Audited Annual Report 2016 Nordea 1, SICAV

Transcription

1 Audited Annual Report 2016 Nordea 1, SICAV Société d Investissement à Capital Variable à compartiments multiples Investment Fund under Luxembourg Law 562, rue de Neudorf L-2220 Luxembourg Grand Duchy of Luxembourg R.C.S. number: Luxembourg B-31442

2 No subscriptions can be received on the basis of these financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual report and the most recent semi-annual report, if published thereafter.

3 Table of Contents Report of the Board of Directors 3 Audit Report 6 Statement of Net Assets as of 31/12/ Statement of Operations and Changes in Net Assets for the year ended 31/12/ Statement of Statistics as at 31/12/ Statement of Investments in Securities and Other Net Assets as of 31/12/2016 Nordea 1 - African Equity Fund 65 Nordea 1 - Alpha Nordea 1 - Asian Focus Equity Fund 74 Nordea 1 - Chinese Equity Fund 76 Nordea 1 - Danish Bond Fund 77 Nordea 1 - Danish Kroner Reserve 78 Nordea 1 - Danish Mortgage Bond Fund 79 Nordea 1 - Emerging Consumer Fund 82 Nordea 1 - Emerging Market Bond Fund 84 Nordea 1 - Emerging Market Bond Opportunities Fund (Formerly Nordea 1 - Emerging Market Blend Bond Fund) 90 Nordea 1 - Emerging Market Corporate Bond Fund 97 Nordea 1 - Emerging Market Hard Currency Bond Fund 100 Nordea 1 - Emerging Market Local Debt Fund 105 Nordea 1 - Emerging Market Local Debt Fund Plus 110 Nordea 1 - Emerging Markets Focus Equity Fund 114 Nordea 1 - Emerging Markets Small Cap Fund 116 Nordea 1 - Emerging Stars Equity Fund 118 Nordea 1 - European Corporate Bond Fund 120 Nordea 1 - European Corporate Bond Fund Plus 124 Nordea 1 - European Covered Bond Fund 128 Nordea 1 - European Cross Credit Fund 132 Nordea 1 - European Diversifi ed Corporate Bond Fund 134 Nordea 1 - European Financial Debt Fund 139 Nordea 1 - European Focus Equity Fund 142 Nordea 1 - European High Yield Bond Fund 143 Nordea 1 - European High Yield Bond Fund II 147 Nordea 1 - European Small and Mid Cap Equity Fund 151 Nordea 1 - European Value Fund 153 Nordea 1 - Flexible Fixed Income Fund 155 Nordea 1 - Flexible Fixed Income Plus Fund (Formerly Nordea 1 - European Low CDS Government Bond Fund) 162 Nordea 1 - GBP Diversifi ed Return Fund 166 Nordea 1 - Global Bond Fund 172 Nordea 1 - Global Climate and Environment Fund (Formerly Nordea 1 - Climate and Environment Equity Fund) 175 Nordea 1 - Global Dividend Fund 176 Nordea 1 - Global High Yield Bond Fund 178 Nordea 1 - Global Ideas Equity Fund 182 Nordea 1 - Global Long Short Equity Fund - USD Hedged 184 Nordea 1 - Global Opportunity Fund 190 Nordea 1 - Global Portfolio Fund 192 Nordea 1 - Global Real Estate Fund 193 Nordea 1 - Global Small Cap Fund 194 Nordea 1 - Global Stable Equity Fund (Formerly Nordea 1 - Global Stable Equity Fund - Unhedged) 196 Nordea 1 - Global Stable Equity Fund - Euro Hedged 199 Nordea 1 - Global Stars Equity Fund 202 Nordea 1 - Heracles Long/Short MI Fund 205 Nordea 1 - Indian Equity Fund 208 Nordea 1 - International High Yield Bond Fund - USD Hedged 210 Nordea 1 - Latin American Equity Fund 216 Nordea 1 - Low Duration US High Yield Bond Fund 218 Nordea 1 - Multi-Asset Fund 221 Nordea 1 - Nordic Equity Fund 228 Nordea 1 - Nordic Equity Small Cap Fund 229 Nordea 1 - Nordic Ideas Equity Fund 232 Nordea 1 - Nordic Stars Equity Fund 233 Nordea 1 - North American All Cap Fund 234 1

4 Table of Contents (continued) Nordea 1 - North American High Yield Bond Fund 235 Nordea 1 - North American Small Cap Fund 240 Nordea 1 - North American Value Fund 243 Nordea 1 - Norwegian Bond Fund 244 Nordea 1 - Norwegian Equity Fund 246 Nordea 1 - Norwegian Kroner Reserve 247 Nordea 1 - Renminbi High Yield Bond Fund 249 Nordea 1 - Stable Emerging Markets Equity Fund 251 Nordea 1 - Stable Equity Long/Short Fund - Euro Hedged (Formerly Nordea 1 - Stable Equity Long/Short Fund) 253 Nordea 1 - Stable Return Fund 258 Nordea 1 - Swedish Bond Fund 266 Nordea 1 - Swedish Kroner Reserve 267 Nordea 1 - Unconstrained Bond Fund - USD Hedged (Formerly Nordea 1 - Unconstrained Bond Fund) 268 Nordea 1 - US Bond Opportunities Fund (Formerly Nordea 1 - US Core Plus Bond Fund) 272 Nordea 1 - US Corporate Bond Fund 275 Nordea 1 - US High Yield Bond Fund 281 Nordea 1 - US Total Return Bond Fund 284 Notes to the Financial Statements as of 31/12/ Shareholder s Information 308 Risk Transparency disclosures (unaudited) 308 Remuneration disclosures (unaudited) 311 Disclosures under the Securities Financing Transaction Regulation (unaudited) 311 Organisation 333 Administration 334 Public Marketing Authorisations 335 Representatives & Paying & Information Agents outside Luxembourg 336 Legal Advisor 338 Auditor 338 2

