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Strategy investment funds

Strategy investment funds

  • The opportunity to choose the risk level – the conservative, balanced or active investment strategy
  • The opportunity to entrust the day-to-day management of investments to the team of SEB professionals
  • A long-term investment solution

If you are new to investing, SEB strategy investment funds are a suitable solution for you. The objective of strategy funds is to reduce fluctuations in the value of investments, aiming at ensuring a positive return on investments under any market circumstances. You can choose a lower or higher risk investment strategy, by entrusting the management of the invested assets to experienced SEB specialists who would thoughtfully diversify and professionally manage your investment portfolio.

If you want to entrust the management of your investments to professionals we encourage you to invest in SEB Multi Asset strategy funds. The only decision that you will need to take as a prospective investor will be the choice of the acceptable risk level. The team of SEB investment management professional will take full care of other aspects of asset management.

You only need to choose the most suitable investment strategy with the relevant risk level. The team of SEB professionals will do the rest.

  • Investments in strategy funds form a stable basis for an investment portfolio, moreover, it can be combined with investments in other funds.
  • Funds offer access to such investment instruments that are unavailable for direct investors.
  • An investment portfolio consists of a wide range of financial instruments, which significantly reduces the risk as well as retains the return potential.
  • Strategy fund portfolios are evaluated on a regular basis, and, if necessary, they are dynamically modified to take account of the long-term yield forecasts and short-term market risk assessments.

* Past performance does not guarantee equivalent future results. Investment funds are exposed to financial market risks, and their value can be negative in certain periods.

Strategy funds are suitable for long-term (on average 3-5 year) investing. When choosing the most suitable strategy, the decisive factors are the purpose of investing, the term thereof, and the acceptable risk level:

  • The closer you are to reaching your target savings, the lower the assumed risk should be. Thus, if you may need the funds over the next three years, the most suitable choice would be the conservative strategy. Whereas, if you only start saving for your long-term goal, you can also consider a higher-risk investment opportunities. If you have a number of goals, you can use a number of investment strategies simultaneously.
     
  • Your individual risk tolerance, as well as your knowledge and previous investing experience do matter. Having regard to them, you would be able to choose the strategy and the risk level that are most suitable for you. A free consultation with our investment specialists will help you select the strategy.

SEB banka offers three different levels of risk investment strategies

  • The conservative strategy (SEB Strategy Defensive, SEB deLuxe Multi Asset Defensive) is suitable for investors with a low risk tolerance, who are prepared to be exposed only to short-term fluctuations in the values of investments. The strategy might be suitable for you if you want to invest for at least two years, however, investing for a shorter period is also possible.
     
  • The balanced strategy (SEB Strategy Balanced, SEB deLuxe Multi Asset Defensive Plus) is suitable for investors with a medium risk tolerance, who, seeking the opportunities of making profit in excess of the euro money market rates, are willing to assume an equivalent risk of loss. The strategy might be suitable for you if you want to invest for at least three years, however, investing for a shorter period is also possible.
     
  • The active strategy (SEB Strategy Opportunity, SEB Strategy Growth, SEB deLuxe Multi Asset Balanced) is suitable for investors with a medium-high risk tolerance, who are prepared to assume the risk in pursuit of long-term capital gains. The strategy might be suitable for you if you want to invest for at least five years, however, investing for a shorter period is also possible.

To purchase fund certificates, you need to have a securities account opened with SEB bank. A securities account can be opened free via internet bank or at any branch of SEB bank, upon presenting a document proving your identity.

You can also buy and sell investment funds using the online banking facility.

Investing in stock funds is long-term savings with a high risk tolerance level. If you want to learn more about investment opportunities and risks, apply for a consultation with one of our investment specialists.

The minimum amount of investment is one euro.

Regular purchase of investment funds

If you would like to buy funds on regular basis, we offer regular investment fund purchase via our internet bank.

By making regular investments in SEB funds you will decrease the fluctuations of investment portfolio value. You determine the amount (minimum is 10 EUR), frequency for fund purchase, as well as the first day of investment.

You may specify the regular investing expiry. Minimum period for the regular fund purchase order is three months.

