SEB Private Banking Fund 31.12 · SEB Private Banking Fund SICAV-SIF (the “Company”) is a...

Table of Contents

Annual Report SEB Private Banking Fund SICAV-SIF Status: 31 December 2017

R.C.S B 209948

Notice

The sole legally binding basis for the purchase of shares of the Company described in this report is the latest valid Issue Document with its terms of contract.

Table of Contents 1

Page

Organisation 2

General Information 4

Management Report 6

Report of the Board of Directors 8

Schedule of Investments:

SEB Private Banking Fund SICAV-SIF - SEB Modern Aggressive Fund 11

SEB Private Banking Fund SICAV-SIF - SEB Modern Growth Fund 14

SEB Private Banking Fund SICAV-SIF - SEB Modern Protection Fund 17

Combined Statement of Operations 19

Combined Statement of Changes in Net Assets 20

Combined Statement of Net Assets 21

Statistical Information 22

Additional information on Management Fees 23

Notes to the Financial Statements 24

Audit report 27

Risk Disclosure (unaudited) 30

Remuneration Disclosure (unaudited) 31

Organisation

2

Company:

SEB Private Banking Fund SICAV-SIF 4, rue Peternelchen L-2370 Howald, Luxembourg

Board of Directors of the Company:

Chairperson

Matthias Ewald Branch Manager SEB Investment Management AB Luxembourg

Members

Tobias Hjelm Global Head of Product Development & Management SEB Investment Management AB Stockholm, Sweden

Linda Jansdotter Global Head of Business Services SEB Investment Management AB (Publ) Stockholm, Sweden

Alternative Investment Fund

Manager (“AIFM”):

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

Board of Directors of the AIFM:

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 AIFM: SEB Investment Management AB, Luxembourg Branch 4, rue Peternelchen L-2370 Howald, Luxembourg

Organisation 3

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

Portfolio Manager: SEB Investment Management AB

Stjärntorget 4 SE-169 79 Solna, Sweden

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

Auditor of the Company: PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator L-2182 Luxembourg

Auditor of the AIFM: 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 AIFM, at the address of the Branch and on the website of the Branch.

General Information the Board of Directors

4

SEB Private Banking Fund SICAV-SIF is a Luxembourg open-ended investment company with variable share capital,

organised in the form of a Specialised Investment Fund (“Fonds d'investissement Spécialisé”). The Company is a SICAV-SIF

under the Luxembourg law of 10 August 1915 on commercial companies, as amended (“1915 Law”), and governed by the

law of 13 February 2007 on Specialised Investment Funds as amended. The Company qualifies as an Alternative Investment

Fund (“AIF”) under the Luxembourg law of 12 July 2013 on Alternative Investment Fund Manager(s), as amended, (the

“AIFM Law”). The Company has appointed SEB Investment Management AB as its AIFM in accordance with the provisions of

Chapter I, Article 4 of the 2013 Law. The Company was incorporated on 23 February 2009 for an unlimited duration as a

public limited company (“société anonyme”). The Articles of Incorporation were published in “Recueil Spécial des Sociétés et

Associations” (hereafter “Mémorial C”) on 16 August 1988. The Articles of Incorporation lastly modified with effect from 2

November 2016 have been published in the Mémorial C on 3 November 2016. The Company is registered with the RCS

under the number B 209948. The Company is managed by SEB Investment Management AB (the “AIFM”). The AIFM was

established on 19 May 1978 in the form of a Swedish limited liability company (AB). The AIFM 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 AIFM is also authorised as an alternative investment

fund manager to manage alternative investment funds under the Swedish AIFM Act (SFS 2013:561).

The AIFM 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

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 investment objective of the Company is to manage the Company’s entrusted assets for the benefit and success of the

Shareholders and to achieve long-term capital appreciation.

At present, three Sub-Funds are at the Shareholders’ disposal:

• SEB Private Banking Fund SICAV-SIF - SEB Modern Aggressive Fund

• SEB Private Banking Fund SICAV-SIF - SEB Modern Growth Fund

• SEB Private Banking Fund SICAV-SIF - SEB Modern Protection Fund

Unless otherwise laid down in part II of the Issue Document, "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.

General Information

5

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 Private Banking Fund SICAV-SIF - SEB Modern Aggressive Fund

o Capitalisation shares (”C (EUR)” shares) LU0414442078

o Capitalisation shares (”C (H-SEK)” shares) LU0414444280

o Capitalisation shares (”HNWC (H-SEK)” shares) LU0414444363

SEB Private Banking Fund SICAV-SIF - SEB Modern Growth Fund


o Capitalisation shares (”C (H-NOK)” shares) LU0465475860



SEB Private Banking Fund SICAV-SIF - SEB Modern Protection Fund




The base currency of the Company and the Sub-Funds is Euro.

The issue and redemption prices, which are computed daily on bank business days in Luxembourg, except 24 December and

31 December ("Valuation date"), can be obtained from the registered offices of the 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 Company may be obtained, free of charge at the registered

office of the AIFM, at the address of its Branch and on the website. These reports as well as copies of the Prospectus and the

Articles of Association are available, free of charge, at the registered office of the AIFM, at the address of the Branch and on

the website.

Management Report

6

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 Private Banking Fund SICAV-SIF.

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 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.

