HALF-YEARLY REPORT. ACTIVE INVEST PROGRESSIVE, OTEVŘENÝ PODÍLOVÝ FOND (the Fund ) OF THE COLLECTIVE INVESTMENT FUND: INFORMATION AS AT 30 June 2017

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HALF-YEARLY REPORT OF THE COLLECTIVE INVESTMENT FUND: ACTIVE INVEST PROGRESSIVE, OTEVŘENÝ PODÍLOVÝ FOND (the Fund ) INFORMATION AS AT 30 June 2017 Conse

1 HALF-YEARLY REPORT OF THE COLLECTIVE INVESTMENT FUND: ACTIVE INVEST PROGRESSIVE, OTEVŘENÝ PODÍLOVÝ FOND (the Fund ) INFORMATION AS AT 30 June 2017 Conseq Funds investiční společnost, a.s., Burzovní palác, Rybná 682/14, Praha 1, tel , fax , Reg. No , incorporated by entry in the Commercial Register kept by the Municipal Court in Prague, Section B, File 17126

2 I. INFORMATION AND FACTS in accordance with Act No 240/2013 on investment companies and investment funds and further to Implementing Decree No 244/2013 on the more detailed regulation of certain rules under the Investment Companies and Investment Funds Act, for the reporting period from 1 January to 30 June 2017 A. INFORMATION ON PERSONS MANAGING FUND ASSETS (PORTFOLIO MANAGERS, ANY EXTERNAL MANAGERS) Company name Conseq Investment Management, a.s. (the External Manager ), incorporated by entry in the Commercial Register kept by the Municipal Court in Prague, Section B, File 7153 Registration number Registered office Praha 1, Rybná 682/14, Other information Under an agreement on the delegation of management (in accordance with the Investment Companies and Investment Funds Act) of 2 December 2013, Conseq Funds investiční společnost, a.s. (the Company ) delegated the management of the Fund s financial assets to the External Manager with effect in relation to the Fund from 5 January Brief description of experience and knowledge The External Manager is a securities trader who, since 2001, has inter alia provided the investment service of the management of customer assets, insofar as they include an investment instrument, on a discretionary basis within the scope of a contractual arrangement. External Manager s key officers involved in Fund management Jan Vedral Upon graduating from the Business Management Faculty at the University of Economics, Prague, he worked for Investiční banka. In 1992, he joined Agrobanka Praha (now GE Money Bank), where as prime broker he participated in the earliest transactions on the infant Czech primary and secondary capital markets. In late 1994, he initiated the establishment of Conseq Finance, a.s., a company he headed until Throughout this time, he was directly responsible for the operations division, the equity trading group and the investment management group. Jan Vedral has continued to work for the External Manager as the chief investment manager, leading the investment team and setting the main investment strategy. Together with Hana Blovská, he contributes to decision-making on the company s business policy and its operational management. Anne-Françoise Blüher Anne-Françoise Blüher studied at Trinity College in Dublin and Christian-Albrechts- Universität in Kiel, Germany, where she was awarded her Volkswirtin diploma (equivalent to a master s degree), specialising in quantitative methods. Anne- Françoise Blüher has worked as a macroeconomist and financial market analyst in the Czech and German financial sectors for more than 20 years, both in investment banking and portfolio management. She has worked for Union Investment in Frankfurt am Main, Conseq Finance, PPF and Komerční banka. Since 2015, Anne- 1

