Provident Fund of Thailand Bangkok, February 26th 2015 THIS - - PowerPoint PPT Presentation

Presentation for the Association of Provident Fund of Thailand

Bangkok, February 26th 2015

THIS DOCUMENT HAS BEEN PREPARED FOR CIRCULATION TO PERSONS REASONABLY BELIEVED TO BE WITHIN ONE OF THE EXEMPTIONS CONTAINED IN THE ACT ON MUTUAL FUNDS (48/1999, AS AMENDED) AND ACT ON INVESTMENT SERVICES (SIJOITUSPALVELULAKI 747/2012, AS AMENDED) IN FINLAND (“PROFESSIONAL INVESTOR EXEMPTION”) OR TO WHOM THIS DOCUMENT MAY OTHERWISE LAWFULLY BE COMMUNICATED TO GIVE PRELIMINARY INFORMATION ABOUT THE INVESTMENT STRATEGIES AND OTHER INFORMATION DESCRIBED HEREIN. IT IS A CONFIDENTIAL COMMUNICATION TO, AND SOLELY FOR THE USE OF, SUCH PERSONS. THIS PRESENTATION IS NOT DIRECTED AT ANY PERSON IN ANY JURISDICTION WHERE (BY REASON OF THAT PERSON’S NATIONALITY, RESIDENCE, CLIENT CLASSIFICATION OR OTHERWISE) AVAILABILITY OF THIS PRESENTATION IS PROHIBITED. IT IS THE RESPONSIBILITY OF EVERY PERSON RECEIVING A COPY OF THIS DOCUMENT TO SATISFY HIMSELF AS TO THE FULL OBSERVANCE OF LAWS OF ANY RELEVANT COUNTRY.

Agenda

• 1. Estlander & Partners - Company overview and background
• 2. Regulation & Risk Management
• 3. Benefits of Managed Futures
• 4. Our investment strategies
• 1. Trend following – Freedom
• 2. Asset Allocation – E&P Dynamic
• 5. Key People
• 6. Summary

Estlander & Partners - company

AUM

• Approx. USD 540 million (including notional assets,

01/2015) Strategies Trend following - Freedom Asset Allocation - Dynamic People Portfolio management team of 9 professionals Team with solid trading experience and award-winning PhDs University cooperation since 1998 attracting top talents Offices Helsinki, main office and client relations Vaasa, operations, trading and portfolio management Munich, client relations

Estlander & Partners – client service

• Committed effort to educate Thai investors on managed futures and

alternative investments in general since 2010

• Senior consultant in Thailand: Gunnar Björhn
• Tailored & transparent reporting for clients

Unique and competitive location

Finland

• EU member since 1995
• AAA-credit rating
• Successful universities and top level

competence

• Best business environment in the world

2009-2013 (Economist Intelligence Unit, EIU)

• Finland is the world’s best place to live in

(Newsweek magazine 2010)

Regulation & Risk Management

Regulation & Oversight

• Independent non-executive board oversees the activities of the

company

• Estlander & Partners Ltd is registered with and regulated by the

Finnish Financial Supervisory Authority

• Company level: Quarterly filings of books and records and company

capital requirements.

• Fund level (specifically for the Finnish AIF funds administered by

E&P): Daily filings of positions and monthly filings of NAV calculations.

• Registered with the CFTC (Commodity Futures Trading

Commission) and the NFA (National Futures Association) in the USA since 1996

• Registered with the SEC in the USA since 2013

Risk management

• Independent Risk Manager
• Experienced risk management team
• Drawdown control is primary focus
• Top rated counterparties
• Multiple integrity checks on multiple levels of the operational process
• Continuous monitoring of portfolio risk and market events

Risk Management

• Appointed independent

Risk Manager oversees

– market risks – trading and portfolio risks –

• perational risks

– reports directly to CEO

• Risk Committee oversees

–

• verall company risks

– reports directly to Board

Executive Board Operations IT Portfolio Management Risk Manager CEO Estlander & Partners Ltd Risk Committee Sales and Marketing

Drawdown control rather than volatility control

Drawdown risk is managed through control of worst possible outcome

• Proprietary Achilles risk approach

Achilles risk computation

• Forward looking analysis of correlation breakdowns and large market moves
• Simulation of scenarios where all positions are closed
• Worst case instrument scenarios are aggregated to a worst case portfolio loss

