Reports and Financial Statements - ACPI · 2019. 7. 3. · ACPI Select UCITS Funds plc 5 Investment Manager’s report (continued) For the six month financial period ended 30 September

ACPI Select UCITS Funds plc (an umbrella Company with segregated liability between sub-funds)

Interim Report and Condensed Unaudited

Financial Statements

For the six month financial period ended 30 September 2018

ACPI Select UCITS Funds plc

2

Table of contents Page

Company information .......................................................................................................................................................................................... 3

Investment Manager’s report .............................................................................................................................................................................. 4

Statement of financial position .......................................................................................................................................................................... 21

Statement of comprehensive income ................................................................................................................................................................ 23

Statement of changes in net assets attributable to holders of redeemable participating shares ........................................................................ 25

Statement of cash flows .................................................................................................................................................................................... 27

Notes to the financial statements ...................................................................................................................................................................... 29

Schedule of investments ................................................................................................................................................................................... 40

Statement of significant portfolio movements .................................................................................................................................................... 46


3

Company information Directors of the Company

Aaron Dunlop (United Kingdom) David Dillon (Ireland) (Independent) John Fitzpatrick (Ireland) (Independent) All Directors are non-executive

Registered Office1

1st Floor, 2 Grand Canal Square Grand Canal Harbour Dublin 2 D02 A342 Ireland

Manager2 Link Fund Manager Solutions (Ireland) Limited


Investment Manager and Distributor ACPI Investments Limited Pegasus House 37- 43 Sackville Street London W1S 3EH United Kingdom

Administrator and Company Secretary2

Link Fund Administrators (Ireland) Limited


Independent Auditors

Deloitte Ireland LLP Chartered Accountants and Statutory Audit Firm Deloitte & Touche House Earlsfort Terrace Dublin 2 D02 AY28 Ireland

Legal Advisor

Dillon Eustace 33 Sir John Rogerson’s Quay Dublin 2 D02 XK09 Ireland

Depositary

BNY Mellon Trust Company (Ireland) Limited One Dockland Central Guild Street IFSC Dublin 1 D01 E4X0 Ireland

Company Number 540964 (Registered in Ireland)

1Effective 10 September 2018, the registered office address of the Company changed from 2

nd Floor, 2 Grand Canal Square, Grand Canal Harbour, Dublin 2 to 1

st Floor, 2

Grand Canal Square, Grand Canal Harbour, Dublin 2. 2Effective 5 September 2018, the registered office address of both the Manager and the Administrator changed from 2

nd Floor, 2 Grand Canal Square Grand Canal Harbour,

Dublin 2 to 1st Floor, 2 Grand Canal Square, Grand Canal Harbour, Dublin 2.


4

Investment Manager’s report


ACPI Balanced UCITS Fund (the “Fund”)

Long term performance review

April 2018 The Fund (USD I Class) finished +1.3% vs. -0.6% for the Index in April, which brings the Fund’s year to date performance to flat vs. -0.4% for

the Index.

The MSCI AC World TR Index finished the month +0.9% whilst the Barclays Global Aggregate Bond Index finished -1.6%.

In summary it was a good month for the fund, both absolute and relatively speaking. For a while we have felt as though it was only going to

be a matter of time before the pent up case for value-orientated equity disciplines attained broader market attention and that was achieved in

April across a host of regions and sectors which ultimately benefited underlying investments.

Overall however the degree of relative outperformance on the month was really generated from both sides of the book. The equity book and

its strong value-tilt within a number of the book’s regional expressions was particularly accretive, especially from the UK, Japan and at the

sector specific level, most notably energy.

The fixed income portfolio also held up relatively well against a difficult month for the asset class in general.

The equity portfolio generated +1.3% vs. +0.3% for the Lipper Equity Index, whilst the fixed income portfolio detracted -0.2% vs. -0.9% for the

Lipper Fixed Income Index.

Equity Attribution: +1.3% vs. +0.3% for the Lipper Equity benchmark

Broad equity markets remained choppy in April due to a confluence of factors although broad measures eked out modest overall advances.

This comes despite a very strong corporate earnings season and perhaps therefore illustrates the valuation headwind some markets are

clearly running into it. In the US for instance and despite earnings growing at around +20% yoy, the broad S&P 500 Index remains marginally

negative on the year.

The UK was a standout performing equity region in April (MSCI UK All-Share Index +6.8%) for a variety of reasons. Despite the seeming lack

of investor interest in the market at present according to the recent global fund manager survey, interest from corporations is amongst the

highest in the market’s history, reflecting in our view the relatively depressed valuations and plethora of opportunities on offer currently in the

UK. We have seen a wave of M&A activity since the beginning of the year with approximately 15% of the market capitalisation of the all-share

indices in some form of M&A activity. £204bn of transactions have been agreed or completed since the start of 2018, overtaking the peak of

£104bn set in the first four months of 2000.

That wave continued in April and the ACPI Balanced Fund’s holding in the Sanditon UK Equity Fund (+9.3%) was a beneficiary of this with a

number of the fund’s active equity positions and value style tilt prospering (MSCI UK Value Index +8.7% vs. +4.0% MSCI UK Growth Index).

One of the biggest announcements came from supermarket group J Sainsbury Plc (+29.4%) as it confirmed its intention to buy fellow

supermarket company Asda from Walmart Inc. of the US in a £14bn deal.

Markets in Japan were also quite firm in April, overcoming the degree of relative underperformance since the beginning of the year. In a

similar vein to the UK, it was the value orientated ends of the spectrum which outperformed their more growth orientated peers; TOPIX Value

Index +5.2% vs. +2.0% TOPIX Growth Index. Much of this of course was dictated by the move in US interest rates with a pick up in the 10

year treasury acting as a tailwind behind Japanese value stocks. This was a conducive environment for the GLG Japan CoreAlpha Fund

(+6.0%).

At the sector level the +7% gain in the oil price was enough to drive the energy and affiliated sub-sectors higher. The MSCI World Energy

sector finished +9.5% whilst the oil services sector (+13.7%) was also a beneficiary. The ACPI Balanced Fund benefited via its holding in the

Vaneck Vectors Oil Services ETF and its more smaller position in the Energy Select SPDR which finished +9.5%.


5

Investment Manager’s report (continued) For the six month financial period ended 30 September 2018

ACPI Balanced UCITS Fund (continued)

Fixed Income Attribution: -0.2% vs. –0.9% for the Lipper Fixed Income benchmark

Bonds had a generally poor month and were broadly influenced by the back-up in government rates. The US 10 Year Treasury briefly flirted

with 3% which had broader ramifications for corporate credit (US IG -1.6%), although returns in high yield (US HY +0.5%) were relatively

unscathed. The asset class’s shorter duration in addition to gains in oil were both supporting factors.

Emerging market currencies and debt were also notably weaker with the move in the US 10 Year filtering out into the asset class while a

resurgent US Dollar (DXY Index +2.1%) were additional headwinds for the EMD sphere.

At the portfolio level, modest weakness from our holding in 10 Year US Treasuries detracted -12bps with the asset class finishing -1% on a

total return basis overall. This was partially offset via the fund’s holding in the Amundi Bond Global Aggregate Fund (+0.2%) and the Kames

Short Dated High Yield Bond Fund (+0.5%).

May 2018 The Fund (USD I Class) finished -0.3% vs. -1.0% for the Index in May, which brings the Fund’s year to date performance to -0.3% vs. -1.3%

for the Index. In what was another testing month for financial markets for a variety of reasons, relative outperformance came from both sides

of the portfolio, although this was skewed to a greater extent by the relative contribution from the fixed income portfolio. Equities added +0.1%

vs. flat for the Index, whilst the fixed income portfolio was flat vs. -1.0% for the Index.

Equity Attribution: +0.1% vs. Flat for the Lipper Equity benchmark

World equities struggled to gain ground over May although despite the macro related news flow, the asset class held up well relative to bonds

overall. US equity markets were once again the saviour (S&P 500 TR Index +2.4%), helping to offset modest drawdowns from other major

equity regions with Japan (-1.7%), Europe (-0.9%) and Asia ex-Japan (-0.8%) all finishing lower in local currency terms.

Emerging market equities (-3.5%) were impacted by idiosyncratic issues surrounding Turkey and Argentina and broader currency weakness

versus a stronger US Dollar and a pickup in related bond yields. The outlier however proved to be China with the A Share Index finishing

+1.5%. Robust economic data has been one supporting factor but news that the country's weighting within MSCI indices is to increase going

forward has also been a supporting factor.

From a sector level perspective the market continued to be dominated by growth-orientated style disciplines despite the general pick-up in

bond yields/discount rates with the MSCI World Growth Index +2.6% vs. -1.3% MSCI World Value Index to leave the two disciplines +5.2%

vs. -2.2% on a year-to-date basis respectively. The continued dominance of the Technology sector (+6.4% in May, +12.0% YTD) and the

weighting it commands in broad equity indices remains the key driver to this relative performance dispersion. Elsewhere, the bond sensitive

sectors such as the Telecoms (-5.6%), Utility (-2.1%) and Consumer Staples (- 1.3%) sectors all finished in the red whilst the Energy sector

(+1.9%) was buoyed by a firmer oil price.

At the broader portfolio level, May was a mixed month with strong alpha generation coming from our Asia (ex-Japan) managers, whilst

outperformance from our Western-focused active managers was a little more challenging in relative terms. 8 out of 13 of the fund's active

equity managers outperformed their respective benchmarks in May but with headline equity indices eking out a modest +0.1% return, the

overall attribution to the fund’s relative returns was quite small.

The economic and MSCI news flow out of China provided a good backdrop for the ACPI Balanced Fund's holding in the First State China A-

Shares Fund which finished +6.0% in May, whilst at the world level the Sector HealthCare Value Fund (+1.7%) had a relatively good month

with an active position in H. Lundbeck A/S (+25.1%) being buoyed by strong Q1 earnings numbers which was a common theme across a

number of the portfolio’s broader holdings.

The primary detractor in May came from the GLG Japan CoreAlpha Fund which finished -4.7% as trade war fears impacted the large cap,

export-orientated segments of the market, an area to which the fund remains overweight. At this stage we believe markets are over reacting

to the threat posed here, whilst the undervaluing valuation of the portfolio at 0.8x book value provides a considerable margin of safety even in

the event that those trade war fears are realised. We are however not dogmatic around this holding and stand to reappraise the position in

the event that the facts change in the medium term.

Fixed Income Attribution: Flat vs. –1.0% for the Lipper Fixed Income benchmark

Fixed income markets continued their poor start to the year in May with broad indices losing anywhere between -0.8% to -1.5%.

Credit held up relatively well particularly US investment grade (+0.5%), whilst shorter duration credit, most notably high yield (flat) was also

able to offset the wider decline in bonds generally.

The ACPI Balanced Fund's ongoing underweight bias towards the asset class in general preserved capital in a relative sense whilst the

Amundi Bond Global Aggregate Fund (+0.2%) offset weakness from the Western Asset Macro Opportunities Fund (-2.6%) which was

impacted by softer FX rates in emerging markets.


6



June 2018 The Fund (USD I Class) finished -0.9% vs. -0.7% for the Index in June, which brings the Fund’s year to date performance to -1.2% vs. -2.0%

for the Index.

In concluding the second calendar quarter, overall the fund was able to preserve capital against a somewhat challenging backdrop with the

USD Institutional class (net of fees) outperforming its core benchmark by +2.2%, finishing the period +0.1% vs. -2.1% for the Lipper Cautious

Index.

Equity Attribution: -0.8% vs. –0.3% for the Lipper Equity benchmark

World equities struggled to gain momentum in June as fears over an escalating global trade war weighed on broader indices during the

second half of the month. This pushed a handful of regional bourses into firm correction and/or bear market territory although such

occurrences have been heavily skewed towards emerging and Asia-related markets for the time being.

Price dispersion between regions was quite similar to the previous month with the US (+0.6%) being the relative saviour against a challenging

month for markets elsewhere in local currency terms; UK (-0.2%), Europe (-0.6%), Japan (- 0.8%) and EM (-4.2%).

