ANNUAL REPORT Unit A FR December 2017 SEXTANT AUTOUR DU MONDE. Performances

Transcription

1 ANNUAL REPORT Unit A FR December 2017 SEXTANT AUTOUR DU MONDE Sextant Autour du Monde is a global, pure stock-picking fund that generally invests as much in emerging markets as in developed ones. The fund rose 12.1% in full-year 2017 versus +8.8% for the benchmark index, the MSCI World in euros, with dividends reinvested. In 2017, we strengthened our research department by adding five analysts to the team. Most of these new recruits are based in Singapore, and they are Chinese, Indian or Singaporean nationals. We also hired an analyst in Paris to cover the North American market. The decision to strengthen our teams and the creation of an office in Singapore enabled us to increase the number of field trips in We thus made over 150 company visits in countries with which we were already familiar (Japan, South Korea, China), as well as to less familiar ones (Taiwan, Vietnam, Singapore). We intend to pursue and intensify these efforts in In 2017, the main contributor to the fund s performance was Nesco, owner of India s largest exhibition centre in Bombay. This family-owned, real-estate company is debt-free and it remains one of our main positions because we have excellent visibility on its revenues, which should double within four years. In 2018, Nesco should complete the construction of a new building that will triple the volume of rental office space. Longer term, the company plans to build a new exhibition centre in order to satisfy growing demand. We liked the company s high-quality, cautious management team, which we met in December during a company visit. We also note the good performance of LG Household & Healthcare, which remains the fund s largest position. Although less Chinese tourists visiting South Korea means reduced duty-free sales, the company continues to enjoy strong growth in continental China. Growth potential outside the domestic market and the hefty discount on the preference share versus the ordinary one prompted us to give the stock a high weighting. Tegma, Brazil s leading auto transporter, was another major contributor to the 2017 performance. We acquired this stake in late 2015 following a sharp fall in the share price due to Brazil s economic crisis and losses at the logistics division. We believed at the time that a fairly variable cost structure would see the company through the cyclical trough. The stabilization of Brazil s car market and debt repayment by the company has allowed earnings to improve significantly. Following a sharp rise in the share price, we divested our stake. The main negative contributor in 2017 was Criteo. The share price fell heavily again in December following launch of a new version of the iphone s operating system. The latter de-activates the system that Criteo had developed to continue to retarget about half of Apple clients. The previous version, launched by Apple in September, had already prevented Criteo from working with the first half of iphone users. As a result, another c.10% of Criteo s 2018e revenues will not materialize. Overall, sales should be flat in 2018 versus our initial forecast for growth to exceed 20%. We made the mistake of weighting the stock very heavily, even though we were aware of the risk associated with dependence on the Apple and Google ecosystems. Fortunately, the rest of the business is still in very good shape and the company is well managed. There are still some risks, notably regulatory, but we are optimistic about the future of the company whose competitive edge and value added to clients remain very high. Criteo should return to growth in 2019, so we have decided not to sell our position at current levels. Our trip to Japan prompted us to invest in Ezaki Glico, a Japanese sweet manufacturer whose flagship product is Pocky (marketed as Mikado in France). Historically the company has been unprofitable despite well-known brandnames, but management has made several strategic changes since Initiatives such as the recruitment of external talent, strict cost control and refocusing on high-potential products have allowed the operating margin to triple. We believe that the margin can rise further, because it remains below the industry average. Moreover, the company has expanded successfully in China and in South-East Asia, suggesting additional potential in the medium term. We acquired an initial stake in Gamestop in late The company is the leading distributor of non-virtual video games in the US (and in France under the Micromania banner). Faced with rising digitalization of video games, Gamestop has diversified its activities by selling effigies of film or video game stars, and by operating the stores of AT&T (longstanding US telecoms operator), a strategy that we think makes sense. Moreover, Gamestop should put up a good fight in its traditional business, thanks to its network of stores and good relations with editors and the community of players. The stock trades at just 7x Free Cash Flow, despite a policy of generous returns to shareholders. Sextant Autour du Monde (A) MSCI World NR ( ) 1 month -0,4% 0,5% 3 months 2,2% 3,8% 6 months 2,7% 5,6% 1 year 12,1% 8,8% 3 years 36,8% 31,4% 5 years 108,0% 83,3% Performances 10 years 26,7% 91,1% Sextant Autour du Monde (A) 23,9% -62,9% 59,2% 21,3% -21,9% 9,0% 20,9% 25,8% 9,3% 11,6% MSCI World NR ( ) 1,0% -39,6% 31,1% 20,8% -4,4% 14,0% 17,5% 18,7% 8,7% 11,1% ,1% 8,8% Amiral Gestion rue de Grenelle Paris - T. +33 (0) F. +33 (0) Asset management company authorised by the Financial Markets Authority under the number GP / Insurance broker company registered with ORIAS under the number / Simplified joint-stock company with capital of RCS Paris VAT: FR

