Unaudited Interim Financial Report For the period from 01 July 2013 to 31 December 2013 Hedge Invest International Funds plc
HEDGE INVEST INTERNATIONAL FUNDS plc CONTENTS
Page
General information
1
Background
2
Investment Manager’s report
4
Condensed Statement of Financial Position
7
Condensed Statement of Comprehensive Income
11
Condensed Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares
15
Condensed Statement of Cash Flows
19
Notes to the condensed financial statements
23
Schedule of investments
33
Schedule of material purchases and sales
44
HEDGE INVEST INTERNATIONAL FUNDS plc GENERAL INFORMATION Board of Directors David McGeough (Irish resident) 1 Teddy Otto (Irish resident) 1 John Skelly (Irish resident) 1 Francesco Rovati (Italian resident)2
Sub-Investment Manager (HI Sibilla Macro Fund) Sibilla Capital Management Llc 1700 Broadway New York, NY 10019 United States
1
Independent and non-executive. Non-executive
2
Registered Office 2nd Floor, Block E Iveagh Court Harcourt Road Dublin 2 Ireland
Company Secretary Carne Global Financial Services Limited 2nd Floor, Block E Iveagh Court Harcourt Road Dublin 2 Ireland
Legal Advisers Dechert Riverside Two Sir John Rogerson’s Quay Dublin 2 Ireland
Administrator, Registrar and Transfer Agent J.P. Morgan Administration Services (Ireland) Limited JPMorgan House International Financial Services Centre Dublin 1 Ireland
Custodian J.P. Morgan Bank (Ireland) plc JPMorgan House International Financial Services Centre Dublin 1 Ireland
Promoter, Investment Manager and Distributor Hedge Invest SGR P.A. Via Vittor Pisani 22 20124 Milan Italy
Independent Auditors KPMG Registered Auditors 1 Harbourmaster Place International Financial Services Centre Dublin 1 Ireland
Sub-Investment Manager (HI Numen Credit Fund) Numen Investments Limited 171 Old Bakery Street Valletta Malta VLT 1455
Swiss Representative and Paying Agent Société Générale, Paris, Zurich Branch Talacker 50, P.O. Box 1928 CH-8021 Zurich Switzerland
Sub-Investment Manager (HI Principia Fund) Oakley Capital Management Limited 3 Cadogan Gate London SW1X 0AS United Kingdom
The prospectus, the articles of association, the Key Investor Information Documents (“KIID”), the annual and semi-annual report as well as a list containing all purchases and sales which have been made during the reporting period for the Company can be obtained free of charge at the Swiss Representative. Société Générale, Paris, Zurich Branch, Talacker 50, P.O. Box 1928, CH – 8021 Zürich, Switzerland. It should be noted that no notification to the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) has been made in respect of the following portfolio and shares of these sub-funds may not be publicly distributed to investors in the area of application of the German Investment Act (Investmentgesetz): HI Principia Fund HI Sibilla Macro Fund The information contained in this report is historical and not necessarily indicative of future performance. The performance data contained in this report does not take account of any commissions or costs charged when subscribing and redeeming shares.
1
HEDGE INVEST INTERNATIONAL FUNDS plc BACKGROUND Hedge Invest International Funds plc (the “Company”) is an open-ended investment company incorporated in Ireland on 10 June 2010 with variable capital organised under the laws of Ireland pursuant to the Companies Acts 1963 to 2013 and the European Communities (Undertaking for Collective Investment in Transferable Securities) Regulations, 2013 (the “UCITS Regulations”) with registration number 485407. Hedge Invest SGR P.A. was the promoter of the Company as at period ended 31 December 2013. The Company is structured as an umbrella fund in that different funds (each a “Fund”, collectively the “Funds”) thereof may be established with the prior approval of the Central Bank of Ireland (“the Central Bank”). In addition, each Fund may have more than one share class allocated to it. The shares of each class allocated to a Fund will rank pari passu with each other in all respects except as to all or any of the following:
currency of denomination of the class; currency hedging; dividend policy; the level of fees and expenses to be charged; and the minimum subscription, minimum additional subscription, minimum holding and minimum redemption applicable.
The assets of each Fund are separate from one another and are invested in accordance with the investment objectives, policies and restrictions applicable to each such Fund. The share capital of each Fund shall at all times equal its Net Asset Value (“NAV”). There were four Funds launched of which three were in operation at 31 December 2013, the HI Numen Credit Fund which launched on 10 June 2011, HI Principia Fund which launched on 31 October 2012 and HI Sibilla Macro Fund which launched on 22 November 2013 (the “Funds”). On 18 December 2013 the Central Bank approved the HI Core UCITS Fund and the supplement for the Fund. Total expense ratio The annualised total expense ratio (“TER”) shown below expresses the sum of all costs and commissions (including and excluding performance fees) charged to each Fund’s assets in line with the Company’s prospectus for the purposes of calculating the NAV, as a percentage of the average Fund assets, during the period. Period ended 31 December 2013 Annualised TER (%) (including performance fees)
Fund Name
HI Numen Credit Fund EUR A Shares 1.92 EUR DM Shares 2.06 EUR FOF Shares 2.50 EUR I Initial Shares 1.80 EUR I Shares 2.51 EUR Management Shares 0.29 EUR R Shares 2.86 USD R Shares 2.71 CHF R Shares 2.52 HI Principia Fund EUR DM Shares 5.64 EUR FOF Shares 6.37 EUR I Shares 7.25 EUR R Shares 7.20 USD I Shares 6.59 USD R Shares 6.31 CHF R Shares 6.47 HI Sibilla Macro Fund1 EUR DM Shares 3.63 EUR FOF Shares 4.27 EUR R Shares 4.75 USD DM Shares 4.05 USD R Shares 4.54 CHF DM Shares 3.20 CHF R Shares 3.77 1 HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013. 2
Period ended 31 December 2013 Annualised TER (%) (excluding performance fees) 1.31 1.34 2.13 1.35 1.84 0.29 2.05 2.09 2.09 1.57 2.57 2.03 2.54 2.01 2.56 2.57 1.98 3.07 3.01 1.95 3.17 1.95 3.15
HEDGE INVEST INTERNATIONAL FUNDS plc BACKGROUND (continued) Portfolio Turnover Rates The Portfolio Turnover Rate (PTR), expressed as a percentage, reflects the volume of dealing in the Fund. It is equal to the total of purchases and sales of securities netted against the value of the subscriptions and redemptions, over the average net assets of the Funds for the period. The PTR for the period ended 31 December 2013 are as follows: Period ended 31 December 2013 PTR (%) 349.20 343.43 -
Fund Name HI Numen Credit Fund HI Principia Fund HI Sibilla Macro Fund1 1
HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
3
HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT HI Numen Credit Fund Performance review This review is for the period 1 July 2013 – 31 December 2013 HI Numen Credit Fund Class EUR I
Date
Class EUR I NAV
Class EUR I Monthly return
Total Fund AUM (EUR)
31/07/2013
109.93
0.01%
109,110,812
30/08/2013
110.09
0.15%
115,705,509
30/09/2013
109.92
(0.15)%
138,817,566
31/10/2013
110.68
0.69%
149,359,531
29/11/2013
111.68
0.91%
155,644,006
31/12/2013
112.21
0.48%
181,631,090
In Q3 2013 the positive returns of the fund have been driven mainly (with the exception of the month of July) by our portfolio of sovereign bonds (in particular our exposure to Cyprus), thanks to the improved market sentiment surrounding the peripheral issuers in Europe and the progresses achieved by specific issuers in their recapitalisation/refinancing programs. On the special situations front the portfolio benefitted from positive returns of a long position in a convertible bond of an Italian real estate company and of a short position on a telecom operator facing credit deterioration and governance issues, which were however more than offset by other losses, particularly in a newly initiated special situation in the energy sector (a bond of an E&P Brazilian company).The portfolio of financials was a positive contributor through the quarter thanks to carry positions on bonds. In Q4 2013 the returns were positive across all months, again driven mainly by our portfolio of sovereigns (where we benefitted from positive mark-to-market on our Cyprus position and also crystallised profits on long positions in Portugal, BTP futures and Spanish Regions). The portfolio of financials also contributed positively (both thanks to carry in bonds and opportunistic participation to issuances in the primary market), whereas the portfolio of corporate/special situations was marginally negative for the quarter, as the positive contributions from our legacy position were offset by losses in the special situation in the energy sector initiated during the previous quarter (which was exited completely during the month of November). Market view and Outlook We expect European assets to outperform US and EM (“Emerging Markets”) assets. Now that we are witnessing a turning point in the monetary policy of the FED and other central banks, we expect consensual trades (EM, gold, US equities) to be slowly unwound and global funds flow to favour Europe. The overall rates volatility will justify Draghi to be even more aggressive and more creative in proposing and implementing new structural monetary and fiscal solutions soon. ECB will be politically required to do more and more, both in terms of regulation and assistance to debt adjustments of various countries. Angela Merkel was the clear winner of German elections but she will still need support from opposition to form a government coalition, and opposition will likely require concession in change of its support. Overall, we think the resulting coalition will represent a strong negotiator in Europe, and we believe Merkel herself will be predominantly focused on the sustainable long term solution. In the next few months we expect European banks to issue a substantial amount of capital, in anticipation to the asset quality review and stress tests. We expect European banks to take central stage in 2014. Liability side restructuring will continue, accelerated by ECB AQR and stress tests deadlines. The deleveraging process will continue in parallel, and the ECB will keep smoothing the process while testing new forms of QE to prevent rising global rates to derail European financial stability. Politicians will happily and conveniently let the ECB act and create a good pro-European sentiment to assist a smooth process for the European elections in May 2014, for which unemployment rate and growth numbers must be improved. We will see a continuation of repatriation of European savings back to Europe and plenty of USA investors coming back to Europe, and the clearer it will be that the banks restructuring this time is serious and far reaching.
