SEB Fund 2 Draft final updated · Organisation 3 Management Company: SEB Investment Management AB...

R.C. S K 50

Annual Report SEB Fund 2

Status: 31 December 2017

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.

Table of Contents

1

Page

Additional Information to the Investors in Germany 2

Organisation 3

General Information 5

Management Report 7

Schedule of Investments:

SEB Fund 2 - SEB Asia ex. Japan Fund 9

SEB Fund 2 - SEB Generation Fund 80 14

SEB Fund 2 - SEB Nordic Focus Fund 16

SEB Fund 2 - SEB Russia Fund 18

Combined Statement of Operations 21

Combined Statement of Changes in Net Assets 23

Combined Statement of Net Assets 25

Statistical Information 27

Additional Information on Management Fees Paid 30

Notes to the Financial Statements 31

Audit Report 35

Risk Disclosure (unaudited) 38

Remuneration Disclosure (unaudited) 40

Additional Information to the Investors in Germany

As at 31 December 2017

2

Units in circulation:

The following Sub-Fund is publicly approved for distribution in Germany:

• SEB Fund 2 - SEB Russia Fund

The following Sub-Funds are not distributed in Germany:

• SEB Fund 2 - SEB Asia ex. Japan Fund

• SEB Fund 2 - SEB Generation Fund 80

• SEB Fund 2 - SEB Nordic Focus Fund

The information disclosed above is as at 31 December 2017 and this may change after the year end. The current Sub-Fund in

circulation and the current registrations per unit class are visible in the distribution matrix on www.sebgroup.lu.

Organisation

3

Management Company: SEB Investment Management AB Stjärntorget 4 SE-169 79 Solna, Sweden

Board of Directors of

the Management Company:

Chairperson

Johan Wigh Advokat, Törngren Magnell Sandemarsvägen 18 122 60 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 5 167 53 Bromma Sweden

Branch of the Management Company: SEB Investment Management AB, Luxembourg Branch 4, rue Peternelchen L-2370 Howald, Luxembourg

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 Managers: SEB Fund 2 - SEB Asia ex. Japan Fund

SEB Fund 2 - SEB Generation Fund 80

SEB Fund 2 - SEB Nordic Focus Fund

SEB Investment Management AB Stjärntorget 4 SE-169 79 Solna, Sweden

SEB Fund 2 - SEB Russia Fund

AS SEB Varahaldus Tornimäe 2 EE-15010 Tallinn, Estonia

Organisation

4

Sub-Investment Managers: SEB Fund 2 - SEB Nordic Focus Fund

Skandinaviska Enskilda Banken Danmark, Bernstoffsgade 50, DK-1577 Copenhagen V, Denmark

SEB Wealth Management Finland Ltd. Unioninkatu 30 00100 Helsinki, Finland

Depositary: Skandinaviska Enskilda Banken S.A. 4, rue Peternelchen L-2370 Howald, Luxembourg

Auditor of the Fund:

PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator L-2182 Luxembourg

Auditor of the Management Company: PricewaterhouseCoopers AB Torsgatan 21 SE-113 97 Stockholm, Sweden

Global Distributor: Skandinaviska Enskilda Banken AB (publ) Kungsträdgårdsgatan 8 SE-106 40 Stockholm, Sweden

Representatives and Paying

Agents outside Luxembourg: 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.

General Information

5

SEB Fund 2 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 21 April 1986 for an undetermined duration. The Management Regulations lastly modified with effect from 20 September 2017, have been

published in the Recueil Electronique des Sociétés et Associations (RESA) on 2 November 2017. The Fund is registered in

Luxembourg at the Luxembourg Register of Commerce under the number K 50. 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 67654 (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 units 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, four Sub-Funds are at the Unitholders’ disposal:

• SEB Fund 2 - SEB Asia ex. Japan Fund • SEB Fund 2 - SEB Generation Fund 80 • SEB Fund 2 - SEB Nordic Focus Fund • SEB Fund 2 - SEB Russia Fund

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.

6

Currently, the following unit classes are offered for the Sub-Funds:

• SEB Fund 2 - SEB Asia ex. Japan Fund

o Capitalisation units (“C (EUR)” units) LU1526326068

o Capitalisation units (“C (USD)” units) LU0011900676

o Distribution units (“D (USD)” units) LU0397043406

o Capitalisation units (“IC P (SEK)” units) LU1063552746

• SEB Fund 2 - SEB Generation Fund 80

o Capitalisation units (“C (SEK)” units) LU0303408685

• SEB Fund 2 - SEB Nordic Focus Fund

o Capitalisation units (“C (EUR)” units) LU0324984854

o Capitalisation units (“C (NOK)” units) LU0324986040

o Capitalisation units (“C (SEK)” units) LU0324985315

• SEB Fund 2 - SEB Russia Fund o Capitalisation units (“C (EUR)” units) LU0273119544

o Capitalisation units (“C (USD)” units) LU0600309446

The base currency of the Fund is US Dollar. The currency of the Sub-Fund SEB Fund 2 - SEB Asia ex. Japan Fund is US Dollar.

The currency of the Sub-Funds, SEB Fund 2 - SEB Nordic Focus Fund and SEB Fund 2 - SEB Russia Fund is Euro. The currency

of the Sub-Fund, SEB Fund 2 - SEB Generation Fund 80 is Swedish Krona.

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

www.sebgroup.lu ("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.

Management Report

7

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 Fund 2.

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 2018. 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 2017.

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 2017. This disconnect was caused by a string of surprisingly weak inflation numbers coming out of the US

throughout 2017. 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.

8

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 2018. 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 2011. 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 2017. 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 2017.

Luxembourg, 17 January 2018

SEB Investment Management AB

The Board of Director

Schedule of Investments


9

SEB Fund 2 - SEB Asia ex. Japan Fund

Security description Maturity Total holdings Market % of

value in Net

USD Assets

Transferable securities admitted to an official stock exchange listing and/or dealt within another regulated market