3 Françoise Blüher has continued to work for the External Manager, where she is responsible for strategic fund portfolio management. Adam Šperl He worked as a portfolio manager for the External Manager since Here, he is responsible for the management of fund portfolios and the portfolios of institutional and retail clients. He previously had a stint at Česká pojišťovna, where he was involved in the management of investment risks within the Generali Group. He graduated in banking and insurance from the Faculty of Finance and Accounting and in economic analysis from the Faculty of Economics at the University of Economics, Prague. He is a CFA Level III candidate. Tom Kadeřábek He is a finance student at the Faculty of Finance and Accounting, University of Economics, Prague. He has earned a bachelor s degree in finance and is now completing his master s degree. He joined the External Manager in Having started out in sales, he is now a portfolio manager responsible for fund portfolio management. B. INFORMATION ON THE FUND DEPOSITARY in the reporting period and in the period over which it played the role of depositary Throughout the reporting period, the Fund s depositary was UniCredit Bank Czech Republic and Slovakia, a.s., registration number , having its registered office at Praha 4 Michle, Želetavská 1525/1, , incorporated by entry in the Commercial Register kept by the Municipal Court in Prague, Section B, File 3608 (the Depositary ). C. INFORMATION ON THE ENTITY ENTRUSTED WITH THE CUSTODY OR SAFEKEEPING OF THE FUND S ASSETS if more than 1% of the Fund s asset value is deposited with that entity. The custody or other safekeeping of the Fund s assets is provided solely by the Fund s Depositary (see B above). D. INFORMATION ON THE MAIN PROMOTER in the reporting period and in the period over which it played the role of main promoter No entity played the role of the main promoter for the Fund s assets in the reporting period. 2

4 E. IDENTIFICATION OF FUND ASSETS if the value exceeds 1% of the Fund s asset value as at 30 June 2017, with an indication of the total acquisition cost and the fair value at the end of the reporting period Equity securities in Fund assets: Security name (or issuer) ISIN Total acquisition cost (CZK thousands) Total fair value (CZK thousands) as at 30 June 2017 ALLRCMEuEqGrAcIEUR LU ,253 3,361 BGFEuropEqIncD2EUR LU ,169 2,251 BGFUSBasicValI2USD LU ,445 3,182 EquityFundB IE ,658 13,575 FFAmeFuIUSD LU ,790 4,487 FFAustraliaYAUD LU ,786 2,937 FFCorBondYEUR LU ,387 3,366 FFEmeAsiIUSD LU ,534 6,565 FFEurHiYiYEUR LU ,298 1,320 FranEuropSmMidIEUR LU ,216 3,458 FranMutBeacIUSD LU ,887 7,011 FranMutEuropIEUR LU ,492 4,502 INGEurEquityIEUR LU ,627 4,465 INGJapanIJPY LU ,047 2,111 INGLatAmericaIUSD LU ,560 3,586 NewEuropeBF_A IE00B0SY6161 4,333 4,331 NNIntRoEqIEUR LU ,483 1,650 ParvEqBesSelInEUR LU ,047 4,498 ParvEqBSAsXJIEUR LU ,032 5,434 ParvEqLatAmIUSD LU ,505 1,564 ParvEqUSSmCaIUSD LU ,678 3,857 ParvJapanIQuaJPY LU ,076 2,118 ParvUsaQuaIUSD LU ,959 7,037 TemAsiaSmalCoIUSD LU ,981 3,231 TempAsianGrowtIUSD LU ,172 6,513 TempFronMarIUSD LU ,318 2,499 ALLRCMEuEqGrAcIEUR LU ,253 3,361 BGFEuropEqIncD2EUR LU ,169 2,251 Acquisition cost (CZK Fair value (CZK thousands) as at Asset thousands) 30 June 2017 Balances with banks 3,031 3,031 3

5 F. VALUE OF ALL PROFIT-SHARING PAID OUT PER SHARE As a growth fund, the Fund does not engage in the sharing of profits (dividend payouts) or yields from Fund management. Instead, profits and yields are reinvested and are reflected in the Fund share value. G. INFORMATION ON THE FEE ACTUALLY PAID TO THE MANAGER FOR FUND ASSET MANAGEMENT distinguishing between information on the fee for the role of depositary, administrator, main promoter, or auditor, and information on other costs or taxes For the period from 1 January to 30 June 2017, the cost of the Fund asset management fee was CZK 765,000. For the period from 1 January to 30 June 2017, the cost of the provision of the role of the depositary was CZK 43,000 and the cost of other depositary services was CZK 73,000. For the period from 1 January to 30 June 2017, the cost of auditor services was CZK 36,000. For the period from 1 January to 30 June 2017, the cost of keeping records of Fund shares was CZK 130,000. Other administrative costs over the period amounted to CZK 4,000. For the period from 1 January to 30 June 2017, an income tax provision of CZK 170,000 was created. 4

