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Equity Basket - Certificate
This document describes an investment opportunity created by SEB. The document is a sales material and shall not be
considered as investment analysis or advice. Non capital guaranteed investment – the entire invested capital may be lost.
Past performance is not indicative of future results, which may vary. Counterparty credit risk on SEB.
Equity Research Dividend
It is SEB’s assessment that Nordic equities offer attractive dividend yields close to the 10-year average. Equity Research’s Macro Equity Model suggests
a sideways market development until mid-year 2015 and we believe that during these market conditions companies with a high estimated dividend
yield together with a strong balance sheet can outperform the market.
The certificate Equity Research Dividend gives the investor exposure to a concentrated equity basket with up to 20 Nordic companies during three
dividend seasons. The equity basket is determined by four selection criteria and is selected in January 2015, November 2015 and November 2016. The
certificate’s last day of trading is in June 2017.
EQUITY RESEARCH DIVIDEND
2014 was a challenging year for equity investors in the Nordic countries.
Underlying momentum was positive until mid-June 2014. The market
then started to move sideways with many rises and falls.
Equity Research’s Macro Equity Model is aimed at forecasting the SEB
Nordic All-Cap Index that consists of 277 Nordic equities. The latest
update of the Macro Equity Model suggests a sideways market
development with rise and falls during the first half of 2015.
Nordic equities offer attractive expected dividend yields, both relative to
history and to global equity markets. On 9 January 2015 the SEB Nordic
All-Cap Index traded at an estimated dividend yield of 3.4%. This is
close to the 10-year average of 3.6%. It is also better than Bloomberg’s
estimated dividend yield for the MSCI World and MSCI Nordic index of
2.5% and 2.4%.
Equity Research’s assessment is that Nordic stocks with a high
estimated dividend yield and a strong balance sheet could generate a
risk adjusted return greater than the average for Nordic equities in a
sideways market development with rise and falls.
What does the certificate offer investors?
The certificate Equity Research Dividend gives the investor exposure to
a concentrated equity basket with up to 20 Nordic companies during
three dividend seasons.
CRITERIA FOR THE SHARE BASKET
Market capitalisation:
Only companies with a market
capitalisation greater than 2 billion euro in order to ensure
sufficient liquidity in the selected equities.
●
●
Balance sheet strength: Companies with a net debt/EBITDA
below 2.5 for the current year based on estimates from Equity
Research. Not applicable on companies in the Finance sector if they
are compliant with capital adequacy regulations.
●
Recommendation: Only companies with a Buy or Hold
recommendation by Equity Research.
●
Dividend yield: Companies with an estimated dividend yield
greater than the average for all Nordic companies analysed by
Equity Research.
THE OFFER IN BRIEF
● Certificate, the value of which is dependent on the development of
an equity basket of up to 20 equally weighted companies. The
constituents of the equity basket are decided by four selection
criteria and will be performed in January 2015, November 2015 and
November 2016.
●
●
Dividends are reinvested in the respective underlying company.
●
The Certificate is not capital guaranteed, which means that you as
an investor stands the risk of losing the invested capital.
●
The Certificate is aimed at institutional investors as well as SEB
Private Banking clients.
●
SEB will offer its clients the opportunity to buy and sell the
Certificate on a daily basis. Last day of trading is 9 June, 2017
●
Repayment of certificates held on the Final Valuation Day will be
made through redemption of the certificate.
●
Start Date 20 Februrary 2015. End Date 15 June 2017. The starting
value of the Certificate is 100 SEK. Minimum investment is 500
certificates.
●
Certificate Equity Research Dividend will have an annual
management fee of 1.2 per cent based on the market value of the
certificate.
The equity basket constituents are selected by using four
selection criteria decided by Equity Research. The purpose of the
selection criteria is to identify the up to 20 most attractive Nordic
companies with a high dividend yield based on the latest analysis and
estimates from Equity Research. The selection universe consists of all
companies included in the SEB Nordic All-Cap Index. In order for a
company to be included in the Index it has to be analysed by Equity
Research and listed on a stock exchange in Denmark, Finland, Norway or
Sweden. In January 2015 the SEB Nordic All-Cap index had 277
constituents.
