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Audited Annual Report 2017 Nordea 1, SICAV Société d’Investissement à Capital Variable à compartiments multiples Investment Fund under Luxembourg Law 562, rue de Neudorf L-2220 Luxembourg Grand Duchy of Luxembourg R.C.S. number: Luxembourg B-31442 Nordeo Audited Annual Report 2017 Nordea 1, SICAV Société d'|nvestissement 53 Capital Variable éa compartiments multiples Investment Fund under Luxembourg Law 562, rue de Neudorf L—222O Luxembourg Grand Duchy of Luxembourg R.C.S. number: Luxembourg B—31442

Nordeo Audited Annual Report 2017 Nordea 1, SICAV Annual Report 2017 Nordea 1, SICAV Société d’Investissement à Capital Variable à compartiments multiples Investment Fund under

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  • Audited Annual Report 2017Nordea 1, SICAV

    Socit dInvestissement Capital Variable compartiments multiples

    Investment Fund under Luxembourg Law

    562, rue de NeudorfL-2220 Luxembourg

    Grand Duchy of LuxembourgR.C.S. number: Luxembourg B-31442

    Nordeo

    Audited Annual Report 2017Nordea 1, SICAV

    Socit d'|nvestissement 53 Capital Variablea compartiments multiples

    Investment Fund under Luxembourg Law

    562, rue de NeudorfL222O Luxembourg

    Grand Duchy of LuxembourgR.C.S. number: Luxembourg B31442

  • No subscriptions can be received on the basis of these fi nancial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual report and the most recent semi-annual report, if published thereafter.No subscriptions can be received on the basis of these financial reports. Subscriptions are only valid if made on the basis of the currentprospectus accompanied by the latest annual report and the most recent semi-annual report, if published thereafter.

  • 1Nordea 1, SICAV - Audited Annual Report 2017

    Table of Contents

    Report of the Board of Directors 3Audit Report 6Statement of Net Assets as of 31/12/2017 8Statement of Operations and Changes in Net Assets for the year ended 31/12/2017 28Statement of Statistics as at 31/12/2017 48Statement of Investments in Securities and Other Net Assets as of 31/12/2017

    Nordea 1 - African Equity Fund 65Nordea 1 - Alpha 10 MA Fund (Formerly Nordea 1 - Multi Asset Fund) 67Nordea 1 - Alpha 15 MA Fund (Formerly Nordea 1 - Alpha 15) 74Nordea 1 - Asian Focus Equity Fund 81Nordea 1 - Balanced Income Fund (Formerly Nordea 1 - Flexible Fixed Income Plus Fund) 83Nordea 1 - Chinese Equity Fund 88Nordea 1 - Danish Bond Fund 89Nordea 1 - Danish Kroner Reserve 90Nordea 1 - Danish Mortgage Bond Fund 91Nordea 1 - Emerging Consumer Fund 94Nordea 1 - Emerging Market Bond Fund 96Nordea 1 - Emerging Market Bond Opportunities Fund 102Nordea 1 - Emerging Market Corporate Bond Fund 109Nordea 1 - Emerging Market Hard Currency Bond Fund 112Nordea 1 - Emerging Market Local Debt Fund 117Nordea 1 - Emerging Market Local Debt Fund Plus 122Nordea 1 - Emerging Market Debt Total Return Fund 126Nordea 1 - Emerging Markets Focus Equity Fund 130Nordea 1 - Emerging Markets Small Cap Fund 132Nordea 1 - Emerging Stars Equity Fund 134Nordea 1 - European Corporate Bond Fund 136Nordea 1 - European Corporate Bond Fund Plus 140Nordea 1 - European Covered Bond Fund 144Nordea 1 - European Cross Credit Fund 147Nordea 1 - European Diversifi ed Corporate Bond Fund 149Nordea 1 - European Financial Debt Fund 155Nordea 1 - European Focus Equity Fund 158Nordea 1 - European High Yield Bond Fund 159Nordea 1 - European High Yield Bond Fund II 163Nordea 1 - European Small and Mid Cap Equity Fund 168Nordea 1 - European Stars Equity Fund 170Nordea 1 - European Value Fund 171Nordea 1 - Flexible Fixed Income Fund 173Nordea 1 - GBP Diversifi ed Return Fund 180Nordea 1 - Global Bond Fund 187Nordea 1 - Global Climate and Environment Fund 190Nordea 1 - Global Dividend Fund 192Nordea 1 - Global High Yield Bond Fund 194Nordea 1 - Global Ideas Equity Fund 198Nordea 1 - Global Long Short Equity Fund - USD Hedged 200Nordea 1 - Global Opportunity Fund 206Nordea 1 - Global Portfolio Fund 207Nordea 1 - Global Real Estate Fund 208Nordea 1 - Global Small Cap Fund 209Nordea 1 - Global Stable Equity Fund 211Nordea 1 - Global Stable Equity Fund - Euro Hedged 213Nordea 1 - Global Stars Equity Fund 216Nordea 1 - Heracles Long/Short MI Fund 218Nordea 1 - Indian Equity Fund 221Nordea 1 - International High Yield Bond Fund - USD Hedged 222Nordea 1 - Latin American Equity Fund 228Nordea 1 - Low Duration European Covered Bond Fund 230Nordea 1 - Low Duration European High Yield Bond Fund 232Nordea 1 - Low Duration US High Yield Bond Fund 234Nordea 1 - Nordic Equity Fund 237

    Table of Contents

    Report of the Board of DirectorsAudit ReportStatement of Net Assets as of 31 /1 2/201 7Statement of Operations and Changes in Net Assets for the year ended 31/1 2/2017Statement of Statistics as at 31/12/2017Statement of Investments in Securities and Other Net Assets as of 31/12/2017

    Nordea 1 - African Equity FundNordea 1 - Alpha 10 MA Fund (Formerly Nordea 1 - Multi Asset Fund)Nordea 1 - Alpha 15 MA Fund (Formerly Nordea 1 - Alpha 15)Nordea 1 - Asian Focus Equity FundNordea 1 - Balanced Income Fund (Formerly Nordea 1 - Flexible Fixed Income Plus Fund)

    Nordea 1 - Chinese Equity FundNordea 1 - Danish Bond FundNordea 1 - Danish Kroner ReserveNordea 1 - Danish Mortgage Bond FundNordea 1 - Emerging Consumer FundNordea 1 - Emerging Market Bond FundNordea 1 - Emerging Market Bond Opportunities FundNordea 1 - Emerging Market Corporate Bond FundNordea 1 - Emerging Market Hard Currency Bond FundNordea 1 - Emerging Market Local Debt FundNordea 1 - Emerging Market Local Debt Fund PlusNordea 1 - Emerging Market Debt Total Return FundNordea 1 - Emerging Markets Focus Equity FundNordea 1 - Emerging Markets Small Cap FundNordea 1 - Emerging Stars Equity FundNordea 1 - European Corporate Bond FundNordea 1 - European Corporate Bond Fund PlusNordea 1 - European Covered Bond FundNordea 1 - European Cross Credit FundNordea 1 - European Diversified Corporate Bond FundNordea 1 - European Financial Debt FundNordea 1 - European Focus Equity FundNordea 1 - European High Yield Bond FundNordea 1 - European High Yield Bond Fund IINordea 1 - European Small and Mid Cap Equity FundNordea 1 - European Stars Equity FundNordea 1 - European Value FundNordea 1 - Flexible Fixed Income FundNordea 1 - GBP Diversifi ed Return FundNordea 1 - Global Bond FundNordea 1 - Global Climate and Environment FundNordea 1 - Global Dividend FundNordea 1 - Global High Yield Bond FundNordea 1 - Global Ideas Equity FundNordea 1 - Global Long Short Equity Fund - USD HedgedNordea 1 - Global Opportunity FundNordea 1 - Global Portfolio FundNordea 1 - Global Real Estate FundNordea 1 - Global Small Cap FundNordea 1 - Global Stable Equity FundNordea 1 - Global Stable Equity Fund - Euro HedgedNordea 1 - Global Stars Equity FundNordea 1 - Heracles Long/Short MI FundNordea 1 - Indian Equity FundNordea 1 - International High Yield Bond Fund - USD HedgedNordea 1 - Latin American Equity FundNordea 1 - Low Duration European Covered Bond FundNordea 1 - Low Duration European High Yield Bond FundNordea 1 - Low Duration US High Yield Bond FundNordea 1 - Nordic Equity Fund

    Nordea 1, SICAV - Audited Annual Report 2017

    O)

    2848

    6567748183888990919496

    102109112117122126130132134136140144147149155158159163168170171173180187190192194198200206207208209211213216218221222228230232234237

  • 2 Nordea 1, SICAV - Audited Annual Report 2017

    Table of Contents (continued)

    Nordea 1 - Nordic Equity Small Cap Fund 238Nordea 1 - Nordic Ideas Equity Fund 240Nordea 1 - Nordic Stars Equity Fund 241Nordea 1 - North American All Cap Fund 242Nordea 1 - North American High Yield Bond Fund 243Nordea 1 - North American Small Cap Fund 248Nordea 1 - North American Value Fund 251Nordea 1 - Norwegian Bond Fund 252Nordea 1 - Norwegian Equity Fund 254Nordea 1 - Norwegian Kroner Reserve 255Nordea 1 - Renminbi High Yield Bond Fund 257Nordea 1 - Stable Emerging Markets Equity Fund 259Nordea 1 - Stable Equity Long/Short Fund - Euro Hedged 261Nordea 1 - Stable Return Fund 266Nordea 1 - Swedish Bond Fund 275Nordea 1 - Swedish Kroner Reserve 276Nordea 1 - Unconstrained Bond Fund - USD Hedged 277Nordea 1 - US Bond Opportunities Fund 281Nordea 1 - US Corporate Bond Fund 284Nordea 1 - US High Yield Bond Fund 289Nordea 1 - US Total Return Bond Fund 292

    Notes to the Financial Statements as of 31/12/2017 296Shareholders Information 316Risk Transparency disclosures (unaudited) 316Remuneration disclosures (unaudited) 319Disclosures under the Securities Financing Transaction Regulation (unaudited) 320Organisation 343Administration 344Public Marketing Authorisations 345Representatives & Paying & Information Agents outside Luxembourg 346Auditor 348

    Table of Contents (continued)

    Nordea 1 - Nordic Equity Small Cap Fund 238Nordea 1 - Nordic Ideas Equity Fund 240Nordea 1 - Nordic Stars Equity Fund 241Nordea 1 - North American All Cap Fund 242Nordea 1 - North American High Yield Bond Fund 243Nordea 1 - North American Small Cap Fund 248Nordea 1 - North American Value Fund 251Nordea 1 - Norwegian Bond Fund 252Nordea 1 - Norwegian Equity Fund 254Nordea 1 - Norwegian Kroner Reserve 255Nordea 1 - Renminbi High Yield Bond Fund 257Nordea 1 - Stable Emerging Markets Equity Fund 259Nordea 1 - Stable Equity Long/Short Fund - Euro Hedged 261Nordea 1 - Stable Return Fund 266Nordea 1 - Swedish Bond Fund 275Nordea 1 - Swedish Kroner Reserve 276Nordea 1 - Unconstrained Bond Fund - USD Hedged 277Nordea 1 - US Bond Opportunities Fund 281Nordea 1 - US Corporate Bond Fund 284Nordea 1 - US High Yield Bond Fund 289Nordea 1 - US Total Return Bond Fund 292

    Notes to the Financial Statements as of 31/12/2017 296Shareho|ders Information 316Risk Transparency disclosures (unaudited) 316Remuneration disclosures (unaudited) 319Disclosures under the Securities Financing Transaction Regulation (unaudited) 320

    Organisation 343Administration 344Public Marketing Authorisations 345Representatives & Paying & Information Agents outside Luxembourg 346Auditor 348

    2 Nordea 1, SICAV - Audited Annual Report 2017

  • 3Nordea 1, SICAV - Audited Annual Report 2017

    Report of the Board of Directors

    The Chairmans report

    On an overall level, 2017 was yet another successful year for Nordea 1, SICAV with the general investment returns continuing to develop in a positive direction. There was, however, big dispersion in the results, with a few Sub-funds posting negative return during the year.