Regular investments mean that you invest evenly, thus balancing out the possible fluctuations when the securities market experiences increase or fall.

You can buy, change or sell SEB Fund certificates online or at any branch of SEB bank.

Standard transaction completion time*:

  • if you submit the order until 14:00, it will be executed on the day after next working day at the price effective on the submission date;
  • If you submit the order after 14:00, it will be executed on the third working day after order submission at the price effective on the next day.

* Before engaging in transactions with SEB investment funds, please familiarise yourself with the procedure for the execution of fund transactions and the exceptions thereto as laid down in the document "SEB Investment Funds Units in the Republic of Latvia (PDF)".

Procedure for the execution of SEB investment fund transactions

Please pay attention to the base currency of the relevant fund in the list of the funds. If the currency of the current account differs from the base currency of SEB Fund base currency, the currency will be exchanged at the time of execution of the transaction.

Under the law On Personal Income Tax, capital gains derived by natural persons are subject to tax (including net gains on transactions with investment funds); we would therefore like to explain how the tax is levied.

Under the law On Personal Income Tax, the Government charges the tax at the rate of 20% of the gains on investment funds. The tax is not levied on the entire amount invested in funds, but only on the gains derived. The payment of the tax on capital gains is the responsibility of the investor himself/herself, who is also required to report his/her gains derived from transactions with investment funds as well as to pay the said tax.

Over what period of time and where should the tax be paid?

Under the law On Personal Income Tax, anyone deriving capital gains, is required to report their gains to the State Revenue Service once a quarter (if the capital gains exceeds 1000 EUR), or until the 15th of January of the following taxation year (if the capital gains are lower than 1000 EUR). The calculated tax must be contributed to the State budget within 15 days from the date of submission of the declaration.

The account details for making the personal income tax payment are as follows:

Beneficiary: The Treasury
Registration number: 90000050138
Account number: LV91TREL1060000110000
Beneficiary’s BIC code: TRELLV22

After 3rd January 2018, new rules of the Markets in Financial Instruments Directive 2014/65/EU (MiFID II) will come into force and will affect each investor who engages in transactions in financial instruments.

What do MiFID II and MiFIR mean?

The Markets in Financial Instruments Directive (MIFID) that regulates the rendering of financial investment services has been effective in Latvia since 2007. The requirements of MiFID II are to be regarded as the next step aimed to provide additional protection to investors and promote the transparency of financial markets in terms of transactions in financial instruments. Whereas the Markets in Financial Instruments Regulation (MiFIR) is more applicable directly to the execution of transactions in financial instruments, publication of data and reporting to competent authorities.

What will MiFID II mean to investors?

The requirements of the new directive will ensure the following to investors:

  • additional protection, through receiving from the issuers of financial instruments and providers of services more detailed information on financial instruments and investment services;
  • greater transparency of financial markets.

Under the new EU regulatory framework requirements, all legal entities engaged in carrying out transactions in financial instruments need to have an international identifier.

From 3 January 2018 on, in carrying out their activity, the providers and recipients of investment services and investment ancillary services have to comply with the requirements of the Markets In Financial Instruments Directive 2014/65/EU (MiFID II) and the Markets In Financial Instruments Regulation No. 600/2014 (MiFIR), under which all legal entities carrying out transactions in financial instruments need to be additionally identified with a unique international legal entity identifier (LEI).

An LEI is a unique 20 alphanumeric identifier, which allows identification of the counterparties of transactions in financial instruments regardless of the country. The LEI does not replace the registration number assigned to the company by the Register of Enterprises of the Republic of Latvia.

Who needs LEI and why?

As of 3 January 2018, all legal entities engaged in transactions (e.g., acquisitions or disposals) in various financial instruments (such as stocks, bonds, ETFs, derivatives, etc.) are required to have LEI to comply with the reporting duty under MiFID II and MiFIR. LEIs are also required for such transactions of legal entities, which are aimed to dispose of the financial instruments that were acquired before the date on which the new requirements started to apply.

