Annual Report SEB SICAV 3

Transcription

1 Annual Report SEB SICAV 3 Status: 31 December 2017 R.C.S B

2 Notice The sole legally binding basis for the purchase of shares of the Company 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 SICAV 3 - SEB Asset Selection Defensive 9 SEB SICAV 3 - SEB Asset Selection Opportunistic 12 Combined Statement of Operations 16 Combined Statement of Changes in Net Assets 17 Combined Statement of Net Assets 18 Statistical Information 19 Notes to the Financial Statements 21 Audit Report 25 Risk Disclosure (unaudited) 28 Remuneration Disclosure (unaudited) 29 1

4 Additional Information to the Investors in Germany As at 31 December 2017 Shares in circulation: The following Sub-Funds are publicly approved for distribution in Germany: SEB SICAV 3 - SEB Asset Selection Opportunistic SEB SICAV 3 - SEB Asset Selection Defensive The information disclosed above is as at 31 December 2017 and this may change after the year end. The current Sub-Funds in circulation and the current registrations per share class are visible in the distribution matrix on 2

5 Organisation Company: SEB SICAV 3 4, rue Peternelchen, L-2370 Howald, Luxembourg Board of Directors of the Company: Chairperson Matthias Ewald Branch Manager SEB Investment Management AB Luxembourg Members Alan Ridgway Independent Director The Directors' Office Luxembourg Henrik Dahlgren Head of Investment Offering SEB Life & Pension Sweden Management Company: Board of Directors of the Management Company: SEB Investment Management AB Stjärntorget 4 SE Solna, Sweden 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 4, rue Peternelchen L-2370 Howald, Luxembourg 3

6 Additional Information to the Investors Central Administration (including the administrative, registrar and transfer agent function) and Paying Agent in Luxembourg: The Bank of New York Mellon SA/NV, Luxembourg Branch 2-4, rue Eugène Ruppert L-2453 Luxembourg Investment Manager: Depositary: Auditor of the Company: Auditor of the Management Company: Global Distributor: Representatives and Paying Agents outside 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 PricewaterhouseCoopers AB Torsgatan 21 SE Stockholm, Sweden 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 the Investors Heading SEB SICAV 3 is a Luxembourg open-ended investment company with variable share capital, organised in the form of a SICAV under the Luxembourg law of 10 August 1915 on commercial companies, as amended ( 1915 Law ), and governed by Part I of the Luxembourg Law on Undertakings for Collective Investment of 17 December 2010, as amended, (the Law ). The Company qualifies as an Undertaking for Collective Investment in Transferable Securities (UCITS). The Company was incorporated on 4 June 2009 for an unlimited duration as a public limited company ( société anonyme ). The Articles of Incorporation were published in the Recueil Spécial des Sociétés et Associations (hereafter Mémorial C ) on 10 July The Articles of Incorporation lastly modified with effect from 1 April 2012 have been published in the Recueil Electronique des Sociétés et Associations (RESA) on 12 April The Company is registered with the RCS under the number B The Company is managed by SEB Investment Management AB (the Management Company ). 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 Company, including the calculation of the NAV of the Shares and the provision of account services for the Company. In its capacity as Registrar and Transfer Agent, it will process all subscriptions, redemptions and transfers of shares, and will register these transactions in the shareholders register of the Company. 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, two Sub-Funds are at the Shareholders disposal: SEB SICAV 3 - SEB Asset Selection Defensive SEB SICAV 3 - SEB Asset Selection Opportunistic Unless otherwise laid down in part II of the Prospectus, "The Sub-Funds", the Company may decide to issue, for each Sub- Fund, capitalisation Shares ("C" Shares) and distribution Shares ("D" Shares). The "C" Shares will reinvest their income, if any. The "D" Shares may pay a dividend to its Shareholders, upon decision of the Company. Dividends are paid annually, except for those Sub-Funds where the Company would decide on a monthly, quarterly or semi-annual dividend payment. The Company may issue Share Classes whose Reference Currency is not the Base Currency of the respective Sub-Fund. With regard to such Share Classes, the 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 Company does not guarantee how successful such currency hedging of Share Classes will be. 5

