Nordea 1 – Heracles Long/Short MI FundPresentationNovember 2010
Contents    1   Introduction    2   Heracles Long/Short strategy    3   Investment approach    4   Product features    5  ...
1   Introduction
History of quantitative strategies at MetzlerAssets under management in EUR bn        Launch            TORERO            ...
Alternative investments & quantitative strategiesat Metzler                              Nader Purschaker           Head o...
Top rankings for Metzler Asset Management          Rated ”strong“ by Fitch             Fund innovation 2009               ...
2   Heracles Long/Short strategy
Objectives of Heracles Long/Short                Return                          Money market (Euribor 1 month) + 4% p.a. ...
Heracles Long/Short strategy since inceptionPerformance – institutional share class as of October 31, 2010 (EUR)    115 La...
3   Investment approach
Investment approach     1.   Broad diversification: the investment       Reduces dependency          universe comprises 50...
1. Broad diversification using equity futures, bond   futures and currency forwards        Reduces the dependency on singl...
2. Long/Short: up to 50 single strategies   reflect capital market environments at all times                              ...
3. Quantitative forecast-free model explicitly takes   target return into account     Procyclical element: markets determi...
Single strategy in a bear market environmentDAX futures 2002     110      90      70           Performance DAX futures    ...
Single strategy in a bear market environment– continued 1DAX futures 2002     110      90                                 ...
Single strategy in a bear market environment– continued 2DAX futures 2002     110      90      70           Performance DA...
Single strategy in a bull market environmentDAX futures 2005     130           Performance DAX futures     120     110    ...
Each market strategy is divided into 12 rollingsub-strategies (DAX future)             DAX performance in January 2008    ...
4   Product features
Heracles Long/Short and it‘s peers – performancesince inceptionPerformance March 2008 to October 2010     116     114     ...
Heracles Long/Short – attractive drawdowncharacteristics compared to traditional assetsProfitless periods since March 2008...
Nordea 1 – Heracles Long/Short MI Fund – performanceand risk overviewPerformance and risk – institutional share class as o...
5   Summary
Heracles Long/Short – the unique selling propositions     No return forecasts involved in alpha-generating process        ...
6   Appendix
Single strategy in a bear market environmentZAR/EUR 2009 (March)                 Performance ZAR/EUR     100      80      ...
Single strategy in a bull market environmentInterest rate futures 2009 (April)     103        Performance interest rate fu...
Heracles Long/Short strategy – steady, reliable returnsBacktest from January 1992 to March 2008     650                  i...
Heracles Long/Short improves risk-adjusted returnsBacktest from January 1992 to March 2008 in % (in EUR)         Balanced ...
Risk/return profile of Heracles Long/Short strategy incomparisonBacktest from January 1994 to March 2008 (EUR based)     1...
Heracles Long/Short – performance comparedto a managed futures indexPerformance December 1993 to March 2008     500       ...
Heracles Long/Short – attractive drawdowncharacteristics compared to traditional assetsDrawdowns per backtest from January...
Heracles Long/Short strategy: uncorrelated to globalequity marketsBacktest from January 1994 to March 2008 (versus MSCI Wo...
Nordea 1 – Heracles Long/Short MI Fund:facts – institutional investors     Fund category                Absolute return   ...
Important noteThe sub-funds mentioned are part of the Nordea 1, SICAV, an open-ended Luxembourg-based investment company (...
