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RHENMAN GLOBAL OPPORTUNITIES L/SBACK TO BASICS

A global long/short equity fund able to invest in all sectors around the world.

Fundamental portfolio management by a portfolio manager with almost 30 years experience of the finance sector.

The portfolio team supported by the renowned Advisory Board.

Global Long/Short equity fund with a long bias over a business cycle.

Typical net exposure of 50 % to 90 %.

Active selection of regions and sectors, regardless of index.

35-50 single stock positions, preferably in larger companies.

Investment horizon for long positions of 2-4 years, short position horizon of 6 months to 2 years.

September, historically one of the year’s most uncertain months for equity markets, surprised positively. Despite a number of concerns, such as rising tension between North Korea and the US, slow progress in the Brexit negotiations and severe hurricanes in Florida, the month was marked by a higher risk appetite among investors.

The stabilisation of the USD, greater expectations of an Ame-rican tax reform and a significant strengthening of the price of oil, contributed towards the improved investment climate. The single most important aspect, however, was rising confidence in company earnings. Stable macroeconomic statistics and generally positive signals from the business community strengthened investors’ sentiment prior to the third quarter reports, which will be posted in October and November

After three months of falling equity markets, the world index calculated in SEK, rose by 4.3 percent, making September the single best month since February this year. In principle, all sectors

experienced gains but sector rotations were significant. The increase in energy-related shares was particularly striking, rising by more than ten percent during the month, after having been this year’s worst performing sector. Banks and industrial companies also developed strongly, with both sectors up by about five per-cent. Consumer staples were at the bottom as was the best sector year-to-date, information technology, with sector gains of one to two percent.

September thus was a month where so-called ”value stocks” performed better, even considerably better than “growth stocks”, probably as a result of greater confidence in the strength of the economy. A good example was energy stocks which had traded down during the year on concerns about continued falling oil pri-ces. When prices turned up on improved demand prospects, there was a realisation that the market could come into balance within a couple of years, which increased interest in the shares in the sector.

MONTHLY UPDATE

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Rhenman & Partners Asset Management AB is under the supervision of The Swedish Financial Supervisory Authority (Finansinspektionen) as

of February 2009.

FUND PERFORMANCEThe fund rose by 4.4 percent in the fund’s main share-class RC1 (SEK) where mainly banks, energy shares and information technology contributed positively, while consumer staples was the only sector that showed a negative contribution. In all, the fund’s long positions contributed with 4.3 percent while the short positions contributed positively with 0.1 percent.

Halliburton was the fund’s best contributor in September, thanks largely to rising oil prices and hence a new-born appetite for investment in the energy sector. The company reported a very strong Q2 in the summer, but the low interest in the sector meant that the share price did not react positively at the time. The rising oil prices in September acted as a catalyst for Halliburton shares. It is also worth noting investors’ hopes for the much-discussed US tax reform, since Halliburton would be one of the major winners within energy.

Interest in Banco Santander was very high during September. The share was one of the fund’s best. Several investment banks upgraded their forecasts for the Spanish bank and announced strong ‘buy’ recommendations. They believe that there are several opportunities for the company that are not reflected in the share valuation. Among other things, the assessment is that Santander’s sale of its property portfolio, Banco Popular Espanol SA (Popular) to Blackstone Real Estate Partners Europe, due to take place in Q1 2018, will be positive for Santander’s risk profile, thanks to impro-ved capital levels and increased deconsolidation.

Wells Fargo (WFC) was another positive contributor this month. This, despite the scandals in the bank’s retail operations which were once again back on the agenda, with Janet Yellen commenting that the Federal Reserve will continue to investigate and take action against the bank. The Wells Fargo CEO will be questioned by the Senate once again on October 3rd. Neverth-eless, investors still seem to be positively inclined to WFC which has extended its efforts for better margins in a number of areas.In spite of a continued negative news flow, Netflix’s share price reached a higher level in September, and the fund’s short position became the month’s worst contributor. However, sentiment concer-ning the streaming giant seems to be getting increasingly shaky as competition increases. After Disney made it clear that the company will gradually withdraw from the Netflix catalogue (including content from Pixar, Marvel and Star Wars) in favour of their own services, other substantial players have made similar statements. FX Networks, creators of the hit series ”The Americans” and ”Atlanta”, is one of the producers that has decided to start its own streaming services instead of remaining with Netflix. It remains to be seen how long investors will stay positive to the Netflix share. The future of the company seems to be characterized by ever-increasing costs (due to the constant need for new content and for maintaining licensing fees on existing content) and tougher competition for a notoriously fickle user base (which constantly moves; between services that have no lock-in effects).

