R GLOBAL HEALTHCARE EQUITY LONG/SHORT. OUTSTANDING PERFORMANCE IN - - PowerPoint PPT Presentation

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GLOBAL HEALTHCARE EQUITY LONG/SHORT.

S U P E R V I S E D B Y T H E S W E D I S H F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y . N O : 0 3 5 2 2 1

OUTSTANDING PERFORMANCE IN A COMPLEX MARKET.

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Diversified long short in global healthcare AUM: EUR491m, USD542m Launch: Jun 2009 Total Return: +302%

• Ann. Return:

+25% net since inception Instruments: Equity, equity derivatives and indices. No of core 50-80 in a universe of 500 positions: 58 on average for Q3 2015 Historical Av. Min Max Gross 156% 52% 218% Net 120% 37% 153% Long 138% 44% 176% Short

• 18%
• 5%
• 43%

ESSENTIAL INFORMATION CONTENTS

Scientific advisory …………………………………………… 4 Investment process …………………………………………. 5 Portfolio construction ……………………………………….. 6 Risk management …………………………………………… 7 Performance …………………………………………………. 8 Fund facts ……………………………………………………. 9 Appendices …………………………………………………... 10 Healthcare in context ……………………………………….. 16 Data bank……………………………………………………… 22

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All information based on data from the Administrator, SEB as of end Oct 2015 unless otherwise stated

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• Over 20 years managing successful healthcare funds.
• World renowned industry professionals each with over 30

years experience, actively involved through the Scientific Advisory Board.

• Unquestionable alpha generation, outperforming all

relevant indices and top quartile in all relevant rankings.

• Long term investment horizon:
• Diversified across subsectors, company size and

geographies to lower volatility.

• Active trading around holdings.
• Predominantly cash flow positive companies.
• Typically investing post approval, mitigating event risk.

SUMMARY

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OUTSTANDING SPECIALIST KNOWLEDGE

Both Scientific Advisory Board (SAB) and Rhenman & Partners Asset Management (RPAM) members meet quarterly to review products, projects and companies and provide valuable feedback

Scientific Advisory board members Rhenman & Partners Asset Management external board members

HENRIK RHENMAN

• CIO
• 20+ years in portfolio

management investing in healthcare

• Founded and acted as CIO

at Carnegie Healthcare Funds

• PROF. BERTIL HÅLLSTEN
• Honorary Chairman
• 40+ years in healthcare
• Royal College of Forestry
• Managed SEB Pharmaceutical

Fund

• PROF. TOMAS OLSSON
• 30+ years in healthcare
• Professor of Neurology
• Expert in autoimmunity and

diseases in the nervous system

• Member of the Nobel

Assembly

• PROF. STEN NILSSON
• Chairman
• 30+ years in healthcare
• Professor of Oncology –

Pathology

• Was MD of Radiumhemmet
• PROF. PETER ARNER
• 30+ years in healthcare
• Professor of Medicine
• Expert in metabolism,

endocrinology and internal medicine

• PROF. HANS WIGZELL
• Chairman
• 40+ years in healthcare
• Professor of Immunology
• Was Chairman of Nobel

Committee for Medicine and Physiology

• Expertise in infectious

disease control

BIRGITTA STYMNE GÖRANSSON

• 25+ years in healthcare
• Expertise in Biotechnology

and Chemical Engineering

HÅKAN ÅSTRÖM

• 30+ years in healthcare
• Expertise in the

pharmaceutical industry

• Quarterly meetings and continuous

dialogue

• Enhanced knowledge of scientific

rationale, clinical trials, clinical usage, products, companies and market trends

• Key to assessing research and

developments in the healthcare sector

• Properly weighing the investments with

informed feedback

• Diverse expertise covering all sub-

sectors of healthcare

• Access to the latest academic and

institutional research projects

Rhenman & Partners Asset Management investment team

ELLINOR HULT

• Assistant portfolio manager
• Research analyst
• 8+ years Equity experience

FREDRIK SWAHN

• 30+ years in healthcare
• MD Karolinska Institutet
• Expertise in surgery, clinical

services, intervention and technology.

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INVESTMENT PROCESS

RESEARCH SCREENING PACK FOR COMMITTEE SCIENTIFIC ADVISORY BOARD MEETING INVESTMENT RECOMMENDATIONS DECISION MAKING 01 02 03 04 05 06

• Assessment by the Scientific Advisory Board (SAB) with diverse and established expertise in the sector
• Clear understanding of the sub-sectors and their dynamics
• Focus on innovative and fast growing companies
• Typically invest after approval or participate and sell before event
• Incremental decisions

based on risk management and position sizing.

• Typically 12-36 month

investment horizon.

• Narrowed down to around 30 companies.
• CIO review with an excellent understanding
• f the sector and its dynamics.
• Select c.15 companies to present quarterly

to SAB. 02

• Key to assess and properly weight

proposed investments.

• Approx.80 companies/200 projects

discussed a year. 04

• Current investment:

increase/decrease/exit.

• New investment:

typically 0.4% of portfolio. 06

• Sourcing companies from research

articles, SAB and investment banks.

• Screening around 10% of the total market.
• Most companies are followed and visited

for more than 10 years.

• 400-500 meetings annually.

01

• Detailed pack with c.20 companies

sent to SAB two weeks in advance.

• Both already invested and new

companies. 03

• Feedback from SAB on companies

discussed, invested or new.

• Yes/no/review at a later date.
• 1-3 companies with strong scientific

conviction.

• Final selection by CIO.

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• The entire portfolio is made up of roughly 120-160

positions, however the majority of positions are under 1%

• f NAV
• October 2015:

There were a total of 135 equity positions with 79 positions under 1% of NAV (2 ETFs not included)

• Companies can move up and down the pyramid and may

never reach the summit

Size No of positions % of Fund High conviction 3.0% - 10.0% 4 15% Core holdings 1.0% - 3.0% 52 93% Fractional positions 0.5% - 1.0% 42 31% Candidate holdings 0.0% - 0.5% 37 12%

PORTFOLIO CONSTRUCTION

CANDIDATE HOLDINGS

Small positions that help the PM focus on the stocks’ developments Between 3% - 10% of NAV per position Typically 5% - 25% of the fund Roughly 2-10 positions Between 1% - 3% of NAV per position Typically 30% - 60% of the fund Roughly 40-60 positions Between 0.5% - 1% of NAV per position Typically 20% - 40% of the fund Roughly 50-70 positions

FRACTIONAL POSITIONS CORE HOLDINGS

High risk/high reward positions,

• ften with binary
• utcomes

Safe harbour during times of volatility and unsure outcomes Core and high conviction positions

• n their way in and
• ut of the portfolio

Less than 0.5% of NAV per position Typically no more than 15% of the fund Roughly 50 positions To become a fractional, core or high conviction position the company is typically reviewed by the Scientific Advisory Board

All information based on data from the Administrator, SEB as of end October 2015 unless otherwise stated

HIGH CONVICTION

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RISK MANAGEMENT

• Portfolio reviewed daily by three parties: The Portfolio Management Team looking at total exposure and at company specific

news, and by SEB Fund Services S.A as AIFM and Skandinaviska Enskilda Banken AB (publ) as creditor.