Shares

Bermuda

Giordano International Ltd 318,000 169,291.07 0.10

Johnson Electric Holdings Ltd 129,000 540,648.01 0.33

K Wah International Holdings Ltd 150,000 81,965.81 0.05

Kerry Properties Ltd 183,500 825,420.00 0.51

Luk Fook Holdings International Ltd 150,000 644,017.07 0.39

Yue Yuen Industrial Holdings Ltd 574,500 2,257,054.26 1.38

Total Bermuda 4,518,396.22 2.76

Cayman Islands

Agile Group Holdings Ltd 1,792,000 2,719,795.72 1.66

Alibaba Group Holding Ltd ADR 11,600 1,993,692.00 1.22

CAR Inc 138,000 120,971.55 0.07

China Hongqiao Group Ltd 288,000 322,488.43 0.20

China Lesso Group Holdings Ltd 800,000 518,029.03 0.32

China Lilang Ltd 267,000 215,602.71 0.13

CIFI Holdings Group Co Ltd 1,960,000 1,181,382.60 0.72

Hiroca Holdings Ltd 53,000 203,925.00 0.12

JNBY Design Ltd 231,000 280,833.67 0.17

Kingboard Laminates Holdings Ltd 290,000 452,021.28 0.28

Lifestyle International Holdings Ltd 90,500 120,215.24 0.07

Logan Property Holdings Co Ltd 934,000 965,765.82 0.59

NagaCorp Ltd 772,000 597,704.14 0.37

Nexteer Automotive Group Ltd 581,000 1,384,424.90 0.84

Shimao Property Holdings Ltd 446,500 971,368.41 0.59

Tencent Holdings Ltd 97,500 5,065,755.69 3.09

Tianneng Power International Ltd 336,000 349,147.47 0.21

TOPBI International Holdings Ltd 31,843 116,100.16 0.07

WH Group Ltd 430,500 485,909.44 0.30

Xiabuxiabu Catering Management China Holdings Co Ltd 309,500 623,417.48 0.38

Xinyi Glass Holdings Ltd 2,604,000 3,392,363.25 2.07

Xinyi Solar Holdings Ltd 898,000 347,053.85 0.21

Yuzhou Properties Co Ltd 2,529,000 1,349,579.51 0.82

YY Inc ADR 7,600 852,340.00 0.52

Total Cayman Islands 24,629,887.35 15.02

China

Agricultural Bank of China Ltd H 1,337,000 622,796.81 0.38

Anhui Conch Cement Co Ltd H 431,000 2,026,974.13 1.24

Anhui Expressway Co Ltd H 120,000 100,124.98 0.06

Bank of China Ltd H 12,293,000 6,040,914.62 3.68

Bank of Chongqing Co Ltd H 151,500 120,591.48 0.07

Bank of Communications Co Ltd H 318,000 236,030.81 0.14

China Construction Bank Corp H 8,122,000 7,483,574.27 4.56

China Everbright Bank Co Ltd H 642,000 299,875.84 0.18

China Minsheng Banking Corp Ltd H 86,000 86,173.51 0.05

China Telecom Corp Ltd H 2,930,000 1,394,839.23 0.85

China Vanke Co Ltd H 24,100 96,224.40 0.06

Chongqing Rural Commercial Bank Co Ltd H 158,000 111,611.71 0.07

Huadian Fuxin Energy Corp Ltd H 1,072,000 262,024.41 0.16

Huishang Bank Corp Ltd H 145,000 79,419.17 0.05

Jiangsu Expressway Co Ltd H 770,000 1,172,603.75 0.72

10



value in Net

USD Assets

PICC Property & Casualty Co Ltd H 904,000 1,737,608.59 1.06

Shenzhen Expressway Co Ltd H 518,000 525,674.05 0.32

Sinopec Shanghai Petrochemical Co Ltd H 7,560,000 4,305,220.49 2.63

Zhejiang Expressway Co Ltd H 1,432,000 1,574,163.27 0.96

Total China 28,276,445.52 17.24

Hong Kong

China Power International Development Ltd 3,678,000 964,893.05 0.59

CITIC Telecom International Holdings Ltd 433,000 114,702.22 0.07

HKT Trust & HKT Ltd 349,000 444,834.39 0.27

Hopewell Holdings Ltd 93,300 344,461.79 0.21

Hua Hong Semiconductor Ltd 279,000 591,973.58 0.36

Link REIT 76,000 704,637.21 0.43

Sino-Ocean Group Holding Ltd 158,500 109,328.06 0.07

Wharf Holdings Ltd/The 207,000 715,233.26 0.43

Total Hong Kong 3,990,063.56 2.43

India

Balrampur Chini Mills Ltd 100,033 207,502.63 0.13

HCL Technologies Ltd 194,166 2,708,940.29 1.65

Hexaware Technologies Ltd 171,449 915,030.72 0.56

Hindustan Petroleum Corp Ltd 613,648 4,024,490.19 2.45

Infosys Ltd 165,090 2,695,266.11 1.64

KPIT Technologies Ltd 102,176 289,347.36 0.18

Larsen & Toubro Infotech Ltd 3,465 60,738.97 0.04

Mphasis Ltd 26,417 300,332.98 0.18

NIIT Technologies Ltd 92,226 932,049.72 0.57

NMDC Ltd 40,587 87,625.09 0.05

SJVN Ltd 138,219 73,410.77 0.04

Tata Consultancy Services Ltd 10,357 438,311.68 0.27

Tech Mahindra Ltd 410,102 3,238,603.88 1.98

Vardhman Textiles Ltd 2,429 52,473.12 0.03

Wipro Ltd 15,743 77,509.53 0.05

Total India 16,101,633.04 9.82

Indonesia

Link Net Tbk PT 615,100 249,349.54 0.15

Total Indonesia 249,349.54 0.15

Malaysia

AirAsia Bhd 811,500 671,735.86 0.41

Astro Malaysia Holdings Bhd 125,200 81,981.41 0.05

Dagang NeXchange Bhd 727,600 87,196.62 0.05

JCY International Bhd 1,194,500 123,965.45 0.08

Malaysian Pacific Industries Bhd 105,900 330,233.03 0.20

Maxis Bhd 421,100 625,352.53 0.38

MISC Bhd 82,700 151,626.33 0.09

Padini Holdings Bhd 325,300 424,407.63 0.26

Petronas Chemicals Group Bhd 1,030,900 1,961,428.42 1.20

Tenaga Nasional Bhd 413,800 1,560,307.59 0.95

Unisem M Bhd 290,100 261,641.00 0.16

UOA Development Bhd 268,000 158,269.74 0.10

Total Malaysia 6,438,145.61 3.93

Philippines

Cebu Air Inc 269,450 539,763.33 0.33

Globe Telecom Inc 10,380 395,071.90 0.24

at

11



value in Net

USD Assets

Manila Electric Co 166,560 1,096,385.95 0.67

Union Bank of the Philippines 49,830 86,493.73 0.05

Total Philippines 2,117,714.91 1.29

Singapore

BOC Aviation Ltd 111,100 592,164.89 0.36

ESR-REIT 152,400 64,426.38 0.04