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Nordea heracles london

  1. 1. Nordea 1 – Heracles Long/Short MI FundPresentationNovember 2010
  2. 2. Contents 1 Introduction 2 Heracles Long/Short strategy 3 Investment approach 4 Product features 5 Summary 6 Appendix2
  3. 3. 1 Introduction
  4. 4. History of quantitative strategies at MetzlerAssets under management in EUR bn Launch TORERO TORERO- Heracles 9 research Fixed Income/MultiAsset/ mutual funds Long/Short process Risk-Overlay/SDA 8 7 6 5 4 3 2 1 Metzler alternative assets 0 1998 2000 2002 2004 2006 2008 10/20104
  5. 5. Alternative investments & quantitative strategiesat Metzler Nader Purschaker Head of Alternative Investments & Quantitative Strategies Portfolio Management Applied Research Programming 8 people 7 people 4 people Implementation 2 people5
  6. 6. Top rankings for Metzler Asset Management Rated ”strong“ by Fitch Fund innovation 2009 Nordea 1 – Heracles Long/Short MI Fund M1 Superior M2 Strong M3 Good/adequate M4 Adequate with qualifications M5 Inadequate6
  7. 7. 2 Heracles Long/Short strategy
  8. 8. Objectives of Heracles Long/Short Return Money market (Euribor 1 month) + 4% p.a. Risk Target volatility of average 8% p.a. Low draw-downs Fast recovery8 For all information provided on this page and on the following pages, including model calculations, please see the important note on the last page
  9. 9. Heracles Long/Short strategy since inceptionPerformance – institutional share class as of October 31, 2010 (EUR) 115 Launch date March 12, 2008 Heracles Long/Short 12.59% 110 105 1M Euribor 4.89% 100 95 3/2008 9/2008 3/2009 9/2009 3/2010 10/2010 9/2010 Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. The quoted performance is net of fees (15% outperformance fee; until March 2009 1% manage- ment fee, since April 2009 1.2% management fee) and regardless of other charges (i.e. sales load)9 Past returns are not a guarantee, warranty or a liable indicator for future results
  10. 10. 3 Investment approach
  11. 11. Investment approach 1. Broad diversification: the investment Reduces dependency universe comprises 50 international on single markets equity, bond and currency markets development 2. Long/Short: declining markets result in Reduces dependency short positions. Rising markets generate on the direction of long positions respectively markets 3. Quantitative model: target return is Maximizes the likeli- explicitly built into the algorithm. When hood of achieving the the target is met, profits are locked in excess return target11
  12. 12. 1. Broad diversification using equity futures, bond futures and currency forwards Reduces the dependency on single markets ... development12
  13. 13. 2. Long/Short: up to 50 single strategies reflect capital market environments at all times Money market return + Combination of up to 50 single Long/Short strategies Strategy 1 Strategy 2 Target return: DAX CAD/USD ... 4% return p.a. in excess of Euribor 1 month Long Short ... Reduces the dependency on the direction of markets Sources: Thomson Reuters Datastream, Bloomberg. The quoted performance is net of fees (15% outperformance fee; until March 2009 1% management fee, since April 2009 1.2% management fee) and regardless of other charges (i.e. sales load)13 Past returns are not a guarantee, warranty or a liable indicator for future results
  14. 14. 3. Quantitative forecast-free model explicitly takes target return into account Procyclical element: markets determine the position Rising market Long positions Falling market Short positions Anticyclical element: target return determines the position Coming close to the excess return target, the system reduces exposures Having reached the excess return target, the system closes the position to lock in profits Maximizes the likelihood of achieving the target return14
  15. 15. Single strategy in a bear market environmentDAX futures 2002 110 90 70 Performance DAX futures 50 5 Allocation in % 0 -5 Procyclical -10 -15 3 2 1 Performance DAX strategy 0 -1 Jan Feb March Apr May June July Aug Sep Oct Nov Dec Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. Historical simulation, based on market data15 Past returns are not a guarantee, warranty or a liable indicator for future results
  16. 16. Single strategy in a bear market environment– continued 1DAX futures 2002 110 90 Performance DAX futures 70 50 5 Allocation in % Anticyclical 0 -5 -10 -15 3 Target performance contribution 2 1 Performance DAX strategy 0 -1 Jan Feb March Apr May June July Aug Sep Oct Nov Dec Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. Historical simulation, based on market data16 Past returns are not a guarantee, warranty or a liable indicator for future results
