TUNDRA ANNUAL SUSTAINABILITY REPORT 2021

Tundra Fonder celebrated 10 years in 2021. For obvious reasons there were no major festivities, but the Tundra story continues. The past years presented us with a range of challenges where most low-income- and lower-middle-income countries have been hit by numerous crises. All the traditional weaknesses of developing nations have been put on display. Balance of payment crises, devaluations, soaring inflation and political unrest. And yet, Tundra Sustainable Frontier Fund is one of the best performing daily traded frontier markets and emerging markets funds since inception.

Since inception in April 2013 until year end 2021 the fund (net of fees and costs) has generated an average alpha of 4.6% annually vs our benchmark (MSCI FMxGCC Net TR) and 3.9% vs MSCI EM Net TR. How can you possibly make money in markets that undergo such severe pain? The answer lies in stock-selection, and the resilience great companies show over time. It is about understanding which companies are adapted to show foreign currency denominated growth despite the specific challenges of their home markets. A company’s performance is not necessarily defined by the performance of their country.

Our stock-selections are based on a number of key criteria that need to be met; the overriding and most important part is that the portfolio companies have a positive impact on the societies where they undertake their business. This means making an assessment of the long-term demand of the product or the service they produce, together with a thorough due diligence regarding owners and management’s suitability to produce this good or service versus their competitors.

The SDGs state it clearly: Leave no one behind. Tundra’s markets alone are home to populations that corresponds to nearly three times the European Union. In order to support a just transition to a better world these countries need collaborations, knowledge, and maybe most importantly of all – financial support. Tundra continues to do our share of promoting and supporting the very best of them. This is how we make an impact and how you, as an investor, can make a difference.