Fortune Real Estate Investment Trust 1,560,400 1,928,975.27 1.18

iFAST Corp Ltd 70,400 46,617.21 0.03

Mapletree Greater China Commercial Trust 963,200 886,445.24 0.54

Mapletree Industrial Trust 1,171,300 1,779,076.03 1.08

Sheng Siong Group Ltd 265,900 184,030.75 0.11

StarHub Ltd 589,000 1,256,002.44 0.77

Venture Corp Ltd 49,500 758,146.91 0.46

Yangzijiang Shipbuilding Holdings Ltd 2,260,900 2,486,732.19 1.52

Yanlord Land Group Ltd 930,400 1,127,755.73 0.69

Total Singapore 11,110,373.04 6.78

South Korea

Grand Korea Leisure Co Ltd 24,410 666,939.88 0.41

Hyundai Marine & Fire Insurance Co Ltd 989 43,419.74 0.03

LG Uplus Corp 242,372 3,169,593.17 1.93

Lotte Chemical Corp 3,264 1,121,995.22 0.68

Meritz Fire & Marine Insurance Co Ltd 52,089 1,143,423.00 0.70

Samjin Pharmaceutical Co Ltd 4,906 164,289.48 0.10

Samsung Electronics Co Ltd 3,796 9,034,802.58 5.51

Samsung Electronics Co Ltd (Pref) 652 1,272,878.41 0.78

Shinhan Financial Group Co Ltd 117,721 5,432,177.24 3.31

SK Hynix Inc 23,674 1,691,710.79 1.03

SK Telecom Co Ltd 18,973 4,731,951.75 2.88

Woori Bank 164,856 2,425,371.98 1.48

Total South Korea 30,898,553.24 18.84

Taiwan

Asustek Computer Inc 89,000 835,912.73 0.51

Aten International Co Ltd 48,000 135,490.75 0.08

China General Plastics Corp 758,290 825,599.57 0.50

Chin-Poon Industrial Co Ltd 136,000 265,524.23 0.16

Cleanaway Co Ltd 8,000 47,045.40 0.03

Eva Airways Corp 233,000 124,100.72 0.08

Formosa Chemicals & Fibre Corp 137,000 474,184.02 0.29

Formosa Petrochemical Corp 315,000 1,222,592.30 0.75

Foxconn Technology Co Ltd 1,414,450 4,049,639.04 2.47

Fubon Financial Holding Co Ltd 346,000 589,485.57 0.36

Getac Technology Corp 231,000 343,102.09 0.21

Gigabyte Technology Co Ltd 413,000 749,433.20 0.46

Grand Pacific Petrochemical 130,000 137,389.37 0.08

Ibase Technology Inc 147,141 245,000.22 0.15

Micro-Star International Co Ltd 282,000 725,883.62 0.44

Phison Electronics Corp 126,000 1,236,353.08 0.75

Pou Chen Corp 242,000 313,493.74 0.19

Powertech Technology Inc 785,000 2,321,354.40 1.42

Sinmag Equipment Corp 137,000 782,633.81 0.48

Sitronix Technology Corp 88,000 247,216.85 0.15

TaiDoc Technology Corp 32,000 104,736.50 0.06

Taiwan Semiconductor Manufacturing Co Ltd 331,784 2,558,746.42 1.56

12



value in Net

USD Assets

Taiwan Styrene Monomer 138,000 105,267.44 0.07

Tripod Technology Corp 411,000 1,284,440.20 0.78

Yuanta Financial Holding Co Ltd 359,000 166,480.23 0.10

Total Taiwan 19,891,105.50 12.13

Thailand

PTT Global Chemical PCL NVDR 804,000 2,096,962.40 1.28

PTT PCL NVDR 97,300 1,313,654.58 0.80

Sansiri PCL NVDR 4,757,200 318,217.14 0.19

Siam Cement PCL/The NVDR 6,550 97,275.24 0.06

Somboon Advance Technology PCL NVDR 97,400 65,152.51 0.04

Thai Oil PCL NVDR 1,577,800 5,010,810.41 3.06

Thai Vegetable Oil PCL NVDR 591,500 539,954.78 0.33

Total Thailand 9,442,027.06 5.76

Total Shares 157,663,694.59 96.15

Investment Funds

Equity Funds

France

Lyxor MSCI AC Asia-Pacific ex-Japan UCITS ETF 14,552 931,968.16 0.57

Total France 931,968.16 0.57

Luxembourg

db x-trackers MSCI EM ASIA INDEX UCITS ETF - 1C 28,345 1,533,509.32 0.93

Total Luxembourg 1,533,509.32 0.93

Total Equity Funds 2,465,477.48 1.50

Total Investment Funds 2,465,477.48 1.50

Total Transferable securities admitted to an official stock exchange listing

and/or dealt within another regulated market 160,129,172.07 97.65

Other Transferable Securities

Shares

Hong Kong

China Metal Recycling Holdings Ltd* 867,000 0.00 0.00

Total Hong Kong 0.00 0.00

Total Shares 0.00 0.00

Total Other Transferable Securities 0.00 0.00

Total Portfolio 160,129,172.07 97.65

Financial futures cleared with Skandinaviska Enskilda Banken AB (publ)

Purchased financial futures contracts Commitment in USD

BCLEAR MSCI All Country Asia Ex Japan 2,809,994.00 21/12/18 55 45,914.00 0.03

Total financial futures contracts (total unrealised) 45,914.00 0.03

An amount of USD 203,444.00 is held as cash collateral for these positions.

at

13


Market

value in

USD

% of

Net

Assets

Cash at bank and at broker

Cash at bank and at broker 3,615,474.45 2.20

Total Cash at bank and at broker 3,615,474.45 2.20

Other assets

Dividends receivable 479,502.16 0.29

Bank interest receivable on cash accounts 3,362.13 0.00

Receivable on subscriptions 38,066.48 0.03

Other assets 660.83 0.00

Total other assets 521,591.60 0.32

Liabilities

Management fees (222,975.98) (0.13)

Payable on redemptions (97,639.36) (0.06)

Other liabilities (12,938.83) (0.01)

Total liabilities (333,554.17) (0.20)

Total Net Assets as at 31 December 2017 163,978,597.95 100.00

* Position fair valued by the Management Company.

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.


As at 31 December 2017 Heading

14


Security description Total holdings Market % of

value in Net

SEK Assets

Transferable securities admitted to an official stock exchange listing and/or dealt within another regulated market