The screening process begins by eliminating all companies with a
market capitalisation below 2 billion euro. Estimates from Equity
Research is then used to select all companies with an estimated
dividend yield greater than the average of all companies in SEB Nordic
All-Cap Index and a net debt/EBITDA less than 2.5. In the last step a
maximum of twenty companies with the highest estimated dividend
yield and a Buy or Hold recommendation from Equity Research are
selected as constituents for the equity basket.
During the duration of the certificate, the selection process with the four
criteria will be performed in January 2015, November 2015 and
November 2016. All companies in the basket are equally weighted after
the selection process.
The certificate is issued in SEK. The underlying shares are listed in
SEK, NOK, DKK and EUR, which means that the value of the
Certificate will also depend on the development of the SEK in
relation to the currencies in which the underlying security is
denominated.
Past performance is not indicative of future results, which may
vary. The value of investments and the income derived from
investments can go down as well as up. Future returns are not
guaranteed, and a loss of principal may occur.
COMPLETE TERMS
The complete terms for the Certificate are available in Swedish in the SEB Base Prospectus dated 9th of November 2014 and supplements dated 5th of August 2014, 4th of November 2014 and
10th of February 2015 for continuous issuance of Certificates and Warrants (in Swedish: Grundprospekt SEB AB Certifikat- och Warrantprogram, available at sebgroup.com/en/InvestorRelations), together with the Final Terms and Conditions of the Certificate (in Swedish: Slutliga Villkor, available upon request from your sales representative). The terms on which the
Certificate is issued shall be governed by and construed in accordance with Swedish law, without regard to or application of its conflict of law provisions.This document is a summary and
cannot disclose all of the information set forth in the Base Prospectus and Final Terms and conditions referred to above. In case of any inconsistency between this document and either of the
Base Prospectus and Final Terms and Conditions, the latter shall prevail.
Equities Research Dividend (C1502ERD)
Criteria for the equity basket Equity Research Dividend
The equity basket Equity Research Dividend is based on four selection criteria. All four criteria must be met for any stock to be eligible for the basket.
Please see below for a description of each criterion. The purpose of the criteria is to identify Nordic companies with a high dividend yield, strong
balance sheet and a Buy or Hold recommendation based on Equity Research analysis and estimates. The equity basket is selected based on estimates
as of 9 January 2015 and will be equally weighted.
The duration of the certificate will extend over three dividend seasons the selection process will be performed in January 2015, November 2015 and
November 2016 based on the four selection criteria together with the estimates and recommendations from Equity Research.
Criterion 1: Market capitalisation:
Only companies with a market capitalisation greater than 2 billion euro in order to ensure sufficient liquidity in the selected equities.
Criterion 2: Balance sheet strength:
Companies with a net debt/EBITDA below 2.5 for the current year based on estimates from Equity Research. Not applicable on
companies in the Finance sector if they are compliant with capital adequacy regulations.
Criterion 3: Recommendation:
Only companies with a Buy or Hold recommendation by Equity Research.
Criterion 4: Dividend yield:
Companies with an estimated dividend yield greater than the average for all Nordic companies analysed by Equity Research and
included in the SEB Nordic All-Cap Index.
The dividend proposals are presented in the fourth quarterly report released in January/February. The selection process will be performed in
November 2015 and November 2016 when Equity Research analysts has sufficient information regarding the current year to estimate the full year
result and the dividend for the companies.
The four selection criteria were applied on estimates and recommendation as of 9 January 2015. The selected equity basket contains 20 constituents
from Finland, Norway and Sweden. The equity basket has an estimated average dividend yield of 5.5% compared to 3.4% for the SEB Nordic All-Cap
Index. This is also higher than the estimated dividend yield of 2.5% for MSCI World and 3.4% for the baskets comparison index MSCI Nordic
Countries (source Bloomberg). Past performance is not indicative of future results, which may vary.