    The assets under management of Nordea 1, SICAV increased in 2017, ending the year with a total asset base of 63.5bn EUR, allocated across its 76 Sub-funds.

    2017 started off a bit hesitantly, but, by February, the global stock market was on a rising path with improved macro numbers and higher return on corporate earnings, which had been in a recession due to the implosion in oil prices and the strengthening of the dollar during 2015-16. Marred by the political scene in the wake of Brexit and the post US election, the stock market nevertheless made a strong showing in the early months of the year, without being interrupted by the French election in early May. A weak summer then ensued, driven by a combination of weaker macro data out of the US, geopolitical events and, to some extent, a surprisingly sturdy strengthening of the euro. US president Donald J. Trump then got into a heated argument with North Korea regarding its nuclear weapon program. While a low probability-high impact event, it did get the attention of the markets. Global stocks were close to a zero return by late August. Then, there has been a mighty rally in global stocks in September and October. The remainder of 2017 has been more stable, but with a positive tilt, adding a bit more to what, all in all, can be considered a very strong year for global stocks.

    Turning to the equity regions, the big difference this year was between emerging and developed markets. The former has been on a downward slope relative to the latter since around 2010, this due to the fi nancial crisis and the end of the commodity super cycle of the 00s. With global growth picking up, earnings returning and an attractive valuation, emerging markets have had a very good year. Returns, driven mainly by countries in Asia, have by far surpassed those of the developed countries.

    Fixed income has also shown a positive trend. With very depressed rates, the potential on paper as well as the perception among market participants was obviously low heading into 2017. Safe bond segments, such as cash and government bonds, were essentially fl at or slightly negative. This did not come as a surprise though, as the steering rates in large parts of Europe had been negative. Returns for the government bond space have been relatively fl at throughout the year while credits positively surprised with spreads continuing to compress, thereby delivering handsome returns in this part of the fi xed income market.

    In risk adjusted terms, given the low volatility that persisted throughout the year, 2017 has been extremely rewarding. Economic growth, while not spectacular, synchronised across the regions for the fi rst time in over 10 years, corporate earnings made a strong comeback and the central banks mostly continued their loose monetary policy, thereby keeping the liquidity ample and rates low. The positive development on corporate earnings is particularly important, not only for equities but also for the credit markets.

    The Stable Return Fund remained the largest Sub-fund of the umbrella with its AuM at 17.3bn EUR at year-end. European High Yield Bond Fund remained the strong number two of this year in terms of AuM while Emerging Stars Equity Fund has shown strong infl ows during the year.

    In 2017 Nordea 1, SICAV launched 4 new Sub-funds: Emerging Markets Debt Total Return Fund, European Stars Equity Fund, Low Duration European Covered Bond fund and Low Duration European High Yield Bond Fund.

    At the Annual General Meeting of Shareholders, the Board of Directors will propose that, for the fi nancial year 2017, Nordea 1, SICAV pays the following dividends:

    Sub-fund name Share class Currency (*) Amount per share

    Nordea 1 - Alpha 10 MA Fund (Note 1b) AC EUR 0.0452

    Nordea 1 - Alpha 10 MA Fund (Note 1b) HAC - GBP EUR 0.0444

    Nordea 1 - Alpha 10 MA Fund (Note 1b) HAC - USD EUR 0.0450

    Nordea 1 - Alpha 10 MA Fund (Note 1b) HAI - GBP EUR 0.0581

    Nordea 1 - Alpha 15 MA Fund (Note 1b) AP EUR 0.0151

    Nordea 1 - Balanced Income Fund (Note 1b) AI EUR 1.9864

    Nordea 1 - Balanced Income Fund (Note 1b) AP EUR 1.3550

    Nordea 1 - Danish Mortgage Bond Fund AI DKK 3.1906

    Nordea 1 - Danish Mortgage Bond Fund AP DKK 1.9625

    Nordea 1 - Danish Mortgage Bond Fund HAC - EUR DKK 0.1276

    Nordea 1 - Danish Mortgage Bond Fund HAI - EUR DKK 2.8537

    Nordea 1 - Emerging Consumer Fund AI EUR 0.0585

    Nordea 1 - Emerging Market Bond Fund AC USD 0.6742

    Nordea 1 - Emerging Market Bond Fund AI USD 6.7564

    Nordea 1 - Emerging Market Bond Fund AP USD 6.0982

    Nordea 1 - Emerging Market Bond Fund HA - EUR USD 5.9737

    Nordea 1 - Emerging Market Bond Fund HAC - EUR USD 0.6766

    Nordea 1 - Emerging Market Bond Fund HAI - EUR USD 5.6830

    Nordea 1 - Emerging Market Corporate Bond Fund AP USD 3.8704

    Nordea 1 - Emerging Market Local Debt Fund AI USD 3.9460

    Nordea 1 - Emerging Stars Equity Fund AI USD 0.3502

    Nordea 1 - European Corporate Bond Fund AI EUR 0.9475

    Nordea 1 - European Corporate Bond Fund AX EUR 1.0411

    Nordea 1 - European Corporate Bond Fund HAC - SEK EUR 0.0699

    Nordea 1 - European Covered Bond Fund AI EUR 0.1479

    Nordea 1 - European Covered Bond Fund AP EUR 0.0890

    Report of the Board of Directors

    The Chairmans report

    On an overall level, 2017 was yet another successful year for Nordea 1, SICAV with the general investment returns continuing to develop in a positivedirection. There was, however, big dispersion in the results, with a few Sub-funds posting negative return during the year.

    The assets under management of Nordea 1, SICAV increased in 2017, ending the year with a total asset base of 63.5bn EUR, allocated across its76 Sub-funds.

    2017 started off a bit hesitantly, but, by February, the global stock market was on a rising path with improved macro numbers and higher return oncorporate earnings, which had been in a recession due to the implosion in oil prices and the strengthening of the dollar during 2015-16. Marred bythe political scene in the wake of Brexit and the post US election, the stock market nevertheless made a strong showing in the early months of theyear, without being interrupted by the French election in early May. A weak summer then ensued, driven by a combination of weaker macro data out ofthe US, geopolitical events and, to some extent, a surprisingly sturdy strengthening of the euro. US president Donald J. Trump then got into a heatedargument with North Korea regarding its nuclear weapon program. While a low probability-high impact event, it did get the attention of the markets.Global stocks were close to a zero return by late August. Then, there has been a mighty rally in global stocks in September and October. The remainderof 2017 has been more stable, but with a positive tilt, adding a bit more to what, all in all, can be considered a very strong year for global stocks.

    Turning to the equity regions, the big difference this year was between emerging and developed markets. The former has been on a downward sloperelative to the latter since around 2010, this due to the financial crisis and the end of the commodity super cycle of the 00's. With global growthpicking up, earnings returning and an attractive valuation, emerging markets have had a very good year. Returns, driven mainly by countries in Asia,have by far surpassed those of the developed countries.

    Fixed income has also shown a positive trend. With very depressed rates, the potential on paper as well as the perception among market participantswas obviously low heading into 2017 Safe bond segments, such as cash and government bonds, were essentially flat or slightly negative. This didnot come as a surprise though, as the steering rates in large parts of Europe had been negative. Returns for the government bond space have beenrelatively flat throughout the year while credits positively surprised with spreads continuing to compress, thereby delivering handsome returns in thispart of the fixed income market.

    In risk adjusted terms, given the low volatility that persisted throughout the year, 2017 has been extremely rewarding. Economic growth, while notspectacular, synchronised across the regions for the first time in over 10 years, corporate earnings made a strong comeback and the central banksmostly continued their loose monetary policy, thereby keeping the liquidity ample and rates low. The positive development on corporate earnings isparticularly important, not only for equities but also for the credit markets.

    The Stable Return Fund remained the largest Sub-fund of the umbrella with its AuM at 17.3bn EUR at year-end. European High Yield Bond Fundremained the strong number two of this year in terms of AuM while Emerging Stars Equity Fund has shown strong inflows during the year.

    In 2017 Nordea 1, SICAV launched 4 new Sub-funds: Emerging Markets Debt Total Return Fund, European Stars Equity Fund, Low DurationEuropean Covered Bond fund and Low Duration European High Yield Bond Fund.

    At the Annual General Meeting of Shareholders, the Board of Directors will propose that, for the financial year 2017, Nordea 1, SICAV pays thefollowing dividends:

    Sub-fund name Share class Currency (*) Amount per share

    Nordea 1 - Alpha 10 MA Fund (Note 1b) AC EUR 0.0452Nordea 1 Alpha 10 MA Fund (Note 1b) HAC - GBP EUR 0.0444Nordea 1 Alpha 10 MA Fund (Note 1b) HAC - USD EUR 0.0450Nordea 1 Alpha 10 MA Fund (Note 1b) HAI - GBP EUR 0.0581Nordea 1 - Alpha 15 MA Fund (Note 1b) AP EUR 0.0151Nordea 1 - Balanced Income Fund (Note 1b) AI EUR 1.9864Nordea 1 - Balanced Income Fund (Note 1b) AP EUR 1.3550Nordea 1 - Danish Mortgage Bond Fund AI DKK 3.1906Nordea 1 - Danish Mortgage Bond Fund AP DKK 1.9625Nordea 1 - Danish Mortgage Bond Fund HAC - EUR DKK 0.1276Nordea 1 - Danish Mortgage Bond Fund HAI - EUR DKK 2.8537Nordea 1 - Emerging Consumer Fund AI EUR 0.0585Nordea 1 - Emerging Market Bond Fund AC USD 0.6742Nordea 1 - Emerging Market Bond Fund AI USD 6.7564Nordea 1 - Emerging Market Bond Fund AP USD 6.0982Nordea 1 - Emerging Market Bond Fund HA - EUR USD 5.9737Nordea 1 - Emerging Market Bond Fund HAC - EUR USD 0.6766Nordea 1 - Emerging Market Bond Fund HAI - EUR USD 5.6830Nordea 1 - Emerging Market Corporate Bond Fund AP USD 3.8704Nordea 1 - Emerging Market Local Debt Fund AI USD 3.9460Nordea 1 - Emerging Stars Equity Fund AI USD 0.3502Nordea 1 - European Corporate Bond Fund AI EUR 0.9475Nordea 1 - European Corporate Bond Fund AX EUR 1.041 1Nordea 1 - European Corporate Bond Fund HAC - SEK EUR 0.0699Nordea 1 - European Covered Bond Fund AI EUR 0.1479Nordea 1 - European Covered Bond Fund AP EUR 0.0890

    Nordea 1, SICAV - Audited Annual Report 2017 3

  • 4 Nordea 1, SICAV - Audited Annual Report 2017

    Report of the Board of Directors(continued)Sub-fund name Share class Currency (*) Amount per share

