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M~G A Munich Re company

Annual Report 30 September 2019

MEAG FlexConcept (Fonds Commun de Placement)

MEAG FlexConcept- Basis I MEAG FlexConcept- Wachstum I MEAG FlexConcept - EuroGrowth I MEAG FlexConcept- Euro Bond I MEAG FlexConcept- BEST5USD I MEAG FlexConcept- BEST1oUSD

R.C.S. Luxembourg K 306

MEAG FlexConcept

Fonds Commun de Placement

Annual Report

for the financial year from 1 October 2018until 30 September 2019

The Management Company has not submitted a notification on marketing of units of the following sub-funds to theFederal Financial Supervisory Authority in Germany pursuant to § 310 KAGB, therefore, these sub-funds may not

be publicly marketed in the Federal Republic of Germany:

- MEAG FlexConcept – EuroGrowth

- MEAG FlexConcept – EuroBond

- MEAG FlexConcept – BEST5USD

- MEAG FlexConcept – BEST10USD

Table of Contents

Page

Report of the Board of Managers 5

Market Overview 11

Risk Management 13

Report of the Réviseur d’Entreprises agréé 20

MEAG FlexConcept - Basis

Statement of Investments 23

Purchases and Sales of Securities 25

Changes in the Number of Units Outstanding 26

Statistical Information 26

Statement of Net Assets 27

Statement of Operations and Changes in Net Assets 28

MEAG FlexConcept - Wachstum







MEAG FlexConcept - EuroGrowth







MEAG FlexConcept - EuroBond







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MEAG FlexConcept - BEST5USD *







Combined Statement of Net Assets 54

Combined Statement of Operations and Changes in Net Assets 55

Notes to the Financial Statements 56

Information to the Unitholders (Unaudited) 66

Additional Information for Investors in the Federal Republic of Germany 69

Management and Administration of the Fund 70

No subscription can be accepted on the basis of the financial reports. Subscriptions are only valid if made on the basis of the key investor information documents (KIIDs) and ofthe current sales prospectus accompanied by the latest annual and the most recent semi-annual report, if published thereafter.

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Table of Contents (Continued)

* MEAG FlexConcept - BEST5USD launched on 17 October 2018.

Report of the Board of Managers


Activity Report for the MEAG FlexConcept - Basis, Annual Report 30 September 2019

Investment objectives and investment policyThe investment objective of the sub-fund MEAG FlexConcept - Basis is to achieve a return in line with the European money market ratewhilst ensuring that the invested money retains its value, although the retention of value cannot be legally guaranteed.

To achieve this objective, the sub-fund's assets mainly consist of money market instruments issued by issuers based in Europe, interest-bearing securities, liquid funds and/or sight deposits. The assets may be denominated and/or traded in a foreign currency. Up to 49% ofthe value of the sub-fund's asset may be invested in equities. The investment policy can be pursued using derivatives transactions forhedging purposes. Derivatives are financial instruments, the value of which depends on the performance of an underlying asset such as asecurity, index or interest rate.

Main changes during the financial year and structure of the portfolio on the reporting dateThe 3-month Euribor fell significantly during the business year. In the early months of the year under review, this European interest rateoscillated within a range from around -0.31 to -0.32 percent. Rumours of a coming easing of monetary policy brought some movement intothe market, with the already historically low interest rate surprisingly being further undercut. The weak European economic environmentspurred the European Central Bank (ECB) to announce a renewed bond-purchasing programme starting in November 2019, with monthlybond purchases to the value of 20 billion euros. The new programme initially does not have a time limit. Against this background, theEuropean interest rate fell below -0.44 percent and was at -0.42 percent on the reporting date.

The sub-fund was mainly invested in asset-backed interest-bearing securities and publicly issued bonds during the business year. In thefinancial year, the fund management increased the covered bond holdings from around 40 to a good 59 percent. Medium and long-termbonds from the core European zone were given precedence in the purchases. The sub-fund management acquired, for instance, French,German, Dutch and Finnish bonds. At the same time, the maturing of a French and a Dutch government bond considerably reduced theshare of publicly issued bonds from around 30 to a good 19 percent. Furthermore, the MEAG FlexConcept - Basis sub-fund was alsoinvested in a modest portfolio of supranational bonds and agencies, and to around 13 percent in other bonds and cash at banks.

The interest-rate risk of the bonds was largely hedged using EONIA interest-rate swaps. An interest-rate swap is a derivative by which twocontracting parties agree to swap different kinds of interest payments at certain times in the future. In this case, the sub-fund managementswapped fixed-rate coupons, the relative value of which can fluctuate in dependence on the market rate, for an interest rate that isdetermined daily on the basis of the EONIA reference rate, and is thus not subject to any fluctuation as against the normal market rate.

During the year from 1 October 2018 to 30 September 2019, the MEAG FlexConcept - Basis achieved a performance of -0.78 percent(calculated using the BVI method). The performance was impaired by the historically low interest rate environment in the euro area, andfees incurred.

In view of the weak economic data and the downward-trending inflation rates in Europe, the scope for an end to the ECB's extremely loosemonetary policy should remain small. The global economy, too, should continue to weaken in view of the trade war and the possible hardBrexit at the end of October 2019, leaving limited elbow room for a significant countertrend on the interest market. This means, there isnonetheless still potential for minor increases of the 3-month Euribor.


Activity Report for the MEAG FlexConcept - Wachstum, Annual Report 30 September 2019

Investment objectives and investment policyThe sub-fund's objective is to achieve continuous capital appreciation and earnings over the long term by investing in German bond andequities markets.

The investment by the sub-fund is based on a dynamic concept. The aim of the concept is a 50% participation of the sub-fund's assets inthe performance of the German bond markets, and a participation of up to 50% of the sub-fund's assets in the performance of the Germanequity markets. For the part of the sub-fund's assets relating to the equity market participation, the aim is to achieve volatility of between10% and 14% ("target volatility"). The realized volatility equals an annual volatility rate of fluctuation of the daily yields within anobservation year.

The investment policy - and consequently the participation of the sub-fund's assets in the performance of the German bond and equitymarkets and the achieving of the target volatility for the equity component - is implemented in particular through the use of derivatives. Thisenables the investment level, and consequently the price risk of the sub-fund's assets, to be managed.

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The investment level may be increased by purchasing equities, interest-bearing securities, bond futures, equity futures, financial futurescontracts on an equity index and/or purchase options on financial futures contracts, and it may be reduced by their sale. However, the useof other types of derivatives is not ruled out.

Main changes during the financial year and structure of the portfolio on the reporting dateThe yields of ten-year German government bonds declined significantly during the business year. With concerns increasing about theglobal economic development, government bonds in the core European zone were already in greater demand in the first quarter of thefinancial year. At the same time, market participants were unsettled by rumours of excessively restrictive US monetary policy during theearly phase of the financial year. The friendly price environment for European government bonds continued on in the new calendar year2019. This meant more demand for ten-year German govies, returning them to the negatives after a long abstinence. After a brief pausefor breath, renewed disappointing economic data and the escalation of the trade conflict led to further falling yields across the board, withItalian sovereigns posing an exception and rising temporarily. The heightening trade dispute and weak economic data are perpetuating themarket trend, with the result that the yields of German government bonds with ten years remaining to maturity fell to an all-time low of -0.7percent in summer. The expansive measures of the US central bank (Fed) - it lowered the key rates by 25 basis points to 2.0 percent as ofthe reporting date - and the ECB announcement of its new bond purchase programme only gave rise to a minor counter-reaction towardthe end of the financial year. The yields of German ten-year Bunds were down 104 basis points on the reporting date, at -0.57 percent. TheGerman stock index DAX had gone up by 1.5 percent.

The stock-market volatilities of the underlying index (here the VDAX) resulted in a moderate corridor between 12.4 and more than 25.3points. At the start of the financial year, equity market volatilities were around 15 points. With the increasing concerns about the globaleconomy in the first quarter of the business year, share market volatilities rose, reaching their highest level during the financial year at theend of December 2018. Thanks to the recovery of the German stock market at the start of the new calendar year 2019, there was asignificant drop in the volatility, with the VDAX falling gradually to its lowest point in the business year by mid-April 2019. After a temporarysideways trend, volatility then jumped in mid-August 2019, triggered by the trade war and weak economic data. At the end of the financialyear, the VDAX index was at a good 16 points.

Volatility is a measure of the fluctuation range of the underlying index. A distinction is made here between realised volatility (actualfluctuations of the underlying index based on the past, and implicit volatility (expected future fluctuations of the underlying index based onthe prices of exchange-traded options). Historically speaking, the realised and implied volatilities often rise/fall simultaneously. Minimaldaily stock-market oscillations result in low realised volatility.

In view of the moderate volatility, the sub-fund's assets were initially invested to quite a large degree in the German stock market - a good45 percent. With the groundswell of risk aversion and increased equity-market volatilities in the last quarter of 2018, it reduced its exposurein equities in December 2018 to around 34 percent by selling derivatives (futures contracts for the DAX). The equity ratio then rose againslightly toward the end of the financial year, up to 45 percent on the reporting date. In the first months of 2019 the sub-fund's equity ratiowas around this level, where it remained until the end of the financial year.

The sub-fund's ratio of participation in the performance of the German bond market - shown in its purchases of bond market contracts(Euro Bund futures) - was around 50 percent of its assets, as prescribed by the investment concept. On the reporting date, the sub-fund'sassets were invested in French, German, Spanish, Dutch and Irish government bonds. Minor purchases of short-running Belgian andFrench govies were made during the business year, and asset-backed interest-bearing securities were added in. The resulting interest-rate risk of these bonds was predominantly hedged with EONIA interest-rate swaps. An interest-rate swap is a derivative by which twocontracting parties agree to swap different kinds of interest payments at certain times in the future.

The MEAG FlexConcept - Wachstum generated a performance of 3.43 percent in the last business year (calculated using the BVImethod). Positive contributions to this performance came from the slight rise in the German stock market. This was also supported by thefalling interest rate environment for German Bunds (the Bund future). Burdening factors proved to be the often highly volatile markets andthe government crisis in Italy.

The European economy cooled down tangibly in recent times, and the escalating trade dispute and disappointing sentiment indicatorscould perpetuate this trend. The growth risks and investment insecurity appear to be on the increase against this background. Risinggeopolitical risks could also cause unwelcome surprises and lead to significant short-term price drops if they were to come to the boil. Incontrast, there is price potential in the profit increases of individual companies. The latest monetary measures of the central banks couldalso increase the demand for equities, in absence of other good investment alternatives. In the short term, a volatile sideways movementcan be expected, which will offer opportunities to buy on downward fluctuations. If any of the geopolitical issues get solved, there ismedium-term potential for a moderate rise in the German equity market. For bonds, the expansive measures of the central banks could befurther increased in the coming months, causing this monetary policy to further heighten the negative trend in returns. Geopolitical riskssuch as a potential hard Brexit would cause temporary oscillations and increase the demand for government bonds from the coreEuropean zone. Against the background of the historically low yields of ten-year German Bunds, however, the yields of these and othersovereigns from the core zone should rise moderately.

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Report of the Board of Managers (Continued)


Activity Report for the MEAG FlexConcept - EuroGrowth, Annual Report 30 September 2019

Investment objectives and investment policyThe objective of MEAG FlexConcept - EuroGrowth is to achieve continuous capital appreciation and earnings over the long term byinvesting in European bond and equities markets. No guarantee can be given that the investment objective will be achieved.

Investment by the sub-fund is based on a dynamic, risk-adjusted investment concept. The aim of the concept is a participation of up to75% of the sub-fund's assets in the performance of the European bond markets, and a participation of up to 60% of the sub-fund's assetsin the performance of the European equity markets.

At least 50% of the net assets of the sub-fund shall be invested in equities listed on a stock exchange or admitted to, or traded on,regulated markets in financial instruments and which are not units or shares in a UCI.

For the sub-fund assets, the aim is to achieve volatility of between 7% and 10% ("target volatility"). The realized volatility equals an annualvolatility rate of the fluctuation of the daily yields within the observation period.

The implementation of the investment policy – and consequently the participation of the sub-fund assets in the performance of theEuropean bond and equity markets and the achieving of the target volatility for the equity component – is undertaken through the trading ofequities and interest-bearing securities and money market instruments. Furthermore, derivatives may be used for hedging purposes, suchas the reduction of the sub-fund's exchange rate risk.

Main changes during the financial year and structure of the portfolio on the reporting dateAt the start of the financial year, global economy concerns and the fear of an excessively restrictive US monetary policy caused a major dipon the European bourses. The already smouldering trade dispute between the USA and China and the chaotic Brexit negotiations addedfuel to this. Starting in January 2019, the situation changed and stock prices rose from the low in the financial year, despite temporarydisturbances such as the continuing Brexit drama and disappointing economic data. A good reporting season and encouraging economicdata generated some backwind for the European share markets in the new calendar year 2019, but the trade conflict between the world'stwo largest economies dampened the mood on the market repeatedly, with them bilaterally imposing punitive tariffs. Then speculationabout a renewed intensification of the expansive monetary policy in Europe pushed its way into the focus, leading to significant price hikeson the European stock markets. In summer the trade dispute was again the major topic of discussion, causing market participants to fleeinto safe investments, and consequently European equities to fall on a large scale. At the same time the US issuing bank lowered the keyrate in two cuts of 25 basis points each, from 2.5 down to 2.0 percent, and the ECB announced the start of a new bond purchasingprogramme. The EURO STOXX 50 rose again on this news, listing at a plus of over 5.0 percent from reporting date to reporting date. Theyields of German ten-year Bunds were down 104 basis points during the financial year reporting year, at -0.57 percent.

During the last year, the portfolio management increased and decreased the allocation towards equities as market circumstanceschanged. The sub-fund's equity allocation stood at 40 percent at the beginning of the year and ranged between 15 and 47 percent duringthe year. In the last quarter of calendar year 2018, the outlook for equities deteriorated and the portfolio management reduced the equityallocation accordingly. After a market stabilisation in the first quarter of calendar year 2019, the equity allocation was increased again.

The sub-fund invests mostly in high quality companies with good growth prospects. Major investments in the healthcare sector are theGerman diversified healthcare group Fresenius SE and the Swiss Pharma company Roche.

During the fiscal year, the sub-fund invested money in several new companies and also increased existing positions. New companiesincluded Neste, a renewable oil company, and the consumer brands companies Puma and Remy Cointreau. Further investments weremade in Sixt, the German mobility company, which offers car rentals, car sharing and ride hailing products to help customers benefit from achanging mobility landscape. The portfolio management also bought shares in Aixtron, a manufacturer of specialised semiconductorequipment, Partners Group, a leading private equity firm based in Switzerland and Hello Fresh, which offers home delivery of fresh ready-to-cook food on a subscription basis, a concept that is catching on strongly around the globe. The portfolio management also bolsteredexisting positions in Roche and aircraft manufacturer Airbus.

During the year, the portfolio management sold positions in Cewe Stiftung, a company known throughout Europa for its “Cewe Fotobuch”product offering. Shares in technology company Cancom were also sold after the stock performed well and got rather expensive. Theposition was replaced by another - somewhat smaller - German ITcompany called Datagroup, which offers more exposure to the Cloud ITmarket and still has a lower valuation. A position in the big German Software company SAP was also reduced at higher prices andpositions in Swiss banking stocks Credit Suisse and UBS were sold completely because of a further deteriorating outlook for financials.

The MEAG FlexConcept - EuroGrowth generated a performance of 0.64 percent in the last business year (calculated using the BVImethod).

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The European economy cooled down tangibly in recent times, and the escalating trade dispute and disappointing sentiment indicatorscould perpetuate this trend. The growth risks and investment insecurity appear to be on the increase against this background. Risinggeopolitical risks could also cause unwelcome surprises and lead to significant short-term price drops if they were to come to the boil. Incontrast, there is price potential in the profit increases of individual companies. The latest monetary measures of the central banks couldalso increase the demand for equities, in absence of other good investment alternatives. In the short term, a volatile sideways movementcan be expected, which will offer opportunities to buy on downward fluctuations. If any of the geopolitical issues get solved, there ismedium-term potential for a moderate rise in the German equity market. For bonds, the expansive measures of the central banks could befurther increased in the coming months, causing this monetary policy to further heighten the negative trend in returns. Geopolitical riskssuch as a potential hard Brexit would cause temporary oscillations and increase the demand for government bonds from the coreEuropean zone. Against the background of the historically low yields of ten-year German Bunds, however, the yields of these and othersovereigns from the core zone should rise moderately.


