Annual Report as of September 30, 2017

Transcription

1 UI Annual Report as of September 30, 2017 Société d Investissement à Capital Variable R.C.S. Luxembourg B Administrative Agent:

2 UI Table of Contents Organisation 3 Report of the Board of Directors 4 Derivative Exposure 4 Risk Management 5 Remuneration Policy of the Management Company 6 Report of the Portfolio Manager 7-11 Combined Statement of Net Assets 12 Combined Statement of Operations Combined Statement of Changes in Net Assets 15 UI - Petrus Advisers Special Situations Fund UCITS Fund Structure 16 Statement of Net Assets Derivatives Statement of Operations Statement of Changes in Net Assets 24 Statistical Information Additional annex data under regulation (EU) 2015/2365 relating to securities financing transactions Aditional annex data under ESMA-Leitlinien ESMA/2014/ UI - EVP European Value Equities ex UK Fund Structure 29 Statement of Net Assets Statement of Operations 32 Statement of Changes in Net Assets 33 Statistical Information 34 Notes to the Financial Statements Report of the Réviseur d Entreprises agréé

3 UI Organisation Company Management Company, Central Administration, Domiciliary and Corporate Agent and Global Distributor UI Universal-Investment-Luxembourg S.A. R.C.S. Lux B R.C.S. Lux B , rue de Flaxweiler, L Grevenmacher 15, rue de Flaxweiler, L Grevenmacher Directors of the Company Depositary Bank, Paying Agent, Registrar and Transfer Agent Chairman of the Board Alain Nati (until April 25, 2017) Director at Universal-Investment-Luxembourg S.A., Grevenmacher State Street Bank Luxembourg S.C.A. 49, avenue John F. Kennedy, L Luxembourg Portfolio Manager and Distributor Peter Sasse (since April 26, 2017) Director Legal/Fund Setup at Universal-Investment-Luxembourg S.A., Grevenmacher Members of the Board UI - Petrus Advisers Special Situations Fund UCITS Petrus Advisers Ltd. 6 New Street Square, New Letter Lane, UK - London EC4A 3AQ Ulrike Sauer (since April 26, 2017) Senior Manager at Universal-Investment-Luxembourg S.A., Grevenmacher Klaus Pyter Greenvest S.A., Moutfort UI - EVP European Value Equities ex UK Mensarius AG (formerly European Value Partners AG) Dufourstrasse 5, CH Zollikon Réviseur d Entreprises agréé KPMG Luxembourg, Société coopérative Cabinet de révision agréé 39, avenue John F. Kennedy, L Luxembourg 3

4 UI Report of the Board of Directors Dear Shareholders, With this report, we would like to give you an overview of the general economic environment and the performance of the UI and its respective sub-funds UI - Petrus Advisers Special Situations Fund UCITS and UI - EVP European Value Equities ex UK *). UI (the Company ) is organised in Luxembourg as a société d investissement à capital variable ( SICAV ) and qualifies as a collective investment undertaking under Part I of the Luxembourg law of December 17, The Company was established on July 21, 2015 for an indefinite duration. UI has the structure of an umbrella fund. The reference currency is Euro (EUR). The sub-fund UI - EVP European Value Equities ex UK and the share class UI - EVP European Value Equities ex UK I EUR (ISIN: LU ) were launched with effective date of December 14, As at September 30, 2017, the net asset value and the performance of the share price of the sub-funds during the reporting period were as follows: Sub-fund / Share class ISIN Net asset value of the share class in EUR Performance of the share price in % UI - Petrus Advisers Special Situations Fund UCITS - I LU ,851, UI - Petrus Advisers Special Situations Fund UCITS - R LU ,369, UI - EVP European Value Equities ex UK I EUR (December 14, 2016 until September 30, 2017) LU ,755, *) The sub-fund UI - EVP European Value Equities ex UK is not authorized for public distribution of shares in the Federal Republic of Germany. Derivative Exposure (unaudited) The table below shows the derivative exposure as per September 30, 2017: Sub-fund Derivative exposure in % UI - Petrus Advisers Special Situations Fund UCITS UI - EVP European Value Equities ex UK

5 UI Risk Management (unaudited) 1. Relative VaR approach When determining the global risk exposure of the sub-fund, the management company uses the value-at-risk calculation as its risk management procedure for the sub-fund UI - Petrus Advisers Special Situations Fund UCITS in agreement with Article 16 of the articles of incorporation and in accordance with CSSF circulars (11/512). The relative value-at-risk method has been used for the sub-fund. During the period from October 1, 2016 until September 30, 2017 the relative VaR approach has been used for monitoring and measuring the global risk associated with derivatives. The derivative free reference portfolio is 50% EURO STROXX 50 Index and 50% EURO STOXX Small Index. The following sub-fund s VaR ratios have been calculated daily using historical simulation based on these figures: 99% confidence level, 1-day holding period and 1-year observation period. The following utilizations of VaR limits have been calculated during the reporting period: Sub-fund Minimum in % Maximum in % Average in % UI - Petrus Advisers Special Situations Fund UCITS The leverage is calculated in accordance with the sum of notional approach and guidelines specified in CESR/ Hedging and netting effects are not considered in the calculation. Therefore an unleveraged portfolio results in a leverage of 100%. The average leverage during the reporting period was %. 2. Commitment approach The global risk on derivatives has been determined according to the commitment approach during the reporting period. The sum of these underlying equivalents must not exceed the net asset value of the sub-fund. Sub-fund UI - EVP European Value Equities ex UK Reporting period December 14, 2016 until September 30,