Investment Funds

Equity Funds

Luxembourg

SEB Fund 1 - SEB Europe Index 74,494 5,412,199.09 3.44

SEB Fund 1 - SEB Global Fund C 726,001 26,303,018.21 16.75

SpotR OMXS30 50,906 9,715,410.10 6.19


Sweden

SEB Europafond 2,272,496 27,159,052.73 17.29

SEB Hallbarhetsfond Global A SEK 1,583,685 27,041,256.55 17.22

SEB Nordamerikafond 922,931 12,161,366.88 7.74

Total Sweden 66,361,676.16 42.25

Total Equity Funds 107,792,303.56 68.63

Investment Funds

Luxembourg

SEB Fund 3 - SEB US Index Fund C 162,877 6,338,466.60 4.03

SEB SICAV 1 - SEB Emerging Markets Fund 605,879 16,472,562.92 10.49


Sweden

SEB Sverige Expanderad 1,364,143 25,677,129.66 16.35

Total Sweden 25,677,129.66 16.35



Total Transferable securities admitted to an official stock exchange listing

and/or dealt within another regulated market 156,280,462.74 99.50

Total Portfolio 156,280,462.74 99.50

15


Market

value in

SEK

% of

Net

Assets

Cash at bank

Cash at bank 701,917.63 0.45

Total Cash at bank 701,917.63 0.45

Other assets

Bank interest receivable on cash accounts 141.63 0.00

Retrocession fees receivable 152,279.15 0.10

Other assets 2,869.70 0.00


Liabilities








As at 31 December 2017 Heading

16



value in Net

EUR Assets

Transferable securities admitted to an official stock exchange listing

Shares

Denmark

Carlsberg A/S 17,400 1,741,011.32 3.97

Dfds A/S 34,900 1,552,898.02 3.54

DSV A/S 26,723 1,753,617.01 4.00

GN Store Nord A/S 56,100 1,510,682.90 3.44

Pandora A/S 12,400 1,124,975.63 2.56

Total Denmark 7,683,184.88 17.51

Faroe Islands

Bakkafrost P/F 50,000 1,769,987.40 4.03

Total Faroe Islands 1,769,987.40 4.03

Finland

Ahlstrom-Munksjo Oyj 97,700 1,775,209.00 4.04

Cargotec Oyj 37,700 1,779,440.00 4.05

Kesko OYJ 41,200 1,864,300.00 4.25

Valmet OYJ 104,600 1,719,624.00 3.92

Total Finland 7,138,573.00 16.26

Norway

Sparebank 1 Oestlandet 145,000 1,336,017.24 3.04

SpareBank 1 SMN 165,200 1,383,379.80 3.15

Tomra Systems ASA 186,400 2,495,554.97 5.69

Yara International ASA 41,267 1,582,683.22 3.61

Total Norway 6,797,635.23 15.49

Sweden

AAK AB 24,871 1,777,065.80 4.05

AddTech AB 112,032 2,045,363.37 4.66

AF AB 96,600 1,777,377.28 4.05

Beijer Ref AB 78,461 2,525,756.53 5.75

Castellum AB 120,400 1,694,831.43 3.86

Intrum Justitia AB 60,200 1,857,089.50 4.23

Nordea Bank AB 169,100 1,707,910.00 3.89

Skandinaviska Enskilda Banken AB 182,100 1,783,611.09 4.06

Skanska AB 94,200 1,628,784.98 3.71

Swedish Match AB 53,600 1,761,976.35 4.02

Total Sweden 18,559,766.33 42.28

United States of America

Autoliv Inc 15,300 1,629,303.70 3.71

Total United States of America 1,629,303.70 3.71

Total Shares 43,578,450.54 99.28

Total Transferable securities admitted to an official stock exchange listing 43,578,450.54 99.28

Total Portfolio 43,578,450.54 99.28

17


Market

value in

EUR

% of

Net

Assets

Cash at bank

Cash at bank 379,692.45 0.86

Total Cash at bank 379,692.45 0.86

Other assets



Liabilities



Bank interest payable on cash accounts (164.33) (0.00)








18



value in Net

EUR Assets

Transferable securities admitted to an official stock exchange listing

Shares

Bermuda

VEON Ltd ADR 2,155,951 6,964,835.18 3.34

Total Bermuda 6,964,835.18 3.34

Cyprus

Etalon Group Plc GDR 980,707 2,569,024.61 1.23

Globaltrans Investment Plc GDR 534,672 4,152,599.72 1.99

HMS HYDRAULIC MACHINES & SYSTEMS GROUP Plc GDR 301,126 2,469,784.06 1.18

QIWI plc ADR 283,719 3,492,896.73 1.68

Ros Agro Plc GDR 7,000 57,940.07 0.03

TCS Group Holding Plc GDR 6,014 94,625.01 0.05

Total Cyprus 12,836,870.20 6.16

Kazakhstan

Halyk Savings Bank of Kazakhstan JSC GDR 918,932 7,559,995.65 3.62

KazMunaiGas Exploration Production JSC GDR 711,527 7,711,623.28 3.70

Total Kazakhstan 15,271,618.93 7.32

Luxembourg

Kernel Holding SA 4,623 53,747.64 0.02

MHP SE GDR 40,000 391,679.20 0.19

Total Luxembourg 445,426.84 0.21

Malaysia

Steppe Cement Ltd 5,000,000 1,294,267.50 0.62

Total Malaysia 1,294,267.50 0.62

Netherlands

X5 Retail Group NV GDR 175,626 5,581,026.18 2.68

Yandex NV 230,300 6,287,276.32 3.01

Total Netherlands 11,868,302.50 5.69

Russia

Aeroflot PJSC 690,653 1,395,848.66 0.67

Alrosa PJSC 982,844 1,071,074.94 0.51

Bank St Petersburg PJSC 1,462,329 1,159,854.41 0.56

ENEL RUSSIA PJSC 220,280,281 4,640,957.99 2.23

Gazprom Neft PJSC 608,797 2,170,926.65 1.04

Gazprom PJSC ADR 3,611,281 13,509,941.20 6.48

Gazprom PJSC 2,010,817 3,812,534.39 1.83

Inter RAO UES PJSC 46,906,554 2,277,265.03 1.09

LSR Group PJSC GDR 300,000 695,481.65 0.33

LUKOIL PJSC ADR 397,518 19,009,981.20 9.12

Magnit PJSC 21,061 1,919,733.25 0.92

Magnitogorsk Iron & Steel Works PJSC 2,100,154 1,290,611.84 0.62

MegaFon PJSC 193,101 1,438,937.80 0.69

MMC Norilsk Nickel PJSC ADR 245,511 3,840,297.85 1.84

Mobile TeleSystems PJSC 409,965 1,666,364.13 0.80

Moscow Exchange MICEX-RTS PJSC 837,232 1,318,980.47 0.63

Novatek PJSC GDR 69,940 7,047,527.31 3.38

Novolipetsk Steel PJSC GDR 18,047 386,660.35 0.19

OGK-2 PJSC 139,523,000 916,548.95 0.44

19



value in Net

EUR Assets

OR PJSC 2,022,600 3,587,843.27 1.72

PhosAgro PJSC GDR 56,104 718,405.93 0.34

Polyus PJSC GDR 18,934 604,218.24 0.29

Rosneft Oil Co PJSC GDR 1,963,181 8,170,778.81 3.92

Rostelecom PJSC 2,736,477 2,523,374.27 1.21

RusHydro PJSC 271,394,537 2,858,138.15 1.37

Sberbank of Russia PJSC (Pref) 4,437,909 12,272,405.63 5.89

Sberbank of Russia PJSC 2,061,301 6,708,168.07 3.22

Severstal PJSC GDR 282,012 3,635,916.86 1.74

Sistema PJSC FC GDR 316,127 1,100,625.51 0.53

Sollers PJSC 124,788 1,137,637.75 0.55

Surgutneftegas OJSC (Pref) 18,911,204 7,697,740.76 3.69

Tatneft PJSC ADR 64,055 2,658,470.20 1.27

Tatneft PJSC (Pref) 1,268,325 6,804,881.22 3.26

Tatneft PJSC 330,453 2,287,795.06 1.10

TMK PJSC GDR 228,333 972,682.53 0.47

TMK PJSC 2,861,003 3,091,630.93 1.48

Transneft PJSC (Pref) 431 1,113,911.04 0.53

Unipro PJSC 99,635,139 3,643,461.21 1.75

United Co RUSAL Plc 4,185,048 2,477,831.92 1.19

VTB Bank PJSC 4,785,680,172 3,254,428.02 1.56

Total Russia 146,889,873.45 70.45

United Kingdom

BGEO Group Plc 20,000 801,095.31 0.39

Evraz Plc 150,000 588,835.44 0.28

KAZ Minerals Plc 39,000 374,183.99 0.18

Lenta Ltd GDR 166,938 806,149.65 0.39

Polymetal International Plc 6,192 63,450.80 0.03

TBC Bank Group Plc 77,973 1,477,789.36 0.71

United Co RUSAL Plc 2,562,500 1,503,522.99 0.72

Total United Kingdom 5,615,027.54 2.70

Total Shares 201,186,222.14 96.49

Total Transferable securities admitted to an official stock exchange listing 201,186,222.14 96.49

Total Portfolio 201,186,222.14 96.49

20


Market

value in

EUR

% of

Net

Assets

Cash at bank

Cash at bank 9,070,304.47 4.35

Total Cash at bank 9,070,304.47 4.35

Other assets

Dividends receivable 1,462,820.71 0.70

Bank interest receivable on cash accounts 25,615.41 0.01


Other assets 5,295.45 0.00

Total other assets 1,832,735.44 0.88

Liabilities

Bank overdraft (617,796.75) (0.30)


Payable on purchase of securities (1,791,116.00) (0.86)



Total liabilities (3,590,867.62) (1.72)




