Audited Financial Statements - HedgeInvest · 6/30/2016 · Hedge Invest International Funds plc...

Audited Financial Statements For the year from 1 July 2015 to 30 June 2016 Hedge Invest International Funds plc

HEDGE INVEST INTERNATIONAL FUNDS plc

CONTENTS Page

General information 1 Background 2 Investment Manager’s report 4 Remuneration disclosure 17 Directors’ report 18 Report of the Custodian to the Shareholders 21 Report of the Depositary to the Shareholders 22 Independent Auditor’s report 23 Statement of Financial Position 25 Statement of Comprehensive Income 29 Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares 31 Statement of Cash Flows 33

Notes to the financial statements 35

Schedules of investments (unaudited) 90

Other information (unaudited) 121


GENERAL INFORMATION

Board of Directors Sub-Investment Manager David McGeough (Irish resident)1

(HI Africa Opportunities Fund) Teddy Otto (Irish resident)1

Sub-Sahara Capital Management LP

John Skelly (Irish resident)1

23200 North Pima Road Francesco Rovati (Italian resident)2

Scottsdale, Arizona, 85255

United States

1Independent and non-executive. 2Non-executive.

Sub-Investment Manager

(HI Sibilla Macro Fund)

Company Secretary

Sibilla Capital Management LLC Carne Global Financial Services Limited

1700 Broadway

2nd Floor, Block E

New York, NY 10019 Iveagh Court

United States

Harcourt Road

Dublin 2 Registered Office

Ireland

2nd Floor, Block E

Iveagh Court

Administrator, Registrar and Transfer Agent Harcourt Road

J.P. Morgan Administration Services (Ireland) Limited

Dublin 2 JPMorgan House

Ireland

International Financial Services Centre

Dublin 1

Legal Advisers

Ireland

Dechert

3 George's Dock

Promoter, Investment Manager and Distributor International Financial Services Centre

Hedge Invest SGR P.A.

Dublin D01 X5X0 Via Vittor Pisani 22

Ireland

20124 Milan

Italy

Custodian/Depositary

J.P. Morgan Bank (Ireland) plc

Sub-Investment Manager

JPMorgan House (HI Numen Credit Fund)

International Financial Services Centre

Numen Capital LLP

Dublin 1 2nd Floor

Ireland

150 Brompton Road

London SW3 1HX

Independent Auditors

United Kingdom

KPMG

Chartered Accountants, Statutory Audit Firm

Sub-Investment Manager 1 Harbourmaster Place

(HI Principia Fund) International Financial Services Centre

Oakley Capital Management Limited

Dublin 1 3 Cadogan Gate

Ireland

London SW1X 0AS

United Kingdom

Swiss Representative and Paying Agent

Société Générale, Paris, Zürich Branch Talacker 50, P.O. Box 5070 CH-8021 Zürich Switzerland The prospectus, the articles of association, the Key Investor Information Documents (“KIID”), the annual and semi-annual report as well as a list containing all purchases and sales which have been made during the reporting year for the Company can be obtained free of charge from the Swiss Representative, Société Générale, Paris, Zürich Branch, Talacker 50, P.O. Box 5070, CH–8021 Zürich, Switzerland. The information contained in this report is historical and not necessarily indicative of future performance. The performance data contained in this report does not take account of any commissions or costs charged when subscribing and redeeming shares.

1


BACKGROUND Hedge Invest International Funds plc (the “Company”) is an open-ended investment company incorporated in Ireland on 10 June 2010 with variable capital organised under the laws of Ireland pursuant to the Companies Act, 2014 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011, as amended (the “UCITS Regulations”) with registration number 485407. Hedge Invest SGR P.A. was the promoter of the Company as at year ended 30 June 2016. The Company is structured as an umbrella fund in that different funds (each a “Fund”, collectively the “Funds”) thereof may be established with the prior approval of the Central Bank of Ireland (“the Central Bank”) in accordance with the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulation 2015 (the “Central Bank UCITS Regulations”). In addition, each Fund may have more than one share class allocated to it. The shares of each class allocated to a Fund will rank pari passu with each other in all respects except as to all or any of the following:

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

The assets of each Fund are separate from one another and are invested in accordance with the investment objectives, policies and restrictions applicable to each such Fund. The share capital of each Fund shall at all times equal its Net Asset Value (“NAV”). There were five Funds in operation at 30 June 2016 comprising the HI Numen Credit Fund, HI Principia Fund, HI Sibilla Macro Fund, HI Core UCITS Fund and HI Africa Opportunities Fund.

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

Fund Name

Year/Period ended 30 June 2016 Annualised

TER (%) (including performance fees)


TER (%) (excluding performance fees)





HI Numen Credit Fund EUR A Shares 1.20% 1.20% 1.27% 1.27% EUR DM Shares 1.20% 1.20% 1.24% 1.24% EUR FOF Shares 1.94% 1.94% 2.01% 2.01% EUR I Initial Shares 1.20% 1.20% 1.26% 1.26% EUR I Shares 1.70% 1.70% 1.75% 1.75% EUR M Shares 0.19% 0.19% 0.27% 0.27% EUR R Shares 1.95% 1.95% 2.01% 2.01% USD I2 Shares1 1.76% 1.76% - - USD R Shares 1.95% 1.95% 1.99% 1.99% CHF R Shares 1.95% 1.95% 2.01% 2.01% EUR D Shares 2.16% 2.16% 2.23% 2.23% USD D Shares 2.15% 2.15% 2.25% 2.25% CHF D Shares 2.14% 2.14% 2.23% 2.23% CHF DM2 Shares 1.51% 1.51% 1.60% 1.60% EUR DM2 Shares 1.50% 1.50% 1.59% 1.59% EUR I2 Shares 1.71% 1.71% 1.81% 1.81% USD DM2 Shares 1.54% 1.51% 1.56% 1.56% GBP I2 Shares 1.81% 1.71% 2.94% 1.85% GBP DM2 Shares 1.62% 1.51% 2.22% 1.74% GBP M Shares2 0.18% 0.18% - -

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

2


BACKGROUND (continued) Total expense ratio (continued)

Fund Name









HI Principia Fund EUR DM Shares 1.90% 1.39% 1.38% 1.38% EUR FOF Shares 2.86% 2.38% 2.39% 2.39% EUR I Shares 2.58% 1.87% 1.87% 1.87% EUR R Shares 2.86% 2.38% 2.38% 2.38% USD DM Shares 2.34% 1.42% 1.43% 1.43% USD I Shares1 - - 1.78% 1.78% USD R Shares 2.94% 2.38% 2.36% 2.36% CHF R Shares 2.60% 2.38% 2.40% 2.40% HI Sibilla Macro Fund EUR DM Shares 2.37% 1.41% 1.74% 1.74% EUR FOF Shares 3.70% 2.42% 2.77% 2.77% EUR R Shares 3.60% 2.42% 2.78% 2.78% USD DM Shares2 - - 1.70% 1.59% USD R Shares 3.66% 2.42% 2.74% 2.74% CHF DM Shares 3.18% 1.43% 1.78% 1.78% CHF R Shares 3.56% 2.41% 2.80% 2.80% HI Core UCITS Fund EUR DM Shares 0.89% 0.89% 1.40% 1.21% EUR I Shares 1.61% 1.61% 2.03% 1.91% EUR R Shares 2.10% 2.10% 2.47% 2.42% USD DM Shares 0.95% 0.95% 1.13% 1.13% USD I Shares3 - - 2.19% 1.92% USD R Shares 2.10% 2.10% 2.52% 2.40% CHF DM Shares 0.82% 0.82% 0.96% 0.96% HI Africa Opportunities Fund EUR DM Shares 3.78% 2.17% 2.05% 1.98% EUR FOF Shares 4.70% 2.88% 2.75% 2.72% EUR I Shares 3.46% 2.34% 2.22% 2.22% EUR D Shares 7.22% 2.91% 2.80% 2.79% USD D Shares 5.01% 3.00% 2.79% 2.79% USD DM Shares 3.97% 2.22% 2.38% 1.98% CHF D Shares4 3.93% 2.94% - -

1On 3 November 2014 the USD I Share class were fully redeemed for HI Principia Fund. 2On 6 February 2015 the USD DM Share class were fully redeemed for HI Sibilla Macro Fund. 3On 17 April 2015 the USD I Share class were fully redeemed for HI Core UCITS Fund. 4On 4 September 2015, CHF D Shares class was launched for HI Africa Opportunities Fund; therefore no comparative information is available.

3


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

HI Numen Credit Fund EUR I share class decreased by 2.78% on a net basis from the start of July 2015 to the end of the June 2016. The EUR I class is used for representative purposes. HI Numen Credit Fund - class EUR I

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

31/07/2015 118.15 -0.62% 614,088,639.46

31/08/2015 119.09 0.80% 667,311,572.97

30/09/2015 119.66 0.48% 707,166,717.31

31/10/2015 119.54 -0.10% 749,376,162.23

30/11/2015 119.74 0.17% 796,492,756.52

31/12/2015 116.55 -2.66% 819,461,781.56

31/01/2016 117.11 0.48% 883,096,281.17

29/02/2016 117.46 0.30% 962,625,758.44

31/03/2016 116.50 -0.82% 966,354,638.57

30/04/2016 115.66 -0.72% 975,289,674.59

31/05/2016 115.88 0.19% 989,091,821.03

30/06/2016 115.58 -0.26% 1,003,467,497.27

Performance of the year By month, net return of the fund’s portfolio was as follows: July 2015: -0.62%. Our core positions worked well during the month, but these returns were more than offset by portfolio hedges, driven by Greece events and shorts on European credit indexes underpinned by our view of expensive valuations of European credit (and risk assets in general) vs. the potential global threats coming from overleverage and global growth slow down. Index shorts and other hedges delivered c. -1.8% at portfolio level. All our other core strategies delivered positive returns during the month. Financials delivered c.+0.35%, driven by long positions in senior bonds of Novo Banco, covered bonds of Monte Paschi and subordinated bonds of Banca Carige. We continue to keep exposure to these banks, expecting positive catalysts from business restructuring and potential M&A activity. Corporates delivered c. +0.1%, driven by long positions in selected peripheral credits and a short position on the Spanish construction company Abengoa via CDS. Sovereigns delivered c.+0.7, thanks to our position in Greece, which we turned into a long bias during the month, and our long positions on Cyprus government bonds which are now eligible for ECB QE purchases, subject to periodic positive Troika reviews. August 2015: +0.80%. The main driver of this performance was our relative value trade in Greece/Cyprus against Italy/Spain where the positive political developments that unfolded translated into higher prices for Greek securities. Whilst still cautious Greece in the medium term, we see further upside in the near term motivated by a positive outcome in the upcoming elections and the possible inclusion of Greek debt into the QE program. Sovereigns delivered c. +0.60%. Our long exposures to M&A candidates in the financials space delivered flat returns for the month. As mentioned previously, our positioning is predicated on anticipated ownership change going into Q4 where we expect an increase in activity levels post the summer break. Corporates delivered c. +0.10% with small gains driven by our short exposure to Abengoa, whose complex and fragile balance sheet continues to remain too exposed to refinancing risk going forward. Our overall tactical trading and portfolio hedges delivered c. +0.10% as we took advantage of the volatility and traded opportunistically into and around the China driven sell-off.

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INVESTMENT MANAGER’S REPORT (continued) HI Numen Credit Fund (continued) Performance of the year (continued) September 2015: +0.48%. Three of our four constituent strategies delivered positive contributions this month driven by our Corporate Special Situations strategy where our short exposures to Volkswagen and the broader auto sector, coupled with existing positions in Abengoa and Glencore, generated the majority of returns. Despite having flirted with a structural short on the entire Auto-maker sector, we were not short into the weekend the news unfolded but capitalized on the surprising complacency and muted reaction the following Monday; the price action did not accurately reflect the gravity of the event, nor consider the large concentration risks apparent in fixed income. Net corporates delivered c. +0.25% for the portfolio. Following on from last month, our existing relative value trades in the Sovereign space continued to generate positive contributions in September post the swift and amicable outcome of the Greek Elections. We had previously identified the election as one of the catalysts that would provide further upside to Greece and, as such, increased our exposure ahead of the event by reducing our remaining Greece CDS hedges. We continue to believe Greece offers the best value for money in global fixed income right now. Net, the Macro strategy returned c. +0.25% at the portfolio level. Our long exposures to M&A candidates delivered flat performance with Novo Banco delivering a small negative contribution following the Portuguese government’s rejection of the latest bids. The sale process has been suspended until after the political election. Net, the Financials strategy delivered c.-0.2%. Our overall tactical trading and portfolio hedges delivered c. +0.2% for September where we managed to capitalize on the increased volatility. October 2015: -0.10%. The largest positive contributions this month came from our long positions in Greece and Cyprus where we have been reducing our overall exposures into the market strength. Net, the Macro strategy returned c. +0.25% for the portfolio. The very dovish message at the Oct 22nd ECB meeting unleashed an extensive rally across all risk assets, fuelling the largest monthly jump in European equities of the last six years. This rally also extended to credit and, in particular, the auto sector where we saw idiosyncratic names such as Volkswagen rally hard despite no change to their fundamental story. As such, we have maintained our short exposures to these names this month. Away from autos, our tactical long exposures to Sainsbury, RWE and Shell generated small positive contributions and we closed out some profitable positions in the event strategy space in SAB Miller, Fiat and DSM. We remain involved constructively in Mediaset, which we see as a leveraged play via its advertising revenues into the Italian recovery, against a short into Telecom Italia for which we think the full takeover by the two largest shareholders remains unlikely. Net, the overall contribution for the strategy was -0.05%. The Financials strategy delivered +0.17% for the month. We had small losses on our long exposure to the Monte Paschi covered bond, as the sector was characterised by a significant amount of new issuance offers during the month which pushed spreads in the secondary market wider. This was offset by a gain in tactical long exposure to a special situation (equity in an Italian bank undergoing a change of legal status). Our other exposures in financials (mainly long risk positions in subordinated capital of various issuers) also had a positive contribution. Our long tail hedges across short exposure to the broader equity markets mainly expressed via S&P, Eurostoxx and Ibex resulted in a negative contribution of -0.50% at the portfolio level. November 2015: +0.17%. The largest positive contributions this month came from our Financials strategy where our long exposure to both Novo Banco and a basket of diversified subordinated new issues added to performance. Net, the Financials strategy returned +0.1%. In the corporates space, we had positive contributions from our long exposure to Valeant bonds where we like the credit, and the RWE hybrids. We also successfully closed out our remaining short exposure to Abengoa and crystallized profits. These gains were offset by our short exposure to Volkswagen (expressed via CDS), Norske Skog basis and Mediaset tactical long in equity. We continue to run a short bias on specific idiosyncratic stories where fundamentals have not changed and we think the asymmetric payoff more than compensates any negative-carry drag. Net, the Corporates strategy returned +0.06%. Macro credit was the only negative contributor for the month, where gains in Greece and Cyprus were offset by losses from our short exposure to Portugal and CDS sovereign basis. Net, the Macro strategy returned -0.03% at the portfolio level. Our hedges and opportunistic trading strategy also generated positive performance in November, primarily driven by our opportunistic approach via a broader relative value trade in credit vs equities - specifically Itraxx Main vs Eurostoxx. We suspect opportunistic trading will play a larger role in the weeks ahead, as we expect volatility into year end. Net hedges and opportunistic trading generated +0.03% for November. December 2015: -2.66%. All the losses were reported in the last 24 hours of the 2015 trading year as the Central Bank of Portugal decided, in a move that shocked the investor community, to recapitalize Novo Banco by not bailing in its current shareholders, subordinated to the senior creditors bonds, but rather hitting certain senior bonds. Our fund held a position of c. 2.8% of AUM in one of the five bonds impacted, that we had to mark down from low 90’s on 29th December to mid-teens the following day, 30th December. We have no doubt the hastily taken decisions will be challenged by investors via several courts and other regulatory bodies with the aim of having the bonds repaid in full (at par plus accrued interest). Net, our Financials strategy suffered a - 2.7% loss for the month. On the Macro front, our risk management framework signalled us to cut our exposure to Greece as the government has been quite slow to implement the new program of reforms. As such, our exposure has gone from c. 10% of NAV to less than 1% at time of writing. We still think there is plenty of value but expect additional noise and volatility to give us a better entry point. Elsewhere, our continued long positioning in Cyprus has performed well and we expect further compression/convergence to Portugal in the weeks ahead. Net, the Macro strategy returned -0.2% for December. In the Corporate space, gains in BG Group and Valeant were offset by losses in VW and Norske Skog which underperformed the overall weakness evident in equities/HY. Net, the Corporates strategy returned -0.1%. Our short bias in the Financials strategy expressed mainly via large liquid index relative value trades (long Corporates vs short Financials) worked well contributing 0.35% at the Fund level, albeit not enough to compensate for the losses on Novo Banco.

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INVESTMENT MANAGER’S REPORT (continued) HI Numen Credit Fund (continued) Performance of the year (continued) January 2016: +0.48%. Throughout the month we maintained our short and liquid approach consistent with our view that we have entered an irreversible bear market across assets globally. Our net short bias was the main contributing factor to performance. Specifically, in the Financials strategy our strategic short and RV bearish decompression trade (short Financials vs long Corporates) returned +0.23% for the month. We also opportunistically traded around the “confiscated” Novo Banco bonds (we bought some at the lows and sold them higher) but expect to recuperate more of the losses in the months ahead. Overall we are notional net short single name financials c. 2.6% of NAV while our shorts are a multiple of that in liquid index and equity on financials. In the corporate space, net contributions were +0.30% for the month through a combination of outright shorts (c. +0.15%, mainly European auto sector) and the M&A bucket (c. +0.15%, via Sab Miller/Inbev and Royal Dutch Shell/British Gas now mostly closed). Our negative carry from our short positions has been funded largely by capital gains on our debt/equity trades around announced mergers. The Syngenta takeover confirms our excitement about upcoming opportunities in the event & special situation space where there seems to be more supply in dollar terms than event driven AUM can cope with. On the Macro side, return was muted at -0.05% with gains in HK dollar forward offset with small losses on our short position on BTP futures. February 2016: +0.30%. Consistent with our views, we maintained our short exposures across the board and capitalised on some, by trading opportunistically around the core positions. Following our strict risk management framework, we crystalized some profits and consolidated risk as the overall signals point to a further deterioration of the investing environment. Performance wise, the bulk of the contribution was from our large RV macro decompression trade (long German bunds vs short Italian BTPs) and our short exposures to the periphery which generated +0.3% at the fund level. Following on from January, our short exposures in Financials continued to generate positive returns last month. Specifically, the performance was led by our bearish relative value trade (long investment grade vs short financials) which continued to decompress and our short exposures via bank equity indices. Net, the Financials strategy returned +0.1% at the fund level. In the corporate space, exposures to Valeant and smaller contributions from line items led to c. -0.1% at the Fund level whilst hedges provided a muted flat contribution this month. March 2016: -0.82%. Our net short exposure to peripherals was a drag on performance, contributing around -0.35% at Fund level, mainly driven by our shorts in Spain via CDS and to a lesser extent, the smaller net short exposure to Portugal and Italy; losses were offset by our long exposure to Cyprus. Our relative value trade between financials and corporates generated around +0.15% at Fund level, as the spread between senior financials and investment grade corporates continued to decompress, supported by the newly announced ECB measures. Gains in the trades were more than offset by losses in idiosyncratic names and the M&A special situations space where we saw marginal widening of spreads. The overall impact was approximately 0.65% at Fund level. April 2016: -0.72%. Our large relative value trade where we are long corporate credit risk vs short financial credit risk continued to generate performances albeit at a slower pace. Gains from the pair along with a month end rally in Novo Banco bonds were, however, offset by aggressive tightening and short covering in idiosyncratic risk generating -0.10% at the portfolio level. In the corporate strategy, we witnessed a similar situation where positive performance from index hedges was more than offset by the rally witnessed in idiosyncratic CDS. Additionally, the negative outcome in Allergan-Pfizer post the US Treasury’s sudden change in regulation exacerbated the overall drag on performance resulting in a broader widening of US M&A spreads resulting in a net contribution of -0.95% at the portfolio level. Our macro book continued to deliver positive performance thanks to our core long risk exposure in Cyprus and to opportunistic trading around tactical shorts in Italian BTPs and Portuguese bonds. Net macro and hedges generated +0.35% at the portfolio level. May 2016: +0.19%. The bulk of performance came from the sovereign space and specifically our long exposure to Greece. We have been strategically buying the GGB strip (again), ahead of expectations of an imminent announcement regarding the inclusion of the country’s debt into the ECB’s program during the summer - far sooner than the September timeframe envisioned by most investors. Overall in the Macro space we continue to have a strategic relative value trade where we are long Greece and Cyprus versus short the rest of the periphery (Italy, Spain, and Portugal). Furthermore, in the corporate space we saw gains stemming from Norske Skog, SAB Miller and the Dell new issue that together contributed c. +0.05% at the Fund level. Meanwhile, our tactical positions on Credit Indices along with equity hedges delivered an additional 0.05% at the Fund level. The Financials strategy remained muted this month with our large relative value trade where we are long corporate credit risk versus short financial credit risk taking a pause from decompressing further. June 2016: -0.26%. We had gains from our tail risk hedges on the UK sterling (via futures and put options) that we built ahead of the UK referendum, as well as shorts on specific UK assets (UK CDS, Lloyds). However UK assets showed surprising resilience in the aftermath of the referendum, with UK CDS almost unchanged for the month. By strategy, Financials generated c.0.2% of gains for the month, mainly thanks to Lloyds and Carige equity shorts and to various CDS short risk positions on Italian banks. Corporates were overall flat during the month, we had some gains on M&A special sits and VW CDS that were basically offset by losses in legacy long credit positions. In sovereigns and trading strategies we had gains in short UK sterling positions and Spain and Portugal shorts, but gains were more than offset by long in credit indexes that we put as a relative value against UK related shorts, and losses on Greek government bonds. Overall those two strategies had a combined return of c.-0.5% for the month.

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INVESTMENT MANAGER’S REPORT (continued) HI Numen Credit Fund (continued) Market views and outlook We expect a very material underperformance of UK assets in the next few months and a very strong outperformance of EU assets, especially in credit. We expect the internal economic and political dynamics triggered by Brexit will soon force additional monetary easing from the BOE. We think it is likely that a bad combination of events can make the decrease in rates and additional QE announcements the perfect entry point for a speculative attack on the currency from large speculators. We believe Italy and France view Brexit as an opportunity to regain influence and possibly reacquire pieces of the financial and services industries. Furthermore, all the political incumbents are faced by opposition that has been vocal about the shortcomings of the EU and the Euro - especially on immigration. Italy, France and Germany, going through one of the thickest electoral calendars of recent history, will need to make sure that experimenting with referendums is a bad and costly idea. The exogenous shock of the British referendum will be used as massive leverage by Italy and most other countries to achieve economic and political concessions, unthinkable only few weeks ago. A new deal on Italian banks is almost certain to happen in our view and the template could also be used - mutatis mutandis - in Portugal. Further fiscal integration and even new spending financed by long dated ESM/EU bonds is more possible than expected. However you read the Brexit events, one prediction is becoming more certain-global growth will be lower again and deflationary forces will be unleashed.

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INVESTMENT MANAGER’S REPORT (continued) HI Principia Fund HI Principia Fund's objective is to achieve a 7%-8% return with a volatility of 6% by investing in Northern Europe stock markets with a fundamental approach. Performance review HI Principia Fund EUR FOF share class increased by 4.88% on a net basis from the start of July 2015 to the end of June 2016. The EUR FOF class is used for representative purposes. HI Principia Fund - class EUR FOF

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

31/07/2015 115.48 2.38% 135,544,703.76

31/08/2015 116.23 0.65% 134,035,693.95

30/09/2015 114.16 -1.78% 129,300,327.94

31/10/2015 117.49 2.92% 134,721,097.44

30/11/2015 117.84 0.30% 140,646,343.50

31/12/2015 120.79 2.50% 146,304,276.12

31/01/2016 118.78 -1.66% 144,104,500.17

29/02/2016 117.78 -0.84% 147,194,307.23

31/03/2016 119.63 1.57% 151,385,296.52

30/04/2016 121.70 1.73% 159,762,014.13

31/05/2016 122.67 0.79% 168,459,026.34

30/06/2016 118.29 -3.57% 177,414,179.47

Over the review period the fund rose 4.88%, while the European index fell 16.34% over the period. The European index has fallen due to a weak performance from the financial sector as well as concerns regarding the macro-economy. The HI Principia Fund has performed better due to a stock specific focus as well as measured downside protection. The positive contributors over the period came from a mixture of individual long names and short index futures. Wirecard performed well over the period after the opportunistic purchase of the position. The business is a leader in payment processing in Europe and benefits from shifts to online spend. Compugroup medical in Germany also performed well. This company provides software for doctors and is at the forefront of new initiatives to digitise medical records which should lead to multiple years of good organic growth. The negative contributors came from individual positions where our investment case was incorrect. In most cases we re-assessed the idea and disposed of shares. Exposure The HI Principia Fund engages in a focussed stock specific strategy with intensive company contact. We also monitor sentiment through a variety of indicators to position the fund offensively or defensively depending on the market opportunity. The delta and beta adjusted gross exposure of HI Principia ranged between 81% and 160% during the period. As at close 30 June 2016 the Top 5 long positions represented 23.00% of NAV and the Top 5 short equity positions amounted to 8.82% of NAV. Market views and outlook The valuation of European equities is not excessive, however earnings growth is very modest. Therefore, we don’t expect the overall market to make much progress over the coming period. We continue to focus on finding interesting companies with strong internal investment cases.

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INVESTMENT MANAGER’S REPORT (continued)

HI Sibilla Macro Fund

HI Sibilla Macro Fund utilises a discretionary global macro strategy based on fundamental, thematic and quantitative analysis to invest in a broad array of liquid financial instruments, including currencies, listed equities and equity indices, sovereign bonds and UCITS-compliant commodity-linked instruments. The fund objective is a target average annualized return of 10% with 6% volatility. Performance review HI Sibilla Macro Fund EUR FOF share class increased by 0.85% on a net basis from the start of July 2015 to the end of June 2016. The EUR FOF class is used for representative purposes. HI Sibilla Macro Fund - class EUR FOF


31/07/2015 99.85 1.54% 52,692,770.44

31/08/2015 103.24 3.39% 54,109,868.41

30/09/2015 106.19 2.87% 59,997,760.58

31/10/2015 106.00 -0.18% 63,439,966.67

30/11/2015 104.21 -1.69% 69,506,624.09

31/12/2015 106.88 2.56% 79,678,886.63

31/01/2016 101.65 -4.89% 80,161,517.60

29/02/2016 98.78 -2.82% 81,833,878.78

31/03/2016 97.88 -0.91% 89,486,979.68

30/04/2016 97.95 0.07% 90,755,758.14

31/05/2016 98.91 0.98% 92,582,343.76

30/06/2016 99.18 0.27% 89,230,617.27

Our currency positions worked well in July, in particular the Canadian Dollar, the Euro and the Swedish Krona, all short against the U.S. dollar. We also bought U.S. long-dated bond futures thinking that the severe decline in oil price and the negative surprise in Chinese growth would negatively affect global growth and inflation expectations, even if the Federal Reserve decided to raise rates in September. This trade was profitable and was closed. Our equity book also was profitable during the month with diversified positions such as precious metals, building materials and oil tankers contributing the most to performance. Stock index futures generated a minor gain as we had a hard time betting on the binary outcome of the Greek crisis. In hindsight, we should have had at least some long exposure to European equities since we thought that ultimately a solution was more likely than not. In August and September the portfolio performed very well. Our currency book was profitable overall, in particular our short positions in Asian currencies and the Israeli Shekel against the U.S. Dollar. Offsetting this, we endured some losses with our short positions in the Euro and the Swiss Franc which were covered quickly as planned when the risk-off phase started. Our tactical long positions in the EuroStoxx futures, a selected basket of U.S. equities and futures on Chinese H shares were closed quickly once credit confirmed a more meaningful deterioration and market participants lost confidence in the ability of Chinese authorities to manage the slowdown smoothly. We then proceeded to go short equity index futures with the assumption that either a correction was about to start or at least stocks would be in a much wider trading range. Despite the fact that our position size was smaller than it should have been and that we were a bit early in entering and exiting positions, nevertheless we recorded very profitable results as we were on the right side of sizeable price swings more often than not. We also bought precious metal stocks and ETF’s on weakness with a tactical approach, which was profitable as well. Lastly, we also briefly shorted U.S. treasury futures as we thought that the Federal Reserve would still be on course to raise rates and a new potential negative was emerging, the selling of China reserves to prevent a quick devaluation of the Yuan.

