Arctic Norwegian Equities Monthly Report March 2020

FUND COMMENTS March was a weak month in world equity markets, driven by the coronavirus and measures to contain its spread. Arcc Norwegian Equies had -16.1% return in March (I-class) versus -15.4% for the OSEFX benchmark index. Year to date the fund has returned -28.3% compared to -24.4% for the OSEFX. Since incepon the fund has returned 84.7% versus 68.5% for the benchmark index. In March posive aribuon for the Fund versus the benchmark index came from overweight in NRC Group, and underweights in Bank Norwegian and . The fund’s largest overweight NRC Group did beer than the benchmark index in March. NRC did a capital raise in February and is thus well capitalized. Corona has so far not impacted the company to a significant extent. NRC has year to date improved the order intake for its Swedish oper- aon. The Norwegian financial aid package announced in late Match contained money for railway maintenance. The Bank Norwegian share fell more than the benchmark index in March, the Fund holds no shares in Bank Norwe- gian. Rising unemployment causes concern about loan losses and credit quality. The growth outlook for consumer lending ought to be negave. The fund owns no shares in Subsea 7, the fund sold its Subsea 7 shares in the 2nd half of 2019 and early 2020. A considerable fall in oil prices has depressed the outlook for oil service companies. There are few new oil & gas projects which are profitable at current prices, which gives risk to Subsea 7’s order backlog. In March negave aribuon for the Fund versus the benchmark index came from an overweight in AkerBP, and underweights in and Orkla. The fund has a small overweight in AkerBP, but this is compensated by under- weight in other energy shares. Despite falling oil prices AkerBP is relavely well posioned. AkerBP has an USD 4 billion undrawn credit facility, and considerable flexibility in its investment program and dividend. The company has low producon costs on the Norwegian connental shelf, e.g. at the Johan Sverdrup oil field. The fund is under- weight in a couple shares considered “safe havens” on the Exchange, like Telenor and Orkla. These shares fell less than the benchmark index in March. Orkla has reported somewhat increased sales in certain prod- uct categories, and sees some lower input costs. Telenor has experienced increased traffic in its Nordic networks. The weaker Norwegian krone contributes to higher results for Telenor, but also higher measured in NOK. The fund has not done major changes or sector rotaons in March. We have picked shares in companies we consid- er aracve investments on down-days for the stock market. The fund is considering some new posions, but has so far not made major new investments. Year to date the strongest aributors include overweight in Crayon Group, and underweights in Subsea 7 and Bank Norwegian. The weakest aributors include overweight in NRC Group, and underweights in Telenor and Systems. Oslo, April 2020 Albert ColleƩ Alexander Larstedt Lager CIO Porolio Manager

ABOUT THE FUND The investment objecve is to achieve long-term capital appreciaon primarily through equity investments in companies listed or traded on markets in . The Fund may be considered as a focused equity fund – a “stock picker”. Our investment team has long experience in challenging the market consensus and invests only in companies and sectors we have knowledge of and understand. We seek to achieve the investment objecve through acve porolio management based on competence and analysis of companies, sectors, markets and the macro-economic outlook. This results in selecve company investments. There are no limitaons of which sectors within the Norwegian stock market the Fund may invest in. The porolio composion may deviate significantly from the reference index. The Fund’s reference index is the Mutual Fund Index (OSEFX) which is a total return index. The Fund is a UCITS fund.

10% 3.1 % 6.8 % 5.7 % 0.8 % 1.7 % 0% -1.2 % -10%

-20% -16.1 %-15.4 % -17.0 % -19.8 % -30% -24.4 % -28.3 % -40% Month YTD 12m 36m p.a. 60m p.a. Incep. p.a. Arctic Norwegian Equities Class I (15/11-10) OSEFX FUND COMPOSITION END OF MONTH

Real Estate Real Estate Energy Energy Industrials Industrials Health Care Health Care Consumer Staples Consumer Staples Materials Materials IT IT Financials Financials Consumer Discr. Consumer Discr. Telecom Telecom Utilities Utilities 0% 5% 10% 15% 20% 25% -10% -5% 0% 5% 10%

10 largest positions 5 largest overweights +/- 5 largest underweights +/- DNB ASA 8.3 % ASA 4.6 % NRC Group ASA 6.1 % Equinor ASA -4.5 % NRC Group ASA 6.1 % ASA 4.2 % Atea 4.0 % Tomra Systems -3.8 % ASA 6.0 % P/F 3.9 % Crayon Group Holding A 3.4 % Telenor -3.4 % Telenor ASA 5.5 % Grieg ASA 3.8 % 3.2 % ASA -2.1 % Atea ASA 4.9 % Salmar ASA 3.8 % SpareBank 1 Nord-Norg 2.1 % Forsikring AS -2.0 %

