Unaudited Interim Financial Statements

HEDGE INVEST INTERNATIONAL FUNDS plc . GENERAL INFORMATION Board of Directors Sub-Investment Manager David McGeough (Irish resident)1 (HI Sibilla Macr...

0 downloads 177 Views 2MB Size
Unaudited Interim Financial Statements For the period from 01 July 2017 to 31 December 2017 Hedge Invest International Funds plc

HEDGE INVEST INTERNATIONAL FUNDS plc CONTENTS

Page

General information

1

Background

2

Investment Manager’s report

4

Statement of Financial Position

17

Statement of Comprehensive Income

21

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares

23

Statement of Cash Flows

25

Notes to the financial statements

27

Schedules of investments

47

Other information

82

Securities Financing Transactions

92

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 D02 YT22 Ireland

Company Secretary Carne Global Financial Services Limited 2nd Floor, Block E Iveagh Court Harcourt Road Dublin D02 YT22 Ireland

Legal Advisers Dechert 3 George's Dock International Financial Services Centre Dublin D01 X5X0 Ireland

Administrator, Registrar and Transfer Agent J.P. Morgan Administration Services (Ireland) Limited JPMorgan House International Financial Services Centre Dublin D01 W213 Ireland

Depositary J.P. Morgan Bank (Ireland) plc JPMorgan House International Financial Services Centre Dublin D01 W213 Ireland

Promoter, Investment Manager and Distributor Hedge Invest SGR P.A. Via Vittor Pisani 22 20124 Milan Italy

Independent Auditors KPMG Chartered Accountants, Statutory Audit Firm 1 Harbourmaster Place International Financial Services Centre Dublin D01 F6F5 Ireland

Sub-Investment Manager (HI Numen Credit Fund and HI Numen Bear Rates Fund) (up to 30 September 2017) Numen Investments Limited Portomaso Tower St Julians STJ 4011 Malta

Swiss Representative and Paying Agent Société Générale, Paris, Zürich Branch Talacker 50, P.O. Box 5070 CH-8021 Zürich Switzerland

Numen Capital LLP 2nd Floor 150 Brompton Road London SW3 United Kingdom (from 1 October 2017) Numen Capital LLP 2nd Floor 150 Brompton Road London SW3 United Kingdom Sub-Investment Manager (HI Principia Fund and HI Africa Opportunities Fund) Principia Investment Management Limited 606-609 Salisbury House 29, Finsbury Circus London EC2M 7AQ United Kingdom

The prospectus, the constitution , 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 from the Swiss Representative, Société Générale, Paris, Zürich Branch, Talacker 50, P.O. Box 5070, CH-8021 Zürich, Switzerland. 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 Act 2014, the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (the “UCITS Regulations”), the Central Bank (Supervision and Enforcement) Act 2013 (Section 48 (1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the "Central Bank UCITS Regulations") and with registration number 485407. Hedge Invest SGR P.A. was the promoter of the Company as at period ended 31 December 2017. 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 accordance with the Central Bank UCITS Regulations. 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 six Funds in operation at 31 December 2017 comprising the HI Numen Credit Fund, HI Principia Fund, HI Sibilla Macro Fund, HI Core UCITS Fund, HI Africa Opportunities Fund and HI Numen Bear Rates 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.

Fund Name HI Numen Credit Fund EUR A Shares EUR DM Shares EUR FOF Shares EUR I Initial Shares EUR I Shares EUR M Shares EUR R Shares USD I2 Shares USD R Shares CHF R Shares EUR D Shares USD D Shares CHF D Shares CHF DM2 Shares EUR DM2 Shares EUR I2 Shares USD DM2 Shares GBP I2 Shares GBP DM2 Shares

Period ended 31 December 2017 Annualised TER (%) (including performance fees)

Period ended 31 December 2017 Annualised TER (%) (excluding performance fees)

1.30% 1.30% 2.05% 1.30% 1.80% 0.30% 2.05% 1.80% 2.05% 2.07% 2.25% 2.25% 2.25% 1.60% 1.60% 1.80% 1.60% 1.80% 1.59%

1.30% 1.30% 2.05% 1.30% 1.80% 0.30% 2.05% 1.80% 2.05% 2.07% 2.25% 2.25% 2.25% 1.60% 1.60% 1.80% 1.60% 1.80% 1.59%

2

Period ended 31 December 2016 Annualised TER (%) (including performance fees) 1.19% 1.18% 1.93% 1.19% 1.68% 0.18% 1.93% 1.70% 1.93% 1.94% 2.14% 2.13% 2.11% 1.48% 1.48% 1.69% 1.49% 1.69% 1.49%

Period ended 31 December 2016 Annualised TER (%) (excluding performance fees) 1.19% 1.18% 1.93% 1.19% 1.68% 0.18% 1.93% 1.70% 1.93% 1.94% 2.14% 2.13% 2.11% 1.48% 1.48% 1.69% 1.49% 1.69% 1.49%

HEDGE INVEST INTERNATIONAL FUNDS plc BACKGROUND (continued) Total expense ratio (continued)

Fund Name HI Principia Fund EUR DM Shares EUR FOF Shares EUR I Shares EUR R Shares GBP M Shares1 USD DM Shares USD R Shares CHF R Shares HI Sibilla Macro Fund EUR DM Shares EUR FOF Shares EUR R Shares USD R Shares CHF DM Shares CHF R Shares HI Core UCITS Fund EUR DM Shares EUR I Shares EUR R Shares USD DM Shares USD R Shares CHF DM Shares2 CHF R Shares3 HI Africa Opportunities Fund EUR DM Shares EUR FOF Shares EUR I Shares EUR D Shares USD D Shares USD DM Shares CHF D Shares4 HI Numen Bear Rates Fund EUR FOF Shares EUR D Shares5 EUR Initial Shares6

Period ended 31 December 2017 Annualised TER (%) (including performance fees)

Period ended 31 December 2017 Annualised TER (%) (excluding performance fees)

Period ended 31 December 2016 Annualised TER (%) (including performance fees)

Period ended 31 December 2016 Annualised TER (%) (excluding performance fees)

2.86% 3.62% 3.24% 3.58% 0.32% 3.31% 4.13% 3.41%

1.31% 2.31% 1.81% 2.31% 0.32% 1.31% 2.31% 2.31%

1.37% 2.36% 1.86% 2.36% 1.48% 2.37% 2.36%

1.36% 2.36% 1.86% 2.35% 1.36% 2.35% 2.36%

1.34% 2.34% 2.34% 2.34% 1.34% 2.34%

1.34% 2.34% 2.34% 2.34% 1.34% 2.34%

1.44% 2.44% 2.44% 2.44% 1.39% 2.42%

1.44% 2.44% 2.44% 2.44% 1.39% 2.42%

1.02% 1.70% 2.21% 1.29% 2.29% 1.07% 2.36%

0.99% 1.70% 2.21% 0.99% 2.20% 1.07% 2.36%

1.12% 1.82% 2.33% 1.15% 2.30% 0.96% -

1.12% 1.82% 2.33% 1.15% 2.30% 0.96% -

2.99% 3.68% 3.25% 3.78% 3.78% 2.83% 4.08%

2.99% 3.68% 3.25% 3.78% 3.78% 2.83% 4.08%

2.36% 3.08% 2.55% 3.19% 3.07% 2.36% 3.18%

2.36% 3.08% 2.55% 3.19% 3.07% 2.36% 3.18%

2.95% 3.25% 1.92%

2.95% 3.25% 1.92%

-

-

1

On 15 November 2017, GBP M Share class was launched for HI Principia Fund.

2

On 30 May 2017, CHF DM Share class fully redeemed and was relaunched on 6 October 2017 for HI Core UCITS Fund.

3

On 28 November 2017, CHF R Share class was launched for HI Core UCITS Fund.

4

On 28 April 2017, CHF D Share class was fully redeemed for HI Africa Opportunities Fund.

5

On 24 November 2017, EUR D Share class was fully redeemed for HI Numen Bear Rates Fund.

6

On 27 July 2017, EUR Initial Share class was launched for HI Numen Bear Rates Fund.

3

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT HI Numen Credit Fund HI Numen Credit Fund’s objective is to achieve a 6% return with volatility of 3.5%-4% through different strategies: low volatility selected longs, opportunistic trading of volatile super liquid credit instruments, longs and shorts in special situations with asymmetric risk/reward (buy back, mergers, restructuring). Performance review HI Numen Credit Fund EUR I share class increased by 0.96% on a net basis from the start of July 2017 to the end of December 2017. The EUR I class is used for representative purposes. HI Numen Credit Fund - class EUR I Date

Class EUR I NAV

Class EUR I Monthly return

Total Fund AUM (EUR)

31/07/2017 31/08/2017 29/09/2017 31/10/2017 30/11/2017 29/12/2017

112.81 112.77 113.32 114.08 113.48 113.53

0.32% -0.04% 0.49% 0.67% -0.53% 0.04%

450,544,707.94 439,897,895.22 432,404,524.94 423,022,966.68 391,635,162.25 392,640,077.56

Exposure July 2017: Net return for the month of July was +0.32%. The best performer was our position in BMPS bonds. We also made money in our financial credit portfolio, while we lost money on UK CDS and in our L/S equity financials portfolio. Our Monte bonds contributed +46bps on the month. The bank published its new business plan post finalisation of its precautionary recap on July 5th. Looking forward, all Monte bonds will be converted into unlisted equity in early August, with a re-listing planned end September/early October. Elsewhere in financials, our Iberian banks credit portfolio of LT2 and AT1 bonds generated +45bps, supported by recovery post the Banco Popularrelated sell-off and on the back of solid 2Q17 results. Our financial L/S equity portfolio dropped 19bps, mainly attributable to Santander underperforming during its capital raising. Our biggest detractor was in UK CDS which tightened again on the month as the market continues to be in denial about the political and economic challenges facing the country. The levels at which UK CDS trades are in our mind absurd relative to other developed countries. UK 5y CDS currently trades at 17bps, which is comparable to that of the US at 15bps and Germany at 13 (the tightest). Meanwhile, Italy CDS trades at 133bps. These levels are wholly unrepresentative of the political and economic turmoil in the UK, with debt exploding, zero reserves in its central bank, and Brexit negotiations looking increasingly dire. The market cannot ignore these harsh realities much longer, and any widening in CDS presents meaningful upside to our portfolio. This cost us 20bps on the month. August 2017: Net return for the month of August was -0.04%. August was a relatively calm month for the portfolio. We made money in our financial L/S equity portfolio and on our BMPS holdings. On the macro side, we made money on certain Greek bond holdings and on UK CDS. We lost money on some of our portfolio hedges including our Bund short. Our best performer was our relative value position in the equity of Unicaja (long) paired vs. Bankia (short). Unicaja benefitted from post-IPO syndicate research initiations with a consensus Buy rating, while Bankia sold off following weak 2Q2017 results. We also made money on BMPS, whose debt has now been mandatorily converted into equity, with the OTC market starting to trade the unlisted equity which is slated to be relisted end of the month or early next. Post recap, BMPS is now one of the cleanest banks in Italy while trading at a discount to peers. We therefore believe there will be good upside potential for the stock. We also made a little money on our Carige capital structure position, and we expect the bonds to perform well in light of a potential partial LME of debt into equity as a part of its restructuring plan. Our short-dated 2019 Greek bond holdings performed well on the month. We generally are quite positive on EU periphery and think that Greece will be one of the biggest beneficiaries of a stronger Eurozone. Meanwhile, we maintain our bearish stance on UK and saw this past month for the first time since the Brexit vote a tentative bounce in spread for credit risk perception. UK CDS still trades within a handful of basis points of that of Germany and the US, which we continue to believe is wholly unreflective of the risks facing the country. September 2017: The fund returned 0.49% for the month of September, mainly driven by our macro short on the German bund and by our financials positions. Our best single name was our position in the unlisted equity of BMPS, whose pricing improved on the month as Italian bank equity rallied on strong economic data and the bank's management team began to roadshow ahead of the planned re-listing of shares in late October/early November. Elsewhere in financials, our position in the AT1 of the Portuguese bank Caixa Geral de Depositos benefited from the S&P’s upgrade of Portuguese sovereign credit to investment grade. Our short bund position was our biggest macro contributor, in line with our view that fixed income is bound to soon see a correction closer to historical norms. We expect both the European Central Bank (“ECB”) and the Fed to begin tapering, and the bund in our view is by far the most overvalued sovereign bond. We lost some money on our short sterling versus US dollar position, as sterling rallied and the US dollar experienced relative weakness. Our short UK position, which we express mainly via UK CDS, remains our highest conviction macro theme, and markets are gradually starting to contemplate a no deal hard Brexit scenario. On September 22nd, Moody’s published a report officially downgrading the UK’s sovereign rating, noting that the economy has slowed since the Brexit vote and that it is unlikely the government will achieve a comprehensive free trade agreement with the EU.


4

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Numen Credit Fund (continued) Exposure (continued) October 2017: The fund returned +0.67% for the month of October. The best performer was our long equity position in BMPS. We also made money in Corporates in Fiat Chrysler and in Rite Aid. BMPS was the big story on the month. Upon the relisting on Oct 25th after a 10 month hiatus, the stock saw heavy volumes and initially very strong upward pricing from the opening of EUR4.1/share before settling in around EUR4.7/share. At current fundamental valuation, BMPS is trading in line with immediate regional peers. We believe the bank deserves a higher multiple, given the announced NPL sale that puts it at least 2 years ahead of peers in cleaning up its balance sheet. The technical side paints an interesting story as well, with the government as by far the largest shareholder and the remaining free float comprised of mostly core shareholders. This ownership base, combined with other strong technical factors, provides good potential for the stock to increase meaningfully with one or two strategic buyers. The macro picture is perhaps the most important, given the bank’s leverage and sensitivity to the Italian economy. The macro picture in Italy continues to improve, with increasingly robust economic data. Additionally, the Italian senate just approved a new electoral law, which should contribute to political stability and tighter spreads. We will see volatility, but we think the bank is entering a positive period and could likely be involved in the upcoming consolidation period for European banks. Elsewhere in the portfolio, we made money in Corporates, with our long position in the credit of Fiat Chrysler as the best performer. After the recent significant rally in the stock, the credit has followed with a steady tightening which should continue as the group continues its deleveraging process. We also made money in our Rite Aid credit short, as the company continues its downward spiral. September’s disappointing earnings show that the sale of 40% of its pharmacies to larger rival Walgreens has not solved the company’s problems, and we expect to further benefit from a deterioration of the company’s financial profile. November 2017: The fund returned -0.53% for the month of November. Performance was mainly driven by weakness in the share price BMPS. Meanwhile, we had solid contribution from our credit and equity market neutral portfolios in Financials and from Corporate Events. BMPS share price in November was impacted by the erratic behaviour of the ECB regarding NPLs and the concomitant Credito Valtellinese announcement of a highly dilutive rights issue. However, the hit to our portfolio was muted, as we took advantage of last month’s price strength to take some profit and have reduced our position to 2% of NAV. We continue to view BMPS equity as fundamentally materially undervalued: it is one of the cleaner banks in Italy with a real possibility for M&A in the coming 12 months and, being between 2 to 3 years ahead of BAMI and BPER in terms of organic asset quality clean-up, it should trade at a higher multiple. Elsewhere in financials, we made money in Liberbank, participating in their capital raise using Bankia equity as a hedge. Our sub-debt portfolio of AT1 and subordinated bonds also performed well on the month. Our corporate events portfolio was also profitable, with Rite Aid as the top performer. The company continued to deteriorate in both bonds and CDS, as credit investors have become much more sceptical about the company’s prospects. We also made money in Qualcomm/NXPI. We increased our NXPI position on the back of Broadcom’s announcement of a $100B takeover bid for Qualcomm, as we believe now is incentivised to complete the NXPI acquisition. December 2017: The fund returned +0.04% in December. Our biggest contributor was our long position in the equity of NXPI Semiconductors, who are in the process of being acquired by Qualcomm. We initiated our position early last year, as we believed NXPI was a solid business in a growing and lucrative sector and an attractive takeover candidate for Qualcomm. After Broadcom’s offer for Qualcomm this past November, the market’s expectations for an imminent approval by the EC of the pending NXPI/Qualcomm merger have increased, as there is perceived acceleration in the process by Qualcomm. We expect Qualcomm management to reach an agreement on an improved price for NXPI right after the regulatory approvals, with goal of launching the revised offer beginning of March. Elsewhere in Events, Sky was a positive contributor. The confirmed bid from Walt Disney for certain assets of 21st Century Fox, including Sky, has changed the picture for the British broadcaster. We now think the downside for Sky should Fox’s bid approval process be unsuccessful is muted. Sky has in fact turned into a relatively coveted asset not only for Disney, but also for other potential suitors like Comcast and Verizon. We increased our equity long in Sky before confirmation of the Disney bid for Fox, and we maintain our short credit position hedge. We lost some money in our distressed financials portfolio, both due to some price volatility in BMPS equity and on some Banco Espirito Santo (BES) old bond holdings. We think downside to BMPS equity now is quite limited and that it continues to trade at a discount to peers who are years behind the bank in terms of asset quality clean up. In BES, while our position is quite small, the situation for the bank is looking cleaner now that the sale of Novo Banco is completed, and we would expect to see increased clarity and progress on the litigation claims involving our legacy Novo Banco bonds. Elsewhere in financials, our robust and diversified credit portfolio of Tier 1, LT2 and Senior and our market neutral L/S equity portfolio continued to perform well on the month.

5

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Numen Credit Fund (continued) Market views and outlook 2017 was a frustrating year for us, as we were too impatient on specific names and market trends that, whether macro or sector-related, will take time to fully develop. We have improved our investment process and risk management systems to be more disciplined and more aggressive in sizing up and down high conviction trades. We are encouraged to see a confluence of drivers, both macro and micro, we have been studying for the last few years. We have doubled our fundamental research capabilities and are positioning several fundamental bets around diverse names and themes. Additionally, we are prepared to exploit several waves of volatility coming across markets, especially in fixed income and credit. Looking ahead, we see an exciting opportunity set in each of our sub-strategies. In Financials, we continue to see improving fundamentals for European bank credit as balance sheets strengthen, and we expect an accelerated consolidation within and across national borders. In the Corporate space, credit is very expensive at the moment and more often than not, risk is mispriced. This is the perfect environment for a fundamentally driven trading strategy like ours, as it offers fertile territory for shorts with a low cost of carry and a plethora of unaware holders of risky assets. We expect our Events strategy to be very active in 2018, especially in the US where the new tax treatment of foreign funds repatriated should boost companies’ appetite for acquisitions. The strong economic backdrop in the US and Europe should continue to give companies confidence to expand their businesses via acquisition. We except TMT to be some of the most transformative sectors of 2018, as the Cloud enables new entrants to outpace highly levered traditional companies whose moats are dying up, creating meaningful opportunities on the long and short side. On the macro front, from Brexit finalization to Italian elections to Trump tweets, 2018 will not disappoint in terms of opportunities. The market structure is imbalanced and unprepared to absorb any sustained shock after 10 years of relentless appreciation across asset classes. In the short term, we remain on the lookout for a positive inflation surprise, which we view as the biggest potential source of volatility as it may signal Central Bank balance sheet reversal, while staying keenly attuned to other potential sources of volatility, including the upcoming Italian elections and the ever-present but not-pricedin geopolitical risks.

6

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Principia Fund HI Principia Fund’s objective is to achieve a 7%-8% return with a volatility of 6% by investing in Northern Europe stock markets with a fundamental approach. Performance review HI Principia Fund EUR FOF share class decreased by 1.32% on a net basis from the start of July 2017 to the end of December 2017. The EUR FOF class is used for representative purposes. HI Principia Fund - class EUR FOF Date

Class EUR FOF NAV

Class EUR FOF Monthly return

Total Fund AUM (EUR)

31/07/2017 31/08/2017 29/09/2017 31/10/2017 30/11/2017 29/12/2017

127.58 127.17 127.28 128.02 125.28 125.17

0.58% -0.32% 0.09% 0.58% -2.14% -0.09%

164,696,083.79 167,072,991.71 168,802,538.19 172,401,580.61 174,889,722.82 182,202,078.22

July 2017: The NAV of the fund was stable during the month. The European indices have been volatile and closed the month in positive territory. As usual specific stock dynamics drove the movement of the fund. On the positive side our long position in AMS performed well. The company is a leader in sensor technology for consumer and industrial areas. The growth of the company is extremely dynamic based on an increasing penetration of its content in the next generation of smartphones. This has led to the management upgrading their guidance for the mid-term and has driven a strong appreciation of the shares. Following a weak q1 result, and after a positive company meeting, we decided to start a long position in Pandora. We consider that the concerns over a structural slowdown are overdone. In addition, the new collection should help rejuvenate growth. The valuation is very attractive if the growth rates improves. On the negative side Technicolor again reported weaker results. We reduced the position earlier in the year although we still maintained a residual long position. Following the recent share price correction, we consider that there is clear value in the name but without any immediate catalyst to release value. Greencore also performed poorly. The group supplies the UK food retail sector and this association weighed on the share price. August 2017: The NAV of the fund declined by 0.3% during the month of August. The European equity market has exhibited marked volatility based on the path of expected earnings and concerns from the macro area. Both the winners and losers came from the long side of the book. Patrizia is a German real estate company engaged in real estate asset management as well as transactions on behalf of international and European clients. The asset management business has been steadily growing and the company have built up a large cash position based on successful investing in European real estate. We believe that the company will begin to deploy this excess cash in accretive acquisitions of asset management companies. This will create a strong platform for the advisory business as well as improve the outlook for mid-term earnings. Another positive contributor to performance came from Cambian, an operator of mental healthcare facilities in the UK for children. The group have restored their balance sheet through a disposal of the adult healthcare business and are now focused on improving utilisation in their current facilities and making selective acquisitions. We have the view that the group are in a good position to help consolidate the mental healthcare market in the UK. The detractors from performance came from several long names. Soitec is a semiconductor operator with a strong position in a new wafer technology called FD-SOI. During the first half of the year news flow on investments by customers as well as a good growth outlook, drove the shares. The stock has been consolidating since then. We now consider that there is significant upside again in the name so we have been adding to our position. Greencore is a supplier of food to go to supermarkets and other customers. During the month the company announced they had lost a low margin contract in the U.S. and this has caused concern over the U.S. growth strategy. We are of the view that the pipeline of new customers will lead to gradually improving utilisation and margins in the U.S.

7

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Principia Fund (continued) Performance review (continued) September 2017: The NAV of the fund was relatively unchanged during September. The European market rebounded strongly driven by cyclical parts of the index as the yield curve steepened slightly. During the month the positive and negative contributors essentially cancelled each other out. The positive contributors came from the more cyclically orientated long names. Companies which supply services to the resource sector or are exposed to chemical end markets performed well. The negative contributors came from index futures as well as from names which have a more defensive orientation. Due to the idiosyncratic nature of the long book, the fund does not usually benefit from sector rotations. The short side of the fund has more market correlation than the long side and this leads to potential losses if an aggressive rotation occurs. Therefore, the performance of the financial sector and the index during September generated losses which were only just offset with some gains from some specific news on a number of our long names. We have been carefully working through a large list of companies to identify names where we think there are firm specific considerations which can generate upside to the equity. The general rise in equity markets does not make this task easier. Nevertheless, we believe that the long book still has 30% upside over 2 years, given our assumptions on growth. In terms of new names, we would highlight Bertrandt, a new holding in the fund. The company operates as an R&D consultant to the automotive sector in Germany. While previously showing good growth, the company has had some specific issues due to its link to VW. Over the past 18months slower spend from VW has weakened the growth dynamic. Based on the model launch plan, we believe that this spend will recover and Bertrandt will see an accelerating organic growth in the mid-term and an improvement in the operating margin towards previous levels. October 2017: The NAV of the HI Principia fund appreciated by 0.5% during the month of October. The European equity market has continued to recover based on good corporate earnings and the fact that the ECB has delayed the tapering. This has created a very benign environment for equities in general. The positive contributors for the month came from the long side. We would highlight Laird group as one example. The company are active in performance materials for a wide range of applications as well as telematics for the Automotive sector. After a difficult 2016 we consider that organic growth will accelerate in both divisions driven by improving end markets as well as structural changes in the automotive industry. Following a meeting with the new management we initiated a position several months ago. We consider that that there is still substantial upside to the name. Entertainment One also performed well. This is a UK media company which owns TV production and film distribution as well as Children’s cartoon characters. Through an expansion of the children’s franchise in the US and China the group target a doubling of sales in the midterm from this source. The TV production company is also benefiting from an increased output of high quality content which is syndicated across the world. Designated Survivor shown on Netflix is one such example. The detractors from performance came from the hedges we have in place. In particular, a small cap basket which is used to hedge the smaller names in the fund and a resources basket both contributed negatively over the month. The resource basket is used to hedge a number of long names which we feel are linked to some extent to global commodity prices. Regarding sentiment, while the overall equity market has moved positively during 2017 and volatility has declined markedly we still do not consider sentiment to be too bullish. Rather we consider that investors are reluctantly optimistic given the good earnings data coupled with the persistently low discount rate. However, given the current conditions in terms of subdued volatility if an unexpected event did occur then there is considerable ‘gap risk’ in the equity market. This means that a decline could be binary without the chance to hedge. Given this situation we are operating with slightly lower levels of gross exposure than usual. The gross exposure is approximately 125% and this reflects a fair balance of the above concerns at this time.