• Diversified portfolio (c.150 holdings).
• Invests to be equally invested over time across the four subsectors (Pharma, Biotech, Medtech and Services) as well as in

small, medium and large market cap.

• Position size will rarely exceed 10% of portfolio and is often 2-5% for large cap and 1-3% for small to medium cap.
• Sizing of individual positions is designed to protect the downside and not affect the total NAV (on fund level) more than -1% due

to company specific events.

• VaR target max 3% per day (95% confidence level).
• Formal risk review triggered after -6% NAV in a single month.
• 95% of positions can be liquidated within 7 days assuming a maximum 20-25% participation in average daily trading volumes.

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• 15
• 10
• 5

5 10 15 100 150 200 250 300 350 400 450 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 IC1 Rhenman Healthcare L/S IC1 EUR 100 150 200 250 300 350 400 450 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Rhenman Healthcare L/S IC1 EUR HFRX EH: Technology/Healthcare Index EUROHEDGE: Global Equity Hedge EUR Euribor 3 month Since inception +302% 2015 YTD +14% 2014 +43% 2013 +55% 2012 +18% 2011 +10% 2010 +8% 2009 +13%

PERFORMANCE

Net Asset Value

Total return 12m (%) 32.13% Standard deviation (% annualised) 18.91% Standard deviation 12m (% annualised) 27.18% Standard deviation 36m (% annualised) 20.67% Sharpe ratio (since inception) 1.27 Sharpe ratio (1 Year) 1.18 Sortino ratio (annualised) 1.08 Treynor ratio (annualised) 0.21

Performance is for the 1CI (EUR) share class – an institutional class with 1.5% management fee and 20% management fee. All data from the Administrator, SEB as of end October 2015 Indices correct as of November 09, 2015. Monthly performance +302% +88% +28% +4%

According to Citywire Global, the Fund’s ranking Globally among Alternative UCITS - L/S Equity Funds:

• 1st out of 75 for 5 years
• 1st out of 121 for 3 years
• 1st out of 165 for 1 year

Net Asset Value

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FUND FACTS

Vehicle / Domicile Open-ended FCP (Fonds Commun de Placement) / AIF Luxembourg Management Company & Alternative Investment Fund Manager SEB Fund Services S.A. Luxembourg Subscription/ redemption Monthly Portfolio Manager Rhenman & Partners Asset Management AB Sweden Notice period 3 business days Placement and Distribution Agent SEB Fund Services S.A. Luxembourg Minimum investment EUR 2,500 – EUR 5,000,000 SEK 500 – SEK 50,000,000 USD 300,000 – USD 6,000,000 Depositary & Paying Agent Skandinaviska Enskilda Banken S.A. Luxembourg Management fee 1.00% - 2.00% (dependant on share class) Prime Broker Skandinaviska Enskilda Banken AB (publ) Sweden Performance fee 10% - 20% (dependant on share class) Auditors of the Fund & Independent Authorised Auditor

• f SEB Fund Services S.A.

PricewaterhouseCoopers (PwC) Luxembourg Hurdle rate Euribor 90D

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APPENDICES.

OUTSTANDING PERFORMANCE IN A COMPLEX MARKET.

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50 100 150 200 250 300 350 50 100 150 200 250 300 350 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 No of Shares Share Price Dec 08 Algeta presented to the SAB committee Feb 10 First investment of 10,000 shares, as a Candidate Holding. Waited for results of Phase II before acting Company milestones Scientific milestones Rhenman actions Dec 10 – Jun 11 Reducing position to crystallise returns and reduce event risk Jun 11 Increase position threefold after Phase III

• announcement. A

High Conviction position at c5.8% NOK

Subsector: Biotech Country: Norway

• Ave. Position size: c.3% of NAV

Return: c.3% of NAV Holding period: c.3 years Product: Alpharadin (Xofigo™) – for treatment of metastatic cancers in bone. A palliative treatment to prolong life and improve quality.

DISCOVERED THROUGH SCIENTIFIC ADVISORY BOARD, CAUTIOUS BUT EARLY INVOLVEMENT

• Reducing risk prior to minor events to protect against negative outcomes
• Trading around the position to maximise returns
• Using unsubstantiated rumours reflected in the price to add and reduce position size
• Early understanding of relationship with Bayer to hold the position to buyout

Shares (000) Sep 11 FDA grants Fast Track Designation to Alphadrin. Phase III ‘significantly improves survival by 44%’ Jun 11 Positive Outcome of Interim Analysis of pivotal Alpharadin study: Primary endpoint met in Phase III ALSYMPCA study Sep 11 – Sep 12 Monitoring and adding/reducing to maximise returns. From a high

• f 6.8%, position decreases in

importance as fund grows reducing to 3.44% by the end

• f Sep 12

Sep 11 SAB continues to be supportive Feb 12 SAB continues to be supportive Sep 12 – Sep 13 Increasing position size as Fund increases in size Feb 10 First patient treated in Phase II trail of Alpharadin to treat bone metastases in breast cancer patients Nov 13 Bayer offers NOK 362 per share (in cash) Nov 13 Bayer offers NOK 336 per share (in cash) May 13 Xofigo approved by FDA Dec 12 sold the entire position in Algeta at 358.5 NOK/share

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TEAM

HENRIK RHENMAN. Chief Investment Officer / Founding Partner

Over 20 years of Healthcare portfolio management experience 1999 – 2008 Founder and Chief Investment Officer, Carnegie Healthcare Funds, Carnegie Investment Bank 1997 – 1999 Managing Director, Portfolio Manager, SG Cowen, Boston 1991 – 1997 Portfolio Manager, SEB Pharmaceutical Fund 1988 – 1991 Head of Research, Head of Asset Management, Hagströmer & Qviberg 1978 – 1988 Pharmacia, Alfa-Laval

