AMUNDI PATRIMOINE. Annual Report June 2017 AMUNDI ASSET MANAGEMENT UCITS. Management Company: AMUNDI ASSET MANAGEMENT

Transcription

1 AMUNDI PATRIMOINE Annual Report June 2017 AMUNDI ASSET MANAGEMENT UCITS Management Company: AMUNDI ASSET MANAGEMENT Sub-delegation of accounting function in title: CACEIS FUND ADMINISTRATION FRANCE Custodian: CACEIS BANK Auditor: S.F.P.B. AUDIT & COMPTABILITE

2 Contents Pages Features of the UCI 3 Business Report 4 Life of the UCI over the financial year in review 16 Specific Information 17 Regulatory Information 18 Certification by the Statutory Auditors 22 Annual accounts 25 Assets 26 Liabilities 27 Off-balance sheet 28 Profit accounts 31 Notes to the annual accounts 32 Accounting rules and methods 33 Changes in net assets 37 Income table over the previous five financial years 51 Asset inventory 53 Appendix(ces) 71 Features of the UCI (cntd.) 72 Additional Information for Investors in the Federal Republic of Germany 76 Annual report as at 30/06/2017 2

3 Main features of the fund This document provides essential information to investors in this fund. It is not a promotional document. The information it contains is provided to you as a legal obligation, in order to help you understand what is involved in investing in this fund and what the associated risks are. You are recommended to read it so you can decide whether or not to invest with full knowledge of the facts. Amundi Patrimoine ISIN code: (C) FR UCITS governed by French law and managed by Amundi Asset Management, an Amundi company Investment Objectives and Policy AMF classification ("French Financial Markets Authority"): Diversified By subscribing to Amundi Patrimoine, you are taking advantage of varied expertise within a broad scene made up of the international bond, monetary, equity and currency markets. The management objective is to achieve an annual performance 5% above that of EONIA capitalised, an index representative of the monetary rate in the euro zone, after taking into account administrative costs. Given the management objective, the UCI's performance cannot be compared to that of a relevant benchmark indicator. To achieve this, the management team will use its macroeconomic analysis and monitoring of the value of asset classes to implement a flexible management style and conviction in order to optimise the risk/return pairing at all times. The allocation of assets is built up based on team forecasts for the various markets and the level of risk presented per asset class. The diversified and responsive management enables it to adapt itself to movement on the markets with a view to delivering sustainable performance. This allocation is implemented through a direct selection of active UCIs and/or securities using all styles of equity products, bonds, monetary products and currencies. The bonds are selected based on the judgement of the management and with respect to the internal credit risk monitoring policy of the management company. The management may use securities of all ratings in a non-exclusive and non-automated manner. Overall exposure of the fund to equity, interest rate and currency markets fluctuates for each of these markets, within a range of between 0 and 100% of the net assets. The sensitivity of the bond and monetary part will be between -2 and +10. The fund may act in all geographical areas and invest in representative supports of all sizes of capitalisation. The fund is hedged against currency risk. The fund may perform acquisition operations and temporary purchase and sale of securities. Future financial instruments may also be used to hedge and/or expose and/or arbitrate in order to generate overexposure, thus taking the fund's exposure above the net asset balance. The net profit and net gains made by the fund are systemically reinvested each year. You can request the reimbursement of your units each day. Redemption transactions are performed daily. Recommendation: this fund may not suit investors who plan to withdraw their contribution before 5 years have elapsed. Risk and return profile lowest risk highest risk Significant risks for the UCITS not taken into account in the indicator are: potentially lower return potentially higher return Credit risk: represents the risk of sudden deterioration in the quality of the signature of an issuer or of their defaulting. Liquidity risk: in the special case where exchange The risk level of this mutual fund reflects the management volumes on the financial markets are very low, any positions on the equity and interest-rate markets as part of the purchase or sale transaction on them may lead to predefined margin for manoeuvre. significant market variations. Past data used for the calculation of the digital risk indicator may Counterparty risk: this represents the risk of defaulting not be a reliable indicator of the future risk profile of the UCITS. of an entity acting on the market preventing its The risk category associated with this fund is not guaranteed and commitments to your portfolio from being honoured. may change over time. The use of complex products, such as derivative The lowest category does not mean "risk-free". products, may lead to an amplification of the movement Capital initially invested has no guarantees. of securities in your portfolio. The occurrence of one of these risks may lead to a drop in the net asset value of the portfolio. Amundi Patrimoine

