for the year ended 30 june 2017 hedge invest international ... · 6/30/2017 · hedge invest...

Audited Financial Statements For the year ended 30 June 2017 Hedge Invest International Funds plc

HEDGE INVEST INTERNATIONAL FUNDS plc

CONTENTS Page

General information 1 Background 3 Investment Manager’s report 5 Directors’ report 18 Report of the Depositary to the Shareholders 21 Independent Auditor’s report 22 Statement of Financial Position 24 Statement of Comprehensive Income 28 Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares 30 Statement of Cash Flows 32

Notes to the financial statements 34

Schedules of investments (unaudited) 87

Other information (unaudited) 122 Remuneration disclosure (unaudited) 134


GENERAL INFORMATION

Board of Directors

Sub-Investment Manager David McGeough (Irish resident)1

(HI Africa Opportunities Fund) Teddy Otto (Irish resident)1 (from 1 April 2017) John Skelly (Irish resident)1 Principia Investment Management Limited Francesco Rovati (Italian resident)2 606-609 Salisbury House 29, Finsbury Circus 1Independent and non-executive. London EC2M 7AQ 2Non-executive. United Kingdom Company Secretary (up to 31 March 2017) Carne Global Financial Services Limited

Sub-Sahara Capital Management LP

2nd Floor, Block E

23200 North Pima Road Iveagh Court

Scottsdale, Arizona, 85255

Harcourt Road

United States Dublin D02 YT22

Ireland Sub-Investment Manager

(HI Sibilla Macro Fund)

Administrator, Registrar and Transfer Agent

Sibilla Capital Management LLC

J.P. Morgan Administration Services (Ireland) Limited

1700 Broadway JPMorgan House

New York, NY 10019

International Financial Services Centre

United States Dublin D01 W213

Ireland

Registered Office

2nd Floor, Block E

Promoter, Investment Manager and Distributor

Iveagh Court Hedge Invest SGR P.A.

Harcourt Road

Via Vittor Pisani 22

Dublin D02 YT22 20124 Milan

Ireland

Italy

Legal Advisers Sub-Investment Manager

Dechert (HI Numen Credit Fund and HI Numen Bear Rates Fund)

3 George's Dock

Numen Investments Limited

International Financial Services Centre Portomaso Tower

Dublin D01 X5X0

St Julians STJ 4011

Ireland Malta

Depositary

Numen Capital LLP

J.P. Morgan Bank (Ireland) plc 2nd Floor JPMorgan House 150 Brompton Road International Financial Services Centre London SW3 1HX

Dublin D01 W213

United Kingdom

Ireland

Sub-Investment Manager Independent Auditors (HI Principia Fund)

KPMG

(from 1 March 2017)

Chartered Accountants, Statutory Audit Firm Principia Investment Management Limited

1 Harbourmaster Place

606-609 Salisbury House

International Financial Services Centre 29, Finsbury Circus

Dublin D01 F6F5

London EC2M 7AQ

Ireland United Kingdom

Swiss Representative and Paying Agent

(up to 28 February 2017)

Société Générale, Paris, Zürich Branch Oakley Capital Management Limited

Talacker 50, P.O. Box 5070

3 Cadogan Gate

CH-8021 Zürich London SW1X 0AS Switzerland United Kingdom

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GENERAL INFORMATION (continued) The prospectus, the constitution, the Key Investor Information Documents (“KIID”), the annual and semi-annual report as well as a list containing all purchases and sales which have been made during the reporting year for the Company can be obtained free of charge from the Swiss Representative, Société Générale, Paris, Zürich Branch, Talacker 50, P.O. Box 5070, CH–8021 Zürich, Switzerland.

The information contained in this report is historical and not necessarily indicative of future performance. The performance data contained in this report does not take account of any commissions or costs charged when subscribing and redeeming shares.

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BACKGROUND Hedge Invest International Funds plc (the “Company”) is an open-ended investment company incorporated in Ireland on 10 June 2010 with variable capital organised under the laws of Ireland pursuant to the Companies Act 2014, the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (the “UCITS Regulations”), the Central Bank (Supervision and Enforcement) Act 2013 (Section 48 (1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the "Central Bank UCITS Regulations") and with registration number 485407. Hedge Invest SGR P.A. was the promoter of the Company as at year ended 30 June 2017. The Company is structured as an umbrella fund in that different funds (each a “Fund”, collectively the “Funds”) thereof may be established with the prior approval of the Central Bank of Ireland (“the Central Bank”) in accordance with the Central Bank UCITS Regulations. In addition, each Fund may have more than one share class allocated to it. The shares of each class allocated to a Fund will rank pari passu with each other in all respects except as to all or any of the following:

• currency of denomination of the class; • currency hedging; • dividend policy; • the level of fees and expenses to be charged; and • the minimum subscription, minimum additional subscription, minimum holding and minimum redemption applicable.

The assets of each Fund are separate from one another and are invested in accordance with the investment objectives, policies and restrictions applicable to each such Fund. The share capital of each Fund shall at all times equal its Net Asset Value (“NAV”). There were six Funds in operation at 30 June 2017 comprising the HI Numen Credit Fund, HI Principia Fund, HI Sibilla Macro Fund, HI Core UCITS Fund, HI Africa Opportunities Fund and HI Numen Bear Rates Fund.

Total expense ratio The annualised total expense ratio (“TER”) shown below expresses the sum of all costs and commissions (including and excluding performance fees) charged to each Fund’s assets in line with the Company’s prospectus for the purposes of calculating the NAV, as a percentage of the average Fund assets during the year.

Fund Name

Year ended 30 June 2017 Annualised

TER (%) (including performance fees)


TER (%) (excluding performance fees)





HI Numen Credit Fund EUR A Shares 1.24% 1.24% 1.20% 1.20% EUR DM Shares 1.20% 1.20% 1.20% 1.20% EUR FOF Shares 1.99% 1.99% 1.94% 1.94% EUR I Initial Shares 1.25% 1.25% 1.20% 1.20% EUR I Shares 1.72% 1.72% 1.70% 1.70% EUR M Shares 0.26% 0.26% 0.19% 0.19% EUR R Shares 1.99% 1.99% 1.95% 1.95% USD I2 Shares 1.70% 1.70% 1.76% 1.76% USD R Shares 1.96% 1.96% 1.95% 1.95% CHF R Shares 1.99% 1.99% 1.95% 1.95% EUR D Shares 2.19% 2.19% 2.16% 2.16% USD D Shares 2.17% 2.17% 2.15% 2.15% CHF D Shares 2.17% 2.17% 2.14% 2.14% CHF DM2 Shares 1.53% 1.53% 1.51% 1.51% EUR DM2 Shares 1.50% 1.50% 1.50% 1.50% EUR I2 Shares 1.73% 1.73% 1.71% 1.71% USD DM2 Shares 1.53% 1.53% 1.54% 1.51% GBP I2 Shares 1.72% 1.72% 1.81% 1.71% GBP DM2 Shares 1.52% 1.52% 1.62% 1.51% GBP M Shares1 0.10% 0.10% 0.18% 0.18%

1On 11 November 2016, GBP M Share class was fully redeemed for HI Numen Credit Fund.

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BACKGROUND (continued) Total expense ratio (continued)

Fund Name









HI Principia Fund EUR DM Shares 2.80% 1.35% 1.90% 1.39% EUR FOF Shares 3.58% 2.35% 2.86% 2.38% EUR I Shares 3.08% 1.85% 2.58% 1.87% EUR R Shares 3.49% 2.35% 2.86% 2.38% USD DM Shares 3.25% 1.35% 2.34% 1.42% USD R Shares 3.88% 2.35% 2.94% 2.38% CHF R Shares 3.21% 2.35% 2.60% 2.38% HI Sibilla Macro Fund EUR DM Shares 1.41% 1.41% 2.37% 1.41% EUR FOF Shares 2.42% 2.42% 3.70% 2.42% EUR R Shares 2.42% 2.42% 3.60% 2.42% USD R Shares 2.42% 2.42% 3.66% 2.42% CHF DM Shares 1.42% 1.42% 3.18% 1.43% CHF R Shares 2.41% 2.41% 3.56% 2.41% HI Core UCITS Fund EUR DM Shares 1.09% 1.09% 0.89% 0.89% EUR I Shares 1.81% 1.81% 1.61% 1.61% EUR R Shares 2.31% 2.31% 2.10% 2.10% USD DM Shares 1.17% 1.10% 0.95% 0.95% USD R Shares 2.30% 2.30% 2.10% 2.10% CHF DM Shares1 1.12% 1.12% 0.82% 0.82% HI Africa Opportunities Fund EUR DM Shares 2.65% 2.65% 3.78% 2.17% EUR FOF Shares 3.55% 3.55% 4.70% 2.88% EUR I Shares 3.06% 3.06% 3.46% 2.34% EUR D Shares 3.64% 3.64% 7.22% 2.91% USD D Shares 3.25% 3.25% 5.01% 3.00% USD DM Shares 2.45% 2.45% 3.97% 2.22% CHF D Shares2 3.63% 3.63% 3.93% 2.94% HI Numen Bear Rates Fund EUR FOF Shares3 2.82% 2.82% - - EUR D Shares4 2.93% 2.93% - -

1On 30 May 2017, CHF DM Share class fully redeemed for HI Core UCITS Fund.

2On 28 April 2017, CHF D Share class was fully redeemed for HI Africa Opportunities Fund. 3On 7 April 2017, EUR FOF Share class was launched for HI Numen Bear Rates Fund. 4On 12 May 2017, EUR D Share class was launched for HI Numen Bear Rates Fund.

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INVESTMENT MANAGER’S REPORT HI Numen Credit Fund HI Numen Credit Fund's objective is to achieve a 6% return with volatility of 3.5%-4% through different strategies: low volatility selected longs, opportunistic trading of volatile super liquid credit instruments, longs and shorts in special situations with asymmetric risk/reward (buy back, mergers, restructuring). Performance review

HI Numen Credit Fund EUR I share class decreased by 2.71% on a net basis from the start of July 2016 to the end of June 2017. The EUR I class is used for representative purposes. HI Numen Credit Fund - class EUR I

Date Class EUR I NAV Class EUR I Monthly return Total Fund AUM (EUR)

29/07/2016 115.31 -0.23% 949,221,344.18

31/08/2016 115.50 0.16% 901,418,734.90

30/09/2016 114.90 -0.52% 886,054,054.05

28/10/2016 115.06 0.14% 846,175,130.98

30/11/2016 115.40 0.30% 834,862,512.34

30/12/2016 112.46 -2.55% 683,205,826.10

31/01/2017 113.29 0.74% 679,687,445.81

28/02/2017 112.46 -0.73% 653,111,666.62

31/03/2017 111.89 -0.51% 610,808,391.85

28/04/2017 111.94 0.04% 585,541,858.48

31/05/2017 111.84 -0.09% 472,463,657.70

30/06/2017 112.45 0.55% 460,153,422.12

Performance of the year By month, the net return of the fund’s portfolio was as follows: July 2016: -0.23%. Following last month’s highly unexpected Brexit result, markets regained confidence around central banks’ ability to intervene further and stem any sort of negative contagion effects. The biggest contribution this month came from the Financials space, and in particular from our opportunistic long exposure in Italian financials ahead of the European Bank Stress tests and specifically Intesa. Overall the financials strategy generated c. +0.2% for the month. The largest negative contribution came from our short exposures in the Macro space which generated c. -0.4% for the month and, more specifically, from our positioning in Italian and Spanish sovereign CDS which we continue to believe are the most overpriced and, subsequently most vulnerable areas. Finally the Corporate strategy was rather muted for the month which, along with hedges, generated c. -0.05% for the month. August 2016: +0.16%. August was the quietest month of the year to date, a testament perhaps to market tiredness post the relentless volatility of the last few months. Our best performing strategy was Corporates which generated c. +0.13% at the portfolio level. This was mainly driven by positive developments in some of our event names, namely Syngenta and SAB Miller. Financials too generated a positive performance contributing c. +0.08% at the portfolio level and this was mainly driven by our exposure to Monte which we continue to believe has an attractive risk/return profile across the capital structure ahead of the shareholder vote on Sep 28th. Sovereigns were marginally negative for the month delivering c. -0.05% due to our positioning in UK CDS and other UK shorts in the financial sector. September 2016: -0.52%. The majority of the losses came from idiosyncratic long positions and hedges. Financials generated a -0.5% negative performance, mainly driven by a repricing of subordinated bonds of Italian banks and in particular Monte Paschi and Banca Carige, due to the increasing uncertainty on the political side and consequently on the execution of the capital increases in the pipeline for Italian banks. We have specific hedges on Italian risk, mainly via puts on btps (which are trading at incredibly expensive levels) in case the political situation worsens and ECB actions are not enough to contain the spillover. All other strategies were more or less flat during the month, with small gains in sovereigns offset by marginal losses in hedges. October 2016: +0.14%. The majority of the gains came from financials and hedges, in particular our longs in Italian subordinated bonds and shorts on Bund and sterling. Sovereigns and hedges returned around +0.1% at fund level, as we were positioned for sterling weakness via options which benefited from the hardening tone of the UK government on the Brexit process. Short Bund positions via options also benefited from increasing concern that ECB QE will need to be tweaked due to scarcity issues and an emerging consensus that we are probably at lower bounds for rates, which will have the opposite effect of hurting banks and tightening credit.

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INVESTMENT MANAGER’S REPORT (continued) HI Numen Credit Fund (continued) Performance of the year (continued) Financials were the main driver for the monthly return, following positive news on the recapitalization process of certain weak Italian banks contributing +0.15% at fund level. Corporates had a negative contribution of around (0.1%) due to increasing uncertainty surrounding a few US M&A transactions and related antitrust issues. November 2016: +0.30%. The majority of gains came from hedges and event driven strategies, in particular our shorts on Italian BTPs via puts and a long stock/short credit position on a US pharma M&A deal. Sovereigns and hedges returned around +0.35% at the fund level. The two main drivers were: 1) puts on BTPs, which benefitted from the prereferendum widening in peripheral spread and the general fixed income sell off during the month, and 2) tactical trading on S&P and US treasury futures around the US presidential election. Corporates returned around +0.25% on the month, driven by a recovery in the price of Rite Aid stock thanks to positive news flow on the potential acquisition by Walgreen's. Financials had a negative return of about - 0.30%, driven mostly by mark downs on Monte dei Paschi and Banca Carige sub-bonds, which we were able to offset partially with our hedges expressed via shorts on Unicredit stock and other EU banks. December 2016: -2.55%. The month’s drawdown was mainly due to our macro shorts built around the Italian referendum and our long positions in subordinated securities in Banca Monte dei Paschi di Siena (“BMPS”). Due to the sequence of events that unfolded in December, the timeline for the trade to play out has been extended by 2-3 months, but our expectation that it will ultimately be quite profitable remains unchanged. We currently own the bonds at a deep discount to the conversion levels set forth in the Decree and remain confident that our bonds will in coming months not only recover the lost value but provide meaningful upside. The conversion levels set forth in the Decree represent a potential doubling in value for our securities from current levels. By the end of February, we should see the new business plan approved and the final approval of the recapitalization plan by EU authorities. As of now, we are already seeing a partial recovery on the OTC market. In summary, the mark down in the securities held by the fund we view as temporary while we await the approval of the final recapitalisation plan, and we therefore foresee very meaningful upside over the coming couple of months. The fund’s exposure to these securities is below 3%. Elsewhere in the portfolio, our event-driven strategy made positive contributions on the month. The main movers were our positions in Actelion, Rite Aid and Syngenta. Our investments across the capital structures of these companies performed well on positive news flow as these transactions move closer to completion. Overall, we expect the Event and M&A environment to remain very active in 2017 and to provide numerous compelling investment opportunities for us to exploit from an equity and credit angle. January 2017: +0.74%. The positive performance was mainly due to 1) our macro credit investments, where we benefitted from a widening of the France sovereign spread, 2) the initial repricing of the subordinated securities we own in Banca Monte dei Paschi di Siena (“BMPS”), which have started to re-rate from their extremely distressed year-end prices as the bank and the Italian government continue to progress steadily towards the recapitalisation plan. In our macro strategy, we have been building a short position on French sovereign debt in anticipation of the geopolitical turbulence connected to the upcoming presidential elections. The populist candidate Marine Le Pen is gaining traction and continues to push for a Euro-exit. We believe the market is significantly under-pricing her chances of victory and that as we approach the election will grow increasingly worried. Therefore, we intend to maintain our short position into the event. These investments generated around +0.3% for the month. In financials, we remain very constructive on BMPS. Our bonds are still trading at a deep discount to the conversion levels set forth in the government’s Decree. We are confident that our bonds will in the coming months not only recover the rest of the value lost in December but provide meaningful upside from here. We are closely following the developments of the state aid-supported plan, which is expected to soon be converted into law with the aim to complete the recapitalisation process by April/May. The re-rating across our BMPS bonds generated around +0.4% for the month. We also made money on our event-driven position in Actelion, who agreed last month to be purchased by Johnson & Johnson at a price above the market’s most optimistic expectations. We took profit on the position, generating 0.1% on the month. February 2017: -0.73%. Performance was mainly driven by a slight mark down in our Banca Monte dei Paschi (“BMPS”) bonds and small losses in our Emerging Markets shorts. These losses were partially offset by positive performance of our short France macro credit investments and positive contribution from the Events book. We gave back some of January’s gains in our BMPS securities. These securities detracted around -0.38% on the month. There were a few adjustments made to the Italian government’s Decree outlining the process for the bank’s precautionary recap, which was converted into law on Feb 23, setting forth conversion levels for our bonds at prices far higher than where we currently own them. We continue to hold our Tier 1 bonds, the best in the capital stack, and have high conviction these securities present meaningful upside. Our Emerging Market shorts detracted around -0.24% on the month. We have yet to see the stress from Trump’s punitive trade and foreign policy measures expressed in these markets. Turkey remains our core short, as we see further deterioration of macro and political conditions affecting the country. We made money on our short France position. The impending French presidential elections have driven up the premium for holding French over German government debt, last month reaching its highest level in 4 years. While a Le Pen victory is not our base case, we strongly believe that we will see big increases in the associated volatility in the run up and aftermath of the elections, which will provide a great opportunity for us to capitalize on our directional and relative value trades around France. Our Events book was also positive on the month, as our positions in Syngenta stock versus credit and Rite Aid stock and CDS continue to appreciate. We remain confident that these two transactions should be completed within the coming months. We expect corporate activity to remain robust in the coming months and see strong potential to make money in these transactions over the course of the year.

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INVESTMENT MANAGER’S REPORT (continued) HI Numen Credit Fund (continued) Performance of the year (continued) March 2017: -0.51%. It was a mixed month for the portfolio, as gains made in certain European financials, tactical trading and Syngenta were offset by mark downs on our Italian bank debt securities, a loss on Rite Aid, and losses on our sovereign shorts. In financials, we lost 10bps. We generated ~55bps of performance from our relative value investments in bank credit and equity and from selective bank credit longs. We lost 65bps due to negative mark to market in our BMPS bonds and Banca Carige bonds, although on BMPS there has been significant progress made towards finalising the bank’s precautionary recapitalisation. We believe the bank will obtain the full go-ahead for the plan in April/May, and the actual recapitalisation/burden sharing will very likely happen over June/July. Exposure for the fund is 2.7% of NAV between Tier 1 and Tier 2 securities. We expect the upside from here to represent from an immediate 1.2-1.3% of NAV (once the recapitalisation is approved by DG Comp in May/June) to 2.5-3.0% once the equity re-rates after the initial shares overhang. In Events, our position in Syngenta stock hedged with CDS was a positive contributor on the month, as the expected acquisition of the company by ChemChina moves closer to completion. These gains were overshadowed by a loss in Rite Aid, as the news flow surrounding the acquisition by Walgreens is mixed. We continue to like the convexity of the trade, as a deal closure presents upside for our equity holdings and a deal break presents substantially more upside for our CDS holdings should Rite Aid face bankruptcy. We lost some money on our sovereign shorts as a result of general tightening across peripherals and in France and the UK. Elsewhere in the portfolio, we made 20bps in our opportunistic/systematic trading strategy executed via super-liquid instruments across credit/rates/equity to take advantage of market volatility. April 2017: +0.04%. Gains made in corporate events and financials were offset by a further mark down of our stressed Italian bank bonds and by losses from our short France trade. It was a strong month for our corporate events portfolio, which added 54bps. Notably our position in Syngenta performed well, as the Chinese Ministry of Commerce announced its approval of the company’s acquisition by ChemChina – the last significant regulatory hurdle for the deal to clear. The transaction is expected to be completed in the coming days. Our financials portfolio also performed well on the month, contributing 47bps. This year we’ve built a relative value portfolio of long/short financials in credit and equity, which continues to be a solid performer on the year. Elsewhere in the portfolio, our tactical trading strategy contributed 35bps. Our macro short France position was a detractor, costing 55bps. Headed into the first round of elections, we held a short on French government bonds in order to protect the downside and have a very disproportionate gain in case of a Le Pen/Melenchon outcome, which we viewed as incredibly disruptive for Europe. Right after the result, we lost a little money on our shorts, but not much, as rates have since started selling off as expected. We closed most of our shorts and increased exposure to European equity and credit investments, notably in financials. We marked down our BMPS and Carige bonds slightly further, as the market awaits further clarity on the finalisation of the recapitalisation, costing us 36bps. At these levels, the gap between the bonds and equity valuations of European banks is as wide as we’ve seen it. We are very happy to ride this widening gap, as it materially improves the upside we see from here. We expect a return of anywhere from 50%-100% on each of these investments before year end. May 2017: -0.09%. Gains made in our long/short financials portfolio and in our Banca Monte dei Paschi bonds were offset by some losses in tactical trades, Brexit-related shorts and on Rite Aid. In financials, our best short was Banco Popular in Spain in AT1 and equity, where the bank is facing serious solvency and liquidity stress. Our best long performer was our position in Caixa Geral De Depositos AT1 on the back of solid 1Q17 reported results. Our BMPS bonds saw some modest upward price momentum on the month. The news flow has been quite constructive. Notably, on June 1 the EC formally announced that they had reached an agreement with the Italian government on the restructuring plan. This clears the way for the recapitalisation to go through, removing the biggest downside risks, with final details of the restructuring to be settled in the coming weeks. We would expect to receive shares in exchange for our bonds in July with re-listing in the same month. We gave a bit back on the reflation trade expressed via fixed income shorts and on tactical hedges. We fully expect there to be a meaningful repricing of fixed income in Europe in the coming year as monetary policy normalises and interest rates rise. We also lost money on some of our Brexit-related shorts, as the market continues to ignore what we anticipate to be the hugely disruptive effects of a Hard Brexit. In Events, we lost a little on Rite Aid. However in May, the transaction with Walgreens moved forward, as the companies certified compliance with the FTC. The US Regulator will have to give its verdict on the merger by July 7th. We have higher conviction than ever in this trade and have added to both our long equity and short credit via CDS position, as we believe a) the chances of deal closure are higher than what the equity market discounts, and b) if the deal is blocked, Rite Aid CDS will reflect a much weaker competitive position for the company. June 2017: +0.55%. This month saw an encouragingly differentiated attribution among our sub-strategies. In distressed financials, we made money across the capital structure of Banco Popular and on our BMPS bonds. In Macro Credit, we made money on both Greece and Cyprus bond holdings, while in Events we saw a small contribution from both Rite Aid and Monsanto. We lost money on our capital structure shorts in Veneto/Vicenza banks post their bail out last month, partially offset by our shorts on Liberbank subordinated bonds, and continued marking down our shorts on UK, where the CDS tightened again on the month. The biggest contributor on the month was Popular. When the bank was bailed in on June 7th and sold to Santander for €1, we were short equity and AT1 and long on senior, so made money on all legs. Our BMPS bonds saw upward pricing pressure towards month end, as the bank’s recapitalisation plan approaches completion and investors gain confidence in the expected value of the bank once post-recap it will emerge as one of the cleanest in Italy. Subsequently, this week the EC gave their full approval of the final business plan, which was well-received by the market, and our bonds have traded up this month as the path forward is now clear. In Macro Credit, our biggest contributors were Greece and Cyprus. We expect Greece to be offered a more detailed debt forgiveness package post German election and to be included in the QE program by year end. We also took profit on our Cyprus bonds, which we closed out of before month end.

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INVESTMENT MANAGER’S REPORT (continued) HI Numen Credit Fund (continued) Performance of the year (continued) In events, Rite Aid was the dominant story. Gains from our CDS position more than offset losses on our equity. Walgreens and Rite Aid terminated their merger and have agreed for Rite Aid to sell some of its pharmacies to Walgreens while remaining independent. Rite Aid stock collapsed post the announcement, while its CDS widened. We have considerably reduced our Rite Aid long equity position while remaining short its credit. We believe Rite Aid may consider Ch. 11 within the next year if not sooner. Market views and outlook We are entering the last innings of a 30-year rally in fixed income. We expect a serious spike in volatility and eventually a crash in fixed income and all related proxies with it, especially in IG corporate bonds and emerging markets. We are convinced the market is unprepared for this move, creating one of the best market opportunities we have seen in our lifetime. The most important player to watch is the ECB, who is running out of excuses not to taper. The rejection of the anti-euro populist trend in France has significantly strengthened the European engine, and Europe is moving quickly to accelerate the implementation of a de facto fiscal union. Simultaneously, the ECB and other authorities have pushed for the recapitalisation of big banks while resolving the worst ones without contagion, establishing the first stage of sector consolidation, which should accelerate with rates moving and result in premiums on many bank valuations. We like our BMPS long, as the bank is likely to be one of the cleanest in Europe post recap and should thus be a very attractive target. We expect plenty of additional volatility in banks as well as great capital structure opportunities looking forward, and we currently have several positions in the book to take advantage of these emerging trends. On the corporate side, we think both HY and IG corporates are going to be vulnerable to rates and to accelerated industry cycles. The speed of automation and technological advances across industries will create plenty of losers and very few winners. Be prepared for media and retail to come under the hammer of a super-accelerated business cycle, with many corporate structures loaded with debt based on unrealistic business assumptions.

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INVESTMENT MANAGER’S REPORT (continued) HI Principia Fund HI Principia Fund's objective is to achieve a 7%-8% return with a volatility of 6% by investing in Europe stock markets with a fundamental approach Performance review HI Principia Fund EUR FOF share class increased by 7.23% on a net basis from the start of July 2016 to the end of June 2017. The EUR FOF class is used for representative purposes. HI Principia Fund - class EUR FOF

Date Class EUR FOF NAV Class EUR FOF Monthly return Total Fund AUM (EUR)

29/07/2016 117.87 -0.36% 178,768,468.62

31/08/2016 121.47 3.05% 185,593,399.19

30/09/2016 119.80 -1.37% 180,541,603.91

28/10/2016 116.99 -2.35% 173,540,401.52

30/11/2016 114.32 -2.28% 167,099,695.11

30/12/2016 117.55 2.83% 164,809,136.89

31/01/2017 116.85 -0.60% 159,636,984.54

28/02/2017 119.49 2.26% 158,366,629.43

31/03/2017 121.46 1.65% 159,957,604.36

28/04/2017 124.21 2.26% 160,624,704.48

31/05/2017 126.85 2.13% 164,868,778.20

30/06/2017 126.84 -0.01% 162,621,444.12*

*Please refer note 10 for the adjustment between the financial statements NAV and the valuation methodology set out in the prospectus. Monthly performance contributors Over the last year the fund rose 7% while the European index rose 19%. The recovery in European markets has been driven mainly by the financial and basic resources sectors. The combination of the improved macro-economic environment and low interest rates in Europe and in the US has fueled stock market performance over the period. The HI Principia fund has performed well from a stock picking perspective. It has however underperformed the European index due to downside protection. The positive contributors over the period came from several long positions. AMS is an Austrian semiconductor company involved in 3D sensors for the smartphone industry. They have benefited from a rising smartphone penetration as well as the increase in content per device. Their recent acquisition in the US has enabled them to secure long term contracts with Apple and Samsung. Sophos has also performed well over the last year. It is a UK based online security company servicing corporate clients in Europe and in the US. They have recently introduced a new product “Sophos connect” which has been extremely successful with small and mid-size companies. It has materially increased the company’s organic growth and free cash flow generation. The negative contributors were mainly the short-index positions as well as the put options we held throughout the period. They are intended to protect against large downside moves in the market, which haven’t materialized over the past year. Exposure The HI Principia Fund engages in a focused stock specific strategy with intensive company contact. We also monitor sentiment through a variety of indicators to position the fund offensively or defensively depending on the market opportunity. The delta and beta adjusted gross exposure of HI Principia ranged between 70% and 143% during the period. As at close 30 June 2017 the Top 5 long positions represented 15.29% of NAV and the Top 5 short equity positions amounted to 7.57% of NAV. Market views and outlook Despite the strong performance of the European markets, we still believe there are opportunities based on company specific reasons. The long book has 35% upside on average and we are still focused on finding interesting companies with strong internal cases.

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INVESTMENT MANAGER’S REPORT (continued)

HI Sibilla Macro Fund

HI Sibilla Macro Fund utilises discretionary global macro strategy based on fundamental, thematic and quantitative analysis to invest in a broad array of liquid financial instruments, including currencies, listed equities and equity indices, sovereign bonds and UCITS compliant commodity-linked instruments. The fund objective is a target average annualized return of 10% with 6% volatility. Performance review HI Sibilla Macro Fund EUR FOF share class increased by 2.48% on a net basis from the start of July 2016 to the end of June 2017. The EUR FOF class is used for representative purposes. HI Sibilla Macro Fund - class EUR FOF


29/07/2016 100.24 1.07% 89,922,037.38

31/08/2016 99.43 -0.81% 90,420,905.95

30/09/2016 99.35 -0.08% 88,415,501.84

28/10/2016 99.94 0.59% 89,095,166.86

30/11/2016 102.28 2.34% 88,498,828.40

30/12/2016 101.51 -0.75% 87,502,001.91 31/01/2017 101.81 0.30% 89,179,355.11 28/02/2017 101.02 -0.78% 86,213,478.09 31/03/2017 101.01 -0.01% 85,085,021.89 28/04/2017 101.67 0.65% 84,316,589.81 31/05/2017 102.00 0.32% 82,362,856.92 30/06/2017 101.64 -0.35% 80,659,810.84*

*Please refer note 10 for the adjustment between the financial statements NAV and the valuation methodology set out in the prospectus. Our view that Brexit was “old news” contributed to our positive performance for our long-biased portfolio in July. Beside the fact that the negative implications of Brexit were exaggerated by most market participants, the banking sector and the government bond market reacted as if there were a systemic crisis similar to 2008 and 2011. Valuations and moves in both, in fact, were only comparable to periods of extremely severe distress. Absent a real credit crisis and with central banks committed to avoiding another near financial collapse, we were convinced that the long side in risk assets was the path of least resistance for several weeks. We preferred Nikkei futures, because of the aggressive central bank action and decent earnings growth in Japan. We were waiting for an entry point, which we found right after the elections. We also shorted global government bonds expecting marginally higher yields as perception for tail risks diminished. Further we maintained a long position in Chinese H shares, the Eurostoxx and selected names in U.S. listed equities in our portfolio. As the market moved higher, we gradually started to hedge by shorting Nasdaq futures and by increasing our long dollar positions against Asian currencies. These trades worked well until the second half of July, however, as the Nasdaq index began to catch up with other indices and outperformed while the Nikkei index pulled back. We locked in profits on most of our trades as the rally began to look stretched. At the same time, it was difficult to find good hedges as there wasn’t a particularly clear area of weakness strategically or fundamentally at the time. In August, we incurred minor losses in our short position in Japanese Yen and our long position in Nikkei futures as the Federal Reserve kept sending conflicting messages about the timing and magnitude of future hikes. The latest messages came from a series of blogs and articles, including one from Ben Bernanke, emphasizing how the Federal Reserve is lowering estimates on potential economic growth, the natural rate of unemployment, and consequently the target for the federal fund rates with very dovish implications about the size of the tightening cycle. This came at a time when risk assets and industrial commodities were rallying and Brexit fears were dissipating, making it more likely that Federal Reserve would begin discussing rate hikes again. Although we understood that these comments did not mean that additional hikes were off the table for consideration, market participants interpreted these statements as dovish. Without clarity on this important development, we decided to reduce our exposure further. We also became more conservative, because new signs of economic weakness were appearing just when the world was becoming more complacent regarding Brexit and raising estimates on GDP growth for the rest of the year. Our portfolio exposure remained light into the end of August as positioning and sentiment on risk assets were the most extreme in years. We maintained very low gross and net exposure in September given that our view was not confirmed by our model and most asset classes had been stuck in a tight range. Toward the end of the month we initiated a long position in volatility, the best way to position ourselves for a correction in risk assets without risking much until the trend was more apparent to us. In currencies, we realized a minor gain in the New Zealand Dollar where we were short because we expected the central bank to restart easing at the same time that the Federal Reserve is likely to be engaging in a rate hike, a classic policy divergence trade. During this time, we stayed on the sideline with respect to precious metals and commodities given our neutral to bearish view at the time. This was justified since oil spiked on OPEC news, while fundamentals for supply and demand didn’t justify such a move and precious metals started a correction.

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HI Sibilla Macro Fund (continued)

Performance review (continued) During October, we gradually re-entered our short positions in the New Zealand Dollar, the Korean Won and the Swedish Krona, while maintaining a tactical approach on position size. These positions were all profitable. Also profitable was our tactical short in S&P 500 and Russell 2000 futures, based on our bearish view driven by a combination of a more hawkish Federal Reserve and relatively slow economic growth. Lastly, recognizing that risk assets were more likely to trade in a range rather than entering a bear market, we initiated small, tactical long positions in European and Japanese bank stocks. These positions were profitable. Losses in our portfolio were generated by a small basket of U.S. stocks. Election uncertainty heading into November and the potential for a change in leadership resulting from a shift from a focus on monetary policy to fiscal policy kept sector leadership impossible to determine. With the election decided, the implications of the Trump victory were pretty clear to us right away with respect to interest rates, currencies and the leadership in risk assets. Leaving emotions and biases aside, we thought that Republicans tended to agree on most aggressive “pro-growth” policies and disagreed on protectionism and immigration. This led us to believe with reasonable confidence that U.S. real GDP would accelerate to 3.0-3.5% in the second half of 2017. We disagreed on the immense policy uncertainty that many market participants seemed to believe existed. It is rare to have such a strong Republican majority, so to us if there is a time where uncertainty is low, it would be now! It is true that we need to monitor the impact of protectionism but there are too many other factors working in favor of much improved economic growth. This is great news in particular for Japan, where the major problem was a strong Yen and slow U.S. growth. With U.S. bond yields finally rising, the U.S. dollar rallying, and an improved outlook for inflation and GDP growth, we anticipated a big drop in the Japanese yen and a big rally in the Nikkei. We positioned ourselves this past month for both moves and profited nicely from it. We also shorted global government bonds, U.S. treasuries, Swiss bonds and Italian BTP among other positions, all of which worked well in November. We hedged our portfolio by shorting S&P 500 futures, which generated a paper loss but served its purpose as a hedge and didn’t offset much of the gain since it moved much less than the positions it was used to hedge against. High valuations, higher interest rate levels, a strong U.S. dollar and the correlation of many stocks to bonds limited upside in the S&P 500 in our view. In December, our long positions in European equities and our short positions in Asian currencies were profitable, as risk on continued to dominate most markets while higher interest rates pushed the U.S. dollar higher. Our short position in S&P500 futures, which we put on to hedge our long exposure lost money. This position was put into place because our long exposure from November was significant, and we had some unrealized profits in the portfolio that we wanted to protect. In hindsight, we reduced the long position a bit prematurely, although we later readjusted the positioning by covering the short position and remaining marginally long and ready to buy on dips. We also prematurely reduced our long position in Nikkei futures, but we started to build a position again on dips. Another trade that generated a paper loss was our short position in the Brazilian Real. We put this trade on as we believed that if there was a problem it would emanate from China and emerging markets. Significantly higher U.S. interest rates and protectionist policies are a bad combination for emerging markets and since Brazil was a “leveraged” bet on China we thought that the Brazilian Real would go down significantly in the intermediate term. Market positioning also appeared to be long the Brazilian Real, despite the general uptrend in the U.S. dollar. Although this was understandable since China and commodities (oil in particular) were steady, and there was still a relevant positive carry trade there, we believe that all of this would reverse quickly once U.S. interest rates moved higher and China begins to have serious issues with their reserve levels. The issue with the level of reserves would be both external as the U.S. dollar might accelerate the uptrend against emerging market currencies and internal as the fragile recovery in Brazil might fade, leading the central bank to stop cutting interest rates because of money outflow. This would result in a classic emerging market self-reinforcing downtrend in the currency. In January, our profitable positions included long Nikkei futures, where adjusting the position size tactically allowed us to take profits which would have been otherwise lost into month end, and long copper through a basket. Our long position in French equities was cut quickly near breakeven once we learned about the scandal involving Francois Fillon, since our assumption was a sure win. Our bearish bets on government bonds also worked well. Our view of stronger than expected global growth and reflation drove these bearish bets which included U.S. treasuries, Swiss bonds and Japanese bonds, but we also had a short position in Italian bonds which was a more of “bearish” bet on possible early elections in Italy, a risk that seems to be materializing. This position was also a hedge against our long positions in Eurostoxx futures and European banks, which in aggregate were profitable. A major drag on performance in January was our long U.S. dollar positions against a basket of Asian currencies (JPY, KRW, TWD) and also against the Brazilian Real and the Swiss Franc. We actually increased these positions – which were reduced last year because of the extreme overbought condition in the U.S. dollar, as we believe that the fundamentals for a stronger U.S. dollar are still in place even if one has a bearish view on Trump policies. Our portfolio was structured in February assuming a continuation of the reflation trade with the main implications being 1) higher bond yields globally, 2) outperformance of cyclical versus defensive indices, and outperformance of Nikkei and Eurostoxx indices versus the S&P500 index and 3) a stronger U.S. dollar especially against Asian currencies including the Japanese Yen, the Korean Won and the Taiwanese dollar.