6 UI Remuneration Policy of the Management Company (unaudited) The fees of the employees are specified as follows (as of September 30, 2017): Total of paid remuneration 4.20 Mio. EUR - thereof fixed fee 3.89 Mio. EUR - thereof variable fee 0.31 Mio. EUR Number of employees Amount of paid carried Interest FTE n/a Total of paid fee to Risktaker 1.16 Mio. EUR - thereof Executive Managers 1.07 Mio. EUR - thereof other Risktaker 0.09 Mio. EUR The remuneration policy is compliant with the requirements of the Management Company. Details with regard to the remuneration system of the Management Company are availabe on the website of Universal-Investment-Gesellschaft mbh ( and in the Prospectus. There were no changes in the remuneration system during the reporting period compared to the prior period. 6

7 UI Report of the Portfolio Manager as at September 30, 2017 UI - Petrus Advisers Special Situations Fund UCITS (October 1, 2016 until September 30, 2017) INVESTMENT OBJECTIVE AND POLICY The objective of the Fund is to generate high absolute returns from long/short investing in Core Europe applying an active/entrepreneurial approach. Focus is on undervalued equities with low correlation to overall market, mainly in the mid-cap segment. We prefer companies with stable cash flow and/or restructuring potential. The Fund pursues active engagement with management teams and boards and benefits from strong focus on liquidity, risk and exposure management. Active hedging techniques will be employed to cushion market volatility and protect the portfolio from adverse external shocks. COMMENTARY Macro The 12 months to September 2017 were marked by an improving growth outlook in developed markets, reduced political concerns in Europe, and tightening monetary policies. Major global indices responded well to these developments and posted encouraging performance: S&P500 (+16.2%), Stoxx600 (+13.2%), FTSE100 (+6.9%) and Nikkei (+23.7%). We summarize the key events for the period below: Trump Victory: The election of Donald Trump caught many by surprise, yet his plans to cut taxes, boost infrastructure spending, and reduce regulation were seen as supportive of domestic growth and spurred inflation expectations, which in turn boosted earnings momentum. Brexit: The UK Supreme Court ruled the final Brexit decision must get UK Parliamentary approval which led PM Theresa May to call a snap election. While she hoped to win a healthy majority of pro-brexit Conservatives and strengthen her hand in negotiations with the EU, the outcome backfired and May now faces a weakened negotiating position and increasing pressure from her own party. EU/UK Brexit talks continued with no significant progress in sight. Dutch, French, and German Elections: The rise of far-right parties led to increased concerns about the future of the EU s political landscape, yet the most feared scenarios did not materialize. The Dutch and French polls elected moderate candidates, while German voters returned Chancellor Angela Merkel for a fourth term, albeit without a majority. The resulting relief rally brought the EUR/USD to (+5.2% during the period). Federal Reserve (Fed) Policy: In December 2016, the first 25bps interest rate hike was announced and a further 2 hikes (in March and June) were declared on the back of a sustained increase in economic activity, improvement in the labour market, and favourable business and investment sentiment in the US. European Central Bank (ECB) Policy: In December 2016, the ECB extended its QE program, but also trimmed it for the first time (starting April 2017). The bank kept monetary policy unchanged for the rest of the period on the back of persistently sluggish inflation levels. However, robust and sustained above-trend growth in the Eurozone combined with less dovish language from the ECB suggested less accommodative policies might be on the horizon. Oil: was supported by Organization of the Petroleum Exporting Countries (OPEC) output cuts agreed in November However, the rapid growth of US Shale production led to some volatility. All in all, Brent added 17.3% to finish the period at $

8 UI Report of the Portfolio Manager as at September 30, 2017 Portfolio Development During the period, the UI - Petrus Advisers Special Situations Fund UCITS returned 15.25% for the share class I and 16.19% for the share class R with a volatility of 7.57% for the share class I and 8.37% for the share class R. Our outlook remains cautiously optimistic as geopolitical events and stretched valuations in US and European equity markets overshadow strong economic fundamentals. In this environment, we have focused on crystalizing value in our activist positions as well as transitioning out of yielding asset classes and moving more into financial services. Positive Movers The main contributors to our performance were our long activist positions in Real Estate with exposure to Central and Eastern Europe (CEE) and Austria/Germany which outperformed on the back of strong operational results, positive industry sentiment resulting from accommodative monetary policy and optimism around industry consolidation. Our long conviction position in auto supply also rallied on the back of consensus-beating earnings and revised guidance. Negative Movers The main negative contributor was our long conviction pick in energy which underperformed during the period due to lower than expected production guidance. Our real estate hedges also performed below our expectations, leading to mark-to-market losses. Our short conviction pick in the pharma sector also contributed negatively due to takeover speculation. Outlook / Strategy We continue to manage our net exposure and implied beta cautiously against a backdrop of robust performance in European markets, high valuations, and low volatility. We remain focused on value generation through our work in activist cases and are keeping an eye out for opportunities to protect the portfolio with strategic hedges. Fund performance as of September 30, 2017 Net of fees UCITS 1 (in %) EuroStoxx (in %) DAX (in %) 1M M YTD Since inception Compound annual growth rate (CAGR) since inception As of 29/09/

9 UI Report of the Portfolio Manager as at September 30, Total return index (includes dividends). 3 Performance as of 29/09/2017. Source: Bloomberg, Universal. PORTFOLIO 4 Sectors Portfolio (in %) Countries Portfolio (in %) Real Estate 31.0 Austria 41.8 Financials 20.5 Germany 16.7 Energy 14.7 Great Britain 9.1 Consumer discretionary 10.4 France 8.5 Materials 5.8 Netherlands 6.5 Others 17.6 Others As of 29/09/

