DNB Fund - TMT Absolute Return

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Cordelia Lane
5 years ago
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1 Share Class NOK ABOUT THE FUND The Sub-Fund aims to achieve a positive absolute return over the long-term, by taking long and short positions primarily in equities or equity related derivative contracts of companies operating in or associated with the technology, media and telecom sectors. Monthly report FUND FACTS FUND SIZE: EURm INCEPTION: BASE CUR: EUR FUND TYPE: Long/short equity LIQUIDITY: Daily MGMT. FEE: 1.5% p.a. PERF.FEE: 2 BLOOMBERG: CARTMTN LX ISIN: LU WKN: A1CWC3 BENCHMARK*: ST1X MONTHLY PERFORMANCE (NET OF FEES), % NOK FUND MANAGERS: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year Anders Tandberg-Johansen Erling Thune Sverre Bergland CONTACT: DNB Asset Management S.A. Phone: funds@dnb.no Benchmark* Performance Fund Benchmark Relative Key Figures* May % 0.03 % % Annualized return in % YTD % 0.14 % % Volatility in % 3 months 1 year 3 year* 5 year* Since inception* 0.80 % 1.18 % 5.72 % 4.54 % 4.45 % 0.08 % 0.38 % 0.54 % 0.85 % 1.23 % 0.72 % 0.80 % 5.18 % 3.69 % 3.22 % Fund BM * annualized data * annualized 3 year monthly data * Source: Internal data

2 FUND MANAGER'S COMMENT is a market neutral equity fund and the return is independent of the direction of global equity markets. Among the notable positive contributors for the month were Alphabet (Google) and Facebook. Both companies reported strong quarterly results at the end of April and the stocks rose in May as regulatory and reputational concerns have yet to show an impact on reported growth. Among the notable negative contributors for the month were T-Mobile and Ericsson. Shares of American telecom operator T-Mobile continued underperforming in May, following the announcement of a merger with competitor Sprint at the end of April. We are puzzled by the stock market reaction as if the deal is approved by regulators it will bring with it more than USD40bn in synergies and consolidate the American telecom operator market from four to three competitors. Ericsson fell following strong performance year-to-date. Contributing to the underperformance was news of potentially relaxed sanctions on Chinese competitor ZTE and investor uncertainty around US telecom equipment capex following the Sprint and T-Mobile merger. We are positive on the latter as the improved operator structure in the US will provide a profitable foundation for improving 4G coverage and rolling out 5G. The technology-, media and telecom sectors are characterized by strong, stable earnings. Interest rates are low and there are a number of structural growth drivers in the sectors. In our opinion, there has been too little investment in IT and telecom infrastructure in recent years, and our belief is that this provides the foundation for good growth in the future. The investment universe is continuously changing with new business models emerging at the cost of legacy businesses. This creates a solid foundation for an active and opportunistic approach to stock picking. POSITIONS TOP 3 - INCREASING (04/30/2018) Country Sector Texas Instruments Inc USA IT TOP 3 - DECREASING (04/30/2018) Country Sector Micron Technology Inc USA IT Telecom Sweden Telecom Largest Positions (04/30/2018) Country Sector Oracle Corp USA IT Lenovo Group Ltd Hong Kong IT T-Mobile US Inc USA Telecom Alphabet Inc - A USA IT Finisar Corp USA IT Baidu Inc ADR USA IT Capgemini SE France IT Cisco Systems Inc USA IT Fitbit Inc USA IT Change 2.13 % 1.46 % 1.30 % Change % % % 6.59 % 5.71 % 4.77 % 4.48 % 4.41 % 3.46 % 3.40 % 3.30 % 3.28 % 2.69 % MCAP 190,726 22,251 6,372 47, ,522 1,859 67,121 22, ,860 1,140 Positive (05/31/2018) Sector Absolute Negative (05/31/2018) Sector Lenovo Group Ltd IT 0.48 % IT IT Micron Technology Inc IT 0.47 % IT IT Vishay Intertechnology Inc IT 0.41 % IT IT Square Enix Holdings Co Ltd IT 0.38 % IT IT Alphabet Inc - A IT 0.30 % T-Mobile US Inc Telecom Facebook Inc IT 0.30 % IT IT Mellanox Technologies Ltd IT 0.17 % Ericsson B IT Qualcomm Inc IT 0.16 % IT IT Advanced Micro Devices inc IT 0.15 % IT IT Texas Instruments Inc IT 0.14 % IT IT Absolute % % % % % % % % % %

3 Top Long (04/30/2018) Country Sector Oracle Corp USA IT Lenovo Group Ltd Hong Kong IT T-Mobile US Inc USA Telecom Alphabet Inc - A USA IT Finisar Corp USA IT Baidu Inc ADR USA IT Capgemini SE France IT Cisco Systems Inc USA IT Fitbit Inc USA IT Top Short (04/30/2018) Country Sector IT Netherlands IT IT France IT IT Sweden IT IT Norway IT Telecom Sweden Telecom 6.59 % 5.71 % 4.77 % 4.48 % 4.41 % 3.46 % 3.40 % 3.30 % 3.28 % 2.69 % % % % % % % % % % % MCAP USDm 190,726 22,251 6,372 47, ,522 1,859 67,121 22, ,860 1,140 MCAP USDm 200,701 84,311 36,536 19,386 25,281 1,636 2, ,154 19,146 51,728 EXCHANGE COUNTRY % OF NAV (TOP 10) CURRENCY % OF NAV (TOP 10) 1 8% 6% 4% 2% -2% -4% -6% -8% SECTOR % OF NAV REGION % OF NAV 8% 6% 4% 2% -2% -4% -6% -8% Long Short Net

PORTFOLIO EXPOSURE (% NAV) Gross exposure Net exposure 180.9 % -3.9 % 1 YEAR ROLLING VOLATILITY 10.

