selectra investments sicav€¦ · annual report including audited financial statements as at 31st...

Annual report including audited financial statements as at 31st December 2017

SELECTRA INVESTMENTS SICAV Société d'Investissement à Capital Variable organised under the laws of Luxembourg

R.C.S. Luxembourg B 136 880

No subscription can be received on the basis of these financial statements. Subscriptions are only valid if made on the basis of the current issue prospectus and the key investor information document ("KIID") accompanied by the subscription form, the latest annual report including audited financial statements and the most recent semi-annual report, if published thereafter.

SELECTRA INVESTMENTS SICAV

Contents

1

Organisation ..................................................................................................................................................... 3

General information ......................................................................................................................................... 6

Report on activities of the Board of Directors............................................................................................... 8

Report of the réviseur d'entreprises agréé .................................................................................................. 11

Combined statement of net assets ............................................................................................................... 15

Combined statement of operations and other changes in net assets ...................................................... 16

SELECTRA INVESTMENTS SICAV - J. LAMARCK BIOTECH ..................................................................... 17 Statement of net assets ................................................................................................................................ 17 Statement of operations and other changes in net assets ........................................................................... 18 Statistical information .................................................................................................................................... 19 Statement of investments and other net assets ........................................................................................... 20 Industrial and geographical classification of investments ............................................................................. 21

SELECTRA INVESTMENTS SICAV - J. LAMARCK PHARMA ..................................................................... 22 Statement of net assets ................................................................................................................................ 22 Statement of operations and other changes in net assets ........................................................................... 23 Statistical information .................................................................................................................................... 24 Statement of investments and other net assets ........................................................................................... 25 Industrial and geographical classification of investments ............................................................................. 26

SELECTRA INVESTMENTS SICAV - ICAM FIRST........................................................................................ 27 Statement of net assets ................................................................................................................................ 27 Statement of operations and other changes in net assets ........................................................................... 28 Statistical information .................................................................................................................................... 29 Statement of investments and other net assets ........................................................................................... 30 Industrial and geographical classification of investments ............................................................................. 31

SELECTRA INVESTMENTS SICAV - ICAM BOND GLOBAL FIRST............................................................ 32 Statement of net assets ................................................................................................................................ 32 Statement of operations and other changes in net assets ........................................................................... 33 Statistical information .................................................................................................................................... 34 Statement of investments and other net assets ........................................................................................... 35 Industrial and geographical classification of investments ............................................................................. 36

SELECTRA INVESTMENTS SICAV - BEST OF SRI BALANCED ................................................................ 37 Statement of net assets ................................................................................................................................ 37 Statement of operations and other changes in net assets ........................................................................... 38 Statistical information .................................................................................................................................... 39 Statement of investments and other net assets ........................................................................................... 40 Industrial and geographical classification of investments ............................................................................. 41

SELECTRA INVESTMENTS SICAV - BEST OF SRI BONDS ....................................................................... 42 Statement of net assets ................................................................................................................................ 42 Statement of operations and other changes in net assets ........................................................................... 43 Statistical information .................................................................................................................................... 44 Statement of investments and other net assets ........................................................................................... 45 Industrial and geographical classification of investments ............................................................................. 46

SELECTRA INVESTMENTS SICAV - CRYSTAL BLUE ................................................................................ 47 Statement of net assets ................................................................................................................................ 47 Statement of operations and other changes in net assets ........................................................................... 48 Statistical information .................................................................................................................................... 49


Contents (continued)

2

SELECTRA INVESTMENTS SICAV - CRYSTAL ROSE ................................................................................ 50 Statement of net assets ................................................................................................................................ 50 Statement of operations and other changes in net assets ........................................................................... 51 Statistical information .................................................................................................................................... 52

Notes to the financial statements ................................................................................................................. 53

Additional information (unaudited) .............................................................................................................. 60


3

Organisation

Registered office 11, rue Aldringen

L-1118 LUXEMBOURG Board of Directors Chairman Marco CALDANA

Chief Executive Officer FARAD INTERNATIONAL S.A. 9, rue Schiller L-2519 LUXEMBOURG Directors Marco CIPOLLA

Managing Partner SELECTRA MANAGEMENT COMPANY S.A. 9, rue Schiller

L-2519 LUXEMBOURG

Francesco NARDO Relationship & Business Coordinator Manager

SELECTRA MANAGEMENT COMPANY S.A. 9, rue Schiller

L-2519 LUXEMBOURG

Raimondo MARCIALIS Founder and CEO MC ADVISORY SRL FINANCIAL ADVISORY

Andrea TASSISTO Operations Manager FARAD INTERNATIONAL S.A. 9, rue Schiller L-2519 LUXEMBOURG

Management Company SELECTRA MANAGEMENT COMPANY S.A. 9, rue Schiller L-2519 LUXEMBOURG Board of Directors of the Management Company Chairman Marco CALDANA SELECTRA MANAGEMENT COMPANY S.A. 9, rue Schiller L-2519 LUXEMBOURG Directors Marco CIPOLLA SELECTRA MANAGEMENT COMPANY S.A. 9, rue Schiller

L-2519 LUXEMBOURG Marco CLAUS SELECTRA MANAGEMENT COMPANY S.A. 9, rue Schiller L-2519 LUXEMBOURG


Organisation (continued)

4

Serge D’ORAZIO Independent Director KBL EUROPEAN PRIVATE BANKERS S.A. 43, boulevard Royal L-2955 LUXEMBOURG Marcus PETER Independent Director GSK STOCKMAN S.A. 44, avenue John F. Kennedy L-1855 LUXEMBOURG Investment Managers For the Sub-Funds SELECTRA MANAGEMENT COMPANY S.A. J. LAMARCK BIOTECH 9, rue Schiller and J. LAMARCK PHARMA L-2519 LUXEMBOURG For the Sub-Funds ICAM FIRST, FIA ASSET MANAGEMENT S.A. ICAM BOND GLOBAL FIRST, 9, rue Schiller CRYSTAL BLUE, CRYSTAL ROSE, L-2519 LUXEMBOURG BEST OF SRI BALANCED and BEST OF SRI BONDS Depositary and Paying Agent KBL EUROPEAN PRIVATE BANKERS S.A. 43, boulevard Royal L-2955 LUXEMBOURG Administrative, Domiciliary, KREDIETRUST LUXEMBOURG S.A. Registrar and Tansfer Agent 11, rue Aldringen

L-2960 LUXEMBOURG Cabinet de révision agréé DELOITTE Audit Société à responsabilité limitée 560, Rue de Neudorf L-2220 LUXEMBOURG Investment Advisors For the Sub-Funds J. LAMARCK SIM S.p.A. J. LAMARCK BIOTECH Via Anelli 28 and J. LAMARCK PHARMA L-25015 DESENZANO DEL GARDA (BS) For the Sub-Funds ICAM FIRST ICAM & PARTNERS S.A. and ICAM BOND GLOBAL FIRST Via A. Ciseri 10

CH-6601 LOCARNO


Organisation (continued)

5

General distributor SELECTRA MANAGEMENT COMPANY S.A. 9, rue Schiller L-2519 LUXEMBOURG

Paying agents in Italy BANCA SELLA HOLDING S.p.A Piazza Gaudenzio Sella, 1

I-13900 BIELLA

ALLFUNDS BANK S.A. Via Santa Margherita, 7 I-20121 MILANO

Paying agent in France CM - CIC MARKET SOLUTIONS

6, avenue de Provence F-75441 PARIS Cedex 9

Representative in Switzerland ACOLIN FUND SERVICES AG

Affolternstrasse 56 CH-8050 ZÜRICH

Paying agent in Switzerland CORNER BANCA S.A.

Via Canova 16 CH-6900 LUGANO

Intermediary INTERMONTE SIM S.p.A Corso Vittorio Emanuele, 9 IT-20122 MILAN


6

General information

SELECTRA INVESTMENTS SICAV (the "Company") is organised as a "société d'investissement à capital variable" under the Luxembourg laws. It qualifies as an Undertaking for Collective Investment in Transferable Securities under the amended Council Directive 2009/65/EC and is governed by Part I of the amended Law of 17th December 2010 (the "2010 Law") relating to Undertakings for Collective Investment. It was incorporated on 28th February 2008 for an unlimited period. Its Articles of Incorporation were published in the Mémorial C, Recueil des Sociétés on 25th March 2008. The Company has appointed SELECTRA MANAGEMENT COMPANY S.A. as Management Company of the Company, in accordance with Chapter 15 of the 2010 Law. At the date of the financial statements, the Company offers the following Sub-Funds: - SELECTRA INVESTMENTS SICAV - J. LAMARCK BIOTECH (hereafter J. LAMARCK BIOTECH)

in EUR

- SELECTRA INVESTMENTS SICAV - J. LAMARCK PHARMA (hereafter J. LAMARCK PHARMA)

in EUR

- SELECTRA INVESTMENTS SICAV - ICAM FIRST (hereafter ICAM FIRST)

in EUR

-SELECTRA INVESTMENTS SICAV - ICAM BOND GLOBAL FIRST (hereafter ICAM BOND GLOBAL FIRST) (launched on 13th January 2017)

in EUR

-SELECTRA INVESTMENT SICAV - BEST OF SRI BALANCED (hereafter BEST OF SRI BALANCED) (launched on 19th July 2017)

in EUR

-SELECTRA INVESTMENT SICAV - BEST OF SRI BONDS (hereafter BEST OF SRI BONDS) (launched on 19th July 2017)

in EUR

The Board of Directors of the Company decided:

1. To liquidate the Sub-Fund CRYSTAL BLUE with effect 13th July 2017; 2. To liquidate the Sub-Fund CRYSTAL ROSE with effect 25th August 2017.