2 ANNUAL REPORT Distribution by capitalisation size SEXTANT AUTOUR DU MONDE Weight of the main holdings Distribution of holdings by sector Geographical distribution of holdings NAV / Net assets 221,54 / 129,24 M Average / median cap. of 9000 M / M equities Share category Unit A all subscribers FR Main holdings Name Sector Country Net asset % Contribution to quarterly performance LG H & H Consumer goods South Korea 4,4% 89 bps Criteo Media / Internet France 3,4% -167 bps Nesco Real estate India 2,8% 2 bps SK Kaken Commodities Japan 2,5% 58 bps GameStop Entertainment industry United States 2,3% -17 bps 3-years volatility Risk Profile Index Fund 13,0% Index 14,7% Number of lines 92 ISIN code Bloomberg code AMF classification AMSAMON FP "International Equities" UCITS Index MSCI World NR ( ) Net Asset Value Custodian Transfert agent Daily based on prices at market close CACEIS Bank Name LG H & H SK Kaken Whirlpool pref Vipshop As One Corp Main characteristics Main contributions to performance Name 89 bps 58 bps 48 bps 34 bps 31 bps Name Contrib. Criteo -167 bps Mail.RU -19 bps GameStop -17 bps Lotte Chilsung Beverage -17 bps Europcar -16 bps Launch date Fund 08/07/2005 Unit 08/07/2005 Recommended investment duration Tax provisions - - Over 5 years Entry charge 2,00% Exit charge 1,00% Fixed management fee Performance fee 2,00% including taxes 15%, including taxes of the common fund's positive performance beyond its performance index per calendar year Source : Amiral Gestion at 29/12/2017 Notice This commercial document aims to present the characteristics of the fund on a simplified basis. For further information, you may refer to the key information document for investors and to the prospectus, which are legal documents available on the management company's internet site or by request to the management company. The performances shown are not a reliable guide to future performance. Performance may vary over time. Amiral Gestion rue de Grenelle Paris - T. +33 (0) F. +33 (0) Asset management company authorised by the Financial Markets Authority under the number GP / Insurance broker company registered with ORIAS under the number / Simplified joint-stock company with capital of RCS Paris VAT: FR

3 ANNUAL REPORT Unit I FR December 2017 SEXTANT AUTOUR DU MONDE Sextant Autour du Monde is a global, pure stock-picking fund that generally invests as much in emerging markets as in developed ones. The fund rose 12.0% in full-year 2017 versus +8.8% for the benchmark index, the MSCI World in euros, with dividends reinvested. In 2017, we strengthened our research department by adding five analysts to the team. Most of these new recruits are based in Singapore, and they are Chinese, Indian or Singaporean nationals. We also hired an analyst in Paris to cover the North American market. The decision to strengthen our teams and the creation of an office in Singapore enabled us to increase the number of field trips in We thus made over 150 company visits in countries with which we were already familiar (Japan, South Korea, China), as well as to less familiar ones (Taiwan, Vietnam, Singapore). We intend to pursue and intensify these efforts in In 2017, the main contributor to the fund s performance was Nesco, owner of India s largest exhibition centre in Bombay. This family-owned, real-estate company is debt-free and it remains one of our main positions because we have excellent visibility on its revenues, which should double within four years. In 2018, Nesco should complete the construction of a new building that will triple the volume of rental office space. Longer term, the company plans to build a new exhibition centre in order to satisfy growing demand. We liked the company s high-quality, cautious management team, which we met in December during a company visit. We also note the good performance of LG Household & Healthcare, which remains the fund s largest position. Although less Chinese tourists visiting South Korea means reduced duty-free sales, the company continues to enjoy strong growth in continental China. Growth potential outside the domestic market and the hefty discount on the preference share versus the ordinary one prompted us to give the stock a high weighting. Tegma, Brazil s leading auto transporter, was another major contributor to the 2017 performance. We acquired this stake in late 2015 following a sharp fall in the share price due to Brazil s economic crisis and losses at the logistics division. We believed at the time that a fairly variable cost structure would see the company through the cyclical trough. The stabilization of Brazil s car market and debt repayment by the company has allowed earnings to improve significantly. Following a sharp rise in the share price, we divested our stake. The main negative contributor in 2017 was Criteo. The share price fell heavily again in December following launch of a new version of the iphone s operating system. The latter de-activates the system that Criteo had developed to continue to retarget about half of Apple clients. The previous version, launched by Apple in September, had already prevented Criteo from working with the first half of iphone users. As a result, another c.10% of Criteo s 2018e revenues will not materialize. Overall, sales should be flat in 2018 versus our initial forecast for growth to exceed 20%. We made the mistake of weighting the stock very heavily, even though we were aware of the risk associated with dependence on the Apple and Google ecosystems. Fortunately, the rest of the business is still in very good shape and the company is well managed. There are still some risks, notably regulatory, but we are optimistic about the future of the company whose competitive edge and value added to clients remain very high. Criteo should return to growth in 2019, so we have decided not to sell our position at current levels. Our trip to Japan prompted us to invest in Ezaki Glico, a Japanese sweet manufacturer whose flagship product is Pocky (marketed as Mikado in France). Historically the company has been unprofitable despite well-known brandnames, but management has made several strategic changes since Initiatives such as the recruitment of external talent, strict cost control and refocusing on high-potential products have allowed the operating margin to triple. We believe that the margin can rise further, because it remains below the industry average. Moreover, the company has expanded successfully in China and in South-East Asia, suggesting additional potential in the medium term. We acquired an initial stake in Gamestop in late The company is the leading distributor of non-virtual video games in the US (and in France under the Micromania banner). Faced with rising digitalization of video games, Gamestop has diversified its activities by selling effigies of film or video game stars, and by operating the stores of AT&T (longstanding US telecoms operator), a strategy that we think makes sense. Moreover, Gamestop should put up a good fight in its traditional business, thanks to its network of stores and good relations with editors and the community of players. The stock trades at just 7x Free Cash Flow, despite a policy of generous returns to shareholders. Sextant Autour du Monde (I) MSCI World NR ( ) 1 month -0,4% 0,5% 3 months 2,2% 3,8% 6 months 2,7% 5,6% 1 year 12,0% 8,8% 3 years 39,1% 31,4% 5 years 115,9% 83,3% Performances Sextant Autour du Monde (I) 10,1% 22,1% 27,1% 10,3% 12,6% MSCI World NR ( ) 14,0% 17,5% 18,7% 8,7% 11,1% ,0% 8,8% Amiral Gestion rue de Grenelle Paris - T. +33 (0) F. +33 (0) Asset management company authorised by the Financial Markets Authority under the number GP / Insurance broker company registered with ORIAS under the number / Simplified joint-stock company with capital of RCS Paris VAT: FR