The purpose of LEIs is to ensure better supervision and transparency of the financial market because, reporting the financial transactions carried out by legal entities to supervisory authorities (the Financial and Capital Market Commission), credit institutions are require to use LEIs as company identifiers. Unless the company notifies the bank of its LEI, SEB bank isn’t allow to accept such financial instrument transaction orders.

Where can an LEI be obtained?

LEIs are issued by the Local Operating Unit of the Global Legal Entity Identifier Foundation (GLEIF).

Without recommending any particular local operating unit, below we have listed the contact information of some of the most favoured local operating units issuing LEIs in the Baltic and Nordic countries:

A full list of the local operating units that issue and maintain LEIs

If your company already has an LEI, a new identifier would not be required. The LEI must be submitted to the bank under the procedure described below. If you do not know whether your company has a valid LEI, you can check it on the GLEIF website by reference to the company’s name.

What needs to be done to get an LEI?

To apply for an LEI, choose an LEI issuer (the local operating unit from the list of the institutions mentioned on the www.gleif.org list). Then fill in the application on the website of the relevant local operating unit, specifying the required information therein.

Usually, the information required will include the company's full name, business form (e.g., a limited liability company), registration number, country, and registered office.

How much does an LEI cost and what is the waiting time before I get it?

Registration and annual subscription fees are charged for an LEI. Therefore, before you buy an LEI, you should by all means ascertain the likely costs – they may vary depending on the LEI issuer selected by you.

Currently, the registration of an LEI costs about 65-200 euros, whereas the annual subscription fee is in the range of 50-100 euros.

It usually takes one -two weeks to receive an LEI.

If your company is not contemplating to engage in new financial transactions immediately after the entry of the requirements into force, purchasing of an LEI needs not to be done immediately, however, it should be taken into consideration that upon resuming transactions, an LEI will be a mandatory company identifier for transactions in financial instruments to be specified before carrying out the first transaction.

Where and to whom can I submit the received LEI at SEB bank?

To be able to engage in transactions in financial instruments, please to submit your LEI through Internet Bank section Securities/Securities accounts or notify your manager about your LEI before the contemplated transaction.

Who to contact to in case of further questions?

If you have any further questions, please call +371 26668777, +371 67779988, Skype (SEB_Latvia) You can also contact your manager at SEB bank.

Key Investor Information Documents regarding investment funds and Key Information Documents regarding Life insurance with savings and derivatives you can find in SEB bank’s web page.

From 3 January 2018 on, in carrying out their activity, the providers and recipients of investment services and investment ancillary services have to comply with the requirements of the Markets In Financial Instruments Directive 2014/65/EU (MiFID II) and the Markets In Financial Instruments Regulation No. 600/2014 (MiFIR), under which all investment services providers have to make public, on an annual basis, for each class of financial instruments, the top execution venues and brokers where they executed client orders in the preceding year and information on the quality of execution obtained.

MiFID II requirements entered into force from 3 January 2018, therefore report for the year 2017 may lack some information, since SEB banka have been collecting information for the preceding year under MiFID I best execution obligations.

  1. What does MiFID II mean?
    Since 2007, Markets in Financial Instruments Directive (MIFID) of the European Union was effective in Latvia, regulating provision of financial investment services. Requirements of MiFID II should be considered as the next step in order to ensure additional protection to the investors and to promote transparency of the financial market in transactions with financial instruments.

  2. When does MiFID II Directive become effective?
    In Latvia, MIFID II Directive should be complied with as of 3 January 2018. In addition, providers of investment service must also adhere to MiFIR Regulation which is linked to MIFID II Directive. Requirements arising from the MiFID II Directive in 2018 will be incorporated also in the Latvian legislation, including the Law on Financial Instruments Market; but the provider of investment services should observe the requirements arising from MIFIR directly.

  3. What is the main purpose of MiFID II?
    The main purpose of the Directive is to increase protection and awareness of investors, as well as to promote transparency and orderliness of the financial market of the European Union.