Activity Report for the MEAG FlexConcept - EuroBond, Annual Report 30 September 2019

Investment objectives and investment policyThe investment objective of the sub-fund is the generation of a yield through investments in the European bond markets.

The sub-fund assets mainly consist of interest-bearing securities issued by issuers based in Europe. The assets are denominated and/orcan be traded in euros.

Up to 49% of the value of the sub-fund assets may consist of money market instruments of issuers based in Europe, liquid funds, and/orsight deposits.

The purchase of equities is only permitted through the exercising of subscription rights, option rights and conversion rights arising frominterest-bearing securities. Equities purchased in this way must however be sold within an appropriate year on a discretionary basis.

In addition, up to 10% of the value of the sub-fund's assets may be invested in units of other UCITS or other UCIs. These other UCITS orother UCIs must, according to their contractual conditions or Articles of Association, be predominantly invested in securities.

Derivatives (in the form of stock exchange-listed derivatives) may be used in connection with the sub-fund's assets for investment andhedging purposes.

Main changes during the financial year and structure of the portfolio on the reporting dateThe yields of ten-year German government bonds declined significantly during the financial year. With concerns increasing about theglobal economic development, government bonds in the core European zone were already in greater demand in the first quarter of thefinancial year. At the same time, market participants were unsettled by rumours of excessively restrictive US monetary policy during theearly phase of the financial year. The friendly price environment for European government bonds continued on in the new calendar year2019. This meant more demand for ten-year German govies, returning them to the negatives after a long abstinence. After a brief pausefor breath, renewed disappointing economic data and the escalation of the trade conflict led to further falling yields across the board, withItalian sovereigns posing an exception and rising temporarily. The heightening trade dispute and weak economic data are perpetuating themarket trend, with the result that the yields of German government bonds with ten years remaining to maturity fell to an all-time low of -0.7percent in summer. The expansive measures of the US central bank (Fed) - it lowered the key rates by 25 basis points to 2.0 percent as ofthe reporting date - and the ECB announcement of its new bond purchase programme only gave rise to a minor counter-reaction towardthe end of the financial year. The yields of German ten-year Bunds were down 104 basis points on the reporting date, at -0.57 percent.

The sub-fund was mainly invested in publicly issued bonds during the financial year, the share of which fell between reporting dates from agood 76 down to 66 percent. In doing so, the involvement in Dutch sovereigns with medium maturities was sold, and an expiry date alsoled to the removal of a larger portfolio of Italian government bonds. A re-election could be avoided in Italy with the newly sworn-ingovernment in September 2019, but given its high debt, faltering reforms and the very weak European economic environment, the countryis heading toward a difficult future. The exposure to Luxembourg state bonds was also reduced. Within the Belgian government bondsegment, the sub-fund management swapped medium-duration bonds with long-term bonds. Additional purchases increased theweighting of Irish government bonds during the year under review. The fund management also increased the share of supranational bondsheld. Against the background of the significant reduction of bonds from public issuers, the level of investment in securities fell on thereporting date, with the cash item increasing from around 1 to around 8 percent. All securities in the portfolio were denominated in euro.

The MEAG FlexConcept - EuroBond generated a performance of 2.61 percent in the financial year from 1 October 2018 to 30 September2019 (calculated using the BVI method). Positive contributions to the performance came primarily from the active management of theinterest rate sensitivity. In view of the increased risk aversion, the friendly development of bonds from the core European zone had asupporting effect, with the sub-fund being predominantly invested in these securities during the financial year. Burdening factors proved tobe the often highly volatile markets and the government crisis in Italy.

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The global economy's cool down phase should continue in view of the persisting and even escalating trade dispute. The growth risks andinvestment insecurity worldwide should increase against this background. After the recent price increases on the German bond market,the air is getting thinner for further increases, because government bonds with falling yields lose attractiveness compared to otherinvestment types. On the other hand, the precautionary, expansive measures of the Fed and ECB could be further increased in the monthsto come, with the monetary policy further intensifying the negative yield trend. Geopolitical risks such as a potential hard Brexit wouldcause temporary oscillations and increase the demand for government bonds from the core European zone. Against the background ofthe historically low yields of ten-year German Bunds, however, the yields of these and other sovereigns from the core zone should risemoderately.


Activity Report for the MEAG FlexConcept - BEST5USD *, Annual Report 30 September 2019

Investment objectives and investment policy

The sub-fund aims to achieve sustainable capital growth in the mid to long term by maintaining exposure to equity and bond markets usinga rules-based investment strategy with the objective to participate in the performance of the Systematix BEST 5% RC USD Index (the"Index").

In order to achieve its investment objective, the sub-fund will

1. invest up to 100% of its Net Asset Value in a portfolio of permissible assets as laid down under item A below, where the investmentmanager has discretion over the composition of the portfolio, and in combination.

2. be managed in reference to an index benchmark by using a derivative-based strategy, set out under item B below, with the objectiveto participate in the performance of the Index, where the investment manager has discretion over the exposure to the Index.

As a consequence of the two layers, which are independent of each other, the sub-fund will be actively managed, generates cumulativereturns and there will be a difference in performance between the sub-fund and the Index. The deviation of the sub-fund performance fromthe Index performance may be material over a holding year of five years. The annualized tracking error of the sub-fund relative to the Indexis expected not to exceed 8.70% per annum. The tracking error is the standard deviation of the difference between the return of the sub-fund and the Index benchmark.

A. The sub-fund invests up to 100% of its Net Asset Value in U.S. dollar-denominated securities, more specifically, U.S. governmentbonds, U.S. treasury bills, U.S. notes and money market instruments that generally meet the minimum credit rating requirement ofinvestment grade by the credit rating agencies selected by the Management Company Board. The sub-fund’s assets may also be heldin ancillary liquid assets and secured deposits.

B. Furthermore, the sub-fund implements a derivative-based strategy in order to participate in the performance of the Index by enteringinto unfunded OTC-total return swap transactions, whose underlying is the Index.

Main changes during the financial year, and structure of the portfolio on the reporting date

At the start of the financial year, global economic concerns and fears of an excessively restrictive US monetary policy triggered a big dip onthe world's stock exchanges. The already smouldering trade dispute between the USA and China and the chaotic Brexit negotiationsadded fuel to this. Starting in January 2019, the situation changed and stock prices rose from the low in the financial year, despitetemporary disturbances such as the continuing Brexit drama and disappointing economic data. A good reporting season and encouragingeconomic data generated some backwind for the international share markets in the new calendar year 2019, but the trade conflict betweenthe world's two largest economies dampened the mood on the market repeatedly, with them bilaterally imposing punitive tariffs. The globalindex MSCI World in local currency was able to add a moderate 0.9 percent to its worth against this background. The yield of ten-year USTreasuries collapsed by 151 basis points to 1.67 percent due to the uncertainty and risk aversion.

The MEAG FlexConcept - BEST5USD * was established on 17 October 2018. In the remainder of that financial year, the fundmanagement successively purchased a portfolio of US government securities with short maturities. On the reporting date the sub-fundwas invested to over 93 percent in securities. All of these securities are denominated in US dollar.

The sub-fund participated in the performance of the BEST 5% RC USD index. This Index in turn participates in the performance ofEuropean, North American and Asian bond and equity indices. The participation in the index's performance comes through an OTC totalreturn swap. The counterparty of this derivative financial instrument is New Reinsurance Company Ltd, based in Zurich in Switzerland.The costs of this swap depend on the variable rate of the US interest rate USD-1M-OIS. In the incomplete financial year, the BEST 5% RCUSD index only went up, starting at 325 points and reaching almost 345 points in early May 2019. After a temporary countermovement,triggered partly by weak economic data, the index climbed to the highest level in the financial year of almost 347 points at the end of July2019. At the end the BEST 5% USD stood at 340 points.


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The annualized tracking error of the sub-fund relative to the Index is 3.059% per annum. The tracking error is the standard deviation of thedifference between the return of the sub-fund and the Index benchmark.

The MEAG FlexConcept - BEST5USD * achieved a performance of 5.32 percent in the past short financial year (17.10.2018 - 30.09.2019)(calculated using the BVI method). The good price curve of US Treasuries provided positive impulses, as did the positive performancecontribution of the underlying index (BEST 5% RC USD index). In contrast, the costs at fund level had a detrimental effect on performance.

The European economy cooled down tangibly in recent times, and the escalating trade dispute and disappointing sentiment indicatorscould perpetuate this trend. The growth risks and investment insecurity appear to be on the increase against this background. Risinggeopolitical risks could also cause unwelcome surprises and lead to significant short-term price drops if they were to come to the boil. Incontrast, there is price potential in the profit increases of individual companies. The latest monetary measures of the central banks couldalso increase the demand for equities, in absence of other good investment alternatives. In the short term, a volatile sideways movementcan be expected. For bonds, the expansive measures of the central banks could be further increased in the coming months, causing thismonetary policy to further heighten the negative trend in returns. Geopolitical risks such as a potential hard Brexit would cause temporaryoscillations and increase the demand for US government bonds.

Luxembourg, 18 November 2019Board of Managers

Harald Lechner Sandra Müller Rainer Schu


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Market Overview

Economic background

Global growth continued to slow during the financial year from 1 October 2018 to 30 September 2019. The Eurozone economy cooleddown markedly, largely attributable to the weak trend in Germany and Italy. While Italy has left the recession behind it and exhibitedconstant, marginally positive growth, the industrial sector in Germany fell into recession, beleaguered by the trade dispute between theUSA and China, and by extraordinary factors connected to the automotive sector. Spain remained one of the growth drivers in theEurozone, although its contribution lost some impetus too during the year under review. Economic growth in the USA slowed a little fromthe very solid level in 2018. In particular the strong labour market continued to be a robust pillar of support. Economic growth slowed inChina during the financial year due to the escalating trade dispute with the USA.

The inflation rate in the Eurozone fell significantly during the year under review, from 2.3 percent in October 2018 to 0.8 percent inSeptember 2019. The drop was almost entirely due to the diminishing contribution from the energy sector. After the oil price fellsignificantly in Q4 2018, it then quoted close to the prices of the previous year and well below them from the middle of the 2019 calendaryear. This meant that the inflation rate fell below core inflation - i.e. inflation without considering the prices of energy and food - whichmoved sideways in a corridor between 0.8 and 1.3 percent. The shrinking energy effect also hit the US inflation rate, which, however, onlyfell from 2.5 to 1.7 percent. US core inflation also ran more or less sideways until mid-2019, as a number of extraordinary effects burdenedit at the start of 2019. Toward the end of the financial year it began rising again, and it averaged 2.2 percent, which is far higher than in theEuro region.

In the year under review, political events were once again the focus. The trade dispute between the USA and China escalated, and despitemultiple attempts to come to some kind of arrangement, the US repeatedly slapped new or raised existing punitive tariffs on Chineseproducts. China took retaliatory measures to the extent possible for it. At the end of the financial year there appeared to be a chance ofreconciliation between the two nations, but no agreement was reached. Great Britain's withdrawal from the European Union (BREXIT) didnot happen on 29 March 2019 as planned, because the British Parliament rejected an exit agreement reached with the EU. Thenegotiation phase was extended several times, most recently until 31 October 2019. In July 2019, Boris Johnson replaced Theresa Mayas British Prime Minister. Because he announced that Britain would leave the EU on 31 October 2019 even without a deal with the EU, theBritish Parliament passed a law providing for yet another year of grace if no deal could be reached. Italy was under close observationduring the entire financial year. Expansive fiscal plans from the government made up of the Lega and the Five Star Movement burdenedthe capital markets, as the market feared both a credit rating downgrade in the speculative segment and a renewed excessive deficitprocedure of the EU. Furthermore, the risk of renewed elections rose in unison with the rising popularity of the Lega in opinion polls. InSeptember 2019 the coalition collapsed, but a new election could be avoided because the Five Star Movement entered into a coalitionwith the Social Democrats. The new government pursued a far less confrontational course toward the EU. Political uncertainty also raisedits head in France for a while, with the planned tax increases scheduled for the start of November 2018 leading to massive public protests.The situation calmed down when the planned measures were halted and stimulus measures were announced. Early elections were held inSpain in April 2019 after the minority government's budget proposal was rejected by Parliament. As no government could be formed duringthe year under review, there will again be elections in November 2019. Meanwhile, geopolitical risks heightened, especially in the MiddleEast.

Bond and money markets

The central banks of the industrialised nations did a monetary u-turn during the year under review. Whereas until the end of 2018 theyreduced the monetary stimulus, they significantly loosened their policy in 2019. The main causes for this were the increasing risk of aglobal recession due to the escalating trade dispute, and falling price pressure. After the Fed hiked the key rates in December 2018 by afurther 25 basis points, to a upper bound of 2.50 percent, it then reduced it again in July and September 2019 by 25 basis points each to2.00%. The passive reduction of the balance sheet was also ended in July 2019. The ECB stopped its monthly asset purchase programmeat the end of 2018. But in March 2019 it announced new longer-term refinancing operations (TLTRO III). In September 2019 it presentedan extensive easing package. It reduced the deposit facility rate by 10 to -50 basis points, but excluded part of the bank reserves from this.The asset purchase programme will be reactivated as from November 2019 with EUR 20bn a month, and net purchases are to beconducted until shortly before the ECB key interest rate will be raised. Prerequisite to an interest rate hike is that the inflation outlook has torobustly converge to the inflation goal and the convergence has to be consistently reflected in underlying inflation dynamics. In addition tothis, the terms for TLTRO III were improved. The Chinese central bank also eased its monetary policy to counter the growth slowdown, forinstance with reductions of the reserve requirement ratio.

The yield of 10-year German government bonds (Bunds) headed south virtually throughout the entire year under review. In Q4 2018, thetangible drop in the oil price drove the yields of so-called "safe haven" bonds downward. These are interest-bearing securities issued bycountries that rating agencies and market players deem to be particularly reliable, such as Bunds and US Treasuries. The yield descentcontinued in 2019, driven mainly by rising fears about growth due to repeated escalations in the trade dispute and the easing of monetarypolicy. Against this background, Bund yields fell back into negative territory for the first time since 2016, to a new all-time low of -0.7percent. In all, Bund yields fell from 0.5 to -0.6 percent during the year under review. US Treasury yields also reduced considerably, from3.1 down to 1.7 percent. Combined with weaker growth, monetary easing in China also caused a drop in local yields. As expectations ofthe ECB resuming its asset purchases grew, the yields differential between bonds from countries in the European periphery and the Bundshrank. For Italian govies, the gap closed particularly strongly as a result of the new Government's less confrontational political course.

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Currencies

The Euro fell against the US dollar in the year under review, from 1.16 USD per Euro to 1.09. A key driver of the Euro devaluation was theweak economic trend in the Eurozone. Furthermore, increased political uncertainty in Europe with regard to Italy and BREXIT was also astress factor. In general the US dollar benefited from the solid economic performance in the USA during the year.

Equity markets

Equity markets ended the financial year up, despite significant temporary setbacks. Already in Q4, and especially in December 2018, theincreased risk aversion caused by growing fears for the economy and the drop in the price of oil, lead to big dips on the world's equitiesmarkets. The turnaround in the central banks' monetary policy and the détente in the trade dispute gave markets a big leg-up until April2019. The broad sideways movement that followed was then repeatedly interrupted by escalations in the trade dispute and weakeconomic data. Thanks to monetary easing, the European price index EURO STOXX 50 rose 5% in the year under review. Theperformance index DAX only climbed about 1.5 percent, as the economic performance in Germany weakened due to its economy'sdependence on exports. The US S&P500 index reached a new all-time high during the financial year, but was only up a total of around 2percent after the dip at the end of 2018 hit it particularly hard.

Outlook

The downturn of the global economy should continue slowly, although the turnaround in monetary policy combined with robustconsumption should contribute to a stabilisation. The uncertainty relating to the trade war will keep the pressure on, however. The USeconomy should continue with its robust growth, if at a little slower rate. In the Eurozone, growth should stabilise on the back of solidconsumption. Against this background, core inflation should gradually continue to rise, especially in the USA, but also in the Eurozone.Central banks should stick to easy monetary policy. The ECB's bond purchases will continue for a longer period, and further measurescannot be ruled out if growth and inflation do not increase. In the USA, in contrast, growing price pressure should limit notable furtherstimulus in the form of additional large-scale interest rate cuts. But despite this, yields of Safe Haven bonds should rise slightly if theeconomy stabilises. The potential for a further tightening of the yield gap between peripheral EU states and Bunds should be limited due tothe moderate economic environment. The Euro should appreciate a little when the growth dynamic in Europe improves. As the positiveimpulse coming from the central banks in the shape of monetary policy easing has already taken place to a large extent, the potential forequities would appear to be limited unless corporate earnings improve significantly. In all, the risk of recession is elevated given the poorergrowth picture. Political uncertainty contributes to this risk, and it will continue to play its role. Key topics include the BREXIT negotiationsand protectionism. There seems to be no comprehensive solution in sight for the US/China trade war, and the US are threatening toimpose international import tariffs on cars. This would be a blow mainly to Europe and in particular Germany. Furthermore, the Trumpimpeachment preparations, the US elections in November 2020 and the renewed elections in Spain in November 2019 are increasing theuncertainty. Smouldering geopolitical tensions like those in the Middle East can also worsen at any time, and that would put more pressureon the real economy and capital markets, and broaden the fluctuation range.