  17. 17. Single strategy in a bear market environment– continued 2DAX futures 2002 110 90 70 Performance DAX futures 50 5 Allocation in % 0 -5 -10 -15 3 Target performance contribution 2 1 Performance DAX strategy 0 -1 Jan Feb March Apr May June July Aug Sep Oct Nov Dec Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. Historical simulation, based on market data17 Past returns are not a guarantee, warranty or a liable indicator for future results
  18. 18. Single strategy in a bull market environmentDAX futures 2005 130 Performance DAX futures 120 110 100 90 15 Allocation in % 5 -5 -15 3 Target performance contribution 2 1 Performance DAX strategy 0 -1 Jan Feb March Apr May June July Aug Sep Oct Nov Dec Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. Historical simulation, based on market data18 Past returns are not a guarantee, warranty or a liable indicator for future results
  19. 19. Each market strategy is divided into 12 rollingsub-strategies (DAX future) DAX performance in January 2008 DAX future allocation in January 2009 125 125 100 100 DAX strategy January 75 75 50 50 Cumulated DAX future allocation 25 25 11/2007 1/2008 2/083/2008 4/085/2008 6/087/20088/08 9/200810/08 11/08 12/081/20092/093/2009 11/07 12/07 1/08 3/08 5/08 7/08 9/08 11/2008 1/09 3/09 Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. For the period to March 11, 2008: historical simulation based on market data19 Past returns are not a guarantee, warranty or a liable indicator for future results
  20. 20. 4 Product features
  21. 21. Heracles Long/Short and it‘s peers – performancesince inceptionPerformance March 2008 to October 2010 116 114 Heracles Long/Short (AI), return 13.16% 112 110 108 106 104 CS Tremont Managed Futures index*, return 12.59% 102 100 Heracles CS Long/Short Tremont 98 Maximum drawdown -4.50 -18.57 96 Downside deviation p.a. 3.90 8.37 Longest profitless period (months) 12 22 94 3/2008 9/2008 3/2009 9/2009 3/2010 10/2010 9/2010 * EUR return Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. The quoted performance is net of fees (15% outperformance fee; until March 2009 1% manage- ment fee, since April 2009 1.2% management fee) and regardless of other charges (i.e. sales load)21 Past returns are not a guarantee, warranty or a liable indicator for future results
  22. 22. Heracles Long/Short – attractive drawdowncharacteristics compared to traditional assetsProfitless periods since March 2008 (drawdown in %, net EUR) as of October 2010 0 -10 Heracles Long/Short -20 MSCI World -30 -40 Heracles MSCI Long/Short World -50 Maximum drawdown -4.50 -39.78 Downside deviation p.a. 3.90 13.32 Longest profitless period (months) 12 29 -60 2/2008 8/2008 2/2009 8/2009 2/2010 10/2010 8/2010 Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. The quoted performance is net of fees (1.2% management fee, 15% outperformance fee) and22 regardless of other charges (i.e. sales load). Past returns are not a guarantee, warranty or a liable indicator for future results
  23. 23. Nordea 1 – Heracles Long/Short MI Fund – performanceand risk overviewPerformance and risk – institutional share class as of October 31, 2010 (EUR) Cumulative performance Heracles EURIBOR 1m JPM GBI (USD MSCI World Period in % in % hdg) in % in % Year to date 2.40 0.43 6.23 9.22 1 month -0.46 0.06 -0.43 1.88 3 months 1.76 0.17 1.32 2.32 6 months -0.60 0.29 4.21 -1.42 1 year 4.78 0.50 6.16 19.68 2 years 3.62 1.92 13.19 21.81 Since launch* 12.59 4.89 15.15 1.87 2009 0.61 0.91 0.87 26.65 2008** 9.28 3.50 7.46 -26.36 Key figures (since inception*) Annualised return 4.62 1.83 5.51 0.71 Volatility 7.69 0.15 3.39 24.04 Sharpe ratio 0.36 – 1.42 0.03 Best month 6.38 0.41 3.19 11.44 Worst month -2.59 0.03 -1.66 -10.23 Max drawdown*** -6.20 – -3.56 -44.89 Drawdown period (m) 3.03 – 2.77 9.67 * 12/03/2008 ** From 12/03/2008 to 31/12/2008 *** Based on daily return Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. The quoted performance is net of fees (15% outperformance fee; until March 2009 1% manage- ment fee, since April 2009 1.2% management fee) and regardless of other charges (i.e. sales load)23 Past returns are not a guarantee, warranty or a liable indicator for future results
  24. 24. 5 Summary
  25. 25. Heracles Long/Short – the unique selling propositions No return forecasts involved in alpha-generating process replication of option strategies Target return is explicitly taken into account by the strategy maximizes the likelihood of attaining the excess return target Daily liquidity, no lock-up period, no redemption fee High multi-dimensional diversification along asset classes regions timeline The strategy is uncorrelated to common investment strategies25
  26. 26. 6 Appendix
  27. 27. Single strategy in a bear market environmentZAR/EUR 2009 (March) Performance ZAR/EUR 100 80 60 0 -10 Allocation in % -20 3 Target performance contribution 2 1 Performance ZAR/EUR 0 -1 Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. Historical simulation, based on market data27 Past returns are not a guarantee, warranty or a liable indicator for future results