Equity Basket
9 Januari 2015
Country
Marine Harvest
Norway
Nokian Tyres
Finland
Tele2
Sweden
Nordea
Sweden
Fortum
Finland
Swedbank
Sweden
Elisa
Finland
TeliaSonera
Sweden
Statoil
Norway
Telenor
Norway
Gjensidige
Norway
Kesko
Finland
Sandvik
Sweden
Sampo
Finland
NCC
Sweden
Orion
Finland
Handelsbanken
Sweden
Kone
Finland
Metso
Finland
Industrivärden
Sweden
Average for the Equity Basket
Sector
Consumer Staples
Consumer Discretionary
Telecommunication Services
Financials
Utilities
Financials
Telecommunication Services
Telecommunication Services
Energy
Telecommunication Services
Financials
Consumer Staples
Industrials
Financials
Industrials
Health Care
Financials
Industrials
Industrials
Financials
Criteria for equity basket
Equity Research estimate for SEB All-Cap Index
February, 2015
Recommendation
Buy / Hold
Buy
Hold
Buy
Buy
Buy
Hold
Hold
Hold
Buy
Buy
Hold
Buy
Hold
Hold
Buy
Hold
Hold
Hold
Buy
Hold
Market Cap
(EURm)
4,750
2,836
4,406
37,465
15,582
21,375
3,643
23,107
45,853
26,064
6,856
3,079
9,733
21,840
2,849
3,860
23,582
19,418
3,672
6,508
Dividend Yield
2014 Est
7.9%
7.1%
6.3%
6.3%
6.1%
6.0%
6.0%
6.0%
5.5%
5.1%
5.1%
5.0%
4.9%
4.9%
4.9%
4.9%
4.8%
4.2%
4.2%
4.2%
5.5%
Net Debt/EBITDA
2014 Est
1.5
-0.2
1.5
0.0
1.2
0.0
1.9
1.3
0.4
1.3
0.0
-0.3
2.2
0.0
1.6
0.1
0.0
-1.0
0.9
0.0
Buy or Hold
Min 2.000
Min 3.4%
3.4%
Max 2.5
Equities Research Dividend (C1502ERD)
Company descriptions
Short description of the companies selected for the equity basket as of 9 January 2015. For more detailed information visit the company’s homepage.
MARINE HARVEST
Marine Harvest is a Norwegian based fish farming plant operator, raising
mainly Atlantic salmon. The company operates hatcheries, processes and
packages fish, as well as sells and markets the products. Marine Harvest
operates in Canada, Norway and Scotland. The company sells salmon
worldwide through its sales companies in Norway, Canada, the United
Kingdom and the United States. Source: Bloomberg / Homepage:
www.marineharvest.no
GJENSIDIGE FORSIKRING ASA
Gjensidige Forsikring ASA is a Norwegian insurance company. The company
offers general insurance products to private individuals and businesses in the
Nordic and Baltics region. Gjensidige Forsikring provides property insurance
and insurances for retail customers and enterprises.
Source: Bloomberg / Homepage: www.gjensidige.no
NOKIAN RENKAAT OYJ
Nokian Renkaat OYJ develops, manufactures, and markets summer and
winter tires for cars and bicycles and tires for heavy machinery. The company
primarily operates in the tire replacement market. Nokian also runs the Vianor
tire chain which owns retail outlets in Scandinavia and the Baltic states. The
company produces in Europe, the United States, and Asia.
Source: Bloomberg / Homepage: www.nokianrenkaat.fi
TELE2 AB
Tele2 AB is a telecommunications company. The company offers mobile
services, fixed broadband and telephony, data network services and content
services. Tele2 operates throughout Europe and Eurasia.
Source: Bloomberg / Homepage: www.tele2.com
SWEDBANK AB
Swedbank AB offers retail banking, asset management, financial, and other
services. The bank offers deposits, mortgage and other loans, credit and
smart cards, lease financing, installment loans on equipment and recreational
vehicles, securities trading, export and import services, insurance, and real
estate brokerage services.
Source: Bloomberg / Homepage: www.swedbank.se
NORDEA BANK AB
Nordea Bank AB is a financial services group that provides banking services,
financial solutions, and related advisory services. The group offers deposits,
credit, investment banking, securities trading, and insurance products to
private individuals, companies, institutions, and the public sector. Nordea
services the Scandinavian countries and the Baltic Sea region.
Source: Bloomberg / Homepage: www.nordea.se
FORTUM OYJ
Fortum OYJ provides a full range of energy related products and services. The
company's activities cover the generation, distribution, and sale of electricity
and heat and steam, as well as the operation of power plants, and energyrelated services. Fortum operates worldwide but mainly in Northern Europe.
