectus, the Management Regulations and the KIID are available, free of charge, at the registered office of the Management Company, at the address of the Branch and on the website. 6

9 Management Report Dear Unitholders, With this report, we want to give you an overview of the general economic environment, the development of the most important capital markets of our Fund SEB deluxe. This annual report covers the financial period from1 October 2016 to 31 December We would like to thank you for your confidence and will do everything within our power to justify your decision of investing in our Fund. Recovery at last Looking back at the past ten years, the perhaps most interesting tendency has been how the market s expectations for future growth has consistently been too optimistic. Every year has started with high expectations which then are revised lower as either a political crisis or a pre-mature - in hindsight - tightening of monetary policy has negatively affected growth. It is in this context that 2017 stands out. For the first time since the financial crisis we have seen a strong and broad-based recovery in growth. We regard it as broad-based in the sense that all sectors and all regions showed gains in unison. It is strong in the sense that a range of major leading indicators ended higher than in decades. The economy s strength did not go un-noticed in the financial markets. As investors embraced the idea that growth was finally gaining speed, and the likelihood for another disappointment fell, equities began to rally. So much in fact, that valuations started to reach levels which in recent history have only been surpassed during the IT bubble of the late 90s. At the time of writing, this is one of the few potential negatives for The fact that the equity markets have already discounted much of the good macroeconomic news means we expect to see somewhat lower equity returns than Furthermore, we also expect volatility to start rising as central banks continue to tighten monetary policy. In the following paragraphs we describe the developments and our outlook for the financial markets, global growth and monetary policy. Financial markets As stated, 2017 was a strong year for risky assets in general and equities in particular. Global equities, measured in local currency, rose by nearly 20%, driven in large part by a strong recovery in earnings. Despite the improving growth outlook, inflation expectations and longer dated yields ended up largely where they started at the beginning of This disconnect was caused by a string of surprisingly weak inflation numbers coming out of the US throughout As the labour market continued to tighten, however, the US Federal Reserve continued to hike rates in 2017 which ensured that the US yield curve flattened significantly. This development contrasted the strong growth outlook as a flattening, inverted, yield curve traditionally is seen as a sign of an imminent recession. In a broader asset allocation context, the most interesting feature of 2017 was the low levels of volatility. The US S&P 500 implied equity volatility Index (VIX) ended up averaging the lowest levels since the inception of the index and the S&P 500 had only eight days when the index either fell or rose by more than 1%. We have to go all the way back to 1965 to find a year which replicates this pattern. Global growth During the summer of 2017, global growth started to accelerate significantly. All major PMIs (Purchasing Manager Index) and consumer confidence indicators started to rise in unison for the first time since the financial crisis. Not only was the strength concerted in the sense that all major leading indicators started to rise, it was also very strong. For example, US consumer confidence rose to the highest levels since 2001 and IFO, the leading indicator for Germany, posted its highest levels on record. 7

10 Informational Information Given the strength in the economy over the second half of 2017, we are at a point where growth seems finally to have consolidated. The likelihood of a slowdown in growth has fallen significantly and if leading indicators are to be trusted the momentum seems set to continue going into Finally, it is also worth noting that global trade has once more started to rise. The growth rate in trade for large global exporters such as South Korea has left the single digit range which has dominated since This development will be especially beneficial for the Emerging Market space in particular. Monetary policy As growth strengthened in 2017, global central banks continued to tighten monetary policy. In contrast to the last five years this tightening fortunately did not have a negative impact on financial markets. The US Federal Reserve hiked rates three times in This was in line with their projection, but more than what the market was pricing. This decision to hike was largely motivated by the strong labour market, which is projected to result in higher wage inflation, and a view that the low inflation readings of 2017 were caused by temporary factors. At the time of writing, early 2018, there has been no material change in the Fed s outlook and it is aiming for three hikes over the next 12 months. The ECB announced it will continue to withdraw support through its purchases of bonds. There was some anxiety that this announcement would have a negative effect on the broader financial markets, but this didn t happen and the strong growth theme dominated. The development regarding the ECB announcement illustrated that central banks in general had less impact on financial markets in 2017 than they have had in the last couple of years. Outlook for financial markets & economic growth As of writing, we find it hard not to be constructive on the outlook for the global economy. We expect that all the positive leading indicators (questionnaires for firms and consumers) will translate into even higher growth rates for consumption and production in the coming months. In line with the growing economy, we expect central banks to continue to tighten monetary policy. As the US economy is farthest ahead in the economic cycle, we expect this tightening to be driven by the Fed. We expect the ECB to follow the announced plan of reducing their bond purchases. In terms of the financial markets, the outlook is more uncertain. As stated, much of the good news from 2017 has already been discounted and, as such, valuations are at levels from which we do not expect to see further multiple expansion. With that said, we believe the growth environment will remain conducive to earnings growth. We expect equities to deliver a higher return than all major fixed income alternatives; albeit lower than Luxembourg, 17 January 2018 SEB Investment Management AB The Board of Directors 8