At the date of the financial statements, below shares available are capitalisation shares, except C1:

Sub-Fund Share Class Currency

- J. LAMARCK BIOTECH Class A EUR Class B EUR Class C USD Class D EUR

- J. LAMARCK PHARMA Class A EUR Class B EUR Class D EUR

- ICAM FIRST Class B EUR

- ICAM BOND GLOBAL FIRST (launched on 13th January 2017)

Class B EUR

- BEST OF SRI BALANCED (launched on 19th July 2017)

Class C1 Class C2 Class R2

EUR EUR EUR

- BEST OF SRI BONDS (launched on 19th July 2017)

Class C2 Class R2

EUR EUR


General information (continued)

7

The Share Class A is reserved to Institutional Investors and/or High Net Worth Individuals (HNWI), where:

"Institutional Investor" means an investor which qualifies as an institutional investor within the meaning of article 174 of the 2010 Law,

High Net Worth Individual means an individual with a net worth of at least EUR 1,000,000. If investors in Share Class A no longer fulfil the conditions of eligibility, the Management Company may convert their shares, free of charge, into Share Class B. The Share Classes B and C are opened to all type of investors. The Share Class D is opened to all type of investors but buy and sell orders are allowed only via the ETFplus Market of Borsa Italiana S.p.A.. Share Classes D of the Sub-funds, J. LAMARCK BIOTECH and J. LAMARCK PHARMA are listed on ETFplus market of the Italian Stock Exchange (Borsa Italiana S.p.A). BEST OF SRI BALANCED and BEST OF SRI BONDS Share Classes C1 and C2 are reserved to Institutional Investors and Share Class R2 is open to Retail Investors. The financial year ends on 31st December of each year. The Prospectus, the Articles of Incorporation, the KIID, the most recent annual and semi-annual reports as well as the Net Asset Value per Share and the subscription and redemption prices of the Sub-Funds are available and may be obtained free of charge at the registered office of the Company. Information for investors in the Netherlands, Switzerland, Italy, and France J. LAMARCK BIOTECH and J. LAMARCK PHARMA are authorized for distribution in the Netherlands, Switzerland and Italy. ICAM FIRST and ICAM BOND GLOBAL FIRST are authorized for distribution in Italy. BEST OF SRI BALANCED and BEST OF SRI BONDS are authorised for distribution in Italy, and France. CRYSTAL BLUE is authorized for distribution in Italy, France and Switzerland until 13th July 2017.


8

Report on activities of the Board of Directors

MARKET SUMMARY OF THE YEAR 2017 2017 has been a positive year for global financial markets, with S&P 500 and Dow Jones making new historical highs and fundamental economic data improving and showing solid growth. During the first half of the year, markets have been mainly influenced by the dynamics surrounding the round of elections in the main European Countries and the rumours regarding the major Central Banks policy decision. The volatility phase hit both bond and equity markets, negatively influenced by the correction on geopolitical turmoil in the US, France, North Korea and Brazil. French Presidential elections saw moderate candidate Macron victorious over far right candidate Le Pen, diminishing concerns of a "Frexit", while other political turmoil came from Trump's impeachment tentative in the US, because of a disclosure of confidential information to Russian counterparts. From September to December, global financial markets experienced a positive momentum, with stocks performing as the best asset class, while bonds kept on decreasing due to rising yields and the perspective of higher interest rates to come. Worth to mention, the Referendum occurred during October for the independence of Catalonia, which saw the victory of the “Independentists”. Furthermore, it also took place the Communist Party Congress, which attributed to the Prime Minister of China, Xi Jinping, wider powers, while in the last part of the year we assisted to the positive effects of the Trump’s fiscal reform, voted by the US Congress in December. On the Central Banks side, FED raised interest rates three times, bringing interest rates at 1,50%, while ECB announced the extension of the Quantitative Easing program to the end of September 2018, reducing from January 2018 the amount bought by the Central Bank to EUR 30 billion. With regard to equity, 2017 proved to be one of the best years ever for both US and Japan, while Euro Stoxx 50 showed more nervousness due to the many political events occurred during the year. In addition, Emerging Markets indices registered a remarkable positive performance, especially Asian developing Countries. On the contrary, Government bonds depreciated consistently during the year, because of rising yields, while the high-yield and EM Debt segment performed better, revealing more risk appetite among investors. On the Forex, to mention the Dollar weakened against all major currencies, while Euro and Yen appreciated on a year basis. SELECTRA INVESTMENTS SICAV - J. LAMARCK BIOTECH & PHARMA 2017 was a year of hurricanes, wildfires and nuclear threat from North Korea, but the markets remained eerily calm, the year has been the least volatile in decades. Gains on the stock markets were consistent throughout the year, and so-called risk assets didn’t see the kind of fluctuations they historically do. During 2017 the worrying about increased exposure and public pressure about drug pricing policy ebbed away but continued to impact the pharmaceutical sector, especially in the generics business where increased competition and lower prices led to declines in the stock market. SELECTRA INVESTMENTS SICAV - J. LAMARCK PHARMA declined 5,17% during the year. On the other hand, the biotech sector was able to reach new highs due to innovative product launches and lower pricing pressure. SELECTRA INVESTMENTS SICAV - J. LAMARCK BIOTECH performed 16,89% in 2017. Both sectors, but especially the biotech sector, had to cope with the weaker US dollar. The dollar declined 13,86% during the year. In 2017 Assets under Management of SELECTRA INVESTMENTS SICAV - J. LAMARCK BIOTECH rose from EUR 55,83 million to EUR 63,10 million (+13%), directly related to the performance of the Sub-Fund. Assets under Management of SELECTRA INVESTMENTS SICAV - J. LAMARCK PHARMA increased from EUR 3,76 million to EUR 7,21 million (+92%), mainly on subscriptions.


Report on activities of the Board of Directors (continued)

9

We expect an increase of Mergers and Acquisitions in 2018. Fundamentally, large cap pharma faces maturing markets and needs to access new growth opportunities. The recent “Trump” tax overhaul, which lowered the tax rate for repatriating cash held overseas will spur M&A activity and stock buybacks. Stock prices and deal volumes could step up significantly, because many of the large and cash-rich companies in the industry have not even begun to participate in M&A yet. Newer technologies, like CRISPR, Car-T and other innovative immunotherapies will be their focus during 2018 giving Biotech and Pharma sector a much-needed boost. SELECTRA INVESTMENTS SICAV - BEST OF SRI BALANCED and SELECTRA INVESTMENTS SICAV - BEST OF SRI BONDS In this market environment, Best of SRI Balanced and Best of SRI Bonds were launched on the 18th July 2017 and they closed last year with a performance of +2,26% and -1,09% respectively. The difference in these results is mainly attributable to the fact that, while Best of SRI Balanced has benefitted from the positive contribution of the equity asset class, Best of SRI Bonds has been negatively affected by the poor performance of the bonds as a whole. In fact, the year 2017 has been a tricky year for bondholders, due to rising yields that depressed bonds prices, especially within the Sovereign segment. On the other hand, Best of SRI Balanced performed positively, especially during October, when it registered its best result. As to Best of SRI Bonds, the most tricky month has been November, when the Sub-Fund lost -0,63%: during this month, the portfolio manager modified the portfolio allocation inserting a convertible component, in order to benefit from the positive momentum of equity, while reducing both the corporate and EM segments. Even if EM debt has been one of the best performers during the year, the looming spectrum of rates hike by the FED, pushed the portfolio manager to adopt a more conservative approach on this asset class, which is quite sensitive to monetary policies changes related to USD. For this reason, the exposure on EM debt has been progressively reduced in the last part of the year. Anyway, performances of Best of SRI Bonds are also bounded to a more restricted universe of investable SRI securities when compared to Best of SRI Balanced Sub-Fund, which can take advantage of tactical asset allocation between fixed income and equity funds. In fact, thanks also to an exposure of 50% on the equity asset class, Best of SRI Balanced concluded the year positively: in particular, on the equity side, the portfolio manager attributed more weight to the EM SRI segment and to clean energies, which positively contributed to the overall performance, while reducing the exposure on global strategies funds. With regard to the fixed income segment, the portfolio manager progressively increased the exposure on corporate bonds, in order to reduce the risk supported by Sovereign ones in a context of rising interest rates. Only in the last month of the year, the weight on diversified bonds funds has been increased to the expense of other categories, with the intention to further reduce the risk in view of the rates hike operated by the FED. SELECTRA INVESTMENTS SICAV - ICAM FIRST and SELECTRA INVESTMENTS SICAV ICAM BOND GLOBAL FIRST The global economy in 2017 has been experiencing a relatively steady, synchronized expansion. Broadly speaking, most developed economies are in more mature (mid-to-late) stages of the business cycle, with the eurozone not as far along as the United States. Recession risks remain low globally, although less accommodative policy in several countries, including China, may constrain the upside to growth going forward. The synchronized expansion in global economic activity (along with low inflation and accommodative monetary policies) continued to provide a steady backdrop for asset markets. The solid growth environment is likely to give policymakers confidence to generally shift toward reducing monetary accommodation in 2018, which has the potential to stoke an increase in market volatility from extremely low levels.


