Investment recommendations

All investment recommendations produced by Skandinaviska Enskilda Banken S.A. (hereinafter “SEB”) are general and do not constitute an individual investment advice. You should consult with your private banker if you require individual investment guidance.

Arrangements for prevention and avoidance of conflict of interest

SEB has adopted instructions (Instructions for Handling of Conflicts of Interest) in order to address potential conflicts of interest.

SEB has adopted organisational and administrative arrangements for the prevention and avoidance of conflict of interest with respect to the investment recommendations. Such arrangements include, but are not limited to any person involved in production of an investment recommendation on behalf of SEB (hereinafter “Relevant Persons”), that can be assessed to come into contact with inside information, or other unpublished, confidential, or sensitive information relating to clients’ financial instruments, or their dealings in financial instruments, shall request permission before dealing in any financial instruments. All Relevant Persons have a duty to report their own holdings in financial instruments, and promptly update changes in such holdings, to SEB. Furthermore, Relevant Persons may not realise, or in any other manner secure, a profit in financial instruments within a retention period of less than one month.

SEB does not receive any compensation for any investment recommendation from the product manufacturer.

Risks

Investments in financial instruments create opportunities for value appreciation and profit. All such investments are also subject to certain risks. The risks vary between the different types of financial instruments and combinations of these. Invested capital can appreciate as well as depreciate in value and as such there are no guarantees that you will get your invested capital back.

You should familiarise yourself with the investment and evaluate all related risks before taking any investment decisions.

Accountability

All investment recommendations produced by SEB are based on sources which SEB has deemed as reliable. SEB can however not be held responsible for the accuracy in the provided data. You should independently evaluate and complete all data in the recommendation and any subsequent investment decisions should be based on your own individual assessment of material which you deem dependable using your own proper judgement.

SEB shall not be held accountable for any direct or indirect loss of any type which may occur as the result of acting in accordance to the investment recommendation or its content.

Redistribution

You may not redistribute investment recommendations produced by SEB without explicit permission. Investment recommendations may not be redistributed to citizens of countries or jurisdictions where such recommendations are disallowed either by law or by other regulations.

SEB’s investment recommendation structure

SEB’s standard model for investment recommendation is built on three different proposals: buy, sell and hold.

Structure of equities investment recommendations

SEB disseminates equity recommendations produced by Skandinaviska Enskilda Banken AB (hereinafter “SEB AB”), its mother company.

Equity investment recommendations are based on a short-term investment horizon presented as follows:  

Recommendation Expected total return (incl. dividends)
Buy >10% on a 6-12 months horizon
Hold 0-10% on a 6-12 months horizon
Sell <0% on a 6-12 months horizon

Historical equity investment recommendations

Structure of fund investment recommendations

Our fund investment recommendations are based on our own assessment of expected performance for each fund over a 12 months rolling period. The criteria for the recommendations differ based on fund characteristics, resulting in a variety of risks and opportunities to create return. The fundamental principle of "Buy" is that we at SEB believe it is likely that the fund performs better than set benchmark (see definitions and explanations of benchmarks below). For the recommendation "Sell", we at SEB believe it is likely that the fund performs worse than set benchmark.

Definitions and explanations of benchmarks

  • Risk-free interest rate (Rfr) refers to the highest expected return on a money market fund or the interest on a term deposit.
  • World stock index refers to MSCI World All Country

SEB Strategy, Total and Pension Funds

These are funds that have a continuous buy recommendation. They are interesting in a sense that they have a broad investment mandate being able to invest in several different markets and asset classes. They remain a good choice regardless of the market climate and suit all forms of long-term investing, taking into account the different risk levels of the funds.

Global equity funds

Buy = Expected performance better than Rfr + 6 percentage points
Hold = Expected performance between Rfr and + 6 percentage points
Sell = Expected performance worse than Rfr

Other equity funds (region, country, sector, etc.)

Buy = Expected performance better than world stock index + 3 percentage points (and not falling in value)
Hold = Expected performance as world stock index +/- 3 percentage points
Sales = Expected performance worse than world stock index by at least 3 percentage points

Traditional fixed income funds (i.e. Government securities or equivalent regardless of maturity)

Buy = Expected performance better than Rfr + 2 percentage points
Hold = Expected performance between Rfr + 2 percentage points
Sell = Expected performance worse than Rfr

Other interest rate funds and hedge funds with low risk (estimated standard deviation of max 5 percent)

Buy = Expected performance better than Rfr + 2 percentage points
Hold = Expected performance between Rfr + 2 percentage points
Sell = Expected performance worse than Rfr

Other fixed income and hedge funds with high risk (estimated standard deviation over 5 percent)

Buy = Expected performance better Rfr + 4 percentage points
Keep = Expected performance between Rfr + 4 percentage points
Sell = Expected performance worse than Rfr

Commodity Funds

Buy = Expected performance better than Rfr + 5 percentage points
Hold = Expected performance between Rfr + 5 percentage points
Sell = Expected performance worse than Rfr

Structure of structured products investment recommendations

SEB only provides investment recommendations on structured products with a set maturity date and with a purpose of hold to maturity. Recommendations related to structured products will only be provided at initial launch. If the hold to maturity recommendation would change during the life-time of the structured product such information will be made available.

Historical fund and structured product investment recommendations

Disclosure of interest and conflicts of interest with respect to investment recommendations

SEB may recommend products and financial instruments issued by its mother company, Skandinaviska Enskilda Banken AB. SEB is a wholly owned subsidiary of Skandinaviska Enskilda Banken AB.

Potential conflicts of interest in relation to equities

All equity investment recommendations disseminated by SEB are shielded from all other activities within SEB via a so called information barrier. All investment recommendations are based on publicly available information.

Please be advised that SEB, its members, its employees, its parent company, its affiliates and/or its branches have, had or may have at any times, equities, positions, and/or advisory assignments in relation to corporate finance transactions, investment and/or merchant banking missions, and/or loans in the companies/financial instruments which are mentioned in the investment recommendation.

Persons involved in disseminating equity investment recommendations produced by SEB AB, and anyone closely associated with those persons, are not associated with the issuer to which those investment recommendations directly or indirectly relate in a manner which can result in a conflict of interest, nor they have long or short positions over 0.5% of the capital stock in any financial instrument or the issuer to which the investment recommendations directly or indirectly relate.

Potential conflicts of interest in relation to funds, certificates, structured products

SEB, its mother company or any other entity belonging to the same group, may have distribution agreements with issuers whose funds, certificates and/or structured products it is recommending. In such agreements it may occur that SEB (or any other entity within the group) is compensated for distribution of said funds, certificates and/or structured products.