November MONTHLY REPORT

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1 November 2014 MONTHLY REPORT Comment Delphi Global Delphi Europe Delphi Nordic p. 2 p. 3 p. 5 p. 7

4 per cent measured in USD, while the European Stoxx 600 Index fell by 1.7 per cent measured in EUR and the Nordic VINX Index ended the month up 2.7 per cent measured in NOK.

2 The stock exchanges hit back October can be summed up as a rollercoaster trip on the stock exchanges. A sharp fall in the first part of the month was followed by renewed faith in shares and a strong final spurt. For the month as a whole, the S&P 500 Index rose by 2.4 per cent measured in USD, while the European Stoxx 600 Index fell by 1.7 per cent measured in EUR and the Nordic VINX Index ended the month up 2.7 per cent measured in NOK. The MSCI Emerging Markets Index, on its part, rose by 1.2 per cent measured in USD. Two sides of the coin The downturn at the start of the month was driven by concerns about growth in Europe and in part in China, as well as the end of the bond purchases in the USA. The upturn later in the month was partly a result of good macro figures from the USA and partly a correction to the huge fall, while the final spurt on the last day of October was activated by the Japanese central bank's announcement that it would provide additional stimuli. As the oil price fell, the Oslo Stock Exchange took an extra hit in October. However, on the other side of the coin, a lower oil price may lead to increased consumption of other goods and services and thus have a positive effect on the global economy. The USA stands firm The US economy is still doing very well and this is also helping Europe, which is struggling to get up to speed. Unemployment has fallen and consumer confidence has risen. The fact that the central bank stopped repurchasing bonds in October was stated to be because the economy is at last robust enough to stand on its own two feet. However, the low interest rates will be maintained for an extended period. The strong macro developments in the USA are very important at a time when other regions are struggling. Despite the higher pricing of US shares, we still regard this country as one of the most attractive investment areas. Mixed messages from Europe On the macro side, we saw a certain improvement in mood in the production part of the German economy in October, while both France and Italy are continuing to weaken. It is worth noting that peripheral Europe is still going strong, with rising house prices and falling unemployment in both Ireland and Spain. Interest rates are also continuing to fall, especially long-term ones. At the same time, lower inflation rates are expected and more people believe in additional monetary-policy stimuli from the European Central Bank. China is putting the brakes on In China, the politicians strongly want to replace the investment-driven growth with consumption-driven growth. They will probably allow the growth rate in the economy to decline even further. The growth estimates for next year are now approaching 7 per cent, which would be the weakest growth figure since before the financial crisis. The road ahead All upturn periods on stock exchanges have one thing in common, they are interrupted by temporary falls in share prices. Here at Delphi Funds, we still believe the stock exchanges will rise even further. "A day of worry is more exhausting than a week of work" John Lubbock Contact information Should you have any interest in our Delphi funds, please don t hesitate to contact us at contact@delphi.no, or Kurt Hauge directly. Kind regards, Kurt Hauge Product Specialist Tel: kurt.hauge@delphi.no 2