Achilles risk management

• Monitored by Risk Manager
• Strategy-specific assessment and alerting

• Forward-looking simulations over 20 days with over 3 x 10100 scenarios
• Broad range of scenarios

– Correlation breakdowns – Trend reversals – Range-bound markets

• Full model dynamics taken into account

– Signals recalculated over each simulation path – Models stopped out at predefined levels

• Achilles risk = worst possible outcome over all scenarios
• Monitored for the whole portfolio as well as individual models

Achilles Scenario Analysis

Achilles: Directional move in two markets

Example of Trend Model response to directional moves

Benefits of Managed Futures

Why Managed Futures?

• Good diversifier to traditional assets such as equities and bonds
• Unlike many other alternative investments, managed futures tend to

perform well during equity crashes.

• Systematic and efficient risk management
• Futures markets are liquid, transparent and regulated
• Institutional investors are increasingly allocating to managed futures to

diversify their equity exposure

• Managed futures are liquid investments

• Very low trading costs
• Enables an active and efficient risk management
• Regulated and transparent markets
• Central clearing, daily settlements: low counterparty risk
• Good liquidity in a range of markets across equity indices, interest rates,

currencies and commodities

• Over 20 years of experience from futures trading and global capital

management

Positions through exchange traded futures

$- $50 $100 $150 $200 $250 $300 $350 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Billions of US dollars CTA AUM

Growth of CTA investing

Assets invested in CTAs have increased

• ver 50 % since the

end of 2008 and 740% since the end of 2000.

Source: BarclayHedge

Global diversification of CTAs

32 32 % 24 24 % 24 24 % 20 20 %

Commodities Currencies Interest Rates Equities

Market sector allocations Trading across global exchanges

The market sector allocation shown is for the Estlander & Partners Freedom program and is for illustrative purposes only. Source: Estlander & Partners and Bloomberg.

FIXED INCOME CURRENCIES COMMODITIES

BILLS

Euro Polish zloty

ENERGIES METALS

Australian 90 day bank bills US dollar Turkish lira Crude Oil Copper Canada 3 month Bank Accept. Japanese Yen Israeli shekel Brent Crude Oil Aluminium Euribor 3 month British Pound Russian ruble Heating Oil Lead Eurodollar 3 month Swiss Franc Indian rupee RBOB Gasoline NY Zinc Euroswiss 3 month Canadian dollar Mexican peso Natural Gas Nickel US fed funds 1 month Australian dollar South African rand Gas Oil Tin New Zealand 3 month New Zealand dollar Brazilian real Goldman Sachs Index Gold Short Sterling 3 month Norwegian krone Korean won Silver Swedish krona Singapore dollar Platinum Czech koruna Taiwan dollar Palladium Hungarian forint

BONDS

Australian 3yr T-Bond

EQUITIES

GRAINS MISC COMDTY

Australian 10yr T-Bond Wheat Coffee GBR 10yr T-Bond S&P 500 DJ Euro Stoxx 50 Corn Cocoa LCE Canada 10yr Bond S&P Canada 60 Index South African ALSI Soybeans Cocoa German 2yr T-Bond FTSE Korean KOSPI Index Soybean Meal Sugar German 5yr T-Bond DAX MSCI Taiwan Soybean Oil Cotton German 10yr T-Bond CAC 40 US S&P 400 MidCap Rapeseed (Canola) Crude Palm Oil German 30yr T-Bond FTSE MIB Index European Stoxx 600 Banks White Maize Live Stock Swiss 10yr Gvt. Bond IBEX 35 Index Hong Kong H-Shares Shares Feeder Cattle US 2yr T-Bond Australian S&P 200 Malaysian KLI Lean Hogs US 5yr T-Bond Nikkei 225 Index Swedish OMX Stockholm 30 US 10yr T-Bond Hong Kong Hang Seng Indian S&P CNX Nifty US 30yr T-Bond Nasdaq 100 Index MSCI Singapore Japan 10yr T-Bond Russell 2000 Index Korea 3yr T-Bond

Global diversification of CTAs

Benefits of CTAs for Thai investors

Period: October 1991 – January 2015. *Stocks and bonds corresponds to a monthly rebalanced portfolio Index of 60% Stock Exchange of Thailand Total Return Index (THSETRI Index) and 40% ThaiBMA Total Government Bond Index (TBG5TOTR Index). Portfolio alterations: Oct 1991 – Jan 1999: 100% Equities (No bond index data available). Oct 1991 – Dec 2001: Stock Exchange of Thailand SET Index (SET Index) used (no total return index). **CTA corresponds to the Estlander & Partners Freedom Composite. Source: Estlander & Partners, Bloomberg and the Stock Exchange of Thailand (www.set.or.th).