Asahi Group, the Japanese brewing group, was another nega-tive contributor in September. Investors expect that global beer

Notes: 1 Please find launch date information on page 3.

SEPTEMBER 2017

SHARE CLASS NAV MONTHLY RETURN YTD 2017 SINCE INCEPTION1

RC1 (SEK) 104.80 4.37% 0.42% 4.80%

RC2 (SEK) 104.63 4.41% 0.77% 4.63%

RC9 (SEK) 106.28 4.48% 1.34% 6.28%

IC1 (EUR) 100.48 2.23% 0.48% 0.48%

3 month Euribor (EUR) 99.66 -0.03% -0.24% -0.34%

FUND PERFORMANCE - RC1 (SEK)

SHARE CLASS CHARACTERISTICS – INSTITUTIONAL SHARE CLASSES (ONLY INSTITUTIONAL INVESTORS)MINIMUM INVESTMENT MGT. FEE PERF. FEE ISIN NUMBER BLOOMBERG TICKER LIPPER REUTERS TELEKURS

IC1 (EUR) 100,000 1.50 % 20 % LU1346219667 RGLOPC1 LX 68373122 32744428

IC1 (SEK) 1,000,000 1.50 % 20 % LU1346220160 RGLOPI1 LX 68373081 32744302

SHARE CLASS CHARACTERISTICS – RETAIL SHARE CLASSES (ALSO OPEN TO INSTUTIONAL INVESTORS)RC1 (SEK) 500 2.00 % 20 % LU1346219402 RGLOPR1 LX 68373110 32744421

RC2 (SEK) 1,000,000 1.50 % 20 % LU1346219584 RGORC2S LX 68373113 32762145

RC9 (SEK) 2,500,000 0.70 % 20 % LU1339365303 RGLOPR9 LX 68373115 32744420

Administrative fees are charged in addition to the fees above. Further information is available in the KIID as well as the prospectus (part B, B14-18).

2

107

106

105

104

103

102

101

100

NAV

Au

g-1

6

Se

p-1

6

Okt

-16

Nov

-16

De

c-1

6

Jan

-17

Feb

-17

Ma

r-1

7

Ap

r-1

7

Ma

j-1

7

Jun

-17

Jul-1

7

Au

g-1

7

Se

p-1

7

PYRAMID LEVEL POSITION SIZE NO.

High conviction 3 %-10 % 9

Core holdings 1 %-3 % 19

Fractional positions 0.5 %-1 % 0

Candidate holdings 0 %-0.5 % 0

PORTFOLIO CONSTRUCTION7

RISK (RC1 SEK)

Value at risk4 0.68 %

Standard Deviation5 5.84 %

Sharpe Ratio5 0.82

EXPOSURE6

Long 79 %

Short 12 %

Gross 91 %

Net 68 %

LARGEST LONG POSITIONS

1 BNP Paribas SA

2 JPMorgan Chase & Co

3 Halliburton Co

4 Banco Santander SA

5 Wells Fargo & Co

AUM3

Fund:

EUR 10m

USD 12m

Firm:

EUR 496m

KIID AND PROSPECTUS (WEBPAGE)http:fundinfo.sebfundservices.lu/RhenmanPartnersFund/

INVESTABLE CURRENCIESEuro (EUR) / Swedish Krona(SEK)

RETURN TARGETAnnualised net returns of +7-8 % over time

LEGAL STRUCTUREAIF / FCP (Fonds Commun de Placement) under Part II of the Luxembourg Law on Investment Funds

PORTFOLIO MANAGERRhenman & Partners Asset Management AB

HEAD OF INVESTMENT TEAMStaffan Knafve

AIFM / MANAGEMENT COMPANYSEB Fund Services S.A.

PRIME BROKERSkandinaviska Enskilda Banken AB (publ)

DEPOSITARY AND PAYING AGENTSkandinaviska Enskilda Banken S.A.

AUDITORPricewaterhouseCoopers (PwC)

SUBSCRIPTION /REDEMPTIONMonthly

MINIMUM TOP UPNo minimum

NOTICE PERIOD3 working days

HURDLE RATEEuribor 90D (high-water mark)

FUND CHARACTERISTICS

USD 40 %

EUR 20 %

CHF 12 %

JPY 12 %

Other 8 %

HKD 8 %

CURRENCY EXPOSURE2

32

consumption will continue to fall and are doubtful that Asahi can manage the transition to more premium products in their domes-tic market, where the company has a leading position, but where to some extent it has applied a price-focused strategy. Expectations for the company’s prospects in Europe, however, remain good with an improved sales mix and the introduction of new low-calo-rie / low-alcohol products into the premium segment.