General Information

7

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 Directors Note: Performnces mentioned in this report are historical and are not indicative of future

Report of the Board of Directors

8

SEB Private Banking Fund SICAV-SIF - SEB Modern Protection Fund Market performance

The global economy showed robust growth in 2017. The cyclical upturn continued, with strong growth figures, declining unemployment and higher manufacturing output. Central banks around the world continued to pursue an expansionary monetary policy. As a consequence, interest rates remained low, even though the Federal Reserve raised interest rates in three instances during the year. The market expects interest rate increases to continue in 2018. The European Central Bank maintained low interest rates and stimulated the economy with supporting bond purchases, but to a lesser extent than before. The Fund’s performance

The portfolio’s development was weakly positive in 2017. Above all, the portfolio's hedge funds contributed to good returns. Brummer Multi-Strategy, a hedge fund consisting of other hedge funds, performed positively for the year overall. The portfolio's exposure to corporate bonds also performed well. However, the portfolio’s biggest exposure – to government bonds – had a moderating effect on the Fund’s return. Future strategy

The year 2018 starts with a generally positive scenario globally, and the awareness that the central banks will adjust their monetary policy during the year. This adjustment will result in a gradual increase in volatility which could change the game plan for the Sub-Fund’s management. However, the strong economic climate, combined with the continuously decreasing size of the Sub-Fund’s assets, indicates the direction of the portfolio.

General Information

9

SEB Private Banking Fund SICAV-SIF - SEB Modern Growth Fund Market performance

Good economic data and strong company reports supported global financial markets during the year. The appetite for economic risk was good – this was also apparent from the global equities market, which up to mid-April rose by 6 percent in Euro terms. A rapid strengthening of the Euro against the USD then caused a global equities index, as measured in Euro, to plummet to close to zero, before rallying in the autumn to close at +10 percent. Corporate bonds also showed strong growth, primarily in emerging markets. The asset class with the poorest growth was commodities, which developed negatively. The Fund’s performance The portfolio took varying positions during the year. The risk level increased a few notches at the beginning of the year, but was then reduced during the spring, when we saw a limited continued upside. With the improved financial outlook in the autumn, the portfolio's risk level rose again in several stages. Equities were the largest contributor to the portfolio. However, the portfolio's upturn indicates considerable breadth, since all asset classes except commodities yielded positive returns. Some holdings in the underlying funds, such as global equities fund SEB Fund 1 - SEB Global Fund Chance/Risk, developed better than the underlying market, which impacted the portfolio positively. The majority of the hedge funds developed positively, with SEB SICAV 3 - SEB Asset Selection Opportunistic as the largest single contributor in this segment. Currency fluctuations during the year had a negative impact on the Fund's results. Future strategy

We’re starting 2018 with a positive fundamental view of world growth, and are aware that the central banks will adjust their monetary policy during the year. This adjustment will lead to gradually increasing volatility and may change the game rules for our asset management. As an initial strategy, the strong economic climate sets the direction for the portfolios and the increased level of risk remains.

Report of the Board of Directors

10


Market performance

Good economic data and strong company reports supported global financial markets during the year. The appetite for economic risk was good, which was also apparent from the global equities market, which up to mid-April rose by 6 percent in Euro terms. Thereafter, a rapid strengthening of the Euro against the USD caused a global equities index, measured in Euro, to plummet to to zero, before rallying in the autumn to close at +10 percent. Corporate bonds also showed strong growth, primarily in emerging markets. The asset class with the poorest growth was commodities, which developed negatively. The Fund’s performance The portfolio took varying positions during the year. The risk level was raised a few notches at the beginning of the year, but was then reduced during the spring, when we saw a limited continued upside. With the improved financial outlook in the autumn, the portfolio's risk level was raised again in several stages. Equities were the largest contributor to the portfolio, although the portfolio's upturn indicates considerable breadth, since all asset classes except commodities yielded positive returns. Among underlying funds, some holdings, such as the global equities fund SEB Fund 1- SEB Global Fund Chance/Risk, developed better than the underlying market, which impacted the portfolio positively. The majority of the hedge funds developed positively, with SEB SICAV 3 - SEB Asset Selection Opportunistic as the largest single contributor in this segment. Currency fluctuations during the year had a negative impact on the Fund's results.

Future strategy

We’re starting 2018 with a positive fundamental view of world growth, and are aware that the central banks will adjust their monetary policy during the year. This adjustment will lead to gradually increasing volatility and may change the game rules for our asset management. As an initial strategy, the economic cycle sets the direction for the portfolios and the increased level of risk remains.

Schedule of Investments As at 31 December 2017

11


Security description Maturity Total holdings * Market % of

value in Net

EUR Assets

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

Commodity Funds

Luxembourg Threadneedle Lux - Enhanced Commodities Portfolio IEH 104,759 1,457,197.69 1.60Vontobel Fund - Commodity Fund HI EUR H 19,341 1,369,729.62 1.51

Total Luxembourg 2,826,927.31 3.11

Total Commodity Funds 2,826,927.31 3.11

Debt Funds

Ireland IPM Systematic Macro UCITS Fund I 2,109 2,205,946.72 2.43iShares JP Morgan EM Local Government Bond UCITS ETF 16,224 902,882.61 0.99iShares USD Corp Bond UCITS ETF 43,508 4,228,135.56 4.65Neuberger Berman Emerging Markets Debt - Local Currency Fund I 377,449 3,574,442.03 3.93