4 ANNUAL REPORT Distribution by capitalisation size SEXTANT AUTOUR DU MONDE Weight of the main holdings Distribution of holdings by sector Geographical distribution of holdings NAV / Net assets 2 377,98 / 129,24 M Average / median cap. of 9000 M / M equities Unit I FR Main holdings Name Sector Country Net asset % Contribution to quarterly performance LG H & H Consumer goods South Korea 4,4% 89 bps Criteo Media / Internet France 3,4% -167 bps Nesco Real estate India 2,8% 2 bps SK Kaken Commodities Japan 2,5% 58 bps GameStop Entertainment industry United States 2,3% -17 bps 3-years volatility Risk Profile Index Fund 13,0% Index 14,7% Number of lines 92 Share category ISIN code Bloomberg code AMF classification AMSAMNI FP Equity "International Equities" UCITS Index MSCI World NR ( ) Net Asset Value Custodian Transfert agent Daily based on prices at market close CACEIS Bank Name LG H & H SK Kaken Whirlpool pref Vipshop As One Corp Main characteristics Main contributions to performance Name 89 bps 58 bps 48 bps 34 bps 31 bps Name Contrib. Criteo -167 bps Mail.RU -19 bps GameStop -17 bps Lotte Chilsung Beverage -17 bps Europcar -16 bps Launch date Fund 30/12/2011 Unit 30/12/2011 Recommended investment duration Tax provisions - - Over 5 years Entry charge 4,00% Exit charge 1,00% Fixed management fee Performance fee 1,25% including taxes 15%, including taxes of the common fund's positive performance beyond its performance index per calendar year Source : Amiral Gestion at 29/12/2017 Notice This commercial document aims to present the characteristics of the fund on a simplified basis. For further information, you may refer to the key information document for investors and to the prospectus, which are legal documents available on the management company's internet site or by request to the management company. The performances shown are not a reliable guide to future performance. Performance may vary over time. Amiral Gestion rue de Grenelle Paris - T. +33 (0) F. +33 (0) Asset management company authorised by the Financial Markets Authority under the number GP / Insurance broker company registered with ORIAS under the number / Simplified joint-stock company with capital of RCS Paris VAT: FR

5 ANNUAL REPORT December 2017 SEXTANT AUTOUR DU MONDE Main changes made during the financial year, or forthcoming Since 21 July 2017: Additional information - It is no longer possible to acquire registered shares in the fund - The settlement/delivery date has been changed, so that settlement of subscriptions and redemptions will take place two (and not three) working days after valuation of shares. On 29 December 2017, creation of a new category known as N shares (clean share) available to all subscribers, but mainly for: Marketing networks that have received the prior consent of the fund management company Distributors and/or intermediaries who have received the prior consent of the fund management company and providing the following services: - Independent advice as defined by the MIF2 regulation - Individual management under mandate Change to the prospectus and/or KIID Precision regarding the possible use of futures such as forex futures or swaps. Cash holdings at end of financial year: 2.13% Percentage of the portfolio divestible in more than 30 days: 15-20% - Liquidity is controlled by the Density Technologies portfolio tracking tool. Frequency of transactions (rotation rate): 21.69% Possible steps taken by the custodian to exonerate himself from responsibility: NA Policy for selecting intermediaries: As a fund management company, Amiral Gestion selects service providers whose execution policy makes it possible to obtain the best possible result when orders are placed for its UCITs or clients. The company also users service providers that help with investment decisions and execution of orders. The policy is available on the Amiral Gestion website: Commission: Information about commission is available on the Amiral Gestion website: Policy of use of voting rights In accordance with article of the AMF s General Regulation, Amiral Gestion has drawn up a policy for the exercise of voting rights attached to the shares held by mutual funds that it manages. This policy is available on the Amiral Gestion website: A report on voting right is available on request from the fund management company. Criteria concerning the Environment, Social issues and Governance quality (ESG): Amiral Gestion does not simultaneously consider social, environmental and governance quality (ESG) criteria when deciding to buy or divest securities. However, Amiral Gestion does take account of extra-financial criteria in its investment policy. A quality rating is attributed to each investment based on qualitative criteria such as governance quality (respect for minorities, training, employee profit-sharing, quality of relations with suppliers etc) and respect for social and environmental objectives, even if this is not specifically a SRI policy. The policy describing the criteria for respect of social, environmental and governance quality issues is available on the Amiral Gestion website: Method for calculating global risk: The method for assessing the global risk for SEXTANT AUTOUR DU MONDE is the commitment calculation method. Remuneration policy: Amiral Gestion implements a remuneration policy that respects the requirements of the AIFM and UCITS V directives and the ESMA guidelines. This remuneration policy is coherent and promotes sound and efficient risk management and does not encourage risk-taking that

