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  • 1. For Professionals Only* * investing for their own account - according to MiFID definition Nordea 1 – North American All Cap Fund ISIN LU0772958525 (BP-USD) / ISIN LU0772957808 (BI-USD) September 2013 John Pandtle, CFA, Co-Portfolio Manager Eagle Asset Management, Inc.
  • 2. For Professionals Only Nordea multi-boutique approach Internal and external boutiques
  • 3. For Professionals Only 3 ● *Source: Eagle Asset Management, Inc. Date: 30.06.2013. Includes Eagle Boston Investment Management, Inc., a wholly owned subsidiary of Eagle Asset Management, Inc., and ClariVest Asset Management, LLC, an affiliate of Eagle Asset Management **Source: Raymond James Financial Inc. Date: 30.06.2013. • Eagle Asset Management Inc., (“Eagle”) has USD 27.8 billion in assets under management* with investment offices in Boston, Richmond, Stowe, San Diego and St. Petersburg (USA) • Employs more than 180 people, including 65 investment professionals* • Eagle is structured as a series of independent investment teams dedicated to proprietary fundamental research with a focus on consistent performance and alpha generation • Stable, conservatively managed NYSE-listed parent company, Raymond James Financial Inc. (Bloomberg ticker: RJF US) • Raymond James Financial Inc., has approximately 6,300 financial advisors serving 2.5 million accounts in 2,500 locations throughout the United States, Canada and overseas. Total client assets are approximately USD 405 billion** Eagle Asset Management Inc. – the sub-manager Firm overview
  • 4. For Professionals Only 4 ● Eagle U.S. All Cap Equity Team The Eagle U.S. All Cap Equity team, responsible for the management of the Nordea 1 – North American All Cap Fund, currently manages USD 3.3 billion in three primary investment disciplines: Source: Eagle Asset Management, Inc. Date: 30.06.2013. U.S. All Cap Equity Large Cap Value Equity Income About 65% of U.S. All Cap Equity stocks are also held in other disciplines
  • 5. For Professionals Only 5 ● Investment Team Structure David Blount, CFA, CPA Co-Portfolio Manager Consumer Discretionary, Consumer Staples, Telecommunications Ed Cowart, CFA Co-Portfolio Manager Energy, Technology John Pandtle, CFA Co-Portfolio Manager Financials (non-REIT), Materials, Utilities Jeff Vancavage, CFA Co-Portfolio Manager HealthCare, Industrials, REITs Chris Kouffman Research Associate James F. Short, CFA, CFP, CIMA Client Portfolio Manager
  • 6. For Professionals Only 6 ● U.S. Economic Outlook • Slow but positive growth continues – 2% growth remains the central tendency • Housing and auto sales are very strong • Employment and income growth remain weak • The U.S. corporate sector remains a bright spot – Record earnings and cash flows, high and (we believe) sustainable margins, strong balance sheets • The U.S. fiscal situation is improving rapidly. Revenue increases and spending cuts have reduced the deficit from 10% of GDP to just 4% • Despite some scary headlines (i.e., Detroit), state and local finances in the U.S. are also improving • Surging domestic energy production is benefiting the economy in many ways including a narrowing trade gap • The Federal Reserve will likely begin to reduce its purchases of long-term securities by year end. The reduction will be focused on Treasury bond, not mortgages • Short-term rates will be anchored near zero through at least 2015
  • 7. For Professionals Only 7 ● U.S. Equity Market Outlook • Valuation of U.S. equities is about average on an absolute basis but still very attractive versus fixed income securities • Earnings growth will slow, but remain positive through 2014 • A meaningful allocation shift from bonds to stocks remains a real possibility • The "Wall of Worry" is intact: Fed "tapering", a new Fed chief, China, Syria, etc. Remember: "A bull market climbs a wall of worry" • We still think the market is much more feared than loved – a characteristic of an ongoing bull market
  • 8. For Professionals Only 8 ● Investment Philosophy VARG Value and Reasonable Growth • The benefit of using VARG is that the value (classic valuation oriented style) protects from paying too much for a company, while the reasonable growth hurdle (focus on growth catalysts) protects from falling into value traps and unlocks future stock value • The quantitative factors that define a VARG stock differ by sector and market capitalization, but typically what is looked for is: – Stocks with valuation measures below historical and sector averages – Positive or improving growth rates for earnings and/or free cash flow • Eagle avoids: – “Deep Value”: cheap stocks with poor fundamentals – “Momentum Investing”: non-sustainable growth
  • 9. For Professionals Only 9 ● Investment Process: The “VARG” Approach Growth-driven Criteria Eliminates approximately 500 stocks U.S. All Cap Equity Russell 3000 Index Value-driven Criteria Eliminates approximately 2,000 stocks Risk Management Leaves approximately 300-500 stocks Portfolio Typically 30-50 stocks Fundamental analysis