MEAG FlexConcept

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Market Overview (Continued)

Risk Management

GeneralThe Management Company is obliged to employ a risk management procedure which enables it to monitor and assess at all times thelevel of risk associated with the respective sub-fund's investment holdings and their respective share of the sub-fund's total risk profile.This procedure, insofar as it is applicable, enables a precise, independent evaluation of the value of OTC derivatives to be made.

For the types of derivatives in the sub-fund's portfolio, the Management Company must, in accordance with this risk managementprocedure, regularly inform the CSSF of the types of risk associated with the respective underlying assets, the investment limits, and themethods used to measure the risks associated with the derivatives transactions.

Under Luxembourg law, UCITS are required to measure such risk exposure using either a "Commitment Approach" or a "Value-at-Risk("VaR") Approach".

The Value-at-Risk ("VaR") approach is an approach for measuring risk or Global Exposure based on Value-at-Risk or VaR, which is ameasure of the maximum potential loss that can arise at a given confidence level over a specific time year under normal market conditions.

"Global Exposure" refers to a measure of the risk exposure for a UCITS sub-fund that factors in the market risk exposure of underlyinginvestments, including the market risk exposure and implied leverage associated with financial derivative instruments if and where held inthe portfolio.

VaR may be expressed in absolute terms as a currency amount specific to a portfolio, or as a percentage when the currency amount isdivided by the total net assets. VaR may also be expressed in relative terms, where the VaR of the sub-fund's (expressed in percentageterms) is divided by the VaR of its relevant benchmark (also expressed in percentage terms), generating a ratio known as relative VaR.Under Luxembourg law, absolute VaR limits are currently 20% of total net assets and relative VaR limits are currently twice or 200% of thebenchmark VaR.

Method used to calculate the market risk exposureUnless otherwise described for the respective sub-fund in the corresponding Annex, the Management Company uses the relative "Value-at-Risk" approach in order to calculate the market risk exposure.

This involves comparing the market risk of the respective sub-fund with the market risk of the associated reference portfolio. The referenceassets are a virtual portfolio which generally does not contain any derivatives and whose value always exactly matches the current valueof the sub-fund, but which does not include any increases in or hedging of the market risk through the use of derivatives. The compositionof the reference portfolio must also be in accordance with the investment objectives and investment policy that apply to the respective sub-fund.

The market risk of the respective sub-fund and its reference portfolio are each determined with the aid of a suitable risk model. Themodelling procedure used is historical simulation. This is a full revaluation approach which does not make any explicit distributionassumption regarding the risk drivers. Instead, the empirical distribution of the risk drivers over a past year is used to determine the valueat risk. This involves the company recording all the market price risks from all the transactions. It uses the risk model to quantify thechange in value over time of the assets held in the respective sub-fund. The value at risk thereby provides a limit, which is expressed inmonetary units, for the potential losses of a portfolio between two specified points in time. This change in values is determined on the basisof random events, i.e. future market price developments, and therefore cannot be predicted with certainty. The market risk that has to beascertained can only be estimated with a sufficiently high level of probability in each case.

LeverageFunds which measure Global Exposure using a Value-at-Risk approach disclose their expected level of leverage. The expected level ofleverage is not a regulatory limit and should be used for indicative purposes only. The level of leverage is measured as the sum ofnotionals of all financial derivative contracts entered into by the respective sub-fund expressed as a percentage of the sub-fund's NetAsset Value. The expected level of the leverage may range from 0 to 200 percent per sub-fund, but may be higher or lower than thisexpected level at any time as long as the respective sub-fund remains in line with its risk profile and complies with its VaR limit.

The annual report will provide the actual level of leverage over the past year and additional explanations on this figure. The leverage is ameasure of the aggregate derivative usage and therefore does not take into account other physical assets directly held in the portfolio ofthe respective sub-fund.

MEAG FlexConcept

13

Level of Leverage is defined in the applicable CESR guidelines as the sum of the notionals of the derivatives used by the respective sub-fund. This way of calculating the level of leverage leads to conservative results since some derivatives that may be used for hedgingpurposes are incorporated into the calculation and therefore lead to artificially raised level of leverage amounts. In some cases this level ofleverage may therefore be substantial, and it doesn't necessarily reflect the precise actual level of leverage risk to which the investors areexposed. In the above paragraph, the expected level of leverage is expressed as a percentage of the net asset value of the sub-fund, andit is based on historical data. Under certain circumstances, a higher level of leverage may be reached for the respective sub-fund (e.g. inthe case of very low market volatility).

More detailed information about the derivative-free reference portfolio and the calculation of the market risk exposure can be found inAppendix I "Special Section relating to the individual of sales prospectus" and can be obtained without charge from the Fund's registeredoffice.


For the calculation of the overall risk for this sub-fund, the Management Company pursues the relative VaR approach.

The cash substitution method is used to determine the reference portfolio for this sub-fund. At the "Cash Substitution" method, thereference portfolio corresponds to the portfolio's holdings without its derivative portion (i.e., explicit substitution the derivatives). To thisend, the components (securities) of the portfolio with the current weightings become a reference portfolio formed with the same marketvalue. The derivatives contained in the portfolio are replaced by cash positions in the same amount (Market value) replaced.

The minimum, maximum and average VaR of the observation year from 1 October 2018 to 30 September 2019 was according to therelative VaR approach with a confidence level of 99% and a holding year of 20 working days:

Minimum VaR 0.29%Average VaR 0.47%Maximum VaR 0.62%

The average leverage from the use of derivatives in the year under review was 1 October 2018 until 30 September 2019: 90.29%

Main risks in the year under review

Counterparty default risksCounterparty default risks cannot be entirely ruled out. However, the investment of the sub-fund's assets was broadly diversified during thefinancial year, and the high quality of the individual securities was always the focus when selecting investments. The bonds had anaverage rating of AA1 (internal MEAG rating) at the end of September 2019. Bonds with an excellent to very good credit rating were thefocus of investments, accounting for an 90 percent share of the securities held at the end of September 2019. Hence, counterparty defaultrisks are to be considered as being minimal.

Interest-rate risksOn the reporting date the portfolio exhibited an interest sensitivity of -0.09 (modified duration with derivatives). The interest risk of thebonds was hedged with EONIA interest-rate swaps, so there was no interest-rate risk.

Market-price risksDuring the financial year, the sub-fund was subject to market-price risks mainly in the form of interest-rate risks. The market-price riskmeasured in terms of volatility was 0.44 percent during the year under review, and is therefore to be considered as low.

Exchange-rate risksThe sub-fund is invested in securities, bank deposits and interest-rate swaps denominated in euro, so its level of currency risk was lowduring the financial year.

Liquidity risksIn order to be able to actively manage the bond portfolio, we place particular importance on the liquidity of the individual investmentpositions. All securities were tradable, and the bank deposits callable daily, so the resulting liquidity risk for the sub-fund was very low.

MEAG FlexConcept

14

Risk Management (Continued)

Operational risksThe management company took the necessary measures during the financial year to reduce the operational risks to an appropriate level.The operational risk includes legal, documentation and reputational risks, and risks arising from the trading, settlement and valuationprocedures used for the sub-fund. It also includes risks resulting from the failure to observe statutory or contractual investmentrequirements. The management company counters these risks with, among other things, written conduct guidelines, process descriptionsand a control environment. The Internal Auditing department regularly checks that the applicable regulations are adhered to.

Major events during the year under review

There were no major events during the financial year.



The benchmark method is used to determine the reference portfolio for this sub-fund. The reference portfolio is the performancebenchmark of the portfolio and is derivatives-free. The benchmark is composed of bond components (IBOXX EURO Sovereign Germany7-10 Years – PRICE INDES), a DAX component, and a proportion of risk-free EUR cash. The units are adjusted every day so that half ofthe benchmark consists of the bond components and the other half consists of a combination of DAX components and risk-free EUR cash,the volatility of which, i.e. the degree of fluctuation of the combination of DAX and cash components, equals the target volatility of the shareportion of the sub-fund.





Counterparty default risksCounterparty default risks cannot be entirely ruled out, but as the MEAG FlexConcept - Wachstum was mainly invested in top-qualitybonds, cash at banks and highly liquid, exchange listed equity index and Euro-Bund futures, counterparty default risks are to beconsidered as being minimal. The bonds had an average rating of AA2 (internal MEAG rating) at the end of September 2019. Bonds withan excellent to very good credit rating were the focus of investments, accounting for a 78 percent share of the securities held at the end ofSeptember 2019. The involvement in OTC derivatives plays only a minor role with regard to counterparty default risks.

Interest-rate risksAs a result of the investment in Euro-Bund futures, short-dated bonds not interest secured and medium-term bonds, the sub-fund exhibitedinterest-rate risks in the form of value changes in the various different assets. Because around 50 percent of the sub-fund assetsparticipate in the performance of the German bond markets (fictitious bond from the Federal Republic of Germany with a 10-year maturity)and due to an interest sensitivity at the end of September 2019 of 5.38 (modified duration with derivatives), the sub-fund's interest-rate riskwas considered to be high.

Market-price risksDuring the financial year, the sub-fund was subject to market-price risks mainly in the form of fluctuations in the DAX and interest-raterisks. The market-price risk measured in terms of the volatility of the unit price was 6.02 percent on the reporting date, and is thus to beseen as moderate.

Exchange-rate risksAll securities were denominated in euro during financial year, so there was no currency risk.

Liquidity risksDuring the financial year, the sub-fund was invested in highly liquid, exchange-listed equity index and Euro-Bund futures, interest-bearingsecurities, EONIA interest swaps and bank deposits. The resulting liquidity risk for the sub-fund can be considered as moderate.

MEAG FlexConcept

15


Operational risksThe management company took the necessary measures during the financial year to reduce the operational risks to an appropriate level.The operational risk includes legal, documentation and reputational risks, and risks arising from the trading, settlement and valuationprocedures used for the sub-fund. It also includes risks resulting from the failure to observe statutory or contractual investmentrequirements. The management company counters these risks with, among other things, written conduct guidelines, process descriptionsand a control environment. Our Internal Auditing department regularly checks that the applicable regulations are adhered to.










Counterparty default risksCounterparty default risks cannot be entirely ruled out, but because the MEAG FlexConcept - EuroGrowth was invested in highly ratedbonds and bank deposits, the counterparty risk was minimal during the year under review. The bonds had an average rating of A1 (internalMEAG rating) at the end of September 2019. With an approximately 74 percent share of the portfolio (relative to the securities held), bondswith excellent to top ratings were the investment focus at the end of September 2019. For this reason, the counterparty risk was low.

Interest-rate risksAs a result of the investment in bonds, the sub-fund exhibited interest-rate risks in the form of value changes in the various different assets.The portfolio's interest sensitivity at the end of September 2019 was 8.41 (modified duration with derivatives), which means that the sub-fund's interest-rate risk was considered to be high.

Market-price risksDuring the financial year, the sub-fund was subject to market-price risks mainly in the form of fluctuations in the European share index, andinterest-rate risks. The market-price risk measured in terms of the volatility of the unit price was 4.89 percent and is thus to be seen asmoderate.

Exchange-rate risksMost securities were denominated in euro during financial year, so there was little currency risk.

Liquidity risksIn order to be able to manage the bond portfolio actively, special value is placed on the liquidity of the individual positions. All securitiesacquired were tradable and the resulting liquidity risk for the sub-fund can be considered to be moderate.

MEAG FlexConcept

16


Operational risksThe fund company took the necessary measures during the financial year to reduce the operational risks to an appropriate level. Theoperational risk includes legal, documentation and reputational risks, and risks arising from the trading, settlement and valuationprocedures used for the sub-fund. It also includes risks resulting from the failure to observe statutory or contractual investmentrequirements. The fund company counters these risks with, among other things, written conduct guidelines, process descriptions and acontrol environment. Our Internal Auditing department regularly checks that the applicable regulations are adhered to.










Counterparty default risksCounterparty default risks cannot be entirely ruled out, but the sub-fund investments were broadly diversified during the year under review,and the good quality of the securities was the main criteria when selecting individual investments. The bonds had an average rating of AA2(internal MEAG rating) at the end of September 2019. Accounting for around 81 percent of the portfolio, securities with an excellent to verygood credit rating were the focus of investments. Therefore, the effects could be seen as being minimal.

Interest-rate risksAs a result of the investment in bonds, the sub-fund exhibited interest-rate risks in the form of value changes in the various different assets.The portfolio's interest sensitivity at the end of September 2019 was 3.23 (modified duration with derivatives), which means that the sub-fund's interest-rate risk was considered to be low.

Market-price risksDuring the financial year, the sub-fund was subject to market-price risks mainly in the form of interest-rate risks. The market-price riskmeasured in terms of the volatility of the unit price was 3.53 percent on the reporting date, and is thus to be seen as low.

Exchange-rate risksAll securities were denominated in euro during financial year, so there was no currency risk.

Liquidity risksIn order to be able to manage the bond portfolio actively, special value is placed on the liquidity of the individual positions. All securitiesacquired were tradable and no liquidity risk arose for the sub-fund.

MEAG FlexConcept

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For the calculation of the overall risk for this sub-fund, the Management Company pursues the absolute VaR approach.


The minimum, maximum and average VaR of the observation year from 1 October 2018 to 30 September 2019 was according to theabsolute VaR approach with a confidence level of 99% and a holding year of 20 working days:




Counterparty default risksCounterparty default risks cannot be entirely ruled out, but as the MEAG FlexConcept - BEST5USD * was mainly invested in top-qualitybonds, cash at banks and an OTC swap, counterparty default risks are to be considered as being minimal. The bonds had an averagerating of AAA at the end of September 2019 (internal MEAG rating). Accounting for 100 percent of the securities in the portfolio, top-qualitybonds were the investment focus at the end of September 2019. Exposure to OTC derivatives plays only a minor role with regard tocounterparty risks.

Interest-rate risksThe sub-fund assets exhibit interest-rate risks as a result of its investment in bond futures for unhedged short-term bonds, whichmanifested itself in price changes in the individual investments. Because more than 90 percent of the sub-fund assets were invested in theUS bond market, and with an interest sensitivity at the end of September 2019 of 7.12 (modified duration with derivatives) the sub-fund'sinterest-rate risk was considered to be moderate.

Market-price risksDuring the financial year, the sub-fund was subject to market-price risks mainly in the form of fluctuations in the index and interest-raterisks. The market-price risk measured in terms of the volatility of the unit price was 5.12 percent on the reporting date, and is thus to beseen as moderate.

Exchange-rate risksAll securities were denominated in US dollar during financial year, so there was no currency risk.

Liquidity risksDuring the financial year, the sub-fund was invested in an OTC swap, interest-bearing securities bank deposits. The resulting liquidity riskfor the sub-fund can be considered as moderate.

MEAG FlexConcept

18





The sub-fund was launched on 17 October 2018.

MEAG FlexConcept

19


8 w

To the Unitholders of MEAG FlexConcept 15, rue Notre Dame L-2240 Luxembourg

KPMG Luxembourg, Societe cooperative 39. Avenue John F. Kennedy L - 1855 Luxembourg

Grand Duchy of Luxembourg

Tel.: +352 22 51 51 1 Fax: +352 22 51 71 E-mail: [email protected] Internet: www.kpmg.lu

REPORT OF THE REVISEUR D'ENTREPRISES AGREE

Report on the audit of the financial statements

Opinion

We have audited the accompanying financial statements of MEAG FlexConcept and each of its sub-funds ("the Fund"), which comprise the statement of net assets and the statement of investments as at 30 September 2019 and the statement of operations and changes in net assets for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of MEAG FlexConcept and each of its sub-funds as at 30 September 2019, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements.

