Norwatt AS (Nordic Power

Balanced Strategy)

Fund Investment Objectives

The objective of NORDIC POWER BALANCED STRATEGY is to achieve an absolute annual return above 15% with an annual standard deviation below 12 %. The fund will mainly invest in listed derivatives of electricity and electricity-related commodities, also through the use of futures. The fund will mainly trade on the commodity derivative exchange NASDAQ OMX Commodities Europe, which is a regulated market for commodity derivatives trading authorized by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. Nevertheless, the Sub-Fund may trade on other exchanges other than NASDAQ OMX Commodities Europe. The Sub-Fund's assets will be used as collateral for investments in such financial instruments. The collateral will not exceed 1/3 of the Sub-Funds total assets. Any surplus assets will be placed in bank deposits without fixed interests with the Payment Bank The fund's primary focus is to exploit price fluctuations in the European electricity markets, with the greatest focus being on the Nordic market. Based on market information available, analysis and technical strategies, the fund will identify incorrect pricing in the electricity market and take positions to make money on expectations of rising and / or falling prices for energy products with future delivery. The fund will not take out loans to increase its exposure to derivative instruments. Any leverage employed by the fund will only be used as a way to reduce currency risks. When loans are used to reduce currency risks the money is always placed in bank deposits. If the fund has achieved high profit on contracts that is not yet settled, redemptions in the fund may result in the need to realize such profit on the redemption day. In such cases the fund may temporarily take out loans to meet the redemption requests.