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HI Sibilla Macro Fund (continued)

Performance review (continued) Inflated valuation and unfriendly monetary policy led us to short S&P500 and Nasdaq futures in the September timeframe, while positioning and sentiment created an opportunity to short Nikkei futures near the top of the range. On the long side, we maintained our preference for European stocks by purchasing EuroStoxx futures. In aggregate, futures trading was very profitable. We also generated a profit from currencies, in particular by shorting Asian currencies against the U.S. dollar. These trades were temporarily hedged with other emerging market currencies and then closed as we expected a retracement after a strong move. Lastly, our equity book has been skewed toward a tactical long position, focused on the precious metal group as well as a group of names battered by forced liquidation by hedge funds. The equity book was overall profitable despite some minor paper losses in the latter. We also held a long position in Brazilian equity through an unhedged ETF for a tactical trade toward the end of the month as the currency and the equity markets reached rare oversold levels offering a good risk-reward trade. At the end of September, NYSE short interest reached the highest level since mid-2008, CBOE put-call ratios on equity and indices reached very high levels (indicating pessimism and significant hedging activity), and several sentiment indicators were also indicating near extreme levels only seen in 2008 and 2011. All combined, this suggested a potential squeeze in bearish trades. Consistent with our investment process, we cut aggressively our gross and net exposure as we put capital preservation first when things were temporarily not clear. Our long positions in the precious metals sector generated a gain as the rally in risky assets started on weak data with hopes for a dovish Federal Reserve. We somewhat underestimated the upside potential in U.S. and emerging market equities in November, assuming that the best case would be about 2,050 for the S&P500 index. We positioned the portfolio net short as the market reached what we believed was the top of a range and later covered with a loss. This included a short position in S&P500 index futures, emerging market index futures and a minor position in put options. We also expected better performance from the currency book which broke even in November as stability in the Chinese currency and more focus by market participants on the Euro currency prevented bigger moves in Asian currencies. Our small long position in a basket of precious metal stocks and ETF’s also did not work well. The group returned to the bottom of the year range following strong employment data and renewed weakness in precious metal prices. We had a strong finish to the year as the severe negative reaction after the ECB meeting in December created another long trade in European equities, which we effectuated using EuroStoxx futures. At the same time, we also initiated a short position in S&P500 futures and a long position in volatility as the S&P500 index approached 2,100 which was the top end of the range. All of these positions contributed to the gains in the last month. The Federal Reserve raised rates as expected and kept expectations for more hikes mostly inline despite several leading indicators giving a clear warning of a moderate slowdown at least. This was basically the worst possible outcome for the precious metals group, so we decided to reduce our exposure again following the small rally after the Federal Reserve board meeting. Lastly, we traded energy, metal and mining stocks on the long side tactically, expecting a mean reversion trade. This was also profitable during the month. Minor losses were generated from a long position in the Norwegian koruna, call options on the precious metal ETF, and trades on oil and Russia. Our positioning at the beginning of 2016 reflected our view of moderate, additional upside for European equities and a rebound of energy, metal, and mining stock prices after the tax selling ended, all within a view of a wide range for most assets. We were not too concerned because January is typically a month where reinvestment demand is strong, and the Renminbi, one of the factors that was worrying us, was relatively stable in the second half of December. We also had short positions in the Korean Won and Taiwanese dollar to play a possible devaluation of the Chinese and Asian currencies which also served as a good hedge for our long positions. The plan was to reduce our long positions progressively on strength, unfortunately, risk assets started a historical drop on the first day of the year opening with a big gap down and no immediate rebound. The catalyst for the move downward was a big move in the Renminbi, the largest move since August. Initially, our positions in aggregate lost the gains made in December for the most part. Unfortunately, our hedges, the short positions in the Korean Won and Taiwanese dollar, moved less than expected and we admittedly were too small in these positions given that they were not only part of a good theme but also a hedge. Things did not get easier when the Renminbi seemed to be stabilizing again and China started to intervene, a potential positive catalyst that was expected to lead to a rebound. Because of this, we increased our long positions tactically. We soon realized that some assumptions we maintained that led us to position ourselves long on a tactical basis were no longer in place, in particular the belief that the U.S. economy should not slow down meaningfully in the near term. PMI indicators globally printed figures suggesting a contraction was underway and further retail sales were weaker than expected. Our technical model also turned down pointing to a potential bear market. We weren’t strategically bullish in the first place as these positions were only tactical in nature. Our framework and discipline led us to dramatically cut our exposure without hesitation which is no easy task given that our losses more than erased our Decembers gains and we were not convinced that it was an optimal point to sell after such a big unusual drop in January. We first cut by two-thirds and then almost entirely leading us to be positioned in about 97% in cash – excluding T-bills. The sale of stock index futures turned out as well as could be expected as we sold near the highs for the month excluding the first week. Energy and metal stocks were cut at very unfavorable prices, although not at the lows.

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Performance review (continued) Most of the losses were a result of a wrong assumption that a volatility scenario similar to the one in the first half of 2008 would be appropriate this time around. Unfortunately, most risk assets, especially in Europe and Japan moved beyond our expected ranges. For example, the German DAX which in 2008 lost about 25% from its high point in the first 3 months before a 17% rebound, was down already about 30% in February 2016. Our discipline and risk management framework led us to cut entirely our long exposure, taken tactically after the bear market reached extreme levels similar to Q1 2008, even if we believed that a rebound was forthcoming. Given the strategic bearish view and the vicious, self-reinforcing nature of the latest selloff, particularly severe in financials and credit, we preferred to secure a manageable loss instead of continuing with a framework that wasn’t yet in sync with the recent market volatility. Some short term trades were profitable such as our long positions in emerging market futures and the Brazilian ETF, while we lost a small amount on our basket of long positions in U.S. equities. We traded lightly in March only taking some positions in currencies. We decided to re-enter some currency positions gradually, ones we closed earlier this year and last year. Particular ones include short positions in the Korean Won, the Singapore Dollar, The New Zealand Dollar and the Canadian Dollar. These currencies rallied significantly, something we expected as they reached severe oversold conditions earlier this year – and presented good entry points once again. We maintained a bearish view on these currencies, because we believed that significant additional easing was forthcoming and was not fully priced. These currencies would also move lower on any weakness in the Chinese currency, which we expected to resume this year. We also believed that a more dovish Federal Reserve, although it temporarily hurts these positions as it happened toward the end of March, would allow even more easing overseas. Positioning on the U.S. dollar seemed to be very light now and even short against several currencies. We expected that the U.S. dollar would make another move up this year, not because the Federal Reserve would hike rates but rather because things are worse in overseas markets than in the U.S. and this is the typical behavior of currencies in a risk-off phase. All trends started in February across all asset classes continued in April. However, we started to see some signs of exhaustion and reversal towards the end of the month. Our short positions in Asian currencies against the U.S. Dollar, which included the Singapore Dollar, the Korean Won and the New Zealand Dollar had minor paper losses as investors continued to chase positive carry trades across the board. The main driver had been the Federal Reserve’s backtracking and relatively weak U.S. economic data. We strongly believed that the U.S. dollar will rally against this basket even if the Euro and the Yen might strengthen as the Federal Reserve doesn’t hike interest rates anymore. Our long position in silver worked well, though we had been reluctant to increase it on the way up as positioning seems extreme in the precious metals group. Lastly, we shorted U.S. stock indices tactically which produced a minor gain. Our currency positions were profitable in May as the U.S. Dollar started to rally again. This happened at first because of positioning and price proximity as the U.S. Dollar retraced about 40% of the up move started in mid-2014. An additional catalyst came as the Federal Reserve started to talk about rate hikes again, one of which will probably materialize in the summer. At that point, we decided to reduce by half our long U.S. Dollar exposure in the process taking some profit. We are not convinced that tightening is the best catalyst for a stronger U.S. Dollar rally hence our more conservative positioning in the U.S. Dollar. Our approach to stock index futures remained very tactical and was profitable in May. We were short index futures early in the month and then briefly long later in the month. Although our strategic view remains bearish, we recognized that the hedge fund community was also quite bearish and not heavily invested. In particular, we have been observing that as soon as the market peaked and turned lower, both sentiment and positioning indicators swung to extreme bearishness, a contrarian bullish indicator. Shorting on market weakness failed to generate big profits, as large, long-term investors such as mutual funds, pension funds, ETFs and sovereign wealth funds have not been selling on weakness. We believe that this is mostly due to a lack of suitable alternatives given that government bonds and credit are so richly valued. Lastly, we had the opportunity to start rebuilding our positions in the precious metal group after it experienced a pretty steep correction. We profited at the beginning of June from our long position in silver and from short-term trading in equity and bond index futures. Our currency exposure generated a paper loss as part of the rally in the U.S. dollar that followed Brexit which was corrected in the last few days of the month. The pricing of Brexit and most of the first rounds effects happened faster than we expected. It took only two days for the selloff to exhaust itself and a violent V-shaped rally in risk assets to follow. Ironically, the rally was led by the U.K. stock market which made new highs for 2016, now up nearly 5% year-to-date. We expect that Brexit will not change the new world order as economic and trade arrangements would remain the same for a while longer while the uncertainty factor would be compensated by a much weaker pound sterling and new easing by the BOE. There were additional implications of the Brexit vote, positive for the most part. The most relevant is perhaps that global bond yields dropped quite a bit further because of additional easing measures and ultra-dovish language by global central banks, including in the U.S. The result is that even more global bonds have negative yields generating a shortage of investable assets which is causing mispricing of other assets. Typically risk asset prices tend to adjust quickly and overshoot on good news, while prices are very slow to price potential risks or negative outcomes.

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Exposure The HI Sibilla Macro Fund utilizes a "double-hull" approach, by making investments when fundamental and quantitative measures confirm a view. The investment team employs a top-down approach which incorporates thematic views augmented by rigorous fundamental analyses and a series of proprietary models to exploit the best opportunities and major events in the global markets. The investment team keenly focuses on detecting market conditions using a disciplined framework and dynamically allocates to the appropriate asset classes in each environment. The fund avoids crowded trades by relying on original research and independent, proprietary analysis. The average gross exposure during this period was 54% and the biggest positions were held in Long and Short Stock Index Futures. Market views & Outlook Now that we can classify Brexit as “old news” despite the fact that the news will dissipate slowly, we are left with the old positives and negatives in the global picture. The biggest positive is that central banks are extremely dovish and are trying to ease even more. The biggest negative is that global growth remains sluggish with risks on the downside given low productivity growth, increasing regulation and taxes, and high debt burdens. We also see risks in Europe, in Italy in particular, where a constitutional referendum will be held in October and chances are that a “no” vote, which is currently leading in the polls, could destabilize the government and lead to early elections. If there were early elections, the populist Eurosceptic Five Star Movement could win. Importantly, this party is in favour of a referendum which could call into question participation in the Euro currency and the European Union. Although a referendum on the European Union would probably lead to a “remain” in Italy, a referendum on the currency might lead to a “leave”, potentially generating a systemic crisis in Europe. Italy has more than two trillion of debt and redenominating that in Lira would represent a default and could represent a watershed moment like Lehman Brothers did in the U.S. We believe that these risks are not imminent but we are watching closely and hold a small short position in Italian BTP which we believe is a very asymmetric trade. Overall, our base case is that the additional easing by central banks post Brexit will generate one more leg up in risk assets in the summer. We plan to tactically and carefully play the long side first, and then the short side as we expect that a bear market will start later in the summer or early in the fall led by the problems described above. We are holding out long positions in the U.S. dollar and will tactically adjust the position size as necessary.

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HI Core UCITS Fund

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

Performance review

HI Core UCITS Fund EUR I share class decreased by 5.96% on a net basis from the start of July 2015 to the end of June 2016. The EUR I class is used for representative purposes.

HI Core UCITS Fund - class EUR I

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

31/07/2015 111.81 0.34% 49,683,580.99

31/08/2015 110.86 -0.85% 49,681,931.53

30/09/2015 109.65 -1.09% 49,107,637.70

31/10/2015 110.66 0.92% 48,870,926.37

30/11/2015 110.69 0.03% 51,108,411.73

31/12/2015 110.40 -0.26% 51,895,059.37

31/01/2016 107.95 -2.22% 51,744,205.13

29/02/2016 106.23 -1.59% 48,424,872.29

31/03/2016 106.38 0.14% 47,845,800.83

30/04/2016 106.04 -0.32% 47,140,004.86

31/05/2016 106.24 0.19% 43,011,215.13

30/06/2016 104.79 -1.36% 40,685,970.30

In the second half of 2015, volatility sharply increased in the financial markets mainly due to concerns over China and other EM economies’ slowdown, uncertainties related to the beginning of a Fed tightening cycle (the Federal Reserve announced the first rate hike since 2006 in December) and the renewed collapse of oil prices: Equity markets experienced sharp corrections, in particular during the summer period and in December, and a strong trend reversal in October, driven by a violent short covering in the energy and mining sectors; Fixed income markets were particularly volatile compared to the past, with some areas (HY in US for example) characterized by strong weakness due to the link with the oil market. The start of 2016 was even more shocking for financial markets which were characterized from January to mid-February by a double digit correction in many major indices, driven by renewed concerns about a hard landing in China (manufacturing PMI number published in early January was below 50) and by the fear of a European banking system crisis related to the burden of non-performing loans. Starting from mid-February, market participants quickly regained confidence thanks to a strong and somewhat coordinated commitment from major Central Banks to take new accommodative policies in order to fight deflation and support growth: negative trends in the markets quickly inverted and the risky asset classes staged a strong and prolonged rally that was only temporarily stopped in late June by the unexpected vote by the UK population in favor of “Leave” in the Brexit referendum. The just described scenario was very challenging for alternative strategies, which were penalized in particular by several phases of strong trend reversals and sharp deleveraging in the markets (alpha generation is extremely difficult in deleveraging and trend reversal phases). HI Core UCITS Fund slightly underperformed MSCI World Index in Local Currency (-4.64%) but outperformed DJ Euro STOXX 600 (-13.71%), demonstrating its ability to limit losses in very negative months for equity markets (August 2015, September 2015 and January 2016), while lagging during the rally driven by the sudden repositioning of market participants in October 2015 and February-March 2016.

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HI Core UCITS Fund (continued) Exposure HI Core UCITS Fund is maintaining a well-diversified portfolio consisting of 24 UCITS funds. During the last 12 months, we decided to add 4 new positions: Two event driven funds. The former is a global fund specialized in merger arbitrage with a focus on announced deals, the latter invests in special situations in Asian markets. The increase in exposure to event driven funds from 5% to 14% was justified by a positive view on the strategy, that should continue to benefit from a scenario characterized by a high level of corporate activity; a Europe-focused long/short equity manager which combines the fundamental analysis with the identification of soft and hard catalysts; a long/short equity fund specialized in European markets, managed by a hedge fund manager with long experience in bottom up selection and proven ability to protect capital in complex scenarios. On the other side, in the period from July 2015 to June 2016, we fully redeemed from 7 funds for different reasons: underperformance relative to our expectations (1 case), change of management (1 case), Brexit risk (2 funds specialized in UK) or strategy-related reasons (3 funds with high net exposure).

Breakdown by strategy 30 June 2016 30 June 2015

Long/short Equity 59.85% 63.67%

Event Driven 13.51% 5.14%

Relative Value 10.63% 9.37%

Macro-CTA 8.12% 7.02%

Long-hedged 1.81% 2.10%

Long-only Equity 2.10% 1.22%

Cash/Hedging Overlay 3.97% 11.48%

From a geographic perspective, we remain overweighted on Europe, which currently represents around 58% of the portfolio. Market views and outlook We maintain a cautious view and positioning for the second half of 2016. At the moment, markets remain in a “search for yield” phase with market participants unrelentingly looking for bonds and dividend yield stocks. This zero-interest-rates-world is creating a huge chase even for very low yields. Central Banks are at the moment back in the driving seat and they are pleased with that after the 2 big panic attacks they had this year (January/February and Brexit). For the time being, markets are fine, but we think that things could change quickly in either of 2 scenarios: 1) global growth decelerate sharply (including US); 2) Central Banks policies succeed in fighting deflation and early signs of inflation start to come out. We believe that the probability of the second scenario is higher than what markets think and price but for the time being markets seem caught in a third scenario, that is low (but still some) growth and extremely low (but still some) inflation with the alternation of risk on and risk off phases. In terms of strategies, we continue to favor long/short equity and event driven funds, which should perform the best in the reflation scenario that we expect. Considering the still high uncertainties for economies and markets, underlying managers are maintaining a cautious positioning, ready to add risks in case of higher macro visibility but very alert in case things change for the worse.

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HI Africa Opportunities Fund

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

Performance review

HI Africa Opportunities Fund EUR FOF share class decreased by 1.09% on a net basis from the start of July 2015 to the end of June 2016. The EUR FOF class is used for representative purposes. HI Africa Opportunities Fund - Class EUR FOF


31/07/2015 97.78 2.87% 30,232,422.41

31/08/2015 102.01 4.33% 33,927,129.18

30/09/2015 107.37 5.25% 36,098,099.41

31/10/2015 101.56 -5.41% 34,704,675.15

30/11/2015 101.72 0.16% 35,192,325.17

31/12/2015 102.25 0.52% 35,683,414.20

31/01/2016 102.54 0.28% 36,142,788.39

29/02/2016 101.00 -1.50% 36,733,941.38

31/03/2016 96.52 -4.44% 35,120,395.08

30/04/2016 91.89 -4.80% 33,423,254.10

31/05/2016 91.70 -0.21% 33,575,652.27

30/06/2016 94.01 2.52% 34,362,715.98

The fund’s performance was slightly negative against a steep decline in African equities driven by declining commodity prices and depreciating currencies. The DJ Titans Africa index in Euros was -16.6% during the same period. The South African TOP40 Index also declined -17%. Nigerian equities declined -37.2% and the Kenyan market was -15.3%. Egypt’s CASE Index declined 28%. The top contributor to the fund’s performance were its long positions in African gold mining companies which performed strongly from January to June 2016. Several select short positions in South Africa telecoms, and cement also added to performance. Offsetting this positive performance was a negative return from short position in diversified mining and energy companies whose share prices also appreciated strongly during the same period. These short positions caused the negative performance from February to April 2016. The fund has exited these short positions and is now net long with less than 10% exposure to the mining sector. Exposure For most of the year the fund had a net short position in Africa with short positions in mining, energy and South African banks. In May the fund closed out these positions and became much more positive on the outlook for Africa. At the end of June the fund was 35% net long with a gross exposure of 54%. The liquidity of the fund is currently very high with 46% of the assets in cash. The top long positions at the end of June are MTN (Pan African telecom), Equity Bank (Kenyan Bank), Growthpoint Property (South African property) and the Johannesburg Stock Exchange. The largest short position at the end of June is a South African investment bank. The fund also has short positions in companies exposed to the oversupply in the African cement market.

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INVESTMENT MANAGER’S REPORT (continued) HI Africa Opportunities Fund

Market views and outlook We are getting more positive on investment opportunities in Africa. Since the peak in 2014 the MSCI Africa ex South Africa index has declined 40%. Valuations are attractive and the risk of currency depreciation is much lower. Currencies may actually be a source of large positive returns. Yields on local government debt are also some of the highest in the world and are attracting inflows, especially in South Africa. While the outlook is more positive, the growth outlook for Africa and the world is lower. The fund is focused on innovative companies with strong business models and management that can achieve above average growth in a highly competitive slow growth world. We also prioritize companies with strong cash flows, growing dividend yields and the ability to reinvest capital at high returns. Many of the fund’s investments are in leading South African companies that are expanding throughout Africa, such as Shoprite’s super market chains. We are also positive on Kenya. Our view is that Kenya will continue to be the best performing country in Africa. It is making positive investments in transportation and communication infrastructure and improving the governance of the country. Hedge Invest SGR P.A. October 2016

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Remuneration Disclosure by Hedge Invest International Funds plc (the “Fund”) Introduction The Fund is an investment company with variable capital and authorised by the Central Bank of Ireland as a self-managed undertaking for collective investment in transferable securities (“UCITS”) pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No. 352 of 2011) as amended (the “UCITS Regulations”). The Remuneration Policy The Fund has established a remuneration policy (the “Remuneration Policy”) in accordance with the requirements of the UCITS Regulations and the Central Bank UCITS Regulations and has made an assessment of the nature, scale and complexity of its business in line with the UCITS Regulations and the Central Bank UCITS Regulations, and has determined that overall, its business activity is relatively low risk when compared to other fund structures. The Fund has not appointed an external management company and therefore the directors of the Fund (the “Directors”) are directly responsible for the operating and organisational requirements of the UCITS Regulations, as well as ensuring that the Fund meets the requirements of the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the “Central Bank UCITS Regulations”) and related guidance issued thereunder. It is the Fund’s policy to maintain remuneration arrangements that (i) are consistent with and promote sound and effective risk management, (ii) do not encourage risk-taking that is inconsistent with the risk profile of the Fund, and (iii) do not impair compliance with the Fund’s duty to act in the best interests of its shareholders. The Remuneration Policy is designed to ensure that any relevant conflicts of interest can be managed appropriately at all times. The Remuneration Policy is reviewed by the Board at least once per year. In reviewing the Remuneration Policy, the Board will consider whether the overall remuneration system:

• operates as intended (in particular, that all agreed plans/programmes are being covered, that the remuneration pay-outs are appropriate relative to the complexities of the operation of the Fund) and that the risk profile, long-term objectives and goals of the Fund are adequately reflected; and

• is compliant with the UCITS Regulations and the Central Bank UCITS Regulations and any other relevant guidance. Determination of Identified Staff The Fund shall apply the provisions of the Remuneration Policy for its ‘Identified Staff’ being those categories of staff, including senior management, risk takers, control functions and any employee receiving total remuneration that falls within the remuneration bracket of senior management and risk takers whose professional activities have a material impact on the risk profile of the Fund. The following persons are considered to fall within the definition of “Identified Staff’:

• any member of the Board. Remuneration of Identified Staff The Fund does not intend to offer performance-related remuneration to its Identified Staff. The Fund does not make contributions towards the pensions of Identified Staff. The Fund pays the independent Board member, including the Board members who are also employees of Carne Global Financial Services Limited, a fixed fee per annum. A number of factors are included in determining the fee paid including the size and risk profile of the Fund and the current market rate for directorships of this nature. In the event that the Fund decides to offer performance-related remuneration in the future, it will adhere to the UCITS Regulations, the Central Bank UCITS Regulations and ESMA’s Level 2 Guidance in relation to Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014. Disclosure The Fund discloses, without prejudice to confidentiality and data protection provisions, relevant information on the Remuneration Policy in its annual report, prospectus and key investor information documentation.

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DIRECTORS’ REPORT The Directors present their report together with the audited financial statements of the Company for the year ended 30 June 2016. Review of principal activities and future developments The Company was approved by the Central Bank on 30 May 2010, incorporated on 10 June 2010 and commenced operations on 10 June 2011. The results of operations for the year are set out in the Statement of Comprehensive Income on page 29. The HI Numen Credit Fund launched on 10 June 2011. The Fund is registered in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherland, Norway, Spain, Sweden, Switzerland and the United Kingdom with further passporting throughout Europe planned. The Fund is also registered in Singapore as a Foreign Restricted Scheme and in Bahamas as a Non-Bahamas Based Investment Fund. The HI Principia Fund launched on 31 October 2012. The Fund is registered in Austria, France, Germany, Italy, Luxembourg, Spain, Switzerland and the United Kingdom with further passporting throughout Europe planned. The HI Sibilla Macro Fund launched on 22 November 2013. The Fund is registered in Italy, Luxembourg, Spain, Switzerland and the United Kingdom with further passporting throughout Europe planned. The HI Core UCITS Fund launched on 27 June 2014. The Fund is registered in Italy, Luxembourg and Switzerland. The HI Africa Opportunities Fund launched on 6 March 2015. The Fund is registered in Italy, Luxembourg and Switzerland. The business and future developments are reviewed in detail in the Investment Manager’s Report on pages 4 to 16. Dividends Each of the share classes in each Fund are accumulating share classes, therefore no dividends will be declared. The income and profits will be accumulated and reinvested in each Fund on behalf of the Shareholder. Accounting Records The measures taken by the Directors to secure compliance with the Company’s obligation to keep adequate accounting records are the use of appropriate systems and procedures. In this regard J.P. Morgan Administration Services (Ireland) Limited have been appointed for the year for the purpose of maintaining adequate accounting records. Accordingly, the accounting records are kept at JPMorgan House, International Financial Services Centre, Dublin 1, Ireland. Directors The Directors of the Company are as follows: David McGeough (Irish resident)

Teddy Otto (Irish resident) John Skelly (Irish resident) Francesco Rovati (Italian resident) Directors’ Interests None of the Directors, except Francesco Rovati, or the Company Secretary held shares in the Company at any time during the year. Francesco Rovati, together with his wife, owns 149.42 shares (2015: 149.42 shares) of EUR R class in HI Principia Fund, 148.24 shares (2015: 148.24 shares) of EUR R class in HI Numen Credit Fund, 393.22 shares (2015: 393.22 shares) of EUR R class in HI Core UCITS Fund and 277.73 shares (2015: nil) of EUR DM class in HI Sibilla Macro Fund. Teddy Otto and John Skelly, Directors of the Company, are employees of Carne Global Financial Services Limited, the Company Secretary. Francesco Rovati, a Director of the Company, is a managing member of Hedge Invest SGR P.A., the promoter and Investment Manager.

Independent Auditors The Company’s Independent Auditors, KPMG, have indicated their willingness to continue in office in accordance with Section 383(2) of the Companies Act, 2014.

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DIRECTORS’ REPORT (continued) Corporate Governance The Board of Directors has assessed the measures included in the voluntary Corporate Governance Code for Collective Investment Schemes and Management Companies as published by Irish Funds in December 2011 (the “IF Code”). The Board has adopted all corporate governance practices and procedures in the IF Code with effect from 1 January 2013 and continued to comply with the Code for the year ended 30 June 2016.

Audit Committee The Company has elected not to put an audit committee in place for the Company for the following reasons: (a) the nature, scale and complexity of the Company; (b) the internal control and risk management systems relating to the financial reporting process already in place at the Company; and (c) the resources available to the Company and the resources and expertise of the various third parties engaged to support the Company. Significant events during the year On 7 September 2015, an updated Prospectus was issued for the inclusion of additional markets to the list of the eligible markets of the Company. On 7 September 2015, a new supplement for HI Numen Credit Fund was issued for the creation of the new SEK D, SEK DM2, SEK I2, NOK D, NOK DM2 and NOK I2 Shares classes. On 7 September 2015, a new supplement for HI Principia Fund was issued for the creation of the new EUR M and GBP M Shares classes and with a minor update to the Investment Policy. On 7 September 2015, a new supplement for HI Sibilla Macro Fund was issued for the updated Prospectus. On 7 September 2015, a new supplement for HI Africa Opportunities Fund was issued for the updated Prospectus. On 26 November 2015 a new supplement for HI Core UCITS Fund was issued for the change of the dealing frequency from every Friday to every business day. The following share classes launched during the year ended 30 June 2016:

HI Numen Credit Fund Launch date

GBP M Shares 31 July 2015 USD I2 Shares 19 February 2016 HI Africa Opportunities Fund CHF D Shares 4 September 2015 Subsequent events There were no significant events post year end date. Risk management The Company’s exposure to risk is disclosed in more detail in the Financial Statements and associated risk notes on pages 38 to 56. Transactions with connected parties Regulation 41 (1) of the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the “Central Bank UCITS Regulations”) states that any transactions carried out with UCITS by a promoter, manager, depository, investment adviser and/or associated or group companies of these (“connected parties”) must be carried out as if negotiated at arm’s length and must be in the best interests of the shareholders. The Board of Directors are satisfied that there are arrangements (evidenced by written procedures) in place to ensure that the obligations set out in Regulation 41(1) of the Central Bank UCITS Regulations are applied to all transactions with connected parties and the Board of Directors is satisfied that transactions with connected parties entered into during the year complied with the obligations set out in this paragraph.

19


DIRECTORS’ REPORT (continued)

Directors’ Compliance Statement

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

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

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

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

STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE DIRECTORS’ REPORT AND THE FINANCIAL STATEMENTS The Directors are responsible for preparing the Directors’ Report and financial statements, in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU) and applicable law. Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the assets, liabilities and financial position of the Company and of its changes in net assets attributable to holders of redeemable participating shares for that year. In preparing the financial statements, the Directors are required to: • select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

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

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

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

Director 24 October 2016

Director 24 October 2016

20


REPORT OF THE CUSTODIAN TO THE SHAREHOLDERS We have enquired into the conduct of Hedge Invest International Funds plc (“the Company”) for the period from 1 July 2015 to 20 March 2016 in our capacity as Custodian to the Company. This report including the opinion has been prepared for and solely for the shareholders in the Company as a body, in accordance with Regulations 34 and 47 of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulation 2011 (the “UCITS Regulations”) and with effect from 1 November 2015, the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the “Central Bank UCITS Regulations”) and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown. Responsibilities of the Custodian Our duties and responsibilities are outlined in Regulations 34 and 47 of the UCITS Regulations. One of those duties is to enquire into the conduct of the Company in each annual accounting period and report thereon to the shareholders. Our report shall state whether, in our opinion, the Company has been managed in that year, in accordance with the provisions of the Company’s Memorandum and Articles of Association, the UCITS Regulations and the Central Bank UCITS Regulations. It is the overall responsibility of the Company to comply with these provisions. If the Company has not complied we, as Custodian must state why this is the case and outline the steps which we have taken to rectify the situation. Basis of Custodian Opinion The Custodian conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its duties as outlined in the UCITS Regulations and to ensure that, in all material respects, the Company has been managed: (i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the provisions of its

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

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

Articles of Association, the UCITS Regulations, the Central Bank UCITS Regulations; and (ii) otherwise in accordance with the provisions of the Memorandum and Articles of Association, the UCITS Regulations and the Central

Bank UCITS Regulations. For and on behalf of ________________________ J.P. Morgan Bank (Ireland) plc JPMorgan House, International Financial Services Centre Dublin 1 Ireland 24 October 2016

21


REPORT OF THE DEPOSITARY TO THE SHAREHOLDERS We have enquired into the conduct of Hedge Invest International Funds plc (“the Company”) for the period from 21 March 2016 to 30 June 2016 in our capacity as Depositary to the Company. This report including the opinion has been prepared for and solely for the shareholders in the Company as a body, in accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities) UCITS Regulations, 2011, as amended by the European Communities (Undertakings for Collective Investment in Transferable Securities) (Amendment) UCITS Regulations, 2016 (the “UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1))(Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the “Central Bank UCITS Regulations”) and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown. Responsibilities of the Depositary Our duties and responsibilities are outlined in the UCITS Regulations. One of those duties is to enquire into the conduct of the Company in each annual accounting period and report thereon to the shareholders. Our report shall state whether, in our opinion the Company has been managed in that period, in accordance with the provisions of the Company’s Memorandum and Articles of Association, the UCITS Regulations and the Central Bank UCITS Regulations. It is the overall responsibility of the Company to comply with these provisions. If the Company has not complied we, as Depositary must state why this is the case and outline the steps which we have taken to ensure the situation is rectified. Basis of Depositary Opinion The Depositary conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its duties as outlined in the UCITS Regulations and to ensure that, in all material respects, the Company has been managed (i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the provisions of its

Memorandum and Articles of Association, the UCITS Regulations and the Central Bank UCITS Regulations; and

(ii) otherwise in accordance with the provisions of the Company’s Memorandum and Articles of Association, the UCITS Regulations and the Central Bank UCITS Regulations.