5 Report of the Board of Directors The Chairman s report 2016 was a successful year for Nordea 1, SICAV with the investment returns and net inflows continuing to develop in a positive direction. There was, however, big dispersion in the results, with a few sub-funds posting negative return for a full year. Nordea 1, SICAV experienced in total a strong AuM growth of 18.7bn EUR, ending the year with a total asset base of 59.9bn EUR, allocated across its 72 sub-funds. The AuM increase consists of 15.4bn EUR net inflows and 3.3bn EUR positive return on the investments was in many ways a turbulent and eventful year. It was characteristic for the year that early fear prior to big political events did not materialize. This was especially the case with the two major political events: the referendum on Britain s EU membership and the US presidential elections. The positive reaction to the US elections result paved the way for the US-central bank to raise interest rates to 0.75 per cent in December. This also made 2016 a year in which the US economy got cyclically distanced from the world s other major developed economies, where growth prospects are still markedly weaker. Global equities rose overall by 9 per cent, while the government and mortgage bonds across the board also ended in positive territory. Commodity and especially oil prices also rose and came back from their extremely low levels. Looking at Europe, the political development undermined the positive trends, causing uncertainty among investors. The result of the referendum on Britain s EU membership meant that the pound was sharply weakened compared to both the US dollar and the euro. The US dollar declined sharply up to the presidential elections, and rebound after the appointment of Donald Trump. In the Far East there were also positive signs from both China and India. The majority of investors in China seem convinced that the country can maintain its growth at a high level, albeit lower than before. Again in 2016, oil prices were in focus. In December, OPEC countries and Russia agreed to cut the overproduction of oil, sending the prices up and ended the year at around 54 US dollars per barrel. This had a positive effect on stocks and bonds in both the energy and commodity sectors. With increases of 59 per cent and 34 per cent Russia and Latin America were the two regions, where investors had the largest equity returns. Russia benefited from rising oil prices and the stock market came from a very low level, because of large declines in recent years. The Latin American markets also benefited from the increasing commodity prices, especially oil, which had a positive effect on equities. Because of the political uncertainty up to the referendum on Britain s EU membership and in the months following, investors perceived highly rated government bonds as a safe haven. This meant that the German 10-year government bonds for the first time in history had negative interest rates. The declining default rate, which came with raw material price increases, resulted in positive returns on corporate bonds in general, both in the US and Europe. In the equity markets, returns diverged. Global Equities (MSCI World) returned 11% measured in EURO. On the positive side, US and emerging markets equities returned 15% (S&P 500 and MSCI Emerging Markets), while European equities posted a return of around 3%. The performance of the financial markets translated into satisfactory returns for the sub-funds of Nordea 1, SICAV. The relative performance of our equity funds was varied. The Stable Return Fund remained the largest sub-fund of the umbrella by more than doubling its AuM with 10.4bn EUR closing the year at 18.4bn EUR. European High Yield Bond Fund remained the strong number two this year as well and another fund showing strong inflow of capital was the Flexible Fixed Income Fund. In 2016 Nordea 1, SICAV launched 3 new sub-funds (the US Bond Opportunities Fund, the Global Stars Equity Fund and the Global Long Short Equity Fund - USD Hedged). At the Annual General Meeting of Shareholders, the Board of Directors will propose that, for the financial year 2016, Nordea 1, SICAV pays the following dividends: Sub-fund name Share class Currency (*) Amount per share Nordea 1 - Alpha 15 AP EUR Nordea 1 - Asian Focus Equity Fund AP USD Nordea 1 - Danish Mortgage Bond Fund AI DKK Nordea 1 - Danish Mortgage Bond Fund AP DKK Nordea 1 - Danish Mortgage Bond Fund HAI - EUR DKK Nordea 1 - Emerging Consumer Fund AI EUR Nordea 1 - Emerging Consumer Fund AP EUR Nordea 1 - Emerging Market Bond Fund AI USD Nordea 1 - Emerging Market Bond Fund AP USD Nordea 1 - Emerging Market Bond Fund HA - EUR USD Nordea 1 - Emerging Market Bond Fund HAI - EUR USD Nordea 1 - Emerging Market Corporate Bond Fund AP USD Nordea 1 - Emerging Market Local Debt Fund AI USD Nordea 1 - Emerging Stars Equity Fund AI USD Nordea 1 - Emerging Stars Equity Fund AP USD Nordea 1 - European Corporate Bond Fund AI EUR Nordea 1 - European Corporate Bond Fund AX EUR Nordea 1 - European Covered Bond Fund AI EUR