  28. 28. Single strategy in a bull market environmentInterest rate futures 2009 (April) 103 Performance interest rate futures 102 101 100 99 150 Allocation in % 100 50 0 -50 3 Performance interest rate strategy 2 Target performance contribution 1 0 -1 Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. Historical simulation, based on market data28 Past returns are not a guarantee, warranty or a liable indicator for future results
  29. 29. Heracles Long/Short strategy – steady, reliable returnsBacktest from January 1992 to March 2008 650 in % p.a. Return Volatility 600 MSCI World 7.27 15.62 550 1M Euribor 4.20 0.57 500 Heracles L/S 10.87 5.39 450 400 350 300 250 200 150 100 50 1991 1994 1996 1998 2000 2003 2005 2008 2007 Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. For the period to March 11, 2008: historical simulation based on market data. The hypothetical performance is calculated under the assumption that the fund would have been managed according to the Heracles Long/Short strategy. The quoted performance is net of fees (1.2% management fee, 15% outperformance fee) and regardless of other charges (i.e. sales load). The simulation applies to investments in equity and bond futures29 based on historical exchange rates of the countries, in which the strategy invests
  30. 30. Heracles Long/Short improves risk-adjusted returnsBacktest from January 1992 to March 2008 in % (in EUR) Balanced portfolio Portfolio enhanced by Heracles Liquidity Heracles Long/Short 10 20 Equities Bonds Balanced (global) 45 45 (global) 80 portfolio Improvement Return in total in % 205.94 244.79 38.85 Annualized return in % 7.16 7.96 0.80 Annualized volatility in % 7.00 5.77 -1.23 Sharpe ratio 0.42 0.65 0.23 Maximum drawdown in % -20.11 -10.95 9.16 Longest profitless period in months 57 39 -18 Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. For the period to March 11, 2008: historical simulation based on market data. The hypothetical performance is calculated under the assumption that the fund would have been managed according to the Heracles Long/Short strategy. The quoted performance is net of fees (1.2% management fee, 15% outperformance fee) and regardless of other charges (i.e. sales load). The simulation applies to investments in equity and bond futures30 based on historical exchange rates of the countries, in which the strategy invests
  31. 31. Risk/return profile of Heracles Long/Short strategy incomparisonBacktest from January 1994 to March 2008 (EUR based) 12 Performance in % p.a. 10 Heracles Long/Short DJ Credit Suisse 8 HFRI Fund of Funds Managed Futures Index JPM GBI Global 6 4 MSCI World 2 Volatility p.a. 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Heracles MSCI JPM GBI HFRI Fund DJ Credit Suisse Long/Short World Global of Funds Managed Futures Index Performance in % p.a. 10.42 6.10 5.60 7.65 5.98 Performance over Libor in % p.a. 6.88 2.56 2.06 4.11 2.45 Volatility p.a. 5.58 15.88 3.08 5.73 11.91 Sharpe ratio 1.23 0.16 0.67 0.72 0.21 Maximum drawdown in % -5.89 -53.75 -4.44 -13.08 -18.57 Downside deviation in % p.a. 3.68 11.87 2.24 4.14 8.37 Sortino ratio 1.87 0.22 0.92 0.99 0.29 Profitable months in % 69.41 58.82 72.35 67.06 55.29 Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. For the period to March 11, 2008: historical simulation based on market data. The hypothetical performance is calculated under the assumption that the fund would have been managed according to the Heracles Long/Short strategy. The quoted performance is net of fees (1.2% management fee, 15% outperformance fee) and regardless of other charges (i.e. sales load). The simulation applies to investments in equity and bond futures31 based on historical exchange rates of the countries in which the strategy invests
  32. 32. Heracles Long/Short – performance comparedto a managed futures indexPerformance December 1993 to March 2008 500 Heracles Long/Short (AI) – return p.a. 10.34% 450 400 350 300 250 200 150 100 Index CS Tremont Managed Futures* – return p.a. 5.92% 50 1994 1996 1998 2000 2002 2004 2006 2008 * EUR denominated Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. For the period to March 11, 2008: historical simulation based on market data. The hypothetical performance is calculated under the assumption that the fund would have been managed according to the Heracles Long/Short strategy. The quoted performance is net of fees (1.2% management fee, 15% outperformance fee) and regardless of other charges (i.e. sales load). The simulation applies to investments in equity and bond futures based on historical exchange rates of the countries, in which the strategy invests. After the launch on March 12, 2008, calculations are based on actual data of the fund32 (net of fees). Past returns are not a guarantee, warranty or a liable indicator for future results.