At the world sector level headline performances were broadly negative and anything with a hint of cyclicality was punished. The all-

weathering US Technology sector (+1.0%) continued to buck the trend however, once again proving both offensive and defensive style

attributes. Despite the surge in crude oil prices, the Energy sector couldn’t catch a bid, closing -1.4%. This brings the sector’s rolling one year

performance to +17%, a stark contrast to the +51% return in the price of oil. The energy complex remained eventful over the month following

a meeting between the members of OPEC and an announcement by the US administration asking its allies to end all imports of Iranian crude

oil by the 4th of November. There will also be no waivers granted by the US. This news alone was enough to overshadow news out of the

OPEC meeting that production would be increased by a nominal 1mln bpd primarily led by Saudi Arabia and Russia in order to offset

production falls elsewhere, most notably Venezuela and the pending fall in production from Iran. On some measures, the net production

increase is expected to add just over 270k bpd and comes up against the US shale industry which is now experiencing bottle necks in

pipeline capacity. Despite the best efforts of the Trump administrator to drive the price of oil down, overall this had the opposite effect. This

failed to lift sentiment within affiliated markets such as the Oil Services sector, with the VanEck Vectors Oil Services ETF finishing -3.2%.

The portfolio’s exposure to Asian equities was particularly weak, impacted by the above macro-related concerns and China particularly. The

Chinese government is currently aiming to rectify imbalances which have been built over recent years whilst grappling with the increasingly

heated trade war prospects also. Chinese equity markets however are renowned for their skittishness which is often driven by the fact that

over ninety percent of the market capitalisation of the A share market is owned by retail investors who often move en masse and are known

for their flippant behaviour. Price action has also potentially been exacerbated by the fact that equities are commonly used as collateral by

investors when securing other finance related assets. In an economy which is trying to de-lever and is indeed slowing, the collateral unwind is

adding to this steady rate of decline. Chinese equities never went into this recent sell-off egregiously overvalued, indeed the Shanghai A

Shares Index is today on a forward price/book multiple of 1.4x book value. Eventually equities will find a floor but for now the hysteria and the

composition of ownership within Chinese A shares are overshadowing fundamental aspects.

The Asian equity exposure in the Balanced Fund detracted –93bps from overall NAV. Elsewhere within the portfolio the more defensive value

skew was able to offset overall portfolio weakness to some extent although not completely. Solid performance from the Sector Value Health

Care Fund (+1.5%) and the Morgan Stanley Global Brands Income Fund (+3.6%) were accretive.

Fixed Income Attribution: Flat vs. –1.0% for the Lipper Fixed Income benchmark

Fixed income markets were again weak during June with the prospects of tighter monetary policy impacting the asset class.

Credit spreads in the developed world have been relatively stable with overall modest declines reflecting the move in rates as opposed to

anything more sinister.

The same can't be said for the emerging market bond space however with EMD - 1.2% on the month with softness in related currencies also

detracting from total returns. This leaves the EM-related bond indices down anywhere from -5% to - 6% on a year-to-date basis. This has

helped push spreads on a yield-to-worst basis back up to around 6.4%, at least on the Bloomberg EM Sovereign Bond Index in USD, a

similar level to where yields peaked during the crisis of late 2015 to early 2016. So far the dislocation in EM has been centred on the more

vulnerable issuers which may either be heavily dependent on USD funding or which boast vulnerable single and/or twin deficits, although this

is gradually spreading to better quality issuers.

July 2018

The Fund (USD I Class) finished +1.0% vs. +1.2% for the Index in July, which leaves the Fund -0.3% vs. –0.8% for the Index on a year-to-

date basis, net of all fees.

The modest degree of underperformance this month came from the fixed income book was actually just behind of benchmark (+0.1% vs

+0.2%), whilst the equity book was +1.1% vs. +1.0% for the index. Property attribution was -6 basis points.

Equity Attribution: +1.1% vs. +1.0% for the Lipper Equity benchmark


7



World equities have been broadly positive in July in spite of the geo-political events discussed above. The MSCI AC World TR Index finished

up +3.0% in July, led by Europe (+4.1%) and the US where the S&P 500 Index is up +3.7% for the month. Emerging Markets (+2.2%) are

also displaying some strength.

Chinese equities made a good recovery from their early dip to finish up +1.0% for the month. In Japan too, equity markets finished in positive

territory (+1.3%), both buoyed by a slight, albeit perhaps temporary, easing of trade tensions in the second half of the month.

Technology names led the way up for the majority of July, as they have done through most of 2018. Into the last week of July the Nasdaq

Index continued to reach new highs. This reversed quite sharply however at the very end of the month when Facebook’s disappointing

revenue outlook caused the stock to plunge almost 20%, making it the biggest ever decline of a publicly listed US company. This is turn

dragged the Nasdaq Index down with US equities following. The sector still ended the month up +2.0%. Outside of some of the

aforementioned technology names it was actually a strong start to the earnings season both for the US and in Europe and the S&P 500 Index

actually had its best month since January.

Elsewhere at the sector level, headline performances were all positive with Healthcare (+6.2%) and Industrials (+4.7%) leading the way, the

latter buoyed by the apparent easing of trade tensions. Rising bond yields also helped push up the Financials sector, to finish +4.4%. With

such strong performance from the healthcare sector it is no surprise that the best performance this month came via the Sector Healthcare

Fund which added +30bps in July. Vulcan Value Fund (+20bps) was another strong contributor.

It was a volatile month for the China A Share market and, as such, the First State China A Share Fund fell -1.8% in July, although this

represent somewhat of a recovery from a 4% decline at the mid-month point. Overall though this positon ended up costing -8bps of

performance.

Having to a greater extent led the market down in the first half of the month, the fund’s Japanese exposure actually proved to be additive in

July as we witnessed a strong recovery in the GLG Japan Core Alpha Fund which rose +4.2% in July, adding 10 basis points to final

performance.

At the portfolio level, July was mixed at the underlying manager level with 6 out of the Fund’s 13 active managers outperform ing their

respective benchmarks.

Fixed Income Attribution: +0.1 vs. +0.2% for the Lipper Fixed Income benchmark

Fixed income markets were mixed in July. It was a strong month for the Emerging Market bond space with the broad JP Morgan EMB Index

up +2.1% in July. In the US, High Yield was up +1.2% and US Investment Grade also finished up +1.2% in July.

Positive attribution was added by the Balanced Fund’s holdings in the Kames Short Dated High Yield Fund (+4bps) and the Rubrics Global

Credit Fund (+2bps). Strong performance from a number of our credit names was negated by negative attribution from our quite sizeable

position in the US 10 Year as yield rose in the month.

August 2018

The Fund (USD I Class) finished -0.5% vs. –0.1% for the Index in August, which leaves the Fund -0.8% vs. –0.9% for the Index on a year-to-

date basis, net of all fees.

Equity Attribution: -0.33% vs. +0.15% for the Lipper Equity benchmark

World equities were able to recover from their intra-month (-2.1%) decline to finish +0.8% with gains being driven by strong showings from the

Technology (+6.6%), Consumer Discretionary (+2.6%) and Health Care (+2.9%) sectors.

August was a mixed month at the underlying portfolio level with the Balanced Fund’s active overweight equity stance detracting the most from

relative returns. 9 out of the Fund’s 14 active equity managers finished ahead of relative benchmarks. On the back of the declines seen

across Asia, the main detractors are, not too surprisingly, from this region with the First State China A Shares Fund finishing the month -8.9%

and the Pinebridge Asia Small Cap Equity Fund -1.4%.

The Energy sector also witnessed significant intra-month declines although it recovered also during the second half of the month to finish -

3.4%. A rebound in the price of oil (+3.2%) failed to ripple into investors’ appetite for the sector. The VanEck Vectors Oil services ETF (-4.9%)

is now back to the lows experienced barely 4 months ago despite Oil being up +10% since then.

Overall, and despite the modest declines for August, we still have a high degree of conviction in the overall equity allocation. Valuations are

broadly undemanding, equity risk premiums (ex-US) are still very elevated (>7% in most regions) and at this stage the pullback is more

macro-related as opposed to any visible deterioration in underlying corporate fundamentals, in our view.

Take for instance Asia; the portfolio of the Hermes Asia ex-Japan Fund is now back to being valued on a current year’s P/E of 10.8x and

barely above 1.1x book value, despite the portfolio being in a net cash position from a balance sheet perspective. These are similar valuation

multiples experienced during the trough of early 2016 before the fund went on to deliver a +91% return over the proceeding 2 years, such was

the rebound in corporate earnings growth in the fund’s underlying holdings. A valuation re-rating or multiple expansion didn’t really feature

over this period which in our view limits the downside across the region’s equity market this time around.

Fixed Income Attribution: +0.02% vs. –0.30% for Lipper Fixed Income benchmark


8



Fixed income markets were also weak in August with the higher beta areas of Europe and Emerging Markets (EMD -1.9%) being particularly

soft.

Within the portfolio, modest appreciation in the Fund’s 10 Year US Treasury position helped to offset weakness from the Western Asset

Macro Opportunities Fund (-3.5%) which was impacted by its exposure to selected EM-related currencies and credit.

September 2018

The Fund (USD I Class) finished +0.3% vs. -0.1% for the Lipper Cautious Index to leave the Fund -0.4% vs. -1.0% on a year to date basis.

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

In April we sold the Veritas Global Equity Income Fund from the portfolio in April, largely as a result of being able to find more attractive equity

income alternatives elsewhere. The fund’s recent allocation to the Jupiter Asian Income Fund is reflective of this view.

We also made an initial allocation to the First State China A-Shares Fund in April as we look to broaden the portfolio’s current exposure to the

Asia region and thus complementing our current array of active equity specialists.


9



Despite a lot of well flagged and legitimate worries surrounding the continued emergence and growth of China, nobody can deny the sheer

scale of the China A-share market in both absolute and relative terms and the lack of representation the market currently has within broader

market considerations.

The China A-Share market today comprises of around 3,362 listed companies in comparison to 1,012 H share (offshore) listed companies

listed in Hong Kong. From a value perspective, the A share market dwarfs the H share market with a total market capitalisation of $8.8 trillion

vs. $3.7trillion, of which just over 50% of this value is free float. This is an immense market by size, and broadly represents the equivalent of

78% of China’s GDP.

Furthermore, they provide very deep, diverse and an increasingly liquid investable universe from which an active manager can exploit

fundamental inefficiencies and we would argue that those inefficiencies are great today due to the lack of institutional, longer term capital

which is being deployed within the China A-Share market.

In May we moderately reduced the Hermes Asia ex-Japan Fund in May thereby reducing some of the higher beta sensitivity from the equity

allocation in Asia.

The Stewart Worldwide Fund has also been fully redeemed for reasons outlined last quarter as we seek to reposition the global equity

exposure going forward.

We also increased the portfolio’s position in the First State China A-Shares Fund for reasons outlined above.

In July, we reduced our exposure to the Vulcan Value Equity Fund by around a quarter, bringing exposure in the Fund down to around 6%.

This is part of a rebalancing of the Fund’s US exposure, taking a more defensive stance alongside the recent further addition of the US

Consumer Staples ETF last month. We also increased our exposure to the First State China A Shares Fund in July, thereby taking advantage

of the recent weakness in Chinese equities.

In August, we 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.

In addition, we made an initial 3% of NAV allocation into the Eastspring Asian High Yield Bond Fund with a similar thesis to that laid out

above. In summary, we are being paid a ~7% yield from the fund’s underlying portfolio which is quite elevated at this stage o f the cycle. In a

similar vein to our recent decision to add an EMD-related bond specialist, this is as extreme as one was attaining during the mini crisis of late

2015/2016. Again today’s environment is different to late 2015/early 2016 when Asia and EM were in recessions.

In September, we redeemed from the JOHCM Continental European Fund during the month as we look to restructure this side of the portfolio. We intend to make a new allocation towards this region over the coming weeks.