3 Delphi Global Comment October ended with an upturn of 1.0 per cent for Delphi Global. The fund s benchmark ended the same period up 1.4 per cent both measured in EUR. October was a volatile stock exchange month. It started off with renewed macro concerns about growth in Europe and in part in China. The termination of quantitative easing (QE) in the USA also created unrest. However, increased expectations regarding the European Central Bank and the Japanese central bank's announcement of even more stimuli at the end of the month contributed to most of the stock exchanges rising during the month. Region-wise, many of the stock markets in emerging economies were among the strongest in October, and the USA also did well. On the weak side, the Arabian Gulf states were particularly noticeable following a new period of a sharp fall in the oil price. Sector-wise, the health sector was strong on a global basis for yet another month while the energy sector was once again by far the weakest. The health sector is still the largest sector in Delphi Global and we have not started to increase our shareholdings in energy companies again. We are now in the middle of the third-quarter reporting season and, especially in the USA, many companies have done well and reported sound results. In October, we included Irish pharmaceutical company Shire in the portfolio. This company, which is listed in London, fell sharply (by more than 20 per cent) after US company Abbvie withdrew its bid for the company for tax reasons. Shire is a well-run and diversified pharmaceutical company that stands well on its own two feet and we can see a solid upside in the share. We did not get rid of any companies from the portfolio during the month. The manager has personal savings in the fund. Performance Growth Of (EUR) Fund Index K /14 Performance Fund /- Index Calendar Year Returns Fund Index Note: Pricing time of fund and benchmark are different. The fund's NAV is priced at 4pm CET, while the benchmark is priced later in the day Key information Inception Date 23 May 2006 Stig Tønder ISIN NO Total Net Assets (mill) 4, NOK NAV (31 Oct 2014) UCITS Yes Dividend Payout No Fund Benchmark MSCI World NR Annual Management Fee 0-4%** Performance Fee 10.00% Subscription fee* 0.00% Redemption fee* 0.00% Lower Risk Typically Lower Higher Risk Typically Higher Risk Measurement 1 Year 3 Yr 5 Yr Std Deviation Std Deviation Index Information Ratio Beta Tracking Error (31 Oct 2014) 3 Months 6 Months 1 Year 3 Years Annualised 5 Years Annualised 10 Years Annualised Since Inception Annualised Return % /-Idx holders realised gains or losses will therefore depend on the actual timing of subscriptions or redemptions. * A 20 bps fee may be levied on subscriptions above NOK 2 millions (dilution levy). **The fixed annual management fee equals 2.00%. However, a variable symmetric management fee is applied to this fund. Total management fee will always be in the range of 0-4%. 3

Delphi Global Portfolio as of 31 Oct 2014 Top 10 Holdings Sector % Port. Union Pacific Corp 2.51 Pandora AS 2.34 Walt Disney Co 2.33 Delphi Automotive PLC 2.33 Medtronic Inc 2.

4 Delphi Global Portfolio as of 31 Oct 2014 Top 10 Holdings Sector % Port. Union Pacific Corp 2.51 Pandora AS 2.34 Walt Disney Co 2.33 Delphi Automotive PLC 2.33 Medtronic Inc 2.23 Novo Nordisk A/S Class B 2.23 Microsoft Corp 2.19 Roche Holding AG Dividend Adobe Systems Inc 2.15 Norsk Hydro ASA 2.15 Total Stock Holdings 62 Total Bond Holdings 0 Assets in Top 10 Holdings % Top 10 Countries % Equity % Index United States Denmark Germany United Kingdom France Switzerland Finland Norway Spain Sweden Sector Weightings % Equity % Index Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecommunication Services Utilities For companies listed on stock exchanges in several countries, there may be deviations between Morningstar s registration and the stock exchange the manager actually bought the stock. Fund Stig Tønder Start Date 23 May 2006 Investment Objective Delphi Global is an open-end UCITS fund incorporated in Norway. The Fund's objective is to generate strong capital growth through a long-only and unconstrained approach, with a bias towards large and mid caps. The Fund invests its assets in a concentrated portfolio of equities (50 60 positions) selected from across world equity markets. The benchmark is the MSCI World Index NTR. A variable symmetric management fee is applied to this fund. Total management fee will always be in the range of 0-4 %. Applicable to nominees Please note that you have to apply for an approval from the Finanstilsynet (Financial Supervisory Authority of Norway) to act as a nominee, ref. the Norwegian nominee regulation of 18 December 2003 nr Certain duties arise in connection with the approval to act as a nominee including registration of information about the beneficial owner and reporting of holdingand realisation information to the Norwegian authorities regarding beneficial owners who are liable to Norwegian taxation. Contact information Enquiries Kurt Hauge Head of Intl. Sales & Distribution Tel kurt.hauge@delphi.no Arne Fredrik Håstein Director Sales & Distribution Tel arne.fredrik.hastein@delphi.no Contact Details Postal address: Delphi Fondene Professor Kohts vei 9 P.O. Box 484, NO-1327 Lysaker Internet: Sustainable investments At Delphi we seek to avoid investing in companies that are involved in unsustainable practices and to influence all companies to make constant improvements. We use Storebrand s in-house sustainable investment team to monitor and analyse the companies in our portfolio and have developed a strict standard for our investments. holders realised gains or losses will therefore depend on the actual timing of subscriptions or redemptions. * A 20 bps fee may be levied on subscriptions above NOK 2 millions (dilution levy). **The fixed annual management fee equals 2.00%. However, a variable symmetric management fee is applied to this fund. Total management fee will always be in the range of 0-4%. 4