4 Business Report July 2016 July was marked by the persistence of considerable uncertainty concerning the procedures and consequences of Brexit on the European Union. Nevertheless, economic figures published over the course of the month were mainly reassuring in Europe (with the exception of the United Kingdom), positive in the United States and improving slightly in the emerging world. Equity markets rose sharply during July and the EuroStoxx 50 index recovered much of the ground it lost in June. After having fallen heavily in June, bond yields were much more stable in July; the difference in returns between Germany and other big eurozone countries therefore decreased slightly during the month. In this context, we carried out some portfolio arbitrage operations and seized opportunities for non-euro area investments by increasing the weight of emerging and US equities, which continue to benefit from good economic fundamentals. On the bond side, we retained our "safe haven" assets such as US government bonds and strengthened the inflation theme through bonds indexed to US inflation, since the rise in oil prices should impact US inflation in the second half of the year. August 2016 August was quiet both for the economy and the markets. In the eurozone, economic indicators were reassuring against a backdrop of considerable uncertainty regarding Brexit procedures. In the United States, figures published during the month showed that the labour market remained robust, even though stocks had a restraining effect on growth in the first half of the year. In this context, European and emerging equity markets continued to rise while US indices remained stable. The recovery in bond yields, which began in July, continued in August with the easing of fears linked to Brexit and the publication of reassuring economic figures. In this context, we increased the weight of risk portfolio assets from 34% to 38% by increasing the weight of emerging and European equities, which continue to benefit from good economic fundamentals. On the bond side, we started to take profits on our positions in US, Italian and Spanish government bonds, which we believe offer less short-term performance potential. September 2016 In September, economic indicators in the eurozone were quite reassuring despite an uncertain political context. In the United States, economic figures at the beginning of the third quarter were generally lower than expected. With regard to emerging countries, the potential agreement between OPEC countries to cut oil production improved perspectives for exporting countries. Markets became more febrile from late August to mid-september, concerned about a possible reversal of long rates in the absence of major announcements from the ECB and the coming US Federal Reserve committee. By refusing to increase its rates, the FED helped to restore calm to the markets. In this context, we strengthened our equity exposure to take advantage of the rebond in volatility. We increased our weight in European equities, which are benefiting from good economic fundamentals, and Japanese equities, which should benefit from favourable tax measures. We also chose to diversify our assets in the area of infrastructure, which could benefit from the improved economic situation in emerging countries and the Junker Plan for the European Union. On the bond side, in view of the low interest rate environment, we are pursuing our strategy of seeking returns by strengthening our exposure to US high-yield bonds while retaining safe haven assets such as government bonds. October 2016 In October, European economic figures were somewhat better than expected and activity is progressing by the end of the year. In the United States, GDP rebounded in the third quarter after a disappointing start to the year. Reassuring Chinese figures provided some support to the financial markets. On the equity markets, there were strong geographical and sector-based disparities. The eurozone and Japan outperformed emerging markets, while the USA continued to suffer from the uncertainty of the presidential election. Annual report as at 30/06/2017 4

5 Rates markets incorporated the scenario of an increase in FED rates in December and expectations of a rise in inflation; interest rates therefore recovered over the month with a more marked movement for long maturities. In this context, we maintained our geographic and thematic diversification in equities. On the bond side, we continue to favour the search for returns through US and European private debt and emerging market government bonds that offer a return greater than those of developed countries. Bonds indexed to US inflation are also attractive because they benefit from rising inflation. They are therefore less affected by the rise in interest rates than US government bonds, even if the latter are still used to hedge the portfolio. November 2016 The main event in November was the unexpected presidential election result in the United States, which led to an increase in bond yields (the US 10Y rate went from 1.8% to 2.4%), the dollar and shares in developed countries. In equity markets, the United States and Japan outperformed while emerging markets declined. The fund's performance in November was impacted by the decline in emerging markets, the strength of the dollar, which we did not benefit from, and by higher interest rates, particularly in the United States. However, our diversification into Japanese and US equities contributed positively to the fund's performance. In light of market movements, we reduced the most interest-sensitive European equities, such as real estate, and sold the most defensive European equities. On the bond side, taking advantage of the tensions on the Italian market, we strengthened our positions in Italian government bonds. Moreover, in expectation of the FED raising its rates, we continue to favour bonds indexed to US inflation that follow the upward movement in prices in the United States. December 2016 All eyes turned to the United States in December, awaiting any signals sent by Donald Trump regarding its future economic policy. Economic figures carried on growing in the major developed countries, and slightly improving in emerging countries. The month was very favourable for the equity markets, particularly for the eurozone, which grew by 7.90% and returned to positive performance over Movements on the bond markets were more limited than in November. In this context, we reduced our exposure to emerging market equities and increased the weight of European and North American equities. European markets continue to benefit from improved economic fundamentals and attractive valuations. On the US markets, we favour stocks linked to the energy and financial sectors, which benefit from higher oil prices and rising interest rates. Our equity exposure is now 38%. Equities European equities in particular contributed positively to the fund. On the bond side, our search for returns focused on Italian government bonds, which we strengthened prior to the referendum, with well-rated, high-yield corporate bonds benefiting from strong economic growth. Our bond exposure is 69% and our positions paid off on both government bonds and private debt. We remain vigilant as to the interest rate trend, which could lead us to change our positions. January 2017 After several weeks of euphoria, the financial markets showed their first signs of nervousness as Donald Trump's investiture approached. The US President promised a fiscal stimulus package that will drive economic growth, but for the moment most of his speeches are focusing on protectionist measures. We therefore remain attentive to the reactions of US trading partners who may at some point create a disturbance in the equity markets. In addition, the statements by a member of the European Central Bank's Executive Board on a possible exit from the asset purchase programme may partly explain the rise in interest rates in Europe and particularly in Germany, where the German 10-year rate is approaching 0.50% for the first time in a year. In this context, we decided to protect the portfolio in the event of a possible market downturn, because we may be witnessing profit-taking following the recent stock market rally. Also, we bought protection on a portion of our positions in European and US equities. Equity positions contributed positively to the fund's result thanks to the good performance of US and emerging markets. In view of the rise in interest rates in developed countries, we decided to arbitrate part of our positions in US government bonds in favour of US inflation-indexed bonds, which benefit from rising inflation. They are therefore less affected by the rise in interest rates than US government bonds. Our positions paid off in high-yield bonds, but government and corporate bonds were penalised by rising European interest rates. Annual report as at 30/06/2017 5

