DNB Fund - ECO Absolute Return

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Jonah Paul
5 years ago
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1 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 operating in or associated with renewable energy. Please see below the fund's underlying exposure. Monthly report FUND FACTS FUND SIZE: 16.2 EURm INCEPTION: BASE CUR: EUR FUND TYPE: Alternative Investmen LIQUIDITY: Daily MGMT. FEE: 1.5% p.a. PERF.FEE: 2 BLOOMBERG: CARECOE LX ISIN: LU WKN: A1CWCY BENCHMARK*: 3 mth Bubill MONTHLY PERFORMANCE (NET OF FEES), % EUR FUND MANAGERS: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year Jon Sigurdsen Christian Rom CONTACT: DNB Asset Management S.A. Phone: funds@dnb.no Benchmark* Performance Fund Benchmark Relative Key Figures* June % % % Annualized return in % YTD % % % Volatility in % 3 months 1 year 3 year* 5 year* Since inception* % % 0.87 % 2.73 % 1.69 % % % % % % % % 1.54 % 3.16 % 1.92 % Fund BM * annualized data * annualized 3 year monthly data * Source: Internal data

2 FUND MANAGER'S COMMENT ECO is a market neutral fund seeking to gain returns from bottom-up stock selection meaning that general market environment is of less importance. ECO fell in June. On a subsector basis there were no specific sectors standing out negatively, it was really more a result of moderate losses from most subsectors. The largest loss came from a short in the energy storage sector, after the company held an investor day illustrating decent growth outlook. The company also reported results that had healthy order entry and strong growth. We think embedded market expectations are now very high. There was also a loss in the solar inverter space for a company that did an acquisition that will increase revenue and profits meaningfully going forward. This was negative fundamental news for the fund, we anyhow think there is a lot build into expectations for this stock as well. Constellium, a long in the material space fell, likely due to fear over potential impact from trade tariff risks. On the positive side, the fund gained in a short in the LED sector. The sector fell off as a few companies like Osram and Zumtobel pre-announced negative results, generally the lightning space is very competitive currently. There was also positive news from two investments in the building sector, namely NCI Building Systems and Apogee Enterprises. Both companies posted earnings ahead of expectations and had upbeat outlook for the rest of the fiscal year. In terms of subsector allocation, the fund had only very minor adjustments during June. The normalized valuation spread between the longs and the shorts increased over the month, illustrating higher upside potential. POSITIONS TOP 3 - INCREASING (05/31/2018) Country Sector Huntsman Corp USA Materials Sensata Technologies Holding NV USA Industrials TOP 3 - DECREASING (05/31/2018) Country Sector IT Korea IT Revolution Lighting Technologies Inc USA Industrials Hudson Technologies Inc USA Industrials Largest Positions (05/31/2018) Country Sector Lynas Corp Ltd Australia Materials Mineral Resources Ltd Australia Materials Renewable Energy Group Inc USA Energy AMG Advanced Metallurgical Group Nv Netherlands Materials Neo Performance Materials Inc Canada Materials American Axle & Manufacturing Holdings Inc USA Cons. Disc. Magna International Inc USA Cons. Disc. Apogee Enterprises Inc USA Industrials Nci Building Systems Inc USA Industrials Change 2.55 % 2.07 % Change % % % 4.99 % 4.82 % 4.80 % 4.79 % 4.76 % 4.73 % 4.72 % MCAP 1,145 2, ,068 1, ,737 22,615 1,359 1,389 Positive (06/29/2018) Sector Absolute Negative (06/29/2018) Sector Seoul Semiconductor Co Ltd IT 0.63 % AeroVironment Inc Industrials Industrials Industrials 0.46 % Enphase Energy Inc Industrials Industrials Industrials 0.41 % Materials Materials Allegheny Technologies Inc Materials 0.38 % Materials Materials Cree Inc IT 0.36 % Taiyo Yuden IT Aixtron Se IT 0.28 % Clean Energy Fuels Corp Energy Energy Absolute PCL Energy 0.27 % Tesla Inc Cons. Disc. Industrials Industrials 0.26 % Cons. Disc. Cons. Disc. STMicroelectronics NV IT 0.24 % Cons. Disc. Cons. Disc. Cons. Staples Cons. Staple 0.23 % Energy Energy Absolute % % % % % % % % % %

3 Top Long (05/31/2018) Country Sector Lynas Corp Ltd Australia Materials Mineral Resources Ltd Australia Materials Renewable Energy Group Inc USA Energy AMG Advanced Metallurgical Group Nv Netherlands Materials Neo Performance Materials Inc Canada Materials American Axle & Manufacturing Holdings Inc USA Cons. Disc. Magna International Inc USA Cons. Disc. Apogee Enterprises Inc USA Industrials Nci Building Systems Inc USA Industrials Top Short (05/31/2018) Country Sector IT Korea IT Materials USA Materials Industrials Sweden Industrials Materials Denmark Materials 4.99 % 4.82 % 4.80 % 4.79 % 4.76 % 4.73 % 4.72 % % % % % % % % % % % MCAP USDm 1,145 2, ,068 1, ,737 22,615 1,359 1,389 MCAP USDm 1, ,639 20,142 3,156 4,178 1,708 4,787 12,339 EXCHANGE COUNTRY % OF NAV (TOP 10) CURRENCY % OF NAV (TOP 10) 2 15% 1 5% -5% -1-15% SECTOR % OF NAV REGION % OF NAV Long Short Net

PORTFOLIO EXPOSURE (% NAV) Gross exposure Net exposure EXPOSURE BY MARKET CAP $ bn Long Short Gross Net >10 16.4 % 36.9 % 53.2 % -20.5 % 10-2 44.4 % 57.6 % 102.1 % -13.2 % 2-0.3 72.9 % 53.2 % 126.

4 PORTFOLIO EXPOSURE (% NAV) Gross exposure Net exposure EXPOSURE BY MARKET CAP $ bn Long Short Gross Net > % 36.9 % 53.2 % % % 57.6 % % % % 53.2 % % 19.7 % % -3.5 % < % 1.9 % 17.2 % 13.5 % 1 YEAR ROLLING VOLATILITY Monthly report ADJUSTED LONG/SHORT PERFORMANCE ANNUAL PERFORMANCE Long Short 25% 2 15% 1 5% -5% -1 Fund Universe 18.8% 11.4% 12.4% 10.5% 6.4% -1.6% % -8.4% -7.8% 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 - TMT Absolute Return

DNB Fund - TMT Absolute Return 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