Report on activities of the Board of Directors (continued)

10

The global expansion in 2017 has been underpinned by a turnaround in export-oriented sectors and manufacturing activity. China’s rising import demand over the past year has helped push the percentage of major countries with expanding new export orders to more than 90%. China’s cyclical path will continue to heavily influence the outlook for global trade, industrial activity, multinational profits, and commodity prices. Looking at the eurozone, it is on a cyclical upswing, enjoying a reasonably synchronized mid-cycle expansion across both its core and its periphery. Consumer sentiment and expectations are at multiyear highs, reflecting a healthy domestic environment. Currency volatility has had a visible influence on returns. The weaker dollar has flattered returns for US-based investors, while Equities can be said to have “climbed a wall of worry”, to use a well-worn stock market aphorism. There was much to worry about, with a lot of it in the geopolitical arena, not least Continental European elections, but worst fears were not met, leaving markets to benefit from a continuing recovery in the global economy. Indeed, 2017 promises to be the first year of synchronised global growth since 2010, and this time it is driven by real demand rather than a recovery in inventories. Global GDP growth forecasts have edged up since the start of the year, predominantly driven by Continental Europe and emerging economies. Company profits are rising nicely, with double-digit growth forecast for this year, and something close to that in 2018. Forecast for the year 2018 Concerning the outlook for 2018, FIA A.M. portfolio managers forecast quite positive returns for equity markets, even though lower compared to previous year. Manufacturing figures are up in about 80% of countries, a share that has steadily increased over the past year. In particular, FIA A.M. remains positive on European equities, thanks to positive macro data and lower multiples valuations when compared to US, underpinning further uptrend opportunities for European stock indexes. We also remain confident on the Emerging Markets equity side, Asiatic countries among all, boosted by a weakening USD, which could reach the 1,30 threshold vs EUR later this year. On the opposite, bond market could be negatively affected by increasing yields trend worldwide and by more “hawkish” monetary policies: in particular, US treasury will struggle with three to four interest rate hikes expected, as well as FED easing its balance sheet, which could affect extra-government bond segments worldwide too. In Europe, Core countries should be negatively affected during second semester by US Treasuries increasing yield and by ECB tapering, whereas Peripheral countries will face the uncertainty outcome of the Italian political situation after elections of the 4th March. Furthermore, the BoE Governor, M. Carney, stated that interest rates will be risen in UK too, and this will have a negative impact on UK Government bonds. The only positive perspectives within bond market for 2018 should be the Emerging Markets segment, especially in local currency, and absolute return bond instruments with de-correlated market strategies, which could perform positive despite perspective bond market conditions. In this context, the main risks come from the political side, with growing consensus for populist parties spreading, especially in Europe. Another key factor to monitor is the leverage: in fact, even if for many Developed Countries the current level is in line with history, other Countries, like China, may be vulnerable to shocks. Luxembourg, 27th March 2018 The Board of Directors Note: The information in this report represents historical data and is not an indication of future results.

11

Société à responsabilité limitée au capital de 35.000 € RCS Luxembourg B 67.895 Autorisation d’établissement 10022179

Deloitte Audit Société à responsabilité limitée

560, rue de Neudorf

L-2220 Luxembourg

BP 1173

L-1011 Luxembourg

Tel: +352 451 451

www.deloitte.lu

Report of the réviseur d'entreprises agréé To the Shareholders of SELECTRA INVESTMENTS SICAV Report on the Audit of the Financial Statements Opinion We have audited the financial statements of SELECTRA INVESTMENTS SICAV (the “Company”) and of each of its Sub-Funds, which comprise the statement of net assets and the statement of investments and other net assets as at 31st December 2017 and the statement of operations and other changes in net assets for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements give a true and fair view of the financial position of SELECTRA INVESTMENTS SICAV and of each of its Sub-Funds as at 31st December 2017 and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements. Basis for Opinion We conducted our audit in accordance with the EU Regulation N° 537/2014, the Law of 23rd July 2016 on the audit profession (Law of 23rd July 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF). Our responsibilities under those Regulation, Law and standards are further described in the “Responsibilities of the Réviseur d’Entreprises Agréé for the Audit of the Financial Statements” section of our report. We are also independent of the Company in accordance with International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the financial statements, and have fulfilled our other ethical responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of the audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Report of the réviseur d'entreprises agréé (continued)

12

Performance fee calculation

Why the matter was considered to be one of

most significance in the audit? How the matter was addressed in the

audit ?

Refer to the Note 4 to the financial statements. The Company has reported a combined performance fee expense of EUR 1,443,756.94. The fees paid by the Company for investment management services and advisor are a significant component of the Company’s expenses and, therefore, impact the Company’s performance. As at December 31, 2017, all Sub-Funds are subject to performance fees except the Sub-Funds Selectra Investments SICAV - ICAM FIRST and Selectra Investments SICAV - ICAM BOND GLOBAL FIRST. If performance fees are not calculated in accordance with the methodology prescribed in the latest prospectus, this could have a significant impact on the financial statements, on both expenses and overall performance of the Company. The performance fee are calculated on Excel worksheets designed by the Administrative Agent, based on the principles prescribed by the prospectus of the Company. These worksheets include complex calculation parameters taking into consideration the subscriptions and redemptions and the performance of the increase of the Net Asset Value per share for each Sub-Fund. Accordingly the performance fee calculation is considered to be a Key Audit Matter due to the potential significance of the balance to the financial statements as a whole, combined with the complexity of the calculation method.

We performed the following procedures: - obtaining an understanding of the administrative agent internal controls, including controls over the set-up, the calculation and recording process of performance fees; - reading the prospectus to understand the Company’s valuation method for performance fees; - we made use of our internal specialists to recalculate the performance fee as at year-end with a focus on: - the model used by management and in particular the compliance with the methodology described in the latest prospectus; - the reasonability of the most significant assumptions; - the market data input in the model; and - the mathematical accuracy of the calculation.

Other information

The Board of Directors of the Company is responsible for the other information. The other information comprises the information in the annual report including the management’s report but does not include the financial statements and our report of Réviseur d'Entreprises Agréé thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material

Report of the réviseur d'entreprises agréé (continued)

13

misstatement of this other information; we are required to report this fact. We have nothing to report in this regard. Responsibilities of the Board of Directors of the Company for the Financial Statements The Board of Directors of the Company is responsible for the preparation and fair presentation of the financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements, and for such internal control as the Board of Directors of the Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors of the Company is 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 the Board of Directors of the Company either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Responsibilities of the Réviseur d’Entreprises Agréé 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 a report of Réviseur d’Entreprises Agréé that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the EU Regulation N°537/2014, the Law of 23rd July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with the EU Regulation N° 537/2014, the Law of 23rd July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

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

Deloitte.

Report of the reviseur d'entreprises agree (continued)

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

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes public disclosure about the matter

Report on Other Legal and Regulatory Requirements

We have been appointed as Reviseur d'Entreprises Agree by the General Meeting of the Shareholders on 2nd May 2017 and the duration of our uninterrupted engagement, including previous renewals and reappointments, is 3 years.

We confirm that the prohibited non-audit services referred to in the EU Regulation N° 537/2014, on the audit profession were not provided and that we remain independent of the Company in conducting the audit.

abinet de Revision Agree

26th April 2018

14


Combined statement of net assets (in EUR) as at 31st December 2017

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

15

Assets Securities portfolio at market value 94,687,513.57 Cash at banks 4,650,092.27 Formation expenses, net 91,298.01 Receivable on issues of shares 4,989.75 Income receivable on portfolio 61,556.84 Prepaid expenses 20,325.14

Total assets 99,515,775.58

Liabilities Expenses payable 262,644.47 Other liabilities 21,419.38

Total liabilities 284,063.85

Net assets at the end of the year 99,231,711.73


Combined statement of operations and other changes in net assets (in EUR) from 1st January 2017 to 31st December 2017


16

Income Dividends, net 454,990.10 Interest on bonds and other debt securities, net 405,747.23 Interest on bank accounts 63.96

Total income 860,801.29

Expenses Advisory fees 1,444,208.34 Management fees 422,811.75 Performance fees 1,443,756.94 Depositary fees 62,700.63 Banking charges and other fees 19,695.01 Transaction fees 269,583.83 Central administration costs 302,102.36 Professional fees 68,746.26 Other administration costs 318,307.30 Subscription duty ("taxe d'abonnement") 41,590.27 Bank interest paid 10,677.25 Interest paid on bank deposits 88.73 Other expenses 216,800.10

Total expenses 4,621,068.77

Net investment loss -3,760,267.48

Net realised gain/(loss) - on securities portfolio 9,252,110.64 - on forward foreign exchange contracts 17,187.40 - on foreign exchange -145,633.48

Realised result 5,363,397.08

Net variation of the unrealised gain/(loss) - on securities portfolio 2,720,801.80 - on forward foreign exchange contracts -499.58

Result of operations 8,083,699.30

Subscriptions 55,207,311.83

Redemptions -51,707,676.46

Total changes in net assets 11,583,334.67

Total net assets at the beginning of the year 87,648,377.06

Total net assets at the end of the year 99,231,711.73

SELECTRA INVESTMENTS SICAV - J. LAMARCK BIOTECH

Statement of net assets (in EUR) as at 31st December 2017


17

Assets Securities portfolio at market value 61,317,260.04 Cash at banks 1,956,851.81 Receivable on issues of shares 4,989.75


Liabilities Expenses payable 164,408.29 Other liabilities 21,419.38



Breakdown of net assets per share class

Share class Number of

shares

Currency of

share class

NAV per share in currency of

share class

Net assets per share class

(in EUR)

A 51,693.216 EUR 341.61 17,658,735.05 B 126,433.935 EUR 319.24 40,363,291.81 C 14,560.297 USD 380.70 4,615,943.23 D 4,118.000 EUR 110.56 455,303.84