6 February 2017 The economic data at the beginning of the year seem to validate our scenario of accelerating global growth. This environment is expected to have a positive impact on corporate earnings and should continue to support equity markets. However, the equity markets have already made good progress in anticipation of a recovery plan in the United States. Pending a more precise economic timetable, we chose to take part of our profits on equities, moving our exposure from 40% to 35%. We are mainly invested in developed countries: Europe, the United States and Japan. The portfolio holds 60% of its assets in bonds; half in US, eurozone and emerging market government bonds. The other half in US and European corporate bonds. Uncertainties associated with the ongoing election campaigns significantly boosted bond yields in several eurozone countries. We took this opportunity to increase the weight of Italian and Spanish government bonds. Finally, given the political uncertainty in Europe and while the US central bank could raise interest rates more quickly than expected, we increased our position on the dollar to 10%. Over the month, the fund achieved a positive performance and benefited from both its equity and bond positions. March 2017 During March, economic conditions remained favourable in the eurozone, the United States and emerging countries, but political uncertainty did not dissipate. Equity markets continued to rise in the eurozone and emerging markets while the US market paused and Japan declined. While activity indicators are stabilising and the US stimulus programme is not expected to start for several months, we continued to take profits on risk assets, whose weight went from 54% to 51%. On equities, we reduced our exposure to US equities, particularly the infrastructure theme, which has performed well since the election of Donald Trump. On the bond side, we sold a portion of euro-denominated corporate bonds that reached high valuation levels. We also reduced our exposure to Italian and Spanish bonds. Overall, the fund's interest rate sensitivity was reduced from 3.3 to 2.5. Finally, given the political risk in Europe and with a view to hedging, we maintained our 10% position on the dollar and increased our position on the yen to 5%. Over the month, the fund achieved a positive performance thanks to its equity positions. April 2017 In April, economic figures were good in the eurozone but deteriorated slightly in the United States. Current political events have remained significant, marked in Europe by the first round of the French presidential elections and the initiation of the Brexit negotiations process. In the United States, growth in the first quarter was disappointing. However, leading indicators remain on track. Trump celebrated his 100 days in power without any tangible progress. All equity markets were up over the month, with most of the movement occurring after the first round of the French presidential elections. In the run-up to the French elections, we adopted a more cautious bias by replacing part of the eurozone equity positions in the portfolio with call options. This strategy enabled us to benefit from the acceleration of the market after the first round with limited risk taking. At the end of the month, we reduced some exposure to eurozone equities in favour of the US market. Finally, given the political risk in Europe, we had positions on the dollar and the yen which we reduced at the end of April. Over the month, the fund achieved a positive performance thanks to its equity and bond positions. On the other hand, volatility and dollar and yen positions had a negative contribution. Eurozone activity data is reflected in upward revisions to growth outlooks for The political horizon is gradually becoming clearer. These trends reinforce our positive view of the markets. The equity component represents 36% of the portfolio and remains invested mainly in developed countries. We prefer eurozone equities, where earnings dynamics are on track, and the US market, where we expect activity to catch up in the second quarter after a weak start to the year. The portfolio holds 45% of its assets in bonds; half in government bonds: eurozone sovereign bonds, emerging market bonds and US Treasury bonds. The other half in mainly US corporate bonds. The portfolio is invested in euros with an exposure of 5% to the US dollar and 3.5% to the yen. May 2017 In May, economic data showed that the economic situation in the eurozone was continuing to improve and was normalising in the United States. After the election of Emmanuel Macron, the political risk shifted from Europe to the United States, with the possibility of an impeachment of the American president and the political crisis in Brazil. In the eurozone, the recovery is becoming more balanced thanks to a better investment contribution. Activity indicators increased again. Inflation remains disappointing, however, falling from 1.9% in April to 1.4% in May. In the United States, Q1 growth was revised upwards to 1.2% and the employment Annual report as at 30/06/2017 6