Fund positioning (as at 30.09.2018)

33%

56%

2%

1%

9%

55%

40%

0%

0%

5%

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

Fixed Income

Equity

Property

Commodities

Cash

Asset Allocation

Lipper Cautious Index ACPI Balanced Fund


10



Fund positioning (as at 30.09.2018) (continued)

ACPI Investments Ltd. October 2018

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-UK equity

US equity

Global equity

Property

Commodities

Risk Allocation

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec

-08

Ap

r-09

Au

g-0

9

Dec

-09

Ap

r-10

Au

g-1

0

Dec

-10

Ap

r-11

Au

g-1

1

Dec

-11

Ap

r-12

Au

g-1

2

Dec

-12

Ap

r-13

Au

g-1

3

Dec

-13

Ap

r-14

Au

g-1

4

Dec

-14

Ap

r-15

Au

g-1

5

Dec

-15

Ap

r-16

Au

g-1

6

Dec

-16

Ap

r-17

Au

g-1

7

Dec

-17

Ap

r-18

Au

g-1

8

Cash

Commodities

Property

Equities

Fixed Income


11


ACPI Horizon UCITS Fund (the “Fund”) Fund Performance The performance of the six live share classes over the period from 1st April 2018 – 28th September 2018 is shown below.

30-Sep-18 NAV FY H1-2018 2018 YTD 2017 2016 2015

ACPI Horizon UCITS Fund USD** $14.41 2.19% 1.67% 7.42% 2.37% -5.84%

ACPI Horizon UCITS Fund Insti EUR** € 10.56 1.21% 0.21% 5.41% 1.50% -1.55%

ACPI Horizon UCITS Fund Insti GBP** £10.83 1.53% 0.74% 5.96% 1.96% -0.48%

ACPI Horizon UCITS Fund Retail EUR** € 10.76 0.86% -0.33% 4.75% 3.07% -

ACPI Horizon UCITS Fund Insti+ USD** $10.45 2.45% 2.19% 2.24% - -

ACPI Horizon UCITS Fund Insti USD** $10.02 2.55% 0.17%

**Please note the following share class inception dates:

Share Class ISIN Inception Date

USD (Restricted) IE00BKXGWD15 01 June 2015

GBP (Institutional) IE00BYQNYX13 22 October 2015

EUR (Institutional) IE00BYQNYL90 23 October 2015

EUR (Retail) IE00BYQNY641 22 March 2016

USD (Institutional+) IE00BYX19M21 26 May 2017

USD (Institutional) IE00BYQNY534 19 January 2018

The performance of relevant global indices over the same period is displayed below:

Index FY H1-2018

2018 YTD 2017 2016 2015

Global Equities - MSCI World USD Hedged (WHANWIHD) 9.44% 7.25% 19.13% 9.39% 2.01%

IG Fixed Income - Citi WorldBIG USD Hedged (SBAHC) -0.01% -0.13% 2.91% 3.88% 0.94%

Global Hedge Funds (HFRXGL) -0.22% -1.23% 2.99% 2.50% -3.64%

The since-inception of the USD restricted share class is +5.27% as at 28-Sep-2018 as displayed below:

85.0

90.0

95.0

100.0

105.0

110.0

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

Ind

exed

per

form

ance

Mo

nth

ly p

erfo

rman

ce

USD Fund Fund (indexed)


12


ACPI Horizon UCITS Fund (continued)

Portfolio & Performance Commentary Please note that any of the following references to specific absolute performance and contribution numbers are in relation to the USD (restricted) share class.

Over the period from 1st April 2018 – 28th September 2018 the fund returned +2.19% (USD share class).

The average asset class weightings and their respective performance contribution for the period under review are displayed in the charts below.

Allocation and contribution data displayed for the fund’s USD share class.

The fund’s developed equity book contributed +414bps over the 6 month period, driven by strong performance from our holdings in HBM Healthcare, Vulcan Equity Fund, SAP, Microsoft and our exposure to oil and gas – a full breakdown of the monthly performance and contributors/detractors is given below.

April 2018 The fund gained 1.7% in April, a strong relative result for a month in which the MSCI World index ($ hedged) was up 1.8%, the HFRX hedge fund index gained only 0.1% and bond markets lost 0.4%.

The fund‘s positioning continued to be defensive as bond markets were volatile and benchmark yields pushed higher, threatening to cause tremors in equity markets. April was a month that was dominated by moves in bonds and currencies rather than equities. The former continue to drive the latter to a large extent and this appears unlikely to change anytime soon.

The fund‘s equity allocation of around 43% contributed far more than its fair share in April, attributing 1.93% to overall performance.

The oil service and major oil companies ETFs attributed 53bps on the back of oil prices rising a further 5.6% in April. Adler Real Estate added 28bps following a strong set of numbers and a successful closure of the Brack Capital deal. The fund‘s investment in HBM Heal thcare continued to do well, adding 25bps while the exposure to Japan contributed 24bps. There were only very few losers in April, the largest of which was Metro that detracted 25bps following a profit warning.

The credit book‘s performance was flat for the month while the exposure to US Treasuries detracted 32bps, largely because of the negative performance of the longer-dated exposure (10 and 30 year). The position in the US 10-year was subsequently closed out.

The long exposure to USD contributed 12bp – the fund was 104.4% long USD versus 3.7% short in EUR and 1.7% in GBP.

0.0%10.0%20.0%30.0%40.0%50.0%

Average Weight

-2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

Developed credit

Government bonds

Emerging credit

Developed equity

Alternatives

Emerging Equity

Cash/FX

Performance Contribution

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Apr May Jun Jul Aug Sep

Asset Class Evolution

Cash/FXEmerging EquityAlternativesDeveloped equityEmerging creditGovernment bonds


13



May 2018 The fund gained 0.4% in May, driven exclusively by the equity allocation.

Although May was a volatile month, it was, on balance, positive for risk assets. Fixed income and alternatives detracted slightly while the fund‘s long dollar position against EUR and GBP added 15bps.

The fund‘s 3.5% holding in HBM Healthcare registered another strong monthly performance, adding 22bps. A tender offer by Eli Lilly for portfolio company ARMO BioSciences lifted the closed end fund‘s NAV and share price. A dividend increase and the generally strong outlook for the portfolio helped HBM‘s performance which is up 25% year-to-date.

Facebook was the second-largest contributor, adding 10bps as the stock bounced back from its privacy concerns and investors re-focused on the fundamental value of the stock.

Recently added German healthcare company Fresenius gained 5% last month after strong Q1 results.

Japanese markets traded weaker in May and, as a result, GLG Japan was the fund‘s worst performer, losing 4.5% and detracting 20bps from performance.

Impacted by political turmoil in Italy, Telecom Italia lost 16% in May, detracting 17bps. During the month, the fund traded Italian short-term government bonds, benefitting from substantially higher volatility across domestic asset markets. Short-term Italian yields exceeded those of Greece, reflecting the market‘s concerns about the political agenda of the newly-formed Lega/M5S coalition in the country.

June 2018 The fund lost 0.5% in June on the back of a correction in global equity markets that was primarily driven by concerns about the effects of a trade war.

The fund‘s equity book detracted 47bps in June with defensive names performing well and preserving overall performance.

Thus, the US staples ETF contributed 10bps, while Fresenius, SAP and British American Tobacco (BATS) added 9bps, 4bps and 2bps, respectively. Fresenius was helped by its capital markets day and positive newsflow around the pricing of biosimilars. BATS received sell-side upgrades based on its low valuation and an encouraging trading update.

Oracle detracted 11bps, following the release of its Q4 numbers that showed a reduced visibility into the cloud business. The stock was also downgraded by a major broker.

Cruise operator Carnival lost 8% in June and 12bps for the fund after the company reduced guidance because of higher oil prices and the FX impact.

HBM Healthcare detracted 20bps following strong past performance and a dividend payment.

Following the surprise election outcome in Italy, the fund purchased a position in Italian government bonds that was sold at a profit shortly thereafter. As a result, the fund gained 3bps.

The fixed income book detracted 10bps in total with extremely narrow trading ranges throughout the month (the best performing bond added 1bps and worst performer detracted 2bps).

July 2018 The fund gained 0.8% in July driven entirely by the strong performance of equity markets that recovered from a five-month sideways move. Thus, the equity book contributed 108bps while fixed income detracted 24bps and alternatives accounted for the balance.

The fund‘s third-largest position, GLG Japan, contributed 18bps to performance, driven by a 2.8% gain in the fund, outperforming local markets. Gains in Japan were broadbased as the BoJ considered tapering its asset-purchase programme.

The fund‘s healthcare exposure continued to do well, adding another 26bps with 15bps coming from HBM Healthcare and 9bps from Sector Healthcare.

The fund‘s large allocation to technology added value in July, +16bps, net of a 12bps detraction from Facebook. The stock los t 11% last month on the back of somewhat weaker earnings numbers and concerns about the growth and profit outlook. Facebook lost 19% on the day of the announcement.

Bonds lost slightly in July driven by goldilocks macroeconomic figures coming out of the US, suggesting strong GDP and income growth. As a result, 10-year yields bounced back towards 3% although the yield curve continued to flatten, reaching a cycle low of 24bps in mid July for the 10-2 year spread. In contrast to equity markets, bond investors were not fully buying into the bullish outlook for the US.

August 2018 The fund lost 0.49% in August amidst a very wide dispersion of returns across different markets and asset classes. As a result, credit detracted 42bps whilst rates lost 40bps for the fund. Equities did better, adding 41bps to performance.

German retail stock Metro gained 27% in August after having incurred losses for several months in a row. Ceconomy, which holds 10% of the company and was part of the combined business in the past, said that it is looking to sell its stake to EP Investment, the holding company for Czech billionaire Daniel Kretinsky. As a result of this development and the subsequent spike in the share price, the fund sold its holding in the stock.

Real estate company Adler benefitted from a broker upgrade following an improvement across most of its financial metrics. The stock jumped, adding 18bps last month.

Technology exposure continued to do well as US stock markets and especially growth-oriented names performed strongly in August. Thus, the fund‘s tech holdings added 17bps in aggregate.


14



The largest detractor last month was a new speculative position in short-term Argentinian Treasury bills. The fund purchased a first position in these bonds with the view that short-term interest rates in Argentina were expected to fall towards the end of this year and that the peso should recover once the market realised that the country‘s economic situation was not as bad as portrayed by financial markets. However, the difficulties many emerging markets were having in arresting the slides of their respective currencies on the back of idiosyncratic issues continued to weigh on the trade. With a yield in excess of 40%, the carry was very attractive and appreciation potential for the peso substantial.

September 2018 The fund gained 0.36% in September with equity markets slightly up for the month and bond market indices down.

Equities contributed 73bps while fixed income detracted 32bps. Generally, emerging market exposure slightly detracted from overall performance but as markets appeared to be building a bottom, at least temporarily, the fund added more exposure to this asset class during the month. Within equities, three positions generated almost all the performance for this asset class (HBM, GLG Japan and Oracle). Swiss closed-end healthcare fund HBM Healthcare added 40bps to performance as another one of its portfolio companies went public during the month. The newly-listed stock, Y-MABS Therapeutics, a clinical-stage biopharmaceutical company, gained almost 70% since the day of the listing until the end of September. HBM is amongst the largest shareholders of the company with a 7.3% stake. At its core, the investment thesis for HBM has always been the expectation that the 25% that is held in private equity but was effectively valued at zero by the market when the fund initiated its position is likely to be worth substantially more. Over the years, HBM has proven that the management is able to generate significant value from its private investments and the market should possibly pay a premium for this skillset.

As a result of several recent successful IPOs out of the company‘s portfolio, the discount to NAV shrank from more than 30% in 2015 to less than 5% at present. It is the fund‘s expectation that this discount should eventually turn into a premium. This would lead to shareholders benefitting from further likely positive NAV performance in addition to this re-rating or rather re-appreciation of the underlying investment portfolio.

Current Portfolio Positioning The data below are presented as at 28-Sep-2018

Market Summary

April 2018 After two deeply negative months, markets recovered in April, driven primarily by equities. This move was partly a technical bounce out of oversold territory and partly driven by a strong earnings season. Thus, for the S&P500 in the first quarter, earnings per share grew by over 23% whilst revenues increased by almost 9% so far. Especially bottom-line growth was surprising on the upside, exhibiting the highest surprise percentage in many quarters. Interestingly, although headline index performance recovered, many of the stocks that reported stronger-than-anticipated earnings did not perform as well as they should. There was a clear tendency for these names to consolidate rather than rally further.