Total Ireland 10,911,406.92 12.00

Luxembourg Goldman Sachs Global Credit Portfolio Hedged IA 23,331 346,232.04 0.38Morgan Stanley Investment Funds - Global Asset Backed Securities Fund ZH 34,884 886,053.60 0.97Robeco QI Global Dynamic Duration IH EUR 39,435 6,011,865.75 6.61SEB Fund 4 - SEB Short Bond Fund EUR C EUR 1,039,795 1,330,937.69 1.46SEB Fund 5 - SEB Corporate Bond Fund EUR C 1,453,961 2,465,917.86 2.71SEB High Yield - SEB Sustainable High Yield Fund D EUR 196,520 7,394,837.08 8.14SEB SICAV 3 - SEB Asset Selection Opportunistic IC EUR 22,363 3,379,943.82 3.72UBAM - Global High Yield Solution IHCE 9,753 1,571,305.83 1.73


Total Debt Funds 34,298,500.59 37.72

Equity Funds

Ireland Artisan Partners Global Funds Plc - Global Value Fund I 233,105 4,074,531.51 4.48J O Hambro Capital Management Umbrella Fund Plc - European Select Values Fund A 625,992 2,388,159.48 2.63J O Hambro Capital Management Umbrella Fund plc - Global Select Fund A 3,528,896 9,189,244.33 10.11

Total Ireland 15,651,935.32 17.22

Luxembourg BlackRock Strategic Funds - Americas Diversified Equity Absolute Return A2 12,924 1,595,080.08 1.75BlackRock Strategic Funds - European Diversified Equity Absolute Return A2 13,015 1,549,305.60 1.70JPMorgan Funds - Emerging Markets Small Cap I Acc USD 17,931 2,332,976.66 2.57SEB Fund 1 - SEB Global Chance/Risk Fund D EUR 177,182 11,924,892.46 13.12SEB Fund 1 - SEB Global Fund IC 66,862 10,426,125.97 11.47SEB Fund 3 - SEB Ethical Global Index Fund C 6,101,272 7,636,476.52 8.40


12



value in Net

EUR Assets

Sweden SEB Hallbarhetsfond Global A SEK 761,984 1,323,329.37 1.46

Total Sweden 1,323,329.37 1.46

Total Equity Funds 52,440,121.98 57.69

Total Investment Funds 89,565,549.88 98.52

Total Transferable securities admitted to an official stock exchange listing

and/or dealt within another regulated market 89,565,549.88 98.52

Total Portfolio 89,565,549.88 98.52

Financial futures cleared with Skandinaviska Enskilda Banken AB (publ)

Purchased financial futures contracts Commitment in EUR Eurex Dow Jones Euro Stoxx 50 Future 1,711,570.00 16/03/18 49 (41,650.00) (0.05)ICE MSCI Emerging Markets Mini Index Future 1,162,882.77 16/03/18 24 49,914.94 0.06

Sold financial futures contracts Commitment in EUR CME Standard And Poors 500 E-Mini Future (2,785,542.41) 16/03/18 (25) (12,022.80) (0.01)

Total financial futures contracts (total net unrealised) (3,757.86) 0.00

An amount of EUR 287,792.37 is held as cash collateral for these positions. Forward foreign exchange contracts open with Skandinaviska Enskilda Banken S.A.

Buy 6,792,325 EUR Sell 8,000,000 USD 19/01/18 137,372.31 0.15Buy 681,686,839 SEK Sell 68,647,500 EUR 02/01/18 686,912.74 0.76

Total forward foreign exchange contracts (total unrealised) 824,285.05 0.91

ba

Schedule of Investments Heading As at Schedule of Investments Heading

13


Market

value in

EUR

% of

Net

Assets

Cash at bank and at broker

Cash at bank and at broker 542,161.23 0.60

Total Cash at bank and at broker 542,161.23 0.60

Other assets

Other assets 71,074.60 0.07

Total other assets 71,074.60 0.07

Liabilities

Management fees (81,307.15) (0.08)Bank interest payable on cash accounts (4,686.25) (0.01)Other liabilities (5,851.66) (0.01)

Total liabilities (91,845.06) (0.10)

Total Net Assets as at 31 December 2017 90,907,467.84 100.00

* Negative quantity is for short positions on financial future contracts and forward rate agreements.

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.


14



value in Net

EUR Assets


Ireland Lazard Global Listed Infrastructure Equity Fund A 2,885,058 6,648,616.16 1.97

Total Ireland 6,648,616.16 1.97

Total 6,648,616.16 1.97

Commodity Funds

Luxembourg Threadneedle Lux - Enhanced Commodities Portfolio IEH 362,066 5,036,338.06 1.49Vontobel Fund - Commodity Fund HI EUR H 71,304 5,049,749.28 1.50


Total Commodity Funds 10,086,087.34 2.99

Debt Funds

Ireland IPM Systematic Macro UCITS Fund I 7,777 8,134,493.91 2.42iShares JP Morgan EM Local Government Bond UCITS ETF 60,324 3,357,093.86 1.00iShares USD Corp Bond UCITS ETF 126,991 12,341,067.46 3.66iShares USD Treasury Bond 7-10yr UCITS ETF 98,764 16,023,581.56 4.76Neuberger Berman Emerging Markets Debt - Local Currency Fund I 1,055,249 9,993,208.03 2.97

