unaudited semi-annual report for the financial period … · 2019-08-28 · se – 169 79 solna...

PCM GLOBAL FUNDS ICAV

(An Irish collective asset-management vehicle constituted as an open-ended umbrella fund with segregated

liability between Sub-Funds registered in Ireland on 7 July 2015 under the Irish Collective Asset-management Vehicles Act 2015 (“ICAV”) and authorised by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) pursuant to 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 2019 (together the “UCITS Regulations”). Registration Number C142346)

UNAUDITED SEMI-ANNUAL REPORT

FOR THE FINANCIAL PERIOD ENDED 30 June 2019

PCM Global Funds ICAV Unaudited Semi-Annual Report

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CONTENTS

General Information 3

Investment Manager’s Report 4 - 5

Financial Statements

Statement of Financial Position 6

Statement of Comprehensive Income 7

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares 8

Statement of Cash Flows 9

Notes to the Financial Statements 10 - 27

Schedule of Investments 28 - 31

Supplemental information

- Financial Information and Material Portfolio Changes 32 - 37


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GENERAL INFORMATION

BOARD OF DIRECTORS INVESTMENT MANAGER AND DISTRIBUTOR

Kathleen Jacobs (Chairman, U.S. Resident)^ Polaris Capital Management, LLC

Bernard R. Horn Jr. (U.S. Resident)^ 121 High Street

Jason Crawshaw (U.S. Resident)^ Boston

Neil Clifford (Irish Resident)^ Massachusetts 02110-2475

Frank Kenny (Irish Resident)* United States

REGISTERED OFFICE DEPOSITARY 4th Floor RBC Investor Services Bank, S.A., Dublin Branch One George’s Quay Plaza 4th Floor George’s Quay One George’s Quay Plaza

Dublin 2 George’s Quay

Ireland Dublin 2

Ireland

ADMINISTRATOR IRISH LEGAL ADVISERS

RBC Investor Services Ireland Limited Dechert

4th Floor 3 George's Dock

One George’s Quay Plaza IFSC

George’s Quay Dublin 1 Dublin 2 Ireland

Ireland

ICAV SECRETARY US LEGAL ADVISERS

Dechert Secretarial Limited Dechert LLP

3 George’s Dock One International Place

IFSC 40th Floor Dublin 1 100 Oliver Street

Ireland Boston

Massachusetts 02110-2605

USA

INDEPENDENT AUDITORS REPRESENTATIVE IN SWITZERLAND KPMG, Chartered Accountants Hugo Fund Services SA 1 Harbourmaster Place 6 Cours de Rive

IFSC CH-1204 Geneva

Dublin 1 Switzerland

Ireland PAYING AGENT IN SWEDEN

*Independent non-executive directors Skandinaviska Enskilda Banken AB (Publ) ^Non-executive directors Investor Services/Paying Agent

AS-12

Råsta Strandväg 5

SE – 169 79 Solna

Sweden

PAYING AGENT IN SWITZERLAND FACILITIES AGENT IN UNITED KINGDOM BCGE – Banque Cantonale de Geneve Carne Financial Services (UK) LLP Quai de l’Ile 17 1st Floor

CH-1204 Geneva 5 Old Bailey

Switzerland London EC4M 7BA United Kingdom


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INVESTMENT MANAGER’S REPORT for the financial period ended 30 June 2019 Polaris Global Value UCITS Fund SEMI-ANNUAL COMMENTARY – THROUGH 30 JUNE 2019 Global markets suffered a steep decline in the fourth quarter of 2018, but managed to recover in the first six months of 2019. Notable gains in the first quarter were followed by more modest but positive results in the second quarter. The Polaris Global Value UCITS Fund (“the Fund”) performance pattern was generally in line with that of the MSCI World and ACWI Indices, however lagged for the six-month period at +13.39% vs. the MSCI World at +17.38% and ACWI at +16.60%. The disparity between growth and value sub-indexes continued, as the MSCI World Growth Index was up +21.38% while the MSCI World Value Index was up +13.41% on a year-to-date basis. It is worth noting that the Fund was on par with the Value Index for the period. During the six-month period, the Fund saw more than 80% of its holdings in absolute positive territory, with nearly two dozen stocks up 25% or more. Cyclical sectors, including financials, consumer discretionary, information technology (IT) and materials, contributed most to returns. Lackluster stock performance by Teva Pharmaceutical (health care) and Kansai Electric Power (utilities) accounted for underperformance in the respective defensive sectors. At the country level, the portfolio benefitted from its investments in the United Kingdom, Germany, Norway and Australia. Out-of-benchmark exposure to South Korea, India, Puerto Rico and Thailand, also added measurably to returns. SIX-MONTH PERFORMANCE ANALYSIS Financials contributed most to portfolio performance, with 18 holdings posting double-digit returns. Two German reinsurers, Hannover Re and Munich Re, reported better-than-anticipated pricing on annual renewals, while catastrophic losses were limited in the 2019 first quarter. DNB had robust quarterly results and profits, lifted by commission and fee income in capital markets, credit/security brokerage and asset management. Sparebank 1 SR was similarly positioned, bouncing back with better net interest margins and solid credit quality. 2019 has been thus far promising for both Norwegian banks, based on regional GDP growth and an uptrend in petroleum investments. An optimistic two-year outlook for Colombia’s economy, driven by commercial and infrastructure activity, emboldened the local stock market. Bancolombia was one beneficiary, noting consumer loan growth as well as credit and operating cost controls. The second largest sector contributor was consumer discretionary, where the portfolio was both overweight and outperformed. Quarterly results from clothing retailer, Next PLC, met market expectations with strong online and overseas sales that mitigated declines in brick-and-mortar stores. French tire manufacturer Michelin delivered a positive surprise given the generally downbeat news from the auto sector. The tire maker was able to increase both price and volumes, capturing market share. Michelin’s leading technology is driving success in the premium and 18 inch plus tire segments, which are the fastest growing areas in the tire market. Three of the top 10 stock contributors hailed from the materials sector. Supply-demand metrics worked in BHP Billiton’s favor, as competitor Vale’s iron ore tailings dam failed in January. Iron prices rose from the low $70s to mid-$80s due to the supply disruption. Norwegian fertilizer company, Yara International, rose as the company reported good quarterly revenues on the back of higher nitrate/urea product pricing. Yara also curtailed its capital expenditure cycle; the resultant heavy free cash flow should be allocated to dividends over the next few years. Linde PLC recorded better profitability due to synergies achieved as a combined organization (Praxair-Linde). Linde also signed a deal to supply gas to ExxonMobil’s Singapore manufacturing complex, marking the largest gas contract in Linde’s history. Sector performance would have been even stronger, if not for Methanex Corp. The methanol producer declined on weaker commodity pricing industry-wide. The company also faced a proxy fight with one of its largest investors who was opposed to a large expansion project and pushed for a board shakeup. In IT, Microsoft Corp. gained after reporting solid quarterly results, with revenue and operating income up more than 10% from the comparable 2018 period. Commercial cloud revenue grew 48% year-over-year, with more targeted investments slated in this space. Electronic components distributor Avnet, Inc. executed on all fronts: double-digit sales, good cost management, share buybacks and acquisitions to enhance their presence in the “Internet of things” space. Shares of Xerox rose after the company announced 2018 full year results, beating analyst estimates and also announced a strong outlook for 2019. Xerox announced plans to restructure its business under a holding company, seemingly signaling its intent to unwind its debt-heavy receivables financing business and refocus on core competencies. The stock was sold when it hit our valuation target.