11 Schedule of Investments As at 31 December 2017 A SEB deluxe - Multi Asset Defensive Security description Maturity Total holdings Market % of value in Net EUR Assets Transferable securities admitted to an official stock exchange listing and/or dealt within another regulated market Investment Funds Debt Funds Ireland ishares USD Corp Bond UCITS ETF 9, , ishares USD Treasury Bond 7-10yr UCITS ETF 5, , Kames Capital - Absolute Return Bond Fund C 250,871 2,582, Neuberger Berman Emerging Markets Debt - Local Currency Fund I 51, , Total Ireland 4,937, Luxembourg Amundi Index Solutions - Index JP Morgan Global GBI Govies IHE-C 1,048 1,426, BlueBay Funds - BlueBay Investment Grade Absolute Return Bond Fund I 11,209 1,200, Deutsche Invest I Convertibles FC 10,170 1,907, Goldman Sachs Global Credit Portfolio Hedged IA 158,920 2,358, Robeco QI Global Dynamic Duration IH EUR 18,143 2,765, Schroder International Selection Fund - EURO Short Term Bond C Cap 341,661 2,624, SEB Fund 4 - SEB Short Bond Fund EUR C EUR 186, , SEB Fund 5 - SEB Corporate Bond Fund EUR C 280, , SEB High Yield Fund - SEB Sustainable High Yield C EUR 20,646 3,192, SEB SICAV 2 - SEB Alternative Fixed Income IC EUR 225,293 2,328, Total Luxembourg 18,518, Total Debt Funds 23,455, Total Investment Funds 23,455, Total Transferable securities admitted to an official stock exchange listing and/or dealt within another regulated market 23,455, ra Total Portfolio 23,455, Forward foreign exchange contracts open with Skandinaviska Enskilda Banken S.A. Buy 168,531 EUR Sell 1,673,776 SEK 19/01/18 (1,717.24) (0.01) Buy 1,910,341 EUR Sell 2,250,000 USD 19/01/18 38, Buy 12,039 NOK Sell 1,221 EUR 19/01/ Buy 194,928,474 SEK Sell 19,612,580 EUR 19/01/18 214, Total forward foreign exchange contracts (total net unrealised) 251,

12 Schedule of Investments As at SEB deluxe - Multi Asset Defensive Market value in EUR % of Net Assets Cash at bank Cash at bank 308, Total Cash at bank 308, Other assets Receivable on subscriptions Retrocession fees receivable 13, Total other assets 14, Liabilities Bank overdraft (9,200.39) (0.04) Management fees (8,236.05) (0.04) Payable on redemptions (55,693.16) (0.23) Bank interest payable on cash accounts (555.89) (0.00) Other liabilities (40,305.72) (0.17) Total liabilities (113,991.21) (0.48) Total Net Assets as at 31 December ,915, A list of changes in the assets held during the financial period under review is available free of charge from SEB Investment Management AB. The accompanying notes are an integral part of these financial statements. 10

