Mandatum Life Nordic Equity

29 February 2020 Investment Manager's Review Investment Strategy ML Nordic Equity declined by –7.80% in February. The Nordic equity markets showed better resistance to the negative reaction caused Mandatum Life Nordic Equity investment basket invests by the coronavirus than the rest of Europe and the US. Due to the crisis, macroeconomic confidence indicators dropped quickly to their in Nordic equities and equity-related securities. The financial crisis levels. The number of profit warnings has been low so far. Norway plunged most, with performing better largely investment basket may use fixed income investments thanks to and other health care companies (e.g. Coloplast, ). In addition to health care, banks were also relatively only for cash management. The investment basket has strong. The Norwegian krone has depreciated against the euro, dipping to an all-time low. The market share of Novo Nordisk’s GLP-1 a benchmark index to which the return of the investment drugs grew strongly in the US. Analysts’ views on the new competitive solutions resulting from Tomra’s R&D (sorting, recycling) were basket is compared. The benchmark index is STOXX confirmed, and the company’s share did not react negatively in the current market situation. reported a very strong order intake, Nordic NTR. The long-term objective of the investment and the company proposes a dividend increase (DKK 7.93 vs. 7.44). DNB also exceeded expectations (EPS NOK 3.60 vs. 3.18), with basket is to outperform the development of the very low credit losses. Volvo’s share has been weighed down by a possible cartel fine, with the company’s 25% market share in Europe benchmark index. The benchmark index can be raising the fine’s proportion relative to competitors. Equinor (ex. Statoil) has dipped, driven by the price of oil. outperformed by investing in selected companies based on a fundamental analysis. The proportion of equity- related securities in the investment basket of the total value of the investment basket may vary between 75% and 125%.

Performance Fund Facts Name Mandatum Life Nordic Equity 115 Inception Date 04 November 2014 110 Investment Manager Mandatum Life 105 Investment Services 100 Ltd.

95 Base Currency EUR Benchmark Index DKXG Index 90 Management Fee 1.20% 85 02/18 04/18 06/18 08/18 10/18 12/18 02/19 04/19 06/19 08/19 10/19 12/19 02/20

Mandatum Life Nordic Equity Benchmark Index

30% 22.96% 22.22% 20% 14.56% 15.02% 9.54% 10% 6.05% 2.73% 0% -0.73% -10% -7.37% -20% -14.60%

-30% 2015 2016 2017 2018 2019

Mandatum Life Nordic Equity Benchmark Index

Return % 1 M 3 M 1 Y 3 Y p.a. Since Inception p.a. Strategy -7.80 -5.08 3.95 -1.17 3.89 Benchmark -5.76 -2.47 5.67 4.21 5.85 Mandatum Life Nordic Equity

Portfolio Statistics Risk-Return Comparison

AUM (EUR million) Return Since Inception (%) 20 40.11 22.53 15 Risk 10 Beta Information Ratio Tracking Error

1.13 -0.61 2.79% 5

Holdings breakdown Return, 1 Year 0

Weight -5 Top 10 Holdings % h Cyclical 23.62 5 10 15 20 25 Novo Nordisk A/S B 9.98 r Basic Materials 5.96 Volatility, 1 year Hennes & Mauritz AB B 3.82 t Consumer Cyclical 6.10 Mandatum Life Nordic Equity Benchmark Index Investor AB B 3.52 y Financial Services 10.06 UPM-Kymmene Oyj 3.43 u Real Estate 1.50 Sustainability Measures Vestas Wind Systems A/S 3.39 j Sensitive 43.00 DSV Panalpina AS 3.33 i Communication Services 5.14 Carbon Footprint (tCO2 per million) Volvo AB B 3.29 o Energy 4.37 Essity AB Class B 3.17 p Industrials 30.75

Orsted A/S 3.10 a Technology 2.75 Portfolio 137.00 Defensive 33.38 Europris ASA 2.96 k Percentage of Top Ten 39.99% s Consumer Defensive 8.61 Benchmark 102.40 d Healthcare 19.49 0 100 200 300 f Utilities 5.28 Carbon footprint 134% of benchmark's Allocation Geographic Allocation

Country breakdown Americas Europe/Africa Asia/Oceania 31.68% Sweden 27.04% Denmark 19.31% Norway 15.59% Finland 2.79% Switzerland 2.68% United Kingdom 0.90% Spain 0.01% Other countries

<25 26-50 51-75 >75

This investment review does not constitute a recommendation to subscribe for or redeem the investment. In compiling the review, every attempt has been made to ensure that the information contained in it is correct. However, Mandatum Life is not accountable for the correctness of the information. The investment’s performance is no guarantee of future returns. The value of investments may increase or decrease and investors risk losing the assets they originally invested.

Mandatum Life Insurance Company Limited. Postal address: PO Box 627, 00101 Helsinki. Registered office and address Bulevardi 56, 00120 Helsinki, Finland. Business ID 0641130-2. www.mandatumlife.fi