6 Report of the Board of Directors (continued) Sub-fund name Share class Currency (*) Amount per share Nordea 1 - European Covered Bond Fund AP EUR Nordea 1 - European Cross Credit Fund AC EUR Nordea 1 - European Cross Credit Fund AI EUR Nordea 1 - European Cross Credit Fund AP EUR Nordea 1 - European Cross Credit Fund HAI - USD EUR Nordea 1 - European Financial Debt Fund AI EUR Nordea 1 - European Financial Debt Fund AP EUR Nordea 1 - European High Yield Bond Fund AC EUR Nordea 1 - European High Yield Bond Fund AI EUR Nordea 1 - European High Yield Bond Fund AP EUR Nordea 1 - European High Yield Bond Fund HAC - GBP EUR Nordea 1 - European High Yield Bond Fund HAC - USD EUR Nordea 1 - European High Yield Bond Fund HA - GBP EUR Nordea 1 - European High Yield Bond Fund HAI - GBP EUR Nordea 1 - European High Yield Bond Fund HAI - USD EUR Nordea 1 - European High Yield Bond Fund HA -USD EUR Nordea 1 - European Small and Mid Cap Equity Fund AP EUR Nordea 1 - European Value Fund AC EUR Nordea 1 - European Value Fund AP EUR Nordea 1 - Flexible Fixed Income Fund AI EUR Nordea 1 - Flexible Fixed Income Fund AP EUR Nordea 1 - Flexible Fixed Income Fund HA - USD EUR Nordea 1 - GBP Diversified Return Fund AC GBP Nordea 1 - GBP Diversified Return Fund AI GBP Nordea 1 - Global Bond Fund AP EUR Nordea 1 - Global Climate and Environment Fund AP EUR Nordea 1 - Global Dividend Fund AI USD Nordea 1 - Global Dividend Fund AP USD Nordea 1 - Global Ideas Equity Fund AP USD Nordea 1 - Global Ideas Equity Fund HA - EUR USD Nordea 1 - Global Long Short Equity Fund - USD Hedged (Note 1a) HA - EUR USD Nordea 1 - Global Stable Equity Fund (Note 1b) AC EUR Nordea 1 - Global Stable Equity Fund (Note 1b) AI EUR Nordea 1 - Global Stable Equity Fund (Note 1b) AP EUR Nordea 1 - Global Stable Equity Fund - Euro Hedged AI EUR Nordea 1 - Global Stable Equity Fund - Euro Hedged AP EUR Nordea 1 - Heracles Long/Short MI Fund AI EUR 0,0000 Nordea 1 - Heracles Long/Short MI Fund AP EUR 0,0000 Nordea 1 - Latin American Equity Fund AP EUR Nordea 1 - Low Duration US High Yield Bond Fund AP USD Nordea 1 - Low Duration US High Yield Bond Fund HA - EUR USD Nordea 1 - Low Duration US High Yield Bond Fund HAI - EUR USD Nordea 1 - Multi-Asset Fund AP EUR Nordea 1 - Nordic Equity Fund AC EUR Nordea 1 - Nordic Equity Fund AP EUR Nordea 1 - Nordic Equity Small Cap Fund AP EUR Nordea 1 - Nordic Ideas Equity Fund AP EUR Nordea 1 - North American All Cap Fund AI USD Nordea 1 - North American All Cap Fund AP USD Nordea 1 - North American All Cap Fund HA - EUR USD Nordea 1 - North American Value Fund AP USD Nordea 1 - North American Value Fund HA - EUR USD 0,0000 Nordea 1 - Norwegian Bond Fund AC NOK Nordea 1 - Norwegian Bond Fund AP NOK Nordea 1 - Norwegian Equity Fund AP NOK Nordea 1 - Norwegian Kroner Reserve AC NOK Nordea 1 - Norwegian Kroner Reserve AP NOK Nordea 1 - Renminbi High Yield Bond Fund AP CNH

7 Report of the Board of Directors (continued) Sub-fund name Share class Currency (*) Amount per share Nordea 1 - Stable Emerging Markets Equity Fund AC USD Nordea 1 - Stable Emerging Markets Equity Fund AI USD Nordea 1 - Stable Emerging Markets Equity Fund AX USD Nordea 1 - Stable Equity Long/Short Fund - Euro Hedged (Note 1b) AP EUR Nordea 1 - Stable Return Fund AC EUR Nordea 1 - Stable Return Fund AI EUR Nordea 1 - Stable Return Fund AP EUR Nordea 1 - Stable Return Fund HAC - GBP EUR Nordea 1 - Stable Return Fund HAI - GBP EUR Nordea 1 - Stable Return Fund HAI - SEK EUR Nordea 1 - Stable Return Fund HAI - USD EUR Nordea 1 - Stable Return Fund HA - NOK EUR Nordea 1 - Swedish Bond Fund AC SEK Nordea 1 - Swedish Bond Fund AP SEK Nordea 1 - Unconstrained Bond Fund - USD Hedged (Note1b) AP USD Nordea 1 - US Bond Opportunities Fund (Note 1a&b) AP USD Nordea 1 - US Bond Opportunities Fund (Note 1a&b) HA - EUR USD Nordea 1 - US Corporate Bond Fund AI USD Nordea 1 - US Corporate Bond Fund AP USD Nordea 1 - US Corporate Bond Fund HA - EUR USD Nordea 1 - US Corporate Bond Fund HAI - EUR USD Nordea 1 - US Corporate Bond Fund HAI - GBP USD Nordea 1 - US High Yield Bond Fund AI USD Nordea 1 - US Total Return Bond Fund AC USD Nordea 1 - US Total Return Bond Fund AI USD Nordea 1 - US Total Return Bond Fund AP USD Nordea 1 - US Total Return Bond Fund HAC - GBP USD Nordea 1 - US Total Return Bond Fund HA - EUR USD Nordea 1 - US Total Return Bond Fund HA - GBP USD Nordea 1 - US Total Return Bond Fund HAI -EUR USD Nordea 1 - US Total Return Bond Fund HAI - GBP USD (*) These dividend amounts are expressed in base currency of the relevant Sub-fund and will be converted into the currency of the relevant Share Class at ex-date. The Board would again like to thank all stakeholders involved in the management of Nordea 1, SICAV for their contribution in In this spirit of commitment and motivation, the board looks forward to continue to service shareholders the best possible way also in February 07, 2017 André Roelants Performances are historical and are not necessarily an indication of present or future results. 5