The most important moves in April, however, took place in currencies and rates. Thus, the dollar finally managed to stage a rally from its oversold levels driven by rising yields. As a result, the DXY dollar index gained more than 2%, while the Euro fell 2%, the Swiss Franc 3.7% and the Yen 2.8%. Emerging market currencies and equities suffered as a result. The Brazilian Real lost 5.7% and the MSCI emerging market equity index lost 0.6% in April.

US 10-year yields tested, and failed, the critical 3% level which caused equities temporarily to sell off. Nevertheless, global fixed income lost 1.5% and World government bond indices shed 1.9% last month.

Equities 44.8%

Fixed Income 37.0%

Liquidity 15.6%

Alternatives 2.6%

Asset Allocation

72.5%

97.5%

15.8%

-0.1%

5.7%

-0.2%

4.0% 0.7% 1.1% 1.1% 0.9% 0.9%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Natural Exposure Hedged Exposure

Currency Allocation

USD EUR GBP CHF ARS HKD

43.9%

15.6%

6.4% 6.2% 5.7% 4.5% 4.0% 3.8% 2.3% 2.0% 1.9% 1.1% 1.0% 0.8% 0.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

% o

f To

tal N

AV

Portfolio Country Allocation Cash

Fixed Income

Equities & Alternatives

21.4% 19.4%

15.6%

11.5% 8.7% 7.8%

4.8% 3.9% 2.9% 1.8% 1.5% 0.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

% o

f To

tal N

AV

Portfolio Sector Allocation Cash

Fixed Income


15



May 2018 World equity markets recovered in May with the MSCI World index gaining 0.3% and reduced its loss for the year to 0.5%. The US S&P500 index also gained, up 2.2% for May, and climbed into positive territory for the year at +1.2%. However, underneath this seemingly positive picture were several areas of substantial concern and market dislocation.

Firstly, the eurozone came under pressure again following the Italian elections and the difficulties arising from forming a new and stable government. Secondly, emerging market assets suffered from capital outflows, dollar strength and homemade problems such as in Turkey and Latin America, where currencies declined strongly against the dollar. The risk of a full-blown crisis in several of these markets could be totally dismissed at this point. Interestingly, none of these problems appeared to have a significant impact on the US stock market although one could have argued that US equities and the dollar were serving as a safe haven very much in the same way they did during the last eurozone crisis or previous episodes of volatility in emerging markets.

June 2018 Equity markets corrected in June, largely because of escalating rhetoric around the trade war the US was inflicting on various counterparties.

As a result, US equities moved sideways in June whilst European and emerging markets suffered losses. The Euro Stoxx 600 lost 0.8% last month and was down 2.4% for the year whilst the MSCI emerging markets equity index lost 4.6% in June, deepening its losses for the year to 7.7%. Emerging market performance in local currency was slightly better at -2.9% in June and -3.9% ytd.

Regional performance varied strongly with Asia ex Japan, Latin America and China suffering the worst drawdowns at -5.2%, -3.3% and -8%, respectively, whilst markets such as Russia and India traded sideways and remained largely unaffected. Shanghai was the worst-performing of the major international markets, down 13.9% for the year as investors grew increasingly nervous about a potential escalation in the trade conflict. Overall, the technical picture in many emerging markets looked very weak across all asset classes. As a result, the combination of weak equity, currency and fixed income markets looked likely to open up several attractive trading opportunities in the subsequent weeks and months.

July 2018 Equities rebounded strongly in July, driven by US stocks as the S&P500 gained 3.6%, outperforming most other regions. A major driver for the move were strong macroeconomic reports, such as Q2 GDP that rose 4.1% qoq compared to +2.2% for the prior quarter. Nominal GDP growth came in at 7.4%, the highest reading since 2006 and driven by the tax reform and strong job markets. Consumption growth was strong at +4% qoq and personal disposable income growth revised higher for the previous two years to 2.4% from 1.5% which boosts the savings rate to 6.8% in Q2, much higher than previously assumed. June payrolls came in slightly higher than forecast (213k v 195k) and average hourly earnings growth was broadly in line with expectations.

The bullish sentiment for US risk assets was slightly dented by the ongoing trade war rhetoric whereby the US imposed 25% tariffs on USD34bn worth of Chinese goods which was countered immediately by China. For the time being, this seems to be primarily a problem for Chinese and Asian equity markets that have been underperforming for some time now being worried about the growth outlook for the region. Slowing Chinese export growth to the US was evidence of a more difficult environment for the region.

August 2018 Although volumes were relatively low in August, consistent with the typical summer seasonality, performance dispersion across different markets and asset classes was very high. Thus, US equities continued to be the standout performer, rising 3% in August, whilst the Euro Stoxx50 lost 3.8% and World equities in aggregate gained 1% last month.

Developments across many emerging markets were the main source of volatility and reason for concern amongst investors. Interestingly, although currencies had been trading substantially weaker in most of these countries, the individual reasons for this weakness were very different. Brazil was eagerly awaiting general elections in October, with imprisoned former leader Lula being the current frontrunner, provided he would be allowed to run. Argentina is suffering from a crisis of confidence and a bad harvest that is putting the currency under pressure, which led to the largest IMF bailout in history at USD50bn. Turkey was only weeks away from imposing capital controls amidst a collapsing currency and inflation approaching 30%. Coupled with the difficult attitude of President Erdogan towards financial markets makes for a difficult situation in a country that is exposed to more than USD400bn of hard currency debt. And whilst all eyes were on emerging markets, Europe had problems of its own with Italian markets losing 9% in August, looking forward to the first budget proposal of the new government in October.

September 2018 Broad performance dispersion across asset classes continued in September with the MSCI World index up 0.4% and the Citigroup WorldBig fixed income index down 0.8%. Like in previous months, the devil was in the detail as US stocks gained 0.4% and emerging markets lost 0.8%. Most notably, Japan proved to be a major winner as the Nikkei 225 gained 5.5% on the back of stronger macro-economic figures. Thus, GDP growth came in better than expected at an annualised 3% and capex as well as machine orders accelerated substantial ly. This underlines the fund‘s view that continued growth in the country lead to a further decline in unemployment which, at 2.3% is at the lowest point since the early 1990s. Demand for labour is, therefore, leading to a continued rise in the labour participation rate that is now at a ten-year high at over 61%. The only reason that wage inflation is not accelerating is that female labour participation is rising even faster. Economic growth and inflation picked up from low levels in combination with an equity market that is arguably amongst the cheapest in the Wor ld and a currency that is probably the most undervalued developed market currency could lead to very attractive return potential for Japan going forward. Emerging markets consolidated last month with several currencies recovering from their record lows, driven by the view that the fundamental situation in those countries might not be as bad as currently reflected in financial markets.


16



Outlook Highly indebted major World economies are characterised by steady GDP growth, low inflation and re-synchronising growth patterns, whilst the lack of fiscal stimulus puts the burden on central banks, which will keep interest rates relatively low for a long time to come. Valuations are high but US equities benefit from improving growth. Rising wages and a stronger dollar could provide EPS headwinds. Positive sentiment was the missing ingredient to push stocks closer to the tops in this cycle. Earnings growth continues to be robust and the economic backdrop of the eurozone is strong. Interest rates will stay low for the foreseeable future, while macro risks include a looming trade war. Japanese equity markets are still amongst the cheapest globally and for as long as yields remain anchored, the market remains attractive, although currency volatility induces substantial equity volatility in the country. In the medium term, yields can rise further as expectations for growth and inflation improve. As yields rise, US Treasuries are becoming more suitable as a hedging instrument again whilst providing some income.

ACPI Investment Managers Limited September 2018


17


Q-ACPI India Equity UCITS Fund (the “Fund”)

Long term performance review

April 2018

The S&P BSE-200 Index ended the month to 30th April 2018 at 4,723.51, providing a total return of +6.6% in INR and +4.1% in USD. The fund generated a +2.4% return (in USD) for April. The S&P BSE Midcap Index gained +4.2% (in USD) and the S&P BSE Small Cap Index gained +5.9% (in USD). The INR depreciated by 2.3% against the USD during the month. Foreign Institutional Investor (FII) flows exert a significant influence upon the price of Indian equities. FIIs were net buyers for only 4 of the 21 trading days in April - with aggregate net sales of US$846m during the month. Domestic investors bought US$1.7 billion of Indian equities during the month - but despite three years of successive inflows into equity markets, Indian retail investors remain underweight equity as an asset class. The Fund owns shares in 19 companies. During April, 16 of these 19 stocks (84%) delivered positive price returns, compared to 171 of the 201 stocks (85%) in the S&P BSE-200 Index. At month-end, cash represented 11.7% the Fund’s assets.


18


Q-ACPI India Equity UCITS Fund (continued)

May 2018

The S&P BSE-200 Index ended the month to 31st May at 4,654.35, providing a total return of -1.3% in INR and -2.4% in USD. The fund generated a -1.79% return (in USD) for May. The S&P BSE Midcap Index lost -7.0% (in USD) and the S&P BSE Small Cap Index lost -7.3% (in USD). The INR depreciated by 1.11% against the USD during the month. Foreign Institutional Investor (FII) flows exert a heavy influence the price of Indian equity assets. FIIs were net buyers for only 4 out of the 22 trading days in May - with aggregate net sales of US$1.5 billion during the month. Domestic investors bought US$2.0 billion of Indian equities during the month, but despite three years of successive inflows into equity markets, Indian retail investors remain underweight equity as an asset class. The Fund bought one new stock in May and now owns shares in 20 companies. During May, 6 of these 20 stocks (30%) delivered positive price returns, compared to 51 of the 201 stocks (25%) in the S&P BSE-200 Index. At month-end, cash represented 14.1% of the Fund’s assets.

June 2018

The S&P BSE 200 Index ended the month to 29th June 2018 at 4,608.29, providing a total return of -0.8% in INR and -2.3% in USD. The fund generated a -1.39% return (in USD) for June. The S&P BSE Midcap Index fell -5.0% (in USD) and the S&P BSE Small Cap Index lost -8.5% (in USD). The INR depreciated by 1.53% against the USD during the month. Foreign Institutional Investor (FII) flows heavily influence the price of Indian equity assets. FIIs were net buyers for only 10 out of the 21 trading days in June - with aggregate net sales of US$0.7 billion during the month. Domestic investors bought US$1.3 billion of Indian equities during the month, but Indian retail investors remain underweight equity as an asset class The Fund bought one new stock in June and now owns shares in 21 companies. During June, 7 of these 21 stocks (33%) delivered positive price returns, compared to 52 of the 201 stocks (26%) in the S&P BSE-200 Index. At month-end, cash represented 13.8% the Fund’s assets.

July 2018

The S&P BSE-200 Index ended the month to 31st July 2018 at 4,870.95, providing a total return of 5.9% in INR and 5.8% in USD. The fund generated a 2.8% return (in USD) for July. The S&P BSE Midcap Index gained 4.0% (in USD) and the S&P BSE Small Cap Index gained 3.7% (in USD). The INR depreciated by -0.10% against the USD during the month. Foreign Institutional Investor (FII) flows heavily influence the price of Indian equity assets. FIIs were net buyers for only 11 out of the 22 trading days in July, with aggregate net purchases of US$0.3 billion during the month. Domestic investors bought US$0.6 billion of Indian equities in July, but in spite of three years of successive inflows into equity markets, Indian retail investors remain underweight equity as an asset class. The Fund now owns shares in 21 companies. During July, 14 of these 21 stocks (67%) delivered positive price returns, compared to 146 of the 201 stocks (73%) in the S&P BSE-200 Index. At month-end, cash represented 15.1% the Fund’s assets.

