HI Numen Credit Fund. Report September Via Vittor Pisani Milano tel fax

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Clifford Small
6 years ago
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1 Sub-fund of Hedge Invest International Funds PLC, an investment company with variable capital structured as an umbrella fund with segregated liability between sub-funds organized under the laws of Ireland. Hedge Invest SGR is the Investment Manager of the fund. Report Via Vittor Pisani Milano tel fax

2 INVESTMENT PHILOSOPHY The Fund s objective is to achieve a 7-8% return with volatility of 4% through different strategies: low volatility selected longs, opportunistic trading of volatile super liquid credits, longs and shorts in special situations with asymmetric risk/reward (buy back, mergers, restructuring). OVERVIEW OF THE MONTH CUMULATIVE RETURN NAV 30 MONTHLY PERFORMANCE % YEAR TO DATE PERFORMANCE 3.54% SINCE INCEPTION PERFORMANCE October % ASSETS UNDER MANAGEMENT 707,166,717 Above data refer to EUR I Shares Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-1 MONTHLY REVIEW Monthly Performance: The net return of the fund s portfolio was +0.48% in. Three of our four constituent strategies delivered positive contributions this month driven by our Corporate Special Situations where our short exposures to Volkswagen and the broader auto sector, coupled with existing positions in Abengoa and Glencore, generated the majority of returns. Despite having flirted with a structural short on the entire Auto-maker sector, we were not short into the weekend the news unfolded but capitalized on the surprising complacency and muted reaction the following Monday; the price action did not accurately reflect the gravity of the event, nor consider the large concentration risks apparent in fixed income. Net corporates delivered c % for the portfolio. Following on from last month, our existing relative value trades in the Sovereign space continued to generate positive contributions in September post the swift and amicable outcome of the Greek Elections. We had previously identified the election as one of the catalysts that would provide further upside to Greece and, as such, increased our exposure ahead of the event by reducing our remaining Greece CDS hedges. We continue to believe Greece offers the best value for money in global fixed income right now. Net, Macro returned c % at the portfolio level. Our long exposures to M&A candidates delivered flat performance with Novo Banco delivering a small negative contribution following the Portuguese government s rejection of latest bids. The sale process has been suspended until after the political election. Net, Financials delivered c.-0.. Our overall tactical trading and portfolio hedges delivered c. +0. for September where we managed to capitalize on the increased volatility. Outlook: We have been very cautious of the broader systemic risks apparent in the current macro backdrop and we re-iterate our view that the Fixed Income bull market is past its prime. Having said that, we are fully aware of the potentially cathartic moves that have resulted from the rapid deterioration of risk assets performance and remain flexible at current levels. For more information, please refer to our September Outlook presentation. MAIN STATISTICS FUND Benchmark Index Annualized return 6.14% 4.58% Last 12 months return 2.66% -0.58% Annualized return - last 36 months 6.14% 4.58% Annualized return - last 60 months NA NA Sharpe ratio (1.0%) Best month 3.86% ( ) 1.68% ( ) Worst month -1.54% ( ) -1.8 ( ) The above data refer to EUR I Shares. The performance for other share classes may differ. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. The index is constructed as the equally weighted average of iboxx EUR Corporates and iboxx EUR Liquid HY. The Fund performance is net of fees and gross of taxes. The performance of the Index is gross of taxes.

3 HI Numen Credit Fund FUND vs Benchmark Index JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD FUND 0.70% 0.78% % -0.30% -0.41% % 0.48% 3.54% Bench Index 0.76% 1.20% -0.11% 0.01% % -0.80% FUND 1.25% 0.99% 1.19% 0.96% 0.78% % -1.36% -0.57% -1.54% 0.26% % Bench Index 0.86% 0.96% 0.49% 0.81% % 0.09% 0.89% -0.34% 0.30% 0.69% -0.04% 6.1 FUND 1.41% 0.45% -0.16% 0.30% 3.86% -1.17% 0.01% 0.15% -0.15% 0.69% 0.90% 0.47% 6.89% Bench Index -0.59% 0.96% 0.54% 1.68% -0.06% -1.78% 1.31% % 0.50% 0.05% 5.0 FUND 1.09% % Bench Index 1.57% 1.15% 1.45% 4.2 The above data refer to EUR I Shares. The performance for other share classes may differ. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. The index is constructed as the equally weighted average of iboxx EUR Corporates and iboxx EUR Liquid HY. The Fund performance is net of fees and gross of taxes. The performance of the Index is gross of taxes. CUMULATIVE PERFORMANCE PERFORMANCE STANDARD DEVIATION CORRELATION HI Numen Credit Fund 19.58% 3.66% Benchmark Index 14.38% 3.09% 19.34% JP Morgan GBI Global in Local Currency 10.24% 3.06% % Standard deviation on monthly data. PORTFOLIO ANALYSIS 300% 200% 100% 0% Return of long positions 0.05% Return of short positions 0.4 Average duration 1.64 ASSET CLASS BREAKDOWN 6 5% 230% Bonds Equity Credit Derivatives Equity Derivatives Cash & Equivalents* Other Percentages are calculated using Bond, Equity and Equity Derivatives market value. For credit derivatives it has been used the notional adjusted for the market value. For percentages calculation, the denominator is the AUM. *Cash & Equivalents include bonds with AA rating or better and with maturity up to 6 months. COUNTRY EXPOSURE Spain 21.6% -19.6% 2.0% 41. Italy 35.7% -12.0% 23.8% 47.7% Ireland % 9.6% Portugal 3.0% -3.4% -0.5% 6.4% Greece 8.8% % 9.1% Cyprus 9.7% -0.5% Germany 11.1% -19.1% -8.0% 30. France 10.5% -14.6% % RoEU % 1.7% 24.8% Nordic % 4.6% UK 19.8% -11.0% 8.8% 30.9% US 0.5% % 53.8% RoW % -2.7% 5. Total 144.0% % -11.1% 299.0% UK 10% 1% Nordic US 18% RoEU 8% France 9% 20% COUNTRY BREAKDOWN RoW Germany 10% 0% Spain 14% Cyprus Italy 16% Ireland Portugal Greece