  4. How does MIFID II differ from MiFID I Directive, which was implemented in 2007?
    When evaluating the implementation process of MIFID I and the consequences of the financial crisis observed during its validity time, the regulators proposed additional amendments: MiFID II / MIFIR, which actually continues to establish the effective regulation of the financial market and to enhance the applicable area, for example, MIFID II is applicable to a wider range of financial assets.

  5. Which investment products and services are included in MiFID II?
    MiFID II is applicable to such financial instruments as funds, shares, structured deposits, bonds, currency swap transactions, interest rate swap transactions, etc., as well as such investment services as acceptance and execution of orders, investment advice and portfolio management.

  6. Is MiFID II applicable to savings products as well?
    MiFID II is not directly applicable to such savings products as the savings account or pension savings.

  7. What will change for me as a customer in 2018?
    Along with implementation of MiFID II, the customers will be able to receive more information on financial instruments, related risks, potential costs, etc. They will receive more information on financial transactions as well.

  8. What is LEI (Legal Entity Identifier), and which customers will need it?
    All legal entities performing transactions with various financial instruments (for example, with shares, bonds, exchange traded funds, derivative financial instruments and other financial instruments) as of 3 January 2018 will need a special Legal Entity Identifier – a LEI code. Investment companies will not be further allowed to provide investment services to the customer, unless the legal entity has acquired a LEI code. More information on LEI is available in the LEI section.

LEI

Under the new EU regulatory framework requirements, all legal entities engaged in carrying out transactions in financial instruments need to have an international identifier.

From 3 January 2018 on, in carrying out their activity, the providers and recipients of investment services and investment ancillary services have to comply with the requirements of the Markets In Financial Instruments Directive 2014/65/EU (MiFID II) and the Markets In Financial Instruments Regulation No. 600/2014 (MiFIR), under which all legal entities carrying out transactions in financial instruments need to be additionally identified with a unique international legal entity identifier (LEI).

An LEI is a unique 20 alphanumeric identifier, which allows identification of the counterparties of transactions in financial instruments regardless of the country. The LEI does not replace the registration number assigned to the company by the Register of Enterprises of the Republic of Latvia.

Who needs LEI and why?

As of 3 January 2018, all legal entities engaged in transactions (e.g., acquisitions or disposals) in various financial instruments (such as stocks, bonds, ETFs, derivatives, etc.) are required to have LEI to comply with the reporting duty under MiFID II and MiFIR. LEIs are also required for such transactions of legal entities, which are aimed to dispose of the financial instruments that were acquired before the date on which the new requirements started to apply.

The purpose of LEIs is to ensure better supervision and transparency of the financial market because, reporting the financial transactions carried out by legal entities to supervisory authorities (the Financial and Capital Market Commission), credit institutions are require to use LEIs as company identifiers. Unless the company notifies the bank of its LEI, SEB bank isn’t allow to accept such financial instrument transaction orders.

Where can an LEI be obtained?

LEIs are issued by the Local Operating Unit of the Global Legal Entity Identifier Foundation (GLEIF).

Without recommending any particular local operating unit, below we have listed the contact information of some of the most favoured local operating units issuing LEIs in the Baltic and Nordic countries:

A full list of the local operating units that issue and maintain LEIs

If your company already has an LEI, a new identifier would not be required. The LEI must be submitted to the bank under the procedure described below. If you do not know whether your company has a valid LEI, you can check it on the GLEIF website by reference to the company’s name.

What needs to be done to get an LEI?

To apply for an LEI, choose an LEI issuer (the local operating unit from the list of the institutions mentioned on the www.gleif.org list). Then fill in the application on the website of the relevant local operating unit, specifying the required information therein.

Usually, the information required will include the company's full name, business form (e.g., a limited liability company), registration number, country, and registered office.

How much does an LEI cost and what is the waiting time before I get it?

Registration and annual subscription fees are charged for an LEI. Therefore, before you buy an LEI, you should by all means ascertain the likely costs – they may vary depending on the LEI issuer selected by you.

Currently, the registration of an LEI costs about 65-200 euros, whereas the annual subscription fee is in the range of 50-100 euros.

It usually takes one -two weeks to receive an LEI.