CARL GREVELIUS. Head of Sales & Marketing / Founding Partner

Over 18 years of international fund/equity experience 2006 – 2008 Portfolio Manager, Carnegie Investment Bank, Stockholm 2003 – 2006 Founding Partner and Portfolio Manager, Absolute Plus / Vision Microfinance Fund, Zurich 2000 – 2003 Equity Analyst / Sales, ABG Sundal Collier, London / Zurich 1997 – 2000 Portfolio Strategist, Fidelity Investments, Luxembourg / London

GÖRAN NORDSTRÖM. CEO / Founding Partner

Over 25 years of senior management experience 2004 – 2008 Head of Private Banking, Kaupthing Bank, Sweden 1993 – 2004 Managing Director, Carnegie Asset Management AB 1994 – 1995 Managing Director, Carnegie Pension Consulting 1987 – 1993 Deputy Managing Director, Midland Montague Bank/HSBC 1984 – 1987 Portfolio Manager, Handelsbanken Asset Management 1981 – 1984 Tax Specialist, Stockholm County Administrative Board 1978 – 1981 General banking duties, Handelsbanken

ANDERS GRELSSON. Institutional Sales, Sweden

Over 20 years of equity experience 2006 – 2011 Institutional Equity Sales, Kaupthing/Ålandsbanken 1999 – 2006 Institutional Equity Sales, Handelsbanken Markets 1993 – 1999 Institutional Equity Sales, Myrberg & Wiklund 1988 – 1993 Institutional Equity Sales, Midland Montague Bank/HSBC/James Capel

STAFFAN KNAFVE. Investment & Derivatives Strategy Analyst

Over 25 years of equity markets experience 2008 – 2015 Private investor and various capital market assignments, including several Investment Committees and Chairman of Tethys Oil AB 2007 – 2008 Head of Equities, Swedbank Robur 2005 – 2007 Head of Swedish and Nordic Equities, Nordea Investment Mgmt 1998 – 2005 Head of Strategy, Portfolio Manager, Carnegie Asset Management 1991 – 1998 Equity Research, Carnegie Securities 1987 – 1991 Trust Department, Equity Research, Nordbanken

CAMILLA HERMANSSON. Assistant

Over 8 years of experience 2008 – 2012 Assistant, Contender Kapital AB

ELLINOR HULT. Assistant Portfolio Manager

Over 8 years of equity experience 2011 – 2012 Vice President, Non-Japan Asian Equity Sales, Samsung Securities, London 2006 – 2011 Vice President, Non-Japan Asian Equity Sales, Credit Suisse, London 2001 – 2006 Masters in Finance, Stockholm School of Economics

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SCIENTIFIC ADVISORY

STEN NILSSON Chairman of the Scientific Advisory Board

Professor of Oncology - Pathology, Radiumhemmet, Karolinska Institutet.

• Previously Managing Director of Radiumhemmet

BERTIL HÅLLSTEN Honorary Chairman of the Scientific Advisory Board

Professor of Business Economics at the University College of Forestry. Ph.D. in Economics from Stockholm School of Economics. Former Chairman of Sweden's Financial Analysts' Association

• Founder and Portfolio Manager of SEB Pharmaceutical Fund (1988-1992)
• Various positions at SEB in portfolio management
• Previous board member of Meda, Conpharm, Skandigen, and KaroBio

PETER ARNER Member of the Scientific Advisory Board

Professor of Medicine, Karolinska Institutet.

• Expertise in metabolism
• Endocrinology and internal medicine

TOMAS OLSSON Member of the Scientific Advisory Board

Professor of Neurology, Karolinska Institutet.

• Expert in autoimmunity and diseases in the nervous system
• Member of the Nobel Assembly
• Head of neuroimmunology research at the Centre for Molecular Medicine,

Karolinska Hospital

• President of the International society of Neuroimmunology
• Author of more than 400 scientific articles

FREDRIK SWAHN Member of the Scientific Advisory Board

MD, PhD, Senior Consultant Surgeon at Gastrocentrum, Division of Upper Abdominal Surgery at Karolinska University Hospital.

• Member of the scientific board of the Scandinavian Association for Digestive

Endoscopy and the ANDRE-group.

• Since 2006 an active teacher and researcher at Karolinska Institutet regarding

advanced endoluminal surgery and tele-medicine.

• Published 16 scientific articles in international journals concerning endoscopy.

HANS WIGZELL Chairman of Rhenman & Partners Asset Management Board

M D. Professor of Immunology, Karolinska Institutet. Member of the Royal Swedish Academy

• f Sciences and the Royal Swedish Academy of Engineering Sciences. Member of

editorial committees of numerous international magazines. Published over 700 scientific articles in international magazines

• Director General of the National Bacteriological Laboratory, Stockholm (since 1988)
• Chairman of the EU Concerted Research Programme into AIDS vaccination (since 1990)
• Chairman of the Nobel committee for Medicine and Physiology (1990-1992)
• Secretary General of Swedish Institute for Infectious Disease Control (since 1993)
• President of Karolinska Institutet (1995-2003)
• Chairman of the Nobel Assembly at Karolinska Intitutet (2000)
• Chief Scientific Advisor to the Swedish Government (1999-2007)

BIRGITTA STYMNE GÖRANSSON Member of Rhenman & Partners Asset Management Board

Senior management consultant with McKinsey & Co and with Swedish Technical Attaches in Washington D.C. Board member of Elekta AB and Medivir AB.

• M.Sc. Chemical Engineering and Biotechnology from Royal Institute of Technology,

Stockholm

• MBA Harvard Business School, MA, USA. CEO of Memira Holding AB
• Several senior management positions in Swedish industry including: Semantix, Telefos,

Åhléns, Gambro and Excorim

HÅKAN ÅSTRÖM Member of Rhenman & Partners Asset Management Board

Med.Dr. (h.c.), M.Sc.(Econ), Chairman of the Board for Affibody Holding AB, PledPharma AB and Tubulus AB, and board member of Ferrosan Medical Devices AS

• Former Chairman of the board Swedish Orphan Biovitrum AB (SOBI), Orexo AB and

Ferrosan AS

• CEO of Kabi Pharmacia AB, Pharmacia AB and Astra Pharmaceutical Ltd
• Numerous previous senior positions in the pharmaceutical industry

Scientific Advisory Board members Rhenman & Partners Asset Management external board members

An established portfolio management tool used over 15 years to highlight potentials and risks in clinical development. Quarterly official meetings. Frequent informal contacts.

