Annual Report as of September 30, 2016

Transcription

1 UI Annual Report as of September 30, 2016 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 5 Risk Management 5 Report of the Portfolio Manager 6-8 Report of the Investment Adviser 9-10 Combined Statement of Net Assets 11 Combined Statement of Operations Combined Statement of Changes in Net Assets 14 UI - Petrus Advisers Special Situations Fund UCITS Fund Structure 15 Statement of Net Assets Swaps 19 Statement of Operations Statement of Changes in Net Assets 22 Statistical Information UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS Fund Structure 25 Statement of Net Assets 26 Statement of Operations 27 Statement of Changes in Net Assets 28 Statistical Information 29 UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS Fund Structure 30 Statement of Net Assets 31 Statement of Operations 32 Statement of Changes in Net Assets 33 Statistical Information Notes to the Financial Statements Report of the Réviseur d Entreprises agréé

3 UI Organisation Company Distributor UI UI - Petrus Advisers Special Situations Fund UCITS R.C.S. Lux B , rue de Flaxweiler, L Grevenmacher Petrus Advisers Ltd. 6 New Street Square, New Letter Lane, UK - London EC4A 3AQ Directors of the Company UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS Chairman of the Board of Directors UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS Alain Nati Director at Universal-Investment-Luxembourg S.A., Grevenmacher Azure Wealth LLP Azure House, 1 Duke s Mews, UK - London W1U 3ET Members of the Board Portfolio Manager Peter Sasse Director at Universal-Investment-Luxembourg S.A., Grevenmacher Klaus Pyter Greenvest S.A., Moutfort Management Company, Central Administration, Domiciliary and Corporate Agent and Global Distributor Universal-Investment-Luxembourg S.A. R.C.S. Lux B UI - Petrus Advisers Special Situations Fund UCITS Petrus Advisers Ltd. 6 New Street Square, New Letter Lane, UK - London EC4A 3AQ Investment Adviser (until June 30, 2016) UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS Azure Wealth LLP 15, rue de Flaxweiler, L Grevenmacher Azure House, 1 Duke s Mews, UK - London W1U 3ET Custodian, Paying Agent, Registrar and Transfer Agent Auditor State Street Bank Luxembourg S.C.A. KPMG Luxembourg, Société coopérative 49, avenue John F. Kennedy, L Luxembourg Cabinet de révision agréé 39, avenue John F. Kennedy, L Luxembourg 3

4 UI Report of the Board of Directors for the period from July 21, 2015 to September 30, 2016 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, UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS and UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS. 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 Company s Board of Directors has decided to redeem all shares of the sub-fund UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS with effect as of March 24, 2016 without application of any redemption charge. The share class UI - Petrus Advisers Special Situations Fund UCITS - I (ISIN: LU ) was launched on August 6, The share class UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS D EUR (ISIN: LU ) was launched on September 1, The share class UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS A USD (ISIN: LU ) was launched on September 4, The share class UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS A EUR (ISIN: LU ) was launched on October 30, The share class UI - Petrus Advisers Special Situations Fund UCITS - R (ISIN: LU ) was launched on June 6, The Company s Board of Directors has decided to redeem all shares of the sub-fund UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS with effect as of June 30, 2016 without application of any redemption charge. As at September 30, 2016 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 currency Performance of the share price in % UI - Petrus Advisers Special Situations Fund UCITS - I (August 6, 2015 until September 30, 2016) UI - Petrus Advisers Special Situations Fund UCITS - R (June 6, 2016 until September 30, 2016) UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS A USD (September 4, 2015 until June 30, 2016) UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS D EUR (September 1, 2015 until March 24, 2016) UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS A EUR (October 30, 2015 until March 24, 2016) LU ,705, EUR LU , EUR LU ,284, USD 1.28 LU , EUR LU ,311, EUR

5 UI Derivative Exposure (unaudited) The table below shows the derivative exposure as per September 30, 2016: Sub-fund Derivative exposure in % UI - Petrus Advisers Special Situations Fund UCITS 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 in accordance with CSSF circulars (11/512). The relative value-at-risk method has been used for the sub-fund. During the period from August 6, 2015 until September 30, 2016 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 Maximum Average UI - Petrus Advisers Special Situations Fund UCITS 26.08% 77.69% 49.85% 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 - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS Reporting period September 4, 2015 until June 30, 2016 September 1, 2015 until March 24,