63,093,273.93


Statement of operations and other changes in net assets (in EUR) from 1st January 2017 to 31st December 2017


18

Income Dividends, net 183,431.85


Expenses Advisory fees 1,248,957.96 Management fees 198,350.08 Performance fees 1,417,706.91 Depositary fees 33,109.73 Banking charges and other fees 7,348.80 Transaction fees 37,371.73 Central administration costs 103,610.92 Professional fees 23,048.57 Other administration costs 63,144.02 Subscription duty ("taxe d'abonnement") 28,764.65 Bank interest paid 2,824.92 Other expenses 90,285.76

Total expenses 3,254,524.05

Net investment loss -3,071,092.20

Net realised gain/(loss) - on securities portfolio 8,884,449.74 - on forward foreign exchange contracts 1,696.30 - on foreign exchange -48,345.27

Realised result 5,766,708.57

Net variation of the unrealised gain/(loss) - on securities portfolio 3,329,773.97

Result of operations 9,096,482.54







Statistical information (in EUR) as at 31st December 2017


19

Total net assets Currency 31.12.2015 31.12.2016 31.12.2017

EUR 75,575,537.68 55,823,580.36 63,093,273.93

Net asset value per share Currency 31.12.2015 31.12.2016 31.12.2017

A EUR 297.12 292.25 341.61 B EUR 282.48 274.95 319.24 C USD 309.58 292.61 380.70 D EUR 99.52 96.60 110.56

Number of shares outstanding at the

beginning of the year

issued redeemed outstanding at the end of the year

A 28,178.457 38,968.229 -15,453.470 51,693.216 B 171,691.259 31,846.143 -77,103.467 126,433.935 C 302.697 14,287.600 -30.000 14,560.297 D 3,088.000 1,665.000 -635.000 4,118.000


Statement of investments and other net assets (in EUR) as at 31st December 2017


20

Currency Number / nominal value

Description Cost Market value % of total net assets

Investments in securities

Transferable securities admitted to an official stock exchange listing

Shares

DKK 46,000 Bavarian Nordic A/S 1,161,256.21 1,385,327.89 2.20 DKK 1,000 Genmab A/S 191,031.72 138,159.53 0.22

1,352,287.93 1,523,487.42 2.42

SEK 138,000 Swedish Orphan Biovitrum AB 1,774,370.53 1,576,477.32 2.50 USD 14,000 Alexion Pharmaceuticals Inc 1,528,924.95 1,394,229.09 2.21 USD 60,800 Alkermes Plc 1,402,090.15 2,771,023.86 4.39 USD 21,700 Alnylam Pharmaceuticals Inc 678,022.35 2,295,861.26 3.64 USD 22,700 Amgen Inc 2,549,425.81 3,287,279.84 5.21 USD 573,057 Array BioPharma Inc 2,306,303.75 6,108,281.30 9.68 USD 9,350 Biogen Inc 1,317,007.89 2,480,434.28 3.93 USD 28,500 BioMarin Pharmaceutical Inc 1,063,484.25 2,116,288.46 3.35 USD 26,000 Bioverativ Inc Reg S 1,246,319.41 1,167,439.73 1.85 USD 104,000 Editas Medicine Inc 1,967,913.09 2,661,381.52 4.22 USD 244,046 Exelixis Inc 1,881,410.64 6,178,122.50 9.79 USD 68,000 Gilead Sciences Inc 3,337,743.09 4,056,726.49 6.43 USD 21,050 Incyte Corp Ltd 837,022.36 1,660,195.28 2.63 USD 90,000 Intellia Therapeutics Inc 1,795,991.39 1,440,479.66 2.28 USD 55,726 Ionis Pharmaceuticals Inc 1,513,962.36 2,334,194.78 3.70 USD 100,000 Medicines Co 2,454,453.65 2,276,720.66 3.61 USD 5,550 Regeneron Pharmaceuticals Inc 176,915.36 1,737,584.21 2.75 USD 14,000 Shire Plc spons ADR repr 3 Shares 1,441,297.35 1,808,452.35 2.87 USD 50,200 Spark Therapeutics Inc 1,904,788.15 2,149,547.40 3.41 USD 250,000 Spectrum Pharmaceuticals Inc 1,511,040.03 3,945,122.21 6.25 USD 134,002 uniQure BV 1,849,703.76 2,186,034.21 3.47 USD 20,500 Vertex Pharmaceuticals Inc 1,027,734.38 2,558,296.21 4.06

33,791,554.17 56,613,695.30 89.73

Total shares 36,918,212.63 59,713,660.04 94.65

Open-ended investment funds

Investment funds (UCITS)

EUR 20,000 Selectra Inv SICAV J. Lamarck Pharma A EUR Cap* 2,000,000.00 1,603,600.00 2.54

Total investment funds (UCITS) 2,000,000.00 1,603,600.00 2.54

Total investments in securities 38,918,212.63 61,317,260.04 97.19

Cash at banks 1,956,851.81 3.10

Other net assets/(liabilities) -180,837.92 -0.29

Total 63,093,273.93 100.00

*see note 9


Industrial and geographical classification of investments as at 31st December 2017

21

Industrial classification

(in percentage of net assets)

Healthcare 94.65 %

Investment funds 2.54 %

Total 97.19 %

Geographical classification

(by domicile of the issuer) (in percentage of net assets)

United States of America 79.00 %

Ireland 4.39 %

The Netherlands 3.47 %

Jersey 2.87 %

Luxembourg 2.54 %

Sweden 2.50 %

Denmark 2.42 %

Total 97.19 %

SELECTRA INVESTMENTS SICAV - J. LAMARCK PHARMA



22

Assets Securities portfolio at market value 7,055,884.68 Cash at banks 150,322.21 Formation expenses, net 14,898.70 Income receivable on portfolio 4,739.74


Liabilities Expenses payable 17,503.79





shares

Currency of

share class


share class


(in EUR)

A 39,202.611 EUR 80.18 3,143,195.91 B 50,874.413 EUR 79.19 4,028,651.19 D 445.000 EUR 82.01 36,494.44

7,208,341.54




23



Expenses Advisory fees 66,004.93 Management fees 30,000.00 Depositary fees 5,761.50 Banking charges and other fees 2,400.15 Transaction fees 11,253.06 Central administration costs 48,206.58 Professional fees 9,283.82 Other administration costs 13,939.24 Subscription duty ("taxe d'abonnement") 3,306.63 Bank interest paid 644.24 Other expenses 22,091.23

Total expenses 212,891.38

Net investment loss -111,295.36

Net realised gain/(loss) - on securities portfolio -87,781.82 - on foreign exchange 92.78

Realised result -198,984.40

Net variation of the unrealised gain/(loss) - on securities portfolio -317,364.87

Result of operations -516,349.27









24


EUR 4,860,953.93 3,762,489.41 7,208,341.54


A EUR 95.84 84.55 80.18 B EUR 95.60 83.93 79.19 D EUR 99.06 86.92 82.01




A 36,659.264 8,529.304 -5,985.957 39,202.611 B 7,584.560 59,840.006 -16,550.153 50,874.413 D 305.000 445.000 -305.000 445.000




25





Shares

CHF 4,547 Novartis AG Reg 342,891.26 320,252.84 4.44 CHF 1,700 Roche Holding Ltd Pref 402,809.22 358,184.40 4.97

745,700.48 678,437.24 9.41

EUR 4,600 Fresenius SE & Co KGaA 324,710.30 299,322.00 4.15 EUR 10,496 Grifols SA A 242,396.95 256,364.80 3.56 EUR 7,240 Sanofi SA 587,620.23 520,194.00 7.22

1,154,727.48 1,075,880.80 14.93

JPY 6,350 Takeda Pharmaceutical Co Ltd 282,208.93 300,483.67 4.17 USD 4,000 AbbVie Inc 237,325.36 322,138.49 4.47 USD 1,850 Alexion Pharmaceuticals Inc 200,167.16 184,237.42 2.56 USD 2,000 Allergan Plc 401,048.01 272,440.35 3.78 USD 1,370 Amgen Inc 203,030.19 198,395.30 2.75 USD 14,100 AstraZeneca Plc ADR repr 1 Share 400,129.89 407,436.40 5.65 USD 950 Biogen Inc 235,458.03 252,022.73 3.50 USD 8,800 Bristol Myers Squibb Co 447,689.13 449,068.58 6.23 USD 2,400 Celgene Corp 242,705.71 208,572.26 2.89 USD 5,800 Dr Reddy's Laboratories Ltd spons ADR repr 1 Share 203,989.96 181,411.50 2.52 USD 3,350 Eli Lilly & Co 249,046.84 235,617.27 3.27 USD 4,300 Gilead Sciences Inc 292,998.61 256,528.29 3.56 USD 6,630 GlaxoSmithKline Plc ADR repr 2 Shares 236,221.57 195,833.03 2.72 USD 1,530 Johnson & Johnson 157,140.35 178,016.90 2.47 USD 7,000 Merck & Co Inc 380,936.29 328,009.33 4.55 USD 5,180 Mylan N.V. 197,054.00 182,508.89 2.53 USD 7,600 Novo Nordisk AS ADR Repr 1 Share B 294,249.61 339,669.40 4.71 USD 8,700 Pfizer Inc 266,347.07 262,409.13 3.64 USD 1,800 Shire Plc spons ADR repr 3 Shares 246,743.41 232,515.30 3.22 USD 2,500 Taro Pharm Industries Ltd A 265,377.57 217,991.42 3.02 USD 6,100 Teva Pharma Ind Ltd ADR repr 1 Share 229,339.31 96,260.98 1.33