8

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Principia Fund (continued) Performance review (continued) November 2017: The HI Principia fund declined by 2% during the month of November. The European indices were volatile over the month driven by sector rotation as well as concerns over the pace of tightening from monetary authorities. The fund decline was more stock specific. In particular, several long positions fell due to specific issues. Companies related to the resource sector suffered during the month. FLSmidth, which is a major player in providing equipment for both the cement and mineral industry declined during the month. The company indicated that the cement market was unlikely to see a strong recovery over the next 12 months. While the long-term case for the company revolves around a move to higher value equipment and an increase in the service business, the short-term dynamics are not as favourable as we initially thought. We closed this position. In addition, AMG which mines rare metals used in aerospace and automotive also suffered a decline due to its sector exposure. The positive contributors also came from the long side. Patrizia Immobilien is active in the real estate sector through consultant services and Asset Management. The group announced an acquisition which materially grows the asset management part of the company. This move improves the quality of the group’s earnings and utilises some of the cash on the balance sheet. We consider that the stock still has upside from current levels. Bertrandt performed well during the month. The group is a consultant to the automotive industry. Having suffered in the past 18 months from weak demand from VW, the group is now beginning to see a recovery in orders which should drive a strong improvement in operational performance over the next 24 months. December 2017: The NAV of the HI Principia fund was stable during December compared to a slight decline in the overall European equity market. During December, gains on some of the long names such as Gecina and Aurubis were offset by losses from hedges such as sector baskets. 2017 was characterised by earnings surprises from European corporates driven by a better than expected economic environment in Europe and other regions. After several years of disappointments in terms of earnings growth, consensus expectation had become more moderate. Therefore, the better environment was able to deliver an earnings profile which surpassed the average expectation. 2017 was also characterised by a relative absence of systemic shocks. After a period of several years where a large number of exogenous events occurred in apparent quick succession, 2017 did not continue the trend. Combined with a consensual long position, this created an environment in which volatility showed a substantial decline. The natural result of this was a continued appreciation of higher risk assets. These considerations created a benign environment for stock picking. Buy and hold strategies were far more rewarded than more active ones. Hedging costs were also quite significant due to the trending nature of the equity market. The majority of the return for 2017 came from alpha generation on the long side. The net exposure of the fund averaged approximately 20% indicating that directionality did not play a large role in the overall return. During 2017 profit taking and trading of positions detracted from the return. In the case of several long names a far less active strategy would have added to performance. Market views and Outlook In terms of an outlook we think that the scope for positive economic surprise is materially lower in 2018 than 2017. In addition, action from central banks regarding tapering may well lead to increasing volatility during the year. In this context we maintain our disciplined, fundamental approach and intensive company interaction in order to derive a return independent from equity market direction and with moderate volatility.

9

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Sibilla Macro Fund HI Sibilla Macro Fund utilises a discretionary global macro strategy based on fundamental, thematic and quantitative analysis to invest in a broad array of liquid financial instruments, including currencies, listed equities and equity indices, sovereign bonds and UCITS compliant commodity-linked instruments. The fund objective is a target average annualized return of 10% with 6% volatility. Performance review HI Sibilla Macro Fund EUR FOF share class increased by 0.02% on a net basis from the start of July 2017 to the end of December 2017. The EUR FOF class is used for representative purposes. HI Sibilla Macro Fund - class EUR FOF Date

Class EUR FOF NAV

Class EUR FOF Monthly return

Total Fund AUM (EUR)

31/07/2017 31/08/2017 29/09/2017 31/10/2017 30/11/2017 29/12/2017

101.19 101.32 103.11 103.29 102.09 101.66

-0.44% 0.13% 1.77% 0.17% -1.16% -0.42%

80,539,641.05 79,973,491.20 80,875,924.11 79,830,478.74 78,531,460.49 75,031,590.88

Exposure The average gross exposure during this period was 122% and the biggest positions were held in FX forwards. Market Views In July, we kept our book very light, mainly because several themes and in particular our moderately bearish view on risk assets haven’t been confirmed by our proprietary models yet. We closed our short position in the Korean Won on the decline triggered by political risks in North Korea, given that the US dollar has been weakening across the board. The timing was right as we closed the short around the six month low, after which the Won started to rally again. The Taiwanese Dollar, which we still have as a short against the US dollar generated a minor loss. We tried to initiate small short positions in equity index futures and a long position in volatility futures, but we didn’t even get close to full positions and quickly scaled back given our models were not confirming the move. These attempts have been mostly breaking even. Our bearish bets - played through long S&P500 volatility, short Russell 2000 and Nikkei futures - worked well in August although we had to be quick in taking profits as the market has been still in a deteriorating range bound - a topping process - rather than a strong downtrend. We lost money with our short bunds and treasuries, as unexpectedly at this stage of the business cycle the FED and the ECB were again more dovish than expected leading government bonds to rally again despite with signs of strength from China, industrial metals and Europe. We continue to hold short positions in these. Our tactical longs in Europe and Japan worked well in September. We had long positions in Eurostoxx, Dax and Nikkei futures, and once we understood that the fiscal stimulus in the US would become more likely together with more FED hikes we also took long positions in European and Japanese banks. Our short positions in bunds also worked, however our attempt to short to US treasuries got stopped out with a minor loss. Lastly, the FX book was profitable and we added to our short Swiss Franc position - which we had played against the Euro. Our Long position in Spanish equities started to work toward month end of October as Spain took control of Catalonia and the separatist leader Puigdemont fled to Belgium - he was charged with sedition and rebellion. We still hold this position and expect incremental and significant upside, although not without volatility as regional elections will be held in December and some uncertainty will still persist until then. Our FX trades mostly worked ‐ especially the short Swiss Franc against the Euro and the US dollar. We took profits on about two thirds of these positions. Our short position in bunds is still unprofitable as German yields remain in a tight range not far from all‐time lows. A relatively dovish ECB didn’t help. However, with the tapering coming and the strongest growth in Europe in years, in our opinion rates can only go up and we plan to hold this position given the very asymmetric risk reward and as long as it remains without the recent acceptable range. Lastly, we lost money shorting emerging market futures and going long volatility futures, which were partially hedging our net long position in equities. Any attempt to tactically hedge the portfolio or reduce long exposure turned out to be premature as the S&P has been enjoying the longest uptrend without a 3% correction in history. .

10

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Sibilla Macro Fund (continued) Market Views (continued) The main loss came from our long position in Spanish equities in November. After the rally into month end in October, the Ibex started to drop in what initially seemed a profit taking. Soon after, however, all European indices started to correct sharply - losing an average of 5% from the peak - dragging Spain down further. We cut our exposure temporarily - we plan to re-enter the long trade sometime in December or January - for two main reasons 1) we thought that the correction in European equities could be the beginning of a broader leg down in risk assets and 2) the uncertainty of the Spanish elections in December should prevent a big rally, especially since that is now against the general trend in European equity indices. The tactical book was profitable, mostly exploiting short term trading in equity index futures the German Dax and the Nikkei in particular. During the month we significantly reduced the gross exposure as we want to rebuild a different portfolio accounting for two new developments - a potentially big leadership change within sectors and across asset classes as the fiscal reform gets approved, and a correction in risk assets. We continued to cut gross exposure in December as we expect a correction to develop soon, however it’s still early to be significantly net short. Marginal paper losses came from our new small short position in emerging market futures and the short in the Taiwanese Dollar. Our long book was profitable but too small to offset the rest of the portfolio. The US Dollar weakness has been puzzling to us, given stronger outlook for economic growth in the US and the fact that short term rates, typically a good driver for the currency, are going up fast. The yield on the 2 year which was near zero a couple of years ago and at 1.25% just last September is already approaching 2%, which is a big move. We continue to hold a small gross exposure waiting for confirmation to increase it. Outlook With US stocks experiencing one of the longest uptrend in history without a 5% correction, and cryptocurrencies and related stocks continuing their parabolic move - beside short-term correction - most leading indicators we look at suggest we are in a very extreme phase which will lead to a significant correction. Valuations are the highest in history except the last part of the bubble in 2000. We are aware that valuations are never a good timing tool however they are a good “precondition”. Measures of liquidity as percentage of total assets suggest that cash is either at multiyear lows or at all time lows. Put call ratios on equities are also at multiyear lows, suggesting an extreme in complacency. Several sentiment indicators are extreme as well, like Investor Intelligence - the most extreme since 1987 - and AAII the most extreme in years. Short term interest rates have been moving up significantly in the US and what is worse is the yield curve has been flattening - usually a bearish sign for risk assets and the economy. What is still not confirming an imminent bear market or a big correction is credit - high yield and BAA spreads are still tight. However it’s possible that given the negative interest rates policy in Europe and Japan, credit spreads are not going to be a good leading indicator this time. Lastly, what has not confirmed either - but could confirm in short order - are our models so according to our process, we are not going to increase short exposure until our models confirm. As it often happens especially when there are extreme moves like the one we are having, the market eventually always does what it’s supposed to do, but never when. In other words, markets tend to behave as predicted but in the most unpredictable way. We are also looking to go long the US dollar against a basket of currencies - the Brazilian real and the New Zealand Dollar are on our list. We don’t have a strong view on commodities at the moment. Regarding interest rates, while short term rates are going up rapidly in the US, the US 10 year and global rates have been mostly range bound. Although we recognize the possibility that yields on the 10 year can move up some as well perhaps because inflation picks up some in the short term - at this stage of the expansion it’s more likely that the flattening and possible inversion of the yield curve will leave the long end relatively anchored while most of the move happens in the short end.

.

11

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Core UCITS Fund HI Core UCITS Fund is a multi-strategy fund of UCITS funds with the aim to deliver a target average annualized return of 3-4% in excess of the free risk rate with 4% volatility. The fund invests mainly in "alternative" UCITS funds, i.e. funds that are able to replicate the most liquid and transparent hedge fund strategies under a harmonized legislature framework, by offering daily and weekly liquidity and requiring a lower minimum investment amount than hedge funds. Performance review HI Core UCITS Fund EUR I share class increased +0.81% on a net basis from the start of July 2017 to the end of December 2017. The EUR I class is used for representative purposes. AUM remained stable during the semester. HI Core UCITS Fund - class EUR I Date

Class EUR I NAV

Class EUR I Monthly return

Total Fund AUM (EUR)

31/07/2017 31/08/2017 29/09/2017 31/10/2017 30/11/2017 29/12/2017

109.39 109.18 109.99 110.01 109.56 109.70

0.52% - 0.19% 0.74% 0.02% - 0.41% 0.13%

36,643,592.16 36,452,432.87 36,039,791.79 36,217,487.11 36,588,906.75 36,166,029.00

The Fund generated positive returns, particularly in Q3 2017, mainly thanks to the overweight on European long/short equity managers, which were able to generate positive alpha favoured by a supportive environment for their strategies with low market volatility and greater focus of market operators on single company fundamentals. Positive contribution also came from a tactical long exposure to the energy sector (oil prices witnessed a strong rally after the deep correction in the first half of the year), and from the allocation to event driven funds, with underlying managers that benefitted from the continuation of a strong M&A cycle. Q4 2017 proved out to be weaker: while the positive contribution of long/short equity strategies continued, the Fund was penalized by the negative results of macro/CTA and relative value strategies. In particular, some underlying managers suffered due to the downward movement of the European yield curves that was triggered by a more accommodative stance of the ECB during the October meeting, while others were penalized by the appreciation of Euro against EM and Nordic currencies. Overall, HI Core performance in 2017 was in line with target return and volatility. November 2017 (-0.41%) was the worst month of the year: all the underlying strategies generated slightly negative results but nonetheless the Fund was able to limit losses in a difficult month for the European equity market (Eurostoxx 50 -2.8% in November). The biggest negative contribution in November came from the macro strategy: the fund specialized in yield curves and currencies because of its long exposure on Nordic currencies against euro, while the macro trader was penalized by a tactical long bet on the Spanish equity index that turned out to be wrong. Exposure HI Core UCITS Fund is maintaining a well-diversified portfolio consisting (as of 31/12/2017) of 27 UCITS funds and 3 UCITS exchange traded funds (“ETFs”). Breakdown by strategy

31 December 2017

30 June 2017

Long/short Equity

50.42%

50.08%

Event Driven

17.27%

15.19%

Relative Value

8.16%

11.33%

Macro-CTA

11.22%

8.95%

Long-hedged

0.52%

0.60%

Tactical Overlay

9.12%

10.29%

Cash

3.29%

3.57%

In the last 6 months, the biggest increase was registered in the allocation to Event Driven funds whose weight rose from 15% to 17% due to the addition of a fund specialized in announced M&A with a global approach. In fact, we expect the strategy to benefit from the recovery and widespread growth of global economy, with an increase in corporate activity and deal opportunities in particular in Europe and US.

12

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Core UCITS Fund (continued) Exposure (continued) The allocation to Long/Short Equity funds remained unchanged around 50% despite a slight rotation in the underlying funds. We fully redeemed from a fund whose strategy suffered and underperformed in rising markets, and invested in two new funds whose stock picking and decorrelated strategies add diversification to the portfolio. The total exposure to Relative Value and Macro/CTA funds remained stable at 20%. Within these strategies, portfolio rotation slightly increased due to a full redemption from a relative value fund, which was underperforming our expectations, and to the subscription in a macro fund specialized in the energy market which should be able to capitalize on the positive momentum of the reference market. The tactical component of the portfolio (positions in long-only or short-only funds and ETFs with a short-to-medium term horizon) currently weights 9%. In December, we added an ETF to gain exposure towards US small-caps which should benefit from the approval of Trump Administration’s tax reform. Geographically speaking, the fund remains overweighted on Europe, which currently represents around 46% of the portfolio. Market views and outlook 2017 was characterized by strong returns for equity markets, that benefitted from a context of widespread global growth and low interest rates. In addition, a weak dollar pushed investors to seek for higher returns into EM bonds and equities, and these markets witnessed important inflows and registered very positive performances. We expect a 2018 characterized by a decent and improving global growth, mainly driven by the continuation of positive macro data coming from European and EM economies. US economy should receive a boost by the approval of tax reform and by a weaker dollar. Inflation in Developed Markets should gradually pick up from very depressed levels and we expect major Central Banks to continue their exit from ultra-accommodative monetary policies, with relative consequences on yield curves and bonds. HI Core is positioned to benefit from this scenario: -

-

Portfolio is strongly tilted to long/short equity funds specialized in European markets and to other funds positively correlated to an acceleration of European economy; We added exposures to funds that directly or indirectly benefit from a normalization of yield curves. The expected gradual exit of major Central Banks from their unlimited QE programs will produce a readjustment of valuation and an increase of volatility in fixed income markets; Part of the allocation is dedicated to M&A and corporate activity theme. We maintain our very constructive view on event driven managers that should continue to benefit from a very intense M&A activity thanks to low but increasing rates, potential deregulation in US and search of inorganic growth.

.

13

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Africa Opportunities Fund HI Africa Opportunities Fund is focused on Africa Sub-Sahara stock markets with a flexible investment strategy (long/short equity). The Fund’s objective is a target average annualized return of 15% with 10% volatility through selective purchases of stocks and active risk management. Performance review HI Africa Opportunities Fund EUR FOF share class increased by 7.80% on a net basis from the start of July 2017 to the end of December 2017. The EUR FOF class is used for representative purposes. HI Africa Opportunities Fund - class EUR FOF Date

Class EUR FOF NAV

Class EUR FOF Monthly return

Total Fund AUM (EUR)

31/07/2017

96.22

1.06%

20,745,075.52

31/08/2017

99.15

3.05%

21,324,320.27

29/09/2017

100.04

0.90%

22,839,221.46

31/10/2017

103.21

3.17%

23,679,066.78

30/11/2017

101.47

-1.69%

22,476,914.66

29/12/2017

102.64

1.15%

22,734,697.00

Exposure The HI Africa Opportunities Fund employs stock specific, fundamental analysis which evaluates the underlying determinants that affect the price of a given security. Factors within such analysis include both microeconomic and macroeconomic variables that can influence the price of a given security or set of securities. The gross exposure of the HI Africa Opportunities Fund ranged between 98% and 117% during the period and the net exposure ranged between 63% and 79% during the period. As of 31st December 2017 the gross exposure was 117% and the net exposure was 79%. Included in the net long exposure is a portfolio of local currency African government bonds equal to 28% of the fund’s NAV. The bond portfolio yields 17% and includes short duration bonds and treasury bills from Egypt, Nigeria, Ghana and Zambia. At the period end the three largest equity long positions were Glencore, Naspers and Growthpoint Properties. Market views and outlook African markets and the fund performed well in 2017 and we think this can continue in 2018. The fund is positioned in stock specific ideas with an average forward P/E of 11x. The combination of high dividend yields and the African government bond portfolio gives the fund a yield of 7%. Three themes are helping to drive positive returns in African markets. Africa is benefitting from the general pick up in global economic growth and commodity prices. Many African countries are significant exporters of oil, natural gas, base metals and precious metals. The prices of all of these commodities have risen since 2016 and remain at high levels. This has stabilized African currencies and given local central banks room to rebuild reserves. Our industry view is the severe cutback in mining and energy investment will be felt for several more years and prices are likely to remain at high levels. Second, there is a wave of infrastructure investment connecting African markets to the rest of the world and improving the ease of business. Power outages are a thing of the past in South Africa, Egypt and Kenya. Most major African cities have good availability of high speed internet through both wireless and fixed lines. The World Bank, the IMF and Chinese Export-Import Bank have all been active in funding rail, power and port projects across Africa. In 2017 Kenya completed its 485 km railway from Mombasa to Nairobi. This was the first new railway in Kenya since 1914. Third, there have been positive political changes in Africa. During 2017 both South Africa and Zimbabwe chose new political leaders focused on growing the economy and reducing unemployment. In Egypt President El Sisi continues his economic growth plans in cooperation with the IMF, and in Kenya the recently re-elected President Kenyatta continues to execute his Kenya 2030 plan. In Nigeria President Buhari is moving slowly but removing layers of corruption that accumulated during his predecessor’s term. These are all positive long-term changes that should improve the economy and investment returns.

14

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Numen Bear Rates Fund HI Numen Bear Rates Fund's objective is to generate positive rates of return in environments where there are rising interest rates. Performance review HI Numen Bear Rates Fund EUR FOF share class decreased by 10.90% on a net basis from the start of July 2017 to the end of December 2017. The EUR FOF class is used for representative purposes. HI Numen Bear Rates Fund - class EUR FOF Date

Class EUR FOF NAV

Class EUR FOF Monthly return

Total Fund AUM (USD)

31/07/2017 31/08/2017 29/09/2017 31/10/2017 30/11/2017 29/12/2017

99.88 97.32 96.66 90.80 87.86 87.79

1.37% -2.56% -0.68% -6.06% -3.24% -0.08%

16,275,568.31 17,764,082.13 17,744,963.24 16,429,058.93 15,219,419.68 15,318,197.43

Exposure July 2017: The fund returned +1.37% for the month of July. Positive performance was driven mainly by our long position in oil, which is experiencing strong inventory data and affected by continued tensions in the Middle East and weakness in USD. We view and use oil as a powerful proxy for levered rates shorts, as it is the most nonconsensus driver of growth in inflation expectations. The deterioration in Venezuela and Trump’s newly established position on sanctions against the country could be the real shock for oil over the next few months, as Venezuela is imploding and the US is their largest oil importer. Our losses on core rates were driven by a slowing down of US data and a wrongly perceived dovish Fed, as Yellen stated in the most recent meeting that the Fed fund rate is not far from equilibrium, which the market read to mean that hikes are done. We expect the Fed to hike at least once more and to start balance sheet unwinding beforehand, with very material implications for supply/demand dynamics for bonds. We also saw some losses on peripheral rates driven by an accommodative wording from Draghi at July’s ECB meeting. Rates were also bolstered by the absence of any real political catalyst for the first time in years, which caused a strong summer seasonality for fixed income to take the lead. August 2017: The fund returned -2.5% for the month of August. August was a month dominated by geopolitical events, mainly escalating tension in North Korea. Additionally, the first few signs of confrontation over the US debt ceiling and a resurfacing of Italian political risk kicked up on the month (though the latter we view as not relevant right now). These factors combined drove global yields lower on the month. Meanwhile, central bank events in August did not provide any significant catalyst for a repricing to higher rates just yet, leaving positive summer seasonality and exogenous events to lead the price action. Losses on our core reflation trades were offset by hedges that we put on at the beginning of the month. We took advantage of the incredibly low level of volatility to buy protection in order to hedge what we expected to be a very eventful couple of months, full of central bank and political events and deadlines. Together our hedges generated around +3%, with the main contributor being a long VIX position (+2.3%). The remainder was generated by a mix of a swaptions on EUR swap rates, a swaption on Main CDS index and a short on EUR/GBP. Our hedges on Korea via CDS were broadly flat, as the spread tightened at the end of the month, while widening again in the first week of September. September 2017: The fund returned -0.68% for the month of September. Positive performance on our core short government bond positions and long oil position were offset by losses generated by our long volatility hedges and our UK shorts. September saw a notable repricing in fixed income, initially driven by de-escalation in the North Korea situation and by the decreasing intensity of weather-related events in North/Central America. Fixed income pricing was further affected by a string of strong global economic data and a few hawkish speeches by the Fed that increased market perception of the probability of a December rate hike, which we also view as quite likely. Our portfolio of short government bonds, mainly comprised of German, US, Swiss and Spanish bonds, benefited from these drivers, generating around 1.8%. Our long oil position also benefited from increasing tension in the Middle East, generating around 0.6%. We took profit on our long oil position toward the end of the month. Our hedges implemented mainly via long volatility positions around the North Korea confrontation took a hit due to the general improving risk sentiment, generating a loss of about 1.1%. Finally, our short position on GBP versus USD net of our shorts on UK government risk generated a loss of around 1.2%, due to an unexpected hawkish tone from the Bank of England ahead of May's speech in Florence. We closed the short position on sterling, as consensus is incredibly bearish and strong data combined with an improving tone in the Brexit negotiation will likely further drive the rally in sterling in the short term.

