SEB Asset Selection Fund Marks 20 Years With 11% Year-to-Date Gain in 2026
SEB Asset Selection Fund reached its 20th anniversary in October 2026, posting an 11% return year-to-date through September. Over the past 12 months, the trend-following strategy gained roughly 16%, driven primarily by equity and interest rate trades. Notable gains came from long positions in South Korean and Japanese stock markets, along with short bets on Japanese government bonds, U.S. two-year Treasuries, and German Schatz futures.
The fund, which once held 1 billion euros in assets as the world's first UCITS-compliant trend-following strategy, underwent significant changes after portfolio managers Mikael Nilsson and Otto Francke took control in 2021. The management team upgraded the fund's signal-generation engine and expanded its trading universe to 61 liquid assets, including commodities. To adapt to faster market cycles, the strategy now places heavier weight on recent price shifts near new highs or lows, making it more responsive during shifting market conditions.
Investors will monitor how the fund navigates sudden market reversals, which remain the primary risk for trend-following strategies. Previous rapid shifts in market direction, such as tariff volatility in April 2025 that caused an 11.9% monthly loss and a carry-trade unwind in August 2024, demonstrate the strategy's vulnerability to unexpected policy reversals despite its strong multi-year track record.
Key points
- SEB Asset Selection Fund returned approximately 11% year-to-date through September 2026, marking its fourth-best year in its 20-year history.
- The strategy gained about 16% over the 12 months leading up to October 2026, boosted by gains in equities and fixed income.
- Portfolio managers upgraded the fund's systematic model in 2021, expanding its universe to 61 liquid assets and increasing sensitivity to recent price movements.
- Abrupt market reversals caused major drawdowns, including an 11.9% drop in April 2025 during U.S. tariff policy shifts.
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How did SEB Asset Selection Fund perform in 2026?
SEB Asset Selection Fund gained approximately 11% year-to-date through September 2026, putting it on track for the fourth-best performance in its 20-year history. Over the trailing 12-month period, the fund returned roughly 16%.
What changes were made to the SEB Asset Selection strategy in 2021?
New portfolio managers replaced the underlying signal engine, expanded the trading universe to 61 liquid assets including commodities, and adjusted lookback periods to place greater weight on recent price developments near market highs or lows.
What challenges do trend-following funds face during sharp market reversals?
Trend-following models can suffer losses during sudden market direction shifts before establishing new trend signals, as seen when the fund lost about 11.9% in April 2025 following sudden changes in U.S. tariff announcements.