6 UI Report of the Portfolio Manager as at September 30, 2016 UI - Petrus Advisers Special Situations Fund UCITS (August 6, 2015 until September 30, 2016) 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 period between August 2015 and September 2016 was marked by a number of major global events: fears of subdued global economic growth with a focus on China; growing divergence in central bank monetary policies (Federal Reserve System (Fed) tightening vs. European Central Bank (ECB) easing); lower energy prices (oil in particular); and Britain s vote to leave the EU, amongst others. The uncertainty led to a rather negative sentiment which saw its peak in January 2016, the worst start for capital markets into the year in the post Lehman world. Overall stock market performance was mixed with the US posting some growth S&P500 (+4.1%) while the Stoxx600 (-14.4%) and the Nikkei (-20.4%) were down sharply. In Europe, the ECB continued its dovish policy and kept rates unchanged with President Draghi announcing additional supportive monetary measures in March The European banking sector has been suffering from the low interest rate environment, weak loan growth, increasing regulation with a particular focus on capital requirements as well as high non-performing loan (NPL) ratios in troubled countries such as Italy. Geopolitical events added to the negative sentiment including terrorist attacks in France and Belgium and an increasing number of asylum seeking refugees arriving in the EU (Germany in particular). The decision of British voters in June 2016 to leave the EU led to immediate negative adjustment of the economic outlook and saw the Pound depreciating by 18.7% vs. the Euro [by September 2016]. Local indices showed significant negative performance in the 12-month period: Germany (-9.3%), Italy (-31.1%), France (-14.3%), Spain (-22.0%), Austria (-3.1%) and Portugal (-18.3%). The UK FTSE100 was up reflecting the significant currency tailwinds (+2.3%). The oil price intensified its descendent trajectory amid continued excess of global oil production above consumption and fears of a slowdown in China and other leading EM. Brent saw one of the most severe plunges in January 2016 reaching a low of $27 / bbl before re-rating and stabilising around the $50 / bbl mark. The negative spill over effect into EM as well as oil producing economies was significant. In the US, the Fed communicated its first interest rate hike in 9 years in December 2015 (lifted from zero lower bound) and initially projected 4 more rate hikes during 2016 on the back of a strong fundamental outlook and confidence in the economy. The market sell-off in January 2016 coupled with a series of unconvincing data prints made the Fed keep the rates unchanged with expectations of a next hike by year-end The US presidential elections have been another closely watched event with Secretary Clinton (Democrat) and Donald Trump (Republican) running for the office on November 8, 2016 and the unconventional campaign of Donald Trump adding to investor worries. 6

7 UI Report of the Portfolio Manager as at September 30, 2016 Portfolio Development The UI Petrus Advisers Special Situations Fund marked down 3% in the observed period with a daily annualized volatility of 11.6%. The performance was driven by the defensive nature of the portfolio and its long bias (average long exposure of 80%) combined with systematic focus on situations where Petrus Advisers actively engages and selected stock specific conviction shorts (average short exposure of 30%). Positive Movers Ours conviction activist long positions were the major performance contributors with 3 out of the top 5 positions becoming subject to takeover bids during the observed period. In June 2016, we unilaterally agreed the sale of our then third largest conviction full activist position in German residential real estate at improved terms compared to a public tender offer. Similarly, we successfully exited one of our largest conviction full activist long positions in German / Austrian residential real estate at a premium to the announced takeover offer to a strategic investor in September 2016, settled immediately (vs. the offer s expected close in Q1/17). Our defensive positioning with focus on yielding real estate in residential and commercial space contributed positively amid overall hunt for yielding assets, boosted by the monetary policy of the ECB and delayed actions of the Fed. Our conviction pick in banking with exposure to Central and Eastern Europe (CEE), which we added towards the end of the period, appreciated significantly during Q3/16. Our high beta conviction shorts in discretionary / technology space also contributed after posting weak results and issuing profit warnings. We saw similar share price developments in our conviction short picks in retail/consumer discretionary with exposure to CEE after posting disappointing numbers. Negative Movers The main negative contributor to performance was our conviction short in Polish energy with exposure to coal mining which rerated strongly following a rally in coking coal prices driven by Chinese stimulus / global supply cuts coupled with a sale of assets to the government. We did not anticipate the unwarranted rally in commodity prices nor the involvement of the government and gradually exited the position. Our picks in selected financials in core Europe marked down in to the low interest rate environment and fears of capital shortfall during Q1-2/16. Our conviction short picks in the UK real estate developers/homebuilders contributed positively in the aftermath of the Brexit referendum but have since bounced back strongly, a move that we deemed fundamentally unjustified given our dim view of the sector post Brexit. Outlook / Strategy Our outlook for the rest of 2016 and 2017 remains cautious in an environment marked by limited growth, elevated valuation levels and a number of significant macro decisions / events ahead. Our focus is therefore on companies that can create value via self-help as well as situations where Petrus Advisers can actively engage and hence limited exposure to market beta. We will continue to focus on value generation in our activist cases and aim to keep net exposure around 50% with the ability to react quickly to an ever changing market environment. Fund performance as of September 30, 2016 Net of fees UCITS EuroStoxx ATX DAX 1M 0.1% (0.1)% 4.1% (0.8)% 3M (0.6)% 6.5% 15.4% 8.6% YTD (5.9)% (4.0)% 2.6% (2.2)% Since inception (3.0)% (11.5)% (0.8)% (9.3)% CAGR Since inception (2.6)% (10.1)% (0.7)% (8.1)% 7