Past performance is not necessarily indicative of future results.

• 100%
• 75%
• 50%
• 25%

0% 0% 2% 4% 6% 8% 10% 15% 17% 19% 21% 23% 25%

Maximum historical drawdown Expected Return

Max historical drawdown Expected Return

Portfolio is increasing the allocation to CTAs 0 % CTAs** 100 % stocks and bonds 50 % CTAs** 50 % stocks and bonds* 25 % CTAs** 75 % stocks and bonds*

Benefits of CTAs for Thai investors

MANAGED FUTURES* VS. EQUITIES’ WORST QUARTERS

Past performance is not necessarily a guide to future returns. *Estlander & Partners Freedom Program

Source: Estlander & Partners Ltd, Bloomberg

MANAGED FUTURES* OFFER THE POTENTIAL TO INCREASE RETURN WHILE LOWERING OVERALL PORTFOLIO RISK

Correlation Managed ged Futu tures es* Thai Equities Thai Bonds Managed Futures* Thai Equities 0.08 08 Thai Bonds 0.08 08

• 0.07

*Estlander & Partners Freedom Program. Equities Portfolio: Stock Exchange of Thailand Total Return Index (THSETRI Index) Equities and Bond Portfolio: 60/40 allocation to Equities portfolio and Bond Portfolio (ThaiBMA Total Government Bond Index). Monthly rebalancing. Diversified Portfolio. 80% allocated to Equities and Bond Portfolio, 20% allocated to Freedom. Monthly Rebalancing. Time period for all portfolios: 10/1991 – 1/2015

26% 16% 13%

• 75%
• 50%
• 25%

0% 25% 50% THAI Equity Portfolio THAI Equity/Bond Portfolio Diversified Portfolio Expected Return Max historical drawdown Return Volatility

• 30%

0% 30% Q3 1999 Q1 2000 Q2 2000 Q3 2000 Q3 2001 Q3 2002 Q1 2004 Q3 2008 Q4 2008 Q3 2011 Freedom Return THAI Equity Return

Our investment strategies

Trend following - Freedom Diversified trend following futures portfolio across all four major asset classes Asset Allocation - Dynamic ‘Traditional’ asset allocation portfolio enhanced with effective risk management

Past performance is not necessarily indicative of future results.

Trend following – Freedom

Why trend following?

• Mass psychology creates trends
• Fear and greed

 Pack behavior => market trends

• This will not change over time. Investors do not act rationally but more often based on

emotion.

• Trend followers are reactive
• Active re-allocation of resources based on market movements
• We identify market trends, we do not predict them. Our models are kept reactive at all

times.

• Effective allocation between different asset classes
• Bonds, equities, interest rates, currencies and commodities. Long and short positions,

125 markets i.e. 250 trading possibilities.

• If there is insequrities in bonds and equities, strong trends can still appear within other

asset classes. And even if there are good returns in bonds and equities, the riskpremium can be better in e.g. commodities.

The contents of this material is purely for informational purposes. The views in this material reflect Estlander & Partners view on the future.

Estlander & Partners Freedom

Trade example: Gold October 2008 – November 2011

• Gold price has rallied almost 400% since 2002
• Trend following strategies take advantage of trends in different markets
• Identification of solid trends, high level of trade selectivity

Source: Estlander & Partners Research. Past performance is not necessarily indicative of future results.

700 1000 1300 1600 1900 Oct-08 Jul-09 Apr-10 Jan-11 Oct-11 Long Position Short Position GC

Freedom in brief

• Freedom is a combination of all the models developed within Estlander &

Partners.