    Nordea 1 - European Cross Credit Fund AC EUR 3.1750

    Nordea 1 - European Cross Credit Fund AI EUR 3.2978

    Nordea 1 - European Cross Credit Fund AP EUR 2.6243

    Nordea 1 - European Cross Credit Fund HAI - USD EUR 4.3258

    Nordea 1 - European Financial Debt Fund AI EUR 6.5593

    Nordea 1 - European Financial Debt Fund AP EUR 5.1003

    Nordea 1 - European High Yield Bond Fund AC EUR 0.4495

    Nordea 1 - European High Yield Bond Fund AI EUR 0.5052

    Nordea 1 - European High Yield Bond Fund AP EUR 0.6191

    Nordea 1 - European High Yield Bond Fund HA - GBP EUR 0.3935

    Nordea 1 - European High Yield Bond Fund HA - USD EUR 0.4921

    Nordea 1 - European High Yield Bond Fund HAC - GBP EUR 0.3819

    Nordea 1 - European High Yield Bond Fund HAC - USD EUR 0.5360

    Nordea 1 - European High Yield Bond Fund HAI - GBP EUR 0.4646

    Nordea 1 - European High Yield Bond Fund HAI - USD EUR 0.5813

    Nordea 1 - European Small and Mid Cap Equity Fund AP EUR 4.7945

    Nordea 1 - European Value Fund AC EUR 0.3347

    Nordea 1 - European Value Fund AP EUR 0.0128

    Nordea 1 - Flexible Fixed Income Fund AC EUR 0.2169

    Nordea 1 - Flexible Fixed Income Fund AI EUR 2.4238

    Nordea 1 - Flexible Fixed Income Fund AP EUR 1.8482

    Nordea 1 - Flexible Fixed Income Fund HA - USD EUR 1.8972

    Nordea 1 - GBP Diversifi ed Return Fund AC GBP 1.0137

    Nordea 1 - GBP Diversifi ed Return Fund AI GBP 1.2532

    Nordea 1 - Global Bond Fund AP EUR 0.1919

    Nordea 1 - Global Dividend Fund AI USD 1.8944

    Nordea 1 - Global Dividend Fund AP USD 1.0425

    Nordea 1 - Global Real Estate Fund AP USD 1.4577

    Nordea 1 - Global Stable Equity Fund AC EUR 0.1633

    Nordea 1 - Global Stable Equity Fund AI EUR 0.2215

    Nordea 1 - Global Stable Equity Fund AP EUR 0.0511

    Nordea 1 - Global Stable Equity Fund - Euro Hedged AI EUR 0.1680

    Nordea 1 - Global Stable Equity Fund - Euro Hedged AP EUR 0.0346

    Nordea 1 - Latin American Equity Fund AP EUR 0.0988

    Nordea 1 - Low Duration US High Yield Bond Fund AC USD 0.1157

    Nordea 1 - Low Duration US High Yield Bond Fund AP USD 0.3535

    Nordea 1 - Low Duration US High Yield Bond Fund HA - EUR USD 0.2986

    Nordea 1 - Low Duration US High Yield Bond Fund HAC - EUR USD 0.0394

    Nordea 1 - Low Duration US High Yield Bond Fund HAI - EUR USD 0.2793

    Nordea 1 - Nordic Equity Fund AC EUR 0.3058

    Nordea 1 - Nordic Equity Fund AP EUR 1.1504

    Nordea 1 - Nordic Equity Small Cap Fund AP EUR 0.0982

    Nordea 1 - Nordic Ideas Equity Fund AP EUR 1.4929

    Nordea 1 - North American All Cap Fund AI USD 0.6940

    Nordea 1 - Norwegian Bond Fund AC NOK 2.0255

    Nordea 1 - Norwegian Bond Fund AP NOK 1.7260

    Nordea 1 - Norwegian Equity Fund AP NOK 5.1885

    Nordea 1 - Norwegian Kroner Reserve AC NOK 2.5848

    Nordea 1 - Norwegian Kroner Reserve AP NOK 1.3357

    Nordea 1 - Renminbi High Yield Bond Fund AP CNH 4.1606

    Nordea 1 - Stable Emerging Markets Equity Fund AC USD 1.0614

    Nordea 1 - Stable Emerging Markets Equity Fund AI USD 1.2295

    Nordea 1 - Stable Emerging Markets Equity Fund AX USD 2.1044

    Nordea 1 - Stable Equity Long/Short Fund - Euro Hedged AP EUR 0.6753

    Nordea 1 - Stable Return Fund AC EUR 0.1042

    Nordea 1 - Stable Return Fund AI EUR 0.1557

    Nordea 1 - Stable Return Fund AP EUR 0.0199

    Nordea 1 - Stable Return Fund HA - NOK EUR 0.0195

    Report of the Board of Directors(continued)Sub-fund name Share class Currency (*) Amount per share

    Nordea 1 - European Cross Credit Fund AC EUR 3.1750Nordea 1 - European Cross Credit Fund AI EUR 3.2978Nordea 1 - European Cross Credit Fund AP EUR 2.6243Nordea 1 - European Cross Credit Fund HAI - USD EUR 4.3258Nordea 1 - European Financial Debt Fund AI EUR 6.5593Nordea 1 - European Financial Debt Fund AP EUR 5.1003Nordea 1 - European High Yield Bond Fund AC EUR 0.4495Nordea 1 - European High Yield Bond Fund AI EUR 0.5052Nordea 1 - European High Yield Bond Fund AP EUR 0.6191Nordea 1 - European High Yield Bond Fund HA - GBP EUR 0.3935Nordea 1 - European High Yield Bond Fund HA - USD EUR 0.4921Nordea 1 - European High Yield Bond Fund HAC - GBP EUR 0.3819Nordea 1 - European High Yield Bond Fund HAC - USD EUR 0.5360Nordea 1 - European High Yield Bond Fund HAI - GBP EUR 0.4646Nordea 1 - European High Yield Bond Fund HAI - USD EUR 0.5813Nordea 1 - European Small and Mid Cap Equity Fund AP EUR 4.7945Nordea 1 - European Value Fund AC EUR 0.3347Nordea 1 - European Value Fund AP EUR 0.0128Nordea 1 - Flexible Fixed Income Fund AC EUR 0.2169Nordea 1 - Flexible Fixed Income Fund AI EUR 2.4238Nordea 1 - Flexible Fixed Income Fund AP EUR 1.8482Nordea 1 - Flexible Fixed Income Fund HA - USD EUR 1.8972Nordea 1 - GBP Diversified Return Fund AC GBP 1.0137Nordea 1 - GBP Diversified Return Fund AI GBP 1.2532Nordea 1 - Global Bond Fund AP EUR 0.1919Nordea 1 - Global Dividend Fund AI USD 1.8944Nordea 1 - Global Dividend Fund AP USD 1.0425Nordea 1 - Global Real Estate Fund AP USD 1.4577Nordea 1 - Global Stable Equity Fund AC EUR 0.1633Nordea 1 - Global Stable Equity Fund AI EUR 0.2215Nordea 1 - Global Stable Equity Fund AP EUR 0.051 1Nordea 1 - Global Stable Equity Fund - Euro Hedged AI EUR 0.1680Nordea 1 - Global Stable Equity Fund - Euro Hedged AP EUR 0.0346Nordea 1 - Latin American Equity Fund AP EUR 0.0988Nordea 1 - Low Duration US High Yield Bond Fund AC USD 0.1 157Nordea 1 - Low Duration US High Yield Bond Fund AP USD 0.3535Nordea 1 - Low Duration US High Yield Bond Fund HA - EUR USD 0.2986Nordea 1 - Low Duration US High Yield Bond Fund HAC - EUR USD 0.0394Nordea 1 - Low Duration US High Yield Bond Fund HAI - EUR USD 0.2793Nordea 1 - Nordic Equity Fund AC EUR 0.3058Nordea 1 - Nordic Equity Fund AP EUR 1.1504Nordea 1 - Nordic Equity Small Cap Fund AP EUR 0.0982Nordea 1 - Nordic Ideas Equity Fund AP EUR 1.4929Nordea 1 - North American All Cap Fund AI USD 0.6940Nordea 1 - Norwegian Bond Fund AC NOK 2.0255Nordea 1 - Norwegian Bond Fund AP NOK 1.7260Nordea 1 - Norwegian Equity Fund AP NOK 5.1885Nordea 1 - Norwegian Kroner Reserve AC NOK 2.5848Nordea 1 - Norwegian Kroner Reserve AP NOK 1.3357Nordea 1 - Renminbi High Yield Bond Fund AP CNH 4.1606Nordea 1 - Stable Emerging Markets Equity Fund AC USD 1.0614Nordea 1 - Stable Emerging Markets Equity Fund AI USD 1.2295Nordea 1 - Stable Emerging Markets Equity Fund AX USD 2.1044Nordea 1 - Stable Equity Long/Short Fund - Euro Hedged AP EUR 0.6753Nordea 1 - Stable Return Fund AC EUR 0.1042Nordea 1 - Stable Return Fund AI EUR 0.1557Nordea 1 - Stable Return Fund AP EUR 0.0199Nordea 1 - Stable Return Fund HA - NOK EUR 0.0195

    Nordea 1, SICAV - Audited Annual Report 2017

  • 5Nordea 1, SICAV - Audited Annual Report 2017

    Report of the Board of Directors(continued)Sub-fund name Share class Currency (*) Amount per share

    Nordea 1 - Stable Return Fund HAC - GBP EUR 0.1042

    Nordea 1 - Stable Return Fund HAI - GBP EUR 0.1390

    Nordea 1 - Stable Return Fund HAI - SEK EUR 0.1484

    Nordea 1 - Stable Return Fund HAI - USD EUR 0.1556

    Nordea 1 - Stable Return Fund HM - AUD EUR 0.0210

    Nordea 1 - Swedish Bond Fund AC SEK 1.7384

    Nordea 1 - Swedish Bond Fund AP SEK 1.4195

    Nordea 1 - Swedish Kroner Reserve AP SEK 0.0537

    Nordea 1 - US Bond Opportunities Fund AP USD 1.6071

    Nordea 1 - US Bond Opportunities Fund HA - EUR USD 1.6340

    Nordea 1 - US Corporate Bond Fund AI USD 0.4609

    Nordea 1 - US Corporate Bond Fund AP USD 0.3940

    Nordea 1 - US Corporate Bond Fund HA - EUR USD 0.4079

    Nordea 1 - US Corporate Bond Fund HAI - EUR USD 0.3237

    Nordea 1 - US Corporate Bond Fund HAI - GBP USD 0.3269

    Nordea 1 - US High Yield Bond Fund AI USD 0.6046

    Nordea 1 - US Total Return Bond Fund AC USD 2.9068

    Nordea 1 - US Total Return Bond Fund AD USD 0.3558

    Nordea 1 - US Total Return Bond Fund AI USD 3.0878

    Nordea 1 - US Total Return Bond Fund AP USD 2.4300

    Nordea 1 - US Total Return Bond Fund HA - EUR USD 2.0412

    Nordea 1 - US Total Return Bond Fund HA - GBP USD 1.9688

    Nordea 1 - US Total Return Bond Fund HAC - GBP USD 2.4292

    Nordea 1 - US Total Return Bond Fund HAD - EUR USD 0.3593

    Nordea 1 - US Total Return Bond Fund HAD - GBP USD 0.3598

    Nordea 1 - US Total Return Bond Fund HAI - EUR USD 2.5830

    Nordea 1 - US Total Return Bond Fund HAI - GBP USD 2.5117

    (*) These dividend amounts are expressed in base currency of the relevant Sub-fund and will be converted into the currency of the relevant Share class at ex-date.

    The Board would again like to thank all stakeholders involved in the management of Nordea 1, SICAV for their contribution in 2017. In this spirit of commitment and motivation, the board looks forward to continue to service shareholders the best possible way also in 2018.

    1st March 2018

    Claude Kremer - Chairman

    Performances are historical and are not necessarily an indication of present or future results.

  • 6 Nordea 1, SICAV - Audited Annual Report 2017

    AUDIT REPORT

    To the Shareholders ofNordea 1, SICAV

    Our opinion

    In our opinion, the accompanying fi nancial statements give a true and fair view of the fi nancial position of Nordea 1, SICAV and of each of its sub-funds (the Fund) as at 31 December 2017, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the fi nancial statements.

    What we have audited

    The Funds fi nancial statements comprise:

    the Statement of Net Assets as at 31 December 2017:

    the Statement of Investments in Securities and Other Net Assets as at 31 December 2017;

    the Statement of Operations and Changes in Net Assets for the year then ended; and

    the Notes to the Financial Statements, which include a summary of signifi cant accounting policies.

    Basis for opinion

    We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF). Our responsibilities under those Law and standards are further described in the Responsibilities of the Rviseur dentreprises agr for the audit of the fi nancial statements section of our report.

    We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our opinion.

    We are independent of the Fund in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the fi nancial statements. We have fulfi lled our other ethical responsibilities under those ethical requirements.