  33. 33. Heracles Long/Short – attractive drawdowncharacteristics compared to traditional assetsDrawdowns per backtest from January 1994 to March 2008, in % 0 -10 Heracles Long/Short -20 MSCI World -30 -40 Heracles MSCI Long/Short World -50 Maximum drawdown -5.89 -53.75 Downside deviation p.a. 3.56 11.73 Longest profitless period (months) 10 90 -60 1991 1993 1995 1997 1999 2001 2003 2005 3/2008 2007 Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. For the period to March 11, 2008: historical simulation based on market data. The hypothetical performance is calculated under the assumption that the fund would have been managed according to the Heracles Long/Short strategy. The quoted performance is net of fees (1.2% management fee, 15% outperformance fee) and regardless of other charges (i.e. sales load). The simulation applies to investments in equity and bond futures based on33 historical exchange rates of the countries in which the strategy invests.
  34. 34. Heracles Long/Short strategy: uncorrelated to globalequity marketsBacktest from January 1994 to March 2008 (versus MSCI World) 10 Heracles Long/Short 8 MSCI World 6 4 2 0 -2 -4 -6 Heracles MSCI JPM HFRI Fund DJ Credit Suisse -8 Long/Short World GBI Global of Funds Managed Futures Index -10 Heracles Long/Short 1.00 -12 MSCI World 0.02 1.00 JPM GBI Global 0.17 -0.16 1.00 -14 HFRI Fund of Funds 0.16 0.58 -0.05 1.00 DJ Credit Suisse Managed Futures Index 0.47 -0.17 0.26 0.10 1.00 -16 Sources: Thomson Reuters Datastream, Bloomberg, Metzler calculations. For the period to March 11, 2008: historical simulation based on market data. The hypothetical performance is calculated under the assumption that the fund would have been managed according to the Heracles Long/Short strategy. The quoted performance is net of fees (1.2% management fee, 15% outperformance fee) and regardless of other charges (i.e. sales load). The simulation applies to investments in equity and bond futures34 based on historical exchange rates of the countries in which the strategy invests
  35. 35. Nordea 1 – Heracles Long/Short MI Fund:facts – institutional investors Fund category Absolute return ISIN code LU0343921531 (AI-EUR) Fund launch (currency) March 12, 2008 Dividend type Distributing Management fee 1.2% p.a. Performance fee 15% of annual outperformance versus Euribor ("High Watermark" and "Hurdle Rate") Umbrella Nordea 1, SICAV Custodian Nordea Investment Funds S.A. Investment manager Metzler Asset Management GmbH Recommended holding period Medium and long term35
  36. 36. Important noteThe sub-funds mentioned are part of the Nordea 1, SICAV, an open-ended Luxembourg-based investment company (Société dInvestissement à Capital Variable), validly formed andexisting in accordance with the laws of Luxembourg and with European Community Directive 85/611/CEE of 20 December 1985.The custodian of the SICAV’s assets is Nordea Bank S.A., Luxembourg. Investments in the Nordea funds should be made on the basis of the current prospectus, which is available, alongwith the simplified prospectus, current annual and semi-annual reports, free of charge upon request from Nordea Investment Funds S.A., 562, rue de Neudorf, P.O. Box 782, L-2017Luxembourg, from the local representatives or information agents, or from our distributors.A transaction involving a foreign exchange transaction may be subject to fluctuations of currency values which may affect the value of an investment. Investments in Emerging Marketsinvolve a higher element of risk.