Entity ACPI Select UCITS Funds Plc, Ireland

Investment manager ACPI Investments Ltd

Inception date 31 October 2013

B’mark 1 Lipper Cautious Index

B’mark 2 40% MSCI, 55% Barc Gl Agg , 5% Cash

Minimum investment €2,500

Minimum additional investment €500

Subscription Daily

Redemption Daily

Redemption notice One business day

Available currencies USD, GBP, EUR, CHF

ISIN IE00BKXGW867

TICKER ACPBEUR ID

Strategy assets (USD) $163 million

NAV (EUR) €11.85

Total return since inception +18.5%

Annualised return since inception +3.5%

Annualised standard deviation 6.4%

Sharpe ratio 0.46

Percentage of up months 58.3%

Percentage of down months 41.7%

Management fee 1.50%

Performance fee None

Past performance is no guarantee of future returns. Source: ACPI and Bloomberg. All performance is calculated on a NAV-to-NAV basis and is as at the last business day of the month.

Net performance (%)

1 month 3 months 6 months 1 year 3 years* 5 years* 10 years*

Fund +0.1 0.0 -0.8 -0.8 +5.3 +3.5 -

Benchmark -0.1 +1.0 -1.2 +1.5 +5.3 +2.1 -

The Fund (EUR R Class) finished +0.1% vs. -0.1% for the Lipper Cautious Index to leave the Fund -3.0% vs. -1.0% on a year to date basis.

Macro

Markets remained quite skittish through September, dictated by the ebbs and flows of the trade spat between the US and China whilst the Brexit saga continued to take centre stage in Europe. After initially selling off during the first half of the month, a less than initially feared round of trade tariffs imposed by the US and China on one another prompted a rebound in risk assets to leave the MSCI AC World TR Index barely positive on the month, +0.4%.

Bonds fared poorly in September with the Barclays Global Aggregate TR Index finishing -0.9%, with the yield on US 10 Year Treasuries 20bps wider to 3.08%, (prices move inversely to yield) weighing on overall returns, whilst modestly rising yields within European and Japanese core rates markets also detracted.

As expected the US administration went ahead with its proposal to levy tariffs on a further $200bn of imports from China however the applied tariff is initially going to be 10% rather than the more feared rate of 25%. It is likely however that the US will impose the higher rate in early 2019 following the decision by the Chinese authorities to retaliate by implementing their own tariffs on $60bn of imported goods from the US. For now US equity markets have taken this escalating tension in their stride, however the same cannot be said for China which remains -19.7% ytd despite a decent +2.6% rebound in September.

Also appeasing investor opinion for the time being was a comment made by the Chinese Premier, Li Keqiang who confirmed that the government would refrain from weakening the Yuan in order to boost growth. The Yuan was modestly weaker on the month, finishing +0.4% at 6.88 versus the US Dollar.

Elsewhere the US Dollar finished flat on the month despite the Fed’s decision to increase rates and the outlook it provided at month end. This prompted something of a relief rally elsewhere, particularly in EM currencies which had gone into the month nursing heavy year to date declines. In addition, a host of central banks within the developing world have recently increased interest rates with Indonesia and the Philippines being the latest to raise rates in September and following Turkey and Russia recently. This has for now taken some of the stresses off the emerging market debt spectrum which saw the JPM EMBI finish +1.8% on the month with spreads recovering from 406bps at the start of the month to finish at 362bps.

Softer readings on US inflation were probably the main factor weighing on the US Dollar throughout the month with headline CPI coming in at 2.7% (year on year) for August, whilst the core reading came in at 2.2% versus expectations of 2.8% and 2.4% respectively. For now this illustrates that the acceleration in

Monthly performance (%)

J F M A M J J A S O N D Year BM1

2014 -2.41 2.87 0.00 0.48 1.34 0.47 -0.47 0.09 -1.23 0.10 2.39 -0.93 +2.6 -2.4

2015 -0.19 2.64 -1.29 2.51 0.09 -2.36 0.84 -4.24 -2.31 5.22 -0.94 -1.32 -1.7 -4.6

2016 -4.31 0.60 4.67 1.71 -0.65 -0.94 2.66 0.74 -0.55 -1.85 -0.28 1.13 +2.7 +1.6

2017 2.05 2.28 1.16 1.94 1.53 -0.05 1.54 -0.39 0.73 0.60 0.65 1.08 +13.9 +14.4

2018 2.70 -3.12 -1.73 1.02 -0.60 -1.23 0.76 -0.82 0.07 -3.0 -1.0

The ACPI Balanced UCITS Fund aims to provide investors with long-term capital preservation and growth by investing in a portfolio of equities, bonds and cash. The Fund invests in cash deposits, international bond and equity funds to provide a portfolio diversified through both asset and geographic allocations.