8 UI Report of the Portfolio Manager as at September 30, 2016 ² Total return index (includes dividends). ³ Performance as of 30/09/2016. Source: Bloomberg, Universal. 8

9 UI Report of the Investment Adviser as at June 30, 2016 UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS (September 4, 2015 until June 30, 2016) Investment strategy and policy Short-term deposit rates were at historical lows in the US, the EU and the UK, eroding the real wealth of savers with cash holdings. The strategy aimed to deliver a compelling yield uplift over cash rates and bank deposits over a 12-month holding period, whilst limiting credit and duration risk. Liquidity was ensured via daily dealing and by investing in liquid bonds with significant outstanding issuance. This strategy invested only in USD-denominated short duration bonds, with no exposure to other currencies. Major risks Credit risk was managed via diversification and by credit selection: no bonds with credit ratings below BB and at least 75% invested in the investment grade space. The strategy only invested in plain-vanilla bonds: No complex bonds such as hybrids, ABS, structured products; no derivatives, no leverage. Market risk was controlled by limiting the residual life of securities below 5 years and duration around 3 years. Significant changes during the period During the period up to the liquidation no major changes were applied. 9

10 UI Report of the Investment Adviser as at March 24, 2016 UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS (September 1, 2015 until March 24, 2016) Investment strategy and policy Strategy dedicated to investing in the listed equities across all 5 PIIGS countries. The investment team strongly believed that a substantial recovery was underway in the European periphery, and that investors stood to gain significantly as corporate profits mean-revert over the next 5 years. Major risks No major risk exposures existed apart from equity market risk. Portfolio structure at the reporting date and significant changes during the period During the period up to the liquidation no major changes were applied. The fund benefited for the rally in the Southern European countries (especially Greece +13%, Italy +5.2% and Spain +6.5%) for the period starting from February 2016 till liquidation date, while our underweight position in Ireland (the more stable among the PIIGS countries) proved to be right as the ISEQ Index eneded up slightly down for the same period (-0.45%). Other events with significance for the investors No other significant events came to our attention. 10

11 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 of September 30, 2016 Market Value in EUR % of Fund Assets *) Assets Portfolio at market value 8,253, Unrealised result on swap transactions -9, Cash at banks 1,799, Interest receivables 5, Incorporation cost 30, Total Assets 10,079, Liabilities Loans in other EU/EEA currencies -71, Interest payable Management fee payable -43, Custodian Bank fee payable -3, Custody service expenses -1, Audit fee payable -16, Taxe d`abonnement Other payables -48, Total Liabilities -184, Total Net Assets as of September 30, ,895, *) There might be small differences due to rounding. The accompanying notes form an integral part of the financial statements. 11

12 UI Combined Statement of Operations (including income equalisation) for the period from 06/08/2015 to 30/09/2016 I. Income - Dividends EUR 105, Interest on securities EUR 350, Interest on liquidity investments *) EUR -6, Total income EUR 449, II. Expenses - Interest on bank overdraft EUR -2, Management Company fee EUR -380, Custodian Bank fee EUR -17, Custody service expenses EUR -8, Performance fee EUR -55, Auditing and publication expenses EUR -82, Subscription tax ("Taxe d`abonnement") EUR -9, Registrar and Transfer Agent fee EUR -26, Legal fee EUR Foreign withholding taxes EUR -26, Incorporation expenses EUR -6, Equalisation of ordinary expenses EUR 125, Other expenses EUR -60, Total expenses EUR -550, III. Ordinary net result EUR -101, Total *) The position 'interest on liquidity investments' includes negative interest of 6, EUR. 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 06/08/2015 to 30/09/2016 IV. Realised profit/loss on 1. Realised profit on EUR 1,641, Securities EUR 1,476, Futures transactions EUR Swap transactions EUR 162, Foreign exchange transactions EUR 2, Realised loss on EUR -2,231, Securities EUR -1,246, Swap transactions EUR -950, Foreign exchange transactions EUR -35, Total realised profit/loss EUR -590, V. Net change in unrealised profit/loss on - Net change in unrealised profit EUR 480, Net change in unrealised loss EUR -189, Total net change in unrealised profit/loss EUR 291, VI. Result of operations for the period EUR -400, Total The accompanying notes form an integral part of the financial statements. 13

