Annual Report as of December 31, 2016

Transcription

1 HANSAINVEST SERVICE-KVG Annual Report as of December 31, 2016 C-QUADRAT ARTS Total Return Flexible

2 Dear investor, This annual report documents the performance of the UCITS fund C-QUADRAT ARTS Total Return Flexible in the period from January 1, 2016 to December 31, Hamburg, April 2017 Yours sincerely, HANSAINVEST Hanseatische Investment-GmbH Nicholas Brinckmann Marc Drießen Dr. Jörg W. Stotz ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 2

3 Contents: Report on activities for the financial year Statement of assets as of December 31, Appendix pursuant to 7 No. 9 KARBV Reproduction of auditor s report Taxation of reinvested income Certificate pursuant to 5 (1) Clause 1 No. 3 InvStG Investment management company, depositary and committees ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 3

4 Report on activities for the financial year 2016 Investment goal and investment policy The investment goal of C-QUADRAT ARTS Total Return Flexible is to realize an appropriate level of income and to achieve optimum long-term growth independently of a benchmark. The investment policy of C-QUADRAT ARTS Total Return Flexible is based on a total return approach. The fund s management utilizes a technical trading program developed by ARTS Asset Management which has a trend-following orientation. The goal is to achieve absolute growth in all market phases. The fund s assets may be fully invested in the equities asset class, via funds, ETFs, derivatives or individual equities. The fund s equity holdings may be reduced to zero during negative stock market periods. In such a scenario its resources will mainly be invested in more defensive asset classes such as the bond market and the money market. The fund may also hedge risks by means of derivatives or increase its level of investment beyond 100%. The fund C-QUADRAT ARTS Total Return Flexible represents a highly active management style. The fund s management may utilize all instruments currently permitted by law in order to realize the investment goal. The fund may purchase equities and equity-equivalent securities, interest-bearing securities, bank balances, money market instruments, units in other investment funds, derivatives for investment and hedging purposes as well as other investment instruments. Portfolio structure The portfolio s makeup continuously changes due to its active management style and its high trading volume, both in relation to the structure of its asset classes and the positions held. At the start of the period under review the equity holdings of C-QUADRAT ARTS Total Return Flexible amounted to approx. 55%. After the ARTS trading system had completely reduced the equity holdings in the course of February, it was increased until mid of June to approx. 66%. After a temporary reduction of the equity holdings until end of June, the equity holdings remained relatively stable over the following months between 755 and 85%. At the end of the period under review the equity fund holdings were increased and amounted to approx. 94%. Asset class distribution as of end of Dec and Dec Explanation German Wording: Aktien Anleihen Geldmarkt und geldmarktnahe Investments Cash English Translation: Equities Bonds Money market and near-money market investments Cash Income from disposal of assets The unit classes of C-QUADRAT ARTS Total Return Flexible realized the following income from disposal transactions in the period under review: - Unit class A (EUR): EUR -679, ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 4

5 - Unit class T (EUR): EUR -3,770, Unit class I (EUR): EUR 4, Unit class T (PLN): EUR -331, Unit class T (USD): EUR -7, This disposal income was mainly realized through fund transactions. Risk analysis Volatility in the reporting period amounted to 5.00% p.a. Counterparty risks: The fund exclusively purchased equity, bond and money market funds complying with Directive 85/611/EEC in the period under review. Their portfolios have the status of separate funds. Accordingly, counterparty risks only arise indirectly through the investments held in the target funds. Risks also result from cash held as part of the fund s assets. Market price risks/interest-rate fluctuation risks: The fund s central market price risk relates to the development of the international stock markets. Risks are managed through diversification of the fund s investments across a variety of regions and sectors. The fund indirectly entered into interest-rate risks through investments in bond and money market funds. Currency risks: C-QUADRAT ARTS Total Return Flexible is a globally diversified portfolio. This gives rise to currency risks in various foreign currencies. For unit class T (PLN), the fund s currency is the Polish zloty. This currency is hedged against the euro exchange rate. For unit class T (USD), the fund s currency is the US-dollar. This currency is hedged against the euro exchange rate. Operational risks: No specific operational risks arose in the period under review. Liquidity risks: No specific liquidity risks arose in the period under review. Further information The investment management company which manages the fund is HANSAINVEST Hanseatische Investment-GmbH. Portfolio management for C-QUADRAT ARTS Total Return Flexible has been outsourced to C-QUADRAT Kapitalanlage AG in Austria. No further events have occurred which are of significance for the investor. ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 5