Mitsui OSK Lines (MOL) also contributed negatively in September. Investors are worried that global shipping rates will continue to fall in October after dropping by 13% in the last se-ven weeks (World Container Index data). This is due to temporary closures of Chinese factories, as part of the Chinese government’s initiatives against pollution, which in turn means negative conse-quences on exports. The shipping rates for Shanghai-Rotterdam are at their lowest levels since October 2016. On average, the rates for MOL are 4% lower than they were last year (according to WCI). This may impact MOL’s profitability in the short term, but the longer-term trends would seem to be in the company’s favour. One can, for instance, note that demand for bulk cargo is now growing faster than the tonnage thereby turning a two-year trend in the opposite direction. Demand for bulk cargo will grow by 3.7% while fleet supply will increase by 3.4%, according to Clarkson’s, the shipbroker company. How the trend develops going forward will largely depend on China’s continuing appetite for imported raw materials.

FORECASTContrary to the statistics and many concerns, September was a good month for equity markets. The month’s increases reflect a born-again faith in economic development and hence earnings growth, following a time when the world index, as for all investors not having US dollars as their reporting currency, has been on a downward trend for just over six months. It remains to be seen if this is justified. In the short term, the third-quarter reports will provide an answer. Another important factor is the Trump administration’s ability to get through their tax reform. In that case, it would be the first major success for the otherwise hard-criticised president.

Overall, we have reasons to reiterate our belief that stock markets have more to give: Profit growth is good, the economic outlook is stable, and continued low interest rates mean that equities appear to be relatively attractive. With average P/E ratios of between 13 and 18, depending on region, valuations appear to be reasonable or even low, especially in view of interest rates. However, we would point out that we are still concerned by the high valuation of some companies in IT and consumer discretionary, and what might happen if and when in-vestors lose confidence in some of the so-called ”concept stocks” and the possible negative knock-on effects to stock markets as a whole.

Notes: 2 As a percentage of the market value of the long and short positions (excluding cash positions). 3 The AUM is adjusted for fund inflow at month end. 4 For holdings at month end (95% conf. int. 250 days history). 5 Standard deviation and Sharpe ratio are annualized. 6 The exposure is not adjusted for net fund flow at month end. 7 Number of long equity positions (excluding any ETFs).

HISTORICAL RETURNS AND NAVS RC1 (SEK) NAV

YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC2016 100.10 101.22 103.31 104.362017 104.27 106.54 106.06 105.84 104.40 103.98 102.13 100.41 104.80

RC1 (SEK) PERFORMANCE %. NET OF FEESYEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL2016 0.10 1.12 2.06 1.02 4.362017 -0.09 2.18 -0.45 -0.21 -1.36 -0.40 -1.78 -1.68 4.37 0.42

RC2 (SEK) NAVYEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL2016 100.85 102.66 103.832017 103.79 106.07 105.62 105.46 104.06 103.69 101.89 100.21 104.63

RC2 (SEK) PERFORMANCE %. NET OF FEESYEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL2016 0.85 1.79 1.14 3.832017 -0.04 2.20 -0.42 -0.15 -1.33 -0.36 -1.74 -1.65 4.41 0.77

RC9 (SEK) NAVYEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL2016 100.22 101.45 103.62 104.872017 104.89 107.25 106.85 106.75 105.42 105.11 103.36 101.72 106.28

RC9 (SEK) PERFORMANCE %. NET OF FEESYEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL2016 0.22 1.23 2.14 1.21 4.872017 0.02 2.25 -0.37 -0.09 -1.25 -0.29 -1.66 -1.59 4.48 1.34

IC1 (EUR) NAVYEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL2017 99.08 98.29 100.48

IC1 (EUR) PERFORMANCE %. NET OF FEESYEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL2017 -0.92 -0.80 2.23 0.48

LEGAL DISCLAIMERRhenman Global Opportunities L/S. “The Fund” is not an investment fund as defined in the European Union directives relating to undertakings for collective investment in transferable securities (UCITS). Legal information regarding Fund is contained in the Prospectus and the KIID. available at Rhenman & Partners Asset Management AB (Rhenman & Partners) webpage: http://rhepa.com/the-fund/prospectus/.