15

HEDGE INVEST INTERNATIONAL FUNDS plc INVESTMENT MANAGER’S REPORT (continued) HI Numen Bear Rates Fund (continued) Exposure (continued) October 2017: October was a very robust month for fixed income. Draghi’s comments at the latest ECB meeting were interpreted as incredibly dovish, effectively killing the market expectation for any rate increase in 2018. The politically tumultuous events in Spain gave another boost to core fixed income. Despite this tumult, peripheral spread continued to tighten, thanks to relatively strong economic data and generally positive sentiment from rating agencies. Subdued inflation readings for the month due to temporary base effects were also supportive for government bonds. At portfolio level, our short in core fixed income and peripherals generated around -3.1% and -1.9%, respectively. A lack of adverse risk events on the month worked against our risk hedges as well, generating around - 1.1%. We believe the current divide between what bond markets and risky assets are pricing is unprecedented and feel strongly at these levels, fixed income is due for a major correction in the coming months. We don’t see any way around it for a number of reasons, including the unwinding of QE, the pickup in the global economy, inflationary political pressures from Abe to Trump, and increased geopolitical risk, notably from Venezuela and the Middle East. November 2017: The fund returned -3.24% in November. The main driver was our short on core EU bonds which delivered around -2.7% return. The rally in core EU bonds on the month was driven by a general profit-taking mood in risky assets, especially in European HY credit. Year-end profit-taking coupled with uncertainty around the US tax reform gave a clear boost to core fixed income in Europe. The profit -taking witnessed in European credit failed to translate into peripheral spread, and consequently our short on peripheral bonds delivered around -0.45%, also helped by continuous improvement in European economic data. Our short in UK CDS delivered around -0.3%, as position squaring on CDS into year-end had a small negative effect on spreads. We managed to offset some of the negative performance with tactical trades on US treasuries, which delivered around +0.3% at portfolio level. December 2017: The fund returned -0.08% during the month of December. The month was very volatile. And we saw a big rally in bonds the first half of the month, driven by front-loaded purchases by the ECB and lack of supply. The second half of the month saw a violent reversal driven by macro and CTA deleveraging of long positions. We entered the month with a good short levered position expecting the market to start pricing the inversion in technical trends that started in 2018, but we were stopped out on extra-leverage positions, as core yields actually collapsed in the first weeks of December. We recovered most of the losses in the second half of the month but weren’t able to fully recover due to the lower leverage we maintained. Market views and outlook We continue to believe the current level of yields are not at all reflective of the economic realities and not consistent with what risky assets are pricing. We expect core inflation to start rising significantly by the end of Q1 this year and for the pricing of the central bank tightening cycle to become more sanguine. Inflation in Europe is clearly already on the rise and the commodity complex effect is turning positive after a strong oil rally in January. The ECB QE unwinding is happening together with the BoJ tapering, with the market still sceptically pricing the expected Fed hiking cycle. Perceived safe haven assets such as bunds will quickly be revealed to be the most overvalued. Geopolitical risks, such as Korea escalation, may reverse and remove sizeable bids for safe assets. We continue to expect a very meaningful repricing in global fixed income markets in both rates and spreads. As mentioned previously, it is not a question of if, just when. 2018 will certainly be the year, with the cracks starting to manifest themselves in prices in the coming months, and the fund is positioned to take advantage of this reversal materially.

Hedge Invest SGR P.A.

February 2018

16

HEDGE INVEST INTERNATIONAL FUNDS plc STATEMENT OF FINANCIAL POSITION

ASSETS Cash and cash equivalents Margin cash Collateral cash Receivable for shares subscribed Other receivables Financial assets at fair value through profit or loss: Investment funds Investment in exchange traded funds Investment in investment funds2 Transferable securities Investment in bonds -

Investment in equities

Investment in warrants Money Market instruments Investment in time deposits Financial derivative instruments Unrealised gains on contracts for difference Unrealised gains on credit default swaps Unrealised gains on exchange traded options purchased Unrealised gains on forward currency contracts Unrealised gains on futures contracts Total assets

HI Numen Credit Fund as at 31 December 2017 EUR ’000

HI Principia Fund as at 31 December 2017 EUR ’000

HI Sibilla Macro Fund as at 31 December 2017 EUR ’000

HI Core UCITS Fund as at 31 December 2017 EUR’000

HI Africa Opportunities Fund as at 31 December 2017 EUR’000

HI Numen Bear Rates Fund1 as at 31 December 2017 USD’000

Company Total as at 31 December 2017 EUR ’000

41,430 14,095 74,616 20 2,716

21,650 23,272 3,855 1,727 128

7,733 5,192 6,265 86

1,177 42

740 2,732 146

995 933 1,678 36

73,559 43,336 88,865 1,747 3,148

-

-

-

1,567 33,932

-

-

1,567 26,271

192,236

-

13,992

-

6,124

11,327

221,785

78,754

70,468

1,202

-

13,441

-

163,865

249

-

-

-

-

-

249

-

60,826

40,190

-

20

-

101,036

1,745 9,300

3,279 -

-

-

354 -

158 70

5,510 9,358

211

906

-

-

-

-

1,117

1,485 1,304 418,161

252 186,363

1,042 75,702

31 36,749

50 23,607

271 293 15,761

3,086 1,548 746,047

1

HI Numen Bear Rates Fund launched on 7 April 2017.

Cross holdings within the Company have been eliminated on combination. See Note 5.

2

17

HEDGE INVEST INTERNATIONAL FUNDS plc STATEMENT OF FINANCIAL POSITION (continued) HI Numen Credit Fund as at 31 December 2017 EUR ’000

HI Principia Fund as at 31 December 2017 EUR ’000

HI Sibilla Macro Fund as at 31 December 2017 EUR ’000

HI Core UCITS Fund as at 31 December 2017 EUR’000

HI Africa Opportunities Fund as at 31 December 2017 EUR’000

HI Numen Bear Rates Fund1 as at 31 December 2017 USD’000

Company Total as at 31 December 2017 EUR ’000

(40) (1,206) (768)

(293) (481)

(86) (266)

(387) (181)

(173)

(81)

(40) (1,972) (1,936)

(873) (22,230)

(3,368) -

-

-

(704) -

(8) (348)

(4,952) (22,520)

(23)

-

-

-

-

-

(23)

(242) (139)

(19) -

(135) (190)

(27) -

(19) -

(8) (36)

(449) (359)

Total liabilities (excluding net assets attributable to redeemable participating shareholders)

(25,521)

(4,161)

(677)

(595)

(896)

(481)

(32,251)

Net assets attributable to redeemable participating shareholders at the end of the period

392,640

182,202

75,025

36,154

22,711

15,280

713,796

LIABILITIES Payable for investments purchased Payable for shares redeemed Other payables Financial liabilities at fair value through profit or loss: Financial derivative instruments Unrealised losses on contracts for difference Unrealised losses on credit default swaps Unrealised losses on exchange traded options written Unrealised losses on forward currency contracts Unrealised losses on futures contracts

1

HI Numen Bear Rates Fund launched on 7 April 2017.

The accompanying notes form an integral part of these financial statements.

18

HEDGE INVEST INTERNATIONAL FUNDS plc STATEMENT OF FINANCIAL POSITION (continued)

ASSETS Cash and cash equivalents Margin cash Collateral cash Receivable for investments sold Receivable for shares subscribed Other receivables Financial assets at fair value through profit or loss: Investment funds Investment in exchange traded funds Investment in investment funds2 Transferable securities Investment in bonds Investment in equities Investment in exchange traded notes Money Market instruments Investment in time deposits Financial derivative instruments Unrealised gains on contracts for difference Unrealised gains on credit default swaps Unrealised gains on exchange traded options purchased Unrealised gains on forward currency contracts Unrealised gains on futures contracts Unrealised gains on interest rate swaps Unrealised gains on swaptions purchased Total assets

HI Numen Credit Fund as at 30 June 2017 EUR ’000

HI Principia Fund as at 30 June 2017 EUR ’000

HI Sibilla Macro Fund as at 30 June 2017 EUR ’000

HI Core UCITS Fund as at 30 June 2017 EUR’000

HI Africa Opportunities Fund as at 30 June 2017 EUR’000

HI Numen Bear Rates Fund1 as at 30 June 2017 USD’000

Company Total as at 30 June 2017 EUR ’000

49,118 17,843 135,254 3,096 1,847

20,823 18,561 7,389 556 179 189

11,513 13,734 4,736 611 57

2,300 62

2,351 1,894 272 -

10,347 729 110 10

95,177 50,777 149,369 4,535 179 2,164

-

-

-

1,875 33,272

-

-

1,875 25,534

246,149 42,318 -

71,551 -

15,135 -

-

15,579 -

1,141

261,284 129,448 1,000

-

59,918

34,699

-

681

-

95,298

2,106 14,318

1,836 -

-

-

188 -

10

4,130 14,327

233

329

-

-

-

-

562

1,411 588 514,281

268 181,599

1,112 81,597

13 37,522

1 20,966

43 162 12,552

2,843 730 839,232

1

HI Numen Bear Rates Fund launched on 7 April 2017.

2

Cross holdings within the Company have been eliminated on combination. See Note 5.

19

HEDGE INVEST INTERNATIONAL FUNDS plc STATEMENT OF FINANCIAL POSITION (continued) HI Numen Credit Fund as at 30 June 2017 EUR ’000

HI Principia Fund as at 30 June 2017 EUR ’000

HI Sibilla Macro Fund as at 30 June 2017 EUR ’000

HI Core UCITS Fund as at 30 June 2017 EUR’000

HI Africa Opportunities Fund as at 30 June 2017 EUR’000

HI Numen Bear Rates Fund1 as at 30 June 2017 USD’000

Company Total as at 30 June 2017 EUR ’000

(22,156) (1,013)

(14,117) (6) (2,251)

(1) (611) (256)

(1,292) (155)

(142)

(49)

(1) (36,884) (1,298) (3,860)

(2,755) (27,044)

(2,474) -

(21) -

-

(11) -

(135)

(5,261) (27,162)

(8)

-

-

-

-

-

(8)

(524) (628) -

(133) -

(59) -

(22) -

(5) -

(41) -

(743) (664) -

Total liabilities (excluding net assets attributable to redeemable participating shareholders)

(54,128)

(18,981)

(948)

(1,469)

(158)

(225)

(75,881)

Net assets attributable to redeemable participating shareholders at the end of the year

460,153

162,618

80,649

36,053

20,808

12,327

763,351

LIABILITIES Bank overdraft Payable for investments purchased Payable for shares redeemed Other payables Financial liabilities at fair value through profit or loss: Financial derivative instruments Unrealised losses on contracts for difference Unrealised losses on credit default swaps Unrealised losses on exchange traded options written Unrealised losses on forward currency contracts Unrealised losses on futures contracts Unrealised losses on interest rate swaps Unrealised losses on swaptions written

1

HI Numen Bear Rates Fund launched on 7 April 2017.

The accompanying notes form an integral part of these financial statements.

.

20

HEDGE INVEST INTERNATIONAL FUNDS plc STATEMENT OF COMPREHENSIVE INCOME HI Numen Credit Fund for the period ended 31 December 2017 EUR ’000

HI Principia Fund for the period ended 31 December 2017 EUR ’000

HI Sibilla Macro Fund for the period ended 31 December 2017 EUR ’000

HI Core UCITS Fund for the period ended 31 December 2017 EUR’000

HI Africa Opportunities Fund for the period ended 31 December 2017 EUR’000

HI Numen Bear Rates Fund1 for the period ended 31 December 2017 USD’000

Company Total for the period ended 31 December 2017 EUR ’000

4,862 274 123 5,008 3

361 169 1 27

75 30 167 15

13 85

395 246 1

25 27 4

5,353 924 292 168 5,031 134

3,287

(654)

537

506

1,463

(948)

4,423

Total revenue

13,557

(96)

824

604

2,105

(892)

16,325

Contracts for difference expense Investment management fee

(1,253) (3,156)

(98) (1,432)

(6) (666)

(185)

(60) (211)

(55) (107)

(1,464) (5,741)

-

(166)

-

(11)

-

-

(177)

(5,076) (229) (1,018) (10,732) 2,825

(38) (450) (2,184) (2,280)

(60) (168) (900) (76)

(133) (329) 275

(166) (437) 1,668

(65) (12) (113) (352) (1,244)

(5,131) (337) (2,031) (14,881) 1,444

2,825

(2,280)

(76)

275

1,668

(1,244)

1,444

15

(69)

(10)

1

(27)

-

(90)

2,840

(2,349)

(86)

276

1,641

(1,244)

1,354

Operating income Bond interest income Dividend income Income from contracts for difference Income from liquidity instruments Swap interest income Other income Net gains /(losses) on financial assets/liabilities at fair value through profit or loss2

Performance fee Swap interest expense Transaction costs Operating expenses Total operating expenses Net operating profit/(loss) Increase/(decrease) in net assets attributable to holders of redeemable participating shares before tax Withholding tax Increase/(decrease) in net assets attributable to holders of redeemable participating shares 1

HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available.

2

Gains on cross investments within the Company have been eliminated on combination. See Note 5.

There are no gains or losses arising in the period other than those dealt within 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.

21

HEDGE INVEST INTERNATIONAL FUNDS plc STATEMENT OF COMPREHENSIVE INCOME (continued) HI Numen Credit Fund for the period ended 31 December 2016 EUR ’000 2,451

HI Africa Opportunities Fund for the period ended 31 December 2016 EUR ’000

HI Principia Fund for the period ended 31 December 2016 EUR ’000

HI Sibilla Macro Fund for the period ended 31 December 2016 EUR ’000

HI Core UCITS Fund for the period ended 31 December 2016 EUR ’000

-

70

17

5

2,543 866 64

Company Total for the period ended 31 December 2016 EUR ’000

Operating income -

Bond interest income

-

Dividend income

-

Income from contracts for difference

-

Income from liquidity instruments

-

Swap interest income

Other income Net (losses)/gains on financial assets/liabilities at fair value through profit or loss1 Total revenue Contracts for difference expense Investment management fee Performance fee Swap interest expense Transaction costs

247

491

18

24

86

64

-

-

-

-

84

-

-

84

-

-

5,008

-

-

-

-

5,008

-

4

7

88

-

99

(14,568)

1,392

3,326

799

699

(8,299)

(6,798)

1,887

3,505

928

790

365

(497)

(481)

(24)

-

(121)

(1,123)

(6,393)

(1,501)

(758)

(207)

(282)

(9,141)

-

(5)

-

-

-

(5)

(6,947)

-

-

-

-

(6,947)

(699)

(122)

(69)

-

-

(890)

(1,372)

(455)

(248)

(192)

(223)

(2,490)

Total operating expenses

(15,908)

(2,564)

(1,099)

(399)

(626)

(20,596)

Net operating (loss)/profit (Decrease)/increase in net assets attributable to holders of redeemable participating shares before tax Withholding tax

(22,706)

(677)

2,406

529

164

(20,231)

(22,706)

(677)

2,406

529

164

(20,231)

(35)

(29)

(2)

(2)

(9)

(77)

(22,741)

(706)

2,404

527

155

(20,308)

Operating expenses

(Decrease)/increase in net assets attributable to holders of redeemable participating shares 1

Gains on cross investments within the Company have been eliminated on combination. See Note 5.

There are no gains or losses arising in the period other than those dealt within 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.

22

HEDGE INVEST INTERNATIONAL FUNDS plc STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES HI Numen Credit Fund for the period ended 31 December 2017 EUR ’000

HI Principia Fund for the period ended 31 December 2017 EUR ’000

HI Sibilla Macro Fund for the period ended 31 December 2017 EUR ’000

HI Core UCITS Fund for the period ended 31 December 2017 EUR’000

HI Africa Opportunities Fund for the period ended 31 December 2017 EUR’000

HI Numen Bear Rates Fund1 for the period ended 31 December 2017 USD’000

Company Total for the period ended 31 December 2017 EUR ’000

460,153

162,618

80,649

36,053

20,808

12,327

763,351

-

-

-

-

-

-

(593)

2,840

(2,349)

(86)

276

1,641

(1,244)

1,354

23,211

40,515

13,037

2,589

1,650

5,240

85,444

(93,564)

(18,582)

(18,575)

(2,764)

(1,388)

(1,043)

(135,760)

(70,353)

21,933

(5,538)

(175)

262

4,197

(50,316)

392,640

182,202

75,025

36,154

22,711

15,280

713,796

Net assets attributable to holders of redeemable participating shares at the beginning of the period Notional foreign exchange adjustment Increase/(decrease) in net assets attributable to holders of redeemable participating shares Share transactions2: Proceeds from issue of redeemable participating shares Payments on redemption of redeemable participating shares (Decrease)/increase in net assets resulting from share transactions Net assets attributable to holders of redeemable participating shares at the end of the period 1

HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available.

2

Cross subscriptions within the Company have been eliminated on combination. See Note 5.

The accompanying notes form an integral part of these financial statements.

23

HEDGE INVEST INTERNATIONAL FUNDS plc STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES (continued) HI Numen Credit Fund for the period ended 31 December 2016 EUR ’000

HI Principia Fund for the period ended 31 December 2016 EUR ’000

HI Sibilla Macro Fund for the period ended 31 December 2016 EUR ’000

HI Core UCITS Fund for the period ended 31 December 2016 EUR ’000

HI Africa Opportunities Fund for the period ended 31 December 2016 EUR ’000

Company Total for the period ended 31 December 2016 EUR ’000

1,003,467

177,403

89,212

40,662

34,323

1,336,590

(22,741)

(706)

2,404

527

155

(20,308)

72,088

12,486

4,507

2,324

929

92,688

(369,608)

(24,381)

(8,636)

(7,178)

(4,366)

(414,169)

(297,520)

(11,895)

(4,129)

(4,854)

(3,437)

(321,481)

683,206

164,802

87,487

36,335

31,041

994,801

Net assets attributable to holders of redeemable participating shares at the beginning of the period (Decrease)/increase in net assets attributable to holders of redeemable participating shares Share transactions:1 Proceeds from issue of redeemable participating shares Payments on redemption of redeemable participating shares Decrease in net assets resulting from share transactions Net assets attributable to holders of redeemable participating shares at the end of the period 1

Cross subscriptions within the Company have been eliminated on combination. See Note 5.

The accompanying notes form an integral part of these financial statements.

24

HEDGE INVEST INTERNATIONAL FUNDS plc STATEMENT OF CASH FLOWS1

Cash flows from operating activities: Increase/(decrease) in net assets attributable to holders of redeemable participating shares Adjustments to reconcile net profit to net cash provided by/(used in) operating activities:

HI Numen Credit Fund

HI Principia Fund

HI Sibilla Macro Fund

HI Core UCITS Fund

HI Africa Opportunities Fund

for the period ended

for the period ended

for the period ended

for the period ended

for the period ended

31 December 2017 EUR ’000

31 December 2017 EUR ’000

31 December 2017 EUR ’000

31 December 2017 EUR’000

31 December 2017 EUR’000

2,840

(2,349)

(86)

276

1,641

21,839

(1,829)

(5,480)

(370)

(3,540)

HI Numen Bear Rates Fund2 for the period ended 31 December 2017 USD’000

Company Total

for the period ended 31 December 2017 EUR ’000

(1,244)

1,354

Decrease/(increase)in operating assets: Financial assets at fair value through profit or loss Other receivables and prepayments (Decrease)/increase in operating liabilities: Financial liabilities at fair value through profit or loss Other payables Net cash provided by/(used in) operating activities

2,227

617

582

20

126

(10,763) (

(26)

1,639 1

3,551

( (7,452)

780

245

5

707

224

(5,535)

(22,361)

(15,887)

(601)

26

31

32

(38,768)

(2,907)

(18,668)

(5,340)

(43)

(1,035)

(11,777)

(37,759)

-

-

-

-

-

-

(593)

23,191

38,967

13,037

2,589

1,650

5,240

83,876

(92,358)

(18,295)

(18,489)

(3,669)

(1,388)

(1,043)

(135,086)

(69,167)

20,672

(5,452)

(1,080)

262

4,197

(51,210)

(72,074)

2,004

(10,792)

(1,123)

(773)

(7,580)

(89,562)

202,215

46,773

29,982

2,300

4,245

11,186

295,322

130,141

48,777

19,190

1,177

3,472

3,606

205,760

Adjustment for non-cash items Notional foreign exchange adjustment 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 (used in)/provided by financing activities Net (decrease)/increase in cash and cash equivalents Cash, cash equivalents and pledged cash, beginning of period Cash, cash equivalents and pledged cash, end of period 1

The indirect method has been applied in the preparation of the statement of cash flows for the Company. HI Numen Bear Rates Fund launched on 7 April 2017, therefore no comparative data is available.

2

Supplementary information

Interest received

9,157

197

224

-

381

31

261

448

30

13

115

-

867

(6,842)

(359)

(48)

(3)

(70)

(122)

(7,424)

Dividends received Interest paid

The accompanying notes from an integral part of these financial statements.

25

9,985

HEDGE INVEST INTERNATIONAL FUNDS plc STATEMENT OF CASH FLOWS1 (continued) HI Numen Credit Fund for the period ended 31 December 2016 EUR ’000

HI Principia Fund for the period ended 31 December 2016 EUR ’000

HI Sibilla Macro Fund for the period ended 31 December 2016 EUR ’000

HI Core UCITS Fund for the period ended 31 December 2016 EUR ’000

HI Africa Opportunities Fund for the period ended 31 December 2016 EUR ’000

Company Total for the period ended 31 December 2016 EUR ’000

(22,741)

(706)

2,404

527

155

(20,308)

Cash flows from operating activities: (Decrease)/increase in net assets attributable to holders of redeemable participating shares Adjustments to reconcile net profit to net cash provided by/(used in) operating activities: Decrease/(increase) in operating assets: Financial assets at fair value through profit or loss

282,733

5,972

(4,368)

2,659

138

286,727

Other receivables and prepayments

7,611

4,590

(8,407)

2,107

435

6,336

Increase/(decrease) in operating liabilities: Financial liabilities at fair value through profit or loss Other payables

2,148

(1,180)

(987)

11

440

432

(13,746)

(8,740)

13,182

68

(1,426)

(10,662)

Net cash provided by/(used in) operating activities

256,005

(64)

1,824

5,372

(258)

262,525

69,957

12,423

4,507

2,324

386

89,951

Payments for redemption of redeemable participating shares during the period

(295,635)

(24,157)

(8,521)

(6,479)

(3,823)

(338,615)

Net cash (used in)/ provided by financing activities

(225,678)

(11,734)

(4,014)

(4,155)

(3,437)

(248,664)

30,327

(11,798)

(2,190)

1,217

(3,695)

13,861

Cash, cash equivalents and pledged cash, beginning of period

286,882

43,784

23,979

1,257

6,887

362,789

Cash, cash equivalents and pledged cash, end of period

317,209

31,986

21,789

2,474

3,192

376,650

6,609

80

142

17

5

6,853

221

430

18

17

86

772

(8,019)

(619)

(65)

(9)

(148)

(8,860)

Cash flows from financing activities Proceeds from issue of redeemable participating shares during the period

Net increase/(decrease) in cash and cash equivalents

1The

indirect method has been applied in the preparation of the statement of cash flows for the Company.

Supplementary information Interest received Dividends received Interest paid The accompanying notes from an integral part of these financial statements.

26

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS For the period from 01 July 2017 to 31 December 2017 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. Statement of compliance The financial statements for the period ended 31 December 2017 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”). The 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 financial statements are also prepared in accordance with the UCITS Regulations. The accounting policies used in these interim unaudited financial statements are consistent with those used in the last audited financial statements. 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 NAV 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 in Euro. Share class name EUR A Shares EUR DM Shares EUR FOF Shares EUR I Initial Shares EUR I Shares EUR M Shares EUR R Shares USD I2 Shares USD R Shares CHF R Shares EUR D Shares USD D Shares CHF D Shares CHF DM2 Shares EUR DM2 Shares EUR I2 Shares USD DM2 Shares GBP I2 Shares GBP DM2 Shares GBP M Shares

Investment Management fee 1.00% 1.00% 1.75% 1.00% 1.50% 0.00% 1.75% 1.50% 1.75% 1.75% 1.75% 1.75% 1.75% 1.30% 1.30% 1.50% 1.30% 1.50% 1.30% 0.00%

Service fee 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.20% 0.20% 0.20% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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 Fund amounted to EUR 3,155,910 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 6,393,213) of which EUR 462,828 was outstanding as at period 31 December 2017 (year ended 30 June 2017: EUR 567,410). The Investment Management fee rates have not changed since the year ended 30 June 2017. The Service Fee incurred by the Fund amounted to EUR 69,205 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 119,075) of which EUR 10,438 was outstanding as at period ended 31 December 2017 (year ended 30 June 2017: EUR 12,677).