• Underlying models have live track records dating back to 1991.
• An investment in Freedom thus benefits from Estlander & Partners’ full

experience of trend following over the past 23 years, and improves the expected return and risk of a traditional portfolio:

• Access to non-traditional markets
• Non-correlated to financial markets, and low correlation to most hedge fund

strategies

• Freedom is an effective hedge during market turmoil
• Invests in liquid, exchange traded instruments

Free eedom dom Portfol rtfolio io

Systematic macro models Short term models Trend based models

Freedom portfolio

The investment strategy

• Robust, highly disciplined, systematic approach revolving around price

movements

• 125 markets scanned to identify promising price moves
• Look for situations with high reward to risk characteristics
• Highly selective use of trading opportunities
• Broadly diversified over sectors, asset classes, geography
• Strict risk management
• Risk managed on several layers of the investment process
• Full focus on drawdown control as opposed to volatility control
• Portfolio risk and market events monitored 24 hours a day
• Portfolio risk management is an independent function

Freedom composite track record

500 1000 2000 4000 8000 16000 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Freedom Composite Credit Suisse Managed Futures Index

The figures presented for the Freedom program are on a composite basis. The Freedom composite performance is hypothetical up until and including July 2010 and as of August 2010 actual composite performance. The composite performance for the Freedom program has up until and including July 2010 been calculated as the sum of 35% of the actual monthly returns of the Global XL program and 65% of the actual monthly returns of the Alpha Trend program (both on a composite basis and net of pro-forma fees, i.e. a management fee of 1.75 % p.a. and a quarterly incentive fee of 20 %). The allocation between the programs has been determined in order to achieve an equal risk exposure to both programs. As of August 2010, the composite performance for the Freedom program has been calculated on all non-restricted client accounts managed by Estlander & Partners Ltd according to the Freedom program, taking into account the same pro-forma fee levels as mentioned above. Historical performance is not necessarily indicative of future results. Returns in different client accounts applying the Freedom program can deviate from the return

• f the trading program depending on e.g. investment timing, base currency, fee differences and fee accrual periods. Past performance is not necessarily indicative of future results. Data as of

January 2015. Source: Estlander & Partners & hedgeindex.com

Asset Allocation – E & P Dynamic

E & P Dynamic - summary

• A ’traditional’ asset allocation portfolio enhanced with effective risk

management

• Broad diversification on global markets
• Active allocation between assets
• Equities has a 60 % weight in the portfolio during ”normal times”
• Leverage used during times of strong equity performance to enhance

returns

• Systematic risk management cuts the equity risk during times of uncertainty

E & P Dynamic – Drivers

• 1. Performance from long term rising equity and bond markets
• 2. Systematic risk management seeking for risk offsetting positions
• 3. Allocation away from equities in falling markets
• 4. Momentum for timing of re-entries

The investment strategy

• The equity weight changes between 30 -130 %, leverage used during

times of strong equity run ups to maximize the return

• As risk aversion increases other assets are more attractive than equities

=> the weighting of other assets in the portfolio is automatically increased

• Active optimization of the allocation based on the market environment:

1) Proprietary risk sentiment indicator

• Continuous monitoring of the risk sentiment on the market
• The indicator determines the risk level on the markets and controls the

allocation between equities and bonds in the portfolio 2) Momentum indicator

• If positive momentum is detected in a market, its weight is increased in

the portfolio.

• The momentum filter is applied both in equities and bonds

Positions through exchange traded futures

• Very low trading costs
• Enables an active and efficient risk management
• Regulated and transparent markets
• Over 20 years of experience from global capital management

Sydney ASX Singapore SGX Madrid MEFF New York ICE US NYMEX COMEX Winnipeg ICE Canada Chicago CME CBOT CBOE Montreal MX Lontoo LIFFE LME Saksa EUREX Hong Kong HKEX Tokyo TFX TSE

Geographical diversification – equities and bonds

50 % 36 % 14 % Bonds

US Euro Japan, Australia, Canada

50 % 21 % 29 % Equities

US Euro Japan, Australia, Canada, Hong Kong

Japan, Australia, Hong Kong, Canada USA Europe USA Europe Japan, Australia, Canada

• Base allocation
• The geographic weighting changes dynamically for maximum return