August 2018

The S&P BSE-200 Index ended the month of August at 5,040.98, providing a total return of 3.6% in INR and 0.2% in USD. The fund generated a 0.7% return (in USD) for August. The S&P BSE Midcap Index gained 2.0% (in USD) and the S&P BSE Small Cap Index gained 0.3% (in USD). The INR depreciated by -3.41% against the USD during the month. Foreign Institutional Investor (FII) flows heavily influence the price of Indian equity assets. FIIs were net buyers for only 13 out of the 21 trading days in August, with aggregate net purchase of US$0.3 billion during the month. Domestic investors bought US$0.6 billion of Indian equities in August, and in spite of three years of successive inflows into equity markets, Indian retail investors remain underweight equity as an asset class. The Fund now owns shares in 22 companies. During August, 18 of these 22 stocks (82%) delivered positive price returns, compared to 130 of the 201 stocks (65%) in the S&P BSE-200 Index. At month-end, cash represented 14.4% the Fund’s assets.

September 2018

The S&P BSE 200 Index ended the month to 28th September 2018 at 4,631.60, providing a total return of -8.1% in INR and -10.0% in USD. The fund generated a -5.8% return (in USD) for September. The S&P BSE Midcap Index lost -14.5% (in USD) and the S&P BSE Small Cap Index lost -17.9% (in USD). The INR depreciated by 2.20% against the USD during the month. Foreign flows, as we have often said, typically set the price of Indian assets but recent activity has been an exception. Foreign Portfolio Investors were net sellers for 11 of the 18 trading days in September with net sales amounting to USD 1.5 billion for the month but it was the local buying of USD 1.6 billion that kept stock indices from sharper declines. As indicated in previous reports, despite four years of positive allocations to equity markets, domestic retail investors continue to be dramatically underweight equity as an asset class. Their continued inflows will remain a huge support for the market and could offset marginal sales by international investors as local buying can act as a cushion to minimize the risk of any sharp sell-off in stocks. The Fund bought one new stock in September and now owns an interest in 23 companies. During September, 5 of these 23 stocks (22%) delivered positive price returns, compared to 22 of the 201 stocks (11%) in the S&P BSE-200 Index. At month-end, cash represented 11.9% the Fund’s assets.


19



Outlook

As the effective date of US sanctions on Iran comes closer, the pressure is reflected in the global crude oil price which surged ~8% in the month and is now trading at $85/bbl. This is likely to put pressure on India’s current account deficit which is now moving towards the 2% mark. The resultant impact of the increase in fuel prices will be felt in inflation numbers in coming months. The strengthening USD vs emerging market currencies, along with a worsening current account deficit is exerting pressure on the Indian rupee which depreciated by ~2.2% in September 2018 and ~14% in past nine months. INR has the dubious distinction of being the worst-performing currency in Asia. To counter the potential surge in inflation, the RBI in its last monetary policy meeting in August hiked the policy rate (second time in the year) by 25 bps and may consider another hike in the next policy meeting to counter depreciation in India rupee. The stress in the financial sector emanating from the NPA creation kept the confidence level among lenders low, as government bailouts keep coming in, first to IDBI bank (rescued by LIC large public sector insurance company) a couple of months back and now IL&FS where the government took control of the company. The recent episode resulted in trust deficit and created havoc in the credit market. The credit availability to NBFC tightened significantly resulting in credit spread widening. The RBI had to step in to provide liquidity to the market by announcing Open Market Operations (OMO) worth $5bn. We believe the situation may take a few months to settle down. The surge in interest rates in the US coupled with trust deficit in credit market led to a crack in equity markets. The market which was riding on gush of liquidity until August proved to be fragile as liquidity tightened. FIIs pulled out ~$2.7bn in September both from equity as well as debt market. The market which ignored the worsening macro environment is finally doing a reality check. As the monsoon starts withdrawing, we note the rainfall deficit numbers surged to ~6% deficiency as compared to long term average. However the spread of the monsoon remained better which resulted in reasonably good sowing this season. The government estimates crop production this season to be similar to that of last season. The near normal monsoon for the season is good news for the Kharif crop (55% of annual production, typically sown at the time of the first rains) and in general for the agriculture economy as 60% of India’s population depends on an agricultural income. The reservoir levels in the country are comfortably full above the last 10-year average, thus ensuring water availability for the next crop i.e. Rabi (Winter) season crop. The expected good monsoon along with a sharp increase in support prices for farm produce is likely to result in rising income levels in rural India, thus stimulating the rural growth engine. The GST collections, for the first half of the current fiscal year continue to fall short of the budgeted numbers. With the government focused on winning elections, the expenditure has been front ended for the year. Lower revenues and higher expenses may lead to another slippage on the fiscal deficit resulting in higher government borrowing. The worsening macro-economic environment has pushed the 10-year benchmark yields from 7.32% in April 2018 to 8.2% at the end of September 2018. This is likely to push up the borrowing cost in the economy in the coming months. The good news for the BJP remains on the political front. While the BJP and Modi have lost a lot of goodwill, the mere sight of the motley opposition sends people rushing towards the safer arms of the BJP. Rahul Gandhi and the Congress continue to be a bad alternative which has been tried and tested for decades and let India down. Yet, the likelihood of a poor election outcome where no one party wins a majority (elections are to be held by May 2019) and India ends up where it was in 1990-1991, 1996-1998 and 1998-1999 where the life expectancy of the ruling coalition governments was less than 18 months. Political gridlock, policy drift and preoccupation with the next impending election will stifle any catalyst for economic reforms and potentially weaken the economy. India has attracted significant capital flows over the last four years due to the perception of a reform-oriented stable political regime. Any significant reversal in the political fortunes of the ruling party might trigger a sharp selloff. The EPS growth for companies representing the broader index showed flat growth for FY18, as expected. Equity returns over the last four years have been driven by P/E expansion. Triggered by a higher cost of capital and rising US interest rates, investors may now begin to assess the reality of India. The casualty will be the P/E ratio as investors adjust nominal share prices to match the lower reported EPS. Private capex which saw a significant decline post the Lehman collapse, remains non-existent and large government spending is the key variable holding up GDP growth rates. Capacity utilisation amongst companies is estimated at c70% and Quantum does not see any evidence of companies planning large capacity expansion. The badly thought out demonetisation scheme and the poor implementation of the Goods and Services Tax has dented demand in the past couple of years, possibly pushing back a recovery in capex by 12-18 months. However, with no disruption expected in the current year and the government loosening its purse ahead of general elections, the economy is limping along with some signs of a natural cyclical recovery. Despite all the near-term headwinds, Quantum continues to believe that India is a great investment destination. Indeed, we consider ourselves to be the original ‘India bull’ with a history that spans 27 years or more. India’s robust internal consumption patterns have offset the often miserable performance of the various governments that have held power during the past three decades. It is this domestic consumption story that makes Quantum so positive about the secular Indian growth story. India has some world class managements running world class businesses and there is a highly underpenetrated and strongly growing domestic demand across goods and services. However, we also strongly believe that it is imperative to maintain a value-based investment discipline. Quantum’s company-level valuation models assume a 6.5% rate of real GDP growth over the long term and we value the businesses of Indian companies against this macro backdrop. As ‘value’ investors, Quantum believe it is important to understand the environment under which the companies that we research and choose to own are likely to operate.


20



With the markets correcting for all the right reasons discussed above, the Upside Potential Indicator has moved from lower levels of 22% in January 2018 to current levels of 36% over 2 years in our forward-looking proprietary chart. In a world where returns are hard to find, that is a very respectable number and is above its own long term average which indeed makes us more positive. Given the recent correction in market which has driven up the upside potential, we suggest an overweight in India. In February 2018 we had suggested upping the weight from “50-75% of your intended long term allocation” to 75-100%. Now, with further correction in markets and rupee depreciating significantly, we suggest an overweight allocation “100% to 125%” of what your intended long term allocation is. If the market were to fall on fear of bad news, we would quickly evaluate the long-term impact on those underlying businesses, deploy the existing cash hoard, and potentially request that investors allocate more capital to India.

Asset allocation (as at 30.09.2018)

ACPI Investments Ltd. October 2018


The accompanying notes form an integral part of these financial statements

21

Statement of financial position (unaudited) As at 30 September 2018

ACPI Balanced

UCITS Fund ACPI Horizon UCITS Fund

Q-ACPI India Equity UCITS

Fund Total Note USD USD USD USD

Assets Financial assets at fair value through profit or loss 3 - Transferable securities 39,516,996 40,494,659 2,964,130 82,975,785 - Investment funds 109,526,335 13,927,231 - 123,453,566 - Financial derivative instruments 214,641 400,455 64 615,160 Cash and cash equivalents 4 13,652,065 10,684,827 422,536 24,759,428 Subscriptions receivable 217,664 160,405 - 378,069 Dividends receivable 19,990 3,718 3,734 27,442 Interest receivable 153,587 123,737 - 277,324 Other receivables 50,605 4,647 70,610 125,862 Prepaid expenses 6,484 834 28 7,346

Total assets 163,358,367 65,800,513 3,461,102 232,619,982

Liabilities Financial liabilities at fair value through profit or loss 3 - Financial derivative instruments 46,288 107,893 321 154,502 Bank overdraft - 809,114 - 809,114 Redemptions payable 321,925 - - 321,925 Securities purchased payable - 51,717 20,409 72,126 Spot contracts 592 - - 592 Performance fee 7 - 14,987 - 14,987 Investment management fee 6 134,575 55,017 3,255 192,847 Management fee 5 2,659 2,466 2,548 7,673 Administration fee 8 32,783 15,771 34,059 82,613 Audit fee 1,904 2,517 414 4,835 Depositary fee 9 5,427 7,369 9,445 22,241 Directors’ fees 10 8,286 3,923 954 13,163 Other expenses payable 31,435 19,540 24,087 75,062

Total liabilities (excluding net assets attributable to holders of redeemable participating shares) 585,874 1,090,314 95,492 1,771,680

Net assets attributable to holders of redeemable participating shares 162,772,493 64,710,199 3,365,610 230,848,302

Net asset value per redeemable participating share CHF Retail Unhedged Class CHF 9.8357 - - EUR Institutional Class € 11.4384 € 10.5560 € 91.4332 EUR Retail Class € 11.8501 € 10.7617 - GBP Institutional Class £11.8609 £10.8315 - GBP Institutional Unhedged Class £10.3757 - - GBP Institutional + Class1 - £9.9841 - GBP Retail Class £12.2494 - - US$ Class - $14.4130 - US$ Institutional Class $12.1382 $10.0169 $94.5439 US$ Institutional + Class - $10.4477 - US$ Retail Class $16.6644 - - US$ Z Class $10.3191 - - 1Effective 27 September 2018, GBP Institutional + Class was lauched on ACPI Horizon UCITS Funds.



22

Statement of financial position (audited)

As at 31 March 2018

ACPI Balanced


ACPI Global Healthcare

UCITS Fund1

Q-ACPI India

Equity UCITS Fund2 Total

Note USD USD USD USD USD

Assets Financial assets at fair value through profit or loss 3 - Transferable securities 21,217,186 41,037,231 - 4,542,101 66,796,518 - Investment funds 112,221,480 19,407,522 - - 131,629,002 - Financial derivative instruments 244,034 663,991 - 76 908,101 Spot contracts 488 - - - 488 Cash and cash equivalents 4 26,344,796 3,289,331 5,291 732,652 30,372,070 Securities sold receivable - 292,125 - - 292,125 Subscriptions receivable 969,881 - - - 969,881 Dividends receivable 36,321 34,799 - 741 71,861 Interest receivable 127,808 196,579 - - 324,387 Other receivables 5,111 3,994 - 22,935 32,040 Prepaid expenses 20,418 6,039 - 145 26,602

Total assets 161,187,523 64,931,611 5,291 5,298,650 231,423,075

Liabilities Financial liabilities at fair value through profit or loss 3 - Financial derivative instruments 254,483 400,917 - 1,731 657,131 Redemptions payable 94,364 - - 5,720 100,084 Securities purchased payable 3,207,789 - - - 3,207,789 Spot contracts - - - 8 8 Performance fee 7 - 366 - - 366 Investment management fee 6 129,128 54,471 - 4,887 188,486 Management fee 5 5,003 2,049 - 167 7,219 Administration fee 8 12,115 5,405 - 23,549 41,069 Audit fee 9,780 7,186 1,000 5,834 23,800 Depositary fee 10 6,920 7,588 3,291 2,917 20,716 Directors’ fees 11 8,501 3,573 - 2,403 14,477 Other expenses payable 12,397 6,328 1,000 13,619 33,344

Total liabilities (excluding net assets attributable to holders of redeemable participating shares) 3,740,480 487,883 5,291 60,835 4,294,489

Net assets attributable to holders of redeemable participating shares 157,447,043 64,443,728 - 5,237,815 227,128,586

1Effective 15 May 2017, ACPI Global Healthcare UCITS Fund closed.