27

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 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 (“NAV”) attributable to the relevant Share class as set out below, 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 EUR R Shares GBP M Shares USD DM Shares USD R Shares CHF R Shares

Investment Management fee 1.00% 2.00% 1.50% 2.00% 0.00% 1.00% 2.00% 2.00%

Service fee 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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 Fund amounted to EUR 1,432,254 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 1,500,631) of which EUR 233,070 was outstanding as at period ended 31 December 2017 (year ended 30 June 2017: EUR 229,049). The Investment Management fee rates have not changed since the year ended 30 June 2017. HI Sibilla Macro 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 NAV attributable to the relevant Share class as set out below, 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 R Shares CHF DM Shares CHF R Shares

Investment Management fee 1.00% 2.00% 2.00% 2.00% 1.00% 2.00%

Service fee 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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 Fund amounted to EUR 666,303 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 757,531) of which EUR 103,255 was outstanding as at period ended 31 December 2017 (year ended 30 June 2017: EUR 112,370). The Investment Management fee rates have not changed since the year ended 30 June 2017. HI Core UCITS 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 NAV attributable to the relevant Share class as set out overleaf, which is accrued as of each Dealing Day and paid monthly in arrears in Euro.

28

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 2.

Fees and expenses (continued)

a)

Investment management fees (continued)

HI Core UCITS Fund (continued) Share class name EUR DM Shares EUR I Shares EUR R Shares USD DM Shares USD R Shares CHF DM Shares CHF R Shares

Investment Management fee 0.80% 1.50% 2.00% 0.80% 2.00% 0.80% 2.00%

Service fee 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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 Fund amounted to EUR 185,191 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 207,288) of which EUR 29,662 was outstanding as at period ended 31 December 2017 (year ended 30 June 2017: EUR 31,007). The Investment Management fee rates have not changed since the year ended 30 June 2017. HI Africa Opportunities 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 NAV attributable to the relevant Share class as set out below, 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 EUR D Shares USD D Shares USD DM Shares CHF D Shares

Investment Management fee 1.30% 2.00% 1.50% 1.75% 1.75% 1.30% 1.75%

Service fee 0.00% 0.00% 0.00% 0.35% 0.35% 0.00% 0.35%

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 210,629 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 282,311) of which EUR 34,128 was outstanding as at period ended 31 December 2017 (year ended 30 June 2017: EUR 33,557). The Investment Management fee rates have not changed since the year ended 30 June 2017. The Service Fee incurred by the Fund amounted to EUR 2,119 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 4,141) of which EUR 354 was outstanding as at period ended 31 December 2017 (year ended 30 June 2017: EUR 353). HI Numen Bear Rates 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 NAV attributable to the relevant Share class as set out below, which is accrued as of each Dealing Day and paid monthly in arrears. Share class name EUR FOF Shares EUR D Shares EUR Initial Shares

Investment Management fee 1.50% 1.50% 0.50%

Service fee 0.00% 0.25% 0.00%

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.

29

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 2.

Fees and expenses (continued)

a)

Investment management fees (continued)

HI Numen Bear Rates Fund (continued) The Investment Management Fee incurred by the Fund amounted to USD 106,599 for the period ended 31 December 2017 of which USD 15,167 was outstanding as at period ended 31 December 2017 (period ended 30 June 2017: USD 14,661). The Service Fee incurred by the Fund amounted to USD 1,452 for the period ended 31 December 2017 of which USD Nil was outstanding as at period ended 31 December 2017 (period ended 30 June 2017: USD Nil). b)

Performance fees

HI Numen Credit Fund The performance fee is equal to 10% (in the case of the EUR I Initial Shares and EUR A Shares) and 15% (in the case of the EUR DM Shares, EUR I Shares, EUR FOF Shares, EUR R Shares, CHF R Shares and USD R Shares) of the increase of the NAV per share of the relevant hurdle share class outstanding in respect of each performance period above the hurdle performance and subject to the high water mark. The Investment Manager is entitled to receive a performance fee in respect of the relevant non-hurdle share class (EUR I2 Shares, EUR D Shares, EUR DM2 Shares, GBP D Shares, GBP I2 Shares, GBP DM2 Shares, USD D Shares, USD DM2 Shares, USD I2 Shares, CHF D Shares, CHF DM2 Shares), equal to 20% of the increase of the NAV per share of the relevant non-hurdle share class, outstanding in respect of each performance period and subject to the high water mark. Performance period refers to each calendar quarter ending 31 December, 31 March, 30 June, and 30 September. The performance fee shall be calculated and accrued on each dealing day. The performance fee incurred by the Fund amounted to EUR Nil for the period ended 31 December 2017 (period ended 31 December 2016: EUR Nil) of which EUR Nil was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR Nil). HI Principia Fund A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the NAV 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 accrued on each dealing date. As the performance fee depends on the performance of the NAV 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 165,728 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 4,625) of which EUR Nil was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 1,757,886). HI Sibilla Macro Fund A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the NAV 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 accrued on each dealing date. As the performance fee depends on the performance of the NAV 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 Nil for the period ended 31 December 2017 (period ended 31 December 2016: EUR Nil) of which EUR Nil was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR Nil).

30

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 2.

Fees and expenses (continued)

b)

Performance fees (continued)

HI Core UCITS Fund A performance fee in respect of all share classes of the Fund equal to 10% of the increase of the NAV 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 accrued on each dealing date. As the performance fee depends on the performance of the NAV 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 11,342 for the period ended 31 December 2017 (period ended 31 December 2016: EUR Nil) of which EUR 655 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 886). HI Africa Opportunities Fund A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the NAV 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 accrued on each dealing date. As the performance fee depends on the performance of the NAV 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 Nil for the period ended 31 December 2017 (period ended 31 December 2016: EUR Nil) of which EUR Nil was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR Nil). HI Numen Bear Rates Fund A performance fee in respect of all share classes of the Fund equal to 20% of the increase of the NAV 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 accrued on each dealing date. As the performance fee depends on the performance of the NAV 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 USD Nil for the period ended 31 December 2017 of which USD Nil was outstanding as at period ended 31 December 2017 (period ended 30 June 2017: USD Nil). c)

Administrator’s fees

HI Numen Credit Fund The Company shall pay the Administrator 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 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 312,033 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 186,638) of which EUR 94,763 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 107,105).

31

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 2.

Fees and expenses (continued)

c)

Administrator’s fees (continued)

HI Principia Fund The Company shall pay the Administrator 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 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 114,662 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 107,457) of which EUR 72,812 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 61,095). HI Sibilla Macro Fund The Company shall pay the Administrator 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 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 68,939 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 77,921) of which EUR 48,333 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 43,414). HI Core UCITS Fund The Company shall pay the Administrator out of the assets of the Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 63,851 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 65,765) of which EUR 52,513 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 43,072). HI Africa Opportunities Fund The Company shall pay the Administrator out of the assets of the Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to EUR 69,118 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 83,583) of which EUR 47,203 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 40,317). HI Numen Bear Rates Fund The Company shall pay the Administrator out of the assets of the Fund an annual fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.10% per annum of the NAV of the Fund (subject to a minimum annual fee of EUR 50,000). The Administrator’s fee incurred by the Fund amounted to USD 55,131 for the period ended 31 December 2017 of which USD 44,814 was outstanding as at 31 December 2017 (period ended 30 June 2017: USD 22,520). 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. d)

Depositary’s fees

HI Numen Credit Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the NAV of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 84,264 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 180,227) of which EUR 79,231 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 71,881).

32

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 2.

Fees and expenses (continued)

d)

Depositary’s fees (continued)

HI Principia Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the NAV of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 47,303 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 57,361) of which EUR 37,429 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 27,643). HI Sibilla Macro Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the NAV of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 12,876 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 9,575) of which EUR 11,810 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 13,946). HI Core UCITS Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the NAV of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 25,384 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 25,344) of which EUR 21,243 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 17,528). HI Africa Opportunities Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee, calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the NAV of each Fund (subject to a minimum annual depositary fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund). The Depositary’s fee incurred by the Fund amounted to EUR 53,462 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 26,999) of which EUR 51,627 was outstanding as at 31 December 2017 (year ended 30 June 2017: EUR 28,234). HI Numen Bear Rates Fund The Company shall pay the Depositary out of the assets of the Fund an annual depositary fee calculated and accrued daily and payable monthly in arrears at a rate of up to a maximum of 0.03% per annum of the NAV of each Fund (subject to a minimum annual fee of EUR 40,000 at the Company level and a minimum annual depositary fee of EUR 24,000 per Fund).). The Depositary’s fee incurred by the Fund amounted to USD 20,948 for the period ended 31 December 2017 of which USD 18,035 was outstanding as at period ended 31 December 2017 (period ended 30 June 2017: USD 6,730). The Depositary 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. 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 50,000 in any one financial year without the approval of the Board. Francesco Rovati, a non-executive Director, does not receive any remuneration. 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 Directors’ fees incurred by the Company amounted to EUR 32,750 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 32,968).

33

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 2.

Fees and expenses (continued)

f)

Audit fees

The audit fees incurred by the Company amounted to EUR 29,700 for the period ended 31 December 2017 (period ended 31 December 2016: EUR 28,009). Fees relate solely to the audit of the Company. The audit fees paid to KPMG in respect of reimbursement of expenses during the period ended 31 December 2017 was EUR 865 (period ended 31 December 2016: EUR: 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, not exceeding EUR 55,000 for the HI Principia Fund, HI Sibilla Macro Fund, HI Core UCITS Fund and HI Africa Opportunities Fund and not exceeding EUR 50,000 for HI Numen Bear Rates 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 and overleaf:

Hedge Invest International Funds plc

HI Numen Credit Fund 31 December 2017

HI Principia Fund 31 December 2017

HI Sibilla Macro Fund 31 December 2017

EUR ‘000

EUR ‘000

EUR ‘000

392,640

182,202

75,025

-

-

7 7

392,640

182,202

75,032

HI Core UCITS Fund 31 December 2017

HI Africa Opportunities Fund 31 December 2017

HI Numen Bear Rates Fund 31 December 2017

EUR ‘000

EUR ‘000

USD‘000

36,154

22,711

15,280

12 12

24 24

38 38

36,166

22,735

15,318

HI Numen Credit Fund 30 June 2017 EUR ‘000

HI Principia Fund 30 June 2017 EUR ‘000

HI Sibilla Macro Fund 30 June 2017 EUR ‘000

460,153

162,618

80,649

-

3 3

11 11

460,153

162,621

80,660

Net assets attributable to redeemable participating shareholders at the end of the period per Financial Statements Adjustment to establishment costs Total adjustment for the period Net assets attributable to redeemable participating shareholders at the end of the period

Hedge Invest International Funds plc Net assets attributable to redeemable participating shareholders at the end of the period per Financial Statements Adjustment to establishment costs Total adjustment for the period Net assets attributable to redeemable participating shareholders at the end of the period

Hedge Invest International Funds plc Net assets attributable to redeemable participating shareholders at the end of the year per Financial Statements Adjustment to establishment costs Total adjustment for the year Net assets attributable to redeemable participating shareholders at the end of the year

34

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 3.

Adjustment to align to the valuation methodology as set out in the prospectus (continued)

The adjustment between the financial statements NAV and the valuation methodology set out in the prospectus is shown below (continued):

Hedge Invest International Funds plc Net assets attributable to redeemable participating shareholders at the end of the year/period per Financial Statements Adjustment to establishment costs Total adjustment for the year/period Net assets attributable to redeemable participating shareholders at the end of the year/period 4.

HI Core UCITS Fund 30 June 2017 EUR ‘000

HI Africa Opportunities Fund 30 June 2017 EUR ‘000

HI Numen Bear Rates Fund 30 June 2017 USD‘000

36,053

20,808

12,327

16 16

29 29

42 42

36,069

20,837

12,369

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 2017 € 33,315,065 309,485 € 107.65

30 June 2017 € 36,674,326 344,829 € 106.36

EUR DM Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 2,967,510 26,738 € 110.99

30 June 2017 € 3,539,708 32,281 € 109.65

EUR FOF Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 1,042,259 9,361 € 111.34

30 June 2017 € 1,033,613 9,361 € 110.42

EUR I Initial Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 21,442,069 180,227 € 118.97

30 June 2017 € 21,184,821 180,227 € 117.55

EUR I Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 3,493,338 30,769 € 113.53

30 June 2017 € 6,939,434 61,710 € 112.45

EUR M Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 1,536,584 13,837 € 111.05

30 June 2017 € 1,510,598 13,837 € 109.17

EUR R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 50,711,531 458,064 € 110.71

30 June 2017 € 60,693,980 552,819 € 109.79

USD R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 370,335 3,288 $ 112.62

30 June 2017 $ 632,716 5,724 $ 110.54

35

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 4.

Net asset value per share as per the valuation methodology as set out in the prospectus (continued)

HI Numen Credit Fund (continued) CHF R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 CHF 477,989 4,537 CHF 105.34

30 June 2017 CHF 1,943,877 18,560 CHF 104.73

EUR D Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 56,674,283 594,700 € 95.30

30 June 2017 € 63,080,937 666,800 € 94.60

USD D Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 8,176,053 83,443 $ 97.98

30 June 2017 $ 12,607,099 130,937 $ 96.28

CHF D Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 CHF 1,957,926 21,002 CHF 93.22

30 June 2017 CHF 2,098,009 22,617 CHF 92.76

CHF DM2 Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 CHF 1,856,309 19,732 CHF 94.08

30 June 2017 CHF 2,077,897 22,271 CHF 93.30

EUR DM2 Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 14,009,227 143,547 € 97.59

30 June 2017 € 35,079,047 363,272 € 96.56

EUR I2 Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 178,385,731 1,850,643 € 96.39

30 June 2017 € 179,504,710 1,880,161 € 95.47

USD DM2 Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 2,730,601 27,212 $ 100.34

30 June 2017 $ 9,401,194 95,680 $ 98.26

GBP I2 Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 £ 12,829,355 129,081 £ 99.39

30 June 2017 £ 13,011,348 132,726 £ 98.03

GBP DM2 Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 £ 985,501 9,893 £ 99.62

30 June 2017 £ 8,943,664 91,197 £ 98.07

USD I2 Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 528,652 5,306 $ 99.63

30 June 2017 $ 518,080 5,306 $ 97.64

36

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 4.

Net asset value per share as per the valuation methodology as set out in the prospectus (continued)

HI Principia Fund EUR DM Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 58,721,866 448,831 € 130.83

30 June 2017 € 41,522,632 314,580 € 131.99

EUR FOF Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 25,533,584 203,993 € 125.17

30 June 2017 € 26,222,184 206,736 € 126.84

EUR I Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 13,533,087 105,552 € 128.21

30 June 2017 € 13,023,874 100,468 € 129.63

EUR R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 80,181,849 631,896 € 126.89

30 June 2017 € 77,276,593 600,969 € 128.59

GBP M Shares1 Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 £ 247,651 2,500 £ 99.06

30 June 2017 -

USD DM Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 498,946 4,431 $ 112.62

30 June 2017 $ 499,169 4,430 $ 112.67

USD R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 2,863,411 22,020 $ 130.03

30 June 2017 $ 2,941,644 22,508 $ 130.69

CHF R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 CHF 1,348,755 10,922 CHF 123.49

30 June 2017 CHF 1,703,207 13,573 CHF 125.49

1

On 15 November 2017, GBP M Share class was launched for HI Principia Fund.

HI Sibilla Macro Fund EUR DM Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 22,099,162 209,173 € 105.65

30 June 2017 € 24,966,270 237,551 € 105.10

EUR FOF Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 20,792,641 204,529 € 101.66

30 June 2017 € 22,083,313 217,280 € 101.64

37

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 4.

Net asset value per share as per the valuation methodology as set out in the prospectus (continued)

HI Sibilla Macro Fund (continued) EUR R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 27,382,514 268,964 € 101.81

30 June 2017 € 28,249,397 277,549 € 101.78

USD R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 4,156,431 39,417 $ 105.44

30 June 2017 $ 3,784,844 36,316 $ 104.22

CHF DM Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 CHF 155,714 1,505 CHF 103.44

30 June 2017 CHF 155,273 1,505 CHF 103.15

CHF R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 CHF 1,360,708 13,654 CHF 99.66

30 June 2017 CHF 2,075,526 20,782 CHF 99.87

EUR DM Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 26,934,698 238,769 € 112.81

30 June 2017 € 27,078,827 242,766 € 111.54

EUR I Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 2,523,448 23,003 € 109.70

30 June 2017 € 2,858,961 26,273 € 108.82

EUR R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 4,148,659 39,195 € 105.85

30 June 2017 € 4,215,693 40,051 € 105.26

USD DM Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 1,271,492 12,371 $ 102.78

30 June 2017 $ 1,246,199 12,371 $ 100.73

USD R Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 1,053,198 9,469 $ 111.23

30 June 2017 $ 938,403 8,567 $ 109.53

CHF DM Shares1 Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 CHF 399,731 4,000 CHF 99.93

30 June 2017 -

CHF R Shares2 Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 CHF 329,612 3,300 CHF 99.88

30 June 2017 -

HI Core UCITS Fund

1

On 6 October 2017, CHF DM Share class was launched for HI Core UCITS Fund. On 28 November 2017, CHF R Share class was launched for HI Core UCITS Fund.

2

38

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 4.

Net asset value per share as per the valuation methodology as set out in the prospectus (continued)

HI Africa Opportunities Fund EUR DM Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 2,727,327 26,017 € 104.83

30 June 2017 € 1,093,678 11,286 € 96.90

EUR FOF Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 18,599,825 181,217 € 102.64

30 June 2017 € 18,299,962 192,210 € 95.21

EUR I Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 102,166 947 € 107.89

30 June 2017 € 194,356 1,947 € 99.82

EUR D Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 930,429 9,077 € 102.50

30 June 2017 € 885,752 9,311 € 95.13

USD D Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 413,889 3,958 $ 104.56

30 June 2017 $ 381,008 3,958 $ 96.25

USD DM Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 $ 36,351 342 $ 106.13

30 June 2017 $ 33,328 343 $ 97.30

EUR FOF Shares Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 10,118,039 115,253 € 87.79

30 June 2017 € 9,853,059 100,000 € 98.53

EUR D Shares1 Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 -

30 June 2017 € 991,676 10,000 € 99.17

EUR Initial Shares2 Net Asset Value Number of Shares in Issue Net Asset Value per share

31 December 2017 € 2,638,621 29,730 € 88.75

30 June 2017 -

HI Numen Bear Rates Fund

1

On 24 November 2017, EUR D Share class was fully redeemed for HI Numen Bear Rates Fund. On 27 July 2017, EUR Initial Share class was launched for HI Numen Bear Rates Fund.

2

39

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 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 Money Laundering Reporting Officer (“MLRO”) and foreign registration services to the Company. The fees earned by Teddy Otto and John Skelly amounted to EUR 10,000 each for the period ending 31 December 2017 (31 December 2016: EUR 10,000 each). The fees earned by Carne Global Financial Services Limited amounted to EUR 41,598 for the period ending 31 December 2017 (31 December 2016: EUR 37,547), which includes Company Secretary fees of EUR 5,000 for the period ending 31 December 2017 (31 December 2016: EUR 5,000). Francesco Rovati, a Director of the Company, is an employee of Hedge Invest SGR P.A., the Investment Manager. Funds and accounts managed by the Investment Manager owned 12.55% of the Company as at 31 December 2017 (as at 30 June 2017: 11.83%). The Managers, Directors and employees of the Investment Manager and Sub-Investment Managers owned 0.74% of the Company as at 31 December 2017 (as at 30 June 2017: 0.67%). 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. Cross holdings within Company At 31 December 2017 HI Core UCITS Fund held a cross holding in HI Numen Credit Fund, HI Principia Fund, HI Africa Opportunities Fund and HI Sibilla Macro Fund. The market value of the investment at this date was EUR 7,662,040 (30 June 2017: EUR 7,737,956) and these have been eliminated on combination in the Statement of Financial Position. Net gains of EUR 89,169 (31 December 2016: EUR 52,424) have been eliminated on combination in the Statement of Comprehensive Income. Transactions with connected parties Regulation 41 (1) of the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the “Central Bank UCITS Regulations”) states that any transactions carried out with UCITS by a promoter, manager, depositary, investment adviser and/or associated or group companies of these (“connected parties”) must be carried out as if negotiated at arm’s length and 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 Regulation 41(1) of the Central Bank UCITS Regulations are applied to all transactions with connected parties and the Board of Directors is satisfied that transactions with connected parties entered into during the period complied with the obligations set out in this paragraph. 6.

Fair value Measurement

IFRS 13, ‘Fair value measurement’, requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

40

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 6.

Fair value Measurement (continued)

The level in the fair value hierarchy, within which the fair value measurement is categorised in its entirety, is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes ‘observable’ requires significant judgement by the Directors. The Directors consider observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 31 December 2017: Level 1 EUR ‘000

Level 2 EUR ‘000

Level 3 EUR ‘000

Total EUR ‘000

77,514 249 211 1,304 79,278

1,240 12,869 179,367 9,300 1,745 1,485 206,006

-

78,754 249 12869 179,367 9,300 1,745 211 1,485 1,304 285,284

(23) (139) (162) EUR ‘000

(22,230) (873) (242) (23,345) EUR ‘000

-

(22,230) (873) (23) (242) (139) (23,507) EUR ‘000

70,468 906 71,374

60,826 3,279 252 64,357

-

60,826 70,468 3,279 906 252 135,731

-

(3,368) (19) (3,387)

-

(3,368) (19) (3,387)

HI Numen Credit Fund Financial assets at fair value through profit or loss: - Equities -Warrants - Government bonds - Corporate bonds - Credit default swaps - Contracts for difference - Exchange traded options purchased - Forward currency contracts - Futures contracts Total Financial liabilities at fair value through profit or loss: - Credit default swaps - Contracts for difference - Exchange traded options written - Forward currency contracts - Futures contracts Total HI Principia Fund Financial assets at fair value through profit or loss: - Time deposits - Equities - Contracts for difference - Exchange traded options purchased - Forward currency contracts Total Financial liabilities at fair value through profit or loss: - Contracts for difference - Forward currency contracts Total

41

EUR ‘000

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 6.