13 Schedule of Investments As at 31 December 2017 A SEB deluxe - Multi Asset Defensive Plus Security description Maturity Total holdings Market % of value in Net EUR Assets Transferable securities admitted to an official stock exchange listing and/or dealt within another regulated market Investment Funds Alternative Investment Fund Ireland FundLogic Alternatives Plc - MS PSAM Global Event UCITS Fund P , Total Ireland 213, Total Alternative Investment Fund 213, Commodity Funds Luxembourg Threadneedle Lux - Enhanced Commodities Portfolio IEH 12, , Vontobel Fund - Commodity Fund HI EUR H 2, , Total Luxembourg 351, Total Commodity Funds 351, Debt Funds Ireland IPM Systematic Macro UCITS Fund I , ishares JP Morgan EM Local Government Bond UCITS ETF 2, , ishares USD Treasury Bond 7-10yr UCITS ETF 3, , Kames Capital - Absolute Return Bond Fund C 49, , Neuberger Berman Emerging Markets Debt - Local Currency Fund I 21, , Total Ireland 1,810, Luxembourg Amundi Index Solutions - Index JP Morgan Global GBI Govies IHE-C 1,149 1,563, Goldman Sachs Global Credit Portfolio Hedged IA 9, , Morgan Stanley Investment Funds - Global Asset Backed Securities Fund ZH 16, , Robeco QI Global Dynamic Duration IH EUR 16,192 2,468, SEB Fund 4 - SEB Short Bond Fund EUR C EUR 1,041,815 1,333, SEB Fund 5 - SEB Corporate Bond Fund EUR C 340, , SEB High Yield Fund - SEB Sustainable High Yield C EUR 1, , SEB SICAV 2 - SEB Alternative Fixed Income IC EUR 88, , SEB SICAV 3 - SEB Asset Selection Opportunistic IC EUR 2, , UBAM - Global High Yield Solution IHCE 2, , Total Luxembourg 8,525, Total Debt Funds 10,335, Equity Funds Ireland Artisan Partners Global Funds Plc - Global Value Fund I 29, , Total Ireland 516, Luxembourg BlackRock Strategic Funds - Americas Diversified Equity Absolute Return A2 2, , BlackRock Strategic Funds - European Diversified Equity Absolute Return A2 1, , JPMorgan Funds - Emerging Markets Small Cap I Acc USD 1, , Pictet Total Return - Agora I 2, ,

14 Schedule of Investments As at A SEB deluxe - Multi Asset Defensive Plus Security description Maturity Total holdings Market % of value in Net EUR Assets SEB Fund 1 - SEB Global Fund C 111, , Total Luxembourg 1,361, Sweden SEB Emerging Marketsfond A 53, , SEB Hallbarhetsfond Global A SEK 269, , Total Sweden 611, Total Equity Funds 2,488, Total Investment Funds 13,389, Total Transferable securities admitted to an official stock exchange listing and/or dealt within another regulated market 13,389, Total Portfolio 13,389, Forward foreign exchange contracts open with Skandinaviska Enskilda Banken S.A. Buy 687,927 EUR Sell 810,240 USD 19/01/18 13, Total forward foreign exchange contracts (total unrealised) 13, Cash at bank Cash at bank 202, Total Cash at bank 202, Other assets Receivable on subscriptions Retrocession fees receivable 10, Total other assets 10, Liabilities Management fees (10,086.03) (0.07) Payable on redemptions (115,830.98) (0.86) Bank interest payable on cash accounts (228.13) (0.00) Other liabilities (24,380.29) (0.18) Total liabilities (150,525.43) (1.11) Total Net Assets as at 31 December ,465, A list of changes in the assets held during the financial period under review is available free of charge from SEB Investment Management AB. The accompanying notes are an integral part of these financial statements. 12