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INVESTMENT MANAGER’S REPORT (continued) HI Sibilla Macro Fund (continued) Performance review (continued) The main reasons for the negative performance have been the correction in the U.S. dollar against most currencies and the outperformance of U.S. equity indices versus Japan and Europe. Also, bonds haven’t dropped as expected, and German bunds moved back to levels not seen since last summer including some all-time lows in yields. Fears of negative outcomes in European elections, in particular French elections, still elevated skepticism on Trump’s ability to accelerate U.S. and global growth, and an unreliable Federal Reserve board that last year indicated it would raise rates four times and only raised once, generating a retracement in most asset classes correlated to “reflation”, which we believe will be temporary. In March, our long equity book was concentrated in European banks and delivered good results. We took profits on about two thirds of our original positions as we start to anticipate a tactical correction as global equities are very extended and elections in France should generate some volatility given the big tail risk involved. Our long position in Nikkei futures was disappointing and was progressively reduced for the reasons above and the fact that the fiscal reform in US, largely priced in US equities, is now more uncertain given profound conflicts among republicans – a negative since it is strengthening the Japanese Yen further instead of weakening it. Our small short in Nasdaq futures generated a minor loss and we reduced it as it was intended to be mostly a hedge against our longs. Our short positions in government bonds also didn’t work last month, although only generated a small paper loss, while the biggest performance drag were our short positions in Asian currencies and the Brazilian real. We expected three fundamental developments to support our positions in bonds and FX - the FED hiking in March, June and September, big tax cuts in US and some form of protectionism. Only the first outcome partially materialized so far – the market in fact is giving only about 50% chances to another hike in June - while the other two didn’t happen and became more uncertain after the healthcare reform failure. Most of our positions moved in our favor in April, as Le Pen lost the first round of the French election. We were positioned in different asset classes to profit from this outcome and quickly added overnight immediately after the preliminary results of the first round came out. Our positions were as follows: short German bunds and Swiss bonds, long EUR currency against the Swiss Franc and the US dollar, and long European banks. Our short position in the Korean Won also worked in April. We still hold all these positions and expect additional gains. Our FX trades worked well in May. Long positions in the Euro currency against the dollar and the Swiss Franc gained on diminished disintegration risks in Europe after the French elections. The short position in the Brazilian Real was also profitable following fresh political uncertainty. Short positions in Asian currencies generated a small paper loss. Our longs in European banks and shorts in government bonds have been disappointing although still mostly profitable for the year. After the final loss by Le Pen they barely moved and then started to go marginally against us again. We initially held these positions, not expecting anything new however we decided to liquidate them quickly once the probability of early elections in Italy increased significantly and given that the global “reflation” theme kept deteriorating. Our FX trades also worked well in June as Asian currencies weakened against the US dollar and the Euro following incrementally hawkish comments by central banks and increasing tensions with North Korea. We plan to hold our FX book for additional gains. Our bearish bets on stock indices and volatility generated minor losses. We were expecting the correction in risk assets to begin more rapidly while instead the market was still in a topping process with quick dip buying within a broadening top. Besides our slightly premature shorts in German Dax and Emerging market futures, S&P 500 volatility futures – which offers a tremendous risk reward in going long as it is at multiyear lows and turning up - failed to go up on a sustained basis as the index remained near the highs. Exposure The average gross exposure during this period was 72% and the biggest positions were held in FX forwards. Market views & Outlook Among the catalysts for a correction that we were seeing last month only one seems to be postponed - Italian elections to next year. The FED as well as the ECB are determined to incrementally tighten monetary policy. We believe that unless and until the global economy slows significantly or there is a correction in risk assets big enough to tighten financials conditions remarkably, central banks will continue to be hawkish. There are two possible scenarios: 1) the global economy is able to maintain positive growth despite higher interest rates and contracting global central bank’s balance sheet. Risk assets suffer only a modest correction on tightening fears and diminishing liquidity – between 5% and 10% for the broad indices like the S&P500, more for Nasdaq and higher beta indices - after which the bull market resumes lead by cyclicals and value. We can see this scenario only if a fiscal stimulus is implemented in the US – and perhaps Japan - sometime later this year or next year. 2) a global slowdown begins. Risk assets suffer a severe correction - at least 10% for the broad indices. Central banks become dovish again generating a temporary rally, however a bear market follows as the slowdown continues and becomes hard to be reversed given that central banks have little left and can barely cut rates from here. Eventually only a fiscal stimulus will be able to reverse these trends.

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HI Core UCITS Fund

HI Core UCITS Fund is a multi-strategy fund of UCITS funds with the aim to deliver a target average annualized return of 3-4% in excess of the free risk rate with 4% volatility. The fund invests mainly in "alternative" UCITS funds, i.e. funds that are able to replicate the most liquid and transparent hedge fund strategies under a harmonized legislature framework, by offering daily and weekly liquidity and requiring a lower minimum investment amount than hedge funds.

Performance review

HI Core UCITS Fund EUR I share class increased by 3.85% on a net basis from the start of July 2016 to the end of June 2017. The EUR I class is used for representative purposes.

HI Core UCITS Fund - class EUR I

Date Class EUR I NAV Class EUR I Monthly return Total Fund AUM (EUR)

29/07/2016 105.66 0.83% 40,337,023.11

31/08/2016 105.80 0.13% 40,290,627.84

30/09/2016 105.93 0.12% 38,268,082.56

28/10/2016 105.98 0.05% 39,120,417.63

30/11/2016 104.81 -1.10% 38,525,150.36

30/12/2016 105.57 0.73% 36,354,781.10 31/01/2017 106.39 0.78% 36,360,448.56 28/02/2017 106.15 -0.23% 35,810,443.85 31/03/2017 107.22 1.01% 37,630,918.02 28/04/2017 108.00 0.73% 36,602,223.43 31/05/2017 108.64 0.59% 36,775,937.12 30/06/2017 108.82 0.17% 36,068,874.10*

*Please refer note 10 for the adjustment between the financial statements NAV and the valuation methodology set out in the prospectus. Alternative strategies struggled for most of 2016 due to the continuation of the multi-year bull market in fixed income and to the renewed appreciation of bond proxy stocks in the equity markets (i.e. defensive and high dividend yield stocks). Bonds and defensive stocks were pushed up to extremely expensive levels by the unlimited liquidity provided by Central Banks through their various QE programs. These programs often characterized by negative rates policies were successful in particular in depressing yields curves globally. In this scenario, active strategies did not chase the last phase of the bubble and strongly underperformed passive strategies. Early signs of a transition from a deflationary scenario to a reflationary one emerged in the last part of 2016 (inflationary expectations in particular were driven higher by Trump’s election and the expectations for a big fiscal stimulus in US) and caused a temporary reversal of sovereign bond bull market and of defensive stocks outperformance. Alternative strategies started to show some signals of recovery thanks to a return of focus on fundamentals in the equity markets (positive for long/short equity funds), more volatility and dispersion in the fixed income markets (positive for long/short credit funds) and very interesting trends on currencies and commodities (positive for macro managers). Actually, the reflation scenario lasted only till mid-February 2017 and since then has been put on hold due to the correction in oil prices, which negatively impacted inflation data, and the increasing conviction that Trump has over-promised and will under-deliver on his pro-growth and pro-inflation policies. Despite the interruption of the expected reflationary scenario, HI Core UCITS Fund was able to generate satisfying results both in the first and the second quarter of 2017. In the first half of 2017, the fund benefitted mainly from the following factors: - strong overweight on European long/short equity managers. The reduction of political tail risk after French elections and the improving data for the European economy created a very favorable scenario for stock picking in the European markets; - good exposure to event driven managers. The underlying managers benefitted from the continuation of a strong M&A cycle; - low exposure to US Treasuries and US dollar in the macro bucket. The underlying macro managers did not play the short US Treasuries, long US dollar trade which is strongly penalizing this year most of the macro industry.

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HI Core UCITS Fund (continued) Exposure

Breakdown by strategy 30 June 2017 30 June 2016

Long/short Equity 50.08% 59.85%

Event Driven 15.19% 13.51%

Relative Value 11.33% 10.63%

Macro-CTA 8.95% 8.12%

Long-hedged 0.60% 1.81%

Tactical Overlay 10.29% 3.26%

Cash 3.57% 2.81%

The exposure to long/short equity fund decreased from 60% to 50%. Part of the reduction was related to the decision to fully close our position in UK focused managers after the Brexit referendum because we expect high uncertainties and volatility in the UK equity market during long and complex Brexit negotiations. In the European bucket, we fully redeemed from two funds which were underperforming our expectations and replaced them with two European stock pickers both employing a deep fundamental approach. During the last 4 quarters, we also decided to fully redeem from a long-biased global fund overweighted on US in order to reduce the directional exposure to US equity market. We slightly increased the exposure to relative value strategies, in particular thanks to the addition of two new funds: - a long/short credit fund operating with a macro approach; - a short-biased fund specialized in the fixed income markets. These new additions allow us to implement our bearish view on rates considering that both funds run portfolios with negative duration. In the last 12 months, the biggest increase was registered in the tactical component of the portfolio (positions in long-only or short-only funds and ETFs with a short-to-medium term horizon), whose weight rose to 10.3%, mainly due to the addition of a bearish exposure to Euro yield curve and of a long position in EM local currency bonds, through a dedicated long-only fund. From a geographic perspective, we remain overweighted on Europe, which currently represents around 54% of the portfolio. Market views and outlook We expect a scenario characterized by moderate but improving global growth, mainly driven by improving macro data coming from European and EM economies; US economy will underperform the bullish expectations initially associated with Trump’s election but should continue its trend of moderate growth. Inflation in Developed Markets should gradually pick up from the current very depressed levels pushing major Central Banks to start (ECB)/continue (Fed) their exit from ultra-accommodative monetary policies. We believe that HI Core UCITS Fund is in a very good position to benefit from the expected moderately reflationary scenario. In particular, we are positioned for the following main themes: - recovery of the European economy. Portfolio is strongly tilted to long/short equity funds specialized in European markets and to other funds positively correlated to an acceleration of European economy; - high level of corporate activity. We maintain our very constructive view on event driven managers that should continue to benefit from a very intense M&A activity thanks to low but increasing rates, potential deregulation in US and search of inorganic growth; - normalization of yield curves. The expected gradual exit of major Central Banks from their unlimited QE programs will produce a readjustment of valuation and an increase of volatility in the fixed income markets. We recently added several bearish positions in yield curves in Developed Markets, through short-only ETFs and long/short credit funds.

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HI Africa Opportunities Fund

HI Africa Opportunities Fund is focused on Africa Sub-Sahara stock markets with a flexible investment strategy (long/short equity). The Fund's objective is a target average annualized return of 15% with 10% volatility through selective purchases of stocks and active risk management.

Performance review

HI Africa Opportunities Fund EUR FOF share class increased by 1.28% on a net basis from the start of July 2016 to the end of June 2017. The EUR FOF class is used for representative purposes.

HI Africa Opportunities Fund - class EUR FOF


29/07/2016 96.42 2.56% 35,250,313.72

31/08/2016 92.21 -4.37% 33,751,267.58

30/09/2016 92.19 -0.02% 33,268,097.59

28/10/2016 90.36 -1.99% 32,155,614.12

30/11/2016 91.39 1.14% 30,911,913.23

30/12/2016 94.41 3.30% 31,075,682.87

31/01/2017 94.78 0.39% 25,385,600.33

28/02/2017 95.93 1.21% 24,101,558.03

31/03/2017 94.35 -1.65% 23,224,704.45

28/04/2017 92.42 -2.05% 21,275,908.73

31/05/2017 93.09 0.72% 20,900,622.11

30/06/2017 95.21 2.28% 20,837,025.17*

*Please refer note 10 for the adjustment between the financial statements NAV and the valuation methodology set out in the prospectus. The fund’s performance of 1.28% compared with a 2.65% return for the DJ Titans Africa Index (including dividends). The South African Top40 Index was also positive with a return of +10.9% with dividends. The MSCI Egypt Index was -4.4% and the Kenyan index was +8.7%. The top contributors to the fund’s performance were Naspers in South Africa, and Safaricom in Kenya. The fund’s Nigerian investments in Guaranty Trust Bank, Zenith Bank and Dangote Cement were also positive contributors. The fund was able to invest in Nigeria post the devaluation of the currency and benefitted from a strong revaluation of Nigerian equities. The biggest detractors to the fund’s performance were long positions in African gold mining companies. The gold price dropped sharply following the election of Donald Trump in November which lead to a move lower in gold mining equities. Exposure During the year the fund increased its gross and net exposure to markets across Africa. The gross exposure increased from 53.6% in June 2016 to 96.7% in June 2017. Similarly, the net exposure increased from 36.9% to 57% as the fund became more positive on African equity markets. In June 2016 the fund’s country exposure was primarily to South Africa and Kenya. During the year both Nigeria and Egypt devalued their currencies significantly and the fund was able to re-enter these markets at attractive valuations. By the end of the year the country exposure included 18% of the fund in Egypt and 21% in Nigeria. The fund is also more optimistic on the outlook for the mining sector and added positions in Glencore and South32. The top long positions at the end of June were Elsewedy Electric in Egypt, Zenith and Guaranty Trust Bank in Nigeria, Naspers in South Africa and Safaricom in Kenya. The top short positions were two companies that had not yet marked to market the recent devaluation in the Nigerian currency as well as a South African generic drug distributor experiencing pricing pressure and gross profit margin declines. Market views and outlook The outlook for African markets improved significantly throughout the year. Both Nigeria and Egypt accepted difficult adjustments to their currencies and are now set to move forward with renewed competitiveness and a return of liquidity to their currency markets. Commodity exposed countries such as South Africa, Zambia, Ghana and Nigeria are benefitting from a recovery in commodity prices. While commodity prices are still low by historical standards the situation is stabilizing.

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HI Africa Opportunities Fund (continued)

Market Views & Outlook (continued) Our view is the economies in Africa will slowly improve as consumers and businesses adjust to the steep currency devaluations of 2014-2015. The fund’s investments in South African real estate companies Growthpoint and Redefine should benefit from falling inflation in South Africa and the start of a rate cutting cycle. Meanwhile we are benefitting from 7-8% dividend yields. The fund also purchased shares in the three leading banks in Nigeria at depressed valuations in June and despite the strong performance in May and June they still offer great value at just 5-7x earnings. The fund’s Egyptian investments in Telecom Egypt, Elsewedy Electric and Oriental Weavers all have growing businesses, under leveraged balance sheets and valuations of less than 10x earnings. Overall, we are optimistic about Africa and the fund’s investments.

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INVESTMENT MANAGER’S REPORT (continued) HI Numen Bear Rates Fund HI Numen Bear Rates Fund's objective is to generate positive rates of return in environments where there are rising interest rates Performance review HI Numen Bear Rates Fund EUR FOF share class decreased by 1.47% on a net basis from 7 April 2017 to the end of June 2017. The EUR FOF class is used for representative purposes.

HI Numen Bear Rates Fund - class EUR FOF

Date Class EUR FOF NAV Class EUR FOF Monthly return Total Fund AUM (USD)

28/04/2017 99.36 -0.64% 10,819,533.28

31/05/2017 97.40 -1.97% 12,055,643.76

30/06/2017 98.53 1.16% 12,368,962.14*

*Please refer note 10 for the adjustment between the financial statements NAV and the valuation methodology set out in the prospectus. Performance of the year April: -0.64%. From launch date of April 7, positive contributions from short US rates holdings were more than offset by the tightening of the European fixed income market. May: -1.97%. The bulk of negative performance came from the further normalization of the Euro-area risk reflected in France and in Eurozone peripheral government bonds. June 2017: +1.16%. The largest contributors were our structural shorts across several fixed income markets, and our long position in oil. Central banks around the world gave clear signals that the inevitable exit from extra loose monetary policy has indeed started. The ECB, SNB, and BOE delivered hawkish messages on the month, which caught the market wrong footed, as a number of investors are heavily positioned long bonds ahead of the summer months. Our short positions across the German curve, Swiss long end, and Gilts produced the bulk of the performance, offset partially by the shorts in Italy and a small long in UST as well as a short position in GBP/USD. Market views & Outlook We expect rates to continue to move higher for two key reasons: 1) the market is pricing low expectations on any inflation pick up with a consequently asymmetric risk towards an upbeat surprise in the data, and 2) it is clear that central banks are happy to ignore a dip in inflation in the coming months (ECB included), as growth figures are robust and the urge to continue towards a normalisation path is felt across policy makers. After the summer, the market will have to prepare for two crucial central bank meetings in September – the Fed and the ECB, with particularly crucial wording to be delivered by Draghi on the ECB’s intention to start tapering. This will happen in the context of increasing government supply typical for the two quarters ahead. As we see a strong will among the key producers to prop up oil prices, we continue to like our long oil position, which delivered 0.30% for the month and has been very accretive in the early days of July as well. Moreover, given the rising geopolitical risks in the region, our long exposure to oil can work also as a tail hedge to our rates shorts in case of a more serious escalation of the diplomatic crisis between the Saudis and Qatar. We are also long South Korean CDS as another tail hedge should something seriously escalate in the current highly tense situation between North Korea and the US in addition to some long Turkey CDS exposure, as the political situation there continues to deteriorate. The month of July has started quite strong as well, as the most recent Fed minutes confirmed that the central bank path towards normalisation is on a steady course (even with inflation disappointing in the previous months), with some members pushing to move on balance sheet reduction plans as soon as July. We think the market is still unprepared for this attitude shift across several central banks, and we are experiencing an unwinding of long positions which we expect to continue to benefit our portfolio. Any hint at tapering at the July ECB meeting (which we consider possible given the deep division within the governing council) would further accelerate this process. Hedge Invest SGR P.A. October 2017

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DIRECTORS’ REPORT The Directors present their report together with the audited financial statements of the Company for the year ended 30 June 2017. Review of principal activities and future developments The Company was approved by the Central Bank on 30 May 2010, incorporated on 10 June 2010 and commenced operations on 10 June 2011. The results of operations for the year are set out in the Statement of Comprehensive Income on page 28. The HI Numen Credit Fund launched on 10 June 2011. The Fund is registered in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherland, Norway, Spain, Sweden, Switzerland and the United Kingdom with further passporting throughout Europe planned. The Fund is also registered in Singapore as a Foreign Restricted Scheme and in Bahamas as a Non-Bahamas Based Investment Fund. The Fund is also marketed in Hong Kong via local private placement. The HI Principia Fund launched on 31 October 2012. The Fund is registered in Austria, France, Germany, Italy, Luxembourg, Spain, Switzerland and the United Kingdom with further passporting throughout Europe planned. The HI Sibilla Macro Fund launched on 22 November 2013. The Fund is registered in Italy, Luxembourg, Spain, Switzerland and the United Kingdom with further passporting throughout Europe planned. The HI Core UCITS Fund launched on 27 June 2014. The Fund is registered in Italy, Luxembourg and Switzerland. The HI Africa Opportunities Fund launched on 6 March 2015. The Fund is registered in Italy, Luxembourg and Switzerland. The HI Numen Bear Rates Fund launched on 7 April 2017. The Fund is registered in Italy and Switzerland. The business and future developments are reviewed in detail in the Investment Manager’s Report on pages 5 to 17. Dividends Each of the share classes within each Fund are accumulating share classes, therefore no dividends will be declared. The income and profits will be accumulated and reinvested in each Fund on behalf of the Shareholder. Accounting Records The measures taken by the Directors to secure compliance with the Company’s obligation to keep adequate accounting records are the use of appropriate systems and procedures. In this regard J.P. Morgan Administration Services (Ireland) Limited have been appointed for the year for the purpose of maintaining adequate accounting records. Accordingly, the accounting records are kept at JPMorgan House, International Financial Services Centre, Dublin D01 W213, Ireland. Directors The Directors of the Company are as follows: David McGeough (Irish resident)

Teddy Otto (Irish resident) John Skelly (Irish resident) Francesco Rovati (Italian resident) Directors’ Interests None of Directors, except Francesco Rovati, or the Company Secretary held shares in the Company at any time during the year. Francesco Rovati, together with his wife, owns 149.42 shares (2016: 149.42 shares) of EUR R class in HI Principia Fund, 148.24 shares (2016: 148.24 shares) of EUR R class in HI Numen Credit Fund, 393.22 shares (2016: 393.22 shares) of EUR R class in HI Core UCITS Fund and 277.73 shares (2016: 277.73 shares) of EUR DM class in HI Sibilla Macro Fund. Teddy Otto and John Skelly, Directors of the Company, are employees of Carne Global Financial Services Limited, the Company Secretary. Francesco Rovati, a Director of the Company, is a managing member of Hedge Invest SGR P.A., the promoter and Investment Manager.

18


DIRECTORS’ REPORT (continued) Independent Auditors The Company’s Independent Auditors, KPMG, have indicated their willingness to continue in office in accordance with Section 383(2) of the Companies Act, 2014. Corporate Governance The Board of Directors has assessed the measures included in the voluntary Corporate Governance Code for Investment Funds and Management Companies as published by Irish Funds in December 2011 (the “IF Code”). The Board has adopted all corporate governance practices and procedures in the IF Code and continued to comply with the Code for the year ended 30 June 2017. Audit Committee The Company has elected not to put an audit committee in place for the Company for the following reasons: (a) the nature, scale and complexity of the Company; (b) the internal control and risk management systems relating to the financial reporting process already in place at the Company; and (c) the resources available to the Company and the resources and expertise of the various third parties engaged to support the Company. Significant events during the year On 13 October 2016, the Company and the Depositary entered into a new contract (the “Depositary Agreement”) which replaces in its entirety the Custodian Agreement and sets out the duties, responsibilities and liabilities of the Depositary pursuant to the obligations for UCITS depositaries under the Regulations (which implement Directive 2014/91/EU also known as UCITS V). On 25 November 2016, a new Supplement for Hi Principia Fund and HI Core UCITS Fund was issued to clarify that each of the Funds will only be permitted to utilise derivative instruments for hedging and efficient portfolio management at the level of the Funds and not for investment purposes. In addition, for HI Principia Fund the notice period to submit a redemption request was reduced from five business days to two business days and the required timing for a subscription payment was changed from the relevant Dealing Date to three business days following the relevant Dealing Date. On 11 November 2016, GBP M Share class was fully redeemed for HI Numen Credit Fund. On 28 April 2017, CHF D Share class was fully redeemed for HI Africa Opportunities Fund. On 30 May 2017, CHF DM Share class was fully redeemed for HI Core UCITS Fund.

On 1 March 2017, Principia Investment Management Limited was appointed as Sub-Investment Manager to the HI Principia Fund replacing Oakley Capital Management Limited. On 7 March 2017, Numen Investments Limited was appointed as Sub-Investment Manager to the HI Numen Credit Fund replacing Numen Capital LLP. On 7 March 2017, the HI Numen Bear Rates Fund was approved by the Central Bank of Ireland. On the same date an updated prospectus was issued for the new Fund along with supplements for HI Numen Credit Fund, HI Principia Fund, HI Sibilla Macro Fund, HI Core UCITS Fund, HI Africa Opportunities Fund and HI Numen Bear Rates Fund. The new supplements for HI Numen, HI Sibilla and HI Africa provide, details about new types of investors (pension funds, insurance etc.) that can invest in the DM share class. The new supplement for HI Principia Fund provides details about the change of the Sub-Investment Manager from Oakley to Principia Investment Management Limited. On 1 April 2017, Principia Investment Management Limited was appointed as Sub-Investment Manager to the HI Africa Opportunities Fund replacing Sub-Sahara Capital Management LP. The following share classes launched during the year ended 30 June 2017: HI Numen Bear Rates Fund Launch date EUR FOF Shares 7 April 2017EUR D Shares 12 May 2017 Subsequent events On 28 July 2017, EUR Initial Share class was launched in HI Numen Bear Rates Fund. On 29 September 2017 the Sub-Investment Manager Agreement with Numen Investments Limited has been terminated. From 1 October 2017 for HI Numen Credit Fund and HI Numen Bear Rates Fund the Sub-Investment Manager is only Numen Capital LLP. Risk management The Company’s exposure to risk is disclosed in more detail in the Financial Statements and associated risk notes on pages 37 to 54.

19


DIRECTORS’ REPORT (continued) Transactions with connected parties Regulation 41 (1) of the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the “Central Bank UCITS Regulations”) states that any transactions carried out with UCITS by a promoter, manager, depositary, investment adviser and/or associated or group companies of these (“connected parties”) must be carried out as if negotiated at arm’s length and must be in the best interests of the shareholders.

The Board of Directors are satisfied that there are arrangements (evidenced by written procedures) in place to ensure that the obligations set out in Regulation 41(1) of the Central Bank UCITS Regulations are applied to all transactions with connected parties and the Board of Directors is satisfied that transactions with connected parties entered into during the period complied with the obligations set out in this paragraph.

Directors’ Compliance Statement

The Directors, in accordance with Section 225(2) of the Companies Act 2014, acknowledge that they are responsible for securing the Company’s compliance with certain obligations specified in that section arising from the Companies Act 2014 and Tax laws (‘relevant obligations’). The Directors confirm that:

• a compliance policy statement has been drawn up setting out the Company’s policies with regard to such compliance;

• appropriate arrangements and structures that, in their opinion, are designed to secure material compliance with the Company’s relevant obligations, have been put in place; and

• a review has been conducted, during the financial year, of the arrangements and structures that have been put in place to secure the Company’s compliance with its relevant obligations.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE DIRECTORS’ REPORT AND THE FINANCIAL STATEMENTS

The Directors are responsible for preparing the Directors’ Report and financial statements, in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”) and applicable law.

Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the assets, liabilities and financial position of the Company and of its changes in net assets attributable to holders of redeemable participating shares for that year. In preparing the financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• state whether they have been prepared in accordance with IFRS as adopted by the EU; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply with the Companies Act, 2014, the UCITS Regulations and the Central Bank UCITS Regulations. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company. In this regard they have entrusted the assets of the Company to a depositary for safe-keeping. They have general responsibility for taking such steps as are reasonably open to them to prevent and detect fraud and other irregularities. The Directors hereby confirm that as far as each of them is aware there is no relevant audit information of which the Auditors are unaware and that each of them has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Company’s Auditors are aware of that information. The Directors are also responsible for preparing a Directors’ Report that complies with the requirements of the Companies Act, 2014.

On behalf of the Board

Teddy Otto

John Skelly

Director

24 October 2017

Director

24 October 2017

20


REPORT OF THE DEPOSITARY TO THE SHAREHOLDERS We have enquired into the conduct of Hedge Invest International Funds plc (“the Company”) for the year ended 30 June 2017, in our capacity as Depositary to the Company. This report including the opinion has been prepared for and solely for the shareholders in the Company as a body, in accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities) UCITS Regulations, 2011, as amended by the European Communities (Undertakings for Collective Investment in Transferable Securities) (Amendment) UCITS Regulations, 2016 (the “UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the “Central Bank UCITS Regulations”) and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown. Responsibilities of the Depositary Our duties and responsibilities are outlined in the UCITS Regulations. One of those duties is to enquire into the conduct of the Company in each annual accounting period and report thereon to the shareholders. Our report shall state whether, in our opinion the Company has been managed in that year, in accordance with the provisions of the Company’s Constitution, the UCITS Regulations and the Central Bank UCITS Regulations. It is the overall responsibility of the Company to comply with these provisions. If the Company has not complied we, as Depositary must state why this is the case and outline the steps which we have taken to rectify the situation. Basis of Depositary Opinion The Depositary conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its duties as outlined in the UCITS Regulations and to ensure that, in all material respects, the Company has been managed: (i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the provisions of its

Constitution, the UCITS Regulations and the Central Bank UCITS Regulations; and: (ii) otherwise in accordance with the provisions of the Company’s Constitution, the UCITS Regulations and the Central Bank UCITS

Regulations. Opinion In our opinion, the Company has been managed during the year, in all material respects: (i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the Constitution, the UCITS

Regulations and the Central Bank UCITS Regulations; and (ii) otherwise in accordance with the provisions of the Constitution, the UCITS Regulations and the Central Bank UCITS Regulations. For and on behalf of ________________________ J.P. Morgan Bank (Ireland) plc JPMorgan House, International Financial Services Centre Dublin D01 W213 Ireland 24 October 2017

21


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF Hedge Invest International Funds plc 1 Report on the audit of the financial statements

Opinion

We have audited the financial statements of Hedge Invest International Funds plc (‘the Company’) for the year ended 30 June 2017, which comprise the Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares, Statement of Cash Flows, the related notes and the Total Expense Ratios on pages 3 and 4, including the summary of significant accounting policies set out in note 1. The financial reporting framework that has been applied in their preparation is Irish Law and International Financial Reporting Standards (“IFRS”) as adopted by the European Union. In our opinion, the accompanying financial statements: • give a true and fair view of the assets, liabilities and financial position of the Company as at 30 June 2017 and of its changes

in net assets attributable to holders of redeemable participating shares for the year then ended; • have been properly prepared in accordance with (IFRS) as adopted by the European Union; and • have been properly prepared in accordance with the requirements of the Companies Act 2014, the European Communities

(Undertakings for Collective Investment in Transferable Securities) Regulations 2011 and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48 (1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (Ireland) (“ISAs (Ireland)”) and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with ethical requirements that are relevant to our audit of financial statements in Ireland, including the Ethical Standard issued by the Irish Auditing and Accounting Supervisory Authority (“IAASA”), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Going concern We have nothing to report in respect of the following matters in relation to which ISA 570 (Ireland) ‘Going concern’ requires us to report to you where:

• the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate: or

• the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when which the financial statements are authorised for issue.

Other information The directors are responsible for preparation of other information accompanying the financial statements. The other information comprises the information included in the directors’ report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion on that information. In connection with our audit of the financial statements, ISAs (Ireland) and the Companies Act 2014 require that we read the other information and, in doing so, consider whether that information is materially inconsistent with the financial statements or our knowledge obtained from our audit work, or otherwise appears to be materially misstated. Based solely on that work, we report that

• we have not identified material misstatements in the directors’ report;

• in our opinion, the information given in the directors’ report is consistent with the financial statements;

• in our opinion, the directors’ report has been prepared in accordance with the Companies Act 2014, the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48 (1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015.

22


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF Hedge Invest International Funds plc (continued) Opinions on other matters prescribed by the Companies Act 2014

We have obtained all the information and explanations which we consider necessary for the purposes of our audit.

In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited and the financial statements are in agreement with the accounting records.

Matters on which we are required to report by exception

The Companies Act 2014 requires us to report to you if, in our opinion, the disclosures of directors’ remuneration and transactions required by sections 305 to 312 of the Act are not made. We have nothing to report in this regard.

2 Respective responsibilities and restrictions on use

Responsibilities of directors for the financial statements

As explained more fully in the directors’ responsibilities statement set out on page 20, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine 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 directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) 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.

A fuller description of our responsibilities is provided on IAASA’s website at: https://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f-a98202dc9c3a/Description_of_auditors_responsiblities_for_audit.pdf

The purpose of our audit work and to whom we owe our responsibilities

Our report is made solely to the Company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Signature: Ivor Conlon 24 October 2017 for and on behalf of KPMG Chartered Accountants, Statutory Audit Firm 1 Harbourmaster Place IFSC Dublin 1

23


STATEMENT OF FINANCIAL POSITION

Note

HI Numen Credit Fund

as at 30 June 2017 EUR ’000

HI Principia Fund as at 30 June 2017

EUR ’000



HI Core UCITS Fund

as at 30 June 2017 EUR’000

HI Africa

Opportunities Fund as at 30 June 2017

EUR’000

HI Numen Bear

Rates Fund1 as at 30 June 2017

USD’000

Company Total


ASSETS

Cash and cash equivalents 2(c) 49,118 20,823 11,513 2,300 2,351 10,347 95,177

Margin cash 17,843 18,561 13,734 - - 729 50,777

Collateral cash 4 135,254 7,389 4,736 - 1,894 110 149,369

Receivable for investments sold 3,096 556 611 - 272 - 4,535

Receivable for shares subscribed - 179 - - - - 179

Other receivables 1,847 189 57 62 - 10 2,164

Financial assets at fair value through profit or loss: 15

Investment funds

- Investment in exchange traded funds - - - 1,875 - - 1,875

- Investment in investment funds2 - - - 33,272 - - 25,534

Transferable securities

- Investment in bonds 246,149 - 15,135 - - - 261,284

- Investment in equities 42,318 71,551 - - 15,579 - 129,448

- Investment in exchange traded notes - - - - - 1,141 1,000

Money Market instruments

- Investment in time deposits - 59,918 34,699 - 681 - 95,298

Financial derivative instruments

- Unrealised gains on contracts for difference 2,106 1,836 - - 188 - 4,130

- Unrealised gains on credit default swaps 14,318 - - - - 10 14,327 - Unrealised gains on exchange traded options

purchased 233 329 - -

-

- 562

- Unrealised gains on forward currency contracts 1,411 268 1,112 13 1 43 2,843

- Unrealised gains on futures contracts 588 - - - - 162 730

- Unrealised gains on interest rate swaps - - - - - - -

- Unrealised gains on swaptions purchased - - - - - - -

Total assets 514,281 181,599 81,597 37,522 20,966 12,552 839,232 1HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available.

2Cross holdings within the Company have been eliminated on combination . See Note 14.