10 UI Report of the Portfolio Manager as at September 30, 2017 UI - EVP European Value Equities ex UK (December 14, 2016 until September 30, 2017) Name change from European Value Partners to Mensarius In the spring of 2017, European Value Partners (EVP) launched a project with an external communication firm to assist and support our sales efforts. It quickly became clear that in creating an effective communication policy we would face several challenges with our name European Value Partners, and in particular the abbreviation EVP by which most people know us. EVP is a non-distinct name and risks association with other companies or organizations with which we do not want to be linked. In Switzerland, which we consider our home market, the abbreviation EVP is synonymous with the Evangelical People s Party. This situation was not optimal for us as an organization and firm, and we therefore decided to change our name to Mensarius with effect from August 22, Nothing else has changed. The way we invest and operate our company remains the same. Distribution strategy Mensarius seeded the fund on December 14, During the last nine months, we have searched for and found a distributor for the UK market. The distribution agreement was signed in June We spent the following months, together with our distribution partner, preparing for a full-blown marketing effort starting in Q The distribution effort will be supported by sales people on the ground, operating all over England, Wales, Scotland and Northern Ireland. Short description of Investment Strategy The European ex UK equity fund s investment objective is to preserve capital and invest in the most attractive relationship between risk and return that is available. The fund aims for delivering an annualised long-term attractive and absolute positive return well in excess of inflation and with a lower standard deviation relative to the reference index. Stock selection is the primary source of alpha generation. The fund has a long-term investment horizon and a low portfolio turnover on average between 20% and 30% per annum. The portfolio is highly selective with roughly 35 to 50 European listed companies and it is not constrained by country, sector, capitalisation size, benchmark or tracking error limits. Cash is used as a safe heaven and can be as high as 25%. 10

11 UI Report of the Portfolio Manager as at September 30, 2017 Performance of the fund during the fiscal year (December 14, 2016 until September 30, 2017) The European Markets measured by MSCI Europe ex UK TR Index returned % since inception of the fund (December 14, 2016) until the end of this year s first nine months. This was +1.80% in excess to our strategy, which returned 10.93% during the same period. Sector allocation and cash were performance detractors and resulted in the negative excess return of the fund. In total sector allocation and cash decreased performance with -3.52%, whereas stock picking and currency added +1.72% to performance. Sector allocation gave the two largest negative effects in Energy (-30bps) and in Utilities (-34bps) due to our underweight to this sector, whereas the largest positive effects were in Telecom (+23bps) and Materials (+13bps). Our stock picking gave the largest positive effects in Consumer Discretionary (+196bps) and Health Care (+158bps) whereas the two largest negative ones in IT (-154bps) and Industrials (-70bps). The best contributors to performance were Amplifon (+170bps), Hugo Boss (+116bps) and Krones AG (+116 bps), whereas worst contributors were Tenaris (-70bps), Ericsson (-56bps) and Amer Sports (-9bps). Outlook Although the year started with a high level of noise and uncertainty mainly coming from Brexit negotiations and elections in the larger European countries, where more mainstream parties faced challenges from populist and anti-establishment forces, the financial markets have seen the lowest volatility for years and have continued to appreciate. The European monetary policy has been accommodative for the European economy and supportive for stocks. In fact, the European recovery has been picking up slowly since the beginning of 2017 and continues going into fourth quarter of It seems that a healthy recovery has even spread to Italy which is now participating from the broader upswing. Italy s GDP is growing at 1.5% annually (source: Istat The National Institute for Statistics, Italy). The country has been a brake on the progress of the single-currency area, so this is positive news that could make it easier for the European Central Bank (ECB) to manoeuvre as the growing economy in Germany and other early reforming countries in the EU makes it increasingly difficult for the ECB to maintain its current policy. Sooner rather than later, it has to exit its bond-buying programme and start to raise interest rates. A situation that has already occurred in the US, which is furthest ahead in the economic cycle, and where the Federal Reserve (Fed) has announced that it will start to shrink its bond portfolio from October 2017 and onwards. What will be interesting to see is the result of the next Italian election, which has to be held by May However, little suggests a result that will promote reforms, rather on the contrary and this is a major danger! The political situation in the country is still the biggest drag on the economy. Italy needs structural reforms and a government that agrees on programmes with stable majorities able to better weather temporary swings. This is the main problem in Italy. At Mensarius, as always, we remain focussed on fundamentals rather than politics and think it is positive to see how our holdings have done earnings-wise until September In general both businesses and households across the Eurozone seem to be more positive on the fiscal year 2017 and their outlook. During September, the positive trend in the stock markets has reflected the rise of the Eurozone s Purchasing Managers Index (PMI) from 55.7 to 56.7, which was a surprise. The Eurozone economy was expected to slow down when looking at the PMI s for the months of July and August, which fell back from the level of 57.4 in June the highest level in years. The pickup of the European growth is a positive sign from an economy that has outperformed most expectations for this year. It seems that it will grow more rapidly than it has done in the last decade. In fact, the European Commission stated in the last week of September that its Economic Sentiment Indicator rose to its highest level since June The strengthening of confidence confirms that the Eurozone economy continues on its positive path and seems that it will benefit from the more robust and healthy recovery going forward. The ECB s economists expect the economy to grow 2.2% in 2017, which would be the highest growth rate since We also anticipate the year 2017 to end with improved profits for many of the investments in our fund as some have even raised their targets for the entire fiscal year after encouraging first quarters. 11

12 UI The combined statement of net assets, the combined statement of operations and the combined statement of changes in net assets consist of the sum of the statements of each sub-fund. Combined Statement of Net Assets as at September 30, 2017 Market Value in EUR % of Fund Assets *) Assets Portfolio at market value 14,921, Derivatives -61, Cash at banks 7,323, Dividend receivables Interest receivables 12, Total Assets 22,196, Liabilities Interest payable Management fee payable -85, Depositary Bank fee payable -9, Custody service expenses Portfolio Manager fee payable -95, Audit fee payable -12, Taxe d'abonnement payable Incorporation cost, net -4, Other payables -10, Total Liabilities -220, Total Net Assets as at September 30, ,975, *) There might be small differences due to rounding. The accompanying notes form an integral part of the financial statements. 12