Basis for opinion

We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession ("Law of 23 July 2016") and with International Standards on Auditing ("ISAs") as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier ("CSSF"). Our responsibilities under the Law of 23 July 2016 and ISAs are further described in the « Responsibilities of "Reviseur d'Entreprises agree" for the Audit of the Financial Statements » section of our report. We are also independent of the Fund in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants ("IESBA Code") as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the financial statements, and have ful filled our other ethical responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

The Board of Managers of the Fund's Management Company is responsible for the other information. The other information comprises the information stated in the annual report but does not include the financial statements and our report of "Reviseur d'Entreprises agree" thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

KPMG ll,x.omboJrg. Soc1e:c coopo:.111vo, a Luxcm!>ourg cnt,;y and a TV A LU 27351518 rncmbor t,rm cf tho KPMG nch·,·01'- o! 11dcpcndcnt member firms RC$ Lu)(cmbourg O M!)133 af!.'l.91cd w ~h K?: .. ,1G ln~crn.:i~1cra1 Cococrat1vc r KPMG rntc1n;i1 onJ1"), a Sv,,ss C.:'lt:1Y

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report this fact. We have nothing to report in this regard.

Responsibilities of Board of Managers of the Management Company' for the financial statements

The Board of Managers of the Management Company is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements, and for such internal control as the Board of Managers of the Management Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Managers of the Management Company is responsible for assessing the Fund's and each of its sub-funds' ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Managers of the Management Company either intends to liquidate the Fund or any of its sub-funds or to cease operations, or has no realistic alternative but to do so.

Responsibilities of the "Reviseur d'Entreprises agree" for the audit of the financial statements

The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report of "Reviseur d'Entreprises agree" that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Managers of the Management Company.

- Conclude on the appropriateness of the Board of Managers of the Management Company use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund's or any of its sub-funds' ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report of the "Reviseur d'Entreprises agree" to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report of the "Reviseur d'Entreprises agree". However, future events or conditions may cause the Fund or any of its sub-funds' to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Luxembourg, 22 November 2019 KPMG Luxembourg,Societe cooperative Cabinet de revision agree

Alexander Slug


Statement of Investmentsas at 30 September 2019(in EUR)

Description Quantity /Nominal

Currency Costin EUR

Market valuein EUR

% netassets *

Transferable securities admitted to an official stock exchange listing

Bonds

AustriaHypo Noe Gr 0.375% 17-04.04.23 2,000,000 EUR 2,012,668.00 2,056,120.00 3.70Hypo Vorarl 0.25% 19-21.05.27 2,000,000 EUR 2,018,800.00 2,075,440.00 3.73

4,031,468.00 4,131,560.00 7.43

BelgiumBelfius Bk 0.625% 14-14.10.21 1,400,000 EUR 1,440,810.00 1,431,752.00 2.58Ing Belgium 0.5% 15-01.10.21 3,000,000 EUR 3,066,390.00 3,059,250.00 5.50

4,507,200.00 4,491,002.00 8.08

FinlandNordea 0.025% 17-24.01.22 1,800,000 EUR 1,801,620.00 1,821,366.00 3.27Op Mtg Bk 0.625% 18-01.09.25 2,000,000 EUR 2,005,500.00 2,118,660.00 3.81Sampo Housi 3.875% 11-21.06.21 2,000,000 EUR 2,393,240.00 2,150,100.00 3.87

6,200,360.00 6,090,126.00 10.95

FranceAfl 0.125% 19-20.06.26 2,000,000 EUR 2,004,780.00 2,041,360.00 3.67Bpce Sfh 0.5% 15-11.10.22 1,900,000 EUR 1,936,442.00 1,957,304.00 3.52Ca Home Ln 0.25% 16-23.02.24 2,000,000 EUR 1,980,440.00 2,062,300.00 3.71Cff 0.75% 15-21.01.25 3,000,000 EUR 3,062,250.00 3,184,050.00 5.73Dexia Clf 1.25% 15-27.10.25 3,000,000 EUR 3,165,990.00 3,281,970.00 5.90France 1.75% 13-25.11.24 /Oat 3,000,000 EUR 3,258,000.00 3,368,610.00 6.06

15,407,902.00 15,895,594.00 28.59

GermanyHamb Comm Bk 0.25% 18-25.04.22 3,000,000 EUR 3,005,460.00 3,050,880.00 5.49Hsh Ff 0.125% 16-20.09.24 3,000,000 EUR 2,954,610.00 3,077,850.00 5.54Nordd Lbk 0.375% 17-09.10.24 3,000,000 EUR 3,008,700.00 3,121,020.00 5.61

8,968,770.00 9,249,750.00 16.64

IrelandIreland 0.8% 15-15.03.22 2,000,000 EUR 2,113,400.00 2,066,320.00 3.72Ireland 1% 16-15.05.26 3,000,000 EUR 3,043,740.00 3,258,150.00 5.86

5,157,140.00 5,324,470.00 9.58

LuxembourgEec 3.5% 11-04.06.21 2,200,000 EUR 2,563,088.00 2,352,680.00 4.23Ndt Lbk Lu 0.375% 16-15.06.23 2,000,000 EUR 2,040,000.00 2,048,860.00 3.69

4,603,088.00 4,401,540.00 7.92

MEAG FlexConcept

The accompanying notes form an integral part of this annual report.23

* The percentages figures may be affected by rounding differences due to technical reasons.


Currency Costin EUR

Market valuein EUR

% netassets *

NetherlandsBng 1% 16-12.01.26 3,000,000 EUR 3,104,340.00 3,269,580.00 5.88

3,104,340.00 3,269,580.00 5.88

Total bonds 51,980,268.00 52,853,622.00 95.07

Total transferable securities admitted to an official stock exchange listing 51,980,268.00 52,853,622.00 95.07

Total investments 51,980,268.00 52,853,622.00 95.07

Cash at banks 5,313,862.21 9.56

Other assets and liabilities -2,575,219.55 -4.63

Total net assets 55,592,264.66 100.00

MEAG FlexConcept




Statement of Investments (Continued)as at 30 September 2019(in EUR)


Purchases and Sales of Securities for the yearfrom 1 October 2018 until 30 September 2019

Description Interest rate Purchases Sales

Bonds

Afl 19-20.06.26 0.125% 2,000,000Bng 16-12.01.26 1.000% 3,000,000France 07-25.10.18 4.250% 2,600,000Hsh Nordbk 18-25.04.22 0.250% 3,000,000Hypo Vorarl 19-21.05.27 0.250% 2,000,000Netherlands 13-15.01.19 1.250% 2,900,000Nordd Lbk 17-09.10.24 0.375% 3,000,000Op Mtg Bk 18.01.09.25 0.625% 2,000,000

MEAG FlexConcept



Changes in the Number of Units Outstanding for the yearfrom 1 October 2018 until 30 September 2019

Number of units outstanding at the beginning of the year 938,474.00Number of units issued 217,877.00Number of units redeemed -28,850.61Number of units outstanding at the end of the year 1,127,500.39

Statistical Information

30 September 2019 30 September 2018 30 September 2017

EUR EUR EUR

TOTAL NET ASSETS 55,592,264.66 46,642,982.03 36,872,940.87

Net asset value per unit at the end of the year 49.31 49.70 49.90

26

MEAG FlexConcept

The accompanying notes form an integral part of this annual report.


Statement of Net Assetsas at 30 September 2019

EUR

ASSETSSecurities portfolio at market value 52,853,622.00Cash at banks 5,313,862.21Receivables from interest, net 240,671.11TOTAL ASSETS 58,408,155.32

LIABILITIESPayables on swaps -282,391.60Unrealised loss from swaps -2,505,811.96Management fee payable -8,308.90Payable on taxes and expenses -19,378.20TOTAL LIABILITIES -2,815,890.66

TOTAL NET ASSETS 55,592,264.66

MEAG FlexConcept



Statement of Operations (including equalisation) and Changes in Net Assets forthe year from 1 October 2018 until 30 September 2019

EUR

NET ASSETS AT THE BEGINNING OF THE FINANCIAL YEAR 46,642,982.03

INCOMEInterest received on bonds, net 441,191.60TOTAL INCOME 441,191.60

EXPENSESManagement fees -30,911.86Depositary bank fees -360.22Administration and transfer agent fees -36,553.67Auditing costs, printing and publication costs -9,573.91Subscription tax (Taxe d'Abonnement) -5,245.23Bank charges -7,635.00Interest paid on bank accounts -24,708.77Interest paid on swaps -517,159.07Other expenses -7,752.16TOTAL EXPENSES -639,899.89

NET LOSS FROM INVESTMENTS -198,708.29

Net realised loss on sales of investments -451,579.00Net realised gain on foreign exchange 28.63Net realised gain on sales of swaps 154,097.90NET REALISED LOSS -496,160.76

Change in net unrealised appreciation on investments 1,872,588.00Change in net unrealised depreciation on swaps -1,780,052.04NET DECREASE IN NET ASSETS AS A RESULT OF OPERATIONS -403,624.80

EVOLUTION OF THE CAPITALSubscriptions of units 10,780,039.06Redemptions of units -1,427,131.63NET ASSETS AT THE END OF THE FINANCIAL YEAR 55,592,264.66

MEAG FlexConcept





Currency Costin EUR

Market valuein EUR

% netassets *


Bonds

AustriaHypo Noe Gr 0.375% 17-04.04.23 3,000,000 EUR 3,019,002.00 3,084,180.00 4.46Raiff Lb N 0.375% 17-13.09.24 5,000,000 EUR 4,994,850.00 5,198,400.00 7.53

8,013,852.00 8,282,580.00 11.99

BelgiumKbc Bk 0.375% 16-01.09.22 2,500,000 EUR 2,526,750.00 2,562,925.00 3.71

2,526,750.00 2,562,925.00 3.71

FinlandNordea Fi 0.625% 15-19.10.22 2,500,000 EUR 2,601,500.00 2,585,375.00 3.74Sampo Housi 3.875% 11-21.06.21 3,000,000 EUR 3,589,860.00 3,225,150.00 4.67

6,191,360.00 5,810,525.00 8.41

FranceBpce Sfh 4% 11-23.03.22 S6 2,500,000 EUR 3,062,350.00 2,780,275.00 4.03C Fr Fi Loc 0.2% 15-27.04.23 3,000,000 EUR 2,997,690.00 3,074,040.00 4.45Cff 0.375% 15-29.10.20 2,000,000 EUR 2,009,400.00 2,017,900.00 2.92France 1.75% 13-25.11.24 /Oat 2,000,000 EUR 2,307,780.00 2,245,740.00 3.25

10,377,220.00 10,117,955.00 14.65

GermanyGermany 2% 13-15.08.23 3,000,000 EUR 3,030,150.00 3,333,630.00 4.83

3,030,150.00 3,333,630.00 4.83

IrelandIreland 0.8% 15-15.03.22 3,000,000 EUR 3,170,100.00 3,099,480.00 4.49Ireland 1% 16-15.05.26 4,000,000 EUR 4,058,320.00 4,344,200.00 6.29

7,228,420.00 7,443,680.00 10.78

LuxembourgNdt Lbk Lu 0.375% 16-15.06.23 3,000,000 EUR 2,980,500.00 3,073,290.00 4.45

2,980,500.00 3,073,290.00 4.45

NetherlandsAbn Amro 3.5% 12-18.01.22 2,000,000 EUR 2,406,820.00 2,185,320.00 3.16Ing Nv 2% 12-28.08.20 2,000,000 EUR 2,170,360.00 2,044,660.00 2.96Netherland 2% 14-15.07.24 2,500,000 EUR 2,736,475.00 2,830,175.00 4.10

7,313,655.00 7,060,155.00 10.22

SpainSpain 1.3% 16-31.10.26 5,000,000 EUR 5,117,997.00 5,486,100.00 7.95

5,117,997.00 5,486,100.00 7.95

Total bonds 52,779,904.00 53,170,840.00 76.99


MEAG FlexConcept




Currency Costin EUR

Market valuein EUR

% netassets *

Financial instruments

Treasury bills

FranceFrance 0% 19-17.06.20 Btf 3,000,000 EUR 3,017,636.16 3,013,770.00 4.36France 0% 19-25.03.20 Btf 3,000,000 EUR 3,014,820.52 3,009,180.00 4.36

6,032,456.68 6,022,950.00 8.72

Total treasury bills 6,032,456.68 6,022,950.00 8.72

Total financial instruments 6,032,456.68 6,022,950.00 8.72


Cash at banks 13,572,701.06 19.65

Other assets and liabilities -3,700,932.23 -5.36

Total net assets 69,065,558.83 100.00

MEAG FlexConcept








Bonds

Belgium 18-07.03.19 0.000% 3,000,000 3,000,000Belgium 18-11.07.19 0.000% 3,000,000 3,000,000France 13-25.05.19 1.000% 2,000,000

Treasury bills

France 19-17.06.20 Btf 0.000% 3,000,000France 19-25.03.20 Btf 0.000% 3,000,000

MEAG FlexConcept




Number of units outstanding at the beginning of the year 966,750.00Number of units issued 146,378.00Number of units redeemed -73,517.21Number of units outstanding at the end of the year 1,039,610.79



EUR EUR EUR

TOTAL NET ASSETS 69,065,558.83 62,089,610.82 55,878,269.86


32

MEAG FlexConcept




EUR

ASSETSSecurities portfolio at market value 59,193,790.00Cash at banks 13,572,701.06Receivables from interest, net 354,298.07TOTAL ASSETS 73,120,789.13

LIABILITIESPayables on swaps -335,237.68Unrealised loss from futures -621,570.00Unrealised loss from swaps -3,054,514.95Management fee payable -22,175.95Payable on taxes and expenses -21,731.72TOTAL LIABILITIES -4,055,230.30


MEAG FlexConcept




EUR


INCOMEInterest received on bonds, net 696,581.84TOTAL INCOME 696,581.84

EXPENSESManagement fees -83,709.51Depositary bank fees -937.54Administration and transfer agent fees -46,148.76Auditing costs, printing and publication costs -9,573.92Subscription tax (Taxe d'Abonnement) -6,501.55Bank charges -11,679.13Interest paid on bank accounts -60,883.35Interest paid on swaps -770,741.96Other expenses -7,755.14TOTAL EXPENSES -997,930.86

NET LOSS FROM INVESTMENTS -301,349.02

Net realised loss on sales of investments -79,611.27Net realised gain on financial futures 3,675,780.02Net realised loss on foreign exchange -0.01NET REALISED PROFIT 3,294,819.72

Change in net unrealised appreciation on investments 1,240,363.06Change in net unrealied depreciation on financial futures -780,237.50Change in net unrealised depreciation on swaps -1,410,555.22NET INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 2,344,390.06


MEAG FlexConcept





Currency Costin EUR

Market valuein EUR

% netassets *


Bonds

AustriaAustria 0.75% 16-20.10.26 270,000 EUR 276,382.80 293,897.70 1.47Austria 3.5% 05-15.09.21 480,000 EUR 542,457.60 519,950.40 2.61

818,840.40 813,848.10 4.08

BelgiumBelgcoopdom 1.6% 16-22.06.47 100,000 EUR 98,524.00 130,300.00 0.65Belgium 0.2% 16-22.10.23 600,000 EUR 606,570.00 620,784.00 3.11Belgium 1% 16-22.06.26 220,000 EUR 219,353.20 242,226.60 1.22

924,447.20 993,310.60 4.98

FranceFrance 0.5% 18-25.05.29 /Oat 730,000 EUR 755,722.80 786,005.60 3.94France 1.25% 15-25.05.36 /Oat 250,000 EUR 247,362.50 297,690.00 1.49France 1.5% 15-25.05.31 /Oat 340,000 EUR 354,325.20 406,901.80 2.04

1,357,410.50 1,490,597.40 7.47

GermanyGermany 2.5% 12-04.07.44 320,000 EUR 430,682.22 538,345.60 2.70Germany 4.75% 03-04.07.34 120,000 EUR 195,504.05 215,697.60 1.08

626,186.27 754,043.20 3.78

IrelandIreland 1% 16-15.05.26 100,000 EUR 103,077.00 108,605.00 0.54

103,077.00 108,605.00 0.54

ItalyBtps 2% 15-01.12.25 /Btp 825,000 EUR 839,310.42 905,784.00 4.54Italy 2.05% 17-01.08.27 /Btp 360,000 EUR 365,311.06 399,992.40 2.00

1,204,621.48 1,305,776.40 6.54

NetherlandsNetherlands 0.25% 15-15.07.25 450,000 EUR 454,222.50 473,895.00 2.38

454,222.50 473,895.00 2.38

PortugalPortugal 2.125% 18-17.10.28 100,000 EUR 103,668.10 118,300.00 0.59Portugal 3.85% 05-15.04.21 570,000 EUR 619,406.43 609,369.90 3.06