8 _&- pwc AUDIT REPORT To the Shareholders of Nordea 1, SICAV We have audited the accompanying financial statements of Nordea 1, SICAV and of each of its sub-funds, which comprise the statement oj net assets and the statement of investments in securities and other net assets as at 31 December and the statement oj operations and changes in net assets for ihe year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the SICAV for the financial statements The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these linancial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and lor such internal confol as the Board of Directors of the SICAV determines is necessary to enable the preparation of linancial statements that are free from material misstatemenl whether due to fraud or error. Responsibility of the "Rdviseur d'entreprises agr66' Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with Intemational Standards on Auditing as adopted for Luxembourg by the'commission de Surveillance du Secteur Financief. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatemenl An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of ihe "R6viseur d'entreprises ag166', including the assessmenl of the risks of material misstatement of tho financial statements, whether due to lraud or enor. ln making those risk assessments, the "R6viseur d'entreprises ag166o considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expresslng an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policles used and the reasonableness of accounting estimates made by the Board of Directors of the SICAV. as well as evaluating the overall oresentatlon of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the Jinancial position of Nordea 1, SICAV and of each of its sub-funds as of 31 December20l6,andof theresultsof theiroperationsandchangesintheirnetassetsfortheyearthenendedinaccordancewithluxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other information The Board of Directors of the SICAV is resoonsible Jor the other information. The other information comprises the information included in the annual reoort but does not include the financial statements and our audit report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other injormation and, In doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or othenrvise appears to be materially misstated. lf. based on the work we have oerformed. we conclude that there is a material misstatement of this other inlormation, we are required to report lhis fact We have nothing to report in lhis regard. PricewaterhouseCoopers, Represented by Soci6t6 coop6rative Luxembourg, 76 March 2017 PricewaterhousecmpeF, Sei6t6 c@pdrative, 2 rue Gerhtrd Mer tor, B.F 1443, L-1014 Luxembourg T: ,Ft+3' , ww,pwdu Cabinet de r6vision agr66. Expsrtrompiable (autorisation gowemementale no ) RC.S Luxembourg B TVA LU Nordea 1, SICAV - Audited Annual Report 2O16

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10 Statement of Net Assets as of 31/12/2016 Combined Statement Nordea 1 - African Equity Fund Nordea 1 - Alpha 15 (in EUR) (in EUR) (in EUR) Assets Shares portfolio at market value (Note 2) 27,247,726, ,439, ,465, Funds portfolio at market value (Note 2) 194,462, Bonds portfolio at market value (Note 2) 30,193,502, ,625, Cash at banks 2,529,278, ,565, ,814, Dividends and interest receivable 337,476, ,265, Receivable for investments sold 35,376, Receivable for subscribed shares 112,552, , , Receivable on forward foreign exchange contracts 248, Net other receivable 75,820, Unrealised gain on contracts for difference (Note 2) 42,102, ,259, Credit default swaps at cost (Note 2) 29,024, Unrealised gain on credit default swaps (Note 2) 3,865, Unrealised gain on futures (Note 2) 12,380, Unrealised gain on futures already cashed (Note 2) 21,326, ,503, Unrealised gain on interest rate swaps (Note 2) 1,988, Unrealised gain on total return swaps (Note 2) Unrealised gain on forward foreign exchange contracts (Note 2) 32,721, Unrealised gain on foreign currencies receivables and payables (Note 2) 428, ,870,282, ,110, ,619, Liabilities Accrued fees 171,725, , , Overdraft at banks 10, Interest payable 10, Payable on forward foreign exchange contracts 248, Payable for investments purchased 68,083, Payable for redeemed shares 78,129, , , Net other payable Credit default swaps at cost (Note 2) 16,920, Unrealised loss on credit default swaps (Note 2) 2,797, Unrealised loss on futures (Note 2) 77, , Unrealised loss on futures already cashed (Note 2) 111,029, Unrealised loss on interest rate swaps (Note 2) 663, Unrealised loss on forward foreign exchange contracts (Note 2) 493,391, ,995, Unrealised loss on foreign currencies receivables and payables (Note 2) 46, , ,134, , ,087, Total net assets - unswung 59,927,147, ,702, ,531, Add/(deduct) swing adjustment 4,463, Total net assets - swung 59,931,611, ,702, ,531, Portfolio at acquisition cost 55,243,535, ,664, ,191,

11 Nordea 1 - Asian Focus Equity Fund Nordea 1 - Chinese Equity Fund Nordea 1 - Danish Bond Fund Nordea 1 - Danish Kroner Reserve Nordea 1 - Danish Mortgage Bond Fund (in USD) (in USD) (in DKK) (in DKK) (in DKK) 82,223, ,690, ,139, ,857, ,930, ,939, ,580,109, , ,160, ,941, ,567, ,742, , , , , ,463, , , , , ,036, ,626, , ,969, ,608, ,366, , , ,446, ,767, ,167, ,282, ,833,303, , , , , ,181, , , , , , , , ,425, , , ,275, , , , ,743, ,170, ,477, ,794, ,020, ,819,559, ,170, ,477, ,794, ,020, ,819,559, ,164, ,784, ,857, ,383, ,527,473,