2Effective 8 June 2017, Q-ACPI India Equity UCITS Fund launched.



23

Statement of comprehensive income (unaudited) For the six month financial period ended 30 September 2018

ACPI Balanced UCITS

Fund

ACPI Horizon

UCITS Fund

Q-ACPI India Equity UCITS Fund Total

USD USD USD USD

Investment income Dividend income 302,103 354,730 30,552 687,385 Interest income 218,876 352,992 1,194 573,062 Other income 47,822 653 76 48,551 Net loss on financial assets and financial liabilities at fair value through profit or loss and foreign exchange 3 (2,050,074) (113,077) (135,936) (2,299,087)

Total investment (expense)/income (1,481,273) 595,298 (104,114) (990,089)

Expenses Investment management fee 6 865,414 342,843 11,748 1,220,005 Management fee 5 16,320 15,041 14,178 45,539 Performance fee 7 - 32,048 - 32,048 Administration fee 8 152,336 48,292 (50,697) 149,931 Audit fee 22,428 7,212 (4,654) 24,986 Depositary fee 9 56,956 30,878 34,345 122,179 Directors’ fee 10 16,419 6,872 (991) 22,300 Other expenses 166,626 69,805 27,278 263,709

Total expenses 1,296,499 552,991 31,207 1,880,697

Fee cap re-imbursement - - 47,675 47,675

Net investment (expense)/income (2,777,772) 42,307 (87,646) (2,823,111)

Finance costs Interest expense 13,288 1,230 - 14,518

Total finance costs 13,288 1,230 - 14,518

(Loss)/profit for the financial period (2,791,060) 41,077 (87,646) (2,837,629)

Taxation Withholding tax on dividends 44,711 25,227 - 69,938 Capital gains tax - - 22,134 22,134

(Decrease)/increase in net assets attributable to holders of redeemable participating shares from continuing operations (2,835,771) 15,850 (109,780) (2,929,701)

All amounts relate to continuing operations. There were no gains/losses in the financial period other than the (decrease)/increase in net assets attributable to holders of redeemable participating shares.



24

Statement of comprehensive income (unaudited) For the six month financial period ended 30 September 2017

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund


UCITS Fund

Q- ACPI India Equity

UCITS Fund2 Total USD USD USD USD USD

Investment income Dividend income 231,148 390,877 6,729 27,431 656,185 Interest income 95,342 423,644 - 328 519,314 Other income 5,771 1,328 849 238 8,186 Net gain/(loss) on financial assets and financial liabilities at fair value through profit or loss and foreign exchange 3 8,216,170 2,255,022 49,902 (107,650) 10,413,444

Total investment income/(expense) 8,548,431 3,070,871 57,480 (79,653) 11,597,129

Expenses Investment management fee 6 558,163 287,271 4,326 17,219 866,979 Management fee 5 29,266 14,218 312 8,034 51,830 Performance fee 7 - 48,960 - 1,880 50,840 Administration fee 8 59,163 35,479 - 23,219 117,861 Audit fee 6,295 3,792 829 2,250 13,166 Depositary fee 9 33,037 22,041 4,308 12,384 71,770 Directors’ fee 10 8,884 4,227 - 1,999 15,110 Other expenses 92,479 47,557 3,468 16,141 159,645

Total expenses 787,287 463,545 13,243 83,126 1,347,201

Fee cap re-imbursement - - - 54,131 54,131

Net investment income/(expense) 7,761,144 2,607,326 44,237 (108,648) 10,304,059

Finance costs Interest expense 1,612 9,356 386 54 11,408

Total finance costs 1,612 9,356 386 54 11,408

Profit/(loss) for the financial period 7,759,532 2,597,970 43,851 (108,702) 10,292,651

Withholding tax on dividends 7,122 42,754 1,633 156 51,665

Increase/(decrease) in net assets attributable to holders of redeemable participating shares from continuing operations 7,752,410 2,555,216 42,218 (108,858) 10,240,986

All amounts relate to continuing operations with the exception of ACPI Global Healthcare UCITS Fund1. There were no gains/losses in the financial period other than the increase in net assets attributable to holders of redeemable participating shares. 1 Effective 15 May 2017, ACPI Global Healthcare UCITS Fund closed. 2 Effective 8 June 2017, Q-ACPI India Equity UCITS Fund launched.



25

Statement of changes in net assets attributable to holders of redeemable participating shares (unaudited) For the six month financial period ended 30 September 2018

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund


Fund Total USD USD USD USD

Net assets attributable to holders of redeemable participating shares at the start of the financial period 157,447,043 64,443,728 5,237,815 227,128,586 (Decrease)/increase in net assets attributable to holders of redeemable participating shares from continuing operations (2,835,771) 15,850 (109,780) (2,929,701) Issue of redeemable participating shares 16,762,824 6,443,951 1,598 23,208,373 Redemption of redeemable participating shares (8,601,603) (6,193,330) (1,764,023) (16,558,956)

Net assets attributable to holders of redeemable participating shares at the end of the financial period 162,772,493 64,710,199 3,365,610 230,848,302



26

Statement of changes in net assets attributable to holders of redeemable participating shares (unaudited) For the six month financial period ended 30 September 2017

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund


UCITS Fund1



Net assets attributable to holders of redeemable participating shares at the start of the financial period 85,074,793 43,925,118 4,211,610 - 133,211,521 Increase/(decrease) in net assets attributable to holders of redeemable participating shares from continuing operations1 7,752,410 2,555,216 42,218 (108,858) 10,240,986 Issue of redeemable participating shares 32,405,299 10,899,456 - 6,508,992 49,813,747 Redemption of redeemable participating shares (4,163,152) (83,338) (4,253,828) (13,609) (8,513,927)

Net assets attributable to holders of redeemable participating shares at the end of the financial period 121,069,350 57,296,452 - 6,386,525 184,752,327

1 Continuing operations exclude ACPI Global Healthcare UCITS Fund which closed effective 15 May 2017.

2 Q-ACPI India Equity UCITS Fund launched on 8 June 2017.



27

Statement of cash flows (unaudited) For the six month financial period ended 30 September 2018

ACPI Balanced



Fund Total USD USD USD USD

Cash flow from operating activities (Decrease)/increase in net assets attributable to holders of redeemable participating shares from continuing operations (2,835,771) 15,850 (109,780) (2,929,701) Adjustment for: - Dividend income (302,103) (354,730) (30,552) (687,385) Interest income (218,876) (352,992) (1,194) (573,062) Other income (47,822) (653) (76) (48,551) Withholding taxes 44,711 25,227 - 69,938 Interest expense 13,288 1,230 - 14,518

Net operating cash flow before change in operating assets and liabilities (3,346,573) (666,068) (141,602) (4,154,243)

Net (increase)/decrease in financial assets at fair value through profit or loss (15,575,272) 6,286,399 1,577,983 (7,710,890) Net increase in financial liabilities at fair value through profit or loss (208,195) (293,024) (1,410) (502,629) Net (increase)/decrease in other receivables (31,072) 296,677 (47,558) 218,047 Net (decrease)/increase in other payables (3,173,972) 86,341 41,787 (3,045,844)

Cash (used in)/from operations (22,335,084) 5,710,325 1,429,200 (15,195,559)

Dividend received 273,723 360,584 27,559 661,866 Interest received 193,097 425,834 1,194 620,125 Other income received 47,822 653 76 48,551 Interest paid (13,288) (1,230) - (14,518)

Net cash (used in)/from operating activities (21,833,730) 6,496,166 1,458,029 (13,879,535)

Cash flow from financing activities Issue of participating shares 17,515,041 6,283,546 1,598 23,800,185 Redemption of participating shares (8,374,042) (6,193,330) (1,769,743) (16,337,115)

Net cash from/(used in) financing activities 9,140,999 90,216 (1,768,145) 7,463,070

Net (decrease)/increase in cash and cash equivalents (12,692,731) 6,586,382 (310,116) (6,416,465) Cash and cash equivalents at the start of the financial period 26,344,796 3,289,331 732,652 30,366,779

Cash and cash equivalents at the end of the financial period 13,652,065 9,875,713 422,536 23,950,314

Cash and cash equivalents 13,652,065 10,684,827 422,536 24,759,428 Bank overdrafrt - (809,114) - (809,114) Supplemental disclosure of cash flow information Cash received during the financial period for interest 193,097 425,834 1,194 620,125 Cash received during the financial period for dividends 273,723 360,584 27,559 661,866 Cash paid during the financial period for interest 13,288 1,230 - 14,518



28

Statement of cash flows (unaudited) For the six month financial period ended 30 September 2017

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund


UCITS Fund1



Cash flow from operating activities Increase/(decrease) in net assets attributable to holders of redeemable participating shares from continuing operations 7,752,410 2,555,216 42,218 (108,858) 10,240,986 Adjustment for: - Dividend income (231,148) (390,877) (6,729) (27,431) (656,185) Interest income (95,342) (423,644) - (328) (519,314) Other income (5,771) (1,328) (849) (238) (8,186) Withholding taxes 7,122 42,754 1,633 156 51,665 Interest expense 1,612 9,356 386 54 11,408

Net operating cash flow before change in operating assets and liabilities 7,428,883 1,791,477 36,659 (136,645) 9,120,374

Net (increase)/decrease in financial assets at fair value through profit or loss (24,056,996) (6,757,273) 4,025,365 (5,144,742) (31,933,646) Net increase in financial liabilities at fair value through profit or loss 237,217 148,176 - 18,556 403,949 Net decrease/(increase) in other receivables 1,088,392 (350,840) (2,378) (54,131) 681,043 Net (decrease)/increase in other payables (9,642) (63,878) (29,281) 55,733 (47,068)

Cash (used in)/from operations (15,312,146) (5,232,338) 4,030,365 (5,261,229) (21,775,348)

Dividend received 261,485 344,803 9,399 16,172 631,859 Interest received 46,319 453,980 - 328 500,627 Other income received 5,771 1,328 849 238 8,186 Interest paid (1,612) (9,356) (386) (54) (11,408)

Net cash (used in)/from operating activities (15,000,183) (4,441,583) 4,040,227 (5,244,545) (20,646,084)

Cash flow from financing activities Issue of participating shares 29,022,998 14,926,353 - 6,508,992 50,458,343 Redemption of participating shares (1,338,953) (4,314,372) (4,408,551) (11,257) (10,073,133)

Net cash from/(used in) financing activities 27,684,045 10,611,981 (4,408,551) 6,497,735 40,385,210

Net increase/(decrease) in cash and cash equivalents 12,683,862 6,170,398 (368,324) 1,253,190 19,739,126 Cash and cash equivalents at the start of the financial period 10,483,786 3,631,033 377,450 - 14,492,269

Cash and cash equivalents at the end of the financial period 23,167,648 9,801,431 9,126 1,253,190 34,231,395

Cash and cash equivalents 23,167,648 9,801,431 9,126 1,253,190 34,231,395 Supplemental disclosure of cash flow information Cash received during the financial period for interest 46,319 453,980 - 328 500,627 Cash received during the financial period for dividends 261,485 344,803 9,399 16,172 631,859 Cash paid during the financial period for interest 1,612 9,356 386 54 11,408

1Continuing operations exclude ACPI Global Healthcare UCITS Fund which closed effective 15 May 2017. 2 Q-ACPI India Equity UCITS Fund launched on 8 June 2017.


29

Notes to the financial statements For the six month financial period ended 30 September 2018

1. General information

ACPI Select UCITS Funds plc (the “Company”), was incorporated on 12 March 2014 as an open-ended umbrella investment company with variable capital and segregated liability between sub-funds. The Company has been authorised in Ireland as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) pursuant to the European Communities UCITS Regulations, 2011 and Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) UCITS Regulations, 2016 (the “Central Bank Regulations”).