6 Statement of assets as of December 31, 2016 Fund assets: EUR 126,835, (129,833,559.53) Units in circulation: Class A (EUR) segment: 171,411 (172,252) items Class T (EUR) segment: 839,977 (897,822) items Class T (PLN) segment: 540,000 (365,000) items Class T (USD) segment: 4,249 (4,444) items Class I (EUR) segment: 2,000 items* Overview of assets as of December 31, 2016 Market value in fund currency % of fund assets % of fund assets preceeding year I. Fund assets 1. Other securities 128,609, (87.05) 2. Derivatives 107, (0.08) 3. Bank -1,665, (12.93) 4. Other assets 45, (0.14) II. Liabilities -261, (-0.20) III. Fund Assets 126,835, (Figures in brackets as of December 31, 2015) * Class I (EUR) was launched on March 9, 2016 ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 6

7 Statement of assets as of December 31, 2016 Footnotes: *) Minor discrepancies may arise through rounding-off of percentages during the calculation. 1) Auditing costs, publication costs, depositary remuneration and management remuneration not yet paid Transactions executed through affiliates. The proportion of transactions executed in the reporting period through affiliated brokers for account of the fund was 0.00 %. This amounted to a total of EUR 0.00 for these transactions. ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 7

8 Security prices/market rates The fund s assets have been valued on the basis of the following prices/market rates. Exchange rates (indirect quotation) as of Dec. 30, 2016 Swiss franc CHF = 1 euro (EUR) Polish zloty PLN = 1 euro (EUR) US dollar USD = 1 euro (EUR) Market key c) OTC Over-the-counter ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 8

9 Transactions executed during the period under review which are not listed in the statement of assets: purchases and sales of securities, investment units and borrowers note loans (market allocation as of the reporting date) ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 9

10 ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 10

11 Income statement (incl. income adjustment) ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 11

12 Development of fund assets in 2016 ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 12

13 Application of income of the fund Reinvested income calculation Total Per Unit *)**) C-QUADRAT ARTS TRF A (EUR) I. Income available for reinvestment 1. Profit for financial year EUR -877, Allocation from the fund ***) EUR 1,602, Granted tax deduction EUR II: Reinvested income EUR 725, C-QUADRAT ARTS TRF I (EUR) I. Income available for reinvestment 1. Profit for financial year EUR -6, Allocation from the fund ***) EUR 86, Granted tax deduction EUR -3, II: Reinvested income EUR 75, C-QUADRAT ARTS TRF T (EUR) I. Income available for reinvestment 1. Profit for financial year EUR -4,687, Allocation from the fund ***) EUR 8,191, Granted tax deduction EUR -8, II. Reinvested income EUR 3,495, C-QUADRAT ARTS TRF T (PLN) I. Income available for reinvestment 1. Profit for financial year EUR -499, Allocation from the fund ***) EUR 2,228, Granted tax deduction EUR II. Reinvested income EUR 1,728, C-QUADRAT ARTS TRF T (USD) I. Income available for reinvestment 1. Profit for financial year EUR -18, Allocation from the fund ***) EUR 66, Granted tax deduction EUR II. Reinvested income EUR 48, *) Mandatory information pursuant to 101 (1) No. 5 KAGB **) In case of share classes reinvested income must be calculated for each share class separately, if applicable. ***) The allocation from the fund results from accounting realised losses. A certificate pursuant to 5 of the German Investment Tax Act (Investmentsteuergesetz, InvStG) is issued for the investment tax calculation. ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 13