Source: Bloomberg / Homepage: www.fortum.com
TELIASONERA AB
TeliaSonera AB offers telecommunication services. The company offers
mobile communications services as well as operates fixed networks
throughout Eurasia. Source: Bloomberg /Homepage: www.teliasonera.com
ELISA OYJ
Elisa OYJ provides telecommunication solutions. The company provides local,
long distance, mobile telephone, and data transmission services. Elisa also
operates as a service integrator by connecting customers' telecom solutions
and related IT (information technology) applications. The company sells it
services to private individuals and businesses in Finland.
Source: Bloomberg / Homepage: www.elisa.fi
SAMPO OYJ
Sampo OYJ offers multi-line insurance. The company offers life and pension
and property/casualty insurance. Source: Bloomberg/Homepage:
www.sampo.fi
February, 2015
METSO OYJ
Metso Corporation is a process performance provider, with customers in the
mining, construction and oil & gas industries. The company’s focus is on the
continuous development of intelligent solutions that improve sustainability
and profitability. Meto’s shares are listed on the Nasdaq OMX Helsinki Ltd.
The company employs around 16,000 professionals in 50 countries.
Source: Bloomberg / Homepage: www.metso.com
STATOIL ASA
Statoil ASA explores for, produces, transports, refines, and trades oil and
natural gas. The company explores for oil in Europe, Africa, the Middle East,
Asia, and the Americas. Source: Bloomberg / Homepage: www.statoil.com
TELENOR ASA
Telenor ASA researches, develops and provides telecommunications,
information and media services. The company offers telephone services, as
well as installs and operates complete IT (information technology) systems.
Telenor provides phone card, mobile telephone, satellite communications,
paging and mobile data services. Telenor operates in Norway and
internationally. Source: Bloomberg / Homepage: www.telenor.no
NCC AB
NCC AB is a construction company. The company plans, develops,
constructs, and renovates commercial buildings, schools, sports facilities, car
parks, roads, bridges, airports, and others. NCC also conducts surfacing work
for roads and produces asphalt mix, aggregates, and concrete and operates a
machinery unit. The company also sells investment properties. NCC is active
in northern Europe. Source: Bloomberg / Homepage: www.ncc.se
SANDVIK AB
Sandvik AB is a high-technology engineering group. The company develops,
manufactures, and markets tools for metalworking applications, machinery
and tools for rock excavation, stainless steel products, special alloys, and
resistance heating materials and process systems. Sandvik markets its
products to industrial companies throughout the world, and tools can also be
purchased online. Source: Bloomberg / Homepage: www.sandvik.se
KESKO OYJ
Kesko OYJ, through subsidiaries, operates wholesale and retail stores. The
company provides trading sector services with delivery sales and wholesale
services of hardware and builders supplies, home improvement trade, interior
decoration, home goods, animal feeds, sporting goods, chemicals and
machinery. Kesko OYJ also imports passenger cars and commercial vehicles.
Source: Bloomberg / Homepage: www.kesko.fi
SVENSKA HANDELSBANKEN AB
Svenska Handelsbanken AB offers deposits and commercial banking
services. The banks services include corporate finance, securities brokerage,
commodity trading, structured products, custody services and institutional
asset management services. Svenska Handelsbanken operates in Europe,
Asia, and the United States. Source: Bloomberg /Homepage:
www.handelsbanken.se
ORION OYJ
Orion OYJ develops and manufactures pharmaceuticals and diagnostic kits.
The company produces hormone therapies and drugs to treat central nervous
system disorders, cardiovascular diseases and urological disorders, and in
vitro diagnostic kits used in doctor's offices and small laboratories.
Source: Bloomberg / Homepage: www.orion.fi
KONE OYJ
Kone OYJ provides solutions for the installation, maintenance, and
modernization of elevators and escalators and the maintenance of automatic
building doors. Source: Bloomberg/ Homepage: www.kone.com
INDUSTRIVÄRDEN AB
Industrivärden AB is an investment company. The company's holdings
consist of a portfolio of listed Nordic industrial companies.
Source: Bloomberg Homepage: www.industrivarden.se
Equities Research Dividend (C1502ERD)
Historical simulation of the criteria for the equity basket
The graphs on the next page provides a historical simulation of how the equity basket would have developed if it the selection criteria would have
been applied on Equity Research’s estimates and recommendations as of 30 November 2009 to 2013. The graph shows the development excluding
fees for a 5-year to a 1-year holding period.