14 UI Combined Statement of Changes in Net Assets 2015/2016 I. Net assets at the beginning of the period EUR Distribution for the previous year EUR Interim distributions EUR Net cash flow EUR 10,598, a) Proceeds from shares issued EUR 45,163, b) Proceeds from shares redeemed EUR -34,564, *) 4. Income/expense equalisation EUR -302, Result of operations for the period EUR -400, II. Net assets at the end of the period EUR 9,895, *) The last NAV of the liquidated sub-funds UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS and UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS as per liquidation date, which amounted to USD 15,284, (EUR 13,760,308.60) and EUR 1,384, respectively, are included in the proceeds from shares redeemed. The accompanying notes form an integral part of the financial statements. 14

15 UI - Petrus Advisers Special Situations Fund UCITS Fund Structure as at 30/09/2016 Investment Focus Market Value in EUR % of Fund Assets *) I. Assets 10,007, Equities 7,831, Bonds 422, Derivatives -9, Bank balances 1,728, Other Assets 35, II. Liabilities -112, III. Fund Assets 9,895, *) There might be small differences due to rounding. The accompanying notes form an integral part of the financial statements. 15

16 UI - Petrus Advisers Special Situations Fund UCITS Statement of Net Assets as at 30/09/2016 Description ISIN Shares / Holdings Currency Price Market Value % % in 1,000 30/09/2016 in EUR of the Fundassets *) Portfolio holdings EUR 8,253, Exchange-traded securities EUR 7,372, Equities EUR 7,372, Moneta Money Bank A.S. Inhaber-Aktien KC 1 CZ Shares 25,818 CZK , BNP Paribas S.A. Actions Port. EO 2 FR Shares 2,200 EUR , bpost S.A. Actions Nom. Compartm. A o.n. BE Shares 14,400 EUR , Braas Monier Building Group SA Actions au Porteur EO -,01 LU Shares 15,500 EUR , BUWOG AG Inhaber-Aktien o.n. AT00BUWOG001 Shares 21,000 EUR , CA Immobilien Anlagen AG Inhaber-Aktien o.n. AT Shares 18,000 EUR , comdirect bank AG Inhaber-Aktien o.n. DE Shares 45,318 EUR , conwert Immobilien Invest SE Inhaber-Aktien o.n. AT Shares 4,972 EUR , Erste Bk d. oest.sparkassen AG Inhaber-Aktien o.n. AT Shares 18,500 EUR , Euskaltel S.A. Acciones Porteur EO 3 ES Shares 51,692 EUR , Immofinanz AG Inhaber-Aktien o.n. AT Shares 310,391 EUR , LVMH Moët Henn. L. Vuitton SE Actions Port. (C.R.) EO 0,3 FR Shares 2,000 EUR , PATRIZIA Immobilien AG Namens-Aktien o.n. DE000PAT1AG3 Shares 29,625 EUR , Raiffeisen Bank Intl AG Inhaber-Aktien o.n. AT Shares 7,100 EUR , REN-Redes Energ.Nacionais SGPS Acções Nomi. Categoria A EO 1 PTREL0AM0008 Shares 92,000 EUR , S IMMO AG Inhaber-Aktien o.n. AT Shares 101,400 EUR , SEMAPA-Soc.Inv.e Gest.SGPS SA Acções Nom. EO 1 PTSEM0AM0004 Shares 25,000 EUR , Société Générale S.A. Actions Port. EO 1,25 FR Shares 3,200 EUR , UNIQA Insurance Group AG Inhaber-Stammaktien o.n. AT Shares 17,000 EUR , VTG AG Inhaber-Aktien o.n. DE000VTG9999 Shares 16,000 EUR , WCM Beteil.u.Grundbesitz AG Inhaber-Aktien o.n. DE000A1X3X33 Shares 135,000 EUR , Lloyds Banking Group PLC Registered Shares LS -,10 GB Shares 150,000 GBP , 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 30/09/2016 Description ISIN Shares / Holdings Currency Price Market Value % % in 1,000 30/09/2016 in EUR of the Fundassets *) Securities admitted to or included in organised markets EUR 880, Equities EUR 458, Aroundtown Prop. Holdings Namens-Aktien o.n. CY Shares 66,412 EUR , Tamburi Invt Partners S.p.A. Azioni nom. EO -,52 IT Shares 44,000 EUR , Interest-bearing securities EUR 422, ,0000 % Tisha Investments Overseas Ltd EO-Bonds 2014(19) AT0000A188P3 % 400 EUR , Total securities EUR 