Total Ireland 49,849,444.82 14.81

Luxembourg Goldman Sachs Global Credit Portfolio Hedged IA 89,861 1,333,537.24 0.40Morgan Stanley Investment Funds - Global Asset Backed Securities Fund ZH 100,337 2,548,559.80 0.76Robeco QI Global Dynamic Duration IH EUR 139,730 21,301,766.85 6.32Schroder International Selection Fund - EURO Short Term Bond C Cap 4,445,733 34,146,784.34 10.14SEB Fund 4 - SEB Short Bond Fund EUR C EUR 17,741,809 22,709,515.52 6.74SEB Fund 5 - SEB Corporate Bond Fund EUR C 2,783,721 4,721,190.82 1.40SEB Fund 5 - SEB Danish Mortgage Bond Fund C EUR 34,124 4,966,714.08 1.48SEB High Yield - SEB Sustainable High Yield Fund D EUR 276,206 10,393,362.71 3.09SEB SICAV 2 - SEB Alternative Fixed Income IC EUR 990,208 10,233,799.68 3.04SEB SICAV 3 - SEB Asset Selection Opportunistic IC EUR 62,918 9,509,426.52 2.82UBAM - Global High Yield Solution IHCE 34,305 5,526,878.55 1.64


Total Debt Funds 177,240,980.93 52.64

Equity Funds

Ireland Artisan Partners Global Funds Plc - Global Value Fund I 557,631 9,747,045.68 2.89J O Hambro Capital Management Umbrella Fund Plc - European Select Values Fund A 1,839,608 7,018,104.53 2.08J O Hambro Capital Management Umbrella Fund plc - Global Select Fund A 5,203,840 13,550,798.66 4.03

Total Ireland 30,315,948.87 9.00

Luxembourg BlackRock Strategic Funds - Americas Diversified Equity Absolute Return A2 44,998 5,553,653.16 1.65BlackRock Strategic Funds - European Diversified Equity Absolute Return A2 46,165 5,495,481.60 1.63JPMorgan Funds - Emerging Markets Small Cap I Acc USD 55,318 7,197,345.55 2.14Pictet Total Return - Agora I 43,991 5,293,876.94 1.57

Schedule of Investments eading

15



value in Net

EUR Assets

SEB Fund 1 - SEB Global Chance/Risk Fund D EUR 281,691 18,958,635.24 5.63SEB Fund 1 - SEB Global Fund IC 151,858 23,679,950.88 7.03SEB Fund 3 - SEB Ethical Global Index Fund C 11,637,008 14,565,116.64 4.32


Sweden SEB Hallbarhetsfond Global A SEK 2,817,875 4,893,773.05 1.45

Total Sweden 4,893,773.05 1.45


Hedge Funds

Luxembourg ATCM II - True Market Neutral 80,610 9,668,402.98 2.87


Sweden Brummer & Partners Multi-Strategy 51,985 11,584,779.25 3.44

Total Sweden 11,584,779.25 3.44

Total Hedge Funds 21,253,182.23 6.31




Total Portfolio 331,182,648.59 98.33

Financial futures cleared with Skandinaviska Enskilda Banken AB (publ)

Purchased financial futures contracts Commitment in EUR Eurex Dow Jones Euro Stoxx 50 Future 5,623,730.00 16/03/18 161 (136,850.00) (0.04)ICE MSCI Emerging Markets Mini Index Future 3,827,822.44 16/03/18 79 164,303.34 0.05

Sold financial futures contracts Commitment in EUR CME Standard And Poors 500 E-Mini Future (9,025,157.42) 16/03/18 (81) (38,953.87) (0.01)

Total financial futures contracts (total net unrealised) (11,500.53) 0.00

An amount of EUR 971,622.24 is held as cash collateral for these positions. Forward foreign exchange contracts open with Skandinaviska Enskilda Banken S.A.

Buy 38,206,826 EUR Sell 45,000,000 USD 19/01/18 772,719.27 0.23Buy 1,249,941 NOK Sell 126,329 EUR 02/01/18 928.82 0.00Buy 2,760,582,446 SEK Sell 277,997,276 EUR 02/01/18 2,781,745.43 0.83

Total forward foreign exchange contracts (total unrealised) 3,555,393.52 1.06

Schedule of Investments Heading As at Schedule of Investments Headingat

16


Market

value in

EUR

% of

Net

Assets

Cash at bank and at broker

Cash at bank and at broker 1,218,113.11 0.36

Total Cash at bank and at broker 1,218,113.11 0.36

Other assets

Receivable on sale of securities 818,488.22 0.24Other assets 348,892.79 0.11

Total other assets 1,167,381.01 0.35

Liabilities




* Negative quantity is for short positions on financial future contracts and forward rate agreements.