    Other information

    The Board of Directors of the Fund is responsible for the other information. The other information comprises the information included in the annual report but does not include the fi nancial statements and our audit report thereon.

    Our opinion on the fi nancial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

    In connection with our audit of the fi nancial statements, our responsibility is to read the other information identifi ed above and, in doing so, consider whether the other information is materially inconsistent with the fi nancial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

    Responsibilities of the Board of Directors of the Fund and those charged with governance for the fi nancial statements

    The Board of Directors of the Fund is responsible for the preparation and fair presentation of the fi nancial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the fi nancial statements, and for such internal control as the Board of Directors of the Fund determines is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

    In preparing the fi nancial statements, the Board of Directors of the Fund is responsible for assessing the Funds ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of the Fund either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so.

    Those charged with governance are responsible for overseeing the Funds fi nancial reporting process.

    PricewaterhouseCoopers, Socit cooprative, 2 rue Gerhard Mercator, B.P. 1443, L-1014 LuxembourgT: +352 494848 1, F:+352 494848 2900, www.pwc.lu

    Cabinet de rvision agr. Expert-comptable (autorisation gouvernementale n10028256)R.C.S. Luxembourg B 65 477 - TVA LU25482518

    pw_cAUDIT REPORT

    To the Shareholders ofNordea 1, SICAV

    Our opinion

    In our opinion, the accompanying financial statements give a true and fair view of the financial position of Nordea 1,S|CAV and of each of its sub-funds(the Fund") as at 31 December 2017, and of the results of their operations and changes in their net assets for the year then ended in accordancewith Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements.

    What we have audited

    The Fund's financial statements comprise:

    - the Statement of Net Assets as at 31 December 2017:- the Statement of Investments in Securities and Other Net Assets as at 31 December 2017;- the Statement of Operations and Changes in Net Assets for the year then ended; and- the Notes to the Financial Statements, which include a summary of significant accounting policies.

    Basis for opinion

    We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standardson Auditing (|SAs) as adopted for Luxembourg by the "Commission de Surveillance du Secteur Financier" (CSSF). Our responsibilities under thoseLaw and standards are further described in the Responsibilities of the "Rviseur dentreprises agree" for the audit of the financial statements" sectionof our report.

    We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

    We are independent of the Fund in accordance with the International Ethics Standards Board for Accountants Code of Ethics for ProfessionalAccountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of thefinancial statements. We have fulfilled our other ethical responsibilities under those ethical requirements.

    Other in formation

    The Board of Directors of the Fund is responsible for the other information. The other information comprises the information included in the annualreport but does not include the financial statements and our audit report thereon.

    Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

    In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, considerwhether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears tobe materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we arerequired to report that fact. We have nothing to report in this regard.

    Responsibilities of the Board of Directors of the Fund and those charged with governance for the financial statements

    The Board of Directors of the Fund is responsible for the preparation and fair presentation of the financial statements in accordance with Luxembourglegal and regulatory requirements relating to the preparation and presentation of the financial statements, and for such internal control as the Boardof Directors of the Fund determines is necessary to enable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.

    In preparing the financial statements, the Board of Directors of the Fund is responsible for assessing the Fund's ability to continue as a going concern,disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of the Fundeither intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so.

    Those charged with governance are responsible for overseeing the Fund's financial reporting process.

    Pricewaterhousecoopers, Socit cooprative, 2 rue Gerhard Mercator, BR. 1443, L-1014 LuxembourgT: +352 494848 1, F:+352 494848 2900, www.pwc.|u

    Cabinet de rvision agr. Expert-comptable (autorisation gouvernementale n10028256)R.C.S. Luxembourg B 65 477 - TVA LU25482518

    6 Nordea 1, SICAV - Audited Annual Report 2017

  • J-pwcResponsibilities of the Rviseur d'entreprises agr for the audit of the financial statements

    The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but is nota guarantee that an audit conducted in accordance with the Law of 23 July 2016 and with |SAs as adopted for Luxembourg by the CSSF willalways detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

    As part of an audit in accordance with the Law of 23 July 2016 and with |SAs as adopted for Luxembourg by the CSSF, we exercise professionaljudgment and maintain professional scepticism throughout the audit.

    We also:

    - identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform auditprocedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control;

    - obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, butnot for the purpose of expressing an opinion on the effectiveness of the Funds internal control;

    - evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by theBoard of Directors of the Fund;

    - conclude on the appropriateness of the Board of Directors of the Funds use of the going concern basis of accounting and, based on the auditevidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund's ability tocontinue as a going concern. if we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the relateddisclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our audit report. However, future events or conditions may cause the Fund to cease to continue as a goingconcern;

    - evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fair presentation.

    We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant auditfindings, including any significant deficiencies in internal control that we identify during our audit.

    PricewaterhouseCoopers, Socit cooprative Luxembourg, 15 March 2018Represented by

    .\ t

    A r.

    Christelle Crpin V

    Nordea 1, SICAV - Audited Annual Report 2017 7

  • 8

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Statement of Net Assetsas of 31/12/2017

    Combined Statement Nordea 1 - African Equity Fund

    Nordea 1 - Alpha 10 MA Fund

    (Note 1b)

    (in EUR) (in EUR) (in EUR)

    AssetsShares portfolio at market value (Note 2) 29,750,202,571.63 34,223,297.63 771,024,436.81 Funds portfolio at market value (Note 2) 172,691,561.55 - -Bonds portfolio at market value (Note 2) 30,747,317,197.19 - 390,236,393.05 Cash at banks 2,087,340,146.19 4,807,079.46 308,714,592.32 Dividends and interest receivable 330,145,905.13 - 6,138,894.19 Receivable for investments sold 30,174,248.69 0.01 -Receivable for subscribed shares 182,605,123.88 517,175.77 6,253,004.37 Receivable on forward foreign exchange contracts 29,420,906.46 111,005.57 -Net other receivable 54,958,794.28 - 2,681.22 Unrealised gain on contracts for difference (Note 2) 68,680,689.78 - 14,426,596.11 Credit default swaps at cost (Note 2) 221,215,967.47 - 28,988,052.78 Unrealised gain on credit default swaps (Note 2) 11,010,321.35 - -Unrealised gain on futures (Note 2) 4,304,782.45 - 622,424.80 Unrealised gain on futures already cashed (Note 2) 15,342,869.07 - -Unrealised gain on interest rate swaps (Note 2) 1,032,820.57 - -Unrealised gain on forward foreign exchange contracts (Note 2) 293,890,263.42 - 14,176,044.84 Unrealised gain on foreign currencies receivables and payables (Note 2) 104,846.05 554.67 1,318.59

    64,000,439,015.15 39,659,113.11 1,540,584,439.08

    LiabilitiesAccrued fees 177,752,156.98 202,168.98 5,563,324.30 Overdraft at banks 298.53 - -Interest payable 52,629.72 714.00 -Payable on forward foreign exchange contracts 29,414,262.16 111,039.27 -Payable for investments purchased 95,758,360.40 - 172,126.30 Payable for redeemed shares 154,716,710.74 445,605.38 1,613,957.36 Net other payable 3,893.20 - -Credit default swaps at cost (Note 2) 3,254,228.03 - -Unrealised loss on credit default swaps (Note 2) 1,602,960.86 - 403,743.31 Unrealised loss on futures (Note 2) 402,634.84 - -Unrealised loss on futures already cashed (Note 2) 14,775,928.27 - 3,260,475.40 Unrealised loss on interest rate swaps (Note 2) 386,963.25 - -Unrealised loss on total return swaps (Note 2) 663,323.44 - -Unrealised loss on forward foreign exchange contracts (Note 2) 2,200,853.92 - -Unrealised loss on foreign currencies receivables and payables (Note 2) 218,767.39 - -

    481,203,971.72 759,527.63 11,013,626.67

    Total net assets - unswung 63,519,235,043.43 38,899,585.48 1,529,570,812.41

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 63,519,235,043.43 38,899,585.48 1,529,570,812.41

    Portfolio at acquisition cost 57,707,988,538.73 31,620,084.11 1,155,344,250.63

    Statement of Net Assetsas of 31/12/2017

    Combined Statement Nordea 1 - Nordea 1 -African Equity Fund Alpha 10 MA Fund

    (Note 1b)(in EUR) (in EUR) (in EUR)

    AssetsShares portfolio at market value (Note 2) 29,750,202,571.63 34,223,29'7.63 771 ,024,436.81Funds portfolio at market value (Note 2) 172,691,561.55 - -Bonds portfolio at market value (Note 2) 30,74'7,31'7,19'7.19 - 390,236,393.05Cash at banks 2,08'7,340,146.19 4,80'7,079.46 308,714,592.32Dividends and interest receivable 330,145,905.13 - 6,138,894.19Receivable for investments sold 30,1 74,248.69 0.01 -Receivable for subscribed shares 182,605,1 23.88 517,175.77 6,253,004.37Receivable on forward foreign exchange contracts 29,420,906.46 1 1 1,005.57 -Net other receivable 54,958,794.28 - 2,681.22Unrealised gain on contracts for difference (Note 2) 68,680,689.78 - 14,426,596.1 1Credit default swaps at cost (Note 2) 221,215,96'7.47 - 28,988,052.78Unrealised gain on credit default swaps (Note 2) 1 1,010,321.35 - -Unrealised gain on futures (Note 2) 4,304,782.45 - 622,424.80Unrealised gain on futures already cashed (Note 2) 15,342,869.07 - -Unrealised gain on interest rate swaps (Note 2) 1,032,820.57 - -Unrealised gain on forward foreign exchange contracts (Note 2) 293,890,263.42 - 14,176,044.84Unrealised gain on foreign currencies receivables and payables (Note 2) 104,846.05 554.67 1,318.59

    64,000,439,015.1 5 39,659,11 3.11 1,540,584,439.08

    LiabilitiesAccrued fees 17'7,752,156.98 202,168.98 5,563,324.30Overdraft at banks 298.53 - -Interest payable 52,629.72 714.00 -Payable on forward foreign exchange contracts 29,414,262.16 1 1 1,039.27 -Payable for investments purchased 95,758,360.40 - 172,1 26.30Payable for redeemed shares 154,716,710.74 445,605.38 1,613,95'7.36Net other payable 3,893.20 - -Credit default swaps at cost (Note 2) 3,254,228.03 - -Unrealised loss on credit default swaps (Note 2) 1,602,960.86 - 403,743.31Unrealised loss on futures (Note 2) 402,634.84 - -Unrealised loss on futures already cashed (Note 2) 14,775,928.27 - 3,260,475.40Unrealised loss on interest rate swaps (Note 2) 386,963.25 - -Unrealised loss on total return swaps (Note 2) 663,323.44 - -Unrealised loss on fonuard foreign exchange contracts (Note 2) 2,200,853.92 - -Unrealised loss on foreign currencies receivables and payables (Note 2) 218,76'7.39 - -

    481 ,203,971 .72 759,527.63 11,013,626.67

    Total net assets - unswung 63,51 9,235,043.43 38,89!-9,585.48 1,529,570,812.41

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 63,51 9,235,043.43 38,89!-9,585.48 1,529,570,812.41

    Portfolio at acquisition cost 5'7,70'7,988,538.73 31 ,620,084.1 1 1,155,344,250.63

    The accompanying notes form an integral part of these financial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

  • 9

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Nordea 1 - Alpha 15 MA Fund

    (Note 1b)

    Nordea 1 - Asian Focus Equity Fund

    Nordea 1 - Balanced Income

    Fund (Note 1b)

    Nordea 1 - Chinese Equity

    Fund

    Nordea 1 - Danish Bond

    Fund

    (in EUR) (in USD) (in EUR) (in USD) (in DKK)

    473,980,909.77 180,322,704.53 - 220,975,877.61 -- - 5,414,228.27 - -

    123,433,782.67 - 147,271,164.94 - 110,843,634.40 190,896,883.21 1,541,960.25 4,471,107.62 4,573,372.91 1,629,448.33