4
HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Principia Fund Performance Review The HI Principia EUR FOF share class increased by 8.69% on a net basis from the 1st July to the 31st December 2013. HI Principia Fund Class EUR FOF
Date
Class EUR FOF NAV
Monthly return
Total Fund AUM (EUR)
31/07/2013
102.57
0.64%
41,009,168
30/08/2013
104.44
1.82%
42,304,054
30/09/2013
106.41
1.89%
45,077,917
31/10/2013
106.38
(0.03)%
55,463,736
29/11/2013
107.31
0.88%
61,991,535
31/12/2013
110.78
3.24%
67,845,039
Exposure The gross exposure of HI Principia ranged between 95% and 140% over the period. As at close 31 st December the Top 5 long positions represented 31.07% of NAV and the Top 5 short equity positions amounted to 13.92% of NAV. Market views & Outlook 2013 was a positive year for the European equity market. The stabilisation in the Eurozone combined with economic activity ceasing to contract meant that the European region became more palatable for global investors. The improvement in sentiment meant that the risk premium applied to Europe markedly declined and this led to an appreciation above 15% for 2013. As earnings expectations for 2013 declined the appreciation was driven by a re-rating of European equities. The forward earnings multiple has risen from approximately 11* earnings to just below 14* earnings which is in line with historical averages. We consider that the risk/reward ratio is evenly balanced towards European equities. Expectations for 2014/15 seem fair but not excessive, this equally applies to valuation. We see a more considered, stock picking environment to materialise rather than a strong directional one. We view that our long book has reasonable upside potential on a 2 year view. The short side is composed of companies where we consider expectations are full and valuation high enough. Our long term target remains to generate a return which more than compensates for the risk premium of holding equities. This translates into a high single digit to low double digit return with contained volatility.
5
HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Sibilla Macro Fund Performance Review HI Sibilla Macro Fund EUR FOF share class increased by 0.47% on a net basis since inception November 25th to the end of year 31st December 2013. HI Sibilla Macro Fund Class EUR FOF Date
Class EUR FOF NAV
Class EUR FOF Monthly Return
Total Fund AUM (EUR)
29/11/2013
99.75
(0.25)%
13,964,357
31/12/2013
100.47
0.72%
25,723,568
Exposure The Hi Sibilla Fund utilizes a "double-hull" approach, by making investments when fundamental and quantitative measures confirm a view. The investment team employs a top-down approach which incorporates thematic views augmented by rigorous fundamental analyses and a series of proprietary models to exploit the best opportunities and major events in the global markets. The investment team keenly focuses on detecting market conditions using a disciplined framework and dynamically allocates to the appropriate asset classes in each environment. The fund avoids crowded trades by relying on original research and independent, proprietary analysis The average gross exposure during the last quarter of 2013 was 83% and the biggest positions were held in Long Stock Index Futures and Short Emerging Market Currencies. The biggest source of risk was the long position in US dollar. Market Views & Outlook At the December meeting, the Federal Reserve Board announced the beginning of the end of the asset purchases portion of the quantitative easing program. The reduction, at first, is quite modest with the amount of the asset purchases only declining by $10 billion per month. As a result, we expect that the process of curtailing asset purchases will begin to negatively impact the price of bonds, particularly in emerging markets and high-yielding commodity currencies. We believe that global equities outside of emerging markets, in particular European equities, will withstand tapering for some time before any impact is felt. Our portfolio is positioned to exploit the additional upside we expect in Europe and the U.S., although our exposure is moderate. The current risk-reward profile does not suggest full exposure is warranted, so a tactical approach for the time being will be employed. Our portfolio is further positioned in uncorrelated or inversely correlated securities designed to perform well in a market downturn and be resilient if the bull market rally continues. We identified a basket of currencies, including the New Zealand dollar, the Mexican peso, the Hungarian forint, the Polish zloty, and the Canadian dollar, which we believe can depreciate against both the Euro and U.S. dollar in almost all possible scenarios, especially a sudden reversal in risky assets. We also plan to take a short position in U.S. treasuries as we expect the 10-year yield to break out above 3% and lead bonds lower as the Fed scales back on bond purchases. Lastly, we are searching for a catalyst to take a short position in the Japanese 10-year bond futures as we believe that these bonds will eventually follow along the global downtrend in bonds. Hedge Invest SGR P.A January 2014
6
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013 HI Numen Credit Fund EUR ’000
HI Principia Fund EUR ’000
12,076
19,967
-
6,456
3,661
2,359
Financial assets at fair value through profit or loss
167,058
41,228
Total assets
182,795
70,010
-
(134)
(2,003)
(954)
(308)
(1,282)
Total liabilities (excluding net assets attributable to redeemable participating shareholders)
(2,311)
(2,370)
Net assets attributable to redeemable participating shareholders
180,484
67,640
ASSETS Cash and cash equivalents Collateral cash Receivables
LIABILITIES Bank Overdraft Payables Financial liabilities at fair value through profit or loss
The accompanying notes form an integral part of these financial statements.
7
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013 HI Sibilla Macro Fund1 EUR ’000
Company Total EUR ’000
19,627
51,670
Collateral cash
1,404
7,860
Receivables
2,041
8,061
Financial assets at fair value through profit or loss
3,312
211,598
26,384
279,189
-
(134)
(671)
(3,628)
(30)
(1,620)
Total liabilities (excluding net assets attributable to redeemable participating shareholders)
(701)
(5,382)
Net assets attributable to redeemable participating shareholders
25,683
273,807
ASSETS Cash and cash equivalents
Total assets LIABILITIES Bank Overdraft Payables Financial liabilities at fair value through profit or loss
1
HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
The accompanying notes form an integral part of these financial statements.
8
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013 HI Numen Credit Fund EUR ’000
HI Principia Fund EUR ’000
Cash and cash equivalents
9,545
10,402
Receivables
1,411
3,107
74,149
30,696
3,998
-
89,103
44,205
(3,871)
(3,054)
(916)
(430)
Total liabilities (excluding net assets attributable to redeemable participating shareholders)
(4,787)
(3,484)
Net assets attributable to redeemable participating shareholders
84,316
40,721
ASSETS
Financial assets at fair value through profit or loss Pledged financial assets at fair value through profit or loss Total assets LIABILITIES Payables Financial liabilities at fair value through profit or loss
The accompanying notes form an integral part of these financial statements.
9
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013 Company Total EUR ’000 ASSETS Cash and cash equivalents
19,947
Receivables
4,518
Financial assets at fair value through profit or loss
104,845
Pledged financial assets at fair value through profit or loss
3,998 133,308
Total assets LIABILITIES Payables
(6,925)
Financial liabilities at fair value through profit or loss
(1,346)
Total liabilities (excluding net assets attributable to redeemable participating shareholders)
(8,271)
Net assets attributable to redeemable participating shareholders
125,037
The accompanying notes form an integral part of these financial statements.
10
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD FROM 1 JULY 2013 TO 31 DECEMBER 2013 HI Numen Credit Fund EUR ’000
HI Principia Fund EUR ’000
3,791
180
762
5,813
4,553
5,993
(1,720)
(1,730)
Net operating profit
2,833
4,263
Net profit for the financial period before tax
2,833
4,263
-
(16)
2,833
4,247
Operating income Net gains on financial assets/liabilities at fair value through profit or loss Total gains Operating expenses
Withholding tax Increase in net assets attributable to holders of redeemable participating shares from operations
There are no recognised gains or losses arising in the period other than those dealt with in the statement of comprehensive income. In arriving at the results of the financial period, all amounts relate to continuing operations. The accompanying notes form an integral part of these financial statements.
11
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD FROM 1 JULY 2013 TO 31 DECEMBER 2013 HI Sibilla Macro Fund1 EUR ’000
Company Total EUR ’000
2
3,973
Net gains on financial assets/liabilities at fair value through profit or loss
189
6,764
Total gains
191
10,737
(133)
(3,583)
Net operating profit
58
7,154
Net profit for the financial period before tax
58
7,154
-
(16)
58
7,138
Operating income
Operating expenses
Withholding tax Increase in net assets attributable to holders of redeemable participating shares from operations 1
HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
There are no recognised gains or losses arising in the period other than those dealt with in the statement of comprehensive income. In arriving at the results of the financial period, all amounts relate to continuing operations. The accompanying notes form an integral part of these financial statements.
12
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD FROM 1 JULY 2012 TO 31 DECEMBER 2012 HI Numen Credit Fund EUR ’000
HI Principia Fund EUR ’000
280
-
Net gains/(losses) on financial assets/liabilities at fair value through profit or loss
1,751
(171)
Total gains/(losses)
2,031
(171)
Operating expenses
(741)
(165)
Net operating profit/(loss)
1,290
(336)
Net profit/(loss) for the financial period before tax
1,290
(336)
(2)
-
1,288
(336)
Operating income
Withholding tax Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations
There are no recognised gains or losses arising in the period other than those dealt with in the statement of comprehensive income. In arriving at the results of the financial period, all amounts relate to continuing operations. The accompanying notes form an integral part of these financial statements.