6 H. RISKS ASSOCIATED WITH DERIVATIVES, QUANTITATIVE LIMITS AND RISK ASSESSMENT METHODS selected for an assessment of risks associated with Fund management techniques in the reporting period, including information on trade counterparties, the type and amount of security received, revenues and costs associated with the use of these techniques, and information on investment limits in relation to derivatives negotiated on account of the Fund Derivative-related risks The risks associated with financial types of derivatives are essentially market risks, specifically currency, equity or interest rate risks, depending on the underlying asset of the derivative, and the credit risk of the counterparty. For derivatives, it is necessary to draw attention to the implications of leverage, which generally means that even a slight change in the price of the underlying instrument from which the derivative is derived results in a relatively large change in the price of the derivative. The counterparty risk stemming from financial derivatives, expressed as the sum of positive fair values of those derivatives, must not exceed the following for any one contracting party: - 10% of the Fund asset value if the contracting party is a person referred to in Section 72(2) of the Investment Companies and Investment Funds Act; or - 5% of the Fund asset value if the contracting party is a person other than a person referred to in the preceding indent. In the Fund, FX swap and FX forward operations are currently carried out; this is exclusively to hedge the currency risk in the Fund s portfolio (only forward points are an expense when this technique is applied). Unwavering counterparties include UniCredit Bank Czech Republic and Slovakia, a.s., which also plays the role of depositary, as well as Citibank Europe plc, organizační složka, PPF banka a.s. and Česká spořitelna, a.s. Quantitative limits selected for the assessment of risks associated with Fund management techniques The only Fund management techniques are repurchase transactions and financial derivatives. These techniques may be used only under the terms and conditions and upon compliance with the limits laid down for a standard fund according to the Investment Companies and Investment Funds Act and Government Regulation No 243/2013 on the investments of investment funds and on techniques for the management thereof (the Government Regulation ). Quantitative limits selected for the assessment of risks associated with Fund portfolio management The Fund invests a minimum of 70% of Fund capital, less accumulated amortisation and value adjustments, in securities issued by equity funds. The Fund may not invest more than 20% of the adjusted Fund capital in securities issued by a single collective investment fund. More than 25% of the value of the fund capital of a single collective investment fund cannot be acquired as Fund assets. Securities issued by special funds must not aggregate more than 30% of the adjusted Fund capital. Bank deposits must not account for more than 20% of the adjusted Fund capital. This limit need not be observed in relation to the Depositary upon the financial settlement of the issuance or redemption of Fund shares. Investment securities and money market instruments issued by a single issuer must not comprise more than 10% of the 5