At the reporting date, the Company has 3 live sub-funds; ACPI Balanced UCITS Fund, ACPI Horizon UCITS Fund (formerly known as ACPI Focused Equity UCITS Fund) and Q-ACPI India Equity UCITS Fund which launched on 8 June 2017. Effective 15 May 2017, ACPI Global Healthcare UCITS Fund (the “sub-fund”) closed. This decision was made following a review of the existing fund range, taking into account factors such as the relative size of the sub-fund’s assets. In addition to the live sub-funds, another two sub-funds of the Company were authorised by the Central Bank of Ireland and which had yet to launch at the reporting date. ACPI Global Equity UCITS Fund was authorised on 24 March 2016, while Q-ACPI India Balanced UCITS Fund was authorised on 29 July 2016.

The investment objective of ACPI Balanced UCITS Fund is to outperform the USD Libor 1 year Index by 300 basis points per annum. The investment objective of ACPI Horizon UCITS Fund is to outperform the USD Libor 1 year Index by 300 basis points per annum over a business cycle and the investment objective of Q-ACPI India Equity UCITS Fund is to achieve long term capital appreciation by investing in the listed equities of Indian companies that are in a position to benefit from the anticipated growth and development of the Indian economy and its markets.

2. Significant accounting policies

(a) Basis of preparation

The interim report and condensed unaudited financial statements of the Company for the financial period ended 30 September 2018 have been prepared in accordance with IAS 34 Interim financial reporting and Irish statute comprising the Companies Act 2014, the UCITS Regulations and the Central Bank Regulations.

The interim report and condensed unaudited financial statements do not contain all of the information and disclosures required in the full annual financial statements and should be read in conjunction with the audited financial statements for the financial year ended 31 March 2018, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”), the Irish Companies Acts , the UCITS Regulations and the Central Bank Regulations.

(b) Changes to accounting policies

In the current period the Company has adopted IFRS 9 Financial Instruments. Comparative figures for the financial year ended 31 March 2018 have not been restated. Therefore, financial instruments in the comparative period are still accounted for in accordance with IAS 39 Financial Instruments: Recognition and Measurement.

The Fund has assessed the classification of financial instruments as at the date of initial application and has applied such classification retrospectively. Based on that assessment all financial assets previously held at fair value continue to be measured at fair value.

3. Financial assets and financial liabilities at fair value through profit or loss

(i) The following table sets out the net gain and loss on financial assets and financial liabilities at fair value through profit or loss and foreign exchange:


ACPI Balanced UCITS

Fund ACPI Horizon UCITS Fund

Q-ACPI India Equity UCITS Fund Total

USD USD USD USD

Net realised gain/(loss) on financial assets and financial liabilities at fair value through profit or loss and foreign exchange 145,635 (55,000) 37,002 127,637 Change in unrealised gain/(loss) on financial assets and financial liabilities at fair value through profit or loss and foreign exchange (2,195,709) (58,077) (172,938) (2,426,724)

Net (loss)/gain on financial assets and financial liabilities at fair value through profit or loss and foreign exchange (2,050,074) (113,077) (135,936) (2,299,087)


30

Notes to the financial statements (continued) For the six month financial period ended 30 September 2018

3. Financial assets and financial liabilities at fair value through profit or loss (continued)

(i) The following table sets out the gain and loss on financial assets and financial liabilities at fair value through profit or loss and foreign exchange (continued):

For the the six month financial period ended 30 September 2017

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund


UCITS Fund

Q- ACPI India Equity UCITS Fund Total

USD USD USD USD USD

Net realised gain on financial assets and financial liabilities at fair value through profit or loss and foreign exchange

2,768,011

1,079,955

257,172

58,267

4,163,405

Change in unrealised gain/(loss) on financial assets and financial liabilities at fair value through profit or loss and foreign exchange

5,448,159

1,175,067

(207,270)

(165,917)

6,250,039

Net gain/(loss) on financial assets and financial liabilities at fair value through profit or loss and foreign exchange

8,216,170

2,255,022

49,902

(107,650)

10,413,444

(i) Fair value of financial instruments

IFRS 13 – Fair Value Measurement, requires a fair value hierarchy for inputs used in measuring fair value that classifies investments according to how observable the inputs are. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions, made in good faith, about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2: Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and

Level 3: Inputs that are not observable

There were no transfers between any levels during the six month financial period ended 30 September 2018 (31 March 2018: nil).

The following table provides an analysis of financial instruments that are measured at fair value, grouped into Levels 1 to 3:

As at 30 September 2018

Level 1 Level 2 Level 3 Total USD USD USD USD

ACPI Balanced UCITS Fund Held for trading - Equity securities 3,595,320 - - 3,595,320 - Investment funds (“IF”) - 109,526,335 - 109,526,335 - IF - ETF 14,059,385 - - 14,059,385 - Debt securities - 21,862,291 - 21,862,291 - Derivatives - Forward currency contracts - 214,641 - 214,641

Financial assets at fair value through profit or loss 17,654,705 131,603,267 - 149,257,972

Held for trading - Derivatives - Forward currency contracts - 46,288 - 46,288

Financial liabilities at fair value through profit or loss - 46,288 - 46,288

ACPI Horizon UCITS Fund Held for trading - Equity securities 17,526,484 - - 17,526,484 - IF - 13,927,231 - 13,927,231 - IF - ETF 3,560,475 - - 3,560,475 - Debt securities - 19,407,700 19,407,700 - Derivatives - Warrants - 288,048 - 288,048 - Forward currency contracts - 112,407 - 112,407


Held for trading - Derivatives - Options - 96,715 - 96,715 - Forward currency contracts - 11,178 - 11,178



31



(ii) Fair value of financial instruments (continued)

As at 30 September 2018 (continued)


Q-ACPI India Equity UCITS Fund Held for trading - Equity securities 2,964,130 - - 2,964,130 - Derivatives - - - - Forward currency contracts - 64 - 64

Financial assets at fair value through profit or loss 2,964,130 64 - 2,964,194

Held for trading - Derivatives - Forward currency contracts - 321 - 321

Financial liabilities at fair value through profit or loss - 321 - 321

As at 31 March 2018


ACPI Balanced UCITS Fund Held for trading - Equity securities 4,059,096 - - 4,059,096 - IF - 101,721,997 - 101,721,997 - IF - ETF 10,499,483 10,499,483 - Debt securities - 17,158,090 - 17,158,090 - Derivatives - Forward currency contracts - 244,034 - 244,034


Held for trading - Derivatives - Forward currency contracts 254,483 - 254,483


ACPI Horizon UCITS Fund Held for trading - Equity securities 13,410,066 - - 13,410,066 - IF - 13,776,667 - 13,776,667 - IF - ETF 5,630,855 - - 5,630,855 - Debt securities - 27,627,165 - 27,627,165 - Derivatives - Warrants - 341,650 - 341,650 - Forward currency contracts - 322,341 - 322,341


Held for trading - Derivatives - Forward currency contracts 400,917 400,917


Q-ACPI India Equity UCITS Fund Held for trading - Equity securities 4,542,101 - - 4,542,101 - Derivatives - Forward currency contracts - 76 - 76

Financial assets at fair value through profit or loss 4,542,101 76 - 4,542,177

Held for trading - Derivatives - Forward currency contracts - 1,731 - 1,731


Effective 15 May 2017, ACPI Global Healthcare UCITS Fund closed. Therefore, this sub-fund did not hold investments as at 30 September 2018 or 31 March 2018.


32



(ii) Fair value of financial instruments (continued)

Level 3 securities

There were no purchases, sales, gains or losses on Level 3 financial instruments held at the financial reporting date 30 September 2018 (31 March 2018: nil).

ACPI FM Limited Dimano Fund and Millennium Global Emerging Credit Fund Limited were priced by competent persons at the reporting date 28 September 2018, collectively representing 0.00% of the NAV. ACPI FM Limited Dimano Fund is suspended and the Investment Manager instructed to price the position at zero. Millennium Global Emerging Credit Fund Limited is in liquidation. The Liquidator advised that sufficient assets are not available to satisfy creditors’ claims in full and the investors will not realise any value from their shareholdings. The liquidation process is ongoing. (iii) Financial derivative instruments

The derivative contracts that the Company holds or issues are forward currency contracts and warrants. The Company records its derivative activities on a mark-to-market basis.

A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, at a price set at the time the contract is made. Forward currency contracts are valued by reference to the forward price at which a new forward contract of the same size and maturity could be undertaken at the valuation date. The unrealised gain or loss on open forward currency contracts is calculated as the difference between the contract rate and this forward price, and this difference is recognised in the statement of comprehensive income.

Warrants are securities, similar to options that allow the owner to redeem the warrant for shares of a stock in the issuing company for a predetermined price. Warrants can be exchange traded and can have a long duration to expiration. The value of a warrant is determined in reference to the underlying stock price. Gains and losses on warrants are recorded by the Company based upon market fluctuations and are recorded as realised or unrealised gains or losses in the statement of comprehensive income.

4. Cash and cash equivalents

Cash and cash equivalents represent the cash balances held at Saxo Bank and The Bank of New York Mellon SA/NV in Brussels, the global sub-custodian of the BNY Mellon Trust Company (Ireland) Limited, (the “Depositary”) and cash held at The Bank of New York Mellon - London Branch, in the name of the Company, which is used as an umbrella collection account to collect subscription monies from investors and pay out redemption monies and also dividends (where applicable) to shareholders.The S&P long term credit rating of The Bank of New York Mellon, the ultimate parent company of the Depositary, is AA- (2018: AA-). The Depositary, the global sub-custodian and Saxo Bank are not rated.


Credit rating Currency

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund

Q-ACPI India Equity

UCITS Fund Total (S&P) USD USD USD USD

The Bank of New York Mellon AA- The Bank of New York Mellon SA/NV in Brussels CHF 1,359,202 96,984 - 1,456,186

The Bank of New York Mellon SA/NV in Brussels EUR 106,142 5,709 138 111,989 The Bank of New York Mellon SA/NV in Brussels GBP 4,296,587 44,611 - 4,341,198 The Bank of New York Mellon SA/NV in Brussels INR - - 10,987 10,987 The Bank of New York Mellon SA/NV in Brussels JPY 495 507 - 1,002 The Bank of New York Mellon SA/NV in Brussels HKD (809,114) - (809,114) The Bank of New York Mellon SA/NV in Brussels USD 7,889,639 9,247,564 411,411 17,548,614 The Bank of New York Mellon SA/NV in Brussels ZAR - - - - Saxo Bank NR Saxo Bank USD - 1,289,452 - 1,289,452 Bank of New York Mellon - London Branch AA- Bank of New York Mellon - London Branch GBP - - - - Bank of New York Mellon - London Branch USD - - - -

Total 13,652,065 9,875,713 422,536 23,950,314


33


4. Cash and cash equivalents (continued)

As at 31 March 2018

Credit rating Currency

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund

ACPI Global

Healthcare UCITS

Fund

Q-ACPI India

Equity UCITS

Fund Total (S&P) USD USD USD USD USD

The Bank of New York Mellon AA- The Bank of New York Mellon SA/NV in Brussels CHF 1,173,910 751 - - 1,174,661 The Bank of New York Mellon SA/NV in Brussels EUR 113,870 320 - 147 114,337 The Bank of New York Mellon SA/NV in Brussels GBP 4,214,445 1,650,462 - - 5,864,907 The Bank of New York Mellon SA/NV in Brussels INR - - - 3 3 The Bank of New York Mellon SA/NV in Brussels JPY - 21,104 - - 21,104 The Bank of New York Mellon SA/NV in Brussels USD 20,565,252 - 5,291 732,502 21,303,045 The Bank of New York Mellon SA/NV in Brussels ZAR 1 - - - 1 Saxo Bank NR Saxo Bank USD - 1,616,694 - - 1,616,694 Bank of New York Mellon - London Branch AA- Bank of New York Mellon - London Branch GBP 137,474 - - - 137,474 Bank of New York Mellon - London Branch USD 139,844 - - - 139,844

Total 26,344,796 3,289,331 5,291 732,652 30,372,070

5. Management fee

Link Fund Manager Solutions (Ireland) Limited (the “Manager”) receives a fee of up to 0.02% per annum of the NAV of each sub-fund subject to an annual minimum fee of $25,000 per annum rising to a minimum of $30,000 per annum after 1 year from the date of appointment of the Manager. The management fee accrues as of each valuation point and is paid monthly in arrears (plus value added tax, “VAT”, if any).