13
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD FROM 1 JULY 2012 TO 31 DECEMBER 2012 Company Total EUR ’000 Operating income
280
Net gains on financial assets/liabilities at fair value through profit or loss
1,580
Total gains
1,860
Operating expenses
(906)
Net operating profit
954
Net profit for the financial period before tax
954
Withholding tax
(2)
Increase in net assets attributable to holders of redeemable participating shares from operations
952
There are no recognised gains or losses arising in the period other than those dealt with in the statement of comprehensive income. In arriving at the results of the financial period, all amounts relate to continuing operations. The accompanying notes form an integral part of these financial statements.
14
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES FOR THE PERIOD FROM 1 JULY 2013 TO 31 DECEMBER 2013 HI Numen Credit Fund EUR ’000
HI Principia Fund EUR ’000
84,316
40,721
2,833
4,247
Proceeds from issue of redeemable participating shares
109,771
23,952
Payments on redemption of redeemable participating shares
(16,436)
(1,280)
93,335
22,672
180,484
67,640
Net assets attributable to holders of redeemable participating shares at the beginning of the period Increase in net assets attributable to holders of redeemable participating shares from operations Share transactions:
Increase in net assets resulting from share transactions Net assets attributable to holders of redeemable participating shares at the end of the period The accompanying notes form an integral part of these financial statements.
15
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES FOR THE PERIOD FROM 1 JULY 2013 TO 31 DECEMBER 2013 HI Sibilla Macro Fund1 EUR ’000
Company Total EUR ’000
-
125,037
58
7,138
25,626
159,349
(1)
(17,717)
Increase in net assets resulting from share transactions
25,625
141,632
Net assets attributable to holders of redeemable participating shares at the end of the period
25,683
273,807
Net assets attributable to holders of redeemable participating shares at the beginning of the period Increase in net assets attributable to holders of redeemable participating shares from operations Share transactions: Proceeds from issue of redeemable participating shares Payments on redemption of redeemable participating shares
1
HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
The accompanying notes form an integral part of these financial statements.
16
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES FOR THE PERIOD FROM 1 JULY 2012 TO 31 DECEMBER 2012 HI Numen Credit Fund EUR ’000
HI Principia Fund EUR ’000
Net assets attributable to holders of redeemable participating shares at the beginning of the period
678
-
Increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations
1,288
(336)
74,797
33,939
(21,626)
-
Increase in net assets resulting from share transactions
53,171
33,939
Net assets attributable to holders of redeemable participating shares at the end of the period
55,137
33,603
Share transactions: Proceeds from issue of redeemable participating shares Payments on redemption of redeemable participating shares
The accompanying notes form an integral part of these financial statements.
17
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES FOR THE PERIOD FROM 1 JULY 2012 TO 31 DECEMBER 2012 Company Total EUR ’000 Net assets attributable to holders of redeemable participating shares at the beginning of the period
678
Increase in net assets attributable to holders of redeemable participating shares from operations
952
Share transactions: Proceeds from issue of redeemable participating shares
108,736
Payments on redemption of redeemable participating shares
(21,626)
Increase in net assets resulting from share transactions
87,110
Net assets attributable to holders of redeemable participating shares at the end of the period
88,740
The accompanying notes form an integral part of these financial statements.
18
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF CASH FLOWS FOR THE PERIOD FROM 1 JULY 2013 TO 31 DECEMBER 2013 HI Numen Credit Fund EUR ’000
HI Principia Fund EUR ’000
2,833
4,247
(88,911)
(10,532)
(2,250)
748
(608)
852
(1,868)
(2,100)
(90,804)
(6,785)
Proceeds from issue of redeemable participating shares during the period
109,771
23,952
Payments for redemption of redeemable participating shares during the period
(16,436)
(1,280)
93,335
22,672
Net increase in cash and cash equivalents
2,531
15,887
Cash and cash equivalents, beginning of period
9,545
10,402
12,076
26,289
Cash flows from operating activities: Increase in net assets attributable to holders of redeemable participating shares resulting from operations Adjustments to reconcile net profit/(loss) to net cash used in operating activities: Increase/(decrease) in operating assets: Financial assets at fair value through profit or loss Other receivables and prepayments Increase/(decrease) in operating liabilities: Financial liabilities at fair value through profit or loss Other payables Net cash used in operating activities Cash flows from financing activities
Net cash provided by financing activities
Cash and cash equivalents and pledged cash, end of period The accompanying notes form an integral part of these financial statements.
19
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF CASH FLOWS FOR THE PERIOD FROM 1 JULY 2013 TO 31 DECEMBER 2013 HI Sibilla Macro Fund1 EUR ’000
Company Total EUR ’000
58
7,138
Financial assets at fair value through profit or loss
(3,312)
(102,755)
Other receivables and prepayments
(2,041)
(3,543)
30
274
671
(3,297)
(4,594)
(102,183)
25,626
159,349
(1)
(17,717)
Net cash provided by financing activities
25,625
141,632
Net increase in cash and cash equivalents
21,031
39,449
-
19,947
21,031
59,396
Cash flows from operating activities: Increase in net assets attributable to holders of redeemable participating shares resulting from operations Adjustments to reconcile net profit/(loss) to net cash used in operating activities: Decrease in operating assets:
Increase/(decrease) in operating liabilities: Financial liabilities at fair value through profit or loss Other payables Net cash used in operating activities Cash flows from financing activities Proceeds from issue of redeemable participating shares during the period Payments for redemption of redeemable participating shares during the period
Cash and cash equivalents, beginning of period Cash and cash equivalents and pledged cash, end of period 1
HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
The accompanying notes form an integral part of these financial statements.
20
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF CASH FLOWS FOR THE PERIOD FROM 1 JULY 2012 TO 31 DECEMBER 2012 HI Numen Credit Fund EUR ’000
HI Principia Fund EUR ’000
1,288
(336)
(44,630)
(16,348)
(17)
(69)
(1)
61
(342)
164
(43,702)
(16,528)
74,797
33,939
(21,626)
-
53,171
33,939
9,469
17,411
251
-
9,720
17,411
Cash flows from operating activities: Increase/(decrease) in net assets attributable to holders of redeemable participating shares resulting from operations Adjustments to reconcile net profit/(loss) to net cash used in operating activities: Decrease in operating assets: Financial assets at fair value through profit or loss Other receivables and prepayments Increase in operating liabilities: Financial liabilities at fair value through profit or loss Other payables Net cash used in operating activities Cash flows from financing activities Proceeds from issue of redeemable participating shares during the period Payments for redemption of redeemable participating shares during the period Net cash provided by financing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents and pledged cash end of period The accompanying notes form an integral part of these financial statements.
21
HEDGE INVEST INTERNATIONAL FUNDS plc CONDENSED STATEMENT OF CASH FLOWS FOR THE PERIOD FROM 1 JULY 2012 TO 31 DECEMBER 2012 Company Total EUR ’000 Cash flows from operating activities: Increase in net assets attributable to holders of redeemable participating shares resulting from operations
952
Adjustments to reconcile net profit/(loss) to net cash used in operating activities: Increase in operating assets: Financial assets at fair value through profit or loss
(60,978)
Other receivables and prepayments
(86)
Increase in operating liabilities: Financial liabilities at fair value through profit or loss
60
Other payables
(178) (60,230)
Net cash used in operating activities Cash flows from financing activities Proceeds from issue of redeemable participating shares during the period
108,736
Payments for redemption of redeemable participating shares during the period
(21,626)
Net cash provided by financing activities
87,110
Net increase in cash and cash equivalents
26,880
Cash and cash equivalents, beginning of period
251
Cash and cash equivalents and pledged cash, end of period The accompanying notes form an integral part of these financial statements.
22
27,131
HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE CONDENSED FINANCIAL STATEMENTS For the period from 01 July 2013 to 31 December 2013 1.
Basis of preparation and significant accounting policies
The principle accounting policies and estimation techniques are consistent with those applied to the previous annual financial statements except as follows: Futures contracts A futures contract is a contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. The changes in value of open futures contracts are recognised as unrealised gains or losses by marking-to-market the value of the contract at the balance sheet date. Changes in the futures contracts’ value are settled daily with the exchange, by paying or receiving a variation margin amount. When the contract is closed, the difference between the proceeds from (or cost of) the closing transactions and the original transaction is recorded in the net gains/(losses) on financial assets/(liabilities) at fair value through profit or loss in the income statement. Statement of compliance The condensed financial statements are prepared in accordance with the International Accounting Standards 34 Interim Financial Reporting which prescribes the minimum content for an interim report. The condensed financial statements are also prepared in accordance with the UCITS Regulations. 2. Fees and expenses a) Investment management fees HI Numen Credit Fund The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the Net Asset Value attributable to the relevant Share class as set out in the table below, which is accrued as of each Dealing Day and paid monthly in arrears. Share class name EUR A Shares EUR DM Shares EUR FOF Shares EUR I Initial Shares EUR I Shares EUR Management Shares EUR R Shares USD R Shares CHF R Shares
Investment Management fee 1.00% 1.00% 1.75% 1.00% 1.50% 1.50% 1.75% 1.75% 1.75%
The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out of pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises. The Investment Management Fee incurred by the Fund amounted to EUR 876,205 for the period ended 31 December 2013 (year ended 30 June 2013: EUR 699,024; period ended 31 December 2012: EUR 214,605).