6 would be incompatible with the risk profiles, the regulations and the constitution documents of the mutual funds that it manages. This policy is also tailored to the interests of the mutual funds and their investors. Amiral Gestion employees are remunerated on a fixed and a variable basis. However, the variable part remains marginal relative to the overall remuneration paid to persons who have been identified as risk-takers or equivalent, as defined by the regulations. All employees benefit from profit-sharing and an incentive scheme. All employees are also Amiral Gestion shareholders. Their shareholdings rise gradually and depend on each person s contribution to the company. As a result, the interests of Amiral Gestion investors and employees are aligned: the objective being to achieve the best possible long-term performance and to sustain the company. All company employees have a direct interest in the success of its funds and the company results, in order to discourage any dangerous risk-taking. Breakdown of remuneration paid in 2017 Category of employee Type of remuneration Managers and others who have a direct impact on the risk profile or an equivalent remuneration Compliance, Managers (non-fund) and department heads No. of employees 16 3 Fixed remuneration Total variable remuneration per category Maximum 100,000* - Incentive scheme - Dividends - 266K in bonuses Maximum 100,000 - Incentive scheme - Dividends - 50K 35,000 to 100,000 - Incentive scheme Other employees and non-risk takers 10 - Dividends - 138K * Except for one employee, in whose case a regularisation was necessary Full details of Amiral Gestion s remuneration policy are available on request, by simply writing to your manager at AMIRAL GESTION, 103 rue de Grenelle, Paris Transparence of transactions involving securities and re-use of financial instruments SFTR regulation in the currency of the mutual fund (EUR): During the financial year, the fund made no transactions that were subject to SFTR regulations. Amount of leverage available to the fund: Nil Full details of Amiral Gestion s remuneration policy, as well as total remunerations paid during the financial year, broken down according to the regulatory criteria, are available on request by simply writing to your manager at AMIRAL GESTION, 103 rue de Grenelle, Paris

7 Warning For more information, please refer to the Key Investor Information Document (KIID), the prospectus, and the relevant legal, Documents which are available on the company website or on request to the fund management company. Past performances are not a guide to future performances and are not constant over time. Amiral Gestion rue de Grenelle Paris - T. +33 (0) F (0) A portfolio management company approved by the AMF under the number GP / An insurance brokerage company registered with the ORIAS under the number / A simplified joint stock company with share capital of 629,983 Paris Company Registry: VAT: FR

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12 SEXTANT AUTOUR DU MONDE ANNUAL ACCOUNTS 12/29/17

13 BALANCE SHEET - ASSET ON 12/29/17 IN EUR 12/29/17 12/30/16 Fixed Assets, net Deposits Financial instruments 126,493, ,629, Equities and similar securities 117,665, ,364, Traded in a regulated market or equivalent 117,665, ,364, Not traded in a regulated market or equivalent Bonds and similar securities Traded in a regulated market or equivalent Not traded in a regulated market or equivalent Credit instruments Traded in a regulated market or equivalent Negotiable credit instruments (Notes) Other credit instruments Not traded in a regulated market or equivalent Collective investment undertakings 8,827, ,251, General-purpose UCITS and alternative investment funds intended for 8,827, ,251, non-professionals and equivalents in other countries Other Funds intended for non-professionals and equivalents in other EU Member States General-purpose professional funds and equivalents in other EU Member States and listed securitisation entities Other professional investment funds and equivalents in other EU Member States and listed securitisation agencies Other non-european entities Temporary transactions in securities Credits for securities held under sell-back deals Credits for loaned securities Borrowed securities Securities sold under buy-back deals Other temporary transactions Hedges 14, Hedges in a regulated market or equivalent 14, Other hedges Other financial instruments Receivables 7,256, ,652, Forward currency transactions 6,674, ,602, Other 582, ,050, Financial accounts 3,961, ,747, Cash and cash equivalents 3,961, ,747, Total assets 137,711, ,030,445.01

14 BALANCE SHEET - LIABILITIES ON 12/29/17 IN EUR 12/29/17 12/30/16 Shareholders' funds Capital 117,652, ,780, Allocation Report of distributed items (a) Brought forward (a) Allocation Report of distributed items on Net Income (a,b) 10,572, ,214, Result (a,b) 1,016, , Total net shareholders' funds (net assets) 129,241, ,203, Financial instruments 14, Transfers of financial instruments Temporary transactions in securities Sums owed for securities sold under buy-back deals Sums owed for borrowed securities Other temporary transactions Hedges 14, Hedges in a regulated market or equivalent 14, Other hedges Payables 8,136, ,813, Forward currency transactions 6,653, ,422, Other 1,483, , Financial accounts 333, Short-term credit 333, Loans received Total liabilities 137,711, ,030, (a) Including adjusment (b) Decreased interim distribution paid during the business year

15 OFF-BALANCE SHEET ON 12/29/17 IN EUR 12/29/17 12/30/16 Hedges Contracts in regulated markets or similar Contracts intendeds ES S&P 500 H7 2,226, OTC contracts Other commitments Other operations Contracts in regulated markets or similar OTC contracts Other commitments