5,386,998.07 5,001,082.97 69.37


Cash at banks 150,322.21 2.09

Other net assets/(liabilities) 2,134.65 0.03

Total 7,208,341.54 100.00



26



Healthcare 97.88 %

Total 97.88 %




Switzerland 9.41 %

United Kingdom 8.37 %

France 7.22 %

Denmark 4.71 %

Israel 4.35 %

Japan 4.17 %

Germany 4.15 %

Ireland 3.78 %

Spain 3.56 %

Jersey 3.22 %


India 2.52 %

Total 97.88 %

SELECTRA INVESTMENTS SICAV - ICAM FIRST



27

Assets Securities portfolio at market value 9,615,733.08 Cash at banks 1,604,852.95 Formation expenses, net 13,392.87 Income receivable on portfolio 25,373.59







shares

Currency of

share class


share class


(in EUR)

B 116,732.964 EUR 96.19 11,228,437.78

11,228,437.78




28



Expenses Advisory fees 109,827.54 Management fees 30,189.04 Depositary fees 9,034.76 Banking charges and other fees 4,262.23 Transaction fees 136,440.88 Central administration costs 30,834.92 Professional fees 10,315.76 Other administration costs 118,811.02 Subscription duty ("taxe d'abonnement") 5,708.28 Bank interest paid 3,053.65 Other expenses 22,344.88



Net realised gain/(loss) - on securities portfolio 137,005.44 - on foreign exchange -31,398.19




Subscriptions 399,999.92


Total changes in net assets -2,508,449.46






29


EUR 13,224,576.74 13,736,887.24 11,228,437.78


B EUR 97.71 99.60 96.19




B 137,926.626 3,974.562 -25,168.224 116,732.964




30





Shares

EUR 50,000 Altice NV A 527,344.66 437,300.00 3.89 EUR 24,000 Azimut Holding SpA 402,484.00 383,280.00 3.41 EUR 3,500 Bayer AG Reg 374,898.95 364,000.00 3.24 EUR 30,000 Brembo SpA Reg 387,909.67 380,100.00 3.38 EUR 150,000 Intesa Sanpaolo SpA 426,894.50 415,500.00 3.70 EUR 100,000 Leonardo SpA 1,061,895.09 992,000.00 8.83 EUR 4,000 Renault SA 335,771.25 335,640.00 2.99 EUR 10,000 Sanofi SA 739,577.36 718,500.00 6.40 EUR 2,000 Siemens AG Reg 230,655.43 232,300.00 2.07 EUR 1,200,000 Telecom Italia SpA 873,070.58 864,600.00 7.70 EUR 25,000 Unicredit SpA Reg 407,959.44 389,500.00 3.47 EUR 125,000 Unione di Banche Italiane SpA 501,000.96 455,750.00 4.06

6,269,461.89 5,968,470.00 53.14

USD 100,000 Platform Specialty Products Corp 974,008.18 826,081.53 7.36

Total shares 7,243,470.07 6,794,551.53 60.50

Bonds

EUR 200,000 Barclays Plc VAR Conv Sub 14/15.09.Perpetual 169,000.00 214,198.00 1.91 EUR 200,000 Casino Guichard Perrachon VAR EMTN Sub

13/31.01.Perpetual 196,825.00 204,163.00 1.82

EUR 200,000 Obrascon Huarte Lain SA 7.625% EMTN Reg s Sen 12/15.03.20

183,500.00 203,497.00 1.81

EUR 200,000 Société Générale SA VAR Reg S Sub 07.10.Perpetual 184,500.00 224,641.00 2.00

733,825.00 846,499.00 7.54

USD 200,000 Electricité de France VAR Reg S Sub 14/22.07.Perpetual 177,691.23 172,428.70 1.54 USD 200,000 Tesla Inc 5.3% Sen Reg S 17/15.08.25 164,033.03 160,577.09 1.43

341,724.26 333,005.79 2.97

Total bonds 1,075,549.26 1,179,504.79 10.51

Transferable securities dealt in on another regulated market

Bonds

USD 200,000 NetFlix Inc 4.375% Sen 17/15.11.26 162,928.67 163,396.76 1.46

Total bonds 162,928.67 163,396.76 1.46



EUR 18,000 Platinum UCITS Fds SICAV Gl Div B EUR Dist 1,076,040.00 1,031,580.00 9.19

Total investment funds (UCITS) 1,076,040.00 1,031,580.00 9.19

Tracker funds (UCITS)

EUR 15,000 SSgA SPDR ETFs Europe II Plc Tho Reut Gl Conv Bd UCITS Dist

449,250.00 446,700.00 3.98

Total tracker funds (UCITS) 449,250.00 446,700.00 3.98


Cash at banks 1,604,852.95 14.29


Total 11,228,437.78 100.00



31



Financials 25.91 %


Industrials 12.71 %

Telecommunications services 11.59 %

Healthcare 9.64 %

Cyclical consumer goods 7.80 %

Non-cyclical consumer goods 1.82 %

Utilities 1.54 %

Technologies 1.46 %

Total 85.64 %



Italy 34.55 %

France 14.75 %


Luxembourg 9.19 %

Germany 5.31 %

Ireland 3.98 %



Spain 1.81 %

Total 85.64 %

SELECTRA INVESTMENTS SICAV - ICAM BOND GLOBAL FIRST



32

Assets Securities portfolio at market value 3,170,662.16 Cash at banks 597,182.04 Formation expenses, net 4,033.30 Income receivable on portfolio 31,443.51







shares

Currency of

share class


share class


(in EUR)

B 39,254.202 EUR 96.53 3,789,275.94

3,789,275.94


Statement of operations and other changes in net assets (in EUR) from 13th January 2017 to 31st December 2017


33

Income Interest on bonds and other debt securities, net 102,386.80 Interest on bank accounts 17.24


Expenses Advisory fees 19,417.91 Management fees 29,032.26 Depositary fees 4,402.27 Banking charges and other fees 1,862.18 Transaction fees 7,359.78 Central administration costs 20,029.11 Professional fees 7,959.92 Other administration costs 26,278.90 Subscription duty ("taxe d'abonnement") 1,989.84 Bank interest paid 2,957.70 Other expenses 5,097.96



Net realised gain/(loss) - on securities portfolio -16,132.05 - on foreign exchange -35,724.62





Redemptions -348,015.00


Total net assets at the beginning of the year -





34

Total net assets Currency 31.12.2017

EUR 3,789,275.94

Net asset value per share Currency 31.12.2017

B EUR 96.53




B - 42,754.202 -3,500.000 39,254.202




35





Bonds

EUR 100,000 Casino Guichard Perrachon VAR EMTN Sub 13/31.01.Perpetual

98,725.00 102,081.50 2.70

EUR 200,000 Intesa Sanpaolo SpA VAR EMTN Reg S Sub 16/19.07.Perpetual

196,700.00 221,726.00 5.85

EUR 300,000 Vallourec Usines Tubes 2.25% 14/30.09.24 244,597.50 249,849.00 6.59

540,022.50 573,656.50 15.14

RUB 10,000,000 Veon Holdings BV 9% Reg S Sen 13/13.02.18 160,264.75 144,821.90 3.82 TRY 450,000 EIB 8.75% EMTN Sen 14/18.09.21 98,922.67 90,705.41 2.39 TRY 450,000 EIB 9.25% EMTN Reg S Sen 14/03.10.24 99,042.76 92,121.87 2.43

197,965.43 182,827.28 4.82

USD 200,000 Barclays Plc 4.375% Sen Sub 14/11.09.24 172,950.00 170,910.60 4.51 USD 300,000 ConocoPhillips Co 2.4% Sen 12/15.12.22 252,398.20 247,053.76 6.52 USD 200,000 Deutsche Bank AG FRN Ser A Sen 15/20.08.20 170,292.78 168,578.92 4.45 USD 100,000 Electricité de France VAR Reg S Sub 14/22.07.Perpetual 88,835.09 86,214.34 2.28 USD 100,000 Exxon Mobil Corp 2.397% Sen 15/06.03.22 85,681.46 83,268.52 2.20 USD 200,000 Petrobras Global Finance BV 4.375% Sen 13/20.05.23 172,966.43 165,336.22 4.36 USD 250,000 Viacom Inc 3.25% Sen 13/15.03.23 209,973.90 203,137.36 5.36

1,153,097.86 1,124,499.72 29.68

Total bonds 2,051,350.54 2,025,805.40 53.46

Transferable securities dealt in on another regulated market

Bonds

USD 200,000 NetFlix Inc 4.375% Sen 17/15.11.26 164,891.19 163,396.76 4.31

Total bonds 164,891.19 163,396.76 4.31


Tracker funds (UCITS)

EUR 8,000 Lyxor Index Fd BTP Daily Short UCITS ETF C EUR Cap 391,080.00 368,280.00 9.72 EUR 6,500 Lyxor Index Fd Bund Daily Short UCITS ETF C EUR Cap 324,708.98 315,380.00 8.32 EUR 10,000 SSgA SPDR ETFs Europe II Plc Tho Reut Gl Conv Bd UCITS

Dist 300,500.00 297,800.00 7.86

Total tracker funds (UCITS) 1,016,288.98 981,460.00 25.90


Cash at banks 597,182.04 15.76


Total 3,789,275.94 100.00



36




Financials 14.81 %

Energy 13.08 %

Raw materials 6.59 %

Cyclical consumer goods 5.36 %

International institutions 4.82 %

Technologies 4.31 %

Telecommunications services 3.82 %

Non-cyclical consumer goods 2.70 %

Utilities 2.28 %

Total 83.67 %



Luxembourg 22.86 %


France 11.57 %


Ireland 7.86 %

Italy 5.85 %


Germany 4.45 %

Total 83.67 %

SELECTRA INVESTMENTS SICAV - BEST OF SRI BALANCED



37

Assets Securities portfolio at market value 9,869,607.39 Cash at banks 258,136.17 Formation expenses, net 29,486.57 Prepaid expenses 10,162.57







shares

Currency of

share class


share class


(in EUR)