8 General Information to the Investors For Share Classes where the Company has an ambition to currency-hedge the Share Class, an H- will precede the currency denomination of the Share Class. For example (H-SEK) means that there is an ambition by the Company to hedge the currency exposure from a Base Currency into a SEK-exposure for the Share 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 Share Class. The profit and loss effects related to currency hedging of a particular Share Class, will be allocated to the relevant Share Class. Currently, the following share classes are offered for the Sub-Funds: SEB SICAV 3 - SEB Asset Selection Defensive o Capitalisation shares ( C (EUR) shares) o Capitalisation shares ( C (H-SEK) LTD shares) o Capitalisation shares ( C (H-SEK) shares) LU LU LU SEB SICAV 3 - SEB Asset Selection Opportunistic o Capitalisation shares ( C (EUR) shares) o Capitalisation shares ( C (H-NOK) shares) o Capitalisation shares ( C (H-SEK) shares) o Capitalisation shares ( IC (EUR) shares) o Distribution shares ( ID (H-SEK) shares) o Capitalisation shares ( SIC (H-USD) shares) LU LU LU LU LU LU The base currency of the Company is Euro. The currency of 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 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 Company 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 Heading Dear Shareholders, 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 Company SEB SICAV 3. We would like to thank you for your confidence and will do everything within our power to justify your decision of investing in our Company. 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. 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

10 Management Report Management anagement Report Headin 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 As at SEB SICAV 3 - SEB Asset Selection Defensive Security description Maturity Total holdings Market % of value in Net EUR Assets Bonds and Money Market Instruments indicated in 1,000 currency units Transferable securities admitted to an official stock exchange listing Bonds Sweden 4.25 % Sweden Government Bond 12/03/19 42,000 4,525, Total Sweden 4,525, Total Bonds 4,525, Money Market Instruments Netherlands 0.00 % Dutch Treasury Certificate 31/01/ , % Dutch Treasury Certificate 29/03/18 1,200 1,202, % Dutch Treasury Certificate 30/04/ , Total Netherlands 2,854, Sweden 0.00 % Sweden Treasury Bill 17/01/18 13,000 1,321, % Sweden Treasury Bill 21/02/18 27,000 2,746, % Sweden Treasury Bill 21/03/18 48,000 4,883, % Sweden Treasury Bill 20/06/18 35,900 3,658, Total Sweden 12,610, Total Money Market Instruments 15,465, Total Transferable securities admitted to an official stock exchange listing 19,990, Total Portfolio 19,990, Financial futures cleared with Skandinaviska Enskilda Banken AB (publ) Purchased financial futures contracts Commitment in EUR Amsterdam Exchanges Index Future 545, /01/18 5 (5,133.81) (0.02) CBOT U.S. Treasury Bond Future 636, /03/18 5 (1,583.35) (0.01) CBOT Ultra T Bond Future 696, /03/18 5 (1,107.40) (0.01) CME British Pound Future 1,412, /03/ , CME Canadian Dollar Future 332, /03/18 5 6, CME E-Mini Nasdaq 100 Index Future 429, /03/18 4 5, CME E-Mini Russell 2000 Index Future 387, /03/18 6 5, CME Euro FX Future 1,255, /03/ , CME S+P Mini Midcap 400 Future 478, /03/18 3 4, CME Standard And Poors 500 E-Mini Future 560, /03/18 5 7, Eurex Dax Future 322, /03/18 1 (3,231.25) (0.01) Eurex Dow Jones Euro Stoxx 50 Future 349, /03/18 10 (7,860.00) (0.04) Eurex Euro Bobl Futures 2,499, /03/18 19 (14,290.00) (0.07) Eurex Euro Bund Future 1,776, /03/18 11 (16,063.93) (0.08) Eurex Euro Buxl Future 818, /03/18 5 (15,100.00) (0.07) Eurex Euro OAT Futures 1,860, /03/18 12 (24,851.00) (0.12) Eurex Euro Schatz Future 3,359, /03/18 30 (4,157.55) (0.02) Eurex Long Term Euro BTP Futures 1,225, /03/18 9 (25,428.35) (0.12) HKFE Hang Seng China Enterprises Future 187, /01/18 3 2, HKFE Hang Seng Index Future 319, /01/18 2 3, ICE MSCI Emerging Markets Mini Index Future 339, /03/ ,