3 % -0.8 % 2-0.3 12.4 % 5.2 % 17.6 % 7.2 % <0.3 0.0 % 8. 7. 6. 5. 4.

4 PORTFOLIO EXPOSURE (% NAV) Gross exposure Net exposure % -3.9 % 1 YEAR ROLLING VOLATILITY 10. Monthly report EXPOSURE BY MARKET CAP 9. $ bn Long Short Gross Net > % 67.1 % % % % 20.0 % 39.3 % -0.8 % % 5.2 % 17.6 % 7.2 % < % ADJUSTED LONG/SHORT PERFORMANCE ANNUAL PERFORMANCE Long Short 1.3% Fund Universe 0.9% 0.5% 0.5% LIQUIDITY % 90 % 80 % 50 % * Source: Internal data

5 Luxembourg Oslo Stockholm DNB Asset Management S.A. DNB Asset Management AS DNB Bank ASA, filial Sverige 13, rue Goethe Dronning Eufemias Gate 30 Regeringsgatan 59 L-1637 Luxembourg PO Box 1600 Sentrum SE Stockholm, Sweden N-0021 Oslo, Norway This presentation is for internal use only in client communication. The content has not been produced for public distribution. This material is confidential and has been provided to its recipient and should not be copied, duplicated, distributed, published or otherwise transmitted to another person on whole or in part without the express written consent of DNB Asset Management S.A. The presentation is based on publicly available information and no guarantee is given regarding the reliability, correctness, accuracy or completeness of the information (including but not limited to numerical data, comments, analyses, opinions, estimations and strategies) contained in this document. Information and opinions presented in this material have been obtained or derived from sources which are deemed reliable, but neither DNB Asset Management S.A. nor any DNB Wealth Management entity makes any representation nor give any guarantee as to their accuracy, adequacy, quality or completeness. Unless indicated to the contrary, all figures are unaudited. All valuations mentioned herein are subject to DNB Wealth Management entities valuation policies and procedures. This document does neither constitute an offer to the public or on a private basis to subscribe for or purchase any of the financial instruments mentioned nor investment research, research recommendations, investment recommendations or information recommending or suggesting an investment strategy, and it does not contain research or financial analysis. The information contained in this document has been provided as a general market commentary and does not constitute any form of personal recommendation, investment advice, legal, tax, accounting or other advice or recommendation or any other financial service. It does not take into account the investment objectives, financial situation or needs, or knowledge and experience of any persons. The information provided is not intended to provide a sufficient basis on which to make an investment decision. It is recommended that any person potentially interested in the elements described in this document shall seek to obtain relevant information and advice (including but not limited to risks) prior to taking any investment decision. The statements in the presentation reflect the views of DNB Asset Management S.A. at the time the presentation was made, and DNB Asset Management S.A. reserves the right to change its view of the matter without giving notice. The written material issued which is distributed must be seen in the context of what is communicated verbally during the presentation. DNB Asset Management S.A. cannot be held liable for any direct or incidental, special or consequential losses caused by the interpretation of and/or use of this presentation, regardless of whether such losses are foreseeable or not. The liability of DNB Asset Management S.A. or of any DNB Wealth Management entity may not be engaged as regards any investment, divestment or retention decision taken by a person on the basis of the information contained in this document. Such person shall bear alone all risks of losses potentially incurred as a result of such decision. This presentation is not an offer or recommendation to the public or on a private basis for the purchase or sale of financial instruments. It should be noted that the presented product involves investment risk, including the possibility of loss of the entire or part of the invested amount. Historical returns, past performance and financial market scenarios are no guarantee of future returns. Investments in financial instruments can both increase and decrease in value, and there is no guarantee that an investor will get the entire invested amount back. Significant losses are always possible. DNB Bank ASA and/or other companies in the DNB Group or employees and/or employee representatives in the Group may trade with or hold positions in the above-mentioned or related instruments, or provide financial advice and banking services in this regard. Rules on confidentiality and other internal rules restrict the exchange of information between different units of the DNB Group. Employees in DNB Asset Management S.A. who have prepared this presentation may therefore be prevented from using and/or being informed of such information which may exist in other companies in the DNB Group and which may be relevant for this presentation. Further information can be found free of charge in the funds' prospectus, management regulations/articles of incorporation and in the annual and bi-annual reports that are available in English and in German on or at DNB Asset Management S.A. s premises at 13, rue Goethe, L-1637 Luxembourg, at the information agent in Germany (DNB Bank ASA Filiale Deutschland, Neuer Wall 72, Hamburg) and at the representative in Switzerland (CACEIS Switzerland S.A., route de Signy 35, CH-1260 Nyon). Fund s key information documentation are also available free of charge in various languages on DNB Fund has been registered with Commission de Valores Paying agent in Switzerland is Crédit Agricole Suisse S.A., 4 Quai Général Guisan, 1204, Geneva. The fund may not be offered, sold or delivered within the United States. DNB Asset Management S.A. is a company in the DNB Group, organisation number in the Luxembourg Trade and Companies Register RCS B

DNB Fund - ECO Absolute Return

DNB Fund - ECO Absolute Return Share Class retail A EUR ABOUT THE FUND The Sub-Fund aims to achieve a positive absolute return, by taking long and short positions primarily in equities or equity related derivative contracts of companies