Combined Statement of Operations

For the year ended 31 December 2017 He


21

SEB Fund 2 - SEB Fund 2 - SEB Fund 2 -

SEB Asia ex. Japan SEB Generation Fund SEB Nordic Focus

Fund 80 Fund

USD SEK EUR

Income

Investment income (note 1) 4,967,370.17 – 1,420,984.28

Bank interest on cash accounts 14,536.86 994.07 181.56

Retrocession fees (note 4) – 1,511,120.21 –Total income 4,981,907.03 1,512,114.28 1,421,165.84

Expenses

Management fees (note 2) 2,579,735.44 617,434.75 589,973.70

Taxe d'abonnement (note 5) 69,913.52 34,471.32 22,661.47

Bank interest on cash accounts 2,290.34 2,937.60 788.11

Other expenses 85,476.79 63,272.28 50,031.72

Total expenses 2,737,416.09 718,115.95 663,455.00

Net income for the year 2,244,490.94 793,998.33 757,710.84


22

SEB Fund 2 - SEB Fund 2 -

SEB Russia Fund Combined

EUR USD

Income

Investment income (note 1) 7,746,046.75 15,929,155.37

Bank interest on cash accounts 132,318.42 172,977.41

Retrocession fees (note 4) – 184,166.48

Total income 7,878,365.17 16,286,299.26

Expenses

Management fees (note 2) 4,141,461.36 8,311,898.18

Taxe d'abonnement (note 5) 114,772.96 238,464.65

Bank interest on cash accounts 750,409.60 900,225.71

Other expenses 289,105.31 498,707.34

Total expenses 5,295,749.23 9,949,295.88

Net income for the year 2,582,615.94 6,337,003.38

Combined Statement of Changes in Net Assets

For the year ended 31 December 2017


23



Fund 80 Fund

USD SEK EUR

Net Assets at the beginning of the year 123,272,247.43 106,287,434.03 44,792,062.26

Net income for the year 2,244,490.94 793,998.33 757,710.84

Net realised gain / (loss) on:

- sales of securities 26,120,386.17 (3,887,106.75) 3,949,721.48

- foreign exchange (368,473.45) 45,238.44 (12,351.94)

- financial futures contracts 667,276.50 – –

Total net realised gain/(loss) 26,419,189.22 (3,841,868.31) 3,937,369.54

Change in net unrealised appreciation / (depreciation) on:

- securities 16,221,956.15 16,020,161.52 (695,283.05)

- financial futures contracts 115,434.00 – –

Total change in net unrealised appreciation / (depreciation) 16,337,390.15 16,020,161.52 (695,283.05)

Increase in Net Assets as a result of operations 45,001,070.31 12,972,291.54 3,999,797.33

Proceeds on issues of units 24,162,608.98 42,212,776.07 7,420,101.29

Payment on redemptions of units (28,035,748.21) (4,403,518.04) (12,315,714.17)

Dividends paid (421,580.56) – –

Total Net Assets as at 31 December 2017 163,978,597.95 157,068,983.60 43,896,246.71


24



EUR USD

Net Assets at the beginning of the year 355,374,766.95 553,865,750.60

Net income for the year 2,582,615.94 6,337,003.38

Net realised gain / (loss) on:

- sales of securities 29,838,986.42 66,042,918.81

- foreign exchange (1,497,724.25) (2,167,356.69)

- financial futures contracts – 667,276.50

Total net realised gain 28,341,262.17 64,542,838.62

Change in net unrealised appreciation / (depreciation) on:

- securities (39,022,647.27) (29,286,946.89)

- financial futures contracts – 115,434.00

Total change in net unrealised depreciation (39,022,647.27) (29,171,512.89)

Increase / (decrease) in Net Assets as a result of operations (8,098,769.16) 41,708,329.11

Proceeds on issues of units 146,488,642.60 213,250,378.20

Payment on redemptions of units (285,266,245.96) (384,213,578.14)

Dividends paid – (421,580.56)

Foreign exchange differences – 60,769,891.43

Total Net Assets as at 31 December 2017 208,498,394.43 484,959,190.64

Combined Statement of Net Assets



25



Fund 80 Fund

USD SEK EUR

Assets

Portfolio at cost 136,236,362.24 125,695,621.20 33,321,283.01

Unrealised appreciation 23,892,809.83 30,584,841.54 10,257,167.53

Portfolio at market value (note 1) 160,129,172.07 156,280,462.74 43,578,450.54

Unrealised appreciation on financial futures contracts 45,914.00 – –Receivable interest and / or dividends 482,864.29 141.63 –Cash at bank and at broker 3,615,474.45 701,917.63 379,692.45

Other assets 38,727.31 155,148.85 2,806.77

Total Assets 164,312,152.12 157,137,670.85 43,960,949.76

Liabilities

Bank overdraft – – –Other liabilities (333,554.17) (68,687.25) (64,703.05)

Total Liabilities (333,554.17) (68,687.25) (64,703.05)

Total Net Assets as at 31 December 2017 163,978,597.95 157,068,983.60 43,896,246.71

"C (EUR)" units outstanding as at 31 December 2017 9,554.1310 – 19,447.8670

"C (NOK)" units outstanding as at 31 December 2017 – – 131,986.1350

"C (SEK)" units outstanding as at 31 December 2017 – 9,195,513.7070 1,698,875.1340

"C (USD)" units outstanding as at 31 December 2017 12,031,632.7490 – –

"D (USD)" units outstanding as at 31 December 2017 11,215,260.1700 – –

"IC P (SEK)" units outstanding as at 31 December 2017 1,075.1750 – –

Net Asset Value per "C (EUR)" unit as at 31 December 2017 119.383 – 202.324

Net Asset Value per "C (NOK)" unit as at 31 December 2017 – – 247.473

Net Asset Value per "C (SEK)" unit as at 31 December 2017 – 17.081 212.023

Net Asset Value per "C (USD)" unit as at 31 December 2017 11.795 – –

Net Asset Value per "D (USD)" unit as at 31 December 2017 1.844 – –

Net Asset Value per "IC P (SEK)" unit as at 31 December 2017 158.068 – –


26



EUR USD

Assets

Portfolio at cost 189,281,913.10 417,733,562.51

Unrealised appreciation 11,904,309.04 54,161,490.06

Portfolio at market value (note 1) 201,186,222.14 471,895,052.57

Unrealised appreciation on financial futures contracts – 45,914.00

Receivable interest and / or dividends 1,488,436.12 2,261,347.47

Cash at bank and at broker 9,070,304.47 14,994,673.40

Other assets 344,299.32 472,394.33

Total Assets 212,089,262.05 489,669,381.77

Liabilities

Bank overdraft (617,796.75) (738,177.78)

Other liabilities (2,973,070.87) (3,972,013.35)

Total Liabilities (3,590,867.62) (4,710,191.13)

