For professional investors only*

For professional investors only* Fund Update Special European Covered Bonds Fund Update Special

European Covered Bonds

The month of February has highlighted the globality of our world and how quickly an issue in one country can jeopardize business in other areas. Governments around the globe underestimatedThe month of Februarythe transmission has highlighted of the the globality of our world and how quickly an issue in one country can Covid 19 and were slow to react appropriately. After several months of positivejeopardize returns business in equit inies other, the realityareas. ofGovernments around the globe underestimated the transmission of the Advertising materialthe situation for professional - and its uncertainty investors only* - have caught up financial markets, Covidleading 19 to and a werechaotic slow month to react for appropriatemany ly. After several months of positive returns in equities, the reality of investments. With credit spreads widening, the hunt for safety has pushedthe situation rates into - andthe abyss.its uncertainty Yield levels - have caught up financial markets, leading to a chaotic month for many decreasing again, with in mind the recent Fed intervention and followinginvestments expectations. With of the credit ECB spreads to intervene widening,, the hunt for safety has pushed rates into the abyss. Yield levels the asset allocation dilemma is further amplified: to which extent are we readydecreasing to take again, on risk with to achieve in mind retu therns? recent Fed intervention and following expectations of the ECB to intervene, the asset allocation dilemma is further amplified: to which extent are we ready to take on risk to achieve returns? FundHow did coveredUpdate bonds react in the market – distress Special? Covered bonds offered Editionprotection during the market selloff. When EUR high yield and investment grade credit widened by appx.How 75bps did covered and 25bps bonds respectively react in, the market distress? Covered bonds offered protection during the market overall covered bond market widened by only 2bps over February. Peripheralselloff. covered When EUR bonds high underperformed yield and investment, grade credit widened by appx. 75bps and 25bps respectively, the especially the weaker names of this segment. Yet this remained limited tooverall an overall covered 3-5bps bond widening. market widened by only 2bps over February. Peripheral covered bonds underperformed, especially the weaker names of this segment. Yet this remained limited to an overall 3-5bps widening. FebruaryHow 2020 did Nordea’s covered bond solutions perform? Our covered bond solutions provided the resilience we value strongly in these disrupted times. Our portfolio with long durationHow, the did Nordea Nordea’s 1 – Europeancovered bond Covered solutions perform? Our covered bond solutions provided the resilience we Bond Fund, benefited from the downward development in rates to avalue larger strongly extent in than these its disrupted low duration times . Our portfolio with long duration, the Nordea 1 – European Covered Europeanalternatives, the Covered Nordea 1 – Low Duration Bonds European Covered Bond Fund Bondand the Fund, Nordea benefited 1 – European from thCoverede downward development in rates to a larger extent than its low duration Bond Opportunities Fund. In relative terms, our strategy preserved its strongalternative alphas, thegeneration Nordea 1thanks – Low Durationto our European Covered Bond Fund and the Nordea 1 – European Covered diversified allocation: while peripheral countries detracted, we benefited Bondfrom ourOpportunities safer overweights, Fund. In especially relative terms, our strategy preserved its strong alpha generation thanks to our the large holdings in Danish DKK- denominated covered bonds. diversified allocation: while peripheral countries detracted, we benefited from our safer overweights, especially the large holdings in Danish DKK- denominated covered bonds. Resilient performance of the Nordea 1 - European Covered The monthResilient of Februaryperformance has of the highlighted Nordea 1 - European the globality Covered Bond of Fund (BI- EUR) YTD Bond Fund (BI-EUR) YTD our world and how quickly an issue in one country can Resilient performance of the Nordea 1 - European Covered Bond Fund (BI-EUR) YTD jeopardize business in other areas. Governments around the globe underestimated the transmission of the Covid 19 and were slow to react appropriately. After several months of positive returns in equities, the reality of the situation - and its uncertainty - have caught up financial markets, leading to a chaotic month for many investments. With credit spreads widening, the hunt for safety has pushed rates into the abyss. Yield levels decreasing again, with in mind the recent Fed intervention and following expectations of the ECB to intervene, the asset allocation dilemma is further amplified: to which

extent are we ready to take on risk to achieve returns?