4 DURATION BREAKDOWN 0-1 YEAR 1-3 YEAR 3-5 YEAR 5-10 YEAR >10 YEAR TOTAL Long 22.7% 7.4% % 3.7% 60. Short 0.0% 0.0% -4.5% -9.5% 0.0% -14.0% Net 22.7% 7.4% 9.9% 2.5% 3.7% 46. Gross 22.7% 7.4% 18.8% 21.5% 3.7% 74. RATING BREAKDOWN AAA -9,48% -4,4 5,05% 14,5 BBB 50,84% -70,81% -19,98% 121,65% AA -17,00% -6,36% 10,64% 27,64% BB -18,16% -11,10% 7,06% 25,2 A -27,4 1,79% 29,21% 56,64% B -6,4 20,16% 13,74% 26,58% NR -1,0 4,36% 3,34% 5,38% CCC and lower -2,54% 12,84% 10,30% 15,39% SECTOR BREAKDOWN Government 69.8% -61.9% 7.9% 131.7% Financial 32.0% -15.9% 16.0% 47.9% Basic Materials 4.0% Communications 6.4% -16.6% % Consumer Cyclical 7.5% -26.1% -18.6% 33.6% Consumer Non-cyclical 9.0% % 21. Diversified 0.5% % Energy 3.1% -3.9% -0.8% 7.0% Industrial 6.5% -8.9% -2.4% 15.4% Technology 0.1% Utilities 5.0% -2.7% % Other Sectors 0.0% 0.0% 0.0% 0.0% Total 144.0% % -11.1% 299.0% Minimum investment 10,000 (D-DM2) - 100,000 (I2) Additional investment 1,000 (D - DM2); 50,000 (I2) Subscription frequency Weekly (every Friday with 2 days notice) Redemption frequency Weekly (every Friday with 2 days notice) Management fee 1.75% (D service fee - R) - 1.5% (I2-20% (I2 - D - DM2) - 15% (I - I INITIAL - R - DM) - Incentive fee I) - 1. (DM2) - 1% (DM - A) p.a. 10% (A)

5 Appendix Classes START DATE ISIN CODE NAV BLOOMBERG HI NUMEN CREDIT FUND EUR D 17/04/2014 IE00BLG HINCFEF ID HI NUMEN CREDIT FUND USD D 02/05/2014 IE00BLG HINCFUD ID HI NUMEN CREDIT FUND CHF D 17/04/2014 IE00BLG HINCFCD ID HI NUMEN CREDIT FUND EUR I2 02/05/2014 IE00BLG30Y HINCEI2 ID HI NUMEN CREDIT FUND GBP I2 19/12/2014 IE00BLG30Z HINCGI2 ID HI NUMEN CREDIT FUND EUR DM2 17/04/2014 IE00BLG HINEDM2 ID HI NUMEN CREDIT FUND USD DM2 09/05/2014 IE00BLG HINUDM2 ID HI NUMEN CREDIT FUND CHF DM2 23/05/2014 IE00BLG HINCDM2 ID HI NUMEN CREDIT FUND GBP DM2 06/02/2015 IE00BLG HINGDM2 ID HI NUMEN CREDIT FUND EUR I INITIAL 28/09/2012 IE00B5M5F NUMCAII ID HI NUMEN CREDIT FUND EUR I 01/10/2012 IE00B4ZWPV NUMCAEI ID HI NUMEN CREDIT FUND EUR R 16/11/2012 IE00B59FC HINUMCR ID HI NUMEN CREDIT FUND USD R 09/11/2012 IE00B4Z1G HINUSDR ID HI NUMEN CREDIT FUND CHF R 23/11/2012 IE00B8BGWG HINCHFR ID HI NUMEN CREDIT FUND EUR DM 07/12/2012 IE00B7C3TR HINCEDM ID HI NUMEN CREDIT FUND EUR FOF 02/11/2012 IE00B84M HINCFOF ID HI NUMEN CREDIT FUND EUR A 19/07/2013 IE00BC9ZL HINCFEA ID Prior to join and for further information, please read the Prospectus on the web site Changes in rates of foreign exchange may cause the value of investments to go up or down. The value of investments may be subject to market fluctuations and investors may not get back the amount invested. Past performance may not necessarily be repeated and is not a guarantee or projection of future results. Hedge Invest SGR is the fund Investment Manager starting from 5th October 2012 The contents of this document cannot be replicated or distributed to third parties. Hedge Invest will not be responsible for any damage, direct cost or indirect cost deriving from the unauthorized distribution of this document or of its contents.

Beginning Date: January 2016 End Date: June Managers in Zephyr: Benchmark: Morningstar Short-Term Bond

Beginning Date: January 2016 End Date: June 2018 Managers in Zephyr: Benchmark: Manager Performance January 2016 - June 2018 (Single Computation) 11200 11000 10800 10600 10400 10200 10000 9800 Dec 2015