Risk sentiment indicator

Source: Estlander & Partners. Data for the period 01/2005-12/2013. Risk sentiment indicator MSCI ACWI- equity index

• Measures the general market risk sentiment
• The allocation between equities and other assets is based on this indicator
• ”100 %” corresponds to maximum equity weight

01/2005 01/2006 01/2007 01/2008 01/2009 01/2010 01/2011 01/2012 01/2013 01/2014

Momentum indicator

Source: Estlander & Partners. Data for the period 01/1996-12/2013. Momentum indicator S&P 500

• Systematic analysis of every market’s medium and long term

momentum

• Positive momentum leads to a higher weight for the corresponding

market

01/1996 01/1998 01/2000 01/2002 01/2004 01/2006 01/2008 01/2010 01/2012 01/2014

Variation in the equity weight

Equity weight: The size of the allocation in relation to the total portfolio, between 30% – 130%. MSCI ACWTRI: Total return index for the global equity markets. Data for the period 01/2011 – 12/2013. Source: Estlander & Partners, Bloomberg.

Variation in the bond weight

Bond weight: The size of the allocation in relation to the total portfolio, between 60 – 220%. DB GGI-bond index: Deutsche Bank Global Government Hedged EUR Index. Data for the period 01/2011 – 12/2013. Source: Estlander & Partners, Bloomberg.

Simulated Dynamic returns vs benchmark

Dynamic (net): Net of management fee (1,4% p.a.). Includes estimated return on cash. Cash: 80%. Interest rate: 1 week Euribor – 15bps. Data for the period 01/1999 – 12/2013. *The benchmark is based on the MSCI All Country World Index Net TR EUR since January 1st 2001 . Prior to January 1st 2001, the index has been calculated by adjusting the base currency of MSCI All Country World Index Net TR USD. Source: Estlander & Partners, Bloomberg.

Benchmark : 60% MSCI All Country World Index Net Total Return EUR*, 40% DB Global Government Hedged EUR Index

Dynamic (net) Benchmark Dynamic (net, simulated) Benchmark Return p.a. 8,9 % 4,2 % Volatility 8,7 % 9,9 % Return/Volatility 1,01 0,43

• Max. drawdown
• 15,8 %
• 33,4 %

01/1999 01/2001 01/2013 01/2011 01/2009 01/2007 01/2005 01/2003

Past performance is not necessarily indicative of future results.

*The performance for Estlander & Partners Dynamic has been calculated based on the performance of Estlander & Partners Dynamic Fund non-UCITS class C’s (management fee 0,9 %) actual performance net of fees. Returns in different client accounts applying the Dynamic program can deviate from the return of the trading program depending on e.g. investment timing, base currency, fee differences and fee accrual periods. Data for the period 28/4/2014 – 18/2/2015. Source: Estlander & Partners. Past performance is not necessarily indicative of future results.

Dynamic program performance since inception*

Dynamic program Return since Dynamic inception (Apr 28 2014)* 11.5 %

1000 1020 1040 1060 1080 1100 1120 1140 Apr-14 Jul-14 Oct-14 Jan-15 Dynamic program

Key people

Martin Estlander – Chairman Martin Estlander is the founder and Chairman of Estlander & Partners. He is also the developer of Estlander & Partners Global Markets, the company’s first managed futures program launched in 1991. Martin has an active role in the company’s research and product development. Estlander & Partners manages three different managed futures programs with long and solid track records. Martin has over 25 years of experience in investment management. Starting his career in stock picking for Iconova Oy, he cofounded market maker Sophos Ab in 1987, where he was involved in trading derivative instruments. Next year he co-founded Servisen Arctos & Partners Oy in Helsinki, with Servisen Arctos & Partners GmbH (SAP) established in Frankfurt as a Eurex market maker in

• 1990. The option market making business was further extended through
• perations on

the Swiss and Norwegian exchanges. As a result of a management buyout in 1992, the companies were rebranded as Estlander & Rönnlund. In 2009 the name of the company was changed to Estlander & Partners Ltd. Martin is member of some selected boards, such as Wello Oy, a Finnish company focusing on creating an ecological solution to harness wave energy from the ocean. He holds a MSc in Industrial Management and Computer Sciences from the Helsinki University of technology.