Source - © 2020 Morningstar, Inc. All Rights Reserved as at: 06.03.2020. End Funds database. Period under consideration: 31.12.2019 – 05.03.2020. Performance in EUR. The performance represented is historical; past performance is not a reliable SourceSource -- © 20202020 Morningstar,Morningstar, Inc. Inc. All All Rights Rights Reserved Reserved as at: as 06.03.2020. at: 06.03 .20European20. European Open End Open Funds End database. Funds database. Period under consideration: indicator of future results and investors may not recover the full amount invested. The value of shares can greatly fluctuate as a 31Period.12.201 under9 –consideration: 05.03.2020 .31.12.2019 Performance – 05.03.2020. in EUR. Performance The performance in EUR. The represented performance is represented historical; is past performance is not a reliable result of the sub-fund’s investment policy and cannot be ensured, you could lose some or all of your invested money. Comparison How did covered bonds react in the market indicatorhistorical; pastof future performance results is and not ainvestors reliable indicator may not of futurerecover results the andfull investorsamount mayinvested. not recover The thevalue full of shares can greatly fluctuate as a with other financial products or benchmarks is only meant for indicative purposes. amount invested. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy distress? resultand cannot of the be sub ensured,-fund’s you investment could lose some policy or alland of cannotyour invested be ensured, money. Comparisonyou could losewith othersome financial or all of your invested money. Comparison withproducts other or financialbenchmarks products is only meant or benchmarks for indicative is purposes. only meant for indicative purposes. Covered bonds offered protection during the market selloff. When EUR high yield and investment grade credit widened And what now…? by appx. 75bps and 25bps respectively, the overall covered At the beginning of the year,1 the struggle to find yield in the bond market*Investing widened for their own by account only – according2bps over to MiFID February. definition Peripheral fixed income market was already a major concern for investors. 1 covered bonds underperformed, especially the weaker names *Investing for their own account – according to MiFID definition of this segment. Yet this remained limited to an overall 3-5bps With market uncertainty, bringing in parallel a renewed widening. downward pressure on rates, lowering the quality of the allocation to achieve higher return is a difficult bet to take. Staying true to our safe investment offering, we do not believe How did Nordea’s covered bond solutions investors should turn away from safe assets. While yields are perform? depressed on an absolute basis, relative value opportunities are just as present in this market as in a market with higher yields: Our covered bond solutions provided the resilience we value and this represents a significant share of the performance we strongly in these disrupted times. Our portfolio with long deliver in our covered bond strategies! duration, the Nordea 1 – European Covered Bond Fund, benefited from the downward development in rates to a larger Covered bonds may very well be one of your safest investments, extent than its low duration alternatives, the Nordea 1 – Low and our active approach has provided on the long run a Duration European Covered Bond Fund and the Nordea 1 – compelling risk-return profile for our investors. Looking for European Covered Bond Opportunities Fund. In relative terms, protection when markets go sour? Our strategy is not only our strategy preserved its strong alpha generation thanks to resilient, but also offers an interesting diversification to EUR our diversified allocation: while peripheral countries detracted, high yield and investment grade credit – the last weeks are we benefited from our safer overweights, especially the large only a taste of the long-term benefits of a structural allocation holdings in Danish DKK- denominated covered bonds. to covered bonds.

*investing for their own account – according to MiFID definition

And what now…? At the beginning of the year, the struggle to find yield in the fixed income market was already a major concern for investors. With market uncertainty, bringing in parallel a renewed downward pressure on rates, lowering the quality of the allocation to achieve higher return is a difficult bet to take. Staying true to our safe investment offering, we do not believe investors should turn away from safe assets. While yields are depressed on an absolute basis, relative value opportunities are just as present in this market as in a market with higher yields: and this represents a significant share of the performance we deliver in our covered bond strategies! Covered bonds may very well be one of your safest investments, and our active approach has provided on the long run a compelling risk-return profile for our investors. Looking for protection when markets go sour? Our strategy is not only resilient, but also offers an interesting diversification to EUR high yield and investment grade

credit – the last weeks are only a taste of the long-term benefits of a structural allocation to covered bonds.