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INVESTMENT MANAGER’S REPORT for the financial period ended 30 June 2019 (continued) Polaris Global Value UCITS Fund (continued) In industrials, VINCI SA’s stock traded up throughout the period, rebounding from the Yellow Vest social unrest in Paris. Fiscal year numbers were respectable, with higher airport concessions and stable construction business. In late April, Finnish elevator/escalator maker Kone reported first quarter earnings that met sales growth expectations, although margins compressed due to raw material and labor costs. The stock price jumped higher after a news publication suggested Kone may bid on ThyssenKrupp's $15 billion elevator division. SKF, the Swedish ball bearing manufacturer, demonstrated the resiliency of its diversified business model. While automotive bearing sales were modestly lower, the company still delivered organic growth due to industrial bearings. Conversely, Andritz AG’s metals stamping segment was pressured by weak auto industry demand. The company also anticipated lower profitability in its pulp & paper business. Andritz revised down its full year outlook, while announcing more restructuring from the Schuler metal division. Unsubstantiated negative short seller reports from dubious sources continued to weigh on Babcock International, the British engineering services company in marine, land, aviation and nuclear sectors. The company declined further after warning of lower sales in 2019 due to disposals, contract step downs and low rail activity along with higher restructuring costs. The portfolio underperformed in the utilities sector due to Japanese electricity supplier Kansai Electric Power. The Japan Nuclear Regulation Authority imposed strict anti-terrorism guidelines The Authority was resolute in not issuing extensions for retrofitting nuclear reactors; the industry may struggle to meet the aggressive and somewhat unrealistic deadlines, resulting in nuclear facility shutdowns. In communication services, LG Uplus waned due to slower benefits from 5G offerings and higher costs related to 5G expenses. Double-digit gains from Novartis AG helped temper losses in health care, which were entirely attributable to Teva Pharmaceutical. Novartis continued its upward trend from 2018, with strong first quarter 2019 revenues. In contrast, Israeli-based generic drug manufacturer, Teva, faced multiple legal battles. The Connecticut Attorney General led more than 40 states in a 500+ page lawsuit against Teva and competitors for generic drug price fixing. Furthermore, Teva settled one of its outstanding opioid lawsuits with Oklahoma for $85 million. The position in Teva Pharmaceutical was in the process of being liquidated, which is now complete. Teva and Xerox proceeds were reallocated to existing holdings as well as a select number of new companies in Japan. We purchased Sumitomo Mitsui Trust Holding, the largest trust custodian bank in Japan. Banks across Japan have struggled in a negative interest rate environment; Sumitomo’s largely fee-based services in asset management, custody and administration are not rate sensitive, offering a unique, undervalued proposition. Asahi Group Holdings, the Japanese beer and beverage company, had been a successful long term holding, which we sold in May 2018 when it reached our target valuation. Since then, Asahi has continued to execute on its business plans and paid down debt. The stock declined more than 20% from where we sold it, and after a recent meeting with management and a more attractive valuation, we added Asahi back to the portfolio. INVESTMENT ENVIRONMENT AND STRATEGY Geo-political risks have dominated headline news for more than a year, with more recent worries over U.S.-China trade frictions, threatened Mexico tariffs and the ouster of U.K. Prime Minister Theresa May for failing to finalize a Brexit agreement with Parliament. Technology and materials stocks are sensitive to trade frictions. Signs of declining demand and new product postponements are already noticeable in technology. Year-to-date, the materials sector has been fairly impervious to the macro-economic threats, with decent volumes and pricing. Materials may still experience a downdraft; at that point, we intend to buy attractively-valued stocks that have been featured in our screens. As value managers who have endured an outsized growth decade, we welcome markets that display a bit of stress; such periods typically present some of the best value opportunities. Regards, Polaris Capital Management, LLC


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STATEMENT OF FINANCIAL POSITION REPORT as at 30 June 2019

PCM Global Funds ICAV including Polaris Global

Value UCITS Fund

PCM Global Funds ICAV including

Polaris Global Value UCITS Fund

30 June 2019 31 December 2018

Notes USD USD

ASSETS Cash and cash equivalents 10 6,672,257 8,507,363

Financial assets at fair value through profit or loss:

Transferable securities 9 171,112,494 147,176,932

Other receivables 711,780 305,941

TOTAL ASSETS 178,496,531 155,990,236

LIABILITIES

Other payables 768,096 256,776

Total liabilities (excluding net assets attributable to holders of redeemable participating shares) 768,096 256,776

Net assets attributable to holders of redeemable participating shares 3(h) 177,728,435 155,733,460

Number of units in issue 30 June 2019 31 December 2018

Class I USD Accumulating 13,390,433 13,273,090

Class A USD Accumulating 56,656 100,495

NAV per unit 30 June 2019 31 December 2018

Class I USD Accumulating $13.23 $11.67

Class A USD Accumulating $9.83 $8.68

The accompanying notes form an integral part of the Financial Statements.


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STATEMENT OF COMPREHENSIVE INCOME for the financial period 1 January 2019 to 30 June 2019





30 June 2019 30 June 2018

Notes USD USD

INCOME

Dividends 3,844,617 2,195,347 Bank Interest 76,584 21,903 Net gain/(loss) on financial instruments at fair value through profit or loss 18,448,668 (2,395,934) Other income 1,655 7,705

Total investment gain/(loss) 22,371,524 (170,979)

EXPENSES Investment Management fees 6 (639,227) (412,666) Investment Manager rebate for capped expenses 6 103,442 128,391 Operating expenses 7 (225,922) (213,925)

Total operating expenses (761,707) (498,200)

Increase/(Decrease) in net assets attributable to holders of redeemable participating shares before tax 21,609,817 (669,179) Withholding tax expenses 3 (573,743) (366,975)

Increase/(Decrease) in net assets attributable to holders of redeemable participating shares 21,036,074 (1,036,154)



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STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES for the financial period 1 January 2019 to 30 June 2019

PCM Global Funds ICAV including Polaris

Global Value UCITS Fund



30 June 2019 30 June 2018 USD USD

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

155,733,460 105,910,746 Increase/(Decrease) in net assets attributable to holders of redeemable participating shares

21,036,074 (1,036,154)

Proceeds from issuance of redeemable participating shares

4,079,747 11,972,978

Payments on redemption of redeemable participating shares

(3,120,846) (13,302,761)

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

177,728,435 103,544,809



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STATEMENT OF CASH FLOWS for the financial period 1 January 2019 to 30 June 2019





30 June 2019 30 June 2018 USD USD

Cash flows from operating activities Increase/(Decrease) in net assets attributable to holders of redeemable participating shares from operations 21,036,074 (1,036,154) Dividend income net of withholding tax (3,270,874) (1,828,372) Bank interest income (76,584) (21,903) Net (gain)/loss on financial instruments at fair value through profit or loss (18,448,668) 2,395,934

Operating loss before changes in operating assets and liabilities (760,052) (490,495)

Changes in operating assets and liabilities Movement in investments (5,486,894) (1,055,273) Decrease in receivable from Investment Manager 89,359 111,779 Increase/(Decrease) in other receivables 13,745 (345) Increase in other payables 170,393 151,248

Cash used by operating activities (5,973,449) (1,283,086)

Dividend received net of withholding tax 2,773,761 1,730,257 Interest received 64,754 14,520

Net cash (used by)/provided from operating activities (3,134,934) 461,691

Financing activities Payments of redemptions of redeemable participating shares (2,779,919) (13,343,361) Proceeds from issue of redeemable participating shares 4,079,747 11,972,978

Net cash provided from/(used by) financing activities 1,299,828 (1,370,383)

Net decrease in cash and cash equivalents (1,835,106) (908,692) Cash and cash equivalents at the beginning of the financial period 8,507,363 2,135,875

Cash and cash equivalents at the end of the financial period 6,672,257 1,227,183



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NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 1. Reporting Entity

The ICAV is an Irish collective asset-management vehicle constituted as an open-ended umbrella fund with segregated liability between Sub-Funds registered in Ireland on 7 July 2015 under the ICAV Act 2015 and authorised by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) pursuant to the UCITS Regulations. The ICAV’s registration number is C142346. As at 30 June 2019, there was one active fund, being Polaris Global Value UCITS Fund. The principal activity of the Fund is to seek capital appreciation.

2. Basis of Preparation

The principal accounting policies and estimation techniques applied in the preparation of these financial statements are set out below. (a) Statement of compliance

The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union, and Irish law comprising the ICAV Act 2015 and the UCITS Regulations. (b) Basis of Measurement

The financial statements have been prepared on the historical cost basis, except for financial instruments at fair value through profit or loss, which are measured at fair value. The financial statements are prepared on a going concern basis. This is the first set of the Fund's annual financial statements in which IFRS 9 Financial Instruments has been applied. Changes to significant accounting policies are described in Note 3. (c) Functional and Presentation Currency

Items included in the Fund’s financial statements are measured using the primary economic environment in which the respective Fund operates (“the functional currency”). The functional and presentational currency is United States Dollar (“USD”). If indicators of the primary economic environment are mixed, then management uses its judgement to determine the functional currency that most faithfully represents the economic effects of the underlying transactions, events and conditions. The majority of the Fund ’s investments and transactions are denominated in USD. Investor subscriptions and redemptions are determined based on the net asset value, and received and paid in USD. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into said functional currency at the closing rates of exchange at each financial year end. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value through profit or loss are retranslated into the functional currency at the spot rate at the date the fair value was determined. Transactions during the financial period, including purchases and sale of securities, income and expenses, are translated at the rate of exchange prevailing on the date of the transaction. Foreign currency gains and losses on items measured at fair value through profit or loss are included in the net gain or loss on financial instruments at fair value through profit or loss in the Statement of Comprehensive Income.


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NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 (continued)

2. Basis of Preparation (continued)

(d) Use of estimates and judgements

The preparation of financial statements in conformity with IFRS as adopted by the EU, requires management to make judgements, estimates and assumptions which affect the application of policies and the reported amounts of assets and liabilities, income and expense. The estimates and associated assumptions are based on historical experience and various other factors which are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities which are not readily apparent from other sources. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial period in which the estimates are revised and in any future years affected. There were no estimates used in measuring the fair value of investments at the financial period end date of 30 June 2019 (31 December 2018: Nil) as all investments held at period end were classified as level 1.

3. Significant Accounting Policies

(a) New standards, amendments and interpretations effective after 1 January 2019 and have not been early adopted A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2019, and have not been early adopted in preparing these financial statements. None of these are expected to have a material effect on the financial statements of the Company. (b) IFRS 9 Transition The ICAV initially applied IFRS 9 from 1 January 2018. As permitted by the transition provisions of IFRS 9, comparative information throughout these financial statements has not generally been restated to reflect the requirement of the standard. Except for the changes noted below, the ICAV has consistently applied the accounting policies to all periods in these financial statements.