    3,156,277.45 235,549.57 923,294.04 29,904.24 419,784.37 - - - - -

    1,552,411.11 2,753,452.88 128,431.37 910,890.70 1,479.89 - 535,677.11 - 1,186,278.35 157,122.11 - - - - 1,131,428.94

    26,074,763.83 - - - -24,774,334.28 - 3,779,987.89 - -

    - - 355,919.01 - -529,911.34 - 53,395.12 - -

    - - 477,784.29 - -- - - - -

    5,491,728.53 33,351.07 901,841.17 - -8,153.13 - - 109.94 20.10

    849,899,155.32 185,422,695.41 163,777,153.72 227,676,433.75 114,182,918.14

    1,729,247.26 596,245.71 333,530.26 47,065.92 267,376.06 - - - - -- - - - -- 534,894.83 - 1,186,453.16 157,152.77 - 1,188,087.53 - 533,930.31 -

    397,294.53 183,341.24 99,463.10 - 235,389.07 - - - - -- - - - -

    339,241.59 - - - -- - - - -

    2,826,423.47 - - - -- - - - -- - - - -- - - - -- 1,580.52 0.19 - -

    5,292,206.85 2,504,149.83 432,993.55 1,767,449.39 659,917.90

    844,606,948.47 182,918,545.58 163,344,160.17 225,908,984.36 113,523,000.24

    - - - - -

    844,606,948.47 182,918,545.58 163,344,160.17 225,908,984.36 113,523,000.24

    580,969,994.89 140,860,173.72 157,723,265.78 170,969,553.79 110,172,832.61

    Nordea 1 - Nordea 1 - Nordea 1 - Nordea 1 - Nordea 1 -Alpha 15 MA Fund Asian Focus Palanced Income Chinese Equity Danish Bond

    (Note 1b) Equity Fund Fund (Note 1b) Fund Fund(in EUR) (in USD) (in EUR) (in USD) (in DKK)

    473,980,909.77 180,322,704.53 - 220,975,87'Z61 - - 5,414,228.27 -

    123,433,782.67 - 14'7,271,164.94 - 1 10,843,634.40190,896,883.21 1,541,960.25 4,471,10'7.62 4,573,372.91 1,629,448.33

    3,156,27'Z45 235,549.57 923,294.04 29,904.24 419,784.37

    1,552,41 1.1 1 2,753,452.88 128,431.37 910,890.70 1,479.89- 535,67'7.1 1 - 1,186,278.35 15'7,122.1 1- - - - 1,131,428.94

    26,074,763.83 - - - 24,774,334.28 - 3,779,987.89 -

    - - 355,919.01 - 529,91 1.34 - 53,395.12 -

    - - 477,784.29 -

    5,491,728.53 33,351.07 901,841.17 - 8,153.13 - - 109.94 20.10

    849,899,1 55.32 1 85,422,695.41 1 63,777,1 53.72 227,676,433.75 114,182,91 8.14

    1,729,247.26 596,245.71 333,530.26 47,065.92 267,376.06

    - 534,894.83 - 1,186,453.16 15'7,152.77- 1,188,087.53 - 533,930.31

    397,294.53 183,341.24 99,463.10 - 235,389.07

    339,241.59 - - -

    2,826,423.47 - - -

    - 1,580.52 0.19 -

    5,292,206.85 2,504,149.83 432,993.55 1 ,767,449.39 659,917.90

    844,606,948.47 1 82,918,545.58 1 63,344,1 60.1 7 225,908,984.36 113,523,000.24

    844,606,948.47 1 82,918,545.58 1 63,344,1 60.1 7 225,908,984.36 113,523,000.24

    580,969,994.89 140,860,173.72 15'7,723,265.78 1 70,969,553.79 1 10,1 72,832.61

    The accompanying notes form an integral part of these financial statements.

    Nordea 1, SICAV - Audited Annual Report 2017 9

  • 10

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Statement of Net Assetsas of 31/12/2017

    Nordea 1 - Danish Kroner

    Reserve

    Nordea 1 - Danish Mortgage

    Bond Fund

    Nordea 1 - Emerging

    Consumer Fund

    (in DKK) (in DKK) (in EUR)

    AssetsShares portfolio at market value (Note 2) - - 136,176,030.49 Funds portfolio at market value (Note 2) - - -Bonds portfolio at market value (Note 2) 79,121,256.78 5,562,784,553.05 -Cash at banks 3,169,080.07 83,740,000.70 3,553,056.71 Dividends and interest receivable 275,648.07 31,498,230.02 198,616.45 Receivable for investments sold - - -Receivable for subscribed shares 46,670.14 2,855,988.93 111,658.71 Receivable on forward foreign exchange contracts 178,651.72 973,301.66 30,946.06 Net other receivable - 99,595,502.64 -Unrealised gain on contracts for difference (Note 2) - - -Credit default swaps at cost (Note 2) - - -Unrealised gain on credit default swaps (Note 2) - - -Unrealised gain on futures (Note 2) - - -Unrealised gain on futures already cashed (Note 2) - - -Unrealised gain on interest rate swaps (Note 2) - - -Unrealised gain on forward foreign exchange contracts (Note 2) - - 13.98 Unrealised gain on foreign currencies receivables and payables (Note 2) 35.05 - -

    82,791,341.83 5,781,447,577.00 140,070,322.40

    LiabilitiesAccrued fees 88,417.15 6,665,565.71 546,691.34 Overdraft at banks - - -Interest payable - - -Payable on forward foreign exchange contracts 178,678.38 973,169.00 30,944.55 Payable for investments purchased - - -Payable for redeemed shares 180,002.84 1,977,096.96 66,786.83 Net other payable - - -Credit default swaps at cost (Note 2) - - -Unrealised loss on credit default swaps (Note 2) - - -Unrealised loss on futures (Note 2) - 280,046.30 -Unrealised loss on futures already cashed (Note 2) - 2,643,360.48 -Unrealised loss on interest rate swaps (Note 2) - 898,793.35 -Unrealised loss on total return swaps (Note 2) - - -Unrealised loss on forward foreign exchange contracts (Note 2) - 3,952,199.04 -Unrealised loss on foreign currencies receivables and payables (Note 2) - 64.97 131.84

    447,098.37 17,390,295.81 644,554.56

    Total net assets - unswung 82,344,243.46 5,764,057,281.19 139,425,767.84

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 82,344,243.46 5,764,057,281.19 139,425,767.84

    Portfolio at acquisition cost 79,374,808.56 5,441,494,060.33 118,277,210.85

    Statement of Net Assetsas of 31/12/2017

    Nordea 1 - Nordea 1 - Nordea 1 -Danish Kroner Danish Mortgage Emerging

    Reserve Bond Fund Consumer Fund(in DKK) (in DKK) (in EUR)

    AssetsShares portfolio at market value (Note 2) - - 136,176,030.49Funds portfolio at market value (Note 2) - - -Bonds portfolio at market value (Note 2) 79,121,256.78 5,562,784,553.05 -Cash at banks 3,169,080.07 83,740,000.70 3,553,056.71Dividends and interest receivable 275,648.07 31 ,498,230.02 198,616.45Receivable for investments sold - - -Receivable for subscribed shares 46,670.14 2,855,988.93 1 1 1,658.71Receivable on fonNard foreign exchange contracts 1 78,651.72 973,301.66 30,946.06Net other receivable - 99,595,502.64 -Unrealised gain on contracts for difference (Note 2) - - -Credit default swaps at cost (Note 2) - - -Unrealised gain on credit default swaps (Note 2) - - -Unrealised gain on futures (Note 2) - - -Unrealised gain on futures already cashed (Note 2) - - -Unrealised gain on interest rate swaps (Note 2) - - -Unrealised gain on fonNard foreign exchange contracts (Note 2) - - 13.98Unrealised gain on foreign currencies receivables and payables (Note 2) 35.05 - -

    82,791 ,341.83 5,781 ,447,577.00 140,070,322.40

    LiabilitiesAccrued fees 88,41'7.15 6,665,565.71 546,691.34Overdraft at banks - - -Interest payable - - -Payable on forward foreign exchange contracts 1 78,678.38 973,169.00 30,944.55Payable for investments purchased - - -Payable for redeemed shares 180,002.84 1,977,096.96 66,786.83Net other payable - - -Credit default swaps at cost (Note 2) - - -Unrealised loss on credit default swaps (Note 2) - - -Unrealised loss on futures (Note 2) - 280,046.30 -Unrealised loss on futures already cashed (Note 2) - 2,643,360.48 -Unrealised loss on interest rate swaps (Note 2) - 898,793.35 -Unrealised loss on total return swaps (Note 2) - - -Unrealised loss on fonuard foreign exchange contracts (Note 2) - 3,952,199.04 -Unrealised loss on foreign currencies receivables and payables (Note 2) - 64.97 131.84

    447,098.37 17,390,295.81 644,554.56

    Total net assets - unswung 82,344,243.46 5,764,057,281.1 9 1 39,425,767.84

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 82,344,243.46 5,764,057,281.1 9 1 39,425,767.84

    Portfolio at acquisition cost 79,374,808.56 5,441 ,494,060.33 1 18,27'7,210.85

    The accompanying notes form an integral part of these financial statements.

    10 Nordea 1, SICAV - Audited Annual Report 2017

  • 11

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Nordea 1 - Emerging Market

    Bond Fund

    Nordea 1 - Emerging Market Bond

    Opportunities Fund

    Nordea 1 - Emerging Market

    Corporate Bond Fund

    Nordea 1 - Emerging Market Hard

    Currency Bond Fund

    Nordea 1 - Emerging Market Local

    Debt Fund

    (in USD) (in USD) (in USD) (in USD) (in USD)

    - - - - -- - - - -

    2,053,144,508.02 153,632,198.16 215,138,677.41 133,634,042.01 152,089,454.32 33,757,060.87 3,707,805.10 1,932,716.95 5,135,252.03 4,137,173.51

    32,169,666.28 2,769,656.13 2,760,461.72 1,995,701.02 3,153,333.62 - - - - -

    3,632,748.18 1,185.02 1,800,334.23 2,376.73 4,151.13 708,866.68 - - - 4,161.27

    - - - - -- - - - -- - - - -- - - - -- - - - 2,592.00 - - - 4,968.75 15,465.81 - - - 13,990.19 -

    20,826,120.64 1,043,561.97 2,722,100.48 1,914,986.53 -359.18 - 36.05 - -

    2,144,239,329.85 161,154,406.38 224,354,326.84 142,701,317.26 159,406,331.66

    4,016,088.84 149,546.94 508,989.40 222,981.45 121,762.28 - - - - -- - - - -

    709,586.92 - - - 4,149.26 - - - - -

    2,355,091.37 - 1,748,613.01 6,648.66 -- - - - -- - - - -- - - - -- - - 1,125.00 -- - - - -- - - - 121,356.20 - - - - -- - - - 31,856.46 - - - 0.03 1.86

    7,080,767.13 149,546.94 2,257,602.41 230,755.14 279,126.06

    2,137,158,562.72 161,004,859.44 222,096,724.43 142,470,562.12 159,127,205.60

    - - - - -

    2,137,158,562.72 161,004,859.44 222,096,724.43 142,470,562.12 159,127,205.60

    1,984,821,938.12 155,346,192.12 211,739,002.22 127,762,203.10 156,732,759.40

    Nordea 1 - Nordea 1 - Nordea 1 - Nordea 1 - Nordea 1 -Emerging Market Emerging Market Bond Emerging Market Emerging Market Hard Emerging Market Local

    Bond Fund Opportunities Fund Corporate Bond Fund Currency Bond Fund Debt Fund(in USD) (in USD) (in USD) (in USD) (in USD)

    2,053,144,508.02 153,632,198.16 215,138,67'7.41 133,634,042.01 152,089,454.3233,75'7,060.87 3,70'7,805.10 1,932,716.95 5,135,252.03 4,13'7,173.51

