DANSKE INVEST SICAV Société d'Investissement à Capital Variable Annual Report, including Audited Financial Statements as at December 31, 2016 R.C.S B161867 Subscriptions shall only be valid if made on the basis of the KIID (Key Investor Information Document) or the current prospectus accompanied by the most recent audited annual report as well as by the semi-annual report if published more recently than the most recent annual report, including Audited Financial Statements. No one is authorised to state other information than the one contained in the Prospectus as well as in the documents herein mentioned, which are available to the public. DANSKE INVEST SICAV Table of contents Page Management and Administration 4 Information to Shareholders 6 Directors' Report 7 Investment Manager's Report 17 Report of the Réviseur d'Entreprises Agréé 20 Combined Statement of Net Assets 22 Combined Statement of Operations and Changes in Net Assets 34 Statement of Changes in the Number of Shares 40 Statistics 48 Eastern Europe Statement of Investments 52 Geographical and Economic Portfolio Breakdowns 55 Emerging and Frontier Markets Statement of Investments 56 Geographical and Economic Portfolio Breakdowns 64 Emerging Markets Debt Hard Currency Statement of Investments 65 Geographical and Economic Portfolio Breakdowns 71 Euro High Yield Bond Statement of Investments 72 Geographical and Economic Portfolio Breakdowns 78 Europe Statement of Investments 79 Geographical and Economic Portfolio Breakdowns 82 Europe Absolute Statement of Investments 83 Geographical and Economic Portfolio Breakdowns 85 Europe Long-Short Dynamic Statement of Investments 86 Geographical and Economic Portfolio Breakdowns 88 Europe Long-Short Dynamic Plus Statement of Investments 89 Geographical and Economic Portfolio Breakdowns 91 European Corporate Sustainable Bond* Statement of Investments 92 Geographical and Economic Portfolio Breakdowns 95 Germany Statement of Investments 96 Geographical and Economic Portfolio Breakdowns 97 Global High Dividend Statement of Investments 98 Geographical and Economic Portfolio Breakdowns 100 Global Inflation Linked Bond Statement of Investments 101 Geographical and Economic Portfolio Breakdowns 104 Global Inflation Linked Bond Short Duration Statement of Investments 105 Geographical and Economic Portfolio Breakdowns 107 Nordic Corporate Bond Statement of Investments 108 Geographical and Economic Portfolio Breakdowns 113 US High Yield Bond Statement of Investments 114 Geographical and Economic Portfolio Breakdowns 118 Notes to the audited Financial Statements 119 Information for Investors in Switzerland (non audited) 150 Unaudited Appendix 155 * See Note 1 3 DANSKE INVEST SICAV Management and Administration Board of Directors: Thomas Borg Dideriksen (co-opted May 31, 2016) Managing Director Chairman Danske Bank International S.A. Luxembourg Robert Mikkelstrup Grand Duchy of Luxembourg Head of Product Management Wealth Management Investment Managers: Danske Bank A/S 2800 Kgs. Lungby Danske Bank A/S acting through its division Denmark Danske Capital 17, Parallelvej Members 2800 Kgs. Lyngby Denmark Morten Rasten Managing Director Danske Capital AB Danske Invest Management A/S 16, Kungsträdgårdsgatan 2800 Kgs. Lyngby SE-111 47 Stockholm Denmark Sweden Henrik Rye Petersen Sub-Investment Managers: Head of Global Financial Institutions Danske Invest DDJ Capital Management LLC 2800 Kgs. Lyngby, (for Sub-Fund US High Yield Bond) Denmark Stony Brook Office Park 130 Turner Street Registered Office: Building 3, Suite 600 Waltham, MA 02453 13, rue Edward Steichen U.S.A. L-2540 Luxembourg Grand Duchy of Luxembourg William Blair & Company LLC (until May 25, 2016) (for Sub-Fund Global Emerging Markets Leaders) * Management Company: 222 West Adams Street Chicago, Illinois 60606 Danske Invest Management Company U.S.A. 13, rue Edward Steichen, L-2540 Luxembourg, Sub-Investment Advisors: Grand Duchy of Luxembourg Aventicum Capital Management (Qatar) LLC Board of Directors of the Management Company: Tornado Tower - 32 floor West Bay, P.O. Box 23146 Chairman Doha Qatar Morten Rasten Managing Director Blackhorse Asset Management Pte. Ltd Danske Invest Management A/S 156 Cecil Street 2800 Kgs. Lyngby #06-01 Far Eastern Bank Building Denmark Singapore 069544 Members Claritas Administração de Recursos Ltda. Avenida Brigadeiro Faria Lima, 4221, 4th floor Lone Larsson Hestnes (appointed on July 22, 2016) 04538-133, São Paulo Managing Director Brazil Danske Capital A/S Oslo Compass Group LLC Norway 35 East 57th Street, New York, NY 10022 Johnny BISGAARD (resigned as of July 22, 2016) U.S.A. Deputy General Manager Danske Bank International S.A. Fullerton Fund Management Company Ltd Luxembourg 60B Orchard Road, 5th floor Tower 2, Grand-Duchy of Luxembourg