Fair value Measurement (continued)

The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 31 December 2017: (continued) Level 1 EUR ‘000

HI Sibilla Macro Fund Financial assets at fair value through profit or loss: - Time deposits - Equities - Government bonds - Forward currency contracts Total

1,202 1,202

Financial liabilities at fair value through profit or loss: - Forward currency contracts - Futures contracts Total HI Core UCITS Fund Financial assets at fair value through profit or loss: - Investment funds - Exchange traded funds - Forward currency contracts Total Financial liabilities at fair value through profit or loss: - Forward currency contracts Total HI Africa Opportunities Fund Financial assets at fair value through profit or loss: - Time deposits - Equities - Government bonds - Contracts for difference - Forward currency contracts Total

40,190 13,992 1,042 55,224

42

Level 3 EUR ‘000 -

Total EUR ‘000 40,190 1,202 13,992 1,042 56,426

(190) (190) EUR ‘000

(135) (135) EUR ‘000

EUR ‘000

(135) (190) (325) EUR ‘000

1,567 1,567

33,932 31 33,963

-

33,932 1,567 31 35,530

-

(27) (27) EUR ‘000

-

(27) (27) EUR ‘000

EUR ‘000

Financial liabilities at fair value through profit or loss: - Contracts for difference - Forward currency contracts Total HI Numen Bear Rates Fund Financial assets at fair value through profit or loss: - Government bonds - Credit default swaps - Contracts for differences - Forward currency contracts - Future contracts Total Financial liabilities at fair value through profit or loss: - Credit default swaps - Contracts for differences - Forward currency contracts - Futures contracts Total

Level 2 EUR ‘000

EUR ‘000

13,441 13,441

20 6,124 354 50 6,548

-

20 13,441 6,124 354 50 19,989

USD ‘000

(704) (19) (723) USD ‘000

USD ‘000

(704) (19) (723) USD ‘000

293 293

11,327 70 158 271 11,826

-

11,327 70 158 271 293 12,119

(36) (36)

(348) (8) (8) (364)

-

(348) (8) (8) (36) (400)

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 6. Fair value Measurement (continued) The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 30 June 2017: HI Numen Credit Fund Financial assets at fair value through profit or loss: - Equities - Government bonds - Corporate bonds - Credit default swaps - Contracts for difference - Exchange traded options purchased - Forward currency contracts - Futures contracts Total Financial liabilities at fair value through profit or loss: - Credit default swaps - Contracts for difference - Exchange traded options written - Forward currency contracts - Futures contracts Total HI Principia Fund Financial assets at fair value through profit or loss: - Time deposits - Equities - Contracts for difference - Exchange traded options purchased - Forward currency contracts Total Financial liabilities at fair value through profit or loss: - Contracts for difference - Forward currency contracts Total HI Sibilla Macro Fund Financial assets at fair value through profit or loss: - Time deposits - Government bonds - Forward currency contracts Total Financial liabilities at fair value through profit or loss: - Contracts for difference - Forward currency contracts Total HI Core UCITS Fund Financial assets at fair value through profit or loss: - Investment funds - Exchange traded funds - Forward currency contracts Total

Level 1 EUR ‘000

Level 2 EUR ‘000

Level 3 EUR ‘000

Total EUR ‘000

42,318 233 588 43,139

116,056 126,779 14,318 2,106 1,411 260,670

3,314 3,314

42,318 116,056 130,093 14,318 2,106 233 1,411 588 307,123

(8) (628) (636) EUR ‘000

(27,044) (2,755) (524) (30,323) EUR ‘000

EUR ‘000

(27,044) (2,755) (8) (524) (628) (30,959) EUR ‘000

71,551 329 71,880

59,918 1,836 268 62,022

-

59,918 71,551 1,836 329 268 133,902

EUR ‘000

(2,474) (133) (2,607) EUR ‘000

EUR ‘000

(2,474) (133) (2,607) EUR ‘000

-

34,699 15,135 1,112 50,946

-

34,699 15,135 1,112 50,946

EUR ‘000

(21) (59) (80) EUR ‘000

EUR ‘000

(21) (59) (80) EUR ‘000

1,875 1,875

33,272 13 33,285

-

33,272 1,875 13 35,160

-

(22) (22)

-

(22) (22)

Financial liabilities at fair value through profit or loss: - Forward currency contracts Total

43

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 6. Fair value Measurement (continued) The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by class) measured at fair value at 30 June 2017: (continued)

HI Africa Opportunities Fund Financial assets at fair value through profit or loss: - Time deposits - Equities - Contracts for difference - Forward currency contracts Total Financial liabilities at fair value through profit or loss: - Contracts for difference - Forward currency contracts Total HI Numen Bear Rates Fund Financial assets at fair value through profit or loss: - Exchange traded notes - Credit default swaps - Forward currency contracts - Future contracts Total Financial liabilities at fair value through profit or loss: - Credit default swaps - Futures contracts Total 7.

Level 1 EUR ‘000

Level 2 EUR ‘000

Level 3 EUR ‘000

Total EUR ‘000

15,579 15,579

681 188 1 870

-

681 15,579 188 1 16,449

USD ‘000

(11) (5) (16) USD ‘000

USD ‘000

(11) (5) (16) USD ‘000

1,141 162 1,303

10 43 53

-

1,141 10 43 162 1,356

(41) (41)

(135) (135)

-

(135) (41) (176)

Efficient Portfolio Management

The Company may employ investment techniques and instruments for efficient portfolio management of the assets of the Company or of any Fund and for short-term investment purposes under the conditions and limits set out by the Central Bank under the UCITS Regulations, and in the Prospectus. The Investment Manager of the Company has identified that forward currency contracts may be used for both hedging or efficient portfolio management purposes for HI Principia Fund and HI Core UCITS Fund. For HI Numen Credit Fund, HI Sibilla Macro Fund and HI Numen Bear Rates Fund, forward currency contracts may be used for investment, hedging or efficient portfolio management purposes. For HI Africa Opportunities Fund, forward currency contracts may be used for investment or hedging purposes. Those foreign exchange contracts entered into for hedging purposes are utilised to reduce foreign exchange risk and all other financial derivative instruments (“FDI”) are used for investment purposes. Transaction costs on the purchase and sale of forward currency 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 currency contracts at the period end are disclosed in the Schedule of Investments. The Company did not enter into any repurchase agreements, reverse repurchase agreements or stock lending during the period. 8.

Contingent Liabilities

As at 31 December 2017, the Company did not have any significant commitments or contingent liabilities, other than those disclosed in the financial statements (30 June 2017: EUR Nil).

44

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 9.

Soft Commissions

During the period, the Investment Manager and the Sub-Investment Managers have not entered into soft commission arrangements with brokers for HI Numen Credit Fund, HI Numen Bear Rates Fund and HI Core UCITS Fund. For HI Principia Fund and HI Africa Opportunities Fund, the Sub-Investment Manager has in place commission sharing agreements with UBS and Bloomberg. For HI Sibilla Macro Fund, the Sub-Investment Manager has in place commission sharing agreements with BNP Paribas and FBN Securities. Under these agreements, the brokers would, when required, pay directly third party research providers for the provision of specific proprietary research and analysis and research related expenses. No payment would be paid, by the brokers, to any third party without it having been validated as a genuine and proper research provider. For HI Principia Fund, to date no use has been made of these agreements and no trading has taken place with Bloomberg since the inception of the Sub-Fund. For HI Africa Opportunities Fund, to date no use has been made of these agreements and no trading has taken place with UBS and Bloomberg. 10.

Exchange rates

The following period/year ended EUR and USD exchange rates have been used in this report: EUR AED CAD CHF DKK EGP GBP HKD JPY KES KRW NGN NOK SEK TWD USD ZAR ZMW

31 December 2017 4.4103 1.5045 1.1702 7.4454 21.3502 0.8877 9.3870 135.2701 123.9826 1285.5164 432.2880 9.8218 9.8315 35.7340 1.2008 14.8659 11.9780

30 June 2017 4.1892 1.4812 1.0922 7.4350 20.6668 0.8781 8.9036 128.1522 118.2750 1,304.9603 417.9089 9.5540 9.6200 34.6955 1.1405 14.9441 10.4018

USD CHF EUR GBP HKD JPY

31 December 2017 0.9745 0.8328 0.7392 7.8173 112.6500

30 June 2017 0.9577 0.8768 0.7699 7.8065 112.3600

11. Distributions There were no distributions made by the Company during the period ended 31 December 2017 (period ended 31 December 2016: EUR Nil).

45

HEDGE INVEST INTERNATIONAL FUNDS plc NOTES TO THE FINANCIAL STATEMENTS (continued) For the period from 01 July 2017 to 31 December 2017 12. Management fees of underlying collective investment schemes, exchange traded notes and exchange traded funds

Funds Active Funds ICAV - Global High Income Bond Fund Algebris Macro Credit Fund - Class I EUR Alpha UCITS SICAV - Amber Equity Fund - Class A EUR Andurand UCITS ICAV BlackRock Global Event Driven Fund DB Platinum Chilton European Equities - Class I2C-E Fundlogic Alternatives plc - MS Nezu Cyclicals Japan UCITS Fund - Class S EUR GAM Star Fund plc - Global Rates Fund - Class Ordinary EUR GAM Star Lux - European Alpha Fund - Class D EUR Hadron Alpha PLC - Hadron Alpha Select Fund - Class EUR HI Africa Opportunities Fund HI Numen Bear Rates Fund HI Numen Credit Fund HI Principia Fund HI Sibilla Macro Fund iShares Russell 2000 ETF iShares STOXX Europe 600 Banks UCITS ETF JABCAP LUX - Global Balanced Fund - Class N EUR Julius Baer Multilabel - ARTEMIDE Fund - Class C EUR Julius Baer Multilabel - LYRA Fund - Class C EUR Kairos international SICAV - Pegasus UCITS - Class Accumulation P EUR KL Event Driven UCITS Fund Lyxor Daily double Short BUND UCITS ETF Majedie Asset Management Investment Fund Co. - Majedie Asset Tortoise Fund - Class G Memnon Fund - European Fund - Class I EUR Memnon Fund - European Market Neutral Fund - Class I EUR Merrill Lynch Investment Solutions - York Asian Event-Driven UCITS Fund - Class USD D Merrill Lynch Investment Solutions - ZEAL Voyage Greater China UCITS Portland Hill Fund Sicav - Catalyst Driven Strategy - Class A EUR Quadra Capital - Global Equity Alpha

Management fee 0.65% 0.90% 1.50% 1.00% 0.50% 1.20% 1.00% 1.15% 1.75% 2.00% 2.00% 1.50% 1.75% 2.00% 2.00% 0.20% 0.47% 1.50% 1.00% 1.50% 1.50% 1.00% 0.20% 1.50% 1.25% 1.50% 1.25% 1.25% 1.50% 1.00%

Management fee net of rebates 0.50% 0.90% 1.50% 1.00% 0.50% 1.20% 1.00% 1.15% 1.75% 1.40% 0.00% 0.00% 0.00% 0.00% 0.00% 0.20% 0.47% 1.00% 1.00% 1.50% 1.50% 1.00% 0.20% 1.50% 0.85% 1.50% 1.25% 1.25% 1.50% 1.00%

13. Significant events On 27 July 2017, EUR Initial Share class was launched for HI Numen Bear Rates Fund. On 29 September 2017 the Sub-Investment Manager Agreement with Numen Investments Limited has been terminated. From 1 October 2017 for HI Numen Credit Fund and HI Numen Bear Rates Fund the Sub-Investment Manager is Numen Capital LLP. On 6 October 2017, CHF DM Share class was launched for HI Core UCITS Fund. On 15 November 2017, GBP M Share class was launched for HI Principia Fund. On 20 November 2017, a new Addendum to the Prospectus was issued to add particular disclosures relating to repurchase/reverse repurchase agreements and total return swaps and to update the list of the eligible markets in which investments are permitted. On 24 November 2017, EUR D Share class was fully redeemed for HI Numen Bear Rates Fund. On 28 November 2017, CHF R Share class was launched for HI Core UCITS Fund. 14. Subsequent events On 6 February 2018, EUR DM Share class was launched for HI Numen Bear Rates Fund. 15. Approval of Financial Statements The Directors approved the financial statements on 19 February 2018.

46

HEDGE INVEST INTERNATIONAL FUNDS plc +31/12

HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS As at 31 December 2017

Investments

Fair Value EUR '000

% of Net Asset Value

Currency

Holding

France (2017: 0.00%) Sequans Communications SA ADR France total

USD

125,000

198 198

0.05 0.05

Italy (2017: 0.72%) Banca Monte dei Paschi di Siena SpA Capital for Progress 2 SpA Italy total

EUR EUR

1,802,153 180,000

7,066 1,757 8,823

1.80 0.45 2.25

Netherlands (2017: 0.44%) NXP Semiconductors NV Netherlands total

USD

200,000

19,496 19,496

4.97 4.97

Spain (2017: 2.17%) Liberbank SA Unicaja Banco SA Spain total

EUR EUR

2,811,584 5,278,407

1,240 6,939 8,179

0.31 1.77 2.08

Sweden (2017: 0.44%) Intrum Justitia AB Sweden total

SEK

51,910

1,600 1,600

0.41 0.41

United States (2017: 5.43%) Amazon.com, Inc. Microsoft Corp. Monsanto Co. PayPal Holdings, Inc. QUALCOMM, Inc. salesforce.com, Inc. Time Warner, Inc. Wal-Mart Stores, Inc. United States total

USD USD USD USD USD USD USD USD

1,000 29,500 195,000 46,200 84,000 28,000 67,420 43,267

974 2,103 18,977 2,833 4,481 2,385 5,142 3,563 40,458

0.25 0.53 4.83 0.72 1.14 0.61 1.31 0.91 10.30

78,754

20.06

49 200 249

0.01 0.05 0.06

249

0.06

Equities (2017: 9.20%)

Total investments in Equities Warrants (2017: 0.00%) Italy (2017: 0.00%) Capital for Progress 2 SpA Space4 SpA Italy total

EUR EUR

Total investments in Warrants

47

36,000 160,000

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Investments

Coupon Rate

Maturity Date

Currency

Holding

Fair Value EUR '000

% of Net Asset Value

Bonds

Government Fixed Coupon Securities (2017: 23.48%) Argentina (2017: 0.00%) Argentina Government Bond Argentina total

3.38%

15/01/2023

EUR

7,000,000

7,147 7,147

1.82 1.82

Greece (2017: 11.51%) Greece Government Bond Greece total

4.75%

17/04/2019

EUR

4,000,000

4,163 4,163

1.06 1.06

1.25%

22/07/2027

GBP

1,380,000

1,559 1,559

0.40 0.40

12,869

3.28

Italy (2017: 4.36%) Spain (2017: 7.61%) United Kingdom (2017: 0.00%) UK Treasury United Kingdom total

Total investments in Government Fixed Coupon Securities Government Variable Coupon Securities (2017: 1.74%) Greece (2017: 1.74%) Corporate Fixed Coupon Securities (2017: 10.96%) Cayman Islands (2017: 0.67%) Germany (2017: 1.66%) Deutsche Pfandbriefbank AG Germany total

4.60%

22/02/2027

EUR

7,000,000

7,876 7,876

2.00 2.00

Italy (2017: 2.54%) Banca Carige SpA1 Banca Farmafactoring SpA Intesa Sanpaolo SpA Unipol Gruppo SpA Veneto Banca SpA2 Veneto Banca SpA2 Italy total

8.34% 2.00% 3.88% 3.50% 0.73% 9.50%

12/04/2018 29/06/2022 14/07/2027 29/11/2027 17/09/2017 01/12/2025

EUR EUR USD EUR EUR EUR

14,050,000 4,000,000 3,000,000 2,500,000 3,550,000 200,000

4,391 4,000 2,500 2,520 27 1 13,439

1.12 1.02 0.63 0.64 0.01 – 3.42

48

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Investments

Coupon Rate

Maturity Date

Currency

Holding

Fair Value EUR '000

% of Net Asset Value

Corporate Fixed Coupon Securities (2017: 10.96%) (continued) Luxembourg (2017: 0.00%) Dream Global Funding I Sarl, REIT Luxembourg total

1.38%

21/12/2021

EUR

13,000,000

13,030 13,030

3.32 3.32

Netherlands (2017: 0.00%) VIVAT NV Netherlands total

2.38%

17/05/2024

EUR

11,500,000

11,431 11,431

2.91 2.91

Portugal (2017: 1.23%) Banco Espirito Santo SA2 Banco Espirito Santo SA1/2 Banco Espirito Santo SA2 Portugal total

4.75% 0.00% 4.00%

15/01/2018 04/02/2018 21/01/2019

EUR EUR EUR

200,000 30,000,000 16,900,000

59 147 5,239 5,445

0.02 0.04 1.33 1.39

Spain (2017: 1.85%) Banco de Sabadell SA Banco de Sabadell SA Haya Finance 2017 SA Spain total

0.88% 5.63% 5.25%

05/03/2023 06/05/2026 15/11/2022

EUR EUR EUR

2,000,000 2,500,000 4,000,000

1,983 2,937 3,980 8,900

0.51 0.75 1.01 2.27

United Kingdom (2017: 0.00%) Pinewood Finco plc Virgin Media Secured Finance plc Virgin Media Secured Finance plc United Kingdom total

3.75% 5.13% 5.00%

01/12/2023 15/01/2025 15/04/2027

GBP GBP GBP

1,000,000 4,545,000 1,350,000

1,139 5,350 1,550 8,039

0.29 1.36 0.40 2.05

United States (2017: 3.01%) Rite Aid Corp. United States total

7.70%

15/02/2027

USD

5,000,000

3,539 3,539

0.90 0.90

71,699

18.26

Total investments in Corporate Fixed Coupon Securities Corporate Variable Coupon Securities (2017: 17.32%) Austria (2017: 0.00%) UNIQA Insurance Group AG, FRN Austria total

6.88%

31/07/2043

EUR

5,000,000

6,288 6,288

1.60 1.60

France (2017: 0.00%) BNP Paribas SA, FRN1 BNP Paribas SA, FRN1 France total

6.12% 7.38%

17/06/2022 19/08/2025

EUR USD

6,000,000 5,250,000

6,943 5,062 12,005

1.77 1.29 3.06

49

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Investments

Coupon Rate

Maturity Date

Currency

Holding

Fair Value EUR '000

% of Net Asset Value

Corporate Variable Coupon Securities (2017: 17.32%) (continued) Germany (2017: 1.93%) Deutsche Pfandbriefbank AG, FRN Germany total

2.87%

28/06/2027

EUR

4,000,000

4,060 4,060

1.03 1.03

Ireland (2017: 2.27%) Ballsbridge Repackaging DAC, FRN1 Ireland total

0.00%

03/01/2020

EUR

5,000,000

5,403 5,403

1.38 1.38

4.75% 4.40% 6.25%

22/09/2027 27/03/2028 16/11/2022

EUR USD USD

6,000,000 7,000,000 4,000,000

6,261 6,007 3,343 15,611

1.60 1.53 0.85 3.98

4.50% 10.75%

07/12/2027 30/03/2022

EUR EUR

5,000,000 10,000,000

5,005 11,540 16,545

1.27 2.94 4.21

Spain (2017: 7.56%) Banco Bilbao Vizcaya Argentaria SA, FRN1 Banco Santander SA, FRN1 Banco Santander SA, FRN1 Banco Santander SA, FRN1 Bankia SA, FRN1 Ibercaja Banco SA, FRN Liberbank SA, FRN Spain total

7.00% 6.25% 6.25% 5.25% 6.00% 5.00% 6.88%

19/02/2019 03/12/2019 09/11/2021 29/09/2023 18/07/2022 28/07/2025 14/03/2027

EUR EUR EUR EUR EUR EUR EUR

2,000,000 3,500,000 3,500,000 2,000,000 4,000,000 8,000,000 5,800,000

2,109 3,663 3,846 2,113 4,200 8,319 6,275 30,525

0.53 0.93 0.98 0.54 1.07 2.12 1.60 7.77

Sweden (2017: 0.00%) Intrum Justitia AB, FRN Sweden total

3.13%

15/07/2024

EUR

5,500,000

5,531 5,531

1.41 1.41

United Kingdom (2017: 0.00%) Direct Line Insurance Group plc, FRN1 Royal Bank of Scotland Group plc, FRN1 Royal Bank of Scotland Group plc, FRN1 United Kingdom total

4.75% 7.50% 8.62%

12/07/2027 08/10/2020 15/08/2021

GBP USD USD

2,500,000 4,000,000 5,000,000

2,841 3,530 4,683 11,054

0.73 0.90 1.19 2.82

Italy (2017: 1.02%) Mexico (2017: 0.39%) Netherlands (2017: 2.35%) ABN AMRO Bank NV, FRN1 ABN AMRO Bank NV, FRN VIVAT NV, FRN1 Netherlands total Portugal (2017: 1.80%) Banco Comercial Portugues SA, FRN Caixa Geral de Depositos SA, FRN1 Portugal total

50

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017 Coupon Rate

Investments

Maturity Date

Currency

15/12/2028

USD

Holding

Fair Value EUR '000

% of Net Asset Value

Corporate Variable Coupon Securities (2017: 17.32%) (continued) United States (2017: 0.00%) Rite Aid Corp., FRN United States total

646 646

0.16 0.16

Total investments in Corporate Variable Coupon Securities

107,668

27.42

Total Bonds

192,236

48.96

Notional Amount

Currency

6.87%

Counterparty

Reference Entity

Buy/Sell

1,000,000

Underlying Maturity Exposure Date EUR '000

Fair Value EUR '000

% of Net Asset Value

Credit Default Swaps 7,000,000

EUR

Barclays

7,000,000

EUR

Barclays

6,000,000

EUR

Barclays

10,000,000

EUR

Barclays

7,000,000

EUR

BNP Paribas

2,500,000

EUR

BNP Paribas

25,000,000 5,000,000

EUR EUR

BNP Paribas BNP Paribas

15,000,000

EUR

BNP Paribas

30,000,000

EUR

BNP Paribas

Banco Bilbao Vizcaya Argentaria SA Banco Santander SA iTraxx Europe Senior Financials Series 27 Version 1 Mediobanca Banca Di Credito Finanziario SpA Banco Bilbao Vizcaya Argentaria SA Banco Santander SA Bayer AG Deutsche Bank AG Intesa Sanpaolo SpA iTraxx Europe Senior Financials Series 27 Version 1

51

Sell

20/12/2021

7,000

185

0.05

Sell

20/06/2022

7,000

224

0.06

Sell

20/06/2022

6,000

176

0.04

Sell

20/12/2021

10,000

159

0.04

Sell

20/12/2021

7,000

185

0.05

Sell

20/06/2022

2,500

80

0.02

Sell Buy

20/06/2018 20/06/2022

25,000 5,000

119 83

0.03 0.02

Sell

20/06/2022

15,000

299

0.08

Sell

20/06/2022

30,000

880

0.22

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Notional Amount

Currency

Counterparty

Reference Entity

Buy/Sell

Underlying Maturity Exposure Date EUR '000

Fair Value EUR '000

% of Net Asset Value

Credit Default Swaps (continued) 10,000,000

EUR

7,000,000 35,000,000 55,000,000

EUR EUR EUR

20,000,000

EUR

5,000,000

EUR

5,000,000

EUR

3,250,000

EUR

3,250,000

EUR

5,000,000

EUR

5,000,000

EUR

25,000,000

EUR

15,000,000 5,000,000

EUR EUR

5,000,000

EUR

7,500,000 5,000,000

EUR EUR

5,000,000

EUR

BNP Paribas

iTraxx Europe Series 27 Version 1 BNP Paribas UBS AG Citigroup Bayer AG Citigroup iTraxx Europe Series 27 Version 1 Citigroup iTraxx Europe Series 27 Version 1 Citigroup iTraxx Europe Series 28 Version 1 Citigroup iTraxx Europe Series 28 Version 1 Credit Suisse Fiat Chrysler Automobiles NV Credit Suisse Fiat Chrysler Automobiles NV Credit Suisse iTraxx Europe Series 28 Version 1 Goldman Sachs iTraxx Europe Senior Financials Series 27 Version 1 Goldman Sachs iTraxx Europe Series 27 Version 1 Goldman Sachs Sky plc HSBC iTraxx Europe Series 28 Version 1 HSBC iTraxx Europe Series 28 Version 1 J.P. Morgan Caixabank SA Morgan Stanley Fiat Chrysler Automobiles NV Morgan Stanley iTraxx Europe Series 28 Version 1

52

Sell

20/06/2022

10,000

285

0.07

Sell Sell Sell

20/12/2021 20/06/2018 20/06/2022

7,000 35,000 55,000

172 166 1,565

0.04 0.04 0.40

Sell

20/06/2022

20,000

569

0.15

Sell

20/12/2022

5,000

137

0.04

Sell

20/12/2022

5,000

137

0.04

Sell

20/06/2022

3,250

501

0.13

Sell

20/06/2022

3,250

501

0.13

Sell

20/12/2022

5,000

137

0.03

Sell

20/06/2022

5,000

147

0.04

Sell

20/06/2022

25,000

712

0.18

Sell Sell

20/06/2018 20/12/2022

15,000 5,000

71 137

0.02 0.03

Sell

20/12/2022

5,000

137

0.03

Sell Sell

20/06/2022 20/12/2022

7,500 5,000

146 803

0.04 0.20

Sell

20/12/2022

5,000

137

0.03

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Notional Amount

Currency

Counterparty

Reference Entity

Buy/Sell

Underlying Maturity Exposure Date EUR '000

Fair Value EUR '000

% of Net Asset Value

Credit Default Swaps (continued) 10,000,000

USD

30,000,000

USD

9,000,000 3,000,000

USD USD

BNP Paribas

United Kingdom of Great Britain and Northern Ireland BNP Paribas United Kingdom of Great Britain and Northern Ireland Goldman Sachs Rite Aid Corp. Goldman Sachs Rite Aid Corp.