23
HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued) For the period from 01 July 2013 to 31 December 2013 2. Fees and expenses (continued) a) Investment management fees (continued) HI Principia Fund The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the Net Asset Value attributable to the relevant Share class as set out above, which is accrued as of each Dealing Day and paid monthly in arrears in Euro. Share class name EUR DM Shares EUR FOF Shares EUR I Shares USD I Shares EUR R Shares USD R Shares CHF R Shares
Investment Management fee 1.00% 2.00% 1.50% 1.50% 2.00% 2.00% 2.00%
The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out of pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises. The Investment Management Fee incurred by the Funds amounted to EUR 487,031 for the period ended 31 December 2013 (year ended 30 June 2013: EUR 488,990; period ended 31 December 2012: EUR 108,097). HI Sibilla Macro Fund All fees and expenses relating to the establishment of the Fund and the fees of the professional advisers to the Fund (establishment expenses) not exceeding EUR 55,000 will be borne by the Fund. The Investment Manager is entitled to a fee, payable out of the assets of the Fund, based on a percentage per annum of the Net Asset Value attributable to the relevant Share class as set out above, which is accrued as of each Dealing Day and paid monthly in arrears in Euro. Share class name EUR DM Shares EUR FOF Shares EUR R Shares USD DM Shares USD R Shares CHF DM Shares CHF R Shares
Investment Management fee 1.00% 2.00% 2.00% 1.00% 2.00% 1.00% 2.00%
The Investment Management Fee incurred by the Funds amounted to EUR 40,499 for the period ended 31 December 2013. The Investment Manager shall also be entitled to be reimbursed all reasonable, properly vouched out of pocket expenses incurred by the Investment Manager in the performance of his duties and responsibilities under the Investment Management Agreement. The Investment Manager is responsible for the fees of any advisers it utilises.
24
HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued) For the period from 01 July 2013 to 31 December 2013 2. Fees and expenses (continued) b) Performance fees HI Numen Credit Fund From 19 October 2012, a performance fee in respect of each share class of the HI Numen Credit Fund, with the exception of the EUR Management share class and Sterling Management share class (the “Management Shares”, collectively the “Applicable Share Classes”), equal to 10% (in the case of the EUR I Initial Share class) or 15% (in the case of all Applicable Share Classes, other than the EUR I Initial Share class) of the increase of the NAV per share of the relevant Applicable Share Class outstanding in respect of each performance period above the average weekly Euro interbank interest offer rate (“EURIBOR”) from the end of the preceding performance period until the end of the current performance period, expressed as an annual percentage, plus 1.00%, to be adjusted for the actual number of days from the end of the preceding performance period until the end of the current performance period (the “Hurdle Performance”) and subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. For the period from 31 December 2013 the performance fee in respect of each share class of the HI Numen Credit Fund (with the exception of the EUR Management Shares) was payable at a rate of 15% in respect of the EUR I Shares and EUR R Shares and 10% in respect of EUR A Initial Shares and EUR I Initial Shares, when the performance of the Net Asset Value per Share of the relevant class exceeds the high water mark. No Performance Fees are payable in respect of the Management Shares of the HI Numen Credit Fund. The performance fee incurred by the Fund amounted to EUR 417,986 for the period ended 31 December 2013 (year ended 30 June 2013: EUR 913,631; period ended 31 December 2012: EUR 352,266) of which EUR 412,772 was outstanding as at 31 December 2013 (year ended 30 June 2013: EUR 378,026; period ended 31 December 2012: EUR 264,422). HI Principia Fund A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrue on each dealing date. As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance. The performance fee incurred by the Fund amounted to EUR 1,030,193 for the period ended 31 December 2013 (year ended 30 June 2013: EUR 255,668; period ended 31 December 2012: EUR 956) of which EUR 649,680 was outstanding as at 31 December 2013 (year ended 30 June 2013: EUR 632; period ended 31 December 2012: EUR 956). HI Sibilla Macro Fund A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the Net Asset Value per Share of the relevant applicable share class outstanding in respect of each performance period subject to a high water mark shall be payable. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrue on each dealing date. As the performance fee depends on the performance of the Net Asset Value per Share of the class in question, it is not possible to predict the amount of performance fee that will be payable and there is in effect, no maximum performance fee as it is impossible to quantify any outperformance in advance. The performance fee incurred by the Fund amounted to EUR 27,580 for the period ended 31 December 2013 of which EUR 27,580 was outstanding as at 31 December 2013. 25
HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued) For the period from 01 July 2013 to 31 December 2013 2. Fees and expenses (continued) c) Administrator’s fees The Company shall pay the Administrator out of the assets of each Fund an annual fee (fund accounting, trustee and transfer agent fees), calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 1% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 150,000 for the HI Numen Credit Fund and EUR 125,000 for the HI Principia Fund). The Administrator shall also be entitled to be repaid out of the assets of each Fund all of its reasonable out-of-pocket expenses, as agreed at normal commercial rates, incurred on behalf of each Fund. The Administrator’s fee incurred by the Fund amounted to EUR 199,770 for the period ended 31 December 2013 (year ended 30 June 2013: EUR 302,376; period ended 31 December 2012: 109,559). d) Custodian fees The Company shall pay the Custodian out of the assets of each Fund an annual fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.30% per annum of the Net Asset Value of each Fund (subject to a minimum annual fee of EUR 45,000). The Custodian is entitled to be repaid for all of its out-of-pocket expenses reasonably incurred on behalf of the Funds including transaction charges and sub-custodial fees. The Custodian’s fee incurred by the Fund amounted to EUR 24,501 for the period ended 31 December 2013 (year ended 30 June 2013: EUR 47,211; period ended 31 December 2012: EUR 23,780). e) Directors’ fees The Directors shall be entitled to a fee and remuneration for their services at a rate to be determined from time to time by the Directors provided that no Director may be paid in excess of EUR 25,000 in any one financial year without the approval of the Board. All Directors will be entitled to reimbursement by the Company of expenses properly incurred in connection with the business of the Company or the discharge of their duties. The Director’s fees incurred by the Company amounted to EUR 33,123 for the period ended 31 December 2013 (year ended 30 June 2013: EUR 45,480, period ended 31 December 2012: EUR 9,133). f) Audit fees The audit fees incurred by the Company amounted to EUR 11,790 (year ended 30 June 2013: EUR 18,000, period ended 31 December 2012: EUR 12,946). Fees relate solely to the audit of the Company. There were no other fees paid to KPMG during the period ended 31 December 2013 (year ended 30 June 2013: Nil; period ended 31 December 2012: Nil). g) Establishment expenses All fees and expenses relating to the establishment of the Funds and the fees of the professional advisers to the Funds (establishment expenses) not exceeding EUR 75,000 for the HI Numen Credit Fund and not exceeding EUR 55,000 for the HI Principia Fund and HI Sibilla Macro Fund will be borne by the Funds. Establishment fees are amortised over a 5 year period in the dealing NAV but are written off in the financial statements in the period that they were incurred. 3.
Adjustment to align to the valuation methodology as set out in the prospectus
The adjustment between the financial statements NAV and the valuation methodology set out in the prospectus is shown below: Hedge Invest International Funds plc
Net assets attributable to redeemable participating shareholders at the end of the period/year Adjustment to align to the investment valuation methodology as set out in the prospectus* Adjustment to establishment costs Total adjustment for the period/year Net assets attributable to redeemable participating shareholders at the end of the period/year 26
Company Total for the period ended 31 December 2013 EUR ‘000
Company Total for the year ended 30 June 2013 EUR ‘000
273,807
125,037
1,287
680
107 1,394
82 762
275,201
125,799
HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued) For the period from 01 July 2013 to 31 December 2013 3.
Adjustment to align to the valuation methodology as set out in the prospectus (continued)
HI Numen Credit Fund
Net assets attributable to redeemable participating shareholders at the end of the period/year Adjustment to align to the investment valuation methodology as set out in the prospectus* Adjustment to establishment costs Total adjustment for the period/year Net assets attributable to redeemable participating shareholders at the end of the period/year HI Principia Fund
Fund Total for the period ended 31 December 2013 EUR ‘000
Fund Total for the year ended 30 June 2013 EUR ‘000
180,484
84,316
1,133
606
14 1,147
18 624
181,631
84,940
Fund Total for the period ended 31 December 2013 EUR ‘000
Fund Total for the period ended 30 June 2013 EUR ‘000
67,640
40,721
152
74
53 205
64 138
67,845
40,859
Net assets attributable to redeemable participating shareholders at the end of the period Adjustment to align to the investment valuation methodology as set out in the prospectus* Adjustment to establishment costs Total adjustment for the period Net assets attributable to redeemable participating shareholders at the end of the period HI Sibilla Fund1
Fund Total for the period ended 31 December 2013 EUR ‘000
Net assets attributable to redeemable participating shareholders at the end of the period Adjustment to align to the investment valuation methodology as set out in the prospectus* Adjustment to establishment costs Total adjustment for the period Net assets attributable to redeemable participating shareholders at the end of the period 1
25,683 2 39 41 25,724
HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
*Under IFRS, investments are required to be valued at bid prices where these are available. In the reported net asset value, investments are valued at closing trade prices. 4.