17


Security description Maturity Total holdings Market % of

value in Net

EUR Assets


Debt Funds

Ireland iShares USD Corp Bond UCITS ETF 15,634 1,519,322.22 4.20iShares USD Treasury Bond 7-10yr UCITS ETF 5,622 912,119.55 2.52Kames Capital - Absolute Return Bond Fund C 391,258 4,027,883.73 11.13

Total Ireland 6,459,325.50 17.85

Luxembourg BlueBay Funds - BlueBay Investment Grade Absolute Return Bond Fund I 19,207 2,056,916.93 5.69Carmignac Portfolio - Capital Plus A 1,796 2,111,180.04 5.84Robeco QI Global Dynamic Duration IH EUR 11,657 1,777,109.65 4.91Schroder International Selection Fund - EURO Short Term Bond C Cap 825,637 6,341,554.51 17.53SEB Fund 4 - SEB Short Bond Fund EUR C EUR 2,676,763 3,426,256.64 9.47SEB Fund 5 - SEB Corporate Bond Fund EUR C 481,090 815,928.64 2.26SEB High Yield - SEB Sustainable High Yield Fund D EUR 28,020 1,054,349.72 2.92SEB SICAV 2 - SEB Alternative Fixed Income IC EUR 172,895 1,786,869.83 4.94


Total Debt Funds 25,829,491.46 71.41

Equity Funds

Luxembourg BlackRock Strategic Funds - Americas Diversified Equity Absolute Return A2 7,020 866,408.40 2.40BlackRock Strategic Funds - European Diversified Equity Absolute Return A2 6,918 823,518.72 2.28



Hedge Funds

Luxembourg ATCM II - True Market Neutral 39,875 4,782,657.51 13.22


Sweden Brummer & Partners Multi-Strategy 12,075 2,690,898.37 7.44

Total Sweden 2,690,898.37 7.44

Total Hedge Funds 7,473,555.88 20.66




Total Portfolio 34,992,974.46 96.75 Forward foreign exchange contracts open with Skandinaviska Enskilda Banken S.A.

Buy 2,759,382 EUR Sell 3,250,000 USD 19/01/18 55,807.50 0.16Buy 266,405,406 SEK Sell 26,827,664 EUR 02/01/18 268,447.71 0.74

Total forward foreign exchange contracts (total unrealised) 324,255.21 0.90

Schedule of Investments Heading As at Schedule of Investments Headingat

18


Market

value in

EUR

% of

Net

Assets

Cash at bank

Cash at bank 527,956.17 1.46

Total Cash at bank 527,956.17 1.46

Other assets

Receivable on sale of securities 246,520.35 0.68Other assets 99,062.08 0.28

Total other assets 345,582.43 0.96

Liabilities






Combined Statement of Operations For the year ended 31 December 2017ochedule of s


19 SEB Private SEB Private SEB Private SEB Private

Banking Fund Banking Fund Banking Fund Banking Fund

SICAV-SIF - SICAV-SIF - SICAV-SIF - SICAV-SIF

SEB Modern

Aggressive Fund

SEB Modern

Growth Fund

SEB Modern

Protection Fund

Combined

EUR EUR EUR EUR

Income Investment income (note 1) 865,324.32 2,379,528.14 118,939.68 3,363,792.14Bank interest on cash accounts 1,369.82 4,745.87 193.71 6,309.40Retrocession fees (note 4) 576,706.61 1,740,384.53 150,846.88 2,467,938.02Total income 1,443,400.75 4,124,658.54 269,980.27 5,838,039.56

Expenses

Management fees (note 2) 1,134,714.32 4,133,132.23 172,771.07 5,440,617.62

Taxe d'abonnement (note 3) 3,929.85 17,665.36 2,132.57 23,727.78Bank interest on cash accounts 17,070.89 79,228.88 8,635.30 104,935.07Other expenses 21,035.56 54,766.46 20,929.65 96,731.67Total expenses 1,176,750.62 4,284,792.93 204,468.59 5,666,012.14

Net income/(loss) for the year 266,650.13 (160,134.39) 65,511.68 172,027.42

Combined Statement of Changes in Net Assets For the year ended 31 December 2017oadingat


20

h

SEB Private SEB Private SEB Private SEB Private



SEB Modern

Aggressive Fund

SEB Modern

Growth Fund

SEB Modern

Protection Fund

Combined

EUR EUR EUR EUR

Net Assets at the beginning of the year 105,490,084.51 490,376,152.23 61,186,388.55 657,052,625.29

Net income / (loss) for the year 266,650.13 (160,134.39) 65,511.68 172,027.42

Realised gain on:

- sale of securities 4,091,614.14 21,317,958.07 1,338,197.82 26,747,770.03- financial futures contracts 383,070.14 1,269,911.46 – 1,652,981.60- forward foreign exchange contracts 6,167,863.64 29,717,426.64 3,176,021.55 39,061,311.83

Total realised gain 10,642,547.92 52,305,296.17 4,514,219.37 67,462,063.46

Realised loss on:

- sale of securities (186,939.07) (840,328.09) (207,915.75) (1,235,182.91)- financial futures contracts (228,212.67) (972,831.65) – (1,201,044.32)- forward foreign exchange contracts (5,987,510.79) (26,771,550.38) (2,812,928.68) (35,571,989.85)

Total realised losses (6,402,662.53) (28,584,710.12) (3,020,844.43) (38,008,217.08)

Realised loss on foreign exchange (638,917.89) (2,981,050.73) (280,907.81) (3,900,876.43)

Total net realised gain 3,600,967.50 20,739,535.32 1,212,467.13 25,552,969.95

Change in unrealised appreciation on:

- securities 2,322,907.98 3,377,424.75 279,038.02 5,979,370.75- financial futures contracts 49,914.94 308,639.74 – 358,554.68- forward foreign exchange contracts 78,015.19 446,148.43 33,575.84 557,739.46