14 Development of the fund assets and unit value over a 3-year period ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 14

15 Appendix pursuant to 7 No. 9 KARBV ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 15

16 Hamburg, March 31, 2017 HANSAINVEST Hanseatische Investment-GmbH Management board (Nicolas Brinckmann) (Marc Drießen) (Dr. Jörg W. Stotz) ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 16

17 Reproduction of auditor s report For HANSAINVEST Hanseatische Investment-Gesellschaft mit beschränkter Haftung, Hamburg HANSAINVEST Hanseatische Investment-Gesellschaft mit beschränkter Haftung has commissioned us pursuant to 102 of the German Investment Code (Kapitalanlagegesetzbuch, KAGB) to audit the annual report for the fund C-QUADRAT ARTS Total Return Flexible for the financial year from January 1, 2016 to December 31, Responsibility of the company s legal representatives The investment management company s legal representatives are responsible for preparing the annual report in accordance with the requirements laid down in the KAGB. Responsibility of the auditor Our task is to express an opinion on the annual report on the basis of our audit. We conducted our audit in accordance with 102 KAGB and the German generally accepted auditing standards promulgated by Institut der Wirtschaftsprüfer in Deutschland e.v. (IDW). These require that the audit be planned and executed so as to recognize inaccuracies and violations materially affecting the annual report with a sufficient degree of certainty. Knowledge of the fund s management and expectations of possible errors are taken into consideration in determining the audit activities. The effectiveness of the accounting-related internal control system and documentation supporting the disclosures in the annual report are examined primarily on the basis of samples within the framework of the audit. The audit encompasses an assessment of the accounting principles used for the annual report and the key estimates of the investment management company s legal representatives. We believe that our audit provides a reasonable basis for our opinion. Audit opinion On the basis of our audit findings we have determined that the annual report for the financial year from January 1, 2016 to December 31, 2016 complies with applicable statutory requirements. Hamburg, April 3, 2017 PricewaterhouseCoopers Gesellschaft mit beschränkter Haftung Wirtschaftsprüfungsgesellschaft Lothar Schreiber Auditor pp. Christoph Wappler Auditor ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 17

18 Taxation of reinvested income HANSAINVEST Hanseatische Investment-GmbH Taxation pursuant to 5 (1) Clause 1 No. 1 and No. 2 of the German Investment Tax Act (Investmentsteuergesetz, InvStG) Financial year from January 1, 2016 to December 31, 2016 Key date for income calculation for tax purposes: December 31, 2016 Name of investment fund: C-QUADRAT ARTS TRF A (EUR) ISIN: DE000A0YJMJ5 5 (1) Clause 1 No. InvStG Private assets Business assets acc. German Corporation Tax Act 1) Other business assets 2) EUR EUR EUR Per unit Per unit Per unit 2) Reinvested income/distribution-equivalent income c) Reinvested aa) income within the meaning of 2 (2) Clause 1 in connection with 3 No. 40 4) EStG or in case of 16 in connection with 8b (1) KStG cc) income within the meaning of 2 (2a) (interest cap) gg) income within the meaning of 4 (1) hh) income included in 1 c gg) which is not subject to the exemption with progression rule ii) income within the meaning of 4 (2) for which a foreign withholding tax has actually been withheld or is deemed to have been withheld and for which no deduction has been made in accordance with (4) jj) income included in 1 c ii) for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable kk) income within the meaning of 4 (2) included in 1 c ii) granting an entitlement under a DTA to offset a tax which is deemed to have been paid against income tax or corporation tax ll) income within the meaning of 1 c kk) for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable d) Portion of income providing entitlement for offsetting of capital gains tax aa) within the meaning of 7 (1) and (2) bb) within the meaning of 7 (3) of which domestic rental income cc) within the meaning of 7 (1) Clause 4, where included in 1 d aa) f) Foreign tax on earnings which forms part of income within the meaning of 4 (2) and aa) is offsettable under 4 (2) in connection with 32d (5) or 34c (1) EStG or 5) under a DTA if no deduction has been claimed pursuant to 4 (4) bb) included in 1 f aa) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with b (1) KStG is applicable cc) is deductible under 4 (2) in connection with 34c (3) EStG if no deduction has been claimed pursuant to 4 (4) dd) included in 1 f cc) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable ee) has been paid under a DTA and may be offset under 4 (2) in connection 5) with this agreement ff) is included in 1 f ee) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable g) deduction for depreciation or depletion h) withholding tax paid in the financial year less reimbursed withholding tax for the 6) financial year or previous financial years ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 18