12 of Investments Heading Rep SEB SICAV 3 - SEB Asset Selection Defensive Security description Maturity Total holdings Market % of value in Net EUR Assets Financial futures cleared with Skandinaviska Enskilda Banken AB (publ) Purchased financial futures contracts Commitment in EUR IDEM FTSE MIB Future 327, /03/18 3 (12,059.95) (0.06) LIFFE 3Mth Euribor Interest Rate Future 11,535, /06/18 46 (580.21) (0.01) LIFFE FTSE 100 Index Future 517, /03/ , LIFFE Long Gilt Future 1,269, /03/18 9 1, LIFFE Short Sterling Futures 6,998, /06/ , MEFF Euro Ibex-35 Future 200, /01/18 2 (4,381.54) (0.02) MSE S+P Canada 60 Index Future 633, /03/ OMXS 30 Index Future 305, /01/18 19 (6,315.58) (0.03) Safex Top 40 Index Future 323, /03/18 9 7, SFE Australian Share Price Index 200 Future 588, /03/18 6 2, SGX MSCI Singapore Enhanced Index Future 435, /01/ , Simex CNX Nifty Index Future New $2 422, /01/ Simex Nikkei 225 Future 337, /03/ TSE Tokyo Stock Price Index Future 403, /03/18 3 7, Sold financial futures contracts Commitment in EUR CBOT 10 Year U.S. Treasury Note Future (1,859,873.26) 20/03/18 (18) 10, CBOT Five Year Treasury Note Future (3,098,407.78) 29/03/18 (32) 17, CBOT Two Year Treasury Note Future (4,105,770.73) 29/03/18 (23) 7, CME Australian Dollar Future (390,869.64) 19/03/18 (6) (12,006.75) (0.06) CME Eurodollar Future (9,404,138.72) 18/06/18 (46) (1,086.30) (0.00) CME Japanese Yen Future (1,766,607.31) 19/03/18 (19) (6,320.01) (0.03) CME Mexican Peso Future (41,781.81) 19/03/18 (2) CME New Zealand Dollar Future (889,249.70) 19/03/18 (15) (19,191.28) (0.09) CME Swiss Franc Future (1,717,798.63) 19/03/18 (16) (21,241.83) (0.10) KRX 3Year KTB Future (2,436,886.18) 20/03/18 (29) 3, MSE 10Year Canadian Government Bond Future (358,425.48) 20/03/18 (4) 1, MSE 3Mth Canadian Bankers Acceptance Future (2,604,413.22) 18/06/18 (16) (100.54) (0.00) Total financial futures contracts (total net unrealised) (42,238.85) (0.20) An amount of EUR 84, is held as cash collateral and additional collateral is held for this position as detailed in note 6. 10

13 Schedule of Investments As at As at SEB SICAV 3 - SEB Asset Selection Defensive Security description Maturity Market % of value in EUR Net Assets Forward foreign exchange contracts open with Skandinaviska Enskilda Banken S.A. Buy 12,916 EUR Sell 20,000 AUD 22/01/18 (97.97) (0.00) Buy 17,436 EUR Sell 20,366 CHF 22/01/ Buy 61,436 EUR Sell 54,389 GBP 22/01/ Buy 159,272 EUR Sell 1,479,266 HKD 22/01/18 1, Buy 129,277 EUR Sell 17,350,284 JPY 22/01/ Buy 18,004,513 EUR Sell 178,294,246 SEK 22/01/18 (114,234.35) (0.55) Buy 15,606 EUR Sell 24,943 SGD 22/01/ Buy 100,000 EUR Sell 118,875 USD 22/01/18 1, Buy 30,986 GBP Sell 35,000 EUR 22/01/18 (97.00) (0.00) Buy 22,338 GBP Sell 30,000 USD 22/01/ Buy 36,512 HKD Sell 6,000 CAD 22/01/18 (86.45) (0.00) Buy 2,300,000 HKD Sell 2,449,500 SEK 22/01/18 (3,702.77) (0.02) Buy 19,994,000 JPY Sell 1,476,557 SEK 22/01/18 (1,922.59) (0.01) Buy 205,083,464 SEK Sell 20,707,894 EUR 22/01/18 133, Buy 574,000 SEK Sell 92,631 SGD 22/01/ Buy 5,968,000 SEK Sell 716,197 USD 22/01/18 10, Buy 65,350 SEK Sell 100,000 ZAR 22/01/18 (98.46) (0.00) Buy 207,507 USD Sell 174,559 EUR 22/01/18 (1,756.72) (0.01) Buy 124,000 USD Sell 969,494 HKD 22/01/18 (104.33) (0.00) Buy 78,000 USD Sell 8,800,740 JPY 22/01/18 (247.07) (0.00) Buy 224,000 USD Sell 1,866,570 SEK 22/01/18 (3,149.03) (0.01) Buy 4,698 USD Sell 60,000 ZAR 22/01/18 (131.16) (0.00) Buy 760,000 ZAR Sell 50,083 EUR 22/01/18 1, Total forward foreign exchange contracts (total net unrealised) 23, Cash at bank and at broker Cash at bank and at broker 861, Total Cash at bank and at broker 861, Other assets Interest receivable on bonds 144, Bank interest receivable on cash accounts Other assets 2, Total other assets 147, Liabilities Bank overdraft (980.64) (0.00) Management fees (15,651.16) (0.08) Other liabilities (24,798.18) (0.12) Total liabilities (41,429.98) (0.20) Total Net Assets as at 31 December ,939, A list of changes in the assets held during the financial year under review is available free of charge from SEB Investment Management AB. The accompanying notes are an integral part of these financial statements. 11