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

Articles of Association, the UCITS Regulations and the Central Bank UCITS Regulations; and (ii) otherwise in accordance with the provisions of the Memorandum and Articles of Association, the UCITS Regulations and the

Central Bank UCITS Regulations. For and on behalf of ________________________ J.P. Morgan Bank (Ireland) plc JPMorgan House, International Financial Services Centre Dublin 1 Ireland 24 October 2016

22


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HEDGE INVEST INTERNATIONAL FUNDS PLC We have audited the English language version of the financial statements of Hedge Invest International Funds plc (“the Company”) for the year ended 30 June 2016 which comprise the Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares, Statement of Cash Flows, the related notes and the Total Expense Ratios on pages 2 and 3. The financial reporting framework that has been applied in their preparation is Irish law and International Financial Reporting Standards (“IFRS”) as adopted by the European Union. Our audit was conducted in accordance with International Standards on Auditing (“ISAs”) (UK & Ireland). Opinions and conclusions arising from our audit 1 Our opinion on the financial statements is unmodified In our opinion the financial statements: • give a true and fair view of the assets, liabilities and financial position of the Company as at 30 June 2016 and of its changes in net

assets attributable to holders of redeemable participating shares for the year then ended;

• have been properly prepared in accordance with IFRS as adopted by the European Union; and • have been properly prepared in accordance with the requirements of the Companies Act, 2014 and 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 Investments in Transferable Securities) Regulation 2015.

2 Our conclusions on other matters on which we are required to report by the Companies Act, 2014 are set out below We have obtained all the information and explanations which we consider necessary for the purposes of our audit. In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited and the financial statements are in agreement with the accounting records. In our opinion the information given in the Directors’ Report is consistent with the financial statements. 3 We have nothing to report in respect of matters on which we are required to report by exception ISAs (UK & Ireland) require that we report to you if, based on the knowledge we acquired during our audit, we have identified information in the annual report that contains a material inconsistency with either that knowledge or the financial statements, a material misstatement of fact, or that is otherwise misleading. In addition, the Companies Act, 2014 requires us to report to you if, in our opinion, the disclosures of directors’ remuneration and transactions required by sections 305 to 312 of the Act are not made. Basis of our report, responsibilities and restrictions on use As explained more fully in the Statement of Directors’ Responsibilities set out on page 20, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and otherwise comply with the Companies Act 2014. Our responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and ISAs (UK & Ireland). Those standards require us to comply with the Financial Reporting Council’s Ethical Standards for Auditors. An audit undertaken in accordance with ISAs (UK & Ireland) involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors’ Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Whilst an audit conducted in accordance with ISAs (UK & Ireland) is designed to provide reasonable assurance of identifying material misstatements or omissions it is not guaranteed to do so. Rather the auditor plans the audit to determine the extent of testing needed to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements does not exceed materiality for the financial statements as a whole. This testing requires us to conduct significant audit work on a broad range of assets, liabilities, income and expense as well as devoting significant time of the most experienced members of the audit team, in particular the engagement partner responsible for the audit, to subjective areas of the accounting and reporting.

23


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HEDGE INVEST INTERNATIONAL FUNDS PLC (continued) Basis of our report, responsibilities and restrictions on use (continued) Our report is made solely to the Company’s members, as a body, in accordance with section 391 of the Companies Act, 2014. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Ivor Conlon for and on behalf of KPMG Chartered Accountants, Statutory Audit Firm 1 Harbourmaster Place International Financial Service Centre Dublin 1 24 October 2016

24


STATEMENT OF FINANCIAL POSITION

Note

HI Numen Credit Fund

as at 30 June 2016 EUR ’000

HI Principia Fund as at 30 June 2016

EUR ’000



HI Core UCITS Fund

as at 30 June 2016 EUR’000



Company Total as at 30 June 2016

EUR ’000 ASSETS

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

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

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

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

Receivable for shares subscribed - - - - - -

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

Financial assets at fair value through profit or loss: 15

Collective investment schemes

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

- Investment in collective investment schemes1 - - - 37,070 - 28,593

Transferable securities

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

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

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

Money Market instruments

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

Financial derivative instruments

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

- Unrealised gains on credit default swaps 14,615 - - - - 14,615

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

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

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

- Unrealised gains on options purchased 1,747 - 13 - - 1,760

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

Total assets 1,049,983 189,677 90,821 41,966 36,255 1,400,225

1Cross holdings within the company have been eliminated on consolidation. See Note 14.

25


STATEMENT OF FINANCIAL POSITION (continued)

Note




EUR ’000



HI Core UCITS Fund





EUR ’000 LIABILITIES

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

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

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

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

Financial liabilities at fair value through profit or loss: 15


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

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

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

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

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

- Unrealised losses on options written (603) - - - - (603)

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

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

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

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

10 1,003,467 177,403 89,212 40,662 34,323 1,336,590

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

Director Director 24 October 2016 24 October 2016

26



Note




EUR ’000



HI Core UCITS Fund





EUR ’000 ASSETS

Cash and cash equivalents 28,432 10,128 3,491 4,256 10,745 57,052

Margin cash 3,247 3,416 9,246 - - 15,909

Collateral cash 29,326 18,050 4,933 - 2,741 55,050

Receivable for investments sold 1,170 - 836 - 229 2,235

Receivable for shares subscribed 7,586 - - - - 7,586

Other receivables 6,064 175 88 73 17 6,417

Financial assets at fair value through profit or loss: 15

Collective investment schemes

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

- Investment in collective investment schemes1 - - - 44,063 - 36,267

Transferable securities

- Investment in bonds 384,083 - 5,392 - 8,975 398,450

- Investment in equities - 94,422 6,080 - 864 101,366

- Investment in exchange traded notes - - 337 978 - 1,315

Money Market instruments

- Investment in time deposits 90,000 15,200 22,025 - 11,000 138,225


- Unrealised gains on contracts for difference 18 1,617 - - 388 2,023

- Unrealised gains on credit default swaps 24,501 - - - - 24,501

- Unrealised gains on forward currency contracts 316 302 259 11 - 888

- Unrealised gains on futures contracts 66 325 88 - - 479

- Unrealised gains on interest rate swaps 1,256 - - - - 1,256

- Unrealised gains on options purchased 891 119 - - - 1,010

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

Total assets 576,956 143,754 52,775 49,381 34,959 850,029

1Cross holdings within the company have been eliminated on consolidation. See Note 14.

27



Note




EUR ’000



HI Core UCITS Fund





EUR ’000 LIABILITIES

Bank overdraft (838) (36) - - - (874)

Payable for investments purchased (750) (1,353) (441) (497) (5,500) (8,541)

Payable for shares redeemed (2,242) (207) - (9) (9) (2,467)

Other payables 9 (1,025) (444) (235) (146) (104) (1,954)

Financial liabilities at fair value through profit or loss: 15


- Unrealised losses on contracts for difference (61) (4,371) (59) - (162) (4,653)

- Unrealised losses on credit default swaps (9,127) - - - - (9,127)

- Unrealised losses on forward currency contracts (42) (550) (497) (40) (54) (1,183)

- Unrealised losses on futures contracts - - (8) - - (8)

- Unrealised losses on interest rate swaps (1,231) - - - - (1,231)

- Unrealised losses on options written - (50) - - - (50)

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

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

(15,316) (7,011) (1,240) (692) (5,829) (30,088)

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

10 561,640 136,743 51,535 48,689 29,130 819,941

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

28


STATEMENT OF COMPREHENSIVE INCOME

Note


for the year ended 30 June 2016

EUR ’000

HI Principia Fund for the year ended

30 June 2016 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR ’000

HI Africa Opportunities Fund for the year ended

30 June 2016 EUR’000

Company Total


EUR ’000 Operating income

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

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

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

- Income from liquidity instruments - - 51 - - 51

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

- Other income - 3 12 267 1 283

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

5 (29,653)

8,860

1,351

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

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

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

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

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

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

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

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

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

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

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

(39,180)

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

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

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

(39,190)

6,012

(1,137)

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

1Gains on cross investments within the company have been eliminated on consolidation. See Note 14.

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


29


STATEMENT OF COMPREHENSIVE INCOME (continued)

Note



EUR ’000


30 June 2015 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR ’000

HI Africa Opportunities Fund1

for the period from 6 March 2015 to

30 June 2015 EUR’000

Company Total for the year ended

30 June 2015 EUR ’000

Operating income

- Bond interest income 12,898 - 15 - - 12,913

- Dividend income - 1,806 23 - 45 1,874

- Income from contracts for difference - 68 - - - 68

- Income from liquidity instruments - - 4 - - 4

- Swap interest income 2,876 - - - - 2,876

- Other income 3 1 2 140 - 146

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

5 4,330

(3,681)

1,956

2,436 (1,247) 4,036

Total revenue 20,107 (1,806) 2,000 2,576 (1,202) 21,917

Contracts for difference expense (302) (267) (29) - (33) (631)

Investment management fee 6 (6,660) (2,915) (868) (473) (148) (11,064)

Performance fee 6 (105) - - (73) (4) (182)

Swap interest expense (5,644) - - - - (5,644)

Transaction costs 7 (873) (125) (74) - - (1,072)

Operating expenses 8 (1,482) (641) (369) (354) (132) (2,978)

Total operating expenses (15,066) (3,948) (1,340) (900) (317) (21,571)

Net operating profit/(loss) 5,041 (5,754) 660 1,676 (1,519) 346

Increase/(decrease) in net assets attributable to holders of redeemable participating shares before tax

5,041

(5,754) 660 1,676 (1,519) 346

Withholding tax - (361) (6) - (4) (371)

Increase/(decrease) in net assets attributable to holders of redeemable participating shares

5,041

(6,115)

654

1,676 (1,523) (25)

1HI Africa Opportunities Fund launched on 6 March 2015. 2Gains on cross investments within the company have been eliminated on consolidation. See Note 14. There are no gains or losses arising in the year/period other than those dealt within the Statement of Comprehensive Income. In arriving at the results of the financial year/period, all amounts relate to continuing operations.


30


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



EUR ’000


30 June 2016 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR ’000

HI Africa Opportunities Fund for the year ended

30 June 2016 EUR’000

Company Total


EUR ’000 Net assets attributable to holders of redeemable participating shares at the beginning of the year

561,640 136,743

51,535 48,689 29,130

819,941


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

Share transactions:

Proceeds from issue of redeemable participating shares1 666,422 63,757 57,788 17,540 10,179 814,955

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

Increase/(decrease) in net assets resulting from share transactions

481,017 34,648 38,814 (5,219) 5,827 554,356

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

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


1Cross subscriptions within the company have been eliminated. See Note 14.

31


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

HI Numen

Credit Fund for the year ended

30 June 2015 EUR ’000


30 June 2015 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR ’000



30 June 2015 EUR’000

Company Total for the year ended

30 June 2015 EUR ’000

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

398,574 161,106

46,180 44,144 -

643,266


5,041 (6,115) 654 1,676 (1,523) (25)

Share transactions:

Proceeds from issue of redeemable participating shares2 308,867 35,244 17,214 15,956 30,709 406,690

Payments on redemption of redeemable participating shares (150,842) (53,492) (12,513) (13,087) (56) (229,990)

Increase/(decrease) in net assets resulting from share transactions

158,025 (18,248) 4,701 2,869 30,653 176,700

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

561,640 136,743 51,535 48,689 29,130 819,941

1HI Africa Opportunities Fund launched on 6 March 2015. 2Cross subscriptions within the company have been eliminated. See Note 14. The accompanying notes form an integral part of these financial statements.

32


STATEMENT OF CASH FLOWS*



EUR ’000


30 June 2016 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR ’000



EUR’000

Company Total for the

year ended 30 June 2016

EUR ’000 Cash flows from operating activities:


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

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

(Increase)/decrease in operating assets:

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

Other receivables and prepayments 4,185 (4,558) (960) (2,473) (357) (4,163)

Increase/(decrease) in operating liabilities:

Financial liabilities at fair value through profit or loss 20,664 (2,050) 750 (30) (63) 19,271

Other payables 11,374 7,349 (381) 642 (3,839) 15,145

Net cash (used in)/provided by operating activities (254,302) (22,422) (32,505) 2,220 (12,426) (318,704)

Cash flows from financing activities

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

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

Net cash provided by/(used in) financing activities 481,017 34,648 38,814 (5,219) 5,827 554,356

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

Cash, cash equivalents, and pledged cash, beginning of year 60,167 31,558 17,670 4,256 13,486 127,137

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

*The indirect method has been applied in the preparation of the statement of cash flows for the Company.

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

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

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


33


STATEMENT OF CASH FLOWS* (continued)

HI Numen

Credit Fund for the year ended

30 June 2015 EUR ’000


30 June 2015 EUR ’000



EUR ’000

HI Core UCITS Fund


EUR ’000



30 June 2015 EUR ’000

Company Total for the

year ended 30 June 2015

EUR ’000 Cash flows from operating activities:


5,041 (6,115) 654 1,676 (1,523) (25)

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

(Increase)/decrease in operating assets:

Financial assets at fair value through profit or loss (175,537) 9,506 2,798 (2,620) (21,227) (186,022)

Other receivables and prepayments 13,260 291 (824) (8) (246) 12,473

Increase/(decrease) in operating liabilities:

Financial liabilities at fair value through profit or loss 5,231 4,383 259 19 216 10,108

Other payables (23,770) (7,105) 340 490 5,604 (24,441)

Net cash (used in)/provided by operating activities (175,775) 960 3,227 (443) (17,176) (187,907)

Cash flows from financing activities

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

308,076 35,244 17,214 15,956 30,709 407,199

Payments for redemption of redeemable participating shares during the year/period

(149,061) (53,298) (12,513) (13,078) (47) (227,997)

Net cash provided by/(used in) financing activities 159,015 (18,054) 4,701 2,878 30,662 179,202

Net (decrease)/increase in cash and cash equivalents (16,760) (17,094) 7,928 2,435 13,486 (10,005)

Cash and cash equivalents, beginning of year/period 76,927 48,652 9,742 1,821 - 137,142

Cash, cash equivalents and pledged cash, end of year/period 60,167 31,558 17,670 4,256 13,486 127,137

1HI Africa Opportunities Fund launched on 6 March 2015.

*The indirect method has been applied in the preparation of the statement of cash flows for the Company

Supplementary information Interest received 16,963 1 13 4 - 16,981

Dividends received - 1,803 22 5 45 1,875

Interest paid (6,043) (338) (32) (3) (43) (6,459)


34


NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016 1. Basis of preparation a) Statement of compliance The financial statements for the year ended 30 June 2016 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”). b) Basis of measurement The financial statements have been prepared on the historical cost basis except for financial assets and financial liabilities at fair value through profit or loss and derivative financial instruments which are measured at fair value. c) Functional and presentation currency The financial statements are presented in Euro, which is the functional currency of the Company reflecting the fact that the denomination of the redeemable shares of the Company and all the subscriptions and redemptions of the redeemable shares are denominated in Euro, except CHF DM2 Shares, CHF D Shares, CHF DM Shares, CHF R Shares, USD I2 Shares, USD R Shares, USD DM2 Shares, USD D Shares, USD DM Shares, GBP I2 Shares, GBP DM2 Shares and GBP M Shares which are denominated in Swiss Franc, US Dollar and British Pound respectively. d) Use of estimates and judgements The preparation of the financial statements in conformity with IFRS as adopted by the EU requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. 2. Significant accounting policies a) Interest income and expense recognition Interest income and expense are recognised in the Statement of Comprehensive Income using the effective interest method. b) Expenses Expenses are accounted for on an accruals basis and are charged to the Statement of Comprehensive Income. c) Transaction costs Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial instrument. When a financial asset or financial liability is recognised initially, it is measured at its fair value through profit or loss. Transaction costs that are directly attributable to the acquisition or issue of the financial assets or financial liability are expensed immediately in the Statement of Comprehensive Income. d) Cross holdings within Company

Any Funds which have cross-investments with other Funds within the Company will be disclosed and identified separately within the relevant Fund’s schedules of investments. The HI Core UCITS Fund contains holdings in other Funds within the Company as of 30 June 2016. The total management fees charged to the Company as well as to each related fund concerned may not exceed the rates of management fees indicated in note 6 (a) HI Core UCITS Fund disclosures. No sale of securities and redemption of shares fee shall be charged in the case of a cross-investment within the Company. For the purposes of producing the combined financial statements, investments by Funds within the Company in the shares of other Funds within the Company, also known as ‘Cross Investments’, must be eliminated in order to prevent double counting. In preparing the combined Statement of Financial Position, the value of the financial assets at fair value through profit and loss of each of the Funds as recognised on each respective Fund’s Statement of Financial Position is reduced by the value of its Cross Investment as at 30 June 2016. In preparing the combined Statement of Comprehensive Income, the net gain/(loss) on financial assets at fair value through profit or loss is reduced by the amount of realised and unrealised gains and losses earned during the year on Cross Investments. In preparing the combined Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares, the proceeds from issue of redeemable participating shares is reduced by the amount of cross subscriptions and redemptions within the Company during the year.

35


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 2. Significant accounting policies (continued) e) Investments Classification The Company classifies its investments into two categories: financial assets and liabilities held for trading and those at fair value through profit or loss. The category of financial assets held for trading are acquired or incurred principally for the purpose of trading in the short term. The category of financial assets through profit or loss comprises financial instruments designated by the directors, at inception, as being at fair value through profit or loss. Financial assets and financial liabilities designated at fair value through profit or loss at inception are those that are managed and their performance evaluated on a fair value basis in accordance with the documented investment strategy. Recognition/derecognition Purchases and sales of investments are accounted for on the day the trade transaction takes place. Financial assets are derecognised when the rights to receive cashflows from the investments have expired or the risks and rewards of ownership have all been substantially transferred. Financial liabilities are derecognised when the obligation specified in the contract is discharged, cancelled or expires. Realised gains and losses on disposals are calculated using the average cost method and are reflected as net gains/(losses) on financial assets/liabilities at fair value in the Statement of Comprehensive Income. Measurement Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value. Gains and losses arising from changes in the fair value of the financial assets or financial liabilities are presented in the Statement of Comprehensive Income in the year in which they arise. Transaction costs are expensed in the Statement of Comprehensive Income. (i) Fair value estimation In accordance with the transitional provisions of IFRS 13 ‘Fair value measurement’, the Company has applied the definition of fair value as set out below. The preparation of financial statements requires the Directors to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amount of income and expenses during the period. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets and liabilities traded in active markets (such as publicly traded derivatives and trading securities) are based on quoted market price at the close of trading on the reporting date. The Company has applied IFRS 13 to utilise the last traded market price for both financial assets and financial liabilities when the last traded price falls within the bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread, management will decide the point within the bid-ask spread that is most representative of fair value. Cash shall be valued at face value (together with accrued interest to the relevant Dealing Day). All other securities and assets, including those for which reliable quotations or pricing services are not readily available, will be valued by the relevant Investment Manager at probable realisation value which must be estimated with care and in good faith. Liquidity instruments Time deposits are short-term highly liquid investments valued at par and are readily convertible to known amounts of cash. The time deposits are disclosed at fair value through profit or loss in the Schedules of Investments. Forward currency contracts A forward currency contract is an agreement between two parties to buy or sell a foreign currency at a future date, at a negotiated rate, the purpose of which is to manage currency risk arising from the Funds’ investment activities. The unrealised gain or loss on open forward currency contracts is calculated by reference to the difference between the contracted rate and the rate to close out the contract as at the year end date. Unrealised gains and losses are included in the Statement of Financial Position. Realised gains or losses are recognised on the maturity of a contract as the difference between the rate that the contract was entered into and the closing spot rate at the settlement date of the contract. Realised gains or losses and changes in unrealised gains or losses are recognised in the Statement of Comprehensive Income.

36


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 2. Significant accounting policies (continued) e) Investments (continued) Futures contracts A futures contract is a contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. The changes in value of open futures contracts are recognised as unrealised gains or losses by marking-to-market the value of the contract at the year end date. Changes in the futures contracts’ value are settled daily with the exchange by paying or receiving a variation margin amount. When the contract is closed, the difference between the proceeds from (or cost of) the closing transactions and the original transaction is recorded in the net gains/(losses) on financial assets/(liabilities) at fair value through profit or loss in the Statement of Comprehensive Income. Credit default swaps A credit default swap is a financial contract whereby one party (the protection buyer) pays a fee in return for a payment by the protection seller contingent on the occurrence of a credit event with respect to a referenced entity. The upfront payment received by the Funds, as protection seller, is recorded as a realised gain on the Funds’ books. An upfront payment made by the Funds, as protection buyer, is recorded as a liability in the Funds’ books. Interest payments received or paid by the Funds on swaps are recorded as swap interest income/(expense) and reflected on the Statement of Comprehensive Income. Contracts are fair valued daily and the change, if any, is recorded as a net gain/(loss) on financial assets/(liabilities) at fair value through profit or loss. Payments received or paid as a result of a credit event or termination of the contract are recognised as realised gains or losses. When the contract is closed, the realised gains and losses are recorded in the Statement of Comprehensive Income. Interest rate swaps Interest rate swaps outstanding at the end of the period are valued at their intrinsic value at the period end date. The discounted value of each single inflow and outflow of interest and capital is calculated at the period end. The net difference arising on this calculation is included as the "mark to market" value of the swap and is recorded as an unrealised gain/(loss) in the Statement of Comprehensive Income. Realised gains or losses on interest rate swaps are included in the Statement of Comprehensive Income. Options Options are financial instruments that convey the right, but not the obligation, to engage in a future transaction on some underlying security or in a futures contract. When the Funds purchase an option, an amount equal to the premium paid is recorded as an investment and is subsequently adjusted to the current fair value of the option purchased. The premium on purchased put options exercised is subtracted from the proceeds of the sale of the underlying security or foreign currency in determining the realised gain or loss and is recorded in the Statement of Comprehensive Income. The premium on purchased call options exercised is added to the cost of the securities or foreign currency purchased. Premiums paid for the purchase of the options which expire unexercised are treated as realised losses. Unrealised gains or losses on options are included in assets or liabilities on the Statement of Financial Position and movements are dealt with through the Statement of Comprehensive Income. Swaptions Swaptions are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaption is granting or buying the right to enter into a previously agreed upon swap agreement at any time before the expiration of the option. In purchasing and writing swaptions, the Fund bears the market risk of an unfavourable change in the price of the underlying swap or the risk that the Fund may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written swaption could result in the Fund purchasing a swap at a price different from the current market value. The Funds execute transactions in over-the-counter swaptions. Contracts for difference A contracts for difference (“CFD”) is an agreement between the Funds and a CFD counterparty to pay or receive the change in the value of an underlying security.

37


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 2. Significant accounting policies (continued) e) Investments (continued) Contracts for difference (continued) At each valuation point, the difference in price between the opening price of the CFD and the market price of the underlying equity is recorded as the fair value (unrealised gain or loss) of the CFD in the Statement of Financial Position. When the CFD is closed, the difference between the opening price of the CFD and the closing price is recorded as a realised gain or loss in the Statement of Comprehensive Income. The interest and dividends received or paid are recorded in the Statement of Comprehensive Income as income from contracts for difference or contracts for difference expense. f) Offsetting Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is a legally enforceable right to set-off the recognized amounts and there is an intention to settle on a net basis, or realize the assets and settle the liability simultaneously. See note 3 (c) for further details. g) New standards issued but not yet effective for the financial year beginning 1 July 2015 and not early adopted: IFRS 9, “Financial instruments” (“IFRS 9”) (issued 12 November 2009, revised in October 2010, November 2013 and July 2014). IFRS 9 is effective for annual periods beginning on or after 1 January 2018 and has not been early adopted by the Company. IFRS 9 has not been endorsed by the EU to date. EU endorsement is expected in the fourth quarter of 2016. IFRS 9 replaces most of the guidance of IAS 39, “Financial instruments: Recognition and measurement” that relates to classification and measurement of financial instruments. The completed IFRS 9 (as revised in 2014) contains the requirements for a) the classification and measurement of financial assets and financial liabilities, b) impairment methodology and c) general hedge accounting. IFRS 9 establishes three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income and fair value through profit or loss. The basis of classification depends on the entity’s business model and the contractual cash-flow characteristics of the financial asset. For financial liabilities, there were no changes to classification and measurement except for the recognition of changes in the entity’s own credit risk in other comprehensive income, for liabilities designated at fair value through profit or loss. Based on the initial assessment, this standard is not expected to have a material impact on the Company. At the date of approval of these financial statements, there are a number of Standards, Amendments and Interpretations that are in issue but not yet effective. The Company has reviewed all new standards and have decided that they do not have an effect on the financial statements.

h) New standards, amendments and interpretations effective for financial periods beginning 1 July 2015

There are no new standards, amendments and interpretations effective for financial periods beginning 1 July 2015 that would be expected to have a significant impact on the Company.

3. Financial Instruments and associated risks

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

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

a) Market risk

(i) Price risk

Price risk arises mainly from uncertainty about the future prices of financial instruments held, it represents the potential loss the Company may suffer through holding market positions in the face of price movements. Where allowable under the investment objective and policy of the Company, the Investment Manager mitigates the risk of excessive exposure to any particular type of security or issuer.

The Funds are exposed to price risk arising from their investment in collective investment schemes, corporate bonds, government bonds, exchange traded funds, exchange traded notes, equities, CFD, credit default swaps, interest rate swaps, forward currency contracts, futures contracts, options and swaptions. For HI Numen Credit Fund and HI Sibilla Macro Fund, the Investment Manager uses a risk management technique known as absolute value-at-risk (“VaR”) to assess the Funds’ market risk to seek to ensure that the use of Financial Derivative Instruments (“FDI”) by the Funds is within regulatory limits. The VaR on the portfolio of each Fund shall not exceed 4.47% in any one day.

38


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 3. Financial Instruments and associated risks (continued)

a) Market risk (continued)

(i) Price risk (continued) The Investment Manager uses a Monte Carlo model for HI Numen Credit Fund and a Parametric model for HI Sibilla Macro Fund generated by Bloomberg’s Portfolio and Risk Analytics solution (“PORT”) application. The confidence level of the Funds shall be 99% and the holding period shall be one trading day. The historical observation period will not be less than one year, however, a shorter observation period may be used when appropriate. The VaR for the year ended 30 June 2016 based on 99% confidence level over one trading day is outlined in the following table:

Name of the Fund

30 June 2016 %

Average %

Maximum %

Minimum %

Level of leverage1

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

1This figure is based on the sum of the notionals of the derivatives as at 30 June 2016. The VaR for the year ended 30 June 2015 based on 99% confidence level over one trading day was outlined in the following table:

Name of the Fund

30 June 2015 %

Average %

Maximum %

Minimum %

Level of leverage1

HI Numen Credit Fund 0.31 0.31 0.50 0.14 503% HI Sibilla Macro Fund 0.59 0.52 1.59 0.19 178%

1This figure is based on the sum of the notionals of the derivatives as at 30 June 2015. For HI Principia Fund, HI Core UCITS Fund and HI Africa Opportunities Fund the Investment Manager uses the commitment approach. The below sensitivity analysis explains the effect of changes in the market price on the performance of the Funds. At 30 June 2016, had the fair value of investments increased by 5%, with all other variables held constant, the net asset attributable to holders of redeemable participating shares would have increased as set out in the table below:

Sensitivity analysis: Price risk 30 June 2016

EUR ‘000 HI Principia Fund 1,568 HI Core UCITS Fund 1,908 HI Africa Opportunities Fund 634

A weakening of the Euro by 5% would have an equal but opposite effect on the financial statements amounts shown, on the basis that all other variables remain constant. At 30 June 2015, had the fair value of investments increased by 5%, with all other variables held constant, the net asset attributable to holders of redeemable participating shares would have increased as set out in the table below:

Sensitivity analysis: Price risk 30 June 2015

EUR ‘000 HI Principia Fund 2,220 HI Core UCITS Fund 2,252 HI Africa Opportunities Fund (376)

A weakening of the Euro by 5% would have an equal but opposite effect on the financial statements amounts shown, on the basis that all other variables remain constant.

