SKAGEN Vekst A Nordic and Global Equity Fund

SKAGEN Vekst is an actively managed portfolio which combines undervalued Nordic and global companies. The fund is managed Fund Strategy by Søren Milo Christensen and Alexander Stensrud. Portfolio managers Søren Milo Christensen Alexander Stensrud Investment Strategy Equity strategy Nordic / Global

Nordic countries contain some of the world’s best-managed companies. Corporate governance Benchmark 50% MSCI AC World lndex and business practices are often market-leading while levels of protection for minority share- 50% MSCI Nordic IMI Index1 holders and transparency are generally very high. However, the Nordic investment universe is No. of holdings 40-60 relatively small and the fund’s broad mandate allows up to half of its assets to be invested in companies listed outside of the region. This global flexibility also helps to diversify portfolio Active Share2 87% risk away from the Nordic region. Market cap bias Mid / large

The fund is actively managed, consistent with SKAGEN’s investment philosophy. The portfolio Investment horizon 3-5 years+ managers are benchmark agnostic and their value-based strategy is to find attractively priced Portfolio turnover ratio3 33% companies with clearly identifiable catalysts for a revaluation. These businesses may be out Launch date 1 December 1993 of favour (often due to short-term market noise) but where changes, either internally or in the operating environment, will improve their fundamental outlook. Portfolio Managers The portfolio managers target companies with a margin of safety and possessing clear, cohe- rent and realistic triggers to drive a share price re-rating. This approach creates a portfolio tilted towards classic value stocks with a focus on capital return. Holdings must have both downside protection and upside potential based on their core earnings, cash flow growth and / or cost restructuring.

Portfolio Characteristics Søren Milo Christensen & Alexander Stensrud

The concentrated portfolio typically contains 40-60 holdings with the top 35 positions repre- senting 70-90 percent of assets. The fund has a bias towards mid / large cap companies with select high-conviction small cap ideas. The portfolio’s geographic exposure is typically balanced 50:50 between Nordic stocks and those listed outside the region. Undervalued

The fund managers also target diversification across different sectors in order to manage port- Sound / Temporary folio risk. The investment horizon is typically a minimum of 3-5 years but can be significantly improving ESG market dislocations longer as the portfolio managers attach greater value to fundamentals than short-term trends. practices Portfolio Company Characteristics Forgotten Turnaround cases or ignored

Misunderstood

* All information as at 31 December 2020 1 Benchmark prior to 1 January 2014 was 50% Oslo Stock Exchange Benchmark Index (OSEBX) / 50% MSCI All Country World Index. Bench- mark prior to 1 January 2010 was 100% OSEBX 2 Percentage of stocks in the portfolio that differs from the benchmark index 3 Portfolio turnover is calculated by taking either the total amount of new securities purchased or the amount of securities sold (whichever Painting: Einar Hein, Beach cyclists, 1894. This painting is manip- is less) over the previous 12-month period, divided by the total net asset value (NAV) of the fund ulated and belongs to The Art Museums of Skagen. , in his studio, 1875. This painting painting 1875. This studio, in his Johansen Viggo Ancher, Michael Skagen. of Museums to The Art belongs and manipulated is

Investment Philosophy SKAGEN’s investment philosophy is centred on active, value-based fund management; a combination we believe ensures the best results for our clients.

SKAGEN portfolio managers aim to outperform the broader stock market, enabled by unconstrained mandates and the freedom to invest with conviction in their best ideas. They are agile when selecting the companies with the greatest potential to create value and how it can be achieved. We also believe that engagement with companies is key to delivering sustainable risk-adjusted returns.