723,074.53 727,669.90 3.65

SloveniaSlovenia 4.625% 09-09.09.24 70,000 EUR 90,335.00 87,661.70 0.44

90,335.00 87,661.70 0.44

SpainSpain 1.5% 17-30.04.27 460,000 EUR 458,979.77 513,010.40 2.57Spain 5.15% 13-31.10.28 110,000 EUR 149,431.70 160,494.40 0.81

608,411.47 673,504.80 3.38

Total bonds 6,910,626.35 7,428,912.10 37.24

MEAG FlexConcept




Currency Costin EUR

Market valuein EUR

% netassets *

Shares

FinlandNeste Oil Oyj 3,600 EUR 112,730.46 108,468.00 0.54

112,730.46 108,468.00 0.54

FranceAdocia 4,900 EUR 215,385.42 51,646.00 0.26Bnp Paribas 3,500 EUR 174,939.02 154,665.00 0.78Cap Gemini Sa 2,700 EUR 267,825.49 296,865.00 1.49Carrefour Sa 59 EUR 1,668.35 956.69 0.00Innate Pharma /Nom. Cat. -A- 18,000 EUR 109,601.72 132,030.00 0.66L Oreal 780 EUR 125,149.97 197,652.00 0.99Lvmh Moet Hennessy Eur 0.3 500 EUR 86,102.17 180,075.00 0.90Orange 6,500 EUR 89,468.07 93,567.50 0.47Remy Cointreau Sa 500 EUR 60,141.13 60,700.00 0.30Safran Sa 1,950 EUR 166,528.83 282,750.00 1.42Sanofi 3,500 EUR 260,439.91 297,710.00 1.49Ste Gen. Paris -A- 2,400 EUR 77,737.16 59,856.00 0.30Total Sa 8,000 EUR 371,746.25 380,720.00 1.91Vinci 2,100 EUR 116,581.44 203,742.00 1.02

2,123,314.93 2,392,935.19 11.99

GermanyAdva Optical Networking 8,000 EUR 57,027.68 50,960.00 0.26Aixtron /Namen Akt. 24,000 EUR 221,265.16 222,288.00 1.11Allianz Se /Nam. Vinkuliert 728 EUR 110,833.44 154,226.80 0.77Alzchem Group Ag 7,300 EUR 160,792.72 147,460.00 0.74Aurelius Eq Opp — Akt 1,500 EUR 55,322.10 56,190.00 0.28B.R.A.I.N. 6,800 EUR 145,599.62 77,792.00 0.39Bmw-Bayer. Motorenwerke 1,000 EUR 72,963.75 63,890.00 0.32Compugroup Medical Se 1,000 EUR 51,927.07 55,700.00 0.28Daimler Ag /Namen-Akt. 5,350 EUR 345,671.74 242,783.00 1.22Datagroup Akt. 4,800 EUR 193,734.85 234,000.00 1.17Deutsche Post Ag 6,650 EUR 183,144.26 200,763.50 1.01Deutsche Telekom /Nam. 14,000 EUR 202,435.05 215,068.00 1.08Deutsche Wohnen Se 1,700 EUR 56,369.20 56,831.00 0.28Evotec Ag 11,700 EUR 239,782.42 238,680.00 1.20Fresenius Medical Care Ag 4,800 EUR 310,195.90 297,216.00 1.49Fresenius Se & Co Kgaa 17,100 EUR 989,269.43 751,716.00 3.77Hellofresh Se 13,000 EUR 129,609.20 175,760.00 0.88Infineon Technologies /Nam. 3,900 EUR 55,849.75 64,763.40 0.32Morphosys 3,400 EUR 342,288.39 348,500.00 1.75Nfon Ag 20,800 EUR 249,600.00 211,452.80 1.06Osram licht akt. 1,400 EUR 53,748.81 57,078.00 0.29Puma Se 1,800 EUR 108,014.64 125,910.00 0.63Rational ag. Landsberg am lech 100 EUR 57,060.46 64,950.00 0.33Rocket Internet Se 4,900 EUR 95,013.39 116,228.00 0.58Siemens Ag /Nam. 2,800 EUR 297,314.08 272,608.00 1.37Sixt Vorz.Akt Ohne Stimmrecht 3,700 EUR 222,357.94 222,000.00 1.11Stratec Biomedical Ag 2,700 EUR 149,168.31 192,240.00 0.96Teamviewer — Bearer Shs 5,153 EUR 135,266.25 124,187.30 0.62Va-Q-Tec Ag 12,273 EUR 197,082.38 108,493.32 0.54

5,488,707.99 5,149,735.12 25.81

MEAG FlexConcept






Currency Costin EUR

Market valuein EUR

% netassets *

IrelandLinde Plc 1,800 EUR 269,436.11 316,980.00 1.59

269,436.11 316,980.00 1.59

ItalyCassiopea Spa 2,657 CHF 87,300.99 97,926.27 0.49Eni Spa Roma 7,600 EUR 102,665.22 106,810.40 0.54Newron Pharmaceuticals Spa 11,000 CHF 61,726.69 56,251.40 0.28

251,692.90 260,988.07 1.31

LuxembourgBefesa S.A. 661 EUR 22,496.47 21,218.10 0.11Eurofins Scientific Sa 700 EUR 260,212.83 301,280.00 1.51

282,709.30 322,498.10 1.62

NetherlandsAirbus Group Se 4,500 EUR 430,525.51 535,500.00 2.69Ing Group Nv 8,130 EUR 96,862.45 77,877.27 0.39Qiagen Nv 7,000 EUR 220,135.71 211,610.00 1.06

747,523.67 824,987.27 4.14

SpainBanco Santander — Reg. Shs 54,010 EUR 260,540.22 199,837.00 1.00Bco Bilbao Viz. Argentaria /Nam. 22,576 EUR 148,927.46 107,168.27 0.54

409,467.68 307,005.27 1.54

SwitzerlandFlughafen Zuerich Ag 350 CHF 62,721.06 59,047.84 0.29Medartis Holding Ag 6,000 CHF 311,368.24 243,249.29 1.22Novartis Ag Basel /Nam. 1,700 CHF 116,142.11 135,303.73 0.68Partners Group Holding 150 CHF 99,440.67 106,255.71 0.53Roche Holding Ag /Bearer 3,500 CHF 814,108.52 921,675.23 4.62Schindler Hld Sa /Nom. 300 CHF 58,349.85 61,254.59 0.31Straumann Holding Ag /Nom. 75 CHF 54,187.58 56,057.90 0.28Temenos Group Ag /Namen. 730 CHF 113,071.82 113,942.02 0.57

1,629,389.85 1,696,786.31 8.50

Total shares 11,314,972.89 11,380,383.33 57.04


Transferable securities dealt in on another regulated market

Bonds

SpainSpain 2.9% 16-31.10.46 225,000 EUR 248,474.25 326,774.25 1.64

248,474.25 326,774.25 1.64

Total bonds 248,474.25 326,774.25 1.64

Total transferable securities dealt in on another regulated market 248,474.25 326,774.25 1.64


Cash at bank 757,135.74 3.80

Other assets and liabilities 56,612.32 0.28

Total net assets 19,949,817.74 100.00

MEAG FlexConcept








Shares

Adecco Group Sa /Act. Nom. 2,600Adva Optical Networking 8,000 33,000Airbus Se 2,800Aixtron /Namen Akt. 24,000Alcon Inc. 340 340Allianz Se /Nam. Vnkuliert 800Alzchem Group Ag 7,300ATOS Act 1,100Aurelius Eq Opp- Akt 1,500AXA 7,017BASF 2,800 2,800Befesa S.A. 661Bnp Paribas 2,110 2,100Cancom Se 2,000 6,400Capgemini Se 1,100Cassiopea Spa 2,657Ceconomy Ap 11,300Cew Stiftung and Co. 4,000Cie Financiere Richemont Nam-Ak 2,400Comet Holding Ag 1,200Compugroup Medical Se 2,600 3,800Continental Ag 500Covestro Ag 2,100 2,100Credit Suisse 17,500 17,500Daimler Ag /Name-Akt 2,000Datagruop Akt. 4,800Deutsche Telekom /Nam 21,500 34,000Deutsche Wohnen Se 1,700Dic Asset Ag 5,795DKSH Holding Ltd 950 950EDF 4,100Eni Spa Roma 7,600Essilor International 800Eurofins Scientific Sa 1,250 1,100Evotec Ag 17,200 12,700Fischer Georg Ag /Nam 100Fortum Corporation 2,600Fresenius Medical Care Ag 6,000 1,200Fresenius Se & Co Kgaa 14,100 5,000Gerresheimer Ag 4,755 4,755Gerry Weber Intl Ag 5,400Hamborner Ag 11,200Hellofresh Se 8,400Infineon Technologies 3,900 5,200Ingenico Group Act. 1,414Innate Pharma /Nom. Cat. -A- 18,000 7,979Julius Baer Grp 362Lafargeholcim N Namen-Akt. 1,350 3,350Linde Ag 500Linde Plc 1,800Lvmh Moet Hennessy Eur 0.3 200 600Medartis Holding Ag 4,600Mensch & Maschine Software Se 2,500Morphosys 6,538 4,338Neste Oil Oyi 3,600Nestle /Act Nom 2,600 2,600

MEAG FlexConcept



Newron Pharmaceuticals Spa 11,000Nexus Ag 4,200Novartis Ag Basel /Nam. 3,000Orange 15,500 9,000Osram Licht Akt. 1,400Palfinger Ag 1,500Partners Group Holding 150Puma Se 1,800Qiagen Nv 3,000Rational Ag. Landsbery Am Lech 100Remy Cointreau Sa 500Roche Holding Ag /Bearer 1,850Rocket Internet Se 1,700Safran Sa 800Sanofi 1,500 1,600Sap Se 3,000Schaeffier Ag 7,500Schindler Hld Sa /Nom. 300Semperit Ag Holding 2,150Sfs Group Ltd 1,300Sig Combibloc Group Ag 6,000 6,000Sika Ltd 600Sixt Leasing Ag 6,300Sixt VorzAkt Ohne Stimmrecht 3,700Stabilus S.A. 1,051Ste Gen. Paris A- 6,805 7,000Stratec Biomedical Ag 2,200 2,200Stratec Se 2,650 2,650Straumann Holding Ag /Nom. 75Suedzucker Akt. 9,725 9,725Swiss Re-Namen 800Teamviewer - Beater Shs 5,153Teleperform. Se 1,100Temenos Group Ag /Namen. 730The Swatch Group 50Total Sa 5,900UBS Group Ag 21,500Unibail Rodamca Westfield /Reit 300Unilever Cert. of Shs 4,500VAT Group Ltd 550 550Verbund Ag /-A- 1,700Wirecard Ag 800 800

Bonds

Austria 05-15.09.21 3.500% 200,000Austria 13-19.10.18 1.150% 420,000Belgium 16-22.10.23 0.200% 600,000France 13-25.11.19 /Oat 0.500% 395,000France 15-25.05.31 /Oat 1.500% 240,000France 18-25.05.29 /Oat 0.500% 730,000France 25.10.27 /Oat Regs 2.750% 400,000 770,000Germany 03-04.07.34 4.750% 120,000Germany 12-04.07.44 2.500% 80,000Germany 17-15.08.27 0.500% 330,000Italy 09-01.03.20 Btp 4.250% 150,000Netherlands 15-15.07.25 0.250% 150,000Portugal 05-15.04.21 3.850% 570,000Spain 09-30.07.19 4.600% 150,000

MEAG FlexConcept



Purchases and Sales of Securities for the yearfrom 1 October 2018 until 30 September 2019 (Continued)



Number of units outstanding at the beginning of the year 180,000.00Number of units issued 175,667.00Number of units redeemed -175,667.00Number of units outstanding at the end of the year 180,000.00



EUR EUR EUR

TOTAL NET ASSETS 19,949,817.74 19,822,931.11 19,444,736.57


40

MEAG FlexConcept




EUR

ASSETSSecurities portfolio at market value 19,136,069.68Cash at banks 757,135.74Amounts receivable on sale of investments 72,754.92Receivables from interest, net 50,726.30Formation Expenses 1,099.37TOTAL ASSETS 20,017,786.01

LIABILITIESUnrealised loss from futures -19,156.35Management fee payable -24,914.66Payable on taxes and expenses -23,897.26TOTAL LIABILITIES -67,968.27


MEAG FlexConcept




EUR


INCOMEDividends from security holdings, net 284,289.61Interest received on bonds, net 131,097.73Interest on cash at banks 97.41TOTAL INCOME 415,484.75

EXPENSESManagement fees -103,858.72Depositary bank fees -7,439.91Administration and transfer agent fees -14,443.86Auditing costs, printing and publication costs -9,705.47Subscription tax (Taxe d'Abonnement) -1,943.79Bank charges -9,923.28Interest paid on bank accounts -8,977.71Amortisation of foundation costs -3,512.52Other expenses -10,322.26TOTAL EXPENSES -170,127.52

NET INCOME FROM INVESTMENTS 245,357.23

Net realised gain on sales of investments 116,456.48Net realised loss on financial futures -687,000.49Net realised gain on forward foreign exchange contracts 93.14Net realised gain on foreign exchange 10,208.10NET REALISED LOSS -314,885.54

Change in net unrealised appreciation on investments 442,425.31Change in net unrealied appreciation on financial futures 64,343.65NET INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 191,883.42


MEAG FlexConcept





Currency Costin EUR

Market valuein EUR

% netassets *


Bonds

AustriaAustria 0.5% 17-20.04.27 6,000,000 EUR 5,999,400.00 6,433,320.00 1.63

5,999,400.00 6,433,320.00 1.63

BelgiumBelgium 0.8% 18-22.06.28 Regs 6,000,000 EUR 5,994,240.00 6,601,260.00 1.67Belgium 2.25% 13-22.06.23 16,000,000 EUR 17,816,800.00 17,772,800.00 4.50

23,811,040.00 24,374,060.00 6.17

FinlandFinland 0.5% 17-15.09.27 6,000,000 EUR 5,986,620.00 6,454,560.00 1.64Finland 1.625% 12-15.09.22 21,000,000 EUR 22,556,310.00 22,476,300.00 5.69

28,542,930.00 28,930,860.00 7.33

FranceFrance 1.75% 13-25.05.23 Oat 5,000,000 EUR 5,440,100.00 5,454,450.00 1.38

5,440,100.00 5,454,450.00 1.38

GermanyBrd 1.75% 12-13.06.22 15,000,000 EUR 16,143,150.00 15,941,850.00 4.04Hans Hamburg 1.875% 26.09.22 20,000,000 EUR 21,713,200.00 21,464,400.00 5.43Hessen 1.75% 12-19.06.20 25,000,000 EUR 26,766,500.00 25,405,000.00 6.43Hessen 3% 11-23.08.21 17,000,000 EUR 19,550,510.00 18,152,600.00 4.59Hsh Ff 0.125% 16-20.09.24 3,500,000 EUR 3,496,955.00 3,590,825.00 0.91Land Nieder 2.75% 11-13.09.21 24,000,000 EUR 27,273,120.00 25,550,400.00 6.47

114,943,435.00 110,105,075.00 27.87

HongkongCn Dev Bk 0.125% 17-24.01.20 1,000,000 EUR 997,970.00 1,000,820.00 0.26Cn Dev Bk 0.625% 18-12.12.22 5,000,000 EUR 4,981,350.00 5,099,750.00 1.29

5,979,320.00 6,100,570.00 1.55

HungaryHungary 1.25% 18-22.10.25 3,200,000 EUR 3,155,872.00 3,444,000.00 0.87

3,155,872.00 3,444,000.00 0.87

IrelandIreland 0.9% 18-15.05.28 9,000,000 EUR 8,936,370.00 9,805,590.00 2.48Ireland 1.35% 18-18.03.31 2,000,000 EUR 2,008,560.00 2,283,440.00 0.58

10,944,930.00 12,089,030.00 3.06

ItalyItaly 3.75% 10-01.03.21 Btp 40,000,000 EUR 45,752,000.00 42,308,800.00 10.71

45,752,000.00 42,308,800.00 10.71

LuxembourgEfsf 1.75% 13-29.10.20 49,000,000 EUR 52,740,170.00 50,217,650.00 12.71Efsf 1.875% 13-23.05.23 20,000,000 EUR 21,872,000.00 21,798,000.00 5.52Eib 0.375% 18-16.07.25 7,000,000 EUR 6,979,040.00 7,365,260.00 1.87Eib 1% 15-14.03.31 3,300,000 EUR 3,311,143.00 3,761,076.00 0.95Eu 1.125% 16-04.04.36 2,000,000 EUR 1,988,240.00 2,367,000.00 0.60