16 INCOME STATEMENT ON 12/29/17 IN EUR 12/29/17 12/30/16 Revenues from financial operations Revenues from deposits and financial accounts 0.09 Revenues from equities and similar securities 2,000, ,207, Revenues from bonds and similar securities Revenues from credit instruments Revenues from temporary acquisition and disposal of securities Revenues from hedges Other financial revenues Total (1) 2,000, ,207, Charges on financial operations Charges on temporary acquisition and disposal of securities Charges on hedges Charges on financial debts Other financial charges Total (2) Net income from financial operations (1-2) 1,999, ,207, Other income (3) Management fees and depreciation provisions (4) 1,129, ,017, Net income of the business year (L ) ( ) 870, , Revenue adjustment (5) 145, , Interim Distribution on Net Income paid during the business year (6) Net profit ( ) 1,016, ,198.58

17 NOTES TO THE ANNUAL ACCOUNTS ACCOUNTING RULES AND METHODS The annual accounts are presented as provided by the ANC Regulation repealing Regulation CRC as amended. General accounting principles apply, viz: - fair picture, comparability, ongoing business, - proper practice & trustworthiness, - prudence, - no unreported change in methods from one period to the next. Revenues from fixed-yield securities are recognized on the basis of interest actually received. Acquisitions and disposals of securities are recognized exclusiveof costs. The accounting currency of the portfolio is the EURO. The accounting period reported on is 12 months. Asset valuation rules: Financial instruments are initially recognized at historic cost and carried on the Balance Sheet at their current value: this is their latest known market value or, in the absence of a market, is determined by any external means or by recourse to financial models. Differences between the securities current values determined as above and their original historic cost are recognized in the accounts as differences on estimation. Securities denominated in a currency other than that of the portfolio are valued in accordance with the above principle and then converted into the currency of the portfolio at the exchange rate obtained on the valuation date. Deposit: Deposits maturing in three months or sooner are valued according to the linear method. Equities, bonds and other securities traded in a regulated market or equivalent: When calculating the NAV, the equities and other securities traded in a regulated market or equivalent are valued based on the day s closing market price. Bonds and similar securities are valued at the closing price notified by various financial service providers. Interest accrued on bonds and similar securities is calculated up to the date of asset valuation. Equities, bonds and other securities not traded in a regulated market or equivalent: Securities not traded in a regulated market are valued by the Fund Manager using methods based on net equity and yield, taking into account the prices retained in significant recent transactions.. Negotiable credit instruments (Notes): Negotiable credit instruments which are not actively traded in significant amounts are actuarially valued on the basis of a reference rate as specified below, plus any enhancement to represent the issuer s intrinsic characteristics: Notes maturing in one year s time or less: euro interbank offered rate (Euribor); Notes maturing in more than one year s time: the prevailing rate on medium-term interest-bearing Treasury notes (BTAN) or, for the longest Notes, on near-term fungible Treasury bonds (OAT); Negotiable credit instruments maturing in three months or sooner may be valued according to the linear method. French Treasury notes are valued using the market rate published daily by the Banque de France. UCITS held: UCITS units or shares are valued at the latest known NAV. Temporary transactions in securities:

18 Securities held under sell-back deals are carried in Assets under credits for securities held under sell-back deals at the amount provided for in the contract, plus accrued interest receivable. Securities sold under buy-back deals are booked to the buying portfolio at their current value. The corresponding debt is booked to the selling portfolio at the value set in the contract plus accrued interest payable. Loaned securities are valued at their current value and carried in Assets under credits for loaned securities at their current value plus accrued interest receivable. Borrowed securities are carried in Assets under borrowed securities at the amount provided for in the contract, and in Liabilities under debts for borrowed securities at the amount provided for in the contract plus accrued interest payable. Hedges: Hedges traded in a regulated market or equivalent: Hedge instruments traded in regulated markets are valued at the day s settlement price. Hedges not trades in a regulated market or equivalent: Swaps: Rate swaps and/or forward currency transactions are valued at their market value according to the price calculated by discounting future interest streams at market interest (and/or exchange) rates. This price is adjusted for default risk. Index swaps are valued actuarially on the basis of a reference rate provided by the counterparty. Other swaps are valued at their market value or are estimated as specified by the Fund Manager. Off-Balance Sheet Commitments: Firm hedging contracts are stated among Off-Balance Sheet Commitments at their market value at the rate used in the portfolio. Conditional hedges are converted into their underlying equivalents. Swap commitments are stated at their nominal value or at an equivalent amount, where there is no nominal value. Management fees: Management fees are calculated on the nominal capital on each valuation. These fees are imputed to the fund s Income Statement. Management fees are paid in full to the Fund Manager, which bears all the fund s operating costs. The management fees do not include dealing costs. The percentage of nominal capital charged is % including taxes. Allocation of net profit: The net profit (loss) for the period is the total of interest, arrears, premiums, allotments and dividends, plus income on ready cash, minus management fees and financial dealing costs. Latent or realised capital gains or losses are not counted as revenue; nor are subscription/redemption fees. The amounts available for distribution are the net profit for the period, plus any sums brought forward, plus or minus the balance of any revenue adjustment accounts relating to the financial period in question. Gains and losses: The net realised gains (deducted from management fees and realised losses) from the financial year will increase the same type of net realized gains from earlier financial years, if the fund hasn t distributed or accumulated its gains and will also increase or reduce the equalization accounts for realised gains. Appropriation methods for the distributable amounts: Distributable amounts Allocation of the net income Unit: Accumulation and/ or distribution and / or carry forward a decision taken by the management

19 Allocation of the net realized gains and losses Accumulation and/ or distribution and / or carry forward a decision taken by the management

