In its latest house view, SEB writes that it is increasing its overweight to equities to 65 percent. This is said to have been driven by expectations that the Federal Reserve's latest policy shift will enable further monetary easing from global central banks.

At the same time, it chose to reduce its exposure to high-yield bonds due to limited upside.

SEB believes that the Fed's policy change signals a stronger global growth outlook, with a more balanced outlook for the US and international economies. SEB estimates that the risk of a US recession is only 20 percent, supported by robust consumption and a resilient labor market.

Furthermore, it believes that equities are expected to outperform bonds over the next 6-12 months. Within regional allocations, it increased its position in the US to overweight at the expense of emerging markets excluding Asia, citing political risks and weak momentum.

"We remain positive on Nordic equities and expect further interest rate cuts and improved growth," says Carl Hammer, global head of asset allocation at SEB Asset Management.

Furthermore, it has decided to reduce its overweight in information technology to neutral and upgrade consumer staples to neutral, as it expects a broader uptrend for equities.