  • 10. For Professionals Only 10 ● Investment Process Overview Valuation-driven Criteria • Less than the Market: – P/E to growth rate – Price/Sales and Price/Book – Enterprise value/EBITDA • Price to Free Cash Flow is less than industry peers • Public market value attractive relative to private market value Growth-driven Criteria • Sound business with stabilizing or improving earnings outlook • Catalyst to “unlock” unrealized value (e.g. new product or management change) • Disciplined capital-allocation model • Shareholder-oriented management Risk Management • Philosophy: avoid “value traps” with a bias toward quality • Discipline: – Thorough investment thesis with value targets – Focus on quality metrics – Daily meetings to monitor/review sectors/stocks – Weekly strategy/risk meetings • Trim stocks when they become too large of a position Portfolio • Market capitalization: greater than USD 250 million at time of purchase • Typical number of holdings: 30-50 • Typical position size: 2% to 3% at time of purchase • Maximum position size: 5% • Sector weightings: typically +/- 5% but can go +/- 10% relative to the benchmark
  • 11. For Professionals Only 11 ● Investment Process Eagle Buy Discipline The BUY process is built upon both valuation and growth driven criteria. In the course of the research, the companies that display many of the following factors are sought after: Valuation - driven criteria (it is important to remember that individual industries demand different valuation approaches, so not all criteria are followed at the same time): • P/E to growth rate < market • Price to normalized earnings < industry peers • Price/Sales < market • Price/Book < market • Enterprise value/EBITDA < market Growth - driven criteria: • Sound businesses that demonstrate a stabilizing or improving earnings growth outlook (e.g. positive earnings revision relative to consensus) • Presence of a catalyst to “unlock” unrealized value (e.g. new product or management change) • Disciplined capital-allocation model • Management with large ownership positions • Perceived margin of safety in business models
  • 12. For Professionals Only 12 ● Investment Process: Stock ideas Eagle Buy Discipline Buy companies that fall in the VARG target area • Cardinal Financial boasts high-quality management, franchise strength and superior asset quality • SPX has leading technologies in attractive end markets w/ secular drivers, margin expansion opportunities, and a strong growth outlook • Home Depot has the opportunity to leverage increasing sales per square foot as the housing market and economy recover • EOG Resources is a high quality energy exploration and production company with exposure to all of the major North American unconventional (shale) plays
  • 13. For Professionals Only 13 ● Investment Process Eagle Sell Discipline A position is sold or trimmed in the following instances: • Price appreciation to level where valuation case can no longer be made • Trim position size above 5% • Trim absolute industry weighting above 25% • Significant shift in investor base to momentum-oriented managers • New investment idea is relatively more attractive • Fundamentals of company or industry deteriorate
  • 14. For Professionals Only 14 ● Investment Process: Stock example Eagle Sell Discipline Sell companies that move out of the VARG target area • Hudson Pacific Properties benefited from strong stock performance that pushed valuation beyond our target • The Blackstone Group bought Equity Office Properties at a significant premium at what was, at the time, the second-largest leveraged buyout in U.S. history • Bank of America’s deteriorating fundamentals made it less attractive than other stocks in the industry that traded at similar valuations • Freeport McMoRan expanded into oil and gas exploration via expensive acquisitions that changed the investment thesis and added new risks
  • 15. For Professionals Only 15 ● Portfolio Construction Market Capitalization greater than USD 250 million at time of purchase Typical Number of Holdings 30 to 50 Typical Position Size 2% to 3% at time of purchase Maximum Position Size 5% Sector Weightings typically +/- 5% but can go +/- 10% relative to the benchmark Typical Cash Level < 5% Anticipated Annual Turnover 35% to 40% Small Cap Allocation: up to 15% Mid Cap Allocation: 20-30% Large Cap Allocation: 55-65%
  • 16. For Professionals Only 16 ● VARG has delivered on its promises: capture strong performance while protecting investor on the downside Up/down market capture vs. Russell 3000 Index Eagle U.S. All Cap Equity Composite Strong in Up and Down Markets Source: Callan Associates. Date: 31.12.2011. Past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy and is not guaranteed. If the base currency of the composite differs from the currency of the country where the investor resides the represented performance might vary due to currency fluctuations. The Eagle U.S. All Cap Equity Composite’s inception date is 01.10.1999. The Nordea 1 – North American All Cap Fund is managed according to the same investment philosophy and investment process than the Eagle U.S. All Cap Equity Composite. However, there is no guarantee that using the same investment process will produce similar returns since the Nordea 1 sub-fund has specific limits and restrictions, and the result might differ from the composite used for illustration purposes.