14 Schedule of Investments As at 31 December 2017 of Investments of As SEB SICAV 3 - SEB Asset Selection Opportunistic Security description Maturity Total holdings Market % of value in Net EUR Assets Bonds and Money Market Instruments indicated in 1,000 currency units Transferable securities admitted to an official stock exchange listing Bonds Sweden 4.25 % Sweden Government Bond 12/03/19 614,000 66,163, Total Sweden 66,163, Total Bonds 66,163, Money Market Instruments Netherlands 0.00 % Dutch Treasury Certificate 31/01/18 29,200 29,218, % Dutch Treasury Certificate 29/03/18 32,000 32,059, % Dutch Treasury Certificate 30/04/18 20,000 20,054, Total Netherlands 81,333, Sweden 0.00 % Sweden Treasury Bill 17/01/18 186,000 18,907, % Sweden Treasury Bill 21/02/18 240,000 24,412, % Sweden Treasury Bill 21/03/18 736,000 74,887, % Sweden Treasury Bill 20/06/18 588,600 59,980, Total Sweden 178,188, United States of America 0.00 % United States Treasury Bill 17/05/18 1, , Total United States of America 829, Total Money Market Instruments 260,351, Total Transferable securities admitted to an official stock exchange listing 326,515, Total Portfolio 326,515, Financial futures cleared with Skandinaviska Enskilda Banken AB (publ) Purchased financial futures contracts Commitment in EUR Amsterdam Exchanges Index Future 33,499, /01/ (320,887.49) (0.10) CBOT U.S. Treasury Bond Future 45,822, /03/ (99,768.61) (0.03) CBOT Ultra T Bond Future 47,221, /03/ , CME British Pound Future 91,520, /03/18 1,296 1,031, CME Canadian Dollar Future 21,465, /03/ , CME E-Mini Nasdaq 100 Index Future 25,347, /03/ , CME E-Mini Russell 2000 Index Future 24,904, /03/ , CME Euro FX Future 73,578, /03/ ,177, CME S+P Mini Midcap 400 Future 31,869, /03/ , CME Standard And Poors 500 E-Mini Future 37,765, /03/ , Eurex Dax Future 24,539, /03/18 76 (470,128.65) (0.14) Eurex Dow Jones Euro Stoxx 50 Future 23,436, /03/ (521,548.95) (0.15) Eurex Euro Bobl Futures 99,057, /03/ (548,509.98) (0.16) Eurex Euro Bund Future 98,850, /03/ (832,511.75) (0.25) Eurex Euro Buxl Future 51,899, /03/ (984,524.30) (0.29) Eurex Euro OAT Futures 98,766, /03/ (1,297,829.70) (0.38) Eurex Euro Schatz Future 88,008, /03/ (106,869.17) (0.03) 12

15 Schedule of Investments As at of As SEB SICAV 3 - SEB Asset Selection Opportunistic Security description Maturity Total holdings Market % of value in Net EUR Assets Financial futures cleared with Skandinaviska Enskilda Banken AB (publ) Purchased financial futures contracts Commitment in EUR Eurex Long Term Euro BTP Futures 82,815, /03/ (1,877,378.80) (0.55) HKFE Hang Seng China Enterprises Future 14,018, /01/ , HKFE Hang Seng Index Future 21,410, /01/ , ICE MSCI Emerging Markets Mini Index Future 22,136, /03/ , IDEM FTSE MIB Future 19,551, /03/ (691,695.57) (0.20) LIFFE 3Mth Euribor Interest Rate Future 745,052, /06/18 2,971 (38,125.20) (0.01) LIFFE FTSE 100 Index Future 32,847, /03/ , LIFFE Long Gilt Future 79,706, /03/ , LIFFE Short Sterling Futures 455,587, /06/18 3, , MEFF Euro Ibex-35 Future 11,539, /01/ (213,971.14) (0.06) MSE S+P Canada 60 Index Future 38,276, /03/ , OMXS 30 Index Future 20,516, /01/18 1,277 (469,722.14) (0.14) Safex Top 40 Index Future 20,057, /03/ , SFE Australian Share Price Index 200 Future 38,729, /03/ , SGX MSCI Singapore Enhanced Index Future 28,812, /01/18 1, , Simex CNX Nifty Index Future New $2 27,344, /01/18 1,553 6, Simex Nikkei 225 Future 22,343, /03/ , TSE Tokyo Stock Price Index Future 26,526, /03/ , Sold financial futures contracts Commitment in EUR CBOT 10 Year U.S. Treasury Note Future (98,779,935.37) 20/03/18 (956) 638, CBOT Five Year Treasury Note Future (98,761,748.09) 29/03/18 (1,020) 539, CBOT Two Year Treasury Note Future (98,717,009.41) 29/03/18 (553) 171, CME Australian Dollar Future (37,718,920.71) 19/03/18 (579) (1,121,312.78) (0.33) CME Eurodollar Future (611,677,892.23) 18/06/18 (2,992) (72,663.33) (0.02) CME Japanese Yen Future (117,897,793.01) 19/03/18 (1,268) (465,939.93) (0.14) CME Mexican Peso Future (2,402,454.20) 19/03/18 (115) (671.21) (0.00) CME New Zealand Dollar Future (60,231,846.60) 19/03/18 (1,016) (1,112,866.44) (0.33) CME Swiss Franc Future (110,905,374.13) 19/03/18 (1,033) (1,008,354.14) (0.30) KRX 3Year KTB Future (98,315,752.93) 20/03/18 (1,170) 125, MSE 10Year Canadian Government Bond Future (20,251,038.88) 20/03/18 (226) 80, MSE 3Mth Canadian Bankers Acceptance Future (170,914,618.14) 18/06/18 (1,050) (8,940.25) (0.00) Total financial futures contracts (total net unrealised) (2,987,333.59) (0.88) An amount of EUR 791, is held as cash collateral and additional collateral is held for this position as detailed in note 6. 13