24


STATEMENT OF FINANCIAL POSITION (continued)

Note




EUR ’000



HI Core UCITS Fund


HI Africa

Opportunities Fund as at 30 June 2017

EUR’000

HI Numen Bear

Rates Fund1 as at 30 June 2017

USD’000

Company Total


LIABILITIES

Bank overdraft - - (1) - - - (1)

Payable for investments purchased (22,156) (14,117) (611) - - - (36,884)

Payable for shares redeemed - (6) - (1,292) - - (1,298)

Other payables 9 (1,013) (2,251) (256) (155) (142) (49) (3,860)

Financial liabilities at fair value through profit or loss: 15 Financial derivative instruments

- Unrealised losses on contracts for difference (2,755) (2,474) (21) - (11) - (5,261)

- Unrealised losses on credit default swaps (27,044) - - - - (135) (27,162) - Unrealised losses on exchange traded options

written (8) - - - - - (8)

- Unrealised losses on forward currency contracts (524) (133) (59) (22) (5) - (743)

- Unrealised losses on futures contracts (628) - - - - (41) (664)

- Unrealised losses on interest rate swaps - - - - - - -

- Unrealised losses on swaptions written - - - - - - -

Total liabilities (excluding net assets attributable to redeemable participating shareholders)

(54,128) (18,981) (948) (1,469) (158) (225) (75,881)

Net assets attributable to redeemable participating shareholders at the end of the year

10 460,153 162,618 80,649 36,053 20,808 12,327 763,351

1HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available.

The accompanying notes form an integral part of these financial statements. Approved on behalf of the Board of Directors.

Teddy Otto John Skelly

Director Director 24 October 2017 24 October 2017

25



Note




EUR ’000



HI Core UCITS Fund




Company Total as at 30 June 2016

EUR ’000 ASSETS

Cash and cash equivalents 2(c) 88,431 18,665 10,580 1,257 5,554 124,487

Margin cash 20,846 6,860 8,093 - - 35,799

Collateral cash 4 177,605 18,259 5,306 - 1,338 202,508

Receivable for investments sold 8,292 4,535 1,790 2,485 555 17,657

Receivable for shares subscribed - - - - - -

Other receivables 2,343 198 94 61 48 2,744

Financial assets at fair value through profit or loss: 15

Investment funds

- Investment in exchange traded funds - - - 626 - 626

- Investment in investment funds1 - - - 37,070 - 28,593

Transferable securities

- Investment in bonds 691,103 - 18,312 - 5,401 714,816

- Investment in equities 25,701 110,166 353 - 15,536 151,756

- Investment in exchange traded notes - - - 467 - 467

Money Market instruments

- Investment in time deposits - 27,150 45,910 - 7,500 80,560

Financial derivative instruments

- Unrealised gains on contracts for difference 2,221 1,597 - - 172 3,990

- Unrealised gains on credit default swaps 14,615 - - - - 14,615 - Unrealised gains on exchange traded options

purchased 1,747 - 13 - - 1,760

- Unrealised gains on forward currency contracts 14,032 2,247 370 - 151 16,800

- Unrealised gains on futures contracts - - - - - -

- Unrealised gains on interest rate swaps 459 - - - - 459

- Unrealised gains on swaptions purchased 2,588 - - - - 2,588

Total assets 1,049,983 189,677 90,821 41,966 36,255 1,400,225 1Cross holdings within the Company have been eliminated on combination. See Note 14.

26



Note




EUR ’000



HI Core UCITS Fund




Company Total as at 30 June 2016

EUR ’000 LIABILITIES

Bank overdraft - - - - (5) (5)

Payable for investments purchased (12,551) (8,852) - - (1,628) (23,031)

Payable for shares redeemed - (62) - (1,130) - (1,192)

Other payables 9 (2,840) (439) (295) (164) (146) (3,884)

Financial liabilities at fair value through profit or loss: 15 Financial derivative instruments

- Unrealised losses on contracts for difference (922) (2,102) - - (58) (3,082)

- Unrealised losses on credit default swaps (12,583) - - - - (12,583) - Unrealised losses on exchange traded options

written (603) - - - - (603)

- Unrealised losses on forward currency contracts (14,460) (731) (1,097) (10) (95) (16,393)

- Unrealised losses on futures contracts (918) (88) (217) - - (1,223)

- Unrealised losses on interest rate swaps - - - - - -

- Unrealised losses on swaptions written (1,639) - - - - (1,639)

Total liabilities (excluding net assets attributable to redeemable participating shareholders) 10

(46,516) (12,274) (1,609) (1,304) (1,932) (63,635)

Net assets attributable to redeemable participating shareholders at the end of the year

1,003,467 177,403 89,212 40,662 34,323 1,336,590

The accompanying notes form an integral part of these financial statements.

27


STATEMENT OF COMPREHENSIVE INCOME

Note


for the year ended 30 June 2017

EUR ’000

HI Principia Fund for the year ended

30 June 2017 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR’000



EUR’000

HI Numen Bear

Rates Fund1 for the period from

7 April 2017 to 30 June 2017

USD’000

Company Total


EUR ’000 Operating income

- Bond interest income 8,766 - 130 16 - - 8,912

- Dividend income 497 1,420 145 35 502 - 2,599

- Income from contracts for difference 14 - - - - - 14

- Income from liquidity instruments - - 212 - - - 212

- Swap interest income 10,670 - - - - 5 10,675

- Other income - 15 26 201 5 - 247

Net (losses)/gains on financial assets/liabilities at fair value through profit or loss2

5 (11,216)

16,899

3,913

2,051 1,140 753 13,354

Total revenue 8,731 18,334 4,426 2,303 1,647 758 36,013

Contracts for difference expense (6,499) (847) (24) - (247) - (7,617)

Investment management fee 6 (10,713) (2,868) (1,471) (395) (502) (39) (15,984)

Performance fee 6 - (2,103) - (1) - - (2,104)

Swap interest expense (13,247) - - - - (10) (13,256)

Transaction costs 7 (1,338) (174) (109) - - (9) (1,629)

Operating expenses 8 (2,937) (884) (437) (317) (463) (82) (5,113)

Total operating expenses (34,734) (6,876) (2,041) (713) (1,212) (140) (45,703)

Net operating (loss)/profit (26,003) 11,458 2,385 1,590 435 618 (9,690)

(Decrease)/increase in net assets attributable to holders of redeemable participating shares before tax

(26,003)

11,458 2,385 1,590 435 618 (9,690)

Withholding tax (128) (176) (19) (1) (43) - (367)

(Decrease)/increase in net assets attributable to holders of redeemable participating shares

(26,131)

11,282

2,366

1,589 392 618 (10,057)


2Gains on cross investments within the Company have been eliminated on combination. See Note 14.

There are no gains or losses arising in the year/period other than those dealt within the Statement of Comprehensive Income. In arriving at the results of the financial year, all amounts relate to continuing operations.


28


STATEMENT OF COMPREHENSIVE INCOME (continued)

Note



EUR ’000


30 June 2016 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR ’000

HI Africa

Opportunities Fund for the year ended

30 June 2016 EUR’000

Company Total for the year ended

30 June 2016 EUR ’000

Operating income

- Bond interest income 10,871 - 92 1 - 10,964

- Dividend income 145 1,647 52 - 80 1,924

- Income from contracts for difference 117 203 - - - 320

- Income from liquidity instruments - - 51 - - 51

- Swap interest income 7,977 - - - - 7,977

- Other income - 3 12 267 1 283

Net (losses)/gains on financial assets/liabilities at fair value through profit or loss1

5 (29,653)

8,860

1,351

(2,290) 1,293 (20,389)

Total revenue (10,543) 10,713 1,558 (2,022) 1,374 1,130

Contracts for difference expense (72) (92) (1) - (453) (618)

Investment management fee 6 (12,091) (2,707) (1,297) (495) (594) (17,184)

Performance fee 6 (86) (733) (867) - (633) (2,319)

Swap interest expense (12,648) - - - - (12,648)

Transaction costs 7 (1,239) (210) (140) - - (1,589)

Operating expenses 8 (2,501) (710) (382) (291) (320) (4,204)

Total operating expenses (28,637) (4,452) (2,687) (786) (2,000) (38,562)

Net operating (loss)/profit (39,180) 6,261 (1,129) (2,808) (626) (37,432)

(Decrease)/increase in net assets attributable to holders of redeemable participating shares before tax

(39,180)

6,261 (1,129) (2,808) (626) (37,432)

Withholding tax (10) (249) (8) - (8) (275)


(39,190)

6,012

(1,137)

(2,808) (634) (37,707)

1Gains on cross investments within the Company have been eliminated on combination. See Note 14. There are no gains or losses arising in the year other than those dealt within the Statement of Comprehensive Income. In arriving at the results of the financial year, all amounts relate to continuing operations.


29


STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES



EUR ’000


30 June 2017 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR’000


for the year ended 30 June 2017 EUR’000

HI Numen Bear


7 April 2017 to 30 June 2017

USD’000

Company Total


EUR ’000

Net assets attributable to holders of redeemable participating shares at the beginning of the year/period

1,003,467 177,403

89,212 40,662 34,323

- 1,336,590

Notional foreign exchange adjustment - - - - - - (362)


(26,131) 11,282 2,366 1,589 392 618 (10,057)

Share transactions2:

Proceeds from issue of redeemable participating shares 117,537 25,395 17,756 5,840 1,000 11,709 178,992

Payments on redemption of redeemable participating shares

(634,720) (51,462) (28,685) (12,038) (14,907) - (741,812)

(Decrease)/increase in net assets resulting from share transactions

(517,183) (26,067) (10,929) (6,198) (13,907) 11,709 (562,820)

Net assets attributable to holders of redeemable participating shares at the end of the year/period

460,153 162,618 80,649 36,053 20,808 12,327 763,351


2Cross subscriptions within the Company have been eliminated. See Note 14.


30


STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES (continued)

HI Numen

Credit Fund for the year ended

30 June 2016 EUR ’000


30 June 2016 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR ’000



EUR’000


30 June 2016 EUR ’000

Net assets attributable to holders of redeemable participating shares at the beginning of the year

561,640 136,743

51,535 48,689 29,130

819,941


(39,190) 6,012 (1,137) (2,808) (634) (37,707)

Share transactions1:

Proceeds from issue of redeemable participating shares 666,422 63,757 57,788 17,540 10,179 814,955

Payments on redemption of redeemable participating shares (185,405) (29,109) (18,974) (22,759) (4,352) (260,599)

Increase/(decrease) in net assets resulting from share transactions 481,017 34,648 38,814 (5,219) 5,827 554,356

Net assets attributable to holders of redeemable participating shares at the end of the year

1,003,467 177,403 89,212 40,662 34,323 1,336,590

1Cross subscriptions within the Company have been eliminated. See Note 14. The accompanying notes form an integral part of these financial statements.

31


STATEMENT OF CASH FLOWS 1



EUR ’000


30 June 2017 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR’000

HI Africa Opportunities Fund for the year ended

30 June 2017 EUR’000

HI Numen Bear


7 April 2017 to 30 June 2017

USD’000

Company Total

for the year ended

30 June 2017 EUR ’000

Cash flows from operating activities:


(26,131) 11,282 2,366 1,589 392 618 (10,075)

Adjustments to reconcile net profit to net cash provided by/(used in) operating activities:

Decrease/(increase)in operating assets:

Financial assets at fair value through profit or loss 445,343 7,258 14,012 3,003 12,311 (1,356) 479,999

Other receivables and prepayments 5,692 3,988 1,216 2,484 331 (10) 13,702

(Decrease)/increase in operating liabilities: Financial liabilities at fair value through profit or loss

(166)

(314)

(1,234) 12

(137)

176 (1,685)

Other payables 7,778 7,077 572 (9) (1,632) 49 13,829

Net cash provided by/(used in) operating activities 432,516

29,291

16,932 7,079

11,265

(523) 495,770

Cash flows from financing activities

Proceeds from issue of redeemable participating shares during the year/period

117,537

25,216

17,756 5,840

1,000

11,709 178,469

Payments for redemption of redeemable participating shares during the year/period (634,720)

(51,518)

(28,685) (11,876)

(14,907)

- (741,706)

Net cash (used in)/provided by financing activities (517,183) (26,302) (10,929) (6,036) (13,907) 11,709 (563,237)

Net (decrease)/increase in cash and cash equivalents (84,667) 2,989 6,003 1,043 (2,642) 11,186 (67,467)

Cash, cash equivalents, and pledged cash, beginning of year/period

286,882

43,784

23,979 1,257

6,887

- 362,789

Cash, cash equivalents and pledged cash, end of year/period

202,215

46,773

29,982 2,300

4,245

11,186 295,322

1The indirect method has been applied in the preparation of the statement of cash flows for the Company. 2HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available.

Supplementary information

Interest received 19,669 76 340 16 7 5 20,112

Dividends received 497 1,420 145 36 502 - 2,600

Interest paid (20,704) (1,082) (99) (13) (294) (12) (22,203)

The accompanying notes from an integral part of these financial statements.

32


STATEMENT OF CASH FLOWS 1 (continued)

HI Numen

Credit Fund for the year ended

30 June 2016 EUR ’000


30 June 2016 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR ’000



EUR ’000


30 June 2016 EUR ’000

Cash flows from operating activities:


(39,190) 6,012 (1,137) (2,808) (634) (37,707)

Adjustments to reconcile net profit to net cash (used in)/ provided by operating activities:

(Increase)/decrease in operating assets:

Financial assets at fair value through profit or loss (251,335) (29,175) (30,777) 6,889 (7,533) (311,250)

Other receivables and prepayments (3,401)2 (4,558) (960) (2,473) (357) (11,749)

Increase/(decrease) in operating liabilities:

Financial liabilities at fair value through profit or loss

20,664 (2,050) 750 (30) (63) 19,271

Other payables 13,6162 7,4942 (381) (479)2 (3,830)2 16,420

Net cash (used in)/ provided by operating activities (259,646) (22,277) (32,505) 1,099 (12,417) (325,015)

Cash flows from financing activities

Proceeds from issue of redeemable participating shares during the year

674,0082 63,757 57,788 17,540 10,179 822,541

Payments for redemption of redeemable participating shares during the year

(187,647)2 (29,254)2 (18,974) (21,638)2 (4,361)2 (261,874)

Net cash provided by/(used in) financing activities 486,361 34,503 38,814 (4,098) 5,818 560,667

Net increase/(decrease) in cash and cash equivalents 226,715 12,226 6,309 (2,999) (6,599) 235,652

Cash, cash equivalents, and pledged cash, beginning of year

60,167 31,558 17,670 4,256 13,486 127,137

Cash, cash equivalents and pledged cash, end of year 286,882 43,784 23,979 1,257 6,887 362,789

1The indirect method has been applied in the preparation of the statement of cash flows for the Company. 2Prior year figures have been reclassified to keep consistent with current year classification.

Supplementary information

Interest received 19,861 127 138 22 - 20,148

Dividends received 145 1,721 53 - 80 1,999

Interest paid (13,260) (351) (46) (8) (477) (14,142)

The accompanying notes from an integral part of these financial statements.

33


NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2017 1. Basis of preparation a) Statement of compliance

The financial statements for the year ended 30 June 2017 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”).

b) Basis of measurement

The financial statements have been prepared on the historical cost basis except for financial assets and financial liabilities at fair value through profit or loss and derivative financial instruments which are measured at fair value.

c) Functional and presentation currency

The financial statements are presented in Euro, which is the functional currency of the Company reflecting the fact that the denomination of the redeemable shares of the Company and all the subscriptions and redemptions of the redeemable shares are denominated in Euro, except CHF DM2 Shares, CHF D Shares, CHF DM Shares, CHF R Shares, USD I2 Shares, USD R Shares, USD DM2 Shares, USD D Shares, USD DM Shares, GBP I2 Shares, GBP DM2 Shares and GBP M Shares which are denominated in Swiss Franc, US Dollar and British Pound respectively. The presentation currency of HI Numen Credit Fund, HI Principia Fund, HI Sibilla Macro Fund, HI Core UCITS Fund, HI Africa Opportunities Fund is Euro and of HI Numen Bear Rates Fund is US Dollar.

d) Use of estimates and judgements

The preparation of the financial statements in conformity with IFRS as adopted by the EU requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

2. Significant accounting policies

a) Interest income and expense recognition

Interest income and expense are recognised in the Statement of Comprehensive Income using the effective interest method.

b) Expenses

Expenses are accounted for on an accruals basis and are charged to the Statement of Comprehensive Income.

c) Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposits, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included within liabilities.

d) Transaction costs Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial instrument. When a financial asset or financial liability is recognised initially, it is measured at its fair value through profit or loss. Transaction costs that are directly attributable to the acquisition or issue of the financial assets or financial liability are expensed immediately in the Statement of Comprehensive Income.

e) Cross holdings within Company

Any Funds which have cross-investments with other Funds within the Company will be disclosed and identified separately within the relevant Fund’s schedules of investments. The HI Core UCITS Fund contains holdings in other Funds within the Company as of 30 June 2017. The total management fees charged to the Company, as well as to each related fund concerned, may not exceed the rate of management fees indicated in note 6 (a) HI Core UCITS Fund disclosures. No sale of securities and redemption of shares fee shall be charged in the case of a cross-investment within the Company.

For the purposes of producing the combined financial statements, investments by Funds within the Company in the shares of other Funds within the Company, also known as ‘Cross Investments’, must be eliminated in order to prevent double counting. In preparing the combined Statement of Financial Position, the value of the financial assets at fair value through profit and loss of each of the Funds as recognised on each respective Fund’s Statement of Financial Position is reduced by the value of its Cross Investment as at 30 June 2017. In preparing the combined Statement of Comprehensive Income, the net gain/(loss) on financial assets at fair value through profit or loss is reduced by the amount of realised and unrealised gains and losses earned during the year on Cross Investments. In preparing the combined Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares, the proceeds and costs related to the issue and redemption of redeemable participating shares is reduced by the amount of cross subscriptions and redemptions within the Company during the year.

34


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 2. Significant accounting policies (continued) f) Investments Classification The Company classifies its investments into two categories: financial assets and liabilities held for trading and those at fair value through profit or loss. The category of financial assets held for trading are acquired or incurred principally for the purpose of trading in the short term. The category of financial assets through profit or loss comprises financial instruments designated by the directors, at inception, as being at fair value through profit or loss. Financial assets and financial liabilities designated at fair value through profit or loss at inception are those that are managed and their performance evaluated on a fair value basis in accordance with the documented investment strategy. Recognition/derecognition Purchases and sales of investments are accounted for on the day the trade transaction takes place. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or the risks and rewards of ownership have all been substantially transferred. Financial liabilities are derecognised when the obligation specified in the contract is discharged, cancelled or expires. Realised gains and losses on disposals are calculated using the average cost method and are reflected as net gains/(losses) on financial assets/liabilities at fair value in the Statement of Comprehensive Income. Measurement Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value. Gains and losses arising from changes in the fair value of the financial assets or financial liabilities are presented in the Statement of Comprehensive Income in the year in which they arise. Transaction costs are expensed in the Statement of Comprehensive Income. (i) Fair value estimation In accordance with the transitional provisions of IFRS 13 ‘Fair value measurement’, the Company has applied the definition of fair value as set out below. The preparation of financial statements requires the Directors to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amount of income and expenses during the period. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets and liabilities traded in active markets (such as publicly traded derivatives and trading securities) are based on quoted market price at the close of trading on the reporting date. The Company has applied IFRS 13 to utilise the last traded market price for both financial assets and financial liabilities when the last traded price falls within the bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread, management will decide the point within the bid-ask spread that is most representative of fair value. Cash shall be valued at face value (together with accrued interest to the relevant Dealing Day). All other securities and assets, including those for which reliable quotations or pricing services are not readily available, will be valued by the relevant Investment Manager at probable realisation value which must be estimated with care and in good faith. Liquidity instruments Time deposits are short-term highly liquid investments valued at par and are readily convertible to known amounts of cash. The time deposits are disclosed at fair value through profit or loss in the schedules of investments. Forward currency contracts A forward currency contract is an agreement between two parties to buy or sell a foreign currency at a future date, at a negotiated rate, the purpose of which is to manage currency risk arising from the Funds’ investment activities. The unrealised gain or loss on open forward currency contracts is calculated by reference to the difference between the contracted rate and the rate to close out the contract as at the year end date. Unrealised gains and losses are included in the Statement of Financial Position. Realised gains or losses are recognised on the maturity of a contract as the difference between the rate that the contract was entered into and the closing spot rate at the settlement date of the contract. Realised gains or losses and changes in unrealised gains or losses are recognised in the Statement of Comprehensive Income.

35


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 2. Significant accounting policies (continued) f) Investments (continued) Futures contracts

A futures contract is a contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. The changes in value of open futures contracts are recognised as unrealised gains or losses by marking-to-market the value of the contract at the year end date. Changes in the futures contracts’ value are settled daily with the exchange by paying or receiving a variation margin amount. When the contract is closed, the difference between the proceeds from (or cost of) the closing transactions and the original transaction is recorded in the net gains/(losses) on financial assets/(liabilities) at fair value through profit or loss in the Statement of Comprehensive Income.

Credit default swaps

A credit default swap is a financial contract whereby one party (the protection buyer) pays a fee in return for a payment by the protection seller contingent on the occurrence of a credit event with respect to a referenced entity.

The upfront payment received by the Funds, as protection seller, is recorded as a realised gain on the Funds’ books. An upfront payment made by the Funds, as protection buyer, is recorded as a liability in the Funds’ books. Interest payments received or paid by the Funds on swaps are recorded as swap interest income/(expense) and reflected on the Statement of Comprehensive Income.

Contracts are fair valued daily and the change, if any, is recorded as a net gain/(loss) on financial assets/(liabilities) at fair value through profit or loss.

Payments received or paid as a result of a credit event or termination of the contract are recognised as realised gains or losses. When the contract is closed, the realised gains and losses are recorded in the Statement of Comprehensive Income.

Interest rate swaps

Interest rate swaps outstanding at the end of the period are valued at their intrinsic value at the period end date. The discounted value of each single inflow and outflow of interest and capital is calculated at the period end. The net difference arising on this calculation is included as the "mark to market" value of the swap and is recorded as an unrealised gain/(loss) in the Statement of Comprehensive Income. Realised gains or losses on interest rate swaps are included in the Statement of Comprehensive Income.

Options

Options are financial instruments that convey the right, but not the obligation, to engage in a future transaction on some underlying security or in a futures contract. When the Funds purchase an option, an amount equal to the premium paid is recorded as an investment and is subsequently adjusted to the current fair value of the option purchased. The premium on purchased put options exercised is subtracted from the proceeds of the sale of the underlying security or foreign currency in determining the realised gain or loss and is recorded in the Statement of Comprehensive Income.

The premium on purchased call options exercised is added to the cost of the securities or foreign currency purchased. Premiums paid for the purchase of the options which expire unexercised are treated as realised losses. Unrealised gains or losses on options are included in assets or liabilities on the Statement of Financial Position and movements are dealt with through the Statement of Comprehensive Income.

Swaptions

Swaptions are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaption is granting or buying the right to enter into a previously agreed upon swap agreement at any time before the expiration of the option.

In purchasing and writing swaptions, the Fund bears the market risk of an unfavourable change in the price of the underlying swap or the risk that the Fund may not be able to enter into a closing transaction due to an illiquid market.

Exercise of a written swaption could result in the Fund purchasing a swap at a price different from the current market value. The Funds execute transactions in over-the-counter swaptions.

Contracts for difference

A contracts for difference (“CFD”) is an agreement between the Funds and a CFD counterparty to pay or receive the change in the value of an underlying security.

At each valuation point, the difference in price between the opening price of the CFD and the market price of the underlying equity is recorded as the fair value (unrealised gain or loss) of the CFD in the Statement of Financial Position.

When the CFD is closed, the difference between the opening price of the CFD and the closing price is recorded as a realised gain or loss in the Statement of Comprehensive Income. The interest and dividends received or paid are recorded in the Statement of Comprehensive Income as income from contracts for difference or contracts for difference expense.

36


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 2. Significant accounting policies (continued) g) Offsetting

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is a legally enforceable right to set-off the recognized amounts and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously. See note 3 (c) for further details.

h) New standards issued but not yet effective for the financial year beginning 1 July 2016 and not early adopted:

IFRS 9, “Financial instruments” (“IFRS 9”) (issued 12 November 2009, revised in October 2010, November 2013 and July 2014). IFRS 9 is effective for annual periods beginning on or after 1 January 2018 and has not been early adopted by the Company. IFRS 9 has been endorsed by the EU on 22 November 2016.

IFRS 9 replaces most of the guidance of IAS 39, “Financial instruments: Recognition and measurement” that relates to classification and measurement of financial instruments. The completed IFRS 9 (as revised in 2014) contains the requirements for a) the classification and measurement of financial assets and financial liabilities, b) impairment methodology and c) general hedge accounting.

IFRS 9 replaces the 'incurred loss' model in IAS 39 with an 'expected credit loss' model. The new impairment model also applies to certain loan commitments and financial guarantee contracts but not to equity investments. Under IFRS 9, credit losses are recognised earlier than under IAS 39. Based on the Fund's initial assessment, changes to the impairment model are not expected to have a material impact on the financial assets of the Fund. The is because: - the majority of the financial assets are measured at fair value through profit or loss and the impairment requirements do not apply to such instruments; and the financial assets at amortised cost are short-term (i.e. no longer than 12 months), of high credit quality and/or highly collaterised. Accordingly, the expected credit losses on such assets are expected to be small.

IFRS 9 establishes three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income and fair value through profit or loss. The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. For financial liabilities, there were no changes to classification and measurement except for the recognition of changes in the entity’s own credit risk in other comprehensive income, for liabilities designated at fair value through profit or loss. Based on the initial assessment, this standard is not expected to have a material impact on the Company. The fund does not apply hedge accounting; therefore, IFRS 9 hedge accounting related changes do not have an impact on the financial statements of the fund. IFRS 15, “Revenue from Contracts with Customers” was issued in May 2014 and is effective for annual periods beginning on or after 1 January 2018 and has not been early adopted by the Company. The new standard is not expected to have any impact on the Company’s financial statements. At the date of approval of these financial statements, there are a number of Standards, Amendments and Interpretations that are in issue but not yet effective. The Company has reviewed all new standards and have decided that they do not have an effect on the financial statements. i) New standards, amendments and interpretations effective for financial periods beginning 1 July 2016

There are no new standards, amendments and interpretations effective for financial periods beginning 1 July 2016 that have had a significant impact on the Company.

3. Financial Instruments and associated risks

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company’s activities expose it to a variety of financial risks, such as: a. market risk (i) price risk, (ii) currency risk, (iii) interest rate risk, b. liquidity risk and c. credit risk. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects of the Company’s financial performance. The Company may use derivative financial instruments to moderate certain risk exposures.

a) Market risk (i) Price risk Price risk arises mainly from uncertainty about the future prices of financial instruments held, it represents the potential loss the Company may suffer through holding market positions in the face of price movements. Where allowable under the investment objective and policy of the Company, the Investment Manager mitigates the risk of excessive exposure to any particular type of security or issuer. The Funds are exposed to price risk arising from their investment in investment funds, corporate bonds, government bonds, exchange traded funds, exchange traded notes, equities, time deposits, CFD, credit default swaps, interest rate swaps, forward currency contracts, futures contracts, options and swaptions.

37


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued)

a) Market risk (continued) (i) Price risk (continued) For HI Numen Credit Fund, HI Sibilla Macro Fund and HI Numen Bear Rates Fund, the Investment Manager uses a risk management technique known as absolute value-at-risk (“VaR”) to assess the Funds’ market risk to seek to ensure that the use of Financial Derivative Instruments (“FDI”) by the Funds is within regulatory limits. The VaR on the portfolio of each Fund shall not exceed 4.47% in any one day. The Investment Manager uses a Monte Carlo model for HI Numen Credit Fund and HI Numen Bear Rates Fund, and a Parametric model for HI Sibilla Macro Fund generated by Bloomberg’s Portfolio and Risk Analytics solution (“PORT”) application. The confidence level of the Funds shall be 99% and the holding period shall be one trading day. The historical observation period will not be less than one year, however, a shorter observation period may be used when appropriate. The VaR for the year ended 30 June 2017 based on 99% confidence level over one trading day is outlined in the following table:

Name of the Fund

30 June 2017 %

Average %

Maximum %

Minimum %

Level of leverage1

HI Numen Credit Fund 0.39 0.45 0.69 0.25 430% HI Sibilla Macro Fund 0.75 0.89 1.55 0.56 133% HI Numen Bear Rates Fund2 1.16 1.20 1.98 0.31 372%

1This figure is based on the sum of the notionals of the derivatives as at 30 June 2017.

2HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available. The VaR for the year ended 30 June 2016 based on 99% confidence level over one trading day was outlined in the following table:

Name of the Fund

30 June 2016 %

Average %

Maximum %

Minimum %

Level of leverage1

HI Numen Credit Fund 0.34 0.53 0.83 0.25 578% HI Sibilla Macro Fund 0.77 0.63 2.39 0.25 207%

1This figure is based on the sum of the notionals of the derivatives as at 30 June 2016. For HI Principia Fund, HI Core UCITS Fund and HI Africa Opportunities Fund the Investment Manager uses the commitment approach. The below sensitivity analysis explains the effect of changes in the market price on the performance of the Funds. At 30 June 2017, had the fair value of investments increased by 5%, with all other variables held constant, the net assets attributable to holders of redeemable participating shares would have increased as set out in the table below:

Sensitivity analysis: Price risk 30 June 2017

EUR ‘000 HI Principia Fund 1,849 HI Core UCITS Fund 1,757

HI Africa Opportunities Fund 594 A decrease in the fair value of investments by 5% would have an equal but opposite effect on the financial statements amounts shown, on the basis that all other variables remain constant. At 30 June 2016, had the fair value of investments increased by 5%, with all other variables held constant, the net assets attributable to holders of redeemable participating shares would have increased as set out in the table below:

Sensitivity analysis: Price risk 30 June 2016

EUR ‘000 HI Principia Fund 1,568 HI Core UCITS Fund 1,908

HI Africa Opportunities Fund 634

A decrease in the fair value of investments by 5% would have an equal but opposite effect on the financial statements amounts shown, on the basis that all other variables remain constant.

38


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued)

a) Market risk (continued)

(ii) Currency risk Foreign currency risk is the risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company may invest in securities denominated in currencies other than its reporting currency. Consequently, the Company is exposed to risks that the exchange rate of its reporting currency relative to other currencies may change in a manner which has an adverse effect on the value of the portion of the Company’s assets which are denominated in currencies other than its own currency. The Company invested in forward currency contracts to manage foreign currency risk. The Funds enter into forward currency contracts in order to hedge against foreign currency exchange rate risk of non-EUR denominated classes in HI Numen Credit Fund, HI Principia Fund, HI Sibilla Macro Fund, HI Core UCITS Fund, HI Africa Opportunities Fund and non-USD denominated classes in HI Numen Bear Rates Fund. The realised or unrealised gains or losses are allocated to the hedged share classes. The details of the contracts in place at the year-end date are disclosed in the Schedules of Investments. The table below and overleaf outlines the exposure to foreign currency risk as at 30 June 2017:

Foreign currency exposure

Monetary exposure

Non-monetary exposure

Gross foreign

currency exposure

Forward currency contracts

at portfolio level

Net

foreign currency exposure


(excluding share class

hedging)

Net foreign currency exposure

(excluding share class hedging

forwards) HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 CHF 731 - 731 5,578 6,309 - 731 GBP 7,885 318 8,203 17,628 25,831 (7,171) 1,032 HKD (214) 6 (208) (130,321) (130,529) (130,321) (130,529) JPY 489 (33) 456 - 456 - 456 SEK 17 2,014 2,031 (2,017) 14 (2,017) 14 USD 22,789 35,875 58,664 92,027 150,691 72,000 130,664 Total exposure to foreign currencies 31,697 38,180 69,877 (17,105) 52,772 (67,509) 2,368 Base currency: EUR 152,292 237,097 389,389 17,992 407,381 68,457 457,846 Net asset value 183,989 275,277 459,266 887 460,153 948 460,214 HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 CHF 9,059 3,522 12,581 (10,861) 1,720 (12,417) 164 DKK (9,882) 9,735 (147) 109 (38) 109 (38)

GBP 2,120 19,544 21,664 (22,077) (413) (22,077) (413)

NOK 2,257 858 3,115 (3,267) (152) (3,267) (152)

SEK (365) 2,378 2,013 (2,220) (207) (2,220) (207)

USD 2,533 - 2,533 473 3,006 (2,531) 2 Total exposure to foreign currencies

5,722 36,037 41,759 (37,843) 3,916 (42,403) (644)

Base currency: EUR 25,601 95,123 120,724 37,978 158,702 42,588 163,312 Net asset value 31,323 131,160 162,483 135 162,618 185 162,668 HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 CHF (51) - (51) 2,051 2,000 - (51)

JPY (704) - (704) - (704) - (704)

KRW - - - (10,337) (10,337) (10,337) (10,337)

TWD - - - (9,682) (9,682) (9,682) (9,682)

USD 17,928 49,813 67,741 (43,748) 23,993 (47,067) 20,674 Total exposure to foreign currencies

17,173 49,813 66,986 (61,716) 5,270 (67,086) (100)

Base currency: EUR 12,609 - 12,609 62,770 75,379 68,188 80,797 Net asset value 29,782 49,813 79,595 1,054 80,649 1,102 80,697

39


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) a) Market risk (continued) (ii) Currency risk (continued)

The table below outlines the exposure to foreign currency risk as at 30 June 2017 (continued):


Monetary exposure


Gross foreign

currency exposure


at portfolio level

Net

foreign currency exposure



hedging)



forwards) HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 CHF 1 - 1 - 1 - 1 GBP - 1,635 1,635 (1,649) (14) (1,649) (14) USD - 3,569 3,569 (1,622) 1,947 (3,529) 40 Total exposure to foreign currencies 1 5,204 5,205 (3,271) 1,934 (5,178) 27 Base currency: EUR 914 29,943 30,857 3,262 34,119 5,176 36,033 Net asset value 915 35,147 36,062 (9) 36,053 (2) 36,060 HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 AED - 741 741 - 741 - 741 EGP 132 3,675 3,807 - 3,807 - 3,807 GBP 143 1,244 1,387 - 1,387 - 1,387 KES 50 2,681 2,731 - 2,731 - 2,731 NGN 199 2,739 2,938 - 2,938 - 2,938 USD 179 225 404 722 1,126 - 404 ZAR 22 4,274 4,296 - 4,296 - 4,296 Total exposure to foreign currencies 725 15,579 16,304 722 17,026 - 16,304 Base currency: EUR 3,650 858 4,508 (726) 3,782 - 4,508 Net asset value 4,375 16,437 20,812 (4) 20,808 - 20,812 HI Numen Bear Rates Fund1 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 CHF (20) - (20) - (20) - (20) EUR (88) - (88) 11,955 11,867 - (88) GBP 17 - 17 - 17 - 17 HKD - - - (2,998) (2,998) (2,998) (2,998) JPY 7 - 7 - 7 - 7 Total exposure to foreign currencies

(84) - (84) 8,957 8,873 (2,998) (3,082)

Base currency: USD 11,352 1,016 12,368 (8,914) 3,454 3,000 15,368 Net asset value 11,268 1,016 12,284 43 12,327 2 12,286


The table below and overleaf outlines the exposure to foreign currency risk as at 30 June 2016:


Monetary exposure


Gross foreign

currency exposure


at portfolio level

Net foreign

currency exposure



hedging)



forwards) HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 CHF 82 - 82 21,241 21,323 - 82 GBP 2,046 160,889 162,935 (125,909) 37,026 (340,642) (177,707) HKD (252) - (252) (179,371) (179,623) (179,371) (179,623) JPY 383 - 383 - 383 - 383 USD 14,275 23,916 38,191 226,106 264,297 83,160 121,351 Total exposure to foreign currencies

16,534 184,805 201,339 (57,933) 143,406 (436,853) (235,514)

Base currency: EUR 264,674 537,882 802,556 57,505 860,061 447,233 1,249,789 Net asset value 281,208 722,687 1,003,895 (428) 1,003,467 10,380 1,014,275

40


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) a) Market risk (continued) (ii) Currency risk (continued) The table below outlines the exposure to foreign currency risk as at 30 June 2016 (continued):


Monetary exposure


Gross foreign

currency exposure


at portfolio level

Net foreign

currency exposure



hedging)



forwards) HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 CHF 1,756 15,631 17,387 (15,283) 2,104 (17,314) 73

DKK (69) (106) (175) 69 (106) 69 (106)

GBP 2,793 25,238 28,031 (25,678) 2,353 (25,678) 2,353

SEK 42 - 42 (46) (4) (46) (4)

USD 2,587 - 2,587 815 3,402 (2,586) 1 Total exposure to foreign currencies

7,109 40,763 47,872 (40,123) 7,749 (45,555) 2,317

Base currency: EUR 31,967 96,048 128,015 41,639 169,654 47,024 175,039

Net asset value 39,076 136,811 175,887 1,516 177,403 1,469 177,356

HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 CAD 155 - 155 - 155 - 155

CHF - - - 3,993 3,993 - -

JPY 28 - 28 - 28 - 28

KRW - - - (5,509) (5,509) (5,509) (5,509)

TWD - - - (2,200) (2,200) (2,200) (2,200)

USD 17,352 51,033 68,385 (50,829) 17,556 (54,260) 14,125 Total exposure to foreign currencies

17,535 51,033 68,568 (54,545) 14,023 (61,969) 6,599

Base currency: EUR 7,816 13,555 21,371 53,818 75,189 61,220 82,591

Net asset value 25,351 64,588 89,939 (727) 89,212 (749) 89,190

HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 CHF - - - 9 9 - -

GBP 2,485 2,399 4,884 (4,896) (12) (4,896) (12)

USD - 1,793 1,793 2,897 4,690 292 2,085 Total exposure to foreign currencies

2,485 4,192 6,677 (1,990) 4,687 (4,604) 2,073

Base currency: EUR 24 33,971 33,995 1,980 35,975 4,598 38,593

Net asset value 2,509 38,163 40,672 (10) 40,662 (6) 40,666

HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 CHF - - - 9 9 - -

EGP (135) 482 347 - 347 - 347

GBP 555 25 580 - 580 - 580

KES (141) 3,277 3,136 - 3,136 - 3,136

SEK - 39 39 - 39 - 39

USD - 5,401 5,401 3,568 8,969 (36) 5,365

ZAR 556 11,713 12,269 - 12,269 - 12,269 Total exposure to foreign currencies

835 20,937 21,772 3,577 25,349 (36) 21,736

Base currency: EUR 4,881 7,614 12,495 (3,521) 8,974 - 12,495

Net asset value 5,716 28,551 34,267 56 34,323 (36) 34,231

41


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) a) Market risk (continued)

(ii) Currency risk (continued) For HI Principia Fund, HI Core UCITS Fund and HI Africa Opportunities Fund, the Investment Manager uses the commitment approach. The below sensitivity analysis explains the effect of changes in the exchange rates on the performance of the Funds. At 30 June 2017, had the Euro weakened by 5% in relation to all currencies, the net assets attributable to holders of redeemable participating shares would have (decreased)/ increased as set out in the table below.