20 2. CHANGES IN NET ASSETS 12/29/17 IN EUR 12/29/17 12/30/16 Net assets in start of period 74,203, ,751, Subscriptions (including subscription fees received by the fund) 87,068, ,766, Redemptions (net of redemption fees received by the fund) -41,912, ,366, Capital gains realised on deposits and financial instruments 11,275, ,093, Capital losses realised on deposits and financial instruments -1,752, ,031, Capital gains realised on hedges 453, , Capital losses realised on hedges -499, , Dealing costs -441, , Exchange gains/losses -5,389, , Changes in difference on estimation (deposits and financial instruments) 5,380, , Difference on estimation, period N 16,904, ,523, Difference on estimation, period N-1-11,523, ,130, Changes in difference on estimation (hedges) -14, , Difference on estimation, period N 14, Difference on estimation, period N-1-14, Net Capital gains and losses Accumulated from Previous business year Distribution on Net Capital Gains and Losses from previous business year Net profit for the period, before adjustment prepayments 870, , Allocation Report of distributed items on Net Income Interim Distribution on Net Income paid during the business year Other items Net assets in end of period 129,241, ,203,247.74

21 3. FURTHER DETAILS 3.1. BREAKDOWN OF FINANCIAL INSTRUMENTS BY LEGAL OR COMMERCIAL TYPE Amount % Assets Bonds and similar securities Total bonds and similar securities Credit instruments Total credit instruments Liabilities Transactions involving transfer of financial instruments Total transactions involving transfer of financial instruments Off-balance sheet Hedges Total hedges Other operations Total other operations

22 3.2. BREAKDOWN OF ASSET, LIABILITY AND OFF-BALANCE SHEET ITEMS, BY TYPE Fixed rate % Variable rate % Rate subject to review % Other % Assets Deposits Bonds and similar securities Credit instruments Temporary transactions in securities Financial accounts 3,961, Liabilities Temporary transactions in securities Financial accounts 333, Off-balance sheet Hedges Other operations 3.3. BREAKDOWN OF ASSET, LIABILITY AND OFF-BALANCE SHEET ITEMS, BY TIME TO MATURITY < 3 Months % ]3 Months - 1 Year] % ]1-3 Years] % ]3-5 Years] % > 5 Years % Assets Deposits Bonds and similar securities Credit instruments Temporary transactions in securities Financial accounts 3,961, Liabilities Temporary transactions in securities Financial accounts 333, Off-balance sheet Hedges Other operations All hedges are shown in terms of time to maturity of the underlying securities.

23 3.4. BREAKDOWN OF ASSET, LIABILITY AND OFF-BALANCE SHEET ITEMS, BY LISTING OR VALUATION CURRENCY USD JPY KRW Other currencies Amount % Amount % Amount % Amount % Assets Deposits Equities and similar securities 18,390, ,532, ,908, ,648, Bonds and similar securities Credit instruments Mutual fund units Temporary transactions in securities Liabilities 2, , , Financial accounts 806, Liabilities Transactions involving transfer of financial instruments Temporary transactions in securities Debts 6,653, Financial accounts 333, Off-balance sheet Hedges Other operations 3.5. RECEIVABLES AND PAYABLES: BREAKDOWN BY TYPE 12/29/17 Receivables Funds to be accepted on urgent sale of currencies 6,674, Sales deferred settlement 27, Subscription receivable 508, Coupons and dividends in cash 46, Total receivables 7,256, Payables Urgent sale of currency 6,653, Purchases deferred settlement 716, Redemptions to be paid 651, Management fees 115, Total of Payables 8,136,596.93

24 3.6. SHAREHOLDERS FUNDS Number of units issued or redeemed Units Value SEXTANT AUTOUR DU MONDE A Units subscribed during the period 339, ,933, Units redeemed during the period -117, ,614, Net Subscriptions / Redemptions 221, ,318, SEXTANT AUTOUR DU MONDE I Units subscribed during the period 5, ,454, Units redeemed during the period -7, ,593, Net Subscriptions / Redemptions -1, ,139, SEXTANT AUTOUR DU MONDE Z Units subscribed during the period 3, , Units redeemed during the period -3, , Net Subscriptions / Redemptions , Subscription and/or redemption fees SEXTANT AUTOUR DU MONDE A Total of redemption fees received Total of subscription fees received Total of subscription and/or redemption fees received Value SEXTANT AUTOUR DU MONDE I Total of redemption fees received Total of subscription fees received Total of subscription and/or redemption fees received SEXTANT AUTOUR DU MONDE Z Total of redemption fees received Total of subscription fees received Total of subscription and/or redemption fees received 3.7.MANAGEMENT FEES SEXTANT AUTOUR DU MONDE A 12/29/17 Underwriting commission Fixed management fees Percentage of management charges Variable management fees Trailer fees 944,

25 3.7.MANAGEMENT FEES 12/29/17 SEXTANT AUTOUR DU MONDE I Underwriting commission Fixed management fees Percentage of management charges Variable management fees Trailer fees 175, SEXTANT AUTOUR DU MONDE Z Underwriting commission Fixed management fees Percentage of management charges Variable management fees Trailer fees 9,

26 3.8. COMMITMENTS RECEIVED AND GIVEN Guarantees received by the fund : None Other commitments received and/or given : None

27 3.9. FURTHER DETAILS Stock market values of temporarily acquired securities 12/29/17 Securities held under sell-back deals Borrowed securities Stock market values of pledged securities 12/29/17 Financial instruments pledged but not reclassified Financial instruments received as pledges but not recognized in the Balance Sheet Group financial instruments held by the Fund Isin code Name of security 12/29/17 Equities Bonds Notes UCITS Hedges