Changes in accounting policies resulting from the adoption of IFRS 9 have been applied retrospectively, except as described below.

- IFRS 9 contains three principal classifications categories of financial assets: measured at amortised cost, Fair Value through Other Comprehensive Income (“FVOCI”) and Fair Value through Profit or Loss (“FVTPL”). The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. IFRS 9 eliminates the previous IAS 39 categories of held to maturity, loans and receivable and held for sale. For explanation of how the ICAV classifies and measures financial instruments and accounts for related gains and losses under IFRS 9, see note 3c below.

- IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities. The adoption of IFRS 9 has not had a significant effect on the ICAV’s accounting policies related to financial liabilities.

Additionally, the Fund has adopted consequential amendments to IFRS 7, Financial Instruments: Disclosures, which are applied to disclosures in 2018 but have not generally been applied to comparative information.


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NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 (continued) 3. Significant Accounting Policies (continued)

(c) Financial Assets and Liabilities at Fair Value through Profit or Loss

(i) Classification and subsequent measurement Policy applicable before 1 January 2018 The ICAV classifies its financial assets and liabilities at fair value through profit or loss: held for trading. The financial assets and liabilities held for trading are those that the ICAV principally holds for the purpose of short-term profit taking, in accordance with International Accounting Standard 39. Financial assets that are categorised as loans and receivable include cash and cash equivalents and other receivables, dividends receivable, receivable from the investment manager, none of which are quoted on an active market. Financial liabilities that are at amortised cost includes other payables. After initial measurement, the ICAV measures financial instruments which are classified as at fair value through profit or loss, at their fair value. Subsequent changes in the fair value of financial instruments at fair value through profit or loss are recognised in the Statement of Comprehensive Income. 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 instruments is based on their quoted market prices in an active market. The ICAV measures instruments quoted in an active market at last traded price, because this price provides a reasonable approximation of exit price.

If a quoted market price is not available, the fair value of the financial instruments may be estimated by a competent person using valuation techniques, including the use of recent arm’s length market transactions, reference to the current fair value of another instrument that is substantially the same, discounted cash flow techniques, option pricing models or any other valuation technique that provides a reliable estimate of prices obtained in actual market transactions. Policy applicable after 1 January 2018 On initial recognition, the ICAV classifies financial assets as measured at amortised cost or FVTPL. A financial asset is measured at amortised cost if it meets both the following conditions and is not designated at FVTPL: - It is held with a business model whose objective is to hold assets to collect contractual cash flows; and - Its contractual terms give rise on specified dates to cash flows that are SPPI.

All other financial assets of the ICAV are measured at FVTPL. As all of ICAV’s investments are either held for trading and/or managed and evaluated on a fair value basis, they have remained classified as fair value through profit or loss upon adoption of IFRS 9. The entity is primarily focused on fair value information and uses that information to assess the assets’ performance and to make decisions. The ICAV held equity securities at year end which had been previously classified as held for trading. On adoption of IFRS 9, these securities are mandatorily classified as fair value through profit or loss. In addition, a portfolio of financial assets that meets the definition of held for trading is not held to collect contractual cash flows or held both to collect contractual cash flows and to sell financial assets. For such portfolios, the collection of contractual cash flows is only incidental to achieving the business model’s objective. Consequently, such portfolios of financial assets must be measured at fair value through profit or loss.


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(c) Financial Assets and Liabilities at Fair Value through Profit or Loss

(i) Classification and subsequent measurement (continued) The Fund classify their investments based on both the Fund’ business model for managing those financial assets and the contractual cash flow characteristics of the financial assets. The portfolio of financial assets is managed and performance is evaluated on a fair value basis. The Fund are primarily focused on fair value information and uses that information to assess the assets’ performance and to make decisions. The Fund have not taken the option to irrevocably designate any equity securities as fair value through other comprehensive income. Consequently, all investments are measured at fair value through profit or loss. Financial assets at FVTPL are subsequently measured at fair value. Net gains and losses, including any interest or dividend income and expense and foreign exchange gains and losses, are recognised in the profit or loss in “net income from financial instruments at FVTPL” in the statement of comprehensive income. Financial assets at amortised cost are subsequently measured at amortised cost using the effective interest method. Cash and cash equivalents, other receivables, dividends receivable, receivable from the investment manager are included in this category. Interest income on cash and cash equivalents which was calculated using the effective interest rate method is recognised in bank interest income, foreign gains and losses are recognised in “net foreign exchange gain or loss” in the statement of comprehensive income. IAS 39’s treatment of financial liabilities has been carried forward to IFRS 9 with very limited change. In particular, financial liabilities that are held for trading will continue to be measured at fair value through profit or loss. (ii) De-recognition The ICAV de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire. It also derecognises a financial asset when it transfers the financial assets and the transfer qualifies for derecognition in accordance with IAS 39. The ICAV derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expires. (d) Offsetting Financial Instruments

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 recognised amounts and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously. There were no master netting agreements in place for the financial period ended 30 June 2019 and 31 December 2018. As a result, the requirements of IFRS 7 to disclose offsetting positions of financial assets and liabilities have no impact on current disclosures in the ICAV’s financial statements. (e) Transaction Costs Transaction costs include fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and security exchanges, and transfer taxes and duties. Transaction costs do not include debt premiums or discounts, financing costs or internal administrative or holding costs. Transaction costs relate to the purchase and sale of investments and are recognised in operating expenses in the Statement of Comprehensive Income.


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(f) Net Gain/Loss on Financial Assets and Liabilities at Fair Value through Profit or Loss

Results arising from trading activities are recognised in the Statement of Comprehensive Income. Included are all realised and unrealised fair value changes of financial instruments and foreign exchange differences, but excludes interest and dividend income which are presented separately in the Statement of Comprehensive Income. Realised gains and losses on sales of investments are calculated based on average book cost of the investment in local currency and are included in net (losses)/gains on investments in Statement of Comprehensive Income. Unrealised gains and losses on investments are the discrepancies between the original cost of the investment and it’s value at the reporting period and are included in the net (losses)/gains on investments in Statement of Comprehensive Income. (g) Income Tax

Withholding tax expense Dividend, interest income and capital gains (if any) received by the Fund might be subject to withholding tax imposed in the country of origin. Income that is subject to such tax is recognised gross of the taxes and the corresponding withholding tax is recognised as tax expense in the Statement of Comprehensive Income. The ICAV may be liable to taxes (including withholding taxes) in countries other than Ireland on dividend, interest income and capital gains arising on its investments. The ICAV may not be able to benefit from a reduction in the rate of such foreign tax by virtue of double taxation treaties between Ireland and other countries. The ICAV may not, therefore, be able to reclaim any foreign withholding tax suffered by it in particular countries. Income that is subject to such tax is recognised gross of the taxes and the corresponding withholding tax is recognised as a tax expense.

Capital gains tax Capital gains tax (if any) received on investments made by the ICAV 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 ICAV or its shareholders.


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(h) Redeemable Participating Shares

A puttable instrument that includes a contractual obligation for the issuer to repurchase or redeem that instrument for cash or another financial asset is classified as equity instruments if it meets the following conditions:

- it entitles the holder to a pro rata share of the Fund's net assets in the event of the Fund's liquidation; - it is in the class of instruments that is subordinate to all other classes of instruments; - all financial instruments in the class of instruments that is subordinate to all other classes of instruments have identical features; - apart from the contractual obligation for the Fund to repurchase or redeem the instrument for cash or another financial asset, the instrument does not include other features that would require classification as a liability; - the total expected cash flows attributable to the instrument over its life are based substantially on the profit or loss, the change in the recognised net assets or the change in the fair value of the recognised and unrecognised net assets of the Fund over the life of the instrument. The ICAV issues redeemable participating shares in the Fund which are redeemable at the holder’s option and are classified as financial liabilities. (i) Cash and Cash Equivalents

Cash and cash equivalents include cash in hand and other short term deposits with original maturities of three months or less, net of bank overdrafts. (j) Interest Income and Interest Expense Interest income is recognised in the Statement of Comprehensive Income on an accruals basis, using the effective interest method. The effective interest method is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability (or when appropriate; a shorter period) to the carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Fund estimate future cash flows considering all contractual terms but not future credit losses. Interest expense is recognised on an accruals basis in line with the contractual terms. Interest is accrued on a daily basis. (k) Dividend Income

Dividend income is recognised in the Statement of Comprehensive Income on the date upon which the related security is first listed as “ex-dividend”. Dividend income is shown gross of any non-recoverable withholding taxes and net of any tax credits.

(l) Expenses

All expenses are recognised in the Statement of Comprehensive Income on an accrual basis and as the related services are performed. The Investment Manager has undertaken to limit the annual expenses through the use of an Expense Limitation. Reimbursement of expenses, arising as a result of the Expense Limitation, is included in the operating expenses in the Statement of Comprehensive Income.