19 HANSAINVEST Hanseatische Investment-GmbH Taxation pursuant to 5 (1) Clause 1 No. 1 and No. 2 of the German Investment Tax Act (Investmentsteuergesetz, InvStG) Financial year from January 1, 2016 to December 31, 2016 Key date for income calculation for tax purposes: December 31, 2016 Name of investment fund: C-QUADRAT ARTS TRF T (EUR) ISIN: DE000A0YJMN7 5 (1) Clause 1 No. InvStG Private assets Business assets acc. German Corporation Tax Act 1) Other business assets 2) EUR EUR EUR Per unit Per unit Per unit 2) Reinvested income/distribution-equivalent income c) Reinvested aa) income within the meaning of 2 (2) Clause 1 in connection with 3 No. 40 4) EStG or in case of 16 in connection with 8b (1) KStG cc) income within the meaning of 2 (2a) (interest cap) gg) Income within the meaning of 4 (1) hh) income within the meaning of 1 c gg) which is not subject to the exemption with progression rule ii) income within the meaning of 4 (2) for which a foreign withholding tax has actually been withheld or is deemed to have been withheld and for which no deduction has been made in accordance with (4) jj) income within the meaning of 1 c ii) for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable kk) income within the meaning of 4 (2) included in 1 c ii) granting an entitlement under a DTA to offset a tax which is deemed to have been paid against income tax or corporation tax ll) income within the meaning of 1 c kk) for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable d) Portion of income providing entitlement for offsetting of capital gains tax aa) within the meaning of 7 (1) and (2) bb) within the meaning of 7 (3) of which domestic rental income cc) within the meaning of 7 (1) Clause 4, where included in 1 d aa) f) Foreign tax on earnings which forms part of income within the meaning of 4 (2) and aa) is offsettable under 4 (2) in connection with 32d (5) or 34c (1) EStG or 5) under a DTA if no deduction has been claimed pursuant to 4 (4) bb) included in 1 f aa) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with b (1) KStG is applicable cc) is deductible under 4 (2) in connection with 34c (3) EStG if no deduction has been claimed pursuant to 4 (4) dd) included in 1 f cc) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable ee) has been paid under a DTA and may be offset under 4 (2) in connection 5) with this agreement ff) is included in 1 f ee) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable g) deduction for depreciation or depletion h) withholding tax paid in the financial year less reimbursed withholding tax for the 6) financial year or previous financial years ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 19

