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2014-05-27

SEB: Investment Outlook: Selective risk-taking in a challenging market

What can go wrong in a world of extremely low interest rates, decent economic
growth, expansionary central banks, stable stock markets and high risk
appetite? Many curves are undeniably pointing in the right direction and many
asset classes are showing optimsim. Meanwhile we have seen increased
geopolitical worries, and the share valuations in some places are
challenging.

How an investor should navigate in this environment is the topic of a theme
article in the May issue of SEB's quarterlyInvestment Outlook
report.

"There are no 'free lunches'. Higher expected returns are always connected
with higher risk-taking. Our conclusion is that selective risk-taking is
preferable. Some risks are worth taking, others not," saysAnn Grevelius
, Global Head of Investment Strategy at SEB.

Share valuations in many places are a bit strained. This is rarely the same as
a clear downside for the stock market, but it still means that upside
potential is limited. Short-term interest rates remain very low. Looking
ahead, bond yields will probably climb in response to stronger global growth.
High yield corporate bonds have worked well for a long time, but the yield
spreads between government bonds and corporate bonds have narrowed, and the
same applies to the return potential.

In the search for returns, the fixed income market has continued to evolve. In
our theme article "Challenging yield environment raises questions", we have
looked closely at the long-term prospects in the fixed income market and some
of the investment alternatives that may take the place of high yield bonds.

"Our overall assessment is that return expectations must become more nuanced.
Assets with high valuations remain attractive, but their high valuations
limit upside potential. Meanwhile the fixed income market offers few
alternatives for those who are seeking returns," saysHans Peterson
, Global Head of Asset Allocation at SEB.

Investment Outlook
gives readers an in-depth look at the investment climate and the prospects for
seven asset classes. It also provides tips and advice about current risks and
opportunities in the art of investing. The report can be read in its entirety
atwww.sebgroup.se.

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|For further information, please contact: Press contact: |
| |
|Hans Peterson, Global Head of Asset Allocation at SEB, |
|SEB Investment Management, +46 8 763 69 21 Claes Eliasson, Press&PR, SEB |
|hans.peterson@seb.se +46 76 396 53 19 |
| claes.eliasson@seb.se |
| |
|Ann Grevelius, Global Head of Investment Strategy, |
|SEB Private Banking, +46 8 763 63 04 |
|ann.grevelius@seb.se |
|SEB is a leading Nordic financial services group. As a relationship bank, SEB |
|in Sweden and the Baltic countries offers financial advice and a wide range |
|of other financial services. In Denmark, Finland, Norway and Germany the |
|bank's operations have a strong focus on corporate and investment banking |
|based on a full-service offering to corporate and institutional clients. The |
|international nature of SEB's business is reflected in its presence in some |
|20 countries worldwide. On March 31, 2014, the Group's total assets amounted |
|to SEK 2,651 billion while its assets under management totalled SEK 1,504 |
|billion. The Group has about 16,000 employees. Read more about SEB |
|atwww.sebgroup.com. |
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Press release (PDF)
http://hugin.info/1208/R/1788654/614579.pdf
Investment Outlook
http://hugin.info/1208/R/1788654/614581.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SEB via Globenewswire

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