Accenta Capital Fund (Sidepocket) Accenta Capital Fund (Sidepocket) (in liquidation)

Transcription

1 Accenta Capital Fund (Sidepocket) (in liquidation) Annual report January 1, 2017 until December 31, 2017

2 TABLE OF CONTENTS 1 Management and administration 2 Financial highlights 3 Management report 4-5 Balance sheet 6 Profit and loss account 7 Statements of changes in net assets 8 Cash flow statement 9 Analysis of changes in cash and cash equivalents 10 Notes to financial statements Other information 22 Independent auditor report 23

3 MANAGEMENT, ADMINISTRATION, CUSTODY AND CONTROL 2 Registered address Accenta Capital Fund Side Pocket Euclideslaan 151 P.O. Box GP Utrecht The Netherlands Manager Finles N.V. Euclideslaan 151 P.O. Box GP Utrecht The Netherlands Administrator AssetCare B.V. Strawinskylaan XX Amsterdam The Netherlands Trustee AssetCare Bewaarder Services B.V. Strawinskylaan XX Amsterdam The Netherlands Auditors Crowe Horwath Foederer B.V. Paasheuvelweg BH Amsterdam The Netherlands Custodian Citco Global Custody N.V. Telestone 8 - Teleport Naritaweg BW Amsterdam The Netherlands

4 FINANCIAL HIGHLIGHTS, 3 (All amounts in thousands of euro, except for the amounts marked with *) Net asset Value Capital Total net asset value Number of participations (rounded to whole nr's)* Net asset value per participation* 0,13 4,00 7,08 6,72 13,75 Net result for the period per participation Jan. 1, 2017 Jan. 1, 2016 Jan. 1, 2015 Jan. 1, 2014 Jan. 1, 2013 through through through through through Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Net result for the period total participations (712) (286) 444 (1.047) (1.241) Net result for the period per participation* (2,80) (1,12) 1,74 (4,11) (4,86) Total expenses per participation* 0,24 0,32 0,32 0,41 0,49 Change net asset value per participation* (96,77%) (43,51%) 5,44% (51,15%) (26,13%) Turnover Issuance of participations Repurchase of participations Purchase of trading securities Sale of trading securities Total turnover

5 MANAGEMENT REPORT 4 In accordance with the Dutch regulator ( AFM ), Finles N.V. had agreed on a projected liquidation date of the Fund per February 1, Unfortunately, as time passed, it became evident that the projected liquidation date was too ambitious. The focus of the Fund has been, and continues to be, on liquidating all remaining positions in an orderly fashion without a fire sale of the underlying investments and distributing the proceeds net of expenses, to the participants of the Fund. The realizations in 2017 have lagged the initial projections of the underlying fund managers, but in some instances improvement has been made in the activity of the liquidation process with concrete interest in the underlying illiquid investments. However, the buyers of these investments often benefit from a strong negotiation position because the number of sellers of the illiquid assets is still outnumbered by the number of buyers despite the improved market environment. In some cases this has led to asset sales at prices below the reported book values resulting in a write down of the particular assets. In some cases, Finles N.V. has cooperated with other investors to increase the pressure on the fund managers of the remaining positions in order to increase the speed of the liquidation process. Additionally, Finles N.V. has considered alternative sources of liquidity by selling the underlying positions on the secondary market. However, no positions were sold during the reported period. Buyers on this market often are distressed investors who are only interested in buying these positions at significant discounts. We have concluded that selling positions on the secondary market at these unattractive prices has hitherto not been in the best interest of the Fund s participants during the reported period. Portfolio The net asset value of the Fund per the end of December 2017 was or 0,13 per participation. All positions have been fully written down per the end of 2017 or sold on the secondary market. CK Pearl Fund 1 was sold on the secondary market and marked as a liability per year end. Performance in 2017 The following table provides an overview of the estimated monthly performance of the Fund over the reported period. ACF SP Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Intrinsieke waarde (schatting) 3,89 3,82 3,86 3,78 2,30 0,82 0,77 0,75 0,48 0,29 0,27 0,13 - Uitbetaling per aandeel , Rendement EUR -2,8% -1,8% 1,0% -2,1% -10,5% -64,4% -5,8% -2,8% -36,2% -40,2% -6,8% -51,6% -95,3% Wisselkoers effect -2,6% 2,1% -0,7% -2,2% -3,1% -1,6% -3,4% -0,7% 0,8% 1,4% -2,1% -0,9% -12,4% The Fund s unadjusted performance over the reported period was -96,8%. After adjusting for distributions the performance was -95,3%. The currency exposure in the Fund is no longer hedged. The Fund s return is therefore partly explained by the currency movement of the euro versus the US dollar. In 2017 the US dollar appreciated against the euro resulting in an unrealized loss to the Fund of approximately 12,4%. Cash distribution In 2017, the Fund distributed 275,000 through one cash distribution that was paid on 18 May Since the start of the liquidation, the Fund has paid out a total amount of through six distributions. The total amount distributed per participation is 29,70. The following table provides an overview of the cash distributions made by the Fund since the start of the liquidation (the amounts are denominated in euros). 1 Formerly known as Medley Opportunity Fund ltd. Class S Series 1.