8,253, Derivatives EUR -9, Bank balances, non-securitised money market instruments and money market funds EUR 1,799, Bank balances EUR 1,799, Balances with State Street Bank S.C.A. Luxembourg Balances in the Fund currency 1,534, EUR 1,534, Balances in other EU/EEA currencies 24, GBP 28, , SEK 5, Balances in non-eu/eea currencies 35, CHF 32, Balances with Commerzbank AG Frankfurt Balances in the Fund currency 200, EUR 200, Other Assets EUR 35, Interest receivables 5, EUR 5, Incorporation cost 30, EUR 30, 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 30/09/2016 Description ISIN Shares / Holdings Currency Price Market Value % % in 1,000 30/09/2016 in EUR of the Fundassets *) Loan liabilities EUR -71, Loans in other EU/EEA currencies -307, PLN -71, Liabilities EUR -112, Interest payable EUR Management fee payable -43, EUR -43, Custodian Bank fee payable -3, EUR -3, Custody service expenses -1, EUR -1, Audit fee payable -16, EUR -16, Taxe d'abonnement EUR Other payables -48, EUR -48, Total net assets EUR 9,895, 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 100, 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 2, *) 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 Swaps as at 30/09/2016 Swaps Maturity Nominal Ccy Commitment Curr. Price Counterparty in EUR in EUR Equity leg / Euro Morgan Stanley Petrus Short EUR(Non-interest bearing (normal)) 19/09/2017-1,223, EUR 1,223, Morgan Stanley & Co. International plc London Floating leg equity swaps / Euro (Floater) 1,223, EUR Equity leg / Swiss Franc Morgan Stanley Petrus Short CHF(Non-interest bearing (norma 28/12/ CHF Morgan Stanley & Co. International plc London Floating leg equity swaps / Swiss Franc (Floater) 1.00 CHF Equity leg / Zloty Morgan Stanley Petrus Short PLN(Non-interest bearing (normal)) 07/02/2018-1,073, PLN 249, , Morgan Stanley & Co. International plc London Floating leg equity swaps / Zloty (Floater) 1,073, PLN Equity leg / Swedish Krona Morgan Stanley Petrus Short SEK(Non-interest bearing (nor 07/02/ SEK Morgan Stanley & Co. International plc London Floating leg equity swaps / Swedish Krona (Floater) 1.00 SEK Equity leg / United Kingdom Pound Morgan Stanley Petrus Short GBP(Non-interest beari 24/02/2018-1,127, GBP 1,303, , Morgan Stanley & Co. International plc London Floating leg equity swaps / United Kingdom Pound (Floater) 1,127, GBP Equity leg / Euro Morgan Stanley Petrus Long EUR(Non-interest bearing (normal)) 11/03/ EUR Morgan Stanley & Co. International plc London Floating leg equity swaps / Euro (Floater) EUR Total Swaps -9, Total Derivatives -9, The accompanying notes form an integral part of the financial statements. 19

20 UI - Petrus Advisers Special Situations Fund UCITS Statement of Operations (including income equalisation) for the period from 06/08/2015 to 30/09/2016 I. Income - Dividends EUR 99, Interest on securities EUR 15, Interest on liquidity investments *) EUR -6, Total income EUR 108, II. Expenses - Interest on bank overdraft EUR -2, Management Company fee EUR -198, Custodian Bank fee EUR -17, Custody service expenses EUR -1, Performance fee EUR -55, Auditing and publication expenses EUR -24, Subscription tax ("Taxe d`abonnement") EUR -1, Registrar and Transfer Agent fee EUR -14, Legal fee EUR Foreign withholding taxes EUR -25, Incorporation expenses EUR -6, Equalisation of ordinary expenses EUR Other expenses EUR -19, Total expenses EUR -367, III. Ordinary net result EUR -259, Total *) The position 'interest on liquidity investments' includes negative interest of 6, EUR. The accompanying notes form an integral part of the financial statements. 20