The selection criteria has been chosen in order to identify an equity basket with the possibility to generate an excess return in a sideway market
development with rise and falls. In the historical simulation the selection criteria has been applied on the selection universe SEB Nordic All-Cap Index
during a time period where the market had a positive development. The simulation shows that during a positive market development the selection
criteria have chosen an equity basket that does not outperform but follows the reference index MSCI Nordic Countries Gross. In 2014 when the
market development started moving sideways with rise and falls the equity basket showed a positive performance of 27.1% for the fifth year
(30/11/2013 to 30/11/2014) compared to the reference index MSCI Nordic Countries Gross that generated a positive return of 17.9% for the same
time period. Past performance is not indicative of future results, which may vary.
The table below shows the constituents of the equity baskets based on the estimates and recommendations from Equity Research as of 30 November
each year.
November 2009
Est dividend
November 2010
yield
Tele2
TeliaSonera
Wärtsilä
Sanoma
Fortum
Sampo
AstraZeneca
Elisa
Securitas
Skanska
Tryg
Nokia
Hennes & Mauritz
Telenor
Atlas Copco
G4S
Handelsbanken
Statoil
Swedish Match
SKF
6.6%
6.3%
6.0%
5.7%
5.5%
5.4%
5.3%
4.9%
4.9%
4.5%
4.4%
4.3%
4.0%
3.9%
3.4%
3.2%
3.2%
3.2%
3.1%
3.0%
Average
4.5%
February, 2015
Marine Harvest
Tele2
Elisa
Millicom
Orion
Sampo
Sanoma
Nokia
AstraZeneca
Statoil
TeliaSonera
Skanska
Fortum
DNB
Securitas
UPM
Handelsbanken
Hennes & Mauritz
Kesko
Telenor
Est dividend
November 2011
yield
10.4%
8.9%
8.2%
6.9%
6.7%
5.8%
5.8%
5.6%
5.5%
5.1%
5.0%
5.0%
4.9%
4.7%
4.3%
4.2%
4.0%
4.0%
4.0%
3.9%
5.7%
Tele2
TDC
Elisa
Orion
Swedbank
Millicom
Gjensidige
DNB
TeliaSonera
Sampo
AstraZeneca
Fortum
Skanska
Metso
Telenor
Electrolux
Stora Enso
Handelsbanken
Securitas
Nokian Tyres
Est dividend
yield
15.1%
9.5%
8.7%
7.9%
7.1%
7.1%
7.0%
7.0%
6.5%
6.2%
6.0%
5.9%
5.7%
5.6%
5.6%
5.6%
5.4%
5.1%
5.1%
4.9%
6.8%
November 2012
TDC
Tele2
Metso
Fred Olsen Energy
Gjensidige
UPM
TeliaSonera
Orion
Millicom
AstraZeneca
Stora Enso
Skanska
Orkla
Tryg
Swedbank
Sampo
Kesko
Ericsson
Nokian Tyres
Nordea
Est dividend
yield
11.8%
11.6%
7.7%
7.6%
7.0%
6.9%
6.7%
6.3%
6.3%
6.1%
6.0%
5.7%
5.4%
5.4%
5.2%
5.1%
4.9%
4.4%
4.4%
4.2%
6.4%
November 2013
Elisa
Orion
Swedbank
TeliaSonera
Tele2
Gjensidige
Orkla
Metso
Statoil
TGS-Nopec
Skanska
Nokian Tyres
AstraZeneca
Securitas
Nordea
Sampo
Kesko
Marine Harvest
Coloplast
Electrolux
Est dividend
yield
7.0%
6.7%
6.3%
6.0%
5.5%
5.4%
5.2%
5.1%
5.1%
5.0%
5.0%
4.9%
4.9%
4.8%
4.7%
4.5%
4.4%
4.2%
4.2%
4.1%
5.2%
Equities Research Dividend (C1502ERD)
30 November 2009 to 30 November 2014
Equity basket
Reference index = MSCI Nordic Countries Gross Return
Source: Bloomberg
30 November 2011 to 30 November 2014
Equity basket
Reference index = MSCI Nordic Countries Gross Return
February, 2015
Source: Bloomberg
Equities Research Dividend (C1502ERD)
CERTIFICATE
WHAT IS A CERTIFICATE?