Sensitivity analysis: currency risk 30 June 2017

EUR ‘000 HI Principia Fund (32) HI Core UCITS Fund 1 HI Africa Opportunities Fund 815 A strengthening of the Euro by 5% would have an equal but opposite effect on the financial statements amounts shown, on the basis that all other variables remain constant. At 30 June 2016, had the Euro weakened by 5% in relation to all currencies, the net assets attributable to holders of redeemable participating shares would have increased as set out in the table below.

Sensitivity analysis: currency risk 30 June 2016

EUR ‘000 HI Principia Fund 116 HI Core UCITS Fund 104 HI Africa Opportunities Fund 1,087 A strengthening of the Euro by 5% would have an equal but opposite effect on the financial statements amounts shown, on the basis that all other variables remain constant. (iii) Interest rate risk Exposure to interest rate risk arises when the portfolio consists of financial instruments whose value is influenced by changes in interest rates. The Company is exposed to interest rate risk specifically through its investment in corporate bonds, government bonds, credit default swaps and interest rate swaps. The table below outlines the exposure to interest rate risk as at 30 June 2017:

Less than

1 month 1 to 3

months 3 months to 1 year

Greater than 1 year

Non-interest bearing

Assets/Liabilities

Total HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 49,118 - - - - 49,118 Margin cash 17,843 - - - - 17,843 Collateral cash 135,254 - - - - 135,254 Financial assets at fair value through profit or loss:

- - - - - -

Investment in bonds - 36,821 36,513 172,815 - 246,149 Investment in equities - - - - 42,318 42,318 Contracts for difference - - - 302 1,804 2,106 Credit default swaps - 66 1,017 13,235 - 14,318 Exchange traded options purchased - - - - 233 233 Forward currency contracts - - - - 1,411 1,411 Futures contracts - - - - 588 588 Receivables - - - - 4,943 4,943 Total Assets 202,215 36,887 37,530 186,352 51,297 514,281

42


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) a) Market risk (continued) (iii) Interest rate risk (continued) The table below outlines the exposure to interest rate risk as at 30 June 2017 (continued):

Less than

1 month 1 to 3


Greater than

1 year


Assets/Liabilities

Total HI Numen Credit Fund (continued) EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Liabilities Financial liabilities at fair value through profit or loss:

Contracts for difference - - - (313) (2,442) (2,755) Credit default swaps - - - (27,044) - (27,044) Exchange traded options written - - - - (8) (8) Forward currency contracts - - - - (524) (524) Future contracts - - - - (628) (628) Payables - - - - (23,169) (23,169) Total Liabilities - - - (27,357) (26,771) (54,128) HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 20,823 - - - - 20,823 Margin cash 18,561 - - - - 18,561 Collateral cash 7,389 - - - - 7,389 Financial assets at fair value through profit or loss:

Investment in equities - - - - 71,551 71,551 Investment in time deposits 59,918 - - - - 59,918 Contracts for difference - - - - 1,836 1,836 Exchange traded options purchased - - - - 329 329 Forward currency contracts - - - - 268 268 Receivables - - - - 924 924 Total Assets 106,691 - - - 74,908 181,599 Liabilities Financial liabilities at fair value through profit or loss:

Contracts for difference - - - - (2,474) (2,474) Forward currency contracts - - - - (133) (133) Payables - - - - (16,374) (16,374) Total Liabilities - - - - (18,981) (18,981)

HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 11,513 - - - - 11,513 Margin cash 13,734 - - - - 13,734 Collateral cash 4,736 - - - - 4,736 Financial assets at fair value through profit or loss:

Investment in bonds - - 12,523 2,612 - 15,135 Investment in time deposits 15,855 18,844 - - - 34,699 Forward currency contracts - - - - 1,112 1,112 Receivables - - - - 668 668 Total Assets 45,838 18,844 12,523 2,612 1,780 81,597

43


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued)


(iii) Interest rate risk (continued) The table below outlines the exposure to interest rate risk as at 30 June 2017 (continued):

Less than

1 month 1 to 3


Greater than 1 year


Assets/Liabilities

Total HI Sibilla Macro Fund (continued) EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Liabilities Bank overdraft (1) - - - - (1) Financial liabilities at fair value through profit or loss:

Contracts for difference - - - - (21) (21) Forward currency contracts - - - - (59) (59) Payables - - - - (867) (867) Total Liabilities (1) - - - (947) (948) HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 2,300 - - - - 2,300 Financial assets at fair value through profit or loss:

Investment in investment funds - - - - 33,272 33,272 Investment in exchange traded funds - - - - 1,875 1,875 Forward currency contracts - - - - 13 13 Receivables - - - - 62 62 Total Assets 2,300 - - - 35,222 37,522 Liabilities Financial liabilities at fair value through profit or loss:

Forward currency contracts - - - - (22) (22) Payables - - - - (1,447) (1,447) Total Liabilities (1,469) (1,469)

HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 2,351 - - - - 2,351 Collateral cash 1,894 - - - - 1,894 Financial assets at fair value through profit or loss:

Investment in equities - - - - 15,579 15,579 Investment in time deposits 681 - - - - 681 Contracts for difference - - - - 188 188 Forward currency contracts - - - - 1 1 Receivables - - - - 272 272 Total Assets 4,926 - - - 16,040 20,966 Liabilities Financial liabilities at fair value through profit or loss:

Contracts for difference - - - - (11) (11) Forward currency contracts - - - - (5) (5) Payables - - - - (142) (142) Total Liabilities - - - - (158) (158)

44


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) a) Market risk (continued) (iii) Interest rate risk (continued) The table below outlines the exposure to interest rate risk as at 30 June 2017 (continued):

Less than

1 month 1 to 3


Greater than 1 year


Assets/Liabilities

Total HI Numen Bear Rates Fund1 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 Assets Cash and cash equivalents 10,347 - - - - 10,347 Margin cash 729 - - - - 729 Collateral cash 110 - - - - 110 Financial assets at fair value through profit or loss:

Investment in exchange traded notes - - - - 1,141 1,141 Credit default swaps - - 10 - - 10 Forward currency contracts - - - - 43 43 Futures contracts - - - - 162 162 Receivables - - - - 10 10 Total Assets 11,186 - 10 - 1,356 12,552 Liabilities Financial liabilities at fair value through profit or loss:

Credit default swaps - - - (135) - (135) Futures contracts (41) (41) Payables - - - - (49) (49) Total Liabilities - - - (135) (90) (225)

1HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available. HI Principia Fund, HI Africa Opportunities Fund and HI Core UCITS Fund have limited exposure to interest rate risk and therefore an interest rate sensitivity analysis has not been presented.

The table below outlines the exposure to interest rate risk as at 30 June 2016:

Less than

1 month 1 to 3


Greater than 1 year


Assets/Liabilities

Total HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 88,431 - - - - 88,431 Margin cash 20,846 - - - - 20,846 Collateral cash 177,605 - - - - 177,605 Financial assets at fair value through profit or loss:

Investment in bonds 4,500 - 586,302 100,301 - 691,103 Investment in equities - - - - 25,701 25,701 Contracts for difference - - - - 2,221 2,221 Credit default swaps - 118 124 14,373 - 14,615 Exchange traded options purchased - - - - 1,747 1,747 Interest rate swaps - - - 459 - 459 Forward currency contracts - - - - 14,032 14,032 Swaptions purchased - - - - 2,588 2,588 Receivables - - - - 10,635 10,635 Total Assets 291,382 118 586,426 115,133 56,924 1,049,983

45





Less than

1 month 1 to 3


Greater than 1 year


Assets/Liabilities

Total HI Numen Credit Fund (continued) EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Liabilities Financial liabilities at fair value through profit or loss:

Contracts for difference - - - - (922) (922) Credit default swaps - - - (12,583) - (12,583) Exchange traded options written - - - - (603) (603) Forward currency contracts - - - - (14,460) (14,460) Futures contracts - - - - (918) (918) Swaptions written - - - - (1,639) (1,639) Payables - - - - (15,391) (15,391) Total Liabilities - - - (12,583) (33,933) (46,516) HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 18,665 - - - - 18,665 Margin cash 6,860 - - - - 6,860 Collateral cash 18,259 - - - - 18,259 Financial assets at fair value through profit or loss:

Investment in equities - - - - 110,166 110,166 Investment in time deposits 27,150 - - - - 27,150 Contracts for difference - - - - 1,597 1,597 Forward currency contracts - - - - 2,247 2,247 Receivables - - - - 4,733 4,733 Total Assets 70,934 - - - 118,743 189,677 Liabilities Financial liabilities at fair value through \profit or loss:

Contracts for difference - - - - (2,102) (2,102) Forward currency contracts - - - - (731) (731) Futures contracts - - - - (88) (88) Payables - - - - (9,353) (9,353) Total Liabilities - - - - (12,274) (12,274)

HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 10,580 - - - - 10,580 Margin cash 8,093 - - - - 8,093 Collateral cash 5,306 - - - - 5,306 Financial assets at fair value through profit or loss:

Investment in bonds - - 5,405 12,907 - 18,312 Investment in equities - - - - 353 353 Investment in time deposits 34,662 4,747 6,501 - - 45,910 Forward currency contracts - - - - 370 370 Exchange traded options purchased - - - - 13 13 Receivables - - - - 1,884 1,884 Total Assets 58,641 4,747 11,906 12,907 2,620 90,821

46





Less than

1 month 1 to 3


Greater than 1 year


Assets/Liabilities

Total HI Sibilla Macro Fund (continued) EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Liabilities Financial liabilities at fair value through profit or loss:

Forward currency contracts - - - - (1,097) (1,097) Futures contracts - - - - (217) (217) Payables - - - - (295) (295) Total Liabilities - - - - (1,609) (1,609) HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 1,257 - - - - 1,257 Financial assets at fair value through profit or loss:

Investment in collective investment schemes

- - - - 37,070 37,070

Investment in exchange traded funds - - - - 626 626 Investment in exchange traded notes - - - - 467 467 Receivables - - - - 2,546 2,546 Total Assets 1,257 - - - 40,709 41,966 Liabilities Financial liabilities at fair value through profit or loss:

Forward currency contracts - - - - (10) (10) Payables - - - - (1,294) (1,294) Total Liabilities - - - - (1,304) (1,304) HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 5,554 - - - - 5,554 Collateral cash 1,338 - - - - 1,338 Financial assets at fair value through profit or loss:

Investment in bonds 5,401 - - - - 5,401 Investment in equities - - - - 15,536 15,536 Investment in time deposits - 7,500 - - - 7,500 Contracts for difference - - - - 172 172 Forward currency contracts - - - - 151 151 Receivables - - - - 603 603 Total Assets 12,293 7,500 - - 16,462 36,255 Liabilities Bank overdraft (5) - - - - (5) Financial liabilities at fair value through profit or loss:

Contracts for difference - - - - (58) (58) Forward currency contracts - - - - (95) (95) Payables - - - - (1,774) (1,774) Total Liabilities (5) - - - (1,927) (1,932)

47


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) a) Market risk (continued) (iii) Interest rate risk (continued) At 30 June 2016, with all other variables held constant, the following table represents the potential increase/(decrease) in net assets attributable to holders of redeemable participating shares should changes in market interest rates cause the value of the interest bearing securities to increase/(decrease) by the following basis points amounts:

Sensitivity analysis: interest rate risk

Basis points 100

EUR ‘000 HI Africa Opportunities Fund 2

HI Principia Fund and HI Core UCITS Fund have limited exposure to interest rate risk and therefore an interest rate sensitivity analysis has not been presented. b) Liquidity risk Liquidity risk is the risk that the Company will encounter in realising assets or otherwise raising funds to meet financial commitments.

Where Shareholders redeem their shareholding in the Funds of the Company for an amount which exceeds the amount of cash or other liquid assets immediately available to fund such redemptions, the Funds may, subject to the provision of the Prospectus of the Company, decide to restrict redemption or, seek to liquidate additional assets to fund the redemption.

This may limit or otherwise affect the ability of each Fund to operate or manage investment positions and strategies within its portfolio and restrict or materially affect investment performance and returns. The Funds hold debt securities, equities, CFD, credit default swaps, interest rate swaps, investment funds, exchange traded funds, exchange traded notes, time deposits, options, swaptions, forward currency contracts and futures contracts as at 30 June 2017.

The tables below outline the Company’s liquidity risk exposure for its financial liabilities as at 30 June 2017:

Liquidity analysis Less than

1 month 1-3


Greater than 1 year Total

HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Payable for investments purchased 22,156 - - - 22,156 Other payables 1,013 - - - 1,013 Net assets attributable to redeemable participating shareholders

460,153 - - - 460,153

Credit default swaps - - - 27,044 27,044 Contracts for difference - - - 2,755 2,755 Exchange traded options written - - 8 - 8 Forward currency contracts 356 168 - - 524 Futures contracts 11 548 69 - 628 HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Payable for investments purchased 14,117 - - - 14,117 Payable for shares redeemed 6 - - - 6 Other payables 2,251 - - - 2,251 Net assets attributable to redeemable participating shareholders

162,618 - - - 162,618

Contracts for difference - - - 2,474 2,474 Forward currency contracts 133 - - - 133 HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Bank overdraft 1 - - - 1 Payable for investments purchased 611 - - - 611 Other payables 256 - - - 256 Net assets attributable to redeemable participating shareholders

80,649 - - - 80,649

Contracts for difference - - - 21 21 Forward currency contracts - 59 - - 59

48


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) b) Liquidity risk (continued) The tables below outline the Company’s liquidity risk exposure for its financial liabilities as at 30 June 2017 (continued):


1 month 1-3



HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Payable for shares redeemed 1,292 - - - 1,292 Other payables 155 - - - 155 Net assets attributable to redeemable participating shareholders

36,053 - - - 36,053

Forward currency contracts 22 - - - 22 HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Other payables 142 - - - 142 Net assets attributable to redeemable participating shareholders

20,808 - - - 20,808

Contracts for difference - - - 11 11 Forward currency contracts 5 - - - 5 HI Numen Bear Rates Fund1 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 Other payables 49 - - - 49 Net assets attributable to redeemable participating shareholders

12,327 - - - 12,327

Contracts for difference - - - 135 135 Futures contracts - 41 - - 41


The tables below outline the Company’s liquidity risk exposure for its financial liabilities as at 30 June 2016:


1 month 1-3



HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Payable for investments purchased 12,551 - - - 12,551 Other payables 2,840 - - - 2,840 Net assets attributable to redeemable participating shareholders

1,003,467 - - - 1,003,467

Credit default swaps - - - 12,583 12,583 Contracts for difference - - - 922 922 Exchange traded options written 603 - - - 603 Forward currency contracts 12,264 - 2,196 - 14,460 Futures contracts - 918 - - 918 Swaptions written 1,639 - - - 1,639 HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Payable for investments purchased 8,852 - - - 8,852 Payable for shares redeemed 62 - - - 62 Other payables 439 - - - 439 Net assets attributable to redeemable participating shareholders

177,403 - - - 177,403

Contracts for difference - - - 2,102 2,102 Forward currency contracts 731 - - - 731 Futures contracts - 88 - - 88

49


NOTES TO THE FINANCIAL STATEMENTS (continued )

For the year ended 30 June 2017

3. Financial Instruments and associated risks (continued)

b) Liquidity risk (continued)

The tables below outline the Company’s liquidity risk exposure for its financial liabilities as at 30 June 2016 (continued):


1 month 1-3



HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Other payables 295 - - - 295 Net assets attributable to redeemable participating shareholders

89,212 - - - 89,212

Forward currency contracts 189 908 - - 1,097 Futures contracts - 217 - - 217 HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Payable for shares redeemed 1,130 - - - 1,130 Other payables 164 - - - 164 Net assets attributable to redeemable participating shareholders

40,662 - - - 40,662

Forward currency contracts 10 - - - 10 HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Bank overdraft 5 - - - 5 Payable for investments purchased 1,628 - - - 1,628 Other payables 146 - - - 146 Net assets attributable to redeemable participating shareholders

34,323 - - - 34,323

Contracts for difference - - - 58 58 Forward currency contracts 95 - - - 95

c) Credit risk

Credit risk is the risk that an issuer of securities will be unable to pay principal and interest when due or that the value of the security will suffer because investors believe the issuer is less able to pay. The Investment Manager manages credit risk by pursuing a policy of diversification amongst issuers and counterparties and by monitoring the creditworthiness of individual issuers and counterparties in accordance with the investment objective, policies and restrictions applicable to the Funds. The Funds’ investments in bonds expose them to the default risk of the bond issuer with regards to interest or principal payments. All of the cash of HI Numen Credit Fund is held by Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, J.P. Morgan Bank (Ireland) plc, J.P. Morgan Chase Bank NA., Morgan Stanley, Nomura, Société Générale and UBS as at 30 June 2017 (Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Bank (Ireland) plc, JP Morgan Chase Bank NA., Morgan Stanley, Société Générale and UBS as at 30 June 2016). All of the cash, including time deposits of HI Principia Fund is held by BNP Paribas, J.P. Morgan Bank (Ireland) plc, J.P. Morgan Chase Bank NA, Lloyds Bank plc, Sumitomo Mitsui Banking Corp. and UBS as at 30 June 2017 and 30 June 2016. All of the cash, including time deposits of HI Sibilla Macro Fund is held by BNP Paribas, Citigroup, Goldman Sachs, J.P. Morgan Bank (Ireland) plc, Lloyds Bank plc and Sumitomo Mitsui Banking Corp. as at 30 June 2017 (BNP Paribas, Citigroup, Goldman Sachs, JP Morgan Bank (Ireland) plc, JP Morgan Chase Bank NA, Lloyds Bank plc and Sumitomo Mitsui Banking Corp. as at 30 June 2016). All of the cash of the HI Core UCITS Fund is held by J.P. Morgan Bank (Ireland) as at 30 June 2017 and 30 June 2016. All of the cash, including time deposits of the HI Africa Opportunities Fund is held by BNP Paribas, Goldman Sachs, J.P. Morgan Bank (Ireland) plc, J.P. Morgan Chase Bank NA, Lloyds Bank plc and Sumitomo Mitsui Banking Corp. as at 30 June 2017 and 30 June 2016. All of the cash of the HI Numen Bear Rates Fund is held by BNP Paribas, UBS and J.P. Morgan Bank (Ireland) plc as at 30 June 2017.

Credit ratings of debt securities or credit or reference entities represent the rating agencies' opinions regarding their credit quality and are not a guarantee of future credit performance of such securities. Rating agencies attempt to evaluate the safety of principal and interest payments and do not evaluate the risks of fluctuations in market value. The Depositary does not have a credit rating, however, its parent company J.P. Morgan Chase Bank N.A. has a long-term credit rating of A+.

The following table details the counterparties and their long term credit ratings as at 30 June 2017 and 30 June 2016:

Counterparties Ratings as at 30 June 2017

Ratings as at 30 June 2016

Barclays Bank A- A- BNP Paribas Securities Services A A Citigroup BBB+ BBB+ Credit Agricole A A Credit Suisse A A Deutsche Bank A- BBB+ Goldman Sachs A+ A

50


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) c) Credit risk (continued) The following table details the counterparties and their long term credit ratings as at 30 June 2017 and 30 June 2016 (continued):

Counterparties Ratings as at 30 June 2017

Ratings as at 30 June 2016

HSBC AA- AA- J.P. Morgan Chase Bank N.A A+ A+ Lloyds TSB A A Morgan Stanley BBB+ BBB+ Nomura A N/A Société Générale A A Sumitomo Mitsui Trust Bank Limited A A UBS A+ A+

The following table details the credit rating profile of the corporate, convertible, government bonds and time deposits held by the Funds as at 30 June 2017:

HI Numen Credit Fund EUR ‘000 B 2,963 B- 64,210 B+ 9,324 BB 16,417 BB- 13,361 BB+ 19,538 BBB- 33,954 BBB+ 35,032 C 11,502 CC 5,790 CCC 8,291 NR 25,767 Total 246,149

HI Principia Fund EUR ‘000 A-1 59,918 Total 59,918

HI Sibilla Macro Fund EUR ‘000 AA+ 15,135 A-1 34,699 Total 49,834

HI Africa Opportunities Fund EUR ‘000 A-1 681 Total 681

HI Core UCITS Fund and HI Numen Bear Rates Fund held no bonds or time deposits as at 30 June 2017 (30 June 2016: Nil).

The following table details the credit rating profile of the corporate, convertible and government bonds and time deposits held by the Funds as at 30 June 2016:

HI Numen Credit Fund EUR ‘000 A 2,962 AA 210,794 B- 28,828 BB+ 29,666 BB- 53,994 BBB+ 200,350 BBB- 155,165 CCC+ 4,331 CCC- 5,013 Total 691,103

51


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) c) Credit risk (continued) The following table details the credit rating profile of the corporate, convertible and government bonds and time deposits held by the Funds as at 30 June 2016 (continued):

HI Principia Fund EUR ‘000 A-1 27,150 Total 27,150

HI Sibilla Macro Fund EUR ‘000

AAA 18,312 A-1 45,910 Total 64,222

HI Africa Opportunities Fund EUR ‘000 AA+ 5,401 A-1 7,500 Total 12,901

The Company has adopted the amendment to IFRS 7 Disclosures - Offsetting Financial Assets and Financial Liabilities, and amendments to IAS 32, which requires entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Financial Position or subject to an enforceable master netting arrangement or similar agreement. Transactions involving derivative financial instruments are usually with counterparties with whom the Company has signed International Swaps and Derivatives Association (“ISDA”) agreements. ISDA agreements provide for the net settlement of contracts with the same counterparty in the event of default. The counterparty credit risk associated with derivative financial assets subject to ISDA agreements is eliminated only to the extent that financial liabilities due to the same counterparty will be settled after the assets are realised. The exposure to counterparty credit risk reduced by ISDA agreements may change significantly within a short period of time as a result of transactions subject to the arrangement. The corresponding assets and liabilities have not been offset on the Statement of Financial Position. The following table is a summary of the Company’s derivatives inclusive of potential netting arrangements. For financial reporting purposes, the Company does not offset financial assets and liabilities that are subject to master netting arrangements or similar agreements in the Statement of Financial Position. Gross value of derivatives inclusive of potential netting arrangements at 30 June 2017:

Counterparty Gross value of

derivative assets

Gross value of derivative liabilities

Collateral payable to

the fund Collateral

pledged Net HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Barclays 1,160 (3,527) - 7,310 4,943 BNP Paribas 2,314 (4,929) - 24,026 21,411 Citigroup 3,231 (1,808) - 2,450 3,873 Credit Suisse 995 (557) - 3,980 4,418 Deutsche Bank 2,327 - - 3,450 5,777 Goldman Sachs 2,656 (4,453) - 10,360 8,563 HSBC - (1,419) - 6,300 4,881 J.P. Morgan 3,127 (5,126) - 39,861 37,862 Morgan Stanley 47 (2,815) - 3,931 1,163 Nomura - - - 380 380 Société Générale 421 (3,247) - 5,530 2,704 UBS 2,378 (3,078) - 27,676 26,976 Total 18,656 (30,959) - 135,254 122,951 HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 BNP Paribas 1,836 (1,045) - 12,038 12,829 J.P. Morgan 597 (133) - 2,516 2,980 UBS - (1,429) (7,165) - (8,594) Total 2,433 (2,607) (7,165) 14,554 7,215

52


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) c) Credit risk (continued) Gross value of derivatives inclusive of potential netting arrangements at 30 June 2017 (continued):


derivative assets



the fund Collateral

pledged Net HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 BNP Paribas - (21) 130 109 Citibank 1,112 (59) 4,606 5,659 Total 1,112 (80) - 4,736 5,768 HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Credit Agricole 13 (22) - - (9) Total 13 (22) - - (9) HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 BNP Paribas 112 (6) - 1,387 1,493 Goldman Sachs 76 (5) - 290 361 J.P. Morgan 1 (5) - 217 213 Total 189 (16) - 1,894 2,067

HI Numen Bear Rates Fund1 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 BNP Paribas 10 (90) - 110 30

J.P. Morgan 43 (45) - - (2)

UBS 162 (41) - - 121

Total 215 (176) - 110 149 1HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available. Gross value of derivatives inclusive of potential netting arrangements as at 30 June 2016:


derivative assets



the fund Collateral

pledged Net HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Barclays 2,637 (954) - 3,430 5,113 BNP Paribas 2,347 (2,677) - 18,500 18,170 Citigroup 3,044 (2,776) - 13,800 14,068 Credit Suisse - (563) - 3,980 3,417 Deutsche bank - - - 2,800 2,800 Goldman Sachs 4,410 (3,461) - 11,380 12,329 J.P. Morgan 18,650 (16,268) - 91,852 94,234 Morgan Stanley 807 (930) - 5,450 5,327 Société Générale 1,195 (1,053) - 4,340 4,482 UBS 2,572 (2,443) - 22,073 22,202 Total 35,662 (31,125) - 177,605 182,142 HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 BNP Paribas 718 (1,958) - 8,212 6,972 J.P. Morgan 2,247 (819) - 2,583 4,011 UBS 879 (144) - 7,464 8,199 Total 3,844 (2,921) - 18,259 19,182 HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 BNP Paribas 13 - - 760 773 Citibank 370 (1,097) - 4,546 3,819 Goldman Sachs - (217) - - (217)

Total 383 (1,314) - 5,306 4,375

53


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 3. Financial Instruments and associated risks (continued) c) Credit risk (continued) Gross value of derivatives inclusive of potential netting arrangements at 30 June 2016 (continued):


derivative assets



the fund Collateral

pledged Net HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Credit Agricole - (10) - - (10) Total - (10) - - (10)

HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

BNP Paribas 86 (58) - 299 327

Goldman Sachs 86 - - 239 325

J.P. Morgan 151 (95) - 800 856

Total 323 (153) - 1,338 1,508 4. Collateral The total value of cash collateral pledged by the HI Numen Credit Fund, as at 30 June 2017, was EUR 135,253,550 (30 June 2016: EUR 177,605,924) The total value of cash collateral pledged by the HI Principia Fund, as at 30 June 2017, was EUR 7,388,364 (30 June 2016: EUR 18,258,749). The total value of cash collateral pledged by the HI Sibilla Macro Fund, as at 30 June 2017, was EUR 4,735,776 (30 June 2016: EUR 5,305,659). The total value of cash collateral pledged by the HI Africa Opportunities Fund, as at 30 June 2017, was EUR 1,893,846 (30 June 2016: EUR 1,338,539). The total value of cash collateral pledged by the HI Numen Bear Rates Fund, as at 30 June 2017, was USD 110,000. For further information on who the collateral of each Fund is held with, please refer to the table on pages 52 to 54.

54


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 5. Net gains/(losses) on financial assets/liabilities at fair value through profit or loss

Hedge Invest International Funds plc




30 June 2017



HI Core UCITS Fund


HI Africa


30 June 2017

HI Numen Bear Rates Fund1

for the period from 7 April 2017 to 30 June 2017

Company Total


EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR’000 USD ‘000 EUR’000 Realised gains/(losses) on transferable securities and investment funds

2,600 25,021 2,661 833 1,544 36 32,624

Realised gains/(losses) on financial derivative instruments 9,246 (2,089) 2,073 219 91 646 10,125 Realised gains/(losses) on financial assets/liabilities at fair value through profit or loss

11,846 22,932 4,734 1,052 1,635 682 42,749

Unrealised (losses)/gains on transferable securities and investment funds

(25,614) (4,861) (2,821) 997 (436) (93) (32,866)

Unrealised gains/(losses) on financial derivative instruments

2,552 (1,172) 2,000 2 (59) 164 3,471

Unrealised (losses)/gains on financial assets/liabilities at fair value through profit or loss

(23,062) (6,033) (821) 999 (495) 71 (29,395)

Net (losses)/gains on financial assets/liabilities (11,216) 16,899 3,913 2,051 1,140 753 13,354





30 June 2016



HI Core UCITS Fund


HI Africa


30 June 2016


30 June 2016 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR’000 EUR ‘000

Realised gains on transferable securities and investment funds

9,163 456 721 1,407 214 11,948

Realised (losses)/gains on financial derivative instruments (3,249) 10,995 1,319 559 (19) 9,605 Realised gains on financial assets/liabilities at fair value through profit or loss

5,914 11,451 2,040 1,966 195 21,553

Unrealised (losses)/gains on transferable securities and investment funds

(33,244) (4,072) 101 (4,275) 989 (40,438)

Unrealised (losses)/gains on financial derivative instruments

(2,323) 1,481 (790) 19 109 (1,504)

Unrealised (losses)/gains on financial assets/liabilities at fair value through profit or loss

(35,567) (2,591) (689) (4,256) 1,098 (41,942)

Net (losses)/gains on financial assets/liabilities (29,653) 8,860 1,351 (2,290) 1,293 (20,389)


55


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 6. Fees and expenses a) Investment management fees HI Numen Credit Fund

The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the NAV attributable to the relevant Share class as set out in the table below, which is accrued as of each Dealing Day and paid monthly in arrears in Euro.

Share class name Investment Management fee Service fee EUR A Shares 1.00% 0.00%

EUR DM Shares 1.00% 0.00%

EUR FOF Shares 1.75% 0.00%

EUR I Initial Shares 1.00% 0.00%

EUR I Shares 1.50% 0.00%

EUR M Shares 0.00% 0.00%

EUR R Shares 1.75% 0.00%

USD I2 Shares 1.50% 0.00%

USD R Shares 1.75% 0.00%

CHF R Shares 1.75% 0.00%

EUR D Shares 1.75% 0.20% USD D Shares 1.75% 0.20% CHF D Shares 1.75% 0.20% CHF DM2 Shares 1.30% 0.00%

EUR DM2 Shares 1.30% 0.00%

EUR I2 Shares 1.50% 0.00%

USD DM2 Shares 1.30% 0.00%

GBP I2 Shares 1.50% 0.00%

GBP DM2 Shares 1.30% 0.00%

GBP M Shares 0.00% 0.00% The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out of pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises. The Investment Management Fee incurred by the Fund amounted to EUR 10,712,653 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 12,090,978) of which EUR 567,410 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 1,195,934).The Investment Management fee rates have not changed since the year ended 30 June 2016. The Service Fee incurred by the Fund amounted to EUR 210,403 for the year ended 30 June 2017 (year ended 30 June 2016: 259,953) of which EUR 12,677 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 22,167). Service fee is included in miscellaneous expenses under operating expenses. HI Principia Fund The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the Net Asset Value attributable to the relevant Share class as set out below, which is accrued as of each Dealing Day and paid monthly in arrears in Euro.

Share class name Investment Management fee Service fee EUR DM Shares 1.00% 0.00%




USD DM Shares 1.00% 0.00%


CHF R Shares 2.00% 0.00% The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out of pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises.

56


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 6. Fees and expenses (continued) a) Investment management fees (continued) HI Principia Fund (continued) The Investment Management Fee incurred by the Fund amounted to EUR 2,867,895 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 2,707,194) of which EUR 229,049 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 249,207).The Investment Management fee rates have not changed since the year ended 30 June 2016. HI Sibilla Macro Fund

The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the Net Asset Value attributable to the relevant Share class as set out below, which is accrued as of each Dealing Day and paid monthly in arrears in Euro.





CHF DM Shares 1.00% 0.00%

CHF R Shares 2.00% 0.00%

The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out of pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises. The Investment Management Fee incurred by the Fund amounted to EUR 1,471,434 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 1,297,401) of which EUR 112,370 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 126,783). The Investment Management fee rates have not changed since the year ended 30 June 2016. HI Core UCITS Fund

The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the Net Asset Value attributable to the relevant Share class as set out above, which is accrued as of each Dealing Day and paid monthly in arrears in Euro.




USD DM Shares 0.80% 0.00%


CHF DM Shares 0.80% 0.00% The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out-of-pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises. The Investment Management Fee incurred by the Fund amounted to EUR 394,718 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 495,174) of which EUR 31,007 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 36,562). The Investment Management fee rates have not changed since the year ended 30 June 2016. HI Africa Opportunities Fund The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the Net Asset Value attributable to the relevant Share class as set out below, which is accrued as of each Dealing Day and paid monthly in arrears in Euro.




EUR D Shares 1.75% 0.35%

57


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2017 6. Fees and expenses (continued)

a) Investment management fees (continued)

HI Africa Opportunities Fund (continued)

Share class name Investment Management fee Service fee USD D Shares 1.75% 0.35% USD DM Shares 1.30% 0.00%

CHF D Shares 1.75% 0.35%

The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out of pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises.

The Investment Management Fee incurred by the Fund amounted to EUR 502,369 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 594,048) of which EUR 33,557 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 47,263). The Service Fee incurred by the Fund amounted to EUR 6,401 for the year ended 30 June 2017 (30 June 2016: EUR 9,623) of which EUR 353 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 753). Service fee is included in miscellaneous expenses under operating expenses. The Investment Management fee rates have not changed since the year ended 30 June 2016.

HI Numen Bear Rates Fund

The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the Net Asset Value attributable to the relevant Share class as set out below, which is accrued as of each Dealing Day and paid monthly in arrears in Euro.

Share class name Investment Management fee Service fee EUR FOF Shares 1.50% 0.00% EUR D Shares 1.50% 0.25%

The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out of pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises.