39



a) Market risk (continued) (ii) Currency risk Foreign currency risk is the risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company may invest in securities denominated in currencies other than its reporting currency. Consequently, the Company is exposed to risks that the exchange rate of its reporting currency relative to other currencies may change in a manner which has an adverse effect on the value of the portion of the Company’s assets which are denominated in currencies other than its own currency. The Company invested in forward currency contracts to manage foreign currency risk. The Funds enter into forward currency contracts in order to hedge against foreign currency exchange rate risk of non-EUR denominated classes. The realised or unrealised gains or losses are allocated to the hedged share classes. The details of the contracts in place at the year-end date are disclosed in the Schedules of Investments. The table below outlines the exposure to foreign currency risk as at 30 June 2016: Foreign currency exposure

Monetary exposure

Non-monetary exposure

Gross foreign

currency exposure

Forward currency

contracts at portfolio

level

Net foreign

currency exposure

Forward currency contracts

(excluding share class

hedging)

Net foreign currency exposure

(excluding share class hedging

forwards) HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

CHF 82 - 82 21,241 21,323 - 82

GBP 2,046 160,889 162,935 (125,909) 37,026 (340,642) (177,707)

HKD (252) - (252) (179,371) (179,623) (179,371) (179,623)

JPY 383 - 383 - 383 - 383

USD 14,275 23,916 38,191 226,106 264,297 83,160 121,351 Total exposure to foreign currencies

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

Base currency: EUR 264,674 537,882 802,556 57,505 860,061 447,233 1,249,789

Net asset value 281,208 722,687 1,003,895 (428) 1,003,467 10,380 1,014,275

HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

CHF 1,756 15,631 17,387 (15,283) 2,104 (17,314) 73

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

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

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

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

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

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

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

HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

CAD 155 - 155 - 155 - 155

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

JPY 28 - 28 - 28 - 28

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

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

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

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


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

40


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

Monetary exposure


Gross foreign

currency exposure

Forward currency


level

Net foreign

currency exposure



hedging)



forwards) HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

CHF - - - 9 9 - -

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

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

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

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

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

EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

CHF - - - 9 9 - -

EGP (135) 482 347 - 347 - 347

GBP 555 25 580 - 580 - 580

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

SEK - 39 39 - 39 - 39

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

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

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

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

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

The table below outlines the exposure to foreign currency risk as at 30 June 2015: Foreign currency exposure

Monetary exposure


Gross foreign

currency exposure

Forward currency


level

Net foreign

currency exposure



hedging)



forwards) HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

CHF 46 - 46 17,923 17,969 768 814

GBP 299 - 299 38,158 38,457 - 299

USD (1,388) 18,191 16,803 28,637 45,440 (13,008) 3,795 Total exposure to foreign currencies

(1,043) 18,191 17,148 84,718 101,866 (12,240) 4,908

Base currency: EUR 72,079 472,139 544,218 (84,444) 459,774 12,199 556,417

Net asset value 71,036 490,330 561,366 274 561,640 (41) 561,325

41



Monetary exposure


Gross foreign

currency exposure

Forward currency


level

Net foreign

currency exposure



hedging)



forwards) HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

CHF 7,400 20,406 27,806 (26,009) 1,797 (28,235) (429)

DKK - - - - - - -

GBP 2,012 11,440 13,452 (13,389) 63 (13,388) 64

SEK 1 - 1 - 1 - 1

USD 3,025 - 3,025 1,875 4,900 (2,576) 449 Total exposure to foreign currencies

12,438 31,846 44,284 (37,523) 6,761 (44,199) 85


Net asset value 30,054 106,937 136,991 (248) 136,743 (146) 136,845

HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

CAD 92 - 92 (4,339) (4,247) (4,339) (4,247)

CHF - - - (4,500) (4,500) (8,706) (8,706)

GBP (146) 14 (132) - (132) - (132)

JPY (7) - (7) - (7) - (7)

SEK - - - (4,348) (4,348) (4,348) (4,348)

USD 9,128 18,997 28,125 (2,296) 25,829 (3,320) 24,805 Total exposure to foreign currencies

9,067 19,011 28,078 (15,483) 12,595 (20,713) 7,365


Net asset value 17,998 33,775 51,773 (238) 51,535 (272) 51,501

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

CHF - - - 1,425 1,425 - -

GBP - 5,826 5,826 (5,879) (53) (5,879) (53)

JPY - 1,341 1,341 (1,337) 4 (1,337) 4

USD 1 978 979 820 1,799 (488) 491 Total exposure to foreign currencies

1 8,145 8,146 (4,971) 3,175 (7,704) 442


Net asset value 3,677 45,041 48,718 (29) 48,689 (39) 48,679

42



Monetary exposure


Gross foreign

currency exposure

Forward currency


level

Net foreign

currency exposure



hedging)



forwards) HI Africa Opportunities Fund

EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

KES 1 - 1 - 1 - 1

USD 229 9,713 9,942 (2,228) 7,714 (4,495) 5,447

ZAR 3 126 129 - 129 - 129 Total exposure to foreign currencies

233 9,839 10,072 (2,228) 7,844 (4,495) 5,577


Net asset value 8,119 21,065 29,184 (54) 29,130 (51) 29,133 For HI Principia Fund, HI Core UCITS Fund and HI Africa Opportunities Fund, the Investment Manager uses the commitment approach. The below sensitivity analysis explains the effect of changes in the exchange rates on the performance of the Funds. At 30 June 2016, had the Euro weakened by 5% in relation to all currencies, the net assets attributable to holders of redeemable participating shares would have increased as set out in the table below.

Sensitivity analysis: currency risk 30 June 2016

EUR ‘000 HI Principia Fund 116

HI Core UCITS Fund 104

HI Africa Opportunities Fund 1,087 A strengthening of the Euro by 5% would have an equal but opposite effect on the financial statements amounts shown, on the basis that all other variables remain constant. At 30 June 2015, had the Euro weakened by 5% in relation to all currencies, the net assets attributable to holders of redeemable participating shares would have increased as set out in the table below.

Sensitivity analysis: currency risk 30 June 2015

EUR ‘000 HI Principia Fund 4

HI Core UCITS Fund 22

HI Africa Opportunities Fund 278 A strengthening of the Euro by 5% would have an equal but opposite effect on the financial statements amounts shown, on the basis that all other variables remain constant.

43


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 3. Financial Instruments and associated risks (continued) a) Market risk (continued) (iii) Interest rate risk Exposure to interest rate risk arises when the portfolio consists of financial instruments whose value is influenced by changes in interest rates. The Company is exposed to interest rate risk specifically through its investment in corporate bonds, government bonds, credit default swaps and interest rate swaps. The table below outlines the exposure to interest rate risk as at 30 June 2016:

Less than

1 month 1 to 3

months 3 months to 1 year

Greater than

1 year

Non-interest bearing

Assets/Liabilities

Total HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Assets

Cash and cash equivalents 88,431 - - - - 88,431

Margin cash 20,846 - - - - 20,846

Collateral cash 177,605 - - - - 177,605 Financial assets at fair value through profit or loss:

Investment in bonds 4,500 - 586,302 100,301 - 691,103

Investment in equities - - - - 25,701 25,701

Contracts for difference - - - - 2,221 2,221

Credit default swaps - 118 124 14,373 - 14,615

Interest rate swaps - - - 459 - 459

Forward currency contracts - - - - 14,032 14,032

Options purchased - - - - 1,747 1,747

Swaptions purchased - - - - 2,588 2,588

Receivables - - - - 10,635 10,635

Total Assets 291,382 118 586,426 115,133 56,924 1,049,983

Liabilities Financial liabilities at fair value through profit or loss:

Contracts for difference - - - - (922) (922)

Credit default swaps - - - (12,583) - (12,583)

Forward currency contracts - - - - (14,460) (14,460)

Futures contracts - - - - (918) (918)

Options written - - - - (603) (603)

Swaptions written - - - - (1,639) (1,639)

Payables - - - - (15,391) (15,391)

Total Liabilities - - - (12,583) (33,933) (46,516)

44


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 3. Financial Instruments and associated risks (continued) a) Market risk (continued) (iii) Interest rate risk (continued) The table below outlines the exposure to interest rate risk as at 30 June 2016 (continued):

Less than

1 month 1 to 3


Greater than

1 year


Assets/Liabilities

Total HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Assets


Margin cash 6,860 - - - - 6,860



Investment in time deposits 27,150 - - - - 27,150


Forward currency contracts - - - - 2,247 2,247

Receivables - - - - 4,733 4,733

Total Assets 70,934 - - - 118,743 189,677


Contracts for difference - - - - (2,102) (2,102)

Forward currency contracts - - - - (731) (731)


Payables - - - - (9,353) (9,353)

Total Liabilities - - - - (12,274) (12,274)

HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Assets


Margin cash 8,093 - - - - 8,093


Investment in bonds - - 5,405 12,907 - 18,312

Investment in equities - - - - 353 353

Investment in time deposits 34,662 4,747 6,501 - - 45,910

Forward currency contracts - - - - 370 370

Options purchased - - - - 13 13

Receivables - - - - 1,884 1,884

Total Assets 58,641 4,747 11,906 12,907 2,620 90,821


Forward currency contracts - - - - (1,097) (1,097)


Payables - - - - (295) (295)


45


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 3. Financial Instruments and associated risks (continued)


(iii) Interest rate risk (continued) The table below outlines the exposure to interest rate risk as at 30 June 2016 (continued):

Less than

1 month 1 to 3


Greater than

1 year


Assets/Liabilities

Total HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

Cash and cash equivalents 1,257 - - - - 1,257 Financial assets at fair value through profit or loss:

Investment in collective investment schemes

- - - - 37,070 37,070

Investment in exchange traded funds - - - - 626 626

Investment in exchange traded notes - - - - 467 467

Receivables - - - - 2,546 2,546

Total Assets 1,257 - - - 40,709 41,966



Payables - - - - (1,294) (1,294)


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

Assets



Investment in bonds 5,401 - - - - 5,401


Investment in time deposits - 7,500 - - - 7,500

Contracts for difference - - - - 172 172

Forward currency contracts - - - 151 151

Receivables - - - - 603 603

Total Assets 12,293 7,500 - - 16,462 36,255

Liabilities

Bank overdraft (5) - - - - (5) Financial liabilities at fair value through profit or loss:



Payables - - - - (1,774) (1,774)

Total Liabilities (5) - - - (1,927) (1,932)

46




(iii) Interest rate risk (continued) At 30 June 2016, with all other variables held constant, the following table represents the potential increase/(decrease) in net assets attributable to holders of redeemable participating shares should changes in market interest rates cause the value of the interest bearing securities to increase/(decrease) by the following basis points amounts:

Sensitivity analysis: interest rate risk

Basis points 100

EUR ‘000 HI Africa Opportunities Fund 2

HI Principia Fund and HI Core UCITS Fund have limited exposure to interest rate risk and therefore an interest rate sensitivity analysis has not been presented. The table below outlines the exposure to interest rate risk as at 30 June 2015:

Less than

1 month 1 to 3


Greater than

1 year


Assets/Liabilities

Total HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Assets


Margin cash 3,247 - - - - 3,247


Investment in bonds - - 216,149 167,934 - 384,083

Investment in time deposits - 60,000 30,000 - - 90,000


Credit default swaps - - 12,488 12,013 - 24,501

Interest rate swaps - - - 1,256 - 1,256


Futures contracts - - - - 66 66


Receivables - - - - 14,820 14,820 Total Assets 61,005 60,000 258,637 181,203 16,111 576,956

Liabilities



Credit default swaps - - - (9,127) - (9,127)

Interest rate swaps - - - (1,231) - (1,231)


Payables - - - - (4,017) (4,017)

Total Liabilities (838) - - (10,358) (4,120) (15,316)

47


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 3. Financial Instruments and associated risks (continued) a) Market risk (continued) (iii) Interest rate risk (continued) The table below outlines the exposure to interest rate risk as at 30 June 2015 (continued):

Less than

1 month 1 to 3


Greater than

1 year


Assets/Liabilities

Total HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Assets


Margin cash 3,416 - - - - 3,416



Investment in time deposits 15,200 - - - - 15,200






Total Assets 46,794 - - - 96,960 143,754

Liabilities


Contracts for difference - - - - (4,371) (4,371)

Options written - - - - (50) (50)


Payables - - - - (2,004) (2,004)

Total Liabilities (36) - - - (6,975) (7,011)

HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Assets


Margin cash 9,246 - - - - 9,246


Investment in exchange traded notes - - - - 337 337

Investment in bonds - - - 5,392 - 5,392


Investment in time deposits 4,039 6,100 11,886 - - 22,025




Total Assets 21,709 6,100 11,886 5,392 7,688 52,775

48





Less than

1 month 1 to 3


Greater than

1 year


Assets/Liabilities

Total HI Sibilla Macro Fund (continued) EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000





Payables - - - - (676) (676)


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

Assets

Cash and cash equivalents 4,256 - - - - 4,256 Financial assets at fair value through profit or loss:

Investment in collective investment schemes

- - - 44,063 44,063

Investment in exchange traded notes - - - 978 978

Forward currency contracts - - - 11 11

Receivables - - - 73 73

Total Assets 4,256 - - 45,125 49,381



Payables - - - - (652) (652)

Total Liabilities - - - - (692) (692)

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

Assets



Investment in bonds 8,975 - - - - 8,975

Investment in equities - - - - 864 864

Investment in time deposits - - 11,000 - - 11,000



Total Assets 22,461 - 11,000 - 1,498 34,959

49





Less than

1 month 1 to 3


Greater than

1 year


Assets/Liabilities

Total HI Africa Opportunities Fund (continued)

EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000




Payables - - - - (5,613) (5,613)

Total Liabilities - - - - (5,829) (5,829) At 30 June 2015, with all other variables held constant, the following table represents the potential increase/(decrease) in net assets attributable to holders of redeemable participating shares should changes in market interest rates cause the value of the interest bearing securities to increase/(decrease) by the following basis points amounts:

Sensitivity analysis: interest rate risk

Basis points 100

EUR ‘000 HI Africa Opportunities Fund 6

HI Principia Fund and HI Core UCITS Fund have limited exposure to interest rate risk and therefore an interest rate sensitivity analysis has not been presented. b) Liquidity risk Liquidity risk is the risk that the Company will encounter in realising assets or otherwise raising funds to meet financial commitments. Where Shareholders redeem their shareholding in the Funds of the Company for an amount which exceeds the amount of cash or other liquid assets immediately available to fund such redemptions, the Funds may, subject to the provision of the Prospectus of the Company, decide to restrict redemption or, seek to liquidate additional assets to fund the redemption. This may limit or otherwise affect the ability of each Fund to operate or manage investment positions and strategies within its portfolio and restrict or materially affect investment performance and returns. The Funds hold debt securities, equities, CFD, credit default swaps, interest rate swaps, collective investment schemes, exchange traded funds, exchange traded notes, time deposits, options, swaptions, forward currency contracts and futures contracts as at 30 June 2016.

50


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 3. Financial Instruments and associated risks (continued) b) Liquidity risk The tables below outline the Company’s liquidity risk exposure for its financial liabilities as at 30 June 2016:

Liquidity analysis Less than

1 month 1-3


Greater than 1 year Total

HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Payable for investments purchased 12,551 - - - 12,551

Other payables 2,840 - - - 2,840 Net assets attributable to redeemable participating shareholders

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

Credit default swaps - - - 12,583 12,583

Contracts for difference - - - 922 922

Forward currency contracts 12,264 - 2,196 - 14,460

Futures contracts - 918 - - 918

Options written 603 - - - 603

Swaptions written 1,639 - - - 1,639

HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000


Payable for shares redeemed 62 - - - 62

Other payables 439 - - - 439 Net assets attributable to redeemable participating shareholders

177,403 - - - 177,403

Contracts for difference - - - 2,102 2,102

Forward currency contracts 731 - - - 731


HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000


89,212 - - - 89,212

Forward currency contracts 189 908 - - 1,097


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

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


40,662 - - - 40,662


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

Bank overdraft 5 - - - 5



34,323 - - - 34,323



51


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 3. Financial Instruments and associated risks (continued) b) Liquidity risk (continued)

The tables below outline the Company’s liquidity risk exposure for its financial liabilities as at 30 June 2015:

Liquidity analysis Less than

1 month 1-3


Greater than 1 year Total

HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000


Payable for investments purchased 750 - - - 750

Payable for shares redeemed 2,242 - - - 2,242

Other payables 1,025 - - - 1,025 Net assets attributable to redeemable participating shareholders

561,640 - - - 561,640

Credit default swaps - - - 9,127 9,127

Interest rate swaps - - - 1,231 1,231



HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000





136,743 - - - 136,743

Contracts for difference - - - 4,371 4,371


Options written - 50 - - 50

HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Payable for investments purchased 441 - - - 441


51,535 - - - 51,535




HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Payable for investments purchased 497 - - - 497



48,689 - - - 48,689


HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Payable for investments purchased 5,500 - - - 5,500



29,130 - - - 29,130

Contracts for difference 162 - - - 162


52


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 3. Financial Instruments and associated risks (continued) c) Credit risk Credit risk is the risk that an issuer of securities will be unable to pay principal and interest when due or that the value of the security will suffer because investors believe the issuer is less able to pay. The Investment Manager manages credit risk by pursuing a policy of diversification amongst issuers and counterparties and by monitoring the creditworthiness of individual issuers and counterparties in accordance with the investment objective, policies and restrictions applicable to the Funds. The Funds’ investments in bonds expose them to the default risk of the bond issuer with regards to interest or principal payments. All of the cash of HI Numen Credit Fund is held by Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Bank (Ireland) plc, JP Morgan Chase Bank NA., Morgan Stanley, Société Générale and UBS as at 30 June 2016. All of the cash of HI Principia Fund is held by BNP Paribas, JP Morgan Bank (Ireland) plc, JP Morgan Chase Bank NA. and UBS as at 30 June 2016. All of the cash of HI Sibilla Macro Fund is held by BNP Paribas, Citigroup, Goldman Sachs, JP Morgan Bank (Ireland) plc and JP Morgan Chase Bank NA. as at 30 June 2016. All of the cash of the HI Core UCITS Fund is held by JP Morgan Bank (Ireland) plc as at 30 June 2016. All of the cash of the HI Africa Opportunities Fund is held by BNP Paribas, Goldman Sachs, JP Morgan Bank (Ireland) plc and JP Morgan Chase Bank NA. as at 30 June 2016. Credit ratings of debt securities or credit or reference entities represent the rating agencies' opinions regarding their credit quality and are not a guarantee of future credit performance of such securities. Rating agencies attempt to evaluate the safety of principal and interest payments and do not evaluate the risks of fluctuations in market value. The Depositary does not have a credit rating, however, its parent company J.P. Morgan Chase Bank N.A. has a long-term credit rating of A+. The following table details the counterparties and their long term credit ratings as at 30 June 2016 and 30 June 2015:

Counterparties Ratings as at 30 June 2016

Ratings as at 30 June 2015

Barclays Bank A- BBB

BNP Paribas Securities Services A A+

Citigroup BBB+ A-

Credit Agricole A A

Credit Suisse A A

Deutsche Bank BBB+ BBB+

Goldman Sachs A A J.P. Morgan Chase Bank N.A A+ A+

Lloyds TSB A A

Morgan Stanley BBB+ A-

Société Générale A A

Sumitomo Mitsui Trust Bank Limited A A+

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

HI Numen Credit Fund EUR ‘000 A 2,962

AA 210,794

B- 28,828

BB+ 29,666

BB- 53,994

BBB+ 200,350

BBB- 155,165

CCC+ 4,331

CCC- 5,013

Total 691,103

53


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

HI Principia Fund EUR ‘000 A-1 27,150

Total 27,150

HI Sibilla Macro Fund EUR ‘000 AAA 18,312

A-1 45,910

Total 64,222

HI Africa Opportunities Fund EUR ‘000 AA+ 5,401

A-1 7,500

Total 12,901 HI Core UCITS Fund held no bonds or time deposits as at 30 June 2016 (30 June 2015: Nil). The following table details the credit rating profile of the corporate, convertible and government bonds and time deposits held by the Funds as at 30 June 2015:

HI Numen Credit Fund EUR ‘000 A-1 90,000

AA- 2,189

B 3,630

B- 25,354

B+ 98,105

BB 9,633

BB+ 5,237

BBB 90,585

BBB- 98,820

BBB+ 4,360

CCC 454

CCC- 34,442

NR 11,274

Total 474,083

HI Principia Fund EUR ‘000 A-1 15,200

Total 15,200

HI Sibilla Macro Fund EUR ‘000 AA+ 5,392

A- 337

A-1 22,025

Total 27,754

54


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 3. Financial Instruments and associated risks (continued) c) Credit risk (continued) The following table details the credit rating profile of the corporate, convertible and government bonds and time deposits held by the Funds as at 30 June 2015 (continued):

HI Africa Opportunities Fund EUR ‘000 AA+ 8,975

A-1 11,000

Total 19,975 The Company has adopted the amendment to IFRS 7 Disclosures - Offsetting Financial Assets and Financial Liabilities, and amendments to IAS 32, which requires entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Financial Position or subject to an enforceable master netting arrangement or similar agreement. Transactions involving derivative financial instruments are usually with counterparties with whom the Company has signed International Swaps and Derivatives Association (“ISDA”) agreements. ISDA agreements provide for the net settlement of contracts with the same counterparty in the event of default. The counterparty credit risk associated with derivative financial assets subject to ISDA agreements is eliminated only to the extent that financial liabilities due to the same counterparty will be settled after the assets are realised. The exposure to counterparty credit risk reduced by ISDA agreements may change significantly within a short period of time as a result of transactions subject to the arrangement. The corresponding assets and liabilities have not been offset on the Statement of Financial Position. The following table is a summary of the Company's derivatives inclusive of potential netting arrangements. For financial reporting purposes, the Company does not offset financial assets and liabilities that are subject to master netting arrangements or similar agreements in the Statement of Financial Position. Gross value of derivatives inclusive of potential netting arrangements as at 30 June 2016:

Counterparty Gross value of

derivative assets

Gross value of derivative liabilities

Collateral payable to

the fund Collateral

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

Total 3,844 (2,921) - 18,259 19,182 HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 BNP Paribas 13 - - 760 773 Citibank 370 (1,097) - 4,546 3,819 Goldman Sachs - (217) - - (217)

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

55


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


derivative assets



the fund Collateral

pledged Net HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Credit Agricole - (10) - - (10)

Total - (10) - - (10)

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

BNP Paribas 86 (58) - 299 327

Goldman Sachs 86 - - 239 325

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

Total 323 (153) - 1,338 1,508

Gross value of derivatives inclusive of potential netting arrangements as at 30 June 2015:


derivative assets



the fund Collateral

pledged Net HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000

Barclays 2,371 (565) - 1,900 3,706

BNP Paribas 1,331 (969) - 5,040 5,402 Citigroup 306 (2,862) - 3,490 934 Deutsche Bank 1,256 (1,231) - - 25 Goldman Sachs 14,634 (1,277) - - 13,357 J.P. Morgan 4,190 (773) - 11,895 15,312 Morgan Stanley 681 (1,235) - 2,761 2,207 Nomura 70 (10) - 400 460 Société Générale 916 (1,539) - 3,840 3,217 UBS 1,293 - - - 1,293

Total 27,048 (10,461) - 29,326 45,913 HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 BNP Paribas 1,416 (565) - 5,679 6,530 J.P. Morgan 302 (550) - 2,576 2,328 UBS 645 (3,856) - 9,795 6,584

Total 2,363 (4,971) - 18,050 15,442 HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 BNP Paribas - (59) - 760 701 Citigroup 259 (497) - 4,173 3,935 Goldman Sachs 88 (8) - - 80

Total 347 (564) - 4,933 4,716 HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Credit Agricole 11 (40) - - (29)

Total 11 (40) - - (29) HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 BNP Paribas 388 (162) - 2,391 2,617 J.P. Morgan - (54) - 350 296

Total 388 (216) - 2,741 2,913

56


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 4. Collateral The total value of cash collateral pledged by the HI Numen Credit Fund, as at 30 June 2016, was EUR 177,605,924 (30 June 2015: EUR 29,325,504). The total value of cash collateral pledged by the HI Principia Fund, as at 30 June 2016, was EUR 18,258,749 (30 June 2015: EUR 18,049,715). The total value of cash collateral pledged by the HI Sibilla Macro Fund, as at 30 June 2016, was EUR 5,305,659 (30 June 2015: EUR 4,933,398). The total value of cash collateral pledged by the HI Africa Opportunities Fund, as at 30 June 2016, was EUR 1,338,539 (30 June 2015: EUR 2,740,414). For further information on who the collateral of each Fund is held with, please refer to the table on pages 55 to 56.

57


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 5. Net gains/(losses) on financial assets/liabilities at fair value through profit or loss

Hedge Invest International Funds plc




30 June 2016



HI Core UCITS Fund


HI Africa

Opportunities Fund for the year ended

30 June 2016

Company Total

for the year ended

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

Realised gains on transferable securities and collective investment schemes

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

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

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

Unrealised (losses)/gains on transferable securities and collective investment schemes

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

Unrealised (losses)/gains on financial derivative instruments (2,323) 1,481 (790) 19 109 (1,504) Unrealised (losses)/gains on financial assets/liabilities at fair value through profit or loss

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

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





30 June 2015


for the yearended 30 June 2015

HI Core UCITS Fund




30 June 2015

Company Total

for the year ended

30 June 2015 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR’000 EUR ‘000

Realised gains/(losses) on transferable securities and collective investment schemes

4,300 1,980 3,407 2,603 (1,392) 10,867

Realised losses on financial derivative instruments (782) (4,851) (1,812) (100) (42) (7,587) Realised gains/(losses) on financial assets/liabilities at fair value through profit or loss

3,518 (2,871) 1,595 2,503 (1,434) 3,280

Unrealised gains/(losses) on transferable securities and collective investment schemes

161 (1,324) 334 (56) 241 (371)

Unrealised gains/(losses) on financial derivative instruments 651 514 27 (11) (54) 1,127 Unrealised gains/(losses) on financial assets/liabilities at fair value through profit or loss

812 (810) 361 (67) 187 756

Net gains/(losses) on financial assets/liabilities 4,330 (3,681) 1,956 2,436 (1,247) 4,036


58


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 6. Fees and expenses a) Investment management fees HI Numen Credit Fund

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

Share class name Investment Management fee Service fee EUR A Shares 1.00% 0.00% EUR DM Shares 1.00% 0.00% EUR FOF Shares 1.75% 0.00% EUR I Initial Shares 1.00% 0.00% EUR I Shares 1.50% 0.00% EUR M Shares 0.00% 0.00% EUR R Shares 1.75% 0.00% USD I2 Shares 1.50% 0.00% USD R Shares 1.75% 0.00% CHF R Shares 1.75% 0.00% EUR D Shares 1.75% 0.20% USD D Shares 1.75% 0.20% CHF D Shares 1.75% 0.20% CHF DM2 Shares 1.30% 0.00% EUR DM2 Shares 1.30% 0.00% EUR I2 Shares 1.50% 0.00% USD DM2 Shares 1.30% 0.00% GBP I2 Shares 1.50% 0.00% GBP DM2 Shares 1.30% 0.00% GBP M Shares 0.00% 0.00%

The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out of pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises. The Investment Management Fee incurred by the Fund amounted to EUR 12,090,978 for the year ended 30 June 2016 (year ended 30 June 2015: EUR 6,659,538) of which EUR 1,195,934 was outstanding as at year ended 30 June 2016 (year ended 30 June 2015: EUR 708,200). The Investment Management fee rates have not changed since the year ended 30 June 2015. The Service Fee incurred by the Fund amounted to EUR 259,953 for the year ended 30 June 2016 (year ended 30 June 2015: EUR 146,258). HI Principia Fund The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the Net Asset Value attributable to the relevant Share class as set out below, which is accrued as of each Dealing Day and paid monthly in arrears in Euro.

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

EUR FOF Shares 2.00% 0.00%

EUR I Shares 1.50% 0.00%

EUR R Shares 2.00% 0.00%

USD DM Shares 1.00% 0.00%

USD R Shares 2.00% 0.00%

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

59


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 6. Fees and expenses (continued) a) Investment management fees (continued) HI Principia Fund (continued) The Investment Management Fee incurred by the Fund amounted to EUR 2,707,194 for the year ended 30 June 2016 (year ended 30 June 2015: EUR 2,914,831) of which EUR 249,207 was outstanding as at year ended 30 June 2016 (year ended 30 June 2015: EUR 230,493). The Investment Management fee rates have not changed since the year ended 30 June 2015. HI Sibilla Macro Fund

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


EUR FOF Shares 2.00% 0.00%



CHF DM Shares 1.00% 0.00%

CHF R Shares 2.00% 0.00%

The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out of pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises. The Investment Management Fee incurred by the Fund amounted to EUR 1,297,401 for the year ended 30 June 2016 (year ended 30 June 2015: EUR 868,398) of which EUR 126,783 was outstanding as at year ended 30 June 2016 (year ended 30 June 2015: EUR 81,912). The Investment Management fee rates have not changed since the year ended 30 June 2015. HI Core UCITS Fund

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


EUR I Shares 1.50% 0.00%


USD DM Shares 0.80% 0.00%


CHF DM Shares 0.80% 0.00% The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out-of-pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises. The Investment Management Fee incurred by the Fund amounted to EUR 495,174 for the year ended 30 June 2016 (year ended 30 June 2015: EUR 472,731) of which EUR 36,562 was outstanding as at year ended 30 June 2016 (year ended 30 June 2015: EUR 43,234). The Investment Management Fee rates have not changed since the year ended 30 June 2015.

60


NOTES TO THE FINANCIAL STATEMENTS (continued ) For the year ended 30 June 2016 6. Fees and expenses (continued) a) Investment management fees (continued) HI Africa Opportunities Fund The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the Net Asset Value attributable to the relevant Share class as set out below, which is accrued as of each Dealing Day and paid monthly in arrears in Euro.

Share class name Investment Management fee Service fee EUR DM Shares 1.30% 0.00% EUR FOF Shares 2.00% 0.00% EUR I Shares 1.50% 0.00% EUR D Shares 1.75% 0.35% USD D Shares 1.75% 0.35% USD DM Shares 1.30% 0.00% CHF D Shares 1.75% 0.35%

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

The Investment Management Fee incurred by the Fund amounted to EUR 594,048 for the year ended 30 June 2016 (year ended 30 June 2015: EUR 148,385) of which EUR 47,263 was outstanding as at year ended 30 June 2016 (year ended 30 June 2015: EUR 44,204). The Investment Management fee rates have not changed since the year ended 30 June 2015. The Service Fee incurred by the Fund amounted to EUR 9,623 for the period ended 30 June 2016 (30 June 2015: EUR 965).

b) Performance fees


From 12 April 2014 to 20 February 2015, the performance fee is equal to 10% (in the case of the EUR I Initial Shares and EUR A Shares) and 15% (in the case of the EUR DM Shares, EUR I Shares, EUR FOF Shares, EUR R Shares, CHF R Shares and USD R Shares) of the increase of the NAV per share of the relevant hurdle share class outstanding in respect of each performance period above the hurdle performance and subject to the high water mark. The Investment Manager is entitled to receive a performance fee in respect of the relevant non-hurdle share class (EUR I2 Shares, EUR D Shares, EUR DM2 Shares, GBP I2 Shares, GBP DM2 Shares, USD D Shares, USD DM2 Shares, CHF D Shares, CHF DM2 Shares), equal to 20% of the increase of the NAV per share of the relevant non-hurdle share class, outstanding in respect of each performance period and subject to the high water mark. From 20 February 2015, the performance fee is equal to 10% (in the case of the EUR I Initial Shares and EUR A Shares) and 15% (in the case of the EUR DM Shares, EUR I Shares, EUR FOF Shares, EUR R Shares, CHF R Shares and USD R Shares) of the increase of the NAV per share of the relevant hurdle share class outstanding in respect of each performance period above the hurdle performance and subject to the high water mark. The Investment Manager is entitled to receive a performance fee in respect of the relevant non-hurdle share class (EUR I2 Shares, EUR D Shares, EUR DM2 Shares, GBP D Shares, GBP I2 Shares, GBP DM2 Shares, USD D Shares, USD DM2 Shares, USD I2 Shares, CHF D Shares, CHF DM2 Shares), equal to 20% of the increase of the NAV per share of the relevant non-hurdle share class, outstanding in respect of each performance period and subject to the high water mark. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing day. The performance fee incurred by the Fund amounted to EUR 86,184 for the year ended 30 June 2016 (year ended 30 June 2015: EUR 105,339) of which EUR Nil was outstanding as at 30 June 2016 (year ended 30 June 2015: EUR 4,992).