6 MANAGEMENT REPORT 5 Date Distribution Per participation 28-jan ,650, jul ,700, may , dec ,500, feb , nov , aug , sep , may , Totaal 7,575, Remuneration Fund Manager - Description remuneration policy The remuneration policy of the Fund Manager is set by the Board in consultation with the Supervisory Board. The remuneration policy of the Fund Manager oversees the controlled, responsible and competitive compensation of the employees of the Fund Manager. The system has a fixed salary for all employees. In addition, the ability to distribute an additional benefit in the form of capped profit sharing exists, the reward policy with respect to the DGA is as follows: Every year, the management fee established by the DGA and is included in the budget for the coming year. The budget is approved by the members of the Supervisory Board. The members of the Supervisory Board assess thereby the appropriateness of the management fee in relation to the actual and expected returns, liquidity and solvency of the company. A detailed description of the remuneration policy is available on the website of the Fund Manager ( The Fund Manager of Accenta Capital Fund Side Pocket paid a total human recourse fee in the year 2017 of EUR (2016: EUR ). This fee is devided in a fixed fee of EUR (2016: EUR ) and a variable fee of EUR (2016: ). The Fund Manager had in this year 8,7 employees, of which there were 2 staff members. These staff member obtain the internal functions of CIO, and combined COO and CFO. No claim can be made on behalf of a carried interest. Of the total human recourse fee, as mentioned above, is EUR (2016: EUR ) paid to staff members, devided in EUR (2016: EUR ) fixed fee and EUR EUR (2016: EUR ) in variable fee. The difference was paid to the other employees of the Fund Manager. The employees that are fully or partially assigned to the Accenta Capital Fund Side Pocket can be estimated to 8 (0,4 FTE). This amount is calculated with an allocation of the estimated activities of the employees of the Fund Manager. The total reward for these employees can be estimated on EUR (2016: EUR ). This amount consists a fixed fee of EUR (2016: ) and a variable fee of EUR (2016: EUR 7.992). From the amount of EUR there is an amount of EUR (2016: EUR ) for the Directors (fixed EUR (2016: EUR and variable EUR (2016: EUR 7.992) and the other employees EUR (2016: EUR ) fixed. This reward is not charged to ACF SP and doesn t form part of the accounting fee that is reported in this annual report. The manager intends to prepare the liquidation report of the fund on 30 June The participants are expected to be paid out during the third quarter of Utrecht, May 15, 2018

7 BALANCE SHEET (before allocation of net result) As at December 31 6 (All amounts in euro) Note Investments Trading securities Total Investments Other assets Cash and cash equivalents Receivable for investment sold Total current assets Total assets Current liabilities Accounts payable and accrued liabilities Total current liabilities Total of current assets minus current liabilties Net assets Number of participations outstanding Net asset value per participation 5 0,13 4,00 The accompanying notes form an integral part of this balance sheet.

8 PROFIT AND LOSS ACCOUNT 7 (All amounts in euro) Note 2017 (Jan - Dec) 2016 (Jan - Dec) Return on investments Income Net realized result on trading securities ( ) Net unrealized result on trading securities ( ) ( ) Total investment income / loss ( ) ( ) Expenses Management fees 7a Administration fees 7b Legal and professional fees 7c Custody fees 7d Monitoring fees and banking costs 7e Total expenses Foreign currency exchange gains / (losses) 8 (2.979) 601 Result from activities before tax ( ) ( ) Tax expense Net result for the period ( ) ( ) Result per participation (2,80) (1,12) The accompanying notes form an integral part of this profit and loss account.