16

NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 (continued) 4. Taxation

The ICAV is an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997. Therefore, the ICAV will not be liable to Irish 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 gain on a chargeable event does not arise in respect of:

a) A shareholder who is not an 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 ICAV;

b) Certain exempted Irish tax resident Investors who have provided the ICAV with the necessary

signed statutory declarations;

c) An exchange of shares arising on a qualifying amalgamation or reconstruction of the ICAV 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;

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 ICAV for other Shares in the ICAV. Capital gains, dividends and interest (if any) received on investments made by the ICAV 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 ICAV or its shareholders. In the absence of an appropriate declaration, the ICAV will be liable for Irish tax on the occurrence of chargeable event, and the ICAV reserves its right to withhold such taxes from the relevant shareholders.

The ICAV may be subject to taxes imposed on realised and unrealised gains on securities for certain foreign countries in which the ICAV invests. The foreign tax expense, if any, is recorded on an accrual basis and is included in the capital gains tax line in the statement of comprehensive income. The amount of foreign tax owed, if any, is included in the capital gains tax payable in the statement of financial position. There were no capital gains tax charges for the period ended 30 June 2019 (30 June 2018: USD Nil), of which Nil were payable at the period end 30 June 2019 (31 December 2018: Nil).


17

NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 (continued) 5. Share Capital

The ICAV's current capital exceeds EUR 300,000, being the capital required to establish a self-managed investment company under the UCITS Regulations.

Authorised Shares The authorised share capital of the ICAV is 500,000,000,000 redeemable Shares of no par value. There were also 300,000 redeemable Management Shares of €1 each and shall at all times be equal to the value for the time being of the issued share capital of the ICAV. Redeemable Management Shares At the registration of the ICAV Neil Clifford and Declan O’Sullivan were each issued one Redeemable Management Share. On 28 July 2015, Neil Clifford and Declan O’Sullivan each transferred their shares to Mr. Bernard Horn Jr. and Polaris Capital Management, LLC. Mr. Bernard Horn Jr. holds his share, for and on behalf of Polaris Capital Management, LLC.

The Redeemable Management Shares entitle the holders to attend and vote at general meetings of the ICAV but do not entitle the holders to participate in the profits or assets of the ICAV except for a return of capital on a winding-up. As at 30 June 2019, there were no Redeemable Management Shares in issue.

Redeemable Participating Shares A Fund may consist of one or more Classes of Shares. A separate pool of assets will not be maintained for each Class within a Fund. The Shares of each Class allocated to a Fund will rank pari passu with each other in all respects provided that Classes may differ as to certain matters including, without limitation as to all or any of the following: currency of denomination of the Class, distribution policy, the amount of fees and expenses to be charged (including any Share Class specific expenses) and the minimum subscription and redemption amounts.

Each of the Shares entitles the holder to attend and vote at meetings of the ICAV and to participate equally in the profits and assets of the Fund to which the Shares relate, subject to any differences between fees, charges and expenses applicable to different Classes. Each Shareholder shall have one vote for each whole Share held. The liability of the shareholders shall be limited to the amount, if any, unpaid on the Shares respectively held by them, and the shareholders shall not be liable for the debts of the Sub-Fund. Minimum subscription and redemption amounts are specified in the relevant Supplement for each Sub-Fund.

The ICAV may from time to time by Ordinary Resolution increase its capital, consolidate its shares or any of them into a smaller number of shares, sub-divide shares or any of them into a larger number of shares or cancel any shares not taken or agreed to be taken by any person. The ICAV may by Special Resolution from time to time reduce its share capital in any way permitted by Irish law.

The rights attached to each Class (and for these purposes, reference to any Class shall include reference to any Class) may, whether or not the ICAV is being wound up, be varied with the consent in writing of the holders of three fourths of the issued Shares of that Class or with the sanction of a Special Resolution passed at a separate general meeting of the holders of the Shares of that Class.


18

NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 (continued) 5. Share Capital (continued)

The provisions of the Instrument of Incorporation in relation to general meetings shall apply to every such separate general meeting except that the necessary quorum at any such meeting shall be two persons holding or representing by proxy at least one third of the issued Shares of the Class in question or, at an adjourned meeting, one person holding Shares of the Class in question or his proxy. Any holder of Shares representing one tenth of the Shares in issue of the Class in question present in person or by proxy may demand a poll. The rights attaching to any Class shall not be deemed to be varied by the creation or issue of further Shares of that Class ranking pari passu with Shares already in issue, unless otherwise expressly provided by the terms of issue of those Shares.

The Instrument of Incorporation provide that on a show of hands at a general meeting of the ICAV every Shareholder present in person or by proxy shall have one vote and on a poll at a general meeting every Shareholder shall have one vote in respect of each Share, as the case may be, held by him; provided, however, that, in relation to a resolution which in the opinion of the directors affects more than one Class or gives or may give rise to a conflict of interest between the shareholders of the respective Classes, such resolution shall be deemed to have been duly passed, only if, in lieu of being passed at a single meeting of the Shareholders of all of those Classes, such resolution shall have been passed at a separate meeting of the Shareholders of each such Class.

All general meetings of the ICAV or any Fund shall be held in Ireland. At least 21 days’ notice (exclusive of the day on which the notice is served or deemed to be served and of the day for which the notice is given) shall be given to Shareholders. The notice shall specify the place, day and hour of the meeting and the terms of the resolutions to be proposed. A proxy may attend on behalf of any Shareholder.

The initial issue price per Share for Shares being offered by the Fund is:

Class A USD Accumulating USD $10.00

Class I USD Accumulating USD $10.00

Class I EUR Accumulating EUR €10.00

Class I EUR Accumulating (Hedged) EUR €10.00

Class I GBP Accumulating GBP £10.00

Class I GBP Accumulating (Hedged) GBP £10.00

Class R GBP Accumulating GBP £10.00

Class R GBP Accumulating (Hedged) GBP £10.00

Class X USD Accumulating USD $10.00

As of 30 June 2019 and 31 December 2018, Class I USD Accumulating share class and Class A USD Accumulating share class were in issue. Investors may apply for shares in the Class I USD Accumulating share class and Class A USD Accumulating share class net asset value. 30 June 2019 31 December 2018

Share Class I USD

Accumulating Share Class I USD

Accumulating

Redeemable participating shares in issue at beginning of the period/year 13,273,090 7,895,869 Shares issued during the period/year 302,550 7,434,031 Shares redeemed during the period/year (185,207) (2,056,810)

Redeemable participating shares in issue at end of the period/year 13,390,433 13,273,090


19

NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 (continued) 5. Share Capital (continued)


Share Class A USD

Accumulating Share Class A USD

Accumulating

Redeemable participating shares in issue at beginning of the period/year 100,495 7,419 Shares issued during the period/year 31,683 97,897 Shares redeemed during the period/year (75,522) (4,821)

Redeemable participating shares in issue at end of the period/year 56,656 100,495

Shares in the Fund may be redeemed on a daily basis at the Net Asset Value per share of the relevant class. For details of the proceeds from issuance and payments on redemption of redeemable participating shares, please see the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares.

Dividend Policy It is intended that, in the normal course of business, dividends will not be declared and that any net investment income and net realised capital gains will be accumulated in the respective Net Asset Value per Share of each Class. Shareholders will be notified in advance of any change in distribution policy. Significant shareholders Sygnia Life Limited held 6,199,806 shares at 30 June 2019 (31 December 2018: 6,091,513) which represents 46.16% (31 December 2018: 45.65%) of the net asset value of the ICAV at financial period end. Irving Oil Limited held 5,075,696 shares at 30 June 2019 (31 December 2018: 5,075,696) which represents 37.79% (31 December 2018: 38.04%) of the net asset value of the ICAV at financial period end.

6. Investment Management Fees and Expense Limitation Under the Investment Management Agreement, the ICAV pays to the Investment Manager a maximum fee at an annual rate equal to the percentage of the average daily Net Asset Value of the relevant Class of the Fund, with the exception of the Class X Shares (of which there are none in issue) which are set out in a separate agreement. The investment management fee shall accrue and be calculated daily and shall be payable monthly in arrears. In addition, the Investment Manager shall be entitled to be reimbursed its reasonable vouched out-of-pocket expenses. Each Fund shall bear pro rata its share of such out-of-pocket expenses. The Investment Manager may also, from time to time and at its sole discretion, use part of its investment management fee to remunerate certain financial intermediaries and may pay reimbursements or rebates to certain institutional shareholders in circumstances where its fees are charged directly to such intermediaries and/or institutional shareholders and not to the Fund. The Investment Manager also may pay trail or service fees out of its investment management fee to financial intermediaries who assist in the sales of Shares of the Fund and provide on-going services to the Shareholders.


20

NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 (continued) 6. Investment Management Fees and Expense Limitation (continued)

The Investment Manager has committed to waive a portion of its management fee and, if necessary, reimburse the Fund’s operating expenses, in order to keep the Fund’s total operating expenses (including the fees of the Investment Manager, Administrator and Depositary) from exceeding an annual rate of the daily Net Asset Value of the Fund as set out in the schedule to the supplement. Operating expenses in relation to the expense limitation do not include the cost of buying and selling investments, withholding tax, stamp duty or other taxes on investments, commissions and brokerage fees incurred with respect to investments, and such extraordinary or exceptional costs and expenses (if any) as may arise from time to time, such as material litigation in relation to the ICAV as may be determined by the Directors in their discretion. The expenses subject to the Expense Limitation shall include the investment management fee. The Investment Manager may renew or discontinue this arrangement at any time upon prior notification to Shareholders.