15 Schedule of Investments As at 31 December 2017 A = SEB deluxe - Multi Asset Balance Security description Maturity Total holdings Market % of value in Net EUR Assets Transferable securities admitted to an official stock exchange listing and/or dealt within another regulated market Investment Funds Commodity Funds Luxembourg Threadneedle Lux - Enhanced Commodities Portfolio IEH 19, , Vontobel Fund - Commodity Fund HI EUR H 3, , Total Luxembourg 554, Total Commodity Funds 554, Debt Funds Ireland IPM Systematic Macro UCITS Fund I , ishares JP Morgan EM Local Government Bond UCITS ETF 3, , ishares USD Treasury Bond 7-10yr UCITS ETF 4, , Neuberger Berman Emerging Markets Debt - Local Currency Fund I 62, , Total Ireland 1,987, Luxembourg Amundi Index Solutions - Index JP Morgan Global GBI Govies IHE-C 1,048 1,426, Robeco QI Global Dynamic Duration IH EUR 22,968 3,501, SEB Fund 4 - SEB Short Bond Fund EUR C EUR 970,471 1,242, SEB Fund 5 - SEB Corporate Bond Fund EUR C 166, , SEB Fund 5 - SEB Danish Mortgage Bond Fund C EUR 1, , SEB High Yield Fund - SEB Sustainable High Yield C EUR 3, , SEB SICAV 2 - SEB Alternative Fixed Income IC EUR 50, , SEB SICAV 3 - SEB Asset Selection Opportunistic IC EUR 4, , UBAM - Global High Yield Solution IHCE 2, , Total Luxembourg 8,833, Total Debt Funds 10,821, Equity Funds Ireland Artisan Partners Global Funds Plc - Global Value Fund I 71,305 1,246, J O Hambro Capital Management Umbrella Fund plc - Global Select Fund B 505,346 1,268, Total Ireland 2,514, Luxembourg BlackRock Strategic Funds - Americas Diversified Equity Absolute Return A2 2, , BlackRock Strategic Funds - European Diversified Equity Absolute Return A2 2, , JPMorgan Funds - Emerging Markets Small Cap I Acc USD 3, , Pictet Total Return - Agora I 2, , SEB Fund 1 - SEB Global Chance/Risk Fund D EUR 15,670 1,054, SEB Fund 1 - SEB Global Fund C 117, , Total Luxembourg 2,692, Sweden SEB Emerging Marketsfond A 68, ,

16 Schedule of Investments As at SEB deluxe - Multi Asset Balance Security description Maturity Total holdings Market % of value in Net EUR Assets SEB Hallbarhetsfond Global A SEK 692,603 1,202, Total Sweden 1,385, Total Equity Funds 6,593, Total Investment Funds 17,969, Total Transferable securities admitted to an official stock exchange listing and/or dealt within another regulated market 17,969, Total Portfolio 17,969, Forward foreign exchange contracts open with Skandinaviska Enskilda Banken S.A. Buy 895,738 EUR Sell 1,055,000 USD 19/01/18 18, Buy 6,222,002 SEK Sell 626,023 EUR 19/01/18 6, Total forward foreign exchange contracts (total unrealised) 24, Cash at bank Cash at bank 33, Total Cash at bank 33, Other assets Receivable on subscriptions 6, Retrocession fees receivable 19, Total other assets 25, Liabilities Management fees (16,528.62) (0.09) Payable on redemptions (59,434.26) (0.33) Bank interest payable on cash accounts (2.59) (0.00) Other liabilities (25,071.05) (0.14) Total liabilities (101,036.52) (0.56) Total Net Assets as at 31 December ,952, A list of changes in the assets held during the financial period under review is available free of charge from SEB Investment Management AB. The accompanying notes are an integral part of these financial statements. 14

17 Combined Statement of Operations For the period from 1 October 2016 to 31 December 2017 SEB deluxe - SEB deluxe - SEB deluxe - SEB deluxe - Multi Asset Multi Asset Multi Asset Combined Defensive Defensive plus Balance EUR EUR EUR EUR Income Investment income (note 1) 78, , , , Bank interest on cash accounts Retrocession fees (note 3) 117, , , , Total income 196, , , , Expenses Management fees (note 2) 153, , , , Taxe d'abonnement (note 4) 3, , , , Bank interest on cash accounts 2, , Other expenses (note 6) 66, , , , Total expenses 226, , , , Net loss for the period (29,993.63) (119,683.53) (128,523.16) (278,200.32) The accompanying notes are an integral part of these financial statements. 15