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INVESTMENT MANAGER’S SERVICE PROVIDERS

Investment and Derivative Strategy Staffan Knafve Rådgivning AB Sweden Organisation number: 556765-8215 sk@staffanknafve.se Compliance Kjellander & Ramel AB Sweden Organisation number: 556711-9978 anna@kjellanderramel.se IT LC24 Sweden AB Sweden Organisation number: 556598-2559 lw@lc24.net Accounting Viveka Luiga Ekonomibyrå AB Sweden Organisation number: 556828-4656 luiga@swipnet.se Legal Hoflund Juridik AB Sweden Organisation number: 556741-8388 dan@hoflundlaw.se Auditor BDO Sverige AB Sweden Organisation number: 556585-8007 johan.pharmanson@bdo.se

Local expertise and resources

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OFFICE

Phone +46 8 459 88 80 Fax +46 8 528 008 80 E-mail info@rhepa.com Website www.rhepa.com Address Strandvägen 5A 114 51 Stockholm Sweden

FOUNDING PARTNERS

Chief Investment Officer Henrik Rhenman Managing Director Göran Nordström Head of Sales & Marketing Carl Grevelius Phone +46 8 459 88 83 Mobile +46 768 438 803 E-mail carl@rhepa.com

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HEALTHCARE IN CONTEXT.

OUTSTANDING PERFORMANCE IN A COMPLEX MARKET.

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HEALTHCARE IN CONTEXT – OVERVIEW

Source: Credit Suisse, Sep 014; IMS Institute, The Trillion Dollar Market for Medicines: Characteristics, Dynamics and Outlook, Feb 14; The World bank, 2013; IMS Market Prognosis, May 2012; Economist Intelligence Unit, Jan 2012; WHO, IMF, US Census Bureau, Bureau of Labor Statistics, US Patent and Trademark Office, UBS estimates

• Global spending on medicines was expected to exceed USD1,000bn in 2014 and almost reach

USD1,200bn in 2017

• Developed countries are expected to spend an average of USD609 per capita in 2016 (2012 estimate)
• Emerging markets continue to spend at an average of 12-17% CAGR (2013 est)
• China’s spend on healthcare is expected to reach 45% of that spent in the US by 2017 (up from 9% in

2006) making it the second largest spender in the world (outranking Japan)

• Biotech firms are expected to be undervalued v S&P500 on 2016 and 2017 P/E projections
• The growth in Biologics and their complex manufacturing processes are increasing the lifespan of a

therapy before a biosimilar can be produced

• There is an expectation of major growth in speciality medicines, often with novel mechanisms and small

patient populations

• The patent cliff is largely over having a marked peak in 2012 and a significant drop off since

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0 % 5 % 10 % 15 % 20 % 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 Canada Japan United Kingdom United States OECD AVERAGE

HEALTHCARE IN CONTEXT – SPENDING OUTSTRIPPING GDP IN DEVELOPED COUNTRIES

Italy Denmark Mexico France Germany Portugal Belgium Switzerland Israel Australia Norway United States Canada Spain United Kingdom Ireland Japan Sweden New Zealand Netherlands OECD Austria Iceland Luxembourg Hungary Slovenia Chile Czech Republic Turkey Poland Greece Estonia South Korea Slovakia Finland

2 4 6 8 10 12

• 1

1 2 3 4 5

Health expenditure as a share of GDP in OECD, 1960-2012 Annual average growth in real per capita expenditure on health and GDP, 2000-09

Annual Average growth rate in real health expenditure per capita (%) Annual Average growth rate in real GDP per capita (%) Source: OECD Health Data 2011, IMS Institute, The Trillion Dollar Market for Medicines: Characteristics, Dynamics and Outlook, Feb 14; OECD Health Statistics 2013, WHO Global Health Expenditure Database.

• Global spending on medicines is expected to be USD1,000bn in 2014 and USD1,200bn in 2017
• The base case forecast for the US is 1-4% CAGR - having bottomed out in 2013
• Developed countries are expected to spend an average of USD609 per capita in 2016

Graph source: OECD Health Statistics 2013, WHO Global Health Expenditure Database. OECD average Graph source: OECD Health Data 2011

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HEALTHCARE IN CONTEXT – EMERGING MARKETS ARE INCREASINGLY IMPORTANT

0 % 5 % 10 % 15 % 20 % United States OECD members France Germany United Kingdom Japan Brazil Korea, Rep. Turkey Russian Federation Mexico China India Indonesia

Health expenditure as a percentage of GDP

Population Annual Per Capita Drug Spend USD Source: IMS Institute, The Trillion Dollar Market for Medicines: Characteristics, Dynamics and Outlook, Feb 14; The World bank, 2013; IMS Market Prognosis, May 2012; Economist Intelligence Unit, Jan 2012; WHO, IMF, US Census Bureau, Bureau of Labor Statistics, US Patent and Trademark Office, UBS estimates

2016 Pharmaceutical Spend per Capita

• India and China’s per capita spends are far from the OECD average, a small increase would result in a huge

increase in global sales

• Healthcare sales in the E7 countries has increased year on year from 2003 (E7= China, India, Brazil, Mexico,

Russia, Indonesia and Turkey)

• IMS expects emerging markets share of global spending to increase to 30% by 2016/17
• China’s spend on healthcare is expected to reach 45% of that spent in the US by 2017 (up from 9% in 2006)

and will outstrip Japan (traditionally ranked no.2 by spending)

Graph source: The World Bank, 2013 Graph source: IMS Market Prognosis, May 2012; Economist Intelligence Unit, Jan 2012

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HEALTHCARE IN CONTEXT – SPECIALITY MEDICINE AND BIOLOGICS WILL CONTINUE TO DOMINATE

Top 20 classes, 42% Others, 58% Oncologics 83-88bn Antidiabetics 48-53bn Ashma/COPD 44-48bn Autoimmune 33-36bn Lipid Regulators 31-34bn Angiotensin II 22-25bn HIV Antivirals 22-25bn Antipsychotics 22-25bn Vaccines 19-22bn Immunostimulants 16-18bn Anti-Ulcerants 15-17bn Anti-Epileptics 14-16bn Multiple Sclerosis 14-16bn Platelet Aggregation Inhibitors 14-16bn Narcotic Analgesics 14-16bn Immunosuppressants 13-15bn Contraceptives 13-15bn Cephalosporins 13-15bn Antivirals (excl HIV) 12-14bn ADHD 12-14bn

Top 20 global therapy areas, spending 2016

• 10%
• 5%

0% 5% 10% 20% 15% 10% 5% 0%

• 5%

Global market CAGR 2012-2016: 3-6% Global market CAGR 2007-2011: 6% Global market CAGR 2007-2011 Global market CAGR 2012-2016