Net asset value per share as per the valuation methodology as set out in the prospectus
HI Numen Credit Fund EUR A Shares* Net Asset Value Number of Shares in Issue Net asset value per share
31 December 2013
30 June 2013
€ 36,366,454 349,931 € 103.92
-
*EUR A share class launched on 19 July 2013, therefore no comparative data is available. 27
HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued) For the period from 01 July 2013 to 31 December 2013 4.
Net asset value per share as per the valuation methodology as set out in the prospectus (continued)
HI Numen Credit Fund (continued) EUR DM Shares
31 December 2013
30 June 2013
€ 23,452,586 218,064 € 107.55
€ 12,211,616 116,159 € 105.13
31 December 2013
30 June 2013
€ 2,614,543 23,529 € 111.12
€ 10,435,013 95,760 € 108.97
31 December 2013
30 June 2013
€ 26,894,073 234,140 € 114.86
€ 29,812,114 265,836 € 112.14
31 December 2013
30 June 2013
€ 35,863,127 319,615 € 112.21
€ 21,383,162 194,535 € 109.92
EUR Management Shares Net Asset Value Number of Shares in Issue Net asset value per share
31 December 2013 € 817,871 8,000 € 102.23
30 June 2013 € 275,716 2,500 € 110.29
EUR R Shares
31 December 2013
30 June 2013
Net Asset Value Number of Shares in Issue Net asset value per share
€ 51,067,606 462,260 € 110.47
€ 8,264,102 76,272 € 108.35
USD R Shares Net Asset Value Number of Shares in Issue Net asset value per share
31 December 2013 $ 2,866,514 26,399 $ 108.59
30 June 2013
CHF R Shares
31 December 2013
30 June 2013
CHF 3,032,519 28,164 CHF 107.67
CHF 1,534,416 14,511 CHF 105.74
31 December 2013
30 June 2013
€ 2,649,025 23,584 € 112.33
€ 1,847,992 17,977 € 102.80
Net Asset Value Number of Shares in Issue Net asset value per share EUR FOF Shares Net Asset Value Number of Shares in Issue Net asset value per share EUR I Initial Shares Net Asset Value Number of Shares in Issue Net asset value per share EUR I Shares Net Asset Value Number of Shares in Issue Net asset value per share
Net Asset Value Number of Shares in Issue Net asset value per share
$ 1,704,146 15,994 $ 106.55
HI Principia Fund EUR DM Shares Net Asset Value Number of Shares in Issue Net asset value per share
28
HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued) For the period from 01 July 2013 to 31 December 2013 4.
Net asset value per share as per the valuation methodology as set out in the prospectus (continued)
HI Principia Fund (continued) EUR FOF Shares
31 December 2013
30 June 2013
Net Asset Value Number of Shares in Issue Net asset value per share
€ 34,977,473 315,730 € 110.78
€ 32,614,204 319,992 € 101.92
EUR I Shares Net Asset Value Number of Shares in Issue Net asset value per share
31 December 2013 € 7,310,890 65,456 € 111.69
30 June 2013
EUR R Shares
31 December 2013
30 June 2013
€ 17,584,336 156,528 € 112.34
€ 3,561,428 34,445 € 103.40
31 December 2013
30 June 2013
$ 4,991,906 48,000 $ 104.00
-
31 December 2013
30 June 2013
$ 1,507,742 13,457 $ 112.04
$ 541,312 5,215 $ 103.79
31 December 2013
30 June 2013
CHF 743,153 6,640 CHF 111.92
CHF 636,232 6,186 CHF 102.84
Net Asset Value Number of Shares in Issue Net asset value per share USD I Shares* Net Asset Value Number of Shares in Issue Net asset value per share USD R Shares Net Asset Value Number of Shares in Issue Net asset value per share CHF R Shares Net Asset Value Number of Shares in Issue Net asset value per share
€ 1,901,504 18,526 € 102.64
*USD I share class launched on 14 October 2013, therefore no comparative data is available. HI Sibilla Macro Fund1 EUR DM Shares*
31 December 2013 € 4,062,742 40,326 € 100.75
Net Asset Value Number of Shares in Issue Net asset value per share EUR FOF Shares*
31 December 2013
Net Asset Value Number of Shares in Issue Net asset value per share 1 HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
€ 16,079,817 160,050 € 100.47
*EUR DM, EUR FOF, EUR R, USD DM, USD R, CHF DM and CHF R share classes launched on 29 November 2013, 22 November 2013, 29 November 2013, 20 December 2013, 6 December 2013, 20 December 2013 and 6 December 2013 respectively, therefore no comparative data is available. 29
HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued) For the period from 01 July 2013 to 31 December 2013 4.
Net asset value per share as per the valuation methodology as set out in the prospectus (continued)
HI Sibilla Macro Fund1 (continued) EUR R Shares*
31 December 2013 € 3,608,826 35,845 € 100.68
Net Asset Value Number of Shares in Issue Net asset value per share USD R Shares*
31 December 2013
Net Asset Value Number of Shares in Issue Net asset value per share
$ 701,809 6,974 $ 100.64
CHF DM Shares*
31 December 2013
Net Asset Value Number of Shares in Issue Net asset value per share
CHF 50,075 500 CHF 100.15
CHF R Shares*
31 December 2013
Net Asset Value Number of Shares in Issue Net asset value per share 1
CHF 620,986 6,204 CHF 100.09
HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
*EUR DM, EUR FOF, EUR R, USD DM, USD R, CHF DM and CHF R share classes launched on 29 November 2013, 22 November 2013, 29 November 2013, 20 December 2013, 6 December 2013, 20 December 2013 and 6 December 2013 respectively, therefore no comparative data is available. 5. Related parties Parties are considered to be related if one party has the ability to control the other party or is able to exercise significant influence over the other party, in making financial or operational decisions. Teddy Otto and John Skelly, Directors of the Company, are employees of Carne Global Financial Services Limited, who are the company secretary and also provide MLRO and foreign registration services to the Company. Francesco Rovati, a Director of the Company, is an employee of Hedge Invest SGR P.A, the Investment Manager. Funds managed by the Investment Manager owned 19.5% of the Company as at 31 December 2013. The Managers, Directors and employees of the Investment Manager and Sub-Investment Managers owned 2.19% of the Company as at 31 December 2013. Fees paid to the Investment Manager during the period and the balances outstanding at the period end are disclosed in note 2. There were no other related party transactions other than those disclosed in the financial statements.
30
HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued) For the period from 01 July 2013 to 31 December 2013 5. Related parties (continued) Transactions with connected parties The amendment to UCITS Notice 14 of the UCITS Notices published by the Central Bank of Ireland dated May 1, 2013 states that any transaction carried out with a Fund by a Promoter, Manager, Trustee, Investment Adviser and group companies of these (“connected parties”) must be carried out as if negotiated at arm’s length. Transactions must be in the best interests of the Shareholders. The Board of Directors are satisfied that there are arrangements (evidenced by written procedures) in place, to ensure that the obligations set out in the UCITS Notices are applied to all transactions with connected parties; and the Board is satisfied that transactions with connected parties entered into during the period complied with this obligation. 6. Contingent Liabilities As at 31 December 2013, the Company did not have any significant commitments or contingent liabilities, other than those disclosed in the financial statements (30 June 2013: Nil). 7. Soft Commissions During the period, the Investment Manager and the sub-Investment Managers have not entered into soft commission arrangements with brokers. 8. Exchange rates The following period ended EUR exchange rates have been used in this report: EUR= CHF DKK GBP SEK USD
31 December 2013 1.2255 7.4604 0.8320 8.8500 1.3779
30 June 2013 1.2299 7.4587 0.8570 8.7733 1.2998
31 December 2012 1.2068 7.4610 0.8111 8.5768 1.3184
9. Distributions There were no distributions made by the Company during the period ended 31 December 2013 (year ended 30 June 2013: nil) 10. Efficient Portfolio Management The Investment Manager of the Company has identified that forward exchange contracts may be used for both investment and hedging purposes. Those foreign exchange contracts entered into for hedging purposes are utilized to reduce foreign exchange rate risk and all other FDI are used for investment purposes. Transaction costs on the purchase and sale of forward exchange contracts are included in the purchase and sale price of the investment. These costs cannot be practically or reliably gathered as they are embedded in the cost of the investment and cannot be separately verified or disclosed. Details of all open forward exchange contracts at the period-end are disclosed in the Schedule of Investments.
31
HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE CONDENSED FINANCIAL STATEMENTS (continued) For the period from 01 July 2013 to 31 December 2013 11.