MEAG FlexConcept




Currency Costin EUR

Market valuein EUR

% netassets *

Luxembourg 2.125% 13-10.07.23 24,000,000 EUR 26,928,480.00 26,668,320.00 6.75113,819,073.00 112,177,306.00 28.40

NorwayKommunalbk 0.625% 20.04.26 3,500,000 EUR 3,500,220.00 3,720,815.00 0.94

3,500,220.00 3,720,815.00 0.94

SlovakiaSlovakia 1.375% 15-21.01.27 3,000,000 EUR 3,168,600.00 3,367,200.00 0.85

3,168,600.00 3,367,200.00 0.85

Total bonds 365,056,920.00 358,505,486.00 90.76


Other transferable securities

Bonds

SpainCas Y Leon 2.3% 19-28.02.39 2,000,000 EUR 1,998,420.00 2,460,540.00 0.62

1,998,420.00 2,460,540.00 0.62

Total bonds 1,998,420.00 2,460,540.00 0.62

Total other transferable securities 1,998,420.00 2,460,540.00 0.62


Cash at banks 32,415,526.73 8.21

Other assets and liabilities 1,642,091.27 0.41

Total net assets 395,023,644.00 100.00

MEAG FlexConcept








Bonds

Austria 09-15.03.26 4.850% 3,000,000Austria 17-20.04.27 0.500% 6,000,000Belgium 18-22.06.28 Regs 0.800% 6,000,000Belgium Olo 14-22.06.24 2.600% 4,500,000Cas Y Leon 19-28.02.39 2.300% 2,000,000Cn Dev BK 18-12.12.22 0.625% 5,000,000Eib 18-16.07.25 0.375% 7,000,000Finland 09-04.07.25 4.000% 3,000,000Finland 17-15.09.27 0.500% 6,000,000Hungary 18-22.10.25 1.250% 3,200,000Ireland 18-15.05.28 0.900% 6,000,000Ireland 18-18.03.31 1.350% 2,000,000Italy 09-01.09.19 4.250% 25,000,000Luxembourg 13-19.03.28 2.250% 20,500,000Netherland 14-15.07.24 2.000% 8,000,000

MEAG FlexConcept




Number of units outstanding at the beginning of the year 4,000,000.00Number of units issued 0.00Number of units redeemed 0.00Number of units outstanding at the end of the year 4,000,000.00



EUR EUR EUR

TOTAL NET ASSETS 395,023,644.00 392,751,992.98 402,804,281.46


46

MEAG FlexConcept




EUR

ASSETSSecurities portfolio at market value 360,966,026.00Cash at banks 32,415,526.73Receivables from interest, net 1,806,226.58TOTAL ASSETS 395,187,779.31

LIABILITIESManagement fee payable -89,602.83Payable on taxes and expenses -74,532.48TOTAL LIABILITIES -164,135.31


MEAG FlexConcept




EUR


INCOMEInterest received on bonds, net 7,907,591.32TOTAL INCOME 7,907,591.32

EXPENSESManagement fees -354,282.47Depositary bank fees -645.22Administration and transfer agent fees -252,818.31Auditing costs, printing and publication costs -13,083.45Subscription tax (Taxe d'Abonnement) -39,381.87Bank charges -56,894.46Interest paid on bank accounts -30,891.89Other expenses -8,341.63TOTAL EXPENSES -756,339.30

NET INCOME FROM INVESTMENTS 7,151,252.02

Net realised loss on sales of investments -3,806,220.00NET REALISED PROFIT 3,345,032.02

Change in net unrealised appreciation on investments 6,726,619.00NET INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 10,071,651.02

EVOLUTION OF THE CAPITALDividend paid -7,800,000.00NET ASSETS AT THE END OF THE FINANCIAL YEAR 395,023,644.00

MEAG FlexConcept



Statement of Investmentsas at 30 September 2019(in USD)


Currency Costin USD

Market valuein USD

% net-assets **


Bonds

United States of AmericaUsa 1.375% 16-15.12.19 /Tbo 125,000 USD 123,872.07 124,887.70 5.64Usa 1.375% 17-15.01.20 /Tbo 100,000 USD 99,675.78 99,863.28 4.51Usa 1.375% 17-15.02.20 /Tbo 200,000 USD 198,640.63 199,609.38 9.02Usa 1.5% 17-15.04.20 /Tbo 200,000 USD 199,453.13 199,578.13 9.02Usa 1.5% 17-15.05.20 /Tbo 150,000 USD 149,625.00 149,671.88 6.77Usa 1.5% 17-15.06.20 /Tbo 150,000 USD 149,566.41 149,619.14 6.76Usa 1.625% 17-15.03.20 /Tbo 150,000 USD 149,455.08 149,835.94 6.77

1,070,288.10 1,073,065.45 48.49

Total bonds 1,070,288.10 1,073,065.45 48.49


Financial instruments

Treasury bills

United States of AmericaUsa 0% 18-07.11.19 Tb 175,000 USD 172,337.35 174,678.12 7.89Usa 0% 19-09.01.20 Tb 150,000 USD 148,997.35 149,253.02 6.75Usa 0% 19-16.01.20 Tb 250,000 USD 247,655.58 248,681.88 11.24Usa 0% 19-24.10.19 Tb 100,000 USD 98,838.89 99,882.67 4.51Usa 0% 19-27.02.20 Tb 175,000 USD 172,690.16 173,688.41 7.85Usa 0% 19-30.01.20 Tb 150,000 USD 147,501.83 149,098.34 6.74

988,021.16 995,282.44 44.98

Total treasury bills 988,021.16 995,282.44 44.98

Total financial instruments 988,021.16 995,282.44 44.98


Cash at banks 94,694.04 4.28

Other assets and liabilities 49,783.15 2.25

Total net assets 2,212,825.08 100.00

MEAG FlexConcept


* MEAG FlexConcept - BEST5USD launched on 17 October 2018.** The percentages figures may be affected by rounding differences due to technical reasons.


Purchases and Sales of Securities for the periodfrom 17 October 2018 until 30 September 2019


Bonds

Usa 15-16.06.19 /Tbo 0.875% 250,000 250,000Usa 17-31.05.19 /Tbo 1.250% 250,000 250,000Usa 12-30.05.19 /Tbo 1.250% 250,000 250,000Usa 17-31.07.19 /Tbo 1.375% 250,000 250,000Usa 16-15.12.19 /Tbo 1.375% 125,000Usa 17-15.01.20 /Tbo 1.375% 100,000Usa 17-15.02.20 /Tbo 1.375% 200,000Usa 17-15.04.20 /Tbo 1.500% 200,000Usa 17-15.05.20 /Tbo 1.500% 150,000Usa 17-15.06.20 /Tbo 1.500% 150,000Usa 17-15.03.20 /Tbo 1.625% 150,000

Treasury bills

Usa 18-06.06.19 Tb 0.000% 100,000 100,000Usa 18-07.02.19 Tb 0.000% 250,000 250,000Usa 18-07.11.19 Tb 0.000% 175,000Usa 18-27.03.19 Tb 0.000% 250,000 250,000Usa 19-08.08.19 Tb 0.000% 250,000 250,000Usa 19-09.01.20 Tb 0.000% 150,000Usa 19-16.01.20 Tb 0.000% 250,000Usa 19-24.10.19 Tb 0.000% 100,000Usa 19-27.02.20 Tb 0.000% 175,000Usa 19-29.08.19 Tb 0.000% 150,000 150,000Usa 19-30.01.20 Tb 0.000% 150,000

MEAG FlexConcept




Changes in the Number of Units Outstanding for the periodfrom 17 October 2018 until 30 September 2019

Number of units outstanding at the beginning of the period 0.00Number of units issued 21,510.97Number of units redeemed -500.83Number of units outstanding at the end of the period 21,010.14



USD USD USD

TOTAL NET ASSETS 2,212,825.08 0.00 0.00

Net asset value per unit at the end of the period 105.32 0.00 0.00

51

MEAG FlexConcept





USD

ASSETSSecurities portfolio at market value 2,068,347.89Cash at banks 94,694.04Receivables from interest, net 4,263.17Formation Expenses 36,077.88Other assets 29,381.77TOTAL ASSETS 2,232,764.75

LIABILITIESPayables on swaps -1,848.28Unrealised loss from swaps -4,079.31Management fee payable -1,586.14Payable on taxes and expenses -12,425.94TOTAL LIABILITIES -19,939.67


MEAG FlexConcept




Statement of Operations (including equalisation) and Changes in Net Assets forthe period from 17 October 2018 until 30 September 2019

USD

NET ASSETS AT THE BEGINNING OF THE FINANCIAL PERIOD 0.00

INCOMEInterest received on bonds, net 9,146.31Interest on cash at banks 8,260.83Other income 29,381.77TOTAL INCOME 46,788.91

EXPENSESManagement fees -5,321.65Depositary bank fees -796.86Administration and transfer agent fees -4,495.78Auditing costs, printing and publication costs -10,995.30Subscription tax (Taxe d'Abonnement) -193.84Bank charges -266.02Amortisation of foundation costs -8,494.66Interest paid on swaps -1,848.28Other expenses -8,583.52TOTAL EXPENSES -40,995.91

NET INCOME FROM INVESTMENTS 5,793.00

Net realised gain on sales of investments 13,649.20Net realised gain on foreign exchange 57.55Net realised gain on sales of swaps 71,812.58NET REALISED PROFIT 91,312.33

Change in net unrealised appreciation on investments 10,038.63Change in net unrealised depreciation on swaps -4,079.31NET INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 97,271.65

EVOLUTION OF THE CAPITALSubscriptions of units 2,166,597.32Redemptions of units -51,043.89NET ASSETS AT THE END OF THE FINANCIAL PERIOD 2,212,825.08

MEAG FlexConcept



Combined Statement of Net Assetsas at 30 September 2019

EUR *

ASSETSSecurities portfolio at market value 494,039,272.77Cash at banks 52,145,743.82Amounts receivable on sale of investments 72,754.92Receivables from interest, net 2,455,817.14Formation expenses 34,062.26Other assets 26,844.92TOTAL ASSETS 548,774,495.83

LIABILITIESPayables on swaps -619,317.98Unrealised loss from futures -640,726.35Unrealised loss from swaps -5,564,054.01Management fee payable -146,451.53Payable on taxes and expenses -150,892.73TOTAL LIABILITIES -7,121,442.60


MEAG FlexConcept


* The sub-fund BEST5USD denominated in USD was converted into EUR with the exchange-rate of 1.094500.

Combined Statement of Operations (including equalisation) and Changes in NetAssets for the year from 1 October 2018 until 30 September 2019

EUR *


INCOMEDividends from security holdings, net 284,289.61Interest received on bonds, net 9,184,819.10Interest on cash at banks 7,644.99Other income 26,844.92TOTAL INCOME 9,503,598.62

EXPENSESManagement fees -577,624.73Depositary bank fees -10,110.95Administration and transfer agent fees -354,072.21Auditing costs, printing and publication costs -51,982.71Subscription tax (Taxe d'Abonnement) -53,249.54Bank charges -86,374.92Interest paid on bank accounts -125,461.72Amortisation of foundation costs -11,273.74Interest paid on swaps -1,289,589.73Other expenses -42,013.61TOTAL EXPENSES -2,601,753.86

NET INCOME/LOSS FROM INVESTMENTS 6,901,844.76

Net realised gain/loss on sales of investments -4,208,483.07Net realised gain/loss on sales of forward foreign exchange contracts 93.14Net realised gain/loss on financial futures 2,988,779.53Net realised gain/loss on foreign exchange 10,289.30Net realised gain/loss on sales of swaps 219,710.12NET REALISED PROFIT/LOSS 5,912,233.78

Change in net unrealised appreciation/depreciation on investments 10,291,167.26Change in net unrealied appreciation/depreciation on financial futures -715,893.85Change in net unrealised appreciation/depreciation on swaps -3,194,334.36NET INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 12,293,172.83

EVOLUTION OF THE CAPITALSubscriptions of units 40,987,741.65Redemptions of units -25,135,378.19Dividend Paid -7,800,000.00NET ASSETS AT THE END OF THE FINANCIAL YEAR 541,653,053.23

MEAG FlexConcept


* The sub-fund BEST5USD denominated in USD was converted into EUR with the exchange-rate of 1.094500.

Notes to the Financial Statementsas at 30 September 2019

Note 1 – General

MEAG FlexConcept (the "Fund") is an investment fund (Fonds Commun de Placement) with several sub-funds that is set up underLuxembourg law as an "umbrella fund". It has been established for an indefinite period of time and is registered with the Trade andCompanies Register of Luxembourg (RCSL) under number K 306.

The Fund falls within the scope of Part I of the Law of 17 December 2010 on undertakings for collective investment in its latest version("Law of 17 December 2010").

The sales prospectus is from 5 July 2019.

Units of the investment fund MEAG FlexConcept and its sub-funds are described in the sales prospectus (the "Sales Prospectus") and inthe Management Regulations contained in Annex III. The Management Regulations entered into force on 3 April 2013 and a notice of filingwith the Trade and Companies Register of Luxembourg was published on 5 April 2013 in the "Mémorial, Recueil des sociétés etassociations", the Official Gazette of the Grand Duchy of Luxembourg ("Mémorial").

The Management Regulations were last amended on 30 May 2018 with effect from 31 May 2018, and the amended version was filed withthe Trade and Companies Register of the Luxembourg District Court. Notice of this filing was published on 8 June 2018 in the RecueilElectronique des Sociétés et Associations ("RESA").

The minimum capital of the Fund is 1,250,000.00 Euro.

At the date of this report, the Fund offers units for subscription in the following sub-funds:

– MEAG FlexConcept - Basis– MEAG FlexConcept - Wachstum– MEAG FlexConcept - EuroGrowth– MEAG FlexConcept - EuroBond– MEAG FlexConcept - BEST5USD (launched on 17 October 2018)– MEAG FlexConcept - BEST10USD (not yet launched)

Note 2 – Significant accounting and valuation policies

Presentation of financial statements:

The financial statements are prepared in accordance with Luxembourg laws and regulations relating to Undertakings for CollectiveInvestment in Transferable Securities and generally accepted accounting principles in Luxembourg. The financial statements have beenprepared on a going concern basis for the active sub-funds.

Calculation of the net asset value:

The Fund's accounting currency is the EUR ("reference currency"). The Net Asset Value per unit of each class and/or sub-fund will bedenominated in the reference currency of the respective sub-fund, or if applicable, in the corresponding currency of the respective class ofunits.

In order to calculate the Net Asset Value for each sub-fund, the value of the assets forming part of the sub-fund's/unit class's unit assetsless the liabilities of the sub-fund/respective unit class are determined on each Valuation Day (the "Net Asset Value per sub-fund" or "netsub-fund assets") and are divided by the number of units of the assets of the respective sub-fund and/or the respective unit class that arein circulation on the Valuation Day, with the result being rounded to two decimal places (the "Net Asset Value per unit").

Determination of the Net Asset Value:

The net sub-fund assets will be calculated according to the following principles:

a) The full value of cash balances or cash deposits, bills of exchange and debit notes as well as trade receivables, accruals, cashdividends and interest which have been decided on or which accrue as described above but have not yet been received aretaken into account, unless it is in each case improbable that these amounts will be paid or received, in which case their value isdetermined by applying a discount which is considered appropriate in each case in order to reflect their actual value;

MEAG FlexConcept

56

Note 2 – Significant accounting and valuation policies (Continued)

b) Securities which are listed on a recognised stock exchange or traded on another organised market which is recognised,regulated and open to the public are valued at their latest available official closing prices, or if there are several such markets,based on their latest available official closing price on the most important market for the security concerned. If the latest availableprice does not appropriately reflect the true market value of the securities concerned, the value of these securities is calculatedas the predicted selling price by the Board of Managers using appropriate means (based on careful consideration and theprinciple of good faith);

c) Securities which are not listed or approved for trading on a recognised stock exchange and which are not traded on anotherorganised market are valued according to their presumed sale price, which is determined by the Board of Managers based oncareful consideration and the principle of good faith;

d) the liquidation value of futures and forward or option contracts which are not traded on stock exchanges or other organisedmarkets is deemed to be the net liquidation value, which is determined according to the principles laid down by the Board ofManagers on a uniform basis for each of the different types of contract. The liquidation value of futures and forward or optioncontracts which are traded on stock exchanges or other organised markets is based on the latest available settlement prices.However, if one of these futures and forward or option contracts cannot be liquidated on the date when the sub-fund Net AssetValue is determined, a value must be specified as the basis for determining the liquidation value of a relevant contract which isconsidered by the Board of Managers to be appropriate and reasonable;

e) Interest swaps are valued at their market value, which is determined with reference to the respective applicable interest ratecurves. Swaps which relate to indices and financial securities are valued at their market value which is determined according tothe respective index or financial security. The valuation of a swap agreement relating to an index or financial security is based onthe market value of this swap transaction, which is determined according to the procedure specified by the Board of Managersbased on the principle of good faith;

f) the formation expenses are being amortised over a period of five years;

g) all other securities and other assets are valued at their market value which is determined in good faith according to the procedurespecified by the Board of Managers.