Our investment strategy is the common ground of our covered And what now…? At the beginning of the year, the struggle to find yield in the fixed income market was already bond solutions: three portfolios that adapt the exposures of the a major concern for investors. With market uncertainty, bringing in parallel a renewed downward pressure on strategy, providing solutions with tailored duration and spread rates, lowering the quality of the allocation to achieve higher return is a difficult bet to take. Staying true to our risks. Managing covered bonds in a very active and dynamic safe investment offering, we do not believe investors should turn away from safe assets. While yields are depressed on an absolute basis, relative value opportunities are just as present in this market as in a market way is our expertise, and this is an added value to a safe with higher yields: and this represents a significant share of the performance we deliver in our covered bond allocation that we offer to our clients. strategies!

Covered bonds may very well be one of your safest investments, and our active approach has provided on the Since Cumulative Performances (%) YTD February 1 year long run a compelling risk-return profile for our investors. Looking for protection when markets go sour? Our Inception strategy is not only resilient, but also offers an interesting diversification to EUR high yield and investment grade Nordea 1 – European Covered Bond 1 2.57 0.53 6.92 46.99 credit – the last weeks are only a taste of the long-term benefits of a structural allocation to covered bonds. Fund (BI-EUR) Benchmark1 1.77 0.45 3.98 27.83 Alpha1 0.80 0.08 2.94 19.16 Nordea 1 - Low Duration European 0.65 -0.15 2.67 2.73 Covered Bond Fund (BI-EUR)2 Nordea 1 - European Covered Bond 1.45 -0.25 6.00 6.48 Opportunities Fund (BI-EUR)3

Source: Nordea Investment Funds S.A. As of 05.03.2020. Benchmark: Iboxx EUR Covered Bond Index. Inception dates refers to: 1) 30-01-2012 2) 24-10-2017 3) 29-01-2019. The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy and cannot be ensured, you could lose some or all of your invested money.

Correlation Matrix Time Period: 05/02/2012 to 29/02/2020 Currency: EUR Source Data: Total, Weekly Return

