Arctic Norwegian Equities Monthly Report April 2020

FUND COMMENTS April was a strong month for equies, markets reacted posively to a gradual flaening of new Covid-19 cases. Arc- c Norwegian Equies (Class I) gave 8.6% return in April versus 10.2% for the OSEFX benchmark index. Year to date the fund has returned -22.1% compared to -16.7% for the OSEFX. Since incepon the fund has returned 100.7% versus 85.7% for the benchmark index. In April posive aribuon for the Fund versus the benchmark index came from overweights in Vaccibody and BW Offshore, and underweight in Adevinta. Vaccibody held a company update confirming its medical pipeline is on- track, though slightly delayed due to Covid-19. They also announced an expansion into infecous diseases, led by Gunnstein Norheim from CEPI. The fund has a small overweight in BW Offshore, the stock rose sharply with the rest of the Energy sector in April. BW Offshore has strong operang results from exisng, producing units. The larg- est uncertainty is FPSO ‘Catcher’ which operates for Premier Oil. Last month the company announced a posive 5- year extension for another FPSO, ‘Pioneer’. Adevinta is negavely affected by the lockdown in Europe, parcularly in France for its most important asset Leboncoin. The Adevinta share has been priced for high growth, but fell in April. Arcc Norwegian Equies is underweight in Adevinta and sold some shares last month. In April negave aribuon for the Fund versus the benchmark index came from overweights in NRC Group and Atea, and underweight Tomra Systems. In a month when more aggressive shares had a strong come-back it is not surprising NRC and Atea were slightly behind index. NRC fell somewhat in April aer outperforming in March. Covid -19 has not affected the company materially. The first Norwegian smulus plan contained more money for railway maintenance. Atea announced results for the 1st quarter which were below market expectaons, the company entered the year with a weak orderbook. But outlook for the 2nd quarter was strong, with higher order intake and a larger orderbook. Tomra Systems rose in April, though there was no significant company news. Over the last cou- ple of months Tomra has announced strong Q4 order intake, but a bole deposit scheme in Scotland appears to be delayed. In April the fund has bought shares in companies we consider robust, such as Forsikring, Yara, and Europris. The fund has also added to posions in DNB and Schibsted. The fund has reduced some stakes in En- ergy, such as TGS and Aker ASA. The fund has sold all its shares in BW Energy. Year to date the strongest aributors include overweight sin Crayon Group and Vaccibody, and underweight in . The weakest aributors include overweight in NRC Group, and underweights in Tomra Systems and Telenor. Oslo, May 2020 Albert ColleƩ Alexander Larstedt Lager CIO Porolio Manager

ABOUT THE FUND The investment objecve is to achieve long-term capital appreciaon primarily through equity investments in companies listed or traded on markets in . 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 objecve through acve porolio management based on competence and analysis of companies, sectors, markets and the macro-economic outlook. This results in selecve company investments. There are no limitaons of which sectors within the Norwegian stock market the Fund may invest in. The porolio composion 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. 20% 10.2 % 8.6 % 7.6 % 6.8 % 10% 3.5 % 4.4 % 1.0 % 2.7 % 0%

-10% -10.3 % -20% -16.7 % -14.6 % -22.1 % -30% 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% -8% -6% -4% -2% 0% 2% 4% 6% 8%

10 largest positions 5 largest overweights +/- 5 largest underweights +/- DNB ASA 9.0 % ASA 4.7 % NRC Group ASA 5.9 % Equinor ASA -4.5 % Telenor ASA 6.5 % Atea ASA 4.6 % Atea 3.8 % Tomra Systems -4.1 % ASA 6.1 % Gjensidige Forsikring AS 4.2 % Crayon Group Holding A 3.2 % Entra ASA -2.0 % NRC Group ASA 5.9 % Salmar ASA 4.0 % Vaccibody AS 2.5 % Telenor -1.9 % ASA 5.4 % P/F 3.7 % SpareBank 1 Nord-Norg 2.3 % Schibsted ASA CL A -1.9 %

FUND PERFORMANCE AND RISK FIGURES —CLASS I NOK

3 6 Since Month months months YTD 1 year 3 years 5 years launch Fund 8.6 % -19.8 % -17.0 % -22.1 % -14.6 % 3.0 % 14.3 % 100.7 % Benchmark 10.2 % -15.2 % -13.1 % -16.7 % -10.3 % 10.7 % 24.1 % 85.6 % Difference -1.5 % -4.7 % -4.0 % -5.4 % -4.4 % -7.7 % -9.8 % 15.0 % Vinx Nordic Net, NOK 6.3 % -0.3 % 5.8 % 3.4 % 14.1 % 27.5 % 21.2 % 87.1 % Euro Stoxx 600, EUR 6.5 % -16.5 % -13.4 % -17.5 % -10.8 % -4.7 % -1.5 % 63.2 % S&P 500 TR, USD 12.8 % -9.3 % -3.2 % -9.3 % 0.9 % 29.7 % 54.7 % 196.0 % MSCI AC World, LC 10.3 % -11.2 % -6.8 % -11.7 % -4.2 % 15.1 % 27.8 % 109.0 %

5 top contribut. Fund Fund Contri- 5 bottom contribut. Fund Fund Contri- year to date weight return bution year to date weight return bution Nel Asa 0.8 % 46.1 % 0.32 % Nrc Group Asa 5.4 % -54.5 % -3.27 % Orkla Asa 2.6 % 7.1 % 0.26 % Aker Bp Asa 3.6 % -39.7 % -2.09 % Kahoot! As 0.6 % -3.0 % 0.18 % Dnb Asa 8.3 % -24.3 % -2.08 % Arundo Analytics Inc 1.1 % 16.4 % 0.15 % Mowi Asa 7.1 % -22.2 % -1.70 % Vaccibody As 2.9 % 14.3 % 0.15 % Atea Asa 4.4 % -30.3 % -1.35 % Standard Sharpe Tracking Information Portfolio characteristics Deviation Ratio Error Ratio Arctic Norwegian Equities 15.7 % 0.0 3.5 % -0.7 Benchmark 15.5 % 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 % -22.09 % 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 subscripon and management fees. 150.0 % The return may become negave as a result of negave price develop- ments. Arcc Fund Management AS seeks to the best of its ability to ensure 100.0 % that all informaon given in this report is correct, however, makes reserva- ons regarding possible errors and omissions. Statements in the report 50.0 % reflect the porolio managers’ viewpoint at a given me, and this view- point may be changed without noce. The report should not be perceived 0.0 % as an offer or recommendaon to buy or sell financial instruments. Arcc 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 Arcc Fund Management AS may be owners of securies 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 porolio.