  • 17. For Professionals Only 17 ● Data Source - © 2012 Morningstar, Inc. All Rights Reserved. Date: 30.04.2012. Based on monthly data expressed in USD. Period under consideration: 01.10.1999 - 30.04.2012. The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy and is not guaranteed. If the base currency of the composite differs from the currency of the country where the investor resides the represented performance might vary due to currency fluctuations. Figures include accounts under Eagle's management from their respective inception dates, including accounts of clients no longer with the firm. No selective periods of presentation have been utilized. Data from all accounts have been continuous from their inception to the present or to the cessation of the client relationship with the firm. A complete list and description of firm composites and calculation of performance results is available upon request. The composite creation date for GIPS® purposes was October 1, 1999. Performance is based upon U.S. dollar returns. The Nordea 1 – North American All Cap Fund is managed according to the same investment philosophy and investment process than the Eagle U.S. All Cap Equity Composite. However, there is no guarantee that using the same investment process will produce similar returns since the Nordea 1 sub-fund has specific limits and restrictions, and the result might differ from the composite used for illustration purposes. Eagle U.S. All Cap Equity Composite Performance
  • 18. For Professionals Only 18 ● Eagle U.S. All Cap Equity Composite Year Eagle U.S. All Cap Equity Composite (gross of fees)* Russell 3000 Index S&P 500 Index 1999 2.28%* 16.22%* 14.88%* 2000 12.43% -7.46% -9.10% 2001 1.62% -11.46% -11.89% 2002 -13.15% -21.54% -22.10% 2003 25.62% 31.06% 28.68% 2004 20.71% 11.95% 10.88% 2005 7.15% 6.12% 4.91% 2006 13.89% 15.71% 15.79% 2007 5.59% 5.14% 5.49% 2008 -30.17% -37.31% -37.00% 2009 35.00% 28.34% 26.46% 2010 18.87% 16.93% 15.06% 2011 6.11% 1.03% 2.11% 2012 11.75%** 12.87%** 12.59%** Source: Eagle Asset Management, Inc. Date: 31.03.2012. Past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy and is not guaranteed. Initial and exit charges could affect the value of the performance. If the base currency of the composite differs from the currency of the country where the investor resides the represented performance might vary due to currency fluctuations. *Returns for Q4 1999. ** Returns for Q1 2012. Figures include accounts under Eagle's management from their respective inception dates, including accounts of clients no longer with the firm. No selective periods of presentation have been utilized. Data from all accounts have been continuous from their inception to the present or to the cessation of the client relationship with the firm. A complete list and description of firm composites and calculation of performance results is available upon request. The composite creation date for GIPS® purposes was October 1, 1999. Performance is based upon U.S. dollar returns. The Nordea 1 – North American All Cap Fund is managed according to the same investment philosophy and investment process than the Eagle U.S. All Cap Equity Composite. However, there is no guarantee that using the same investment process will produce similar returns since the Nordea 1 sub-fund has specific limits and restrictions, and the result might differ from the composite used for illustration purposes.
  • 19. For Professionals Only 19 ● Nordea 1 – North American All Cap Fund Monthly update as of 30.08.2013 • Fund performance • Top 10 holdings and sector breakdown • Market capitalisation breakdown • Fund information
  • 20. For Professionals Only 20 ● Nordea 1 – North American All Cap Fund Fund performance (BP-USD share class) Cumulative Returns in % Fund Reference index YTD 24.95% 16.49% 1 month -2.46% -2.85% 3 months 1.28% 1.06% 6 months 13.05% 9.10% 1 year 30.28% 19.59% Since inception 38.79% 28.15% Source (unless otherwise stated): Nordea Investment Funds S.A. Period under consideration: 30.05.2012 - 30.08.2013. Performance calculated NAV to NAV (net of fees and Luxembourg taxes) gross income reinvested, in the base currency of the respective sub-fund, excluding initial and exit charges as per 30.08.2013. Initial and exit charges could affect the value of the performance. The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy and is not ensured. If the base currency of the respective sub-fund differs from the currency of the country where the investor resides the represented performance might vary due to currency fluctuations.
