Arctic Nordic Equities Monthly Report July 2020

FUND COMMENTS Arctic Nordic Equities (Class B) increased by 4.4% in July. Since inception in July 2012, the fund has returned 225.3% versus 224.4% for the fund’s benchmark (VINX Nordic Net). The largest positive contributors to fund performance in July were Schibsted, Inwido and Nobia. Schibsted’s main holding, Adevinta, announced the acquisition of eBay Classifieds for USD 9.2 bn in a cash and shares transaction creating leading positions in 20 countries. eBay Classified is complementary geographically and vertically and there will be synergies. Schibsted’s ownership will decrease from 59% to 33%. As a part of the transaction, Schibsted will acquire eBay’s Danish marketplaces, DBA and bilbasen. Last month, Schibsted also acquired Oikotie in Finland and has established leading online marketplaces in Norway, Sweden, Finland and Denmark. Adevinta and Schibsted both reported Q2 results ahead of expectations. Inwido delivered sales and earnings in Q2 above market estimates. Despite challenges from Covid-19, sales grew 1% organically and EBITA improved by 3% versus Q219. The main drivers were Denmark and e-commerce. Inwido has gradually restarted the temporarily closed plants in UK and Ireland. Order book increased by 12% to an all-time-high level. Nobia’s revenues and profits held up well compared to expectations in Q2 due to strong performance in the Nordics. In the UK, on the other hand, organic sales declined 58% y-o-y in Q2 as the company’s factories had to shut down, while its store network was closed for most of the quarter. However, performance was better towards the end of the quarter and Nobia’s British industry-peer Howden revealed strong sales performance into Q3. Moreover, Nobia announced further cost-cutting measures. The most negative contributors to fund performance last month were Lerøy Seafood, Novo Nordisk and Hagar. Lerøy retreated along with other fish farmers as the salmon price pulled back and the Norwegian krone continued to gain ground. The company’s Q2 trading update indicates good operational performance with growth in harvested volumes of 5% y-o-y, while wild catch volumes grew by 25%. However, volumes in Lerøy Aurora, usually the most?profitable segment, declined by 26% y-o-y. Novo declined due to headwinds in the US insulin market and a weaker USD. The impact of Covid-19 will be negative in Q2 as last quarter was positively affected by restocking. Moreover, uptake of new patients has been delayed due to lock-downs. NOK-denominated returns for Hagar suffered from a continued depreciation of the Icelandic krone. In addition, a weakening ISK is also likely to lead to a short-term margin headwind as imports will become more expensive. Year to data Novo Nordisk, LeoVegas and Schibsted have been the best contributors to the fund’s performance, while Scandic Hotels, International Petroleum Corporation and Maersk Drilling have been the largest detractors. We added Metso Outotec, a Finnish provider of mineral processing and aggregates equipment, and Rejlers, a Swedish technical consulting company to the portfolio. We exited the remaining shares in Scandic Hotels. We reduced our holdings in LeoVegas, Danske Bank, Inwido, Valmet and ABB. At the end of July, our portfolio was valued at 17.6 times earnings (12 months forward) and 2.0 times book value. Corresponding figures for the Nordic market were 20.9 and 2.5 respectively. Oslo, August 2020 Sindre Sørbye Ole E. Dahl Tore Mengshoel Thomas Rasmussen Portfolio Manager Portfolio Manager Portfolio Manager Analyst ABOUT THE FUND Arctic Nordic Equities is research driven and truly index-independent UCITS fund. The investment process focus on identi- fying companies which are considered to be value-creating over time at a reasonable price. The portfolio is constructed by bottom up stock picking. There are no constraints regarding country or industry in the Nordic region, and the goal is to create the best portfolio possible at any time. The funds benchmark is VINX Index calculated in Norwegian kroner. 30% 24.4 % 25%

20% 15.7 %15.7 % 15% 11.4 % 11.3 % 10.2 % 9.6 % 9.1 % 10% 6.8 % 4.4 % 5% 3.2 % 0.4 % 0% Month YTD 12m 36m p.a. 60m p.a. Incep. p.a. Arctic Nordic Equities Class B (6/7-12) Vinx Nordic Net NOK FUND COMPOSITION END OF MONTH

35% 29.3 % 30.2 % Real Estate 0.0% 30% Energy 2.0% 25% Industrials 25.7% 18.8 % Health Care 9.5% 20% Consumer Staples 11.6% 14.3 % 15% Materials 10.8% Information Technology 0.0% 10% 4.4 % Financials 9.8% 3.1 % 5% Consumer Discretionary 13.0% 0% Telecommunication Services 6.6% Sweden Norway Denmark Finland Iceland Cash Utilities 0.0%

10 largest positions 0% 5% 10% 15% 20% 25% 30% Novo Nordisk A/S 6.2 % Stora Enso Oyj 4.1 % Schibsted ASA 5.1 % Valmet Oyj 3.8 % Investor AB 4.9 % Huhtamaki Oyj 3.5 % Leroy Seafood Group AS 4.2 % Elekta AB 3.3 % Bravida Holding AB 4.1 % Dustin Group AB 3.2 %