20 HANSAINVEST Hanseatische Investment-GmbH Taxation pursuant to 5 (1) Clause 1 No. 1 and No. 2 of the German Investment Tax Act (Investmentsteuergesetz, InvStG) Financial year from January 1, 2016 to December 31, 2016 Key date for income calculation for tax purposes: December 31, 2016 Name of investment fund: C-QUADRAT ARTS TRF T (PLN) ISIN: DE000A1JRP71 5 (1) Clause 1 No. InvStG Private assets Business assets acc. German Corporation Tax Act 1) Other business assets 2) PLN PLN PLN Per unit Per unit Per unit 2) Reinvested income/distribution-equivalent income c) Reinvested aa) income within the meaning of 2 (2) Clause 1 in connection with 3 No. 40 4) EStG or in case of 16 in connection with 8b (1) KStG cc) income within the meaning of 2 (2a) (interest cap) gg) Income within the meaning of 4 (1) hh) income within the meaning of 1 c gg) which is not subject to the exemption with progression rule ii) income within the meaning of 4 (2) for which a foreign withholding tax has actually been withheld or is deemed to have been withheld and for which no deduction has been made in accordance with (4) jj) income within the meaning of 1 c ii) for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable kk) income within the meaning of 4 (2) included in 1 c ii) granting an entitlement under a DTA to offset a tax which is deemed to have been paid against income tax or corporation tax ll) income within the meaning of 1 c kk) for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable d) Portion of income providing entitlement for offsetting of capital gains tax aa) within the meaning of 7 (1) and (2) bb) within the meaning of 7 (3) of which domestic rental income cc) within the meaning of 7 (1) Clause 4, where included in 1 d aa) f) Foreign tax on earnings which forms part of income within the meaning of 4 (2) and aa) is offsettable under 4 (2) in connection with 32d (5) or 34c (1) EStG or 5) under a DTA if no deduction has been claimed pursuant to 4 (4) bb) included in 1 f aa) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with b (1) KStG is applicable cc) is deductible under 4 (2) in connection with 34c (3) EStG if no deduction has been claimed pursuant to 4 (4) dd) included in 1 f cc) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable ee) has been paid under a DTA and may be offset under 4 (2) in connection 5) with this agreement ff) is included in 1 f ee) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable g) deduction for depreciation or depletion h) withholding tax paid in the financial year less reimbursed withholding tax for the 6) financial year or previous financial years ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 20

21 HANSAINVEST Hanseatische Investment-GmbH Taxation pursuant to 5 (1) Clause 1 No. 1 and No. 2 of the German Investment Tax Act (Investmentsteuergesetz, InvStG) Financial year from January 1, 2016 to December 31, 2016 Key date for income calculation for tax purposes: December 31, 2016 Name of investment fund: C-QUADRAT ARTS TRF T (USD) ISIN: DE000A12BKG4 5 (1) Clause 1 No. InvStG Private assets Business assets acc. German Corporation Tax Act 1) Other business assets 2) PLN PLN PLN Per unit Per unit Per unit 2) Reinvested income/distribution-equivalent income c) Reinvested aa) income within the meaning of 2 (2) Clause 1 in connection with 3 No. 40 4) EStG or in case of 16 in connection with 8b (1) KStG cc) income within the meaning of 2 (2a) (interest cap) gg) Income within the meaning of 4 (1) hh) income within the meaning of 1 c gg) which is not subject to the exemption with progression rule ii) income within the meaning of 4 (2) for which a foreign withholding tax has actually been withheld or is deemed to have been withheld and for which no deduction has been made in accordance with (4) jj) income within the meaning of 1 c ii) for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable kk) income within the meaning of 4 (2) included in 1 c ii) granting an entitlement under a DTA to offset a tax which is deemed to have been paid against income tax or corporation tax ll) income within the meaning of 1 c kk) for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable d) Portion of income providing entitlement for offsetting of capital gains tax aa) within the meaning of 7 (1) and (2) bb) within the meaning of 7 (3) of which domestic rental income cc) within the meaning of 7 (1) Clause 4, where included in 1 d aa) f) Foreign tax on earnings which forms part of income within the meaning of 4 (2) and aa) is offsettable under 4 (2) in connection with 32d (5) or 34c (1) EStG or 5) under a DTA if no deduction has been claimed pursuant to 4 (4) bb) included in 1 f aa) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with b (1) KStG is applicable cc) is deductible under 4 (2) in connection with 34c (3) EStG if no deduction has been claimed pursuant to 4 (4) dd) included in 1 f cc) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable ee) has been paid under a DTA and may be offset under 4 (2) in connection 5) with this agreement ff) is included in 1 f ee) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable g) deduction for depreciation or depletion h) withholding tax paid in the financial year less reimbursed withholding tax for the 6) financial year or previous financial years ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 21