  • 21. For Professionals Only 21 ● Nordea 1 – North American All Cap Fund Top ten positions and sector breakdown Sector Breakdown in % Financials 18.82 Information Technology 16.02 Health Care 14.25 Industrials 14.10 Consumer Discretionary 13.02 Energy 12.36 Consumer Staples 5.81 Telecommunication Services 2.49 Materials 2.38 Net Liquid Assets 0.75 Total 100.00 Source: Nordea Investment Funds S.A., Date: 30.08.2013 Top Ten in % Apple US0378331005 3.95 Oceaneering International US6752321025 3.70 JPMorgan Chase US46625H1005 3.61 Anixter International US0352901054 3.58 Citigroup US1729674242 3.39 Mylan US6285301072 3.34 Honeywell International US4385161066 3.19 Applied Materials US0382221051 3.15 Darling International US2372661015 3.00 Union Pacific US9078181081 2.92 Total 33.81 Source: Nordea Investment Funds S.A., Date: 30.08.2013
  • 22. For Professionals Only 22 ● Nordea 1 – North American All Cap Fund Market capitalisation breakdown Market Capitalisation in % (in mln. USD) Cash included Without cash [200] – [500] 1.82 1.83 [1000] – [2000] 1.51 1.53 [2000] – [3000] 6.57 6.62 [3000] – [4000] 8.55 8.61 [4000] – [5000] 5.45 5.49 [5000] – [10000] 6.24 6.29 [10000] – [20000] 20.46 20.62 > [20000] 48.64 49.01 Net Liquid Assets 0.75 Total 100.00 100.00 Source: Nordea Investment Funds S.A., Date: 30.08.2013
  • 23. For Professionals Only 23 ● Nordea 1 – North American All Cap Fund Fund information Sub-fund's name Nordea 1 - North American All Cap Fund Fund Manager Eagle Asset Management Inc Fund Domicile 562, rue de Neudorf, 2220 Luxembourg, Luxembourg Share class BP Annual Man. Fee 1.500 % Security number (ISIN) LU0772958525 Security number (WKN) A1J0G1 Fund Size in millions 1028.51 Currency USD Reference index Russell 3000 - Net Return Index No. of holdings 38 Launch date 30/05/2012 Minimum investment (EUR) 50 Source: Nordea Investment Funds S.A., Date: 30.08.2013
  • 24. For Professionals Only 24 ● Nordea 1 – North American All Cap Fund Performance Review – Year to Date (30.08.2013) • The 2013 year to date performance of the Nordea 1 – North American All Cap Fund was very strong but not really an outlier from the strategy’s long-term record • The outperformance versus the Russell 3000 Index could for the most part be attributed to stock selection within the technology and energy sectors • Within technology, we did not own Apple during periods when the stock traded down significantly, unlike the benchmark. The stock currently trades at a premium to our purchase price. We also saw excellent relative performance from Marvell Technology and Applied Materials • Within energy, one of our holdings, Lufkin International was purchased by GE at a premium. We also saw excellent returns from Oceaneering International, Halliburton and EOG Resources Source (unless otherwise stated): Nordea Investment Funds S.A. Period under consideration: 31.12.2012 - 30.08.2013. Performance calculated NAV to NAV (net of fees and Luxembourg taxes) gross income reinvested, in the base currency of the respective sub-fund, excluding initial and exit charges as per 30.08.2013. Initial and exit charges could affect the value of the performance. The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy and is not ensured. If the base currency of the respective sub-fund differs from the currency of the country where the investor resides the represented performance might vary due to currency fluctuations.