28 3.10. TABLE OF ALLOCATION OF THE DISTRIBUTABLE Table of allocation of the distributable share of the sums concerned to profit (loss) 12/29/17 12/30/16 Sums not yet allocated Brought forward Profit (loss) 1,016, , Total 1,016, , /29/17 12/30/16 C0 SEXTANT AUTOUR DU MONDE A Allocation Distribution Brought forward Capitalized 731, , Total 731, , /29/17 12/30/16 C1 SEXTANT AUTOUR DU MONDE I Allocation Distribution Brought forward Capitalized 116, , Total 116, , /29/17 12/30/16 C2 SEXTANT AUTOUR DU MONDE Z Allocation Distribution Brought forward Capitalized 169, , Total 169, ,774.39

29 Table of allocation of the distributable share of the sums concerned to capital gains and losses 12/29/17 12/30/16 Sums not yet allocated Net Capital gains and losses Accumulated from Previous business year Net Capital gains and losses of the business year 10,572, ,214, Allocation Report of distributed items on Net Capital Gains and Losses Total 10,572, ,214, /29/17 12/30/16 C0 SEXTANT AUTOUR DU MONDE A Allocation Distribution Net capital gains and losses accumulated per share Capitalized 8,337, ,683, Total 8,337, ,683, /29/17 12/30/16 C1 SEXTANT AUTOUR DU MONDE I Allocation Distribution Net capital gains and losses accumulated per share Capitalized 1,459, ,059, Total 1,459, ,059, /29/17 12/30/16 C2 SEXTANT AUTOUR DU MONDE Z Allocation Distribution Net capital gains and losses accumulated per share Capitalized 775, , Total 775, ,553.71

30 3.11. TABLE OF PROFIT (LOSS) AND OTHER TYPICAL FEATURES OF THE FUND OVER THE PAST FIVE FINANCIAL PERIODS 12/31/13 12/31/14 12/31/15 12/30/16 12/29/17 Global Net Assets in EUR 34,147, ,828, ,751, ,203, ,241, SEXTANT AUTOUR DU MONDE A Net assets in EUR 28,044, ,588, ,738, ,103, ,908, Number of shares/units 217, , , , , NAV per share/unit in EUR in EUR Net Capital Gains and Losses Accumulated per share in EUR Net income Accumulated per share in EUR SEXTANT AUTOUR DU MONDE I Net assets in EUR 4,917, ,981, ,038, ,713, ,844, Number of shares/units 3, , , , , NAV per share/unit in EUR in EUR 1, , , , , Net Capital Gains and Losses Accumulated per share in EUR Net income Accumulated per share in EUR SEXTANT AUTOUR DU MONDE Z Net assets in EUR 1,185, ,258, ,974, ,385, ,488, Number of shares/units 9, , , , , NAV per share/unit in EUR in EUR Net Capital Gains and Losses Accumulated per share in EUR Net income Accumulated per share in EUR

31 3.12. PORTFOLIO LISTING IN EUR Name of security Currency Quantity Market value % Equities and similar securities Listed equities & similar securitie AUSTRALIA OPUS GROUP LTD AUD 1,275, , REGIONAL EXPRESS HOLDINGS LTD AUD 2,597,513 2,588, TOTAL AUSTRALIA 2,987, BELGIUM ONTEX GROUP NV EUR 34, , PICANOL EUR 6, , TOTAL BELGIUM 1,559, BERMUDA CLEAR MEDIA LTD HKD 1,406,879 1,164, GP INVESTMENTS REPR.1 CL.A BRL 1,675,000 2,426, SIS INTERNATIONAL HOLDINGS LTD HKD 3,450,000 1,874, TAI CHEUNG HOLDINGS LIMITED HKD 1,300,000 1,250, TAN CHONG INT LTD HKD 8,000,000 2,215, TOTAL BERMUDA 8,931, BRAZIL WHIRLPOOL SA PREF BRL 2,153,452 2,697, TOTAL BRAZIL 2,697, BRITISH VIRGIN ISLANDS MAIL.RU GROUP GDR USD 75,000 1,805, TOTAL BRITISH VIRGIN ISLANDS 1,805, CHINA BAIDU.COM SPONS.ADR CL.A USD 8,000 1,560, TOTAL CHINA 1,560, DENMARK BRODRENE HARTMANN A/S DKK 10, , TOTAL DENMARK 446, EN-ESTONIE SILVANO FASHION GROUP AS EUR 509,160 1,466, EN-TOTAL ESTONIE 1,466, EN-VIET NAM VIETNAM DAIRY PRODUCT VND 55, , EN-TOTAL VIET NAM 420, FRANCE AMUNDI EUR 10, , BOLLORE ACT EUR 201, , BOLLORE E17 EUR 1,042 4, CRCAM NORD FRANCE CCI EUR 35, ,