12 Statement of Net Assets as of 31/12/2016 Nordea 1 - Emerging Consumer Fund Nordea 1 - Emerging Market Bond Fund Nordea 1 - Emerging Market Bond Opportunities Fund (Note 1b) (in EUR) (in USD) (in USD) Assets Shares portfolio at market value (Note 2) 118,350, , Funds portfolio at market value (Note 2) Bonds portfolio at market value (Note 2) - 894,943, ,240, Cash at banks 1,003, ,985, ,433, Dividends and interest receivable 76, ,401, ,555, Receivable for investments sold Receivable for subscribed shares 18, ,343, , Receivable on forward foreign exchange contracts Net other receivable Unrealised gain on contracts for difference (Note 2) Credit default swaps at cost (Note 2) Unrealised gain on credit default swaps (Note 2) Unrealised gain on futures (Note 2) Unrealised gain on futures already cashed (Note 2) Unrealised gain on interest rate swaps (Note 2) Unrealised gain on total return swaps (Note 2) Unrealised gain on forward foreign exchange contracts (Note 2) Unrealised gain on foreign currencies receivables and payables (Note 2) - 15, ,449, ,688, ,234, Liabilities Accrued fees 516, ,919, , Overdraft at banks Interest payable Payable on forward foreign exchange contracts Payable for investments purchased - 5,849, Payable for redeemed shares 25, ,754, , Net other payable Credit default swaps at cost (Note 2) Unrealised loss on credit default swaps (Note 2) Unrealised loss on futures (Note 2) Unrealised loss on futures already cashed (Note 2) Unrealised loss on interest rate swaps (Note 2) Unrealised loss on forward foreign exchange contracts (Note 2) - 14,105, , Unrealised loss on foreign currencies receivables and payables (Note 2) , ,629, , Total net assets - unswung 118,907, ,058, ,502, Add/(deduct) swing adjustment Total net assets - swung 118,907, ,058, ,502, Portfolio at acquisition cost 108,389, ,218, ,790,

13 Nordea 1 - Emerging Market Corporate Bond Fund Nordea 1 - Emerging Market Hard Currency Bond Fund Nordea 1 - Emerging Market Local Debt Fund Nordea 1 - Emerging Market Local Debt Fund Plus Nordea 1 - Emerging Markets Focus Equity Fund (in USD) (in USD) (in USD) (in USD) (in USD) ,419, ,492, ,174, ,281, ,545, ,492, ,361, ,271, ,426, , ,491, ,713, ,556, , , ,283, , , , , , , , , , ,815, ,261, ,355, ,820, ,886, , , , , , , , , , ,728, ,468, , , ,232, ,625, , , , ,582, ,636, ,991, ,211, ,718, ,582, ,636, ,991, ,211, ,718, ,650, ,209, ,226, ,157, ,292,

14 Statement of Net Assets as of 31/12/2016 Nordea 1 - Emerging Markets Small Cap Fund Nordea 1 - Emerging Stars Equity Fund Nordea 1 - European Corporate Bond Fund (in USD) (in USD) (in EUR) Assets Shares portfolio at market value (Note 2) 96,303, ,829,457, Funds portfolio at market value (Note 2) 979, Bonds portfolio at market value (Note 2) ,519, Cash at banks 10,504, ,330, ,569, Dividends and interest receivable 218, ,438, ,147, Receivable for investments sold 1,071, ,286, , Receivable for subscribed shares 6, ,695, , Receivable on forward foreign exchange contracts Net other receivable - 1, Unrealised gain on contracts for difference (Note 2) Credit default swaps at cost (Note 2) - - 1,874, Unrealised gain on credit default swaps (Note 2) Unrealised gain on futures (Note 2) Unrealised gain on futures already cashed (Note 2) Unrealised gain on interest rate swaps (Note 2) Unrealised gain on total return swaps (Note 2) Unrealised gain on forward foreign exchange contracts (Note 2) - - 5,681, Unrealised gain on foreign currencies receivables and payables (Note 2) - 9, ,083, ,857,219, ,273, Liabilities Accrued fees 69, ,439, ,032, Overdraft at banks Interest payable Payable on forward foreign exchange contracts Payable for investments purchased 10,737, ,570, ,455, Payable for redeemed shares 18, , , Net other payable Credit default swaps at cost (Note 2) Unrealised loss on credit default swaps (Note 2) , Unrealised loss on futures (Note 2) Unrealised loss on futures already cashed (Note 2) Unrealised loss on interest rate swaps (Note 2) Unrealised loss on forward foreign exchange contracts (Note 2) Unrealised loss on foreign currencies receivables and payables (Note 2) 11, ,836, ,842, ,097, Total net assets - unswung 98,247, ,839,377, ,176, Add/(deduct) swing adjustment Total net assets - swung 98,247, ,839,377, ,176, Portfolio at acquisition cost 90,992, ,745,494, ,077,

15 Nordea 1 - European Corporate Bond Fund Plus Nordea 1 - European Covered Bond Fund Nordea 1 - European Cross Credit Fund Nordea 1 - European Diversified Corporate Bond Fund Nordea 1 - European Financial Debt Fund (in EUR) (in EUR) (in EUR) (in EUR) (in EUR) 84,117, ,315, ,065,895, ,633, ,494, ,336, ,393, ,168, , ,952, ,323, ,197, ,097, ,235, ,421, , , ,383, , , , , , , , , ,834, ,229, ,761, ,315, ,102,379, ,398, ,962, , ,305, ,378, , , , , ,010, , , , , , , , , , , , ,679, , ,122, ,198, , ,671, ,964, ,192, ,099,181, ,159, ,291, ,964, ,192, ,099,181, ,159, ,291, ,397, ,519, ,044,227, ,252, ,185,