13 UI Combined Statement of Operations (including income equalisation) for the period from 01/10/2016 to 30/09/2017 I. Income - Dividends EUR 330, Interest on securities EUR 62, Interest on liquidity investments *) EUR -12, Other income EUR 14, Total income EUR 395, II. Expenses - Interest on bank overdraft EUR -3, Management Company fee EUR -230, Depositary Bank fee EUR -63, Custody service expenses EUR -6, Performance fee EUR -158, Auditing and publication expenses EUR -23, Subscription tax ("Taxe d`abonnement") EUR -1, Registrar and Transfer Agent fee EUR -17, Legal fee EUR Foreign withholding taxes EUR -48, Equalisation of ordinary expenses EUR -194, Other expenses EUR -42, Total expenses EUR -790, III. Ordinary net result EUR -394, Total *) The position 'interest on liquidity investments' includes negative interest of 12, EUR. The accompanying notes form an integral part of the financial statements. 13

14 UI Combined Statement of Operations (including income equalisation) for the period from 01/10/2016 to 30/09/2017 IV. Realised profit/loss on 1. Realised profit on EUR 4,768, Securities EUR 3,282, Option transactions EUR 121, Futures transactions EUR 134, Swap transactions EUR 1,219, Foreign exchange transactions EUR 9, Realised loss on EUR -2,362, Securities EUR -627, Option transactions EUR -25, Futures transactions EUR -421, Swap transactions EUR -1,268, Foreign exchange transactions EUR -18, Total Total realised profit/loss EUR 2,405, V. Net change in unrealised profit/loss - Net change in unrealised profit EUR 859, Net change in unrealised loss EUR -330, Total net change in unrealised profit/loss EUR 529, VI. Result of operations for the period EUR 2,540, The accompanying notes form an integral part of the financial statements. 14

15 UI Combined Statement of Changes in Net Assets 2016/2017 I. Net assets at the beginning of the period EUR 9,895, Distribution for the previous year EUR Interim distributions EUR Net cash flow EUR 10,068, a) Proceeds from shares issued EUR 10,375, b) Proceeds from shares redeemed EUR -307, Income/expense equalisation EUR -528, Result of operations for the period EUR 2,540, II. Net assets at the end of the period EUR 21,975, The accompanying notes form an integral part of the financial statements. 15

16 UI - Petrus Advisers Special Situations Fund UCITS Fund structure as at 30/09/2017 Investment Focus Market Value in EUR % of Fund assets *) I. Assets 20,434, Equities 12,773, Bonds 735, Derivatives -61, Bank balances 6,974, Other Assets 12, II. Liabilities -214, III. Fund Assets 20,220, *) There might be small differences due to rounding. The accompanying notes form an integral part of the financial statements. 16

17 UI - Petrus Advisers Special Situations Fund UCITS Statement of Net Assets as at 30/09/2017 Description ISIN Shares / Holdings Currency Price Market Value % % in /09/2017 in EUR of the Fundassets *) Portfolio holdings EUR 13,509, Exchange-traded securities EUR 12,773, Equities EUR 12,773, Moneta Money Bank A.S. Inhaber-Aktien KC 1 CZ Shares 176,000 CZK , BNP Paribas S.A. Actions Port. EO 2 FR Shares 12,000 EUR , CA Immobilien Anlagen AG Inhaber-Aktien o.n. AT Shares 79,000 EUR ,919, comdirect bank AG Inhaber-Aktien o.n. DE Shares 70,000 EUR , EDP Renováveis S.A. Acciones Port. EO 5 ES Shares 24,530 EUR , Erste Bk d. oest.sparkassen AG Inhaber-Aktien o.n. AT Shares 5,500 EUR , Flughafen Wien AG Inhaber-Aktien o.n. AT00000VIE62 Shares 11,400 EUR , Immofinanz AG Inhaber-Aktien o.n. AT Shares 520,000 EUR ,135, Intesa Sanpaolo S.p.A. Azioni nom. EO 0,52 IT Shares 176,000 EUR , LVMH Moët Henn. L. Vuitton SE Actions Port. (C.R.) EO 0,3 FR Shares 4,300 EUR ,003, Raiffeisen Bank Intl AG Inhaber-Aktien o.n. AT Shares 15,000 EUR , SBM Offshore N.V. Aandelen op naam EO -,25 NL Shares 48,000 EUR , Société Générale S.A. Actions Port. EO 1,25 FR Shares 11,400 EUR , Unicaja Banco S.A. Acciones Nom. EO 1 ES Shares 434,000 EUR , Wienerberger AG Inhaber-Aktien o.n. AT Shares 39,000 EUR , Ophir Energy PLC Registered Shares o.n. GB00B24CT194 Shares 1,240,000 GBP ,020, Wizz Air Holdings PLC Registered Shares LS -,0001 JE00BN574F90 Shares 25,500 GBP , NOVATEK Reg.Shs (GDRs Reg.S)/10 RL-,1 US Shares 3,400 USD , Securities admitted to or included in organised markets EUR 735, Interest-bearing securities EUR 735, ,0000 % Tisha Investments Overseas Ltd EO-Bonds 2014(19) AT0000A188P3 % 400 EUR , ,3750 % Petroleum Geo-Services ASA DL-Notes 2016(16/20) Reg.S USR69628AD84 % 400 USD , Total securities EUR 13,509, Derivatives EUR -61, The accompanying notes form an integral part of the financial statements. 17