Significant events
On 1 July 2013, a new supplement was issued for each Fund in order to modify the performance fee methodology. On 11 July 2013, a new supplement for HI Numen Credit Fund was issued for the creation of the new EUR A Shares class. On 19 July 2013, Share class A EUR launched for the HI Numen Credit Fund. On 13 August 2013, a new supplement for HI Principia Fund was issued for the creation of the new USD I Shares and STG I Shares classes. On 14 October 2013, USD I Share class launched for HI Principia Fund. On 7 November 2013 the Central Bank approved the HI Sibilla Macro Fund and the supplement for the Fund. On 22 November 2013, HI Sibilla Macro Fund was launched and commenced operations on 25 November 2013. On 7 November 2013 the Central Bank approved a new version of the Prospectus of the Company with minor updates. On 22 November 2013, EUR FOF Share class launched for HI Sibilla Macro Fund. On 29 November 2013, EUR DM Share class and EUR R Share class launched for HI Sibilla Macro Fund. On 6 December 2013, USD R Share class and CHF R Share class launched for HI Sibilla Macro Fund. On 18 December 2013 the Central Bank approved the HI Core UCITS Fund and the supplement for the Fund. On 20 December 2013, USD DM Share class and CHF DM Share class launched for HI Sibilla Macro Fund. 12. Subsequent events There were no subsequent events since the period end. 13. Approval of Financial Statements The Directors approved the condensed interim financial statements on 12 February 2014.
32
HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS As at 31 December 2013 Transferable securities admitted to an official stock exchange GOVERNMENT FIXED COUPON SECURITIES
Country
Investments
Coupon rate
Maturity date
Holding
Fair value EUR '000
% of net asset value
4.38% 3.75%
15/07/2014 01/11/2015
34,800,000 3,500,000
33,668 3,216 36,884
18.66 1.78 20.44
0.05%
30/04/2014
3,000,000
2,999 2,999
1.66 1.66
4.15%
09/05/2014
10,000,000
9,876 9,876
5.47 5.47
-
-
10,465 5,625 16,090
5.80 3.11 8.91
65,849
36.48
Cyprus Cyprus (Republic of) Cyprus (Republic of) Cyprus total (2012: 11.40%) Germany Germany (Republic of) Germany total (2012: 1.80%) Greece Hellenic (Republic of) Greece total (2012: Nil) Portugal total (2012: 9.07%) Spain Catalonia (Republic of) Catalonia (Republic of) Spain total (2012: 2.71%)
2.13% 3.88%
01/10/2014 07/04/2015
12,900,000 5,550,000
Total investment in government fixed coupon securities (2012: 15.91%) CORPORATE FIXED COUPON SECURITIES Ireland Baggot Securities Bank of Ireland Ireland total (2012: 7.22%)
10.24% 10.00%
31/12/2049 12/02/2020
8,000,000 6,005,000
8,410 6,966 15,376
4.66 3.86 8.52
1.00% 4.75% 8.50% 2.13%
10/05/2014 24/03/2014 15/11/2019 25/11/2020
14,800,000 15,403,923 2,500,000 1,000,000
17,509 15,486 2,604 1,004 36,603
9.70 8.58 1.44 0.56 20.28
0.00% 3.13%
30/12/2099 02/12/2018
21,800,000 500,000
4,578 530 5,108
2.54 0.29 2.83
Italy Risanamento Banco Popolare Marcolin Azimut Holding Italy total (2012: 6.20%) Luxembourg Bank of New York Mellon Luxembourg Espirito Santo Financial Group Luxembourg total (2012: Nil)
33
HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2013 Transferable securities admitted to an official stock exchange (continued) CORPORATE FIXED COUPON SECURITIES (continued) Fair value EUR '000
% of net asset value
3,307,000 450,014
3,373 14 3,387
1.87 0.01 1.88
6,900,000
6,877 6,877
3.81 3.81
Spain total (2012: 2.69%)
-
-
Supranational total (2012: 14.38%)
-
-
15,395 15,395
8.53 8.53
82,746
45.85
2,556 2,556
1.42 1.42
-
-
Country
Investments
Coupon rate
Maturity date
Holding
10.75% -
15/11/2015 15/12/2015
4.00%
16/03/2015
Netherlands Unify Germany Holdings Boats Investments Netherlands Netherlands total (2012: Nil) Portugal Rede Ferroviaria Nacional Portugal total (2012: Nil)
United Kingdom Co-Operative Bank United Kingdom total (2012: 7.21%)
2.38%
23/10/2015
15,923,000
Total investment in corporate fixed coupon securities (2012: 37.70%) CORPORATE VARIABLE COUPON SECURITIES1 France Societe Generale France total (2012: Nil)
7.88%
18/12/2023
3,500,000
Italy total (2012: 3.67%) Luxembourg Controlinveste International Finance Luxembourg total (2012: Nil)
2.75%
28/01/2015
3,117,000
3,060 3,060
1.69 1.69
7.13%
28/11/2023
2,000,000
1,997 1,997
1.11 1.11
11.30%
27/07/2014
5,000,000
6,232 6,232
3.45 3.45
13,845
7.67
162,440
90.00
Portugal Banco Espirito Santo Portugal total (2012: 7.97%) Spain Santander Finance Preferred Spain total (2012: 0.42%)
Total investment in corporate variable coupon securities (2012: 12.06%) Total bonds (2012: 81.28%)
34
HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2013 Financial derivative instruments OPTIONS PURCHASED
Notional value Description
Counterparty
Currency
Maturity date
100 Euro Stoxx Call 3025 JP Morgan 50 Dax Call 9200 JP Morgan Total unrealised gain on options purchased (2012: Nil)
EUR EUR
17/01/2014 17/01/2014
Unrealised gain EUR '000
% of net asset value
100 104 204
0.05 0.06 0.11
Unrealised gain EUR '000
% of net asset value
447 430 357 197 196 178 78 25 5 1,913
0.25 0.24 0.20 0.11 0.11 0.10 0.04 0.01 0.00 1.06
Unrealised loss EUR '000
% of net asset value
(90) (90)
(0.05) (0.05)
Unrealised gain EUR '000
% of net asset value
2,382 2,382
1.32 1.32
CREDIT DEFAULT SWAPS
Notional value Currency
Counterparty
5,000,000 EUR Morgan Stanley 6,500,000 EUR Barclays Bank 2,000,000 USD J.P. Morgan 5,000,000 EUR J.P. Morgan 5,000,000 EUR J.P. Morgan 5,000,000 EUR J.P. Morgan 2,000,000 EUR J.P. Morgan 5,000,000 EUR Morgan Stanley 5,000,000 EUR Morgan Stanley Total unrealised gain on credit default swaps (2012: 0.13%)
Notional value Currency
Counterparty
5,000,000 USD Morgan Stanley Total unrealised loss on credit default swaps (2012: Nil)
Maturity date
Buy/Sell
20/12/2015 20/03/2019 20/03/2018 20/12/2014 20/12/2014 20/12/2014 20/12/2014 20/03/2019 20/03/2019
Sell Buy Buy Sell Sell Sell Sell Buy Buy
Maturity date
Buy/Sell
20/03/2019
Buy
CREDIT INDEX SWAPS
Notional value
Currency
Counterparty
25,000,000 EUR Citibank Total unrealised gain on credit index swaps (2012: Nil)
35
Maturity date
Buy/Sell
20/12/2018
Sell
HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2013 Financial derivative instruments (continued) FORWARD CURRENCY CONTRACTS
Amount sold
Maturity date
EUR J.P. Morgan 10,948,106 USD (15,000,000) EUR J.P. Morgan 2,835,580 USD (3,900,000) CHF J.P. Morgan 1,471,000 EUR (1,199,993) Total unrealised gain on forward currency contracts (2012: Nil)
23/01/2014 31/01/2014 31/01/2014
Currency Counterparty
Amount purchased Currency
Amount sold
Maturity date
USD J.P. Morgan 000,111 EUR (98,900) EUR J.P. Morgan 900,508 CHF (1,000,000) USD J.P. Morgan 0,001,111 EUR (1,984,920) CHF J.P. Morgan 0,0,0,111 EUR (1,278,670) USD J.P. Morgan 0,111,111 EUR (3,641,661) CHF J.P. Morgan 0,111,111 EUR (4,095,004) EUR J.P. Morgan 0,501,008 CHF (2,970,000) USD J.P. Morgan 0,011,111 EUR (1,829,759) EUR J.P. Morgan 0,059,,00 CHF (8,780,000) EUR J.P. Morgan 5,100,0,9 CHF (4,940,000) USD J.P. Morgan 0,011,111 EUR (5,486,467) EUR J.P. Morgan ,,010,,50 GBP (5,300,000) Total unrealised loss on forward currency contracts (2012: Nil)
31/01/2014 28/02/2014 31/01/2014 31/01/2014 23/01/2014 28/02/2014 28/02/2014 23/01/2014 28/02/2014 28/02/2014 23/01/2014 31/01/2014
Currency Counterparty
Amount desahcrup Currency
Unrealised gain EUR '000
% of net asset value
62 5 1 68
0.04 0.00 0.00 0.04
Unrealised loss EUR '000
% of net asset value
(1) (1) (4) (5) (13) (13) (14) (15) (19) (21) (44) (68) (218)
(0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.02) (0.04) (0.12)
Unrealised gain EUR '000
% of net asset value
51 51
0.03 0.03
51
0.03
FUTURES
Country
No. of contracts
Currency
Notional Amount
(55)
EUR
100,000
European Union Euro bond European Union total
Total unrealised gain on futures contracts (2012: Nil)
36
HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2013
Fair value EUR '000
% of net asset value
167,058
92.56
(308)
(0.17)
Cash and cash equivalents2
12,076
6.69
Other assets and liabilities
1,658
0.92
180,484
100.00
Total financial assets at fair value through profit or loss Total financial liabilities at fair value through profit or loss
Net assets attributable to redeemable participating shareholders
% of total current assets
Analysis of total current assets Transferable securities admitted to an official stock exchange Financial derivative instruments Other assets Total current assets 1
For floating rate notes the coupon rate is at 31 December 2013.