9 STATEMENT OF CHANGES IN NET ASSETS (All amounts in euro) (Jan - Dec) 2016 (Jan - Dec) Balance start period Repayment of capital ( ) ( ) Net result for the period ( ) ( ) Balance June 30/December The accompanying notes form an integral part of this statement of changes in net assets.

10 CASH FLOW STATEMENT 9 (All amounts in euro) 2017 (Jan - Dec) 2016 (Jan - Dec) Operating activities Proceeds from sales of trading securities Income securities Management fees paid (10.396) (25.877) Administration fees paid (30.090) (30.090) Legal and professional fees paid (8.043) (9.394) Custody fees paid (7.274) (2.682) Monitoring fees and banking costs paid (9.570) (1.598) Net cash used in operating activities Financing activities Payments for the repayment of capital ( ) ( ) Net cash From financing activities ( ) ( ) Net cash flow (90.058) ( ) Foreign currency exchange gains /(losses) (3.786) (1.139) Net increase in cash and cash equivalents (93.844) ( ) The accompanying notes form an integral part of this cash flow statement.

11 ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS (All amounts in euro) (Jan - Dec) 2016 (Jan - Dec) Cash and cash equivalents beginning of period Net cash flow Foreign currency exchange gain / (loss) (3.786) (1.139) Repayment of capital ( ) ( ) Cash and cash equivalents end of period Analysis of balances: Cash at banks and brokers Cash and cash equivalents The accompanying notes form an integral part of this analysis of changes in cash and cash equivalents

12 NOTES TO FINANCIAL STATEMENTS (All amounts in euro) 11 General Accenta Capital Fund was formed as an open ended mutual investment fund. On April 18, 2002, Accenta Capital Fund obtained a license in compliance with art. 5 sub 1 of the Act on the Financial Supervision. Accenta Capital Fund has the fiscal status of a closed investment fund. This report concerns the so-called sidepocket (hereafter: the Fund ) that was formed from Accenta Capital Fund (hereafter: ACF ), effective November 1, The purpose of the sidepocket is to be wind down in an orderly fashion. In conjunction with this, units of the sidepocket were issued to existing participants of ACF. Pursuant to private information memorandum dated April 2002 an offer was made to potential investors to subscribe in the Fund s participations on a semi-continuous basis. The Fund commenced trading on May 29, Under circumstances as stated in the information memorandum the management may decide to postpone subscriptions and redemptions to the Fund. Liquidation of the Fund On December 18, 2010, the manager has decided to liquidate the Fund as per December 31, 2010, and to repay the amounts to the participants. As a result of this decision, the accounting principles of the Fund are changed to liquidation basis. The effect of the anticipated liquidation on the net asset value per December 31, 2010 and on the result for the period then ended has not been material. Effective June 30, 2012, the management of the Fund was transferred to Finles N.V. ( Finles or the manager ) in order to liquidate the remaining positions of the Fund and distribute the proceeds, net of expenses, to the participants of the Fund. Continuity: On January 25, 2018, the administrator has decided to raise the Fund. It is expected that this will take about 6 months. Rating shares: Shares are measured at fair value. Fair value is the amount at which the asset could be exchanged or a liability can be settled between knowledgeable and willing parties in an arm's length transaction independent of each other. In determining the fair value of its financial assets and its financial obligations, the legal entity, however, take into account the actual circumstances in which he is. The fair value of a financial asset which the legal person has decided to sell it in the near future, for example, is determined by the expected sale proceeds. This projected sales revenue is based on completed sales contracts or proposed transactions that have taken place around or after the balance sheet date. If investments for drawing up the financial statements have not yet been sold for the valuation of the shares used a bid on the secondary market. The Fund works for the execution of orders in illiquid assets on the secondary market with a fixed list of qualified and accepted professional counterparties. If multiple ' brokers ' brokers ' on the list ' of investments on the secondary market bids are received, it will be on investment fund