C1 60,000.000 EUR 100.44 6,026,119.99 C2 14,256.550 EUR 101.57 1,448,100.88 R2 26,177.575 EUR 102.25 2,676,773.46

10,150,994.33


Statement of operations and other changes in net assets (in EUR) from 19th July 2017 to 31st December 2017


38



Expenses Management fees 28,432.25 Performance fees 24,681.39 Depositary fees 2,219.49 Banking charges and other fees 80.09 Transaction fees 10,135.43 Central administration costs 17,474.04 Professional fees 4,842.51 Other administration costs 17,776.14 Subscription duty ("taxe d'abonnement") 186.16 Bank interest paid 588.80 Other expenses 4,178.34



Net realised gain/(loss) - on securities portfolio 62,040.30 - on foreign exchange 21.91


Net variation of the unrealised gain/(loss) - on securities portfolio 174,050.85

Result of operations 131,092.88









39


EUR 10,150,994.33


C1 EUR 100.44 C2 EUR 101.57 R2 EUR 102.25




C1 - 60,000.000 - 60,000.000 C2 - 14,256.550 - 14,256.550 R2 - 44,582.575 -18,405.000 26,177.575




40






EUR 2,400 Allianz Gl Investors Fd EUR Cred SRI R Dist 255,353.03 251,160.00 2.47 EUR 7,780 Amundi Cred EUR ISR P Cap 989,777.18 991,094.20 9.76 EUR 335 BFT Convertibles ISR I Cap 507,335.19 506,426.20 4.99 EUR 4,817 Candriam SRI Bond EUR Corporate C Cap 499,743.77 499,282.05 4.92 EUR 929 East Capital Emerging Asia B Dist 249,569.67 259,119.56 2.55 EUR 41,500 Luxembourg Selection Fd Active Solar A EUR Cap 919,666.73 1,001,810.00 9.87 EUR 1,005 Multipartner Scv RobecoSAM Smart Materi Fd B Cap 253,433.84 263,109.00 2.59 EUR 19,900 Multipartner SICAV RobecoSAM Smart Energy Fd B Cap 508,880.27 508,644.00 5.01 EUR 190 NN (L) EUR Green Bond I Cap 996,641.23 987,918.30 9.73 EUR 2,100 Nordea 1 SICAV Emerging Stars Equity Fd BI EUR Cap 253,699.05 260,652.00 2.57 EUR 4,700 Parvest SMaRT Food Classic Cap 506,286.00 506,237.00 4.99 EUR 3,330 Parvest Sustainable Bond EUR Corp Classic Cap 497,269.23 497,035.80 4.90 EUR 4,490 Parvest Sustainable Bond World Corp Classic H EUR Cap 500,426.77 500,994.20 4.94 EUR 1,313 Sarasin Investmentfonds SICAV Sustainable Water P EUR Cap 252,345.92 253,225.18 2.49 EUR 2,000 Sycomore Selection Cred I Cap 257,320.92 257,600.00 2.54 EUR 2,900 UBS (Lux) Equity Fd Gl Sus Innovators Units P Cap 254,475.00 254,910.00 2.51 EUR 1,130 Vontobel Fd Future Resources I Cap 252,370.60 263,979.30 2.60 EUR 2,000 Vontobel Fd mtx Sustainable Asian Leaders (Ex-Japan) HI Cap 742,621.58 783,420.00 7.72 EUR 6,750 Vontobel Fd mtx Sustainable Em Mks Leaders I Cap 746,264.80 775,305.00 7.64

9,443,480.78 9,621,921.79 94.79

USD 2,675 Candriam SRI Bond Em Mks C Cap 252,075.76 247,685.60 2.44


Cash at banks 258,136.17 2.54


Total 10,150,994.33 100.00



41




Total 97.23 %



Luxembourg 79.94 %

France 17.29 %

Total 97.23 %

SELECTRA INVESTMENTS SICAV - BEST OF SRI BONDS



42

Assets Securities portfolio at market value 3,658,366.22 Cash at banks 70,644.83 Formation expenses, net 29,486.57 Prepaid expenses 10,162.57







shares

Currency of

share class


share class


(in EUR)

C2 14,125.029 EUR 99.08 1,399,482.32 R2 23,882.000 EUR 98.90 2,361,905.89

3,761,388.21


Statement of operations and other changes in net assets (in EUR) from 19th July 2017 to 31st December 2017


43



Expenses Management fees 22,230.37 Performance fees 1,368.64 Depositary fees 1,936.99 Banking charges and other fees 31.57 Transaction fees 6,966.69 Central administration costs 16,959.55 Professional fees 4,131.02 Other administration costs 3,766.54 Subscription duty ("taxe d'abonnement") 188.60 Bank interest paid 185.36 Other expenses 4,232.71



Net realised gain/(loss) - on securities portfolio 10,604.23 - on foreign exchange -234.11


Net variation of the unrealised gain/(loss) - on securities portfolio 3,784.84










44


EUR 3,761,388.21


C2 EUR 99.08 R2 EUR 98.90




C2 - 14,125.029 - 14,125.029 R2 - 42,728.000 -18,846.000 23,882.000




45






EUR 930 Allianz Gl Investors Fd EUR Cred SRI R Dist 99,085.73 97,324.50 2.59 EUR 900 Allianz Gl Investors Fd Green Bond R EUR Dist 92,746.56 91,872.00 2.44 EUR 2,876 Amundi Cred EUR ISR P Cap 362,246.28 366,373.64 9.74 EUR 124 BFT Convertibles ISR I Cap 188,167.37 187,453.28 4.98 EUR 3,630 Candriam SRI Bond EUR Corporate C Cap 375,201.13 376,249.50 10.00 EUR 4,989 LO Fds EUR Resp Corp Fundamental P Cap 94,139.61 94,161.89 2.50 EUR 1,722 MAM Sustainable Inv 2016 C EUR Cap 92,127.00 92,574.72 2.46 EUR 509 Mirova Fds EUR Green & Sustainable Corp Bd I/A EUR Cap 94,281.32 94,689.27 2.52 EUR 1,000 Natixis Intl Fds (Lux) I Loomis Sayles Sus H-I/A (EUR) Cap 105,160.00 104,840.00 2.79 EUR 69.894 NN (L) EUR Green Bond I Cap 362,736.66 363,418.75 9.66 EUR 1,461 NN (L) EUR Sustainable Cred (incl Fin) P Dist 373,273.70 374,220.54 9.95 EUR 1,283 Parvest Sustainable Bond EUR Classic Cap 188,843.32 188,857.60 5.02 EUR 2,473 Parvest Sustainable Bond EUR Corp Classic Cap 368,689.18 369,119.98 9.81 EUR 2,631 Parvest Sustainable Bond World Corp Classic H EUR Cap 292,356.64 293,566.98 7.81 EUR 1,375 Robeco Capital Gh Fds EUR Sus Cred IH EUR Cap 188,684.60 188,760.00 5.02 EUR 1,480 Sycomore Selection Cred I Cap 190,367.47 190,624.00 5.07

3,468,106.57 3,474,106.65 92.36

USD 1,990 Candriam SRI Bond Em Mks C Cap 186,474.81 184,259.57 4.90


Cash at banks 70,644.83 1.88


Total 3,761,388.21 100.00



46




Total 97.26 %



Luxembourg 75.01 %

France 22.25 %

Total 97.26 %

SELECTRA INVESTMENTS SICAV - CRYSTAL BLUE



47

Assets Cash at banks 4,991.15

Total assets 4,991.15



Net assets at the end of the year 0.00


Statement of operations and other changes in net assets (in EUR) from 1st January 2017 to 13th July 2017


48

Income Dividends, net 5,729.36 Interest on bonds and other debt securities, net 39,495.80


Expenses Management fees 32,286.31 Depositary fees 2,690.34 Banking charges and other fees 1,559.37 Transaction fees 21,494.44 Central administration costs 28,643.25 Professional fees 4,172.29 Other administration costs 22,882.06 Subscription duty ("taxe d'abonnement") 607.85 Bank interest paid 166.49 Other expenses 29,922.55



Net realised gain/(loss) - on securities portfolio 16,819.63 - on forward foreign exchange contracts 3,742.80 - on foreign exchange -7,279.43


Net variation of the unrealised gain/(loss) - on securities portfolio 4,528.72 - on forward foreign exchange contracts -166.53






Total net assets at the end of the year 0.00




49


EUR 8,177,669.39 6,379,470.79 -


A EUR 96.87 94.79 - B EUR 96.38 93.65 - D EUR 100.13 97.28 -




A 31,600.000 - -31,600.000 - B 34,623.884 320.000 -34,943.884 - D 1,455.000 7.000 -1,462.000 -

SELECTRA INVESTMENTS SICAV - CRYSTAL ROSE

Statement of net assets assets (in EUR) as at 31st December 2017


50

Assets Cash at banks 7,111.11

Total assets 7,111.11



Net assets at the end of the year 0.00


Statement of operations and other changes in net assets (in EUR) from 1st January 2017 to 25th August 2017