16 Statement of Net Assets as of 31/12/2016 Nordea 1 - European Focus Equity Fund Nordea 1 - European High Yield Bond Fund Nordea 1 - European High Yield Bond Fund II (in EUR) (in EUR) (in EUR) Assets Shares portfolio at market value (Note 2) 152,860, Funds portfolio at market value (Note 2) Bonds portfolio at market value (Note 2) - 4,046,773, ,796, Cash at banks 1,814, ,918, ,125, Dividends and interest receivable 41, ,434, ,246, Receivable for investments sold Receivable for subscribed shares 67, ,006, , Receivable on forward foreign exchange contracts Net other receivable , Unrealised gain on contracts for difference (Note 2) Credit default swaps at cost (Note 2) - 25,498, Unrealised gain on credit default swaps (Note 2) - 3,241, , Unrealised gain on futures (Note 2) - 8, Unrealised gain on futures already cashed (Note 2) Unrealised gain on interest rate swaps (Note 2) Unrealised gain on total return swaps (Note 2) Unrealised gain on forward foreign exchange contracts (Note 2) Unrealised gain on foreign currencies receivables and payables (Note 2) ,784, ,636,881, ,152, Liabilities Accrued fees 296, ,576, , Overdraft at banks Interest payable Payable on forward foreign exchange contracts Payable for investments purchased Payable for redeemed shares - 9,703, , Net other payable Credit default swaps at cost (Note 2) - - 1,247, Unrealised loss on credit default swaps (Note 2) Unrealised loss on futures (Note 2) Unrealised loss on futures already cashed (Note 2) - 92, Unrealised loss on interest rate swaps (Note 2) Unrealised loss on forward foreign exchange contracts (Note 2) - 16,404, ,856, Unrealised loss on foreign currencies receivables and payables (Note 2) , ,776, ,223, Total net assets - unswung 154,487, ,601,105, ,929, Add/(deduct) swing adjustment - - 4,463, Total net assets - swung 154,487, ,601,105, ,393, Portfolio at acquisition cost 148,973, ,012,922, ,839,

17 Nordea 1 - European Small and Mid Cap Equity Fund Nordea 1 - European Value Fund Nordea 1 - Flexible Fixed Income Fund Nordea 1 - Flexible Fixed Income Plus Fund (Note 1b) Nordea 1 - GBP Diversified Return Fund (in EUR) (in EUR) (in EUR) (in EUR) (in GBP) 393,943, ,095,555, ,931, ,656, ,278, ,978, ,811,049, ,386, ,887, ,652, ,389, ,789, ,183, ,559, , , ,533, , ,242, , , , ,303, ,162, , , ,976, , ,868, , , , ,584, , ,025, ,319,957, ,070,092, ,785, ,753, ,689, ,980, ,053, , ,098, ,252, ,580, , , ,372, , , ,467, , ,229, ,691, , ,457, ,854, , , , ,458, ,758, ,921, , ,186, ,566, ,314,198, ,002,170, ,023, ,566, ,566, ,314,198, ,002,170, ,023, ,566, ,989, ,840, ,955,348, ,382, ,280,

18 Statement of Net Assets as of 31/12/2016 Nordea 1 - Global Bond Fund Nordea 1 - Global Climate and Environment Fund (Note 1b) Nordea 1 - Global Dividend Fund (in EUR) (in EUR) (in USD) Assets Shares portfolio at market value (Note 2) - 141,685, ,512, Funds portfolio at market value (Note 2) Bonds portfolio at market value (Note 2) 138,588, Cash at banks 8,153, ,490, , Dividends and interest receivable 1,114, , , Receivable for investments sold Receivable for subscribed shares 252, , , Receivable on forward foreign exchange contracts Net other receivable - 1, Unrealised gain on contracts for difference (Note 2) Credit default swaps at cost (Note 2) Unrealised gain on credit default swaps (Note 2) Unrealised gain on futures (Note 2) 3, Unrealised gain on futures already cashed (Note 2) 21, Unrealised gain on interest rate swaps (Note 2) Unrealised gain on total return swaps (Note 2) Unrealised gain on forward foreign exchange contracts (Note 2) Unrealised gain on foreign currencies receivables and payables (Note 2) ,133, ,174, ,391, Liabilities Accrued fees 247, , , Overdraft at banks Interest payable Payable on forward foreign exchange contracts Payable for investments purchased - 596, Payable for redeemed shares 283, , , Net other payable Credit default swaps at cost (Note 2) Unrealised loss on credit default swaps (Note 2) Unrealised loss on futures (Note 2) Unrealised loss on futures already cashed (Note 2) Unrealised loss on interest rate swaps (Note 2) Unrealised loss on forward foreign exchange contracts (Note 2) 116, Unrealised loss on foreign currencies receivables and payables (Note 2) , ,191, , Total net assets - unswung 147,485, ,983, ,063, Add/(deduct) swing adjustment Total net assets - swung 147,485, ,983, ,063, Portfolio at acquisition cost 136,965, ,093, ,795,

19 Nordea 1 - Global High Yield Bond Fund Nordea 1 - Global Ideas Equity Fund Nordea 1 - Global Long Short Equity Fund - USD Hedged (Note 1a) Nordea 1 - Global Opportunity Fund Nordea 1 - Global Portfolio Fund (in USD) (in USD) (in USD) (in EUR) (in EUR) - 26,670, ,508, ,884, ,850, ,622, ,541, ,042, ,194, ,065, ,246, ,576, , , , , , ,451, , ,754, ,733, ,801, ,166, ,000, , , , , ,310, , , ,028, , , , , ,987, , , , ,274, , , ,185, ,683, ,479, ,528, ,468, ,980, ,316, ,479, ,528, ,468, ,980, ,316, ,259, ,200, ,159, ,492, ,913,