18 UI - Petrus Advisers Special Situations Fund UCITS Statement of Net Assets as at 30/09/2017 Bank balances, non-securitised money market instruments and money market funds EUR 6,974, Bank balances EUR 6,974, Balances with State Street Bank Luxembourg S.C.A. Balances in the Fund currency 3,013, EUR 3,013, Balances in other EU/EEA currencies 17,823, CZK 686, , GBP 243, Balances with State Street Bank Luxembourg S.C.A. Balances in the Fund currency 31, EUR 31, Balances with Commerzbank AG Frankfurt Balances in the Fund currency 3,000, EUR 3,000, Description ISIN Shares / Holdings Currency Price Market Value % % in /09/2017 in EUR of the Fundassets *) Other Assets EUR 12, Interest receivables 12, EUR 12, Liabilities EUR -214, Interest payable EUR Management fee payable -85, EUR -85, Depositary Bank fee payable -4, EUR -4, Custody service expenses EUR Portfolio Manager fee payable -95, EUR -95, Audit fee payable -12, EUR -12, Taxe d'abonnement EUR Incorporation cost, net -4, EUR -4, Other payables -10, EUR -10, Total net assets EUR 20,220, *) There might be small differences due to rounding. The accompanying notes form an integral part of the financial statements. 18

19 UI - Petrus Advisers Special Situations Fund UCITS Statement of Net Assets as at 30/09/2017 UI Petrus Advisers Special Situations Fund UCITS - I Net Asset Value per share EUR Subscription price EUR Redemption price EUR Number of shares in circulation Shares 168, UI Petrus Advisers Special Situations Fund UCITS - R Net Asset Value per share EUR Subscription price EUR Redemption price EUR Number of shares in circulation Shares 12, The accompanying notes form an integral part of the financial statements. 19

20 UI - Petrus Advisers Special Situations Fund UCITS Derivatives as at 30/09/2017 Swaps as at 30/09/2017 Swaps Maturity Nominal Ccy Commitment Curr. Price Counterparty in EUR in EUR Equity leg / EUR Morgan Stanley Petrus Short EUR(Non-interest bearing (normal)) 19/09/2018-4,053, EUR 4,053, , Morgan Stanley & Co. International plc London Floating leg equity swaps / EUR (Floater) 4,053, EUR Equity leg / CHF Morgan Stanley Petrus Short CHF(Non-interest bearing (normal)) 28/12/ CHF Morgan Stanley & Co. International plc London Floating leg equity swaps / CHF (Floater) 1.00 CHF Equity leg / PLN Morgan Stanley Petrus Short PLN(Non-interest bearing (normal)) 07/02/ PLN Morgan Stanley & Co. International plc London Floating leg equity swaps / PLN (Floater) 1.00 PLN Equity leg / SEK Morgan Stanley Petrus Short SEK(Non-interest bearing (normal)) 07/02/ SEK Morgan Stanley & Co. International plc London Floating leg equity swaps / SEK (Floater) 1.00 SEK Equity leg / GBP Morgan Stanley Petrus Short GBP(Non-interest bearing (normal)) 24/02/ , GBP 388, , Morgan Stanley & Co. International plc London Floating leg equity swaps / GBP (Floater) 342, GBP Equity leg / EUR Morgan Stanley Petrus Long EUR(Non-interest bearing (normal)) 11/03/ EUR Morgan Stanley & Co. International plc London Floating leg equity swaps / EUR (Floater) EUR Equity leg / GBP Morgan Stanley Petrus Long GBP(Non-interest bearing (normal)) 14/11/ GBP Morgan Stanley & Co. International plc London Floating leg equity swaps / GBP (Floater) GBP Equity leg / EUR Morgan Stanley Petrus Long EUR(Non-interest bearing (normal)) 29/12/2018 6,382, EUR 6,382, , Morgan Stanley & Co. International plc London Floating leg equity swaps / EUR (Floater) -6,382, EUR Equity leg / CZK Morgan Stanley Petrus Long CZK(Non-interest bearing (normal)) 10/04/2019 1,548, CZK 59, , Morgan Stanley & Co. International plc London Floating leg equity swaps / CZK (Floater) -1,548, CZK Equity leg / CHF Morgan Stanley Petrus Short CHF(Non-interest bearing (normal)) 15/04/ CHF Morgan Stanley & Co. International plc London Floating leg equity swaps / CHF (Floater) 1.00 CHF Equity leg / PLN Morgan Stanley Petrus Short PLN(Non-interest bearing (normal)) 07/08/ , PLN 152, , Morgan Stanley & Co. International plc London Floating leg equity swaps / PLN (Floater) 655, PLN Total Swaps -11, The accompanying notes form an integral part of the financial statements. 20