61


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 6. Fees and expenses (continued) b) Performance fees (continued) HI Principia Fund A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing date. As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance. The performance fee incurred by the Fund amounted to EUR 732,652 for the year ended 30 June 2016 (year ended 30 June 2015: EUR 415) of which EUR 2,862 was outstanding as at 30 June 2016 (30 June 2015: EUR Nil). HI Sibilla Macro Fund A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing date. As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance. The performance fee incurred by the Fund amounted to EUR 866,440 for the year ended 30 June 2016 (30 June 2015: EUR Nil) of which EUR Nil was outstanding as at 30 June 2016 (30 June 2015: EUR Nil). HI Core UCITS Fund

A performance fee in respect of all share classes of the Fund equal to 10% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing date. As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance. The performance fee incurred by the Fund amounted to EUR 23 for the year ended 30 June 2016 (30 June 2015: EUR 73,161) of which EUR Nil was outstanding as at 30 June 2016 (30 June 2015: EUR 3,779). HI Africa Opportunities Fund

A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing date. As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance. The performance fee incurred by the Fund amounted to EUR 632,784 for the year ended 30 June 2016 (30 June 2015: EUR 4,006) of which EUR Nil was outstanding as at 30 June 2016 (30 June 2015: EUR Nil).

62


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 6. Fees and expenses (continued) c) Administrator’s fees HI Numen Credit Fund The Company shall pay the Administrator out of the assets of each Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 1,098,286 for the year ended 30 June 2016 (30 June 2015: EUR 692,725) of which EUR 465,412 was outstanding as at 30 June 2016 (30 June 2015: EUR 136,792). HI Principia Fund The Company shall pay the Administrator out of the assets of each Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 197,482 for the year ended 30 June 2016 (30 June 2015: EUR 266,337) of which EUR 81,184 was outstanding as at 30 June 2016 (30 June 2015: EUR 63,148). HI Sibilla Macro Fund The Company shall pay the Administrator out of the assets of each Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 120,270 for the year ended 30 June 2016 (30 June 2015: EUR 195,909) of which EUR 61,880 was outstanding as at 30 June 2016 (30 June 2015: EUR 66,875). HI Core UCITS Fund

The Company shall pay the Administrator out of the assets of the Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 133,955 for the year ended 30 June 2016 (30 June 2015: EUR 132,105) of which EUR 53,063 was outstanding as at 30 June 2016 (30 June 2015: EUR 39,137). HI Africa Opportunities Fund

The Company shall pay the Administrator out of the assets of the Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 150,181 for the year ended 30 June 2016 (30 June 2015: EUR 24,478) of which EUR 48,711 was outstanding as at 30 June 2016 (30 June 2015: EUR 24,478). The Administrator shall also be entitled to be repaid out of the assets of each Fund all of its reasonable out-of-pocket expenses, as agreed at normal commercial rates, incurred on behalf of each Fund. d) Depositary’s fees HI Numen Credit Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 241,525 for the year ended 30 June 2016 (30 June 2015: EUR 232,374) of which EUR 222,226 was outstanding as at 30 June 2016 (30 June 2015: EUR 124,344).

63


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 6. Fees and expenses (continued) d) Depositary’s fees (continued) HI Principia Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 92,542 for the year ended 30 June 2016 (30 June 2015: EUR 108,823) of which EUR 43,487 was outstanding as at 30 June 2016 (30 June 2015: EUR 23,365). HI Sibilla Macro Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 59,581 for the year ended 30 June 2016 (30 June 2015: EUR 56,641) of which EUR 25,678 was outstanding as at 30 June 2016 (30 June 2015: EUR 15,559). HI Core UCITS Fund

The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 52,169 for the year ended 30 June 2016 (30 June 2015: EUR 48,384) of which EUR 21,221 was outstanding as at 30 June 2016 (30 June 2015: EUR 16,189). HI Africa Opportunities Fund

The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the Net Asset Value of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 49,821 for the year ended 30 June 2016 (30 June 2015: EUR 20,085) of which EUR 21,812 was outstanding as at 30 June 2016 (30 June 2015: EUR 20,085). The Depositary is entitled to be repaid for all of its out-of-pocket expenses reasonably incurred on behalf of the Funds including transaction charges and sub-depositary fees. e) Directors’ fees The Directors shall be entitled to a fee and remuneration for their services at a rate to be determined from time to time by the Directors provided that no Director may be paid in excess of EUR 25,000 in any one financial year without the approval of the Board. Francesco Rovati, a non-executive Director, does not receive any remuneration. All Directors will be entitled to reimbursement by the Company of expenses properly incurred in connection with the business of the Company or the discharge of their duties. The Directors’ fees incurred by the Company amounted to EUR 65,500 for the year ended 30 June 2016 (30 June 2015: EUR 75,000). f) Audit fees The audit fees incurred by the Company amounted to EUR 47,000 for the year ended 30 June 2016 (30 June 2015: EUR 45,000). Fees relate solely to the audit of the Company. The audit fees paid to KPMG in respect of reimbursement of expenses during the year ended 30 June 2016 was EUR 1,150 (30 June 2015: EUR 985). g) Establishment expenses

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

64


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 7. Transaction costs Disclosed in the table below are separately identifiable transaction costs incurred by the Fund for the year ended 30 June 2016 and 30 June 2015. These include brokerage commissions and broker fees on exchange traded futures contracts, options and equities. Transaction costs on bonds, collective investment funds, exchange traded notes, credit default swaps, CFD, interest rate swaps and forward currency contracts could not be separately identified. Transaction costs on these are included in the purchase and sales price of the investment and cannot be separately verified or disclosed. Transaction costs on equities are embedded in the cost of the investment and included in net gains/(losses) on financial assets at fair value through profit or loss within the Statement of Comprehensive Income of each Fund. Transaction costs on futures contracts and options are included in transaction costs within the Statement of Comprehensive Income of each Fund.


HI Numen Credit Fund for the year

ended 30 June 2016

HI Principia

Fund for the year

ended 30 June 2016

HI Sibilla

Macro Fund for the year

ended 30 June 2016

HI Core

UCITS Fund for the year

ended 30 June 2016

HI Africa Opportunities

Fund for the year

ended 30 June 2016

Company

Total for the year

ended 30 June 2016

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

1,324 1,451 257 1 175 3,208



ended 30 June 2015

HI Principia Fund

for the year ended

30 June 2015

HI Sibilla Macro Fund for the year

ended 30 June 2015

HI Core UCITS Fund

for the year ended

30 June 2015


Fund1 for the period from 6 March

2015 to 30 June 2015

Company Total

for the year ended

30 June 2015 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Transaction costs 902 1,343 137 - 99 2,481

902 1,343 137 - 99 2,481


65


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 8. Operating expenses Operating expenses incurred by the Company for the year ended 30 June 2016 and 30 June 2015 are disclosed in the table below.



ended 30 June 2016

HI Principia Fund

for the year ended

30 June 2016


ended 30 June 2016

HI Core UCITS Fund

for the year ended

30 June 2016


Fund for the year

ended 30 June 2016

Company

Total for the year ended

30 June 2016 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Audit fees 26 12 7 7 5 57 Depositary fees 242 93 60 52 50 497

Directors fees 13 2 2 13 13 43 Fund Administration fees

1,098 197 120 134 150 1,699

Legal fees 20 56 44 20 17 157 Miscellaneous expenses

1,102 350 149 65 85 1,751

2,501 710 382 291 320 4,204



ended 30 June 2015

HI Principia Fund

for the year ended

30 June 2015


ended 30 June 2015

HI Core UCITS Fund

for the year ended

30 June 2015


Fund1 for the period from 6 March

2015 to 30 June 2015

Company

Total for the year ended

30 June 2015 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Audit fees 26 12 6 5 6 55 Depositary fees 232 109 57 48 21 467

Directors fees 15 26 24 15 4 84 Establishment expenses

- - - 40 55 95

Fund Administration fees

693 266 196 133 24 1,312

Legal fees 103 28 23 17 5 176 Miscellaneous expenses

413 200 63 96 17 789

1,482 641 369 354 132 2,978


66


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 9. Other payables


HI Numen Credit Fund 30 June 2016

HI Principia Fund

30 June 2016

HI Sibilla Macro Fund 30 June 2016

HI Core

UCITS Fund 30 June 2016


Fund 30 June 2016

Company

Total 30 June 2016


Audit fees 27 9 7 6 6 55 Depositary fees 222 43 26 21 22 334 Establishment expenses

- - 39 40 8 87


465 81 62 53 49 710

Management fees 1,196 249 127 37 47 1,656 Performance fees - 3 - - - 3 Spot currency contract awaiting settlement

858 - - - 1 859

Other payables 72 54 34 7 13 180

2,840 439 295 164 146 3,884



HI Principia Fund

30 June 2015


HI Core



Fund 30 June 2015

Company

Total 30 June 2015


Audit fees 24 11 6 - 4 45 Depositary fees 124 23 15 16 20 198 Directors fees - 11 11 - - 22 Establishment expenses

- - 39 40 8 87


138 63 67 39 24 331

Management fees 708 230 82 43 44 1,107 Performance fees 5 - - 4 - 9 Sub-broker fees - - - - - - Other payables 26 106 15 4 4 155

1,025 444 235 146 104 1,954

67


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 10. Adjustment to align to the valuation methodology as set out in the prospectus

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



HI Principia Fund

30 June 2016


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

1,003,467 177,403 89,212

Adjustment to establishment costs - 11 19

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

1,003,467 177,414 89,231


HI Core UCITS Fund 30 June 2016


Fund 30 June 2016

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

40,662 34,323

Adjustment to establishment costs 24 40

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

40,686 34,363



HI Principia Fund

30 June 2015


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

561,640 136,743 51,535

Adjustment to establishment costs 6 20 27

Total adjustment for the year 6 20 27 Net assets attributable to redeemable participating shareholders at the end of the year

561,646 136,763 51,562


HI Core



Fund 30 June 2015

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

48,689 29,130

Adjustment to establishment costs 32 56

Total adjustment for the year/period 32 56 Net assets attributable to redeemable participating shareholders at the end of the year/period

48,721 29,186

68


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 11. Taxation The Company is an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997. Therefore, the Company is not liable to tax in respect of its income and gains other than on the occurrence of a chargeable event. Generally a chargeable event arises on any distribution, redemption, repurchase, cancellation, transfer of shares or the ending of a “Relevant Period”. A “Relevant Period” is an eight year period beginning with the acquisition of the shares by the shareholder and each subsequent period of eight years beginning immediately after the preceding Relevant Period. A chargeable event does not arise in respect of: a) a shareholder who is not Irish resident and not ordinarily resident in Ireland at the time of the chargeable event, provided the necessary

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

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

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

12. Share capital The issued and fully paid redeemable participating share capital is at all times equal to the NAV of the Company. Redeemable participating shares are redeemable at the shareholders’ option and are classified as financial liabilities. The authorised share capital of the Company is two Subscriber Shares of €1 each and 50,000,000,000,000 Shares of no par value. The Investment Manager and AM Holdings, the parent company of the Investment Manager, each hold one subscriber share. The following share classes launched during the year ended 30 June 2016:

HI Numen Credit Fund Launch date

GBP M Shares 31 July 2015 USD I2 Shares 19 February 2016 HI Africa Opportunities Fund

CHF D Shares 4 September 2015

69


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

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

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

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

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

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

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

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

70

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 12. Share capital (continued) Participating share transactions for the year ended 30 June 2016 (continued):

HI Principia Fund (continued) CHF R Shares Opening shares issued 20,272 Shares issued during the year 6,067 Shares redeemed during the year (8,336) Closing shares issued 18,003 HI Sibilla Macro Fund EUR DM Shares EUR FOF Shares EUR R Shares Opening shares issued 75,340 172,220 216,702 Shares issued during the year 288,706 54,890 169,366 Shares redeemed during the year (105,623) - (53,643) Closing shares issued 258,423 227,110 332,425

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

USD DM Shares USD R Shares CHF DM Shares Opening shares issued 1,915 16,536 15,000 Shares issued during the year 17,119 792 102 Shares redeemed during the year (5,763) (1,772) (15,000) Closing shares issued 13,271 15,556 102

HI Africa Opportunities Fund EUR DM Shares EUR FOF Shares EUR I Shares Opening shares issued 95,736 182,017 1,000 Shares issued during the year 35,028 10,193 3,529 Shares redeemed during the year (10,817) - (1,636) Closing shares issued 119,947 192,210 2,893

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

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

71


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 12. Share capital (continued) Participating share transactions for the year ended 30 June 2015: HI Numen Credit Fund EUR A Shares EUR DM Shares EUR FOF Shares Opening shares issued 636,078 373,574 26,530 Shares issued during the year - - - Shares redeemed during the year (114,228) (219,862) - Closing shares issued 521,850 153,712 26,530

EUR I Initial Shares EUR I Shares EUR M Shares Opening shares issued 263,876 394,198 12,807 Shares issued during the year - - 1,351 Shares redeemed during the year (17,091) (217,505) (139) Closing shares issued 246,785 176,693 14,019

EUR R Shares USD R Shares CHF R Shares Opening shares issued 1,185,615 75,283 41,200 Shares issued during the year - - - Shares redeemed during the year (282,680) (37,869) (12,688) Closing shares issued 902,935 37,414 28,512

EUR D Shares USD D Shares CHF D Shares Opening shares issued 173,714 17,280 12,354 Shares issued during the year 623,876 313,738 131,670 Shares redeemed during the year (118,893) (28,981) (16,661) Closing shares issued 678,697 302,037 127,363

CHF DM2 Shares EUR DM2 Shares EUR I2 Shares Opening shares issued 5,002 81,136 133,823 Shares issued during the year 19,792 548,062 1,047,861 Shares redeemed during the year (4,494) (98,010) (148,937) Closing shares issued 20,300 531,188 1,032,747

USD DM2 Shares GBP I2 Shares GBP DM2 Shares Opening shares issued 90,191 - - Shares issued during the year 122,801 153,277 116,028 Shares redeemed during the year (92,031) - (2,524) Closing shares issued 120,961 153,277 113,504 HI Principia Fund EUR DM Shares EUR FOF Shares EUR I Shares Opening shares issued 106,202 252,364 107,120 Shares issued during the year 60,295 2,607 475 Shares redeemed during the year (76,668) (19,834) (36,014) Closing shares issued 89,829 235,137 71,581

EUR R Shares USD DM Shares USD I Shares Opening shares issued 780,749 - 65,489 Shares issued during the year 206,220 22,023 1,737 Shares redeemed during the year (247,257) (277) (67,226) Closing shares issued 739,712 21,746 -

USD R Shares CHF R Shares

Opening shares issued 55,543 15,628 Shares issued during the year 13,033 5,678 Shares redeemed during the year (39,851) (1,034) Closing shares issued 28,725 20,272

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 12. Share capital (continued) Participating share transactions for the year ended 30 June 2015 (continued): HI Sibilla Macro Fund EUR DM Shares EUR FOF Shares EUR R Shares Opening shares issued 100,446 164,115 149,602 Shares issued during the year 6,666 13,185 129,659 Shares redeemed during the year (31,772) (5,080) (62,559) Closing shares issued 75,340 172,220 216,702

USD DM Shares USD R Shares CHF DM Shares Opening shares issued 26,472 16,924 14,072 Shares issued during the year 1,008 6,864 - Shares redeemed during the year (27,480) (6,332) - Closing shares issued - 17,456 14,072

CHF R Shares Opening shares issued 7,199 Shares issued during the year 26,358 Shares redeemed during the year (3,032) Closing shares issued 30,525 HI Core UCITS Fund EUR DM Shares EUR I Shares EUR R Shares Opening shares issued 283,006 48,878 53,571 Shares issued during the year 103,716 2,785 15,739 Shares redeemed during the year (54,139) (18,357) (29,605) Closing shares issued 332,583 33,306 39,705

USD DM Shares USD I Shares USD R Shares Opening shares issued - 14,575 13,177 Shares issued during the year 1,915 292 8,056 Shares redeemed during the year - (14,867) (4,697) Closing shares issued 1,915 - 16,536

CHF DM Shares Opening shares issued - Shares issued during the year 15,000 Shares redeemed during the year - Closing shares issued 15,000 HI Africa Opportunities Fund 1 EUR DM Shares EUR I Shares EUR FOF Shares Opening shares issued - - - Shares issued during the period 95,736 1,000 182,017 Shares redeemed during the period - - - Closing shares issued 95,736 1,000 182,017

EUR D Shares USD D Shares USD DM Shares Opening shares issued - - - Shares issued during the period 3,733 14,771 12,491 Shares redeemed during the period (104) (355) (183) Closing shares issued 3,629 14,416 12,308 1HI Africa Opportunities Fund launched on 6 March 2015.

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 13. Net asset value per share as per the valuation methodology as set out in the prospectus HI Numen Credit Fund

EUR A Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 56,758,640 € 58,092,330 € 71,211,810 Number of Shares in Issue 521,850 521,850 636,078 Net Asset Value per share € 108.76 € 111.32 € 111.95 EUR DM Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 14,156,783 € 17,641,492 € 43,118,297 Number of Shares in Issue 126,247 153,712 373,574 Net Asset Value per share € 112.14 € 114.77 € 115.42

EUR FOF Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 2,098,027 € 3,112,474 € 3,153,647 Number of Shares in Issue 18,442 26,530 26,530 Net Asset Value per share € 113.76 € 117.32 € 118.87 EUR I Initial Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 24,422,281 € 30,362,011 € 32,649,741 Number of Shares in Issue 203,168 246,785 263,876 Net Asset Value per share € 120.21 € 123.03 € 123.73

EUR I Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 15,113,697 € 21,007,076 € 47,367,745 Number of Shares in Issue 130,769 176,693 394,198 Net Asset Value per share € 115.58 € 118.89 € 120.16 EUR M Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 1,329,700 € 1,570,120 € 1,428,250 Number of Shares in Issue 12,030 14,019 12,807 Net Asset Value per share € 110.53 € 112.00 € 111.52 EUR R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 88,074,129 € 105,327,416 € 140,138,955 Number of Shares in Issue 778,589 902,935 1,185,615 Net Asset Value per share € 113.12 € 116.65 € 118.20 USD R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $2,353,697 $ 4,288,431 $ 8,745,788 Number of Shares in Issue 21,009 37,414 75,283 Net Asset Value per share $112.03 $ 114.62 $ 116.17 CHF R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value CHF 2,491,423 CHF 3,212,956 CHF 4,737,558 Number of Shares in Issue 22,961 28,512 41,200 Net Asset Value per share CHF 108.51 CHF 112.69 CHF 114.99 EUR D Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 97,162,943 € 68,494,074 € 17,799,117 Number of Shares in Issue 994,835 678,697 173,714 Net Asset Value per share € 97.67 € 100.92 € 102.46

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 13. Net asset value per share as per the valuation methodology as set out in the prospectus (continued) HI Numen Credit Fund (continued) USD D Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $36,385,965 $ 30,300,336 $ 1,761,380 Number of Shares in Issue 371,627 302,037 17,280 Net Asset Value per share $97.91 $ 100.32 $ 101.93 CHF D Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value CHF 4,825,137 CHF 12,738,874 CHF 1,265,094 Number of Shares in Issue 50,115 127,363 12,354 Net Asset Value per share CHF 96.28 CHF 100.02 CHF 102.41 CHF DM2 Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value CHF 4,170,713 CHF 2,020,272 CHF 507,269 Number of Shares in Issue 43,337 20,300 5,002 Net Asset Value per share CHF 96.24 CHF 99.52 CHF 101.41 EUR DM2 Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 177,133,017 € 54,016,514 € 8,322,217 Number of Shares in Issue 1,788,362 531,188 81,136 Net Asset Value per share € 99.05 € 101.69 € 102.57 EUR I2 Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 337,695,740 € 104,235,152 € 13,652,105 Number of Shares in Issue 3,441,576 1,032,747 133,823 Net Asset Value per share € 98.12 € 100.93 € 102.02 USD DM2 Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $24,159,629 $ 12,230,360 $ 9,182,725 Number of Shares in Issue 243,255 120,961 90,191 Net Asset Value per share $99.32 $ 101.11 $ 101.81 GBP I2 Shares1 30 June 2016 30 June 2015 30 June 2014 Net Asset Value £45,231,390 £ 15,710,847 - Number of Shares in Issue 451,722 153,277 - Net Asset Value per share £100.13 £ 102.50 - GBP DM2 Shares2 30 June 2016 30 June 2015 30 June 2014 Net Asset Value £43,924,921 £ 11,568,367 - Number of Shares in Issue 439,614 113,504 - Net Asset Value per share £99.92 £ 101.92 - GBP M Shares3 30 June 2016 30 June 2015 30 June 2014 Net Asset Value £99,855 - - Number of Shares in Issue 1,000 - - Net Asset Value per share £99.85 - - USD I2 Shares4 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $16,541,639 - - Number of Shares in Issue 168,112 - - Net Asset Value per share $98.40 - - 1On 19 December 2014, GBP I2 Shares class was launched for HI Numen Credit Fund; therefore no comparative information is available. 2On 6 February 2015, GBP DM2 Shares class was launched for HI Numen Credit Fund; therefore no comparative information is available. 3On 31 July 2015, GBP M Shares class was launched for HI Numen Credit Fund; therefore no comparative information is available. 4On 19 February 2016, USD I2 Shares class was launched for HI Numen Credit Fund; therefore no comparative information is available.

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 13. Net asset value per share as per the valuation methodology as set out in the prospectus (continued) HI Principia Fund EUR DM Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 42,043,260 € 10,416,914 € 12,816,904 Number of Shares in Issue 344,039 89,829 106,202 Net Asset Value per share € 122.20 € 115.96 € 120.68

EUR FOF Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 27,873,198 € 26,521,299 € 29,920,392 Number of Shares in Issue 235,632 235,137 252,364 Net Asset Value per share € 118.29 € 112.79 € 118.56 EUR I Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 15,269,567 € 8,196,565 € 12,829,336 Number of Shares in Issue 126,779 71,581 107,120 Net Asset Value per share € 120.44 € 114.51 € 119.77

EUR R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 86,983,161 € 84,591,913 € 93,853,680 Number of Shares in Issue 725,341 739,712 780,749 Net Asset Value per share € 119.92 € 114.36 € 120.21

USD DM Shares1 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $456,704 $ 2,109,062 - Number of Shares in Issue 4,430 21,746 - Net Asset Value per share $103.08 $ 96.99 -

USD I Shares2 30 June 2016 30 June 2015 30 June 2014 Net Asset Value - - $ 7,296,434 Number of Shares in Issue - - 65,489 Net Asset Value per share - - $ 111.41 USD R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $3,197,426 $ 3,282,648 $ 6,654,863 Number of Shares in Issue 26,533 28,725 55,543 Net Asset Value per share $120.51 $ 114.28 $ 119.81 CHF R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value CHF 2,116,738 CHF 2,287,573 CHF 1,867,422 Number of Shares in Issue 18,003 20,272 15,628 Net Asset Value per share CHF 117.58 CHF 112.84 CHF 119.49 HI Sibilla Macro Fund EUR DM Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 26,240,368 € 7,536,805 € 10,068,340 Number of Shares in Issue 258,423 75,340 100,446 Net asset value per share € 101.54 € 100.04 € 100.24 EUR FOF Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 22,524,847 € 16,936,242 € 16,333,956 Number of Shares in Issue 227,110 172,220 164,115 Net asset value per share € 99.18 € 98.34 € 99.53 1On 15 July 2014, USD DM Shares class launched for HI Principia Fund and therefore no comparative data is available. 2On 3 November 2014, the USD I Shares class were fully redeemed for HI Principia Fund.

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 13. Net asset value per share as per the valuation methodology as set out in the prospectus (continued) HI Sibilla Macro Fund (continued) EUR R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 33,017,362 € 21,347,049 € 14,915,102 Number of Shares in Issue 332,425 216,702 149,602 Net asset value per share € 99.32 € 98.51 € 99.70 USD DM Shares1 30 June 2016 30 June 2015 30 June 2014 Net Asset Value - - $ 2,637,989 Number of Shares in Issue - - 26,472 Net asset value per share - - $ 99.65 USD R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $3,830,511 $ 1,724,948 $ 1,685,313 Number of Shares in Issue 38,287 17,456 16,924 Net asset value per share $100.05 $ 98.82 $ 99.58 CHF DM Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value CHF 150,826 CHF 1,391,996 CHF 1,399,980 Number of Shares in Issue 1,505 14,072 14,072 Net asset value per share CHF 100.19 CHF 98.92 CHF 99.49 CHF R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value CHF 4,178,411 CHF 2,974,664 CHF 712,939 Number of Shares in Issue 42,692 30,525 7,199 Net asset value per share CHF 97.87 CHF 97.45 CHF 99.03 HI Core UCITS Fund EUR DM Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 28,613,856 € 37,458,656 € 30,918,178 Number of Shares in Issue 268,273 332,583 283,006 Net asset value per share € 106.66 € 112.63 € 109.25 EUR I Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 4,501,906 € 3,711,151 € 5,314,893 Number of Shares in Issue 42,963 33,306 48,878 Net asset value per share € 104.79 € 111.43 € 108.74 EUR R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 4,974,328 € 4,322,477 € 5,716,755 Number of Shares in Issue 48,834 39,705 53,571 Net asset value per share € 101.86 € 108.86 € 106.71 USD DM Shares2 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $1,255,815 $ 190,040 - Number of Shares in Issue 13,271 1,915 - Net asset value per share $94.63 $ 99.25 - 1On 6 February 2015, the USD DM Shares class were fully redeemed for HI Sibilla Macro Fund. 2On 10 April 2015, USD DM Shares class was launched for HI Core UCITS Fund; therefore no comparative information is available.

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 13. Net asset value per share as per the valuation methodology as set out in the prospectus (continued) HI Core UCITS Fund (continued) USD I Shares1 30 June 2016 30 June 2015 30 June 2014 Net Asset Value - - $ 1,586,489 Number of Shares in Issue - - 14,575 Net asset value per share - - $ 108.85 USD R Shares 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $1,618,377 $ 1,824,600 $ 1,418,175 Number of Shares in Issue 15,556 16,536 13,177 Net asset value per share $104.04 $ 110.34 $ 107.63 CHF DM Shares2 30 June 2016 30 June 2015 30 June 2014 Net Asset Value CHF 9,450 CHF 1,479,377 - Number of Shares in Issue 102 15,000 - Net asset value per share CHF 92.61 CHF 98.63 -

HI Africa Opportunities Fund 3

EUR DM Shares4 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 11,396,449 € 9,138,658 - Number of Shares in Issue 119,947 95,736 - Net asset value per share € 95.01 € 95.46 - EUR I Shares5 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 283,763 € 99,624 - Number of Shares in Issue 2,893 1,000 - Net asset value per share € 98.07 € 99.62 - EUR FOF Shares6 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 18,068,998 € 17,301,568 - Number of Shares in Issue 192,210 182,017 - Net asset value per share € 94.01 € 95.05 - EUR D Shares7 30 June 2016 30 June 2015 30 June 2014 Net Asset Value € 904,880 € 345,705 - Number of Shares in Issue 9,624 3,629 - Net asset value per share € 94.03 € 95.26 - USD D Shares8 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $1,987,474 $ 1,384,610 - Number of Shares in Issue 20,992 14,416 - Net asset value per share $94.68 $ 96.05 - USD DM Shares9 30 June 2016 30 June 2015 30 June 2014 Net Asset Value $2,122,786 $ 1,178,049 - Number of Shares in Issue 22,413 12,308 - Net asset value per share $94.71 $ 95.71 -

1On 17 April 2015, the USD I Shares class were fully redeemed for HI Core UCITS Fund. 2On 22 May 2015, CHF DM Shares class was launched for HI Core UCITS Fund; therefore no comparative information is available. 3HI Africa Opportunities Fund launched on 6 March 2015. 4On 27 March 2015, EUR DM Shares class was launched for HI Africa Opportunities Fund; therefore no comparative information is available. 5On 22 May 2015, EUR I Shares class was launched for HI Africa Opportunities Fund; therefore no comparative information is available. 6On 6 March 2015, EUR FOF Shares class was launched for HI Africa Opportunities Fund; therefore no comparative information is available. 7On 27 March 2015, EUR D Shares class was launched for HI Africa Opportunities Fund; therefore no comparative information is available. 8On 17 April 2015, USD D Shares class was launched for HI Africa Opportunities Fund; therefore no comparative information is available. 9On 27 March 2015, USD DM Shares class was launched for HI Africa Opportunities Fund; therefore no comparative information is available.

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 13. Net asset value per share as per the valuation methodology as set out in the prospectus (continued) HI Africa Opportunities Fund 1 (continued) CHF D Shares2 30 June 2016 30 June 2015 30 June 2014 Net Asset Value CHF 9,583 - - Number of Shares in Issue 108 - - Net asset value per share CHF 88.74 - - 1HI Africa Opportunities Fund launched on 6 March 2015. 2On 4 September 2015, CHF D Share class was launched for HI Africa Opportunities Fund; therefore no comparative information is available.

14. Related parties Parties are considered to be related if one party has the ability to control the other party or is able to exercise significant influence over the other party, in making financial or operational decisions. Teddy Otto and John Skelly, Directors of the Company, are employees of Carne Global Financial Services Limited, who are the company secretary and also provide Money Laundering Reporting Officer (“MLRO”) and foreign registration services to the Company. The fees earned by Teddy Otto and John Skelly amounted to EUR 20,000 each for the year ending 30 June 2016 (30 June 2015: EUR 20,000 each). Francesco Rovati, a Director of the Company, is an employee of Hedge Invest SGR P.A., the Investment Manager. Funds and accounts managed by the Investment Manager owned 6.24% of the Company as at 30 June 2016 (as at 30 June 2015: 9.68%). The Managers, Directors and employees of the Investment Manager and Sub-Investment Managers owned 0.82% of the Company as at 30 June 2016 (as at 30 June 2015: 0.99%). Fees paid to the Investment Manager during the year/period and the balances outstanding at the year end are disclosed in note 6. There were no other related party transactions other than those disclosed in the financial statements. Cross holdings within the Company At 30 June 2016 HI Core UCITS Fund held a cross holding in HI Numen Credit Fund, HI Principia Fund, HI Africa Opportunities Fund and HI Sibilla Macro Fund. The market value of the investments at this date was EUR 8,476,638 (30 June 2015: EUR 7,796,275). Net gains of EUR 50,342 (30 June 2015: EUR 241,533) have been eliminated on consolidation in the Statement of Comprehensive Income.