7 market remains very strong. In this environment, equity markets continued to grow and eurozone government bonds remained stable. The fund benefited from its equity and interest rate positions. On the other hand, dollar and yen exposures made a negative contribution to performance. Before the second round of the French elections, we increased the weight of European equities. We also increased our exposure to Italian and Spanish government bonds and eurozone financial sector bonds, benefiting from their attractive yield. On the other hand, we reduced the share of emerging market and financial sector equities that had performed well since the beginning of the year. Finally, with the short-term risk linked to the European election calendar having significantly decreased, we also reduced our exposure to hedging assets, particularly the dollar and the yen. The economic data tend to reinforce our vision of slightly accelerating global economic growth. Corporate results are clearly better than in 2016 and political uncertainties are tending to subside in the eurozone. We therefore maintain a positive view on risk assets and more particularly on the equity markets. The fund is 36% exposed to equity markets within which we favour the eurozone and Japan. June 2017 June was marked by further signs of economic recovery in the eurozone, while figures were more mixed in the United States and emerging countries. Politically, in Europe, the French President won a comfortable parliamentary majority while the British Prime Minister lost hers. In this environment, equity markets experienced mixed trends in June. The Euro Stoxx index fell 3%, penalised by the rise of the euro. Other markets increased slightly in local currencies. In June, the FED raised its key interest rates for the second time this year. Long-term interest rates were driven up, particularly after the optimistic speech on the inflation outlook by ECB President Mario Draghi. Over the month, eurozone equity and corporate bond positions as well as dollar and yen exposures made a negative contribution to performance. Faced with the firmer tone of central banks' rhetoric, we adopted a somewhat more cautious approach. We replaced part of our exposure to eurozone equities with more protective options strategies in the event of market turbulence. We drastically reduced the share of high-yield bonds (from 12% to 6%) and emerging market bonds (from 6% to 5%). On the other hand, the continued improvement in the economic situation and the easing of the political climate in the eurozone led us to strengthen our positions in Italian government bonds. We confirm our reflationary scenario, in other words an acceleration of growth and a moderate rise in inflation. At the end of June, we held 45% of risk assets in the portfolio, representing 34% of equities and 11% of bonds issued by private companies and emerging countries. The fund is mainly invested in euros with a low exposure to the US dollar and the yen. Annual report as at 30/06/2017 7

8 Over the period under review, the performance of each of the units in the AMUNDI PATRIMOINE portfolio was: - M-C units in EUR: 3.17%, - C units in EUR: 2.45%, - O-C units in EUR: 3.74%, - S-C units in EUR: 3.17%, - I-C units in EUR: 3.10%. Past performances are not necessarily indicative of future performances. Main movements in the portfolio over the financial year Securities Movements ("Accounting currency") Acquisitions Transfers AMUNDI 3 M I 2,550,480, ,138,477, AMUNDI CASH INSTITUTIONS SRI I 1,251,293, ,023,413, UNIT STAT OF 2.125% ,694, AMUNDI CASH CORPORATE IC 207,541, ,178, ITALY BUONI POLIENNALI DEL TESORO 0.35% ,306, ,180, AMUNDI ETF MSCI EMU UCITS ETF DR PARTS 177,967, ,083, AMUNDI ABSOLUTE FOREX ME CAP. 180,812, ,243, WI TREA 0.125% IND 252,197, ,524, AMUNDI -EQ.EMERG.WORLD IE CAP 141,386, ,702, ITALIE 2.5% ,084, ,772, Annual report as at 30/06/2017 8

9 Effective portfolio management techniques and derivative financial instruments a) Exposure obtained through effective portfolio management techniques and derivative financial instruments Exposure obtained through effective management techniques: 340,780, o Securities lending: 340,780, o Securities borrowing: o Reverse repos: o Repurchase agreements: Exposure of underlyings reached through derivative financial instruments: 2,639,143, o Forward exchange contracts: 1,127,662, o Futures: 1,308,284, o Options: 103,196, o Swaps: 100,000, b) Identity of the counterparty(ies) to the effective portfolio management techniques and derivative financial instruments Effective management techniques Financial derivative instruments (*) UBS LIMITED LONDON BNP ARBITRAGE PARIS MERRIL LYNCH INTERNATIONAL LIMITED JP MORGAN SECURITIES LONDRES CREDIT AGRICOLE CIB SOCIETE GENERALE NATIXIS UNICREDIT BANK AG (HYPOVEREINSBANK) MUENCHEN MORGAN STANLEY & CO INTL LONDRES GOLDMAN SACHS INTERNATIONAL LTD JP MORGAN HSBC BANK LONDON (*) Except listed derivatives. Annual report as at 30/06/2017 9

10 c) Financial guarantees received by the UCITS in order to reduce the counterparty risk Types of instruments Amount in portfolio currency Effective management techniques. Term deposits. Shares 120,132, Bonds 2,843, UCITS 227,372, Cash (**) 13,444, Total 363,793, Financial derivative instruments. Term deposits. Shares. Bonds. UCITS. Cash 23,654, Total 23,654, (**) The Cash account also includes liquidity resulting from repurchase transactions. d) Income and operating expenses related to effective management techniques Income and operating expenses Amount in portfolio currency. Income (***) 1,799, Other income Total income 1,799, Direct operating expenses 590, Indirect operating expenses. Other costs Total costs 590, (***) Income received on lending and reverse repurchase. Annual report as at 30/06/