Mathias Österberg - CEO Mathias Österberg joined Estlander & Partners in 2006 as researcher and trader. Until 2009 Mathias Österberg managed the company’s own portfolio as well as managed and developed proprietary systematic cash equity day-trading strategies. Since February 2010 Mathias Österberg held the position as Head of IT and was responsible for software development and

• verall infrastructure functionality. As of 2012 Mathias also acted as Head of Research. He

was also a member of the company’s Risk Committee. In June 2014 he was promoted to CEO

• f Estlander & Partners.

Mathias Österberg was awarded his MSc in Physics from the University of Helsinki in 2007. Daniel Djupsjöbacka – Risk Manager Daniel has been with Estlander & Partners Ltd since 2000 and works as Risk Manager. He is responsible for market risk management and operational risk management related to the trading process. Other tasks include overall responsibility for the development of Estlander & Partners’ business strategy. Daniel is a member of the executive committee and the Board of Directors of Estlander & Partners Ltd. His previous commitments in the organization include Discretionary Trading (Options Market Making), development and management of intra-day equity models, Market Research and Research Coordination as well development of systematic trading models. Daniel holds a PhD in Finance from Swedish School of Economics and Business Administration. The thesis was awarded 3rd price in the EDAMBA thesis competition for European theses in the Business Administration and Management area

• 2007. Daniel also holds an MSc in Actuarial Mathematics from Åbo Akademi University in

Turku.

Per-Johan West – Chief Financial Officer Per-Johan West is the Chief Financial Officer of Estlander & Partners Ltd and a member of its Executive Board as well as chairing the Risk Committee at Estlander & Partners. At Estlander & Partners, Per-Johan West is responsible for Finance, Compliance, all aspects of Fund Valuation and Performance Measurement, the overall responsibility for Operations and System Development of the integrated operational platform. He also heads the Human Resources function. Per-Johan joined Estlander & Partners in 1997 as Head of Finance and

• Operations. Previously Per-Johan worked several years as Project and Account Manager at

ICL Fujitsu Ltd in Finland. Per-Johan holds an MSc in Accounting from the Swedish School of Economics in Vaasa and a Bachelor’s degree in Information Technology from University of Applied Sciences in Vaasa. Niclas Carlsson - Portfolio Manager Niclas joined Estlander & Partners in 2003 as a Portfolio Manager and researcher. Between 2007 and 2012 he worked as Risk Manager and also did research related to quantitative risk

• management. Since 2013 he is again a Portfolio Manager and researcher. Niclas holds a PhD

in Applied Mathematics from Åbo Akademi University in Turku.

Anders Kulp – Portfolio Manager Anders Kulp joined Estlander & Partners Ltd in March 1998. Until 2003 he was involved in equity options market making as well as cash equity day-trading. In 2004 he started to develop systematic intraday trading and hedge strategies that now are a part of the Global Markets strategy. In January 2010 Anders started to manage the trading execution desk and was responsible for operating the trading strategies, involving the process from importing model input and generating orders, to trade reconciliation. Since March 2013 Anders is Portfolio Manager for systematic intraday trading strategies and also responsible for execution quality and development of execution algorithms. Anders Kulp holds a MSc from Swedish School of Economics and Business Administration. Gunnar Bjöhrn – Senior consultant in Thailand

Summary

Track record

• We have more than 20 years' experience in trading futures markets through

continuously refined and improved trading strategies Location

• Finland, highly competitive environment with close relationship to top university talent

Holding period

• Our average holding period of 30-40 days is notably shorter than many leading CTAs

Selectivity

• We look for situations with high reward to risk characteristics and are highly selective

in our use of trading opportunities Drawdown control

• Whereas taking on volatility can be profitable, controlling drawdowns at all times is
• ur understanding of risk management