21 UI - Petrus Advisers Special Situations Fund UCITS Statement of Operations (including income equalisation) for the period from 06/08/2015 to 30/09/2016 IV. Realised profit/loss on 1. Realised profit on EUR 1,406, Securities EUR 1,242, Futures transactions EUR Swap transactions EUR 162, Foreign exchange transactions EUR 2, Realised loss on EUR -1,742, Securities EUR -757, Swap transactions EUR -950, Foreign exchange transactions EUR -34, Total realised profit/loss EUR -336, V. Net change in unrealised profit/loss - Net change in unrealised profit EUR 480, Net change in unrealised loss EUR -189, Total net change in unrealised profit/loss EUR 291, VI. Result of operations for the period EUR -303, Total The accompanying notes form an integral part of the financial statements. 21

22 UI - Petrus Advisers Special Situations Fund UCITS Statement of Changes in Net Assets 2015/2016 I. Net assets at the beginning of the period EUR Distribution for the previous year EUR Interim distributions EUR Net cash flow EUR 10,208, a) Proceeds from shares issued EUR 10,353, b) Proceeds from shares redeemed EUR -145, Income/expense equalisation EUR -8, Result of operations for the period EUR -303, II. Net assets at the end of the period EUR 9,895, The accompanying notes form an integral part of the financial statements. 22

23 UI - Petrus Advisers Special Situations Fund UCITS UI - Petrus Adv.Special Sit. Fd. UCITS - I Statistical Information Financial year Number of shares outstanding at Net asset value at Net asset value per share end of the financial year end of the financial year in currency in currency 2015/2016 *) Shares 100, EUR 9,705, EUR *) Inception: 06/08/2015 Changes in the number of shares outstanding Shares Number of shares outstanding at the beginning of the period Number of shares issued 100, Number of shares redeemed Number of shares outstanding at the end of the period 100, The accompanying notes form an integral part of the financial statements. 23

24 UI - Petrus Advisers Special Situations Fund UCITS UI - Petrus Adv.Special Sit. Fd. UCITS - R Statistical Information Financial year Number of shares outstanding at Net asset value at Net asset value per share end of the financial year end of the financial year in currency in currency 2016 *) Shares 2, EUR 189, EUR *) Inception: 06/06/2016 Changes in the number of shares outstanding Shares Number of shares outstanding at the beginning of the period Number of shares issued 3, Number of shares redeemed -1, Number of shares outstanding at the end of the period 2, The accompanying notes form an integral part of the financial statements. 24

25 UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS Fund structure as at 30/06/2016 Investment Focus Market Value in USD % of Fund Assets *) I. Assets 15,284, Bank balances 15,284, II. Fund Assets 15,284, *) There might be small differences due to rounding. The accompanying notes form an integral part of the financial statements. 25

26 UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS Statement of Net Assets as at 30/06/2016 Description ISIN Shares / Holdings Currency Price Market Value % % in 1,000 30/06/2016 in EUR of the Fundassets *) Bank balances, non-securitised money market instruments and money market funds USD 15,284, Bank balances USD 15,284, Balances with State Street Bank Luxembourg S.C.A. Balances in the Fund currency 15,284, USD 15,284, Total net assets USD 15,284, UI - AZURE AM SHORT DURATION BD FD UCITS A USD Net Asset Value per share USD Subscription price USD Redemption price USD Number of shares in circulation Shares 150, *) There might be small differences due to rounding. The accompanying notes form an integral part of the financial statements. 26

27 UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS Statement of Operations (including income equalisation) for the period from 04/09/2015 to 30/06/2016 I. Income - Interest on securities USD 372, Interest on liquidity investments *) USD Total income USD 372, II. Expenses - Interest on bank overdraft USD Management Company fee USD -150, Custody service expenses USD -7, Auditing and publication expenses USD -38, Subscription tax ("Taxe d`abonnement") USD -8, Registrar and Transfer Agent fee USD -7, Legal fee USD Equalisation of ordinary expenses USD 66, Other expenses USD -25, Total expenses USD -171, III. Ordinary net result USD 200, IV. Realised profit/loss on 1. Realised profit on USD 196, Securities USD 196, Foreign exchange transactions USD Realised loss on USD -182, Securities USD -182, Foreign exchange transactions USD Total realised profit/loss USD 13, V. Result of operations for the period USD 214, Total *) The position 'interest on liquidity investments' includes negative interest of USD. The accompanying notes form an integral part of the financial statements. 27

28 UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS Statement of Changes in Net Assets 2015/2016 I. Net assets at the beginning of the period USD Distribution for the previous year USD Interim distributions USD Net cash flow USD 15,018, a) Proceeds from shares issued USD 28,397, b) Proceeds from shares redeemed USD -13,379, Income/expense equalisation USD 52, Result of operations for the period USD 214, II. Net assets at the end of the period USD 15,284, The accompanying notes form an integral part of the financial statements. 28