5 Delphi Europe Comment October ended with a downturn of 3.2 per cent for Delphi Europe. The fund s benchmark ended the same period down 1.9 per cent both measured in EUR. As feared, October was a difficult month for European shares. The stock markets experienced a sharp downward correction at the beginning of the month but recouped a lot of this fall during the second half of the period. At sector level, we saw great changes. Oil shares suffered the most, which is perhaps natural considering the huge drop in the oil price in October. Other commodity-sensitive sectors also fell considerably. On the winning side, we find cyclical consumer shares, which on the whole overcame the unrest and rose significantly during the month. Health shares comprise a considerable part of Delphi Europe's investments. The main reason why we like this sector is that many of the companies are now growing again after an uphill struggle for the past 6-7 years. The previous bigselling products lost their patent protection during this period and this led to a considerable fall in income. At the same time, it has long been difficult to start selling new medicines. Breakthroughs in the research into some of the biggest unsolved illnesses have led to the pharmaceutical companies growing once more. We have also seen an acquisition wave in the health sector, to a large extent tax-driven by US companies. In June, US company Abbvie made a bid for Shire Pharma, one of our portfolio companies. After the Obama administration tightened up the opportunity for tax planning, Abbvie chose to withdraw its bid for Shire. The result was a sharp fall in the share price. At that time, we had a considerable shareholding in Shire so we noticed this fall a lot. However, we are very comfortable with Shire's value-creation potential and are therefore choosing to keep the share. The manager has personal savings in the fund. Performance Growth Of (EUR) Fund Index K /14 Performance Fund /- Index Key information Inception Date 8 Mar 1999 Espen K. Furnes ISIN NO Total Net Assets (mill) 1, NOK NAV (31 Oct 2014) UCITS Yes Dividend Payout No Fund Benchmark MSCI Europe NR Annual Management Fee 2.00% Subscription fee* 0.00% Redemption fee* 0.00% Lower Risk Typically Lower Higher Risk Typically Higher Risk Measurement 1 Year 3 Yr 5 Yr Std Deviation Std Deviation Index Information Ratio Beta Tracking Error Calendar Year Returns Fund Index (31 Oct 2014) 3 Months 6 Months 1 Year 3 Years Annualised 5 Years Annualised 10 Years Annualised Since Inception Annualised Return % /-Idx Note: Pricing time of fund and benchmark are different. The fund's NAV is priced at 4pm CET, while the benchmark is priced later in the day. holders realised gains or losses will therefore depend on the actual timing of subscriptions or redemptions.* A 20 bps fee may be levied on subscriptions above NOK 2 millions (dilution levy). 5

Delphi Europe Portfolio as of 31 Oct 2014 Top 10 Holdings Sector % Port. Pandora AS 5.30 Novo Nordisk A/S Class B 4.67 Nokia Oyj 4.43 Novartis AG 4.34 Shire PLC 4.32 Danske Bank AS 4.