16 Heading SEB SICAV 3 - SEB Asset Selection Opportunistic Security description Maturity Market % of value in EUR Net Assets Forward foreign exchange contracts open with Skandinaviska Enskilda Banken S.A. Buy 461,320 AUD Sell 455,000 CAD 22/01/18 (1,592.93) (0.00) Buy 400,000 AUD Sell 2,399,920 HKD 22/01/18 4, Buy 2,277,059 AUD Sell 14,567,030 SEK 22/01/18 1, Buy 3,433,500 CAD Sell 2,250,000 EUR 22/01/18 27, Buy 2,100,000 CAD Sell 13,618,710 SEK 22/01/18 8, Buy 2,929,615 EUR Sell 4,504,630 AUD 22/01/18 (1,477.92) (0.00) Buy 1,582,052 EUR Sell 2,414,212 CAD 22/01/18 (19,109.80) (0.01) Buy 744,689 EUR Sell 869,797 CHF 22/01/18 1, Buy 687,881 EUR Sell 608,981 GBP 22/01/18 1, Buy 8,216,196 EUR Sell 1,102,695,731 JPY 22/01/18 46, Buy 51,092 EUR Sell 504,616 NOK 22/01/18 (188.21) (0.00) Buy 268,653,588 EUR Sell 2,661,392,547 SEK 22/01/18 (1,804,385.62) (0.53) Buy 1,410,000 EUR Sell 2,253,603 SGD 22/01/18 5, Buy 36,022,010 EUR Sell 42,826,866 USD 22/01/18 357, Buy 1,195,155 GBP Sell 1,350,000 EUR 22/01/18 (3,741.55) (0.00) Buy 1,960,000 GBP Sell 21,934,360 SEK 22/01/18 (21,226.72) (0.01) Buy 50,575,284 HKD Sell 5,445,405 EUR 22/01/18 (53,153.48) (0.02) Buy 22,550,000 HKD Sell 24,015,750 SEK 22/01/18 (36,303.27) (0.01) Buy 23,000,000 HKD Sell 2,941,741 USD 22/01/18 2, Buy 741,920,000 JPY Sell 54,790,792 SEK 22/01/18 (71,341.99) (0.02) Buy 504,350,100 JPY Sell 4,470,000 USD 22/01/18 14, Buy 221,724 NOK Sell 22,448 EUR 22/01/ Buy 20,220,000 SEK Sell 3,117,916 CAD 22/01/18 (13,064.01) (0.00) Buy 3,283,968,100 SEK Sell 331,511,961 EUR 22/01/18 2,213, Buy 38,580,000 SEK Sell 3,447,413 GBP 22/01/18 37, Buy 84,450,000 SEK Sell 79,295,775 HKD 22/01/18 127, Buy 44,400,000 SEK Sell 601,218,686 JPY 22/01/18 57, Buy 26,400,000 SEK Sell 4,260,401 SGD 22/01/18 27, Buy 185,657,012 SEK Sell 22,280,000 USD 22/01/18 313, Buy 13,500,000 SEK Sell 20,657,995 ZAR 22/01/18 (20,340.68) (0.01) Buy 731,070 SGD Sell 457,404 EUR 22/01/18 (1,741.39) (0.00) Buy 171,999 SGD Sell 1,000,000 HKD 22/01/ Buy 5,300,000 SGD Sell 32,841,980 SEK 22/01/18 (34,092.81) (0.01) Buy 37,454,267 USD Sell 31,507,262 EUR 22/01/18 (317,074.90) (0.09) Buy 175,933 USD Sell 131,000 GBP 22/01/18 (1,053.44) (0.00) Buy 1,770,000 USD Sell 13,838,745 HKD 22/01/18 (1,489.15) (0.00) Buy 30,117,966 USD Sell 250,970,000 SEK 22/01/18 (423,402.62) (0.12) Buy 2,296,554 USD Sell 29,334,935 ZAR 22/01/18 (64,566.67) (0.02) Buy 56,500,000 ZAR Sell 36,922,750 SEK 22/01/18 55, Total forward foreign exchange contracts (total net unrealised) 415,