Total Net Assets as at 31 December 2017 208,498,394.43 484,959,190.64

"C (EUR)" units outstanding as at 31 December 2017 19,858,681.3710 –

"C (USD)" units outstanding as at 31 December 2017 291,245.4040 –

Net Asset Value per "C (EUR)" unit as at 31 December 2017 10.411 –

Net Asset Value per "C (USD)" unit as at 31 December 2017 7.210 –

Statistical Information



27



0 Fund 80 Fund

USD SEK EUR

Number of "C (EUR)" units outstanding

as at 31 December 2017 9,554.1310 – 19,447.8670

as at 31 December 2016 10.0000 – 20,013.5430

as at 31 December 2015 – – 48,706.7800

Number of "C (NOK)" units outstanding

as at 31 December 2017 – – 131,986.1350

as at 31 December 2016 – – 178,376.6130

as at 31 December 2015 – – 193,710.6140

Number of "C (SEK)" units outstanding

as at 31 December 2017 – 9,195,513.7070 1,698,875.1340

as at 31 December 2016 – 6,929,371.3760 1,873,397.2870

as at 31 December 2015 – 4,896,654.9470 1,963,136.1680

Number of "C (USD)" units outstanding

as at 31 December 2017 12,031,632.7490 – –as at 31 December 2016 12,440,717.2430 – –as at 31 December 2015 14,000,444.3480 – –

Number of "D (USD)" units outstanding

as at 31 December 2017 11,215,260.1700 – –as at 31 December 2016 11,617,458.8760 – –as at 31 December 2015 11,250,231.1110 – –

Number of "IC P (SEK)" units outstanding

as at 31 December 2017 1,075.1750 – –as at 31 December 2016 1,075.1750 – –as at 31 December 2015 1,075.1750 – –

Total Net Assets 0 0 0

as at 31 December 2017 163,978,597.95 157,068,983.60 43,896,246.71

as at 31 December 2016 123,272,247.43 106,287,434.03 44,792,062.26

as at 31 December 2015 127,214,653.96 67,383,654.09 49,346,676.85

Net Asset Value per "C (EUR)" unit

as at 31 December 2017 119.383 – 202.324

as at 31 December 2016 99.196 – 185.164

as at 31 December 2015 – – 174.897

Net Asset Value per "C (NOK)" unit

as at 31 December 2017 – – 247.473

as at 31 December 2016 – – 209.351

as at 31 December 2015 – – 209.742

Net Asset Value per "C (SEK)" unit

as at 31 December 2017 – 17.081 212.023

as at 31 December 2016 – 15.339 189.111

as at 31 December 2015 – 13.761 171.498

Net Asset Value per "C (USD)" unit

as at 31 December 2017 11.795 – –as at 31 December 2016 8.620 – –as at 31 December 2015 8.035 – –


28



Fund 80 Fund

USD SEK EUR

Net Asset Value per "D (USD)" unit


Net Asset Value per "IC P (SEK)" unit


Dividend paid per D (USD) unit 0 0 0

2017 0.0358 – –2016 0.0220 – –2015 0.0500 – –


29



0

EUR USD

Number of "C (EUR)" units outstanding

as at 31 December 2017 19,858,681.3710 –as at 31 December 2016 33,388,439.2950 –as at 31 December 2015 12,281,048.7220 –

Number of "C (USD)" units outstanding

as at 31 December 2017 291,245.4040 –as at 31 December 2016 156,206.4040 –as at 31 December 2015 112,391.4220 –

Total Net Assets 0 0

as at 31 December 2017 208,498,394.43 484,959,190.64

as at 31 December 2016 355,374,766.95 553,865,750.60

as at 31 December 2015 79,641,752.24 276,034,825.96

Net Asset Value per "C (EUR)" unit

as at 31 December 2017 10.411 –as at 31 December 2016 10.615 –as at 31 December 2015 6.451 –

Net Asset Value per "C (USD)" unit

as at 31 December 2017 7.210 –as at 31 December 2016 6.432 –as at 31 December 2015 4.082 –

Additional Information on Management Fees Paid

The accompanying notes are an integral part of these financial statements. 30


ISIN Code Fund Name Management fees in

%

SE0000984171 SEB Europafond 1.40

LU0030164395 SEB Fund 1 - SEB Europe Index 0.40

LU0030158231 SEB Fund 1 - SEB Global Fund C 1.50

LU0268529194 SEB Fund 3 - SEB US Index Fund C 0.40

SE0000434151 SEB Hallbarhetsfond Global A SEK 1.50

SE0000984163 SEB Nordamerikafond 1.50

LU0037256269 SEB SICAV 1 - SEB Emerging Markets Fund 1.75

SE0000984197 SEB Sverige Expanderad 1.25

The management fees of these underlying funds are fully retroceded.

Notes to the Financial Statements


31

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 28

December 2017 for Sub-Fund SEB Fund 2 - SEB Russia Fund and on 29 December 2017 for Sub-Funds SEB Fund 2 - SEB Asia

ex. Japan Fund, SEB Fund 2 - SEB Generation Fund 80 and SEB Fund 2 - SEB Nordic Focus Fund with the prices as of that

date; the valuations at 28 and 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) 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.

Gains and losses on the sale of securities are determined using the average cost method.

32

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 Unitholders' 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 units which exceeds a threshold set by the Board of Directors of the Management Company from time to time (relating to the cost of market dealing for the Sub-Fund), the Net Asset Value per unit 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 units” and “Payment on redemptions of units” in the Combined Statement of Changes in Net Assets.

No swing pricing adjustment has been applied to the year end Net Asset Value per unit calculated on 28 December 2017 and

29 December 2017.

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 USD at the year end date exchange rate. The Sub-Funds are priced at either intraday or close of business. The exchange rates are presented in line with when these

Sub-Funds are priced. As at 28 December 2017, the intraday exchange rates were as follows for SEB Fund 2 - SEB Russia Fund were as follows:

1 EUR = 1.194855391 USD 1 PLN = 0.285658145 USD

1 CAD = 0.793737457 USD 1 GBP = 1.344750001 USD

1 RUB = 0.017373167 USD 1 HKD = 0.127932530 USD

1 SEK = 0.121430893 USD

As at 29 December 2017, the intraday exchange rates were as follows for SEB Fund 2 - SEB Asia ex. Japan Fund,

SEB Fund 2 - SEB Generation Fund 80 and the combined figures were as follows: 1 CNY = 0.153562137 USD 1 MYR = 0.247095707 USD

1 EUR = 1.199325673 USD 1 NOK = 0.121954410 USD

1 GBP = 1.351700000 USD 1 PHP = 0.020032041 USD

1 HKD = 0.127971598 USD 1 SEK = 0.121874141 USD

1 IDR = 0.000073706 USD 1 SGD = 0.748221749 USD

1 INR = 0.015667234 USD 1 THB = 0.030684261 USD

1 JPY = 0.008887702 USD 1 TWD = 0.033603856 USD

1 KRW = 0.000934099 USD

33

As at 29 December 2017, the close of business exchange rates for SEB Fund 2 - SEB Nordic Focus Fund were as follows:

1 DKK = 0.161280708 USD 1 NOK = 0.122259277 USD

1 EUR = 1.200843320 USD 1 SEK = 0.122137853 USD

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:

• 1.75% is charged on SEB Fund 2 - SEB Asia ex. Japan Fund “C” (EUR) units (maximum rate: 1.75%)

• 1.75% is charged on SEB Fund 2 - SEB Asia ex. Japan Fund “C” (USD) units (maximum rate: 1.75%)

• 1.75% is charged on SEB Fund 2 - SEB Asia ex. Japan Fund “D” (USD) units (maximum rate: 1.75%)

• 0.75% is charged on SEB Fund 2 - SEB Asia ex. Japan Fund “IC P” (SEK) units (maximum rate: 1.75%)

• 0.50% is charged on SEB Fund 2 - SEB Generation Fund 80 “C” (SEK) units (maximum rate: 1.75%)

• 1.30% is charged on SEB Fund 2 - SEB Nordic Focus Fund “C” (EUR) units (maximum rate: 1.75%)

• 1.30% is charged on SEB Fund 2 - SEB Nordic Focus Fund “C” (NOK) units (maximum rate: 1.75%)

• 1.30% is charged on SEB Fund 2 - SEB Nordic Focus Fund “C” (SEK) units (maximum rate: 1.75%)

• 2.00% is charged on SEB Fund 2 - SEB Russia Fund “C” (EUR) units (maximum rate: 2.50%)

• 2.00% is charged on SEB Fund 2 - SEB Russia Fund “C” (USD) units (maximum rate: 2.50%)

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.