    32,169,666.28 2,769,656.13 2,760,461.72 1,995,701.02 3,153,333.62

    3,632,748.18 1,185.02 1,800,334.23 2,376.73 4,151.13708,866.68 - - - 4,161.27

    - - 2,592.00 - - 4,968.75 15,465.81 - - 13,990.19 -

    20,826,120.64 1,043,561.97 2,722,100.48 1,914,986.53 -359.18 - 36.05 -

    2,144,239,329.85 1 61,1 54,406.38 224,354,326.84 142,701 ,31 7.26 159,406,331.66

    4,016,088.84 149,546.94 508,989.40 222,981.45 121,762.28

    709,586.92 - - - 4,149.26

    2,355,091.37 - 1,748,613.01 6,648.66 -

    - - 1,125.00 -

    - - 121,356.20

    - - 31,856.46 - - 0.03 1.86

    7,080,767.13 149,546.94 2,257,602.41 230,755.14 279,126.06

    2,137,158,562.72 1 61 ,004,859.44 222,096,724.43 142,470,562.12 159,127,205.60

    2,137,158,562.72 1 61 ,004,859.44 222,096,724.43 142,470,562.12 159,127,205.60

    1,984,821 ,938.1 2 155,346,192.12 21 1,739,002.22 1 2'7,762,203.10 156,732,759.40

    The accompanying notes form an integral part of these financial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

  • 12

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Statement of Net Assetsas of 31/12/2017

    Nordea 1 - Emerging Market

    Local Debt Fund Plus

    Nordea 1 - Emerging Markets Debt

    Total Return Fund (Note 1a)

    Nordea 1 - Emerging Markets Focus Equity Fund

    (in USD) (in USD) (in USD)

    AssetsShares portfolio at market value (Note 2) - - 110,217,306.73 Funds portfolio at market value (Note 2) - - -Bonds portfolio at market value (Note 2) 64,577,098.78 27,466,038.58 -Cash at banks 1,788,601.07 1,700,565.69 1,526,867.59 Dividends and interest receivable 1,185,700.06 530,358.98 120,127.47 Receivable for investments sold - - -Receivable for subscribed shares 63,874.44 - 144,272.76 Receivable on forward foreign exchange contracts - - 48,822.16 Net other receivable - - -Unrealised gain on contracts for difference (Note 2) - - -Credit default swaps at cost (Note 2) - 149,534.22 -Unrealised gain on credit default swaps (Note 2) - - -Unrealised gain on futures (Note 2) 2,592.00 1,749.93 -Unrealised gain on futures already cashed (Note 2) 15,465.81 58,238.24 -Unrealised gain on interest rate swaps (Note 2) - - -Unrealised gain on forward foreign exchange contracts (Note 2) 82,827.30 18,477.70 -Unrealised gain on foreign currencies receivables and payables (Note 2) 0.05 - 633.32

    67,716,159.51 29,924,963.34 112,058,030.03

    LiabilitiesAccrued fees 151,562.27 28,774.62 406,408.18 Overdraft at banks - - -Interest payable - - -Payable on forward foreign exchange contracts - - 48,898.38 Payable for investments purchased - - -Payable for redeemed shares 4,089.07 - 131,413.13 Net other payable - - -Credit default swaps at cost (Note 2) - - -Unrealised loss on credit default swaps (Note 2) - 180,123.91 -Unrealised loss on futures (Note 2) - - -Unrealised loss on futures already cashed (Note 2) - - -Unrealised loss on interest rate swaps (Note 2) 180,549.07 17,640.45 -Unrealised loss on total return swaps (Note 2) - - -Unrealised loss on forward foreign exchange contracts (Note 2) - - -Unrealised loss on foreign currencies receivables and payables (Note 2) - - -

    336,200.41 226,538.98 586,719.69

    Total net assets - unswung 67,379,959.10 29,698,424.36 111,471,310.34

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 67,379,959.10 29,698,424.36 111,471,310.34

    Portfolio at acquisition cost 62,664,000.70 27,313,446.36 88,828,067.77

    Statement of Net Assetsas of 31/12/2017

    Nordea 1 - Nordea 1 - Nordea 1 -Emerging Market Emerging Markets Debt Emerging Markets

    Local Debt Fund Plus Total Return Fund (Note 1a) Focus Equity Fund(in USD) (in USD) (in USD)

    AssetsShares portfolio at market value (Note 2) - - 1 10,21 '7,306.73Funds portfolio at market value (Note 2) - - -Bonds portfolio at market value (Note 2) 64,57'7,098.78 2'7,466,088.58 -Cash at banks 1,788,601.07 1,700,565.69 1,526,86'7.59Dividends and interest receivable 1,185,700.06 580,358.98 120,12'7.47Receivable for investments sold - - -Receivable for subscribed shares 63,874.44 - 144,272.76Receivable on fonNard foreign exchange contracts - - 48,822.16Net other receivable - - -Unrealised gain on contracts for difference (Note 2) - - -Credit default swaps at cost (Note 2) - 1 49,584.22 -Unrealised gain on credit default swaps (Note 2) - - -Unrealised gain on futures (Note 2) 2,592.00 1,749.98 -Unrealised gain on futures already cashed (Note 2) 15,465.81 58,238.24 -Unrealised gain on interest rate swaps (Note 2) - - -Unrealised gain on fonNard foreign exchange contracts (Note 2) 82,827.30 18,477.70 -Unrealised gain on foreign currencies receivables and payables (Note 2) 0.05 - 683.82

    67,71 6,1 59.51 29,924,963.34 11 2,058,030.03

    LiabilitiesAccrued fees 151,562.27 28,774.62 406,408.18Overdraft at banks - - -Interest payable - - -Payable on forward foreign exchange contracts - - 48,898.88Payable for investments purchased - - -Payable for redeemed shares 4,089.07 - 181,413.18Net other payable - - -Credit default swaps at cost (Note 2) - - -Unrealised loss on credit default swaps (Note 2) - 180,123.91 -Unrealised loss on futures (Note 2) - - -Unrealised loss on futures already cashed (Note 2) - - -Unrealised loss on interest rate swaps (Note 2) 180,549.07 17,640.45 -Unrealised loss on total return swaps (Note 2) - - -Unrealised loss on fonuard foreign exchange contracts (Note 2) - - -Unrealised loss on foreign currencies receivables and payables (Note 2) - - -

    336,200.41 226,538.98 586,71 9.69

    Total net assets - unswung 67,379,959.1 0 29,698,424.36 1 11 ,471,310.34

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 67,379,959.1 0 29,698,424.36 1 11 ,471,310.34

    Portfolio at acquisition cost 62,664,000.70 2'7,813,446.36 88,828,06'7.77

    The accompanying notes form an integral part of these financial statements.

    12 Nordea 1, SICAV - Audited Annual Report 2017

  • 13

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Nordea 1 - Emerging Markets

    Small Cap Fund

    Nordea 1 - Emerging Stars

    Equity Fund

    Nordea 1 - European Corporate

    Bond Fund

    Nordea 1 - European Corporate

    Bond Fund Plus

    Nordea 1 - European Covered

    Bond Fund

    (in USD) (in USD) (in EUR) (in EUR) (in EUR)

    215,823,947.74 3,736,948,885.05 - - -2,326,284.23 - - - -

    - - 778,331,917.72 85,444,515.32 855,994,107.73 3,450,418.80 43,565,139.45 2,118,694.79 1,114,559.99 29,225,157.15

    273,945.00 4,028,058.74 9,396,382.80 1,032,652.33 8,383,825.51 - - 1,432,107.93 225,336.30 -

    103,233.11 28,518,111.22 577,345.41 - 1,680,787.47 88,847.27 10,340,156.24 - - -

    - - - - -- - - - -- - 1,791,924.09 744,570.02 -- - - - -- - - 2,020.00 -- - - 14,677.61 -- - - - 195,577.93 - 158.12 2,653,363.00 27,439.61 293,916.07

    1,633.08 - - - -

    222,068,309.23 3,823,400,508.82 796,301,735.74 88,605,771.18 895,773,371.86

    167,605.96 11,842,527.35 781,072.28 44,509.21 1,224,025.16 - - - - -- - - - -

    88,736.47 10,327,101.97 - - -554,271.67 6,723,587.29 737,427.26 165,800.93 6,034,800.00 14,658.92 18,610,935.70 1,658,392.06 - 363,697.60

    - - - - -- - - - 1,251,997.68 - - 294,442.85 207,253.22 137,799.47 - - - - 16,436.59 - - - - 60,525.85 - - - - -- - - - -- - - - -- 8,062.33 2.10 - -

    825,273.02 47,512,214.64 3,471,336.55 417,563.36 9,089,282.35

    221,243,036.21 3,775,888,294.18 792,830,399.19 88,188,207.82 886,684,089.51

    - - - - -

    221,243,036.21 3,775,888,294.18 792,830,399.19 88,188,207.82 886,684,089.51

    184,694,277.66 2,787,752,098.56 769,970,786.71 84,294,755.93 865,013,551.33

    Nordea 1 - Nordea 1 - Nordea 1 - Nordea 1 - Nordea 1 -Emerging Markets Emerging Stars European Corporate European Corporate European Covered

    Small Cap Fund Equity Fund Bond Fund Bond Fund Plus Bond Fund(in USD) (in USD) (in EUR) (in EUR) (in EUR)

    21 5,823,94'7.74 3,736,948,885.05 - - 2,326,284.23 - - -

    - 778,331,917.72 85,444,515.32 855,994,10'7.733,450,418.80 43,565,139.45 2,1 18,694.79 1,1 14,559.99 29,225,157.15

    273,945.00 4,028,058.74 9,396,382.80 1,032,652.33 8,383,825.51 - 1,432,10'7.93 225,336.30 -

    103,233.1 1 28,518,1 1 1.22 577,345.41 1,680,787.4788,847.27 10,340,156.24 - -

    - 1,791 ,924.09 744,570.02

    - - 2,020.00 - - - 14,677.61 - - - 195,577.93 158.12 2,653,363.00 27,439.61 293,91 6.07

    1,633.08 - - -

    222,068,309.23 3,823,400,508.82 796,301 ,735.74 88,605,771.18 895,773,371.86

    167,605.96 1 1,842,527.35 781,072.28 44,509.21 1,224,025.16

    88,736.47 10,327,101.97 - - 554,271.67 6,723,587.29 73'7,42'7.26 165,800.93 6,034,800.00

    14,658.92 18,610,935.70 1,658,392.06 363,697.60

    - - - 1,251 ,99'7.68 - 294,442.85 207,253.22 137,799.47 - - - 16,436.59 - - - 60,525.85

    8,062.33 2.10 -

    825,273.02 47,51 2,214.64 3,471,336.55 417,563.36 9,089,282.35

    221 ,243,036.21 3,775,888,294.18 792,830,399.19 88,188,207.82 886,684,089.51

    221,243,036.21 3,775,888,294.18 792,830,399.19 88,188,207.82 886,684,089.51

    184,694,27'7.66 2,78'7,752,098.56 769,970,786.71 84,294,755.93 865,013,551.33

    The accompanying notes form an integral part of these financial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

  • 14

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Statement of Net Assetsas of 31/12/2017

    Nordea 1 - European Cross

    Credit Fund

    Nordea 1 - European Diversifi ed

    Corporate Bond Fund

    Nordea 1 - European Financial

    Debt Fund

    (in EUR) (in EUR) (in EUR)

    AssetsShares portfolio at market value (Note 2) - - -Funds portfolio at market value (Note 2) - - -Bonds portfolio at market value (Note 2) 1,239,837,728.75 82,374,034.05 419,939,727.91 Cash at banks 11,424,389.52 749,952.93 23,462,099.31 Dividends and interest receivable 16,277,110.09 1,178,647.00 7,857,198.60 Receivable for investments sold - - -Receivable for subscribed shares 4,814,517.50 - 10,066,349.60 Receivable on forward foreign exchange contracts - - -Net other receivable - - -Unrealised gain on contracts for difference (Note 2) - - -Credit default swaps at cost (Note 2) - - 2,781,502.18 Unrealised gain on credit default swaps (Note 2) - - 583,822.03 Unrealised gain on futures (Note 2) - 1,120.00 108,285.79 Unrealised gain on futures already cashed (Note 2) - - 214,778.82 Unrealised gain on interest rate swaps (Note 2) - - -Unrealised gain on forward foreign exchange contracts (Note 2) 1,131,638.76 440,982.09 488,916.57 Unrealised gain on foreign currencies receivables and payables (Note 2) - - 1,324.42