Commodity exposure

• We maintain a sufficient exposure to commodity markets, generating excellent

returns and contributing to diversification

What makes us different

Disclaimer

THIS DOCUMENT HAS BEEN PREPARED FOR CIRCULATION TO PERSONS REASONABLY BELIEVED TO BE WITHIN ONE OF THE EXEMPTIONS CONTAINED IN THE ACT ON MUTUAL FUNDS (48/1999, AS AMENDED) AND ACT ON INVESTMENT SERVICES (SIJOITUSPALVELULAKI 747/2012, AS AMENDED) IN FINLAND (“PROFESSIONAL INVESTOR EXEMPTION”) OR TO WHOM THIS DOCUMENT MAY OTHERWISE LAWFULLY BE COMMUNICATED TO GIVE PRELIMINARY INFORMATION ABOUT THE INVESTMENT STRATEGIES AND OTHER INFORMATION DESCRIBED HEREIN. IT IS A CONFIDENTIAL COMMUNICATION TO, AND SOLELY FOR THE USE OF, SUCH PERSONS. THIS PRESENTATION IS NOT DIRECTED AT ANY PERSON IN ANY JURISDICTION WHERE (BY REASON OF THAT PERSON’S NATIONALITY, RESIDENCE, CLIENT CLASSIFICATION OR OTHERWISE) AVAILABILITY OF THIS PRESENTATION IS PROHIBITED. IT IS THE RESPONSIBILITY OF EVERY PERSON RECEIVING A COPY OF THIS DOCUMENT TO SATISFY HIMSELF AS TO THE FULL OBSERVANCE OF LAWS OF ANY RELEVANT COUNTRY. THE INFORMATION PROVIDED HEREIN IS FOR INFORMATION PURPOSES ONLY AND SUBJECT TO CHANGE WITHOUT

• NOTICE. NOTHING IN THIS DOCUMENT SHALL/SHOULD BE CONSTRUED AS A SOLICITATION, AN OFFER, AN INVITATION

OR RECOMMENDATION TO ACQUIRE OR DISPOSE OF ANY INVESTMENT IN ANY PRODUCT MANAGED OR ADVISED BY ESTLANDER & PARTNERS LTD NOR DOES IT CONSTITUTE AN OFFER FOR SALE OF ANY SUCH PRODUCT OR TO PROVIDE ADVISORY SERVICES OR TO ENGAGE IN ANY OTHER TRANSACTION. HISTORICAL PERFORMANCE IS NOT AN INDICATION FOR FUTURE RESULTS. THIS DOCUMENT IS ISSUED BY ESTLANDER & PARTNERS LTD FOR THE BENEFIT OF THE CATEGORY OF PERSON DESCRIBED IN THE FIRST PARAGRAPH ABOVE. IT IS NOT ADDRESSED TO ANY OTHER PERSON AND MAY NOT BE USED BY THEM FOR ANY PURPOSE WHATSOEVER. CONSEQUENTLY, THIS DOCUMENT AND THE INFORMATION CONTAINED HEREIN MAY NOT BE REPRODUCED OR DISSEMINATED IN WHOLE OR IN PART BY ANY RECIPIENT HEREOF OR ANY OTHER THIRD PARTY WITHOUT THE PRIOR WRITTEN CONSENT OF ESTLANDER & PARTNERS LTD. WHILE ESTLANDER & PARTNERS LTD ENDEAVORS TO KEEP THE INFORMATION UP TO DATE AND CORRECT, ESTLANDER & PARTNERS LTD OR ANY OF THE COMPANIES IN THE ESTLANDER & PARTNERS GROUP MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, ABOUT THE COMPLETENESS, ACCURACY, RELIABILITY, SUITABILITY OR AVAILABILITY WITH RESPECT TO THE PRESENTATION OR THE INFORMATION, PRODUCTS, SERVICES, OR RELATED GRAPHICS CONTAINED IN THE PRESENTATION FOR ANY PURPOSE. ANY RELIANCE YOU PLACE ON SUCH INFORMATION IS THEREFORE STRICTLY AT YOUR OWN RISK. IT IS THE RESPONSIBILITY OF EVERY PERSON RECEIVING A COPY OF THIS DOCUMENT TO SATISFY HIMSELF AS TO THE FULL OBSERVANCE OF LAWS OF ANY RELEVANT COUNTRY.

Contact details

Estlander & Partners Ltd. Helsinki office:

Pohjoisesplanadi 25 B 00100 Helsinki, Finland Phone: +358 (0)20 7613 300 Fax: +358 (0)20 7613 329 Email: info@estlanderpartners.com

Vaasa office:

Alatori 1 A 65100 Vaasa, Finland

www.estlanderpartners.com