If your company is not contemplating to engage in new financial transactions immediately after the entry of the requirements into force, purchasing of an LEI needs not to be done immediately, however, it should be taken into consideration that upon resuming transactions, an LEI will be a mandatory company identifier for transactions in financial instruments to be specified before carrying out the first transaction.

Where and to whom can I submit the received LEI at SEB bank?

To be able to engage in transactions in financial instruments, please to submit your LEI through Internet Bank section Securities/Securities accounts or notify your manager about your LEI before the contemplated transaction.

Who to contact to in case of further questions?

If you have any further questions, please call +371 26668777, +371 67779988, Skype (SEB_Latvia) You can also contact your manager at SEB bank.

KID

Key Investor Information Documents regarding investment funds and Key Information Documents regarding Life insurance with savings and derivatives you can find in SEB bank’s web page.

Questions and answers

  1. What does MiFID II mean?
    Since 2007, Markets in Financial Instruments Directive (MIFID) of the European Union was effective in Latvia, regulating provision of financial investment services. Requirements of MiFID II should be considered as the next step in order to ensure additional protection to the investors and to promote transparency of the financial market in transactions with financial instruments.

  2. When does MiFID II Directive become effective?
    In Latvia, MIFID II Directive should be complied with as of 3 January 2018. In addition, providers of investment service must also adhere to MiFIR Regulation which is linked to MIFID II Directive. Requirements arising from the MiFID II Directive in 2018 will be incorporated also in the Latvian legislation, including the Law on Financial Instruments Market; but the provider of investment services should observe the requirements arising from MIFIR directly.

  3. What is the main purpose of MiFID II?
    The main purpose of the Directive is to increase protection and awareness of investors, as well as to promote transparency and orderliness of the financial market of the European Union.

  4. How does MIFID II differ from MiFID I Directive, which was implemented in 2007?
    When evaluating the implementation process of MIFID I and the consequences of the financial crisis observed during its validity time, the regulators proposed additional amendments: MiFID II / MIFIR, which actually continues to establish the effective regulation of the financial market and to enhance the applicable area, for example, MIFID II is applicable to a wider range of financial assets.

  5. Which investment products and services are included in MiFID II?
    MiFID II is applicable to such financial instruments as funds, shares, structured deposits, bonds, currency swap transactions, interest rate swap transactions, etc., as well as such investment services as acceptance and execution of orders, investment advice and portfolio management.

  6. Is MiFID II applicable to savings products as well?
    MiFID II is not directly applicable to such savings products as the savings account or pension savings.

  7. What will change for me as a customer in 2018?
    Along with implementation of MiFID II, the customers will be able to receive more information on financial instruments, related risks, potential costs, etc. They will receive more information on financial transactions as well.

  8. What is LEI (Legal Entity Identifier), and which customers will need it?
    All legal entities performing transactions with various financial instruments (for example, with shares, bonds, exchange traded funds, derivative financial instruments and other financial instruments) as of 3 January 2018 will need a special Legal Entity Identifier – a LEI code. Investment companies will not be further allowed to provide investment services to the customer, unless the legal entity has acquired a LEI code. More information on LEI is available in the LEI section.

Commission for transactions with SEB mutual funds1

Services Fees
In Internet bank2 At the Bank's branch
Subscription and regular subscription of mutual fund units:
   •  Price group 3 (equity and alternative funds) 0,75% 0,75%
   •  Price group 2 (bond, conservative, balanced and active strategy funds) 0,5% 0,5%
   •  Price group 1 (money market and short bond funds) 0% 0%
Redemption of SEB mutual fund units (for all SEB funds) Free of charge  Free of charge
Switch Free of charge  Free of charge

Minimum amount for subscription and switch of SEB mutual fund units

1.00 EUR or equivalent in another currency

 


 

1 The maximum allowed subscription fee is indicated in prospectus regulating SEB mutual funds. In cases when maximum allowed subscription fee indicated in the prospectus exceeds the fee indicated in the pricelist, the smallest fee will be applied.

2 Regular payment orders or operations in Internet bank are possible only for those funds that are publicly distributed by SEB and indicated in SEB bank's home page.

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