Value Active

All SKAGEN portfolio managers invest bottom-up by selecting the We invest in companies whose assets or earnings potential isn’t fully companies they believe will deliver the most value for clients. Invest- reflected in their share price and take a broad view of value creation. ment decisions are based on detailed analysis and deep knowledge Portfolio managers typically identify businesses with clear catalysts of companies, irrespective of their inclusion or position in an index. to correct their mispricing and those with an underappreciated ability We strive to beat the market and create portfolios that diverge from to compound value over time. conventional benchmarks to achieve this. • Agility: We often look beyond traditional metrics to uncover • Unconstrained: Unconstrained mandates give us the freedom to value hidden on company balance sheets or within revaluation search for the best opportunities from across the globe. They also triggers. Agile thinking can also lead us to businesses whose enable us to create diversified portfolios by geography, sector intrinsic earnings capacity or growth potential is underestimated and investment theme to control risks for our clients. by the market. • Conviction: We are high conviction investors who build concen- • Engagement: Releasing value can require engagement and patien- trated portfolios of our best ideas. We act quickly and decisively ce to maximise long-term results. We are active owners and when price targets are reached, or if an investment case deterio- engage with our portfolio companies on key business, financial, rates, and redeploy capital into more attractive ideas to optimise environmental, social and governance issues, using performance our funds’ returns. indicators to drive sustainable returns and revaluation over time. History

SKAGEN was founded in Stavanger, Norway in 1993 with the goal of generating long-term growth for our clients’ assets. From investing solely on behalf of friends and family, SKAGEN has grown into a leading Scandinavian fund manager with a broad European footprint. SKAGEN has been part of Storebrand Asset Mana- gement since 2017, but remains an independent investment boutique reporting to its own Board.

Our sole business is fund management, and we do all analysis ourselves. We dare to take unpopular choices, as long as they are in the clients’ best interests. We are aligned with our clients – when we do well, clients do well.

Our objective is to provide the best possible risk-adjusted returns, communica- tion and service.

www.skagenfunds.com , Artists on their way to Skagen, 1889. This painting painting 1889. This to Skagen, way their Thorvald Artists on Niss, Skagen.. of Museums to The Art belongs and manipulated is

DISCLAIMER

SKAGEN AS is a management company authorized by the Norwegian supervisory authority, Finanstilsynet, for the management of UCITS under the Norwegian Act on Securities Funds (Act of 25 November 2011 n.o. 11). SKAGEN AS has its registered office at Skagen 3, Torgterrassen, 4006 Stavanger, Norway. SKAGEN AS is part of the Storebrand Group and owned 100% by Storebrand Asset Management AS. Storebrand Group consists of all companies owned directly or indirectly by Storebrand ASA.

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 management fees. The return may become negative as a result of negative price developments.

United Kingdom Authorised by Finanstilsynet and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the FCA are available on request. Storebrand Asset Management AS has appointed SKAGEN UK Branch to act as Facility Agent in the UK. The offices are located at 48 Dover Street, London W1S 4FF, United Kingdom.

Germany SKAGEN Funds’ German Office is located in Barckhausstrasse 1, 60325 Frankfurt, Germany.

Switzerland ACOLIN Fund Services AG, Affolternstrasse 56, 8050 Zürich, Schweiz is the Legal Representative in Switzerland. Frankfurter Bankgesellschaft (Schweiz) AG, Börsenstrasse 16, 8001 Zürich, is the Paying Agent in Switzerland.

Luxembourg In Luxembourg, SKAGEN AS has appointed Svenska Handelsbanken as Paying Agent. Svenska Handelsbanken AB (publ), Luxembourg Branch, 15, Rue Bender, L-1229 Luxembourg.

Ireland In Ireland, SKAGEN AS has appointed Caceis Ireland Limited, One Custom House Plaza, International Financial Services Centre, Dublin, to act as Paying Agent for Ireland.

Belgium In Belgium, SKAGEN AS has appointed Caceis Belgium SA/NV to act as the Financial Service Provider for SKAGEN. Caceis Belgium SA/NV, Avenue du port 86C B320, 1000 Brussels Belgium.

France In France, SKAGEN AS has appointed Caceis Bank France, 1-3 Place Valhubert, 75013 Paris, as Centralising Paying Agent for France.

The art of common sense