Source - © 2020 Morningstar, Inc. All1 Rights2 Reserved3 as4 at: 06.03.2020. European Open End Funds database. Performance in EUR. Past performance1 Nordea 1 – European is notCovered a Bondreliable BI EUR indicator1.00 of- future- result- s and investors may not recover the full amount invested. Comparison with other2 EAA financialFund EUR Corporate products Bond or benchmarks0.66 1.00 is only- meant- for indicative purposes. 3 EAA Fund EUR Government Bond 0.80 0.69 1.00 - Source - © 2020 Morningstar, Inc. All Rights Reserved as at: 06.03.2020. European Open End Funds database. Performance in EUR. Past performance is not a reliable indicator of future resultOurs4 andEAA investmentinvestors Fund EUR Highmay Yieldnot recover Bondstrategy the full isamount the0.10 invested. common0.68 Comparison0.20 ground with1.00 of our covered bond solutions: three portfolios that adapt the other financial products or benchmarks is only meant for indicative purposes. Source - © 2020 Morningstar, Inc. All Rights Reserved as at: 06.03.2020. European Open End Funds database. exposuresPerformance in EUR. Past of performance the strategy, is not a reliable indicator providing of future results solutions and investors may withnot tailored duration and spread risks. Managing covered bonds Our investment strategy is the common groundrecover of the our full amountcovered invested. bond Comparison solutions: with other three financial portfolios products or benchmarksthat adapt is only the meant for indicative purposes. exposures of the strategy, providing solutionsin with a verytailored active duration and spread dynamic risks. Managing way is covered our expertise, bonds and this is an added value to a safe allocation that we offer Source (unless otherwise stated): Nordea Investment Funds S.A. Period under consideration (unless otherwise stated): 30.01.2012 – 05.03.2020. Performance calculated NAV to NAV (net of fees and Luxembourg taxes) in the currency of in a very active and dynamic way is our expertise,tothe respectiveour and clients.share this class, is gross an incomeadded and dividendsvalue toreinvested, a safe excluding allocation initial and exitthat charges we as offer per 06.03.2020. Initial and exit charges could affect the value of the performance.The performance represented is historical; past to our clients. performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy and cannot be ensured, you could lose some or all of your invested money. If the currency of the respective share class differs from the currency of the country where the investor resides the represented performance might vary due to currency fluctuations. The sub-funds mentioned are part of Nordea 1, SICAV, an open-ended Luxembourg-based investment company (Société d’Investissement à Capital Variable), validly formed and existing in accordance with the laws of Luxembourg and with European Council Directive 2009/65/EC of 13 July 2009. This document is advertising materialSince and does not disclose all relevant information concerning the presented sub-funds. Any investment decision in the sub-funds should Since Cumulative Performances be made on the basis of the current prospectusYTD and theFebruary Key Investor Information1 year Document (KIID), which are available, along with the current annual and semi-annual reports, electronically in English and in the local language of the marketCumula where the mentionedtive Performances SICAV is authorised for distribution, without charge upon requestInception from Nordea Investment Funds S.A., 562, rue de Neudorf, P.O. BoxYTD 782, L-2017 Luxembourg,February from the local representatives 1 year or information agents, or from our distributors. Investments in derivative and foreign exchange transactions may be subject to significant fluctuations which may affect the value of an investment.Investments in Emerging Markets involve a higher Inception Nordea 1 - European Covered Bond Fund (BI-EUR)element1 of risk. The value of shares2. can57 greatly% fluctuate0.53 as %a result of the6.92 sub-fund’s% investment46.99 policy% and cannot be ensured. Investments in equity and debt instruments issued by banks could bear the risk of being subject to the bail-in mechanism (meaning that equity and debt instruments could be written down in order to ensure1 that most unsecured creditors of an institution bear appropriate losses) as foreseen in EU Directive 2014/59/EU. 1 ForNordea further details 1of investment- European risks associated Covered with these sub-funds, Bond please Fund refer to the (B relevantI-EUR) Key Investor Information Document (KIID), available2. as 57described% above. Nordea0.53 Investment% Funds S.A. 6.has 92decided% to bear 46.99% Benchmark the cost for research, i.e. such cost 1.7is covered7% by existing0.45 fee% arrangements3.98 %(Management-/Administration-Fee). 