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

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 15. Fair value measurement (continued) The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 30 June 2016:

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

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

Financial liabilities at fair value through profit or loss: - Credit default swaps - (12,583) - (12,583) - Contracts for difference - (922) - (922) - Options written - (603) - (603) - Swaptions written - (1,639) - (1,639) - Forward currency contracts - (14,460) - (14,460) - Futures contracts (918) - - (918) Total (918) (30,207) - (31,125) HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Time deposits - 27,150 - 27,150 - Equities 110,166 - - 110,166 - Contracts for difference - 1,597 - 1,597 - Forward currency contracts - 2,247 - 2,247 Total 110,166 30,994 - 141,160

Financial liabilities at fair value through profit or loss: - Contracts for difference - (2,102) - (2,102) - Forward currency contracts - (731) - (731) - Futures contracts (88) -- - (88) Total (88) (2,833) -- (2,921) HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss: - Time deposits 45,910 - 45,910 - Equities 353 - 353 - Government bonds 18,312 - 18,312 - Forward currency contracts 370 - 370 - Options purchased - 13 - 13 Total 353 64,605 - 64,958

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 15. Fair value measurement (continued) The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 30 June 2016 (continued):

Level 1 Level 2 Level 3 Total HI Sibilla Macro Fund (continued) EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial liabilities at fair value through profit or loss: - Forward currency contracts - (1,097) - (1,097) - Futures contracts (217) - - (217) Total (217) (1,097) - (1,314) HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Collective investment schemes - 37,070 - 37,070 - Exchange traded funds 626 - - 626 - Exchange traded notes 467 - - 467 - Forward currency contracts - -1 - - Total 1,093 37,070 - 38,163

Financial liabilities at fair value through profit or loss: - Forward currency contracts - (10) - (10) Total - (10) - (10) HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Time deposits - 7,500 - 7,500 - Equities 15,536 - - 15,536 - Government bonds - 5,401 - 5,401 - Contracts for difference - 172 - 172 - Forward currency contracts - 151 - 151 Total 15,536 13,224 - 28,760

Financial liabilities at fair value through profit or loss: - Contracts for difference - (58) - (58) - Forward currency contracts - (95) - (95) Total - (153) - (153)

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

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 15. Fair value measurement (continued) The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 30 June 2015:

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

- Time deposits - 90,000 - 90,000 - Government bonds - 287,029 - 287,029 - Corporate bonds - 94,365 - 94,365 - Convertible bonds - 2,689 - 2,689 - Credit default swaps - 24,501 - 24,501 - Interest rate swaps - 1,256 - 1,256 - Contracts for difference - 18 - 18 - Options purchased - 891 - 891 - Forward currency contracts - 316 - 316 - Futures contracts 66 - - 66 Total 66 501,065 - 501,131

Financial liabilities at fair value through profit or loss:

- Credit default swaps - (9,127) - (9,127) - Interest rate swaps - (1,231) - (1,231) - Contracts for difference - (61) - (61) - Forward currency contracts - (42) - (42) Total - (10,461) - (10,461) HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Time deposits - 15,200 - 15,200 - Equities 94,422 - - 94,422 - Contracts for difference - 1,617 - 1,617 - Forward currency contracts - 302 - 302 - Options purchased - 119 - 119 - Futures contracts 325 - - 325 Total 94,747 17,238 - 111,985

Financial liabilities at fair value through profit or loss:

- Contracts for difference - (4,371) - (4,371) - Forward currency contracts - (550) - (550) - Options written - (50) - (50) Total - (4,971) - (4,971) HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Exchange traded notes 337 - - 337 - Time deposits - 22,025 - 22,025 - Equities 6,080 - - 6,080 - Government bonds 5,392 - - 5,392 - Forward currency contracts - 259 - 259 - Futures contracts 88 - - 88 Total 11,897 22,284 - 34,181

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 15. Fair value measurement (continued) The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 30 June 2015 (continued):

Level 1 Level 2 Level 3 Total HI Sibilla Macro Fund (continued) EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial liabilities at fair value through profit or loss: - Contracts for difference - (59) - (59) - Forward currency contracts - (497) - (497) - Futures contracts (8) - - (8) Total (8) (556) - (564) HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Collective investment schemes - 44,063 - 44,063 - Exchange traded notes 978 - - 978 - Forward currency contracts - 11 - 11 Total 978 44,074 - 45,052

Financial liabilities at fair value through profit or loss: - Forward currency contracts - (40) - (40) Total - (40) - (40) HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Financial assets at fair value through profit or loss:

- Time deposits - 11,000 - 11,000 - Equities 864 - - 864 - Government bonds 8,975 - - 8,975 - Contracts for difference - 388 - 388 Total 9,839 11,388 - 21,227

Financial liabilities at fair value through profit or loss: - Contracts for difference - (162) - (162) - Forward currency contracts - (54) - (54) Total - (216) - (216)

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NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 15. Fair value measurement (continued) Assets and liabilities not carried at fair value but for which fair value is disclosed The following table analyses within the fair value hierarchy the Fund's assets and liabilities (by class) not measured at fair value at 30 June 2016 but for which fair value is disclosed:

Level 1 Level 2 Level 3 Total HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

Cash and cash equivalents 88,431 - - 88,431 Margin cash 20,846 - - 20,846 Collateral cash 177,605 - - 177,605 Receivable for investments sold - 8,292 - 8,292 Other receivables - 2,343 - 2,343 Total 286,882 10,635 - 297,517 Liabilities Payable for investments purchased - (12,551) - (12,551) Other payables - (2,840) - (2,840) Net assets attributable to redeemable participating shareholders

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

Total - (1,018,858) - (1,018,858) HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

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

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

Total - (186,756) - (186,756) HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

Cash and cash equivalents 10,580 - - 10,580 Margin cash 8,093 - - 8,093 Collateral cash 5,306 - - 5,306 Receivable for investments sold - 1,790 - 1,790 Other receivables - 94 - 94

Total 23,979 1,884 - 25,863

84


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 15. Fair value measurement (continued) Assets and liabilities not carried at fair value but for which fair value is disclosed (continued) The following table analyses within the fair value hierarchy the Fund's assets and liabilities (by class) not measured at fair value at 30 June 2016 but for which fair value is disclosed (continued):

Level 1 Level 2 Level 3 Total HI Sibilla Macro Fund (continued) EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Liabilities Other payables - (295) - (295) Net assets attributable to redeemable participating shareholders - (89,212) - (89,212)

Total - (89,507) - (89,507) HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

Cash and cash equivalents 1,257 - - 1,257 Receivable for investments sold - 2,485 - 2,485 Other receivables - 61 - 61 Total 1,257 2,546 - 3,803 Liabilities Payable for shares redeemed - (1,130) - (1,130) Other payables - (164) - (164) Net assets attributable to redeemable participating shareholders - (40,662) - (40,662)

Total - (41,956) - (41,956) HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

Cash and cash equivalents 5,554 - - 5,554 Collateral cash 1,338 - - 1,338 Receivable for investments sold 555 - 555 Other receivables 48 - 48 Total 6,892 603 - 7,495 Liabilities Bank overdraft (5) - - (5) Payable for investments purchased - (1,628) - (1,628) Other payables - (146) - (146) Net assets attributable to redeemable participating shareholders - (34,323) - (34,323)

Total (5) (36,097) (36,102)

85


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 15. Fair value measurement (continued) Assets and liabilities not carried at fair value but for which fair value is disclosed The following table analyses within the fair value hierarchy the Fund's assets and liabilities (by class) not measured at fair value at 30 June 2015 but for which fair value is disclosed:

Level 1 Level 2 Level 3 Total HI Numen Credit Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

Cash and cash equivalents 28,432 - - 28,432 Margin cash 3,247 - - 3,247 Collateral cash 29,326 - - 29,326 Receivable for shares subscribed - 7,586 - 7,586 Receivable for investments sold - 1,170 - 1,170 Other receivables - 6,064 - 6,064 Total 61,005 14,820 - 75,825 Liabilities Bank overdraft (838) - - (838) Payable for investments purchased - (750) - (750) Payable for shares redeemed - (2,242) - (2,242) Other payables - (1,025) - (1,025) Net assets attributable to redeemable participating shareholders

- (561,640) - (561,640)

Total (838) (565,657) - (566,495) HI Principia Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

Cash and cash equivalents 10,128 - - 10,128 Margin cash 3,416 - - 3,416 Collateral cash 18,050 - - 18,050 Other receivables - 175 - 175 Total 31,594 175 - 31,769 Liabilities Bank overdraft (36) - - (36) Payable for investments purchased - (1,353) - (1,353) Payable for shares redeemed - (207) - (207) Other payables - (444) - (444) Net assets attributable to redeemable participating shareholders

- (136,743) - (136,743)

Total (36) (138,747) - (138,783) HI Sibilla Macro Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

Cash and cash equivalents 3,491 - - 3,491 Margin cash 9,246 - - 9,246 Collateral cash 4,933 - - 4,933 Receivable for investments sold - 836 - 836 Other receivables - 88 - 88

Total 17,670 924 - 18,594

86


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 15. Fair value measurement (continued) Assets and liabilities not carried at fair value but for which fair value is disclosed (continued) The following table analyses within the fair value hierarchy the Fund's assets and liabilities (by class) not measured at fair value at 30 June 2015 but for which fair value is disclosed (continued):

Level 1 Level 2 Level 3 Total HI Sibilla Macro Fund (continued) EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Liabilities Payable for investments purchased - (441) - (441) Other payables - (235) - (235) Net assets attributable to redeemable participating shareholders - (51,535) - (51,535)

Total - (52,211) - (52,211) HI Core UCITS Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

Cash and cash equivalents 4,256 - - 4,256 Other receivables - 73 - 73 Total 4,256 73 - 4,329 Liabilities Payable for investments purchased - (497) - (497) Payable for shares redeemed - (9) - (9) Other payables - (146) - (146) Net assets attributable to redeemable participating shareholders

- (48,689) - (48,689)

Total - (49,341) - (49,341) HI Africa Opportunities Fund EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Assets

Cash and cash equivalents 10,745 - - 10,745 Collateral cash 2,741 - - 2,741 Receivable for investments sold - 229 - 229 Other receivables - 17 - 17 Total 13,486 246 - 13,732 Liabilities Payable for investments purchased - (5,500) - (5,500) Payable for shares redeemed - (9) - (9) Other payables - (104) - (104) Net assets attributable to redeemable participating shareholders - (29,130) - (29,130)

Total - (34,743) - (34,743) The assets and liabilities included in the above table are carried at amortised cost, their carrying values are a reasonable approximation of fair value. The net assets attributable to redeemable participating shareholders is calculated based on the net difference between total assets and all other liabilities of the Company in accordance with the Company’s offering memorandum. 16. Efficient portfolio management The Company may employ investment techniques and instruments for efficient portfolio management of the assets of the Company or of any Fund and for short-term investment purposes under the conditions and limits set out by the Central Bank under the UCITS Regulations, the Central Bank UCITS Regulations and in the Prospectus.

87


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 16. Efficient portfolio management (continued) The Investment Manager of the Company has identified that forward exchange contracts may be used for both investment and hedging purposes. Those foreign exchange contracts entered into for hedging purposes are utilised to reduce foreign exchange risk and all other financial derivative instruments (“FDI”) are used for investment purposes. Transaction costs on the purchase and sale of forward exchange contracts are included in the purchase and sale price of the investment. These costs cannot be practically or reliably gathered as they are embedded in the cost of the investment and cannot be separately verified or disclosed. Details of all open forward exchange contracts at the year end are disclosed in the Schedule of Investments. The Company did not enter into any repurchase agreements, reverse repurchase agreements or stock lending during the year. 17. Contingent Liabilities As at 30 June 2016, the Company did not have any significant commitments or contingent liabilities, other than those disclosed in the financial statements (30 June 2015: EUR Nil). 18. Exchange rates The following year ended EUR exchange rates have been used in this report:

EUR 30 June 2016 30 June 2015 CAD 1.4428 1.3910 CHF 1.0823 1.0413 DKK 7.4398 7.4599 GBP 0.8311 0.7085 HKD 8.6187 8.6379 JPY 113.9724 136.3391 KES 112.3170 110.5843 KRW 1,279.6477 1,242.8344 NOK 9.2964 8.7660 SEK 9.4128 9.2451 TWD 35.8381 34.3781 USD 1.1110 1.1142 ZAR 16.2699 13.5239 19. Distributions There were no distributions made by the Company during the year ended 30 June 2016 (year ended 30 June 2015: Nil). 20. Involvement in unconsolidated structured entities The table below describes the types of structured entities that the Fund does not consolidate but in which it holds an interest.

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

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

Investments in units issued by the funds

88


NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 30 June 2016 20. Involvement in unconsolidated structured entities (continued) The table below sets out interests held by the Fund in unconsolidated structured entities at 30 June 2016. The maximum exposure to loss is the carrying amount of the financial assets held. HI Core UCITS Fund

Investment in unlisted open-ended investment funds Number of

investee funds Total net assets

EUR'000 Equity Long only 2 687 Equity Long/Short 13 23,091 Event Driven 3 5,455 Global Equity 1 264 Macro 2 3,280 Relative Value 2 4,293

Total 23 37,070 During the year, the Fund did not provide financial support to unconsolidated structured entities and has no intention of providing financial or other support. The Fund can redeem units in the above investment funds on a daily or weekly basis. HI Numen Credit Fund, the HI Principia Fund, Hi Sibilla Macro Fund and HI Africa Opportunities Fund did not hold interests in unconsolidated structured entities as 30 June 2016. The table below sets out interests held by the Fund in unconsolidated structured entities at 30 June 2015. The maximum exposure to loss is the carrying amount of the financial assets held. HI Core UCITS Fund

Investment in unlisted open-ended investment funds Number of

investee funds Total net assets

EUR'000 Equity Long only 2 1,203

Equity Long/Short 19 31,555

Event Driven 1 2,503

Global Equity 1 623

Macro 2 3,420

Relative Value 3 4,759

Total 28 44,063 During the year, the Fund did not provide financial support to unconsolidated structured entities and has no intention of providing financial or other support. HI Numen Credit Fund, the HI Principia Fund and Hi Sibilla Macro Fund did not hold interests in unconsolidated structured entities at 30 June 2015. 21. Employees The Company had no employees during the year ended 30 June 2016 (30 June 2015: Nil). J.P. Morgan Administration Services (Ireland) Limited acts as a corporate administrator to the company in accordance with the terms of the service agreement. 22. Subsequent events On 13 October 2016, the Company and the Depositary entered into a new contract (the “Depository Agreement”) which replaces in its entirely the Custodian Agreement sets out the duties, responsibilities and liabilities of the Depository pursuant to the obligations for UCITS depositories under the Regulations (which implement Directive 2014/91/EU also known as UCITS V). 23. Approval of Financial Statements The Directors approved the financial statements on 24 October 2016.

89


HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (UNAUDITED) As at 30 June 2016

Investments Liquidity Instruments

Time Deposits (2015: 16.02%)

Japan (2015: 10.68%)

United Kingdom (2015: 5.34%)

Fair Value % of Net Investments Currency Holding EUR '000 Asset Value

Equities (2015: 0.00%)

Canada (2015: 0.00%) Valeant Pharmaceuticals International, Inc. USD 20,000 362 0.04

Canada total 362 0.04

Italy (2015: 0.00%) Anima Holding SpA EUR 588,000 2,489 0.25

Italy total 2,489 0.25

Spain (2015: 0.00%) Bankia SA EUR 3,166,000 2,044 0.20

Spain total 2,044 0.20

Switzerland (2015: 0.00%) Syngenta AG, ADR USD 43,577 3,012 0.30

Switzerland total 3,012 0.30

United States (2015: 0.00%) Hershey Co. (The) USD 14,973 1,529 0.15 Ingram Micro, Inc. USD 93,996 2,944 0.29 Monsanto Co. USD 78,202 7,286 0.73 Rite Aid Corp. USD 895,726 6,035 0.60

United States total 17,794 1.77

Total investments in Equities 25,701 2.56

Coupon Maturity Fair Value % of Net Investments Rate Date Currency Holding EUR '000 Asset Value Bonds

Government Fixed Coupon Securities (2015: 51.03%)

Cyprus (2015: 17.28%) Cyprus Government International Bond 6.50% 02/05/2020 EUR 46,149,000 53,994 5.38

Cyprus total 53,994 5.38

90


HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2016

Coupon Maturity Fair Value % of Net Investments Rate Date Currency Holding EUR '000 Asset Value Bonds (continued)

Government Fixed Coupon Securities (2015: 51.03%) (continued)

France (2015: 0.00%) France Treasury 0.00% 01/02/2017 EUR 50,000,000 50,168 5.00

France total 50,168 5.00

Greece (2015: 0.00%) Hellenic Republic Treasury 0.00% 08/07/2016 EUR 4,500,000 4,500 0.45

Greece total 4,500 0.45

Ireland (2015: 1.72%)

Italy (2015: 15.13%) Italy Buoni Ordinari del Tesoro BOT 0.00% 14/11/2016 EUR 40,000,000 40,034 3.99 Italy Buoni Ordinari del Tesoro BOT 0.00% 14/12/2016 EUR 65,000,000 65,066 6.48 Italy Buoni Ordinari del Tesoro BOT 0.00% 14/02/2017 EUR 50,000,000 50,065 4.99


Mexico (2015: 0.77%)

Portugal (2015: 0.00%) Portugal Treasury 0.00% 20/01/2017 EUR 20,000,000 19,993 1.99

Portugal total 19,993 1.99

Spain (2015: 16.13%) Spain Letras del Tesoro 0.00% 09/12/2016 EUR 40,000,000 40,047 3.99 Spain Letras del Tesoro 0.00% 20/01/2017 EUR 50,000,000 50,073 4.99 Spain Letras del Tesoro 0.00% 07/04/2017 EUR 50,000,000 50,096 4.99 Spain Letras del Tesoro 0.00% 12/05/2017 EUR 30,000,000 30,063 3.00 Spain Letras del Tesoro 0.00% 16/06/2017 EUR 30,000,000 30,071 3.00


United Kingdom (2015: 0.00%) UK Treasury 1.75% 22/01/2017 GBP 132,350,000 160,626 16.01

United Kingdom total 160,626 16.01

Total investments in Government Fixed Coupon Securities 644,796 64.26

Government Variable Coupon Securities (2015: 0.08%)

Greece (2015: 0.08%) Hellenic Republic Government Bond, FRN 3.00% 24/02/2023 EUR 1,162,500 868 0.09 Hellenic Republic Government Bond, FRN 3.00% 24/02/2024 EUR 1,162,500 849 0.08

91




Government Variable Coupon Securities (2015: 0.08%) (continued)

Greece (2015: 0.08%) (continued) Hellenic Republic Government Bond, FRN 3.00% 24/02/2025 EUR 1,162,500 830 0.08 Hellenic Republic Government Bond, FRN 3.00% 24/02/2026 EUR 1,162,500 818 0.08 Hellenic Republic Government Bond, FRN 3.00% 24/02/2027 EUR 1,162,500 797 0.08 Hellenic Republic Government Bond, FRN 3.00% 24/02/2028 EUR 1,162,500 780 0.08 Hellenic Republic Government Bond, FRN 3.00% 24/02/2029 EUR 1,162,500 769 0.08 Hellenic Republic Government Bond, FRN 3.00% 24/02/2030 EUR 1,162,500 757 0.08 Hellenic Republic Government Bond, FRN 3.00% 24/02/2031 EUR 1,162,500 750 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2032 EUR 1,162,500 740 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2033 EUR 1,162,500 730 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2034 EUR 1,162,500 721 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2035 EUR 1,162,500 712 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2036 EUR 1,162,500 706 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2037 EUR 1,162,500 701 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2038 EUR 1,162,500 696 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2039 EUR 1,162,500 695 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2040 EUR 1,162,500 695 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2041 EUR 1,162,500 694 0.07 Hellenic Republic Government Bond, FRN 3.00% 24/02/2042 EUR 1,162,500 696 0.07

Greece total 15,004 1.49

Total investments in Government Variable Coupon Securities 15,004 1.49

Corporate Fixed Coupon Securities (2015: 8.95%)

Germany (2015: 0.00%) Deutsche Bank AG 4.50% 19/05/2026 EUR 10,000,000 9,673 0.96

Germany total 9,673 0.96

Greece (2015: 1.92%)

Ireland (2015: 0.18%)

Italy (2015: 2.47%) Banca Carige SpA 8.34% 12/04/2018 EUR 14,800,000 9,324 0.93


Luxembourg (2015: 0.00%) Bank of New York Mellon Luxembourg SA (The) 0.00% 30/12/2099 EUR 27,500,000 2,962 0.30

Luxembourg total 2,962 0.30

92




Corporate Fixed Coupon Securities (2015: 8.95%) (continued)

Norway (2015: 0.65%) Norske Skog AS 11.75% 15/12/2019 EUR 7,100,000 5,013 0.50

Norway total 5,013 0.50

Portugal (2015: 3.73%) Banco Espirito Santo SA 4.00% 21/01/2019 EUR 16,500,000 4,331 0.43

Portugal total 4,331 0.43

Total investments in Corporate Fixed Coupon Securities 31,303 3.12

Corporate Variable Coupon Securities (2015: 7.85%)

Italy (2015: 7.07%)

Spain (2015: 0.78%)

Convertible Fixed Coupon Security (2015: 0.09%)

France (2015: 0.09%)

Convertible Variable Coupon Security (2015: 0.39%)

Luxembourg (2015: 0.39%)

Total Bonds 691,103 68.87

Notional Reference Buy/ Maturity Underlying

Exposure Fair Value % of Net Amount Currency Counterparty Entity Sell Date EUR '000 EUR '000 Asset Value

Credit Default Swaps

4,000,000 EUR Barclays Banca Monte dei Paschi di Siena SpA

Buy 20/09/2020 4,000 927 0.09

25,000,000 EUR Barclays iTraxx Europe Series 25 Version 1

Sell 20/06/2021 25,000 204 0.02

1,500,000 EUR Barclays Norske Skogindustrier ASA

Buy 20/09/2020 1,500 1,030 0.10

93





Credit Default Swaps (continued)

5,000,000 EUR BNP Paribas Deutsche Bank AG Buy 20/12/2020 5,000 228 0.02 1,000,000 EUR Citigroup Banca Monte dei

Paschi di Siena SpA Buy 20/12/2020 1,000 240 0.03

135,000,000 EUR Citigroup iTraxx Europe Series 25 Version 1

Sell 20/06/2021 135,000 1,105 0.11

18,000,000 EUR Citigroup iTraxx Europe Series 25 Version 1

Sell 20/06/2021 18,000 147 0.02

100,000,000 EUR Goldman Sachs iTraxx Europe Series 25 Version 1

Sell 20/06/2021 100,000 821 0.08


Sell 20/06/2021 25,000 205 0.02


Sell 20/06/2021 18,000 147 0.02

5,000,000 EUR J.P. Morgan Deutsche Bank AG Buy 20/12/2020 5,000 228 0.02 5,000,000 EUR J.P. Morgan Deutsche Bank AG Buy 20/12/2020 5,000 228 0.02 25,000,000 EUR J.P. Morgan iTraxx Europe

Senior Financials Series 25 Version 1

Buy 20/06/2021 25,000 137 0.01

1,000,000 EUR J.P. Morgan Norske Skogindustrier ASA

Buy 20/09/2017 1,000 145 0.02

27,000,000 EUR Morgan Stanley iTraxx Europe Series 25 Version 1

Sell 20/06/2021 27,000 221 0.02

25,000,000 EUR Morgan Stanley iTraxx Europe Series 25 Version 1

Sell 20/06/2021 25,000 205 0.02

5,000,000 USD Barclays Hellenic Republic Buy 20/09/2016 4,501 118 0.01 10,000,000 USD Barclays Ireland Buy 20/12/2024 9,001 98 0.01 2,000,000 USD Barclays Republic of Cyprus Buy 20/06/2020 1,800 110 0.01 2,000,000 USD Barclays Republic of Cyprus Buy 20/06/2020 1,800 110 0.01 5,000,000 USD Barclays Republic of Italy Buy 20/12/2019 4,501 40 – 20,000,000 USD BNP Paribas Kingdom of Spain Buy 20/09/2025 18,003 714 0.07 20,000,000 USD BNP Paribas Kingdom of Spain Buy 20/09/2025 18,003 714 0.07 10,000,000 USD BNP Paribas Kingdom of Spain Sell 20/06/2020 9,001 57 0.01 20,000,000 USD BNP Paribas People's Republic of

China Buy 20/12/2020 18,003 81 0.01

5,000,000 USD Citigroup Federative Republic of Brazil

Buy 20/06/2021 4,501 428 0.04

5,000,000 USD Citigroup People's Republic of China

Buy 20/12/2020 4,501 20 –

10,000,000 USD Goldman Sachs French Republic Buy 20/12/2024 9,001 316 0.03 10,000,000 USD Goldman Sachs French Republic Buy 20/12/2024 9,001 316 0.03

94






10,000,000 USD Goldman Sachs Kingdom of Belgium

Sell 20/12/2024 9,001 126 0.01


Sell 20/12/2024 9,001 126 0.01

35,000,000 USD Goldman Sachs Kingdom of Spain Sell 20/06/2021 31,505 62 0.01 10,000,000 USD Goldman Sachs People's Republic of

China Buy 20/06/2021 9,001 91 0.01

10,000,000 USD Goldman Sachs Portuguese Republic Buy 20/12/2020 9,001 686 0.07 20,000,000 USD Goldman Sachs United Kingdom of

Great Britain and Northern Ireland

Sell 20/03/2017 18,003 124 0.01

25,000,000 USD J.P. Morgan Kingdom of Spain Buy 20/09/2025 22,503 892 0.09 20,000,000 USD J.P. Morgan Kingdom of Spain Buy 20/09/2025 18,003 714 0.07 10,000,000 USD J.P. Morgan Republic of Italy Buy 20/12/2019 9,001 81 0.01 5,000,000 USD J.P. Morgan Republic of Italy Buy 20/12/2019 4,501 40 – 5,000,000 USD J.P. Morgan Republic of Italy Buy 20/03/2020 4,501 50 0.01 10,000,000 USD J.P. Morgan Republic of Italy Buy 20/09/2025 9,001 707 0.07 10,000,000 USD Morgan Stanley Federal Republic of

Germany Sell 20/03/2020 9,001 38 –

5,000,000 USD Morgan Stanley Portuguese Republic Buy 20/12/2020 4,501 343 0.04 10,000,000 USD Societe Generale Federal Republic of

Germany Buy 20/03/2025 9,001 84 0.01

10,000,000 USD Societe Generale Kingdom of Spain Buy 20/09/2025 9,001 357 0.04 10,000,000 USD Societe Generale Kingdom of Spain Sell 20/06/2020 9,001 57 0.01 5,000,000 USD Societe Generale Portuguese Republic Buy 20/12/2020 4,501 343 0.03 5,000,000 USD Societe Generale Republic of Italy Buy 20/09/2025 4,501 354 0.04

Total unrealised gain on Credit Default Swaps (2015: 4.36%) 14,615 1.46

3,000,000 EUR Barclays Auchan Holding SA Buy 20/12/2020 3,000 (64) (0.01) 35,000,000 EUR Barclays iTraxx Europe


Sell 20/06/2021 35,000 (193) (0.02)

5,000,000 EUR Barclays Roche Holdings, Inc. Buy 20/09/2020 5,000 (156) (0.02) 10,000,000 EUR BNP Paribas Allianz SE Buy 20/12/2020 10,000 (247) (0.03) 25,000,000 EUR BNP Paribas iTraxx Europe


Sell 20/06/2021 25,000 (138) (0.01)

50,000,000 EUR BNP Paribas iTraxx Europe Senior Financials

Series 25 Version 1

Sell 20/06/2021 50,000 (275) (0.03)

95






50,000,000 EUR BNP Paribas iTraxx Europe Senior Financials

Series 25 Version 1

Sell 20/06/2021 50,000 (276) (0.03)

10,000,000 EUR BNP Paribas Suedzucker AG Buy 20/12/2020 10,000 (186) (0.02) 5,000,000 EUR BNP Paribas Zurich Insurance

Co. Ltd. Buy 20/12/2020 5,000 (118) (0.01)

10,000,000 EUR BNP Paribas Zurich Insurance Co. Ltd.

Buy 20/12/2020 10,000 (236) (0.02)

5,000,000 EUR Citigroup Allianz SE Buy 20/12/2020 5,000 (123) (0.01) 10,000,000 EUR Citigroup Heineken NV Buy 20/12/2020 10,000 (246) (0.02) 5,000,000 EUR Citigroup Intesa Sanpaolo

SpA Sell 20/06/2021 5,000 (488) (0.05)

10,000,000 EUR Citigroup Vivendi Buy 20/09/2020 10,000 (156) (0.02) 5,000,000 EUR Credit Suisse Auchan Holding SA Buy 20/12/2020 5,000 (106) (0.01) 10,000,000 EUR Credit Suisse Zurich Insurance

Co. Ltd. Buy 20/12/2020 10,000 (236) (0.02)

3,000,000 EUR Goldman Sachs Accor Buy 20/12/2020 3,000 (9) – 5,000,000 EUR Goldman Sachs Roche Holdings, Inc. Buy 20/09/2020 5,000 (155) (0.01) 2,000,000 EUR J.P. Morgan Accor Buy 20/12/2020 2,000 (6) – 5,000,000 EUR J.P. Morgan Deutsche Telekom

AG Buy 20/09/2020 5,000 (125) (0.01)

5,000,000 EUR J.P. Morgan Intesa Sanpaolo SpA

Sell 20/06/2021 5,000 (125) (0.01)

5,000,000 EUR J.P. Morgan Roche Holdings, Inc.