The market value of securities and other investments which are denominated in a currency other than the Reference Currency, or in thecorresponding currency of the respective sub-fund or unit class, are converted into the reference currency or the respective sub-fund orunit class currency based on the most recent mean exchange rate. Profits and losses from foreign exchange transactions shallrespectively be added or subtracted.

The Fund did not carry out an earnings adjustment procedure for tax purposes and this is the reason why this annual report concludes noincome and expense equalisation compared to prior year.

The net sub-fund assets are reduced by distributions that are paid to the investors in the respective sub-fund.

If unit classes are formed, the resulting calculation of unit value is carried out separately for each unit class based on the above criteria.However, the compiling and allocation of the assets is always carried out for the sub-fund as a whole.

Note 3 – Subscription and redemption price

The initial subscription of units of the sub-fund MEAG FlexConcept - Basis is offered at the Initial Issue Price increased by a sales chargeof max. 2% (currently 0%).

The initial subscription of units of the sub-fund MEAG FlexConcept - Wachstum is offered at the Initial Issue Price increased by a salescharge of max. 4% (currently 0%).

The initial subscription of units of the sub-fund MEAG FlexConcept - EuroGrowth is offered at the Initial Issue Price increased by a salescharge of max. 4% (currently 0%).

The initial subscription of units of the sub-fund MEAG FlexConcept - EuroBond is offered at the Initial Issue Price increased by a salescharge of max. 2% (currently 0%).

MEAG FlexConcept

57

Notes to the Financial Statementsas at 30 September 2019 (Continued)

Note 3 – Subscription and redemption price (Continued)

The initial subscription of units of the sub-fund MEAG FlexConcept - BEST5USD * is offered at the Initial Issue Price. No sales charge ischarged for the MEAG FlexConcept - BEST5USD *.

Subsequent subscriptions are issued at a price which is based on the Net Asset Value per unit of the respective sub-fund and/or therespective unit class and is determined on each specified Valuation Day. The subscription price may be increased by any applicable salescharge, as stated in the corresponding annex for each sub-fund in the current Sales Prospectus.

No redemption fee will be charged for the sub-funds. The redemption price per unit of any class in a sub-fund is the Net Asset Value perunit of the relevant sub-fund and/or the respective class of units.

Note 4 – Subscription tax

In accordance with Art. 174 (1) of the Law of 17 December 2010, in the Grand Duchy of Luxembourg, the Fund assets are subject to a tax("Taxe d‘Abonnement") of 0.05% p.a. payable every quarter on the stated net sub-fund assets at the end of each quarter. In relation tofunds, sub-funds and unit classes which are reserved for institutional investors, the Taxe d‘Abonnement is 0.01% p. a. This tax is notapplicable on the part of the sub-fund assets which is invested in shares or units of Luxembourg investment funds which are alreadysubject to the Taxe d‘Abonnement according to the relevant provisions of Luxembourg law.

Note 5 – Fund fees and costs

In return for its management of the Fund, the Management Company receives remuneration of up to 2.00% p.a. for the sub-funds MEAGFlexConcept - Basis and MEAG FlexConcept - Wachstum and of up to 1.00% for the sub-funds MEAG FlexConcept - EuroGrowth andMEAG FlexConcept - EuroBond of the net sub-fund assets in respect of each sub-fund, which is calculated on each Business Day andpaid out in arrears on a quarterly basis.

In return for the management of the sub-fund MEAG FlexConcept - BEST5USD * the Management Company receives the followingremuneration:

Assets of the Sub-Fund MEAG Management Fee

Core slice: assets up to USD 100 million 0.30% per annumAssets between USD 100 - 250 million 0.25% per annumTop slice: assets above USD 250 million 0.20% per annum

During the financial year, the management fee of the sub-funds was:

– MEAG FlexConcept - Basis: 0.06%– MEAG FlexConcept - Wachstum: 0.13%– MEAG FlexConcept - EuroGrowth: 0.50%– MEAG FlexConcept - EuroBond: 0.09%– MEAG FlexConcept - BEST5USD *: 0.30%

The Investment Manager and the investment adviser, if any, will be paid an investment management fee out of the Management Fee.

The Management Company has appointed RBC Investor Services Bank S.A. ("RBC"), a public limited company under Luxembourg lawwith its registered head office at 14, Porte de France, L-4360 Esch-sur-Alzette, Grand Duchy of Luxembourg, as the Depositary andprincipal paying agent (the "Depositary") and as the Fund's central administrative agent and Registrar and Transfer Agent (collectively the"Central Administrative Agent") of the Fund.

The remuneration of the Depositary, Central Administrative Agent, and the Registrar and Transfer Agent (the "service fee") is on averageup to 0.07% p.a. for the MEAG FlexConcept - Basis, 0.07% for the MEAG FlexConcept - Wachstum, 0.11% for the MEAG FlexConcept -EuroGrowth, 0.07% for the MEAG FlexConcept - EuroBond and 0.46% for the MEAG FlexConcept - BEST5USD * of the proportionate netsub-fund assets. This service fee may however be higher or lower than the aforementioned value, depending on the net sub-fund assetsconcerned.


MEAG FlexConcept

58


Note 5 – Fund fees and costs (Continued)

In addition, the expenses and expenditure incurred by the Fund and/or the sub-funds may be charged.

Beside these fees and expenses, additional costs and expenses may be charged to the Fund as laid down in the Sales Prospectus.

The sub-fund MEAG FlexConcept - BEST5USD * applies a maximum charge in respect of the total annual fees and expenses, which isreflected in the maximum total expense ratio ("maximum TER p.a.") of 0.55% per annum.

in USD

a) the annual management fee to be paid by the sub-fund tothe Management Company, including the investmentmanagement fee to be paid by the Management Company tothe Investment Manager; 5,321.65

b) the annual fees to be paid out of the assets of the sub-fundto the Central Administrative Agent, the Registrar and TransferAgent, and the Depositary and Paying Agent; and 12,263.15

c) any Auditor and other fixed and variable operating andadministrative costs and expenses incurred by the sub-fundand any taxes on the fees described above as well as the taxed'abonnement, to be paid out of the assets of the sub-fund. 21,562.83

TOTAL 39,147.63

Amount representing the retrocession receivable by thesub-fund per fee capping arrangements. 29,381.77

The TER per annum is disclosed in section Information to the Unitholders.

Amount as at 30 September 2019 representing the retrocession receivable by the sub-fund per fee capping arrangements: USD 29,381.77

Note 6 – Securities prices, exchange rates, market rates

The assets of the sub-fund are valued on the basis of the following prices or market rates.

Prices or market rates perShares, bonds and derivatives as at 27 September 2019Other assets as at 27 September 2019

1 EUR = 1.085306 CHF1 EUR = 1.094500 USD

Note 7 – Futures

As at 30 September 2019, the following Futures contracts were outstanding:


DescriptionQuantity ofcontracts Commitment Maturity Currency

Unrealisedloss inEUR

DAX-INDEX PURCHASE 97 29,969,362.50 20/12/2019 EUR -235,650.00EURO BUND PURCHASE 196 34,145,160.00 06/12/2019 EUR -385,920.00

As at 30 September 2019, the unrealised loss of these transactions amounted to EUR -621,570.00.


MEAG FlexConcept

59


Note 7 – Futures (Continued)


DescriptionQuantity ofcontracts Commitment Maturity Currency


EURO STOXX 50 PR SALE -175 -6,177,500.00 20/12/2019 EUR -19,156.35

As at 30 September 2019, the unrealised loss of these transactions amounted to EUR -19,156.35.

The futures contracts were conducted with the following counterparties:

- J.P. Morgan Securities Plc- J.P. Morgan AG

Note 8 – Swaps

As at 30 September 2019, the following swap contracts were outstanding:


Counterparty Nominal Currency Received interest rate*Paid interest

rate in %* Maturity


Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 11.9 bp 0.1250 20/09/2024 -89,527.67Unicredit Bank AG 3,000,000 EUR EONIA OIS + 20.3 bp 0.2500 25/04/2022 -51,055.36Unicredit Bank AG 2,000,000 EUR EONIA OIS + 12.0 bp 0.6250 01/09/2025 -127,778.11Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 19.6 bp 1.0000 12/01/2026 -257,758.34Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 18.1 bp 0.3750 09/10/2024 -119,024.47Barclays Bank Plc Global 2,000,000 EUR EONIA OIS + 24.25 bp 0.1250 20/06/2026 -54,507.51Barclays Bank Plc Global 2,000,000 EUR EONIA OIS + 20.35 bp 0.2500 21/05/2027 -80,590.12Barclays Bank Plc Global 2,200,000 EUR EONIA OIS + 33.2 bp 3.5000 04/06/2021 -140,150.92Barclays Bank Plc Global 1,900,000 EUR EONIA OIS + 26.3 bp 0.5000 11/10/2022 -49,441.05Barclays Bank Plc Global 1,400,000 EUR EONIA OIS + 29.5 bp 0.6250 14/10/2021 -26,786.86Barclays Bank Plc Global 2,000,000 EUR EONIA OIS + 34.8 bp 0.3750 15/06/2023 -47,489.54Barclays Bank Plc Global 2,000,000 EUR EONIA OIS + 15.2 bp 0.8000 15/03/2022 -62,429.20Barclays Bank Plc Global 2,000,000 EUR EONIA OIS + 18.5 bp 3.8750 21/06/2021 -149,323.05Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 16.8 bp 0.5000 01/10/2021 -56,582.09Unicredit Bank AG 3,000,000 EUR EONIA OIS + 30.0 bp 1.7500 25/11/2024 -319,155.28Barclays Bank Plc Global 1,800,000 EUR EONIA OIS + 16.2 bp 0.0250 24/01/2022 -19,746.15Barclays Bank Plc Global 2,000,000 EUR EONIA OIS + 23.7 bp 0.3750 04/04/2023 -53,063.71Barclays Bank Plc Global 2,000,000 EUR EONIA OIS + 14.4 bp 0.2500 23/02/2024 -62,736.09Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 29.8 bp 1.0000 15/05/2026 -247,809.92Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 17.3 bp 0.7500 21/01/2025 -186,401.23Unicredit Bank AG 3,000,000 EUR EONIA OIS + 16.0 bp 1.2500 27/10/2025 -304,455.29

* As at 30 September 2019, the EONIA (Euro OverNight Index Average) amounted to –0.451%.

As at 30 September 2019, the unrealised loss of these transactions amounted to EUR -2,505,811.96.

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Note 8 – Swaps (Continued)


Counterparty Nominal Currency Received interest rate*Paid interest

rate in %* Maturity


Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 3 bp 2.0000 15/08/2023 -304,563.37Barclays Bank Plc Global 2,500,000 EUR EONIA OIS + 14.6 bp 2.0000 15/07/2024 -297,799.68Barclays Bank Plc Global 2,000,000 EUR EONIA OIS + 18 bp 2.0000 28/08/2020 -43,500.46Barclays Bank Plc Global 2,000,000 EUR EONIA OIS + 21.7 bp 0.3750 29/10/2020 -15,476.35Barclays Bank Plc Global 2,500,000 EUR EONIA OIS + 34.6 bp 4.0000 23/03/2022 -267,283.33Unicredit Bank AG 2,500,000 EUR EONIA OIS + 30.0 bp 0.3750 01/09/2022 -50,616.12Barclays Bank Plc Global 2,500,000 EUR EONIA OIS + 29.25 bp 0.6250 19/10/2022 -72,877.57Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 18.5 bp 3.8750 21/06/2021 -223,984.58Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 15.2 bp 0.8000 15/03/2022 -93,643.80Barclays Bank Plc Global 2,000,000 EUR EONIA OIS + 12.3 bp 3.5000 18/01/2022 -185,730.35Unicredit Bank AG 2,000,000 EUR EONIA OIS + 8.2 bp 1.7500 25/11/2024 -236,035.07Unicredit Bank AG 3,000,000 EUR EONIA OIS + 33.5 bp 0.3750 15/06/2023 -72,725.52Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 23.1 bp 0.2000 27/04/2023 -62,604.90Barclays Bank Plc Global 3,000,000 EUR EONIA OIS + 23.7 bp 0.3750 04/04/2023 -79,595.55Barclays Bank Plc Global 4,000,000 EUR EONIA OIS + 29.8 bp 1.0000 15/05/2026 -330,413.23Barclays Bank Plc Global 5,000,000 EUR EONIA OIS + 19.0 bp 0.3750 13/09/2024 -193,670.15Barclays Bank Plc Global 5,000,000 EUR EONIA OIS + 35.3 bp 1.3000 31/10/2026 -523,994.92

* As at 30 September 2019, the EONIA (Euro OverNight Index Average) amounted to -0.451%.

As at 30 September 2019, the unrealised loss of these transactions amounted to EUR -3,054,514.95.


Counterparty Nominal Currency

Paymentmade

by the sub-fund(in %)

Paymentreceived

by the sub-fund(in %) Maturity

Unrealisedloss inUSD

New Reinsurance CompanyLtd 2,227,502 USD 0.000 0.9261 30/09/2019 -4,079.31

As at 30 September 2019, the unrealised loss of these transactions amounted to USD -4,079.31.

The swap contracts were conducted with the following counterparties:

Barclays Bank PlcUnicredit Bank AGNew Reinsurance Company Ltd

Note 9 – Transaction Costs

The following transaction costs were incurred on the purchase and sales of securities for the financial year from 1 October 2018 to30 September 2019:

– MEAG FlexConcept - Basis: 0.00 EUR– MEAG FlexConcept - Wachstum: 0.00 EUR– MEAG FlexConcept - EuroGrowth: 30,615.08 EUR– MEAG FlexConcept - EuroBond: 0.00 EUR– MEAG FlexConcept - BEST5USD *: 0.00 EUR


* MEAG FlexConcept - BEST5USD pays within the Total Return Swap Transactions to the Counterparty, which is a related entity to the Management Company, the Investment

Manager and the Index Owner, on a monthly basis a variable amount linked to the USD-1M-OIS Interest Rate in exchange for the index return of the corresponding period.

Beyond that, the Index contains a negative drift of 35 basis points per annum, representing the costs associated with the implementation of the index investment strategy by the

use of Total Return Swap Transactions. Such costs are paid to the Counterparty which is a related entity to the Management Company, the Investment Manager and the Index

Owner.

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61


Note 10 – Disclosure in accordance with the Guidelines on exchange-traded index funds and other UCITS themes of the EuropeanSecurities and Markets Authority (ESMA Guidelines)

MEAG FlexConcept – Basis:

During the financial year, no techniques for efficient portfolio management were used for the sub-fund.

The underlying exposure generated by derivatives (item 40a of the Guidelines) was EUR 50,300,000.00 (based on the nominal valueconsideration as at the reporting date).

During the financial year under review, the sub-fund entered into derivative contracts with the following counterparties: Barclays BankIreland Plc, Barclays Bank Plc and UniCredit Bank AG.

There was no collateral credited against the counterparty risk borne by the sub-fund.

MEAG FlexConcept – Wachstum:


The underlying exposure generated by derivatives (item 40a of the Guidelines) was EUR 114,114,522.50 (based on the nominal valueconsideration as at the reporting date).

During the financial year under review, the sub-fund entered into derivative contracts with the following counterparties: Barclays BankIreland Plc, Barclays Bank Plc, UniCredit Bank AG and J.P. Morgan AG ( Futures).


MEAG FlexConcept – EuroGrowth:


The underlying exposure generated by derivatives (item 40a of the Guidelines) was EUR -6,177,500.00 (based on the nominal valueconsideration as at the reporting date).

During the financial year under review, the sub-fund entered into derivative contracts with the following counterparty: J.P. Morgan AG.


MEAG FlexConcept – EuroBond:


MEAG FlexConcept – BEST5USD *:


The underlying exposure generated by derivatives (item 40a of the Guidelines) was USD 2,227,501.86 (based on the nominal valueconsideration as at the reporting date).