Sell

20/03/2018

8,328

20

0.01

Sell

20/06/2018

24,983

123

0.03

Buy Buy

20/06/2020 20/06/2021

7,495 2,498

139 168 9,300

0.04 0.04 2.37

Sell

20/06/2022

2,000

(52)

(0.01)

Sell

20/06/2022

3,500

(90)

(0.02)

Sell

20/06/2022

5,000

(129)

(0.03)

Buy

20/12/2022

5,000

(117)

(0.03)

Buy

20/12/2022

1,250

(190)

(0.05)

Buy

20/12/2022

1,750

(266)

(0.07)

Buy

20/12/2022

5,000

(118)

(0.03)

Buy Buy

20/06/2022 20/06/2021

6,500 2,500

(125) (336)

(0.03) (0.09)

Sell

20/06/2022

5,000

(40)

(0.01)

Buy Buy Sell

20/12/2022 20/12/2022 20/06/2022

10,000 45,000 7,000

(318) (1,430) (54)

(0.08) (0.36) (0.01)

Buy

20/12/2022

80,000

(2,197)

(0.56)

Buy

20/06/2022

15,000

(137)

(0.04)

Total unrealised gain on Credit Default Swaps (2017: 3.11%) 2,000,000

EUR

Barclays

3,500,000

EUR

Barclays

5,000,000

EUR

Barclays

5,000,000

EUR

Barclays

1,250,000

EUR

Barclays

1,750,000

EUR

Barclays

5,000,000

EUR

Barclays

6,500,000 2,500,000

EUR EUR

BNP Paribas BNP Paribas

5,000,000

EUR

BNP Paribas

10,000,000 45,000,000 7,000,000

EUR EUR EUR

BNP Paribas BNP Paribas BNP Paribas

80,000,000

EUR

BNP Paribas

15,000,000

EUR

BNP Paribas

Intesa Sanpaolo SpA Intesa Sanpaolo SpA Intesa Sanpaolo SpA Koninklijke KPN NV Virgin Media Finance plc Virgin Media Finance plc Vodafone Group plc Atlantia SpA Banca Monte dei Paschi di Siena SpA Banco Bilbao Vizcaya Argentaria SA Bayer AG Bayer AG Commerzbank AG iTraxx Europe Series 28 Version 1 iTraxx Europe Sub Financials Series 27 Version 1

53

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Notional Amount

Currency

Counterparty

Reference Entity

Buy/Sell

Underlying Maturity Exposure Date EUR '000

Fair Value EUR '000

% of Net Asset Value

Credit Default Swaps (continued) 5,000,000 3,500,000 7,000,000 7,000,000 6,500,000 10,000,000 3,500,000

EUR EUR EUR EUR EUR EUR EUR

BNP Paribas BNP Paribas BNP Paribas BNP Paribas Citigroup Citigroup Citigroup

5,000,000

EUR

Citigroup

2,000,000

EUR

Citigroup

1,250,000

EUR

Citigroup

10,000,000 20,000,000 5,000,000

EUR EUR EUR

Citigroup Citigroup Credit Suisse

5,000,000 14,000,000 1,000,000

EUR EUR EUR

Goldman Sachs Goldman Sachs Goldman Sachs

1,500,000

EUR

Goldman Sachs

5,000,000

EUR

Goldman Sachs

65,000,000

EUR

HSBC

4,500,000

EUR

J.P. Morgan

10,000,000 5,000,000 1,000,000 70,000,000

EUR EUR EUR EUR

J.P. Morgan J.P. Morgan J.P. Morgan Morgan Stanley

30,000,000

EUR

15,000,000

EUR

5,000,000

EUR

3,500,000

USD

Societe Generale Societe Generale Societe Generale Barclays

Peugeot SA Sky plc Sky plc Sky plc Atlantia SpA Bayer AG Commerzbank AG Deutsche Bank AG iTraxx Europe Sub Financials Series 27 Version 1 Virgin Media Finance plc Vivendi Vivendi Vodafone Group plc Sky plc Sky plc Virgin Media Finance plc Virgin Media Finance plc Vodafone Group plc iTraxx Europe Series 27 Version 1 Banco Bilbao Vizcaya Argentaria SA Bayer AG Peugeot SA Sky plc iTraxx Europe Series 27 Version 1 United States of America United States of America Vivendi

Buy Buy Buy Buy Buy Buy Sell

20/12/2022 20/12/2021 20/12/2021 20/12/2021 20/06/2022 20/12/2022 20/06/2022

5,000 3,500 7,000 7,000 6,500 10,000 3,500

(958) (94) (188) (188) (125) (318) (27)

(0.24) (0.02) (0.05) (0.05) (0.03) (0.08) (0.01)

Sell

20/12/2021

5,000

(43)

(0.01)

Buy

20/06/2022

2,000

(18)



Buy

20/12/2022

1,250

(190)

(0.05)

Buy Buy Buy

20/12/2022 20/12/2022 20/12/2022

10,000 20,000 5,000

(239) (478) (118)

(0.06) (0.12) (0.03)

Buy Buy Buy

20/12/2022 20/12/2022 20/12/2022

5,000 14,000 1,000

(138) (388) (152)

(0.04) (0.10) (0.04)

Buy

20/12/2022

1,500

(228)

(0.06)

Buy

20/12/2022

5,000

(118)

(0.03)

Buy

20/06/2022

65,000

(1,850)

(0.47)

Sell

20/06/2022

4,500

(36)

(0.01)

Buy Buy Buy Buy

20/12/2022 20/12/2022 20/12/2021 20/06/2022

10,000 5,000 1,000 70,000

(318) (958) (27) (1,992)

(0.08) (0.24) (0.01) (0.51)

Buy

20/12/2018

30,000

(50)

(0.01)

Buy

20/12/2019

15,000

(40)

(0.01)

Buy

20/09/2020

5,000

(104)

(0.03)

Rite Aid Corp.

Buy

20/12/2018

2,915

(64)

(0.02)

54

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Notional Amount

Currency

Counterparty

Reference Entity

Buy/Sell

Underlying Maturity Exposure Date EUR '000

Fair Value EUR '000

% of Net Asset Value

Credit Default Swaps (continued) 5,600,000 2,000,000 7,500,000

USD USD USD

Barclays Barclays BNP Paribas

25,000,000

USD

BNP Paribas

12,500,000

USD

BNP Paribas

8,000,000

USD

BNP Paribas

3,500,000 10,000,000

USD USD

Citigroup Citigroup

10,000,000

USD

Citigroup

1,500,000 3,500,000 1,250,000 3,250,000 15,000,000

USD USD USD USD USD

Goldman Sachs Goldman Sachs Goldman Sachs Goldman Sachs Goldman Sachs

20,000,000

USD

Goldman Sachs

10,000,000

USD

Goldman Sachs

Rite Aid Corp. Rite Aid Corp. Argentina Government Bond Republic of Korea United Kingdom of Great Britain and Northern Ireland United Kingdom of Great Britain and Northern Ireland Rite Aid Corp. United Kingdom of Great Britain and Northern Ireland United Kingdom of Great Britain and Northern Ireland Rite Aid Corp. Rite Aid Corp. Rite Aid Corp. Rite Aid Corp. United Kingdom of Great Britain and Northern Ireland United Kingdom of Great Britain and Northern Ireland United Kingdom of Great Britain and Northern Ireland

55

Buy Buy Buy

20/06/2019 20/12/2019 20/12/2022

4,664 1,666 6,246

(60) (5) (749)

(0.02) – (0.19)

Buy

20/06/2022

20,819

(442)

(0.11)

Buy

20/06/2026

10,410

(514)

(0.13)

Buy

20/12/2026

6,662

(336)

(0.09)

Buy Buy

20/12/2019 20/06/2026

2,915 8,328

(9) (411)

– (0.10)

Buy

20/06/2026

8,328

(411)

(0.10)

Buy Buy Sell Sell Buy

20/12/2019 20/12/2019 20/06/2022 20/12/2022 20/12/2025

1,249 2,915 1,041 2,707 12,492

(4) (9) (124) (384) (604)

– – (0.03) (0.10) (0.15)

Buy

20/06/2026

16,656

(822)

(0.21)

Buy

20/12/2026

8,328

(420)

(0.11)

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Notional Amount

Currency

Counterparty

Reference Entity

Buy/Sell

Underlying Maturity Exposure Date EUR '000

Fair Value EUR '000

% of Net Asset Value

Credit Default Swaps (continued) 26,750,000

USD

J.P. Morgan

8,000,000

USD

J.P. Morgan

10,000,000

USD

J.P. Morgan

10,000,000

USD

Morgan Stanley

United Kingdom of Great Britain and Northern Ireland United Kingdom of Great Britain and Northern Ireland United Kingdom of Great Britain and Northern Ireland United Kingdom of Great Britain and Northern Ireland

Buy

20/12/2021

22,277

(741)

(0.19)

Buy

20/12/2026

6,662

(336)

(0.09)

Buy

20/12/2026

8,328

(420)

(0.11)

Buy

20/12/2024

8,328

(383)

(0.10)

(22,230)

(5.66)

Total unrealised loss on Credit Default Swaps (2017: (5.88)%)

Country

Counterparty

Currency

Underlying Exposure Holding EUR '000

Fair Value EUR '000

% of Net Asset Value

Contracts for Difference France (2017: 0.00%) Societe Generale SA France total

UBS

EUR

47,000

47

34 34

0.01 0.01

BNP Paribas UBS UBS UBS UBS

EUR EUR EUR EUR EUR

(2,000,000) 107,000 (950,000) 1,782,159 6,706,178

2,000 107 950 1,782 6,706

103 173 133 54 159 622

0.03 0.04 0.03 0.01 0.04 0.15

Ireland (2017: 0.03%) Italy (2017: 0.22%) Mediaset SpA Mediaset SpA Mediaset SpA Mediaset SpA Telecom Italia SpA Italy total

56

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Country

Counterparty

Currency

Underlying Exposure Holding EUR '000

Fair Value EUR '000

% of Net Asset Value

Contracts for Difference (continued) Netherlands (2017: 0.00%3) Altice NV 'A' UBS Koninklijke KPN NV UBS Netherlands total Spain (2017: 0.13%) Bankia SA CaixaBank SA Telefonica SA

UBS UBS UBS

EUR EUR

90,900 (334,000)

91 334

192 6 198

0.05 – 0.05

EUR EUR EUR

(876,000) (362,500) (43,200)

876 363 43

43 41 20 104

0.01 0.01 – 0.02

SEK

(300,000)

31

67

0.02

SEK

(78,000)

8

16 83

– 0.02

GBP

1,034,000

1,165

704 704

0.18 0.18

1,745

0.43

Spain total Sweden (2017: 0.00%) Svenska Handelsbanken AB 'A' UBS Swedbank AB 'A' UBS Sweden total United Kingdom (2017: 0.07%) Sky plc UBS United Kingdom total Total unrealised gain on Contracts for Difference (2017: 0.45%) Germany (2017: (0.10)%) Deutsche Bank AG Germany total

UBS

EUR

(127,000)

127

(19) (19)

(0.01) (0.01)

Italy (2017: (0.41)%) Mediaset SpA Mediaset SpA Mediaset SpA Mediaset SpA Italy total

BNP Paribas BNP Paribas BNP Paribas UBS

EUR EUR GBP EUR

(2,000,000) (2,000,000) (1,500,000) 800,000

2,000 2,000 1,690 800

(9) (97) (54) (96) (256)

– (0.03) (0.01) (0.02) (0.06)

UBS

EUR

6,688,416

6,688

(120) (120)

(0.03) (0.03)

Portugal (2017: (0.00)%3) Spain (2017: (0.08)%) Liberbank SA Spain total

United Kingdom (2017: (0.00)%3)

57

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Country

Counterparty

Currency

Underlying Exposure Holding EUR '000

Fair Value EUR '000

% of Net Asset Value

Contracts for Difference (continued) United States (2017: (0.00)%) AT&T, Inc. UBS Cisco Systems, Inc. UBS eBay, Inc. UBS First Data Corp. 'A' UBS Intel Corp. UBS Vantiv, Inc. 'A' UBS United States total

USD USD USD USD USD USD

(96,882) (68,500) (32,750) (143,400) (50,000) 31,500

81 57 27 119 42 26

Total unrealised loss on Contracts for Difference (2017: (0.59)%)

Quantity

Security Description

Underlying Exposure Currency Counterparty EUR '000

Maturity Date

(202) (57) (84) (45) (55) (35) (478)

(0.05) (0.01) (0.02) (0.01) (0.01) (0.01) (0.11)

(873)

(0.21)

Fair Value EUR '000

% of Net Asset Value

Exchange traded Options Purchased

325 575 250

Fiat Chrysler Automobiles NV, Put, 14.500 S&P 500 Index, Call, 2,735.000 S&P 500 Index, Call, 2,720.000

16/03/2018 19/01/2018 19/01/2018

EUR USD USD

UBS UBS UBS

5 1,310 566

120 50 41 211

0.03 0.01 0.01 0.05

UBS

4

(23) (23)

(0.01) (0.01)

Total unrealised gain on Exchange traded Options Purchased (2017: 0.05%) Exchange traded Options Written

(325)

Fiat Chrysler Automobiles NV, Put, 12.000

16/03/2018

EUR 3

Total unrealised loss on Exchange traded Options Written (2017: (0.00)% )

Currency Purchased

Amount Purchased

Currency Sold

Amount Sold

Underlying Exposure EUR '000

Maturity Date

Fair Value EUR '000

% of Net Asset Value

Forward Currency Contracts4 EUR EUR EUR EUR EUR EUR EUR

18,854 7,715 1,137,992 1,701,089 1,699,674 1,698,058 1,692,654

CHF5 CHF5 GBP GBP GBP GBP GBP

22,000 9,000 1,000,000 1,500,000 1,500,000 1,500,000 1,500,000

58

19 8 1,127 1,690 1,690 1,690 1,690

05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018

– – 12 11 10 8 3

– – – – – – –

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Currency Purchased

Amount Purchased

Currency Sold

Amount Sold

Underlying Exposure EUR '000

Maturity Date

Fair Value EUR '000

% of Net Asset Value

Forward Currency Contracts4 (continued) EUR EUR EUR EUR EUR EUR EUR EUR EUR GBP GBP SEK SEK

766,428 75,415,546 7,154,835 4,646,125 2,550,129 2,520,108 166,308 31,333 84,447 12,766,000 984,000 23,000,000 27,500,000

GBP USD USD USD USD USD USD USD USD5 EUR EUR EUR EUR

680,000 89,200,000 8,500,000 5,500,000 3,000,000 3,000,000 196,000 37,000 101,000 14,355,356 1,106,544 2,311,752 2,774,146

766 74,284 7,079 4,580 2,498 2,498 163 31 84 14,381 1,109 2,339 2,797

05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018

1 1,141 77 66 52 22 3 1 – 25 2 28 23 1,485

– 0.29 0.02 0.02 0.01 0.01 – – – 0.01 – 0.01 0.01 0.38

408 1,607 1,681 5,633 142 6,754 1,249 306 437 2,264 7,069

05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018

(4) (16) (17) (4) – (40) (2) (5) (7) (35) (112) (242)

– – (0.01) – – (0.01) – – – (0.01) (0.03) (0.06)

Total unrealised gain on Forward Currency Contracts (2017: 0.31%) CHF CHF CHF EUR EUR EUR USD USD USD USD USD

477,000 1,881,000 1,967,000 5,627,931 142,318 6,714,133 1,500,000 368,000 525,000 2,719,000 8,488,000

EUR EUR EUR GBP SEK5 SEK EUR EUR EUR EUR EUR

411,650 1,623,343 1,697,519 5,000,000 1,400,000 66,400,000 1,251,147 311,198 444,130 2,299,413 7,179,738

Total unrealised loss on Forward Currency Contracts (2017: (0.12)%)

Investments

Underlying Exposure Currency EUR '000

No. of contracts

Notional Fair Value Amount EUR '000

% of Net Asset Value

Futures Contracts Germany (2017: 0.11%) Euro-Bobl 08/03/2018 Euro-BTP 08/03/2018 Euro-OAT 08/03/2018 Euro STOXX Banks Index 16/03/2018 Short Euro-BTP 08/03/2018 Germany total

(412) (100) (240) (392) (450)

EUR EUR EUR EUR EUR

Hong Kong (2017: 0.00%3)

59

54,223 13,614 37,243 2,556 50,868

41,200,000 10,000,000 24,000,000 19,600 45,000,000

270 15 454 59 18 816

0.07 – 0.12 0.02 – 0.21

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Investments

Underlying Exposure Currency EUR '000

No. of contracts

Notional Fair Value Amount EUR '000

% of Net Asset Value

Futures Contracts (continued) Italy (2017: 0.02%) FTSE MIB Index 16/03/2018 Italy total

(133)

EUR

14,468

665

419 419

0.10 0.10

United States (2017: 0.00%3) NASDAQ 100 Emini Index 16/03/2018 US 10 Year Note 20/03/2018 US 10 Year Ultra Bond 20/03/2018 US 5 Year Note 29/03/2018 United States total

(128) (39) (30) (69)

USD USD USD USD

13,663 4,029 3,337 6,675

2,560 3,900,000 3,000,000 6,900,000

18 17 11 23 69

0.01 – – 0.01 0.02

1,304

0.33

Total unrealised gain on Futures Contracts (2017: 0.13%) Germany (2017: (0.07)%) Euro-Bund 08/03/2018 Germany total

152

EUR

24,575

15,200,000

(103) (103)

(0.02) (0.02)

(48)

GBP

6,768

4,800,000

(27) (27)

(0.01) (0.01)

(64)

USD

7,131

3,200

(9) (9)

– –

(139)

(0.03)

285,284 (23,507) 130,141 722 392,640

72.64 (5.97) 33.15 0.18 100.00

Japan (2017: (0.01)%) United Kingdom (2017: (0.03)%) Long Gilt 27/03/2018 United Kingdom total United States (2017: (0.03)%) S&P 500 Emini Index 16/03/2018 United States total Total unrealised loss on Futures Contracts (2017: (0.14)%) Total financial assets at fair value through profit or loss Total financial liabilities at fair value through profit or loss Cash and cash equivalents Other assets and liabilities Net asset value attributable to redeemable participating shareholders

60

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN CREDIT FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017 % of total assets

Analysis of total assets Transferable securities admitted to an official stock exchange listing Transferable securities traded on a regulated market Financial derivative instruments dealt in on a regulated market OTC financial derivative instruments Other Assets

61.78 3.09 0.36 3.00 31.77 100.00

Total Assets 1

Security is perpetual without predetermined maturity date. The date shown, if applicable, is the next call date.

2

Security is currently in default.

3

Prior year percentage of net asset value rounds to 0.00%.

4

Forward currency contracts are traded with the following counterparty: J.P. Morgan.

5

Investments which are less than EUR 500 have been rounded down to zero.

61

HEDGE INVEST INTERNATIONAL FUNDS plc HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS As at 31 December 2017 Coupon Rate

Maturity Date

Holding

Fair Value EUR '000

% of Net Asset Value

Japan (2017: 18.13%) Sumitomo Mitsui Banking Corp. Japan total

(0.91)%

04/01/2018

30,938,057

30,938 30,938

16.98 16.98

United Kingdom (2017: 18.72%) Lloyds Bank plc United Kingdom total

(0.65)%

04/01/2018

29,888,197

29,888 29,888

16.40 16.40

Total investments in Time Deposits

60,826

33.38

Total Liquidity Instruments

60,826

33.38

Fair Value EUR '000

% of Net Asset Value

Investments Liquidity Instruments

Time Deposits (2017: 36.85%)

Investments

Currency

Holding

Austria (2017: 3.77%) Agrana Beteiligungs AG Austria total

EUR

20,190

2,097 2,097

1.15 1.15

Denmark (2017: 6.00%) ALK-Abello A/S Scandinavian Tobacco Group A/S 'A' Denmark total

DKK DKK

26,500 230,000

2,638 3,702 6,340

1.45 2.03 3.48

France (2017: 3.63%) Gecina SA, REIT France total

EUR

44,500

6,843 6,843

3.76 3.76

Germany (2017: 12.27%) Aurubis AG CANCOM SE CompuGroup Medical SE Muenchener Rueckversicherungs-Gesellschaft AG Nemetschek SE OSRAM Licht AG PATRIZIA Immobilien AG Germany total

EUR EUR EUR EUR EUR EUR EUR

75,500 28,000 39,000 24,000 23,000 65,000 133,395

5,865 1,940 2,136 4,339 1,716 4,870 2,577 23,443

3.22 1.07 1.17 2.38 0.94 2.67 1.42 12.87

Equities (2017: 44.00%)

62

HEDGE INVEST INTERNATIONAL FUNDS plc HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017 Fair Value EUR '000

% of Net Asset Value

31,000 449,000

2,897 4,282 7,179

1.59 2.35 3.94

EUR EUR

137,000 200,000

5,729 2,071 7,800

3.14 1.14 4.28

Switzerland (2017: 0.97%) Lonza Group AG Vifor Pharma AG Switzerland total

CHF CHF

22,500 32,000

5,061 3,417 8,478

2.78 1.87 4.65

United Kingdom (2017: 4.09%) Laird plc Prudential plc United Kingdom total

GBP GBP

2,440,000 210,000

3,783 4,505 8,288

2.08 2.47 4.55

70,468

38.68

Fair Value EUR '000

% of Net Asset Value

1,355 1,355

0.74 0.74

Investments

Currency

Holding

Ireland (2017: 6.18%) Kerry Group plc 'A' UDG Healthcare plc Ireland total

EUR GBP

Netherlands (2017: 1.21%) AMG Advanced Metallurgical Group NV ForFarmers NV Netherlands total

Equities (2017: 44.00%) (continued)

Norway (2017: 0.53%) Spain (2017: 3.89%) Sweden (2017: 1.46%)

Total investments in Equities

Country

Counterparty

Currency

Underlying Exposure Holding EUR '000

Contracts for Difference Canada (2017: 0.08%) Entertainment One Ltd. Canada total

BNP Paribas

GBP

63

1,416,000

1,595

HEDGE INVEST INTERNATIONAL FUNDS plc HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Country

Counterparty

Currency

Underlying Exposure Holding EUR '000

Fair Value EUR '000

% of Net Asset Value

Contracts for Difference (continued) France (2017: 0.56%) Accor SA Amundi SA Gaztransport Et Technigaz SA Sodexo SA Ste Industrielle d'Aviation Latecoere SA France total Germany (2017: 0.14%) Sartorius AG Germany total

BNP Paribas BNP Paribas BNP Paribas

EUR EUR EUR

127,500 (18,000) 64,000

128 18 64

96 19 762

0.05 0.01 0.42

BNP Paribas BNP Paribas

EUR EUR

48,000 311,436

48 311

36 120

0.02 0.07

1,033

0.57

BNP Paribas

EUR

(10,891)

11

14 14

0.01 0.01

BNP Paribas

EUR

790,000

790

525 525

0.29 0.29

United Kingdom (2017: 0.12%) ConvaTec Group plc BNP Paribas Merlin Entertainments plc BNP Paribas NMC Health plc BNP Paribas United Kingdom total

GBP GBP GBP

1,600,000 (300,000) 84,000

1,802 338 95

288 40 24 352

0.16 0.02 0.01 0.19

3,279

1.80

Jersey (2017: 0.17%) Netherlands (2017: 0.05%) Spain (2017: 0.00%) Gestamp Automocion SA Spain total Switzerland (2017: 0.01%)

Total unrealised gain on Contracts for Difference (2017: 1.13%) Denmark (2017: (0.01)%) European Union (2017: (0.88)%) STOXX 600 Optimised UBS Health Care Index STOXX Europe Small 200 UBS Index European Union total

64

EUR

(8,310)

8

(166)

(0.09)

EUR

(154,800)

155

(1,841)

(1.01)

(2,007)

(1.10)

HEDGE INVEST INTERNATIONAL FUNDS plc HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Country

Counterparty

Currency

Underlying Exposure Holding EUR '000

Fair Value EUR '000

% of Net Asset Value

Contracts for Difference (continued) France (2017: (0.13)%) Altran Technologies SA Faurecia SEB SA Teleperformance Worldline SA France total Germany (2017: (0.32)%) STOXX 600 Optimised Basic Resources Index STOXX 600 Optimised Real Estate Index Germany total Spain (2017: 0.00%) Cia de Distribucion Integral Logista Holdings SA Spain total

BNP Paribas BNP Paribas BNP Paribas BNP Paribas BNP Paribas

EUR EUR EUR EUR EUR

423,000 (21,000) 18,000 22,000 157,000

423 21 18 22 157

(232) (82) (15) (51) (63) (443)

(0.13) (0.05) (0.01) (0.03) (0.03) (0.25)

UBS

EUR

(3,500)

4

(531)

(0.29)

UBS

EUR

(3,900)

4

(63)

(0.03)

(594)

(0.32)

(144)

(0.08)

(144)

(0.08)

(56) (124) (180)

(0.03) (0.07) (0.10)

(3,368)

(1.85)

Fair Value EUR '000

% of Net Asset Value

906 906

0.50 0.50

BNP Paribas

EUR

125,000

125

Switzerland (2017: (0.06)%) United Kingdom (2017: (0.12)%) DS Smith plc BNP Paribas Scapa Group plc BNP Paribas United Kingdom total

GBP GBP

(148,000) 812,000

167 915

Total unrealised loss on Contracts for Difference (2017: (1.52)%)

Quantity

Security Description

Maturity Date

Underlying Exposure Currency Counterparty EUR '000

Exchange traded Options Purchased

1,260

EURO STOXX 50 Index, Put, 3,450.000

16/03/2018

EUR

Total unrealised gain on Exchange traded Options Purchased (2017: 0.20%)

65

J.P. Morgan

4,347

HEDGE INVEST INTERNATIONAL FUNDS plc HI PRINCIPIA FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Currency Purchased

Amount Purchased

Currency Sold

Amount Sold

Underlying Exposure EUR '000

Maturity Date

Fair Value EUR '000

% of Net Asset Value

Forward Currency Contracts1 CHF EUR EUR EUR EUR EUR EUR EUR EUR

1,351,037 8,580,971 3,695,552 1,880,847 268,711 335,859 161,231 14,826,741 2,441,162

EUR CHF DKK DKK2 DKK2 DKK2 DKK2 GBP USD

1,154,359 10,000,000 27,500,000 14,000,000 2,000,000 2,500,000 1,200,000 13,000,000 2,900,000

1,155 8,546 3,694 1,880 269 336 161 14,645 2,415

31/01/2018 16/01/2018 16/01/2018 16/01/2018 16/01/2018 16/01/2018 16/01/2018 16/01/2018 16/01/2018

1 34 2 – – – – 187 28 252

– 0.02 – – – – – 0.10 0.02 0.14

279 10 415 2,372

31/01/2018 31/01/2018 31/01/2018 31/01/2018

(1) – (3) (15) (19)

– – – (0.01) (0.01)

135,731 (3,387) 48,777 1,081 182,202

74.50 (1.86) 26.77 0.59 100.00

Total unrealised gain on Forward Currency Contracts (2017: 0.16%) GBP USD USD USD

247,253 11,754 497,925 2,848,030

EUR EUR2 EUR EUR

279,424 9,964 416,489 2,382,342

Total unrealised loss on Forward Currency Contracts (2017: (0.08)%) Total financial assets at fair value through profit or loss Total financial liabilities at fair value through profit or loss Cash and cash equivalents Other assets and liabilities Net asset value attributable to redeemable participating shareholders

% of total assets

Analysis of total assets Transferable securities admitted to official stock exchange listing Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) Financial derivative instruments OTC financial derivative instruments Other Assets Total Assets 1

2

Forward currency contracts are traded with the following counterparty: J.P. Morgan.