21 UI - Petrus Advisers Special Situations Fund UCITS Derivatives as at 30/09/2017 Options as at 30/09/2017 Exp. Date No. Contracts Ccy Acqu. Price Curr. Price Curr. Val. Commitment unrealised Counterparty in Ccy in Ccy in EUR in EUR profit / loss in EUR IMMOFINANZ AG PUT BP 2,00 EUREX 15/12/2017-5, EUR , , , State Street Bank Luxembourg S.C.A. SBM OFFSHORE N.V. PUT BP 13,00 EUREX 15/12/ EUR , , , State Street Bank Luxembourg S.C.A. Total Options -19, Futures as at 30/09/2017 Exp. Date No. Contracts Ccy Acqu. Price Curr. Price Commitment unrealised Counterparty in Ccy in Ccy in EUR profit / loss in EUR FUTURE ATX AUSTRIAN EUREX 15/12/ EUR 3, , , , State Street Bank Luxembourg S.C.A. FUTURE DAX (PERFORMANCE-INDEX) EUREX 15/12/ EUR 12, , , , State Street Bank Luxembourg S.C.A. FUTURE ESTX BANK PR.EUR EUREX 15/12/ EUR , , State Street Bank Luxembourg S.C.A. FUTURE EURO STOXX 50 PR.EUR EUREX 15/12/ EUR 3, , , , State Street Bank Luxembourg S.C.A. FUTURE IBEX 35 INDEX MEFF 20/10/ EUR 10, , , , State Street Bank Luxembourg S.C.A. FUTURE STXE 600 AUT.+PARTS PR.EUR EUREX 15/12/ EUR , , State Street Bank Luxembourg S.C.A. FUTURE STXE 600 CONSTR.+M.PR.EUR EUREX 15/12/ EUR , , State Street Bank Luxembourg S.C.A. Total Futures -31, Total Derivatives -61, The accompanying notes form an integral part of the financial statements. 21

22 UI - Petrus Advisers Special Situations Fund UCITS Statement of Operations (including income equalisation) for the period from 01/10/2016 to 30/09/2017 I. Income - Dividends EUR 302, Interest on securities EUR 62, Interest on liquidity investments *) EUR -12, Other income EUR 14, Total income EUR 367, II. Expenses - Interest on bank overdraft EUR -2, Management Company fee EUR -230, Depositary Bank fee EUR -51, Custody service expenses EUR -4, Performance fee EUR -158, Auditing and publication expenses EUR -22, Subscription tax ("Taxe d`abonnement") EUR -1, Registrar and Transfer Agent fee EUR -12, Legal fee EUR Foreign withholding taxes EUR -42, Equalisation of ordinary expenses EUR -185, Other expenses EUR -39, Total expenses EUR -754, III. Ordinary net result EUR -386, Total *) The position 'interest on liquidity investments' includes negative interest of 11, EUR. The accompanying notes form an integral part of the financial statements. 22

23 UI - Petrus Advisers Special Situations Fund UCITS Statement of Operations (including income equalisation) for the period from 01/10/2016 to 30/09/2017 IV. Realised profit/loss on 1. Realised profit on EUR 4,739, Securities EUR 3,254, Option transactions EUR 121, Futures transactions EUR 134, Swap transactions EUR 1,219, Foreign exchange transactions EUR 8, Realised loss on EUR -2,358, Securities EUR -625, Option transactions EUR -25, Futures transactions EUR -421, Swap transactions EUR -1,268, Foreign exchange transactions EUR -16, Total realised profit/loss EUR 2,381, V. Net change in unrealised profit/loss - Net change in unrealised profit EUR 730, Net change in unrealised loss EUR -298, Total net change in unrealised profit/loss EUR 432, VI. Result of operations for the period EUR 2,426, Total The accompanying notes form an integral part of the financial statements. 23

24 UI - Petrus Advisers Special Situations Fund UCITS Statement of Changes in Net Assets 2016/2017 I. Net assets at the beginning of the period EUR 9,895, Distribution for the previous year EUR Interim distributions EUR Net cash flow EUR 8,425, a) Proceeds from shares issued EUR 8,432, b) Proceeds from shares redeemed EUR -7, Income/expense equalisation EUR -526, Result of operations for the period EUR 2,426, II. Net assets at the end of the period EUR 20,220, The accompanying notes form an integral part of the financial statements. 24

25 UI - Petrus Advisers Special Situations Fund UCITS UI Petrus Advisers Special Situations Fund UCITS - I Statistical Information Financial year Number of shares outstanding at the Total net assets at the Net asset value per share at the end of the financial year end of the financial year end of the financial year 2015/2016 *) Shares 100, EUR 9,705, EUR /2017 Shares 168, EUR 18,851, EUR *) Inception: 06/08/2015 Changes in the number of shares outstanding Shares Number of shares outstanding at the beginning of the period 100, Number of shares issued 68, Number of shares redeemed Number of shares outstanding at the end of the period 168, The accompanying notes form an integral part of the financial statements. 25

26 UI - Petrus Advisers Special Situations Fund UCITS UI Petrus Advisers Special Situations Fund UCITS - R Statistical Information Financial year Number of shares outstanding at the Total net assets at the Net asset value per share at the end of the financial year end of the financial year end of the financial year 2016 *) Shares 2, EUR 189, EUR /2017 Shares 12, EUR 1,369, EUR *) Inception: 06/06/2016 Changes in the number of shares outstanding Shares Number of shares outstanding at the beginning of the period 2, Number of shares issued 10, Number of shares redeemed Number of shares outstanding at the end of the period 12, The accompanying notes form an integral part of the financial statements. 26

27 UI - Petrus Advisers Special Situations Fund UCITS Additional annex data under regulation (EU) 2015/2365 relating to securities financing transactions (unaudited) Data relating to Total Return Swaps Market value of Total Return Swaps kept in the portfolio as per record date value EUR -11, in % of the NAV 0.05 Biggest counterparties of Total Return Swaps Position Name Gross volume outstanding transactions in EUR Country of residence 1 Morgan Stanley & Co. International plc (GD) London 10,449, Great Britain Execution types and clearing of Total Return Swaps Total Return Swaps are negotiated on a bilateral basis with the counterparty. Total Return Swaps split according maturity Maturity Gross volume in EUR < 1 day 0.00 >= 1 day up to < 1 week 0.00 >= 1 week up to < 1 month 0.00 >= 1 month up to < 3 months 0.87 >= 3 months up to < 1 year 4,425, >= 1 year 6,023, open-ended 0.00 Collaterals in connection with Total Return Swaps The collateral transfer between the fund and the counterparties of the total return swaps is based on a title transfer collateral agreement with the respective counterparty. The collateralization will be cleared not only for total return swaps but for all OTC derivatives of the fund/segment owed to counterparty. The required collateralization is being monitered on basis of the market value of open transactions The total return swaps kept in the portfolio as per record date have been closed with counterparty Morgan Stanley. The minimum transfer amount agreed with counterparty Morgan Stanley is EUR plus collaterals rounded up to EUR ,00 Following financial instruments may be used as collateral: - EUR-cash at a charge rate of 100% Information regarding reuse of collaterals Collaterals received by the fund will not be reused. The accompanying notes form an integral part of the financial statements. 27