32 Name of security Currency Quantity Market value % CRITEO ADR USD 200,100 4,337, DERICHEBOURG EUR 129,751 1,182, ELIS EUR 35, , EUROPCAR GROUPE EUR 90, , FINANCIERE DE L ODET EUR 2,850 2,809, ILIAD EUR 5,750 1,148, LISI EX GFI INDUSTRIES SA EUR 7, , NANOBIOTIX EUR 30, , PARROT EUR 100, , SOPRA STERIA EUR 6, , SYNERGIE EUR 25,000 1,097, VIEL ET COMPAGNIE EUR 238,341 1,287, VIVENDI EUR 125,000 2,802, TOTAL FRANCE 21,396, GERMANY BMW VZ EUR 11, , GFT TECHNOLOGIES EUR 36, , ROCKET INTERNET AG EUR 121,000 2,556, SIXT PREF EUR 35,400 1,873, ZOOPLUS EUR 5, , TOTAL GERMANY 6,598, GREECE ELTECH ANEMOS EUR 320, , FOURLIS HOLDING EUR 105, , MOTOR OIL HELLAS CORINTH REFINERIES EUR 40, , MYTILINEOS EUR 57, , TOTAL GREECE 2,383, HONG KONG GOLDLION HOLDINGS HKD 690, , KECK SENG INVEST HKD 2,450,000 1,826, TOTAL HONG KONG 2,054, ILIAC TRACTS CAIMANES CTRIP COM INTL ADR USD 22, , FAR EAST CONSORTIUM HKD 900, , JNBY DESIGN LTD HKD 1,580,000 1,599, VIPSHOP HOLDINGS USD 190,000 1,854, TOTAL ILIAC TRACTS CAIMANES 4,712,

33 Name of security Currency Quantity Market value % INDIA NESCO LTD DM2 INR 533,500 3,669, TOTAL INDIA 3,669, ITALY ESPRINET SPA EUR 25, , RENO DE MEDICI ORD.CAT.A EUR 206, , TOTAL ITALY 207, JAPAN AS ONE JPY 54,700 2,854, CHUGOKU MARINE PAINT JPY 31, , DAIWA INDUSTRIES JPY 83, , EZAKI GLICO ORD NPV JPY 51,300 2,131, FUJITEC JPY 122,910 1,478, MITSUBISHI LOGISNEXT CO LTD JPY 297,500 2,194, NIHON DENGI CO LTD JPY 20, , SHISEIDO CO JPY 40,000 1,610, SK KAKEN JPY 36,700 3,255, SOFTWARE SERVICE INC JPY 23,000 1,180, TOLI CORP. JPY 441,100 1,441, TOYOTA INDUSTRIES CORP JPY 52,850 2,828, TOTAL JAPAN 20,450, LUXEMBURG MATSUMOTO YUSHI-SEIYAKU JPY 12,000 1,082, TOTAL LUXEMBURG 1,082, NETHERLANDS FORFARMERS NV EUR 46, , TOTAL NETHERLANDS 480, PORTUGAL IBERSOL SGPS ESCRITURAIS EUR 51, , MOTA ENGIL SGPS SA EUR 152, , TOTAL PORTUGAL 1,181, REPUBLIC OF KOREA CJ CHEILJEDANG CORP PREF KRW 11,750 1,375, HYUNDAI MOBIS KRW 9,000 1,841, HYUNDAI MOTORS CIE PREF KRW 12, , LG HOUSEHOLD HEALTHCARE CO PREF KRW 10,500 5,701, NEXEN TIRE CORP PREF KRW 420,000 1,721, NEXEN TIRE CORP PREF KRW 70, , SAMSUNG SDI CO LTD KRW 11, ,

34 Name of security Currency Quantity Market value % SEBANG CO LTD PREF KRW 215,000 1,291, TOTAL REPUBLIC OF KOREA 13,908, RUSSIA SBERBANK OF RUSSIA OJSC PREF RUB 250, , TOTAL RUSSIA 683, SINGAPORE YOMA STRATEGIC SGD 1,450, , TOTAL SINGAPORE 487, SPAIN DIA EUR 250,000 1,075, TECNICAS REUNIDAS EUR 6, , TOTAL SPAIN 1,249, STOCKING STITCH SAFESTYLE UK PLC GBP 213, , TOTAL STOCKING STITCH 421, SWITZERLAND RIETER HOLDING N.PROV.DIVISION CHF 2, , TOTAL SWITZERLAND 514, TAIWAN AN-SHIN FOOD -REGISTERED SHARE TWD 1,051,000 2,629, HIM INTERNATIONAL MUSIC INC TWD 284, , TOTAL TAIWAN 3,436, UNITED KINGDOM EASYJET GBP 98,400 1,622, EUROCELL PLC GBP 35,000 84, ITE GROUP PLC GBP 247, , JUDGES SCIENTIFIC PLC GBP 27, , LIBERTY LILAC -C-PLC USD 63,700 1,055, TOTAL UNITED KINGDOM 3,902, USA BERKSHIRE HATHAWAY INC CLASS A USD 5 1,239, GAMESTOP CORP ACTION A USD 195,500 2,922, GGP USD 20, , MACERICH USD 8, , TRIPADVISOR USD 68,300 1,960, TOTAL USA 6,969, TOTAL listed equities & similar securities traded in a regulated market or equivalent 117,665, Total equities & similar securities 117,665,

35 Name of security Currency Quantity Market value % Collective investment undertakings General-purpose UCITS and alternative investment funds intended for non-professionals and equivalents in other countries FRANCE BFT AUREUS - I C EUR 70, ,691, TOCQUEVILLE GOLD-N EUR 18, ,136, TOTAL FRANCE 8,827, TOTAL General-purpose UCITS and alternative investment funds intended for non-professionals and equivalents in other countries 8,827, Total collective investment undertakings 8,827, Receivables 7,256, Debts -8,136, Financial accounts 3,628, Net assets 129,241, SEXTANT AUTOUR DU MONDE A EUR 459, SEXTANT AUTOUR DU MONDE I EUR 7, , SEXTANT AUTOUR DU MONDE Z EUR 39,