Total change in unrealised appreciation 2,450,838.11 4,132,212.92 312,613.86 6,895,664.89

Change in unrealised depreciation on:

- securities (1,486,422.31) (13,345,394.30) (1,169,199.54) (16,001,016.15)- financial futures contracts (53,672.80) (276,774.82) – (330,447.62)- forward foreign exchange contracts (884,010.09) (5,721,884.96) (732,414.10) (7,338,309.15)Total change in unrealised depreciation (2,424,105.20) (19,344,054.08) (1,901,613.64) (23,669,772.92)

Total net change in unrealised appreciation /

(depreciation) 26,732.91 (15,211,841.16) (1,588,999.78) (16,774,108.03)

Increase / (decrease) in Net Assets as a result of

operations 3,894,350.54 5,367,559.77 (311,020.97) 8,950,889.34

Proceeds on issues of shares 6,772,486.32 14,275,825.71 1,832,109.87 22,880,421.90

Payment on redemptions of shares (25,249,453.53) (173,230,726.95) (26,538,900.44) (225,019,080.92)

Total Net Assets as at 31 December 2017 90,907,467.84 336,788,810.76 36,168,577.01 463,864,855.61

Combined Statement of Net Assets As at 31 December 2017


21




SEB Modern

Aggressive Fund

SEB Modern

Growth Fund

SEB Modern

Protection Fund

Combined

EUR EUR EUR EUR

Assets

Portfolio at cost 79,071,111.47 306,964,854.83 33,551,943.52 419,587,909.82Unrealised appreciation 10,494,438.41 24,217,793.76 1,441,030.94 36,153,263.11Portfolio at market value (note 1) 89,565,549.88 331,182,648.59 34,992,974.46 455,741,172.93

Unrealised appreciation on forward foreign exchange contracts 824,285.05 3,555,393.52 324,255.21 4,703,933.78Cash at bank and at broker 542,161.23 1,218,113.11 527,956.17 2,288,230.51Other assets 71,074.60 1,167,381.01 345,582.43 1,584,038.04Total Assets 91,003,070.76 337,123,536.23 36,190,768.27 464,317,375.26

Liabilities

Unrealised depreciation on financial futures contracts (3,757.86) (11,500.53) – (15,258.39)Other liabilities (91,845.06) (323,224.94) (22,191.26) (437,261.26)Total Liabilities (95,602.92) (334,725.47) (22,191.26) (452,519.65)

Total Net Assets as at 31 December 2017 90,907,467.84 336,788,810.76 36,168,577.01 463,864,855.61

"C (EUR)" shares outstanding as at 31 December 2017 121,415.7740 378,091.6450 83,055.0170 –

"C (H-NOK)" shares outstanding as at 31 December 2017 – 10,600.0000 – –

"C (H-SEK)" shares outstanding as at 31 December 2017 2,249,583.8400 11,604,263.6050 626,542.6530 –

"HNWC (H-SEK)" shares outstanding as at 31 December 2017 1,483,872.9900 6,164,867.8930 1,685,738.6010 –

Net Asset Value per "C (EUR)" share as at 31 December 2017 175.163 147.341 109.807 –

Net Asset Value per "C (H-NOK)" share as at 31 December 2017 – 118.281 – –

Net Asset Value per "C (H-SEK)" share as at 31 December 2017 183.767 153.139 113.285 –

Net Asset Value per "HNWC (H-SEK)" share as at 31 December 2017 182.826 159.814 115.653 –

Statistical Information As at 31 December 2017

The accompanying notes are an integral part of these financial statements. 22




0 SEB Modern

Aggressive Fund

SEB Modern

Growth Fund

SEB Modern

Protection Fund

Combined

EUR EUR EUR EUR

Number of "C (EUR)" shares outstanding

as at 31 December 2017 121,415.7740 378,091.6450 83,055.0170 –as at 31 December 2016 140,551.2610 403,818.5660 116,636.8680 –as at 31 December 2015 147,081.5730 426,216.6770 139,390.5030 –

Number of "C (H-NOK)" shares outstanding

as at 31 December 2017 – 10,600.0000 – –as at 31 December 2016 – 10,600.0000 – –as at 31 December 2015 – 10,600.0000 54,035.0000 –

Number of "C (H-SEK)" shares outstanding

as at 31 December 2017 2,249,583.8400 11,604,263.6050 626,542.6530 –as at 31 December 2016 2,906,167.3210 16,519,029.1150 1,527,364.1420 –as at 31 December 2015 3,318,292.8790 18,433,432.2330 1,986,439.6310 –

Number of "HNWC (H-SEK)" shares outstanding

as at 31 December 2017 1,483,872.9900 6,164,867.8930 1,685,738.6010 –as at 31 December 2016 1,652,830.6480 10,957,758.8910 2,558,063.1250 –as at 31 December 2015 1,949,767.9240 11,964,111.2630 3,710,662.4390 –

Total Net Assets 0 0 0 0as at 31 December 2017 90,907,467.84 336,788,810.76 36,168,577.01 463,864,855.61as at 31 December 2016 105,490,084.51 490,376,152.23 61,186,388.55 657,052,625.29as at 31 December 2015 120,496,623.73 559,913,111.30 87,169,637.44 767,579,372.47

Net Asset Value per "C (EUR)" share

as at 31 December 2017 175.163 147.341 109.807 –as at 31 December 2016 165.133 142.738 108.768 –as at 31 December 2015 160.447 142.061 109.408 –

Net Asset Value per "C (H-NOK)" share* as at 31 December 2017 – 118.281 – –as at 31 December 2016 – 113.247 – –as at 31 December 2015 – 111.399 111.745 –

Net Asset Value per "C (H-SEK)" share


Net Asset Value per "HNWC (H-SEK)" share


* “C (H-NOK)” class terminated in March 2016.