18 Combined Statement of Changes in Net Assets For the period from 1 October 2016 to 31 December 2017 SEB deluxe - SEB deluxe - SEB deluxe - SEB deluxe - Multi Asset Multi Asset Multi Asset Combined Defensive Defensive plus Balance EUR EUR EUR EUR Net Assets at the beginning of the period 35,902, ,730, ,191, ,824, Net (loss) for the period (29,993.63) (119,683.53) (128,523.16) (278,200.32) Net realised gain / (loss) on: - sales of securities 550, , , ,695, foreign exchange (1,261,434.71) (59,963.21) (95,923.96) (1,417,321.88) - financial futures contracts 16, , , Total net realised gain/(loss) (710,735.80) 407, , , Change in net unrealised appreciation / (depreciation) on: - securities (674,385.16) (454,324.38) (194,156.69) (1,322,866.23) - forward foreign exchange contracts 763, , , , Total change in net unrealised appreciation / (depreciation) 89, (432,422.40) (147,903.13) (490,871.00) Increase / (decrease) in Net Assets as a result of operations (651,274.90) (144,698.28) 340, (455,837.14) Proceeds on issues of units 6,602, , , ,405, Payment on redemptions of units (17,937,459.77) (6,983,440.06) (4,444,281.45) (29,365,181.28) Dividends paid (38,603.13) (37,230.30) (75,833.43) Total Net Assets as at 31 December ,915, ,465, ,952, ,333, The accompanying notes are an integral part of these financial statements. 16

19 RECT Combined Statement of Net Assets As at 31 December 2017 SEB deluxe - SEB deluxe - SEB deluxe - SEB deluxe - Multi Asset Multi Asset Multi Asset Combined Defensive Defensive plus Balance EUR EUR EUR EUR Assets Portfolio at cost 22,777, ,999, ,032, ,809, Unrealised appreciation 677, , , ,003, Portfolio at market value (note 1) 23,455, ,389, ,969, ,813, Unrealised appreciation on forward foreign exchange contracts 251, , , , Cash at bank 308, , , , Other assets 14, , , , Total Assets 24,029, ,616, ,053, ,698, Liabilities Bank overdraft (9,200.39) (9,200.39) Other liabilities (104,790.82) (150,525.43) (101,036.52) (356,352.77) Total Liabilities (113,991.21) (150,525.43) (101,036.52) (365,553.16) Total Net Assets as at 31 December ,915, ,465, ,952, ,333, "C (EUR)" units outstanding as at 31 December , , , "C (H-NOK)" units outstanding as at 31 December "C (H-SEK)" units outstanding as at 31 December ,741, , "ID (EUR)" units outstanding as at 31 December , , Net Asset Value per "C (EUR)" unit as at 31 December Net Asset Value per "C (H-NOK)" unit as at 31 December Net Asset Value per "C (H-SEK)" unit as at 31 December Net Asset Value per "ID (EUR)" unit as at 31 December The accompanying notes are an integral part of these financial statements. 17

20 Statistical Information As at 31 December 2017 SEB deluxe - SEB deluxe - SEB deluxe - SEB deluxe - Multi Asset Multi Asset Multi Asset Combined 0 Defensive Defensive plus Balance EUR EUR EUR EUR Number of "C (EUR)" units outstanding as at 31 December , , , as at 30 September , , , as at 30 September , , , Number of "C (H-NOK)" units outstanding as at 31 December as at 30 September as at 30 September Number of "C (H-SEK)" units outstanding as at 31 December ,741, , as at 30 September ,511, , as at 30 September ,796, , Number of "ID (EUR)" units outstanding as at 31 December , , as at 30 September , , as at 30 September , , Total Net Assets as at 31 December ,915, ,465, ,952, ,333, as at 30 September ,902, ,730, ,191, ,824, as at 30 September ,382, ,345, ,070, ,798, Net Asset Value per "C (EUR)" unit as at 31 December as at 30 September as at 30 September Net Asset Value per "C (H-NOK)" unit as at 31 December as at 30 September as at 30 September Net Asset Value per "C (H-SEK)" unit as at 31 December as at 30 September as at 30 September Net Asset Value per "ID (EUR)" unit as at 31 December as at 30 September as at 30 September Dividend paid per ID (EUR) unit The accompanying notes are an integral part of these financial statements. 18