22 HANSAINVEST Hanseatische Investment-GmbH Taxation pursuant to 5 (1) Clause 1 No. 1 and No. 2 of the German Investment Tax Act (Investmentsteuergesetz, InvStG) Financial year from March 9, 2016 to December 31, 2016 Key date for income calculation for tax purposes: December 31, 2016 Name of investment fund: C-QUADRAT ARTS TRF I (EUR) ISIN: DE000A14UWY8 5 (1) Clause 1 No. InvStG Private assets Business assets acc. German Corporation Tax Act 1) Other business assets 2) PLN PLN PLN Per unit Per unit Per unit 2) Reinvested income/distribution-equivalent income c) Reinvested aa) income within the meaning of 2 (2) Clause 1 in connection with 3 No. 40 4) EStG or in case of 16 in connection with 8b (1) KStG cc) income within the meaning of 2 (2a) (interest cap) gg) Income within the meaning of 4 (1) hh) income within the meaning of 1 c gg) which is not subject to the exemption with progression rule ii) income within the meaning of 4 (2) for which a foreign withholding tax has actually been withheld or is deemed to have been withheld and for which no deduction has been made in accordance with (4) jj) income within the meaning of 1 c ii) for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable kk) income within the meaning of 4 (2) included in 1 c ii) granting an entitlement under a DTA to offset a tax which is deemed to have been paid against income tax or corporation tax ll) income within the meaning of 1 c kk) for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable d) Portion of income providing entitlement for offsetting of capital gains tax aa) within the meaning of 7 (1) and (2) bb) within the meaning of 7 (3) of which domestic rental income cc) within the meaning of 7 (1) Clause 4, where included in 1 d aa) f) Foreign tax on earnings which forms part of income within the meaning of 4 (2) and aa) is offsettable under 4 (2) in connection with 32d (5) or 34c (1) EStG or 5) under a DTA if no deduction has been claimed pursuant to 4 (4) bb) included in 1 f aa) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with b (1) KStG is applicable cc) is deductible under 4 (2) in connection with 34c (3) EStG if no deduction has been claimed pursuant to 4 (4) dd) included in 1 f cc) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable ee) has been paid under a DTA and may be offset under 4 (2) in connection 5) with this agreement ff) is included in 1 f ee) and applies for income for which 2 (2) in connection with 8b (2) KStG or 3 No. 40 EStG or in case of 16 in connection with 8b (1) KStG is applicable g) deduction for depreciation or depletion h) withholding tax paid in the financial year less reimbursed withholding tax for the 6) financial year or previous financial years Tax notes: 1) Disclosures for investors taxed under the German Corporation Tax Act (Körperschaftsteuergesetz, KStG). Please note here that 8b (1) to (6) KStG does not apply for investors which have the status of specific types of corporations. The applicability of these provisions may affect the scope for offsetting of foreign withholding taxes. 2) Disclosures for investors holding their units within the framework of business assets and subject to taxation under the German Income Tax Act (Einkommensteuergesetz, EStG) (e.g. individual entrepreneurs or partners in commercial partnerships). 3) The distribution amount is shown plus any capital gains tax and solidarity surcharge payable at the level of the investment fund as well as any foreign withholding taxes paid less any foreign withholding taxes reimbursed, insofar as 4 (4) InvStG has not been applied (letter from German Federal Finance Ministry of August 18, 2009, Item 12). 4) This income has been fully disclosed. 5) Offsettable (fictitious) foreign withholding tax is reported for private investors subject to the maximum-amount calculation. 6) Withholding tax paid in the current financial year less reimbursed withholding tax for previous financial years pursuant to 5 (1) Clause 1 No. 1 h) InvStG is shown net of offsettable foreign withholding tax which has already been deducted at fund level as business expenses pursuant to 4 (4) InvStG. In the event that reimbursed withholding tax exceeds withholding tax paid, this will be shown as a negative amount. ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 22