13 NOTES TO FINANCIAL STATEMENTS (continued) (All amounts in euro) 12 Annual report 2017 This report is compiled in accordance to Directive 615 of the Dutch Accounting Standards Board. The manager has prepared the annual report 2017 in accordance with the relevant requirements as stated in Part 9 of Book 2 of the Dutch Civil Code and the Act on the Financial Supervision (AFS) ( Wet op het financieel toezicht). Accounting principles The accounting principles of the Fund are summarized below. These accounting principles have all been applied consistently throughout the period: a) Basis of accounting The financial statements are prepared under the historical cost convention as modified by the fair valuation of available-for-sale securities, financial assets and financial liabilities held for trading and all derivative financial instruments. Because it has not been possible and efficient to account for the development of the historical costs of the investment securities and the amounts receivable in the period from January 1, 2011 until December 31, 2012, the manager has decided to consider the historical cost of investment securities and amounts receivable equal to their fair value as at December 31, This has not resulted in any effect on the capital of the Fund per December 31, b) Measurement currency The financial statements are prepared in euro in accordance with the fact that the participations of the Fund are denominated in euro. c) Investments i) Recognition and basis of measurement Taking into account the matter described under a) basis of accounting, all investment securities are initially recognized at cost, which is the fair value of the consideration given, including transaction costs. Transaction costs are therefore part of the cost price of the investment. ii) Gains and losses Gains and losses are treated as realized for financial statement purposes on the trade date of the transaction closing or offsetting the open position. Transaction costs are deducted from the proceeds of the sale of the investment. Unrealized gains and losses are the difference between the value initially recognized and cost of open positions, taking into account the matter described under a) basis of accounting. All gains and losses are recognized in the profit and loss account.

14 NOTES TO FINANCIAL STATEMENTS (continued) (All amounts in euro) 13 d) Derivative financial instruments Derivative financial instruments including foreign exchange contracts, stock market indexes and interest rate futures, forward rate agreements, currency and interest rate swaps, currency and interest rate options (both written and purchased) and other derivative financial instruments are initially recognised in the balance sheet at cost and subsequently are remeasured at their fair value, taking into account the matter described under a) basis of accounting. Fair values are obtained from quoted market prices, discounted cash flow models and option pricing models as appropriate. All derivative financial instruments are carried in assets when amounts are receivable by the Fund and in liabilities when amounts are payable by the Fund. Changes in fair values of derivatives are included in the profit and loss account, taking into account the matter described under a) basis of accounting. e) Translation of foreign currency Monetary assets and liabilities denominated in foreign currencies are translated into euro at the rates of exchange prevailing at year-end. Transactions in foreign currencies are translated at the rates of exchange prevailing at the date of the transaction. Realized and unrealized gains and losses on foreign currency transactions are charged or credited to the profit and loss account as foreign currency gains and losses except where they relate to investments where such amounts are included within realized and unrealized gains and losses on investments, taking into account the matter described under a) basis of accounting. f) Brokerage / expenses Commissions payable on opening and closing positions are recognized when the trade is entered into. Expenses are recorded in the period in which they originate. Transaction costs are included in the initial measurement of securities. Expenses on disposal of investments are deducted from the proceeds of disposal. g) Cash and cash equivalents For the purpose of presentation in the balance sheet and the cash flow statement, cash and cash equivalents is defined as cash at banks and brokers. The cash flow statement is prepared by using the direct method.

15 NOTES TO FINANCIAL STATEMENTS (continued) (All amounts in euro) 14 1 Trading Securities Movement of investment securities The movement in investment securities can be specified as follows Investment securities 2017 (Jan - Dec) Trading Securities 2016 (Jan - Dec) Trading Securities As per start period Purchases* Sales ( ) ( ) Net result ( ) ( ) As per end period *) Purchases are actualy switches in the Discovery Global Citizens Funds Specification trading securities The trading securities as at December 31, 2017 comprise of the following. The total market value of the trading securities in EUR is 0. Fund name Quantity Ccy Market value MV % Global Opportunities Fund (Net shares) EUR - Whitecap (Offshore) Fund I Ltd Class A Initial Series USD - Total Investments EUR - Note: No active trading occurred in the investments of the Fund during year 2017 and Consequently, per the date of the balance sheet all investments are considered as illiquid. 2 Cash and cash equivalents Citco Bank Nederland N.V ABN Amro Bank N.V Total Cash and Cash equivalents

16 NOTES TO FINANCIAL STATEMENTS (continued) (All amounts in euro) 15 3 Receivable for investments sold Fundname CK Pearl Fund Total receivable for investments sold Account payable and accrued liabilities Management fee Adminstration fee Legal and professional fee Custody fee Monitoring fee Total accounts payable and accrued liabilities Net assets The movement in number of participations is as follows: Number of participations beginning of period Issuance of participations Write off / Repurchase of participations (525) - - Number of participations end of period Net asset value Number of participations outstanding Net asset value per participation 0,13 4,00 7,08

