Investment policy

INVESTMENT POLICY OF NAXS

OVERALL INVESTMENT STRATEGY

The strategy of NAXS AB (publ) (together, with its subsidiaries, “NAXS”) is to seek to produce investment returns commensurate with the risk incurred in making those investments.

INVESTMENT CRITERIA

NAXS may without limitation, except as set forth below, invest in private equity funds, which have one or more of the Nordic countries (Denmark, Finland, Norway and Sweden) as their investment focus.

NAXS may without limitation, except as set forth below, invest alongside private equity funds and other alternative assets funds in any jurisdiction.

Up to forty percent of NAXS’s net asset value may be invested in any securities or assets in any jurisdiction.

INVESTMENT SIZE AND DIVERSIFICATION

NAXS intends to hold a diversified portfolio of investments. However, NAXS may decide based on market conditions to place up to forty percent of NAXS’s net asset value at the time of the investment in a single investment.

LIQUIDITY MANAGEMENT

NAXS’s cash management shall be handled internally through placing cash reserves in secure short-term interest-bearing instruments or in its bank accounts. The objective of NAXS’s liquidity management is primarily to preserve the nominal value of that capital.

OVER-COMMITMENT

NAXS may commit to invest in private equity funds in an amount that is greater than its net asset value at the time of the commitment, provided that such amount does not exceed 130 percent of the net asset value at the time of the commitment.

RETURN OF PROFITS

NAXS’s dividend policy is aimed at, over time, returning to shareholders between fifty and seventy-five percent of NAXS’s profit after tax, excluding unrealized income and costs. This return of profits may be made through dividends, share buy­backs or otherwise. NAXS retains the right to adjust its dividend policy in light of perceived market opportunities and risks.

This document is a translation of the original text in Swedish