29 UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS UI - AZURE AM SHORT DURATION BD FD UCITS A USD Statistical Information Financial year Number of shares outstanding at Net Asset Value at Net Asset Value per share the end of the financial year the end of the financial year in currency *) Shares 150, USD 15,284, USD *) Inception: 04/09/2015 Changes in the number of shares outstanding Shares Number of shares outstanding at the beginning of the period Number of shares issued 284, Number of shares redeemed -133, Number of shares outstanding at the end of the period 150, The accompanying notes form an integral part of the financial statements. 29

30 UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS Fund Structure as at 24/03/2016 Investment Focus Market Value in EUR % of fund assets *) I. Assets 1,384, Bank balances 1,384, II. Fund Assets 1,384, *) There might be small differences due to rounding. The accompanying notes form an integral part of the financial statements. 30

31 UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS Statement of Net Assets as at 24/03/2016 Description ISIN Shares / Holdings Currency Price Market Value % % in 1,000 24/03/2016 in EUR of the Fundassets *) Bank balances, non-securitised money market instruments and money market funds EUR 1,384, Bank balances EUR 1,384, Balances with State Street Bank S.C.A. Luxembourg Balances in the Fund currency 1,384, EUR 1,384, Total net assets EUR 1,384, UI-AZURE AM EU PERIPHERY REC. EQ FD UCITS D EUR Net Asset Value per share EUR Subscription price EUR Redemption price EUR Number of shares in circulation Shares UI-AZURE AM EU PERIPHERY REC. EQ FD UCITS A EUR Net Asset Value per share EUR Subscription price EUR Redemption price EUR Number of shares in circulation Shares 14, *) There might be small differences due to rounding. The accompanying notes form an integral part of the financial statements. 31

32 UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS Statement of Operations (including income equalisation) for the period from 01/09/2015 to 24/03/2016 I. Income - Dividends EUR 6, Interest on liquidity investments *) EUR Total income EUR 5, II. Expenses - Management Company fee EUR -46, Custody service expenses EUR Auditing and publication expenses EUR -23, Subscription tax ("Taxe d`abonnement") EUR Registrar and Transfer Agent fee EUR -4, Legal fee EUR Foreign withholding taxes EUR Equalisation of ordinary expenses EUR 65, Other expenses EUR -17, Total expenses EUR -28, III. Ordinary net result EUR -22, IV. Realised profit/loss on 1. Realised profit on EUR 57, Securities EUR 57, Foreign exchange transactions EUR Realised loss on EUR -324, Securities EUR -324, Total realised profit/loss EUR -266, Total V. Net change in unrealised profit/loss EUR 0.00 VI. Result of operations for the period EUR -289, *) The position 'interest on liquidity investments' includes negative interest of EUR. The accompanying notes form an integral part of the financial statements. 32

33 UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS Statement of Changes in Net Assets 2015/2016 I. Net assets at the beginning of the period EUR Distribution for the previous year EUR Interim distributions EUR Net cash flow EUR 2,015, a) Proceeds from shares issued EUR 9,245, b) Proceeds from shares redeemed EUR -7,229, Income/expense equalisation EUR -341, Result of operations for the period EUR -289, II. Net assets at the end of the period EUR 1,384, The accompanying notes form an integral part of the financial statements. 33

34 UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS UI - AZURE AM EU PERIPHERY REC. EQ FD UCITS D EUR Statistical Information Financial year Number of shares outstanding at Net Asset Value at Net Asset Value per share the end of the financial year the end of the financial year in currency 24/03/2016 *) Shares EUR 73, EUR *) Inception 01/09/2015 Changes in the number of shares outstanding Shares Number of shares outstanding at the beginning of the period Number of shares issued 67, Number of shares redeemed -66, Number of shares outstanding at the end of the period The accompanying notes form an integral part of the financial statements. 34

35 UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS UI - AZURE AM EU PERIPHERY REC. EQ FD UCITS A EUR Statistical Information Financial year Number of shares outstanding at Net Asset Value at Net Asset Value per share the end of the financial year the end of the financial year in currency 24/03/2016 *) Shares 14, EUR 1,311, EUR *) Inception 01/09/2015 Changes in the number of shares outstanding Shares Number of shares outstanding at the beginning of the period Number of shares issued 24, Number of shares redeemed -9, Number of shares outstanding at the end of the period 14, The accompanying notes form an integral part of the financial statements. 35

36 UI Notes to the Financial Statements 1. 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. 2. Significant Accounting Policies 2.1 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. 2.2 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) 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. (3) Securities traded on a regulated market are valued in the same manner as listed securities. (4) 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. (5) 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. (6) Term deposits shall be valued at their present value. (7) 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. 36