11 Transparency of financing operations on securities and the reuse of financial instruments - SFTR regulations - in UCI accounting currency (EUR) Securities Lending Securities borrowing Repurchase Reverse repurchase agreements TRS a) Securities and commodities loaned Amount 340,780, % of net assets* 13.21% *% excluding cash and cash equivalent b) Assets committed for each type of operation for the financing of securities and TRS given as an absolute value Amount 340,780, % of net assets 9.16% Annual report as at 30/06/

12 Securities Lending Securities borrowing Repurchase Reverse repurchase agreements TRS c) 10 main issuers of guarantees received (excluding cash) for all types of financing operations AMUNDI ETF GLOBAL EQUITY MULTI SMART ALL 74,840, FRANCE RENAULT SA - REGIE NATIONALE DES USINES RENAULT FRANCE AMUNDI ETF JPX-NIKKEI 400 UCITS ETF FRANCE AMUNDI ETF EUR EQU MULTI SMART ALLOC SCIENTIFIC BETA UCITS ETF FRANCE SOCIETE GENERALE FRANCE PERNOD RICARD FRANCE CASAM ETF MSCI EUROPE TELECOM SERVICES FRANCE AMUNDI ETF MSCI WORLD FINANCIALS FCP (AMUNDI INVESTMENT SOLUTIONS) FRANCE CREDIT AGRICOLE SA FRANCE PORSCHE AUTOMOBIL HOLDING SE GERMANY 51,080, ,336, ,873, ,512, ,226, ,979, ,839, ,106, ,918, Annual report as at 30/06/

13 Securities Lending Securities borrowing Repurchase Reverse repurchase agreements TRS d) 10 main counterparties as an absolute value of assets and liabilities without compensation BNP ARBITRAGE PARIS 206,503, FRANCE CREDIT AGRICOLE CIB 97,957, FRANCE MORGAN STANLEY & CO INTL LONDRES 14,034, ROYAUME UNI SOCIETE GENERALE 5,746, FRANCE NATIXIS 5,287, FRANCE MERRIL LYNCH INTERNATIONAL LIMITED 4,647, UNITED KINGDOM JP MORGAN SECURITIES LONDON UNITED 4,606, KINGDOM GOLDMAN SACHS INTERNATIONAL LTD 1,112, UNITED KINGDOM UBS LIMITED LONDON 794, UNITED KINGDOM UNICREDIT BANK AG (HYPOVEREINSBANK) 89, MUENCHEN GERMANY e) Type and quality of guarantees (collateral) Type - Shares 120,132, Bonds 2,843, UCI 227,372, Transferable debt securities - Cash 13,444, Rating Guarantee currency - YEN 357, US DOLLAR 9,607, EURO 353,828, f) Settlement and compensation of agreements Triparties Central counterparty Bilateral X X X Annual report as at 30/06/

14 Securities Lending Securities borrowing Repurchase Reverse repurchase agreements TRS g) Expiry of the guarantee broken down by tranches Less than 1 day 1 day to 1 week 1 week to 1 month 1 to 3 months 3 months to 1 year Over 1 year 2,843, Open 347,505, h) Expiry of operations for the financing of securities and TRS broken down by tranches Less than 1 day 1 day to 1 week 1 week to 1 month 1 to 3 months 95,580, months to 1 year Over 1 year Open 245,199, i) Data on the reuse of guarantees Maximum amount (%) Amount used (%) Income for the UCI following the reinvestment of cash guarantees in euros j) Data on the conservation of guarantees received by the UCI Caceis Bank Securities 350,348, Cash 13,444, k) Data on the conservation of guarantees supplied by the UCI Securities Cash Annual report as at 30/06/

15 Securities Lending Securities borrowing Repurchase Reverse repurchase agreements TRS l) Data on the income and costs breakdown Earnings - UCI 1,797, Investment Manager - Third parties Costs - UCI 590, Investment Manager - Third parties e) Data Type and quality of guarantees (collateral) Amundi Asset Management takes care to only accept securities with a high credit quality and seeks to increase the value of its guarantees by applying discounts on the valuation of the securities received. This measure is regularly reviewed and updated. i) Data on the reuse of guarantees "The regulations applicable to UCITS prohibit the reuse of guarantees received in securities. Guarantees received in cash are reinvested in the following five areas: o short term monetary UCITS (as defined by the ESMA in its guidelines on listed funds and other issues relating to UCITS) o Deposit o High quality long-term State securities o High quality short-term State securities o Reverse repurchase agreements" The maximum amount for reuse is 0% for securities and 100% of the amount received for cash. The amount used is 0% for securities and 100% for cash received. k) Data on the conservation of guarantees supplied by the UCI Amundi Asset Management seeks to work with a low number of depositaries, selected to ensure the proper conservation of securities received and cash. l) Data on the income and costs breakdown As part of the securities lending transactions and repurchase agreements, Amundi Asset Management has entrusted Amundi Intermédiation, on behalf of the UCITS, with the following tasks: selecting counterparties, requesting the implementation of market agreements, checking the counterparty risk, performing the qualitative and quantitative monitoring of collateralisation (dispersion checks, ratings, liquid assets), pensions and securities lending. The income arising from these transactions is returned to the UCITS. These transactions incur costs which are borne by the UCITS. Invoicing by Amundi Intermédiation may not exceed 50% of the income generated by these transactions. Annual report as at 30/06/