FUND PERFORMANCE AND RISK FIGURES —CLASS B NOK (FORMER CLASS A)

3 6 Since Month months months YTD 1 year 3 years 5 years launch Fund 4.4 % 11.7 % -1.0 % 0.4 % 10.2 % 22.0 % 58.5 % 225.3 % Benchmark 3.2 % 7.8 % 7.5 % 11.4 % 24.4 % 37.8 % 54.9 % 224.3 % Difference 1.2 % 3.9 % -8.5 % -11.1 % -14.2 % -15.8 % 3.6 % 0.9 % Norway OSEBX, NOK 3.9 % 6.6 % -9.6 % -11.3 % -3.8 % 12.8 % 29.3 % 103.3 % Euro Stoxx 600, EUR -1.0 % 5.5 % -11.9 % -13.0 % -5.5 % 2.1 % 3.0 % 74.3 % S&P 500 TR, USD 5.6 % 12.9 % 2.4 % 2.4 % 12.0 % 40.5 % 72.2 % 185.2 % MSCI AC World, LC 4.0 % 11.5 % -1.0 % -1.6 % 6.2 % 23.8 % 42.9 % 126.4 %

5 top contribution Fund Fund Contri- 5 bottom contribution Fund Fund Contri- year to date weight return bution year to date weight return bution Novo Nordisk A/S-B 6.8 % 19.5 % 1.3 % Scandic Hotels Group 1.8 % -52.4 % -2.0 % Leovegas Ab 1.9 % 54.8 % 1.2 % International Petrol 1.0 % -63.2 % -2.0 % Schibsted Asa-B Shs 3.6 % 18.8 % 1.1 % Drilling Co Of 1972/ 0.5 % -65.7 % -1.1 % Xxl Asa 1.5 % 51.9 % 1.1 % Aker Bp Asa 2.1 % -38.4 % -0.8 % Valmet Oyj 3.8 % 25.1 % 1.0 % Dustin Group Ab 3.0 % -21.8 % -0.7 %

Standard Sharpe Tracking Information Active Portfolio characteristics Deviation Ratio Error Ratio Share Arctic Nordic Equities 14.7 % 0.4 8.9 % -0.5 79.6 Benchmark 10.3 % 1.0 *) Based on 36 months rolling performance Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2020 1.38 % -4.86 % -14.60 % 9.08 % 5.27 % 1.65 % 4.39 % 0.36 % 2019 2.15 % 6.12 % -0.02 % 1.65 % -4.18 % 4.20 % -0.84 % -0.73 % 1.84 % 4.84 % 1.15 % 2.45 % 19.79 % 2018 -2.53 % 1.66 % -0.25 % 4.41 % 2.30 % -2.03 % 3.74 % 3.57 % -1.64 % -8.83 % 0.85 % -4.10 % -3.62 % 2017 0.23 % -0.25 % 1.17 % 6.76 % 3.42 % 0.01 % -0.05 % -0.67 % 2.69 % 0.94 % 0.32 % 1.91 % 17.52 % 2016 -6.72 % 2.22 % 2.15 % 1.28 % 4.22 % -4.21 % 4.90 % -1.00 % -0.83 % 0.75 % 0.76 % 5.21 % 8.31 % 2015 3.24 % 2.41 % 3.63 % 0.79 % 1.19 % -2.31 % 4.78 % -1.79 % -0.47 % 2.83 % 4.07 % 2.73 % 22.91 % 2014 5.95 % 0.62 % -2.31 % 0.37 % 6.69 % 2.58 % 0.29 % -2.48 % 0.62 % 3.06 % 4.26 % 3.28 % 24.94 % 2013 6.30 % 3.56 % -0.93 % -1.80 % 4.37 % -0.62 % 4.62 % 2.87 % 4.82 % 0.57 % 5.22 % -0.68 % 31.69 % 275% 250% 225% 200% 175% 150% 125% 100% 75% 50% 25% 0% 07/12 07/13 07/14 07/15 07/16 07/17 07/18 07/19 07/20 Arctic Nordic Equities Class B (Start 06.07.12) Vinx Nordic NOK

Disclaimer: Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on market developments, the fund manager’s skill, the fund’s risk profile and subscription and management fees. The return may become negative as a result of negative price developments. Arctic Asset Management AS seeks to the best of its ability to ensure that all information given in this report is correct, however, makes reservations regarding possible errors and omissions. Statements in the report reflect the portfolio managers’ view- point at a given time, and this viewpoint may be changed without notice. The report should not be perceived as an offer or recommendation to buy or sell financial instruments. Arctic Asset Management AS does not assume responsibility for direct or indirect loss or expenses incurred through use or understanding of the report. Employees of Arctic Asset Management AS may be owners of securities issued by companies that are either referred to in this rapport or are part of the fund's portfolio.