28 UI - Petrus Advisers Special Situations Fund UCITS Additional annex data under regulation (EU) 2015/2365 relating to securities financing transactions (unaudited) Data relating to Total Return Swaps Total Return Swaps Income and expenses Fund income absolut EUR -49, in % of gross income 100 Fund expenses EUR 0.00 Income of the management company absolut EUR *) in % of gross income - Expenses of the management company EUR - Income of a third party absolut EUR **) in % of gross income - Expenses of a third party EUR - Fund income of reinvestment of underlyings of Total Return Swaps (absolut amount) EUR 0.00 *) The income of the management company is included in the management company fee. **) The income of the portfolio manager is includet in the portfolio manager fee. Aditional annex data under ESMA-Leitlinien ESMA/2014/937 (unaudited) *) Income and expenses per counterparty: Morgan Stanley & Co. International plc (GD) London (V) EUR -49, The accompanying notes form an integral part of the financial statements. 28

29 UI - EVP European Value Equities ex UK Fund structure as at 30/09/2017 Investment Focus Market Value in EUR % of fund assets *) I. Assets 1,761, Equities 1,412, Bank balances 348, II. Liabilities -5, III. Fund Assets 1,755, *) There might be differences due to rounding. The accompanying notes form an integral part of the financial statements. 29

30 UI - EVP European Value Equities ex UK Statement of Net Assets as at 30/09/2017 Description ISIN Shares / Holdings Currency Price Market Value % % in /09/2017 in EUR of the Fundassets *) Portfolio holdings EUR 1,412, Exchange-traded securities EUR 1,322, Equities EUR 1,322, Cie Financière Richemont AG Namens-Aktien SF 1 CH Shares 866 CHF , Novartis AG Namens-Aktien SF 0,50 CH Shares 598 CHF , Swatch Group AG, The Inhaber-Aktien SF 2,25 CH Shares 203 CHF , UBS Group AG Namens-Aktien SF -,10 CH Shares 3,257 CHF , A.P.Møller-Mærsk A/S Navne-Aktier B DK 1000 DK Shares 34 DKK 11, , NKT A/S Navne-Aktier DK 20 DK Shares 645 DKK , Novo-Nordisk AS Navne-Aktier B DK -,20 DK Shares 1,712 DKK , Amer Sports Corp. Registered Shares Cl.A o.n. FI Shares 2,583 EUR , Anima Holding S.p.A. Azioni nom. o.n. IT Shares 4,888 EUR , HUGO BOSS AG Namens-Aktien o.n. DE000A1PHFF7 Shares 1,016 EUR , KRONES AG Inhaber-Aktien o.n. DE Shares 586 EUR , LVMH Moët Henn. L. Vuitton SE Actions Port. (C.R.) EO 0,3 FR Shares 279 EUR , Publicis Groupe S.A. Actions Port. EO 0,40 FR Shares 300 EUR , Royal Dutch Shell Reg. Shares Class A EO -,07 GB00B03MLX29 Shares 2,570 EUR , Salvatore Ferragamo SpA Azioni nom. EO -,10 IT Shares 2,605 EUR , SAP SE Inhaber-Aktien o.n. DE Shares 611 EUR , Schoeller-Bleckm. Oilf. Equ.AG Inhaber-Aktien EO 1 AT Shares 769 EUR , Tenaris S.A. Actions Nom. DL 1 LU Shares 4,286 EUR , Unilever N.V. Cert.v.Aandelen EO-,16 NL Shares 1,089 EUR , Viscofan S.A. Acciones Port. EO 0,70 ES Shares 977 EUR , DNB ASA Navne-Aksjer A NK 10 NO Shares 2,256 NOK , Getinge AB Namn-Aktier B (fria) SK 2 SE Shares 1,485 SEK , SKF AB Namn-Aktier B SK 0,625 SE Shares 2,503 SEK , Telefonaktiebolaget L.M.Erics. Namn-Aktier B (fria) o.n. SE Shares 12,385 SEK , Frank's International N.V. Aandelen op naam EO -,01 NL Shares 6,598 USD , The accompanying notes form an integral part of the financial statements. 30

31 UI - EVP European Value Equities ex UK Statement of Net Assets as at 30/09/2017 Description ISIN Shares / Holdings Currency Price Market Value % % in /09/2017 in EUR of the Fundassets *) Securities admitted to or included in organised markets EUR 90, Equities EUR 90, Amplifon S.p.A. Azioni nom. EO -,02 IT Shares 3,317 EUR , Origin Enterprises PLC Registered Shares EO -,01 IE00B1WV4493 Shares 7,115 EUR , Total securities EUR 1,412, Bank balances, non-securitised money market instruments and money market funds EUR 348, Bank balances EUR 348, Balances with State Street Bank Luxembourg S.C.A. Balances in the Fund currency 248, EUR 248, Balances with Landesbank Baden-Württemberg Stuttgart deposits callable prior to maturity 100, EUR 100, Liabilities EUR -5, Interest payable EUR Depositary Bank fee payable -5, EUR -5, Taxe d'abonnement EUR Other payables EUR Total net assets EUR 1,755, UI - EVP European Value Equities ex UK I EUR Net Asset Value per share EUR Subscription price EUR Redemption price EUR Number of shares in circulation Shares 16, *) There might be differences due to rounding. The accompanying notes form an integral part of the financial statements. 31