Buy 20/09/2020 5,000 (156) (0.02)

25,000,000 EUR Morgan Stanley iTraxx Europe Senior Financials

Series 25 Version 1

Sell 20/06/2021 25,000 (138) (0.01)

15,000,000 EUR Societe Generale Allianz SE Buy 20/12/2020 15,000 (370) (0.04) 5,000,000 EUR Societe Generale Deutsche Telekom

AG Buy 20/09/2020 5,000 (125) (0.01)

5,000,000 EUR Societe Generale Deutsche Telekom AG

Buy 20/09/2020 5,000 (125) (0.01)

5,000,000 EUR Societe Generale Vivendi Buy 20/09/2020 5,000 (78) (0.01) 15,000,000 EUR Societe Generale Zurich Insurance

Co. Ltd. Buy 20/12/2020 15,000 (355) (0.04)

7,500,000 USD Barclays Honeywell International, Inc.

Buy 20/12/2020 6,751 (221) (0.02)

10,000,000 USD Barclays Ireland Sell 20/12/2024 9,001 (27) – 2,000,000 USD Barclays Rite Aid

Corporation Buy 20/06/2021 1,800 (293) (0.03)

75,000,000 USD BNP Paribas CDX.NA.IG.26-V1 Buy 20/06/2021 67,510 (741) (0.07)

96






12,500,000 USD BNP Paribas United Kingdom of Great Britain and Northern Ireland

Buy 20/06/2026 11,252 (214) (0.02)

15,000,000 USD Citigroup United Kingdom of Great Britain and Northern Ireland

Buy 20/12/2020 13,502 (362) (0.04)


Buy 20/12/2020 13,502 (362) (0.04)


Buy 20/06/2021 18,003 (500) (0.05)

7,500,000 USD Credit Suisse Honeywell International, Inc.

Buy 20/12/2020 6,751 (221) (0.02)

10,000,000 USD Goldman Sachs French Republic Sell 20/12/2024 9,001 (286) (0.03) 10,000,000 USD Goldman Sachs French Republic Sell 20/12/2024 9,001 (286) (0.03) 10,000,000 USD Goldman Sachs Kingdom of

Belgium Buy 20/12/2024 9,001 (99) (0.01)


Buy 20/12/2024 9,001 (99) (0.01)

4,000,000 USD Goldman Sachs Rite Aid Corporation

Buy 20/06/2021 3,601 (587) (0.06)

15,000,000 USD Goldman Sachs United Kingdom of Great Britain and Northern Ireland

Buy 20/12/2020 13,502 (362) (0.04)


Buy 20/06/2021 18,003 (500) (0.05)


Buy 20/12/2025 13,502 (276) (0.03)


Buy 20/06/2026 18,003 (342) (0.03)

40,000,000 USD J.P. Morgan United Kingdom of Great Britain and Northern Ireland

Buy 20/06/2021 36,005 (1,000) (0.10)

5,000,000 USD Morgan Stanley Honeywell International, Inc.

Buy 20/12/2020 4,501 (147) (0.02)

97






7,500,000 USD Morgan Stanley Honeywell International, Inc.

Buy 20/12/2020 6,751 (221) (0.02)

10,000,000 USD Morgan Stanley United Kingdom of Great Britain and Northern Ireland

Buy 20/12/2019 9,001 (215) (0.02)

10,000,000 USD Morgan Stanley United Kingdom of Great Britain and Northern Ireland

Buy 20/12/2024 9,001 (209) (0.02)

Total unrealised loss on Credit Default Swaps (2015: (1.62)%) (12,583) (1.26)

Notional Maturity Underlying

Exposure Fair Value % of Net Amount Currency Counterparty Description Date EUR '000 EUR'000 Asset Value

Interest Rate Swaps

50,000,000 USD Goldman Sachs Receive floating USD Shell

10 year 11/09/2025 45,007 459 0.05

Total unrealised gain on Interest Rate Swaps (2015: 0.22%) 459 0.05

Total unrealised loss on Interest Rate Swaps (2015: (0.22)%) – –

Country Counterparty Currency Holding

Underlying Exposure EUR '000

Fair Value EUR '000

% of Net Asset Value

Contracts for Difference

Germany (2015: 0.00%) Bayer AG UBS EUR 41,699 42 36 –

Germany total 36 –

Italy (2015: 0.00%) Banca Carige SpA J.P. Morgan EUR (5,418,584) (5,419) 1,052 0.11

Banca Carige SpA1 UBS EUR (5,418,584) (5,419) – – Intesa Sanpaolo SpA UBS EUR 5,475,000 5,475 427 0.04 Telecom Italia SpA/Milano UBS EUR 6,515,190 6,515 166 0.02


United Kingdom (2015: 0.00%) Lloyds Banking Group PLC UBS GBP (18,347,395) (22,077) 196 0.02 SABMiller plc J.P. Morgan GBP 378,608 456 344 0.03

98





Fair Value EUR '000


Contracts for Difference (continued)

United Kingdom (2015: 0.00%) (continued) SABMiller plc1 UBS GBP 378,608 456 – –

United Kingdom total 540 0.05

Total unrealised gain on Contracts for Difference (2015: 0.00%) 2,221 0.22

Austria (2015: 0.00%) Raiffeisen Bank International AG UBS EUR (262,500) (263) (93) (0.01)

Austria total (93) (0.01)

Brazil (2015: 0.00%) Banco Bradesco SA UBS USD (335,000) (302) (253) (0.03)

Brazil total (253) (0.03)

Germany (2015: 0.00%) Deutsche Boerse AG UBS EUR 87,128 87 (12) –

Germany total (12) –

Italy (2015: 0.00%) Banco Popolare SC UBS EUR 1,000,000 1,000 (76) (0.01) Telecom Italia SpA/Milano UBS EUR (5,290,601) (5,291) (172) (0.01)

Italy total (248) (0.02)

Spain (2015: 0.00%) CaixaBank SA UBS EUR (1,088,000) (1,088) (14) –

Spain total (14) –

United Kingdom (2015: (0.01)%) London Stock Exchange Group plc UBS GBP (197,078) (237) (277) (0.03)

United Kingdom total (277) (0.03)

United States (2015: 0.00%) Fidelity & Guaranty Life UBS USD (41,306) (37) (25) –

United States total (25) –

Total unrealised loss on Contracts for Difference (2015: (0.01)%) (922) (0.09)

99



Security Maturity Underlying

Exposure Fair Value % of Net Quantity Description Date Currency Counterparty EUR '000 EUR '000 Asset Value

Options Purchased

2,000 Euro Stoxx Banks, Call, 105.000 15/07/2016 EUR UBS 210 5 –

250 Euro Stoxx Banks, Call, 100.000 15/07/2016 EUR UBS 25 1 –

2,000 EuroDollar, Put, 99.000 15/07/2016 USD UBS 178 12 – 420 GBP/USD, Put, 135.000 09/09/2016 USD UBS 51 1,127 0.11 128 GBP/USD, Put, 133.000 09/09/2016 USD UBS 15 265 0.03 120 GBP/USD, Put, 133.000 09/12/2016 USD UBS 14 337 0.03

Total unrealised gain on Options Purchased (2015: 0.16%) 1,747 0.17

Options Written

(250) Euro Stoxx Banks, Put, 82.500 15/07/2016 EUR UBS (21) (33) –

(2,000) Euro Stoxx Banks, Put, 87.500 15/07/2016 EUR UBS (175) (570) (0.06)

Total unrealised loss on Options Written (2015: 0.00%) (603) (0.06)

Swaptions Purchased

50,000,000 Credit Default Swap Index Option, Put, 0.008 20/07/2016 EUR Citigroup 400 69 0.01

400,000,000

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Put, 0.008 20/07/2016 EUR BNP Paribas 3,200 553 0.06

75,000,000

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Put, 0.008 20/07/2016 EUR Citigroup 600 104 0.01

300,000,000

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Call, 0.009 17/08/2016 EUR Citigroup 2,700 931 0.09

300,000,000

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Call, 0.009 17/08/2016 EUR Goldman Sachs 2,700 931 0.09

Total unrealised gain on Swaptions Purchased (2015: 0.00%) 2,588 0.26

Swaptions Written

(800,000,000)

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Call, 0.007 20/07/2016 EUR BNP Paribas (5,600) (245) (0.02)

100





Swaptions Written (continued)

(100,000,000)

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Call, 0.007 20/07/2016 EUR Citigroup (700) (31) –

(150,000,000)

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Call, 0.007 20/07/2016 EUR Citigroup (1,050) (46) –

(300,000,000)

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Put, 0.009 20/07/2016 EUR Citigroup (2,700) (461) (0.05)

(300,000,000)

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Put, 0.009 20/07/2016 EUR Goldman Sachs (2,700) (460) (0.05)

(50,000,000)

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Call, 0.007 20/07/2016 EUR J.P. Morgan (350) (15) –

(50,000,000)

iTraxx Europe Series 25 Version 1 EUR Fixed 100 bp 20/06/2021 0.01%, Put, 0.007 20/07/2016 EUR J.P. Morgan (350) (381) (0.04)

Total unrealised loss on Swaptions Written (2015: 0.00%) (1,639) (0.16)

Currency Amount Currency Amount Underlying

Exposure Maturity Fair Value % of Net Purchased Purchased Sold Sold EUR '000 Date EUR '000 Asset Value

Forward Currency Contracts2

CHF 4,780,000 EUR 4,329,375 4,417 01/07/2016 87 0.01 CHF 4,020,000 EUR 3,640,858 3,714 01/07/2016 74 0.01 CHF 2,650,000 EUR 2,400,011 2,449 01/07/2016 49 0.01 CHF 190,000 EUR 174,777 176 01/07/2016 1 – CHF 4,830,000 EUR 4,436,891 4,463 29/07/2016 29 – CHF 4,170,000 EUR 3,832,439 3,853 29/07/2016 23 – CHF 2,490,000 EUR 2,287,930 2,301 29/07/2016 14 – EUR 75,133,679 GBP 57,000,000 68,588 01/07/2016 6,546 0.65 EUR 35,836,435 GBP 28,500,000 34,294 01/07/2016 1,543 0.15 EUR 18,764,760 GBP 14,900,000 17,929 01/07/2016 836 0.08 EUR 2,821,526 GBP 2,150,000 2,587 01/07/2016 234 0.02 EUR 240,857 GBP 190,000 229 01/07/2016 12 – EUR 190,053 GBP 150,000 180 01/07/2016 10 – EUR 166,108,914 GBP 136,500,000 164,250 29/07/2016 1,981 0.20

101





Forward Currency Contracts2 (continued)

EUR 8,255,661 USD 9,100,000 8,191 01/07/2016 64 0.01 HKD 389,650,000 USD 50,167,375 90,367 12/07/2016 59 0.01 RUB 878,900,000 EUR 9,400,000 12,385 27/02/2017 2,166 0.22 USD 37,550,000 EUR 33,662,427 33,800 01/07/2016 137 0.01 USD 23,780,000 EUR 21,319,190 21,405 01/07/2016 86 0.01 USD 16,650,000 EUR 14,926,751 14,987 01/07/2016 60 0.01 USD 2,830,000 EUR 2,536,781 2,547 01/07/2016 11 – USD 150,000 EUR 132,286 135 01/07/2016 3 – USD 120,000 EUR 106,223 108 01/07/2016 2 – USD 100,000 EUR1 89,803 90 01/07/2016 – – USD 50,000 EUR1 44,903 45 01/07/2016 – – USD 36,350,000 EUR 32,686,057 32,720 29/07/2016 3 – USD 16,630,000 EUR 14,953,758 14,969 29/07/2016 2 – USD 2,360,000 EUR1 2,122,121 2,124 29/07/2016 – –

Total unrealised gain on Forward Currency Contracts (2015: 0.06%) 14,032 1.40

CHF 50,000 EUR1 46,561 46 01/07/2016 – – EUR 36,902 CHF1 40,000 37 01/07/2016 – – EUR 147,583 CHF1 160,000 148 01/07/2016 – – EUR 19,534,628 GBP 16,300,000 19,614 01/07/2016 (79) (0.01) EUR 23,730,124 GBP 19,800,000 23,825 01/07/2016 (95) (0.01) EUR 12,178,718 GBP 10,200,000 12,274 29/07/2016 (86) (0.01) EUR 9,880,832 RUB 878,900,000 12,385 27/02/2017 (1,685) (0.17) EUR 89,912 USD1 100,000 90 01/07/2016 – – EUR 89,749 USD1 100,000 90 01/07/2016 – – EUR 1,349,040 USD 1,500,000 1,350 01/07/2016 (1) – EUR 88,496 USD 100,000 90 01/07/2016 (2) – EUR 425,961 USD 480,000 432 01/07/2016 (6) – EUR 39,466,095 USD 44,000,000 39,606 01/07/2016 (140) (0.01) EUR 47,743,212 USD 53,100,000 47,797 29/07/2016 (10) – GBP 100,000 EUR 131,927 120 01/07/2016 (12) – GBP 200,000 EUR 253,635 241 01/07/2016 (13) – GBP 380,000 EUR 486,914 457 01/07/2016 (30) – GBP 450,000 EUR 576,627 541 01/07/2016 (35) – GBP 43,300,000 EUR 57,071,103 52,103 01/07/2016 (4,969) (0.50) GBP 47,400,000 EUR 62,486,586 57,036 01/07/2016 (5,450) (0.54) GBP 100,000 EUR 121,558 120 29/07/2016 (1) – GBP 43,880,000 EUR 53,307,740 52,801 29/07/2016 (546) (0.06) GBP 45,200,000 EUR 54,911,346 54,389 29/07/2016 (563) (0.06) USD 450,000 EUR1 405,105 405 01/07/2016 – – USD 24,140,000 EUR 21,726,315 21,729 29/07/2016 (17) – USD 50,000,000 HKD 389,650,000 90,216 12/07/2016 (209) (0.02) USD 50,000,000 HKD 390,225,000 90,283 11/10/2016 (318) (0.03) USD 100,000,000 HKD 776,040,000 180,055 15/12/2016 (135) (0.01)

102






USD 50,000,000 HKD 388,000,000 90,025 07/03/2017 (58) (0.01)

Total unrealised loss on Forward Currency Contracts (2015: (0.01)%) (14,460) (1.44)

No. of Underlying

Exposure Notional Fair Value % of Net Investments contracts Currency EUR '000 Amount EUR '000 Asset Value

Futures Contracts

United States (2015: 0.01%)

Total unrealised gain on Futures Contracts (2015: 0.01%) – –

Germany (2015: 0.00%) EURO STOXX Bank Index 16/09/2016 2,041 EUR 8,429 102,050 (29) –

Euro-bund 08/09/2016 (69) EUR (11,531) 6,900,000 (36) (0.01)

Germany total (65) (0.01)

United States (2015: 0.00%) S&P 500 Emini Index 16/09/2016 (227) USD (21,355) 11,350 (807) (0.08)

US 10 Year Note Bond 21/09/2016 (27) USD (3,232) 2,700,000 (46) –

United States total (853) (0.08)

Total unrealised loss on Futures Contracts (2015: 0.00%) (918) (0.09)

Total financial assets at fair value through profit or loss 752,466 74.99 Total financial liabilities at fair value through profit or loss (31,125) (3.10) Cash and cash equivalents 286,882 28.59 Other assets and liabilities (4,756) (0.48)

Net asset value attributable to redeemable participating shareholders 1,003,467 100.00

% of total Analysis of total assets assets

Transferable securities admitted to official stock exchange listing or traded on a regulated market 68.27

Financial derivative instruments 0.41 OTC financial derivative instruments 2.98 Other Assets 28.34

Total Assets 100.00


2Forward currency contracts are traded with the following counterparty: J.P. Morgan.

103


HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (UNAUDITED) As at 30 June 2016

Coupon Maturity Fair Value % of Net Investments Rate Date Holding EUR '000 Asset Value Liquidity Instruments


Japan (2015: 7.38%) Sumitomo Mitsui Banking Corp. (0.51)% 07/07/2016 17,072,970 17,073 9.62

Japan total 17,073 9.62

United Kingdom (2015: 3.73%) Lloyds Bank plc (0.48)% 07/07/2016 10,076,357 10,077 5.68


Total investments in Time Deposits 27,150 15.30

Total Liquidity Instruments 27,150 15.30


Equities (2015: 69.05%)

Austria (2015: 0.00%) ams AG CHF 355,000 8,848 4.99

Austria total 8,848 4.99

France (2015: 18.69%) Accor SA EUR 104,000 3,609 2.03 Adocia EUR 4,000 183 0.10 Elis SA EUR 148,000 2,334 1.32 Gecina SA, REIT EUR 37,000 4,532 2.55 Numericable-SFR SA EUR 219,000 4,952 2.79 Societe BIC SA EUR 21,500 2,728 1.54 Soitec EUR 7,252,896 3,880 2.19 Technicolor SA EUR 2,076,643 11,647 6.57

France total 33,865 19.09

Germany (2015: 12.85%) CompuGroup Medical SE EUR 50,000 1,871 1.05 Freenet AG EUR 223,000 5,134 2.89 Stroeer SE & Co. KGaA EUR 76,000 3,135 1.77

Germany total 10,140 5.71

Ireland (2015: 4.07%) Greencore Group plc GBP 1,210,000 4,486 2.53 UDG Healthcare plc GBP 744,400 5,305 2.99

Ireland total 9,791 5.52

104


HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2016


Equities (2015: 69.05%) (continued)

Italy (2015: 3.34%)

Netherlands (2015: 5.39%) Gemalto NV EUR 164,000 8,983 5.06 GrandVision NV EUR 179,185 4,197 2.37

Netherlands total 13,180 7.43

Spain (2015: 5.68%) Tecnicas Reunidas SA EUR 216,000 5,777 3.26


Switzerland (2015: 14.91%) Aryzta AG CHF 167,000 5,525 3.11 Komax Holding AG CHF 7,310 1,362 0.77

Switzerland total 6,887 3.88

United Kingdom (2015: 4.12%) Cambian Group plc GBP 2,209,012 1,492 0.84 Dialog Semiconductor plc EUR 219,271 5,888 3.32 Essentra plc GBP 824,000 5,089 2.87 Interserve plc GBP 1,562,000 4,896 2.76 Micro Focus International plc GBP 79,124 1,535 0.86 Sophos Group plc GBP 1,100,000 2,778 1.57





Fair Value EUR '000



Belgium (2015: 0.09%)

Denmark (2015: 0.15%)

France (2015: 0.36%) Altran Technologies SA BNP Paribas EUR 340,000 340 34 0.02 Ipsen SA BNP Paribas EUR 56,303 56 48 0.03 Korian SA BNP Paribas EUR 181,566 182 85 0.05 Valeo SA BNP Paribas EUR (78,000) (78) 326 0.18

France total 493 0.28

105





Fair Value EUR '000



European Union (2015: 0.00%) STOXX Europe Small 200 Index

UBS EUR (199,600) (200) 805 0.45

STOXX Europe 600 Optimised Technology Index

UBS EUR (29,900) (30) 74 0.04

European Union total 879 0.49

Germany (2015: 0.00%) GEA Group AG BNP Paribas EUR (40,000) (40) 34 0.02 HeidelbergCement AG BNP Paribas EUR (38,000) (38) 1 – Infineon Technologies AG BNP Paribas EUR (254,000) (254) 24 0.01

Germany total 59 0.03

Switzerland (2015: 0.03%) Dufry BNP Paribas CHF (21,500) (20) 166 0.09

Switzerland total 166 0.09


Total unrealised gain on Contracts for Difference (2015: 1.18%) 1,597 0.89

Canada (2015: 0.00%) Entertainment One Ltd BNP Paribas GBP 3,039,329 3,657 (166) (0.09)

Canada total (166) (0.09)

Denmark (2015: 0.00%) Pandora A/S BNP Paribas DKK (28,950) (4) (106) (0.06)

Denmark total (106) (0.06)

European Union (2015: (0.00)%) STOXX Europe 600 Optimised Chemicals Index

UBS EUR (2,025) (2) (144) (0.08)

European Union total (144) (0.08)

France (2015: 0.00%) Alstom SA BNP Paribas EUR 127,900 128 (93) (0.05) Bureau Veritas SA BNP Paribas EUR (93,000) (93) (37) (0.02) Gaztransport Et Technigaz SA BNP Paribas EUR 137,000 137 (113) (0.06) Legrand SA BNP Paribas EUR (58,000) (58) (100) (0.06) Sopra Steria Group BNP Paribas EUR 40,784 41 (702) (0.40)

France total (1,045) (0.59)

106





Fair Value EUR '000



Germany (2015: (2.79)%) Brenntag AG BNP Paribas EUR (61,000) (61) (112) (0.06) Covestro AG BNP Paribas EUR (45,000) (45) (42) (0.02) Zalando SE BNP Paribas EUR (72,000) (72) (39) (0.02)


Spain (2015: (0.01)%)

Switzerland (2015: (0.02)%) U-Blox BNP Paribas CHF (10,800) (10) (271) (0.15)

Switzerland total (271) (0.15)

United Kingdom (2015: (0.38)%) Auto Trader Group plc BNP Paribas GBP (400,000) (481) (91) (0.05) Babcock International Group plc BNP Paribas GBP (163,000) (196) (23) (0.01) Worldpay Group plc BNP Paribas GBP (528,500) (636) (63) (0.04)

United Kingdom total (177) (0.10)

Total unrealised loss on Contracts for Difference (2015: (3.20)%) (2,102) (1.17)

Fair Value % of Net EUR '000 Asset Value

Total unrealised gain on Options Purchased (2015: 0.09%) – –

Total unrealised loss on Options Written (2015: (0.04)%) – –




CHF 2,197,926 EUR 1,993,045 2,031 01/07/2016 38 0.02 CHF 5,900,000 EUR 5,434,608 5,451 05/07/2016 17 0.01 CHF 707,706 EUR 651,315 654 05/07/2016 2 – EUR 22,405,318 GBP 17,358,941 20,888 05/07/2016 1,518 0.86 EUR 4,686,620 GBP 3,600,000 4,332 05/07/2016 355 0.20 EUR 3,742,693 GBP 3,000,000 3,610 05/07/2016 133 0.07 EUR 782,831 GBP 600,000 722 05/07/2016 61 0.03 EUR 324,787 GBP 250,000 301 05/07/2016 24 0.01 EUR 576,824 GBP 460,585 554 05/07/2016 22 0.01

107






EUR 5,104,015 SEK 47,433,918 5,039 05/07/2016 65 0.04 GBP 990,490 EUR 1,190,199 1,192 05/07/2016 2 – USD 3,318,411 EUR 2,978,221 2,987 01/07/2016 9 0.01 USD 471,784 EUR 423,407 425 01/07/2016 1 –

Total unrealised gain on Forward Currency Contracts (2015: 0.22%) 2,247 1.26

DKK 511,339 EUR2 68,786 69 05/07/2016 – – EUR 22,943,795 CHF 25,345,499 23,418 05/07/2016 (475) (0.27) EUR 18,732 USD2 21,340 19 01/07/2016 – – EUR 2,569,546 USD 2,873,299 2,586 05/07/2016 (17) (0.01) GBP 1,500,000 EUR 1,864,724 1,805 05/07/2016 (60) (0.03) GBP 1,439,069 EUR 1,859,214 1,732 05/07/2016 (128) (0.07) SEK 47,000,000 EUR 5,044,097 4,993 05/07/2016 (51) (0.03) USD 9,972 EUR2 9,029 9 01/07/2016 – –

Total unrealised loss on Forward Currency Contracts (2015: (0.40)%) (731) (0.41)

No. of Underlying


Futures Contracts

Switzerland (2015: 0.08%)


Total unrealised gain on Futures Contracts (2015: 0.24%) – –

Germany (2015: 0.00%) DAX Index 16/09/2016 (35) EUR (8,460) 875 (88) (0.05)


Total unrealised loss on Futures Contracts (2015: 0.00%) (88) (0.05)

Total financial assets at fair value through profit or loss 141,160 79.55 Total financial liabilities at fair value through profit or loss (2,921) (1.63) Cash and cash equivalents 43,784 24.68 Other assets and liabilities (4,620) (2.60)

Net asset value attributable to redeemable participating shareholders 177,403 100.00

108




Transferable securities admitted to official stock exchange listing or traded on a regulated market 58.08 OTC financial derivative instruments 2.03 Deposits 14.31 Other Assets 25.58

Total Assets 100.00



109


HI SIBILLA MACRO FUND SCHEDULE OF INVESTMENTS (UNAUDITED) As at 30 June 2016

Investments

Exchange Traded Notes (2015: 0.66%)




Japan (2015: 16.69%) Sumitomo Mitsui Banking Corp. (0.36)% 11/07/2016 6,101,077 6,101 6.84 Sumitomo Mitsui Banking Corp. 0.65% 18/07/2016 1,200,000 1,080 1.21 Sumitomo Mitsui Banking Corp. 0.45% 22/08/2016 4,005,845 3,606 4.04 Sumitomo Mitsui Banking Corp. 0.65% 08/09/2016 601,400 541 0.61 Sumitomo Mitsui Banking Corp. (0.06)% 30/11/2016 1,000,000 1,000 1.12 Sumitomo Mitsui Banking Corp. (0.04)% 13/02/2017 1,500,135 1,500 1.68


United Kingdom (2015: 18.21%) Lloyds Bank plc 0.00% 07/07/2016 2,001,894 1,802 2.02 Lloyds Bank plc 0.40% 20/07/2016 6,022,943 5,421 6.08 Lloyds Bank plc 0.40% 20/07/2016 5,505,509 4,956 5.56 Lloyds Bank plc 0.07% 16/09/2016 600,000 600 0.67 Lloyds Bank plc (0.03)% 11/01/2017 4,000,462 4,001 4.48


United States (2015: 7.84%) BNP Paribas SA 0.00% 01/07/2016 2,000,000 1,800 2.02 BNP Paribas SA 0.00% 01/07/2016 1,500,000 1,350 1.51 BNP Paribas SA 0.00% 03/07/2016 3,000,000 2,701 3.03 BNP Paribas SA 0.00% 05/07/2016 5,000,000 4,501 5.04 BNP Paribas SA 0.00% 05/07/2016 2,500,000 2,250 2.52 BNP Paribas SA 0.00% 05/07/2016 2,000,000 1,800 2.02 BNP Paribas SA 0.00% 05/07/2016 1,000,000 900 1.01





Equities (2015: 11.80%)

British Virgin Islands (2015: 0.03%)

110


HI SIBILLA MACRO FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2016



France (2015: 2.04%)

Germany (2015: 1.12%)

Italy (2015: 1.04%)

Marshall Islands (2015: 1.93%)

Mexico (2015: 1.02%)

Netherlands (2015: 0.00%) TomTom NV EUR 51,195 353 0.40

Netherlands total 353 0.40

Spain (2015: 1.70%)


Total investments in Equities 353 0.40



United States (2015: 10.46%) US Treasury 0.50% 30/09/2016 USD 6,000,000 5,405 6.06 US Treasury 0.75% 31/10/2017 USD 14,300,000 12,907 14.47




Fair Value EUR'000



United States (2015: (0.11)%)

Total unrealised gain on Contracts for Difference (2015: (0.11)%) – –

111





Options Purchased

1,205 GDXJ Put, 40.5 01/07/2016 USD J.P. Morgan 44 13 0.01

Total unrealised gain on Options Purchased (2015: 0.00%) 13 0.01




CHF 5,239,499 USD 5,371,922 9,677 29/07/2016 14 0.02 KRW 6,416,374,176 USD 5,420,700 9,894 29/07/2016 123 0.14 SGD 15,496,023 USD 11,372,727 20,601 29/07/2016 125 0.14 USD 2,436,400 CHF 2,330,890 4,347 29/07/2016 36 0.04 USD 3,019,500 CHF 2,908,533 5,405 29/07/2016 26 0.03 USD 3,817,061 EUR 3,399,379 3,436 15/08/2016 31 0.03 USD 1,218,200 KRW 1,395,021,730 2,187 29/07/2016 9 0.01 USD 1,218,200 SGD 1,631,226 1,097 29/07/2016 6 0.01

Total unrealised gain on Forward Currency Contracts (2015: 0.50%) 370 0.42

CHF 150,457 EUR2 139,512 139 15/08/2016 – – CHF 4,166,213 EUR 3,863,131 3,849 15/08/2016 (10) (0.01) EUR 61,219,816 USD 69,118,703 62,216 16/08/2016 (898) (1.01) USD 10,307,700 KRW 12,093,818,256 18,729 29/07/2016 (150) (0.17) USD 10,270,258 SGD 13,864,797 18,517 29/07/2016 (27) (0.03) USD 2,433,088 TWD 78,756,630 4,388 29/07/2016 (12) (0.01)

Total unrealised loss on Forward Currency Contracts (2015: (0.97)%) (1,097) (1.23)

No. of Underlying


Futures Contracts


Total unrealised gain on Futures Contracts (2015: 0.17%)

Germany (2015: 0.00%) Euro-BTP 08/09/2016 (60) EUR (8,557) 6,000,000 (15) (0.02)


112



No. of Underlying


Futures Contracts

United States (2015: (0.02)%) S&P 500 Emini Index 16/09/2016 (142) USD (13,359) 7,100 (202) (0.22)

United States total (202) (0.22)

Total unrealised loss on Futures Contracts (2015: (0.02)%) (217) (0.24)

Total financial assets at fair value through profit or loss 64,958 72.82 Total financial liabilities at fair value through profit or loss (1,314) (1.47) Cash and cash equivalents 23,979 26.88 Other assets and liabilities 1,589 1.77



Transferable securities admitted to official stock exchange listing or traded on a regulated market 20.55 Financial derivative instruments 0.01 OTC financial derivative instruments 0.41 Deposits 50.55 Other Assets 28.48

Total Assets 100.00

1Forward currency contracts are traded with the following counterparty: Citibank.