The Investment Management Fee incurred by the Fund amounted to USD 39,574 for the period ended 30 June 2017 of which USD 14,661 was outstanding as at period ended 30 June 2017. The Service Fee incurred by the Fund amounted to USD Nil for the period ended 30 June 2017 of which USD Nil was outstanding as at period ended 30 June 2017. Service fee is included in miscellaneous expenses under operating expenses.

b) Performance fees


The performance fee is equal to 10% (in the case of the EUR I Initial Shares and EUR A Shares) and 15% (in the case of the EUR DM Shares, EUR I Shares, EUR FOF Shares, EUR R Shares, CHF R Shares and USD R Shares) of the increase of the NAV per share of the relevant hurdle share class outstanding in respect of each performance period above the hurdle performance and subject to the high water mark. The Investment Manager is entitled to receive a performance fee in respect of the relevant non-hurdle share class (EUR I2 Shares, EUR D Shares, EUR DM2 Shares, GBP D Shares, GBP I2 Shares, GBP DM2 Shares, USD D Shares, USD DM2 Shares, USD I2 Shares, CHF D Shares, CHF DM2 Shares), equal to 20% of the increase of the NAV per share of the relevant non-hurdle share class, outstanding in respect of each performance period and subject to the high water mark.

Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing day.

The performance fee incurred by the Fund amounted to EUR Nil for the year ended 30 June 2017 (year ended 30 June 2016: EUR 86,184) of which EUR Nil was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR Nil).

HI Principia Fund

A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable.

Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing date.

As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance.

58


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 6. Fees and expenses (continued) b) Performance fees (continued) HI Principia Fund (continued) The performance fee incurred by the Fund amounted to EUR 2,103,041 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 732,652) of which EUR 1,757,886 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 2,862). HI Sibilla Macro Fund A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing date. As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance. The performance fee incurred by the Fund amounted to EUR Nil for the year ended 30 June 2017 (year ended 30 June 2016: EUR 866,440) of which EUR Nil was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR Nil). HI Core UCITS Fund

A performance fee in respect of all share classes of the Fund equal to 10% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing date. As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance. The performance fee incurred by the Fund amounted to EUR 886 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 23) of which EUR 886 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR Nil). HI Africa Opportunities Fund

A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing date. As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance. The performance fee incurred by the Fund amounted to EUR Nil for the year ended 30 June 2017 (year ended 30 June 2016: EUR 632,784) of which EUR Nil was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR Nil). HI Numen Bear Rates Fund A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing date. As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance.

The performance fee incurred by the Fund amounted to USD Nil for the period ended 30 June 2017 of which USD Nil was outstanding as at period ended 30 June 2017.

59


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 6. Fees and expenses (continued) c) Administrator’s fees HI Numen Credit Fund The Company shall pay the Administrator out of the assets of each Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 633,909 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 1,098,286) of which EUR 107,105 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 465,412). HI Principia Fund The Company shall pay the Administrator out of the assets of each Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 241,524 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 197,482) of which EUR 61,095 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 81,184). HI Sibilla Macro Fund The Company shall pay the Administrator out of the assets of each Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 150,869 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 120,270) of which EUR 43,414 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 61,880). HI Core UCITS Fund

The Company shall pay the Administrator out of the assets of the Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 130,952 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 133,955) of which EUR 43,072 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 53,063). HI Africa Opportunities Fund

The Company shall pay the Administrator out of the assets of the Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 170,285 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 150,181) of which EUR 40,317 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 48,711). HI Numen Bear Rates Fund The Company shall pay the Administrator out of the assets of the Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to USD 23,640 for the period ended 30 June 2017 of which USD 22,520 was outstanding as at period ended 30 June 2017. The Administrator shall also be entitled to be repaid out of the assets of each Fund all of its reasonable out-of-pocket expenses, as agreed at normal commercial rates, incurred on behalf of each Fund. d) Depositary’s fees HI Numen Credit Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 288,513 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 241,525) of which EUR 71,881 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: 222,226).

60


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 6. Fees and expenses (continued) d) Depositary’s fees (continued) HI Principia Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 95,033 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 92,542) of which EUR 27,643 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 43,487). HI Sibilla Macro Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 31,015 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 59,581) of which EUR 13,946 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 25,678). HI Core UCITS Fund

The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 52,029 for the year ended 30 June 2017 (year ended 30 June 2016: 52,169) of which EUR 17,528 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: EUR 21,221). HI Africa Opportunities Fund

The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 107,541 for the year ended 30 June 2017 (year ended 30 June 2016: 49,821) of which EUR 28,234 was outstanding as at year ended 30 June 2017 (year ended 30 June 2016: 21,812). HI Numen Bear Rates Fund

The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund).

The Depositary’s fee incurred by the Fund amounted to USD 6,730 for the period ended 30 June 2017 of which USD 6,730 was outstanding as at period ended 30 June 2017.

The Depositary is entitled to be repaid for all of its out-of-pocket expenses reasonably incurred on behalf of the Funds including transaction charges and sub-custodial fees.

e) Directors’ fees

The Directors shall be entitled to a fee and remuneration for their services at a rate to be determined from time to time by the Directors provided that no Director may be paid in excess of EUR 50,000 in any one financial year without the approval of the Board. Francesco Rovati, a non-executive Director, does not receive any remuneration. All Directors will be entitled to reimbursement by the Company of expenses properly incurred in connection with the business of the Company or the discharge of their duties. The Directors’ fees incurred by the Company amounted to EUR 65,500 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 65,500).

f) Audit fees

The audit fees incurred by the Company amounted to EUR 56,000 for the year ended 30 June 2017 (year ended 30 June 2016: EUR 47,000). Fees relate solely to the audit of the Company. The audit fees paid to KPMG in respect of reimbursement of expenses during the year ended 30 June 2017 was EUR 1,410 (year ended 30 June 2016: EUR 1,150).

61


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 6. Fees and expenses (continued)

g) Establishment expenses

All fees and expenses relating to the establishment of the Funds and the fees of the professional advisers to the Funds (establishment expenses) not exceeding EUR 75,000 for the HI Numen Credit Fund, not exceeding EUR 55,000 for the HI Principia Fund, HI Sibilla Macro Fund, HI Core UCITS Fund and HI Africa Opportunities Fund and not exceeding EUR 50,000 for HI Numen Bear Rates Fund will be borne by the Funds. Establishment fees are amortised over a 5 year period in the dealing NAV but are written off in the financial statements in the period that they were incurred.

7. Transaction costs Disclosed in the table below are separately identifiable transaction costs incurred by the Funds for the year ended 30 June 2017 and 30 June 2016. These include brokerage commissions and broker fees on exchange traded futures contracts, options and equities. Transaction costs on bonds, exchange traded funds, exchange traded notes, credit default swaps, CFD, interest rate swaps, forward currency contracts and investment funds could not be separately identified. Transaction costs on these are included in the purchase and sales price of the investment and cannot be separately verified or disclosed. Transaction costs on equities are embedded in the cost of the investment and included in net gains/(losses) on financial assets at fair value through profit or loss within the Statement of Comprehensive Income of each Fund. Transaction costs on futures contracts and options are included in transaction costs within the Statement of Comprehensive Income of each Fund.





30 June 2017



HI Core UCITS Fund





for the period from 7 April 2017 to 30

June 2017


30 June 2017 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 USD ‘000 EUR ‘000 Transaction costs 1,757 1,443 315 4 300 12 3,830 1,757 1,443 315 4 300 12 3,830





30 June 2016



HI Core UCITS Fund




Company Total for the year

ended 30 June 2016

EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Transaction costs 1,324 1,451 257 1 175 3,208 1,324 1,451 257 1 175 3,208


62


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 8. Operating expenses Operating expenses incurred by the Company for the year/period ended 30 June 2017 and year ended 30 June 2016 are disclosed in the table below.





30 June 2017



HI Core UCITS Fund





for the period from 7 April 2017 to

30 June 2017


30 June 2017 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 USD ‘000 EUR ‘000 Audit fees 27 10 8 7 7 5 64 Depositary fees 288 95 31 52 108 7 580 Directors fees 13 13 13 13 13 3 68 Fund Administration fees 634 241 151 130 170 23 1,347 Legal fees 437 103 113 64 86 - 803 Miscellaneous expenses 1,538 422 121 51 79 44 2,251 2,937 884 437 317 463 82 5,113





30 June 2016

HI Sibilla Macro Fund for the year ended

30 June 2016

HI Core UCITS Fund




Company Total


EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Audit fees 26 12 7 7 5 57 Depositary fees 242 93 60 52 50 497 Directors fees 13 2 2 13 13 43 Fund Administration fees 1,098 197 120 134 150 1,699 Legal fees 20 56 44 20 17 157 Miscellaneous expenses 1,102 350 149 65 85 1,751 2,501 710 382 291 320 4,204


63


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 9. Other payables


HI Numen Credit Fund 30 June 2017

HI Principia

Fund 30 June 2017

HI Sibilla

Macro Fund 30 June 2017

HI Core

UCITS Fund 30 June 2017

HI Africa Opportunities

Fund 30 June 2017

HI Numen Bear

Rates Fund1 30 June 2017

Company Total for the year

ended 30 June 2017

EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 USD ‘000 EUR ‘000

Audit fees 25 10 7 6 6 5 58 Depositary fees 72 27 14 17 28 7 164 Establishment expenses - - 39 40 8 - 87 Fund Administration fees 107 62 44 43 40 22 316 Legal fees 19 12 10 10 8 - 59 Management fees 567 229 112 31 34 15 986 Performance fees - 1,758 - 1 - - 1,759 Spot currency contracts payable awaiting settlement

- 9 - - - - 9

Other payables 223 144 30 7 18 - 422 1,013 2,251 256 155 142 49 3,860



30 June 2016

HI Principia Fund

30 June 2016


30 June 2016

HI Core

UCITS Fund 30 June 2016


Fund 30 June 2016

Company Total

30 June 2016 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Audit fees 27 9 7 6 6 55 Depositary fees 222 43 26 21 22 334 Establishment expenses - - 39 40 8 87 Fund Administration fees 465 81 62 53 49 710 Management fees 1,196 249 127 37 47 1,656 Performance fees - 3 - - - 3 Spot currency contract awaiting settlement

858 - - - 1 859

Other payables 72 54 34 7 13 180 2,840 439 295 164 146 3,884 1HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available.

64


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 10. Adjustment to align to the valuation methodology as set out in the prospectus

The adjustment between the financial statements NAV and the valuation methodology set out in the prospectus is shown below:



HI Principia Fund 30 June 2017

HI Sibilla Macro Fund 30 June 2017

EUR ‘000 EUR ‘000 EUR ‘000 Net assets attributable to redeemable participating shareholders at the end of the year per Financial Statements

460,153

162,618

80,649

Adjustment to establishment costs - 3 11 Total adjustment for the year - 3 11 Net assets attributable to redeemable participating shareholders at the end of the year

460,153

162,621

80,660


HI Core UCITS Fund 30 June 2017


Fund 30 June 2017


30 June 2017 EUR ‘000 EUR ‘000 USD ‘000 Net assets attributable to redeemable participating shareholders at the end of the year/period per Financial Statements

36,053

20,808

12,327

Adjustment to establishment costs 16 29 42 Total adjustment for the year/period 16 29 42 Net assets attributable to redeemable participating shareholders at the end of the year/period

36,069 20,837 12,369



HI Principia Fund

30 June 2016

HI Sibilla Macro Fund 30 June 2016

EUR ‘000 EUR ‘000 EUR ‘000 Net assets attributable to redeemable participating shareholders at the end of the year per Financial Statements

1,003,467 177,403 89,212

Adjustment to establishment costs - 11 19 Total adjustment for the year - 11 19 Net assets attributable to redeemable participating shareholders at the end of the year

1,003,467 177,414 89,231


HI Core UCITS Fund 30 June 2016


30 June 2016 EUR ‘000 EUR ‘000 Net assets attributable to redeemable participating shareholders at the end of the year per Financial Statements

40,662

34,323

Adjustment to establishment costs 24 40 Total adjustment for the year 24 40 Net assets attributable to redeemable participating shareholders at the end of the year

40,686

34,363


65


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 11. Taxation The Company is an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997. Therefore, the Company is not liable to tax in respect of its income and gains other than on the occurrence of a chargeable event. Generally a chargeable event arises on any distribution, redemption, repurchase, cancellation, transfer of shares or the ending of a “Relevant Period”. A “Relevant Period” is an eight year period beginning with the acquisition of the shares by the shareholder and each subsequent period of eight years beginning immediately after the preceding Relevant Period. A chargeable event does not arise in respect of: a) a shareholder who is not Irish resident and not ordinarily resident in Ireland at the time of the chargeable event, provided the necessary

signed statutory declarations are held by the Company; b) certain exempted Irish tax resident investors who have provided the Company with the necessary signed statutory declarations; c) an exchange of shares arising on qualifying amalgamation or reconstruction of the Company with another fund; d) any transaction in relation to shares held in a recognised clearing system as designated by order of the Revenue Commissioners of

Ireland; e) certain exchanges of shares between spouses and former spouses on the occasion of judicial separation and/or divorce; or f) an exchange by a shareholder, effected by way of an arm’s length bargain where no payment is made to the shareholder of shares in

the Company for other shares in the Company. Capital gains, dividends and interest (if any) received on investments made by the Company may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Company or its shareholders. In the absence of an appropriate signed declaration, the Company will be liable to Irish tax on the occurrence of a chargeable event, and the Company reserves its right to withhold such taxes from the relevant shareholders.

12. Share capital The issued and fully paid redeemable participating share capital is at all times equal to the NAV of the Company. Redeemable participating shares are redeemable at the shareholders’ option and are classified as financial liabilities. The authorised share capital of the Company is two Subscriber Shares of €1 each and 50,000,000,000,000 Shares of no par value. The Investment Manager and AM Holdings, the parent company of the Investment Manager, each hold one subscriber share. The following share classes launched during the year ended 30 June 2017:

HI Numen Bear Rates Fund Launch date

EUR FOF Shares 7 April 2017 EUR D Shares 12 May 2017

66


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 12. Share capital (continued) Participating share transactions for the year ended 30 June 2017: HI Numen Credit Fund EUR A Shares EUR DM Shares EUR FOF Shares Opening shares issued 521,850 126,247 18,442 Shares issued during the year - - - Shares redeemed during the year (177,021) (93,966) (9,081) Closing shares issued 344,829 32,281 9,361

EUR I Initial Shares EUR I Shares EUR M Shares Opening shares issued 203,168 130,769 12,030 Shares issued during the year - - 1,807 Shares redeemed during the year (22,941) (69,059) - Closing shares issued 180,227 61,710 13,837

EUR R Shares USD R Shares CHF R Shares Opening shares issued 778,589 21,009 22,961 Shares issued during the year - - - Shares redeemed during the year (225,770) (15,285) (4,401) Closing shares issued 552,819 5,724 18,560

EUR D Shares USD D Shares CHF D Shares Opening shares issued 994,835 371,627 50,115 Shares issued during the year 62,994 13,958 198 Shares redeemed during the year (391,029) (254,648) (27,696) Closing shares issued 666,800 130,937 22,617

CHF DM2 Shares EUR DM 2 Shares EUR I2 Shares Opening shares issued 43,337 1,788,362 3,441,576 Shares issued during the year 4,615 321,422 474,059 Shares redeemed during the year (25,681) (1,746,512) (2,035,474) Closing shares issued 22,271 363,272 1,880,161

USD DM2 Shares GBP I2 Shares GBP DM2 Shares Opening shares issued 243,255 451,722 439,614 Shares issued during the year 48,776 21,742 213,357 Shares redeemed during the year (196,351) (340,738) (561,774) Closing shares issued 95,680 132,726 91,197

GBP M Shares1 USD I2 Shares

Opening shares issued 1,000 168,112 Shares issued during the year - 6,123 Shares redeemed during the year (1,000) (168,929) Closing shares issued - 5,306 HI Principia Fund EUR DM Shares EUR FOF Shares EUR I Shares Opening shares issued 344,039 235,632 126,779 Shares issued during the year 141,972 - 7,000 Shares redeemed during the year (171,431) (28,896) (33,311) Closing shares issued 314,580 206,736 100,468

EUR R Shares USD DM Shares USD R Shares Opening shares issued 725,341 4,430 26,533 Shares issued during the year 55,770 - 533 Shares redeemed during the year (180,142) - (4,558) Closing shares issued 600,969 4,430 22,508

1On 11 November 2016, GBP M Share class was fully redeemed for HI Numen Credit Fund.

67

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 12. Share capital (continued) Participating share transactions for the year ended 30 June 2017 (continued):

HI Principia Fund (continued) CHF R Shares Opening shares issued 18,003 Shares issued during the year - Shares redeemed during the year (4,430) Closing shares issued 13,573 HI Sibilla Macro Fund EUR DM Shares EUR FOF Shares EUR R Shares Opening shares issued 258,423 227,110 332,425 Shares issued during the year 125,238 - 41,972 Shares redeemed during the year (146,110) (9,830) (96,848) Closing shares issued 237,551 217,280 277,549

USD R Shares CHF DM Shares CHF R Shares Opening shares issued 38,287 1,505 42,692 Shares issued during the year 3,979 - 401 Shares redeemed during the year (5,950) - (22,311) Closing shares issued 36,316 1,505 20,782 HI Core UCITS Fund EUR DM Shares EUR I Shares EUR R Shares Opening shares issued 268,273 42,963 48,834 Shares issued during the year 48,953 - 4,770 Shares redeemed during the year (74,460) (16,690) (13,553) Closing shares issued 242,766 26,273 40,051

USD DM Shares USD R Shares CHF DM Shares1 Opening shares issued 13,271 15,556 102 Shares issued during the year - - - Shares redeemed during the year (900) (6,989) (102) Closing shares issued 12,371 8,567 -

HI Africa Opportunities Fund EUR DM Shares EUR FOF Shares EUR I Shares Opening shares issued 119,947 192,210 2,893 Shares issued during the year 6,030 - - Shares redeemed during the year (114,691) - (946) Closing shares issued 11,286 192,210 1,947

EUR D Shares USD D Shares USD DM Shares Opening shares issued 9,624 20,992 22,413 Shares issued during the year 884 271 3,011 Shares redeemed during the year (1,197) (17,305) (25,081) Closing shares issued 9,311 3,958 343

CHF D Shares2 Opening shares issued 108 Shares issued during the period - Shares redeemed during the period (108) Closing shares issued - HI Numen Bear Rates Fund3 EUR FOF Shares4 EUR D Shares5 Opening shares issued - - Shares issued during the year 100,000 10,000 Shares redeemed during the year - - Closing shares issued 100,000 10,000


2On 28 April 2017, CHF D Share class was fully redeemed for HI Africa Opportunities Fund. 3HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available. 4On 7 April 2017, EUR FOF Share class was launched for HI Numen Bear Rates Fund. 5On 12 May 2017, EUR D Share class was launched for HI Numen Bear Rates Fund.

68


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 12. Share capital (continued) Participating share transactions for the year ended 30 June 2016: HI Numen Credit Fund EUR A Shares EUR DM Shares EUR FOF Shares Opening shares issued 521,850 153,712 26,530 Shares issued during the year - - 2,567 Shares redeemed during the year - (27,465) (10,655) Closing shares issued 521,850 126,247 18,442

EUR I Initial Shares EUR I Shares EUR M Shares Opening shares issued 246,785 176,693 14,019 Shares issued during the year - - 3,948 Shares redeemed during the year (43,617) (45,924) (5,937) Closing shares issued 203,168 130,769 12,030

EUR R Shares USD R Shares CHF R Shares Opening shares issued 902,935 37,414 28,512 Shares issued during the year - - - Shares redeemed during the year (124,346) (16,405) (5,551) Closing shares issued 778,589 21,009 22,961

EUR D Shares USD D Shares CHF D Shares Opening shares issued 678,697 302,037 127,363 Shares issued during the year 489,032 202,183 10,095 Shares redeemed during the year (172,894) (132,593) (87,343) Closing shares issued 994,835 371,627 50,115

CHF DM2 Shares EUR DM2 Shares EUR I2 Shares Opening shares issued 20,300 531,188 1,032,747 Shares issued during the year 27,501 1,508,869 3,178,848 Shares redeemed during the year (4,464) (251,695) (770,019) Closing shares issued 43,337 1,788,362 3,441,576

USD DM2 Shares GBP I2 Shares GBP DM2 Shares Opening shares issued 120,961 153,277 113,504 Shares issued during the year 169,785 332,212 357,358 Shares redeemed during the year (47,491) (33,767) (31,248) Closing shares issued 243,255 451,722 439,614

GBP M Shares USD I2 Shares Opening shares issued - - Shares issued during the year 1,000 176,030 Shares redeemed during the year - (7,918) Closing shares issued 1,000 168,112 HI Principia Fund EUR DM Shares EUR FOF Shares EUR I Shares Opening shares issued 89,829 235,137 71,581 Shares issued during the year 318,096 9,478 67,097 Shares redeemed during the year (63,886) (8,983) (11,899) Closing shares issued 344,039 235,632 126,779

EUR R Shares USD DM Shares USD I Shares Opening shares issued 739,712 21,746 28,725 Shares issued during the year 115,582 1,403 5,844 Shares redeemed during the year (129,953) (18,719) (8,036) Closing shares issued 725,341 4,430 26,533

CHF R Shares

Opening shares issued 20,272 Shares issued during the year 6,067 Shares redeemed during the year (8,336) Closing shares issued 18,003

69


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 12. Share capital (continued) Participating share transactions for the year ended 30 June 2016 (continued): HI Sibilla Macro Fund EUR DM Shares EUR FOF Shares EUR R Shares Opening shares issued 75,340 172,220 216,702 Shares issued during the year 288,706 54,890 169,366 Shares redeemed during the year (105,623) - (53,643) Closing shares issued 258,423 227,110 332,425

USD R Shares CHF DM Shares CHF R Shares Opening shares issued 17,456 14,072 30,525 Shares issued during the year 20,965 - 26,696 Shares redeemed during the year (134) (12,567) (14,529) Closing shares issued 38,287 1,505 42,692 HI Core UCITS Fund EUR DM Shares EUR I Shares EUR R Shares Opening shares issued 332,583 33,306 39,705 Shares issued during the year 93,050 20,968 32,436 Shares redeemed during the year (157,360) (11,311) (23,307) Closing shares issued 268,273 42,963 48,834

USD DM Shares USD R Shares CHF DM Shares Opening shares issued 1,915 16,536 15,000 Shares issued during the year 17,119 792 102 Shares redeemed during the year (5,763) (1,772) (15,000) Closing shares issued 13,271 15,556 102 HI Africa Opportunities Fund EUR DM Shares EUR FOF Shares EUR I Shares Opening shares issued 95,736 182,017 1,000 Shares issued during the year 35,028 10,193 3,529 Shares redeemed during the year (10,817) - (1,636) Closing shares issued 119,947 192,210 2,893

EUR D Shares USD D Shares USD DM Shares Opening shares issued 3,629 14,416 12,308 Shares issued during the year 29,855 7,421 15,195 Shares redeemed during the year (23,860) (845) (5,090) Closing shares issued 9,624 20,992 22,413

CHF D Shares Opening shares issued - Shares issued during the period 108 Shares redeemed during the period - Closing shares issued 108

70


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 13. Net asset value per share as per the valuation methodology as set out in the prospectus HI Numen Credit Fund

EUR A Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 36,674,326 € 56,758,640 € 58,092,330 Number of Shares in Issue 344,829 521,850 521,850 Net Asset Value per share € 106.36 € 108.76 € 111.32 EUR DM Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 3,539,708 € 14,156,783 € 17,641,492 Number of Shares in Issue 32,281 126,247 153,712 Net Asset Value per share € 109.65 € 112.14 € 114.77

EUR FOF Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 1,033,613 € 2,098,027 € 3,112,474 Number of Shares in Issue 9,361 18,442 26,530 Net Asset Value per share € 110.42 € 113.76 € 117.32 EUR I Initial Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 21,184,821 € 24,422,281 € 30,362,011 Number of Shares in Issue 180,227 203,168 246,785 Net Asset Value per share € 117.55 € 120.21 € 123.03

EUR I Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 6,939,434 € 15,113,697 € 21,007,076 Number of Shares in Issue 61,710 130,769 176,693 Net Asset Value per share € 112.45 € 115.58 € 118.89 EUR M Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 1,510,598 € 1,329,700 € 1,570,120 Number of Shares in Issue 13,837 12,030 14,019 Net Asset Value per share € 109.17 € 110.53 € 112.00 EUR R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 60,693,980 € 88,074,129 € 105,327,416 Number of Shares in Issue 552,819 778,589 902,935 Net Asset Value per share € 109.79 € 113.12 € 116.65 USD R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value $632,716 $2,353,697 $ 4,288,431 Number of Shares in Issue 5,724 21,009 37,414 Net Asset Value per share $110.54 $112.03 $ 114.62 CHF R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value CHF 1,943,877 CHF 2,491,423 CHF 3,212,956 Number of Shares in Issue 18,560 22,961 28,512 Net Asset Value per share CHF 104.73 CHF 108.51 CHF 112.69 EUR D Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 63,080,937 € 97,162,943 € 68,494,074 Number of Shares in Issue 666,800 994,835 678,697 Net Asset Value per share € 94.60 € 97.67 € 100.92

71


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 13. Net asset value per share as per the valuation methodology as set out in the prospectus (continued)

HI Numen Credit Fund (continued) USD D Shares 30 June 2017 30 June 2016 30 June 2015

Net Asset Value $12,607,099 $36,385,965 $ 30,300,336 Number of Shares in Issue 130,937 371,627 302,037 Net Asset Value per share $96.28 $97.91 $ 100.32 CHF D Shares 30 June 2017 30 June 2016 30 June 2015

Net Asset Value CHF 2,098,009 CHF 4,825,137 CHF 12,738,874 Number of Shares in Issue 22,617 50,115 127,363 Net Asset Value per share CHF 92.76 CHF 96.28 CHF 100.02 CHF DM2 Shares 30 June 2017 30 June 2016 30 June 2015

Net Asset Value CHF 2,077,897 CHF 4,170,713 CHF 2,020,272 Number of Shares in Issue 22,271 43,337 20,300 Net Asset Value per share CHF 93.30 CHF 96.24 CHF 99.52 EUR DM2 Shares 30 June 2017 30 June 2016 30 June 2015

Net Asset Value € 35,079,047 € 177,133,017 € 54,016,514 Number of Shares in Issue 363,272 1,788,362 531,188 Net Asset Value per share € 96.56 € 99.05 € 101.69 EUR I2 Shares 30 June 2017 30 June 2016 30 June 2015

Net Asset Value € 179,504,710 € 337,695,740 € 104,235,152 Number of Shares in Issue 1,880,161 3,441,576 1,032,747 Net Asset Value per share € 95.47 € 98.12 € 100.93 USD DM2 Shares 30 June 2017 30 June 2016 30 June 2015

Net Asset Value $9,401,194 $24,159,629 $ 12,230,360 Number of Shares in Issue 95,680 243,255 120,961 Net Asset Value per share $98.26 $99.32 $ 101.11 GBP I2 Shares 30 June 2017 30 June 2016 30 June 2015

Net Asset Value £13,011,348 £45,231,390 £ 15,710,847 Number of Shares in Issue 132,726 451,722 153,277 Net Asset Value per share £98.03 £100.13 £ 102.50 GBP DM2 Shares 30 June 2017 30 June 2016 30 June 2015

Net Asset Value £8,943,664 £43,924,921 £ 11,568,367 Number of Shares in Issue 91,197 439,614 113,504 Net Asset Value per share £98.07 £99.92 £ 101.92 GBP M Shares1/2 30 June 2017 30 June 2016 30 June 2015

Net Asset Value - £99,855 - Number of Shares in Issue - 1,000 - Net Asset Value per share - £99.85 - USD I2 Shares3 30 June 2017 30 June 2016 30 June 2015 Net Asset Value $518,080 $16,541,639 - Number of Shares in Issue 5,306 168,112 - Net Asset Value per share $97.64 $98.40 -

1On 31 July 2015, GBP M Share class was launched for HI Numen Credit Fund; therefore no comparative information is available. 2On 11 November 2016 the GBP M Share class was fully redeemed for HI Numen Credit Fund. 3On 19 February 2016, USD I2 Share class was launched for HI Numen Credit Fund; therefore no comparative information is available.

72


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 13. Net asset value per share as per the valuation methodology as set out in the prospectus (continued) HI Principia Fund EUR DM Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 41,522,632 € 42,043,260 € 10,416,914 Number of Shares in Issue 314,580 344,039 89,829 Net Asset Value per share € 131.99 € 122.20 € 115.96

EUR FOF Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 26,222,184 € 27,873,198 € 26,521,299 Number of Shares in Issue 206,736 235,632 235,137 Net Asset Value per share € 126.84 € 118.29 € 112.79 EUR I Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 13,023,874 € 15,269,567 € 8,196,565 Number of Shares in Issue 100,468 126,779 71,581 Net Asset Value per share € 129.63 € 120.44 € 114.51

EUR R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 77,276,593 € 86,983,161 € 84,591,913 Number of Shares in Issue 600,969 725,341 739,712 Net Asset Value per share € 128.59 € 119.92 € 114.36

USD DM Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value $499,169 $456,704 $ 2,109,062 Number of Shares in Issue 4,430 4,430 21,746 Net Asset Value per share $112.67 $103.08 $ 96.99 USD R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value $2,941,644 $3,197,426 $ 3,282,648 Number of Shares in Issue 22,508 26,533 28,725 Net Asset Value per share $130.69 $120.51 $ 114.28 CHF R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value CHF 1,703,207 CHF 2,116,738 CHF 2,287,573 Number of Shares in Issue 13,573 18,003 20,272 Net Asset Value per share CHF 125.49 CHF 117.58 CHF 112.84 HI Sibilla Macro Fund EUR DM Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 24,966,270 € 26,240,368 € 7,536,805 Number of Shares in Issue 237,551 258,423 75,340 Net asset value per share € 105.10 € 101.54 € 100.04 EUR FOF Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 22,083,313 € 22,524,847 € 16,936,242 Number of Shares in Issue 217,280 227,110 172,220 Net asset value per share € 101.64 € 99.18 € 98.34

73


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 13. Net asset value per share as per the valuation methodology as set out in the prospectus (continued) HI Sibilla Macro Fund (continued) EUR R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 28,249,397 € 33,017,362 € 21,347,049 Number of Shares in Issue 277,549 332,425 216,702 Net asset value per share € 101.78 € 99.32 € 98.51 USD R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value $3,784,844 $3,830,511 $ 1,724,948 Number of Shares in Issue 36,316 38,287 17,456 Net asset value per share $104.22 $100.05 $ 98.82 CHF DM Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value CHF 155,273 CHF 150,826 CHF 1,391,996 Number of Shares in Issue 1,505 1,505 14,072 Net asset value per share CHF 103.15 CHF 100.19 CHF 98.92 CHF R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value CHF 2,075,526 CHF 4,178,411 CHF 2,974,664 Number of Shares in Issue 20,782 42,692 30,525 Net asset value per share CHF 99.87 CHF 97.87 CHF 97.45 HI Core UCITS Fund EUR DM Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 27,078,827 € 28,613,856 € 37,458,656 Number of Shares in Issue 242,766 268,273 332,583 Net asset value per share € 111.54 € 106.66 € 112.63 EUR I Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 2,858,961 € 4,501,906 € 3,711,151 Number of Shares in Issue 26,273 42,963 33,306 Net asset value per share € 108.82 € 104.79 € 111.43 EUR R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 4,215,693 € 4,974,328 € 4,322,477 Number of Shares in Issue 40,051 48,834 39,705 Net asset value per share € 105.26 € 101.86 € 108.86 USD DM Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value $1,246,199 $1,255,815 $ 190,040 Number of Shares in Issue 12,371 13,271 1,915 Net asset value per share $100.73 $94.63 $ 99.25 USD R Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value $938,403 $1,618,377 $ 1,824,600 Number of Shares in Issue 8,567 15,556 16,536 Net asset value per share $109.53 $104.04 $ 110.34

74


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 13. Net asset value per share as per the valuation methodology as set out in the prospectus (continued) HI Core UCITS Fund (continued) CHF DM Shares1 30 June 2017 30 June 2016 30 June 2015 Net Asset Value - CHF 9,450 CHF 1,479,377 Number of Shares in Issue - 102 15,000 Net asset value per share - CHF 92.61 CHF 98.63


EUR DM Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 1,093,678 € 11,396,449 € 9,138,658 Number of Shares in Issue 11,286 119,947 95,736 Net asset value per share € 96.90 € 95.01 € 95.46 EUR FOF Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 18,299,962 € 18,068,998 € 17,301,568 Number of Shares in Issue 192,210 192,210 182,017 Net asset value per share € 95.21 € 94.01 € 95.05 EUR I Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 194,356 € 283,763 € 99,624 Number of Shares in Issue 1,947 2,893 1,000 Net asset value per share € 99.82 € 98.07 € 99.62 EUR D Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 885,752 € 904,880 € 345,705 Number of Shares in Issue 9,311 9,624 3,629 Net asset value per share € 95.13 € 94.03 € 95.26 USD D Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value $381,008 $1,987,474 $ 1,384,610 Number of Shares in Issue 3,958 20,992 14,416 Net asset value per share $96.25 $94.68 $ 96.05 USD DM Shares 30 June 2017 30 June 2016 30 June 2015 Net Asset Value $33,328 $2,122,786 $ 1,178,049 Number of Shares in Issue 343 22,413 12,308 Net asset value per share $97.30 $94.71 $ 95.71

CHF D Shares2/3 30 June 2017 30 June 2016 30 June 2015 Net Asset Value - CHF 9,583 - Number of Shares in Issue - 108 - Net asset value per share - CHF 88.74 -


EUR FOF Shares5 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 9,853,059 - - Number of Shares in Issue 100,000 - - Net asset value per share € 98.53 - -


2On 4 September 2015, CHF D Share class was launched for HI Africa Opportunities Fund; therefore no comparative information is available. 3On 28 April 2017, CHF D Share class was fully redeemed for HI Africa Opportunities Fund. 4HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available. 5On 7 April 2017, EUR FOF Share class was launched for HI Numen Bear Rates Fund; therefore no comparative information is available.

75


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 13. Net asset value per share as per the valuation methodology as set out in the prospectus (continued) HI Numen Bear Rates Fund1 (continued)

EUR D Shares2 30 June 2017 30 June 2016 30 June 2015 Net Asset Value € 991,676 - - Number of Shares in Issue 10,000 - - Net asset value per share € 99.17 - -

1HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available. 2On 12 May 2017, EUR D Share class was launched for HI Numen Bear Rates Fund; therefore no comparative information is available. 14. Related parties Parties are considered to be related if one party has the ability to control the other party or is able to exercise significant influence over the other party, in making financial or operational decisions. Teddy Otto and John Skelly, Directors of the Company, are employees of Carne Global Financial Services Limited, who are the company secretary and also provide Money Laundering Reporting Officer (“MLRO”) and foreign registration services to the Company. The fees earned by Teddy Otto and John Skelly amounted to EUR 20,000 each for the year ending 30 June 2017 (30 June 2016: EUR 20,000 each). The fees earned by Carne Global Financial Services Limited amounted to EUR 63,507 for the year ending 30 June 2017 (30 June 2016: EUR 80,094), which includes Company Secretary fees of EUR 10,000 for the year ending 30 June 2017 (30 June 2016: EUR 10,000). Francesco Rovati, a Director of the Company, is an employee of Hedge Invest SGR P.A., the Investment Manager. Funds and accounts managed by the Investment Manager owned 11.83 % of the Company as at 30 June 2017 (as at 30 June 2016: 6.24%). The Managers, Directors and employees of the Investment Manager and Sub-Investment Managers owned 0.67% of the Company as at 30 June 2017 (as at 30 June 2016: 0.82%). Fees paid to the Investment Manager during the year and the balances outstanding at the year end are disclosed in note 6. There were no other related party transactions other than those disclosed in the financial statements. Cross holdings within Company At 30 June 2017 HI Core UCITS Fund held a cross holding in HI Numen Credit Fund, HI Principia Fund, HI Africa Opportunities Fund and HI Sibilla Macro Fund. The market value of the investments at this date was EUR 7,737,956 (30 June 2016: EUR 8,476,638) and these have been eliminated on combination in the Statement of Financial Position. Net losses of EUR (115,234) (30 June 2016: Net gains of EUR 50,342) have been eliminated on combination in the Statement of Comprehensive Income.