A certificate is a security issued by a bank. The value of the certificate
is dependent on the value of a certain underlying asset. This specific
certificate provides exposure to a basket of equities. As an owner of
this certificate you as an investor do not have any direct ownership in
the underlying asset. The issuing bank (the issuer, in this case SEB)
will instead during the lifetime of the certificate value the certificate
according to the terms and conditions regulating the product. If you
keep the certificate to maturity the issuer will pay out the final value
in accordance with the terms and conditions. As an investor, you
therefore assume, in addition to the market risk in the product, also a
counterparty risk towards the issuer. Read more about issuer
counterparty risk under the section “Risks”.
EASY TO EXECUTE
Certificates are generally traded as easily as equities through a
custody account or similar. It can also be held in certain
“Kapitalförsäkringar” and “Investeringssparkonto” (in Sweden).
Certificates can be listed at a regulated market or traded on demand
through your SEB advisor.
This certificate can be bought and sold on a daily basis through your
SEB advisor at a price based on the prevailing prices of the
underlying equity basket. The certificate will be listed on the Nordic
Derivatives Exchange (NDX).
CERTIFICATES WITH DIFFERENT RISK LEVELS
Certificates are available in different versions with varying risk levels
depending on the underlying asset. You as an investor can choose
between different risk levels depending on your preferences. The
more risk-willing investor is able to invest in leveraged certificates.
This certificate does not have any leverage. The exposure to the
underlying asset is equal to the amount invested in the certificate.
EXPECTED RETURN
The return of the certificate will be dependent on the development of
the underlying equity basket, less the management fee. An index will
be calculated based on the development of the equity basket. The
index will increase in value if the underlying equities increase in value
and vice versa. The Equity Research Dividend follows the index,
which means that the value of the certificate will increase when the
index value increases and decrease when the index value decreases.
The value of the equity basket is dependent on each constituent’s
share price development as well as the development of the currency
in which each constituent is listed in against the Swedish Krona
(“SEK”). The equity basket will have a positive development if the
February, 2015
share price increases and also if the respective currency increases
against the SEK.
It is not possible to provide a reasonable expected return of the
certificate.
The certificate will not distribute any dividends. Potential dividends
from the underlying constituents will be reinvested in the distributing
company after deduction for relevant withholding tax.
IMPORTANT ASPECTS TO CONSIDER
The certificate is issued by Skandinaviska Enskilda Banken AB (publ)
(”SEB”) creating a counterparty risk towards SEB in addition to the
market risk connected with the certificate.
The value of the certificate is based on the price of the underlying
asset, in this case an equity basket. Investors in the certificate do not
have any direct ownership in the underlying asset.
Purchases and divestments of the certificate will be possible through
SEB on a daily basis until four banking days before the final valuation
date of the certificate 15 June, 2017.
An investment decision should be based on the investment
proposal’s own merits but also on how the investment fits into the
overall investment portfolio.
This certificate is aimed at someone who wants a focused exposure
towards Nordic companies with an estimated high dividend yield,
strong balance sheet and a Buy or Hold recommendation by Equity
Research.
TAXATION
This information is only relevant for Swedish physical tax subjects
who are liable for tax paid in Sweden. For other physical persons
other rules will be applicable. Certificates are liable for tax. Tax
regulations may change over time. An investor who is unsure of the
taxation of a certificate should consult with a professional tax
advisor. The tax consequences for each investor may differ according
to the specific situation and prerequisites.
CERTIFICATE COSTS
Equity Research Dividend will have an annual management fee of 1.2
per cent based on the market value of the certificate. The
management fee will be deducted from the value of the certificate on
a daily basis.
Commission is applicable throughout the lifetime of the certificate on
the full invested amount according to SEB’s price list at any given
point in time. No commission is charged at expiry of the certificate.
Equities Research Dividend (C1502ERD)
FACT SHEET
Product name
Short name
ISIN
Listing
Clearing
Currency
Start value
Start date
Last day of trading
End date
Final payment date
Equity Research Dividend
C1502ERD
SE0006726584
NDX
Euroclear Sweden
SEK
100 SEK
20 February, 2015
9 June, 2017
15 June, 2017
10 banking days after the end date
Minimum investment
500 certificates.