17 Combined Statement of Operations Heading For the year ended Schedule of Investments Heading spacing SEB SICAV 3 - SEB Asset Selection Opportunistic Market value in EUR % of Net Assets Cash at bank and at broker Cash at bank and at broker 16,413, Total Cash at bank and at broker 16,413, Other assets Interest receivable on bonds 2,114, Receivable on subscriptions 22, Other assets 7, Total other assets 2,143, Liabilities Bank overdraft (1,816,329.76) (0.53) Management fees (346,867.05) (0.10) Payable on redemptions (21,870.15) (0.01) Bank interest payable on cash accounts (481.78) (0.00) Other liabilities (508,366.82) (0.15) Total liabilities (2,693,915.56) (0.79) Total Net Assets as at 31 December ,806, A list of changes in the assets held during the financial year under review is available free of charge from SEB Investment Management AB. The accompanying notes are an integral part of these financial statements. 15

18 Combined Statement of Operations For the year ended 31 December 2017 SEB SICAV 3 - SEB SICAV 3 - SEB SICAV 3 - SEB Asset SEB Asset Combined Selection Selection Defensive Opportunistic EUR EUR EUR Income Interest on bonds (note 1) 153, ,216, ,370, Bank interest on cash accounts 2, , , Total income 156, ,288, ,444, Expenses Management fees (note 2) 251, ,615, ,866, Performance fees (note 3) 3, , Taxe d'abonnement (note 4) 13, , , Bank interest on cash accounts 1, , , Other expenses 12, , , Total expenses 278, ,833, ,112, Net loss for the year (122,759.79) (2,544,808.45) (2,667,568.24) The accompanying notes are an integral part of these financial statements. 16

19 cik Combined Statement of Changes in Net Assets ngeading For the year ended 31 December 2017 Heading SEB SICAV 3 - SEB SICAV 3 - SEB SICAV 3 - SEB Asset SEB Asset Combined Selection Selection Defensive Opportunistic EUR EUR EUR Net Assets at the beginning of the year 28,286, ,478, ,764, Net (loss) for the year (122,759.79) (2,544,808.45) (2,667,568.24) Net realised gain / (loss) on: - sales of securities (960,188.51) (10,225,995.88) (11,186,184.39) - foreign exchange 60, (515,601.12) (454,726.69) - financial futures contracts 414, ,840, ,255, Total net realised gain/(loss) (484,537.60) 12,099, ,614, Change in net unrealised appreciation / (depreciation) on: - securities (13,397.91) (2,575,349.03) (2,588,746.94) - forward foreign exchange contracts (190,201.57) (2,746,355.52) (2,936,557.09) - financial futures contracts (268,182.65) (13,213,218.00) (13,481,400.65) Total change in net unrealised depreciation (471,782.13) (18,534,922.55) (19,006,704.68) Decrease in Net Assets as a result of operations (1,079,079.52) (8,980,503.64) (10,059,583.16) Proceeds on issues of shares 9,803, ,397, ,201, Payment on redemptions of shares (16,072,026.94) (104,185,778.49) (120,257,805.43) Dividends paid (1,902,300.35) (1,902,300.35) Total Net Assets as at 31 December ,939, ,806, ,746, The accompanying notes are an integral part of these financial statements. 17

20 Combined Statement of Net Assets As at 31 December 2017 SEB SICAV 3 - SEB SICAV 3 - SEB SICAV 3 - SEB Asset SEB Asset Combined Selection Selection Defensive Opportunistic EUR EUR EUR Assets Portfolio at cost 20,109, ,216, ,326, Unrealised depreciation (118,594.20) (3,701,828.99) (3,820,423.19) Portfolio at market value (note 1) 19,990, ,515, ,506, Unrealised appreciation on forward foreign exchange contracts 23, , , Receivable interest and / or dividends 144, ,114, ,258, Cash at bank and at broker 861, ,413, ,274, Other assets 2, , , Total Assets 21,023, ,488, ,511, Liabilities Bank overdraft (980.64) (1,816,329.76) (1,817,310.40) Unrealised depreciation on financial futures contracts (42,238.85) (2,987,333.59) (3,029,572.44) Other liabilities (40,449.34) (877,585.80) (918,035.14) Total Liabilities (83,668.83) (5,681,249.15) (5,764,917.98) Total Net Assets as at 31 December ,939, ,806, ,746, "C (EUR)" shares outstanding as at 31 December , , "C (H-NOK)" shares outstanding as at 31 December , "C (H-SEK) LTD" shares outstanding as at 31 December , "C (H-SEK)" shares outstanding as at 31 December ,835, ,331, "IC (EUR)" shares outstanding as at 31 December , "ID (H-SEK)" shares outstanding as at 31 December ,034, "SIC (H-USD)" shares outstanding as at 31 December , Net Asset Value per "C (EUR)" share as at 31 December Net Asset Value per "C (H-NOK)" share as at 31 December Net Asset Value per "C (H-SEK) LTD" share as at 31 December Net Asset Value per "C (H-SEK)" share as at 31 December Net Asset Value per "IC (EUR)" share as at 31 December Net Asset Value per "ID (H-SEK)" share as at 31 December Net Asset Value per "SIC (H-USD)" share as at 31 December The accompanying notes are an integral part of these financial statements. 18