20 Statement of Net Assets as of 31/12/2016 Nordea 1 - Global Real Estate Fund Nordea 1 - Global Small Cap Fund Nordea 1 - Global Stable Equity Fund (Note 1b) (in USD) (in USD) (in EUR) Assets Shares portfolio at market value (Note 2) 522,999, ,084, ,693,900, Funds portfolio at market value (Note 2) Bonds portfolio at market value (Note 2) Cash at banks 14,654, ,443, ,129, Dividends and interest receivable 2,005, , ,986, Receivable for investments sold 657, ,170, Receivable for subscribed shares 1,229, ,525, ,764, Receivable on forward foreign exchange contracts Net other receivable - - 5, Unrealised gain on contracts for difference (Note 2) Credit default swaps at cost (Note 2) Unrealised gain on credit default swaps (Note 2) Unrealised gain on futures (Note 2) Unrealised gain on futures already cashed (Note 2) Unrealised gain on interest rate swaps (Note 2) Unrealised gain on total return swaps (Note 2) Unrealised gain on forward foreign exchange contracts (Note 2) , Unrealised gain on foreign currencies receivables and payables (Note 2) 8, , ,555, ,475, ,729,202, Liabilities Accrued fees 2,050, ,116, ,728, Overdraft at banks Interest payable Payable on forward foreign exchange contracts Payable for investments purchased 131, , ,121, Payable for redeemed shares 75, , ,465, Net other payable Credit default swaps at cost (Note 2) Unrealised loss on credit default swaps (Note 2) Unrealised loss on futures (Note 2) Unrealised loss on futures already cashed (Note 2) Unrealised loss on interest rate swaps (Note 2) Unrealised loss on forward foreign exchange contracts (Note 2) Unrealised loss on foreign currencies receivables and payables (Note 2) - - 3, ,258, ,551, ,318, Total net assets - unswung 539,296, ,923, ,718,883, Add/(deduct) swing adjustment Total net assets - swung 539,296, ,923, ,718,883, Portfolio at acquisition cost 528,320, ,503, ,337,862,

21 Nordea 1 - Global Stable Equity Fund - Euro Hedged Nordea 1 - Global Stars Equity Fund (Note 1a) Nordea 1 - Heracles Long/ Short MI Fund Nordea 1 - Indian Equity Fund Nordea 1 - International High Yield Bond Fund - USD Hedged (in EUR) (in USD) (in EUR) (in USD) (in USD) 1,664,394, ,295, ,558, ,195, ,275, ,367, ,450, , ,785, ,479, ,693, ,224, , ,064, ,350, ,125, , , , , , , , ,659, ,695,796, ,888, ,025, ,059, ,393, ,069, , , , , , , , , ,944, , , ,645, , , , ,887, , ,637, , ,207, , ,330, ,676,159, ,756, ,817, ,840, ,063, ,676,159, ,756, ,817, ,840, ,063, ,469,732, ,179, ,044, ,480, ,165,

22 Statement of Net Assets as of 31/12/2016 Nordea 1 - Latin American Equity Fund Nordea 1 - Low Duration US High Yield Bond Fund Nordea 1 - Multi-Asset Fund (in EUR) (in USD) (in EUR) Assets Shares portfolio at market value (Note 2) 65,120, ,968, Funds portfolio at market value (Note 2) Bonds portfolio at market value (Note 2) - 633,882, ,118, Cash at banks 604, ,607, ,361, Dividends and interest receivable 230, ,980, ,275, Receivable for investments sold 75, , Receivable for subscribed shares 496, , ,303, Receivable on forward foreign exchange contracts Net other receivable - - 3, Unrealised gain on contracts for difference (Note 2) - - 6,042, Credit default swaps at cost (Note 2) Unrealised gain on credit default swaps (Note 2) Unrealised gain on futures (Note 2) - 46, , Unrealised gain on futures already cashed (Note 2) - 292, ,496, Unrealised gain on interest rate swaps (Note 2) Unrealised gain on total return swaps (Note 2) Unrealised gain on forward foreign exchange contracts (Note 2) Unrealised gain on foreign currencies receivables and payables (Note 2) 5, , ,532, ,628, ,817, Liabilities Accrued fees 234, , ,531, Overdraft at banks Interest payable Payable on forward foreign exchange contracts Payable for investments purchased 269, , Payable for redeemed shares 64, , , Net other payable Credit default swaps at cost (Note 2) Unrealised loss on credit default swaps (Note 2) Unrealised loss on futures (Note 2) Unrealised loss on futures already cashed (Note 2) Unrealised loss on interest rate swaps (Note 2) Unrealised loss on forward foreign exchange contracts (Note 2) 7, ,653, ,463, Unrealised loss on foreign currencies receivables and payables (Note 2) , ,786, ,693, Total net assets - unswung 65,956, ,841, ,124, Add/(deduct) swing adjustment Total net assets - swung 65,956, ,841, ,124, Portfolio at acquisition cost 61,726, ,410, ,916,