FUND PERFORMANCE AND RISK FIGURES —CLASS I NOK

3 6 Since Month months months YTD 1 year 3 years 5 years launch Fund -16.1 % -28.3 % -21.2 % -28.3 % -19.8 % -3.6 % 8.8 % 84.7 % Benchmark -15.4 % -24.4 % -19.7 % -24.4 % -17.0 % 2.5 % 16.4 % 68.5 % Difference -0.7 % -3.9 % -1.5 % -3.9 % -2.8 % -6.1 % -7.5 % 16.2 % Vinx Nordic Net, NOK -2.2 % -2.7 % 4.8 % -2.7 % 10.4 % 26.3 % 14.2 % 70.7 % Euro Stoxx 600, EUR -14.5 % -22.6 % -17.8 % -22.6 % -13.1 % -8.7 % -7.4 % 53.2 % S&P 500 TR, USD -12.4 % -19.6 % -12.3 % -19.6 % -7.0 % 16.1 % 38.5 % 162.4 % MSCI AC World, LC -12.8 % -20.0 % -13.8 % -20.0 % -10.0 % 5.7 % 17.6 % 89.5 %

5 top contribut. Fund Fund Contri- 5 bottom contribut. Fund Fund Contri- year to date weight return bution year to date weight return bution Arundo Analytics Inc 1.0 % 19.7 % 0.18 % Nrc Group Asa 5.1 % -53.2 % -3.05 % Nel Asa 0.7 % 19.8 % 0.13 % Aker Bp Asa 3.9 % -53.0 % -2.50 % Kahoot! As 0.5 % -7.6 % 0.13 % Dnb Asa 8.4 % -28.8 % -2.48 % Orkla Asa 2.4 % 0.1 % 0.07 % Mowi Asa 7.5 % -29.7 % -2.15 % Subsea 7 Sa 0.1 % 0.8 % 0.02 % Tgs Nopec Geophysica 3.0 % -55.6 % -1.60 % Standard Sharpe Tracking Information Portfolio characteristics Deviation Ratio Error Ratio Arctic Norwegian Equities 9.0 % 0.9 3.1 % -0.5 Benchmark 9.6 % 1.1 *) Based on 36 months rolling performance

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2020 -2.83 % -12.08 % -16.06 % -28.29 % 2019 3.69 % 2.82 % -0.34 % 2.07 % -2.03 % 1.07 % 0.26 % -0.31 % 0.77 % 3.12 % 3.12 % 3.31 % 18.83 % 2018 -0.59 % 0.34 % -1.79 % 6.33 % 2.10 % 0.83 % 1.38 % 2.75 % 2.32 % -5.34 % -3.07 % -5.98 % -1.40 % 2017 -0.10 % -0.87 % -2.12 % 1.68 % 0.72 % -1.70 % 4.13 % 1.08 % 5.18 % 2.28 % -0.87 % 1.53 % 11.22 % 2016 -8.62 % 2.65 % 1.28 % 3.19 % 2.45 % -2.94 % 1.65 % 1.75 % 2.42 % 3.82 % 1.80 % 2.48 % 11.85 % 2015 4.11 % 0.12 % 1.53 % 3.45 % 0.94 % -1.80 % 1.84 % -5.80 % -2.34 % 3.05 % 2.87 % 2.23 % 10.19 % 2014 0.79 % 2.67 % -0.32 % 0.71 % 3.31 % 2.66 % 0.43 % 0.49 % 0.97 % -1.01 % -0.22 % 2.03 % 13.15 % 2013 4.40 % 5.27 % -0.66 % 2.24 % 3.70 % -3.49 % 3.93 % 0.44 % 1.46 % 6.51 % 4.29 % -0.03 % 31.37 % 2012 5.26 % 9.20 % 0.42 % 0.97 % -7.84 % 4.40 % 1.93 % 2.59 % 2.13 % -2.45 % -1.75 % 1.67 % 16.68 % 2011 -2.89 % 2.19 % -0.17 % -0.06 % -3.43 % -2.25 % -1.08 % -8.59 % -9.19 % 9.65 % -2.28 % 2.43 % -15.78 %

200.0 % Disclaimer: Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on market developments, the fund man- ager’s skill, the fund’s risk profile and subscripon and management fees. 150.0 % The return may become negave as a result of negave price develop- ments. Arcc Fund Management AS seeks to the best of its ability to ensure 100.0 % that all informaon given in this report is correct, however, makes reserva- ons regarding possible errors and omissions. Statements in the report 50.0 % reflect the porolio managers’ viewpoint at a given me, and this view- point may be changed without noce. The report should not be perceived 0.0 % as an offer or recommendaon to buy or sell financial instruments. Arcc Fund Management AS does not assume responsibility for direct or indirect loss or expenses incurred through use or understanding of the report. -50.0 % Employees of Arcc Fund Management AS may be owners of securies 11/10 11/11 11/12 11/13 11/14 11/15 11/16 11/17 11/18 11/19 issued by companies that are either referred to in this rapport or are part of Arctic Norwegian Equities Class I OSEFX the fund's porolio.