17 NOTES TO FINANCIAL STATEMENTS (continued) (All amounts in euro) 16 6 Investment return Income Profit Loss Balance Balance - Income Net realized result on trading securities - ( ) ( ) Net unrealized result on trading securities - ( ) ( ) ( ) Total result ( ) ( ) ( ) Net realized result is the difference between the net amount received on sale and the book value of the investment. Net unrealized is the monthly pricing for the investments in portfolio up to their market value. 7 Expenses Related parties are organizationally and/or financially linked to the Fund, either directly or indirectly. The following material contracts are in place: a) Management fees The Fund pays management fee to Finles N.V. ( the manager ). The manager receives a management fee of up to 1.75% per annum, calculated on the monthly net assets under management. b) Administration fees The Fund pays a fixed administration and trustee fee to AssetCare B.V. on a monthly base. - Administration fee EUR (excluding VAT) - Trust fee EUR 908 (including VAT) c) Legal and professional fees This is an estimated provision audit fee (Crowe Horwath Foederer BV) of the annual report d) Custody fees For holding securities in custody as Depositary, Citco Global Custody N.V. charges the Fund a quarterly fee at a rate of 0.05% of the value of the fund assets held by them for the account of the Fund. e) Monitoring fees and banking costs Depositary fee, Citco Global Custody N.V. charges a fee of USD 350 per transaction and EUR 5 per transfer, banking charges from ABN Amro Bank and monitoring fee charged by Finles N.V. A comparison with the costs out of the prospect and the reel costs would not give an accurate view due to the age of the prospect.

18 NOTES TO FINANCIAL STATEMENTS (continued) 17 8 Foreign currency exchange gain/loss Gain or loss results from changes in exchange rates between the basis currency and the local currency in which the transaction is denominated. 9 Tax expense The Fund has the fiscal status of a closed investment fund with fiscal transparency and, therefore, benefits from an income tax exemption. Ongoing Charge Factor (OCF) and turnover ratio Expenses OCF Expenses OCF Management fees ,60% ,75% Administration fees ,10% ,98% Legal and professional fees ,44% ,63% Custody fees ,82% ,60% Monitoring fees and banking costs ,52% ,48% Total expenses and OCF ,48% ,44% The Ongoing Charge Factor (OCF) is calculated by dividing the expenses by the average net asset value during the period. Miscellaneous expenses relate to banking, audit and administrative expenses. The Fund invests in other investment funds, which bear their own expenses, such as management fees, performance fees and other expenses. These expenses form part of the net asset values of these funds, and are not separately charged to the Fund. Lacking sufficient and reliable information about these expenses, the manager of The Fund is not in a position to calculate the Ongoing Charge Factor of these investments as required under the provisions of Section l of the Decree on the Financial Supervision ( Bgfo ) is presented Issuance of participations (A) - - Repurchase of participations (B) - - Purchase of trading securities (transferred from ACF) (C) Sale of trading securities (D) Total Turnover (F) = [(C)+(D)-(A)-(B)] Average net asset value (E) Turnover ratio % (F)/(E)*100 45,34 60,95

19 NOTES TO FINANCIAL STATEMENTS (continued) 18 The average net asset value (used for both the expense and turnover rate) is the average of each monthend net asset value of the Fund for When the total turnover is negative, the turnover ratio is considered to be nil. Use of financial instruments In the normal course of its business, the Fund purchases and sells (derivative) financial instruments, which are exposed to a variety of financial risks, including among others, market risk, credit risk, liquidity risk, currency risk and interest-rate risk. a) Market risk Market risk is the possibility that future changes in market prices may make a financial instrument less valuable or more onerous. The Fund s market risk is managed through diversification of the investment portfolio. For the overall on-balance sheet market exposure we refer to the investment securities disclosure (note 1). b) Credit risk The principal credit risk is counterparty default (i.e., failure by the counterparty to perform as specified in the contract) due to financial impairment or for other reasons. Credit risk is generally higher when a nonexchange-traded or foreign exchange-traded financial instrument is involved. Credit risk is reduced by dealing with reputable counterparties. The Fund manages credit risk by monitoring its aggregate exposure to counterparties. c) Liquidity risk Per the date of the balance sheet all investments in the portfolio of the Fund are deemed illiquid. d) Interest rate risk The Fund is exposed to risks associated with the effects of fluctuations in the prevailing levels of market interest rates on its financial position and cash flows. The general risk of changes in fair value of financial instruments as a result of changes in interest rates is considered to be included in the term market risk as described above. The table on the next page summarizes the Fund s exposure to interest rate risks. Included in the table are the Fund s assets and liabilities at fair values categorized by the earlier of contractual reprising and maturity dates. The fair values of derivative financial instruments are included in other assets and other liabilities under the heading non-interest bearing. The off-balance sheet gap represents the net notional amounts of all interest sensitive financial instruments.