Additional information on Management Fees

23


ISIN Code Fund Name Management fees in

%

LU0845774990 SEB Fund 1 - SEB Global Chance/Risk Fund D EUR 1.75 LU0957651143 SEB Fund 1 - SEB Global Fund IC 0.75 LU0389150375 SEB Fund 3 - SEB Ethical Global Index Fund C 0.40 LU0088160774 SEB Fund 4 - SEB Short Bond Fund EUR C EUR 0.40 LU0133008952 SEB Fund 5 - SEB Corporate Bond Fund EUR C 1.10 SE0000434151 SEB Hallbarhetsfond Global A SEK 1.50 LU0120526693 SEB High Yield - SEB Sustainable High Yield Fund D EUR 1.10 LU0425994927 SEB SICAV 3 - SEB Asset Selection Opportunistic IC EUR 0.75



%

LU0845774990 SEB Fund 1 - SEB Global Chance/Risk Fund D EUR 1.75 LU0957651143 SEB Fund 1 - SEB Global Fund IC 0.75 LU0389150375 SEB Fund 3 - SEB Ethical Global Index Fund C 0.40 LU0088160774 SEB Fund 4 - SEB Short Bond Fund EUR C EUR 0.40 LU0133008952 SEB Fund 5 - SEB Corporate Bond Fund EUR C 1.10 LU0337316391 SEB Fund 5 - SEB Danish Mortgage Bond Fund C EUR 0.75 SE0000434151 SEB Hallbarhetsfond Global A SEK 1.50 LU0120526693 SEB High Yield - SEB Sustainable High Yield Fund D EUR 1.10 LU0920715025 SEB SICAV 2 - SEB Alternative Fixed Income IC EUR 0.75 LU0425994927 SEB SICAV 3 - SEB Asset Selection Opportunistic IC EUR 0.75



%

LU0088160774 SEB Fund 4 - SEB Short Bond Fund EUR C EUR 0.40 LU0133008952 SEB Fund 5 - SEB Corporate Bond Fund EUR C 1.10 LU0120526693 SEB High Yield - SEB Sustainable High Yield Fund D EUR 1.10 LU0920715025 SEB SICAV 2 - SEB Alternative Fixed Income IC EUR 0.75

The management fees for the above underlying funds are fully retroceded.

Notes to the Financial Statements As at 31 December 2017

24

Note 1. Significant Accounting Policies

The financial statements have been prepared in accordance with Luxembourg regulations relating to Specialised Investment

Funds and the Alternative Investment Fund Directive.

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; the valuation at 29 December 2017 has 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 AIFM 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 of 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 AIFM, 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 AIFM 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.

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 AIFM 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.

Notes pto the Financial Statements heading As at 30 September 2015Notes

25

Currency translation:

All assets denominated in a different currency to the respective Sub-Funds' currency are converted into the 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 of the shares 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.

As at 29 December 2017, the close of business exchange rates were as follows:

1 NOK = 0.101811182 EUR 1 USD = 0.832748106 EUR

1 SEK = 0.101710065 EUR

Income:

Interest income and bank interest income are recognised on an accrual basis. Dividends are recorded on the ex-dividend date.

This income is shown net of any withholding taxes and adjusted accordingly when tax reclaims apply.

Note 2. Management Fees

Under the terms of the Alternative Investment Fund Management Agreement, the AIFM shall be entitled to the following

maximum fees:

• 1.25% is charged on SEB Private Banking Fund SICAV-SIF - SEB Modern Aggressive Fund “C (EUR)” shares

• 1.25% is charged on SEB Private Banking Fund SICAV-SIF - SEB Modern Aggressive Fund “C (H-SEK)” shares

• 0.90% is charged on SEB Private Banking Fund SICAV-SIF - SEB Modern Aggressive Fund “HNWC (H-SEK)” shares

• 1.15% is charged on SEB Private Banking Fund SICAV-SIF - SEB Modern Growth Fund “C (EUR)” shares

• 1.25% is charged on SEB Private Banking Fund SICAV-SIF - SEB Modern Growth Fund “C (H-NOK)” shares • 1.15% is charged on SEB Private Banking Fund SICAV-SIF - SEB Modern Growth Fund “C (H-SEK)” shares • 0.70% is charged on SEB Private Banking Fund SICAV-SIF - SEB Modern Growth Fund “HNWC (H-SEK)” shares • 0.50% is charged on SEB Private Banking Fund SICAV-SIF - SEB Modern Protection Fund “C (EUR)” shares • 0.50% is charged on SEB Private Banking Fund SICAV-SIF - SEB Modern Protection Fund “C (H-SEK)” shares • 0.25% is charged on SEB Private Banking Fund SICAV-SIF - SEB Modern Protection Fund “HNWC (H-SEK)” shares

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 AIFM pays portfolio management, accounting, administration and distribution fees on behalf of the Company.