    1,273,485,384.62 84,744,736.07 465,504,005.23

    LiabilitiesAccrued fees 2,792,772.10 15,841.59 874,307.22 Overdraft at banks - - -Interest payable - - -Payable on forward foreign exchange contracts - - -Payable for investments purchased - - 7,490,720.84 Payable for redeemed shares 3,526,958.96 - 100,597.69 Net other payable - - -Credit default swaps at cost (Note 2) - - -Unrealised loss on credit default swaps (Note 2) - - -Unrealised loss on futures (Note 2) - - -Unrealised loss on futures already cashed (Note 2) - 2,050.00 -Unrealised loss on interest rate swaps (Note 2) - - -Unrealised loss on total return swaps (Note 2) - - -Unrealised loss on forward foreign exchange contracts (Note 2) - - -Unrealised loss on foreign currencies receivables and payables (Note 2) 0.15 - -

    6,319,731.21 17,891.59 8,465,625.75

    Total net assets - unswung 1,267,165,653.41 84,726,844.48 457,038,379.48

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 1,267,165,653.41 84,726,844.48 457,038,379.48

    Portfolio at acquisition cost 1,208,801,776.63 81,215,692.98 407,756,072.17

    Statement of Net Assetsas of 31/12/2017

    Nordea 1 - Nordea 1 - Nordea 1 -European Cross European Diversified European Financial

    Credit Fund Corporate Bond Fund Debt Fund(in EUR) (in EUR) (in EUR)

    AssetsShares portfolio at market value (Note 2) - - -Funds portfolio at market value (Note 2) - - -Bonds portfolio at market value (Note 2) 1,289,837,728.75 82,374,084.05 419,939,727.91Cash at banks 1 1,424,889.52 749,952.93 23,462,099.81Dividends and interest receivable 1 6,27'7,1 10.09 1,178,64'7.00 '7,85'7,198.60Receivable for investments sold - - -Receivable for subscribed shares 4,814,51'7.50 - 10,066,849.60Receivable on fonNard foreign exchange contracts - - -Net other receivable - - -Unrealised gain on contracts for difference (Note 2) - - -Credit default swaps at cost (Note 2) - - 2,781,502.18Unrealised gain on credit default swaps (Note 2) - - 583,822.03Unrealised gain on futures (Note 2) - 1,120.00 108,285.79Unrealised gain on futures already cashed (Note 2) - - 214,778.82Unrealised gain on interest rate swaps (Note 2) - - -Unrealised gain on fonNard foreign exchange contracts (Note 2) 1,131,688.76 440,982.09 488,916.57Unrealised gain on foreign currencies receivables and payables (Note 2) - - 1,324.42

    1 ,273,485,384.62 84,744,736.07 465,504,005.23

    LiabilitiesAccrued fees 2,792,772.10 15,841.59 874,30'7.22Overdraft at banks - - -Interest payable - - -Payable on forward foreign exchange contracts - - -Payable for investments purchased - - 7,490,720.84Payable for redeemed shares 3,526,958.96 - 100,597.69Net other payable - - -Credit default swaps at cost (Note 2) - - -Unrealised loss on credit default swaps (Note 2) - - -Unrealised loss on futures (Note 2) - - -Unrealised loss on futures already cashed (Note 2) - 2,050.00 -Unrealised loss on interest rate swaps (Note 2) - - -Unrealised loss on total return swaps (Note 2) - - -Unrealised loss on fonuard foreign exchange contracts (Note 2) - - -Unrealised loss on foreign currencies receivables and payables (Note 2) 0.15 - -

    6,319,731.21 1 7,891.59 8,465,625.75

    Total net assets - unswung 1,267,165,653.41 84,726,844.48 457,038,379.48

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 1,267,165,653.41 84,726,844.48 457,038,379.48

    Portfolio at acquisition cost

    The accompanying notes form an integral part of these financial statements.

    14

    1,208,801 ,776.63 81 ,21 5,692.98 40'7,756,072.1 7

    Nordea 1, SICAV - Audited Annual Report 2017

  • 15

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Nordea 1 - European Focus

    Equity Fund

    Nordea 1 - European High Yield

    Bond Fund

    Nordea 1 - European High Yield

    Bond Fund II

    Nordea 1 - European Small and Mid Cap Equity Fund

    Nordea 1 - European Stars Equity

    Fund (Note 1a)

    (in EUR) (in EUR) (in EUR) (in EUR) (in EUR)

    167,726,137.91 - - 630,829,814.47 3,077,026.39 - - - 43,939,913.51 -- 3,787,624,306.24 455,016,852.63 - -

    1,972,518.25 208,500,062.46 14,632,239.99 17,025,050.41 44,150.90 144,060.43 46,643,965.49 7,338,028.71 528,026.24 1,778.42

    - 209,946.67 189,467.91 - -894,125.05 6,566,657.85 238,484.32 1,336,074.26 -892,979.46 - - 401,757.95 -

    - - - 3,025.13 -- - - - -- 17,761,458.00 - - -- 612,387.75 940,634.40 - -- 7,430.00 25,280.85 - -- 63,382.76 203,434.48 - -- - - - -- - - - -

    593.87 13,574.94 3,055.66 - -

    171,630,414.97 4,068,003,172.16 478,587,478.95 694,063,661.97 3,122,955.71

    373,063.91 9,127,221.68 458,502.16 2,605,420.23 6,997.33 - - - - -- - - - -

    894,739.85 - - 402,136.63 -- 2,286,461.92 - 3,410,257.03 -- 6,754,069.31 151,088.73 866,167.62 -- - - - -- - 2,002,230.35 - -- - - - -- - - - -- - - - -- - - - -- - - - -- 821,017.88 167,179.92 - -- - - 1,895.88 0.26

    1,267,803.76 18,988,770.79 2,779,001.16 7,285,877.39 6,997.59

    170,362,611.21 4,049,014,401.37 475,808,477.79 686,777,784.58 3,115,958.12

    - - - - -

    170,362,611.21 4,049,014,401.37 475,808,477.79 686,777,784.58 3,115,958.12

    161,432,954.72 3,732,374,899.31 450,928,189.33 552,637,724.72 2,966,783.93

    Nordea 1 - Nordea 1 - Nordea 1 - Nordea 1 - Nordea 1 -European Focus European High Yield European High Yield European Small and European Stars Equity

    Equity Fund Bond Fund Bond Fund II Mid Cap Equity Fund Fund (Note 1a)(in EUR) (in EUR) (in EUR) (in EUR) (in EUR)

    16'7,726,13'Z91 - - 630,829,814.47 3,07'7,026.89 - - 43,939,913.51 - 8,78'7,624,306.24 455,016,852.68 - -

    1,972,518.25 208,500,062.46 14,682,289.99 1'7,025,050.41 44,150.90144,060.43 46,643,965.49 '7,888,028.71 528,026.24 1,778.42

    209,946.67 189,467.91 - 894,125.05 6,566,65'7.85 288,484.32 1,886,074.26 892,979.46 - - 401 ,75'Z95

    - - 3,025.13 -

    1'7,761,458.00 - - 612,38'7.75 940,634.40 - 7,480.00 25,280.85 - 63,882.76 203,434.48 - -

    593.87 18,574.94 3,055.66 - -

    171 ,630,41 4.97 4,068,003,172.1 6 478,587,478.95 694,063,661.97 3,122,955.71

    378,063.91 9,12'7,221.68 458,502.16 2,605,420.23 6,997.33

    894,739.85 - - 402,136.63 2,286,461.92 - 8,410,25'Z03 6,754,069.31 151,088.78 866,16'Z62

    - 2,002,230.35 - -

    821,01'7.88 16'7,179.92 - - - - 1,895.88 0.26

    1,267,803.76 18,!-988,770.79 2,779,001.16 7,285,877.39 6,997.59

    170,362,611.21 4,049,014,401.37 475,808,477.79 686,777,784.58 3,115,958.12

    170,362,611.21 4,049,014,401.37 475,808,477.79 686,777,784.58 3,115,958.12

    161 ,432,954.72 3,782,874,899.31 450,928,189.38 552,68'7,724.72 2,966,783.93

    The accompanying notes form an integral part of these financial statements.

    Nordea 1, SICAV - Audited Annual Report 201 '7 15

  • 16

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Statement of Net Assetsas of 31/12/2017

    Nordea 1 - European

    Value Fund

    Nordea 1 - Flexible Fixed Income Fund

    Nordea 1 - GBP Diversifi ed

    Return Fund

    (in EUR) (in EUR) (in GBP)

    AssetsShares portfolio at market value (Note 2) 1,385,383,524.95 - 1,186,650,089.56 Funds portfolio at market value (Note 2) - 121,398,849.58 -Bonds portfolio at market value (Note 2) - 3,015,953,171.88 804,415,166.82 Cash at banks 26,917,843.69 72,281,320.62 59,502,217.57 Dividends and interest receivable 900,252.14 19,342,831.54 6,058,167.75 Receivable for investments sold - 6,775,449.73 -Receivable for subscribed shares 909,974.58 25,835,056.70 4,748,687.87 Receivable on forward foreign exchange contracts 353,841.99 245,068.33 -Net other receivable - - 3,957,627.32 Unrealised gain on contracts for difference (Note 2) - - -Credit default swaps at cost (Note 2) - 81,486,061.73 6,136,724.71 Unrealised gain on credit default swaps (Note 2) - 5,413,868.56 -Unrealised gain on futures (Note 2) - 528,989.03 300,948.74 Unrealised gain on futures already cashed (Note 2) - 11,226,512.63 444,163.51 Unrealised gain on interest rate swaps (Note 2) - - -Unrealised gain on forward foreign exchange contracts (Note 2) - 4,501,602.78 10,544,177.81 Unrealised gain on foreign currencies receivables and payables (Note 2) - 174.63 -

    1,414,465,437.35 3,364,988,957.74 2,082,757,971.66

    LiabilitiesAccrued fees 5,579,575.95 5,364,886.27 3,491,729.29 Overdraft at banks - - -Interest payable - - -Payable on forward foreign exchange contracts 354,394.92 245,097.54 -Payable for investments purchased - 6,627,646.08 183,793.07 Payable for redeemed shares 1,294,996.09 24,620,567.48 55,112.80 Net other payable - - -Credit default swaps at cost (Note 2) - - -Unrealised loss on credit default swaps (Note 2) - - 62,455.70 Unrealised loss on futures (Note 2) - - -Unrealised loss on futures already cashed (Note 2) - - -Unrealised loss on interest rate swaps (Note 2) - - -Unrealised loss on total return swaps (Note 2) - - -Unrealised loss on forward foreign exchange contracts (Note 2) 47,199.59 - -Unrealised loss on foreign currencies receivables and payables (Note 2) 4,845.03 - 7,860.52

    7,281,011.58 36,858,197.37 3,800,951.38

    Total net assets - unswung 1,407,184,425.77 3,328,130,760.37 2,078,957,020.28

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 1,407,184,425.77 3,328,130,760.37 2,078,957,020.28

    Portfolio at acquisition cost 1,122,792,329.48 3,248,013,903.37 1,944,854,080.89

    Statement of Net Assetsas of 31/12/2017

    Nordea 1 -European

    Value Fund(in EUR)

    Nordea 1 -Flexible FixedIncome Fund

    (in EUR)

    Nordea 1 -GBP Diversified

    Return Fund(in GBP)

    AssetsShares portfolio at market value (Note 2)Funds portfolio at market value (Note 2)