16 Life of the UCI over the financial year in review As of 31 May 2017: Addition of a capital investment strategy. Amundi Private Equity Funds becomes financial management delegate of part of the assets. Possibility of investing up to 10% of its net assets (cumulative) in: - Unlisted shares issued by small and medium-sized companies as well as by intermediate-sized companies. - Unlisted bonds. - Convertible bonds and unlisted subscription warrants. Two new derivatives are authorised: swaps on baskets of shares and Total Return Swaps (TRS). Subordinated bonds and complex subordinated bonds (known as contingent convertibles) are eligible up to 10% of the net assets. In addition, and on the same date, the OR-D unit will be removed. Annual report as at 30/06/

17 Specific Information UCI at over 50% The Fund's legal documentation states that it can invest over 50% of its assets in securities other than UCI and indicates, under indirect costs, the maximum rate of subscription and redemption fees, as well as UCI management fees can that be held. In accordance with the regulations and during the financial year just finished, these UCI presented levels in practice consistent with those mentioned in the detailed memorandum, included in the section entitled "Management Fees". Voting rights The exercising of voting rights attached to the values listed in the UCI assets and the decision to contribute securities are set out in the UCI regulations. Group funds and instruments In order to become familiar with the information on financial instruments held in the portfolio that are issued by the Management Company or by the entities in its group, please see the sections in the annual accounts: Other information Financial instruments held, issued and/or managed by the group. Calculation of the overall risk Method chosen in calculating the ratio of the overall risk: - Absolute VaR method - Calculation occurs daily, while the results are presented on an annualised basis (time root). - The calculation interval proposed is 95% and 99%. - The historical depth is 1 year (258 scenarios) and lasts from 30/06/2016 to 30/06/2017. VAR 95: - Maximum: 8.87% - Minimum: 5.07% - Average: 6.59% VAR 99: - Maximum: 15.92% - Minimum: 8.60% - Average: 12.18% Leverage effect - Fund for which the risk calculation method is applied Indicative degree of leverage: 45.31%. Annual report as at 30/06/

18 Regulatory Information Broker and Counterparty Selection Procedure Our management company and its "Trading" subsidiary attach great importance to the selection of our transaction service providers, both in terms of brokers and counterparties. Its selection methods are as follows: - Brokers are selected by geographical zone, then by profession. Counterparties are selected by field. - Brokers and counterparties are given a quarterly internal rating. The guidelines given by our company participating in the rating process are directly concerned by the services provided by these providers. Our company's "Trading" subsidiary organises and determines this rating on the basis of marks given by each team manager concerned according to the following criteria: For teams of managers, financial analysts and strategists: - general business relationship, understanding of needs, relevance of contacts, - quality of market and opportunity advice, following of advice, - quality of research and publications, - scope of securities covered, visits made by companies and their management. For teams of traders: - quality of staff, knowledge of market and information about companies, confidentiality, - price proposal, - quality of execution, - quality of transaction processing, connectivity, technical expertise and reactivity. Our company's 'Compliance' and 'Middle Office' sections have a right of veto. Accreditation of a new transaction service provider (broker or counterparty) The 'Trading' subsidiary is responsible for creating accreditation files and obtaining approval from the 'Risks' and 'Compliance' sections. When the transaction service provider (broker or counterparty) is accredited, it is subject to rating the following quarter. Monitoring committees for transaction service providers (brokers and counterparties) These monitoring committees meet every quarter, under the auspices of the 'Trading' subsidiary. The committees' objectives are as follows: - approve the previous business and the new selection to implement for the following quarter; - decide on which service providers will belong to a group which is then given a certain number of transactions; - define prospects for business. With this in mind, the monitoring committees review statistics and ratings given to each service provider and make the resulting decisions. Report on brokerage fees A report relating to brokerage fees is kept at the disposal of investors. This report can be consulted on the following website: Annual report as at 30/06/

