We now conclude our fourth operational year and reflect on yet another eventful year. Thank you to all shareholders for entrusting us with a part of your investments. This responsibility weighs heavily, and we take the task very seriously. A year of negative development makes this responsibility particularly heavy, and we are, of course, disappointed with the results for 2022.

The past year proved to be yet another challenging one for innovative companies, especially for their stocks. In 2021, the market generally continued to perform strongly, while companies in software and digital brands, in particular, experienced weaker growth. In 2022, we witnessed significant market declines even in broad markets. In the August newsletter, we discussed a conjunction in the stock market – planets of risk lining up throughout the year: the war in Ukraine, zero-tolerance COVID policies in China, inflation, economic uncertainty, and central bank actions. Together, these formed a toxic cocktail, which proved to be a bitter pill for investors to swallow.

While not shying away from our responsibility, it is impossible to fully counteract such a negative market development as we have seen. Over the past two years, to the best of our ability, we have attempted to concentrate our portfolios on companies with proven business models and strong market positions. At the same time, we are well aware that the sacrifices we make could very well have significant potential in a better market sentiment. In this balance, we have reduced the number of holdings and further reduced the proportion of companies that have not yet shown profitability. We have not invested in any new companies in 2022 but have instead focused our investments on existing holdings.

Fortunately, companies in the sectors we prioritize have generally continued to deliver strong results in terms of growth, profitability, and cash flows. Value creation has increased while valuations have decreased. One way to express what has happened during 2021 and 2022 is that we have 'borrowed' value appreciation from the future. We have seen similar patterns in the market many times before, where the ebb and flow of market sentiment, oscillating between optimism and pessimism, are rarely fully in sync with how companies are actually performing.

How sustainable are the companies' profits? This becomes perhaps the most important question for 2023, especially in light of an upcoming economic downturn. We have previously noted that innovative companies do not exist in a vacuum and that structurally growing companies can also be affected, especially if consumers' spending power is eroded by electricity prices, interest rates, and/or general inflation. Not unaffected, but more resilient. This is our general view of digital consumer services. Digitization continues, and a response from companies encountering problems may be to try to continue streamlining their operations. This should benefit skilled software companies. The healthcare sector continues to exhibit relatively non-cyclical, structural growth. We look forward to 2023 with strong optimism and see significant opportunities in our investment universe.

Finally, we would like to invite our shareholders to our annual investor meeting on Wednesday, January 11th at 6:00 PM at Clarion Hotel Sign in Stockholm. The event will also be streamed live, and as in previous years, we will invite two CEOs from the companies we have invested in. Registration for physical attendance followed by networking can be done here.

TIN New Technology
During the past month, the fund's value decreased by 1.1 percent. During the same period, the broader comparative index for Nordic small-cap stocks, VINCSCN, decreased by 0.2 percent. Looking at the entire year of 2022, the fund has declined by 38.9 percent, compared to -19.0 percent for the index. Since the fund's inception on February 4, 2019, it has increased by 42 percent, while the index has risen by 50 percent. The three largest holdings in the fund at the end of the month were Evolution, Surgical Science, and Embracer. For a list of the ten largest holdings, please see tinfonder.se/holdings-tnt/.

The holdings that contributed the most to the return during the month were Surgical Science, Xbrane Biopharma, and Genovis. Among the holdings that had a negative impact during the month, we find Kindred, Chemometec, and Embracer. The fund's largest segment is Healthcare, accounting for 33 percent of managed capital, followed by Software at 28 percent and Digital Brands at 22 percent.

The holdings that contributed the most to the return during the year were Novo Nordisk, Paradox Interactive, and SOBI. Among the holdings that had a negative impact, we find Surgical Science, Embracer, and Cint. During the year, a bid was made for a company in the portfolio. Mercell was acquired by Thoma Bravo with a 110 percent bid premium.

TIN World Tech
During the past month, the fund's value decreased by 4.7 percent. During the same period, the value development for the comparative index MSCI World was -5.4 percent. Looking at the entire year of 2022, the fund has decreased by 29.9 percent, compared to -6.1 percent for the index. Since the fund's inception on June 12, 2020, it has increased by 4 percent, while the index has risen by 40 percent. The three largest holdings in the fund at the end of the month were Microsoft, Novo Nordisk, and Solaredge. For a list of the ten largest holdings, please see tinfonder.se/holdings-twt/.

The holdings that contributed the most to the return during the month were Unity Software, Xero och Diasorin. Among the holdings that had a negative impact during the month, we find Veeva, Enphase Energy och Embracer. The fund's largest segment is Software, accounting for 43 percent of managed capital, followed by Health at 24 percent and Digital Brands at 13 percent.

The holdings that contributed the most to the return during the year were Abiomed, Enphase Energy och Novo Nordisk. Among the holdings that had a negative impact, we find Nemetschek, Embracer och Unity Software. During the year, bids were made for three companies in the fund. Twitter was acquired with a 54 percent bid premium by Elon Musk. Zendesk was acquired by Permira with a 33 percent bid premium, and Abiomed was acquired by Johnson & Johnson with a 50 percent bid premium.