15. Fair value measurement IFRS 13, ‘Fair value measurement’, requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). The level in the fair value hierarchy, within which the fair value measurement is categorised in its entirety, is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes ‘observable’ requires significant judgement by the Directors. The Directors consider observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

76


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 15. Fair value measurement (continued) The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 30 June 2017:

Level 1 Level 2 Level 3 Total HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Equities 42,318 - - 42,318 - Government bonds - 116,056 - 116,056 - Corporate bonds - 126,779 3,314 130,093 - Credit default swaps - 14,318 - 14,318 - Contracts for difference - 2,106 - 2,106 - Exchange traded options purchased 233 - - 233 - Forward currency contracts - 1,411 - 1,411 - Futures contracts 588 - - 588 Total 43,139

260,670 3,314 307,123

Financial liabilities at fair value through profit or loss: - Credit default swaps - (27,044) - (27,044) - Contracts for difference - (2,755) - (2,755) - Exchange traded options written (8) - - (8) - Forward currency contracts - (524) - (524) - Futures contracts (628) - - (628) Total (636) (30,323) - (30,959) HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Time deposits - 59,918 - 59,918 - Equities 71,551 - - 71,551 - Contracts for difference - 1,836 - 1,836 - Exchange traded options purchased 329 - - 329 - Forward currency contracts - 268 - 268 Total 71,880 62,022 - 133,902

Financial liabilities at fair value through profit or loss: - Contracts for difference - (2,474) - (2,474) - Forward currency contracts - (133) - (133)

Total - (2,607) - (2,607) HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss: - Time deposits - 34,699 - 34,699 - Government bonds - 15,135 - 15,135 - Forward currency contracts - 1,112 - 1,112 Total - 50,946 - 50,946 Financial liabilities at fair value through profit or loss: - Contracts for difference - (21) - (21) - Forward currency contracts - (59) - (59) Total - (80) - (80) HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Investment unds - 33,272 - 33,272 - Exchange traded funds 1,875 - - 1,875 - Forward currency contracts - 13 - 13 Total 1,875 33,285 - 35,160

77


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 15. Fair value measurement (continued) The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 30 June 2017 (continued):

Level 1 Level 2 Level 3 Total HI Core UCITS Fund (continued) EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial liabilities at fair value through profit or loss: - Forward currency contracts - (22) - (22) Total - (22) - (22) HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Time deposits - 681 - 681 - Equities 15,579 - - 15,579 - Contracts for difference - 188 - 188 - Forward currency contracts - 1 - 1 Total 15,579 870 - 16,449

Financial liabilities at fair value through profit or loss: - Contracts for difference - (11) - (11) - Forward currency contracts - (5) - (5) Total - (16) - (16) HI Numen Bear Rates Fund1 USD ‘000 USD ‘000 USD ‘000 USD ‘000 Financial assets at fair value through profit or loss: - Exchange traded notes 1,141 - - 1,141 - Credit default swaps - 10 - 10 - Forward currency contracts - 43 - 43 - Future contracts 162 - - 162 Total 1,303 53 - 1,356

Financial liabilities at fair value through profit or loss: - Credit default swaps - (135) - (135) - Futures contracts (41) - - (41) Total (41) (135) - (176)


The following table presents the transfers between levels for the year ended 30 June 2017:

Transfer from Level 2 to Level 3: Level 1 Level 2 Level 3

HI Numen Credit Fund EUR'000 EUR'000 EUR'000

Corporate bonds - (3,260) 3,260 The following table presents the movement in Level 3 instruments for the year ended 30 June 2017:

Total HI Numen Credit Fund EUR'000 Opening balance - Purchases 1,985 Sales (119) Transfer in Level 3 3,260 Total losses recognised in profit and loss (1,812) Closing balance 3,314

Total unrealised losses for the year included in statement of comprehensive income for assets held at the end of the year were EUR (11,727,139). For securities Veneto Banca SpA and Banca Carige SpA fair values are determined from single broker quotes and these quotes are the unobservable inputs.

78


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017

15. Fair value measurement (continued)

The table below sets out sensitivity to changes in the significant unobservable inputs, and demonstrates the effect of a 10% discount on the value of investments and the effect on the NAV of the Fund. Management have chosen to apply a 10% discount to perform sensitivity analysis, as this could be considered appropriate as an adjusted exit price for illiquid securities.

Discount HI Numen Credit Fund EUR'000 Veneto Banca SpA 5 Banca Carige SpA 326

The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 30 June 2016:

Level 1 Level 2 Level 3 Total HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Equities 25,701 - - 25,701 - Government bonds - 659,800 - 659,800 - Corporate bonds - 31,303 - 31,303 - Credit default swaps - 14,615 - 14,615 - Interest rate swaps - 459 - 459 - Contracts for difference - 2,221 - 2,221 - Exchange traded options purchased - 1,747 - 1,747 - Swaptions purchased - 2,588 - 2,588 - Forward currency contracts - 14,032 - 14,032 Total 25,701 726,765 - 752,466

Financial liabilities at fair value through profit or loss:

- Credit default swaps - (12,583) - (12,583) - Contracts for difference - (922) - (922) - Exchange traded options written - (603) - (603) - Swaptions written - (1,639) - (1,639) - Forward currency contracts - (14,460) - (14,460) - Futures contracts (918) - - (918) Total (918) (30,207) - (31,125) HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss: - Time deposits - 27,150 - 27,150 - Equities 110,166 - - 110,166 - Contracts for difference - 1,597 - 1,597 - Forward currency contracts - 2,247 - 2,247 Total 110,166 30,994 - 141,160 Financial liabilities at fair value through profit or loss: - Contracts for difference - (2,102) - (2,102) - Forward currency contracts - (731) - (731) - Futures contracts (88) - - (88) Total (88) (2,833) - (2,921) HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss: - Time deposits - 45,910 - 45,910 - Equities 353 - - 353 - Government bonds - 18,312 - 18,312 - Forward currency contracts - 370 - 370 - Exchange traded options purchased - 13 - 13 Total 353 64,605 - 64,958 Financial liabilities at fair value through profit or loss: - Forward currency contracts - (1,097) - (1,097) - Futures contracts (217) - - (217) Total (217) (1,097) - (1,314)

79


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 15. Fair value measurement (continued)

The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 30 June 2016 (continued):

Level 1 Level 2 Level 3 Total HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss: - Investment funds - 37,070 - 37,070 - Exchange traded funds 626 - - 626 - Exchange traded notes 467 - - 467 - Forward currency contracts - -1 - - Total 1,093 37,070 - 38,163

Financial liabilities at fair value through profit or loss: - Forward currency contracts - (10) - (10) Total - (10) - (10) HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss: - Time deposits - 7,500 - 7,500 - Equities 15,536 - - 15,536 - Government bonds - 5,401 - 5,401 - Contracts for difference - 172 - 172 - Forward currency contracts - 151 - 151 Total 15,536 13,224 - 28,760 Financial liabilities at fair value through profit or loss: - Contracts for difference - (58) - (58) - Forward currency contracts - (95) - (95) Total - (153) - (153)

1Investments which are less than EUR 500 have been rounded down to zero.

Assets and liabilities not carried at fair value but for which fair value is disclosed The following table analyses within the fair value hierarchy the Fund's assets and liabilities (by class) not measured at fair value at 30 June 2017 but for which fair value is disclosed:

Level 1 Level 2 Level 3 Total HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 49,118 - - 49,118 Margin cash 17,843 - - 17,843 Collateral cash 135,254 - - 135,254 Receivable for investments sold - 3,096 - 3,096 Other receivables - 1,847 - 1,847 Total 202,215 4,943 - 207,158 Liabilities Payable for investments purchased - (22,156) - (22,156) Other payables - (1,013) - (1,013) Net assets attributable to redeemable participating shareholders - (460,153) - (460,153)

Total - (483,322) - (483,322)

80


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 15. Fair value measurement (continued) Assets and liabilities not carried at fair value but for which fair value is disclosed (continued) The following table analyses within the fair value hierarchy the Fund's assets and liabilities (by class) not measured at fair value at 30 June 2017 but for which fair value is disclosed (continued):

Level 1 Level 2 Level 3 Total HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 20,823 - - 20,823 Margin cash 18,561 - - 18,561 Collateral cash 7,389 - - 7,389 Receivable for investments sold - 556 - 556 Receivable for shares subscribed - 179 - 179 Other receivables - 189 - 189 Total 46,773 924 - 47,697 Liabilities Payable for investments purchased - (14,117) - (14,117) Payable for shares redeemed - (6) - (6) Other payables - (2,251) - (2,251) Net assets attributable to redeemable participating shareholders

- (162,618) - (162,618)

Total - (178,992) - (178,992) HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 11,513 - - 11,513 Margin cash 13,734 - - 13,734 Collateral cash 4,736 - - 4,736 Receivable for investments sold - 611 - 611 Other receivables - 57 - 57 Total 29,983 668 - 30,651 Liabilities Bank overdraft (1) - - (1) Payable for investments purchased - (611) - (611) Other payables - (256) - (256) Net assets attributable to redeemable participating shareholders

- (80,649) - (80,649)

Total (1) (81,516) - (81,517) HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 2,300 - - 2,300 Other receivables - 62 - 62 Total 2,300 62 - 2,362 Liabilities Payable for shares redeemed - (1,292) - (1,292) Other payables - (155) - (155) Net assets attributable to holders of redeemable participating shareholders - (36,053) - (36,053)

Total - (37,500) - (37,500)

81



Level 1 Level 2 Level 3 Total HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 2,351 - - 2,351 Collateral cash 1,894 - - 1,894 Receivable for investments sold - 272 - 272 Total 4,245 272 - 4,517 Liabilities Other payables - (142) - (142) Net assets attributable to redeemable participating shareholders - (20,808) - (20,808)

Total - (20,950) - (20,950) HI Numen Bear Rates Fund1 USD ‘000 USD ‘000 USD ‘000 USD ‘000 Assets Cash and cash equivalents 10,347 - - 10,347 Margin cash 729 - - 729 Collateral cash 110 - - 110 Other receivables - 10 - 10 Total 11,186 10 - 11,196 Liabilities Other payables - (49) - (49) Net assets attributable to redeemable participating shareholders - (12,327) - (12,327)

Total - (12,376) - (12,376)

1HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available. The following table analyses within the fair value hierarchy the Fund's assets and liabilities (by class) not measured at fair value at 30 June 2016 but for which fair value is disclosed:

Level 1 Level 2 Level 3 Total HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 88,431 - - 88,431 Margin cash 20,846 - - 20,846 Collateral cash 177,605 - - 177,605 Receivable for shares subscribed - 8,292 - 8,292 Other receivables - 2,343 - 2,343 Total 286,882 10,635 - 297,517 Liabilities Payable for investments purchased - (12,551) - (12,551) Other payables - (2,840) - (2,840) Net assets attributable to redeemable participating shareholders

- (1,003,467) - (1,003,467)

Total - (1,018,858) - (1,018,858)

82



Level 1 Level 2 Level 3 Total HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 18,665 - - 18,665 Margin cash 6,860 - - 6,860 Collateral cash 18,259 - - 18,259 Receivable for investments sold - 4,535 - 4,535 Other receivables - 198 - 198 Total 43,784 4,733 - 48,517 Liabilities Payable for investments purchased - (8,852) - (8,852) Payable for shares redeemed - (62) - (62) Other payables - (439) - (439) Net assets attributable to redeemable participating shareholders

- (177,403) - (177,403)

Total - (186,756) - (186,756) HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 10,580 - - 10,580 Margin cash 8,093 - - 8,093 Collateral cash 5,306 - - 5,306 Receivable for investments sold - 1,790 - 1,790 Other receivables - 94 - 94

Total 23,979 1,884 - 25,863

Liabilities

Other payables - (295) - (295)

Net assets attributable to redeemable participating shareholders - (89,212) - (89,212)

Total - (89,507) - (89,507)

HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Assets

Cash and cash equivalents 1,257 - - 1,257

Receivable for investments sold - 2,485 - 2,485

Other receivables - 61 - 61

Total 1,257 2,546 - 3,803

Liabilities

Payable for shares redeemed - (1,130) - (1,130)

Other payables - (164) - (164)

Net assets attributable to redeemable participating shareholders - (40,662) - (40,662)

Total - (41,956) - (41,956)

83



Level 1 Level 2 Level 3 Total HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets Cash and cash equivalents 5,554 - - 5,554 Collateral cash 1,338 - - 1,338 Receivable for investments sold - 555 - 555 Other receivables - 48 - 48 Total 6,892 603 - 7,495 Liabilities Bank overdraft (5) - - (5) Payable for investments purchased - (1,628) - (1,628) Other payables - (146) - (146) Net assets attributable to redeemable participating shareholders

- (34,323) - (34,323)

Total (5) (36,097) - (36,102) The assets and liabilities included in the above table are carried at amortised cost, their carrying values are a reasonable approximation of fair value. The net assets attributable to redeemable participating shareholders is calculated based on the net difference between total assets and all other liabilities of the Company in accordance with the Company’s offering memorandum. 16. Efficient portfolio management The Company may employ investment techniques and instruments for efficient portfolio management of the assets of the Company or of any Fund and for short-term investment purposes under the conditions and limits set out by the Central Bank under the UCITS Regulations, and in the Prospectus. The Investment Manager of the Company has identified that forward currency contracts may be used for both hedging or efficient portfolio management purposes for HI Principia Fund and HI Core UCITS Fund. For HI Numen Credit Fund, HI Sibilla Macro Fund and HI Numen Bear Rates Fund, forward currency contracts may be used for investment, hedging or efficient portfolio management purposes. For HI Africa Opportunities Fund, forward currency contracts may be used for investment or hedging purposes. Those foreign exchange contracts entered into for hedging purposes are utilised to reduce foreign exchange risk and all other financial derivative instruments (“FDI”) are used for investment purposes. Transaction costs on the purchase and sale of forward currency contracts are included in the purchase and sale price of the investment. These costs cannot be practically or reliably gathered as they are embedded in the cost of the investment and cannot be separately verified or disclosed. Details of all open forward currency contracts at the year end are disclosed in the Schedule of Investments. The Company did not enter into any repurchase agreements, reverse repurchase agreements or stock lending during the year. 17. Contingent Liabilities

As at 30 June 2017, the Company did not have any significant commitments or contingent liabilities, other than those disclosed in the financial statements (30 June 2016: EUR Nil).

84


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 18. Exchange rates

The following year/period ended EUR and USD exchange rates have been used in this report:

EUR 30 June 2017 30 June 2016 AED 4.1892 4.0806 CAD 1.4812 1.4428 CHF 1.0922 1.0823 DKK 7.4350 7.4398 EGP 20.6668 9.8652 GBP 0.8781 0.8311 HKD 8.9036 8.6187 JPY 128.1522 113.9724 KES 118.2750 112.3170 KRW 1,304.9603 1,279.6477 NGN 417.9089 314.1211 NOK 9.5540 9.2964 SEK 9.6200 9.4128 TWD 34.6955 35.8381 USD 1.1405 1.1110 ZAR 14.9441 16.2699

USD1 30 June 2017 CHF 0.9577 EUR 0.8768 GBP 0.7699 HKD 7.8065 JPY 112.3600 1HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available.

19. Distributions

There were no distributions made by the Company during the year ended 30 June 2017 (year ended 30 June 2016: Nil).

20. Involvement in unconsolidated structured entities

The table below describes the types of structured entities that the Fund does not consolidate but in which it holds an interest.

Type of structured entity Nature and purpose Interest held by the Fund Investment funds To manage assets on behalf of third party

investors and generate fees for the investment manager. These vehicles are financed through the issue of units to investors.

Investments in units issued by the funds

The table below sets out interest held by the Fund in unconsolidated structured entities at 30 June 2017. The maximum exposure to loss is the carrying amount of the financial assets held. HI Core UCITS Fund

Investment in unlisted open-ended investment funds Number of

investee funds Total net assets

EUR'000 Fixed Income Long only 1 968 Equity Long only 1 910 Equity Long/Short 13 18,246 Event Driven 3 5,539 Global Equity 1 217 Macro 2 3,262 Relative Value 4 4,130 Total 25 33,272

During the year, the Fund did not provide financial support to unconsolidated structured entities and has no intention of providing financial or other support.

85


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2017 20. Involvement in unconsolidated structured entities (continued) The Fund can redeem units in the above investment funds on a daily or weekly basis. HI Numen Credit Fund, the HI Principia Fund, HI Sibilla Macro Fund, HI Africa Opportunities Fund and HI Numen Bear Rates Fund did not hold interests in unconsolidated structured entities as at 30 June 2017. The table below sets out interest held by the Fund in unconsolidated structured entities at 30 June 2016. The maximum exposure to loss is the carrying amount of the financial assets held. HI Core UCITS Fund

Investment in unlisted open-ended investment funds Number of investee funds

Total net assets EUR'000

Equity Long only 2 687 Equity Long/Short 13 23,091 Event Driven 3 5,455 Global Equity 1 264 Macro 2 3,280 Relative Value 2 4,293 Total 23 37,070

During the year, the Fund did not provide financial support to unconsolidated structured entities and has no intention of providing financial or other support.

HI Numen Credit Fund, the HI Principia Fund, Hi Sibilla Macro Fund and HI Africa Opportunities Fund did not hold interests in unconsolidated structured entities as at 30 June 2016. 21. Employees The Company had no employees during the year ended 30 June 2017 (30 June 2016: Nil). J.P. Morgan Administration Services (Ireland) Limited acts as a corporate administrator to the company in accordance with the terms of the service agreement. 22. Subsequent events On 28 July 2017, EUR Initial Share class was launched in HI Numen Bear Rates Fund. On 29 September 2017 the Sub-Investment Manager Agreement with Numen Investments Limited has been terminated. From 1 October 2017 for HI Numen Credit Fund and HI Numen Bear Rates Fund the Sub-Investment Manager is only Numen Capital LLP. 23. Approval of Financial Statements The Directors approved the financial statements on 24 October 2017.

86


HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (UNAUDITED) As at 30 June 2017 Fair Value % of Net Investments Currency Holding EUR '000 Asset Value Equities (2016: 2.56%) Canada (2016: 0.04%) Italy (2016: 0.25%)

Banca Farmafactoring SpA EUR 666,222 3,330 0.72 Italy total 3,330 0.72

Netherlands (2016: 0.00%)

NXP Semiconductors NV USD 21,000 2,014 0.44 Netherlands total 2,014 0.44

Spain (2016: 0.20%)

Unicaja Banco SA EUR 8,500,000 9,962 2.17 Spain total 9,962 2.17

Sweden (2016: 0.00%)

Hoist Finance AB SEK 225,002 2,014 0.44 Sweden total 2,014 0.44

Switzerland (2016: 0.30%) United States (2016: 1.77%)

Hain Celestial Group, Inc. (The) USD 7,250 247 0.05 Monsanto Co. USD 230,375 23,914 5.20 Rite Aid Corp. USD 324,000 837 0.18

United States total 24,998 5.43

Total investments in Equities 42,318 9.20 Coupon Maturity Fair Value % of Net Investments Rate Date Currency Holding EUR '000 Asset Value Bonds Government Fixed Coupon Securities (2016: 64.26%) Cyprus (2016: 5.38%) France (2016: 5.00%)

87


HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017 Coupon Maturity Fair Value % of Net Investments Rate Date Currency Holding EUR '000 Asset Value Government Fixed Coupon Securities (continued) Greece (2016: 0.45%)

Hellenic Republic Treasury 4.75% 17/04/2019 EUR 52,000,000 52,940 11.51 Greece total 52,940 11.51

Italy (2016: 15.46%)

Italy Buoni Ordinari del Tesoro BOT 0.00% 14/06/2018 EUR 20,000,000 20,074 4.36 Italy total 20,074 4.36

Portugal (2016: 1.99%) Spain (2016: 19.97%)

Spain Letras del Tesoro 0.00% 15/09/2017 EUR 35,000,000 35,032 7.61 Spain total 35,032 7.61

United Kingdom (2016: 16.01%) Total investments in Government Fixed Coupon Securities 108,046 23.48

Government Variable Coupon Securities (2016: 1.49%) Greece (2016: 1.49%)

Greece Government Bond, FRN 3.00% 24/02/2023 EUR 500,000 467 0.10 Greece Government Bond, FRN 3.00% 24/02/2024 EUR 500,000 460 0.10 Greece Government Bond, FRN 3.00% 24/02/2025 EUR 500,000 453 0.10 Greece Government Bond, FRN 3.00% 24/02/2026 EUR 500,000 448 0.10 Greece Government Bond, FRN 3.00% 24/02/2027 EUR 500,000 443 0.10 Greece Government Bond, FRN 3.00% 24/02/2028 EUR 500,000 425 0.09 Greece Government Bond, FRN 3.00% 24/02/2029 EUR 500,000 413 0.09 Greece Government Bond, FRN 3.00% 24/02/2030 EUR 500,000 405 0.09 Greece Government Bond, FRN 3.00% 24/02/2031 EUR 500,000 399 0.09 Greece Government Bond, FRN 3.00% 24/02/2032 EUR 500,000 393 0.08 Greece Government Bond, FRN 3.00% 24/02/2033 EUR 500,000 387 0.08 Greece Government Bond, FRN 3.00% 24/02/2034 EUR 500,000 381 0.08 Greece Government Bond, FRN 3.00% 24/02/2035 EUR 500,000 376 0.08 Greece Government Bond, FRN 3.00% 24/02/2036 EUR 500,000 371 0.08 Greece Government Bond, FRN 3.00% 24/02/2037 EUR 500,000 367 0.08 Greece Government Bond, FRN 3.00% 24/02/2038 EUR 500,000 365 0.08 Greece Government Bond, FRN 3.00% 24/02/2039 EUR 500,000 365 0.08 Greece Government Bond, FRN 3.00% 24/02/2040 EUR 500,000 364 0.08 Greece Government Bond, FRN 3.00% 24/02/2041 EUR 500,000 364 0.08

88


HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017 Coupon Maturity Fair Value % of Net Investments Rate Date Currency Holding EUR '000 Asset Value Government Variable Coupon Securities (continued) Greece (continued)

Greece Government Bond, FRN 3.00% 24/02/2042 EUR 500,000 364 0.08 Greece total 8,010 1.74

Total investments in Government Variable Coupon Securities 8,010 1.74

Corporate Fixed Coupon Securities (2016: 3.12%) Cayman Islands (2016: 0.00%)

Phoenix Group Holdings 5.38% 06/07/2027 USD 3,500,000 3,082 0.67 Cayman Islands total 3,082 0.67

Germany (2016: 0.96%)

Deutsche Pfandbriefbank AG 4.60% 22/02/2027 EUR 7,000,000 7,634 1.66 Germany total 7,634 1.66

Italy (2016: 0.93%)

Banca Carige SpA1 8.34% 04/12/2018 EUR 16,300,000 3,260 0.71 Banca Farmafactoring SpA 2.00% 29/06/2022 EUR 4,000,000 3,967 0.86 Banca IFIS SpA 1.75% 26/05/2020 EUR 3,200,000 3,216 0.70 Banca Monte dei Paschi di Siena SpA 5.00% 21/04/2020 EUR 2,000,000 798 0.17 Banca Monte dei Paschi di Siena SpA 5.60% 09/09/2020 EUR 1,000,000 393 0.09 Veneto Banca SpA 0.73% 17/09/2017 EUR 3,350,000 54 0.01

Italy total 11,688 2.54

Luxembourg (2016: 0.30%) Norway (2016: 0.50%) Portugal (2016: 0.43%)

Banco Espirito Santo SA1/2 0.00% 02/10/2017 EUR 30,000,000 202 0.04 Banco Espirito Santo SA2 4.75% 15/01/2018 EUR 200,000 64 0.01 Banco Espirito Santo SA2 4.00% 21/01/2019 EUR 16,900,000 5,408 1.18

Portugal total 5,674 1.23

Spain (2016: 0.00%)

Banco de Sabadell SA 5.63% 06/05/2026 EUR 7,500,000 8,483 1.85 Spain total 8,483 1.85

United States (2016: 0.00%)

Antonveneta Capital Trust I1 5.97% 31/12/2100 EUR 1,913,000 621 0.13 Antonveneta Capital Trust II1 6.69% 27/09/2017 EUR 5,338,000 1,735 0.38

89


HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017 Coupon Maturity Fair Value % of Net Investments Rate Date Currency Holding EUR '000 Asset Value Corporate Fixed Coupon Securities (continued) United States (continued)

MPS Capital Trust I1 5.97% 07/08/2017 EUR 35,390,000 11,502 2.50 United States total 13,858 3.01

Total investments in Corporate Fixed Coupon Securities 50,419 10.96

Corporate Variable Coupon Securities (2016: 0.00%) Germany (2016: 0.00%)

Deutsche Pfandbriefbank AG, FRN 2.87% 28/06/2027 EUR 9,000,000 8,875 1.93 Germany total 8,875 1.93

Ireland (2016: 0.00%)

Banca Carige SpA, FRN1 0.00% 01/03/2020 EUR 10,000,000 10,427 2.27 Ireland total 10,427 2.27

Italy (2016: 0.00%)

Banca Monte dei Paschi di Siena SpA, FRN 0.67% 30/11/2017 EUR 11,150,000 4,599 1.00 Banca Monte dei Paschi di Siena SpA, FRN 2.25% 15/05/2018 EUR 250,000 72 0.02


Mexico (2016: 0.00%)

Banco Mercantil del Norte SA, FRN 0.00% 06/07/2022 USD 1,000,000 902 0.19 Banco Mercantil del Norte SA, FRN 0.00% 06/01/2028 USD 1,000,000 916 0.20

Mexico total 1,818 0.39


ABN AMRO Bank NV, FRN 4.40% 27/03/2028 USD 12,000,000 10,798 2.35 Netherlands total 10,798 2.35

Portugal (2016: 0.00%)

Caixa Geral de Depositos SA, FRN1 10.75% 30/03/2022 EUR 8,000,000 8,291 1.80 Portugal total 8,291 1.80

Spain (2016: 0.00%)

Banco de Sabadell SA, FRN1 6.50% 18/05/2022 EUR 3,000,000 2,963 0.64 Banco Mare Nostrum SA, FRN 9.00% 16/11/2026 EUR 7,300,000 9,129 1.98 Bankia SA, FRN 3.38% 15/03/2027 EUR 6,000,000 6,116 1.33 Bankinter SA, FRN 2.50% 06/04/2027 EUR 3,000,000 3,030 0.66

90


HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017 Coupon Maturity Fair Value % of Net Investments Rate Date Currency Holding EUR '000 Asset Value Corporate Variable Coupon Securities (continued) Spain (continued)

CaixaBank SA, FRN1 6.75% 13/06/2024 EUR 4,000,000 4,232 0.92 Ibercaja Banco SA, FRN 5.00% 28/07/2025 EUR 9,400,000 9,324 2.03

Spain total 34,794 7.56

Total investments in Corporate Variable Coupon Securities 79,674 17.32 Total Bonds 246,149 53.50

Notional Reference Maturity Underlying

Exposure Fair Value % of Net Amount Currency Counterparty Entity Buy/Sell Date EUR '000 EUR '000 Asset Value Credit Default Swaps 1,000,000 EUR Barclays Banca Monte

dei Paschi di Siena SpA

Buy 20/09/2020 1,000 608 0.13

7,000,000 EUR Barclays Banco Bilbao Vizcaya

Argentaria SA

Sell 20/12/2021 7,000 132 0.03

7,000,000 EUR Barclays Banco Santander SA

Sell 20/06/2022 7,000 167 0.04

5,000,000 EUR Barclays Bayer AG Sell 20/12/2021 5,000 157 0.03 10,000,000 EUR Barclays Mediobanca

Banca Di Credito

Finanziario SpA

Sell 20/12/2021 10,000 7 –

7,000,000 EUR BNP Paribas Banco Bilbao Vizcaya

Argentaria SA

Sell 20/12/2021 7,000 132 0.03

2,500,000 EUR BNP Paribas Banco Santander SA

Sell 20/06/2022 2,500 60 0.01

10,000,000 EUR BNP Paribas BP plc Sell 20/12/2021 10,000 208 0.04 5,000,000 EUR BNP Paribas Deutsche

Bank AG Buy 20/06/2022 5,000 212 0.05

6,500,000 EUR BNP Paribas Fiat Chrysler Automobiles

NV

Sell 20/06/2022 6,500 647 0.14

15,000,000 EUR BNP Paribas Intesa Sanpaolo SpA

Sell 20/06/2022 15,000 81 0.02

91


HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017


Exposure Fair Value % of Net Amount Currency Counterparty Entity Buy/Sell Date EUR '000 EUR '000 Asset Value Credit Default Swaps (continued) 15,000,000 EUR BNP Paribas iTraxx Europe

Sub Financials Series 27 Version 1

Buy 20/06/2022 15,000 234 0.05

7,000,000 EUR BNP Paribas UBS AG Sell 20/12/2021 7,000 99 0.02 1,000,000 EUR Citigroup Banca Monte


Buy 20/12/2020 1,000 608 0.13

10,000,000 EUR Citigroup BP plc Sell 20/12/2021 10,000 208 0.04 1,500,000 EUR Citigroup iTraxx Europe

Crossover Series 27 Version 1

Sell 20/06/2022 1,500 174 0.04

10,000,000 EUR Citigroup iTraxx Europe Senior

Financials Series 27 Version 1

Sell 20/06/2022 10,000 235 0.05

65,000,000 EUR Citigroup iTraxx Europe Series 27 Version 1

Sell 20/06/2022 65,000 1,419 0.31

2,000,000 EUR Citigroup iTraxx Europe Sub


Buy 20/06/2022 2,000 31 0.01

6,500,000 EUR Credit Suisse Fiat Chrysler Automobiles

NV

Sell 20/06/2022 6,500 647 0.14

3,500,000 EUR Credit Suisse Fiat Chrysler Automobiles

NV

Sell 20/06/2022 3,500 348 0.07

20,000,000 EUR Deutsche Bank iTraxx Europe Crossover Series 27 Version 1

Sell 20/06/2022 20,000 2,327 0.51

50,000,000 EUR Goldman Sachs iTraxx Europe Senior


Sell 20/06/2022 50,000 1,173 0.25

25,000,000 EUR Goldman Sachs iTraxx Europe Series 27 Version 1

Sell 20/06/2022 25,000 546 0.12

92




Exposure Fair Value % of Net Amount Currency Counterparty Entity Buy/Sell Date EUR '000 EUR '000 Asset Value Credit Default Swaps (continued) 4,000,000 EUR Goldman Sachs Syngenta AG Sell 20/12/2021 4,000 29 0.01 4,000,000 EUR Goldman Sachs Syngenta AG Sell 20/12/2021 4,000 29 0.01 1,000,000 EUR Goldman Sachs Syngenta AG Sell 20/12/2021 1,000 7 – 7,500,000 EUR J.P. Morgan Caixabank SA Sell 20/06/2022 7,500 27 0.01 1,000,000 EUR J.P. Morgan Novo Banco

SA Buy 20/12/2021 1,000 259 0.06

1,000,000 EUR J.P. Morgan Novo Banco SA

Buy 20/12/2021 1,000 259 0.06


Buy 20/12/2021 1,000 259 0.06


Buy 20/12/2021 1,000 258 0.06

9,500,000 EUR Societe Generale

HSBC Bank plc

Sell 20/06/2022 9,500 340 0.07


Syngenta AG Sell 20/12/2021 8,000 58 0.01

5,000,000 USD Barclays Republic of Italy

Buy 20/06/2022 4,384 89 0.02

40,000,000 USD BNP Paribas Kingdom of Spain

Sell 20/12/2017 35,071 155 0.03

3,000,000 USD BNP Paribas Rite Aid Corp.

Sell 20/06/2021 2,630 118 0.03

30,000,000 USD BNP Paribas United Kingdom of

Great Britain and Northern

Ireland

Sell 20/09/2017 26,303 66 0.01

20,000,000 USD Citigroup Turkey Government

Bond

Buy 20/12/2021 17,535 556 0.12

20,000,000 USD Goldman Sachs Kingdom of Belgium

Sell 20/12/2017 17,535 87 0.02

15,000,000 USD Goldman Sachs Turkey Government

Bond

Buy 20/12/2021 13,152 417 0.09

75,000,000 USD Goldman Sachs United Kingdom of


Ireland

Sell 20/12/2017 65,758 325 0.07



Ireland

Sell 20/12/2017 8,768 43 0.01

93




Exposure Fair Value % of Net Amount Currency Counterparty Entity Buy/Sell Date EUR '000 EUR '000 Asset Value Credit Default Swaps (continued) 18,000,000 USD J.P. Morgan Kingdom of

Spain Sell 20/12/2017 15,782 70 0.01

40,000,000 USD J.P. Morgan Republic of Italy

Sell 20/12/2017 35,071 121 0.03

50,000,000 USD J.P. Morgan United Kingdom of


Ireland

Sell 20/12/2017 43,838 216 0.05

10,000,000 USD Morgan Stanley Federal Republic of

Germany

Sell 20/03/2020 8,768 47 0.01

10,000,000 USD Societe Generale

Federal Republic of

Germany

Buy 20/03/2025 8,768 23 –

Total unrealised gain on Credit Default Swaps (2016: 1.46%) 14,318 3.11

3,500,000 EUR Barclays Anglo

American plc Buy 20/06/2022 3,500 (547) (0.12)

3,500,000 EUR Barclays Anglo American plc

Buy 20/06/2022 3,500 (547) (0.12)

7,000,000 EUR Barclays Anglo American plc

Buy 20/06/2022 7,000 (1,093) (0.24)

20,000,000 EUR Barclays Aviva plc Buy 20/12/2021 20,000 (461) (0.10) 13,500,000 EUR Barclays Sky plc Buy 20/06/2022 13,500 (289) (0.06) 6,500,000 EUR BNP Paribas Atlantia SpA Buy 20/06/2022 6,500 (79) (0.02) 2,500,000 EUR BNP Paribas Banca Monte


Buy 20/06/2021 2,500 (272) (0.06)

2,500,000 EUR BNP Paribas Banca Monte dei Paschi di

Siena SpA

Sell 20/06/2021 2,500 (109) (0.02)

2,000,000 EUR BNP Paribas Banca Monte dei Paschi di

Siena SpA

Sell 20/06/2021 2,000 (1,216) (0.26)


Argentaria SA

Sell 20/12/2021 3,500 (83) (0.02)


Argentaria SA

Sell 20/06/2022 5,000 (162) (0.04)

3,500,000 EUR BNP Paribas Banco Santander SA

Sell 20/12/2021 3,500 (64) (0.01)

7,000,000 EUR BNP Paribas Commerzbank AG

Sell 20/06/2022 7,000 (264) (0.06)

94




Exposure Fair Value % of Net Amount Currency Counterparty Entity Buy/Sell Date EUR '000 EUR '000 Asset Value Credit Default Swaps (continued) 5,000,000 EUR BNP Paribas Prudential plc Buy 20/06/2021 5,000 (100) (0.02) 5,000,000 EUR BNP Paribas Prudential plc Buy 20/06/2021 5,000 (100) (0.02) 3,500,000 EUR BNP Paribas Sky plc Buy 20/12/2021 3,500 (77) (0.02) 7,000,000 EUR BNP Paribas Sky plc Buy 20/12/2021 7,000 (154) (0.03) 7,000,000 EUR BNP Paribas Sky plc Buy 20/12/2021 7,000 (154) (0.03) 6,500,000 EUR Citigroup Atlantia SpA Buy 20/06/2022 6,500 (79) (0.02) 3,500,000 EUR Citigroup Banco Bilbao

Vizcaya Argentaria SA

Sell 20/12/2021 3,500 (83) (0.02)

3,500,000 EUR Citigroup Banco Santander SA

Sell 20/12/2021 3,500 (64) (0.01)

3,500,000 EUR Citigroup Commerzbank AG

Sell 20/06/2022 3,500 (132) (0.03)

5,000,000 EUR Citigroup Deutsche Bank AG

Sell 20/12/2021 5,000 (165) (0.04)

10,000,000 EUR Citigroup iTraxx Europe Senior


Buy 20/06/2022 10,000 (235) (0.05)

3,500,000 EUR Credit Suisse Glencore International

AG

Buy 20/06/2022 3,500 (557) (0.12)

70,500,000 EUR Goldman Sachs iTraxx Europe Senior


Buy 20/12/2020 70,500 (1,585) (0.34)

65,000,000 EUR HSBC iTraxx Europe Series 27 Version 1

Buy 20/06/2022 65,000 (1,419) (0.31)

7,000,000 EUR J.P. Morgan ArcelorMittal Buy 20/06/2022 7,000 (910) (0.20) 7,500,000 EUR J.P. Morgan Banco Bilbao

Vizcaya Argentaria SA

Sell 20/06/2022 7,500 (243) (0.05)

5,000,000 EUR J.P. Morgan BNP Paribas Sell 20/06/2022 5,000 (21) – 3,500,000 EUR J.P. Morgan Glencore

International AG

Buy 20/06/2022 3,500 (557) (0.12)

3,500,000 EUR J.P. Morgan Glencore International

AG

Buy 20/06/2022 3,500 (557) (0.12)

7,000,000 EUR J.P. Morgan Sky plc Buy 20/12/2021 7,000 (154) (0.03) 5,000,000 EUR J.P. Morgan Sky plc Buy 20/06/2022 5,000 (107) (0.02) 7,000,000 EUR Morgan Stanley ArcelorMittal Buy 20/06/2022 7,000 (910) (0.20) 70,000,000 EUR Morgan Stanley iTraxx Europe

Series 27 Version 1

Buy 20/06/2022 70,000 (1,528) (0.33)

95




Exposure Fair Value % of Net Amount Currency Counterparty Entity Buy/Sell Date EUR '000 EUR '000 Asset Value Credit Default Swaps (continued) 20,000,000 EUR Societe

Generale Allianz SE Buy 20/12/2021 20,000 (654) (0.14)


Bayer AG Buy 20/12/2021 50,000 (1,571) (0.34)


Vivendi Buy 20/09/2020 5,000 (111) (0.02)


Zurich Insurance Co.