51



Expenses Management fees 52,291.44 Depositary fees 3,545.55 Banking charges and other fees 2,150.62 Transaction fees 38,561.82 Central administration costs 36,343.99 Professional fees 4,992.37 Other administration costs 51,709.38 Subscription duty ("taxe d'abonnement") 838.26 Bank interest paid 256.09 Interest paid on bank deposits 88.73 Other expenses 38,646.67



Net realised gain/(loss) - on securities portfolio 245,105.17 - on forward foreign exchange contracts 11,748.30 - on foreign exchange -22,766.55

Realised result 82,044.99

Net variation of the unrealised gain/(loss) - on securities portfolio -59,659.73 - on forward foreign exchange contracts -333.05

Result of operations 22,052.21





Total net assets at the end of the year 0.00




52


EUR 8,582,037.84 7,945,949.26 -


A EUR 96.38 92.12 - B EUR 95.83 90.86 - D EUR 100.26 95.01 -




A 37,908.405 402.896 -38,311.301 - B 48,913.061 1,140.000 -50,053.061 - D 103.000 - -103.000 -


Notes to the financial statements as at 31st December 2017

53

Note 1 - Significant accounting policies a) Presentation of the financial statements The financial statements of the Company are prepared in accordance with Luxembourg legal and regulatory requirements concerning undertakings for collective investment and with generally accepted accounting principles in Luxembourg. b) Valuation of assets

1) The value of cash and deposits, drafts and bills payable on demand, receivables, expenditures paid in advance, dividends and interests announced or due but not yet received, is constituted by the nominal value of these assets, unless it appears unlikely that this value can be realized. In this case the value is determined by subtracting an amount deemed to be appropriate by the Management Company to reflect the real value of these assets.

2) The valuation of any transferable securities or money market instruments or derivatives traded

or listed on a stock exchange is made on the basis of the closing price as at the Valuation Day unless such price is not representative.

3) The value of any transferable securities or money market instruments traded on another

regulated market is determined on the basis of the closing price as at the Valuation Day.

4) In as much as transferable securities and money market instruments on a dedicated Valuation Day are neither officially traded nor listed on an exchange or regulated market, or in the case where, for securities and money market instruments officially listed or traded on a stock exchange or another regulated market, the price as determined pursuant to paragraphs 2 and 3 here above is not representative of the true value of such transferable securities or money market instruments, the valuation is made on the basis of their likely value of realisation, estimated with due care and good faith by the Management Company.

5) Shares/units of UCITS and other UCI’s are valued on the basis of their last available Net Asset

Value at the Valuation Day. c) Acquisition cost of securities in the portfolio The acquisition cost of the securities held by each Sub-Fund that are denominated in currencies other than the reference currency of the Sub-Fund is converted into this currency at the exchange rate prevailing on the date of purchase. d) Net realised gain/(loss) on securities portfolio The realised gains and losses on securities portfolio are calculated on the basis of the average acquisition cost.The realised gains and losses on securities portfolio are recorded net in the statement of operations and other changes in net assets. e) Investment portfolio income Dividend income is recorded at the ex-date, net of any withholding tax. Interest income is accrued on a prorata temporis basis, net of any withholding tax.


Notes to the financial statements (continued) as at 31st December 2017

54

f) Valuation of forward foreign exchange contract Forward foreign exchange contracts are valued at forward market rates for the remaining period from valuation date to the maturity of the contracts. Net unrealised gains or losses are recorded in the statement of net assets. Net variation of the unrealised gains or losses and net realised gains or losses are recorded in the statement of operations and other changes in net assets. g) Formation expenses Formation expenses are amortised on a straight line basis over a period of 5 years. If the launch of a Sub-Fund occurs after the launch date of the Company, the costs of formation expenses in relation to the launch of the new Sub-Fund is charged to such Sub-Fund alone and may be amortised over a maximum of 5 years with effect from the Sub-Fund’s launch date. h) Conversion of foreign currencies Cash at banks, other net assets and liabilities and the market value of the securities in portfolio expressed in currencies other than the reference currency of the Sub-Fund are converted into this currency at the exchange rate prevailing on the date of the report. Income and expenses expressed in currencies other than the reference currency of the Sub-Fund are converted into this currency at the exchange rate prevailing on the date of the transaction. Net realised gains or losses on foreign exchange are recorded in the statement of operations and other changes in net assets. i) Combined financial statements The combined financial statements of the Company are expressed in EUR and are equal to the sum of the corresponding items in the financial statements of each Sub-Fund. j) Transaction fees Transaction costs disclosed under the item "Transaction fees" in the expenses of the statement of operations and other changes in net assets are mainly composed of broker fees incurred by the Company of fees relating to liquidation of transactions paid to the depositary agent as well as of transaction fees on financial instruments and derivatives and of fees relating to term deposits. Note 2 - Management Company, Advisory, Management and Distribution fees SELECTRA MANAGEMENT COMPANY S.A. has been appointed as Management Company for the Company. It is in charge of the management and administration of the Company. Management Company fee

The Management Company is entitled to a management company fee which is payable monthly and based on the total net assets of the Sub-Fund managed at the relevant Valuation Day, in accordance with the annual rates below:

Sub-Funds Rates % p.a. - J. LAMARCK BIOTECH - up to 25 million EUR 0.37 - from 25 million EUR to 50 million EUR 0.34 - from 50 million EUR to 100 million EUR 0.32 - above 100 million EUR 0.27

- J. LAMARCK PHARMA - up to 50 million EUR 0.275 - from 50 million EUR to 100 million EUR 0.25 - above 100 million EUR 0.225 with an annual minimum of EUR 30.000



55

Sub-Funds Rates % p.a. - ICAM FIRST - up to 50 million EUR 0.07 - from 50 million EUR to 100 million EUR 0.06 - above 100 million EUR 0.05 with an annual minimum of EUR 10.000

- ICAM BOND GLOBAL FIRST

- up to 50 million EUR - from 50 million EUR to 100 million EUR - above 100 million EUR with an annual minimum of EUR 10.000

0.07 0.06 0.05

- BEST OF SRI BALANCED with an annual minimum of EUR 20.000 0.08

- BEST OF SRI BONDS with an annual minimum of EUR 20.000 0.08

- CRYSTAL BLUE (liquidated on 13th July 2017)

- up to 50 million EUR - from 50 million EUR to 100 million EUR - from 100 million EUR to 200 million EUR - above 200 million EUR with an annual minimum of EUR 10.000

0.09 0.08 0.07 0.06

- CRYSTAL ROSE (liquidated on 25th August 2017)

- up to 50 million EUR - from 50 million EUR to 100 million EUR - from 100 million EUR to 200 million EUR - above 200 million EUR with an annual minimum of EUR 10.000

0.09 0.08 0.07 0.06

The Management Company fee is disclosed in the statement of operations and other changes under in the item “Management fees”. Management fees

Under an Investment Management Agreement, the Management Company delegated the day-to-day investment management to the Investment Managers. Such Management fee is payable monthly and based on the total net assets of the Sub-Fund at the relevant Valuation Day, in accordance with the annual rates below:

Sub-Funds Share Classes Maximum rates

(% p.a.)

Effective rates at the date of the report

(% p.a.)

- ICAM FIRST

Share Class B up to 0.14 with an

annual minimum of EUR 20.000

- up to 50 million EUR: 0.14 - from 50 to 100 million EUR 0.12 - above 100 million EUR: 0.10


Share Class B up to 0.14 with an

annual minimum of EUR 20.000

- up to 50 million EUR: 0.14 - from 50 to 100 million EUR: 0.12 - above 100 million EUR: 0.10

- BEST OF SRI BALANCED Share Class C1 Share Class C2 Share Class R2

up to 0.65 up to 0.65 up to 1.15

0.65 0.65 1.15

- BEST OF SRI BONDS Share Class C2 Share Class R2

up to 0.60 up to 0.90

0.60 0.90

- CRYSTAL BLUE (liquidated on 13th July 2017)

Share Class A Share Class B Share Class D

up to 0.60 up to 1.30 up to 1.30

0.60 1.30 1.30

- CRYSTAL ROSE (liquidated on 25th August 2017)

Share Class A Share Class B Share Class D

up to 0.70 up to 1.50 up to 1.50

0.70 1.50 1.50

No Management fee is charged for the Sub-Funds J. LAMARCK BIOTECH and J. LAMARCK PHARMA.



56

Advisory fees

Under an Investment Advisory Agreement, the Management Company has commissioned the Investment Advisors to advise it in the choice of its investments and the focus of its investment policy for the Sub-Funds. Such Advisory fee is payable monthly and based on the total net assets of the Sub-Fund at the relevant Valuation Day, in accordance with the annual rates below:

Sub-Funds Share Class Maximum rates

(% p.a.)

Effective rates at the date of the report

(% p.a.)

- J. LAMARCK BIOTECH Share Class A up to 1.30 1.30

Share Class B up to 2.50 2.50

Share Class C up to 2.50 2.50

Share Class D up to 2.50 2.50

- J. LAMARCK PHARMA Share Class A up to 0.80 0.80

Share Class B Share Class D

up to 1.30 up to 1.30

1.30 1.30

- ICAM FIRST Share Class B up to 0.85 0.85

- ICAM BOND GLOBAL FIRST Share Class B up to 0.50 0.50

The item “Advisory Fees” is disclosed in the statement of operations and other changes. Distribution fee

The item “Distribution Fees” is disclosed in the statement of operations and other changes in the item “Other administration costs” and are expressed as a percentage of the total net assets of the Sub-Fund and are calculated and payable at the end of each month to the Management Company, in accordance with the annual rates below:

Sub-Funds Share Class Maximum rate (% p.a.)

Effective rate (% p.a.)