Note 3. Performance Fees

In addition to the management fees, the Management Company is entitled to performance fees in the applicable unit class of

the SEB Fund 2 - SEB Nordic Focus Fund. The performance fee is calculated, accrued and crystallised on a daily basis and

paid out of the assets of the applicable unit class of the Sub-Fund at the end of each month. The calculation of the

performance fees takes place on the basis of the units of the respective unit class in circulation at the respective Valuation

Day.

The performance fees per unit of the applicable unit class of the Sub-Fund equals 20% of the appreciation of the Net Asset

Value per unit of the applicable unit class of the Sub-Fund over the benchmark, which is the VINX Top 100, pre performance

fees, but post the management fees and other types of fees, above the current Hurdle Value of the applicable unit class of

the Sub-Fund.

Note 4. Retrocession Fees

Retrocession of management fees received by the Fund related to investments made in underlying investment funds are

recorded in the caption "Retrocession fees" in the Combined Statement of Operations.

34

Note 5. 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. Indian Tax

Each sub-fund may be subject to corporation taxes in certain countries in which it invests. Capital gains realised when

disposing of certain Indian securities held by a sub-fund are subject to capital gains tax in India, which, if any, is disclosed in

the Combined Statement of Operations under the heading "Other expenses". The tax is computed on net realised gains, and

realised losses in excess of gains may under certain conditions be carried forward 8 years to offset future gains. Indian tax

law imposes a tax of 15% on net realised gains from Indian securities sold within one year from the date of purchase. Given

the Company's intent to hold portfolio securities for more than one year, the Company does not accrue a deferred tax liability

on net unrealised gains on Indian securities.

In case the Company incurred a total realised loss on security sales as at fiscal year-end, the Company could recover the

taxable amount paid during the year on net realised gains, provided that a claim to the Tax Administration is introduced

within 2 years as from end of the financial years.

Note 6. Transaction Fees

Transaction fees incurred by the Fund relating to the purchase or sale of transferable securities, money market instruments, derivatives or other eligible assets are mainly composed of depositary 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 Fund 2 - SEB Asia ex. Japan Fund 488,590.16 USD SEB Fund 2 - SEB Generation Fund 80 26,481.20 SEK SEB Fund 2 - SEB Nordic Focus Fund 9,171.76 EUR

SEB Fund 2 - SEB Russia Fund 614,863.09 EUR

Note 7. Significant Events during the year

Prospectus

A new prospectus was issued in November 2017.

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.

35

Audit Report

To the Unitholders of

SEB Fund 2

Our opinion

In our opinion, the accompanying financial statements give a true and fair view of the financial position of SEB Fund 2 (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 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 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 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: +352 4948481, F:+352 494848 2900, www.pwc.lu Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256) R.C.S. Luxembourg B 65 477 - TVA LU25482518

36

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 and those charged with governance 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.

Those charged with governance are responsible for overseeing the Fund’s financial reporting process.

_I-pwc

Responsibilities of the "Reviseur 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 freefrom material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 23 July2016 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 couldreasonably 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, weexercise professional judgment and maintain professional scepticism throughout the audit.

We also:

0 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, designand perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control;

0 obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriatein the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds internal control;

0 evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relateddisclosures made by the Board of Directors of the Management Company;

0 conclude on the appropriateness of the Board of Directors of the Management Company's use of the going concern basisof accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Fund's ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our audit report. However, future events or conditions may cause the Fund to cease to continueas a going concern;

0 evaluate the overall presentation, structure and content of the financial statements, including the disclosures, andwhether the financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Pricewaterhbus ociét_é coopérative Luxembourg, 3 April 2018

Emmanuel C ataignier

37

Risk Disclosure (unaudited)

38

In the context of risk measurement and in accordance with CSSF Circular 11/512 a UCITS must calculate its global exposure

on at least a daily basis.

For SEB Fund 2, the global exposure is calculated and monitored daily by using the calculation methodology Value at Risk (VaR) or the commitment methodology. The VaR model used is parametric VaR. The observation period is at least 250 days. The VaR methodology provides an estimate of the maximum potential loss over a specific time period and at a given

confidence level, i.e. probability level. Usually for UCITS, the time period is 1 month/20 business days and the confidence

level is 99%.

For example, a VaR estimate of 3% on a 20-days’ time period with a 99% confidence level means that, with 99% certainty,

the percentage the Fund can expect to lose over the next 20 days’ period should be a maximum of 3%.

In case of the VaR methodology, the Fund can use either the “relative” or the “absolute” VaR approach.

According to CSSF Circular 11/512, the absolute VaR approach must not be greater than 20% based on a 99% confidence

level and a holding period of 1 month/20 business days. In the case of the relative VaR approach, the VaR of the Fund must not be greater than twice the VaR of its reference portfolio. Nevertheless, lower limitations than those ones set by the

regulator can be set in accordance with the investment policy/strategy of the Fund. In addition to the VaR, the level of leverage generated through the use of derivatives and the use of collateral in relation to

efficient portfolio management transactions (i.e. securities lending or repurchase agreements) is monitored twice a month.

Leverage is measured as the sum of the absolute notional exposures of the financial derivative instruments (i.e. the absolute

sum of all long and short notional positions in derivatives compared to the Net Asset Value of the Fund) and the reinvestment

of collateral related to securities lending or repurchase agreement used by the Fund.

The Investment Manager calculates the leverage on a gross or on a commitment method. The gross method converts all

positions on derivative financial instruments into equivalent positions in the underlying assets, while the commitment method

applies the same while allowing netting and hedging arrangements.

The table overleaf summarises the Fund indicating the VaR or commitment approach, the reference portfolio (in the case of

relative VaR), the lowest/highest and average utilisation of VaR (expressed as a percentage of the respective absolute or

relative legal VaR limit) as well as the average level of leverage for the year ended 31 December 2017 Or in other cases, the minimum, maximum and average leverage within the commitment method:

39

Fund Relative/

Absolute

VaR

Reference

portfolio

Lowest

utilisation of

VaR

Highest

utilisation

of VaR

Average

utilisation

of VaR

Average

leverage

(FX forwards

serving the

purposes of

unit-class(es)

hedging, if

any, are not

included in

the leverage

calculation)

Average

Leverage

(including

FX

forwards

for unit-

class

hedging)

SEB Fund 2 - SEB Asia

ex. Japan

Fund

Relative*

MSCI All

Country Asia

ex Japan Net

Return Index

47.04% 51.56% 49.36 % 1.84 % 1.84 %

SEB Fund 2 - SEB

Generation

Fund

80

Relative*

MSCI All

Country

World Net

Return Index

(75%), OMX

Stockholm

Index (25%)

46.77% 48.95% 48.07 % 0 % 0 %

SEB Fund 2 - SEB Nordic

Focus Fund

Relative*

VINX Top

100 Index

48.99 % 53.91% 50.92 % 0 % 0 %

SEB Fund 2 - SEB Russia

Fund

Relative*

MSCI Russia

10/40 TR Net

Return Index

38.22 % 48.23 % 45.68 % 0 % 0 %

* As of 14 November 2017, the Sub-Fund global exposure calculation method converted to a commitment approach.