2
All cash holdings are held with J.P. Morgan Bank (Ireland) plc
37
88.86 8.61 2.53 100.00
HEDGE INVEST INTERNATIONAL FUNDS plc HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS As at 31 December 2013 Transferable securities admitted to an official stock exchange EQUITIES Fair value EUR '000
% of net asset value
261,300 308,000 165,200
3,881 3,154 3,120 10,155
5.74 4.66 4.61 15.01
50,900 69,900 81,500 350,700 26,700
3,690 3,126 2,356 2,268 1,245 12,685
5.46 4.62 3.48 3.35 1.84 18.75
Greencore Group
1,000,000
2,668 2,668
3.94 3.94
Abengoa
2,748,800
5,800 5,800
8.58 8.58
437,000 94,100
2,447 2,339 4,786
3.62 3.46 7.08
163,000
3,206 3,206
4.74 4.74
Total investment in equities
39,300
58.10
Total equities
39,300
58.10
Unrealised gain EUR '000
% of net asset value
303 303
0.45 0.45
Country
Investments
Holding
CNP Assurances UBISOFT Entertainment Areva
France
France total Germany Vossloh Rheinmetall Aareal Bank Deutz SHW Germany total Ireland Ireland total Spain Spain total Sweden Eniro Getinge Sweden total Switzerland Gategroup Holding Switzerland total
Financial derivative instruments OPTIONS PURCHASED
Notional value Description 2,036 Euro Stoxx 50 Index Put 2750 Total unrealised gain on options purchased
Counterparty Currency J.P. Morgan EUR
38
Maturity date 21/03/2014
HEDGE INVEST INTERNATIONAL FUNDS plc HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2013 Financial derivative instruments (continued) CONTRACTS FOR DIFFERENCE
Country
Investments
Unrealised gain EUR '000
% of net asset value
127,900 94,300 15,000 89,772 (219,600)
654 653 84 80 59 1,530
0.97 0.96 0.12 0.12 0.09 2.26
557,800
51 51
0.08 0.08
1,581
2.34
Unrealised loss EUR '000
% of net asset value
61,100 (10,400) (6,900) (22,100) (19,300) (206,850) (46,600) (82,800) (34,100) (18,350) (40,700)
(24) (37) (38) (41) (70) (86) (89) (98) (104) (138) (152) (877)
(0.04) (0.06) (0.06) (0.06) (0.10) (0.13) (0.13) (0.15) (0.15) (0.20) (0.22) (1.30)
(21,300)
(26) (26)
(0.04) (0.04)
(903)
(1.34)
Holding
European Union Faurecia Orpea Christian Dior Groupe Fnac Mediaset Espana Comunicacion European Union total United Kingdom Esure Group United Kingdom total Total unrealised gain on contracts for difference
Country
Investments
Holding
European Union Electricite De France Pfeiffer Vacuum Technology UBS Sodexo Siemens Infineon Technologies ProSiebenSat.1 Media Aalberts Industries Fraport AG Frankfurt Airport Services Worldwide Hugo Boss Amadeus IT Holding European Union total Switzerland Aryzta Switzerland total Total unrealised loss on contracts for difference
39
HEDGE INVEST INTERNATIONAL FUNDS plc HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2013 Financial derivative instruments (continued) FORWARD CURRENCY CONTRACTS
Currency
Amount Counterparty purchased Currency
GBP J.P. Morgan 2,218,713 EUR EUR J.P. Morgan 2,576,387 GBP EUR J.P. Morgan 2,328,591 GBP CHF J.P. Morgan 670,975 EUR EUR J.P. Morgan 52,255 USD USD J.P. Morgan 160,000 EUR USD J.P. Morgan 11,965 EUR Total unrealised gain on forward currency contracts
Currency
Amount sold
Maturity date
(2,647,566) (2,129,899) (1,933,196) (545,508) (70,839) (115,833) (8,662)
08/01/2014 08/01/2014 08/01/2014 07/01/2014 07/01/2014 07/01/2014 07/01/2014
Amount Counterparty purchased Currency
Amount sold
Maturity date
(9,444) (40,891) (72,938) (1,069,251) (184,086) (4,733,140) (6,969,765) (35,818,465) (1,049,769) (3,568,306)
07/01/2014 07/01/2014 07/01/2014 08/01/2014 08/01/2014 08/01/2014 08/01/2014 08/01/2014 07/01/2014 07/01/2014
No of contracts
Currency
Notional amount
(46) (63)
EUR EUR
10 10
USD J.P. Morgan 12,965 EUR CHF J.P. Morgan 50,000 EUR USD J.P. Morgan 99,765 EUR EUR J.P. Morgan 119,403 SEK EUR J.P. Morgan 217,705 GBP EUR J.P. Morgan 526,841 SEK EUR J.P. Morgan 5,677,785 CHF EUR J.P. Morgan 4,034,429 SEK USD J.P. Morgan 1,421,859 EUR USD J.P. Morgan 4,833,092 EUR Total unrealised loss on forward currency contracts
Unrealised gain EUR '000
% of net asset value
19 17 5 2 1 -1 -1 44
0.03 0.02 0.01 0.06
Unrealised loss EUR '000
% of net asset value
-1 -1 (1) (1) (3) (8) (10) (13) (18) (61) (115)
(0.01) (0.02) (0.02) (0.03) (0.09) (0.17)
Unrealised loss EUR '000
% of net asset value
(124) (140) (264)
(0.18) (0.21) (0.39)
(264)
(0.39)
FUTURES
Country European Union IBEX 35 Index January 2014 CAC 40 Index January 2014 European Union total
Total unrealised loss on futures contracts (2012: Nil) 1
Investments that are less that EUR 500 have been rounded down to zero.
40
HEDGE INVEST INTERNATIONAL FUNDS plc HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2013 Fair value EUR '000
% of net asset value
Total financial assets at fair value through profit or loss
41,228
60.95
Total financial liabilities at fair value through profit or loss
(1,282)
(1.90)
Cash and cash equivalents1
26,289
38.87
Other assets and liabilities
1,405
2.08
67,640
100.00
Net assets attributable to redeemable participating shareholders
% of total current assets
Analysis of total current assets Transferable securities admitted to an official stock exchange Financial derivative instruments Other assets Total current assets 1
56.24 2.76 41.00 100.00
The main cash accounts are held with J.P. Morgan (Ireland) plc. Other accounts are held with Lloyds TSB (deposit of EUR7,000,000); Sumitomo Mitsui Bank (deposit of EUR7,000,132); UBS AG (swap counterparty – cash collateral of EUR2,425,900); and Bank of America Merrill Lynch (swap counterparty – cash collateral of EUR4,030,300).
41
HEDGE INVEST INTERNATIONAL FUNDS plc HI SIBILLA MACRO FUND1 SCHEDULE OF INVESTMENTS As at 31 December 2013 Transferable securities admitted to an official stock exchange EQUITIES
Country
Investments
Fair value EUR '000
% of net asset value
Currency
Holding
USD
19,870
257 257
1.00 1.00
USD USD USD
48,780 30,600 15,300
261 143 115 519
1.01 0.56 0.45 2.02
USD USD
34,140 40,969
307 269 576
1.20 1.05 2.25
USD USD USD USD USD USD USD
13,247 11,949 24,409 31,500 34,140 6,460 8,000
393 327 319 282 278 250 92 1,941
1.53 1.27 1.24 1.10 1.08 0.97 0.36 7.55
Total investment in equities
3,293
12.82
Total equities
3,293
12.82
Unrealised gain EUR '000
% of net asset value
11 5 3 -2 19
0.05 0.02 0.01 0.08
Luxembourg ArcelorMittal Luxembourg total Marshall Islands Paragon Shipping Baltic Trading Safe Bulkers Marshall Islands total Spain Banco Bilbao Vizcaya Argentaria Banco Santander Spain total United States General Motors Co Freeport-McMoRan Copper & Gold Cloud Peak Energy Stillwater Mining Co GrafTech International Nucor Corp Taser International United States total
Financial derivative instruments FORWARD CURRENCY CONTRACTS
Currency
Amount Counterparty purchased
Maturity date
(10,094,639) (1,137,277,800) (1,286,453) (65,313)
21/01/2014 21/01/2014 21/01/2014 10/01/2014
Currency
USD Citibank 3,357,047 PLN USD Citibank 5,275,714 HUF USD Citibank 1,776,990 EUR USD Citibank 90,000 EUR Total unrealised gain on forward currency contracts 1
Amount sold
HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
2
Investments that are less that EUR 500 have been rounded down to zero. 42
HEDGE INVEST INTERNATIONAL FUNDS plc HI SIBILLA MACRO FUND1 SCHEDULE OF INVESTMENTS (continued) As at 31 December 2013 Financial derivative instruments FORWARD CURRENCY CONTRACTS
Currency
Amount Counterparty purchased
Amount sold
Maturity date
(40,861) (98,240) (124,278) (409,353) (320,793) (45,446,130) (919,658) (4,271,589)
10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 21/01/2014 10/01/2014 21/01/2014
Currency
CHF Citibank 50,000 EUR CHF Citibank 120,000 EUR USD Citibank 170,000 EUR CHF Citibank 500,000 EUR USD Citibank 440,000 EUR USD Citibank 3,460,980 MXN USD Citibank 1,258,000 EUR USD Citibank 3,488,521 NZD Total unrealised loss on forward currency contracts
Total financial assets at fair value through profit or loss Total financial liabilities at fair value through profit or loss Cash, cash equivalents and cash collateral2 Other assets and liabilities Net assets attributable to redeemable participating shareholders
Unrealised loss EUR '000
% of net asset value
-3 -3 (1) (1) (2) (3) (7) (16) (30)
(0.01) (0.01) (0.03) (0.07) (0.12)
Fair value EUR '000
% of net asset value
3,312
12.90
(30)
(0.12)
21,031
81.89
1,370
5.33
25,683
100.00 % of total current assets
Analysis of total current assets Transferable securities admitted to an official stock exchange Financial derivative instruments Other assets Total current assets 1
12.48 0.07 87.45 100.00
HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
2
All cash holdings are held with J.P. Morgan Bank (Ireland) plc, other than a balance of EUR 678,386 held as security by counterparty for derivative contracts, BNP Paribas. Cash balances of EUR 725,718 is held as cash collateral for FX forwards by Citi.. 3
Investments that are less that EUR 500 have been rounded down to zero.