7 adjusted Fund capital or, where investment securities and money market instruments are issued by issuers within a holding for which consolidated financial statements are drawn up, 20% of the adjusted Fund capital; however, the sum of these investments must not exceed 30% of the adjusted Fund capital. Notwithstanding the above limit, the Fund may invest up to 25% of the adjusted Fund capital in bonds issued by a single bank, a single savings and loan association or a single foreign bank established in a member state and subject to the supervision of that state protecting the interests of bond holders, where financial resources obtained by the issue of such bonds are invested in such types of assets which, until the bond redemption date, cover the issuer s commitments under those bonds, and which may, in case of issuer insolvency, be used as a matter of priority to redeem the bond and to pay the yields. No more than 10% of the adjusted Fund capital may be invested in investment securities referred to in Section 3, paragraph 1(e), or in money market instruments referred to in Section 9 of the Government Regulation. Where investment securities or money market instruments are not issued or guaranteed by a member state s central or local government, or are not issued by an international financial organisation of which one or more member states are members, they may be acquired as Fund assets up to a maximum of 10% of: 1) the total nominal value or total number of shares issued by a single issuer to which no voting rights are attached; 2) the total nominal value of bonds issued by a single issuer; or 3) the total nominal value or total number of money market instruments issued by a single issuer. The sum of values of investment securities and money market instruments issued by a single issuer, the values of claims to payment from a bank deposit in respect of that issuer and the values of exposure to counterparty risk arising from financial derivatives not admitted to trading agreed with that issuer must not exceed 20% of the adjusted Fund capital. Methods selected for the assessment of risks associated with Fund portfolio management and Fund management techniques In the management of risks arising from the use of investment instruments that are part of the Fund s assets, the Company applies the following methods: (a) monitoring and checks of compliance with the relevant rules on risk distribution and control (investment limits and rules) under the corresponding legislation of general application and the Fund prospectus; (b) monitoring of developments in the volatility of Fund performance, expressed as a standard deviation calculated from 36 monthly performances of Fund shares at an annual rate; (c) monitoring of operational risk events. The Company hedges the credit risk among derivatives and repo transactions in accordance with the rules laid down in the Fund prospectus and the Government Regulation. The Company also monitors developments in the credit ratings of investment instruments. I. ANNUAL IMBALANCE IN MONITORING BETWEEN THE FUND S PERFORMANCE AND THE BENCHMARK S PERFORMANCE if the Fund monitors a particular index or other financial quantitatively expressed indicator (benchmark), including explanations of differences between the projected and actual imbalance in monitoring in the relevant period The actual imbalance between the performance of the Fund s PLN class and the performance of the benchmark in the relevant period is 2.23%. The projected imbalance in monitoring in the relevant period is not explicitly defined for the Fund. 6

8 The actual imbalance between the performance of the Fund s EUR class and the performance of the benchmark in the relevant period is 1.68%. The projected imbalance in monitoring in the relevant period is not explicitly defined for the Fund. J. TOTAL NUMBER OF FUND SHARES that are in circulation as at 30 June 2017 and that were issued and redeemed in the reporting period In the reporting period, the Fund issued 944,000 PLN class shares (ISIN CZ ) and redeemed 31,855 Fund shares. As at 30 June 2017, 1,796,635 Fund PLN class shares were therefore in circulation. In addition, in the reporting period the Fund issued 9,595,556 EUR class shares (ISIN CZ ) and redeemed 1,652,895 Fund shares. As at 30 June 2017, 37,576,134 Fund EUR class shares were in circulation. K. FUND CAPITAL PER SHARE As at 30 June 2017, there was Fund capital of PLN per Fund PLN class share (ISIN CZ ). As at 30 June 2017, there was Fund capital of EUR per Fund EUR class share (ISIN CZ ). L. FUND ASSET STRUCTURE AND CHANGES THERETO Total share (%) in assets 30 June June 2017 Balances with banks 2.61% 5.77% Shares, units and other investments 97.38% 93.73% Other assets 0.01% 0.50% M. INFORMATION ON SFTs AND SWAPS OF ALL YIELDS No SFTs or swaps of any yields were realised on the Fund s account during the reporting period.. 7

HALF-YEARLY REPORT OF THE COLLECTIVE INVESTMENT FUND: INFORMATION AS AT 30 June 2018

HALF-YEARLY REPORT OF THE COLLECTIVE INVESTMENT FUND: CONSEQ POLSKÝCH DLUHOPISŮ, OTEVŘENÝ PODÍLOVÝ FOND (the Fund ) INFORMATION AS AT 30 June 2018 Conseq Funds investiční společnost, a.s., Burzovní palác,