For SEB Fund 2 - SEB Asia ex. Japan Fund, SEB Fund 2 -SEB Generation Fund 80, SEB Fund 2 -SEB Nordic Focus Fund and SEB

Fund 2 -SEB Russia Fund, the global exposure is calculated and monitored daily by using commitment approach.

The commitment approach figures for the year ending 31 December 2017:

Fund Commitment Method Leverage

Limit Minimum Average Maximum

SEB Fund 2 - SEB Asia ex. Japan Fund 100% 1.67% 1.74% 2.05%

SEB Fund 2 - SEB Generation Fund 80 100% 0.00% 0.00% 0.00%

SEB Fund 2 - SEB Nordic Focus Fund 100% 0.00% 0.00% 0.00%

SEB Fund 2 - SEB Russia Fund 100% 0.00% 0.00% 0.00%

Remuneration Disclosure (unaudited)

40

SEB Investment Management AB (the Management Company) wishes to encourage and incite good performance and sound

behaviour, as well as to endeavour to achieve balanced risk-taking that is aligned with the interests of fund unitholders.

The Management Company has a long-term vision regarding the employment conditions of its staff. Total remuneration shall

contribute to developing the Management Company's competitiveness and profitability through the Company being able to

attract, retain, motivate and reward competent and skilful employees. In order to achieve this objective, the Management

Company's board of directors has adopted a remuneration policy based on Swedish and international regulations. The purpose of

the remuneration policy is to ensure that the Management Company has a remuneration system that is adapted to the fund

unitholders' long-term interests and the Management Company's strategy and values.

The remuneration policy is based on the remuneration model that is applied at Group level, and is built on SEB's values. The

Management Company's remuneration policy is reviewed at least annually. The Management Company's current remuneration

policy is based on a risk analysis that has been prepared by the Management Company's risk control department.

The Management Company’s remuneration structure is based on three components:

• Fixed remuneration (basic salary)

• Variable remuneration

• Pensions and other benefits

The remuneration components are used to achieve a competitive individual level of remuneration with an appropriate balance

between fixed and variable remuneration.

The fixed remuneration component is individually adapted further to predetermined internal and external appraisals. The level of

the fixed remuneration is based on the employee's experience, long-term performance and behaviour.

All employees at the Management Company are embraced by SEB's collective profit sharing model that has a predetermined

maximum outcome. The remuneration is established based on SEB's earnings and customer satisfaction.

Remuneration to employees in control departments (internal audit, risk control, and observance of regulations) is established by

the board of directors further to proposals from the Management Company's remuneration committee. Remuneration shall be

based on objective grounds related to the employee's role and tasks, and be independent of the business unit that the control

department scrutinises.

Employees in departments that have a monitoring function, such as internal auditing, risk control or compliance, are not to

receive any other variable remuneration over and above SEB's profit sharing.

The Management Company applies the grandfather principle to all remuneration, which means all decisions are to be approved

by, at the least, the manager for the manager of the employee concerned.

Variable remuneration

The Management Company uses variable remuneration in order to develop and reward performance and behaviour that create

both short-term and long-term value for the fund unitholders and the Management Company. Variable remuneration is an

important aspect of designing a flexible remuneration system. Variable remuneration is composed of both cash and units/shares

in investment funds or financial instruments which achieve the equivalent common interests as units/shares in the relevant

investment funds.

The principles for variable remuneration adopted by the Management Company are established with the objective of reflecting

the Management Company's low risk tolerance and being compatible with the Fund's prevailing risk profiles, fund rules,

discretionary mandates, as well as internal and external regulations. The variable remuneration shall be based on the employee's

performance and behaviour from a several-year perspective, as well as the performance and economic results of the employee's

team, the Management Company and SEB as a whole.

At the same time as obtaining a sound balance between fixed and variable remuneration, the payment of variable remuneration

shall be related to the Management Company's risk policy and creation of value for the fund unitholders. This implies that certain

maximum levels and deferment of payment shall apply to different personnel categories.

41

For employees in positions that have a significant influence on the Management Company's or the managed funds’ risk profile,

the maximum variable remuneration may not exceed 100 percent of the fixed remuneration. The variable remuneration is to be

deferred by 40 to 60 percent for a minimum of three years. At least 50 percent of the variable remuneration is to consist of

units/shares in investment funds or instruments which achieve the same common interests as units/shares in the relevant

securities funds. Variable remuneration in the form of fund units/shares will be subject to retention policy for at least one year.

This retention policy applies to variable compensation whether or not it is deferred.

The Management Company also applies a special remuneration model for certain employees who manage funds and

discretionary mandates. The remuneration model for these persons is based on a structure with distinct rules for maximum

outcome of remuneration, deferment of remuneration as well as rules regarding downward adjustment/reduction of

remuneration.

Payment of deferred remuneration shall only be made if such is motivated based on the Management Company's economic

situation and the performance of the Management Company, the relevant division and the employee.

Reduction or downward adjustment of deferred variable remuneration shall apply should losses, increased risks and costs arise

during the deferment period, which includes for example taking into consideration the employee's observance of external and

internal regulations. Reduction or downward adjustment shall also take place should payment be deemed unwarrantable in view

of the Management Company's financial situation.

The variable remuneration system shall be continuously reviewed in order to ensure that it does not create any unsuitable

behaviour and contribute to excessive risk-taking.

The remuneration committee

The Management Company has appointed a remuneration committee with the task of independently appraising the

remuneration policy. The remuneration committee shall be responsible for preparing decisions regarding remuneration that are

to be adopted by the board of directors, and intervene if a decision could imply consequences for the Management Company's

risks and risk management. The remuneration committee is an independent body composed of the board of directors'

independent members.

Follow up

The CEO, the deputy CEO and the board of directors shall ensure that the remuneration policy is operationally applied. The

remuneration policy shall be reviewed annually by the internal audit department or by an independent auditing firm. In order to

ensure that the Management Company's remuneration system is applied in accordance with the remuneration policy, the

remuneration system and the payment of remuneration shall be reviewed annually by internal or external auditors.

Regulated staff Paid remuneration and benefits, 2017

(thousand)

USD

- Employees in leading strategic positions 2,869

- Employees responsible for control 515

- Risk-takers 10,892

- Employees whose total remuneration amounts to or exceeds the

total remuneration to any of the Executive Board

-

Total remuneration paid

(thousand)

USD

- All employees (fixed remuneration) 17,957

- All employees (variable remuneration) 4,374

Number of employees during the year 134

42

SEB Investment Management AB, Luxembourg Branch 4, rue Peternelchen, L-2370 Howald, Luxembourg Postal address: PO Box 2053, L-1020 Luxembourg Phone +352 - 26 23 1; Fax +352 - 26 23 25 55 www.sebgroup.lu

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