Arctic Norwegian Equities Monthly Report May 2020 FUND COMMENTS May was a strong month for the fund and the Oslo Stock Exchange. Arctic Norwegian Equities gave 6.8% return (I- class) versus 3.4% for the OSEFX benchmark index. Year to date the fund has returned -16.8% compared to -13.8% for the OSEFX. Since inception the fund has returned 114% versus 92% for the benchmark index. In May positive attribution for the Fund versus the benchmark index came from overweights in NRC Group, Crayon and Atea. The stock of NRC did well after its quarterly results. The company sees stronger margins for its Norwe- gian rail business and is finally having stronger results and order intake in Sweden. At the same time, the company sees some Coronavirus delays in its Norwegian environment business. In Finland the company is delivering well on its light railprojects, but have reduced activity in its maintenance business. Crayon announced results for the 1st quarter with a strong growth in sales, up 24 percent year-over-year. The company did well its Nordic core markets. Crayon sees solid development going forward, and more M&A opportunities due to Covid-19. Atea announced re- sults for the 1st quarter which were below market expectations. Atea entered the year with a low orderbook but had strong growth in new orders and backlog into Q2. Atea sees increased demand for home office solutions, e.g. with the company’s public sector customers. The share rose on good traction into the 2nd quarter. In May negative attribution for the Fund versus the benchmark index came from underweights in Bank Norwegian, Adevinta and Schibsted A-class. The fund holds no shares in the consumer bank Bank Norwegian. The stock rose on higher risk appetite in the market, and lower worry over household indebtedness. The fund is underweight in Adevinta. The Adevinta share dipped around last month-end, so its strong performance in May was partly catch-up. The gradual reopening of Europe is good news for Adevinta, particularly for its Leboncoin.fr online classifieds site. The fund is underweight in Schibsted A-class stocks, but we do have a position in the B-class shares. Schibsted an- nounced results for the 1st quarter which were somewhat below consensus expectations. Still the share rose on e.g. higher activity on its online classifieds sites in Norway and Sweden, and relatively robust development for newspaper subscriptions. Schibsted it also the largest owner in Adevinta and benefitted from this in May. In May the fund increased its position in Bakkafrost and Gjensidige Forsikring and bought shares in Tomra in a share sale from its largest owner Latour. The fund participated in the IPO of Pexip as an anchor investor and added to Scatec Solar through an issue of new shares. The fund sold some shares in e.g. Telenor and Equinor. Year to date the strongest attributors include overweight in Crayon Group and underweight in Subsea 7. The weakest attribu- tors include overweight in NRC Group and underweight in Tomra Systems. Oslo, June 2020 Albert Collett Alexander Larstedt Lager CIO Portfolio Manager ABOUT THE FUND The investment objective is to achieve long-term capital appreciation primarily through equity investments in companies listed ro traded on markets in Norway. 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 objective through active portfolio management based on competence and analysis of companies, sectors, marketsand the macro-economic outlook. This results in selective company investments. There are no limitations of which sectors within the Norwegian stock market the Fund may invest in. The portfolio composition may deviate significantly from the reference index. The Fund’s reference index is the Oslo Stock Exchange Mutual Fund Index (OSEFX) which is a total return index. The Fund is a UCITS fund. 10% 6.8 % 8.3 % 7.1 % 4.4 % 3.9 % 4.9 % 5% 3.4 % 3.0 % 0% -5% -4.7 % -10% -6.9 % -15% -13.8 % -20% -16.8 % 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 8.5 % Gjensidige Forsikring ASA 4.8 % NRC Group ASA 6.7 % Equinor ASA -4.9 % NRC Group ASA 6.7 % Yara International ASA 4.8 % Atea 4.0 % Tomra Systems -2.4 % Mowi ASA 6.0 % Bakkafrost P/F 4.8 % Crayon Group Holding AS 3.8 % Telenor -2.4 % Telenor ASA 5.3 % Salmar ASA 4.1 % Vaccibody AS 3.0 % Entra ASA -2.0 % Atea ASA 5.0 % Equinor ASA 3.9 % SpareBank 1 Nord-Norge 2.2 % Schibsted ASA CL A -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 6.8 % -2.6 % -14.0 % -16.8 % -6.9 % 9.2 % 20.9 % 114.3 % Benchmark 3.4 % -3.6 % -11.0 % -13.8 % -4.7 % 13.8 % 26.8 % 92.0 % Difference 3.4 % 1.0 % -3.1 % -3.0 % -2.2 % -4.5 % -5.9 % 22.3 % Vinx Nordic Net, NOK 2.9 % 6.9 % 6.8 % 6.3 % 24.0 % 27.4 % 23.4 % 92.3 % Euro Stoxx 600, EUR 3.4 % -5.9 % -12.9 % -14.7 % -3.0 % -2.8 % 0.2 % 68.7 % S&P 500 TR, USD 4.8 % 3.6 % -2.1 % -5.0 % 12.8 % 34.0 % 60.0 % 210.1 % MSCI AC World, LC 4.2 % 0.2 % -5.5 % -8.0 % 6.0 % 18.1 % 32.1 % 117.9 % 5 top contribut. Fund Fund Contri- 5 bottom contribut. Fund Fund Contri- year to date weight return bution year to date weight return bution Vaccibody As 2.9 % 56.7 % 0.99 % Aker Bp Asa 3.2 % -44.0 % -2.27 % Crayon Group Holding 3.2 % 22.1 % 0.78 % Nrc Group Asa 5.6 % -44.4 % -2.22 % Kahoot! As 0.7 % 34.9 % 0.52 % Dnb Asa 8.3 % -19.4 % -1.72 % Nel Asa 0.9 % 73.1 % 0.51 % Mowi Asa 7.0 % -18.9 % -1.51 % Europris Asa 0.3 % 27.0 % 0.15 % Tgs Nopec Geophysica 2.2 % -46.9 % -1.48 % Standard Sharpe Tracking Information Portfolio characteristics Deviation Ratio Error Ratio Arctic Norwegian Equities 16.2 % 0.1 4.1 % -0.3 Benchmark 15.6 % 0.2 *) 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 % 8.63 % 6.80 % -16.79 % 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 subscription and management fees. 150.0 % The return may become negative as a result of negative price develop- ments. Arctic Fund Management AS seeks to the best of its ability to ensure 100.0 % that all information given in this report is correct, however, makes reserva- tions regarding possible errors and omissions. Statements in the report 50.0 % reflect the portfolio managers’ viewpoint at a given time, and this view- point may be changed without notice. The report should not be perceived 0.0 % as an offer or recommendation to buy or sell financial instruments. Arctic 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 Arctic Fund Management AS may be owners of securities 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 portfolio.