Ratings as at the end July 2018

(continued overleaf)

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Historical Alpha (RHS) ACPI Balanced UCITS Fund R EUR Lipper Cautious Index

Rolling 12-month performance to the most recent quarter end (30 September 2018)

30.09.2017 – 30.09.2018

30.09.2016 – 30.09.2017

30.09.2015 – 30.09.2016

30.09.2014 – 30.09.2015

30.09.2013 – 30.09.2014

Fund -0.8% +10.1% +6.7% -3.0% +4.7%

Benchmark +1.5% +7.6% +6.8% -7.6% +2.9%

US 10-Year Treasury 8.6%

Sector Healthcare Value Fund 6.9%

Vulcan Value Equity Fund 6.5%

* totals may not equal 100% due to rounding

headline and core inflation which began earlier this year is reversing.

That didn’t however give the Federal Reserve cause for concern which as expected lifted borrowing rates by a further 0.25% to 2%. In a statement which some interpreted as being more hawkish, the Fed removed their “accommodative” term to describe current policy whilst it made no mention of the impact a stronger US Dollar is having within a number of emerging markets currently.

In reality we would say that current policy is still very much accommodative considering that real interest rates are still modestly negative despite the tightness in labour markets and a now positive output gap in the US. Expectations remain for another 25bps hike before the end of this year with a further three 25bps increases over 2019.

On the economic activity side, the rate of global growth continues to slow with the JPM Global Manufacturing PMI coming in at 52.2 for September, down from 52.6 the previous month and the lowest reading since November 2016. The primary detractors came from Europe where manufacturing growth in the Eurozone fell to a two year low, whilst data out of Asia was also weaker.

Equity Attribution: +0.4% vs. flat for the Lipper Equity benchmark

World equities were able to eke out modest returns at the broad index level in September with markets in Japan (TOPIX TR Index +5.6%) being at the fore of the leader board. The uncertainty around the political landscape in the country was resolved during the month following the overwhelming victory by the ruling LDP in the presidential elections. This allows the current president, Shinzo Abe to commence his third term in office and he’ll potentially become the country’s longest serving president if he sees his new term out until late 2021. 81% of members in the country’s parliament, the Diet, supported him whilst the number was lower in the regional votes at 55%. As expected there was no change to policy by the Bank of Japan at its mid-month meeting whilst it also re-iterated its forward guidance.

This pushed the Yen notably weaker in September, (-2.4% vs. USD) whilst government bonds lost ground with 10 year JGBs +0.2bps to 0.12%, their highest yield since January 2016. A weaker currency and a modestly steeper yield curve served as decent catalysts behind value-orientated equities, particularly in the large cap space, an area of the market to which the GLG Japan CoreAlpha Fund (+5.3%) remains actively overweight at present.

The price of oil (Brent +6.8% to $82.7p/b) reached its highest level since November 2014 after OPEC and its allies signalled less urgency in boosting supply despite the best efforts of the US President to get them to do so. This comes at a time when the market is readying itself for the loss of Iranian supplies due to US sanctions. This served as a stimulative force across the energy sector (MSCI World Energy +3%) and particularly oil services (VanEck Vectors Oil Services ETF +1.9%) which was further supported by upbeat comments on industry activity from company management teams.

Elsewhere and at the world level attribution was generally quite good with solid returns from the Sector Global Healthcare Value Fund (+1.8%) and the Morgan Stanley Global Income Fund (+1.9%) both aiding broader portfolio performance for stock specific reasons.

September was an interesting month overall and although it may as yet be too early to draw any firm conclusions on the trends which appear to have emerged in markets over the third quarter, there is a clear degree of style rotation being observed at present at least from a performance perspective.

The Growth style was hindered in September, underperforming the Value cohort within almost every region. We believe that higher bond yields (discount rates) served as a key catalyst behind this. With higher interest rates in the US, in addition to the steady unwind of QE in the system, we expect this trend to continue going forward. We do not believe however that investors are positioned for this. For instance in European equities currently and according to data from Goldman Sachs, some 70% of active European equity fund managers are overweight the Technology sector at present. We also observe such crowding in other regions, particularly in the US.

We continue to position the aggregate equity sensitivity within the portfolio away from the more highly rated growth ends of the equity spectrum, where solid valuation grounds are really lacking arguably at this stylistic inflection point in markets.

Fixed Income Attribution: flat vs. –0.1% for Lipper Fixed Income benchmark

Fixed income markets were generally quite weak in September with softness in core rates markets impacting total returns further afield and particularly in longer duration corporate credit. The Citi World Government Bond Index finished -1.0%, whilst the Barclays Global Aggregate Bond Index finished -0.9% lower.

Emerging market debt was able to buck the trend however with hard currency denominated bonds providing better returns (+1.8%) relative to local currency denominated debt (+1.4%), whilst high yield also provided modest returns (+1.4%) with strong gains in energy prices supporting related credit issuers.

The ACPI Balanced Fund’s fixed income exposure was modest in September in an otherwise poor month for the asset class. Good returns from the recently added Vontobel EMD Fund (+2.3%) were supportive and were able to offset some degree of weakness in the fund’s holding in 10 year US Treasuries which detracted –14bps.