Note 3. Taxation

The Company is liable in Luxembourg to a subscription tax ("taxe d'abonnement") of 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.

No stamp duty or other tax is payable in Luxembourg on the issue of shares.

heading

26

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 4. Retrocession fees

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

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

Note 5. Transaction Fees

Transaction fees incurred by the Company 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. 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 Private Banking Fund SICAV-SIF - SEB Modern Aggressive Fund 11,789.94 EUR SEB Private Banking Fund SICAV-SIF - SEB Modern Growth Fund 28,237.94 EUR SEB Private Banking Fund SICAV-SIF - SEB Modern Protection Fund 10,835.00 EUR

Note 6. Significant events during the year

Prospectus

A new prospectus was issued in August 2017.

Directors

There were changes to the Board of Directors of the AIFM during the year. Please refer to the Organisation section on page 2 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 7. Subsequent Events after the year end

Liquidation of Sub-Funds

Effective 29 March 2018, SEB Private Banking Fund-SICAV-SIF’s Board of Directors has decided to liquidate the Sub-Fund SEB Private Banking Fund SICAV-SIF – SEB Modern Protection Fund.

27

Audit Report

To the Shareholders of SEB Private Banking Fund SICAV-SIF

Our opinion

In our opinion, the accompanying financial statements give a true and fair view of the financial position of SEB Private Banking Fund SICAV-SIF (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: +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

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.

pwc

Responsibilities of the ”Réviseur d’entreprises agree” for the audit of the financial statements

The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial 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 of25 July 2016 and with |SAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they 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 lSAs as adopted for Luxembourg by the CSSF, we exerciseprofessional 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, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resultingfrom error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internalcontrol;

0 obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate inthe 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 relateddisclosures 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 castsignificant 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 suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date ofour 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 whetherthe 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 theaudit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Pricewaterhousecoopers, Société coopérative Luxembourg, 24 May 2018Represen by

mmanuel Chataig

29

Risk Disclosure (unaudited)

30

1) Risk Profile The current risk profile of the Sub-Funds as disclosed in the Prospectus has not been amended throughout the reporting year.

The AIFM monitors the overall risk profile of the Company, including market, liquidity, counterparty as well as the level of the

leverage.

No limits as set by the Board of Directors of the Company or the AIFM as part of the risk profile have been exceeded or are likely

to be exceeded by the Sub-Funds.

2) Risk Management systems

The risk monitoring is based on the risk management process adopted by the Board of Directors of the AIFM and is performed

independently from the portfolio management. No changes have been applied to the risk management procedures.

3) Leverage

In accordance with the Law of 12 July 2013 (the “2013 Law”), the maximum level of leverage which the AIFM is entitled to

employ is disclosed in the below table.

The AIFM calculates the leverage on a gross and on a commitment method in accordance with Article 7 and Article 8 of the

Commission Delegated Regulation EU/231/2013 (the “AIFM Regulation”) on a monthly basis. 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 level of leverage during the reporting year is disclosed below: Fund Gross Method Leverage Commitment Method Leverage

Limit Minimum Average Maximum

As at

29

December

2017

Limit Minimum Average Maximum

As at

29

December

2017

SEB Private

Banking Fund

SICAV-SIF -

SEB Modern

Aggressive

Fund

300% 107.13% 116.60% 125.83% 112.22% 300% 100.07% 107.71% 114.58% 104.46%

SEB Private

Banking Fund

SICAV-SIF -

SEB Modern

Growth Fund

300% 107.67% 116.53% 120.70% 116.06% 300% 100.82% 106.92% 112.29% 104.02%

SEB Private

Banking Fund

SICAV-SIF -

SEB Modern

Protection

Fund

300% 104.08% 110.27% 126.72% 113.10% 300% 99.82% 103.74% 120.10% 104.55%

Remuneration Disclosure (unaudited)

31

SEB Investment Management AB (the “AIFM”) 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 Company shareholders.

The AIFM has a long-term vision regarding the employment conditions of its staff. Total remuneration shall contribute to developing the AIFM’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 AIFM'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 AIFM has a remuneration system that is adapted to the Company shareholders' long-term interests and the AIFM’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 AIFM’s remuneration policy is reviewed at least annually. The AIFM's current remuneration policy is based on a risk analysis that has been prepared by the AIFM’s risk control department.

The AIFM’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 AIFM 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 AIFM’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 AIFM 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 AIFM uses variable remuneration in order to develop and reward performance and behaviour that create both short-term and long-term value for the Company shareholders and the AIFM. 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 AIFM are established with the objective of reflecting AIFM’s low risk tolerance and being compatible with the Company'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 AIFM 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 AIFM's risk policy and creation of value for the Company shareholders. This implies that certain maximum levels and deferment of payment shall apply to different personnel categories.

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For employees in positions that have a significant influence on the AIFM'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 Company 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 AIFM 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 AIFM's economic situation and the performance of the AIFM, 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 AIFM'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 AIFM 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 AIFM'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 AIFM'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 Total remuneration paid

(thousand) EUR - All employees (fixed remuneration) 14,954 - All employees (variable remuneration) 3,642 - Executive leadership and employees who significantly affect the alternative investment fund's risk profile 11,459 Number of employees during the year 134

Remuneration Disclosure (unaudited)

33

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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