  • 25. Appendix
  • 26. For Professionals Only 26 ● Investment Team Portfolio Management – Team Biographies Ed Cowart, CFA, Co-Portfolio Manager • Joined Eagle in 1999 • 41 years of experience as a portfolio manager and research director • A.B., Dartmouth College (1969) • Earned his CFA designation in 1977 David Blount, CFA, CPA, Co-Portfolio Manager • Joined Eagle in 1993 • 29 years of investment experience as a co-portfolio manager and analyst • B.S. in finance, University of Florida (1983) • Earned his CFA designation in 1993; Certified Public Accountant John Pandtle, CFA, Co-Portfolio Manager • Was at Eagle from 1999-2002; returned in 2009 • 19 years of investment experience as a portfolio manager and analyst • B.B.A. in finance, University of Georgia (1993) • Earned his CFA designation in 1998 Jeff Vancavage, CFA, Co-Portfolio Manager • Joined Eagle in 2001 • 14 years of investment-related experience • B.S. in aeronautical science, Embry-Riddle Aeronautical University (1990) • M.B.A., University of Florida (2001) • Earned his Chartered Financial Analyst designation in 2006
  • 27. For Professionals Only 27 ● Chris Kouffman, Research Associate • Joined Eagle in 2004 • 10 years of investment experience • B.A. in economics, Georgetown University (2003) James F. Short, CFA, CFP, CIMA®, Client Portfolio Manager • Joined Eagle in 2004 • 22 years of investment experience including time as a chief investment officer and portfolio manager • B.A. in government, College of William and Mary (1990) • M.B.A. in economics and investment management, University of Georgia (1996) • Holds numerous certifications, including Chartered Financial Analyst (2002) • Certified Financial Planner (2000) and Certified Investment Management Analyst (2003) Investment Team Team Biographies
  • 28. Thank you!
  • 29. For Professionals Only 29 ● The sub-funds mentioned are part of Nordea 1, SICAV, an open-ended Luxembourg-based investment company (Société d'Investissement à Capital Variable), validly formed and existing in accordance with the laws of Luxembourg and with European Council Directive 2009/65/EC of 13 July 2009. Information for Investors in Singapore: The sub-funds which are mentioned in this document form part of the restricted schemes under the Sixth Schedule to the Securities and Futures Regulations. The Sub-Funds are not authorised or recognised by the Monetary Authority of Singapore (“MAS”). The offer or invitation mentioned, which is the subject of this document, does not relate to a collective investment scheme which is authorised under Section 286 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”) or recognised under Section 287 of the SFA. The Fund is not authorised or recognised by MAS, nor allowed to be offered to the retail public. This document and any other document or material issued in connection with the offer or sale is not a prospectus as defined in the SFA. Thus, it may not be circulated, distributed, offered, sold or be made subject to an invitation to persons in Singapore other than (i) to an institutional investor under Section 304 of the SFA, (ii) to a relevant person pursuant to Section 305(1), or any person pursuant to Section 305(2), and in accordance with the conditions specified in Section 305, of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. This document contains information only intended for professional investors qualified under the SFO, the Companies Ordinance and is not intended for general publication. Information for Investors in Hong Kong: Warning: The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. the Fund, and thus comprising its sub-funds, have not been authorised by the Securities & Futures Commission (“SFC”). Accordingly, the Shares adherent to the Fund and its sub-fund(s) in question may only be offered or sold in Hong Kong to persons who are i) “Professional Investors” as defined within the Securities & Futures Ordinance of Hong Kong or ii) in circumstances which are permitted under the 17th Schedule of the Companies Ordinance of Hong Kong and as defined under the Securities and Futures Ordinance of Hong Kong. This document contains information only intended for professional investors qualified under the SFO, the Companies Ordinance and is not intended for general publication. There is no assurance that profits will be achieved or that losses will not be incurred. An investment in the Company and the Sub-Funds is subject to investment risks, including the possible loss of the principal amount invested. Investments in derivative and foreign exchange transactions may be subject to significant fluctuations which may affect the value of an investment. Investments in Emerging Markets involve a higher element of risk. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy and cannot be ensured. Nordea Investment Funds S.A. only publishes product-related information and does not make any investment recommendations. Published by Nordea Investment Funds S.A., 562, rue de Neudorf, P.O. Box 782, L-2017 Luxembourg, which is authorized by the Commission de Surveillance du Secteur Financier in Luxembourg. Unless otherwise stated, all views expressed are those of Nordea Investment Funds S.A. This document may not be reproduced or circulated without prior permission and must not be passed to private investors or any other person not covered by relevant applicable law. Reference to companies or other investments mentioned within this document should not be construed as a recommendation to the investor to buy or sell the same, but is included for the purpose of illustration.

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