Return
The value of the certificate is based on the performance of the equity
basket Equity Research Dividend. Important factors affecting the
value of the equity basket are the performance of the share prices
and dividends for the underlying shares as well as currency
movements relating to the underlying currencies against the SEK.
Equity basket
The equity basket Equity Research Dividend consists of companies
listed on Nordic stock exchanges and is selected using four selection
criteria in order to identify the up to 20 most attractive companies
with the highest dividend yield based on Equity Research estimates
and recommendations.
The equity basket will be selected on three occasions during the
duration of the certificate. January 2015, November 2015 and
November 2016. The basket will be equally weighted after each
selection.
Final Valuation
Closing prices on the final valuation date is based on the average
closing price for each share for the last three valuation dates leading
up to the final valuation date adjusted for any transaction costs
and/or relevant taxes. The purpose of the average period valuation
methodology is to minimise risks for extreme volatility in share prices
affecting the value of the certificate. Currency rates are set on the
final valuation date.
Secondary market
The certificate will be listed on the Nordic Derivatives Exchange. SEB
will provide the possibility to buy or sell certificates throughout the
lifetime of the certificate up until four days prior to the final valuation
date. Please contact your SEB advisor for trading.
Market disruption event and other events
In the case of a market disruption event or other significant events,
SEB reserves the right to adjust the value of the certificate or make
other necessary changes to the terms and conditions, which SEB
deems fit in order to reflect the value of each constituent. A market
disruption event or other events is in this case defined as situations
where trading in the underlying constituent is disrupted or if there
are no official quotes available.
Early redemption
SEB will inform the investor in case of an early redemption of the
certificate. SEB has the right to call the Certificate for settlement at
SEB’s own discretion, provided that SEB will use such efforts as it
reasonably deems practical to preserve the value of, or provide
reasonable value for the Certificate. No commission is charged in
relation to an early redemption.
February, 2015
Commission
In accordance with SEB’s price list at any given time. No commission
at expiry.
Management fee
1.2 per cent on an annual basis, until the final valuation date, based
on the value of the certificate.
Product Group D
Product Group D includes financial instruments with increased
complexity or risk for economic loss. You may lose the entire invested
amount. Please find more information at www.seb.se, Spara &
Placera, Aktier & andra placeringar, “Regler för hantering av
värdepapper”.
Issuer
Skandinaviska Enskilda Banken AB (publ) is under the supervision of
the Swedish FSA (”Finansinspektionen”). Current long term rating of
the issuer is A+ (outlook negative) according to Standard & Poor’s, A1
(outlook stable) according to Moody’s and A+ (outlook stable)
according to Fitch. Ratings can be subject to change and it is the
responsibility of the investor to be up to date with the actual rating
levels.
Complete terms and conditions
The certificate is regulated by a prospectus specifying terms and
conditions of the certificate. For complete terms and conditions an
investor should read the prospectus for the certificate dated as of
July 9, 2014 including amendments as of August 5, 2014, November
4, 2014 and February 10, 2015. The prospectus is written in Swedish
and SEB will during the lifetime of the certificate communicate with
investors in Swedish and English. Terms and conditions as well as
any marketing are regulated by Swedish law and any disputes will be
handled by Stockholms tingsrätt. For more information about SEB
and its services, please see ”Information om SEB och dess
värdepapperstjänster” which you will find at www.seb.se, Spara &
Placera, Aktier & andra placeringar, ”Regler för hantering av
värdepapper”.
Reservations
SEB reserves the right to cancel all or parts of the certificate if an
event of economic, financial, political or other occurs and this,
according to SEB could have a detrimental effect on a successful
launch of the certificate.
Tax regulations for Swedish, physical tax subjects
As the return of the certificate is unknown and not predictable in any
way, the return cannot be considered as interest. The return should
be considered as capital gains and be taxed according to the
principles applicable for this return. The difference between invested
amount and received amount at sale of redemption should be
taxable as capital gains. Please see more on taxation at www.seb.se.
Complaints
Any complaints relating to this product should be put forward to the
department within SEB which has distributed the product. If
complaints still exist after this contact, please contact:
SEB Kundrelationer
Telephone: 0771-62 10 00
106 40 Stockholm
Additional information on
www.seb.se.
complaints
is
available
at
RISKS
Credit risk
The issuer of the certificate is SEB. As a holder of the certificate you therefore have credit risk on SEB. It is therefore important that the investor is able to
evaluate SEB’s likelihood of being able to serve its commitments according to the certificate during its lifetime. An investment in the certificate is not covered
by the governmental deposit guarantee.