Class Investment

Management Fee Expense

Limitation

Class A USD Accumulating 1.000% N/A

Class I USD Accumulating 0.750% 0.900%

Class I EUR Accumulating 0.750% 0.900%

Class I EUR Accumulating (Hedged) 0.750% 0.900%

Class I GBP Accumulating 0.750% 0.900%

Class I GBP Accumulating (Hedged) 0.750% 0.900%

Class R GBP Accumulating 0.825% 0.975%

Class R GBP Accumulating (Hedged) 0.825% 0.975%

Class X USD Accumulating N/A 0.150%

To the extent that the Investment Manager waives its fee or reimburses the Fund’s operating expenses under the Expense Limitation, the Fund’s overall expense ratio will be lower than it would have been without the Expense Limitation. This reduction in operating expenses may increase the Fund’s investment return and such returns may not be achieved without the benefit of the Expense Limitation. For the financial period ended 30 June 2019 fees charged by the Investment Manager amounted to USD 639,227 (30 June 2018: USD 412,666), of which USD 323,631 remains payable at 30 June 2019 (31 December 2018: USD 154,982). For the financial period ended 30 June 2019 Investment Manager rebate for capped expenses amounted to USD 103,442 (30 June 2018: USD 128,391), of which USD 32,898 (31 December 2018: USD 122,257) is due from the Investment Manager at 30 June 2019.

7. Operating Expenses

Administrator’s Fees and Expenses The Administrator is entitled to receive out of the assets of the Fund an annual fee which will not exceed 0.0275% of the net assets of the Fund, subject to a minimum fee of USD 2,670 per month per Fund (plus any applicable taxes). This fee accrues and is calculated on each Dealing Day and payable monthly in arrears. The Administrator agreed to waive the minimum fee requirement for the first six months of the ICAV’s operations. Minimum fee requirements commenced from 1 June 2016 onwards. The Administrator is also entitled to charge to the Fund all agreed fees and transaction charges, at normal commercial rates, together with reasonable out of-pocket expenses (plus any applicable taxes), it incurs on behalf of the Fund in the performance of its duties under the Administration Agreement, which shall be payable monthly in arrears. For the financial period ended 30 June 2019 fees charged by the Administrator were USD 24,881 (30 June 2018: USD 19,673). As at 30 June 2019 fees of USD 7,153 (31 December 2018: USD 5,932) were payable to the Administrator.


21

NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 (continued) 7. Operating Expenses (continued)

Transfer Agent Fees The Administrator, in relation to the provision of its services shall be entitled to a fee payable out of the assets of each Fund accruing daily and payable monthly in arrears at the end of each calendar month at the following rates: - Transfer Agent fee - USD 2,000 per share class per annum subject to a minimum monthly fee of USD

2,500. Account maintenance and servicing fees will be charged at normal commercial rates. For the financial period ended 30 June 2019 fees charged by the Transfer Agent were USD 17,123 (30 June 2018: USD 15,034). As at 30 June 2019 fees of USD 4,849 (31 December 2018: USD 5,014) were payable to the Transfer Agent. Depositary’s Fees and Expenses The Depositary is entitled to receive out of the assets of the Fund, the greater of an annual fee which will not exceed 0.023% of the net assets of the Fund, or a minimum oversight fee of up to USD 1,117 per month (plus any applicable taxes) and a depositary cash flow monitoring & reconciliation flat fee of USD 291 per month. These fees accrue and are calculated on each Dealing Day and payable monthly in arrears. The Depositary is also entitled to receive out of the assets of the Fund, the greater of a safekeeping fee accrued daily and payable monthly in arrears at a rate, depending on the custody markets, ranging from 0.5 bps up to 108 bps on the Net Asset Value of the Fund, subject to a minimum safekeeping fee of USD 8,000 per annum (plus VAT, if any). These fees accrue and are calculated on each Dealing Day and payable monthly in arrears. The Depositary shall also be entitled to receive out of the net assets of the Fund all agreed sub-custodian fees, transaction charges (which will be charged at normal commercial rates) together with reasonable out-of-pocket expenses incurred by the Depositary in the performance of its duties under the Depositary Agreement. For the financial period ended 30 June 2019 fees charged by the Depositary were USD 45,182 (30 June 2018: USD 25,244). As at 30 June 2019 fees of USD 10,241 (31 December 2018: USD 7,960) were payable to the Depositary. Directors Remuneration The Instrument of Incorporation provides that the Directors shall be entitled to a fee by way of remuneration for their services at a rate to be determined from time to time by the Directors. However, Directors affiliated with the Investment Manager are not entitled to a fee. The aggregate amount of Directors’ remuneration in any one year shall not exceed €60,000 without the approval of the Directors. All Directors will be entitled to reimbursement by the ICAV of expenses properly incurred in connection with the business of the ICAV or the discharge of their duties. For the financial period ended 30 June 2019 fees charged by the Directors were USD 19,617 (30 June 2018: USD 19,726). As at 30 June 2019 fees of USD 4,799 (31 December 2018: USD 2,972) were payable to the Directors. There were no reimbursement of expenses made to the Directors during the period ended 30 June 2019 (2018: Nil). Audit Fees Audit fees relate to the service provided by KPMG for the financial period ended 30 June 2019 and 30 June 2018.

Fees shown above are exclusive of VAT.

30 June 2019 30 June 2018 Description USD USD Audit (including reimbursement of expenses) 7,602 7,644 Tax advisory (VAT returns) 6,948 8,037

Total 14,550 15,681


22


7. Operating Expenses (continued)

Below is the transaction cost for the financial period ended 30 June 2019 and 30 June 2018:

30 June 2019 30 June 2018 USD USD Transaction costs

11,310 23,686

8. Related Parties

IAS 24 ‘Related Party Transactions’ requires the disclosure of information relating to material transactions with parties who are deemed to be related to the reporting entity. The Directors, the Investment Manager, Carne Global Financial Services Limited and Sygnia Life Limited, represent related parties for the purposes of the accounting standards to which the ICAV is subject.

Please refer to Note 5 for significant shareholders.

Transactions with key management personnel

Polaris Capital Management, LLC has been appointed as the Investment Manager of the ICAV pursuant to the Investment Management Agreement dated 1 October 2015 and shall remain in effect until terminated. Investment Management fees incurred by the ICAV are disclosed in Note 6. The Investment Manager has imposed a voluntary cap on the fees and expenses payable in respect of each Share Class of the Fund. The Investment Manager will discharge all fees and expenses in excess of the cap payable in respect of each Class. The cap for each Class will be reviewed on a periodic basis by the Investment Manager, in consultation with the Directors. Any increase or removal of the cap in respect of any Class will be notified to Shareholders of that Class in advance. Amounts reimbursed by the Investment Manager with respect to the expense cap is disclosed in Note 6.

Ms. Kathleen Jacobs, Mr. Bernard Horn Jr and Mr. Jason Crawshaw, directors of the ICAV, are also employees of the Investment Manager.

By virtue of their roles within Polaris Capital Management, LLC Ms. Jacobs, Mr. Horn Jr. and Mr. Crawshaw are considered related parties. For the financial period ended 30 June 2019 Investment Management fees and the Expense Limitation are discussed in Note 6.

Neil Clifford, a Director of the ICAV, is also an employee of Carne Global Financial Services Limited. Carne Global Financial Services Limited earned fees during the period in respect of Director support services and other fund governance services provided to the ICAV, the fees amounted to USD 4,784 and USD 17,556, (30 June 2018: USD 23,223) respectively, of which USD Nil was payable at period end (31 December 2018: USD 14,635).

For the financial period ended 30 June 2019 Neil Clifford earned USD 4,660 directors fees (30 June 2018 : USD 4,991).

Directors’ remuneration is discussed in Note 7. Connected party transactions

Regulation 41 (1) of the Central Bank of Ireland UCITS Regulations 2015 states that “a responsible person shall ensure that any transaction between a UCITS and a connected person is conducted at (a) arm’s length; and (b) in the best interests of the shareholders of the UCITS”. As required under Regulation 78 (4) of the Central Bank of Ireland UCITS Regulations 2015, the Directors are satisfied that there are in place arrangements, evidenced by written procedures, to ensure that the obligations that are prescribed by Regulation 41(1) are applied to all transactions with a connected party; and all transactions with connected parties that were entered into during the period to which the report relates complied with the obligations that are prescribed by Regulation 41(1).


23

NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 (continued) 9. Risks Associated with Financial Instruments

The Fund, the ICAV’s only sub-fund in operation, aims to seek capital appreciation by investing primarily in equity and equity-related securities of companies both U.S. and non-U.S., of any market capitalisation, including companies which are organised, headquartered or do a substantial amount of their business in Emerging Market countries. The Fund is exposed to risks which includes market risk, credit risk and liquidity risk arising from the financial instruments it holds. The ICAV may use derivatives and other instruments in connection with its risk management activities.