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.Additional information for investors in Switzerland:The Swiss Financial Market Supervisory Authority (FINMA) has granted authorisation for Nordea 1, SICAV to be publically distributedwithin and from Switzerland. The documents listed above, as well as the Articles of Association, are available free of charge from the Swiss Representative and Paying Agent, NordeaBank S.A. Luxemburg, Zweigniederlassung Zürich, Mainaustrasse 21-23, CH-8008 Zürich. Telephone (+41) 44 421 42 42, Fax (+41) 44 421 42 82. Additional information for investors inGermany:The Information and Paying Agent in Germany is Nordea Bank Finland Plc, Niederlassung Deutschland, Grüneburgweg 119, D-60323 Frankfurt am Main. A hard copy of theabove-mentioned fund documentation is also available from here. Additional information for investors in Austria: Sub-paying Agent and Representative in Austria is the Erste Bank derÖsterreichischen Sparkassen AG, Graben 21, A-1010 Vienna. Additional information for investors in France: With the authorisation of the Autorité des Marchés Financiers (AMF) as per 11March 2003, 13 December 2005, 03 April 2007, 28 September 2007, 29 February 2008, 29 April 2008, 25 November 2008 and 09 June 2009, Nordea 1, SICAV may be distributed toinvestors in France, as published in the Bulletin des Annonces Légales Obligatoire dated 19 March 2003, 19 December 2005, 18 April 2007, 10 October 2007, 19 March 2008, 28 May2008, 15 December 2008 and 26 June 2009. Centralising Correspondent in France is CACEIS Bank, located at 1-3, place Valhubert, 75013 Paris. Investors are advised to conductthorough research before making any investment decision. Additional information for investors in Spain: Nordea 1, SICAV is duly registered in the CNMV official registry of foreigncollective investment institutions (entry no. 340) as authorised to be marketed to the public in Spain. In Spain, any investment must be made through the authorised distributors and onthe basis of the information contained in the mandatory documentation that must be received from the SICAV’s authorised distributor prior to any subscription, or that may be obtainedfrom the CNMV registries. Additional information for investors in Italy:Fund documentation as listed above is also available in Italy from the distributors and on the websitewww.nordea.it. The updated list of distribution agents in Italy, grouped by homogenous category, is available from the distributors themselves, at State Street Bank S.p.A. branches(located in the main towns of each region), BNP Paribas Securities Services, Banca Sella Holding S.p.A, Allfunds Bank S.A., Societe Generale Securities Services Sp.A. and on the websitewww.nordea.it. Any requests for additional information should be sent to the distributors. Before investing, please read the prospectus carefully. We recommend that you read the mostrecent annual financial statement in order to be better informed about the funds investment policy. For the risk profile of the mentioned sub-funds, please refer to the fund prospectus.Additional information for investors in the United Kingdom: Approved by Nordea Bank Finland Plc, London Branch, which is regulated by the FSA in the United Kingdom. Additionalinformation for investors in Latvia: The Representative and Paying Agent is Nordea Bank Finland Plc, Latvia Branch, 15, Kalku Street, LV-1050 Riga. Additional information for investors inEstonia: The Representative and Paying Agent in Estonia is Nordea Bank Finland Plc, Estonia Branch, Hobujaama 4, 15068 Tallinn. Additional information for investors in Lithuania: TheRepresentative and Paying Agent in Lithuania is Nordea Bank Finland Plc, Lithuania Branch, Didzioji str. 18/2, LT-01128 Vilnius. Shareholders must evaluate possible investment risks andtake this into consideration when making investment decisions.Performance calculated NAV to NAV (net of fees and Luxembourg taxes) gross income reinvested, in EUR, excluding initial and exit charges as per 31.10.2010.Sources: Metzler AM GmbH unless otherwise stated. The performance represented is historical; past performance is not necessarily a guide to the future and investors may not recoverthe full amount invested. The value of shares can fluctuate and is not guaranteed. Unless otherwise stated, all views expressed are those of Nordea Investment Funds S.A and MetzlerAM GmbH. This document may not be reproduced or circulated without prior permission. Reference to companies or other investments mentioned within this document should not beconstrued as a recommendation to the investor to buy or sell the same, but is included for the purpose of illustration.36

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