23 Nordea 1 - Nordic Equity Fund Nordea 1 - Nordic Equity Small Cap Fund Nordea 1 - Nordic Ideas Equity Fund Nordea 1 - Nordic Stars Equity Fund Nordea 1 - North American All Cap Fund (in EUR) (in EUR) (in EUR) (in EUR) (in USD) 222,869, ,179, ,779, ,011, ,245,676, ,613, ,957, ,615, ,140, ,555, , , , , , , ,346, ,577, ,310, ,427, ,184, ,270,575, , , , , ,743, , , , , , , , , ,815, , , ,917, ,058, , , , ,477, ,519, ,740, ,988, ,019, ,262,097, ,519, ,740, ,988, ,019, ,262,097, ,690, ,915, ,115, ,369, ,113,564,

24 Statement of Net Assets as of 31/12/2016 Nordea 1 - North American High Yield Bond Fund Nordea 1 - North American Small Cap Fund Nordea 1 - North American Value Fund (in USD) (in USD) (in USD) Assets Shares portfolio at market value (Note 2) - 189,715, ,310, Funds portfolio at market value (Note 2) Bonds portfolio at market value (Note 2) 433,280, Cash at banks 5,189, ,745, ,107, Dividends and interest receivable 7,454, , , Receivable for investments sold Receivable for subscribed shares 187, ,093, , Receivable on forward foreign exchange contracts Net other receivable - 2, Unrealised gain on contracts for difference (Note 2) Credit default swaps at cost (Note 2) Unrealised gain on credit default swaps (Note 2) Unrealised gain on futures (Note 2) Unrealised gain on futures already cashed (Note 2) Unrealised gain on interest rate swaps (Note 2) Unrealised gain on total return swaps (Note 2) Unrealised gain on forward foreign exchange contracts (Note 2) Unrealised gain on foreign currencies receivables and payables (Note 2) ,112, ,804, ,919, Liabilities Accrued fees 567, , ,322, Overdraft at banks Interest payable Payable on forward foreign exchange contracts Payable for investments purchased Payable for redeemed shares 23, , , Net other payable Credit default swaps at cost (Note 2) Unrealised loss on credit default swaps (Note 2) Unrealised loss on futures (Note 2) Unrealised loss on futures already cashed (Note 2) Unrealised loss on interest rate swaps (Note 2) Unrealised loss on forward foreign exchange contracts (Note 2) 11,936, , ,061, Unrealised loss on foreign currencies receivables and payables (Note 2) ,527, ,629, ,138, Total net assets - unswung 433,585, ,174, ,780, Add/(deduct) swing adjustment Total net assets - swung 433,585, ,174, ,780, Portfolio at acquisition cost 426,646, ,778, ,640,

25 Nordea 1 - Norwegian Bond Fund Nordea 1 - Norwegian Equity Fund Nordea 1 - Norwegian Kroner Reserve Nordea 1 - Renminbi High Yield Bond Fund Nordea 1 - Stable Emerging Markets Equity Fund (in NOK) (in NOK) (in NOK) (in CNH) (in USD) - 723,375, ,710,058, ,920,006, ,476,505, ,880, ,153, ,439, ,150, ,605, ,579, ,668, , ,203, ,475, ,017, , , , ,414, , ,277, , ,313, , , , ,067,243, ,335, ,715,289, ,996, ,766,371, ,542, ,945, ,003, , ,171, , , ,307, , ,841, ,466, ,027, ,090, , ,881, ,920, ,844, ,429, ,051, ,039,361, ,414, ,704,445, ,567, ,760,319, ,039,361, ,414, ,704,445, ,567, ,760,319, ,849,590, ,477, ,475,501, ,298, ,745,022,

26 Statement of Net Assets as of 31/12/2016 Nordea 1 - Stable Equity Long/ Short Fund - Euro Hedged (Note 1b) Nordea 1 - Stable Return Fund Nordea 1 - Swedish Bond Fund (in EUR) (in EUR) (in SEK) Assets Shares portfolio at market value (Note 2) 884,228, ,738,934, Funds portfolio at market value (Note 2) Bonds portfolio at market value (Note 2) - 7,331,207, ,355,483, Cash at banks 110,236, ,333, ,183, Dividends and interest receivable 878, ,875, ,368, Receivable for investments sold 386, ,041, ,345, Receivable for subscribed shares - 35,275, , Receivable on forward foreign exchange contracts Net other receivable 2, ,944, Unrealised gain on contracts for difference (Note 2) 29,800, Credit default swaps at cost (Note 2) Unrealised gain on credit default swaps (Note 2) Unrealised gain on futures (Note 2) 1,711, ,480, Unrealised gain on futures already cashed (Note 2) Unrealised gain on interest rate swaps (Note 2) Unrealised gain on total return swaps (Note 2) Unrealised gain on forward foreign exchange contracts (Note 2) Unrealised gain on foreign currencies receivables and payables (Note 2) - 227, ,027,244, ,853,320, ,378,714, Liabilities Accrued fees 3,063, ,450, ,912, Overdraft at banks Interest payable Payable on forward foreign exchange contracts Payable for investments purchased 518, ,261, Payable for redeemed shares 1,733, ,635, ,089, Net other payable Credit default swaps at cost (Note 2) Unrealised loss on credit default swaps (Note 2) Unrealised loss on futures (Note 2) Unrealised loss on futures already cashed (Note 2) 2,553, ,260, Unrealised loss on interest rate swaps (Note 2) Unrealised loss on forward foreign exchange contracts (Note 2) 58,346, ,876, Unrealised loss on foreign currencies receivables and payables (Note 2) 3, ,217, ,484, ,001, Total net assets - unswung 961,026, ,439,836, ,371,713, Add/(deduct) swing adjustment Total net assets - swung 961,026, ,439,836, ,371,713, Portfolio at acquisition cost 829,224, ,224,286, ,316,640,