The Fund has in place guidelines that set out its overall business strategies and its general risk management philosophy and has established processes to monitor and control economic hedging transactions in a timely and accurate manner. The Investment Manager employs a risk management process to monitor and control position risk in a timely and accurate manner. Global exposure is calculated using the commitment approach. (a) Market Risk Market risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Fund might suffer through holding market positions in the face of price movements. The ICAV is exposed, particularly in its equity assets, to market risks. The ICAV invests in securities traded on global markets and market risk is a risk to which exposure is unavoidable. Market risk comprises of price risk, currency risk and interest rate risk. (i) Price Risk Price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether caused by factors specific to an individual investment, its issuer or all factors affecting equity instruments traded in the market. As the majority of the ICAV’s investments are carried at fair value with fair value changes recognised in the Statement of Comprehensive Income, all changes in market conditions will directly affect net income. The risk is mitigated through diversification of the portfolio in investments in various geographic zones and industries. The investment strategy of the ICAV is not to replicate a market index and therefore correlation between the return from the ICAV and any market index is likely to vary. As a result, it is appropriate to use the financial period end portfolio as a risk variable in any market sensitivity analysis. To illustrate the sensitivity of the portfolio based on a reasonably possible estimate of market price movements for a financial period, if the price of each of the equity securities to which the ICAV had exposure had increased by 5%, whilst the foreign currency rates held constant, there would have been the following approximate increases in net assets attributable to holders of redeemable participating shares:


Polaris Global Value UCITS Fund 8,555,625 7,358,847

A decrease by 5% would have resulted in an equal but opposite effect on net assets attributable to holders of redeemable shares by the amounts shown above, on the basis that all other variables remained constant.


24

NOTES TO THE FINANCIAL STATEMENTS for the financial period ended 30 June 2019 (continued) 9. Risk Associated with Financial Instruments (continued)

(a) Market Risk (continued)

(ii) Currency Risk Currency risk is the risk that the ICAV’s operations or the NAV of the ICAV will be affected by changes in exchange rates and regulatory controls on currency movements. The ICAV may employ techniques and instruments intended to provide protection against exchange rate risks in the context of the management of its assets and liabilities, for example where there is a difference between the date an investment purchase or sale is entered into and the date when settlement of the proceeds occurs. When the ICAV enters into a transaction which will involve the buying or selling of foreign currency in order to complete a transaction, a forward foreign exchange contract may be entered into at the same time as the initial transaction in order to eliminate exchange rate risk. The ICAV may also enter into forward foreign exchange contracts to hedge the foreign exchange risk implicit in the value of portfolio securities denominated in a currency other than the ICAV’s base currency, USD.

Monetary items are units of currency held assets and liabilities or paid in a fixed or determinable number of units of currency. Monetary assets and liabilities included cash and cash equivalents, other receivables and other payables. All assets and liabilities that do not meet the definition of monetary items are classified as non-monetary. Marketable equity investments are considered non-monetary assets. The currency associated with equities is included in other price risk. Net assets attributable to holders of redeemable shares are non-monetary. At 30 June 2019 and 31 December 2018, the sub-fund did not hold any significant monetary assets or liabilities that are exposed to currency risk since all monetary assets are in the denomination of the sub-fund’s currency. (iii) Interest Rate Risk Interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rates. Interest rate risk arises when the ICAV invests in interest bearing financial instruments. At the financial period end the ICAV held no fixed income securities, and interest rate risk in relation to cash and cash equivalents is not regarded as a material risk. (iv) Concentration risk The Investment Manager reviews the concentration of risk of equity securities held based on industries and geographical location. The tables shown below provides geographical concentration and exposures to industries above 5% of the Net Asset Value of the ICAV:

Countries, as at 30 June 2019

United States of America 31.22% Great Britain 10.60% Germany 7.15% South Korea 6.96% Japan 6.43% France 5.44%

Total 67.80%

Countries, as at 31 December 2018

United States of America 31.25% Great Britain 13.48% South Korea 7.29% Germany 6.40% France 5.25%

Total 63.67%


25


(a) Market Risk (continued) (iv) Concentration risk (continued)

(b) Credit Risk Credit risk arises where there is a possibility that a loss may occur from the failure of another party to fulfil its duties according to the terms of a contract. The ICAV will also be exposed to credit risk on parties with whom they trade securities and may also bear the risk of settlement default. The ICAV may also be exposed to credit risk on issuers in which the ICAV invests in respect of a default in payment of dividends declared by the issuer. The Investment Manager seeks to minimise concentrations of credit risk by undertaking transactions with various numbers of counterparties on recognised exchanges. In choosing and appointing a sub-custodian as a safe keeping agent, the Depositary exercises care and diligence to ensure that the sub-custodian has and maintains the expertise, competence and standing appropriate to discharge the responsibilities concerned. These criteria are monitored by the Depositary on an ongoing basis. As at 30 June 2019, RBC Investor Services Bank S.A., Dublin Branch has a credit rating of AA- with Standard & Poor’s (31 December 2018: AA-) . The credit risk on liquid funds is mitigated through the use of counterparties or banks with high credit-ratings assigned by international credit-rating agencies. The carrying amount of financial assets recognised in the financial statements, which is net of impairment losses, represents the ICAV’s maximum exposure to credit risk, without taking into account collateral or other credit enhancements held. Substantially all of the investments and cash of the Fund is held by the Depositary, and its sub-custodians, on behalf of the Fund. The investments are clearly segregated from the Depositary’s own assets. However, bankruptcy or insolvency of the Depositary, or one of its sub-custodians, could cause the Fund's rights with respect to assets held by the Depositary or sub custodian to be delayed.

Investment Sector, as at 30 June 2019

Banks and Financial Institutions 18.89% Holding and Finance Companies 7.10% Construction Building Material 5.22% Chemicals 5.17%

Total 36.38%

Investment Sector, as at 31 December 2018

Banks and Financial Institutions 18.73% Holding and Finance Companies 7.09% News Transmission 5.45% Pharmaceuticals and Cosmetics 5.04%

Total 36.31%


26


(c) Liquidity Risk

Liquidity risk is the risk that the ICAV will encounter difficulty in realising assets or otherwise raising funds to meet commitments. Not all securities or instruments invested in by the ICAV will be listed or rated and consequently liquidity may be low. Moreover, the accumulation and disposal of holdings in some investments may be time consuming and may need to be conducted at unfavourable prices. The ICAV may also encounter difficulties in disposing of assets at their amounts approximating fair values due to adverse market conditions leading to limited liquidity.

Substantial redemption at the option of Shareholders may necessitate liquidation of investments. It is possible that losses may be incurred due on such liquidations, which might otherwise not have arisen.

All financial liabilities are due within 1 month.

The Fund’s assets comprise of highly liquid equity securities which are readily convertible to cash within 5 days. (d) Capital Management

At 30 June 2019, the ICAV had $177,728,435 (31 December 2018: $155,733,460) of redeemable share capital classified as financial liability. The ICAV does not intend to declare any dividends and any net investment income and net realised capital gains will be accumulated in the Net Asset Value of the ICAV. The Directors may at their discretion change the distribution policy of a Fund or Class upon notice in advance to Shareholders and the provision of an addendum or revision to the Prospectus in relation to same.

The Manager is compliant with the minimum capital requirements imposed by the Regulations and has been throughout the current and the prior financial year.

(e) Fair Value Measurements

IFRS 13, Fair Value Measurement, requires a fair value hierarchy for inputs used in measuring fair value that classify investments according to how observable the inputs are. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the ICAV. Unobservable inputs reflect the ICAV’s assumptions, made in good faith, about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorised into three levels based on the inputs as follows:

Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the ICAV has the ability to access at the measurement date;

Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and

Level 3 - Inputs that are unobservable.

For those instruments which have significant unobservable inputs (Level 3), the amendment requires disclosures on the transfers into and out of Level 3, a reconciliation of the opening and closing balances, total gains and losses for the period, purchases, sales issues and settlements. 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.


27


9. Risk Associated with Financial Instruments (continued)

(e) Fair Value Measurements (continued)

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 ICAV. The ICAV considers observable data to be that market data that is readily available, regularly distributed or updated and reliable.

There were no transfers between Level 1 and Level 2 during the financial period. There were no Level 3 securities held as at 30 June 2019 or 31 December 2018. At 30 June 2019, all instruments held were classified as Level 1 (31 December 2018: Level 1).

(f) Assets and liabilities not carried at Fair Value through Profit or Loss

Cash and cash equivalents are classified as Level 2 and all other assets and liabilities not carried at fair value are classified as Level 2.

Assets and liabilities not carried at fair value are carried at amortised cost, their carrying values are a reasonable approximation of fair value.

10. Cash and Cash Equivalents All cash and cash equivalents were held with RBC Investor Services Bank S.A., Dublin Branch during the

financial period.

11. Events since Financial Period End There was updated Prospectus for PCM Global Fund ICAV dated 9 July 2019.

On 9 July 2019 Carne Global Fund Managers (Ireland) Limited was appointed as ICAV Manager. There were no other significant events since the financial period end.