19 Respect of environmental, social and governance quality (ESG) criteria on the part of the UCI: Overall in its active management*, Amundi applies strict rules over the integration of extra-financial criteria (ESG) which form the basis of its responsibility. In this way it: - Excludes any direct investment in companies involved in the manufacture or trade of landmines and cluster bombs, in compliance with the Ottawa and Oslo conventions; - excludes companies which seriously and repeatedly contravene one or more of the Ten Principles of the United Nations Global Compact. Issuers in these two categories are rated G on the Amundi scale (scale of A to G, with A being the best rating and G the worst). Additional information on the methods of incorporating ESG criteria by Amundi are available on its website: Active management: excluding indexed UCI and ETF limited by their benchmark index. Remuneration policy 1. Remuneration policy and practices for the manager's personnel The remuneration policy implemented in Amundi Asset Management ("Amundi AM") complies with the provisions for remuneration detailed in Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers (hereinafter referred to as the "AIFM Directive") and in Directive 2014/91/EU of 23 July 2014 on UCITS (hereinafter referred to as the "UCITS V Directive"). These rules, relating to the manager's structures, practices and remuneration policy, have the aim of contributing towards bolstering the healthy, effective and controlled management of risks affecting the management company and the fund under management. This policy forms part of the remuneration policy of the Amundi Group, and is reviewed each year by its Remuneration Committee. During the session of 10 February 2016, it approved the policy applicable to the 2015 financial year and its compliance with the principles of the AIFM Directive. The policy applicable to the 2015 financial year was reviewed during the Remuneration Committee meeting of 10 February 2016 and renewed in The implementation of the Amundi remuneration policy was subject, during 2016, to an internal, central and independent evaluation, conducted by the Group's General Inspection. 1.1 Amount of remunerations paid by the manager to its personnel During the 2016 financial year, the total amount of remunerations (including fixed and variable remunerations, deferred and non-deferred) allocated by Amundi AM to all its personnel (i.e. 1,427 beneficiaries on 31 December 2016) amounted to EUR 140,990,678. This amount can be broken down as follows: Total amount of fixed remunerations paid by Amundi AM over the course of the financial year: EUR 102,936,282, or 73% of the total remunerations allocated by the manager to all its personnel, in the form of fixed remunerations. Total amount of variable remunerations, deferred and non-deferred, paid by Amundi AM over the course of the financial year: EUR 38,054,396, or 27% of the total remunerations allocated by the manager to all its personnel, in this form. All the personnel are eligible for variable remuneration. No "carried interest" was paid out for the financial year. Annual report as at 30/06/

20 Over the total remunerations (fixed and variable, deferred and non-deferred) allocated over the course of the financial year, EUR 16,043,219 related to "directors and executives" (27 people on 31 December 2016), EUR 10,386,047 related to "decision-making managers" whose activities had a significant impact on the risk profile of the managed funds (37 people on 31 December 2016). 1.2 Incidences of the remuneration policy and practices on the risk profile and on the management of conflicts of interests The Amundi Group has a remuneration policy and has implemented remuneration practices in accordance with the latest legislative, regulatory and doctrinal developments of the regulatory authorities for all Management Companies. The Amundi Group also identifies its Identified Personnel who include all Amundi Group staff with decision-making powers over the management of managed companies or funds and who are therefore likely to have a significant impact on the performance or the risk profile. Variable remuneration allocated to personnel in the Amundi Group is determined by combining an assessment of the performance of the staff member concerned, the operational unit to which they belong and the overall results of the Group. This assessment of individual performance takes into account both financial and non-financial criteria, as well as respect for healthy risk management rules. The criteria taken into account for the assessment of performance and the allocation of variable remuneration depends on the type of function carried out: 1. Selection functions and portfolio management Usual financial criteria: - Gross and net performance of the fund managed over 1 and 3 years; - Information ratio and Sharpe ratio over 1 and 3 years; - Performance fees generated during the financial year, if relevant; - Contribution to the net collection made over the financial year. Usual non-financial criteria: - Respect for internal rules in terms of risk prevention and management (Risks/Compliance); - Product innovation; - Transversality, sharing of best practices and collaboration; - Contribution to commercial commitments; - Management quality. 2. Commercial functions Usual financial criteria: - Net collection; - Profitability; - Market share, development of the customer portfolio; Usual non-financial criteria: - Respect for internal rules in terms of risk prevention and management (Risks/Compliance); - Full inclusion of customer interests; - Customer satisfaction and quality of commercial relationship; - Management quality. 3. Support and control functions In relation to control functions, the performance assessment and the variable remuneration allocations run independently of the performance of the business sectors they control. The criteria usually taken into account are as follows: - Mainly criteria relating to achieving their own objectives (controlling risk, quality of controls, performance of projects, improvement of system tools, etc.). Annual report as at 30/06/

21 - Where financial criteria are used, they mainly relate to the management and optimisation of charges. The abovementioned performance criteria, especially those applied to Identified Personnel responsible for management, are more broadly part of respect for the regulations applicable to the managed fund, as well as for the investment policy of the manager's investment committee. Furthermore, the Amundi Group has implemented measures for all its staff aimed at aligning performance remuneration and long term risks, and limiting the risk of conflicts of interests. To this end: - The implementation of a deferral scale, in accordance with the requirements of the AIFM and UCITS V Directives. - The deferred portion of the Identified Personnel staff bonuses is paid in instruments 100% indexed to the performance of a basket of representative funds. - The definitive acquisition of the deferred portion is linked to the financial situation of Amundi, the continued employment of the staff member in the group and their healthy, controlled risk management over the entire acquisition period. Law on the Energy Transition AMUNDI provides information to investors on the methods for taking account, in its investment policy, of environmental issues (especially issues relating to climate change), social issues and governance issues (ESG) on its website Annual report as at 30/06/