21 Statistical Information As at 31 December 2017 SEB SICAV 3 - SEB SICAV 3 - SEB SICAV 3 - SEB Asset SEB Asset Combined Selection Selection 0 Defensive Opportunistic EUR EUR EUR Number of "C (EUR)" shares outstanding as at 31 December , , as at 31 December , , as at 31 December , , Number of "C (H-NOK)" shares outstanding as at 31 December , as at 31 December , as at 31 December , Number of "C (H-SEK) LTD" shares outstanding as at 31 December , as at 31 December , as at 31 December , Number of "C (H-SEK)" shares outstanding as at 31 December ,835, ,331, as at 31 December ,378, ,737, as at 31 December ,789, ,155, Number of "IC (EUR)" shares outstanding as at 31 December , as at 31 December , as at 31 December , Number of "ID (H-SEK)" shares outstanding as at 31 December ,034, as at 31 December ,063, as at 31 December ,828, Number of "SIC (H-USD)" shares outstanding as at 31 December , as at 31 December , as at 31 December Total Net Assets as at 31 December ,939, ,806, ,746, as at 31 December ,286, ,478, ,764, as at 31 December ,825, ,856, ,682, Net Asset Value per "C (EUR)" share as at 31 December as at 31 December as at 31 December Net Asset Value per "C (H-NOK)" share as at 31 December as at 31 December as at 31 December Net Asset Value per "C (H-SEK) LTD" share as at 31 December as at 31 December as at 31 December The accompanying notes are an integral part of these financial statements. 19

22 Combined Statement of Net Assets Heading As at Heading Net Asset Value per "C (H-SEK)" share as at 31 December as at 31 December as at 31 December Net Asset Value per "IC (EUR)" share as at 31 December as at 31 December as at 31 December Net Asset Value per "ID (H-SEK)" share as at 31 December as at 31 December as at 31 December Net Asset Value per "SIC (H-USD)" share as at 31 December as at 31 December as at 31 December Dividend paid per ID (H-SEK) share The accompanying notes are an integral part of these financial statements. 20

23 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 year which has been calculated on 29 December 2017 with the prices as of that date. 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 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 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 Company. 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 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 Shareholders. 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. 21

24 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 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 Company's Assets. Gains and losses on the sale of securities are determined using the average cost method. Swing pricing: The Investment Manager needs to perform transactions in order to uphold the desired asset allocation as a result of the flows in and out of the Sub-Funds. While performing these transactions brokerage and transaction costs will occur. Acting in the Shareholders' interest, the Net Asset Value will be adjusted upwards in case of large inflows and downwards in case of large outflows if on any Valuation Day the aggregate inflows and outflows in all Classes of a Sub-Fund result in a net increase or decrease of shares which exceeds a threshold set by the Board of Directors of the Company from time to time (relating to the cost of market dealing for the Sub-Fund), the Net Asset Value per share of the relevant Sub-Fund will be adjusted to reflect both the estimated fiscal charges and dealing costs (brokerage and transaction costs) that may be incurred by the Sub-Fund and the estimated bid/offer spread of the assets in which the respective Sub-Fund invests following the net inflows/outflows of the Sub-Fund. The adjustment will be an addition when the net movement results in a net inflows of the Sub-Fund and a deduction when it results in a net outflows. Adjustments made during the year are recorded in Proceeds on issues of shares and Payment on redemptions of shares in the Combined Statement of Changes in Net Assets. No swing pricing adjustment has been applied to the year end Net Asset Value per share calculated on 29 December 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 average exchange rate. Separate accounts are maintained for each Sub-Fund in the currency in which the Net Asset Value per share 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 year end date exchange rate. As at 29 December 2017, the exchange rates were as follows: 1 AUD = EUR 1 KRW = EUR 1 CAD = EUR 1 NOK = EUR 1 CHF = EUR 1 SEK = EUR 1 GBP = EUR 1 SGD = EUR 1 HKD = EUR 1 USD = EUR 1 JPY = EUR 1 ZAR = EUR 22