Portfolio Changes

Following the recent blow out in EM and Asian-related assets, we have made an initial 3% of NAV allocation into the Vontobel Emerging Market Debt Fund, one of the most accomplished active funds within this space over the last five years. This is an area where we have had limited exposure historically but we believe that current yields on offer provide a compelling entry point into the asset class with a longer term view in mind.

33%

56%

2%

1%

9%

55%

40%

0%

0%

5%

0% 10% 20% 30% 40% 50% 60%

Fixed Income

Equity

Property

Commodities

Cash

Lipper Cautious Index ACPI Balanced Fund

9%

33%

16%

7%

2%

1%

10%

19%

2%

1%

0% 10% 20% 30% 40%

Cash

Fixed Income

Asia equity (ex-Japan)

Japanese equity

UK equity

Europe ex-UKequity

US equity

Global equity

Property

Commodities

Marcus joined ACPI in 2005 initially as a member of the Multi-Manager team researching external hedge fund strategies. Since 2008 he has been additionally responsible for all external long-only manager research and has been the portfolio manager of the ACPI Balanced UCITS Fund since December 2008. Marcus also interacts closely with ACPI’s CIO liaising on all long-only external manager allocations and chairs the quarterly long-only external manager committee. Marcus previously worked at a London-based fund of hedge funds, and before that he was an analyst at Phillips & Drew, UBS Global Asset Management. Marcus began his career in 1999. Marcus holds a BSc. in Banking and Finance from Loughborough University and holds the Securities Institute Certificate in Investment Management (CertIM).

Tessa joined ACPI in 2015 as an Associate with responsibility for analysing long-only and long-short hedge fund strategies. In long only, Tessa has a bias towards covering the UK, Continental Europe and Japan regions. Before joining ACPI, Tessa worked on the research desk at Rathbones where she was responsible for analysing and evaluating long only funds in Europe, the UK and Japan. Tessa graduated from the University of Edinburgh in 2009, with an MA (Hons). She holds the Investment Management Certificate (IMC) and is a CFA Charterholder.

The value of investments and any income derived are subject to market and exchange rate movements and may fall as well as rise. Investors may not get back the full amount invested.

Investing in investment funds is subject to market risks.

Past performance results are no indication of future results, especially performance results referring to a period of less than twelve months (year-to-date-performance, start of investment fund within the last twelve months) are no reliable indicator for future results due to the short comparison period.

Issuance and redemption commissions are not included in the performance figures. All figures and information are given without any warranty and errors are reserved.

The annual management charge for the Fund will be charged to the Fund’s income account. If insufficient income is generated by the Fund to cover the charge, the balance will be deducted from the Fund’s capital and to that extent will constrain capital growth.

IMPORTANT INFORMATION

This document may only be distributed in the countries set out in the Fund prospectus. Please refer to the Prospectus for further details.

The tax treatment of the funds depends on the personal circumstances of each client and can be subject to future changes. This document is for information only. It does not represent an offer for the purchase or sale of the Fund.

This document does not constitute an offer or solicitation to deal, whether directly or indirectly, in any particular fund. Nothing in this document should be taken as an expressed or implied indication, representation, warranty or guarantee of performance whether in respect of income or capital growth. No warranty or representation is given as to the accuracy or completeness of this document and no liability is accepted for any errors or omissions that the document may contain.

The manager of this fund is Link Fund Manager Solutions (Ireland) Limited, Registered address: 2 Grand Canal Square, Dublin 2, Ireland. The Fund is authorised by the Central Bank of Ireland as a UCITS pursuant to the UCITS regulations.

For South African investors:

In the Republic of South Africa this fund is registered with the Financial Sector Conduct Authority and may be distributed to members of the public.

In addition to the other information and warnings in this document, the Financial Sector Conduct Authority of South Africa requires us to tell South African recipients of this document that collective investment schemes are generally medium to long-term investments, collective investment schemes are traded at ruling prices and can engage in borrowing and scrip lending and that a schedule of fees and charges and maximum commissions is available on request from the manager. The manager does not provide any guarantee either with respect to the capital or the return of a portfolio.

Because foreign securities are included in the investments within this collective investment scheme, we are also required to disclose to you the risks that there may be additional risks that arise because of events in different jurisdictions: these may include, but are not limited to potential constraints on liquidity and the repatriation of funds; macroeconomic risks; political risks; foreign exchange risks; tax risks; settlement risks and potential limitations on the availability of market information.

The fund carries no performance fee.

The performance is calculated for the portfolio, individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. The value of participatory interests may go down as well as up.

Issued by ACPI Investments Ltd (Registered in England – Number 03781549 at 37-43 Sackville Street, London, W1S 3EH), which is authorised and regulated by the Financial Conduct Authority (Register Number 192403). Details can be found on the following link www.fca.org.uk/register.

© 2018 All rights reserved. No part of this document may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without the prior written permission of the Firm issuing this document.

Issued September 2018 CSO 04/10/MG