43
HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the period ended 31 December 2013 The 20 largest purchases Holding 36,800,000 30,800,000 30,005,000 21,000,000 15,403,923 15,923,000 11,300,000 15,900,000 12,500,000 11,500,000 10,000,000 10,000,000 10,000,000 14,000,000 8,000,000 8,000,000 6,900,000 6,005,000 5,000,000 6,000,000
Investments Cyprus (Republic of) Germany (Republic of) US Treasury Note Germany (Republic of) Banco Popolare Co-Operative Bank Risanamento Catalonia (Republic of) Portugal (Republic of) Spain (Kingdom of) Portugal (Republic of) Italy (Republic of) Hellenic (Republic of) Cyprus (Republic of) Baggot Securities Germany (Republic of) Rede Ferroviaria Nacional Bank of Ireland Santander Finance Preferred Sanofi
Coupon rate 4.38% 0.03% 2.50% 0.05% 4.75% 2.38% 1.00% 2.13% 1.21% 3.30% 5.65% 1.17% 3.37% 4.63% 10.24% 1.50% 4.00% 10.00% 11.30% 2.50%
Maturity date 15/07/2014 30/04/2014 15/08/2023 12/06/2013 24/03/2014 23/10/2015 10/05/2014 01/10/2014 21/02/2014 30/07/2016 15/02/2024 14/08/2014 09/05/2014 03/02/2020 31/12/2049 15/05/2023 16/03/2015 12/02/2020 27/07/2014 14/11/2023
Cost EUR ’000 34,381 30,802 21,865 21,000 15,488 14,980 13,050 12,579 12,437 11,832 9,988 9,890 9,795 8,945 8,400 7,888 6,837 6,779 6,190 5,970
Investments Germany (Republic of) US Treasury Note Portugal (Republic of) Spain (Kingdom of) Italy (Republic of) Portugal (Republic of) Cyprus (Republic of) Allied Irish Banks Sanofi OTE OTE Banco Popular Espanol AIB Mortgage Bank AT&T AT&T UnityMedia Hessen Portugal (Republic of) Raiffeisenlandesbank Catalonia (Republic of) Italy (Republic of)
Coupon rate 0.03% 2.50% 1.21% 3.30% 1.17% 4.38% 4.63% 5.63% 2.50% 7.25% 7.25% 11.50% 3.13% 2.65% 3.50% 6.25% 4.95% 5.88% 2.13% 0.42%
Maturity date 30/04/2014 15/08/2023 21/02/2014 30/07/2016 14/08/2014 16/06/2014 03/02/2020 12/11/2014 14/11/2023 08/04/2014 12/02/2015 10/10/2018 10/09/2018 17/12/2021 17/12/2025 15/01/2029 25/10/2023 27/11/2023 01/10/2014 31/01/2014
Proceeds EUR ’000 27,790 21,944 12,448 11,833 9,935 8,071 8,025 6,700 5,973 5,600 5,251 5,212 5,025 4,984 4,978 4,941 4,556 4,482 4,077 3,996
The 20 largest sales Holding 27,800,000 30,005,000 12,500,000 11,500,000 10,000,000 8,000,000 10,000,000 6,500,000 6,000,000 5,500,000 5,000,000 5,100,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 4,500,000 5,000,000 4,000,000
UCITS 8.2 requires a Schedule of Portfolio changes during the period. These are defined as aggregate purchases of a security exceeding one per cent of the total value of purchases for the period and aggregate disposals greater than one per cent of the total value of sales. At a minimum the largest 20 purchases and 20 sales must be given or all purchases and sales if less than 20. A full listing of the portfolio changes for the period is available, upon request, at no extra cost from the Administrator. 44
HEDGE INVEST INTERNATIONAL FUNDS plc HI PRINCIPIA FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the period ended 31 December 2013 The 20 largest purchases Holding 3,257,800 240,900 40,500 113,300 107,600 1,026,950 65,000 50,900 261,300 534,300 34,600 164,900 1,439,500 308,000 165,200 59,900 136,450 681,000 94,100 1,015,000
Investments Abengoa Aareal Bank Novo Nordisk Rheinmetall Stada Arzneimittel Koninklijke BAM Groep AMS Vossloh CNP Assurances Deutz Fresenius SE & Co Rhoen Klinikum Greencore Group plc UBISOFT Entertainment Areva LEG Immobilien Enagas AZ Electronic Materials Getinge Heidelberger Druckmaschinen
Cost EUR ’000 6,060 5,763 5,002 4,559 3,935 3,822 3,669 3,563 3,519 3,397 3,212 3,185 3,166 3,003 2,688 2,509 2,407 2,263 2,211 1,986
Investments AMS AZ Electronic Materials Novo Nordisk Enagas Aareal Bank Stada Arzneimittel Heidelberger Druckmaschinen Koninklijke BAM Groep Gamesa Corp Tecnologica Rhoen Klinikum Fresenius SE & Co Unibail-Rodamco ASM International Aurubis LEG Immobilien Swedish Match Lanxess Andritz FLSmidth & Co CGG
Proceeds EUR ’000 5,838 5,614 5,109 4,320 4,079 3,972 3,763 3,741 3,571 3,282 3,259 3,107 2,795 2,553 2,466 2,436 2,395 2,269 2,171 1,998
The 20 largest sales Holding 83,300 1,304,000 40,500 239,450 159,400 107,600 1,922,000 1,026,950 700,000 164,900 34,600 17,000 115,000 58,600 59,900 90,800 52,050 53,500 53,300 109,500
UCITS 8.2 requires a Schedule of Portfolio changes during the period. These are defined as aggregate purchases of a security exceeding one per cent of the total value of purchases for the period and aggregate disposals greater than one per cent of the total value of sales. At a minimum the largest 20 purchases and 20 sales must be given or all purchases and sales if less than 20. A full listing of the portfolio changes for the period is available, upon request, at no extra cost from the Administrator. 45
HEDGE INVEST INTERNATIONAL FUNDS plc HI SIBILLA MACRO FUND1 SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the period ended 31 December 2013 The 20 largest purchases Holding 18,000 25,000 39,320 34,590 13,247 11,949 48,700 34,140 15,539 31,500 34,140 10,600 3,976 40,969 19,870 6,460 48,780 22,500 10,000 30,600
Investments Transocean United States Oil Fund Peabody Energy Corp. Cloud Peak Energy General Motors Co Freeport-McMoRan Copper & Gold JetBlue Airways Corp. Banco Bilbao Vizcaya Argentaria Cliffs Natural Resources Stillwater Mining Co GrafTech International Allegheny Technologies Apache Corp. Banco Santander ArcelorMittal Nucor Corp Paragon Shipping Cia de Minas Buenaventura United States Steel Corp. Baltic Trading
Cost EUR ’000 656 622 530 443 396 303 300 289 285 278 272 264 262 257 246 243 223 200 192 137
Investments Transocean United States Oil Fund Peabody Energy Corp. JetBlue Airways Corp. Cliffs Natural Resources Allegheny Technologies Apache Corp Cia de Minas Buenaventura United States Steel Corp. Cloud Peak Energy Barrick Gold Corp.
Proceeds EUR ’000 639 611 551 303 302 272 250 194 192 136 95
The 11 largest sales2 Holding 18,000 25,000 39,320 48,700 15,539 10,600 3,976 22,500 10,000 10,181 7,800
UCITS 8.2 requires a Schedule of Portfolio changes during the period. These are defined as aggregate purchases of a security exceeding one per cent of the total value of purchases for the period and aggregate disposals greater than one per cent of the total value of sales. At a minimum the largest 20 purchases and 20 sales must be given or all purchases and sales if less than 20. A full listing of the portfolio changes for the period is available, upon request, at no extra cost from the Administrator. 1
HI Sibilla Macro Fund launched on 22 November 2013, commenced operations on 25 November 2013.
2
There are only 11 sales.
46