SEB Russia Fund

1 SEB Russia fund Monthly report as of December 31, 2018. Past performance does not guarantee future performance. The value of investment Key facts funds and other financial instruments may rise as well as fall and there is no guarantee you will recover your original investment. Key investor information documents and fund Manager Pavel Lupandin AS SEB Varahaldus prospectuses are available on Year of launch 2006. Value at launch December was a very volatile month. The Russian RTS dollar index was compared to (EUR). the previous month. Oil dropped -35% when the markets failed to calm down despite OPEC fund Management SEB Investment Management reducing its commitments. Additionally, the ruble weakened at the end of the year as Company AB. weaker oil prices finally started to affect the currency. Risk Level (SRRI- 7 - High Risk1. scale 1-7). Although the fund underperformed the index in 2018, it was up in absolute terms in EUR.

2 ISIN-code LU0273119544. Underperformance was due to the fund 's underweight in Tatneft which we regard as Base Currency EUR. expensive, as well as Obuv Rossii and Sistema. Both these small cap names suffered from Share Class EUR 2. poor liquidity and local economy exposure. In the case of Sistema, corporate specific NAV events also played a role. Relatively positive contributions from the underweight in Magnit, AuM 1 933. MTS and Rushyhdro were insufficient to offset underperformance. We believe the difficulty Number of 47. currently lies in balancing out growth outlook and demand for oil, supply outlook for US. Holdings shale producers with their ever-shifting cost curve, and the impact on Russia , its currency, Legal Structure UCITS. and its risk premium from sanctions. The market seems to have priced in many of these Morningstar **. risks associated with the Russian market. Russia remains fairly resilient in the current rating, (2018-11- environment and we regard it as inexpensive historically speaking.)

3 However, investor 30). outlook on global growth remains a strong factor that is difficult to predict. The issue of Turnover Ratio 3. sanctions in Russia continues; we expect to see continued headlines in the first half of Use of derivatives YES4. 2019. The fund took profits in November and December, and we increased the fund 's Management Fee exposure to Surgutneftegaz preferred shares. At the time of writing, these shares have (%). what we regard as an attractive dividend yield. In fact, Surgutneftegaz is currently our top Ongoing Charges 5. active position. The fund 's portfolio ended the year with a healthy mix of Russian financials (Sberbank, attractive valuation and dividend yield), energy (Lukoil, attractive yield and 1 The value of the fund may vary substantially extensive buyback) and more energy (Gazprom, yield outlook improvements). We continue because of its composition and the portfolio to look for interesting investment stories on a stock level.

4 Management methods applied by the management company. We remain focused on stock picking and continue looking for attractive investment 2 When applicable, dividends are paid in cash the opportunities within our mandate. We keep focusing on stock picking and relative value, subsequent fiscal year. 3. and we continue to believe this is best found in sectors. 12 months rolling, last updated 2018-12-31. 4 Derivatives may be used to achieve the investment objectives and to facilitate fund management. Performance % (net of fee) 5 The ongoing charges includes the management fee and constitutes payment for fund management, including marketing and distribution. The ongoing charges does not include transaction costs such as brokerage commissions on securities transactions. Last updated 2018-12-31. Return % EUR. Accumulated since fund Benchmark*. 1 month 3 months SEB Russia fund MSCI Russia 10/40 (Net Return) Year to date 1 year Source: SEB and Rimes.

5 Inflation is not taken into account when calculating the fund 's return. 3 years % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD YTD. 5 years Index 2018 Average annual growth 2017 3 years 2016 5 years 2015 - * Benchmark including dividend 2014 - SEB Russia fund , 2018-12-31. Performance attribution YTD % (gross of fee) Risk measures fund Index Relative Allocation Selection Interaktio Total Standard Deviation ( fund ) Effect Effect n Effect Effect Standard Deviation (Index) Communication Services Tracking Error Consumer Discretionary Sharpe Ratio Consumer Staples Information Ratio Energy Beta Financials Industrials Top 10 largest positions % of total Information Technology Surgutneftegas OJSC Materials Gazprom Real Estate Sberbank of Russia Utilities LUKOIL Not Defined - - - MMC Norilsk Nickel fund Total Tatneft Halyk Savings Bank of Kazakhstan JSC Sector allocation%. Rosneft Oil Co PJSC QIWI plc Magnit PJSC Geographic allocation Russia Other SEB Russia fund MSCI Russia 10/40 (Net Return).

6 Source: SEB. The fund 's investment policy This equity fund invests mainly in companies listed or traded in Russia or companies that derive at least 40 percent of their sales or profit from Russia . The fund may also invest in companies that are listed or traded on regulated markets in the Commonwealth of Independent States and countries in the surrounding region or which derive at least 40 percent of their sales or profits from one or several of the eligible countries mentioned in the fund 's prospectus. Our fundamental investment process enables us to identify what we regard as undervalued, good quality companies that have a healthy growth potential and a skilled management team. Since the fund invests in securities that are issued in other currencies than the base currency of the fund the return may be affected by changes in the exchange rates. Important information The contents of this report are primarily for an institutional target group.

7 More information about the fund is available in the fund 's product sheet on The report contains a preliminary estimate of data for fund valuation and does not constitute the final values. For the final fund value, please refer to the fund 's annual and semi annual reports on This material is prepared by SEB and contains general information regarding financial instruments marketed, sold or solicited by SEB. Neither this material nor the products described in it are intended for distribution or sale in the United States or to US. persons, and any such distribution is not allowed. The offering of shares or units in the funds may also be restricted in other jurisdictions. This document may not be used to make an offer or solicitation with respect to the sale of shares or units where such an offer or solicitation is unlawful. Although the information in this material is based on sources deemed by SEB to be reliable, SEB assumes no liability whatsoever for incorrect or missing information or for any loss, damage or claim arising from the use of this material.

8 If you or a fund invests in financial instruments denominated in a foreign currency, changes in currency exchange rates can affect the return on the investment. SEB makes no representation that funds whose share or unit classes aim at hedging the fund 's return from changes in currency exchange rates will succeed in achieving this. Any tax information in this material is based on regulations valid as per the date of this presentation and may be subject to change. Note that any tax information in this material is general. Kindly contact your SEB. investment advisor for tax and investment advice appropriate for your situation. You are fully and solely responsible for your investment decision. This material is not intended for or suitable as the sole basis for investment decisions. Instead, you should base your decision on the information in the fund 's product documentation, including its fact sheet, Key Investor Information Document, fund regulations and prospectus.

9 These are available o