22 Certification of the Statutory Auditor on the annual accounts Annual report as at 30/06/

23 MUTUAL FUND AMUNDI PATRIMOINE Dear Unitholders, In fulfilment of the mission which was entrusted to us by the Board of Directors of your Fund's management company, we present our report relating to the financial year ended 30 June 2017, concerning: the audit of the annual accounts for the contractual-type mutual fund AMUNDI PATRIMOINE, as appended to this report; the explanation for our assessments; the verifications and specific information provided for by the law. The annual accounts were authorised for issue by your Fund's management company. On the basis of our audit, it is our duty to express an opinion about said accounts. I OPINION ON THE ANNUAL ACCOUNTS We carried out our audit in accordance with the professional standards of conduct as applicable in France; these standards require the implementation of procedures so as to provide reasonable assurance that the annual accounts do not contain any significant anomalies. An audit consists of verifying by survey or by using other selection methods, those elements which justify the sums and information featured in the annual accounts. Since it concerns a UCI, it does not take account of the databases provided by independent third parties for preparing the off-balance sheet statement included in the annual accounts. An audit also consists of assessing the accounting principles followed, any significant estimates made and the presentation of the accounts as a whole. We consider that the elements we have gathered are of a sufficient and appropriate nature to serve as the basis for our opinion. We certify that the annual accounts are, with regard to French accounting principles and rules, regular and accurate, and give a faithful image of the result of transactions occurring during the financial year in question, as well as of the financial position and net asset situation of the fund at the close of the financial year.

24 2 II - EXPLANATION OF APPRAISAL Pursuant to the provisions of Article L of the Commercial Code, relating to the justification of our assessment, we would like to draw the following to your attention: In connection with our evaluation of the accounting principles followed by the UCI and described in the note 'Accounting methods and rules' in the Notes, we specifically verified the sound application of the evaluation methods selected for the financial instruments contained in the portfolio. We verified the existence of the aforementioned financial instruments. Said evaluations as given are a part of our audit procedure for the annual accounts, taken as a whole, and thus contributed to forming the opinion we expressed in the first part of this report. III - SPECIFIC CHECKS AND INFORMATION In accordance with the applicable professional standards in France, we also performed, the specific checks laid down by law. We have no remarks to make as to the accuracy or consistency with the annual accounts of the information given in your fund's management report as drawn up by the management company, and the documents sent to unitholders regarding the financial situation and the annual accounts. Paris, 4 September 2017 STATUTORY AUDITOR SOCIETE FIDUCIAIRE PAUL BRUNIER Audit & Accounting [Signature] Hervé LE TOHIC

25 Annual accounts Annual report as at 30/06/

26 Assets in EUR Assets at 30/06/2017 Portfolio: AMUNDI PATRIMOINE 30/06/ /06/2016 NET FIXED ASSETS DEPOSITS FINANCIAL INSTRUMENTS 3,874,233, ,819,422, Equities and similar securities 559,807, ,661, Traded on a regulated market or related market 559,807, ,661, Not traded on a regulated market or related market Bonds and related securities 1,451,122, ,436,872, Traded on a regulated market or related market 1,451,122, ,436,872, Not traded on a regulated market or related market Debt securities Traded on a regulated market or related market Transferable debt securities Other debt securities Not traded on a regulated market or related market Undertakings for collective investment 1,502,909, ,609,207, UCITS and AIF generally intended for non-professionals and equivalent in other countries Other funds aimed at non-professionals and equivalent in other EU Member States Funds aimed at general professionals and equivalent in other EU Member States and listed securitisation organisations Other funds aimed at professionals and equivalent other EU Member States and non-listed securitisation organisations Other non-european organisations 1,502,909, ,609,207, Temporary transactions on securities 341,273, ,199, Debts representing securities received under repurchase agreement Debts representing lent securities 341,273, ,199, Borrowed securities Securities delivered under repurchase agreements Other temporary transactions Futures 19,120, ,480, Transactions on a regulated market or related market 12,972, ,869, Other transactions 6,147, ,611, Other financial instruments DEBTS 1,183,994, ,544, Forward-based currency transactions 1,127,662, ,907, Others 56,331, ,637, FINANCIAL ACCOUNTS 204,359, ,613, Liquidity 204,359, ,613, TOTAL ASSETS 5,262,587, ,357,580, Annual report as at 30/06/

27 Liabilities in EUR Liabilities at 30/06/2017 Portfolio: AMUNDI PATRIMOINE 30/06/ /06/2016 SHAREHOLDERS FUNDS Capital 3,667,976, ,963,911, Previous net appreciation and depreciation not distributed (a) Balance carried forward (a) Net appreciation and depreciation for the financial year (a, b) 48,405, ,508, Earnings for the financial year (a, b) 5,742, ,106, TOTAL SHAREHOLDERS' EQUITY * 3,722,124, ,778,509, * Sum representing net assets FINANCIAL INSTRUMENTS 366,009, ,060, Sale transactions of financial instruments 1,734, Temporary transactions on securities 350,348, ,812, Debts representing securities given under repurchase agreement Debts representing securities borrowed Other temporary transactions 350,348, ,812, Futures 13,927, ,247, Transactions on a regulated market or related market 13,927, ,887, Other transactions 360, DEBTS 1,174,448, ,497, Forward-based currency transactions 1,113,696, ,792, Others 60,751, ,704, FINANCIAL ACCOUNTS 4, ,512, Current bank lending 4, ,512, Borrowings TOTAL LIABILITIES 5,262,587, ,357,580, (a) Including accruals (b) Less advance payments made in respect of the financial year Annual report as at 30/06/