32 UI - EVP European Value Equities ex UK Statement of Operations (including income equalisation) for the period from 14/12/2016 to 30/09/2017 I. Income - Dividends EUR 28, Interest on liquidity investments EUR Total income EUR 28, II. Expenses - Interest on bank overdraft EUR Depositary Bank fee EUR -12, Custody service expenses EUR -2, Auditing and publication expenses EUR Subscription tax ("Taxe d`abonnement") EUR Registrar and Transfer Agent fee EUR -4, Foreign withholding taxes EUR -5, Equalisation of ordinary expenses EUR -8, Other expenses EUR -2, Total Total expenses EUR -36, III. Ordinary net result EUR -7, IV. Realised profit/loss on 1. Realised profit on EUR 28, Securities EUR 27, Foreign exchange transactions EUR Realised loss on EUR -4, Securities EUR -2, Foreign exchange transactions EUR -2, Total realised profit/loss EUR 24, V. Net change in unrealised profit/loss - Net change in unrealised profit EUR 129, Net change in unrealised loss EUR -32, Total net change in unrealised profit/loss EUR 96, VI. Result of operations for the period EUR 114, *) The interest on liquidity investments are including negative interests of EUR. The accompanying notes form an integral part of the financial statements. 32

33 UI - EVP European Value Equities ex UK Statement of Changes in Net Assets 2016/2017 I. Net assets at the beginning of the period EUR Distribution for the previous year EUR Interim distributions EUR Net cash flow EUR 1,643, a) Proceeds from shares issued EUR 1,943, b) Proceeds from shares redeemed EUR -300, Income/expense equalisation EUR -2, Result of operations for the period EUR 114, II. Net assets at the end of the period EUR 1,755, The accompanying notes form an integral part of the financial statements. 33

34 UI - EVP European Value Equities ex UK UI - EVP European Value Equities ex UK I EUR Statistical Information Financial year Number of shares outstanding at the Total net assets at the Net asset value per share at the end of the financial year end of the financial year end of the financial year 2016/2017 *) Shares 16, EUR 1,755, EUR *) Inception: 14/12/2016 Changes in the number of shares outstanding Shares Number of shares outstanding at the beginning of the period Number of shares issued 18, Number of shares redeemed -2, Number of shares outstanding at the end of the period 16, The accompanying notes form an integral part of the financial statements. 34

35 UI Notes to the Financial Statements General UI (the Company ) is organised in Luxembourg as a société d investissement à capital variable ( SICAV ) and qualifies as a collective investment undertaking under Part I of the Luxembourg law of 17 December The Company qualifies as an undertaking for collective investment in transferable securities under article 1(2) of the Directive 2009/65/EC and is presently structured as an umbrella fund. The Company has been established for an indefinite term. Significant accounting policies The reference currency of the Company is the Euro (EUR). The net asset value per sub-fund, net asset value per share, net asset value per class, the redemption price of shares and the issue price of shares shall be determined on each valuation date, at least twice a month. The valuation dates for each sub-fund are indicated in the relevant Appendix of the prospectus. The net asset value of each sub-fund and the net asset value of the relevant class shall be expressed in the currency of each sub-fund as described in the relevant Appendix of the prospectus. Whilst the reporting currency of the Company is the Euro, the net asset value is made available in the currency of each sub-fund as described in the relevant Appendix of the prospectus. The net asset value shall be determined on each valuation date separately for each share of each sub-fund and for each class dividing the total net asset value of the relevant sub-fund and of the relevant class by the number of outstanding shares of such sub-fund and of the relevant class. The net asset value shall be determined by subtracting the total liabilities of the sub-fund or class from the total assets of such sub-fund or class in accordance with the principles laid down in the Company s articles of incorporation and in such further valuation regulations as may be adopted from time to time by the Board of Directors. Investments shall be valued as follows: (1) The value of any cash in hand or on deposit, discount notes, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued and not yet received shall be deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof shall be arrived at after making such provision as the Company may consider appropriate in such case to reflect the true value thereof. (2) (3) (4) (5) (6) (7) The value of all securities which are listed on an official stock exchange is determined on the basis of the last available prices. If there is more than one stock exchange on which the securities are listed, the Board of Directors may in its discretion select the stock exchange which shall be the principal stock exchange for such purposes. Securities traded on a regulated market are valued in the same manner as listed securities. Securities which are not listed on an official stock exchange or traded on a regulated market shall be valued by the Company in accordance with valuation principles decided by the Board of Directors, at a price no lower than the bid price and no higher than the ask price on the relevant valuation date. Derivatives and repurchase agreements which are not listed on an official stock exchange or traded on a regulated market shall be valued by the Company in accordance with valuation principles decided by the Directors on the basis of their marked-to-market price. Term deposits shall be valued at their present value. Traded options and futures contracts to which the Company is a party which are traded on a stock, financial futures or other exchange shall be valued by reference to the profit or loss which would arise on closing out the relevant contract at or immediately before the close of the relevant market. All securities or other assets for which the valuation in accordance with the above sub-paragraphs would not be possible or practicable, or would not be representative of their fair realisation value, will be valued at their fair realisation value, as determined in good faith and prudently pursuant to the procedures established by the Board of Directors. Amounts determined in accordance with such valuation principles shall be translated into the currency of the sub-fund s accounts at the respective exchange rates, using the relevant rates quoted by a bank or another first class financial institution. 35