6 Delphi Europe Portfolio as of 31 Oct 2014 Top 10 Holdings Sector % Port. Pandora AS 5.30 Novo Nordisk A/S Class B 4.67 Nokia Oyj 4.43 Novartis AG 4.34 Shire PLC 4.32 Danske Bank AS 4.12 Roche Holding AG Dividend Smith & Nephew PLC 4.09 Bayer AG 3.63 Hexagon AB Class B 3.51 Total Stock Holdings 46 Total Bond Holdings 0 Assets in Top 10 Holdings % Top 10 Countries % Equity % Index Denmark United Kingdom Germany France Switzerland Spain Norway Finland Sweden Belgium Sector Weightings % Equity % Index Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecommunication Services Utilities For companies listed on stock exchanges in several countries, there may be deviations between Morningstar s registration and the stock exchange the manager actually bought the stock. Fund Espen K. Furnes Start Date 8 Mar 1999 Investment Objective Delphi Europe is an open-end UCITS fund incorporated in Norway. The Fund's objective is to generate strong capital growth through a long-only and unconstrained approach, with a bias towards large and mid caps. The Fund invests its assets in a concentrated portfolio of equities (30 40 positions) selected from across Europe, with a particular focus on Western European companies. The benchmark is the MSCI Europe Index NTR. Applicable to nominees Please note that you have to apply for an approval from the Finanstilsynet (Financial Supervisory Authority of Norway) to act as a nominee, ref. the Norwegian nominee regulation of 18 December 2003 nr Certain duties arise in connection with the approval to act as a nominee including registration of information about the beneficial owner and reporting of holdingand realisation information to the Norwegian authorities regarding beneficial owners who are liable to Norwegian taxation. Contact information Enquiries Kurt Hauge Head of Intl. Sales & Distribution Tel kurt.hauge@delphi.no Arne Fredrik Håstein Director Sales & Distribution Tel arne.fredrik.hastein@delphi.no Contact Details Postal address: Delphi Fondene Professor Kohts vei 9 P.O. Box 484, NO-1327 Lysaker Internet: Sustainable investments At Delphi we seek to avoid investing in companies that are involved in unsustainable practices and to influence all companies to make constant improvements. We use Storebrand s in-house sustainable investment team to monitor and analyse the companies in our portfolio and have developed a strict standard for our investments. holders realised gains or losses will therefore depend on the actual timing of subscriptions or redemptions.* A 20 bps fee may be levied on subscriptions above NOK 2 millions (dilution levy). 6

7 Delphi Nordic Comment October ended with a downturn of 1.5 per cent for Delphi Nordic. The fund s benchmark also ended down 1.5 per cent both measured in EUR. October was a relatively brisk rollercoaster trip for Delphi Nordic. The market experienced a sharp downward correction in the first half of the month, among other things due to fear of a more restrictive central bank in the USA, a freefalling oil price and weaker macro figures from Europe especially from Germany. This unrest disappeared as suddenly as it had begun and led to the stock exchanges more than recouping what they had lost and rising as a whole during the month. For Delphi Nordic, this meant that its unit price rose by all of 12 per cent from the month's lowest price on 16 October. That is a rarity. We believe the worst is over this time, but expect the volatility to remain high for a while to come. We especially believe that the market has an exaggerated fear that the US central bank will destroy the economic expansion with too early interest-rate hikes. The falling oil price will no doubt hurt Norway and the energy sector but, on a wider basis, a lower oil price acts as a little injection for the global, car-driving consumer. For Europe, we share the fear that some of the region is in a difficult place from a structural point of view, but we still believe that we will see some growth next year, even if it is less than the market expects. What is most important of all is that the global long-term interest rates have continued to fall, which means we may see falling risk premiums for shares too in the future, and thus rising share prices. We did not make any great changes to the portfolio during the month. The month's best shares were salmon-farming companies Marine Harvest and Bakkafrost. Swedish defence group SAAB ended up in third place after it won an export contract with Brazil for its new fighter plane. On the negative side, we find NKT Holding, BW LPG and Vestas Wind, although our faith in these is not particularly weakened. However the falling oil price may have a negative effect on LPG transport in the future, so we are following developments here closely. The manager has personal savings in the fund. Performance K Growth Of (EUR) /14 Performance Fund /- Index Calendar Year Returns Fund Index Note: Pricing time of fund and benchmark are different. The fund's NAV is priced at 4pm CET, while the benchmark is priced later in the day Fund Index Key information Inception Date 18 Mar 1991 Øyvind Fjell ISIN NO Total Net Assets (mill) 2, NOK NAV (31 Oct 2014) UCITS Yes Dividend Payout No Fund Benchmark VINX Benchmark Cap Net Annual Management Fee 2.00% Subscription fee* 0.00% Redemption fee* 0.00% Lower Risk Typically Lower Higher Risk Typically Higher Risk Measurement 1 Year 3 Yr 5 Yr Std Deviation Std Deviation Index Information Ratio Beta Tracking Error (31 Oct 2014) 3 Months 6 Months 1 Year 3 Years Annualised 5 Years Annualised 10 Years Annualised Since Inception Annualised Return % /-Idx holders realised gains or losses will therefore depend on the actual timing of subscriptions or redemptions. * A 20 bps fee may be levied on subscriptions above NOK 2 millions (dilution levy). 7

Delphi Nordic Portfolio as of 31 Oct 2014 Top 10 Holdings Sector % Port. Marine Harvest ASA 7.26 Novo Nordisk A/S Class B 6.55 Pandora AS 6.45 DNB ASA 5.40 Sampo Oyj Class A 4.86 Genmab A/S 4.