Liquidity risk and secondary market
SEB will provide a secondary market in the certificate through trading with SEB. SEB has the right to stop sells and purchases of certificates under certain
periods e.g. due to poor liquidity in the underlying asset, at market disruptions or in the case of technical errors at SEB or EuroclearSweden AB. The certificate
will be listed at NDX but SEB will not act as a market maker on NDX.
Specific risk related to the underlying equity basket
A basket often consists of a limited number of shares, focused on the same sector or equities with similar risk profiles. This leads to a risk for higher volatility
than a broad index exposure at the same time as the risk towards the specific sectors and risk factors are higher in relation to a broad index exposure.
Please note that each of the companies included in the basket carry with them individual investment risks, whether relating to their own specific
circumstances, or to the sectors and geographic markets in which they operate. Before investing in the Certificate you are urged to review such risks, for
example by referring to the most recent investment research published by SEB or third party research providers on the companies concerned.
Currency risk
Please note that the investor is not secured against the currency risk resulting from the fact that the currency of the certificate does not correspond to the
currency of the assets linked to the performance of the certificate. The investment is therefore exposed to currency fluctuations and the value of the
certificate in SEK will increase or decrease relative to the values of the shares in the basket in their domestic currencies.
Market risk
Investments in financial instruments are always speculation providing the possibility to positive returns and gains but also create a risk for negative returns
and losses. When you buy a certificate you are exposed to a risk of the price development of the underlying asset. This is called market risk. If the price of the
underlying asset decreases you will have a negative return as a consequence of the decrease. This certificate does not have any leverage. The exposure to the
underlying asset is equal to the amount invested in the certificate.
No capital guarantee
The Certificate is not capital guaranteed and investors must be aware that they may lose all or a substantial part of their investment.
INFORMATION
General
Investments in financial instruments are always speculation providing the possibility to positive returns and gains but also creating a risk for negative returns
and losses.
The material in this document should not be seen as individual advisory but as a supportive tool for investment decision. SEB is not responsible for the
economic result of any decisions taken based on this document. SEB assumes no responsibility for the material describing all aspects of the investment.
Before any investment the investor is responsible for securing full understanding of the financial instrument and its characteristics and inherent risks. This is
important since the financial risks vary between different instruments.
SEB and other issuers issue many different certificates. Even if these products may have similar names, there could be significant differences. The investor
therefore needs to be aware that the possibility to compare different certificates, including the pricing component, may be difficult. To get a complete picture
of the offering, the investor should read the Base prospectus before investing in the certificate. If doubts still remain the investor should contact an advisor at
SEB.
The issuer of the certificate is SEB. This means that you as an investor will have a credit risk towards SEB. Repayment and potential returns are dependent on
SEB’s ability to complete its commitment on the final payment date. An investment in this certificate is not included in the governmental guarantee for
deposits. For more information on investor protection please refer to: ”Information om SEB och dess värdepapperstjänster”, www.seb.se, Spara & Placera,
Aktier & andra placeringar, Regler för hantering av värdepapper.
Advisory
Whether or not an investment in the certificate is suitable must always be evaluated based on the individual investor and its specific situation. This document
should not be seen as investment advice, financial advice or any other type of advice to investors. The investor therefore needs to evaluate the investment
based on its own perspective or if need be consult with its professional advisers. An investment in the certificate is only suitable for investors with relevant
experience and knowledge to make a subjective evaluation of the risks associated with the investment and it is also suitable only for investors whose
investment goal is in accordance with the specific investment, its exposure, tenor and other characteristics.
Taxation
This information is only relevant for Swedish physical tax subjects who are liable for tax paid in Sweden. For other physical persons other rule will be
applicable. Certificates are liable for tax. Tax regulations may change over time. An investor who is unsure of the taxation of a certificate should consult with a
professional tax advisor. The tax consequences for each investor may differ according to the specific situation and prerequisites.
Contact
Patrick Åhrén
SEB Merchant Banking
+468 506 233 86
[email protected]
February, 2015