Spending and growth in leading therapy areas

Source: Credit Suisse, Sep 14

No Company name Price (USD) Market Cap (USDbn) 2014 PE 2015 PE 2016 PE 2017 PE 14-17 Sales CAGR 14-17 EPS CAGR 14 PE/ (14-17 Growth) 17 PE/ (14-17 Growth) 1 Johnson & Johnson 104 293 18x 17x 16x 15x 2% 5% 3.7 3.2 2 Novartis 93 253 18x 15x 14x 12x 2% 15% 1.3 0.8 3 Roche 293 249 19x 18x 16x 15x 5% 9% 2.1 1.6 4 Pfizer 29 186 13x 13x 12x 12x 1% 3% 3.8 3.4 5 Merck 60 173 17x 17x 15x 15x 0% 6% 3 2.5 6 Gilead 108 163 14x 14x 13x 12x 4% 4% 3.8 3.4 7 Sanofi 110 145 16x 14x 13x 13x 4% 8% 2.1 1.7 8 Glaxo-smithkline 24 117 19x 16x 14x 13x 5% 13% 1.5 1 9 Bayer 135 111 17x 15x 13x 11x 7% 14% 1.2 0.8 10 Amgen 139 106 17x 16x 15x 14x 1% 7% 2.4 2 11 Novo Nordisk 46 97 26x 23x 20x 20x 9% 9% 2.8 2.2 12 Astrazeneca 76 96 18x 21x 20x 24x

• 3%

9% na na 13 Abbvie 55 88 18x 13x 1x 11x 8% 18% 1 0.6 14 Bristol-Mayer Sqib 51 84 28x 31x 25x 19x 4% 13% 2.1 1.5 15 Biogen Idec 343 81 26x 22x 19x 17x 9% 16% 1.7 1.1 16 Celgene 95 76 26x 19x 15x 12x 20% 30% 0.9 0.4 17 Eli Lily 64 71 23x 21x 17x 15x 5% 17% 1.4 0.9 18 Abbott 42 65 19x 17x 15x 18x 4% 1% 13.5 13 19 Actavis 227 60 17x 14x 12x 11x 11% 15% 1.1 0.7 20 Teva 53 50 11x 11x 11x 11x

• 1%

1% na na 21 Allergan 164 49 28x 20x 17x 15x 10% 24% 1.2 0.6 22 Shire 81 48 25x 23x 20x 18x 8% 11% 2.3 1.7 23 Merck Kgaa 87 44 14x 14x 13x 13x 2% 4% 3.9 3.5 24 Valeant 117 39 15x 12x 10x 10x 7% 15% 1 0.6 25 Takeda 46 36 35x 43x 40x 37x 3%

• 1%

na na Biotech Average 21x 18x 15x 14x 9% 14% 2.2 1.7 Pharma Average 20x 18x 16x 16x 5% 9% 2.7 2.2 S&P 500 2,003 17x 16x 15x 15x 5% 6% 3.1 2.6

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USD

• Biotech stocks continue to outperform the S&P500 but have

P/E valuations well below for 2017 while EPS growth is nearly three times (2.33x)

• Biologics look to take a 19-20% share of the total

pharmaceutical market by 2017

• Seven of the top 20 highest spending classes are specialty

medicines, often with novel mechanisms, improved efficacy, and relatively large patient populations leading to increased uptake

Source: IMS Institute for Healthcare Informatics, May 2012

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HEALTHCARE IN CONTEXT – PATENT CLIFF LARGELY OVER

• The expiry of patents peaked in 2012
• There are approximately 640 products in the late stage pipeline, a third of which are biologics and more than

half are specialty drugs – which are hard to replicate and in the case of biologics may need independent approval

• Among the medicines expected to launch by 2017 are several for the treatment of hepatitis C, multiple sclerosis

and breast cancer all of which have large patient populations

11 16 14 19 16 19 20 44 15 19 22 17 8 7 5 6 4 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E

Global annual brand sales value for products losing exclusivity (USDbn)

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DATA BANK.

OUTSTANDING PERFORMANCE IN A COMPLEX MARKET.

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23 100 150 200 250 300 350 400 450

Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Rhenman Healthcare L/S IC1 EUR Linear (Rhenman Healthcare L/S IC1 EUR)

PERFORMANCE FOR RHENMAN HEALTHCARE EQUITY L/S SINCE INCEPTION (JUNE 22, 2009)

Net Asset Value

Performance is for the 1CI (EUR) share class – an institutional class with 1.5% management fee and 20% management fee. All data from the Administrator, SEB as of end October 2015

+302% Annualised compound return: +25%

SLIDE 24

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24

0m 100m 200m 300m 400m 500m 600m Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15

ASSETS UNDER MANAGEMENT

All data from the Administrator, SEB as of end October 2015 AUM data includes inflows on the first of the next month from Jan 31st 2015.

Current AUM: EUR 491m Hard Close AUM: EUR 1bn Soft close is planned for December 2015, given AUM >EUR 500m The fund’s AUM has increased significantly since it hit its three year track record In October 2014 the fund’s AUM topped EUR 300m, the final hurdle to institutional investment Three years trading EUR 300m Soft close: EUR 500m

Trendline, post three years Trendline, whole period Trendline, first three years

SLIDE 25

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25

AUM, NAV AND MONTHLY PERFORMANCE

All data from the Administrator, SEB as of end October 2015. AUM data includes inflows on the first of the next month from Jan 31st 2015.

Fund AUM IC1 (EUR) - ISIN LU0417598108 RC1 (EUR) - ISIN LU0417597555 RC1 (SEK) - ISIN LU0417597712 RC2 (SEK) - ISIN LU0417598017 Month end AUM (MEUR) AUM (MUSD) NAV Monthly Perf

• Acc. perf

NAV Monthly Perf

• Acc. perf

NAV Monthly Perf

• Acc. perf

NAV Monthly Perf

• Acc. perf

Month end Oct-15 491 542 401.72 8.35% 301.72 355.37 8.30% 255.37 340.74 8.56% 240.74 351.09 8.61% 251.09 Oct-15 Sep-15 473 528 370.76

• 12.64%

270.76 328.76

• 12.67%

228.76 313.86

• 14.03%

213.86 323.26

• 14.00%

223.26 Sep-15 Aug-15 539 604 424.39

• 10.95%

324.39 375.75

• 11.03%

275.75 365.09

• 10.27%

265.09 375.87

• 10.21%

275.87 Aug-15 Jul-15 588 646 476.60 4.45% 376.60 422.31 4.42% 322.31 406.89 6.52% 306.89 418.61 6.56% 318.61 Jul-15 Jun-15 555 633 456.29