21 Additional information on Management Fees information on Management Fee SEB deluxe - Multi Asset Defensive ISIN Code Fund Name Management fees in % LU SEB Fund 4 - SEB Short Bond Fund EUR C EUR 0.30 LU SEB Fund 5 - SEB Corporate Bond Fund EUR C 0.70 LU SEB High Yield Fund - SEB Sustainable High Yield C EUR 1.20 LU SEB SICAV 2 - SEB Alternative Fixed Income IC EUR 0.75 SEB deluxe - Multi Asset Defensive Plus ISIN Code Fund Name Management fees in % SE SEB Emerging Marketsfond A 1.75 LU SEB Fund 1 - SEB Global Fund C 1.50 LU SEB Fund 4 - SEB Short Bond Fund EUR C EUR 0.30 LU SEB Fund 5 - SEB Corporate Bond Fund EUR C 0.70 SE SEB Hallbarhetsfond Global A SEK 1.50 LU SEB High Yield Fund - SEB Sustainable High Yield C EUR 1.20 LU SEB SICAV 2 - SEB Alternative Fixed Income IC EUR 0.75 LU SEB SICAV 3 - SEB Asset Selection Opportunistic IC EUR 0.75 SEB deluxe - Multi Asset Balance ISIN Code Fund Name Management fees in % SE SEB Emerging Marketsfond A 1.75 LU SEB Fund 1 - SEB Global Chance/Risk Fund D EUR 1.50 LU SEB Fund 1 - SEB Global Fund C 1.50 LU SEB Fund 4 - SEB Short Bond Fund EUR C EUR 0.30 LU SEB Fund 5 - SEB Corporate Bond Fund EUR C 0.70 LU SEB Fund 5 - SEB Danish Mortgage Bond Fund C EUR 0.75 SE SEB Hallbarhetsfond Global A SEK 1.50 LU SEB High Yield Fund - SEB Sustainable High Yield C EUR 1.20 LU SEB SICAV 2 - SEB Alternative Fixed Income IC EUR 0.75 LU SEB SICAV 3 - SEB Asset Selection Opportunistic IC EUR 0.75 The management fees for underlying funds are fully retroceded. 19

22 Notes to the Financial Statements As at 31 December 2017 Note 1. Significant Accounting Policies The Financial Statements have been prepared in accordance with Luxembourg regulations relating to Undertakings for Collective Investment. The Financial Statements have been prepared based on last Net Asset Value of the period which has been calculated on 29 December 2017 with the prices as of that date, the valuation at 29 December 2017 have been presented for the purpose of these Financial Statements. Investments: a) Transferable securities and money market instruments, which are officially listed on a stock exchange, are valued at the last available price. b) Transferable securities and money market instruments, which are not officially listed on a stock exchange, but which are traded on another regulated market are valued at a price no lower than the bid price and no higher than the ask price at the time of the valuation and at which the Management Company considers to be an appropriate market price. c) Transferable securities and money market instruments quoted or traded on several markets are valued on the basis of the last available price on the principal market for the transferable securities or money market instruments in question, unless these prices are not representative. d) In the event that such prices are not in line with market conditions, or for securities and money market instruments other than those covered in a), b) and c) above for which there are no fixed prices, these securities and money market instruments, as well as other assets, will be valued at the current market value as determined in good faith by the Management Company, following generally accepted valuation principles. e) Units or shares of UCI(TS) are valued at the last available Net Asset Value obtained from the Administrative Agent of such UCI(TS) except for Exchange Traded Funds which are valued at the latest available price found on the main stock exchange on which they are listed. f) Derivatives instruments traded on regulated markets or stock exchanges are valued at last available settlement prices of these contracts on regulated markets or stock exchanges on which the derivative instruments are traded by the Fund. Derivatives instruments not traded on regulated markets or on stock exchanges are valued at their net liquidating value determined, pursuant to the policies established in good faith by the Management Company on a basis consistently applied for each different variety of contracts, in accordance with generally recognised principles, taking into consideration the generally accepted accounting practices, the customary practices in line with the market and the interests of the Unitholders. g) Forward foreign exchange contracts are valued based on the latest available forward exchange rates. h) Financial Futures Contracts, which are not matured, are valued at valuation date at market rates prevailing at this date and resulting unrealised appreciation or depreciation are posted as change in net unrealised appreciation/(depreciation) on financial future contracts to the Combined Statement of Changes in Net Assets. In the case that extraordinary circumstances occur which make it impossible or even wrong to make a valuation in accordance with the above-mentioned criteria, the Management Company is entitled to temporarily apply other generally accepted valuation procedures, which are determined by it in good faith, in order to make an appropriate valuation of the Fund's Assets. 20