Ltd.

Buy 20/12/2021 15,000 (476) (0.10)

3,500,000 USD Barclays Rite Aid Corp.

Buy 20/12/2018 3,069 (165) (0.04)


Buy 20/06/2019 4,910 (314) (0.07)


Buy 20/12/2019 1,754 (111) (0.02)

25,000,000 USD BNP Paribas Republic of Korea

Buy 20/06/2022 21,919 (493) (0.11)

25,000,000 USD BNP Paribas Republic of Korea

Buy 20/06/2022 21,919 (493) (0.11)



Ireland

Buy 20/06/2026 10,960 (484) (0.11)



Ireland

Buy 20/12/2026 7,014 (312) (0.07)

3,500,000 USD Citigroup Rite Aid Corp.

Buy 20/12/2019 3,069 (195) (0.04)

2,000,000 USD Citigroup Rite Aid Corp.

Buy 20/06/2021 1,754 (79) (0.02)

10,000,000 USD Citigroup United Kingdom of


Ireland

Buy 20/06/2026 8,768 (388) (0.08)

10,000,000 USD Citigroup United Kingdom of


Ireland

Buy 20/06/2026 8,768 (388) (0.08)

1,500,000 USD Goldman Sachs Rite Aid Corp.

Buy 20/12/2019 1,315 (84) (0.02)

96




Exposure Fair Value % of Net Amount Currency Counterparty Entity Buy/Sell Date EUR '000 EUR '000 Asset Value Credit Default Swaps (continued) 3,500,000 USD Goldman Sachs Rite Aid

Corp. Buy 20/12/2019 3,069 (195) (0.04)


Buy 20/06/2020 7,891 (498) (0.11)


Buy 20/06/2021 1,754 (79) (0.02)


Buy 20/06/2021 2,630 (118) (0.03)


Buy 20/06/2021 2,630 (118) (0.03)


Buy 20/06/2022 1,754 (14) –


Buy 20/06/2022 2,630 (21) –



Ireland

Buy 20/12/2025 13,152 (576) (0.13)



Ireland

Buy 20/06/2026 17,535 (775) (0.17)



Ireland

Buy 20/12/2026 8,768 (390) (0.09)



Ireland

Buy 20/12/2021 14,467 (515) (0.11)



Ireland

Buy 20/12/2021 23,454 (836) (0.18)



Ireland

Buy 20/12/2026 7,014 (312) (0.07)

97




Exposure Fair Value % of Net Amount Currency Counterparty Entity Buy/Sell Date EUR '000 EUR '000 Asset Value Credit Default Swaps (continued) 10,000,000 USD J.P. Morgan United

Kingdom of Great Britain and Northern

Ireland

Buy 20/12/2026 8,768 (390) (0.09)

10,000,000 USD Morgan Stanley United Kingdom of


Ireland

Buy 20/12/2024 8,768 (377) (0.08)


Kingdom of Spain

Buy 20/06/2022 13,152 (224) (0.05)


United Kingdom of


Ireland

Buy 20/12/2021 5,918 (211) (0.05)

Total unrealised loss on Credit Default Swaps (2016: (1.26)%) (27,044) (5.88)

Notional Maturity Underlying

Exposure Fair Value % of Net Amount Currency Counterparty Description Date EUR '000 EUR '000 Asset Value Interest Rate Swaps Total unrealised gain on Interest Rate Swaps (2016: 0.05%) – –

Country Counterparty Currency Holding

Underlying Exposure EUR '000

Fair Value EUR '000

% of Net Asset Value

Contracts for Difference Germany (2016: 0.00%3) Ireland (2016: 0.00%)

Allied Irish Banks plc UBS EUR 778,750 779 156 0.03 Ireland total 156 0.03 Italy (2016: 0.17%)

Banca Carige SpA J.P. Morgan EUR (5,418,584) 5,419 247 0.05 Banca Carige SpA UBS EUR (5,354,311) 5,354 244 0.05 Intesa Sanpaolo SpA UBS EUR 1,625,059 1,625 303 0.07 Telecom Italia SpA UBS EUR (8,608,600) 8,609 227 0.05


98





Fair Value EUR '000


Contracts for Difference (continued) Netherlands (2016: 0.00%)

Fiat Chrysler Automobiles NV

UBS EUR (145,000) 145 17 –

Netherlands total 17 – Spain (2016: 0.00%)

Banco Bilbao Vizcaya Argentaria SA

UBS EUR (1,445,333) 1,445 158 0.03

Banco Santander SA UBS EUR 1,760,000 1,760 205 0.04 Liberbank SA BNP Paribas EUR (2,400,000) 2,400 267 0.06

Spain total 630 0.13 United Kingdom (2016: 0.05%)

HSBC Holdings plc BNP Paribas EUR (10,000,000) 10,000 35 0.01 Royal Bank of Scotland Group plc

UBS GBP (1,124,014) 1,280 164 0.04

Sky plc UBS GBP 1,016,469 1,158 83 0.02 United Kingdom total 282 0.07 Total unrealised gain on Contracts for Difference (2016: 0.22%) 2,106 0.45

Austria (2016: (0.01)%) Brazil (2016: (0.03)%) Germany (2016: (0.00)%3)

Commerzbank AG UBS EUR (412,500) 413 (473) (0.10) Germany total (473) (0.10) Italy (2016: (0.02)%)

Banca Popolare di Vicenza BNP Paribas EUR (10,200,000) 10,200 (48) (0.01) Banca Popolare di Vicenza BNP Paribas EUR (500,000) 500 (91) (0.02) Banco BPM SpA BNP Paribas EUR (10,000,000) 10,000 (4) – Banco BPM SpA UBS EUR (2,700,000) 2,700 (457) (0.10) Intesa Sanpaolo SpA UBS EUR (1,524,365) 1,524 (324) (0.07) Telecom Italia SpA UBS EUR 10,395,001 10,395 (500) (0.11) UniCredit SpA UBS EUR (352,500) 353 (275) (0.06) Veneto Banca SpA BNP Paribas EUR (1,000,000) 1,000 (170) (0.04)

Italy total (1,869) (0.41) Portugal (2016: (0.00)%)

Banco Comercial Portugues SA

UBS EUR (9,613,680) 9,614 (12) –

Portugal total (12) –

99





Fair Value EUR '000


Contracts for Difference (continued) Spain (2016: (0.00)%3)

Bankia SA UBS EUR (1,708,184) 1,708 (231) (0.05) CaixaBank SA UBS EUR (937,500) 938 (156) (0.03)

Spain total (387) (0.08) United Kingdom (2016: (0.03)%)

Inmarsat plc UBS GBP 30,000 34 (10) – Virgin Money Holdings UK plc

UBS GBP (892,234) 1,016 (4) –

United Kingdom total (14) – United States (2016: (0.00)%3) Total unrealised loss on Contracts for Difference (2016: (0.09)%) (2,755) (0.59)

Security Maturity Underlying

Exposure Fair Value % of Net Quantity Description Date Currency Counterparty EUR '000 EUR '000 Asset Value Swaptions Purchased Total unrealised gain on Swaptions Purchased (2016: 0.26%) – –

Swaptions Written Total unrealised loss on Swaptions Written (2016: (0.16)%) – –

Exchange traded Options Purchased 727 Monsanto Co., Put, 110.000 20/10/2017 USD UBS 70 92 0.02 795 Rite Aid Corp., Call, 4.000 21/07/2017 USD UBS 3 3 – 700 Sky plc, Put, 960.000 20/10/2017 GBP UBS 765 138 0.03 Total unrealised gain on Exchange traded Options Purchased (2016: 0.17%) 233 0.05

Exchange traded Options Written (700) Sky plc, Put, 860.000 20/10/2017 GBP UBS 686 (8) – Total unrealised loss on Exchange traded Options Written (2016: (0.06)%) (8) –

100



Currency Amount Currency Amount Underlying

Exposure Maturity Fair Value % of Net Purchased Purchased Sold Sold EUR '000 Date EUR '000 Asset Value Forward Currency Contracts4 EUR 7,173,137 GBP 6,300,000 7,175 28/07/2017 2 – EUR 59,291,251 USD 67,500,000 59,182 28/07/2017 188 0.04 GBP 12,854,000 EUR 14,620,962 14,639 28/07/2017 11 0.01 GBP 8,932,000 EUR 10,160,868 10,172 28/07/2017 6 – USD 50,000,000 HKD 387,625,000 87,374 17/07/2017 285 0.06 USD 200,000,000 HKD 1,549,940,000 349,433 14/09/2017 919 0.20 Total unrealised gain on Forward Currency Contracts (2016: 1.40%) 1,411 0.31

CHF 2,073,000 EUR 1,899,891 1,898 28/07/2017 (1) – CHF 1,942,000 EUR 1,780,174 1,778 28/07/2017 (2) – CHF 2,076,000 EUR 1,903,045 1,901 28/07/2017 (2) – EUR 1,992,291 SEK 19,400,000 2,017 28/07/2017 (24) (0.01) HKD 387,625,000 USD 49,964,553 87,343 17/07/2017 (254) (0.05) HKD 387,485,000 USD 49,929,773 87,297 14/09/2017 (168) (0.04) USD 516,000 EUR 453,396 452 28/07/2017 (2) – USD 624,000 EUR 548,298 547 28/07/2017 (2) – USD 9,288,000 EUR 8,162,141 8,143 28/07/2017 (30) (0.01) USD 12,445,000 EUR 10,936,267 10,911 28/07/2017 (39) (0.01) Total unrealised loss on Forward Currency Contracts (2016: (1.44)%) (524) (0.12)

No. of Underlying

Exposure Notional Fair Value % of Net Investments contracts Currency EUR '000 Amount EUR '000 Asset Value Futures Contracts Germany (2016: 0.00%)

Euro-Bobl 07/09/2017 (227) EUR 29,896 22,700,000 302 0.07 Euro-Bund 07/09/2017 (65) EUR 10,522 6,500,000 199 0.04

Germany total 501 0.11 Hong Kong (2016: 0.00%)

Hang Seng Index 28/07/2017 (12) HKD 1,724 600 6 – Hong Kong total 6 – Italy (2016: 0.00%)

FTSE MIB Index 15/09/2017 (24) EUR 2,460 120 70 0.02 Italy total 70 0.02 United States (2016: 0.00%)

US 5 Year Note 29/09/2017 (38) USD 3,926 3,800,000 9 – Yen Denominated Nikkei 225 Index 07/09/2017

12 JPY 939 6,000 2 –

United States total 11 –

101



No. of Underlying

Exposure Notional Fair Value % of Net Investments contracts Currency EUR '000 Amount EUR '000 Asset Value Futures Contracts (continued) Total unrealised gain on Futures Contracts (2016: 0.00%) 588 0.13 Germany (2016: (0.01)%)

EURO STOXX 50 Index 15/09/2017 351 EUR 12,043 3,510 (44) (0.01) EURO STOXX Bank Index 15/09/2017 1,427 EUR 9,311 71,350 (180) (0.04) Short Euro-BTP 07/09/2017 (475) EUR 53,523 47,500,000 (124) (0.02)

Germany total (348) (0.07) Japan (2016: 0.00%)

Japan 10 Year Bond 12/09/2017 14 JPY 16,399 1,400,000,000 (36) (0.01) Japan total (36) (0.01) United Kingdom (2016: 0.00%)

5 Year Eur Swapnote Swap 18/09/2017 100 EUR 12,823 100,000 (81) (0.02) FTSE 100 Index 15/09/2017 36 GBP 2,969 360 (30) (0.01) Long Gilt 27/09/2017 19 GBP 2,717 1,900,000 (14) –

United Kingdom total (125) (0.03) United States (2016: (0.08)%)

CBOE Volatility Index 19/07/2017 (38) USD 411 38,000 (11) – S&P 500 Emini Index 15/09/2017 (47) USD 4,988 2,350 (5) – US 2 Year Note 29/09/2017 200 USD 37,896 40,000,000 (68) (0.02) US 10 Year Note 20/09/2017 62 USD 6,824 6,200,000 (35) (0.01)

United States total (119) (0.03) Total unrealised loss on Futures Contracts (2016: (0.09)%) (628) (0.14)

Total financial assets at fair value through profit or loss 307,123 66.75 Total financial liabilities at fair value through profit or loss (30,959) (6.73) Cash and cash equivalents 202,215 43.95 Other assets and liabilities (18,226) (3.97) Net asset value attributable to redeemable participating shareholders 460,153 100.00

102



Analysis of total assets % of total

assets Transferable securities admitted to official stock exchange listing 56.08 Transferable securities traded on a regulated market 0.01 Financial derivative instruments dealt in on a regulated market 0.16 OTC financial derivative instruments 3.47 Other assets 40.28 Total assets 100.00

1 Security is perpetual without predetermined maturity date. The date shown, if applicable, is the next call date. 2 Security is currently in default. 3 Prior year percentage of net asset value rounds to 0.00%. 4Forward currency contracts are traded with the following counterparty: J.P. Morgan.

103


HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (UNAUDITED) As at 30 June 2017 Coupon Maturity Fair Value % of Net Investments Rate Date Holding EUR '000 Asset Value Liquidity Instruments Time Deposits (2016: 15.30%) Japan (2016: 9.62%)

Sumitomo Mitsui Banking Corp. (0.61)% 06/07/2017 29,485,370 29,485 18.13 Japan total 29,485 18.13

United Kingdom (2016: 5.68%)

Lloyds Bank plc (0.65)% 06/07/2017 30,432,570 30,433 18.72 United Kingdom total 30,433 18.72

Total investments in Time Deposits 59,918 36.85 Total Liquidity Instruments 59,918 36.85 Fair Value % of Net Investments Currency Holding EUR '000 Asset Value Equities (2016: 62.10%) Austria (2016: 4.99%)

Agrana Beteiligungs AG EUR 21,187 2,418 1.49 KTM Industries AG CHF 434,000 2,044 1.26 UNIQA Insurance Group AG EUR 204,035 1,664 1.02

Austria total 6,126 3.77

Denmark (2016: 0.00%)

FLSmidth & Co. A/S DKK 73,000 4,032 2.48 Pandora A/S DKK 50,000 4,076 2.51 Scandinavian Tobacco Group A/S 'A' DKK 115,000 1,644 1.01

Denmark total 9,752 6.00

France (2016: 19.09%)

Technicolor SA EUR 1,549,000 5,910 3.63 France total 5,910 3.63

104


HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017 Fair Value % of Net Investments Currency Holding EUR '000 Asset Value Equities (2016: 62.10%) (continued) Germany (2016: 5.71%)

Aareal Bank AG EUR 111,000 3,846 2.37 Covestro AG EUR 52,000 3,274 2.01 Suedzucker AG EUR 135,000 2,457 1.51 TUI AG EUR 251,000 3,191 1.96 United Internet AG EUR 100,000 4,809 2.96 Wacker Chemie AG EUR 25,000 2,374 1.46

Germany total 19,951 12.27

Ireland (2016: 5.52%)

Greencore Group plc GBP 2,085,000 5,845 3.59 UDG Healthcare plc GBP 426,500 4,203 2.59

Ireland total 10,048 6.18


ForFarmers NV EUR 200,000 1,970 1.21 Netherlands total 1,970 1.21

Norway (2016: 0.00%)

Borregaard ASA NOK 80,000 858 0.53 Norway total 858 0.53

Spain (2016: 3.26%)

Indra Sistemas SA EUR 309,000 3,902 2.40 International Consolidated Airlines Group SA GBP 350,000 2,430 1.49

Spain total 6,332 3.89

Sweden (2016: 0.00%)

Saab AB 'B' SEK 55,000 2,378 1.46 Sweden total 2,378 1.46

Switzerland (2016: 3.88%)

Kardex AG CHF 15,566 1,570 0.97 Switzerland total 1,570 0.97


Cambian Group plc GBP 1,819,000 3,444 2.12 Laird plc GBP 2,040,000 3,212 1.97

United Kingdom total 6,656 4.09

Total investments in Equities 71,551 44.00

105


HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017

Underlying

Exposure Fair Value % of Net Country Counterparty Currency Holding EUR '000 EUR'000 Asset Value Contracts for Difference Canada (2016: 0.00%) Entertainment One Ltd. BNP Paribas GBP 1,416,000 1,416 122 0.08 Canada total 122 0.08 France (2016: 0.28%)

Carrefour SA BNP Paribas EUR (73,000) 73 27 0.02 Dassault Systemes SE BNP Paribas EUR (41,500) 42 41 0.02 Elior Group BNP Paribas EUR 151,439 151 604 0.37 Eutelsat Communications SA BNP Paribas EUR (70,000) 70 124 0.07 Korian SA BNP Paribas EUR (30,000) 30 9 0.01 Maisons du Monde SA BNP Paribas EUR 72,000 72 108 0.07

France total 913 0.56 European Union (2016: 0.49%) Germany (2016: 0.03%)

Infineon Technologies AG BNP Paribas EUR (126,000) 126 155 0.10 Sartorius AG BNP Paribas EUR (10,764) 11 74 0.04

Germany total 229 0.14 Jersey (2016: 0.00%)

XLMedia plc BNP Paribas GBP 1,765,000 1,765 277 0.17 Jersey total 277 0.17 Netherlands (2016: 0.00%)

Philips Lighting NV BNP Paribas EUR (36,000) 36 76 0.05 Netherlands total 76 0.05 Switzerland (2016: 0.09%)

Straumann Holding AG BNP Paribas CHF (2,400) 2 13 0.01 Switzerland total 13 0.01 United Kingdom (2016: 0.00%)

Auto Trader Group plc BNP Paribas GBP (144,000) 144 32 0.02 British Land Co. plc (The) BNP Paribas GBP (297,000) 297 78 0.05 Hammerson plc BNP Paribas GBP (268,966) 269 71 0.04 Travis Perkins plc BNP Paribas GBP (36,000) 36 25 0.01

United Kingdom total 206 0.12 Total unrealised gain on Contracts for Difference (2016: 0.89%) 1,836 1.13

Canada (2016: (0.09)%) Denmark (2016: (0.06)%)

Chr. Hansen Holding A/S BNP Paribas DKK (20,000) 20 (17) (0.01) Denmark total (17) (0.01)

106



Underlying

Exposure Fair Value % of Net Country Counterparty Currency Holding EUR '000 EUR'000 Asset Value Contracts for Difference (continued) European Union (2016: (0.08)%)

STOXX Europe Small 200 Index

UBS EUR (89,700) 90 (1,429) (0.88)

European Union total (1,429) (0.88) France (2016: (0.59)%)

Gaztransport Et Technigaz SA

BNP Paribas EUR 64,744 65 (33) (0.02)

Orpea BNP Paribas EUR (8,400) 8 (19) (0.01) Societe BIC SA BNP Paribas EUR 30,000 30 (160) (0.10)

France total (212) (0.13) Germany (2016: (0.10)%)

Fraport AG Frankfurt Airport Services Worldwide

BNP Paribas EUR (35,000) 35 (514) (0.32)

Vonovia SE BNP Paribas EUR (23,000) 23 (2) – Germany total (516) (0.32) Switzerland (2016: (0.15)%)

Barry Callebaut AG BNP Paribas CHF (1,630) 2 (73) (0.04) Logitech International SA BNP Paribas CHF (39,000) 39 (32) (0.02)

Switzerland total (105) (0.06) United Kingdom (2016: (0.10)%)

Interserve plc BNP Paribas GBP 1,464,000 1,464 (116) (0.07) Just Eat plc BNP Paribas GBP (179,000) 179 (6) – Next Fifteen Communications Group plc

BNP Paribas GBP 318,000 318 (15) (0.01)

Rightmove plc BNP Paribas GBP (28,000) 28 (17) (0.01) Scapa Group plc BNP Paribas GBP 123,000 123 (41) (0.03)

United Kingdom total (195) (0.12) Total unrealised loss on Contracts for Difference (2016: (1.17) %) (2,474) (1.52)

Security Maturity Underlying

Exposure Fair Value % of Net Quantity Description Date Currency Counterparty EUR '000 EUR '000 Asset Value Exchange Traded Options Purchased

140 EURO STOXX 50 Index, Put, 3,650.000 15/09/2017 EUR J.P. Morgan 511 329 0.20

Total unrealised gain on Exchange Traded Options Purchased (2016: 0.00%) 329 0.20

107




Exposure Maturity Fair Value % of Net Purchased Purchased Sold Sold EUR '000 Date EUR '000 Asset Value Forward Currency Contracts1 DKK 28,000,000 EUR 3,764,616 3,766 05/07/2017 1 – EUR 10,503,528 CHF 11,430,643 10,465 05/07/2017 38 0.02 EUR 1,965,178 CHF 2,132,000 1,952 05/07/2017 13 0.01 EUR 3,656,770 DKK2 27,187,985 3,657 05/07/2017 – – EUR 26,797,553 GBP 23,384,874 26,633 05/07/2017 166 0.10 EUR 2,437,691 NOK 23,202,000 2,429 05/07/2017 9 0.01 EUR 841,645 NOK 8,010,386 838 05/07/2017 3 – EUR 32,257 USD2 36,432 32 03/07/2017 – – EUR 2,569,087 USD 2,887,601 2,532 05/07/2017 38 0.02 Total unrealised gain on Forward Currency Contracts (2016: 1.26%) 268 0.16

CHF 1,700,293 EUR 1,562,935 1,557 03/07/2017 (6) – EUR 2,187,703 SEK 21,360,528 2,220 05/07/2017 (33) (0.02) GBP 4,000,000 EUR 4,606,251 4,556 05/07/2017 (51) (0.04) USD 496,736 EUR 441,750 436 03/07/2017 (6) – USD 2,966,325 EUR 2,638,059 2,601 03/07/2017 (37) (0.02) Total unrealised loss on Forward Currency Contracts (2016: (0.41)%) (133) (0.08)

Fair Value % of Net Investments EUR '000 Asset Value Futures Contracts Germany (2016: (0.05)%) Total unrealised loss on Futures Contracts (2016: (0.05)%) – – Total financial assets at fair value through profit or loss 133,902 82.34 Total financial liabilities at fair value through profit or loss (2,607) (1.60) Cash and cash equivalents 46,773 28.76 Other assets and liabilities (15,450) (9.50) Net asset value attributable to redeemable participating shareholders 162,618 100.00

% of total Analysis of total assets assets Transferable securities admitted to official stock exchange listing 35.40 Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) 29.65 Financial derivative instruments 0.16 OTC financial derivative instruments 1.04 Other Assets 33.75 Total Assets 100.00 1Forward currency contracts are traded with the following counterparty: J.P. Morgan. 2Investments which are less than EUR 500 have been rounded down to zero.

108


HI SIBILLA MACRO FUND SCHEDULE OF INVESTMENTS (UNAUDITED) As at 30 June 2017 Coupon Maturity Fair Value % of Net Investments Rate Date Holding EUR '000 Asset Value Liquidity Instruments Time Deposits (2016: 51.46%) Japan (2016: 15.50%)

Sumitomo Mitsui Banking Corp. 0.80% 13/07/2017 7,284,090 6,386 7.92 Sumitomo Mitsui Banking Corp. 1.04% 08/08/2017 605,127 531 0.66 Sumitomo Mitsui Banking Corp. 1.04% 15/08/2017 2,011,616 1,764 2.18 Sumitomo Mitsui Banking Corp. 1.04% 15/08/2017 1,207,732 1,059 1.31 Sumitomo Mitsui Banking Corp. 1.04% 26/09/2017 4,036,478 3,539 4.39

Japan total 13,279 16.46


Lloyds Bank plc 1.07% 30/07/2017 2,800,000 2,455 3.04 Lloyds Bank plc 1.14% 30/08/2017 6,066,899 5,319 6.60 Lloyds Bank plc 1.14% 30/08/2017 5,546,271 4,863 6.03 Lloyds Bank plc 1.14% 30/08/2017 2,017,105 1,769 2.19

United Kingdom total 14,406 17.86

United States (2016: 17.15%)

BNP Paribas SA 0.00% 05/07/2017 8,000,000 7,014 8.70 United States total 7,014 8.70

Total investments in Time Deposits 34,699 43.02 Total Liquidity Instruments 34,699 43.02 Fair Value % of Net Investments Currency Holding EUR '000 Asset Value Equities (2016: 0.40%) Netherlands (2016: 0.40%) Coupon Maturity Fair Value % of Net Investments Rate Date Currency Holding EUR '000 Asset Value Bonds Government Fixed Coupon Securities (2016: 20.53%) United States (2016: 20.53%)

US Treasury 0.75% 31/10/2017 USD 14,300,000 12,523 15.53

109


HI SIBILLA MACRO FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017 Coupon Maturity Fair Value % of Net Investments Rate Date Currency Holding EUR '000 Asset Value Government Fixed Coupon Securities (2016: 20.53%) (continued) United States (2016: 20.53%) (continued)

US Treasury 0.75% 30/09/2018 USD 3,000,000 2,612 3.24 United States total 15,135 18.77

Total investments in Government Fixed Coupon Securities 15,135 18.77 Total Bonds 15,135 18.77



Fair Value EUR '000


Contracts for Difference United States (2016: (0.00)%)

JPMorgan Chase & Co. BNP Paribas USD (5,400) 5 (21) (0.03) Morgan Stanley1 BNP Paribas USD (10,115) 10 – –

United States total (21) (0.03) Total unrealised loss on Contracts for Difference (2016: (0.00)%) (21) (0.03)

Quantity Security Description

Maturity Date Currency Counterparty


Fair Value EUR '000


Exchange traded options purchased (2016: 0.01%) Total unrealised gain on exchange traded options purchased (2016: 0.01%) – –


Exposure Maturity Fair Value % of Net Purchased Purchased Sold Sold EUR '000 Date EUR '000 Asset Value Forward Currency Contracts2 EUR 68,188,214 USD 76,693,943 67,243 11/08/2017 1,085 1.35 USD 11,840,494 KRW 13,514,740,236 20,738 03/08/2017 27 0.03 Total unrealised gain on Forward Currency Contracts (2016: 0.42%) 1,112 1.38

CHF 155,770 EUR 143,706 143 10/08/2017 (1) – CHF 2,083,742 EUR 1,922,333 1,908 10/08/2017 (14) (0.02) USD 3,792,887 EUR 3,352,413 3,325 10/08/2017 (34) (0.04) USD 11,050,086 TWD 336,497,205 1,9387 03/08/2017 (10) (0.01) Total unrealised loss on Forward Currency Contracts (2016: (1.23)%) (59) (0.07)

110


HI SIBILLA MACRO FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017

No. of

Underlying

Exposure Notional Fair Value % of Net Investments contracts Currency EUR '000 Amount EUR '000 Asset Value Futures Contracts Germany (2016: (0.02)%) United States (2016: (0.22)%) Total financial assets at fair value through profit or loss 50,946 63.17 Total financial liabilities at fair value through profit or loss (80) (0.10) Cash and cash equivalents 29,982 37.18 Other assets and liabilities (199) (0.25) Net asset value attributable to redeemable participating shareholders 80,649 100.00


assets Transferable securities admitted to official stock exchange listing or traded on a regulated market 18.55 Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) 42.53 OTC financial derivative instruments 1.36 Other Assets 37.56 Total Assets 100.00

1Investments which are less than EUR 500 have been rounded down to zero. 2Forward currency contracts are traded with the following counterparty: Citibank.

111


HI CORE UCITS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) As at 30 June 2017 Fair Value % of Net Investments Currency Holding EUR '000 Asset Value Investment Funds - UCITS (2016: 91.17%) Ireland (2016: 44.90%)

Active Funds ICAV - Global High Income Bond fund USD 10,524 968 2.68 Algebris Macro Credit Fund - Class I EUR EUR 10,619 1,104 3.06 Fundlogic Alternatives plc - MS Nezu Cyclicals Japan UCITS Fund - Class S EUR

EUR 1,164 1,100 3.05

GAM Star Fund plc - Global Rates Fund - Class Ordinary EUR EUR 128,833 1,539 4.27 Hadron Alpha PLC - Hadron Alpha Select Fund - Class EUR EUR 17,335 1,992 5.53 HI Africa Opportunities Fund1 EUR 18,884 1,798 4.99 HI Numen Bear Rates Fund1 EUR 9,000 887 2.46 HI Numen Credit Fund1 EUR 9,361 1,034 2.87 HI Principia Fund1 EUR 18,105 2,296 6.37 HI Sibilla Macro Fund1 EUR 16,955 1,723 4.78 Lazard European Alternative Fund - Class Institutional Accumulation EA EUR

EUR 16,106 1,677 4.65

Majedie Asset Management Investment Fund Co. - Majedie Asset TortoiseFund - Class G

GBP 780,793 1,635 4.53

Ireland total 17,753 49.24

Luxembourg (2016: 46.27%)

Alpha UCITS SICAV - Amber Equity Fund - Class A EUR EUR 863 1,139 3.16 BlackRock Global Event Driven Fund EUR 17,591 1,912 5.30 Boussard & Gavaudan SICAV - Absolute Return Fund - Class Z EUR EUR 973 1,105 3.07 DB Platinum Chilton European Equities - Class I2C-E EUR 11,435 1,336 3.71 GAM Star Lux - European Alpha Fund - Class D EUR EUR 5,607 565 1.57 JABCAP LUX - Global Balanced Fund - Class N EUR EUR 2,060 217 0.60 Julius Baer Multilabel - ARTEMIDE Fund - Class C EUR EUR 13,620 1,908 5.29 Julius Baer Multilabel - LYRA Fund - Class C EUR EUR 9,653 1,226 3.40 Kairos international SICAV - Pegasus UCITS - Class Accumulation P EUR EUR 9,233 1,091 3.03 Memnon Fund - European Fund - Class I EUR EUR 4,588 910 2.52 Merrill Lynch Investment Solutions - York Asian Event-Driven UCITS Fund - Class USD D

USD 13,759 1,635 4.54

Merrill Lynch Investment Solutions - Zeal Voyage Greater China UCITS USD 6,168 624 1.73 Portland Hill Fund Sicav - Catalyst Driven Strategy - Class A EUR EUR 17,120 1,851 5.13

Luxembourg total 15,519 43.05

Total investments in Investment Funds- UCITS 33,272 92.29

112


HI CORE UCITS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017 Fair Value % of Net Investments Currency Holding EUR '000 Asset Value Exchange Traded Funds (2016: 1.54%) France (2016: 1.00%)

Lyxor CAC 40 (DR) UCITS ETF - Class D EUR EUR 5,736 296 0.82 Lyxor Daily double Short BUND UCITS ETF EUR 27,629 1,033 2.87

France total 1,329 3.69

Germany (2016: 0.54%)

iShares STOXX Europe 600 Banks UCITS ETF EUR 11,132 204 0.56 Germany total 204 0.56

Jersey (2016: 0.00%)

ETFS WTI Crude Oil USD 58,953 342 0.95 Jersey total 342 0.95

Total investments in Exchange Traded Funds 1,875 5.20 Exchange Traded Notes (2016: 1.15%) Jersey (2016: 1.15%) Total investments in Exchange Traded Funds – –


Exposure Maturity Fair Value % of Net Purchased Purchased Sold Sold EUR '000 Date EUR '000 Asset Value Forward Currency Contracts2 EUR 3,542,463 USD 4,031,500 3,535 31/07/2017 13 0.03 Total unrealised gain on Forward Currency Contracts (2016: 0.00%3) 13 0.03

EUR 1,633,933 GBP 1,448,400 1,650 31/07/2017 (15) (0.04) USD 935,932 EUR 822,400 821 31/07/2017 (3) (0.01) USD 1,242,864 EUR 1,092,100 1,090 31/07/2017 (4) (0.01) Total unrealised loss on Forward Currency Contracts (2016: (0.02)%) (22) (0.06)

Total financial assets at fair value through profit or loss 35,160 97.52 Total financial liabilities at fair value through profit or loss (22) (0.06) Cash and cash equivalents 2,300 6.38 Other assets and liabilities (1,385) (3.84) Net asset value attributable to redeemable participating shareholders 36,053 100.00

113


HI CORE UCITS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017 % of total Analysis of total assets asset Transferable securities admitted to official stock exchange listing 5.00 Investment Funds 88.67 OTC financial derivative instruments 0.03 Other Assets 6.30 Total Assets 100.00

1A related party to the Fund. 2Forward currency contracts are traded with the following counterparty: Credit Agricole. 3 Prior year percentage of net asset value rounds to 0.00%.