• 1.54%

356.29 404.45

• 1.60%

304.45 381.98

• 2.64%

281.98 392.85

• 2.60%

292.85 Jun-15 May-15 549 602 463.44 10.08% 363.44 411.03 10.05% 311.03 392.32 9.89% 292.32 403.34 9.91% 303.34 May-15 Apr-15 500 530 421.01

• 6.16%

321.01 373.48

• 6.21%

273.48 357.02

• 5.16%

257.02 366.96

• 5.12%

266.96 Apr-15 Mar-15 530 563 448.65 6.99% 348.65 398.19 6.62% 298.19 376.45 5.71% 276.45 386.77 5.73% 286.77 Mar-15 Feb-15 475 541 419.34 7.15% 319.34 373.47 6.87% 273.47 356.11 7.20% 256.11 365.80 7.27% 265.80 Feb-15 Jan-15 427 488 391.34 11.02% 291.34 349.47 10.89% 249.47 332.20 9.65% 232.20 341.02 9.68% 241.02 Jan-15 Dec-14 342 416 352.48 4.08% 252.48 315.14 3.58% 215.14 302.97 5.66% 202.97 310.92 5.77% 210.92 Dec-14 Nov-14 321 399 338.66 3.83% 238.66 304.24 3.80% 204.24 286.74 3.86% 186.74 293.97 3.88% 193.97 Nov-14 Oct-14 300 376 326.16 7.28% 226.16 293.13 7.24% 193.13 276.09 8.71% 176.09 283.00 8.75% 183.00 Oct-14 Sep-14 274 346 304.03 2.43% 204.03 273.34 2.39% 173.34 253.98 1.78% 153.98 260.24 1.87% 160.24 Sep-14 Aug-14 269 354 296.82 7.45% 196.82 266.95 7.38% 166.95 249.55 6.91% 149.55 255.47 6.94% 155.47 Aug-14 Jul-14 245 328 276.25 0.50% 176.25 248.60 0.46% 148.60 233.43 1.17% 133.43 238.90 1.21% 138.90 Jul-14 Jun-14 242 331 274.87 5.32% 174.87 247.45 5.30% 147.45 230.73 5.57% 130.73 236.05 5.60% 136.05 Jun-14 May-14 230 313 260.99 5.32% 160.99 235.00 5.28% 135.00 218.55 5.92% 118.55 223.54 5.95% 123.54 May-14 Apr-14 214 296 247.8

• 5.54%

147.8 223.21

• 5.59%

123.21 206.33

• 4.59%

106.33 210.98

• 4.56%

110.98 Apr-14 Mar-14 216 298 262.34

• 5.34%

162.34 236.42

• 6.06%

136.42 216.26

• 4.57%

116.26 221.05

• 4.42%

121.05 Mar-14 Feb-14 218 302 277.13 5.01% 177.13 251.66 4.73% 151.66 226.61 5.09% 126.61 231.28 5.14% 131.28 Feb-14 Jan-14 204 276 263.91 6.94% 163.91 240.30 6.90% 140.30 215.63 6.55% 115.63 219.98 6.58% 119.98 Jan-14 Dec-13 186 256 246.79 0.05% 146.79 224.79 0.09% 124.79 202.38

• 0.32%

102.38 206.39

• 0.23%

106.39 Dec-13 Nov-13 182 248 246.67 9.31% 146.67 224.58 9.29% 124.58 203.02 10.09% 103.02 206.87 10.12% 106.87 Nov-13 Oct-13 167 226 225.66

• 3.34%

125.66 205.49

• 3.39%

105.49 184.41

• 2.23%

84.41 187.86

• 2.19%

87.86 Oct-13 Sep-13 163 221 233.45 4.38% 133.45 212.69 3.82% 112.69 188.61 3.69% 88.61 192.06 3.79% 92.06 Sep-13 Aug-13 154 204 223.66

• 0.98%

123.66 204.86

• 1.01%

104.86 181.89

• 0.45%

81.89 185.04

• 0.38%

85.04 Aug-13 Jul-13 155 205 225.87 11.52% 125.87 206.96 11.48% 106.96 182.72 10.57% 82.72 185.74 10.61% 85.74 Jul-13 Jun-13 133 173 202.53

• 3.14%

102.53 185.65

• 3.75%

85.65 165.25

• 1.91%

65.25 167.92

• 2.10%

67.92 Jun-13 May-13 130 169 209.1 5.39% 109.1 192.89 5.28% 92.89 168.47 6.10% 68.47 171.53 6.16% 71.53 May-13 Apr-13 121 159 198.41 3.39% 98.41 183.22 3.35% 83.22 158.78 5.23% 58.78 161.57 5.27% 61.57 Apr-13 Mar-13 109 140 191.91 7.75% 91.91 177.28 7.71% 77.28 150.89 6.83% 50.89 153.48 6.78% 53.48 Mar-13 Feb-13 98 128 178.11 5.44% 78.11 164.59 5.41% 64.59 141.24 3.28% 41.24 143.74 3.28% 43.74 Feb-13 Jan-13 91 123 168.92 6.29% 68.92 156.14 6.28% 56.14 136.76 6.39% 36.76 139.17 6.40% 39.17 Jan-13 Dec-12 75 99 158.92

• 1.50%

58.92 146.92

• 1.53%

46.92 128.55

• 2.32%

28.55 130.80

• 2.27%

30.80 Dec-12 Nov-12 74 97 161.34 2.81% 61.34 149.21 2.76% 49.21 131.60 3.42% 31.60 133.84 3.46% 33.84 Nov-12 Oct-12 70 91 156.93

• 5.16%

56.93 145.20

• 5.20%

45.20 127.25

• 3.34%

27.25 129.36

• 3.30%

29.36 Oct-12 Sep-12 73 94 165.47 2.94% 65.47 153.16 2.91% 53.16 131.65 4.61% 31.65 133.77 4.62% 33.77 Sep-12 Aug-12 51 64 160.74 0.00% 60.74 148.83

• 0.04%

48.83 125.85

• 0.25%

25.85 127.86

• 0.21%

27.86 Aug-12 Jul-12 50 61 160.74 1.05% 60.74 148.89 1.02% 48.89 126.17

• 3.40%

26.17 128.13

• 3.36%

28.13 Jul-12 Jun-12 42 52 159.07 6.00% 59.07 147.39 5.97% 47.39 130.61 3.83% 30.61 132.58 3.85% 32.58 Jun-12 May-12 42 52 150.07

