June 2007 - Nordea Bank Lietuva

Nordea 1 – European Value FundPerformance in %TimeframeEUR* Index**Current year1 month1 year3 years5 years20065.61-1.9322.7473.6391.9927.009.83-0.3925.3973.9472.4919.62Since launch346.30 425.23*Base currency **Index in base currencyKey figures - 3 years30/06/2004 - 29/06/2007Annualised return in %Annualised standard deviationCorrelationSharpe ratioJensen's AlphaBetaTracking errorInformation ratioRisk free rate used in %*MSCI Europe - Net ReturnFund dataManagerBase currencyLast NAVShare classFund categoryAUM (Million EUR)Minimum investment (EUR)Front end fee in %Annual management fee in %Security Number (ISIN)Launch dateManager profileFund20.198.590.881.80-0.031.034.01-0.024.76Index*20.267.58–2.04–––––Tom Stubbe OlsenEUR44.63BPAccumulating3 362.79505.001.500LU006431933715/09/1989Tom Stubbe Olsen was born in Frederiksberg,Denmark, in 1962. He studied at the CopenhagenBusiness School, graduating with a Masters inEconomics and Business Administration. In 1986 hejoined Sparinvest, a large mutual fund company inDenmark. He worked as junior portfolio manager onthe American and European markets for 4 years untiltaking charge of the Pacific fund in 1991. He joinedUnibank Luxembourg in 1993 to start up the Nordea1 - Far Eastern Value Fund and subsequently changedthe investment style of the Fund to the currentapproach employed by the Nordea 1 Value Funds. Hehas managed the Nordea 1 - European Value Fundsince November 1998. He was appointed Head ofNordea Value Management in 2002.Léon Kirch was born in Luxembourg in 1972. Hestudied at the Ecole de Commerce Solvay and theUniversité Libre de Bruxelles, graduating with aMasters in Sciences Management. Following a 5 yearstint in the Asset Management Department of Banquede Luxembourg, where his main functions includedmanaging in-house investment funds and buy-sideanalysis, he attained Holder of the Chartered FinancialAnalyst status in 2001. He joined Nordea 1 -European Value Fund as Co-Manager in 2002.CommentThe rally in European stock markets lost some steam in June after a very impressive first five months.Once again, our investment philosophy has kept us out of the segments of the market that performedbest in June: oil & gas, basic resources and chemicals. We are not overly concerned by this as mostof the companies in these sectors do not offer the necessary sustainable earnings power that is thebasis of our investment philosophy. Following a period when investors appeared to show someambivalence towards risk as evidenced in the generally complacent reaction to the Chinese equitybubble, rising bond yields, the excessive use of derivatives, the meltdown in subprime mortgages,and liquidity issues with some hedge funds, we consider the current setback in the stock market astep in a normalisation process where risk is assessed in a more sober manner. As such we are notunhappy with recent events. While we find ideas at a 20 to 30% discount to fair value, we find only afew companies fulfilling the necessary margin of safety of 50%. At the same time we multiplied thecontacts with the managements of our existing holdings in order to ensure the underlying investmentcases are intact. We believe that this is the best way to protect the client’s investment and to exploitnew investment opportunities that meet our investment criteria.Performance (in base currency, indexed at 100)1801701601501401301201101009030/06/2004 30/06/2005 30/06/2006 29/06/2007European Value FundMSCI Europe - Net ReturnGeographical allocation in % Sector allocation in %United Kingdom 18.20Netherlands 10.61Ireland 10.03Denmark 9.13Germany 8.28Switzerland 8.22Belgium 6.18Finland 5.84Sweden 5.57Austria 2.85France 1.41Italy 0.93Net Liquid Assets 12.74Top Holdings in %FLS Industries B 6.23Shire PLC 4.70Credit Suisse Group 3.78UCB SA 3.24Anglo Irish Bank Corp Plc 3.13Swedish Match 3.09Agfa Gevaert NV 2.95Deutsche Postbank AG 2.94DSV - De Sammensl.Vognm.Af 1976 2.90Oesterreichische Post 2.85Industrials 25.79Health Care 15.52Financials 15.41Consumer Discretionary 13.88Information Technology 6.90Consumer Staples 5.90Not Classified 2.00Materials 1.85Net Liquid Assets 12.74Empty 20.00Empty 20.00Empty 20.00Empty 20.00