23 Certificate pursuant to 5 (1) Clause 1 No. 3 InvStG HANSAINVEST Hanseatische Investment GmbH Certificate for the disclosures within the meaning of 5 (1) Clause 1 Nos. 1 and 2 InvStG under 5 (1) Clause 1 No. 3 InvStG for the above investment fund assets ( the investment fund assets ) Certificate issued for HANSAINVEST Hanseatische Investment-GmbH (hereafter: the company ). The company has commissioned us to determine pursuant to 5 (1) Clause 1 No. 3 of the German Investment Tax Act (Investmentsteuergesetz, InvStG) whether the disclosures which the company is required to publish for the above investment fund assets for the period indicated above have been prepared in accordance with German tax law pursuant to 5 (1) Clause 1 Nos. 1 and 2 InvStG. The certificate must also include a statement, whether there is any indication for an abusive use of legal structuring options provided by the law in 42 AO that can impact the taxation according 5 (1) InvStG or the equity profit according to 5 (2) Clause 1 InvStG that have been published for the period to which the disclosures according to 5 (1) Clause 1 Nos. 1 and 2 InvStG refer. The company s legal representatives are responsible for preparing the tax disclosures pursuant to 5 (1) Clause 1 Nos. 1 and 2 InvStG in connection with the requirements of German tax law. These disclosures are based upon the accounts/records and the annual report pursuant to 44 (1) InvG and 101 (1) of the German Investment Code (Kapitalanlagegesetzbuch, KAGB) for the relevant period. They consist of a reconciliation under applicable tax regulations and a summary of the tax disclosures required under 5 (1) Clause 1 Nos. 1 and 2 InvStG. The annual report and the tax disclosures include figures resulting from an income adjustment. Where the company has invested in units in other investment funds (target funds), it utilizes the tax disclosures available to it for these target funds. Our task is to assess on the basis of our audit whether the disclosures required of the company under 5 (1) Clause 1 No. 3 InvStG comply with the provisions of German tax law. We have carried out our audit on the basis of the accounts/records audited by an auditor pursuant to 44 (5) InvG and 102 KAGB as well as the audited annual report. We have produced our assessment with reference to the resulting reconciliation as well as the required disclosures. Our audit covers, in particular, the tax classification of investments, income and expenses and their status as business expenses plus other tax records. Insofar as the company has invested in units in target funds, our audit is limited to an assessment of whether the company has provided a true and fair view of third parties tax disclosures for these target funds, in accordance with the certificates provided to us. Our audit has not covered such tax disclosures. We conducted our audit based on an analogous application of the German generally accepted auditing standards promulgated by Institut der Wirtschaftsprüfer in Deutschland e.v. (IDW). These require that the audit be planned and executed so as to determine, with a sufficient degree of certainty, whether the disclosures pursuant to 5 (1) Clause 1 Nos. 1 and 2 InvStG are free from material errors. Knowledge of the investment fund s management and expectations of possible errors are taken into consideration in determining the audit activities. Within the framework of our audit, we consider the internal control sytem which relates to the preparation of the disclosures pursuant to 5 (1) Clause 1 Nos. 1 and 2 InvStG in order to plan and conduct the audit activities that are reasonable in light of the existing circumstances; however, this process is not aimed at rendering an audit opinion on the effectiveness of the internal control system of the company. Our audit also includes an assessment of the company s interpretation of applicable tax laws. We will not challenge the company s interpretation where it is reasonably supported by explanatory memoranda, court rulings, relevant technical literature and published opinions of the fiscal administration. We would like to point out that the company s interpretation may require revision in the light of future legal developments and, in particular, new findings resulting from court rulings. We believe that our audit provides a reasonable basis for our opinion. For making our statement, whether there is any indication for an abusive use of legal structuring options provided by the law in 42 AO that can impact the taxation according 5 (1) InvStG, according to 5 (1a) Clause 3 InvStG it is not required to carry out investigations in addition to the audit of compliance with the provisions of the German tax law. For making our statement, whether there is any indication for an abusive use of legal structuring options provided by the law in 42 AO that can impact the equity profit according to 5 (2) Clause 1 InvStG, that have been published for the period to which the disclosures according to 5 (1) Clause 1 Nos. 1 and 2 InvStG refer, we have carried out specific investigations only with respect to activities in the current year. Our statement is based on analytical audit activities and questionings in respect of the published equity profits and the published redemption prices for period under review. Accordingly, we hereby certify pursuant to 5 (1) Clause 1 No. 3 InvStG that the company has prepared the disclosures in accordance with 5 (1) Clause 1 Nos. 1 and 2 InvStG in accordance with German tax law. No indications for an abusive use of legal structuring options provided by the law in 42 AO that can impact the taxation according 5 (1) InvStG or the equity profit according to 5 (2) Clause 1 InvStG that have been published for the period to which the ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 23