• 0.15%

50.07 139.09

• 0.18%

39.09 125.79 0.59% 25.79 127.66 0.65% 27.66 May-12 Apr-12 40 53 150.29 0.52% 50.29 139.34 0.49% 39.34 125.05 1.02% 25.05 126.83 1.05% 26.83 Apr-12 Mar-12 38 51 149.51 3.83% 49.51 138.66 3.80% 38.66 123.79 4.14% 23.79 125.51 4.21% 25.51 Mar-12 Feb-12 35 47 143.99 1.10% 43.99 133.59 1.10% 33.59 118.87 0.08% 18.87 120.44 0.12% 20.44 Feb-12 Jan-12 35 45 142.42 5.82% 42.42 132.14 5.78% 32.14 118.78 6.96% 18.78 120.30 6.81% 20.30 Jan-12 Dec-11 32 42 134.59 5.58% 34.59 124.92 5.59% 24.92 111.05 4.35% 11.05 112.63 4.39% 12.63 Dec-11 Nov-11 31 41 127.48 1.44% 27.48 118.31 1.40% 18.31 106.42 2.09% 6.42 107.89 2.13% 7.89 Nov-11 Oct-11 30 42 125.67 6.25% 25.67 116.68 6.21% 16.68 104.24 3.94% 4.24 105.64 4.00% 5.64 Oct-11 Sep-11 29 39 118.28

• 0.90%

18.28 109.86

• 0.95%

9.86 100.29 0.20% 0.29 101.58 0.25% 1.58 Sep-11 Aug-11 29 42 119.36

• 6.89%

19.36 110.91

• 6.92%

10.91 100.09

• 6.48%

0.09 101.33

• 6.45%

1.33 Aug-11 Jul-11 31 45 128.19

• 0.83%

28.19 119.15

• 1.10%

19.15 107.03

• 1.84%

7.03 108.32

• 1.80%

8.32 Jul-11 Jun-11 26 38 129.26

• 3.71%

29.26 120.47

• 3.70%

20.47 109.04

• 1.80%

9.04 110.30

• 1.76%

10.30 Jun-11 May-11 27 39 134.24 5.05% 34.24 125.10 4.77% 25.10 111.04 5.47% 11.04 112.28 5.53% 12.28 May-11 Apr-11 25 38 127.79 3.60% 27.79 119.40 3.12% 19.40 105.28 3.42% 5.28 106.40 3.46% 6.40 Apr-11 Mar-11 25 36 123.35

• 0.75%

23.35 115.79

• 0.61%

15.79 101.80 1.58% 1.80 102.84 1.62% 2.84 Mar-11 Feb-11 25 34 124.28 2.26% 24.28 116.50 2.03% 16.50 100.22 1.32% 0.22 101.20 1.36% 1.20 Feb-11 Jan-11 25 34 121.53

• 0.98%

21.53 114.18

• 0.99%

14.18 98.91

• 3.18%
• 1.09

99.84

• 3.14%
• 0.16

Jan-11 Dec-10 28 37 122.73 5.65% 22.73 115.32 4.49% 15.32 102.16 3.94% 2.16 103.08 3.97% 3.08 Dec-10 Nov-10 27 35 116.17 3.58% 16.17 110.36 5.36% 10.36 98.29 1.76%

• 1.71

99.14 1.81%

• 0.86

Nov-10 Oct-10 26 36 112.16 2.01% 12.16 104.75 0.38% 4.75 96.59 3.45%

• 3.41

97.38 3.49%

• 2.62

Oct-10 Sep-10 27 37 109.95 7.13% 9.95 104.35 4.35% 4.35 93.37 4.99%

• 6.63

94.10 5.05%

• 5.90

Sep-10 Aug-10 25 32 102.63

• 0.20%

2.63 100.00 88.93

• 0.85%
• 11.07

89.58

• 0.81%
• 10.42

Aug-10 Jul-10 25 33 102.84

• 3.35%

2.84 89.69

• 4.45%
• 10.31

90.31

• 4.40%
• 9.69

Jul-10 Jun-10 26 32 106.4

• 2.14%

6.4 93.87

• 2.92%
• 6.13

94.47

• 2.89%
• 5.53

Jun-10 May-10 26 32 108.73

• 11.10%

8.73 96.69

• 11.44%
• 3.31

97.28

• 11.39%
• 2.72

May-10 Apr-10 27 36 122.31

• 4.09%

22.31 109.18

• 5.14%

9.18 109.78

• 5.11%

9.78 Apr-10 Mar-10 25 34 127.53 6.33% 27.53 115.09 6.52% 15.09 115.69 6.56% 15.69 Mar-10 Feb-10 21 29 119.94 1.72% 19.94 108.05

• 2.39%

8.05 108.57

• 2.25%

8.57 Feb-10 Jan-10 21 29 117.91 4.09% 17.91 110.70 3.70% 10.70 111.07 3.74% 11.07 Jan-10 Dec-09 19 27 113.28 7.17% 13.28 106.75 4.81% 6.75 107.07 4.87% 7.07 Dec-09 Nov-09 17 25 105.7 4.66% 5.7 101.85 5.30% 1.85 102.10 5.32% 2.10 Nov-09 Oct-09 14 20 100.99

• 6.34%

0.99 96.72

• 4.72%
• 3.28

96.94

• 4.66%
• 3.06

Oct-09 Sep-09 14 20 107.83 0.33% 7.83 101.51 0.50% 1.51 101.68 0.55% 1.68 Sep-09 Aug-09 10 15 107.47 2.17% 7.47 101.00 1.08% 1.00 101.12 1.14% 1.12 Aug-09 Jul-09 8 12 105.19 4.41% 5.19 99.92 0.18%