23 Notes to the Financial Statements As at Gains and losses on the sale of securities are determined using the average cost method. Currency translation: All assets denominated in a different currency to the respective Sub-Funds' currency are converted into this respective Sub- Funds' currency at the last available exchange rate. Separate accounts are maintained for the Sub-Fund in the currency in which the Net Asset Value per unit to which it relates is expressed (the "accounting currency"). Transactions denominated in a currency other than the accounting currency are recorded on the basis of exchange rates prevailing on the date they occur or accrue to the Sub-Fund. Assets and liabilities, expressed in a currency other than the accounting currency, are translated on the basis of exchange rates ruling at the balance sheet date. The consolidated total is translated into EUR at the period end date exchange rate. The Sub-Funds are priced at close of business. The exchange rates are presented in line with when these Sub-Funds are priced. As at 29 December 2017, exchange rates were as follows: 1 DKK = EUR 1 PLN = EUR 1 GBP = EUR 1 SEK = EUR 1 HKD = EUR 1 SGD = EUR 1 NOK = EUR 1 USD = EUR Income: Interest income and bank interest income are recognised on an accrual basis. Dividends are recorded on the ex-dividend date. This income is shown net of any withholding taxes and adjusted accordingly when tax reclaims apply. Note 2. Management Fees In payment for its services, the Management Company receives an annual rate of: 1.00% is charged on SEB deluxe - Multi Asset Defensive C (EUR) units (maximum rate: 1.00%) 0.30% is charged on SEB deluxe - Multi Asset Defensive C (H-NOK) units (maximum rate: 0.30%) 0.30% is charged on SEB deluxe - Multi Asset Defensive C (H-SEK) units (maximum rate: 0.30%) 1.00% is charged on SEB deluxe - Multi Asset Defensive Plus C (EUR) units (maximum rate: 1.50%) 0.55% is charged on SEB deluxe - Multi Asset Defensive Plus ID (EUR) units (maximum rate: 0.75%) 1.25% is charged on SEB deluxe - Multi Asset Balance C (EUR) units (maximum rate: 1.50%) 1.25% is charged on SEB deluxe - Multi Asset Balance C (H-SEK) units (maximum rate: 1.50%) 0.55% is charged on SEB deluxe - Multi Asset Balance ID (EUR) units (maximum rate: 0.75%) A twelfth of this rate is being payable at the end of each month and based on the average Net Assets of each Sub-Fund calculated daily during the relevant month. The Management Company pays accounting, administration and depositary fees on behalf of the Fund. 21