This material has been prepared by Rhenman & Partners for professional and non-professional investors. Rhenman & Partners when preparing this information has not taken into account any one customer’s particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations herein are not intended to represent recommendations of particular investments to particular customers. This material is for informational purposes only and should not be construed as an offer or solicitation to sell or buy units the Fund. Investors is strongly recommended to get professional advice as to whether investment in the Fund is appropriate having regard to their particular investment needs, objectives and financial circumstances, before investing.

All securities’ transactions involve risks, which include (among others) the risk of ad-verse or unanticipated market, financial or political developments and, in international transactions, currency risk. There can be no assurance that an investment in the Fund will achieve profits or avoid incurring substantial losses. There is a high degree of risk inherent in investments and they may not be suitable for all eligible investors. It is pos-sible that an investor may lose some or all of its investment. The past is not necessarily a guide to the future performance of an investment. The value of investments may fall as well as rise and investors may not get back the amount invested. Changes in rates of foreign exchange may cause the value of investments to go up or down.

Before making an investment decision, an investor and/or its adviser should (i) consider the suitability of investments in the Fund with respect to its investment objec-tives and personal situation and (ii) consider factors such as its personal net worth, income, age, risk tolerance and liquidity needs. Short-term investors and investors who cannot bear the loss of some or all of their investment or the risks associated with the limited liquidity of an investment should not invest.

Due care and attention has been used in the preparation of this information. However, actual results may vary from their forecasts, and any variation may be ma-terially positive or negative. Forecasts, by their very nature, are subject to uncertainty and contingencies, many of which are outside the control of Rhenman & Partners. Rhenman & Partners cannot guarantee that the information contained herein is without fault or entirely accurate. There may be delays, omissions or inaccuracies in the information. Any dated information is published as of its date only and no obligation or responsibility is undertaken to update or amend any such information.

The information in this material is based on sources that Rhenman & Partners believes to be reliable. Rhenman & Partners can however not guarantee that all infor-mation is correct. Furthermore, information and opinions may change without notice. Rhenman & Partners is under no obligation to make amendments or changes to this publication if errors are found or opinions or information change. Rhenman & Partners accepts no responsibility for the accuracy of its sources.

Rhenman & Partners is the owner of all works of authorship including, but not limited to, all design text, images and trademarks in this material unless otherwise explicitly stated. The use of Rhenman & Partners’ material, works or trademarks is for-bidden without written consent except where otherwise expressly stated. Furthermore, it is prohibited to publish material made or gathered by Rhenman & Partners without written consent.

By accessing and using the http://rhepa.com/ website and any pages thereof, you acknowledge that you have reviewed the following important legal information and understand and agree to the terms and conditions set therein. If you do not agree to the terms and conditions in this disclaimer, do not access or use http://rhepa.com/website in any way.

Products and services described herein are not available to all persons in all geographical locations. Rhenman & Partner will not provide any such products or services to any person if the provision of such services could be in violation of law or regulation in such person’s home country jurisdiction or any other related jurisdiction. The units of the Fund may not be offered or sold to or within the United States or in any other country where such offer or sale would conflict with applicable laws or regulations.

In no event, including (but not limited to) negligence, will Rhenman & Partner be liable to you or anyone else for any consequential, incidental, special or indirect dama-ges (including but not limited to lost profits, trading losses and damages).

The sole legally binding basis for the purchase of shares of the Fund described in this information is the latest valid sales prospectus with its terms of contract. Subscrip-tions cannot be received on the basis of financial reports.

An investment in the Fund does not represent deposits or other liabilities of any member of the Rhenman & Partners Group. Neither Rhenman & Partners nor any member of the Rhenman & Partners Group and its affiliates guarantees in any way the performance of the Fund, repayment of capital from the Fund, any particular return from or any increase in the value of the Fund.

ABOUT RHENMAN & PARTNERS

Rhenman & Partners Asset Management, founded in 2008, is a Stockholm-based investment manager focusing on two niche funds: Rhenman Healthcare Equity L/S, founded in 2009, and Rhenman Global Opportunities L/S, founded in 2016. Assets under management amount to almost 5 billion SEK. Investment Teams of both Funds are in their investment processes supported by renowned Advisory Boards, including professors and experts with many years of market experience and extensive networks around the world.

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CONTACT DETAILSRhenman & PartnersAsset Management ABStrandvägen 5A114 51 Stockholm, SwedenTel + 46 8 459 88 80info@rhepa.com

Swedish investors:Anders GrelssonSwedish Investor RelationsMob + 46 70 374 43 20anders@rhepa.com

International investors (non Swedish):Carl GreveliusHead of Investor RelationsTel + 46 8 459 88 83carl@rhepa.com

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