• 0.08

99.98 0.24%

• 0.02

Jul-09 Jun-09 5 7 100.75 0.75% 0.75 99.74

• 0.26%
• 0.26

99.74

• 0.26%
• 0.26

Jun-09 Inception 100.00 100.00 100.00 Inception

SLIDE 26

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26

LONG, SHORT, GROSS & NET

Based on data from the Administrator, SEB as of end October 2015. Long % Short % Gross % Net % 31-Oct-15 158 26 184 132 30-Sep-15 165 23 188 142 31-Aug-15 161 40 201 120 31-Jul-15 176 43 218 133 30-Jun-15 152 37 189 115 31-May-15 154 26 180 127 30-Apr-15 169 16 185 153 31-Mar-15 134 11 145 123 28-Feb-15 133 12 145 121 31-Jan-15 130 11 141 119 31-Dec-14 131 23 154 108 30-Nov-14 136 11 147 125 31-Oct-14 164 16 181 148 30-Sep-14 141 14 155 127 31-Aug-14 136 12 148 124 31-Jul-14 160 10 170 149 30-Jun-14 143 13 156 130 30-May-14 149 12 161 137 30-Apr-14 159 9 169 150 31-Mar-14 145 8 153 137 28-Feb-14 149 11 160 139 31-Jan-14 147 12 160 135 31-Dec-13 138 16 154 122 29-Nov-13 147 14 161 133 31-Oct-13 143 15 157 128 30-Sep-13 115 19 134 96 30-Aug-13 149 19 168 127 31-Jul-13 151 30 181 121 28-Jun-13 171 34 205 138 31-May-13 150 17 167 134 30-Apr-13 142 18 160 125 28-Mar-13 148 12 160 136 28-Feb-13 144 14 159 130 31-Jan-13 132 17 149 116 31-Dec-12 130 8 138 121 30-Nov-12 144 14 158 130 31-Oct-12 158 18 177 140 28-Sep-12 144 9 152 135 31-Aug-12 115 11 126 105 31-Jul-12 132 15 147 118 29-Jun-12 144 12 156 131 31-May-12 127 19 147 108 30-Apr-12 139 14 153 124 30-Mar-12 135 14 148 121 29-Feb-12 133 28 161 106 31-Jan-12 136 22 158 115 30-Dec-11 146 15 161 131 30-Nov-11 145 16 160 129 31-Oct-11 150 14 164 136 30-Sep-11 117 15 133 102 31-Aug-11 137 14 151 123 29-Jul-11 134 14 148 121 30-Jun-11 141 17 158 124 31-May-11 147 23 170 123 29-Apr-11 147 19 166 128 31-Mar-11 147 22 169 125 28-Feb-11 144 22 166 122 31-Jan-11 148 22 170 126 31-Dec-10 136 20 156 116 30-Nov-10 149 20 170 129 29-Oct-10 119 20 139 100 30-Sep-10 121 21 141 100 31-Aug-10 120 24 144 96 30-Jul-10 116 26 142 91 30-Jun-10 108 27 135 81 31-May-10 72 33 105 39 30-Apr-10 138 33 171 104 31-Mar-10 135 24 160 111 26-Feb-10 126 24 150 101 29-Jan-10 141 32 173 110 31-Dec-09 117 11 127 106 30-Nov-09 44 8 52 37 30-Oct-09 113 8 121 104 30-Sep-09 115 6 122 109 31-Aug-09 125 8 133 117 31-Jul-09 126 5 131 122 30-Jun-09 N/A N/A N/A N/A 22-Jun-09 N/A N/A N/A N/A

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20 40 60 80 100 120 140 160 180 200 220 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Short % Long % Gross % Net %

Historical Av. Min Max Gross

156% 52% 218%

Net

120% 37% 153%

Long

138% 44% 176%

Short

• 18%
• 5%
• 43%

Long and Short

SLIDE 27

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27

Rhenman Healthcare Equity L/S Fund, “the Fund” is not an investment fund as defined in the European Union directives relating to undertakings for collective investment in transferable securities (UCITS). Legal information regarding Fund is contained in the Prospectus and the KIID, available at Rhenman & Partners Asset Management AB (Rhenman & Partners) webpage: http://rhepa.com/the-fund/prospectus/. This material has been prepared by Rhenman & Partners for professional and non- professional investors. Rhenman & Partners when preparing this information has not taken into account any one customer’s particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations herein are not intended to represent recommendations of particular investments to particular

• customers. This material is for informational purposes only and should not be construed

as an offer or solicitation to sell or buy units the Fund. All securities' transactions involve risks, which include (among others) the risk of adverse

• r

unanticipated market, financial or political developments and, in international transactions, currency risk. There can be no assurance that an investment in the Fund will achieve profits or avoid incurring substantial losses. There is a high degree of risk inherent in investments and they may not be suitable for all eligible investors. It is possible that an investor may lose some or all of its investment. The past is not necessarily a guide to the future performance of an investment. The value of investments may fall as well as rise and investors may not get back the amount invested. Changes in rates of foreign exchange may cause the value of investments to go up or down. Before making an investment decision, an investor and/or its adviser should (i) consider the suitability of investments in the Fund with respect to its investment objectives and personal situation and (ii) consider factors such as its personal net worth, income, age, risk tolerance, and liquidity needs. Short-term investors and investors who cannot bear the loss of some or all of their investment or the risks associated with the limited liquidity

• f an investment should not invest.

Due care and attention has been used in the preparation of this information. However, actual results may vary from their forecasts, and any variation may be materially positive

• r negative. Forecasts, by their very nature, are subject to uncertainty and contingencies,

many of which are outside the control of Rhenman & Partners. Rhenman & Partners cannot guarantee that the information contained herein is without fault or entirely

• accurate. There may be delays, omissions or inaccuracies in the information. Any dated

information is published as of its date only and no obligation or responsibility is undertaken to update or amend any such information. The information in this material is based on sources that Rhenman & Partners believes to be reliable. Rhenman & Partners can however not guarantee that all information is

• correct. Furthermore, information and opinions may change without notice. Rhenman &

Partners is under no obligation to make amendments or changes to this publication if errors are found or opinions or information change. Rhenman & Partners accepts no responsibility for the accuracy of its sources. Rhenman & Partners is the owner of all works of authorship including, but not limited to, all design, text, images and trademarks in this material unless otherwise explicitly stated. The use of Rhenman & Partners’ material, works or trademarks is forbidden without written consent except where otherwise expressly stated. Furthermore, it is prohibited to publish material made or gathered by Rhenman & Partners without written consent. By accessing and using the http://rhepa.com/ website and any pages thereof, you acknowledge that you have reviewed the following important legal information and understand and agree to the terms and conditions set therein. If you do not agree to the terms and conditions in this disclaimer, do not access or use http://rhepa.com/website in any way. Products and services described herein are not available to all persons in all geographical locations. Rhenman & Partner will not provide any such products or services to any person if the provision of such services could be in violation of law or regulation in such person's home country jurisdiction or any other related jurisdiction. The units of the Fund may not be offered or sold to or within the United States or in any other country where such offer or sale would conflict with applicable laws or regulations. In no event, including (but not limited to) negligence, will Rhenman & Partner be liable to you or anyone else for any consequential, incidental, special or indirect damages (including but not limited to lost profits, trading losses and damages). The sole legally binding basis for the purchase of shares of the Fund described in this information is the latest valid sales prospectus with its terms of contract. Subscriptions cannot be received on the basis of financial reports.

LEGAL DISCLAIMER