- ICAM FIRST

Share Class A Share Class B

up to 0.30 up to 0.85

0.30 0.85


Share Class A Share Class B

up to 0.20 up to 0.50

0.20 0.50

No Distribution fee is charged for the Sub-Funds J. LAMARCK BIOTECH, J. LAMARCK PHARMA, CRYSTAL BLUE, CRYSTAL ROSE, BEST OF SRI BALANCED and BEST OF SRI BONDS. Note 3 - Management fees of the target funds The aggregate maximum annual management fees that will be charged by the underlying UCITS in which the Sub-Fund invests is 3% of their aggregate net asset values per annum.



57

Note 4 - Performance fee In addition to the Management fee or the Advisory fee, the Investment Manager and the Investment Advisor are entitled to receive a performance fee. For the Sub-Fund J. LAMARCK BIOTECH

A performance fee of 20% of the increase in the Net Asset Value per Share of the Sub-Fund, taking subscriptions and redemptions into account, is accrued at each Net Asset Value per Share and payable monthly.

For the Sub-Fund J. LAMARCK PHARMA For the Sub-Fund CRYSTAL BLUE (liquidated on 13th July 2017) For the Sub-Fund CRYSTAL ROSE (liquidated on 25th August 2017).

A Performance Fee of 10% of the increase in the Net Asset Value per Share of the Sub-Fund taking subscriptions and redemptions into account, is accrued at each Net Asset Value per Share and payable monthly.

For the Sub-Fund BEST OF SRI BALANCED For the Sub-Fund BEST OF SRI BONDS A Performance Fee of 15% of the increase in the Net Asset Value per Share of the Sub-Fund taking subscriptions and redemptions into account, is accrued at each Net Asset Value per Share and payable monthly.

For the Sub-Fund ICAM FIRST For the Sub-Fund ICAM BOND GLOBAL FIRST No performance fee is applicable.

At the date of the financial statements, the performance fee was recorded for the following Sub-Funds and amounted to :

J. LAMARCK BIOTECH EUR 1,417,706.91

BEST OF SRI BALANCED EUR 24,681.39

BEST OF SRI BONDS EUR 1,368.64

Note 5 - Subscription, redemption and conversion fees After the initial subscription period, Shares of the Company are issued at a price corresponding to the Net Asset Value per Share of the relevant Sub-Fund plus a subscription fee of maximum 3% in favour of the General Distributor, where applicable. No subscription fee was charged for the Sub-Funds CRYSTAL BLUE and CRYSTAL ROSE. There are no redemption fees except for the Share Classes A1, A2, B1, B2 for the Sub-Funds BEST OF SRI BALANCED and BEST OF SRI BONDS which are of up to 1% during the first twelve months after the related subscription. A conversion fee of 1% of the Net Asset Value of the initial Sub-Fund will be levied in favour of such initial Sub-Fund.



58

Note 6 - Central administration costs and Depositary fees Central administration costs and Depositary fees are based on variable annual rates as defined by their respective contracts. Note 7 - Subscription duty ("Taxe d’abonnement") The Company is governed by Luxembourg law. Pursuant to the legislation and regulations in force, the Company is subject to an annual "taxe d’abonnement" of 0.05% which is payable quarterly and calculated on the basis of the net assets of each Sub-Fund on the last day of each quarter. Pursuant to Article 174 (2) of the 2010 Law, this rate is reduced to 0.01% for Share classes reserved to institutional investors. Pursuant to Article 175 (a) of the 2010 Law, the net assets invested in undertakings for collective investment already subject to the "taxe d’abonnement" are exempt from this tax. Note 8 - Statement of changes in investments The statement of changes in investments for the reporting period is available free of charge at the registered office of the Company as well as at the Italian paying agents, the French paying agent, the Swiss representative, the Swiss paying agent and the Dutch paying agent. Note 9 - Cross investments As at 31st December 2017, the Sub-Fund J.LAMARCK BIOTECH invested in the Sub-Fund J.LAMARCK PHARMA as described below:

Sub-Fund Description Currency Quantity Market value % of total net assets

J.LAMARCK BIOTECH J.LAMARCK PHARMA - Class A

EUR 20,000 1,603,600.00 2.54

The combined statement of net assets has not been adjusted to remove the impact of the above.

The commission on subscriptions and redemptions detailed in note 5 and the management fees detailed in note 2 are not applied to these assets. Note 10 - Forward foreign exchange contracts As at 31st December 2017, the Sub-Funds of the Company are not committed in any forward foreign exchange contracts.



59

Note 11 - Events A new Sub-Fund named ICAM BOND GLOBAL FIRST has been offered to investors for the period from 1st December 2016 to 13th January 2017, with a first NAV on 13th January 2017. The Sub-Fund invests in a diversified portfolio of bonds or debt instruments across markets in the OECD countries which can be issued by governments, agencies, supra-nationals and listed or unlisted companies including high-yield or non-investment grade securities with a minimum Standard & Poor’s credit rating B (rating lower than B shall be out of scope). Two new Sub-Funds named BEST OF SRI BALANCED and BEST OF SRI BONDS have been offered to investors with an initial subscription period from 18th April 2017 to 18th July 2017, with a first NAV on 19th July 2017. The main objective of BEST OF SRI BALANCED Sub-Fund is to generate a capital appreciation over the medium to long term by investing its assets only in shares/units of UCITS and other UCIs that take in consideration environmental, social and governance criteria (ESG) within their investment policy or portfolio management processes. The main objective of the BEST OF SRI BONDS Sub-Fund is to maintain the real value of the assets over the medium term by investing its assets only in shares/units of UCITS and other UCIs that take in consideration environmental, social and governance criteria (ESG) within their investment policy or portfolio management processes. The Board of Directors of the Company has decided to liquidate the Sub-Fund CRYSTAL BLUE with effect date on 13th July 2017.The Board of Directors of the Company has decided to liquidate the Sub-Fund CRYSTAL ROSE with effect date on 25th August 2017.


Additional information (unaudited) as at 31st December 2017

60

1 - Risk management According to the Risk Management Process, the Board of Directors of the Company decided to adopt the VaR approach as a method of determining the global exposure for all the Sub-Funds. The following methodology and limits have been defined for the Sub-Funds:

Sub-Fund Global Exposure method Limit Reference Portfolio

J. LAMARCK BIOTECH Relative VaR 200% Nasdaq Biotech Index

J. LAMARCK PHARMA Relative VaR 200% MSCI World Health Care Index

ICAM FIRST Absolute VaR (99%, 20 business days) 10% N.A.

ICAM BOND GLOBAL FIRST Absolute VaR (99%, 20 business days) 4% N.A.

BEST OF SRI BALANCED Absolute VaR (99%, 20 business days) 10% N.A.

BEST OF SRI BONDS Absolute VaR (99%, 20 business days) 6% N.A.

CRYSTAL BLUE Absolute VaR (99%, 20 business days) 6% N.A.

CRYSTAL ROSE Absolute VaR (99%, 20 business days) 10% N.A.

The global exposure monitoring is performed using Patronas Risk Service provided by Patronas Financial Systems GmbH. It is based on the Quantax® Software Product, a risk and return Management system developed and maintained by Swisscom IT Services AG. The methodology used for calculating the global risk is based on the internal model approach meaning that the risk is measured using Value at Risk ("VaR"). The Quantax internal model is a single factor model whereby the relevant parameters are estimated according to the RiskMetrics® Methodology. The Model covers the main types of market risk such as equity risk, interest rate risk, currency risk and commodity risk. In addition, it aims to capture credit risk and implied volatility risk. The VaR calculation used is a Monte Carlo full revaluation methodology accompanied with a daily Stress Testing and Back Testing programs. The following VaR values and leverage level have been calculated during 2017:

Sub-Fund Lowest Highest Average Leverage

(average sum of notional)

J. LAMARCK BIOTECH 91.07% 171.30% 127.20% 0.00%

J. LAMARCK PHARMA 70.91% 139.78% 103.54% 0.00%

ICAM FIRST 1.74% 11.46% 5.03% 10.45%

ICAM BOND GLOBAL FIRST 0.00% 3.50% 2.17% 15.23%

BEST OF SRI BALANCED 1.16% 3.61% 2.63% 0.00%

BEST OF SRI BONDS 0.39% 5.95% 1.07% 0.00%

CRYSTAL BLUE 0.00% 3.16% 1.97% 14.83%

CRYSTAL ROSE 0.00% 7.74% 4.55% 15.02%


Additional information (unaudited) continued as at 31st December 2017

61

2 - Remuneration The remuneration policy of SELECTRA MANAGEMENT COMPANY S.A. has been updated in April 2016 and approved by the Board of SELECTRA MANAGEMENT COMPANY S.A. in July 2016 for the new rules regarding the implementation of UCITS V. The variable remuneration that has been given to some Employees of SELECTRA MANAGEMENT COMPANY S.A. was part of :

- Bonus linked to individual performance on internal organisational project

- The variable remuneration does not concern Senior Management or positions considered by the remuneration policy as «risky function»: (Risk Manager or Investment Managers).

For the year ended 31st December 2017 (unaudited), the total remuneration paid by the Management Company to its staff amounted to EUR 675,859.87, thereof EUR 17,622.30 of variable remuneration. As at 31st December 2017, the number of the employees of the Management Company was 14. 3 - Information concerning the transparency of securities financing transactions and of reuse of cash collateral (regulation EU 2015/2365, hereafter "SFTR") During the reporting period, the Company did not engage in transactions which are subject to the publication requirements of SFTR. Accordingly, no Information concerning the transparency of securities financing transactions and of reuse of cash collateral should be reported.

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