27.83% Nordea Investment Funds S.A. only publishes product-related information and does not make any investment 1 recommendations. Published1 by Nordea Investment Funds S.A., 562, rue de Neudorf, P.O. Box 782, L-2017 Luxembourg, which is authorized by the Commission de Surveillance du Secteur Financier in Luxembourg. Further information can Alpha beBenchmark obtained from your financial advisor.0.80 He/she% can advise0.08 you% independently2.94 %of Nordea Investment19.16% Funds S.A.Please note that all sub funds and share classes1.7 might7% not be available0.45 in your% country of jurisdiction.3.98 Additional% 27.83% information for investors2 in Switzerland: The Swiss Representative and Paying Agent is BNP Paribas Securities Services, Paris, Succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich, Switzerland. Additional information for investors Nordea 1 - Low Duration European Covered Bondin Germany: Fund (B The1I- InformationEUR) Agent in0. Germany65% is Société-0.15% Générale S.A. Frankfurt2.67% Branch, Neue2.73 Mainzer% Straße 46-50, DE-60311 Frankfurt am Main, Germany. A hard copy of the above-mentioned fund documentation is also available here. Additional information for investors in Austria: The Information and Paying Agent in Austria is Erste Bank der österreichischen Sparkassen AG, Am Belvedere 1, AT-1100 Vienna, Austria. Additional information for investors in the Alpha 3 0.80% 0.08% 2.94% 19.16% Nordea 1 - European Covered Bond OpportunitiesNetherlands: Fund (B NordeaI-EUR) 1, SICAV is a Luxembourg1.45% Undertaking-0.25% for Collective6.00 Investment% in Transferable6.48% Securities (UCITS) registered in the in the register kept by the AFM, and as such is allowed to offer its shares in the Netherlands. The AFM register can be consulted via www.afm.nl/register. Additional information for investors in : With the authorisation2 of the AMF the shares of the sub-funds of Nordea 1, SICAV may be distributed in France. CentralisingNordea Correspondent 1 - Low in France Duration is CACEIS Bank, located European at 1-3, place Valhubert, Covered FR-75206 ParisBond cedex 13,Fund France. Investors (BI-EUR) are advised to conduct thorough0.65 %research before- making0.15% any investment decision.2.67 Additional% 2.73% Source: Nordea Investment Funds S.A. As of 05.03.2020.information Benchmark: for investors Iboxx in EUR : Covered The Financial Bond Service Index. Agent Inception in Belgium dates is BNP refers Paribas to: Securities 130-01 -Services S.C.A., Brussels Branch, Rue de Loxum, 25, BE-1000-Brussels, Belgium. A hard copy of the above-mentioned fund documentation is available upon demand free of charge. Additional information for investors in : Nordea 1, SICAV is duly registered in the CNMV official registry of foreign collective investment institutions (entry no. 340) as 2 3 2012 24-10-2017 29-01-2019. The performance representedauthorisedNordea to isbe marketedhistorical; 1 - Europeanto the past public performancein Spain. TheCovered Depositary is not of theaBond reliableSICAV’s assets Opportunit indicator is, J.P. Morgan of futureBank iesLuxembourg Fund S.A. In (B Spain,I- anyEUR) investment must be made1. through45% the authorised- distributors0.25% and on the basis6.00 of the information% 6.48% results and investors͵ may not recover the full amountcontained invested. in the mandatory The va luedocumentation of shares that can must greatlybe received fluctuate from the SICAV’s as a authorised result of distributor the sub prior- to any subscription. The Representative Agent is Allfunds Bank S.A.U., C/ de los Padres Dominicos, 7, ES-28050 Madrid, Spain. A complete list of the authorised distributors is available in the CNMV’s webpage (www.cnmv.es). Additional information for investors in Portugal: The Management Company of the SICAV, Nordea Investment Funds S.A., and the fund’s investment policy and cannot be ensured, you Depositary could loseof the SICAV’ssome assets,or all J.P. of Morgan your Bankinvested Luxembourg money. S.A., are validly formed and existing in accordance with the laws of Luxembourg and authorized by the Commission de Surveillance du Secteur Financier in Luxembourg. Our distributor in Portugal is BEST - Banco Electrónico de Serviço Total, S.A., duly incorporated under the laws of Portugal and registered with the CMVM as a financial intermediary.Additional information for investors in Italy: Fund 1 Source:documentation Nordea as listed above Investmentis also available in Italy Funds from the distributors S.A. and As on theof website 05.03 www.nordea.it..2020. The Benchmark: updated list of distribution Iboxx agents inEUR Italy, grouped Covered by homogenous Bond category, Index. is available Inception from the distributors dates themselves refers to: 30-01- or from the Paying Agents: State Street Bank International GmbH – Succursale Italia, BNP Paribas Securities Services - Succursale di Milano, Allfunds Bank S.A.U. Succursale di Milano, Société Générale Securities Services S.p.A., Banca 2 201Sella Holding2 24 S.p.A,-10 Banca-2017 Monte dei 29Paschi-01 di Siena-2019. S.p.A., CACEIS The Bank performance S.A – Succursale Italia and represented on the website www.nordea.it. is