114


HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) As at 30 June 2017 Coupon Maturity Fair Value % of Net Investments Rate Date Holding EUR '000 Asset Value Liquidity Instruments Time Deposits (2016: 21.85%) Japan (2016: 18.94%)

Sumitomo Mitsui Banking Corp. (0.59)% 06/07/2017 192,580 192 0.92 Japan total 192 0.92


Lloyds Bank plc (0.65)% 06/07/2017 488,581 489 2.35 United Kingdom total 489 2.35

Total investments in Time Deposits 681 3.27 Total Liquidity Instruments 681 3.27 Fair Value % of Net Investments Currency Holding EUR '000 Asset Value Equities (2016: 45.26%) Australia (2016: 0.00%)

South32 Ltd. GBP 210,000 380 1.83 Australia total 380 1.83

Bermuda (2016: 0.00%)

Kosmos Energy Ltd. USD 40,000 225 1.08 Bermuda total 225 1.08

Canada (2016: 0.11%) Cayman Islands (2016: 0.07%) Egypt (2016: 0.00%)

ElSewedy Electric Co. EGP 217,625 992 4.77 Ghabbour Auto EGP 4,100,000 428 2.05 Oriental Weavers EGP 899,967 788 3.79 Telecom Egypt Co. EGP 1,500,000 743 3.57

Egypt total 2,951 14.18

115


HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017 Fair Value % of Net Investments Currency Holding EUR '000 Asset Value Equities (continued) Jersey (2016: 0.00%)

Glencore plc GBP 240,000 785 3.77 Randgold Resources Ltd. GBP 1,000 78 0.38

Jersey total 863 4.15

Kenya (2016: 9.55%)

East African Breweries Ltd. KES 200,000 418 2.01 Equity Group Holdings Ltd. KES 1,327,900 435 2.09 KCB Group Ltd. KES 700,000 225 1.08 KenolKobil Ltd. Group KES 6,015,500 716 3.44 Safaricom Ltd. KES 4,582,400 886 4.26

Kenya total 2,680 12.88

Nigeria (2016: 0.00%)

Dangote Cement plc NGN 1,250,000 598 2.88 Guaranty Trust Bank plc NGN 9,995,010 843 4.05 Guinness Nigeria plc NGN 1,500,000 244 1.17 United Bank for Africa plc NGN 9,336,900 198 0.95 Zenith Bank plc NGN 16,850,000 856 4.11

Nigeria total 2,739 13.16

South Africa (2016: 34.12%)

Discovery Ltd. ZAR 80,000 684 3.29 EOH Holdings Ltd. ZAR 91,000 765 3.68 Growthpoint Properties Ltd., REIT ZAR 440,000 722 3.47 Naspers Ltd. ZAR 5,300 902 4.33 Redefine Properties Ltd., REIT ZAR 950,000 669 3.21 Shoprite Holdings Ltd. ZAR 40,000 533 2.56

South Africa total 4,275 20.54

United Arab Emirates (2016: 1.41%)

Emaar Properties PJSC AED 400,000 742 3.57 Orascom Construction Ltd. EGP 117,864 724 3.48

United Arab Emirates total 1,466 7.05

Total investments in Equities 15,579 74.87

116


HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017 Coupon Maturity Fair Value % of Net Investments Rate Date Currency Holding EUR '000 Asset Value Bonds Government Fixed Coupon Securities (2016: 15.74%) United States (2016: 15.74%) Total investments in Government Fixed Coupon Securities - - Total Bonds - -



Fair Value EUR '000


Contracts for Difference South Africa (2016: 0.13%)

Aspen Pharmacare Holdings Ltd. BNP Paribas EUR (36,000) 36 31 0.15 FirstRand Ltd. BNP Paribas EUR (130,000) 130 21 0.10 MTN Group Ltd. BNP Paribas EUR (80,000) 80 28 0.13 PPC Ltd. Goldman Sachs EUR (535,000) 535 22 0.11 Sun International Ltd. Goldman Sachs EUR (40,000) 40 41 0.20

South Africa total 143 0.69 Switzerland (2016: 0.14%) United Kingdom (2016: 0.23%)

Mediclinic International plc BNP Paribas EUR (66,000) 66 32 0.15 PZ Cussons plc Goldman Sachs EUR (190,000) 190 13 0.06

United Kingdom total 45 0.21 Total unrealised gain on Contracts for Difference (2016: 0.50%) 188 0.90

South Africa (2016: (0.17)%)

Life Healthcare Group Holdings Ltd. Goldman Sachs EUR (250,000) 250 (5) (0.02) Mr Price Group Ltd. BNP Paribas EUR (34,000) 34 (6) (0.03)

South Africa total (11) (0.05) Total unrealised loss on Contracts for Difference (2016: (0.17)%) (11) (0.05)

117


HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2017


Exposure Maturity Fair Value % of Net Purchased Purchased Sold Sold EUR '000 Date EUR '000 Asset Value Forward Currency Contracts1 EUR 56,877 USD 63,597 56 03/07/2017 1 – USD 382,767 EUR2 334,811 336 01/08/2017 – – USD 33,475 EUR2 29,281 29 01/08/2017 – –

Total unrealised gain on Forward Currency Contracts (2016: 0.44%) 1 – USD 95,079 EUR 84,508 83 03/07/2017 (1) – USD 376,745 EUR 334,874 330 03/07/2017 (4) (0.02) Total unrealised loss on Forward Currency Contracts (2016: (0.28)%) (5) (0.02)

Total financial assets at fair value through profit or loss 16,449 79.04 Total financial liabilities at fair value through profit or loss (16) (0.07) Cash and cash equivalents 4,245 20.40 Other assets and liabilities 130 0.63 Net asset value attributable to redeemable participating shareholders 20,808 100.00


assets Transferable securities admitted to official stock exchange listing 74.31 Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) 3.25 OTC financial derivative instruments 0.90 Other Assets 21.54 Total Assets 100.00

1Forward currency contracts are traded with the following counterparty: J.P. Morgan. 2Investments which are less than EUR 500 have been rounded down to zero.

118


HI NUMEN BEAR RATES FUND

SCHEDULE OF INVESTMENTS (UNAUDITED)

As at 30 June 2017

Fair Value % of Net Investments Currency Holding USD '000 Asset Value

Exchange Traded Notes

United Kingdom

iPath S&P GSCI Crude Oil Total Return Index ETN USD 235,000 1,141 9.26 United Kingdom total 1,141 9.26

Total investments in Exchange Traded Notes 1,141 9.26


Exposure Fair Value % of Net Amount Currency Counterparty Entity Buy/Sell Date USD '000 USD '000 Asset Value

Credit Default Swaps



Ireland

Sell 20/12/2017 2,000 10 0.08

Total unrealised gain on Credit Default Swaps 10 0.08



Ireland

Buy 20/06/2027 2,000 (90) (0.73)

2,000,000 USD J.P. Morgan Republic of Korea

Buy 20/06/2022 2,000 (45) (0.37)

Total unrealised loss on Credit Default Swaps (135) (1.10)


Exposure Maturity Fair Value % of Net Purchased Purchased Sold Sold USD '000 Date USD '000 Asset Value

Forward Currency Contracts1

EUR 9,510,000 USD 10,823,331 10,847 28/07/2017 38 0.31 EUR 957,990 USD 1,090,288 1,093 28/07/2017 4 0.03 USD 3,000,000 HKD 23,350,800 2,991 29/09/2017 1 0.01

Total unrealised gain on Forward Currency Contracts 43 0.35

119



SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)

As at 30 June 2017

No. of Underlying

Exposure Notional Fair Value % of Net Investments contracts Currency USD '000 Amount USD '000 Asset Value

Futures Contracts

Germany

Euro-Bobl 07/09/2017 (23) EUR 3,455 2,300,000 39 0.32 Euro-BTP 07/09/2017 (8) EUR 1,233 800,000 3 0.02 Euro-Bund 07/09/2017 (25) EUR 4,616 2,500,000 58 0.47 Euro-Buxl 07/09/2017 (10) EUR 1,865 1,000,000 4 0.03

Germany total 104 0.84

Singapore

10 Year Mini JGB 11/09/2017 (24) JPY 3,209 240,000,000 3 0.02

Singapore total 3 0.02

Switzerland

Swiss Federal Bond 07/09/2017 (25) CHF 4,238 2,500,000 55 0.45

Switzerland total 55 0.45

Total unrealised gain on Futures Contracts 162 1.31

Germany

Euro-Bono 07/09/2017 (25) EUR 3,945 2,500,000 (8) (0.06) Short Euro-BTP 07/09/2017 (28) EUR 3,598 2,800,000 (8) (0.07)

Germany total (16) (0.13)

United States

British Pound 18/09/2017 (28) USD 2,283 17,500 (8) (0.06) US 2 Year Note 29/09/2017 20 USD 4,322 4,000,000 (5) (0.04) US 10 Year Note 20/09/2017 10 USD 1,255 1,000,000 (12) (0.10)

United States total (25) (0.20)

Total unrealised loss on Futures Contracts (41) (0.33)

Total financial assets at fair value through profit or loss 1,356 11.00 Total financial liabilities at fair value through profit or loss (176) (1.43) Cash and cash equivalents 11,186 90.75 Other assets and liabilities (39) (0.32)

Net asset value attributable to redeemable participating shareholders 12,327 100.00

120



SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)

As at 30 June 2017


assets Transferable securities admitted to official stock exchange listing 9.09 Financial derivative instruments dealt in on a regulated market 1.29 OTC financial derivative instruments 0.42 Other Assets 89.20

Total Assets 100.00

1Forward currency contracts are traded with the following counterparty: J.P. Morgan.

121


OTHER INFORMATION (UNAUDITED) MANAGEMENT FEES OF UNDERLYING INVESTMENT FUNDS AND EXCHANGE TRADED FUNDS

Name Management

fee Management fee

net of rebates

Active Funds ICAV - Global High Income Bond Fund 0.65% 0.50%

Algebris Macro Credit Fund - Class I EUR 0.90% 0.90%

Alpha UCITS SICAV - Amber Equity Fund - Class A EUR 1.50% 1.50%

BlackRock Global Event Driven Fund 0.50% 0.50%

Boussard & Gavaudan SICAV - Absolute Return Fund - Class Z EUR 1.00% 1.00%

DB Platinum Chilton European Equities - Class I2C-E 1.20% 1.20%

ETFS WTI Crude Oil 0.49% 0.49%

Fundlogic Alternatives plc - MS Nezu Cyclicals Japan UCITS Fund - Class S EUR 1.00% 1.00%

GAM Star Fund plc - Global Rates Fund - Class Ordinary EUR 1.15% 1.15%

GAM Star Lux - European Alpha Fund - Class D EUR 1.75% 1.75%

Hadron Alpha PLC - Hadron Alpha Select Fund - Class EUR 2.00% 1.40%

HI Africa Opportunities Fund 2.00% 0.00%

HI Numen Bear Rates Fund 1.50% 0.00%

HI Numen Credit Fund 1.75% 0.00%

HI Principia Fund 2.00% 0.00%

HI Sibilla Macro Fund 2.00% 0.00%

iShares STOXX Europe 600 Banks UCITS ETF 0.47% 0.47%

JABCAP LUX - Global Balanced Fund - Class N EUR 1.50% 1.00%

Julius Baer Multilabel - ARTEMIDE Fund - Class C EUR 1.00% 1.00%

Julius Baer Multilabel - LYRA Fund - Class C EUR 1.50% 1.50%

Kairos international SICAV - Pegasus UCITS - Class Accumulation P EUR 1.50% 1.50%

Lazard European Alternative Fund - Class Institutional Accumulation EA EUR 0.75% 0.75%

Lyxor CAC 40 (DR) UCITS ETF - Class D EUR 0.25% 0.25%

Lyxor Daily double Short BUND UCITS ETF 0.20% 0.20%

Majedie Asset Management Investment Fund Co. - Majedie Asset TortoiseFund - Class G 1.50% 1.50%

Memnon Fund - European Fund - Class I EUR 1.25% 0.85%

Merrill Lynch Investment Solutions - York Asian Event-Driven UCITS Fund - Class USD D 1.25% 1.25%

Merrill Lynch Investment Solutions - Zeal Voyage Greater China UCITS 1.25% 1.25%

Portland Hill Fund Sicav - Catalyst Driven Strategy - Class A EUR 1.50% 1.50% SOFT COMMISSIONS During the year, the Investment Manager and the Sub-Investment Managers have not entered into soft commission arrangements with brokers for HI Numen Credit Fund, HI Numen Bear Rates Fund and HI Core UCITS Fund. For HI Principia Fund and HI Africa Opportunities Fund, the Sub-Investment Manager has in place commission sharing agreements with UBS and Bloomberg. For HI Sibilla Macro Fund, the Sub-Investment Manager has in place commission sharing agreements with BNP Paribas and FBN Securities. Under these agreements, the brokers would, when required, pay directly third party research providers for the provision of specific proprietary research and analysis and research related expenses. No payment would be paid, by the brokers, to any third party without it having been validated as a genuine and proper research provider. For HI Principia Fund, to date no use has been made of these agreements and no trading has taken place with Bloomberg since the inception of the Sub-Fund. For HI Africa Opportunities Fund, to date no use has been made of these agreements and no trading has taken place with UBS and Bloomberg.

122


OTHER INFORMATION (UNAUDITED)

HI NUMEN CREDIT FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the year ended 30 June 2017

Purchases Coupon Maturity Cost

Holding Investments rate date EUR ’000 183,000,000 French Republic Government Bond OAT 0.25% 25/11/2026 170,291 117,000,000 Italy Buoni Poliennali Del Tesoro 1.60% 01/06/2026 116,454 93,050,000 UK Treasury 1.00% 07/09/2017 110,791 1,151,385 Syngenta AG ADR 89,378 969,000 iShares iBoxx USD High Yield Corporate Bond ETF 76,987 60,000,000 France Treasury Bill BTF 0.00% 29/12/2016 60,002 60,095,000 Bundesrepublik Deutschland 0.00% 15/08/2026 59,284 58,201,000 Bundesrepublik Deutschland 0.25% 15/02/2027 57,673 53,740,000 Cyprus Government Bond 2.75% 27/06/2024 53,571 52,000,000 Greece Government Bond 4.75% 17/04/2019 51,808 50,000,000 Italy Buoni Ordinari del Tesoro BOT 0.00% 12/01/2018 50,133 50,000,000 Spain Government Bond 0.40% 30/04/2022 49,659 40,700,000 UK Treasury 1.75% 22/01/2017 46,633 40,000,000 Spain Letras del Tesoro 0.00% 13/10/2017 40,104 33,978,000 Bundesrepublik Deutschland 2.00% 15/08/2023 39,238 32,947,000 Bundesrepublik Deutschland 2.00% 04/01/2022 36,981 352,221 Monsanto Co. 36,501 35,000,000 Spain Letras del Tesoro 0.00% 15/09/2017 35,033 35,000,000 Italy Buoni Ordinari del Tesoro BOT 0.00% 31/05/2017 35,028 33,311,000 Bundesobligation 0.00% 08/04/2022 34,014 5,752,584 Rite Aid Corp. 33,598 29,845,000 Bundesrepublik Deutschland 0.50% 15/02/2025 31,170 702,800 VelocityShares Daily Inverse VIX Short Term ETN 30,716 27,593,000 Bundesrepublik Deutschland 1.50% 04/09/2022 30,410 18,820,000 UK Treasury 4.25% 07/12/2027 29,340 147,085 Actelion Ltd. 28,372 24,125,000 Bundesrepublik Deutschland 1.00% 15/08/2024 26,481

Sales Coupon Maturity Proceeds

Holding Investments rate date EUR ’000 183,000,000 French Republic Government Bond OAT 0.25% 25/11/2026 171,177 113,050,000 UK Treasury 1.75% 22/01/2017 134,689 117,000,000 Italy Buoni Poliennali Del Tesoro 1.60% 01/06/2026 116,579 93,050,000 UK Treasury 1.00% 07/09/2017 108,087 1,194,962 Syngenta AG ADR 94,857 969,000 iShares iBoxx USD High Yield Corporate Bond ETF 76,790 60,000,000 Italy Buoni Ordinari del Tesoro BOT 0.00% 14/02/2017 60,059 60,095,000 Bundesrepublik Deutschland 0.00% 15/08/2026 59,254 58,201,000 Bundesrepublik Deutschland 0.25% 15/02/2027 57,713 55,000,000 Italy Buoni Ordinari del Tesoro BOT 0.00% 14/12/2016 55,041 53,740,000 Cyprus Government Bond 2.75% 27/06/2024 53,968 46,149,000 Cyprus Government Bond 6.50% 02/05/2020 53,533 50,000,000 Italy Buoni Ordinari del Tesoro BOT 0.00% 12/01/2018 50,136 50,000,000 Spain Letras del Tesoro 0.00% 07/04/2017 50,068 50,000,000 France Treasury Bill BTF 0.00% 01/02/2017 50,062 50,000,000 Spain Letras del Tesoro 0.00% 20/01/2017 50,054

123


OTHER INFORMATION (UNAUDITED) HI NUMEN CREDIT FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the year ended 30 June 2017 Sales (continued) Coupon Maturity Proceeds Holding Investments rate date EUR ’000 50,000,000 Spain Government Bond 0.40% 30/04/2022 49,922 40,000,000 Spain Letras del Tesoro 0.00% 13/10/2017 40,086 40,000,000 Spain Letras del Tesoro 0.00% 09/12/2016 40,036 40,000,000 Italy Buoni Ordinari del Tesoro BOT 0.00% 14/11/2016 40,025 33,978,000 Bundesrepublik Deutschland 2.00% 15/08/2023 39,193 32,947,000 Bundesrepublik Deutschland 2.00% 04/01/2022 36,882 6,324,310 Rite Aid Corp. 35,972 35,000,000 Italy Buoni Ordinari del Tesoro BOT 0.00% 31/05/2017 35,022 33,311,000 Bundesobligation 0.00% 08/04/2022 34,018 29,845,000 Bundesrepublik Deutschland 0.50% 15/02/2025 31,280 702,800 VelocityShares Daily Inverse VIX Short Term ETN 31,270 147,085 Actelion Ltd. 30,733 27,593,000 Bundesrepublik Deutschland 1.50% 04/09/2022 30,393 30,000,000 Spain Letras del Tesoro 0.00% 16/06/2017 30,044 30,000,000 Spain Letras del Tesoro 0.00% 12/05/2017 30,040 18,820,000 UK Treasury 4.25% 07/12/2027 28,714

The CBI requires a schedule of material changes in the composition of the portfolio during the year. These are defined as aggregate purchases of a security exceeding one per cent of the total value of purchases for the year and aggregate disposals greater than one per cent of the total value of sales. At a minimum the largest 20 purchases and 20 sales must be given or all purchases and sales if less than 20. A full listing of the portfolio changes for the year is available, upon request, at no extra cost from the Administrator.

124


OTHER INFORMATION (UNAUDITED) HI PRINCIPIA FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the year ended 30 June 2017

Purchases Cost

Holding Investments EUR ’000 285,000 Fresenius SE & Co KGaA 19,824 497,000 ams AG 17,683 163,000 Pandora A/S 15,946 365,000 Wirecard AG 15,605 418,000 ProSiebenSat.1 Media SE 14,722 331,000 Novo Nordisk A/S 12,212 936,900 TUI AG 11,800 4,038,730 Greencore Group plc 11,549 1,953,304 Technicolor SA 10,306 264,000 Accor SA 9,273 273,000 Aareal Bank AG 8,807 177,450 Stroeer SE & Co KGaA 7,506 60,000 Volkswagen AG 7,402 11,050,000 Lloyds Banking Group plc 7,226 77,300 Cie Generale des Etablissements Michelin 7,216 335,500 Suedzucker AG 6,858 363,600 Rocket Internet SE 6,263 34,450 U-Blox Holding AG 5,970 88,000 Covestro AG 5,666 186,000 Vonovia SE 5,638 164,500 Aryzta AG 5,598 300,000 K+S AG 5,474 80,000 Coloplast A/S 5,196 91,000 Symrise AG 5,019 43,000 Sonova Holding AG 4,979 100,000 United Internet AG 4,852 291,000 Veolia Environnement SA 4,765 380,000 Ryanair Holdings plc 4,546 11,100 Eurofins Scientific SE 4,498 78,000 Gemalto NV 4,371 410,000 Indra Sistemas SA 4,183 215,000 Nordex SE 4,168 73,000 FLSmidth & Co A/S 4,058

Sales Proceeds

Holding Investments EUR ’000 852,000 ams AG 31,355 285,000 Fresenius SE & Co KGaA 20,257 418,000 ProSiebenSat.1 Media SE 15,977 365,000 Wirecard AG 15,758 6,056,153 Soitec 14,377 242,000 Gemalto NV 12,891 368,000 Accor SA 12,414 113,000 Pandora A/S 12,325 331,500 Aryzta AG 12,170 2,480,947 Technicolor SA 11,413 331,000 Novo Nordisk A/S 11,264

125


OTHER INFORMATION (UNAUDITED) HI PRINCIPIA FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued)

For the year ended 30 June 2017 Sales (continued)

Proceeds Holding Investments EUR ’000 3,163,730 Greencore Group plc 10,088 253,450 Stroeer SE & Co KGaA 9,599 358,000 Freenet AG 8,863 2,075,394 Sophos Group plc 8,814 2,171,798 Interserve plc 8,173 685,900 TUI AG 7,980 60,000 Volkswagen AG 7,505 77,300 Cie Generale des Etablissements Michelin 7,324 407,613 Elis SA 7,314 11,050,000 Lloyds Banking Group plc 7,044 216,000 Tecnicas Reunidas SA 6,736 811,000 UDG Healthcare plc 6,505 50,200 Gecina SA, REIT 6,291 363,600 Rocket Internet SE 6,233 219,271 Dialog Semiconductor plc 6,206 186,000 Vonovia SE 6,136 34,450 U-Blox Holding AG 6,129 43,000 Sonova Holding AG 5,964 291,000 Veolia Environnement SA 5,475 11,100 Eurofins Scientific SE 5,404 91,000 Symrise AG 5,313 162,000 Aareal Bank AG 5,017 862,309 Essentra plc 4,864 300,000 K+S AG 4,796 80,000 Coloplast A/S 4,732 378,000 S&T AG 4,604


126


OTHER INFORMATION (UNAUDITED) HI SIBILLA MACRO FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the year ended 30 June 2017


Holding Investments rate date EUR ’000 1,694,653 iShares MSCI Italy Capped ETF 16,646 266,115 Utilities Select Sector SPDR Fund 11,563 2,197,805 Banco Santander SA ADR 8,873 1,465,216 Eldorado Gold Corp. 4,679 391,998 Credit Suisse Group AG ADR 4,663 1,209,400 Lloyds Banking Group plc ADR 3,665 621,500 DB Gold Double Short ETN 3,388 635,842 Mitsubishi UFJ Financial Group, Inc. ADR 3,314 113,915 iShares MSCI Spain Capped ETF 3,232 1,381,724 Intesa Sanpaolo SpA 2,849 3,000,000 US Treasury 0.75% 30/09/2018 2,670 196,700 iPATH S&P 500 VIX Short-Term Futures ETN 2,193 364,950 Nomura Holdings, Inc. ADR 2,048 118,725 UBS Group AG 1,805 244,350 Banco Bilbao Vizcaya Argentaria SA ADR 1,672 132,050 Freeport-McMoRan, Inc. 1,600 99,454 Twitter, Inc. 1,575 56,300 iShares MSCI Italy Capped ETF 1,398 28,087 Societe Generale SA 1,390 55,457 CF Industries Holdings, Inc. 1,182 127,129 Sibanye Gold Ltd. ADR 1,170 73,729 Potash Corp. of Saskatchewan, Inc. 1,122 35,136 iPATH S&P 500 VIX Short-Term Futures ETN 1,120 48,067 Valeant Pharmaceuticals International, Inc. 992

Sales Proceeds Holding Investments EUR ’000 1,694,653 iShares MSCI Italy Capped ETF 16,744 266,115 Utilities Select Sector SPDR Fund 11,484 2,199,151 Banco Santander SA ADR 9,152 395,031 Credit Suisse Group AG ADR 4,796 1,465,216 Eldorado Gold Corp. 4,754 1,209,400 Lloyds Banking Group plc ADR 3,794 635,842 Mitsubishi UFJ Financial Group, Inc. ADR 3,621 621,500 DB Gold Double Short ETN 3,445 113,915 iShares MSCI Spain Capped ETF 3,191 1,381,724 Intesa Sanpaolo SpA 3,039 196,700 iPATH S&P 500 VIX Short-Term Futures ETN 2,187 364,950 Nomura Holdings, Inc. ADR 2,103 132,050 Freeport-McMoRan, Inc. 1,930 244,350 Banco Bilbao Vizcaya Argentaria SA ADR 1,758 118,725 UBS Group AG 1,751 99,454 Twitter, Inc. 1,657 95,037 UniCredit SpA 1,475 56,300 iShares MSCI Italy Capped ETF 1,402 28,087 Societe Generale SA 1,389 55,457 CF Industries Holdings, Inc. 1,144

127


OTHER INFORMATION (UNAUDITED) HI SIBILLA MACRO FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the year ended 30 June 2017

Sales (continued) Proceeds Holding Investments EUR ’000 73,729 Potash Corp. of Saskatchewan, Inc. 1,118 127,129 Sibanye Gold Ltd. ADR 1,105 35,136 iPATH S&P 500 VIX Short-Term Futures ETN 1,029

The CBI requires a schedule of material changes in the composition of the portfolio during the year.These are defined as aggregate purchases of a security exceeding one per cent of the total value of purchases for the period and aggregate disposals greater than one per cent of the total value of sales. At a minimum the largest 20 purchases and 20 sales must be given or all purchases and sales if less than 20. A full listing of the portfolio changes for the period is available, upon request, at no extra cost from the Administrator.

128


OTHER INFORMATION (UNAUDITED) HI CORE UCITS FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the year ended 30 June 2017

Purchases*

Coupon Maturity Cost Holding Investments rate date EUR '000 45,737 Lyxor Daily Double Short BUND UCITS ETF 1,712 863 Alpha UCITS SICAV - Amber Equity Fund 1,138 10,619 Algebris Macro Credit Fund - Class I EUR 1,100 10,524 Active Funds ICAV - Global High Income Bond Fund 1,015 9,233 Kairos international SICAV - Pegasus UCITS - Class P EUR 1,000 9,000 HI Numen Bear Rates Fund 900 4,916 Memnon Fund - European Fund - Class I EUR 870 8,409 Merrill Lynch Investment Solutions - Zeal Voyage Greater China UCITS 813 50,333 iShares STOXX Europe 600 Banks UCITS ETF 775 11,473 LYXOR CAC 40 DR UCITS ETF - Class D EUR 575 86,969 ETFS WTI Crude Oil 568 7,500,000 Mexican Bonos 8.50% 13/12/2018 408 33,663 GAM Star Fund plc - Global Rates Fund 400 4,138 iShares Core DAX UCITS ETF 398 12,115 LYXOR FTSE MIB UCITS ETF 203 968 ETFS Physical Gold 105 1,005 JABCAP LUX - Global Balanced Fund - Class N EUR 100 1 Yum China Holdings, Inc. -


Holding Investments rate date EUR '000 16,598 Verrazzano Sicav - European Long-Short Fund - Class EI EUR 1,751

14,093 Merrill Lynch Investment Solutions - Fenician Equity Long Short UCITS Fund 1,405

1,062 Boussard & Gavaudan SICAV - Absolute Return Fund - Class Z EUR 1,173 6,393 Schroder GAIA Egerton Equity Fund - Class C Accumulation EUR 1,066 9,081 HI Numen Credit Fund 1,000 56,116 iShares STOXX Europe 600 Banks UCITS ETF 879 2,828 GAM Star Lux - European Alpha Fund - Class C 817 6,596 DB Platinum Chilton European Equities - Class I1C-E 725 18,108 Lyxor Daily Double Short BUND UCITS ETF 682

283,061 Majedie Asset Management Investment Fund Co. - Majedie Asset Tortoise Fund - Class G

659

5,038 ETFS Physical Gold 565

601 Fundlogic Alternatives plc - MS Nezu Cyclicals Japan UCITS Fund - Class S EUR 559

4,909 HI Sibilla Macro Fund 498 239 EI Sturdza Fund PLC - Strategic China Panda Fund - Class EUR 494 4,138 iShares Core DAX UCITS ETF 435 14,010 Lyxor EURO STOXX 50 DR UCITS ETF - Class D EUR 403

3,894 Lazard European Alternative Fund - Class Institutional Accumulation EA EUR 401

7,500,000 Mexican Bonos 8.50% 13/12/2018 356 3,225 Portland Hill Fund Sicav - Catalyst Driven Strategy - Class A EUR 347 5,737 LYXOR CAC 40 (DR) UCITS ETF - Class D EUR 303

129


OTHER INFORMATION (UNAUDITED) HI CORE UCITS FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the year ended 30 June 2017 Sales (continued) Proceeds Holding Investments EUR '000 2,479 HI Principia Fund 298 1,700 Memnon Fund - European Fund - Class I EUR 284 2,274 GAM Star Lux - European Alpha Fund - Class D EUR 230 2,241 Merrill Lynch Investment Solutions - Zeal Voyage Greater China UCITS 216 2,061 JABCAP LUX - Global Balanced Fund - Class N EUR 214 1,822 DB Platinum Chilton European Equities - Class I2C-E 206 1,731 Hadron Alpha plc - Hadron Alpha Select Fund - Class EUR 202 1,526 Multilabel Sicav - ARTEMIDE - Class C EUR 201 1,971 BlackRock Global Event Driven Fund 201 12,115 LYXOR FTSE MIB UCITS ETF 199 28,016 ETFS WTI Crude Oil 187


*There were 18 purchases during the year.

130


OTHER INFORMATION (UNAUDITED) HI AFRICA OPPORTUNITIES FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the year ended 30 June 2017


Holding Investments rate date EUR ’000 13,000,000 U S Treasury 0.00% 13/10/2016 11,613 4,000,000 U S Treasury 0.00% 10/11/2016 3,632 4,000,000 U S Treasury 0.00% 11/08/2016 3,602 402,000 Discovery Ltd. 3,249 18,000 Naspers Ltd. 2,753 975,000 Glencore plc 2,751 940,000 Tullow Oil plc 2,743 181,000 AngloGold Ashanti Ltd. 2,637 1,585,000 Growthpoint Properties Ltd., REIT 2,565 20,000 iShares USD Treasury Bond 1-3yr UCITS ETF 2,399 28,000 Randgold Resources Ltd. 2,345 221,000 EOH Holdings Ltd. 2,113 3,500,000 Oriental Weavers 2,059 420,000 Gold Fields Ltd. 1,860 2,000,000 U S Treasury 0.00% 08/09/2016 1,788 166,000 JSE Ltd. 1,776 139,000 Anglo American plc 1,761 995,000 Centamin plc 1,709 68,000 Sasol Ltd. 1,652 275,000 Kosmos Energy Ltd. 1,606 327,789 ElSewedy Electric Co. 1,415 580,000 Cairn Energy plc 1,405 360,000 Sibanye Gold Ltd. 1,167 2,050,000 Telecom Egypt Co. 1,117 580,000 South32 Ltd. 1,085 1,340,000 Randgold Resources Ltd. 1,054 5,982,400 Safaricom Ltd. 996 8,134,700 KenolKobil Ltd Group 860 1,800,000 Ezz Steel 837


Holding Investments rate date EUR ’000 4,000,000 U S Treasury 0.00% 13/10/2016 3,582 462,000 Discovery Ltd. 3,502 241,000 AngloGold Ashanti Ltd. 3,396 20,700 Naspers Ltd. 3,312 2,015,000 Growthpoint Properties Ltd., REIT 3,294 280,000 JSE Ltd. 2,928 940,000 Tullow Oil plc 2,795 20,000 iShares USD Treasury Bond 1-3yr UCITS ETF 2,485 735,000 Glencore plc 2,386 27,000 Randgold Resources Ltd. 2,240 2,600,033 Oriental Weavers 1,969 210,000 EOH Holdings Ltd. 1,966 995,000 Centamin plc 1,914 68,000 Sasol Ltd. 1,850 1,800,000 Ezz Steel 1,846

131


OTHER INFORMATION (UNAUDITED) HI AFRICA OPPORTUNITIES FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the year ended 30 June 2017

Sales (continued) Proceeds

Holding Investments EUR ’000 139,000 Anglo American plc 1,818 420,000 Gold Fields Ltd. 1,624 180,000 MTN Group Ltd. 1,613 125,000 Shoprite Holdings Ltd. 1,552 580,000 Cairn Energy plc 1,504 111,500 Nedbank Group Ltd. 1,482

235,000 Kosmos Energy Ltd. 1,469 7,200,000 Safaricom Ltd. 1,276 132,000 Barclays Africa Group Ltd 1,270 4,500,000 Equity Group Holdings Ltd. 1,032 470,000 Africa Oil Corp. 874 360,000 Sibanye Gold Ltd. 732 370,000 South32 Ltd. 706 7,032,450 KenolKobil Ltd Group 690 110,000 Orascom Construction Ltd. 676


132


OTHER INFORMATION (UNAUDITED) HI NUMEN BEAR RATES FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the period ended 30 June 2017

Purchases* Cost

Holding Investments USD ’000 235,000 iPath S&P GSCI Crude Oil Total Return Index ETN 1,107 50,000 iPath S&P 500 VIX Short-Term Futures ETN 730

Sales**

Proceeds Holding Investments USD ’000 50,000 iPath S&P 500 VIX Short-Term Futures ETN 747

The CBI requires a schedule of material changes in the composition of the portfolio during the period. These are defined as aggregate purchases of a security exceeding one per cent of the total value of purchases for the period and aggregate disposals greater than one per cent of the total value of sales. At a minimum the largest 20 purchases and 20 sales must be given or all purchases and sales if less than 20. A full listing of the portfolio changes for the period is available, upon request, at no extra cost from the Administrator.

*There were 2 purchases during the period. **There was 1 sale during the period.

133


OTHER INFORMATION (UNAUDITED) Remuneration Disclosure (unaudited) Introduction The Fund is an investment company with variable capital and authorised by the Central Bank of Ireland as a self-managed undertaking for collective investment in transferable securities (“UCITS”) pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No. 352 of 2011) as amended (the “UCITS Regulations”). The Remuneration Policy The following disclosures are made in accordance with Directive 2014/91/EU (“UCITS V”). Remuneration in respect of financial year ending 30 June 2017 Total Company remuneration for the financial year (excludes VAT) Of which fixed remuneration EUR 1,359,422 Of which variable remuneration EUR 622,798 Number of beneficiaries 12 Total Remuneration EUR 1,982,220

The Company’s personnel are the board of directors and it does not have any employees. In accordance with the requirements of the Remuneration Requirements, the following persons are considered to be the “Identified Staff” of the Company, for the purposes of this Remuneration Policy:

a) any member of the Board: The Company does not intend to offer performance-related remuneration to its Identified Staff. The individuals are paid directly by separate entity and do not receive a fee directly from the Company: however the entities themselves are paid fixed fees by the Company for services. The Company pays the independent directors a fixed fee per annum. This fee is not related to the performance of the Company. No pension payments are made, A number of factors are included in determining the fee paid including the size and risk profile of the Funds under management and the current market rate for directorships of this nature. The Remuneration Policy was prepared to address the requirements of Directive 2014/91/EU (“UCITS V”) and is designed to ensure compliance by the Company with UCITS V. The policy will be reviewed annually by the Directors in light of applicable law and in conjunction with any related guidance issued by ESMA or the Central Bank which is applicable during the relevant financial reporting period. The Company also pays fees to its delegates, some of which may have staff that are “risk takers” for the purpose of UCITS V. The following groups of employees at the Company’s delegates are identified as risk takers: members of management, risk takers and employees in controlling positions (as identified in current organisational charts and job profiles and as assessed in terms of the influence on the risk profile of the relevant sub-fund(s) under management) as well as all employees whose total remuneration puts them in the same remuneration category as members of management and risk takers and whose activities have a significant effect on the risk profiles of the sub-funds of the Company.

Disclosure The Fund discloses, without prejudice to confidentiality and data protection provisions, relevant information on the Remuneration Policy in its annual report, prospectus and key investor information documentation.

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OTHER INFORMATION (UNAUDITED) SECURITIES FINANCING TRANSACTIONS For the year ended 30 June 2017 The Company did not engage in Securities Financing Transactions or Total Return Swaps (as defined in Article 3 of Regulation (EU) 2015/2365, securities financing transactions include repurchase transactions, securities or commodities lending and securities or commodities borrowing, buy-sell back transactions or sell-buy back transactions and margin lending transactions) during the year ended 30 June 2017. Accordingly, disclosures required by Article 13 of the Regulation are not applicable.

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