Investments which are less than EUR 500 have been rounded down to zero.

66

37.81 32.64 0.49 1.89 27.17 100.00

HEDGE INVEST INTERNATIONAL FUNDS plc HI SIBILLA MACRO FUND SCHEDULE OF INVESTMENTS As at 31 December 2017 Coupon Rate

Maturity Date

Holding

Fair Value EUR '000

% of Net Asset Value

France (2017: 8.70%) BNP Paribas SA BNP Paribas SA BNP Paribas SA BNP Paribas SA France total

0.00% 0.00% 0.00% 0.00%

01/01/2018 04/01/2018 04/01/2018 04/01/2018

8,000,000 5,000,000 2,500,000 1,000,000

6,662 4,164 2,082 833 13,741

8.88 5.55 2.78 1.11 18.32

Japan (2017: 16.46%) Sumitomo Mitsui Banking Corp. Sumitomo Mitsui Banking Corp. Sumitomo Mitsui Banking Corp. Sumitomo Mitsui Banking Corp. Japan total

1.26% 1.29% 1.31% 1.04%

16/01/2018 08/02/2018 15/02/2018 22/03/2018

7,321,016 608,581 3,237,910 4,061,152

6,097 507 2,696 3,382 12,682

8.13 0.67 3.59 4.51 16.90

United Kingdom (2017: 17.86%) Lloyds Bank plc Lloyds Bank plc Lloyds Bank plc Lloyds Bank plc United Kingdom total

1.33% 1.46% 1.46% 1.46%

22/01/2018 28/02/2018 28/02/2018 28/02/2018

2,816,685 6,104,633 5,580,767 2,029,651

2,346 5,084 4,647 1,690 13,767

3.13 6.78 6.19 2.25 18.35

Total investments in Time Deposits

40,190

53.57

Total Liquidity Instruments

40,190

53.57

Fair Value EUR '000

% of Net Asset Value

Investments Liquidity Instruments

Time Deposits (2017: 43.02%)

Investments

Currency

Holding

Canada (2017: 0.00%) DHX Media Ltd. DHX Media Ltd. Canada total

CAD CAD

217,173 26,929

655 81 736

0.87 0.11 0.98

United States (2017: 0.00%) Match Group, Inc. United States total

USD

17,887

466 466

0.62 0.62

1,202

1.60

Equities (2017: 0.00%)

Total investments in Equities

67

HEDGE INVEST INTERNATIONAL FUNDS plc HI SIBILLA MACRO FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017 Coupon Rate

Fair Value EUR '000

% of Net Asset Value

2,481 11,511 13,992

3.31 15.34 18.65

Total investments in Government Fixed Coupon Securities

13,992

18.65

Total Bonds

13,992

18.65

Fair Value EUR '000

% of Net Asset Value





Fair Value EUR '000

% of Net Asset Value

Investments

Maturity Date

Currency

30/09/2018 30/09/2019

USD USD

Holding

Bonds

Government Fixed Coupon Securities (2017: 18.77%) United States (2017: 18.77%) US Treasury US Treasury United States total

Country

0.75% 1.38%

Counterparty

Currency

3,000,000 13,940,000

Underlying Exposure Holding EUR '000

Contracts for Difference United States (2017: (0.03)%) Total unrealised loss on Contracts for Difference (2017: (0.03)%)

Currency Purchased

Amount Purchased

Currency Sold

Amount Sold

Underlying Exposure EUR '000

Maturity Date

Forward Currency Contracts1 EUR

65,270,001

USD

77,351,478

64,417

21/02/2018

1,042 1,042

1.39 1.39

134 1,170 183 3,285 12,449

20/02/2018 20/02/2018 20/02/2018 20/02/2018 22/01/2018

(1) (5) (2) (58) (69) (135)

– (0.01) – (0.08) (0.09) (0.18)

Total unrealised gain on Forward Currency Contracts (2017: 1.38%) CHF CHF USD USD USD

156,548 1,368,554 220,000 3,944,235 7,457,992

EUR 134,397 EUR 1,174,910 EUR 184,658 EUR 3,333,625 TWD 222,904,465

Total unrealised loss on Forward Currency Contracts (2017: (0.07)%)

68

HEDGE INVEST INTERNATIONAL FUNDS plc HI SIBILLA MACRO FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Investments

No. of contracts

Underlying Exposure Currency EUR '000

Notional Amount

Fair Value EUR '000

% of Net Asset Value

6,000

(190) (190)

(0.25) (0.25)

(190)

(0.25)

56,426 (325) 19,190 (266) 75,025

75.21 (0.43) 25.58 (0.36) 100.00

Futures Contracts United States (2017: 0.00%) MSCI Emerging Markets Index 16/03/2018 United States total

(120)

USD

5,815

Total unrealised loss on Futures Contracts (2017: 0.00%) Total financial assets at fair value through profit or loss Total financial liabilities at fair value through profit or loss Cash and cash equivalents Other assets and liabilities Net asset value attributable to redeemable participating shareholders

% of total assets

Analysis of total assets Transferable securities admitted to official stock exchange listing Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) OTC financial derivative instruments Other Assets Total Assets 1

Forward currency contracts are traded with the following counterparty: Citibank.

69

20.07 53.09 1.38 25.46 100.00

HEDGE INVEST INTERNATIONAL FUNDS plc HI CORE UCITS FUND SCHEDULE OF INVESTMENTS As at 31 December 2017

Investments

Currency

Holding

Fair Value EUR '000

% of Net Asset Value

USD EUR EUR EUR

13,786 10,619 9,933 709

1,223 1,168 1,043 734

3.38 3.23 2.89 2.03

EUR EUR EUR EUR EUR EUR EUR EUR GBP

128,833 12,867 18,884 9,000 9,361 18,105 15,987 12,855 780,793

1,400 1,443 1,938 790 1,042 2,266 1,625 1,303 1,569

3.87 3.99 5.36 2.19 2.88 6.27 4.49 3.60 4.34

17,544

48.52

Investment Funds - UCITS (2017: 92.29%) Ireland (2017: 49.24%) Active Funds ICAV - Global High Income Bond Fund Algebris Macro Credit Fund - Class I EUR Andurand UCITS ICAV Fundlogic Alternatives plc - MS Nezu Cyclicals Japan UCITS Fund - Class S EUR GAM Star Fund plc - Global Rates Fund - Class Ordinary EUR Hadron Alpha PLC - Hadron Alpha Select Fund - Class EUR HI Africa Opportunities Fund1 HI Numen Bear Rates Fund1 HI Numen Credit Fund1 HI Principia Fund1 HI Sibilla Macro Fund1 KL Event Driven UCITS Fund Majedie Asset Management Investment Fund Co. - Majedie Asset Tortoise Fund - Class G Ireland total Luxembourg (2017: 43.05%) Alpha UCITS SICAV - Amber Equity Fund - Class A EUR BlackRock Global Event Driven Fund DB Platinum Chilton European Equities - Class I2C-E GAM Star Lux - European Alpha Fund - Class D EUR JABCAP LUX - Global Balanced Fund - Class N EUR Julius Baer Multilabel - ARTEMIDE Fund - Class C EUR Julius Baer Multilabel - LYRA Fund - Class C EUR Kairos international SICAV - Pegasus UCITS - Class Accumulation P EUR Memnon Fund - European Fund - Class I EUR Memnon Fund - European Market Neutral Fund - Class I EUR Merrill Lynch Investment Solutions - York Asian Event-Driven UCITS Fund – Class USD D Merrill Lynch Investment Solutions - ZEAL Voyage Greater China UCITS Portland Hill Fund Sicav - Catalyst Driven Strategy – Class A EUR Quadra Capital - Global Equity Alpha Luxembourg total

EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR USD

863 17,591 11,435 5,607 1,586 13,620 8,886 10,435 2,720 6,872 13,759

1,171 1,895 1,336 579 192 1,871 1,188 1,433 561 741 1,694

3.24 5.24 3.70 1.60 0.53 5.17 3.29 3.96 1.55 2.05 4.69

USD EUR EUR

6,168 17,120 1,017

700 1,901 1,126 16,388

1.94 5.26 3.11 45.33

33,932

93.85

990 990

2.74 2.74

Total investments in Investment Funds - UCITS

Exchange Traded Funds (2017: 5.20%) France (2017: 3.69%) Lyxor Daily double Short BUND UCITS ETF France total

EUR

70

27,629

HEDGE INVEST INTERNATIONAL FUNDS plc HI CORE UCITS FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Investments

Fair Value EUR '000

% of Net Asset Value

11,132

202 202

0.56 0.56

2,956

375 375

1.04 1.04

1,567

4.34

Fair Value EUR '000

% of Net Asset Value

Currency

Holding

EUR

USD

Exchange Traded Funds (2017: 5.20%) (continued) Germany (2017: 0.56%) iShares STOXX Europe 600 Banks UCITS ETF Germany total Jersey (2017: 0.95%) United States (2017: 0.00%) iShares Russell 2000 ETF United States total Total investments in Exchange Traded Funds

Currency Purchased

Amount Purchased

Currency Sold

Amount Sold

Underlying Exposure EUR '000

Maturity Date

Forward Currency Contracts2 EUR EUR

3,601,581 382,224

USD USD

4,300,000 455,000

3,581 379

31/01/2018 31/01/2018

27 4 31

0.07 0.01 0.08

282 342 1,558 880 1,061

31/01/2018 31/01/2018 31/01/2018 31/01/2018 31/01/2018

(1) (1) (11) (6) (8) (27)

– – (0.03) (0.02) (0.02) (0.07)

35,530 (27) 1,177 (526) 36,154

98.27 (0.07) 3.25 (1.45) 100.00

Total unrealised gain on Forward Currency Contracts (2017: 0.03%) CHF CHF EUR USD USD

330,000 400,150 1,545,511 1,056,261 1,273,793

EUR EUR GBP EUR EUR

282,825 342,800 1,382,800 884,700 1,066,900

Total unrealised loss on Forward Currency Contracts (2017: (0.06)%) Total financial assets at fair value through profit or loss Total financial liabilities at fair value through profit or loss Cash and cash equivalents Other assets and liabilities Net asset value attributable to redeemable participating shareholders

71

HEDGE INVEST INTERNATIONAL FUNDS plc HI CORE UCITS FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017 % of total assets

Analysis of total assets Transferable securities admitted to official stock exchange listing Investment Funds OTC financial derivative instruments Other Assets

4.26 92.34 0.08 3.32 100.00

Total Assets 1

A related party to the Fund

2

Forward currency contracts are traded with the following counterparty: Credit Agricole.

72

HEDGE INVEST INTERNATIONAL FUNDS plc p

HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS As at 31 December 2017 Fair Value EUR '000

% of Net Asset Value

20 20

0.09 0.09

Total investments in Time Deposits

20

0.09

Total Liquidity Instruments

20

0.09

Fair Value EUR '000

% of Net Asset Value

Investments

Coupon Rate

Maturity Date

Holding

(0.66)%

04/01/2018

19,960

Liquidity Instruments

Time Deposits (2017: 3.27%) Japan (2017: 0.92%) United Kingdom (2017: 2.35%) Lloyds Bank plc United Kingdom total

Investments

Currency

Holding

GBP

140,000

319 319

1.40 1.40

Cayman Islands (2017: 0.00%) Lekoil Ltd. Cayman Islands total

GBP

2,433,083

456 456

2.01 2.01

Egypt (2017: 14.18%) Commercial International Bank Egypt SAE ElSewedy Electric Co. Oriental Weavers Telecom Egypt Co. Egypt total

EGP EGP EGP EGP

110,000 117,344 147,515 990,000

399 819 116 628 1,962

1.76 3.61 0.51 2.76 8.64

France (2017: 0.00%) TOTAL SA France total

EUR

24,000

1,106 1,106

4.87 4.87

Equities (2017: 74.87%) Australia (2017: 1.83%) South32 Ltd. Australia total Bermuda (2017: 1.08%)

73

HEDGE INVEST INTERNATIONAL FUNDS plc HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017 Fair Value EUR '000

% of Net Asset Value

310,000

553 553

2.44 2.44

KES KES

62,100 6,015,500

20 703 723

0.09 3.09 3.18

Nigeria (2017: 13.16%) Guaranty Trust Bank plc United Bank for Africa plc Zenith Bank plc Nigeria total

NGN NGN NGN

9,995,010 14,236,900 16,850,000

946 337 1,009 2,292

4.17 1.48 4.44 10.09

South Africa (2017: 20.54%) Growthpoint Properties Ltd., REIT Naspers Ltd. Novus Holdings Ltd. Redefine Properties Ltd., REIT South Africa total

ZAR ZAR ZAR ZAR

630,000 5,200 1,867 1,400,000

1,173 1,207 1 1,004 3,385

5.17 5.31 – 4.42 14.90

United Arab Emirates (2017: 7.05%) DP World Ltd. Emaar Properties PJSC United Arab Emirates total

USD AED

55,000 580,000

1,136 912 2,048

5.00 4.02 9.02

United Kingdom (2017: 0.00%) Anglo American plc Cairn Energy plc United Kingdom total

GBP GBP

1,000 240,000

18 579 597

0.08 2.55 2.63

13,441

59.18

Investments

Currency

Holding

Jersey (2017: 4.15%) Centamin plc Jersey total

GBP

Kenya (2017: 12.88%) Equity Group Holdings Ltd. KenolKobil Ltd. Group Kenya total

Equities (continued)

Total investments in Equities

Investments

Coupon Rate

Maturity Date

Currency

Holding

Fair Value EUR '000

% of Net Asset Value

26/06/2018 10/07/2018

EGP EGP

17,000,000 15,000,000

735 644

3.24 2.83

Bonds

Government Fixed Coupon Securities (2017: 0.00%) Egypt (2017: 0.00%) Egypt Treasury Bill Egypt Treasury Bill

0.00% 0.00%

74

HEDGE INVEST INTERNATIONAL FUNDS plc HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017 Coupon Rate

Investments

Maturity Date

Currency

Holding

Fair Value EUR '000

% of Net Asset Value

Government Fixed Coupon Securities (2017: 0.00%) (continued) Egypt (2017: 0.00%) (continued) Egypt Treasury Bill Egypt total

0.00%

16/10/2018

EGP

9,500,000

391 1,770

1.72 7.79

Ghana (2017: 0.00%) Ghana Government Bond Ghana Government Bond Ghana total

21.50% 18.25%

09/03/2020 21/09/2020

GHS GHS

4,000,000 5,200,000

799 982 1,781

3.52 4.32 7.84

Nigeria (2017: 0.00%) Nigeria Government Bond Nigeria Government Bond Nigeria total

0.00% 15.54%

19/07/2018 13/02/2020

NGN NGN

600,000,000 135,000,000

1,278 320 1,598

5.63 1.41 7.04

Zambia (2017: 0.00%) Zambia Government Bond Zambia Government Bond Zambia total

11.00% 11.00%

23/05/2021 29/08/2021

ZMW ZMW

9,000,000 5,000,000

628 347 975

2.76 1.53 4.29

Total investments in Government Fixed Coupon Securities

6,124

26.96

Total Bonds

6,124

26.96

Fair Value EUR '000

% of Net Asset Value

Country

Counterparty

Currency

Holding

Underlying Exposure EUR '000

Contracts for Difference Jersey (2017: 0.00%) Glencore plc Jersey total

Goldman Sachs

EUR

275,000

275

66 66

0.29 0.29

South Africa (2017: 0.69%) Aspen Pharmacare Holdings Ltd. South Africa total

BNP Paribas

EUR

(33,000)

33

10 10

0.04 0.04

United Kingdom (2017: 0.21%) Anglo American plc PZ Cussons plc Tullow Oil plc United Kingdom total

BNP Paribas Goldman Sachs BNP Paribas

EUR EUR EUR

64,000 (35,000) 225,000

64 35 225

218 3 57 278

0.96 0.01 0.25 1.22

354

1.55

Total unrealised gain on Contracts for Difference (2017: 0.90%)

75

HEDGE INVEST INTERNATIONAL FUNDS plc HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Country

Counterparty

Currency

Holding

Underlying Exposure EUR '000

Fair Value EUR '000

% of Net Asset Value

Contracts for Difference (continued) Netherlands (2017: 0.00%) OCI NV Netherlands total

BNP Paribas

EUR

(12,500)

13

(12) (12)

(0.05) (0.05)

South Africa (2017: (0.05)%) Capitec Bank Holdings Ltd. Life Healthcare Group Holdings Ltd. Mr Price Group Ltd. MTN Group Ltd. Pioneer Foods Group Ltd. Sun International Ltd. Sun International Ltd. Truworths International Ltd. South Africa total

BNP Paribas Goldman Sachs BNP Paribas BNP Paribas Goldman Sachs BNP Paribas Goldman Sachs BNP Paribas

EUR EUR EUR EUR EUR EUR EUR EUR

(3,000) (300,000) (9,000) (65,000) (67,000) (20,000) (120,000) (50,000)

3 300 9 65 67 20 120 50

(53) (78) (55) (103) (149) (24) (114) (103) (679)

(0.23) (0.34) (0.24) (0.45) (0.66) (0.11) (0.50) (0.45) (2.98)

Switzerland (2017: 0.00%) LafargeHolcim Ltd. Switzerland total

BNP Paribas

EUR

(6,000)

6

(13) (13)

(0.06) (0.06)

(704)

(3.09)

Maturity Date

Fair Value EUR '000

% of Net Asset Value

4,981 5,093

15/01/2018 28/12/2018

18 32 50

0.08 0.14 0.22

30 341 496

31/01/2018 31/01/2018 28/12/2018

– (2) (17) (19)

– (0.01) (0.07) (0.08)

19,989 (723) 3,472 (27) 22,711

88.00 (3.17) 15.29 (0.12) 100.00

Total unrealised loss on Contracts for Difference (2017: (0.05)%)

Currency Purchased

Amount Purchased

Currency Sold

Amount Sold

Underlying Exposure EUR '000

Forward Currency Contracts1 EUR EUR

5,000,000 5,000,000

CHF USD

5,829,024 6,115,876

Total unrealised gain on Forward Currency Contracts (2017: 0.00%2) USD USD USD

35,900 409,029 595,320

EUR3 EUR EUR

30,028 342,191 500,000

Total unrealised loss on Forward Currency Contracts (2017: (0.02)%) Total financial assets at fair value through profit or loss Total financial liabilities at fair value through profit or loss Cash and cash equivalents Other assets and liabilities Net asset value attributable to redeemable participating shareholders

76

HEDGE INVEST INTERNATIONAL FUNDS plc HI AFRICA OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017 % of total assets

Analysis of total assets Transferable securities admitted to official stock exchange listing Transferable securities dealt in on another regulated market Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) OTC financial derivative instruments Other Assets Total Assets 1

Forward currency contracts are traded with the following counterparty: J.P. Morgan.

2

Prior year percentage of net asset value rounds to 0.00%.

3

Investments which are less than EUR 500 have been rounded down to zero.