The Atrium, Singapore 238891 Lone Mortensen (resigned as per May 31, 2016) Imara Asset Management Ltd Member of Executive Board Level 12, Nexteracom Tower 1 Danske Invest Management A/S Cybercity, Ebene 2800 Kgs. Lyngby Republic of Mauritius Denmark * See Note 1 4 DANSKE INVEST SICAV Management and Administration (continued) JK Capital Management Limited German Information and Paying Agent Suite 1101, 11th floor, 34-37 Connaught Road Central, Hong Kong Danske Bank A/S, China Zweigniederlassung Hamburg Georgsplatz 1 Karma Capital Advisors Private Limited Postfach 101522 408, Oberoi Chambers 1, Off Link Road, Andheri West, D-20099 Hamburg, Mumbai 400053 Germany India Austrian Paying and Information Agent Depositary and Central Administration: UniCredit Bank Austria Ag P.O. Box 35 RBC Investor Services Bank S.A. A-1011 Vienna 14, Porte de France Austria L-4360 Esch-sur-Alzette Grand Duchy of Luxembourg Registrar Agent: RBC Investor Services Bank S.A. 14, Porte de France L-4360 Esch-sur-Alzette Grand Duchy of Luxembourg Principal Paying Agent: RBC Investor Services Bank S.A. 14, Porte de France L-4360 Esch-sur-Alzette Grand Duchy of Luxembourg Auditor: Deloitte Audit S.à r.l 560, rue de Neudorf L-2220 Luxembourg Grand Duchy of Luxembourg Domiciliary Agent Danske Invest Management Company 13, rue Edward Steichen L-2540 Luxembourg Grand Duchy of Luxembourg Swiss Representative Carnegie Fund Services S.A. 11, rue du General - Dufour 1204 Geneva, Switzerland Swiss Paying Agent Banque Cantonale de Geneve 17, Quai de L'lle 1204 Geneva, Switzerland 5 DANSKE INVEST SICAV Information to Shareholders Information about the Net Asset Value of the shares of each Sub-Fund and the subscription and redemption prices is available at all times at the registered office of the Fund. Copies of the annual report, including Audited Financial Statements and unaudited semi-annual reports may be obtained by holders of shares from the registered office of the Fund. A detailed schedule of portfolio changes is available free of charge upon request at the registered office of the Fund. The current prospectus, KIID and articles of association are also available from the German and Austrian Information and Paying Agents. The Fund’s prospectus, KIID, articles of association, annual report, including Audited Financial Statements and unaudited semi-annual reports – each in their respective latest version approved by the Swiss Financial Market Supervisory Authority, in German – and the net asset value per share as well as the subscription, redemption and possible conversion price of shares and a list of changes to the investment portfolio are available free of charge at the office of the Swiss Representative. All information available to shareholders at the head office of the management company is also available to the public free of charge, upon request from the Swiss Representative. Swiss Representative: Carnegie Fund Services S.A. 11, rue du General - Dufour 1204 Geneva, SWITZERLAND 6 DANSKE INVEST SICAV Directors’ Report Significant events during the year 2016: Board of Directors: The Annual General Meeting of Danske Invest SICAV took place on April 19, 2016. The General Assembly took note of the expiry of the mandate for all the current Board Members as of April 19, 2016 and noted that there is no remuneration fee for Board Members from Danske Bank Group. The General Assembly agreed to elect the following Board Members - Mr. Robert Mikkelstrup, Mr. Morten Rasten, and Mr. Henrik Rye Petersen - for a one year period until the next Annual General Meeting which will be held in 2017. The current Cabinet de révision agréé à responsibilité limitée was re-elected as Statutory Auditor for another one year period until the next Annual General Meeting which will be held in 2017. Mandates held by the current Board of Directors of Danske Invest SICAV: Mr. Robert Mikkelstrup has the following mandates in addition to the Director mandate and Chairman of Danske Invest SICAV. Board membership: Danske Invest Allocation and Danske Invest SICAV-SIF (Luxembourg). Mr. Henrik Rye Petersen has the following mandates in addition to the Director mandate of Danske Invest SICAV. Board membership: Danske Invest Allocation and Danske Invest SICAV-SIF (Luxembourg). Mr. Morten Rasten has the following mandates and engagements (in addition to the director mandate of Danske Invest SICAV): Board membership: Danske Invest Fund Management Ltd (Finland), Danske Capital AB (Sweden), Danske Capital AS Norway, Danske Invest SICAV SIF, Danske Invest Allocation and Danske Invest Management Company (Luxembourg). Board membership: Danish (IFB) and Norwegian (VFF) Fund Associations Management position: Managing Director in Danske Invest Management A/S (Denmark). Subsequent event to the Annual