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Discretionary portfolio management service

If you choose discretionary portfolio management service, your funds will be invested into securities portfolio designed by our investment professionals, constructed using cost-efficient and diversified exchange traded funds (ETFs) available on the market. All investment decisions are made by the bank.  

Robo-Advisor will guide you and select a suitable portfolio, based on your objectives, preferences, and financial situation. Please make sure to provide us with an accurate information, as your responses are the basis for selecting the right portfolio for you. 

You can set up a regular investment schedule, make one-off investment, or withdraw part or all of your investments using SEB mobile app in your phone.    

We believe that investing is a long-term exercise. You should not be investing any money that you may need in a short period of time, or even next year. The longer you can keep your investments, the lower probability of the loss on your initial investment. The higher expected return corresponds to higher risk to lose initial investment or part of it.  

Selling your investments prematurely or on short notice increases the risk of an investment loss. Therefore, please make sure you always have adequate additional savings in case of unexpected life events. 

Key features of Robo-Advisor portfolios

We recommend investing through an investment account. Before using the Robo-advisor, you should familiarize yourself with tax related information and take it into the account.  You should open an investment account in the Internet bank, select an investment account to make payments in Robo-advisor, ensure that sufficient investment amount is available in your investment account on each investment day and declare contributions and withdrawals from your investment account on an annual basis.  

If you decide to use a current account as a cash account for investment, you are required to declare all transactions in securities (including transactions made by the bank under a portfolio management agreement), as well as any gains in the annual tax declaration and pay income tax. We recommend using the SEB tax tool when declaring investments. 

  • Investment risk is diversified by using broad asset class and geography index ETFs. 
  • Investment portfolios will be periodically reviewed and rebalanced to maintain the selected risk level for each customer. 
  • Invest from as little as 50 euros into portfolio which can include up to 10 ETFs. 
  • Pricing tailored for frequent small investments – only portfolio management fee indicated in the pricelist is applied. There are no brokerage fees, as well as no trading or portfolio rebalancing fees.  
  • ETF ongoing fee is charged by the fund management company and reflected in the ETF unit price.  
  • Our portfolios do not distribute dividends.  
  • Robo-Advisor portfolios invest in the ETFs that invest in companies which consider ESG (Environmental, Social or Governance-related) requirements. 
  • Trade orders are executed once a week on Tuesdays, and trade settlements take in addition two business days. The withdrawal of the funds from investment portfolio might take up to eight business days, so please take this into consideration.  

Accounts used for investments and the execution of orders

When using the Robo-Advisor’s ETF portfolio management service, you can select  a current account or investment account for making contributions to the portfolio. We will additionally open dedicated portfolio’s investment account and securities accounts, which you will not be able to use on your own, but which are necessary for the provision of ETF portfolio management service.  

When making an investment, the funds are first transferred from your chosen current or investment account to the portfolio’s investment account. Securities purchase transactions are settled from the portfolio’s investment account. The securities included in the portfolio are keptin the portfolio’s securities account. 

When making a withdrawal from the portfolio, an appropriate number of securities are sold, and securities sale transactions are settled from the portfolio’s investment account. Afterwards the funds received from the sale of the securities are transferred to your chosen current or investment account.  

The funds required for the coverage of monthly fee portfolio management are first transferred from your chosen current or investment account to the portfolio’s investment account, and then deducted from the portfolio’s investment account.

Tax payment

When making investments you have to take into consideration tax obligations submit obligatory data for your tax declaration and if needed pay tax. If you select portfolio management service, we will open portfolio investment account.  Nevertheless you should declare investment account in your tax declaration and provide data on money transfers in and out from account to get investment account tax benefits.  

If you choose a current account for investing 

Transfer of funds between current account and portfolio’s investment account are considered as contributions or withdrawals from the portfolio’s investment account.  To comply with the requirements, you have to declare transfers in and out each year in your tax declaration. In such cases when  withdrawals are made from the portfolio’s investment account exceed the contributions made to it, a capital gain tax needs to be paid. 

To postpone the payment of tax, we suggest using an investment account as the primary source of contributions and follow requirements on declaration of transaction.

If you choose an investment account for investing 

In this case the transfers of funds between investment  account and portfolio investments account are not considered as contributions or withdrawals. When making a withdrawal from the portfolio or terminating the service, the funds are transferred to your selected account, please make sure that you select the initial investment account which was used for cash transfers in. In such case you will not yet obliged to declare income and pay tax. Nevertheless, you have an obligation to declare transfer in and out of the investment account each year.  If you do not declare required data in tax declaration you might lose investment account tax benefits and might have an obligation to pay tax when you take money from portfolio, or when bank makes changes in the portfolio instruments, and you might have to pay income tax from each profitable transaction.  

Please note that if you use an investment account for making investments, the tax must be paid only when the amount of money withdrawn from the investment account exceeds the amount paid into it. To comply with the requirements, you have to declare transfers in and out each year in your tax declaration.  

Portfolios

Defensive strategy

A low-risk portfolio. Value of the portfolio can fluctuate by 7.91% per annum1. According to the strategy, the portfolio will be invested within following ranges:  

  • 19% – 25% in equities of companies registered in the European Union, the US and Asia 

  • 75% – 81% in European Union, the US, and emerging markets’ bonds issued by governments and corporations 


Example of costs and charges 

Balanced strategy

A medium-risk portfolio. Value of the portfolio can fluctuate by 14.03% per annum1. According to the strategy, the portfolio will be invested within following ranges: 

  • 42% – 50% in equities of companies registered in the European Union, the US and Asia 

  • 50% – 58% in European Union, the US, and emerging markets’ bonds issued by governments and corporations 


Example of costs and charges 

Growth strategy

A medium-risk portfolio. Value of the portfolio can fluctuate by 19.08% per annum1. According to the strategy, the portfolio will be invested within following ranges: 

  • 65% – 75% in equities of companies registered in the European Union, the US and Asia 

  • 25% – 35% in European Union, the US, and emerging markets’ bonds issued by governments and corporations 


Example of costs and charges 
 

Maximum Growth strategy

A high-risk portfolio. Value of the portfolio can fluctuate by 25.60% per annum1. According to the strategy, the portfolio will be investing: 

  • 100% in equities of companies registered in the European Union, the US and Asia 


Example of costs and charges 


1Calculated as value-at-risk, with 95% statistical confidence, based on 10 years of historical data.