25 Notes to the Financial Statements 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: 0.95% is charged on SEB Asset Selection Defensive C (EUR) shares (maximum rate: 0.95%) 0.95% is charged on SEB Asset Selection Defensive C (H-SEK) LTD shares (maximum rate: 0.95%) 0.95% is charged on SEB Asset Selection Defensive C (H-SEK) shares (maximum rate: 0.95%) 1.50% is charged on SEB Asset Selection Opportunistic C (EUR) shares (maximum rate: 1.50%) 1.50% is charged on SEB Asset Selection Opportunistic C (H-NOK) shares (maximum rate: 1.50%) 1.50% is charged on SEB Asset Selection Opportunistic C (H-SEK) shares (maximum rate: 1.50%) 0.75% is charged on SEB Asset Selection Opportunistic IC (EUR) shares (maximum rate: 0.75%) 0.75% is charged on SEB Asset Selection Opportunistic ID (H-SEK) shares (maximum rate: 0.75%) 0.40% is charged on SEB Asset Selection Opportunistic SIC (H-USD) shares (maximum rate: 0.40%) 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 Company. Note 3. Performance Fees In addition, the Management Company is entitled to receive performance fees for the Sub-Funds SEB SICAV 3 - SEB Asset Selection Defensive and SEB SICAV 3 - SEB Asset Selection Opportunistic, payable out of the assets attributable to the relevant class. The performance fees will be calculated, accrued and crystallised on a daily basis and paid out of the assets of the applicable share class of the Sub-Fund at the end of each month. The calculation of the performance fees takes place on the basis of the shares of the respective share class in circulation at the respective Valuation Day. The performance fees in the relevant share class are calculated by taking the number of shares in the share class times the performance fee rate, 20%, times any positive excess performance per share recorded on that day. The performance fees in the SEB Asset Selection Opportunistic SIC (H-USD) shares are calculated by taking the number of shares in the share class times the performance fee rate, 15%, times any positive excess performance per share recorded on that day. The Company uses the principle of High Water Mark and the Risk Free Rate as a hurdle. The 3 Month Treasury Bill Return Index is used as the Risk Free Return Index. The applicable High Water Mark is equivalent to the highest Net Asset Value per share previously achieved (in the relevant share class) and for which a performance fee was accrued and crystallised; or the Net Asset Value at inception, if that was higher. The High Water Mark is adjusted to reflect dividends and other corporate actions in the share class. This definition of High Water Mark implies that each preceding decline in the Net Asset Value per share in the respective share class of the Sub-Fund must first be offset by an equally large increase before new performance fees can be charged. Note 4. Taxation The Company 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 the 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. 23

26 Notes to the Financial Statements As at No stamp duty or other tax is payable in Luxembourg on the issue of shares. Interest, dividend and other income realised by the 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 Company relating to the purchase or the sale of transferable securities, money market instruments, derivatives or other eligible assets are mainly composed of depositary 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. In line with bond market practice, a bid-offer spread is applied when buying or selling securities and other financial instruments. Consequently, in any given transaction, there will be a difference between the purchase and sale prices quoted by the broker, which represents the broker's remuneration. As at 31 December 2017, the transaction fees were as follows: SEB SICAV 3 - SEB Asset Selection Defensive SEB SICAV 3 - SEB Asset Selection Opportunistic 41, EUR 1,927, EUR Note 6. Collateral As at 31 December 2017, the following securities serve as collateral for the broker Skandinaviska Enskilda Banken AB (publ) for commitment on future positions: Sub-Fund Security description Nominal SEB SICAV 3 - SEB Asset Selection Defensive 4.25% Sweden Government Bond 12/03/19 SEK 11,000,000 SEB SICAV 3 - SEB Asset Selection Opportunistic 4.25% Sweden Government Bond 12/03/19 SEK 529,000,000 Note 7. Significant Events during the year Directors There were changes to the Board of Directors of the Management Company during the year. Please refer to the Organisation section on page 3 for details. 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. Note 8. Subsequent Events after the year end There are no subsequent events after the year end. 24

27 Audit Report To the Shareholders of SEB SICAV 3 Our opinion In our opinion, the accompanying financial statements give a true and fair view of the financial position of SEB SICAV 3 (the Company ) 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 year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements. What we have audited The Company 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 year then ended; the combined statement of changes in net assets for the year then ended; 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

28 We are independent of the Company 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 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 Company for the financial statements The Board of Directors of the 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 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 Company is responsible for assessing the Company 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 Company either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. 26

29 _Ipwc Responsibilities of the Réviseur d'entreprises agree" for the auditof 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 23 July 2016 and with ISAs 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 professional judgment and maintain professional scepticism throughout the audit. We also: o 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 Company 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 Company; 0 conclude on the appropriateness of the Board of Directors of the 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 Company 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 Company 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. Luxembourg, 5 April