12. Approval of Financial Statements

The financial statements were approved and authorised for issue, by the Board of Directors on 23 August 2019.


28

Polaris Global Value UCITS Fund Schedule of Investments as at 30 June 2019

(expressed in USD) Fair % net

Description Quantity Currency Value Assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

LISTED SECURITIES : SHARES

AUSTRIA (2018: 1.17%)

ANDRITZ AG 42,000 EUR 1,580,866 0.89

1,580,866 0.89

BELGIUM (2018: 1.16%)

Solvay SA 18,000 EUR 1,864,698 1.05

1,864,698 1.05

CANADA (2018: 2.50%)

Magna International Inc 46,237 CAD 2,300,552 1.29

Methanex Corp 54,500 CAD 2,474,057 1.39

4,774,609 2.68

COLOMBIA (2018: 1.24%)

Bancolombia SA 117,700 COP 1,414,406 0.80

Bancolombia SA 21,600 USD 1,102,464 0.62

2,516,870 1.42

FINLAND (2018: 1.30%)

Kone OYJ 44,300 EUR 2,614,501 1.47

2,614,501 1.47

FRANCE (2018: 5.25%)

Cie Generale des Etablissements Michelin 18,251 EUR 2,315,123 1.30

Imerys SA 38,167 EUR 2,023,383 1.14

IPSOS 23,700 EUR 625,251 0.35

Publicis Groupe SA 38,600 EUR 2,037,998 1.15

Vinci SA 26,100 EUR 2,672,946 1.50

9,674,701 5.44

GERMANY (2018: 6.40%)

BASF SE 33,100 EUR 2,405,927 1.35

Deutsche Telekom AG 138,411 EUR 2,394,278 1.35

Hannover Rueck SE 17,800 EUR 2,878,309 1.62

LANXESS AG 41,200 EUR 2,448,411 1.38

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen 10,300 EUR 2,584,981 1.45

12,711,906 7.15


29

Polaris Global Value UCITS Fund Schedule of Investments as at 30 June 2019 (continued)



TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING (continued)

LISTED SECURITIES : SHARES (continued)

GREAT BRITAIN (2018: 13.48%)

Babcock International Group Plc 282,940 GBP 1,646,273 0.93

BBA Aviation Plc 401,644 GBP 1,439,298 0.81

Bellway Plc 65,172 GBP 2,304,829 1.30

BHP Billiton Plc 56,300 USD 2,877,493 1.62

Cineworld Group Plc 736,000 GBP 2,368,301 1.33

Inchcape Plc 147,596 GBP 1,154,537 0.65

Next Plc 36,700 GBP 2,575,308 1.45

Standard Chartered Plc 249,552 GBP 2,263,254 1.27

Taylor Wimpey Plc 1,101,368 GBP 2,206,248 1.24

18,835,541 10.60

INDIA (2018: 1.49%)

Infosys Ltd 244,000 USD 2,610,800 1.47

2,610,800 1.47

IRELAND (2018: 2.61%)

Allergan Plc 14,400 USD 2,410,992 1.36

Greencore Group Plc 594,381 GBP 1,652,956 0.93

Linde Plc 15,908 USD 3,194,327 1.80

7,258,275 4.09

ISRAEL (2018: 1.19%)

Teva Pharmaceutical Industries Ltd 23,500 USD 216,905 0.12

216,905 0.12

ITALY (2018: 0.06%)

TREVI - Finanziaria Industriale SpA 269,400 EUR 75,974 0.04

75,974 0.04

JAPAN (2018: 4.38%)

Asahi Group Holdings Ltd 53,100 JPY 2,386,545 1.34

Kansai Electric Power Co Inc 166,800 JPY 1,910,154 1.07

KDDI Corp 86,200 JPY 2,193,783 1.23

Nexon Co Ltd 189,400 JPY 2,744,368 1.54

Sumitomo Mitsui Trust Holdings Inc 61,400 JPY 2,224,754 1.25

11,459,604 6.43

NORWAY (2018: 3.77%)

DNB ASA 128,600 NOK 2,392,485 1.35

SpareBank 1 SR-Bank ASA 186,123 NOK 2,266,976 1.28

Yara International ASA 56,200 NOK 2,726,203 1.53

7,385,664 4.16


30






PUERTO RICO (2018: 1.60%)

Popular Inc 52,800 USD 2,863,872 1.61

2,863,872 1.61

SINGAPORE (2018: 1.47%)

United Overseas Bank Ltd 126,708 SGD 2,446,976 1.38

2,446,976 1.38

SOUTH KOREA (2018: 7.29%)

Hyundai Mobis Co Ltd 8,700 KRW 1,770,206 1.00

Kia Motors Corp 55,200 KRW 2,098,483 1.18

KT&G Corp 19,400 KRW 1,651,018 0.93

LG Uplus Corp 134,200 KRW 1,681,258 0.95

Samsung Electronics Co Ltd 59,610 KRW 2,420,643 1.36

Shinhan Financial Group Co Ltd 44,500 KRW 1,726,315 0.97

SK Hynix Inc 17,000 KRW 1,020,816 0.57

12,368,739 6.96

SWEDEN (2018: 2.74%)

Duni AB 59,700 SEK 813,817 0.46

Loomis AB 44,400 SEK 1,526,036 0.86

SKF AB 140,000 SEK 2,573,995 1.45

Svenska Handelsbanken AB 207,900 SEK 2,056,811 1.16

6,970,659 3.93

SWITZERLAND (2018: 2.76%)

Chubb Ltd 16,323 USD 2,404,215 1.35

Novartis AG 26,800 CHF 2,448,591 1.38

4,852,806 2.73

THAILAND (2018: 1.40%)

Siam Commercial Bank Pcl 561,500 THB 2,552,280 1.44

2,552,280 1.44

UNITED STATES (2018: 31.25%)

ALLETE Inc 31,300 USD 2,604,473 1.46

Ameris Bancorp 49,400 USD 1,935,986 1.09

Anthem Inc 10,300 USD 2,906,763 1.64

Avnet Inc 53,000 USD 2,399,310 1.35

Brookline Bancorp Inc 48,269 USD 742,377 0.42

Capital One Financial Corp 24,600 USD 2,232,204 1.26

Carter's Inc 22,200 USD 2,165,388 1.22


31






UNITED STATES (2018: 31.25%) (continued)

Dime Community Bancshares Inc 45,500 USD 864,045 0.49

Franklin Resources Inc 66,800 USD 2,324,640 1.31

General Dynamics Corp 12,100 USD 2,200,022 1.24

Hewlett Packard Enterprise Co 68,700 USD 1,027,065 0.58

International Bancshares Corp 60,100 USD 2,266,371 1.27

JM Smucker Co 20,400 USD 2,349,876 1.32

JPMorgan Chase & Co 22,800 USD 2,549,040 1.43

L Brands Inc 56,200 USD 1,466,820 0.83

Marathon Petroleum Corp 45,400 USD 2,536,952 1.43

Microsoft Corp 24,600 USD 3,295,416 1.85

NextEra Energy Inc 14,500 USD 2,970,470 1.67

Quest Diagnostics Inc 24,300 USD 2,473,983 1.39

Tyson Foods Inc 35,500 USD 2,866,270 1.61

UnitedHealth Group Inc 10,300 USD 2,513,303 1.41

Verizon Communications Inc 43,400 USD 2,479,442 1.40

Webster Financial Corp 41,900 USD 2,001,563 1.13

WESCO International Inc 39,000 USD 1,975,350 1.11

Western Union Co 117,100 USD 2,329,119 1.31

55,476,248 31.22

TOTAL LISTED SECURITIES : SHARES

171,112,494 96.28

TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING 171,112,494 96.28

CASH AND OTHER ASSETS AND LIABILITIES

6,615,941 3.72

NET ASSETS 177,728,435 100.00

(expressed in USD)

% Total

Description Assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

95.86

CASH AND CASH EQUIVALENTS

3.74

OTHER CURRENT ASSETS

0.40

TOTAL 100.00


32

Supplemental information - Financial Information Polaris Global Value UCITS Fund Establishment and Organisation PCM Global Funds ICAV (the “ICAV”) is an open-ended umbrella ICAV with segregated liability between its Funds established under the laws of Ireland authorised and regulated by the UCITS Regulations. The ICAV was incorporated on 7 July 2015 and commenced operations on 25 November 2015. The ICAV has established Polaris Global Value UCITS Fund (the "Fund"), a Fund of the ICAV. Investment Objective The investment objective of the Fund is to seek capital appreciation. Investment Policy The Fund will invest primarily in equity and equity related securities (including american depositary receipts (“ADR’s”) and master limited partnership (“MLP”) of companies, both US and non- US, of any market capitalisation, including companies which are organised, headquartered or do a substantial amount of their business in emerging market countries. Although there is no limit on the amount of Fund assets that may be invested in companies located in any one country, the Fund seeks to achieve broad geographic diversification and, at any given time, expects to be invested in securities representing approximately 15 of the 24 global industry classification standard (“GICS”) industries. The GICS industries represented will vary depending on which industry, in the Investment Manager’s view, presents the best opportunities for the Fund. MLP’s derive at least 90% of their income from select sources for example, energy, natural resources and real estate. MLPs typically pay their investors quarterly distributions out of capital. As the MLP itself does not pay any income taxes, the amount of that cash flow is enhanced. The classes and currencies in which shares of each fund are on offer, as per the Prospectus, are set out below: Fund Class Currency Polaris Global Value UCITS Fund Class A USD Accumulating USD Class I USD Accumulating USD Class I EUR Accumulating EUR Class I EUR Accumulating (Hedged) EUR Class I GBP Accumulating GBP Class I GBP Accumulating (Hedged) GBP Class R GBP Accumulating GBP Class R GBP Accumulating (Hedged) GBP Class X USD Accumulating USD

As at 30 June 2019, the Class A USD Accumulating & Class I USD Accumulating share classes are the only active share classes. Securities Lending

There was no securities lending during the financial period ended 30 June 2019 (31 December 2018: Nil).