    1,385,383,524.95121 ,398,849.58

    1,186,650,089.56

    Bonds portfolio at market value (Note 2) - 3,015,953,171.88 804,415,166.82Cash at banks 26,91 '7,843.69 72,281,320.62 59,502,217.57Dividends and interest receivable 900,252.14 19,342,831.54 6,058,1 67.75Receivable for investments sold - 6,775,449.73 -Receivable for subscribed shares 909,974.58 25,835,056.70 4,748,687.87Receivable on fonNard foreign exchange contracts 353,841.99 245,068.33 -Net other receivable - - 3,95'7,62'7.32Unrealised gain on contracts for difference (Note 2) - - -Credit default swaps at cost (Note 2) - 81,486,061.73 6,136,724.71Unrealised gain on credit default swaps (Note 2) - 5,413,868.56 -Unrealised gain on futures (Note 2) - 528,989.03 300,948.74Unrealised gain on futures already cashed (Note 2) - 1 1,226,512.63 444,163.51Unrealised gain on interest rate swaps (Note 2) - - -Unrealised gain on fonNard foreign exchange contracts (Note 2) - 4,501,602.78 10,544,17'7.81Unrealised gain on foreign currencies receivables and payables (Note 2) - 174.63 -

    1 ,41 4,465,437.35 3,364,988,957.74 2,082,757,971 .66

    LiabilitiesAccrued fees 5,579,575.95 5,364,886.27 3,491,729.29Overdraft at banks - - -Interest payable - - -Payable on forward foreign exchange contracts 354,394.92 245,097.54 -Payable for investments purchased - 6,627,646.08 183,793.07Payable for redeemed shares 1,294,996.09 24,620,56'7.48 55,1 12.80Net other payable - - -Credit default swaps at cost (Note 2) - - -Unrealised loss on credit default swaps (Note 2) - - 62,455.70Unrealised loss on futures (Note 2) - - -Unrealised loss on futures already cashed (Note 2) - - -Unrealised loss on interest rate swaps (Note 2) - - -Unrealised loss on total return swaps (Note 2) - - -Unrealised loss on fonuard foreign exchange contracts (Note 2) 4'7,199.59 - -Unrealised loss on foreign currencies receivables and payables (Note 2) 4,845.03 - 7,860.52

    7,281 ,011.58 36,858,1 97.37 3,800,951 .38

    Total net assets - unswung 1,407,1 84,425.77 3,328,1 30,760.37 2,078,957,020.28

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 1,407,1 84,425.77 3,328,1 30,760.37 2,078,957,020.28

    Portfolio at acquisition cost 1,122,792,329.48 3,248,013,903.37 1,944,854,080.89

    The accompanying notes form an integral part of these financial statements.

    16 Nordea 1, SICAV - Audited Annual Report 2017

  • 17

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Nordea 1 - Global

    Bond Fund

    Nordea 1 - Global Climate and Environment Fund

    Nordea 1 - Global

    Dividend Fund

    Nordea 1 - Global High

    Yield Bond Fund

    Nordea 1 - Global Ideas Equity Fund

    (in EUR) (in EUR) (in USD) (in USD) (in USD)

    - 722,358,126.99 54,701,406.67 - 31,053,837.00 - - - - -

    120,630,382.81 - - 617,212,545.58 -2,669,064.33 7,257,670.09 587,737.54 17,954,964.30 991,719.39

    967,068.99 748,495.98 57,361.31 7,978,307.99 14,870.52 - - - - -

    42,692.80 6,650,688.52 20,151.25 250,194.76 58,648.65 4,170.72 6,587,976.17 35,260.12 - 18,928.25

    - - - - -- - - - -- - - - -- - - - -- - - - -

    75,243.07 - - - -- - - - -- - - 1,754,645.31 59,986.18

    0.90 10,032.95 1,058.87 - 33.16

    124,388,623.62 743,612,990.70 55,402,975.76 645,150,657.94 32,198,023.15

    219,531.52 1,994,876.41 246,058.66 335,652.80 147,941.15 - - - - -- - - - -

    4,175.06 6,589,139.07 35,255.82 - 18,962.48 - 10,098,661.07 - - -

    181,272.22 659,913.11 33,797.40 551,859.36 24,694.74 - - - - -- - - - -- - - - -

    17.91 - - - -- - - - -- - - - -- - - - -

    107,384.77 462,149.27 - - -- - - 7.35 -

    512,381.48 19,804,738.93 315,111.88 887,519.51 191,598.37

    123,876,242.14 723,808,251.77 55,087,863.88 644,263,138.43 32,006,424.78

    - - - - -

    123,876,242.14 723,808,251.77 55,087,863.88 644,263,138.43 32,006,424.78

    129,389,789.08 698,505,482.37 46,564,986.21 602,694,454.45 26,054,582.96

    Nordea 1 - Nordea 1 - Nordea 1 - Nordea 1 - Nordea 1 -Global Global Climate and Global Global High Global Ideas

    Bond Fund Environment Fund Dividend Fund Yield Bond Fund Equity Fund(in EUR) (in EUR) (in USD) (in USD) (in USD)

    - 722,358,126.99 54,701 ,406.67 - 31 ,053,83'7.00

    120,630,382.81 - - 61 '7,21 2,545.58 -2,669,064.33 '7,25'7,670.09 58'7,73'7.54 1'7,954,964.30 991,719.39

    96'7,068.99 748,495.98 5'7,361.31 '7,978,30'7.99 14,870.52

    42,692.80 6,650,688.52 20,151.25 250,194.76 58,648.654,170.72 6,58'7,976.1 7 35,260.12 - 18,928.25

    75,243.07 - - - -

    - - - 1,754,645.31 59,986.180.90 10,032.95 1,058.87 - 33.16

    124,388,623.62 743,612,990.70 55,402,975.76 645,150,657.94 32,198,023.1 5

    219,531.52 1,994,876.41 246,058.66 335,652.80 14'7,941.15

    4,1 75.06 6,589,139.07 35,255.82 - 18,962.48- 10,098,661.07 - - -

    181,272.22 659,913.1 1 33,797.40 551,859.36 24,694.74

    17.91 - - - -

    107,384.77 462,149.27 - - - - - 7.35

    512,381.48 19,804,738.93 315,111.88 887,519.51 191,598.37

    123,876,242.14 723,808,251.77 55,087,863.88 644,263,138.43 32,006,424.78

    123,876,242.14 723,808,251 .77 55,087,863.88 644,263,138.43 32,006,424.78

    129,389,789.08 698,505,482.37 46,564,986.21 602,694,454.45 26,054,582.96

    The accompanying notes form an integral part of these financial statements.

    Nordea 1, SICAV - Audited Annual Report 201 '7 17

  • 18

    The accompanying notes form an integral part of these fi nancial statements.

    Nordea 1, SICAV - Audited Annual Report 2017

    Statement of Net Assetsas of 31/12/2017

    Nordea 1 - Global Long Short Equity

    Fund - USD Hedged

    Nordea 1 - Global Opportunity

    Fund

    Nordea 1 - Global Portfolio

    Fund

    (in USD) (in EUR) (in EUR)

    AssetsShares portfolio at market value (Note 2) 67,258,976.95 163,442,209.35 108,328,995.86 Funds portfolio at market value (Note 2) - - -Bonds portfolio at market value (Note 2) - - -Cash at banks 24,513,635.77 3,044,283.49 3,151,685.97 Dividends and interest receivable - 35,894.15 1,787.10 Receivable for investments sold - - 1,967,310.62 Receivable for subscribed shares 47,106.39 - 3,035.32 Receivable on forward foreign exchange contracts 13,553.40 - 79,822.37 Net other receivable - - -Unrealised gain on contracts for difference (Note 2) - - -Credit default swaps at cost (Note 2) - - -Unrealised gain on credit default swaps (Note 2) - - -Unrealised gain on futures (Note 2) - - -Unrealised gain on futures already cashed (Note 2) - - -Unrealised gain on interest rate swaps (Note 2) - - -Unrealised gain on forward foreign exchange contracts (Note 2) 886,409.34 - -Unrealised gain on foreign currencies receivables and payables (Note 2) 58.53 - 695.07

    92,719,740.38 166,522,386.99 113,533,332.31

    LiabilitiesAccrued fees 147,078.19 398,425.08 710,695.80 Overdraft at banks - - -Interest payable 52,427.37 - -Payable on forward foreign exchange contracts 13,526.61 - 79,864.67 Payable for investments purchased 302,155.90 - 2,002,419.98 Payable for redeemed shares 24,875.29 6,182.10 193,654.61 Net other payable 4,653.00 - -Credit default swaps at cost (Note 2) - - -Unrealised loss on credit default swaps (Note 2) - - -Unrealised loss on futures (Note 2) - - -Unrealised loss on futures already cashed (Note 2) - - -Unrealised loss on interest rate swaps (Note 2) - - -Unrealised loss on total return swaps (Note 2) 795,988.13 - -Unrealised loss on forward foreign exchange contracts (Note 2) - - -Unrealised loss on foreign currencies receivables and payables (Note 2) - 251.50 -

    1,340,704.49 404,858.68 2,986,635.06

    Total net assets - unswung 91,379,035.89 166,117,528.31 110,546,697.25

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 91,379,035.89 166,117,528.31 110,546,697.25

    Portfolio at acquisition cost 64,353,472.84 136,054,394.40 93,240,966.16

    Statement of Netas of 31/12/2017

    Assets

    Nordea 1 - Nordea 1 - Nordea 1 -Global Long Short Equity Global Opportunity Global Portfolio

    Fund - USD Hedged Fund Fund(in USD) (in EUR) (in EUR)

    AssetsShares portfolio at market value (Note 2) 6'7,258,976.95 163,442,209.35 108,328,995.86Funds portfolio at market value (Note 2) - - -Bonds portfolio at market value (Note 2) - - -Cash at banks 24,513,635.77 3,044,283.49 3,151,685.97Dividends and interest receivable - 35,894.15 1,787.10Receivable for investments sold - - 1,96'7,310.62Receivable for subscribed shares 4'7,106.39 - 3,035.32Receivable on fonNard foreign exchange contracts 13,553.40 - 79,822.37Net other receivable - - -Unrealised gain on contracts for difference (Note 2) - - -Credit default swaps at cost (Note 2) - - -Unrealised gain on credit default swaps (Note 2) - - -Unrealised gain on futures (Note 2) - - -Unrealised gain on futures already cashed (Note 2) - - -Unrealised gain on interest rate swaps (Note 2) - - -Unrealised gain on fonNard foreign exchange contracts (Note 2) 886,409.34 - -Unrealised gain on foreign currencies receivables and payables (Note 2) 58.53 - 695.07

    92,71 9,740.38 1 66,522,386.99 1 13,533,332.31

    LiabilitiesAccrued fees 14'7,078.19 398,425.08 710,695.80Overdraft at banks - - -Interest payable 52,427.37 - -Payable on forward foreign exchange contracts 13,526.61 - 79,864.67Payable for investments purchased 302,1 55.90 - 2,002,419.98Payable for redeemed shares 24,875.29 6,182.10 193,654.61Net other payable 4,653.00 - -Credit default swaps at cost (Note 2) - - -Unrealised loss on credit default swaps (Note 2) - - -Unrealised loss on futures (Note 2) - - -Unrealised loss on futures already cashed (Note 2) - - -Unrealised loss on interest rate swaps (Note 2) - - -Unrealised loss on total return swaps (Note 2) 795,988.13 - -Unrealised loss on fonlvard foreign exchange contracts (Note 2) - - -Unrealised loss on foreign currencies receivables and payables (Note 2) - 251.50 -

    1,340,704.49 404,858.68 2,986,635.06

    Total net assets - unswung 91 ,379,035.89 166,117,528.31 110,546,697.25

    Add/(deduct) swing adjustment - - -

    Total net assets - swung 91 ,379,035.89 166,117,528.31 110,546,697.25

    Portfolio at acquisition cost 64,353,472.84 136,054,394.40 93,240,966.16

    The accompanying notes form an integral part of these financial statements.