During the financial year under review, the sub-fund entered in derivative contracts with the following counterparty: New ReinsuranceCompany Ltd Zurich.



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62


Note 11 – Dividend distribution

The amount of the distribution for the previous financial year of the sub-fund MEAG FlexConcept - EuroBond amounted to EUR 1.95 perunit and has been paid to the unitholders as at 13 December 2018.

The sub-funds MEAG FlexConcept - Basis, MEAG FlexConcept - Wachstum, MEAG FlexConcept - EuroGrowth and MEAG FlexConcept- BEST5USD * reinvest in the sub-fund assets the interest, dividends and other earnings which have accrued to the sub-fund during thefinancial year and are not used to cover costs - taking account of the associated earnings adjustment - and the capital gains (plough-back).

Note 12 – Securities Financing Transactions Regulation

REGULATION (EU) 2015/2365 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 25 November 2015on Transparency of Securities Financing Transactions of Reuse and amending Regulation (EU) Nº 648/2012

Over-The-Counter (OTC) (in USD)

Global Data (in USD)

Total Return Swap - MEAG FlexConcept - BEST5USD *

Sub-Fund Notional Amount Total Net Assets (%) of AssetsMEAG FlexConcept - BEST5USD * 2,227,501.86 2,212,825.08 100.66Total 2,227,501.86 2,212,825.08

Concentration data

Ten largest collateral issuersAmount ofCollateral

Not Applicable -Total -

Top 10 Counterparties Notional AmountNew Reinsurance Company Ltd 2,227,501.86Total 2,227,501.86

Aggregate transaction data for Total Return Swaps broken down according to the below categories

Type of CollateralAmount ofCollateral

CASH -OTHERS -EQUITIES -BONDS -Total -

Currencies of Cash CollateralAmount ofCollateral

Not Applicable -Total -

Maturity Tenor of the Total Return Swap Notional AmountLess than one day -One day to one week -One week to one month 2,227,501.86

One month to three months -Three months to one year -Above one year -Open maturity -Total 2,227,501.86


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Note 12 – Securities Financing Transactions Regulation (Continued)

Country in which the counterparties are established Notional AmountSwitzerland 2,227,501.86Total 2,227,501.86

Settlement and clearing Overall valuationBilateral 2,227,501.86Total 2,227,501.86

Data on Reuse of Collateral

Reuse of CollateralAmount ofCollateral

Share of collateral received that is reused NoneCash collateral reinvestment returns to the collective investment undertaking None

SafeKeeping of collateral received by the collective investment undertaking as part of the Total Return Swap

Name of the Custodian

Amount ofcollateral asset

safe-keptNot Applicable -

SafeKeeping of collateral granted by the collective investment undertaking as part of the Total Return Swap

Type of accountsOther accounts

Data return and cost for Total Return Swap (in USD)

Sub-FundNet Realised

GainInterest on

SwapsMEAG FlexConcept - BEST5USD * 71,812.58 -1,848.00Total 71,812.58 -1,848.00

Additional information relating to the sub-fund MEAG FlexConcept - BEST5USD *

During the financial year, collateral amounts were below the Minimum Transfer Amount agreed with the relevant counterparty.

The above disclosure of swaps collateral data shows the complete collateral situation for all OTC for any counterparty for the MEAGFlexConcept - BEST5USD *. As a global market practice, collateralization process is done against the net exposure of OTC.

Within these Total Return Swap Transactions, the sub-fund MEAG FlexConcept - BEST5USD * pays to the Counterparty, which is arelated entity to the Management Company, the Investment Manager and the Index Owner, on a monthly basis a variable amount linked tothe USD-1M-OIS Interest Rate in exchange for the index return of the corresponding period, which might be positive or negative.

Beyond that, the Index contains a negative drift of 35 basis points per annum, representing the costs associated with the implementation ofthe index investment strategy by the use of Total Return Swap Transactions. Such costs are paid to the Counterparty which is a relatedentity to the Management Company, the Investment Manager and the Index Owner.

The sub-fund MEAG FlexConcept - BEST5USD * will not make use of securities or commodities lending and securities or commoditiesborrowing, repurchase or reverse repurchase transactions, buy-sell back transactions or sell-buy back transactions or margin lendingtransactions.

Additional information relating to the sub-funds MEAG FlexConcept - Basis, MEAG FlexConcept - Wachstum, MEAGFlexConcept - EuroGrowth and MEAG FlexConcept - EuroBond

During the year to which this Report relates, the sub-funds MEAG FlexConcept - Basis, MEAG FlexConcept - Wachstum, MEAGFlexConcept - EuroGrowth and MEAG FlexConcept - EuroBond did not engage in transactions which fall within the scope of Regulation(EU) Nº 2015/2365 of the European Parliament and Council of 25 November 2015 on Transparency of Securities Financing Transactionsand of Reuse ("SFTR"), amending Regulation (EU) Nº 648/2012. Accordingly, no global, concentration or transaction data, or informationon the reuse or safekeeping of collateral is required to be reported.


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64


Note 13 – Events occurred during the year

On 17 October 2018, a new sub-fund, MEAG FlexConcept - BEST5USD was launched.

Note 14 – Subsequent Events

MEAG FlexConcept - BEST10USD has not been launched yet.

The Sales Prospectus was updated in November 2019.

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65


Information to the Unitholders (Unaudited)MEAG FlexConcept is an investment fund (Fonds Commun de Placement) with several sub-funds that is set up under Luxembourg law asan "umbrella fund". It has been established for an indefinite period of time and is registered with the Trade and Companies Register ofLuxembourg (RCSL) under number K 306. The Fund falls within the scope of Part I of the Law of 17 December 2010.

FlexKonzept was renamed MEAG FlexConcept with effect from 31 December 2015.

The Fund's financial year begins on 1 October and ends on 30 September each year.

The Sales Prospectus including the Management Regulations, the Key Investor Information, and the latest annual and semi-annualreports for the Fund as well as the current issue and redemption prices and further information about the Fund are published online atwww.meag.com, and printed versions of these can be obtained free of charge at the registered office of the Management Company

MEAG Luxembourg S.à r.l.15 rue Notre DameL-2240 LuxembourgGrand Duchy of Luxembourg

The issue and redemption price of the sub-fund units, the Management Regulations, the Sales Prospectus and the key investorinformation can be obtained without charge from the Management Company, the Depositary, the paying agents and the sales agents.

If legally required or if it is so determined by the Management Company, the issue and redemption price of the sub-funds are eachpublished in a daily newspaper in those countries designated by the Management Company where the units are publicly marketed.

At the latest 4 months after the end of the Fund's financial year, the Management Company will provide an audited annual report whichprovides information about the net sub-fund assets, their management, and the results achieved.

At the latest 2 months after the end of the first half of each financial year of the Fund, the Management Company will provide an unauditedsemi-annual report which provides information about the net sub-fund assets, their management, and the results achieved during thecorresponding half year.

The Fund's annual report and semi-annual report can be obtained by investors without charge from the Management Company, thedepositary, the sales agents and the paying agents.

In addition, the documents listed below are available for viewing at the Management Company's registered office during normal businesshours:

(a) the Management Company's Articles of Association;(b) the investment management contract;(c) the service contract for the appointment of the Central Administrative Agent and the Registrar and Transfer Agent; and(d) the Depositary Bank and Principal Paying Agent Agreement.

Total Expense Ratio

The Total Expense Ratio shown below comprises the following fees and expenses:

(a) the annual management fee to be paid by the sub-fund to the Management Company, including the investment management fee tobe paid by the Management Company to the Investment Manager,(b) the annual fees to be paid out of the assets of the sub-fund to the Central Administrative Agent, the Registrar and Transfer Agent,and the Depositary and Paying Agent, and;(c) any Auditor and other fixed and variable operating and administrative costs and expenses incurred by the sub-fund and any taxeson the fees described above as well as the taxe d’abonnement, to be paid out of the asset of the sub-fund.

Total Expense Ratio:

. MEAG FlexConcept - Basis: 0.19%

. MEAG FlexConcept - Wachstum: 0.25%

. MEAG FlexConcept - EuroGrowth: 0.81%

. MEAG FlexConcept - EuroBond: 0.19%

. MEAG FlexConcept - BEST5USD *: 0.55%


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66

Remuneration

The following information – in particular the remuneration and how it divides up and the number of employees – is based on the annualreport of MEAG Luxembourg S.à r.l. (hereinafter "MEAG") from 31 December 2018. The remuneration does not include the employer'smandatory contribution to the statutory social welfare scheme.

(in EUR)Total remuneration paid by MEAG in the last business year 323,215

Of which fixed remuneration 262,325

Of which variable remuneration 60,890

Remuneration directly paid by the fund 0

Carried interests paid 0

Number of MEAG beneficiaries as at 31 December 2018 3

more than

(in EUR)

less than

(in EUR)

Total remuneration paid by MEAG in the last business year 296,000 356,000

Of which senior management 150,500 180,500

Of which other risk takers 0 0

Of which staff with control function 146,500 176,500

Of which staff falling into the same remuneration bracket 0 0

Our remuneration policy provides for a fixed and a variable remuneration component. The variable component is based on theachievement of individual and company objectives, and long-term performance objectives. At the same time, the remuneration system isstructured in such a way that it does not offer any incentives to enter into inappropriate risk positions. The fixed and variable remunerationcomponents stand in an appropriate relation to one another.

The remuneration policy is decided upon by the Management Company's Board of Managers in its supervisory capacity. The Board ofManagers determines the general principles of the remuneration policy, reviews them at least once a year and is responsible for theirimplementation and monitoring. At least once a year, a central and independent internal review determines whether the remunerationpolicy has been implemented in line with the remuneration regulations and procedures determined by the Board of Managers in itssupervisory capacity.

MEAG's remuneration policy was adjusted to meet the requirements of Directive 2014/91/EU of the European Parliament and the Councilof 23 July 2014 on 2 May 2017, 6 October 2017, 2 May 2018 and 28 May 2019. The annual review by the Board of Managers showed thatthe remuneration policy was implemented in accordance with the remuneration regulations and procedures.

MEAG is responsible for investing the sub-funds assets. However, MEAG may appoint one or more investment managers or use theservices of investment advisers in the day-to-day implementation of the investment policy. MEAG has accordingly appointed MEAGMUNICH ERGO Kapitalanlagegesellschaft mbH, Am Münchner Tor 1, 80805 Munich, Federal Republic of Germany, as the investmentmanager ("Investment Manager") of the sub-funds, acting under the supervision and the responsibility of MEAG.

The following information – in particular the remuneration and how it divides up and the number of employees – is based on the annualreport of MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH from 31 December 2018. The remuneration does not include theemployer's mandatory contribution to the statutory social welfare scheme.

Total remuneration paid in the last business year EUR 11,522,421.75

Of which fixed remuneration EUR 8,095,126.37

Of which variable remuneration EUR 3,165,110.00

Remuneration directly paid by the fund EUR 0.00

Carried interests paid EUR 0.00

Average number of beneficiaries as at 31 December 2018 EUR 89

Total remuneration paid to risk takers in the last business year EUR 1,372,914.03

Of which senior management EUR 1,372,914.03

Of which other risk takers EUR 0.00

Of which staff with control function EUR 0.00

Of which staff falling into the same remuneration bracket EUR 0.00

The delegate, MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH, is subject to regulatory requirements on remuneration disclosurefor its staff to whom investment management activities have been delegated that are equally as effective as those under Article 69(3)(a) ofthe UCITS Directive.

The information on remuneration disclosed above is published by the delegate for the purposes of fulfilling itsobligations under Article 69(3)(a) of the UCITS Directive.

The Management Company or the UCITS itself do not pay any direct remuneration to the identified staff of the Investment Manager, whichis linked to the delegated portfolio.

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67

Information to the Unitholders (Unaudited) (Continued)

Description of how the remuneration and any other benefits were calculated

In addition to a fixed compensation component, our risk takers also have a variable remuneration component that is linked to individualachievements, company performance and long-term performance goals. The compensation system is designed so that it does not provideincentives to take on disproportionately high risk positions. Fixed and variable remuneration components are in reasonable proportion.

Results of the annual review of the remuneration policy

The compensation system has been reviewed and found appropriate.

Information on material changes to the defined compensation policy

The compensation system of the Investment Manager was not changed in 2018.

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68

Information to the Unitholders (Unaudited) (Continued)

Remuneration (Continued)

Additional Information for Investors in the Federal Republic of Germany

The Management Company has not submitted a notification on marketing of units of the sub-funds MEAG FlexConcept –EuroGrowth, MEAG FlexConcept – EuroBond, MEAG FlexConcept – BEST5USD and MEAG FlexConcept – BEST10USD to theFederal Financial Supervisory Authority in Germany pursuant to § 310 KAGB, therefore, these sub-funds may not be publiclymarketed in the Federal Republic of Germany.

MEAG MUNICH ERGO Kapitalanlagegesellschaft mbHAm Münchner Tor 180805 MunichFederal Republic of Germany

has assumed the role of information agency in the Federal Republic of Germany (the "information agency").

The Sales Prospectus including the Fund's Management Regulations, the Key Investor Information, and the annual and semi-annualreports as well as other Fund documents can be obtained free of charge in paper form from the information agency. The issue andredemption prices can also be requested from the information agency free of charge. In addition, the contracts specified in Chapter 21"Publications" can be inspected and/or obtained free of charge at the information agency.

The issue and redemption prices can also be requested from the information agency free of charge. In addition, the contracts specified inthe Sales Prospectus, Chapter 21 "Publications" can be inspected and/or obtained free of charge at the information agency.

The Sales Prospectus including the Management Regulations, the Key Investor Information and the latest reports, issue and redemptionprices and further information about the Fund are published online at www.meag.com (section: Institutional Clients, Product World, MEAGFlexConcept) and a printed version of these can be obtained free of charge at the registered office of the Management Company inLuxembourg or the information agency in the Federal Republic of Germany (MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH, AmMünchner Tor 1, 80805 Munich, Federal Republic of Germany).

Applications for the issue, redemption or conversion of units which are permitted to be marketed in Germany must be submitted to theunitholder's respective depositary bank.

Redemption proceeds, any distributions and other payments to the investors are forwarded by the Depositary to the unitholder'srespective depositary bank.

Notifications to investors are published in the Federal Republic of Germany in the Börsen-Zeitung in Frankfurt am Main.

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69

Management and Administration of the Fund

Management Company

MEAG Luxembourg S.à r.l.15, Rue Notre DameL-2240 LuxembourgGrand Duchy of Luxembourg

Board of Managers of the Management Company

Sandra MüllerManaging Director15, Rue Notre DameL-2240 LuxembourgGrand Duchy of Luxembourg

Harald Wolfgang LechnerManaging DirectorMEAG MUNICH ERGO Kapitalanlagegesellschaft mbHAm Münchner Tor 1D-80805 MunichFederal Republic of Germany

Rainer SchuManaging DirectorERGO Life S.A.15, rue de FlaxweilerL-6776 GrevenmacherGrand Duchy of Luxembourg

Conducting Officer

Sandra Müller15, Rue Notre DameL-2240 LuxembourgGrand Duchy of Luxembourg

Mireille Kiffer (from 1 April 2019)15, Rue Notre DameL-2240 LuxembourgGrand Duchy of Luxembourg

Rainer Schu (until 31 March 2019)15, rue de FlaxweilerL-6776 GrevenmacherGrand Duchy of Luxembourg

Investment Manager

MEAG MUNICH ERGO Kapitalanlagegesellschaft mbHAm Münchner Tor 1D-80805 MunichFederal Republic of Germany

Depositary and Paying Agent in Luxembourg

RBC Investor Services Bank S. A.14, Porte de FranceL-4360 Esch-sur-AlzetteGrand Duchy of Luxembourg

Central Administrative Agent and Registrar and Transfer Agent

RBC Investor Services Bank S. A.14, Porte de FranceL-4360 Esch-sur-AlzetteGrand Duchy of Luxembourg

Information Agency in the Federal Republic of Germany

MEAG MUNICH ERGO Kapitalanlagegesellschaft mbHAm Münchner Tor 1D-80805 MunichFederal Republic of Germany

Auditor of the Fund and the Management Company

KPMG Luxembourg, Société coopérative39, Avenue John F. KennedyL-1855 LuxembourgGrand Duchy of Luxembourg

Supervisory Authority

Commission de Surveillance du Secteur Financier283, route d’ArlonL-1150 LuxembourgGrand Duchy of Luxembourg

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70

MEAG Luxembourg S.a r.l.

15, Rue Notre Dame

L-2240 Luxembourg Grand Duchy of Luxembourg

www.meag.com •

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