33

Supplemental information - Financial Information (continued) Polaris Global Value UCITS Fund Exchange rates The exchange rates to 1 USD as at 30 June 2019 and 31 December 2018 were:


CAD 1.309600 1.364901

CHF 0.976300 0.982900

COP 3,215.434084 3,246.753247

EUR 0.879391 0.872905

GBP 0.787495 0.784406

JPY 107.799975 109.584958

KRW 1,157.407407 1,113.585746

NOK 8.530385 8.647676

SEK 9.287121 8.863598

SGD 1.353050 1.362949

THB 30.689909 32.340481

Soft Commissions

It is the Investment Manager’s policy to seek to obtain best execution on all client transactions over which the Investment Manager exercises discretion. However, under certain circumstances, consistent with applicable law and regulation, the Investment Manager may select broker-dealers that furnish the Investment Manager with proprietary and third-party brokerage and research services in connection with commissions paid on transactions placed for client accounts (including for the Funds). The Investment Manager has entered into client commission arrangements with a number of broker-dealers that it selects to execute client transactions from time to time. These client commission arrangements provide for the broker dealers to pay a portion of the commissions paid by eligible client accounts for securities transactions to providers of certain research services designated by the Investment Manager. Although the broker-dealers involved in these soft commission arrangements do not necessarily charge the lowest brokerage commissions, the Investment Manager will nonetheless enter into such arrangements where the broker-dealers have agreed to provide best execution and/or the value of the research and other services exceeds any incremental commission costs. Details of any such soft commission arrangements will be disclosed in the period reports of the relevant Fund.

The Investment Manager intends to enter into soft commission arrangements in accordance with all applicable law and industry standards when it is of the view that the arrangements enhance the quality of the provision of the investment services to the ICAV. While such arrangements are designed to be for the benefit of it clients, not all soft commission arrangements will benefit all clients at all times.

In selecting brokers or dealers to execute transactions and negotiating their commission rates, the Fund is expected to consider one or more of such factors as price, execution capabilities, reputation, reliability, financial resources, the quality of research products and services and the value and expected contribution of such services to the performance of the Fund. It is not possible to place a dollar value on information and services received from brokers and dealers, as they only supplement the research efforts of the Fund. If the Fund determines in good faith that the amount of the commissions charged by a broker or dealer is reasonable in relation to the value of the research products or services provided by such broker or dealer, the Fund may pay commissions to such broker or dealer in an amount greater than the amount another broker or dealer might charge. There were no soft commissions paid during the period nor in prior year.


34

Supplemental information - Financial Information (continued) Polaris Global Value UCITS Fund

Net Asset Value History

The Net Assets included in the table below are the Net Asset Values calculated for share dealing purposes. 30 June 2019 31 December 2018 31 December 2017 USD USD USD

Total Net Asset for share dealing 1dealinglingfinancial statement

purposes 177,775,582 155,790,192 105,986,205 Net Asset Value per Share – Class I USD Accumulating 13.23 11.67 13.41 Net Asset Value per Share – Class A USD Accumulating 9.83 8.68 10.03

Net Asset Value

The net assets value in the financial statements at 30 June 2019 differs from that included in the published valuations at 30 June 2019. The difference is due to the change in methodology in accounting for organisation costs as prescribed by IFRS, and the methodology indicated in the most recent Prospectus. This does not have any effect on the published or dealing Net Asset Value.

Polaris Global Value

UCITS Fund

Polaris Global Value

UCITS Fund

30 June 2019 31 December 2018 USD USD

Total Net Assets for financial statement purposes 177,728,435 155,733,460

Adjustment for formation cost written-off 47,147 56,732

Total Net Assets for unitholder dealing/prospectus 177,775,582 155,790,192

Establishment Costs

The preliminary expenses incurred in the formation of the ICAV and the Funds amounting to approximately €125,000 will be discharged out of the assets of the ICAV and will be amortised over the first five financial years of the ICAV’s operation and amortised and allocated among the Funds on a basis deemed fair and equitable by the Directors. The Directors may in their absolute discretion, following consultation with the Depositary, shorten the period over which said expenses are amortised. The preliminary expenses incurred in the establishment of each new Fund or Class will be charged to the respective Fund.

This practice is not in accordance with IFRS and, although this is not anticipated by the Directors, which leads to a divergence between the published Net Asset Value per Share, which is calculated in accordance with this Prospectus, and the Net Asset Value per Share included in the financial statements, which is calculated in accordance with International Financial Reporting Standards.


35

Supplemental information - Financial Information (continued) Polaris Global Value UCITS Fund Efficient Portfolio Management

The ICAV may, subject to the conditions and within the limits laid down by the UCITS Notices, use techniques and instruments for hedging purposes (to protect a Fund against, or minimise liability from, fluctuations in market value or foreign currency exposures) or for the purposes of efficient portfolio management (namely: contracts for differences, forward contracts, futures contracts, options, put and call options on securities, indices and currencies, swap contracts, repurchase/reverse repurchase and stock lending agreements).

Such techniques and instruments may be used for the reduction of risk, cost or the generation of additional capital or income for each Fund taking into account the risk profile of the ICAV and to the extent the Investment Manager deems consistent with the investment objective and policies of the Fund as described in the Prospectus and the general provisions of the Regulations. The ICAV does not currently use Financial Derivative Instruments (“FDIs”) for efficient portfolio management or for investment purposes.

The Investment Manager operates a risk management process on behalf of each Fund in relation to the use of FDIs which allows it to accurately measure, monitor and manage the various risks associated with FDIs and other investments, and which is intended to ensure that the Fund’s investments including FDI exposure remains within the limits described below. This risk management process also takes into account any exposure created through FDIs embedded in investments held by the Funds. In particular, the Investment Manager will manage exposure risk using the commitment approach in accordance with the Central Bank’s requirements.


36

Supplemental information Polaris Global Value UCITS Fund Material Portfolio Changes for the financial period ended 30 June 2019

Significant portfolio changes are defined as the aggregate purchases of a security exceeding one per cent of the total value of purchases for the period and aggregate sales of a security exceeding one per cent of the total value of sales for the period. At a minimum, the 20 largest purchases and 20 largest sales are to be disclosed. SIGNIFICANT PURCHASES*

SECURITY NAME QUANTITY COST % OF TOTAL

USD PURCHASES

Asahi Group Holdings Ltd 53,100 2,393,963 18.59

Sumitomo Mitsui Trust Holdings Inc 61,400 2,335,046 18.13

SKF AB 140,000 2,041,805 15.86

Methanex Corp 16,600 749,061 5.82

BASF SE 9,700 689,776 5.36

Marathon Petroleum Corp 10,500 558,228 4.33

LANXESS AG 9,400 536,577 4.17

Alcon Inc 5,360 268,962 2.09

Quest Diagnostics Inc 2,000 179,188 1.39

Yara International ASA 4,200 165,699 1.29

Western Union Co 8,300 149,646 1.16

LG Uplus Corp 11,300 146,103 1.13

Siam Commercial Bank Pcl 33,100 142,420 1.11

Vinci SA 1,600 141,755 1.10

General Dynamics Corp 800 138,398 1.07

Imerys SA 2,600 132,236 1.03

Svenska Handelsbanken AB 11,600 126,040 0.98

Inchcape Plc 15,100 119,767 0.93

KDDI Corp 4,900 118,593 0.92

DNB ASA 6,400 117,993 0.92 * Represents 20 largest purchases made during the financial period.


37

Supplemental information Polaris Global Value UCITS Fund Material Portfolio Changes for the financial period ended 30 June 2019 (continued)

SIGNIFICANT SALES*

SECURITY NAME QUANTITY PROCEEDS % OF TOTAL

USD SALES

Xerox Corp 77,625 2,487,154 35.13

Linde Plc 14,800 2,438,789 34.44

Greencore Group Plc 380,934 982,403 13.87

Teva Pharmaceutical Industries Ltd 97,100 857,360 12.11

Alcon Inc 5,360 314,763 4.45

* Represents all trades during the financial period.

unaudited semi-annual report for the financial period … · 2019-08-28 · se – 169 79 solna...

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