37 UI Notes to the Financial Statements 2.3 Foreign Exchange Rate As of September 30, 2016 positions denominated in foreign currencies were valuated at the following exchange rates (WM-Company/Fixing 5:00 CET): EUR - CHF EUR - CZK EUR - GBP EUR - PLN EUR - SEK EUR - USD (June 30, 2016) Management Company and Administration Fee The Management Company receives for the sub-fund UI - Petrus Advisers Special Situations Fund UCITS remuneration in the amount of up to 2.75% p.a. (share class R) and 2.00% p.a. (share class I) of the net asset value of the respective share class, minimum up to EUR 82, p.a. The Management Company receives for the sub-fund UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS remuneration in the amount of up to 0.80% p.a. (share class A USD) of the net asset value of the respective share class, minimum up to EUR 70, p.a. The Management Company receives for the sub-fund UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS remuneration in the amount of up to 1.80% p.a. (share class A EUR) and 1.03% (share class D EUR) of the net asset value of the respective share class, minimum up to EUR 97, p.a. The Management Company and Administration Fee shall be calculated on each valuation day and paid monthly to the Management Company. The Management Company can accept a lower fee or waive the fee. 4. Portfolio Manager Fee The Portfolio Manager receives for the sub-fund UI - Petrus Advisers Special Situations Fund UCITS remuneration in the amount of up to 1.75% p.a. (share class R) and 1.50% p.a. (share class I) of the net asset value of the respective share class. The Portfolio Manager Fee will be paid out of the Management Company and Administration Fee. The Portfolio Manager can accept a lower fee or waive the fee. The Portfolio Manager is also entitled to receive a Performance Fee. 37

38 UI Notes to the Financial Statements 5. Performance Fee UI - Petrus Advisers Special Situations Fund UCITS For each share issued, a Performance Fee (payable from the sub-fund assets) may be calculated. The fee shall total 20.00% of the amount by which the share value performance at the end of the settlement period exceeds the return on a money market investment employed as the benchmark index in the settlement period. The EURIBOR 12 months +300 bps p.a (aliquot) shall be used as the threshold value. The EURIBOR 12 months +300 bps p.a is defined as the benchmark index. As a result, such a fee shall only be calculated based on the proportion of the gains that exceed both the highest share value at the end of all previous settlement periods and the value on the launch date of the sub-fund or the relevant share class ("high-water mark"). The first high-water mark (starting value for the calculation) is the share value on the launch date or, if other share classes are launched at a later date, the relevant value on the launch date. A lower Performance Fee may be calculated for one or more share classes, or a performance fee may not be calculated. The Company states the Performance Fee for each share class in the Sales Prospectus and annual and semi-annual report. The settlement period begins on 1 January and finishes at the end of the following calendar quarter. The initial settlement period begins on the launch date and finishes at the end of the following calendar quarter. The Performance Fee is determined by referring to the share value performance, calculated using the BVI method, during the settlement period. The share value is generally calculated less all costs, except however distributions and tax payments made from the investment fund's assets. UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS and UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS No Performance Fee 6. Investment Adviser Fee The Investment Adviser receives for the sub-fund UI - AZURE ASSET MANAGEMENT SHORT DURATION BOND FUND UCITS remuneration in the amount of up to 0.50% p.a. (share class A USD) and for the sub-fund UI - AZURE ASSET MANAGEMENT EU PERIPHERY RECOVERY EQUITY FUND UCITS remuneration in the amount of up to 1.50% p.a. (share class A EUR) and 0.75% p.a. (share class D EUR) of the net asset value of the sub-fund. The Investment Adviser Fee will be paid out of the Management Company and Administration Fee. The Investment Adviser can accept a lower fee or waive the fee. 7. Domiciliary and Corporate Agency Services Fee The domiciliary and corporate agency receives remuneration of EUR 4, p.a. The remuneration is payable monthly on a pro rata basis. Any additional services, including collection of data elements and compilation into Board Packs, will be subject to negotiation; in addition, like the aforementioned, any further external costs will be charged on top (and be borne by the fund). 8. Custodian and Paying Agent Fee The custodian receives remuneration in the amount of up to 0.10% p.a. of the net asset value of the sub-fund, minimum up to EUR 21, p.a. In addition, the custodian will also be entitled to reimbursement of reasonable out-of-pocket expenses properly incurred in carrying out its duties. Fees paid to the custodian may vary depending on the nature of the investments of each sub-fund and the countries and/or markets in which the investments are made. The remuneration is payable monthly on a pro rata basis. 38