Anyhistorical; requests for additional past information performance should be sent to the distributors.is not Beforea reliable investing, please indicator read of future the prospectus and the KIID carefully. We recommend that you read the most recent annual financial statement in order to be better informed about the fund’s investment policy.The prospectus and KIID for the sub-funds have been published with Consob. For the risk͵ profile of the mentioned sub-funds, please refer to the fund prospectus.Additional information for investors in the : The Facilities Agent is Financial Express Limited 2nd Floor, resultsGolden House and30 Great investors Pulteney Street W1F may 9NN, London, not United recover Kingdom. Additionalthe full information amount for investors2 invested. in Ireland: The TheFacilities va Agentlue is Maples of Fundshares Services (Ireland)can Limited,greatly 32 Molesworth fluctuate Street, D02 as Y512 aDublin result 2, of the sub- Ireland. Additional information for investors in Sweden: The Paying Agent is Nordea Bank Abp, Swedish Branch, Smålandsgatan 17, SE-105 71 Stockholm, Sweden. Additional information for investors in Denmark: The Representative fund’sand Sub-Paying investment Agent is Nordea Bank policy Abp, Danish Branch,and Grønjordsvejcannot 10, DK-2300be ensured, Copenhagen S, Denmark.you couldA hard copy oflose the above-mentioned some or fund all documentation of your is available invested here. Additional money. information for investors in Norway: The Paying Agent is Nordea Bank Abp, Norwegian Branch, Essendrops gate 7, Postboks 1166 Sentrum, NO-0107 Oslo, Norway. The Representative Agent is Nordea Funds Ltd, Norwegian Branch, Essendrops gate 7, Postboks 1166 Sentrum, NO-0107 Oslo, Norway. Additional information for investors in Finland: The Paying Agent is Nordea Bank Abp, Satamaradankatu 5, FI-00020, Helsinki, Finland. The Representative Agent is Nordea Funds Ltd, Satamaradankatu 5, FI- 00020, Helsinki, Finland. Additional information for investors in Latvia: The Representative Agent is Luminor Bank AS, 62 Skanstes iela 12, LV-1013 Riga, Latvia. Additional information for investors in Estonia: The Representative Agent in Estonia is Luminor Bank AS, Liivalaia 45, EE-10145 Tallinn, Estonia. Additional information for investors in Lithuania: The Representative Agent in Lithuania is Luminor Bank AB, Konstitucijos pr. 21 A, LT-03601 Vilnius, Lithuania. Shareholders must evaluate possible investment risks and take this into consideration when making investment decisions. Information for investors in Brazil: This is a strictly privileged and confidential document for the purposes of a potential investment in foreign securities on a one-on-one basis with potential investors with a pre-existing relationship with Nordea Investment Funds S.A. This document contains information addressed only to a specific individual and is not intended for distribution to, or use by, any other person. This document (i) is provided for informational purposes only, (ii) should not be construed in any manner as any solicitation or offer to buy or sell any securities or any related financial instruments, (iii) should not be construed in any manner as a public offer of any securities or any related financial instruments, and (iv) and will be addressed to a potential investor with restrict access of information. Nordea 1, SICAV have not been, and will not be, registered with the Brazilian Securities Commission (Comissão de Valores Mobiliários - CVM), and must not be offered or sold in Brazil except in circumstances which do not constitute a public offering or distribution under Brazilian laws and regulations. Any public offering, placement or distribution, as defined under Brazilian laws and regulations, of securities in Brazil, is not legal without prior registration under Law No. 6,385 of 2 December 7, 1976, as amended. Documents relating to the offering of the Nordea 1, SICAV, as well as information contained therein, must not be supplied to the general public in Brazil (as the offering of the Nordea 1, SICAV is not a public offering of securities in Brazil) or used in connection with any offer for subscription or sale of the Nordea 1, SICAV to the general public in Brazil. Investors within Brazil should consult with their own counsel as to the applicability of these laws and regulations or any exemption there from. Source (unless otherwise stated): Nordea Investment Funds S.A. Unless otherwise stated, all views expressed are those of Nordea Investment Funds S.A. This document may not be reproduced or circulated without prior permission and must not be passed to private investors. This document contains information only intended for professional investors and financial advisers and is not intended for general publication. Reference to companies or other investments mentioned within this document should not be construed as a recommendation to the investor to buy or sell the same but is included for the purpose of illustration.