24 disclosures according to 5 (1) Clause 1 Nos. 1 and 2 InvStG refer, have been arisen. It cannot be ruled out that in view of the fiscal administration (further) indications for an abusive use of legal structuring options provided by the law in 42 AO result from the transactions made by the investment funds or other circumstances, in particular from the conclusion of derivative transactions, from buying and selling securities and other assets, from receipt of services resulting in income-related expenses, from income adjustment, from the decision to distribute earnings as well as from interactions of these circumstances. Frankfurt am Main, April 19, 2017 KPMG AG Wirtschaftsprüfungsgesellschaft Olaf J. Mielke, MBA Tax adviser Eugenie Jurk Tax adviser ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 24

25 Investment management company, depositary and committees Investment management company: HANSAINVEST Hanseatische Investment-GmbH Postfach Hamburg Office address: Kapstadtring Hamburg Customer service center: Telephone: (040) Fax: (040) Internet: service@hansainvest.de Subscribed and paid-in capital: 10,500, Liable equity capital: 9,970, (As of: December 31, 2015) Shareholders: SIGNAL IDUNA Allgemeine Versicherung AG, Dortmund IDUNA Vereinigte Lebensversicherung ag für Handwerk, Handel und Gewerbe, Hamburg Depositary: CACEIS Bank Deutschland GmbH, Munich Subscribed and paid-in capital: 5,113, Liable equity capital: 140,517, (As of: December 31, 2015) Incoming payments: UniCredit Bank AG, Munich (previously Bayerische Hypo- und Vereinsbank) BIC: HYVEDEMM300 IBAN: DE Supervisory board: Martin Berger (chairman), Member of the management board of SIGNAL IDUNA Group, Hamburg (also chairman of the supervisory board of SIGNAL IDUNA Asset Management GmbH) Dr. Karl-Josef Bierth (deputy chairman), Member of the management board of SIGNAL IDUNA Group, Hamburg Thomas Gollub, Adviser to Aramea Asset Management AG, Hamburg Thomas Janta, Director of NRW.BANK, Düsseldorf Dr. Thomas A. Lange, Chairman of the management board of National-Bank AG, Essen Prof. Dr. Harald Stützer, Managing partner of STUETZER Real Estate Consulting GmbH, Neufahrn Auditor: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Hamburg ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 25

26 Management board: Nicholas Brinckmann (also member of the management board of HANSAINVEST Real Assets GmbH) Marc Drießen (also deputy president of the board of directors of HANSAINVEST LUX S.A.) Dr. Jörg W. Stotz (also president of the board of directors of HANSAINVEST LUX S.A., member of the management board of SIGNAL IDUNA Asset Management GmbH and member of the management board of HANSAINVEST Real Assets GmbH) ANNUAL REPORT C-QUADRAT ARTS TOTAL RETURN FLEXIBLE 26

27 HANSAINVEST Hanseatische Investment-GmbH A SIGNAL IDUNA Group company Kapstadtring Hamburg Telephone: (040) Fax: (040) service@hansainvest.de