8 Delphi Nordic Portfolio as of 31 Oct 2014 Top 10 Holdings Sector % Port. Marine Harvest ASA 7.26 Novo Nordisk A/S Class B 6.55 Pandora AS 6.45 DNB ASA 5.40 Sampo Oyj Class A 4.86 Genmab A/S 4.53 Vestas Wind Systems A/S 4.46 Opera Software ASA 4.39 NKT Holding A/S 4.20 Saab AB Class B 4.14 Total Stock Holdings 38 Total Bond Holdings 0 Assets in Top 10 Holdings % Top 10 Countries % Equity Norway Denmark Sweden Finland United Kingdom 3.90 Singapore 2.78 Sector Weightings % Equity Energy 4.21 Materials 4.02 Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecommunication Services - Utilities 0.60 For companies listed on stock exchanges in several countries, there may be deviations between Morningstar s registration and the stock exchange the manager actually bought the stock. Fund Øyvind Fjell Start Date 1 Dec 2007 Investment Objective Delphi Nordic is an open-end UCITS fund incorporated in Norway. The Fund's objective is to generate strong capital growth through a long-only and unconstrained approach, investing in small, medium and large caps. The Fund invests its assets in a concentrated portfolio of equities (30 40 positions) selected from across the Nordic region. The benchmark is the VINX Benchmark Cap Net Index. Applicable to nominees Please note that you have to apply for an approval from the Finanstilsynet (Financial Supervisory Authority of Norway) to act as a nominee, ref. the Norwegian nominee regulation of 18 December 2003 nr Certain duties arise in connection with the approval to act as a nominee including registration of information about the beneficial owner and reporting of holdingand realisation information to the Norwegian authorities regarding beneficial owners who are liable to Norwegian taxation. Contact information Enquiries Kurt Hauge Head of Intl. Sales & Distribution Tel kurt.hauge@delphi.no Arne Fredrik Håstein Director Sales & Distribution Tel arne.fredrik.hastein@delphi.no Contact Details Postal address: Delphi Fondene Professor Kohts vei 9 P.O. Box 484, NO-1327 Lysaker Internet: Sustainable investments At Delphi we seek to avoid investing in companies that are involved in unsustainable practices and to influence all companies to make constant improvements. We use Storebrand s in-house sustainable investment team to monitor and analyse the companies in our portfolio and have developed a strict standard for our investments. holders realised gains or losses will therefore depend on the actual timing of subscriptions or redemptions. * A 20 bps fee may be levied on subscriptions above NOK 2 millions (dilution levy). 8

9 Cover Photo: Colourbox Address: Professor Kohts vei 9 Tel.: Org.no.: Delphi Funds P.O. Box 484, 1327 Lysaker, NORWAY contact@delphi.no part of Storebrand Asset Management AS Disclaimer: - The information herein is intended for investors in Norway, Sweden, Finland and the Netherlands, as well as institutional investors and professional investors outside the countries mentioned. Private investors in Sweden, Finland and the Netherlands, may only purchase our funds through distribution platforms. - Historical performance is no guarantee for future returns. Future returns depend on the market, fund manager skill, fund risk level, costs, among others. Performance may become negative due to losses and it may vary considerably within periods. Unit holder s realized gain or loss will therefore depend on the actual timing of subscription and redemption.

August MONTHLY REPORT

August MONTHLY REPORT August 2014 MONTHLY REPORT Comment Delphi Global Delphi Europe Delphi Nordic p. 2 p. 3 p. 5 p. 7 1 Emerging optimism July was a more mixed month in the stock markets. Emerging economies distinguished themselves