20 NOTES TO FINANCIAL STATEMENTS (continued) (All amounts in euro) 19 As at December 31, 2017: Assets Up to 1 year Non-interest Bearing Trading securities Equities Cash and cash equivalents Receivable Total Total assets Liabilities Other liabilities Payable Total liabilities Interest sensitivity gap for on balance sheet items e) Currency risk The Fund has significant currency risk. The currency risk is managed through the geographically diversified portfolio including cash and cash equivalents. The currency exposure of the fund s net assets is as follows: Fair value Fair value United States Dollars Total currency exposure Currency exposure hedged - - Remaining currency exposure The above schedule shows assets netted with liabilities of the company denominated in another currency than euro.

21 NOTES TO FINANCIAL STATEMENTS (continued) 20 Personnel Remuneration Fund Manager - Description remuneration policy The remuneration policy of the Fund Manager is set by the Board in consultation with the Supervisory Board. The remuneration policy of the Fund Manager oversees the controlled, responsible and competitive compensation of the employees of the Fund Manager. The system has a fixed salary for all employees. In addition, the ability to distribute an additional benefit in the form of capped profit sharing exists, the reward policy with respect to the DGA is as follows: Every year, the management fee established by the DGA and is included in the budget for the coming year. The budget is approved by the members of the Supervisory Board. The members of the Supervisory Board assess thereby the appropriateness of the management fee in relation to the actual and expected returns, liquidity and solvency of the company. A detailed description of the remuneration policy is available on the website of the Fund Manager ( The Fund Manager of Accenta Capital Fund Side Pocket paid a total human recourse fee in the year 2017 of EUR (2016: EUR ). This fee is devided in a fixed fee of EUR (2016: EUR ) and a variable fee of EUR (2016: ). The Fund Manager had in this year 8,7 employees, of which there were 2 staff members. These staff member obtain the internal functions of CIO, and combined COO and CFO. No claim can be made on behalf of a carried interest. Of the total human recourse fee, as mentioned above, is EUR (2016: EUR ) paid to staff members, devided in EUR (2016: EUR ) fixed fee and EUR EUR (2016: EUR ) in variable fee. The difference was paid to the other employees of the Fund Manager. The employees that are fully or partially assigned to the Accenta Capital Fund Side Pocket can be estimated to 8 (0,4 FTE). This amount is calculated with an allocation of the estimated activities of the employees of the Fund Manager. The total reward for these employees can be estimated on EUR (2016: EUR ). This amount consists a fixed fee of EUR (2016: ) and a variable fee of EUR (2016: EUR 7.992). From the amount of EUR there is an amount of EUR (2016: EUR ) for the Directors (fixed EUR (2016: EUR and variable EUR (2016: EUR 7.992) and the other employees EUR (2016: EUR ) fixed. This reward is not charged to ACF SP and doesn t form part of the accounting fee that is reported in this annual report. Large investor The Fund has no so-called large investors per date of the balance sheet. Voting rights The Fund has not actively used any applicable voting rights.

22 NOTES TO FINANCIAL STATEMENTS (continued) 21 Events subsequent to the date of the balance sheet The administrator (Finles N.V.) has on February 12 th, 2018 moratorium of payment requested and on February 15 th, 2018 is the moratorium by the Court converted into bankruptcy. To curator is appointed Mr. (William) Lansing W.J.A. Bangs & Van der Velden lawyers and tax advisors in Utrecht. The curator of Finles N.V. is responsible for the liquidation of the funds in The administrator (Finles N.V.) has up to March 20 th, 2018 the Commission decision referred to an authorisation provided for in article 2:65 of the Wft. on March 20 th, 2018, the AFM has this licence following the bankruptcy of the administrator dated February 15 th, 2018 withdrawn. This means that the Administrator to settle the existing activities and agreements, within six months after this date. Other Notes Dutch Corporate Governance Code For complying to the Dutch Corporate Governance Code we refer to the Principes van Fondsbestuur bij Finles Capital Management on the website of Finles;

23 OTHER INFORMATION 22 Interests Members of the Management Board had the following interests per December 31, 2017: No interests in the Fund (December 31, 2016: no interests). Finles N.V. Utrecht, May 15, 2018

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