77

56.94 25.94 0.08 1.71 15.33 100.00

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN BEAR RATES FUND SCHEDULE OF INVESTMENTS As at 31 December 2017

Currency

Holding

Fair Value USD '000

% of Net Asset Value

Maturity Date

Currency

Holding

Fair Value USD '000

% of Net Asset Value

31/08/2019 31/08/2019 15/03/2018 24/05/2018 21/06/2018

USD USD USD USD USD

Investments Exchange Traded Note (2017: 9.26%) United Kingdom (2017: 9.26%) Coupon Rate

Investments Bonds

Government Fixed Coupon Securities (2017: 0.00%) United States (2017: 0.00%) US Treasury US Treasury US Treasury Bill US Treasury Bill US Treasury Bill United States total

2,970 2,391 997 2,983 1,986 11,327

19.44 15.65 6.52 19.52 13.00 74.13

Total investments in Government Fixed Coupon Securities

11,327

74.13

Total Bonds

11,327

74.13

Notional Amount

Currency

1.25% 1.63% 0.00% 0.00% 0.00%

Counterparty

Reference Entity

3,000,000 2,400,000 1,000,000 3,000,000 2,000,000

Buy/Sell

Maturity Date

Underlying Exposure USD '000

Fair Value USD '000

Buy

20/06/2022

2,000

40

0.26

Buy

20/06/2022

500

10

0.07

Sell

20/03/2018

2,000

5

0.03

Sell

20/06/2018

3,000

15

0.10

70

0.46

% of Net Asset Value

Credit Default Swaps 2,000,000

USD

BNP Paribas

500,000

USD

BNP Paribas

2,000,000

USD

BNP Paribas

3,000,000

USD

J.P. Morgan

Republic of Turkey Republic of Turkey United Kingdom of Great Britain and Northern Ireland United Kingdom of Great Britain and Northern Ireland

Total unrealised gain on Credit Default Swaps (2017: 0.08%)

78

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN BEAR RATES FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Notional Amount

Currency

Counterparty

Reference Entity

Buy/Sell

Maturity Date

Underlying Exposure USD '000

Fair Value USD '000

Buy

20/12/2018

3,602

(6)

(0.04)

Buy

20/06/2027

2,000

(103)

(0.67)

Buy

20/06/2022

2,000

(42)

(0.28)

Buy

20/06/2022

2,000

(42)

(0.28)

Buy

20/12/2027

3,000

(155)

(1.01)

(348)

(2.28)

% of Net Asset Value

Credit Default Swaps (continued) 3,000,000

EUR

BNP Paribas

2,000,000

USD

BNP Paribas

2,000,000

USD

J.P. Morgan

2,000,000

USD

J.P. Morgan

3,000,000

USD

J.P. Morgan

United States of America United Kingdom of Great Britain and Northern Ireland Republic of Korea Republic of Korea United Kingdom of Great Britain and Northern Ireland

Total unrealised loss on Credit Default Swaps (2017: (1.10)%)

Country

Counterparty

Currency

Holding

Underlying Exposure USD '000

EUR

(1,500,000)

1,801

50 50

0.33 0.33

EUR

(1,500,000)

1,801

66

0.43

66

0.43

42 42

0.28 0.28

158

1.04

(8) (8)

(0.05) (0.05)

(8)

(0.05)

Fair Value USD '000

% of Net Asset Value

Contracts for Difference Belgium (2017: 0.00%) Kingdom of Belgium Belgium total

UBS

France (2017: 0.00%) French Republic Government Bond OAT UBS France total Spain (2017: 0.00%) Spain Government Bond Spain total

UBS

EUR

(4,000,000)

4,803

Total unrealised gain on Contracts for Difference (2017: 0.00%) Austria (2017: 0.00%) Austria Government Bond Austria total

UBS

EUR

Total unrealised loss on Contracts for Difference (2017: (0.00)%)

79

(1,000,000)

1,201

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN BEAR RATES FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Currency Purchased

Amount Purchased

Currency Sold

Amount Sold

Underlying Exposure USD '000

Maturity Date

Fair Value USD '000

% of Net Asset Value

Forward Currency Contracts2 EUR EUR EUR EUR EUR USD

10,322,000 2,689,000 450,000 321,000 86,000 5,000,000

USD USD USD USD USD HKD

12,208,655 3,180,495 532,251 381,444 102,194 38,885,000

12,395 3,229 540 385 103 4,974

05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018 12/02/2018

187 49 8 4 1 22 271

1.22 0.32 0.05 0.03 0.01 0.14 1.77

72 86 277 540 330

05/01/2018 05/01/2018 05/01/2018 05/01/2018 05/01/2018

(1) (1) (1) (2) (3) (8)

(0.01) (0.01) – (0.01) (0.02) (0.05)

Notional Amount

Fair Value USD '000

Total unrealised gain on Forward Currency Contracts (2017: 0.35%) USD USD USD USD USD

71,772 85,608 276,322 538,290 326,975

EUR EUR EUR EUR EUR

60,000 72,000 231,000 450,000 275,000

Total unrealised loss on Forward Currency Contracts (2017: 0.00%)

Investments

No. of contracts

Underlying Exposure Currency USD '000

% of Net Asset Value

Futures Contracts Germany (2017: 0.84%) Euro-BTP 08/03/2018 Euro-Bund 08/03/2018 Euro-Buxl 08/03/2018 Euro-OAT 08/03/2018 Short Euro-BTP 08/03/2018 Germany total

(30) (20) (46) (16) (50)

EUR EUR EUR EUR EUR

(4,904) 3,883 9,051 2,981 (6,787)

3,000,000 2,000,000 4,600,000 1,600,000 5,000,000

6 31 163 36 3 239

0.04 0.20 1.07 0.23 0.02 1.56

Singapore (2017: 0.02%) 10 Year Mini JGB 12/03/2018 Singapore total

(30)

JPY

4,017

300,000,000

1 1

0.01 0.01

(79)

USD

9,800

7,900,000

53 53

0.35 0.35

293

1.92

– –

– –

Switzerland (2017: 0.45%) United States (2017: 0.00%) US 10 Year Note 20/03/2018 United States total

Total unrealised gain on Futures Contracts (2017: 1.31%) Germany (2017: (0.13)%) Euro-Bobl 08/03/20181

(1)

EUR

Germany total

80

158

100,000

HEDGE INVEST INTERNATIONAL FUNDS plc HI NUMEN BEAR RATES FUND SCHEDULE OF INVESTMENTS (continued) As at 31 December 2017

Investments

No. of contracts

Underlying Exposure Currency USD '000

Notional Amount

Fair Value USD '000

% of Net Asset Value

Futures Contracts (continued) Switzerland (2017: 0.00%) Swiss Federal Bond 08/03/2018 Switzerland total

(28)

CHF

4,622

2,800,000

(12) (12)

(0.08) (0.08)

United Kingdom (2017: 0.00%) Long Gilt 27/03/2018 United Kingdom total

(25)

GBP

4,233

2,500,000

(24) (24)

(0.16) (0.16)

(36)

(0.24)

12,119 (400) 3,606 (45) 15,280

79.32 (2.62) 23.60 (0.30) 100.00

United States (2017: (0.20)%) Total unrealised loss on Futures Contracts (2017: (0.33)%) Total financial assets at fair value through profit or loss Total financial liabilities at fair value through profit or loss Cash and cash equivalents Other assets and liabilities Net asset value attributable to redeemable participating shareholders

% of total assets 34.01 37.85 1.86 3.17 23.11 100.00

Analysis of total assets Transferable securities admitted to an official stock exchange listing Transferable securities traded on a regulated market Financial derivative instruments dealt in on a regulated market OTC financial derivative instruments Other Assets Total Assets 1

Investments which are less than EUR 500 have been rounded down to zero.

2

Forward currency contracts are traded with the following counterparty: J.P. Morgan.

81

HEDGE INVEST INTERNATIONAL FUNDS plc OTHER INFORMATION HI NUMEN CREDIT FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the period ended 31 December 2017 Purchases Holding 54,880,000 537,800 262,000 22,820,000 19,760,000 20,000,000 195,000 17,789,000 16,740,000 17,500,000 18,000,000 16,500,000 3,506,000 15,000,000 14,393,000 12,650,000 11,500,000 10,500,000 9,200,000 10,000,000 10,000,000 9,000,000 8,500,000 10,000,000 8,043,000 8,000,000 8,000,000 8,000,000

Investments Bundesrepublik Deutschland iShares iBoxx USD High Yield Corporate Bond ETF NXP Semiconductors NV Bundesobligation Bundesrepublik Deutschland Italy Buoni Ordinari del Tesoro BOT Monsanto Co. Bundesrepublik Deutschland Bundesrepublik Deutschland Greece Government Bond Dream Global Funding I Sarl, REIT HSBC Holdings plc iPath S&P GSCI Crude Oil Total Return Index ETN Bankia SA, FRN Bundesobligation Bundesrepublik Deutschland VIVAT NV Intrum Justitia AB, FRN Bundesrepublik Deutschland Morgan Stanley FI. CaixaBank SA Standard Chartered plc Vivendi SA SoftBank Group Corp. Bundesrepublik Deutschland Unipol Gruppo SpA Italgas SpA Daimler AG

Coupon rate 0.50%

Maturity date 15/08/2027

0.00% 1.00% 0.00%

08/10/2021 15/08/2024 29/03/2018

1.50% 1.50% 4.75% 1.38% 0.00%

15/05/2023 04/09/2022 17/04/2019 21/12/2021 05/10/2023

6.00% 0.00% 2.00% 2.38% 3.13% 2.50% 0.00% 0.00% 0.00% 0.88% 5.13% 0.50% 3.50% 1.63% 1.00%

18/07/2022 07/10/2022 04/01/2022 17/05/2024 15/07/2024 04/01/2021 09/11/2021 14/07/2028 03/10/2023 18/09/2024 19/09/2027 15/02/2026 29/11/2027 18/01/2029 15/11/2027

Coupon rate 4.75% 0.50%

Maturity date 17/04/2019 15/08/2027

0.00%

15/09/2017

0.00% 1.00% 0.00% 0.00% 1.50% 1.50%

08/10/2021 15/08/2024 14/06/2018 29/03/2018 15/05/2023 04/09/2022

0.00%

05/10/2023

0.00% 2.00% 6.00% 2.75%

07/10/2022 04/01/2022 18/07/2022 14/07/2028

Cost EUR ’000 55,537 40,000 25,543 23,181 21,261 20,034 20,002 19,479 18,260 17,938 17,924 16,500 16,132 15,000 14,610 13,950 11,475 10,704 10,118 10,000 9,997 8,980 8,446 8,366 8,300 7,987 7,980 7,948

Sales Holding 65,500,000 54,880,000 537,800 35,000,000 230,375 22,820,000 19,760,000 20,000,000 20,000,000 17,789,000 16,740,000 3,506,000 16,500,000 3,675,390 14,393,000 12,650,000 11,000,000 10,000,000

Investments Greece Government Bond Bundesrepublik Deutschland iShares iBoxx USD High Yield Corporate Bond ETF Spain Letras del Tesoro Monsanto Co. Bundesobligation Bundesrepublik Deutschland Italy Buoni Ordinari del Tesoro BOT Italy Buoni Ordinari del Tesoro BOT Bundesrepublik Deutschland Bundesrepublik Deutschland iPath S&P GSCI Crude Oil Total Return Index ETN HSBC Holdings plc Banca Monte dei Paschi di Siena SpA Bundesobligation Bundesrepublik Deutschland Bankia SA, FRN CaixaBank SA 82

Proceeds EUR ’000 67,191 55,548 39,890 35,022 23,415 23,182 21,264 20,059 20,033 19,513 18,278 16,927 16,537 16,261 14,617 13,964 10,938 10,140

HEDGE INVEST INTERNATIONAL FUNDS plc OTHER INFORMATION HI NUMEN CREDIT FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the period ended 31 December 2017 Sales (continued) Holding 9,200,000 10,000,000 7,300,000 9,000,000 8,500,000 10,000,000 8,043,000 83,000 8,000,000 8,000,000

Investments Bundesrepublik Deutschland Morgan Stanley FI. Banco Mare Nostrum SA, FRN Standard Chartered plc Vivendi SA SoftBank Group Corp. Bundesrepublik Deutschland NXP Semiconductors NV Italgas SpA Daimler AG

Coupon rate 2.50% 0.00% 9.00% 0.00% 0.88% 5.13% 0.50%

Maturity date 04/01/2021 09/11/2021 16/11/2026 03/10/2023 18/09/2024 19/09/2027 15/02/2026

1.63% 1.00%

18/01/2029 15/11/2027

Proceeds EUR ’000 10,118 10,007 9,091 8,976 8,432 8,381 8,301 8,157 7,964 7,888

The CBI requires a schedule of material changes in the composition of the portfolio 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.

83

HEDGE INVEST INTERNATIONAL FUNDS plc OTHER INFORMATION HI PRINCIPIA FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the period ended 31 December 2017 Purchases Holding 345,000 177,000 162,500 664,000 133,500 341,500 265,580 515,000 653,000 382,500 180,000 44,500 183,000 172,000 22,500 104,000 185,000 24,000 52,000 954,000 210,000 84,500 150,000 110,000 65,465 110,000 32,000 40,000 41,500 230,000 43,000 470,000 65,000 90,714 600,000 267,000 35,408 31,000 26,500 41,000 490,000 46,000

Investments ams AG Fresenius SE & Co. KGaA Aurubis AG Deutsche Telekom AG OSRAM Licht AG thyssenkrupp AG AMG Advanced Metallurgical Group NV Evotec AG CECONOMY AG PATRIZIA Immobilien AG Philips Lighting NV Gecina SA Koninklijke Philips NV ProSiebenSat.1 Media SE Lonza Group AG Soitec Infineon Technologies AG Muenchener Rueckversicherungs-Gesellschaft AG Wirecard AG Maire Tecnimont SpA Prudential plc United Internet AG Evonik Industries AG Novo-Nordisk A/S 'B' Koenig & Bauer AG Tarkett SA Vifor Pharma AG Temenos Group AG Siltronic AG Scandinavian Tobacco Group A/S Vestas Wind Systems A/S International Consolidated Airlines Group SA Brenntag AG Hapag-Lloyd AG Ahlsell AB Subsea 7 SA Bertrandt AG Kerry Group plc ALK-Abello A/S Ubisoft Entertainment SA Telefonaktiebolaget LM Ericsson 'B' Axel Springer SE

Cost EUR ’000 20,625 11,768 11,457 10,237 9,005 8,445 7,795 7,298 6,174 6,012 5,837 5,818 5,749 5,139 5,123 5,034 4,586 4,549 4,540 4,354 4,299 4,178 4,142 4,111 4,103 4,084 3,503 3,454 3,359 3,345 3,305 3,277 3,262 3,247 3,242 3,228 2,753 2,662 2,637 2,597 2,588 2,582

Investments ams AG Fresenius SE & Co. KGaA Deutsche Telekom AG

Proceeds EUR ’000 21,959 11,405 10,014

Sales Holding 345,000 177,000 664,000

84

HEDGE INVEST INTERNATIONAL FUNDS plc OTHER INFORMATION HI PRINCIPIA FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the period ended 31 December 2017 Sales (continued) Holding 184,500 341,500 79,000 515,000 87,000 2,785,000 1,999,000 653,000 183,000 180,000 820,000 104,000 106,400 157,000 258,658 42,000 150,000 128,580 172,000 52,000 68,500 507,860 185,000 110,000 65,465 40,000 223,000 1,819,000 309,000 110,000 954,000 267,000 41,500 52,000 43,000 35,408 251,000 65,000 600,000 93,999 46,000

Investments United Internet AG thyssenkrupp AG Pandora A/S Evotec AG Aurubis AG Greencore Group plc Technicolor SA CECONOMY AG Koninklijke Philips NV Philips Lighting NV International Consolidated Airlines Group SA Soitec FLSmidth & Co. A/S Aareal Bank AG PATRIZIA Immobilien AG Wacker Chemie AG Evonik Industries AG AMG Advanced Metallurgical Group NV ProSiebenSat.1 Media SE Wirecard AG OSRAM Licht AG UNIQA Insurance Group AG Infineon Technologies AG Novo-Nordisk A/S 'B' Koenig & Bauer AG Temenos Group AG Suedzucker AG Cambian Group plc Indra Sistemas SA Tarkett SA Maire Tecnimont SpA Subsea 7 SA Siltronic AG Covestro AG Vestas Wind Systems A/S Bertrandt AG TUI AG Brenntag AG Ahlsell AB Hapag-Lloyd AG Axel Springer SE

85

Proceeds EUR ’000 9,045 8,419 7,485 6,409 6,398 6,216 6,214 6,064 5,953 5,852 5,697 5,598 5,550 5,546 4,783 4,695 4,632 4,627 4,566 4,510 4,343 4,339 4,318 4,100 4,083 4,025 4,018 3,903 3,880 3,751 3,576 3,421 3,382 3,306 3,287 3,278 3,202 3,175 3,103 3,066 2,734

HEDGE INVEST INTERNATIONAL FUNDS plc OTHER INFORMATION HI PRINCIPIA FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the period ended 31 December 2017 The CBI requires a schedule of material changes in the composition of the portfolio 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.

86

HEDGE INVEST INTERNATIONAL FUNDS plc OTHER INFORMATION HI SIBILLA MACRO FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the period ended 31 December 2017 Purchases Holding 770,057 1,430,852 13,940,000 84,350 466,951 108,271 244,148 119,144 81,167 102,168 37,579 89,880 101,080 25,542 11,200 6,243 28,060 56,200 8,514 68,880

Investments iPath S&P 500 VIX Short term Futures ETN iPath S&P 500 VIX Short term Futures ETN US Treasury Match Group, Inc. Cloud Peak Energy, Inc. Canadian Solar, Inc. DHX Media Ltd. LendingClub Corp. Banco Bilbao Vizcaya Argentaria SA ADR Banco Santander SA ADR FireEye, Inc. Mitsubishi UFJ Financial Group, Inc. Nomura Holdings, Inc. KBR, Inc. Takeaway.com NV Gilead Sciences, Inc. UBS Group AG Sunrun, Inc. General Motors Co. Nomura Holdings, Inc.

Coupon rate

Maturity date

1.38%

30/09/2019

Cost EUR ’000 20,637 14,050 11,920 1,745 1,712 1,542 1,026 605 589 569 513 464 459 415 412 405 390 325 315 308

Sales Holding 770,057 1,430,852 466,951 66,463 108,271 81,167 102,168 11,200 119,144 89,880 101,080 37,579 25,542 28,060 6,243 68,880 57,400 56,200 8,514 17,028

Proceeds EUR ’000 20,620 14,095 1,713 1,610 1,562 572 557 527 524 487 479 444 411 409 384 353 338 325 314 276

Investments iPath S&P 500 VIX Short term Futures ETN iPath S&P 500 VIX Short term Futures ETN Cloud Peak Energy, Inc. Match Group, Inc. Canadian Solar, Inc. Banco Bilbao Vizcaya Argentaria SA ADR Banco Santander SA ADR Takeaway.com NV LendingClub Corp. Mitsubishi UFJ Financial Group, Inc. Nomura Holdings, Inc. FireEye, Inc. KBR, Inc. UBS Group AG Gilead Sciences, Inc. Nomura Holdings, Inc. Mitsubishi UFJ Financial Group, Inc. Sunrun, Inc. General Motors Co. Potash Corp. of Saskatchewan, Inc.

The CBI requires a schedule of material changes in the composition of the portfolio 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. 87

HEDGE INVEST INTERNATIONAL FUNDS plc OTHER INFORMATION HI CORE UCITS FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the period ended 31 December 2017 Purchases*

Holding 12,855 1,017 9,933 6,872 2,956 3,262 1,586 1,203

Investments KL Event Driven UCITS Fund Quadra Capital - Global Equity Alpha Andurand UCITS ICAV Memnon Fund - European Market Neutral Fund iShares Russell 2000 ETF Active Funds ICAV - Global High Income Bond Fund JABCAP LUX - Global Balanced Fund - Class N EUR Kairos international SICAV - Pegasus UCITS - Class Accumulation P EUR

Cost EUR ’000 1,300 1,100 1,000 740 383 295 190 150

Sales*

Holding 16,106 973 4,468 455 58,953 1,868 5,736 2,060 767 968

Investments Lazard European Alternative Fund - Class Institutional Accumulation EA EUR Boussard & Gavaudan SICAV - Absolute Return Fund - Class Z EUR Hadron Alpha PLC - Hadron Alpha Select Fund - Class EUR Fundlogic Alternatives plc - MS Nezu Cyclicals Japan UCITS Fund - Class S EUR ETFS WTI Crude Oil Memnon Fund - European Fund - Class I EUR LYXOR CAC 40 (DR) UCITS ETF - Class D EUR JABCAP LUX - Global Balanced Fund - Class N EUR Julius Baer Multilabel - LYRA Fund - Class C EUR HI Sibilla Macro Fund

Proceeds EUR ’000 1,675 1,080 493 469 412 381 288 254 100 99

The CBI requires a schedule of material changes in the composition of the portfolio 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. *There were 8 purchases and 10 sales during the period.

88

HEDGE INVEST INTERNATIONAL FUNDS plc OTHER INFORMATION HI AFRICA OPPORTUNITIES FUND SCHEDULE OF MATERIAL PURCHASES AND SALES For the period ended 31 December 2017 Purchases Holding 8,300 600,000,000 24,000 55,000 5,200,000 4,000,000 53,000 30,000 9,000,000 17,000,000 15,000,000 240,000 300,000 2,433,083 310,000 1,238,800 9,500,000 110,000 5,000,000 180,000 135,000,000 450,000 190,000 39,000 20,000

Investments Naspers Ltd. Nigeria Government Bond TOTAL SA DP World Ltd. Ghana Government Bond Ghana Government Bond Anglo American plc Sasol Ltd. Zambia Government Bond Egypt Treasury Bill Egypt Treasury Bill Cairn Energy plc Tullow Oil plc Lekoil Ltd. Centamin plc Equity Group Holdings Ltd. Egypt Treasury Bill Commercial International Bank Egypt SAE Zambia Government Bond Emaar Properties PJSC Nigeria Government Bond Redefine Properties Ltd. Growthpoint Properties Ltd. EOH Holdings Ltd. Discovery Ltd.

Coupon rate

Maturity date

0.00%

19/07/2018

18.25% 21.50%

21/09/2020 09/03/2020

11.00% 0.00% 0.00%

23/05/2021 26/06/2018 10/07/2018

0.00%

16/10/2018

11.00%

29/08/2021

15.54%

13/02/2020

Cost EUR ’000 1,742 1,137 1,108 1,073 1,022 828 748 713 703 693 599 528 520 489 480 443 394 381 377 347 323 291 290 278 188

Sales Holding 8,400 260,000 4,582,400 100,000 2,504,600 130,000 30,000 52,000 117,864 1,250,000 100,281 752,452 40,000 300,000 200,000 4,100,000 650,000 1,500,000 700,000 40,000 145,000

Proceeds EUR ’000 1,852 947 926 883 794 783 726 726 687 610 586 577 543 508 434 414 394 344 233 224 166

Investments Naspers Ltd. Glencore plc Safaricom Ltd. Discovery Ltd. Equity Group Holdings Ltd. EOH Holdings Ltd. Sasol Ltd. Anglo American plc Orascom Construction Ltd. Dangote Cement plc ElSewedy Electric Co. Oriental Weavers Shoprite Holdings Ltd. Tullow Oil plc East African Breweries Ltd. Ghabbour Auto Telecom Egypt Co. Guinness Nigeria plc KCB Group Ltd. Kosmos Energy Ltd. Dice Sport & Casual Wear 89

HEDGE INVEST INTERNATIONAL FUNDS plc OTHER INFORMATION HI AFRICA OPPORTUNITIES FUND SCHEDULE OF MATERIAL PURCHASES AND SALES (continued) For the period ended 31 December 2017 The CBI requires a schedule of material changes in the composition of the portfolio 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.

90

HEDGE INVEST INTERNATIONAL FUNDS plc OTHER INFORMATION HI NUMEN BEAR RATES FUND SCHEDULE OF MATERIAL PURCHAS ES AND SALES For the period ended 31 December 2017 Purchases* Holding 5,000,000 3,000,000 3,000,000 613,750 2,400,000 2,000,000 1,000,000 800,000

Investments US Treasury Bill US Treasury US Treasury Bill iPath S&P GSCI Crude Oil Total Return Index ETN US Treasury US Treasury Bill US Treasury Bill US Treasury Bill

Coupon rate 0.00% 1.25% 0.00%

Maturity date 28/09/2017 31/08/2019 24/05/2018

1.63% 0.00% 0.00% 0.00%

31/08/2019 21/06/2018 15/03/2018 07/12/2017

Cost USD ’000 4,989 2,995 2,977 2,880 2,414 1,983 994 798

Sales* Holding 848,750

Investments iPath S&P GSCI Crude Oil Total Return Index ETN

Proceeds USD ’000 4,242

The CBI requires a schedule of material changes in the composition of the portfolio 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. *There were 8 purchases and 1 sale during the period.

91

HEDGE INVEST INTERNATIONAL FUNDS plc SECURITIES FINANCING TRANSACTIONS For the period from 01 July 2017 to 31 December 2017 The Company did not engage in Securities Financing Transactions or Total Return Swaps (as defined in Article 3 of Regulation (EU) 2015/2365, securities financing transactions include repurchase transactions, securities or commodities lending and securities or commodities borrowing, buy-sell back transactions or sell-buy back transactions and margin lending transactions) during the period ended 31 December 2017. Accordingly, disclosures required by Article 13 of the Regulation are not applicable.

92