24 Notes to the Financial Statements As at Note 3. Retrocession fees Retrocession of management fees received by the Sub-Fund related to investments made in underlying investment funds are recorded in the caption "Retrocession fees" in the Combined Statement of Operations. Note 4. Taxation The Fund is liable in Luxembourg to a subscription tax ("taxe d'abonnement") of 0.05% or 0.01% (as applicable) per annum of its NAV, such tax being payable quarterly on the basis of the value of the aggregate Net Assets of the Sub-Funds at the end of the relevant calendar quarter. Investments by a Sub-Fund in shares or units of another Luxembourg undertaking for collective investment which are also subject to the taxe d abonnement are excluded from the NAV of the Sub-Fund serving as basis for the calculation of this tax to be paid by the Sub-Fund. No stamp duty or other tax is payable in Luxembourg on the issue of units. Interest, dividend and other income realised by a Sub-Fund on the sale of securities of non-luxembourg issuers, may be subject to withholding and other taxes levied by the jurisdictions in which the income is sourced. Note 5. Transaction Fees Transaction fees incurred by the Fund relating to purchase or sale of transferable securities, money market instruments, derivatives or other eligible assets are mainly composed of custodian fees and broker fees. Most of the transaction fees are included in the transaction price used to calculate the realised and unrealised gain/(loss) on securities. As at 31 December 2017, the transaction fees were as follows: SEB deluxe - Multi Asset Defensive 15, EUR SEB deluxe - Multi Asset Defensive Plus 20, EUR SEB deluxe - Multi Asset Balance 13, EUR Note 6. Other Expenses Other expenses are composed of Settlement fees and Audit fees and are included within Other expenses on the Combined Statement of Operations. The following Other expenses are greater than 10% of the Sub-Fund s total expenses and as such are further disclosed as follows: SEB deluxe Multi Asset Defensive EUR SEB deluxe Multi Asset Defensive Plus EUR SEB deluxe Multi Asset Balance EUR Audit fees 22, , , Settlement fees 15, , , Other fees 28, , , Total Other expenses 66, , ,

25 Notes to the Financial Statements As at Note 7. Significant Events during the period Prospectus A new Prospectus was issued in October Directors There were changes to the Board of Directors of the Management Company during the period. Please refer to the Organisation section on page 3 and 4 for details. Branch SEB Asset Management S.A. (SEB AM) was merged with SEB Investment Management AB (SEB IM AB) as of 2 November Effective 1 April 2017, BNY Mellon has merged its legal entity The Bank of New York Mellon (Luxembourg) S.A., into The Bank of New York Mellon SA/NV, Luxembourg Branch. Financial year end change The financial year changed, this report covers the period from 1 October 2016 to 31 December Effective from January 2018, the new financial year of the Fund will start on 1 January and end on 31 December of the same year. Note 8. Subsequent Events after the period end There were no other subsequent events after the period end. 23

26 Audit Report To the Unitholders of SEB deluxe Our opinion In our opinion, the accompanying financial statements give a true and fair view of the financial position of SEB deluxe (the Fund ) and of each of its Sub-Funds as at 31 December 2017, and of the results of their operations and changes in their net assets for the period from 1 October 2016 to 31 December 2017 in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements. What we have audited The Fund s financial statements comprise: the combined statement of net assets as at 31 December 2017; the schedule of investments as at 31 December 2017; the combined statement of operations for the period from 1 October 2016 to 31 December 2017; the combined statement of changes in net assets for the period from 1 October 2016 to 31 December 2017; and the notes to the financial statements, which include a summary of significant accounting policies. Basis for opinion We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF). Our responsibilities under those Law and standards are further described in the Responsibilities of the Réviseur d entreprises agréé for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.... PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, BP 1443, L-1014 Luxembourg T: , F: , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) R.C.S. Luxembourg B TVA LU

27 We are independent of the Fund in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the financial statements. We have fulfilled our other ethical responsibilities under those ethical requirements. Other information The Board of Directors of the Management Company is responsible for the other information. The other information comprises the information stated in the annual report but does not include the financial statements and our audit report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors of the Management Company for the financial statements The Board of Directors of the Management Company is responsible for the preparation and fair presentation of the financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements, and for such internal control as the Board of Directors of the Management Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Directors of the Management Company is responsible for assessing the Fund s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of the Management Company either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so. 25

28 pwc Responsibilities of the "Réviseur d'entreprises agree for the audit of the financial statements The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 25 July 2016 and with SAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with the Law of 23 July 2016 and with SAs as adopted for Luxembourg by the CSSF, we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also: - identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; 0 obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control; 0 evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors of the Management Company; o conclude on the appropriateness of the Board of Directors of the Management Company's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the Fund to cease to continue as a going concern; 0 evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Pricewaterhousecoopers, Société cooperative Luxembourg, 12 April 2018 Represented by T ierry Blondeau 26