113


HI CORE UCITS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) As at 30 June 2016


Collective Investment Schemes - UCITS (2015: 90.50%)

Ireland (2015: 36.05%) EI Sturdza Fund PLC - Strategic China Panda Fund - Class USD EUR 239 466 1.15

FundLogic Alternatives PLC - MS Nezu Cyclicals Japan UCITS Fund - Class S EUR

EUR 1,765 1,638 4.03

GAM Star Fund PLC - Global Rates Fund - Class Ordinary USD EUR 95,171 1,111 2.73

Hadron Alpha PLC - Hadron Alpha Select Fund - Class EUR EUR 19,066 2,133 5.25

HI Africa Opportunities Fund1 EUR 18,884 1,775 4.36 HI Numen Credit Fund1 EUR 18,442 2,098 5.16

HI Principia Fund1 EUR 20,584 2,435 5.99

HI Sibilla Macro Fund1 EUR 21,864 2,169 5.33

Lazard European Alternative Fund - Class Institutional Accumulation EA EUR

EUR 20,000 2,032 5.00

Majedie Asset Management Investment Fund Co. - Majedie Asset Tortoise Fund - Class G

GBP 1,063,854 2,399 5.90

Ireland total 18,256 44.90

Luxembourg (2015: 47.67%) BlackRock Global Event Driven Fund EUR 19,562 1,996 4.91

Boussard & Gavaudan SICAV - Absolute Return Fund - Class Z EUR EUR 2,035 2,195 5.40 DB Platinum Chilton European Equities - Class I1C-E EUR 6,596 699 1.72

DB Platinum Chilton European Equities - Class I2C-E EUR 13,257 1,427 3.51

GAM Star Lux - European Alpha Fund - Absolute Return EUR 2,828 821 2.02

GAM Star Lux - European Alpha Fund - Class D EUR EUR 7,881 839 2.06

JABCAP LUX - Global Balanced Fund - Class N EUR EUR 3,116 264 0.65

Julius Baer Multilabel - ARTEMIDE Fund - Class C EUR EUR 15,146 2,004 4.93

Julius Baer Multilabel - LYRA Fund - Class C EUR EUR 9,653 932 2.29

Memnon Fund - European Fund - Class I EUR EUR 1,372 221 0.54

Merrill Lynch Investment Solutions - Fenician Equity Long Short UCITS EUR 14,093 1,385 3.41 Merrill Lynch Investment Solutions - York Asian Event-Driven UCITS Fund - Class USD D

USD 13,759 1,326 3.26

Portland Hill Fund SICAV - Catalyst Driven Strategy - Class A EUR EUR 20,343 1,993 4.90

Schroder GAIA Egerton Equity Fund - Class C Accumulation EUR EUR 6,393 1,023 2.52 Verrazzano SICAV - European Long-Short Fund - Class EI EUR EUR 16,598 1,689 4.15

Luxembourg total 18,814 46.27


Total investments in Collective Investment Schemes - UCITS 37,070 91.17

114


HI CORE UCITS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2016


Exchange Traded Funds (2015: 0.00%)

France (2015: 0.00%) Lyxor EURO STOXX 50 DR UCITS ETF EUR 14,010 406 1.00

France total 406 1.00

Germany (2015: 0.00%) Ishares STOXX Europe 600 Banks ETF EUR 16,915 220 0.54

Germany total 220 0.54

Total investments in Exchange Traded Funds 626 1.54

Exchange Traded Notes (2015: 2.01%)

Jersey (2015: 2.01%) ETFS Physical Gold Fund USD 4,070 467 1.15

Jersey total 467 1.15

Total investments in Exchange Traded Notes 467 1.15


Exposure Maturity Fair Value % of Net Purchased Purchased Sold Sold EUR'000 Date EUR'000 Asset Value


CHF 9,544 EUR3 8,800 9 29/07/2016 – –

Total unrealised gain on Forward Currency Contracts (2015: 0.02%) – –

EUR 4,890,770 GBP 4,072,300 4,900 29/07/2016 (6) (0.02)

USD 324,500 EUR3 292,290 292 29/07/2016 – – USD 1,265,517 EUR 1,139,900 1,139 29/07/2016 (2) – USD 1,631,217 EUR 1,469,300 1,468 29/07/2016 (2) –


Total financial assets at fair value through profit or loss 38,163 93.86 Total financial liabilities at fair value through profit or loss (10) (0.02) Cash and cash equivalents 1,257 3.09 Other assets and liabilities 1,252 3.07


115


HI CORE UCITS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2016


Exchange traded funds 2.61 UCITS CIS 88.33 OTC financial derivative instruments4 –

Other Assets 9.06

Total Assets 100.00

1A related party to the Fund.

2Forward currency contracts are traded with the following counterparty: Credit Agricole.


4Investments which are less than 0.005% of total assets are rounded down to zero.

116


HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) As at 30 June 2016



Japan (2015: 18.88%) Sumitomo Mitsui Banking Corp. (0.06)% 07/09/2016 6,500,000 6,500 18.94


United Kingdom (2015: 18.88%) Lloyds Bank plc (0.25)% 23/09/2016 1,000,000 1,000 2.91





Equities (2015: 2.97%)

Canada (2015: 0.00%) Africa Oil Corp. SEK 30,000 39 0.11

Canada total 39 0.11

Cayman Islands (2015: 0.00%) Lekoil Ltd. GBP 116,172 25 0.07

Cayman Islands total 25 0.07

Kenya (2015: 0.00%) Equity Group Holdings Ltd. KES 4,000,000 1,335 3.89 KCB Group Ltd. KES 2,000,000 597 1.74 KenolKobil Ltd. KES 4,913,250 455 1.32 Safaricom Ltd. KES 5,800,000 891 2.60

Kenya total 3,278 9.55

South Africa (2015: 0.43%) AngloGold Ashanti Ltd. ZAR 60,000 987 2.87 Barclays Africa Group Ltd. ZAR 129,000 1,142 3.33 Discovery Ltd. ZAR 140,000 1,054 3.07 EOH Holdings Ltd. ZAR 80,000 684 1.99 Growthpoint Properties Ltd., REIT ZAR 870,000 1,368 3.99 JSE Ltd. ZAR 114,000 1,300 3.79 MTN Group Ltd. ZAR 180,000 1,582 4.61 Naspers Ltd. ZAR 8,000 1,100 3.20

117


HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (continued) As at 30 June 2016



South Africa (2015: 0.43%) (continued) Nedbank Group Ltd. ZAR 106,000 1,214 3.54 Shoprite Holdings Ltd. ZAR 125,000 1,281 3.73

South Africa total 11,712 34.12

United Arab Emirates (2015: 0.00%) Orascom Construction Ltd. EGP 90,000 482 1.41

United Arab Emirates total 482 1.41





United States (2015: 30.81%) US Treasury 0.00% 14/07/2016 USD 6,000,000 5,401 15.74






Fair Value EUR '000



South Africa (2015: 0.59%) PPC Ltd. BNP Paribas EUR (310,000) (310) 16 0.05 Sasol Ltd. BNP Paribas EUR (10,000) (10) 28 0.08

South Africa total 44 0.13

Switzerland (2015: 0.00%) LafargeHolcim Ltd. Goldman Sachs EUR (19,700) (20) 48 0.14

Switzerland total 48 0.14

118





Fair Value EUR '000



United Kingdom (2015: 0.50%) Investec plc BNP Paribas EUR (83,000) (83) 42 0.12 Investec plc Goldman Sachs EUR (52,000) (52) 20 0.06 PZ Cussons plc Goldman Sachs EUR (90,000) (90) 18 0.05

United Kingdom total 80 0.23

Total unrealised gain on Contracts for Difference (2015: 1.33%) 172 0.50

South Africa (2015: (0.56)%) FirstRand Ltd. BNP Paribas EUR (100,000) (100) (26) (0.07) Grindrod Ltd. BNP Paribas EUR (320,000) (320) (23) (0.07) Life Healthcare Group Holdings Ltd. BNP Paribas EUR (60,000) (60) (9) (0.03)

South Africa total (58) (0.17)

Total unrealised loss on Contracts for Difference (2015: (0.56)%) (58) (0.17)




CHF 9,500 EUR2 8,703 9 15/07/2016 – – EUR 500,000 USD 550,189 495 15/07/2016 5 0.01 USD 2,015,000 EUR 1,766,488 1,814 15/07/2016 47 0.14 USD 1,940,000 EUR 1,700,783 1,746 15/07/2016 45 0.13 USD 1,688,196 EUR 1,500,000 1,520 15/07/2016 19 0.06 USD 500,000 EUR 439,144 450 15/07/2016 11 0.03 USD 500,000 EUR 439,222 450 15/07/2016 11 0.03 USD 500,000 EUR 440,326 450 15/07/2016 9 0.03 USD 1,287,029 EUR 1,154,506 1,158 15/07/2016 3 0.01 USD 335,000 EUR 300,399 302 15/07/2016 1 – USD 50,000 EUR2 44,593 45 15/07/2016 – –

Total unrealised gain on Forward Currency Contracts (2015: 0.00%) 151 0.44

EUR 4,773,655 USD 5,400,000 4,860 15/07/2016 (85) (0.25) USD 1,100,000 EUR 1,000,059 990 15/07/2016 (10) (0.03)


Total financial assets at fair value through profit or loss 28,760 83.79 Total financial liabilities at fair value through profit or loss (153) (0.45) Cash and cash equivalents 6,887 20.07 Other assets and liabilities (1,171) (3.41)


119




Transferable securities admitted to official stock exchange listing or traded on a regulated market 56.23 OTC financial derivative instruments 0.87 Deposits 20.14 Other Assets 22.76

Total Assets 100.00



120


OTHER INFORMATION (UNAUDITED) MANAGEMENT FEES OF UNDERLYING COLLECTIVE INVESTMENT SCHEMES

Name Management

fee Management fee

net of rebates BlackRock Global Event Driven Fund 0.50% 0.50%

Boussard & Gavaudan SICAV - Absolute Return 1.00% 1.00%

DB Platinum - Chilton European Equities Class I1C-E 1.50% 1.50%

DB Platinum - Chilton European Equities Class I2C-E 1.20% 1.20%

EI Sturdza Fund PLC - Strategic China Panda Fund 1.50% 1.50%

FundLogic Alternatives plc - MS Nezu Cyclicals Japan UCITS Fund 1.00% 1.00% GAM Star (Lux) - European Alpha Absolute Return 1.75% 1.75% GAM Star (Lux) - European Alpha Euro D 1.75% 1.75%

GAM Star Fund PLC - GAM Star Global Rates Fund 1.65% 1.65%

Hadron Alpha PLC - Hadron Alpha Select Fund 2.00% 1.40%

HI Africa Opportunities Fund 2.00% 0.00%

HI Numen Credit Fund 1.75% 0.00%

HI Principia Fund 2.00% 0.00%

HI Sibilla Macro Fund 2.00% 0.00%

JABCAP LUX - Global Balanced 1.50% 1.00%

Julius Baer Multilabel - ARTEMIDE 1.00% 1.00%

Julius Baer Multilabel - LYRA 1.50% 1.50%

Lazard Global Investment Funds plc - Lazard European Alternative Fund 0.75% 0.75%

Majedie Asset Management Investment Fund Co - Majedie Asset Tortoise Fund 1.50% 1.50%

Memnon Fund - European 1.25% 0.85%

Merrill Lynch Investment Solutions - Fenician Equity Long Short UCITS Fund 1.00% 1.00%

Merrill Lynch Investments Solutions - York Asian Event-Driven UCITS Fund 1.25% 1.25%

Portland Hill Fund SICAV - Catalyst Driven Strategy 1.50% 1.50%

Schroder GAIA Egerton Equity 1.25% 1.25%

Verrazzano Sicav - European Long-Short 1.25% 1.25% SOFT COMMISSIONS During the year, the Investment Manager and the Sub-Investment Managers have not entered into soft commission arrangements with brokers for HI Numen Credit Fund and HI Core UCITS Fund. For HI Principia Fund, the Sub-Investment Manager has in place commission sharing agreements with UBS and Bloomberg. For HI Sibilla Macro Fund, the Sub-Investment Manager has in place commission sharing agreements with BNP Paribas and FBN Securities, Inc. For HI Africa Opportunities Fund, the Sub-Investment Manager has in place a commission sharing agreement with Goldman Sachs. Under these agreements, the brokers would, when required, pay directly third party research providers for the provision of specific proprietary research and analysis and research related expenses. No payment would be paid, by the brokers, to any third party without it having been validated as a genuine and proper research provider. For HI Principia Fund, to date no use has been made of these agreements and no trading has taken place with Bloomberg since the inception of the Sub-Fund.

121


OTHER INFORMATION (UNAUDITED) HI NUMEN CREDIT FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the year ended 30 June 2016

Purchases Coupon Maturity Cost

Holding Investments rate date EUR ’000 132,350,000 United Kingdom Gilt 1.75% 22/01/2017 166,945 89,251,000 Federal Republic of Germany Bond 0.50% 15/02/2026 92,287 65,000,000 Italy Buoni Ordinari del Tesoro BOT 0.00% 14/12/2016 65,050 65,000,000 Spain Letras del Tesoro 0.00% 09/12/2016 65,047 65,000,000 Republic of Italy 0.00% 14/10/2016 65,004 50,000,000 France Treasury Bill BTF 0.00% 01/02/2017 50,212 50,000,000 Spain Letras del Tesoro 0.00% 07/04/2017 50,072 50,000,000 Spain Letras del Tesoro 0.00% 20/01/2017 50,027 50,000,000 Italy Buoni Ordinari del Tesoro BOT 0.00% 14/02/2017 50,013 40,000,000 Italy Buoni Ordinari del Tesoro BOT 0.00% 14/11/2016 39,997 30,000,000 Spain Letras del Tesoro 0.00% 12/05/2017 30,049 30,000,000 Spain Letras del Tesoro 0.00% 16/06/2017 30,034 25,000,000 Cooperatieve Rabobank UA 1.25% 23/03/2026 24,879 20,000,000 Portuguese Republic Bond 4.80% 15/06/2020 23,231 23,050,000 Kingdom of Spain Bond 3.45% 30/07/2066 22,819 22,500,000 Kingdom of Spain Bond 2.90% 31/10/2046 22,259 18,636,000 Federal Republic of Germany Bond 2.00% 04/01/2022 21,165 20,000,000 Portugal Treasury Bill 0.00% 20/01/2017 20,001 20,000,000 AXA SA 0.00% 06/07/2047 19,842 18,281,000 Federal Republic of Germany Bond 0.00% 09/04/2021 18,623

Sales

Coupon Maturity Proceeds Holding Investments rate date EUR ’000 89,251,000 Federal Republic of Germany Bond 0.50% 15/02/2026 92,355 65,000,000 Republic of Italy 0.00% 14/10/2016 65,006 50,000,000 Republic of Italy 0.00% 12/02/2016 50,004 25,827,000 Cyprus Government International Bond 3.75% 01/11/2015 25,892 25,000,000 Spain Letras del Tesoro 0.00% 09/12/2016 25,022 25,000,000 Cooperatieve Rabobank UA 1.25% 23/03/2026 24,848 26,939,000 Banca Carige SpA 0.90% 07/06/2016 24,397 20,000,000 Portuguese Republic Bond 4.80% 15/06/2020 23,262 23,050,000 Kingdom of Spain Bond 3.45% 30/07/2066 23,130 22,500,000 Kingdom of Spain Bond 2.90% 31/10/2046 22,460 18,636,000 Federal Republic of Germany Bond 2.00% 04/01/2022 21,126 20,000,000 Kingdom of Spain Bond 2.10% 30/04/2017 20,655 20,000,000 AXA SA 0.00% 06/07/2047 20,074 18,000,000 Banca Monte dei Paschi di Siena SpA 2.88% 16/07/2062 19,370 18,281,000 Federal Republic of Germany Bond 0.00% 09/04/2021 18,659 16,010,000 Federal Republic of Germany Bond 1.50% 15/05/2023 17,899 17,000,000 Cyprus Government International Bond 3.88% 06/05/2022 17,464 16,000,000 Telefonica Emisiones SAU 0.75% 13/04/2022 15,901 19,540,000 Valeant Pharmaceuticals International, Inc. 4.50% 15/05/2023 15,112 15,000,000 Credit Suisse AG 1.13% 15/09/2020 15,039

The CBI requires a schedule of material changes in the composition of the portfolio during the year. These are defined as aggregate purchases of a security exceeding one per cent of the total value of purchases for the year and aggregate disposals greater than one per cent of the total value of sales. At a minimum the largest 20 purchases and 20 sales must be given or all purchases and sales if less than 20. A full listing of the portfolio changes for the year is available, upon request, at no extra cost from the Administrator.

122


OTHER INFORMATION (UNAUDITED) HI PRINCIPIA FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the year ended 30 June 2016

Purchases Cost

Holding Investments EUR ’000 445,000 Accor SA 16,330 553,700 ams AG 15,891 273,400 Gemalto NV 14,929 2,088,000 International Consolidated Airlines Group SA 14,787 2,414,820 Technicolor SA 13,560 349,000 Wirecard AG 12,802 216,000 Airbus Group SE 12,336 405,500 Covestro AG 11,496 368,844 Dialog Semiconductor plc 10,652 2,484,864 Koninklijke BAM Groep NV 10,184 179,500 Sunrise Communications Group AG 9,731 30,980 Eurofins Scientific SE 9,513 248,000 Aryzta AG 8,553 634,115 Schaeffler AG, Preference 8,406 233,000 Faurecia 7,885 181,000 Novozymes A/S 7,447 257,591 CompuGroup Medical SE 7,339 277,000 Aareal Bank AG 6,989 119,200 Rheinmetall AG 6,748 516,000 TUI AG 6,734 297,500 Alstom SA 6,549 963,400 UDG Healthcare plc 6,478 1,554,140 Greencore Group plc 6,440 238,529 Tecnicas Reunidas SA 6,323 1,562,000 Interserve plc 6,098 824,000 Essentra plc 5,977 219,000 Numericable-SFR SA 5,898 239,768 GrandVision NV 5,738 54,450 Sopra Steria Group 5,686 355,956 Elis SA 5,623 230,000 Loomis AB 5,497 3,417,612 Cambian Group plc 5,455 1,590,000 Vallourec SA 5,387 99,800 Symrise AG 5,290 585,500 OC Oerlikon Corp. AG 5,263 223,000 Freenet AG 5,262 106,309 Ipsen SA 5,091 70,000 Wacker Chemie AG 5,056 53,000 Bayer AG 5,028 945,000 Meyer Burger Technology AG 4,856

Sales Proceeds

Holding Investments EUR ’000 349,000 Wirecard AG 14,777 3,604,106 Koninklijke BAM Groep NV 14,419

123


OTHER INFORMATION (UNAUDITED) HI PRINCIPIA FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the year ended 30 June 2016

Sales (continued) Proceeds

Holding Investments EUR ’000 2,088,000 International Consolidated Airlines Group SA 13,481 405,500 Covestro AG 12,166 1,872,462 Technicolor SA 12,010 216,000 Airbus Group SE 11,896 341,000 Accor SA 11,868 377,000 Aareal Bank AG 10,871 179,500 Sunrise Communications Group AG 10,363 436,000 Worldline SA 10,126 30,980 Eurofins Scientific SE 10,118 89,700 Sulzer AG 8,142 233,000 Faurecia 8,123 634,115 Schaeffler AG, Preference 8,099 207,591 CompuGroup Medical SE 7,343 68,900 Wendel SA 7,083 181,000 Novozymes A/S 7,018 119,200 Rheinmetall AG 6,982 516,000 TUI AG 6,805 109,400 Gemalto NV 6,611 267,000 UBISOFT Entertainment 6,504 1,268,500 Meyer Burger Technology AG 6,413 297,500 Alstom SA 6,370 198,700 ams AG 6,350 1,600,900 Greencore Group plc 6,309 54,450 Sopra Steria Group 5,987 699,000 Kloeckner & Co. SE 5,752 106,309 Ipsen SA 5,725 1,200,000 Spire Healthcare Group plc 5,662 99,800 Symrise AG 5,648 279,000 BE Semiconductor Industries NV 5,431 370,956 Elis SA 5,299 73,860 Orpea 5,141 70,000 Wacker Chemie AG 5,097 1,590,000 Vallourec SA 5,056 230,000 Loomis AB 4,940 202,000 GrandVision NV 4,907 53,000 Bayer AG 4,767 149,573 Dialog Semiconductor plc 4,739 550,000 Astaldi SpA 4,729 585,500 OC Oerlikon Corp. AG 4,613


124


OTHER INFORMATION (UNAUDITED) HI SIBILLA MACRO FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the period ended 30 June 2016


Holding Investments rate date EUR ’000 781,533 Vaneck Vectors Junior Gold Miners ETF 13,673 14,300,000 US Treasury 0.75% 31/10/2017 13,277 407,107 iShares MSCI Brazil Capped ETF 7,181 564,045 Market Vectors Gold Miners ETF 6,910 249,818 SPDR S&P Oil & Gas Exploration & Production ETF 6,654 20,240 iShares Nasdaq Biotechnology ETF 4,596 126,235 CSRA, Inc. 3,043 117,185 Agnico Eagle Mines Ltd. 2,539 190,845 VelocityShares 3x Long Silver ETN 2,387 39,834 Mallinckrodt plc 2,347 644,258 Eldorado Gold Corp. 2,154 223,182 Nabors Industries Ltd. 2,024 246,652 Freeport-McMoRan, Inc. 1,849 45,478 Ctrip.com International Ltd., ADR 1,770 142,793 Silver Wheaton Corp. 1,669 97,160 iPATH S&P 500 VIX Short-Term Futures ETN 1,607 68,079 Suncor Energy, Inc. 1,600 149,266 United States Steel Corp. 1,583 60,711 Mattel, Inc. 1,383 41,511 Devon Energy Corp. 1,307

Sales Proceeds

Holding Investments EUR ’000 781,533 Vaneck Vectors Junior Gold Miners ETF 14,341 407,107 iShares MSCI Brazil Capped ETF 7,489 564,045 Market Vectors Gold Miners ETF 7,232 249,818 SPDR S&P Oil & Gas Exploration & Production ETF 6,431 20,240 iShares Nasdaq Biotechnology ETF 4,472 190,845 VelocityShares 3x Long Silver ETN 2,942 126,235 CSRA, Inc. 2,772 117,185 Agnico Eagle Mines Ltd. 2,700 644,258 Eldorado Gold Corp. 2,314 39,834 Mallinckrodt plc 2,224 223,182 Nabors Industries Ltd. 2,108 75,568 Mattel, Inc. 1,893 142,793 Silver Wheaton Corp. 1,804 45,478 Ctrip.com International Ltd., ADR 1,728 246,652 Freeport-McMoRan, Inc. 1,677 68,079 Suncor Energy, Inc. 1,675 97,160 iPATH S&P 500 VIX Short-Term Futures ETN 1,627 149,266 United States Steel Corp. 1,531 43,643 MPLX LP 1,345 198,258 DHT Holdings, Inc. 1,344 41,511 Devon Energy Corp. 1,283


125


OTHER INFORMATION (UNAUDITED) HI CORE UCITS FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the year ended 30 June 2016


Holding Investments rate date EUR ’000 3,450,000 Bundesrepublik Deutschland 0.50% 15/02/2025 3,367

22,313 Portland Hill Fund SICAV - Catalyst Driven Strategy - Class A EUR 2,305

20,000 Lazard European Alternative Fund - Class Institutional Accumulation EA EUR 2,000

20,000 Portland Hill Fund SICAV - Catalyst Driven Strategy - Class C EUR 2,000

19,562 BlackRock Global Event Driven Fund 2,000

13,759 Merrill Lynch Investment Solutions - York Asian Event-Driven UCITS Fund - Class USD D 1,512

9,390 DB Platinum Chilton European Equities - Class I1C-E 1,050

319,055 Majedie Asset Management Investment Fund Co. - Majedie Asset Tortoise Fund - Class G 700

5,371 JABCAP LUX - Global Balanced Fund - Class N EUR 620

5,876 Hedge Invest International Funds plc - HI Africa Opportunities Fund 600

4,853 HI Sibilla Macro Fund 500

477 Boussard & Gavaudan SICAV - Absolute Return Fund - Class Z EUR 500

4,520 Julius Baer Multilabel - LYRA Fund - Class C EUR 490 14,010 Lyxor EURO STOXX 50 DR UCITS ETF 434

364 FundLogic Alternatives plc - MS Nezu Cyclicals Japan UCITS Fund - Class S EUR 400

3,749 Merrill Lynch Investment Solutions - Fenician Equity Long Short UCITS 400

1,686 Memnon Fund - European Fund - Class I EUR 300 16,915 Ishares STOXX Europe 600 Banks ETF 216 1,765 Hadron Alpha plc - Hadron Alpha Select Fund - Class EUR 204 93,028 Henderson - UK Absolute Return Fund - Class I Accumulation 202

Sales

Coupon Maturity Proceeds Holding Investments rate date EUR ’000 3,450,000 Bundesrepublik Deutschland 0.50% 15/02/2025 3,344

20,000 Portland Hill Fund SICAV - Catalyst Driven Strategy - Class C EUR 1,991

918,246 Henderson - UK Absolute Return Fund - Class I Accumulation 1,751

16,847 Carmignac Portfolio - Euro-Patrimoine Fund - Unit F Accumulation EUR 1,585

10,433 Serviced Platform SICAV - Select Equity Long/Short UCITS Sub-Fund - Class I EUR 1,375

691,772 Schroder Absolute UK Dynamic Fund - Class P2 Accumulation GBP 1,240

11,462 Merrill Lynch Investment Solutions - Fenician Equity Long Short UCITS 1,144

13,615 Arcus Japan Long/Short Fund - Class Institutional JPY 1,107

7,207 Alken Fund - Absolute Return Europe Fund - Class I Accumulation EUR 1,028

8,648 Julius Baer Multilabel - LYRA Fund - Class C EUR 878

126


OTHER INFORMATION (UNAUDITED) HI CORE UCITS FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the year ended 30 June 2016

Sales (continued) Proceeds

Holding Investments EUR ’000 7,433 JABCAP LUX - Convertible Bonds Fund - Class I EUR 810 7,032 JABCAP LUX - Global Balanced Fund - Class N EUR 805 5,941 Julius Baer Multilabel - ARTEMIDE Fund - Class C EUR 800 2,506 GAM Star Lux - European Alpha Fund - Absolute Return 751

297,925 Majedie Asset Management Investment Fund Co. - Majedie Asset Tortoise Fund - Class G 719

7,197 ETFS Physical Gold Fund 715 6,760 Verrazzano SICAV - European Long-Short Fund - Class EI EUR 698 3,804 Memnon Fund - European Fund - Class I EUR 643 4,489 Hadron Alpha plc - Hadron Alpha Select Fund - Class EUR 490 41,905 GAM Star Fund plc - Global Rates Fund - Class Ordinary USD 478

368 Fundlogic Alternatives plc - MS Algebris Global Financials UCITS Fund - Class B EUR 473

2,632 HI Numen Credit Fund 300

316 FundLogic Alternatives plc - MS Nezu Cyclicals Japan UCITS Fund - Class S EUR 298

2,794 DB Platinum Chilton European Equities - Class I1C-E 295 The CBI requires a schedule of material changes in the composition of the portfolio during the year. These are defined as aggregate purchases of a security exceeding one per cent of the total value of purchases for the year and aggregate disposals greater than one per cent of the total value of sales. At a minimum the largest 20 purchases and 20 sales must be given or all purchases and sales if less than 20. A full listing of the portfolio changes for the year is available, upon request, at no extra cost from the Administrator.

127


OTHER INFORMATION (UNAUDITED) HI AFRICA OPPORTUNITIES FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the period ended 30 June 2016


Holding Investments rate date EUR ’000 13,200,000 US Treasury Bill 0.00% 17/12/2015 12,348 13,000,000 US Treasury Bill 0.00% 10/03/2016 11,682 12,500,000 US Treasury Bill 0.00% 14/01/2016 11,536 12,500,000 US Treasury Bill 0.00% 11/02/2016 11,519 12,500,000 US Treasury Bill 0.00% 12/05/2016 11,076 12,000,000 US Treasury Bill 0.00% 14/04/2016 10,896 11,500,000 US Treasury Bill 0.00% 15/10/2015 10,181 11,500,000 US Treasury Bill 0.00% 12/11/2015 10,100 11,000,000 US Treasury Bill 0.00% 09/06/2016 9,619 10,000,000 US Treasury Bill 0.00% 20/08/2015 9,181 10,000,000 US Treasury Bill 0.00% 17/09/2015 9,045 6,000,000 US Treasury Bill 0.00% 14/07/2016 5,310 386,000 Barclays Africa Group Ltd. 3,914 2,100,000 Growthpoint Properties Ltd., REIT 3,432 270,000 AngloGold Ashanti Ltd. 2,322 185,000 Nedbank Group Ltd. 1,900 5,000,000 Equity Group Holdings Ltd. 1,794 4,750,000 KCB Group Ltd. 1,738 29,500 Randgold Resources Ltd., ADR 1,622 470,000 Commercial International Bank Egypt SAE, GDR 1,576

Sales Proceeds

Holding Investments EUR ’000 262,000 Barclays Africa Group Ltd. 2,584 210,000 AngloGold Ashanti Ltd. 2,072 1,260,000 Growthpoint Properties Ltd., REIT 2,047 29,500 Randgold Resources Ltd., ADR 1,810 470,000 Commercial International Bank Egypt SAE, GDR 1,594 440,000 Gold Fields Ltd. 1,440 161,000 AngloGold Ashanti Ltd., ADR 1,386 83,000 Net 1 UEPS Technologies, Inc. 1,215 1,050,000 Centamin plc 1,127 445,000 Gold Fields Ltd., ADR 1,119 2,750,000 KCB Group Ltd. 990 79,000 Nedbank Group Ltd. 763 12,000 iShares MSCI South Africa ETF 695 85,000 Endeavour Mining Corp. 669 22,000 iShares MSCI South Africa UCITS ETF 608 130,000 Barloworld Ltd. 488 1,381,518 DRDGOLD Ltd. 453 5,000 Randgold Resources Ltd. 410 80,000 First Quantum Minerals Ltd. 410 40,000 JSE Ltd. 368 90,000 Lewis Group Ltd. 367 1,000,000 Equity Group Holdings Ltd. 345

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OTHER INFORMATION (UNAUDITED) HI AFRICA OPPORTUNITIES FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the period ended 30 June 2016 Sales (continued) Proceeds Holding Investments EUR ’000 450,000 Telecom Egypt Co. 342 10,000 Sasol Ltd. 260 2,000,000 Qalaa Holdings SAE 259 1,000,000 Emaar Misr for Development SAE 254


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