The Manager is entitled to be reimbursed by each sub-fund for reasonable out-of-pocket expenses incurred by it and any VAT on fees and expenses payable to or by it.

Total management fee accrued at the reporting date and charged during the financial period is shown in the statement of financial position and the statement of comprehensive income respectively.

6. Investment management fee

The Investment Manager receives, out of the assets of the sub-funds a fee equal to the difference between the maximum aggregate management fee and investment management fee payable in respect of each share class as detailed in the table below. The investment management fee accrues as of each valuation point and is paid monthly in arrears (plus VAT, if any). The Investment Manager is entitled to be reimbursed for reasonable out of pocket expenses incurred by it and any VAT on fees and expenses payable to or by it.

Share class ACPI Balanced

UCITS Fund ACPI Horizon

UCITS Fund Q-ACPI India

Equity UCITS Fund

CHF Retail Unhedged Class 1.50% per annum - -

EUR Institutional Class 0.75% per annum 0.75% per annum 1.25% per annum

EUR Retail Class 1.50% per annum 1.50% per annum 1.75% per annum

GBP Institutional Class 0.75% per annum 0.75% per annum -

GBP Institutional Unhedged Class 0.75% per annum - -

GBP Retail Class 1.50% per annum 1.50% per annum -

GBP Institutional + Class1 - 0.75% per annum -

US$ Class - 1.50% per annum -

US$ Institutional Class 0.75% per annum 0.75% per annum 1.25% per annum

US$ Institutional + Class - 0.50% per annum -

US$ Retail Class 1.50% per annum 1.50% per annum 1.75% per annum

US$ Z Class 1.25% per annum - - 1Effective 27 September 2018, GBP Institutional + Class was lauched on ACPI Horizon UCITS Funds.

The investment management fee accrued at the reporting date and charged during the financial period is shown in the statement of financial position and the statement of comprehensive income respectively.

7. Performance fee

In addition to the investment management fee, the Investment Manager will be entitled to receive a performance fee in respect of the US$ Retail Class, US$ Institutional Class, US$ Institutional + Class, EUR Retail Class, EUR Institutional Class, GBP Retail Class and GBP Institutional Class (the “performance fee”) on ACPI Horizon UCITS Fund.

For each of these classes, a performance fee of 10% of the amount (if any) by which the NAV per share on the relevant calculation day is greater than the highest NAV per share on any preceding calculation day on which a performance fee was paid (or greater than the initial offer price in the case of the first calculation day) such excess being multiplied by the actual number of shares in issue, of that class, at the relevant valuation point or, in respect of shares which are redeemed, the number of shares being redeemed.

No performance fee will be paid unless the NAV per share exceeds the level at which a performance fee was last paid (or the initial offer price where no performance fee has ever been paid) and any previous reduction in the NAV per share below that level has been recovered.


34


7. Performance fee (continued)

Subject to verification by the Depositary, the performance fee will accrue daily, be payable quarterly in arrears and be calculated by the Administrator in respect of each period of three months ending on the last business day in the financial period ending on 31 March, 30 June, 30 September and 31 December in each year (the “performance period”).

Total performance fee accrued at the reporting date and charged during the financial period is shown in the statement of financial position and the statement of comprehensive income respectively.

8. Administration fee

Link Fund Administrators (Ireland) Limited (the “Administrator”) receives a fee of up to 0.09% of the NAV of each sub-fund subject to an annual minimum fee of $450,000 which is allocated between the sub-funds on a pro rata basis to the NAV of the sub-funds during the relevant period. For accounting purposes, the minimum fee is seen as $75,000 per sub-fund so if one sub-fund has assets above the annual minimum fee, the minimum fee apportioned will be allocated to the remaining sub-funds, as adjusted. Such fees accrue daily and are paid monthly in arrears.

The Administrator is entitled to be reimbursed out of the assets of the sub-fund for reasonable out of pocket expenses incurred by it and any VAT on fees and expenses payable to or by it.

Total administration fee accrued at the reporting date and charged during the financial period is shown in the statement of financial position and the statement of comprehensive income respectively. 9. Depositary fee

The Depositary receives out of the assets of each sub-fund an annual trustee fee which accrues monthly and is paid monthly in arrears not exceeding 0.03% of the NAV of each sub-fund subject to a minimum monthly fee in respect of the sub-fund of $2,500.

The Depositary is entitled to be reimbursed out of the assets of the sub-fund for reasonable out of pocket expenses incurred by it including sub-custodian fees which will be at normal commercial rates.

Total depositary fee accrued at the reporting date and charged during the financial period is shown in the statement of financial position and the statement of comprehensive income respectively.

10. Directors’ fee

The remuneration of the Directors in respect of services rendered or to be rendered to the Company will not exceed €55,000 (exclusive of taxes) in the aggregate per annum. Aaron Dunlop does not receive a fee as a Director.

All Directors are entitled to reimbursement by the Company of expenses properly incurred in the performance of their duties in connection with the business of the Company. The Directors’ remuneration and expenses will be paid pro rata out of the assets of the sub-funds, to include the deduction and payment of all taxes payable on remuneration earned from the Company.

Directors’ fees accrued at the reporting date and charged during the financial period are shown in the statement of financial position and the statement of comprehensive income respectively. 11. Exchange rates

The following spot foreign exchange rates were used to convert the assets and liabilities held in currencies other than the functional currency of the Company at the financial reporting date.

30 September 2018 31 March 2018 Currency Exchange rate to USD Exchange rate to USD

Argentine Peso 40.775000 - British Pound 0.766841 0.712860 Euro 0.860955 0.813107 Hong Kong Dollars 7.824900 7.848300 Indian Rupee 72.490000 65.221700 Japanese Yen 113.585000 106.350000 South African Rand 14.151250 11.848750 Swiss Franc 0.976800 0.957600


35

Notes to the financial statements (continued) For the six month financial period ended 30 September 2018 12. Fund asset regime

The Company operates under a Fund Asset Model, whereby an umbrella collection account is held in the name of the Company. The umbrella collection account is used to collect subscription monies from investors and pay out redemption monies and also dividends (where applicable) to shareholders. The balances held in the accounts are reconciled on a daily basis and monies are not intended to be held in the account for long periods. The monies held in the collection accounts are considered an asset of the Company and are disclosed in the statement of financial position, within cash and cash equivalents. Cash balances held in the collection accounts are disclosed in note 4.

13. Share capital

Authorised The Company has an authorised share capital of 2 redeemable non-participating shares of no par value and 500,000,000,000 participating shares of no par value. Two non-participating shares are currently in issue and are held by employees of the legal advisor. These shares do not form part of the NAV of the Company and are disclosed by way of this note only. Non-participating shares do not entitle the holders to any dividend and on winding up entitle the holders to receive the consideration paid but do not otherwise entitle them to participate in the assets of the Company. Every holder of non-participating shares is entitled to one vote.

Redeemable participating shares Redeemable participating shares carry the right to a proportionate share in the assets of the sub-funds and the holders of redeemable participating shares are entitled to attend and vote on all meetings of the Company and the relevant sub-fund. Shareholders may redeem their shares on and with effect from any dealing day at the NAV per share calculated on or with respect to the relevant dealing day. In the event of a shareholder requesting a redemption which would, if carried out, leave the shareholder holding shares having a NAV less than the minimum holding, the Company may, if it thinks fit, redeem the whole of the shareholders holding or the request for partial redemption will be refused. On a poll, every shareholder shall be entitled to one vote in respect of each full share held by him. In the case of an equality of votes, the Chairman shall be entitled to a second or casting vote.

Issued share capital The table below shows the share transactions during the financial period ended 30 September 2018:

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund Q- ACPI

India Equity UCITS Fund

CHF Retail Unhedged Class Opening balance 115,200.00 - - Units issued 57,200.00 - - Units redeemed (34,500.00) - -

Closing balance 137,900.00 - -

EUR Institutional Class Opening balance 595,089.66 197,354.72 2,335.00 Units issued 73,895.27 27,205.52 - Units redeemed (139,083.78) (2,829.87) (1,041.63)

Closing balance 529,901.15 221,730.37 1,293.37

EUR Retail Class Opening balance 1,070,075.44 170,419.96 - Units issued 158,780.00 - - Units redeemed (246,845.50) (3,940.00) -

Closing balance 982,009.94 166,479.96 -

GBP Institutional Class Opening balance 1,530,560.63 1,134,555.23 - Units issued 193,510.42 13,090.35 - Units redeemed (26,234.96) (335,259.63) -

Closing balance 1,697,836.09 812,385.95 -

GBP Institutional + Class1 Opening balance - - Units issued - 10,000.00 - Units redeemed - - -

Closing balance - 10,000.00 -

GBP Retail Class Opening balance 125,233.14 - - Units issued 28,462.16 - - Units redeemed (3,300.00) - -


GBP Institutional Unhedged Class Opening balance 337,416.14 - - Units issued 23,262.85 - - Units redeemed - - -

Closing balance 360,678.99 - - Effective 27 September 2018, GBP Institutional + Class was lauched on ACPI Horizon UCITS Funds.


36


13. Share capital (continued)

Issued share capital (continued)

The table below shows the share transactions during the financial period ended 30 September 2018 (continued):

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund

Q- ACPI India Equity UCITS

Fund

US$ Institutional Class Opening balance 3,863,157.85 259,354.32 50,768.04 Units issued 1,083,257.69 496,030.03 15.88 Units redeemed (677,065.74) - (16,638.36)

Closing balance 4,269,349.80 755,384.35 34,145.56

US$ Institutional + Class Opening balance - 823,108.47 - Units issued - - - Units redeemed - - -

Closing balance - 823,108.47 -

US$ Retail Class Opening balance 2,996,965.63 - - Units issued 50,707.39 - - Units redeemed (74,404.07) - -

Closing balance 2,973,268.95 - -

US$ Class Opening balance - 2,252,480.95 - Units issued - 58,187.12 - Units redeemed - (80,772.97) -

Closing balance - 2,229,895.10 -

US$ Z Class Opening balance 377,074.24 - - Units issued 253,863.20 - - Units redeemed (57,825.17) - -


The table below shows the share transactions during the financial year ended 31 March 2018:

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund


UCITS Fund

Q- ACPI India Equity UCITS Fund

CHF Retail Unhedged Class Opening balance - - - - Units issued 115,200.00 - - - Units redeemed - - - -

Closing balance 115,200.00 - - -

EUR Institutional Class Opening balance 172,956.51 52,102.00 - Units issued 422,133.15 145,252.72 - 10,035.25 Units redeemed - - - (7,700.25)

Closing balance 595,089.66 197,354.72 - 2,335.00

EUR Retail Class Opening balance 399,639.39 184,614.96 - - Units issued 814,393.28 14,375.00 - - Units redeemed (143,957.23) (28,570.00) - -

Closing balance 1,070,075.44 170,419.96 - -

GBP Institutional Class Opening balance 470,238.39 984,031.60 - - Units issued 1,099,013.54 150,523.63 - - Units redeemed (38,691.30) - - -

Closing balance 1,530,560.63 1,134,555.23 - -

GBP Retail Class Opening balance 156,167.92 - - - Units issued 132,319.45 - - - Units redeemed (163,254.23) - - -



37


13. Share capital (continued)

Issued share capital (continued)

The table below shows the share transactions during the financial year ended 31 March 2018 (continued)

ACPI Balanced

UCITS Fund

ACPI Horizon

UCITS Fund


UCITS Fund

Q- ACPI India Equity UCITS Fund

GBP Institutional Unhedged Class Opening balance - - - - Units issued 337,416.14 - - - Units redeemed - - - -


US$ Institutional Class Opening balance 2,789,476.80 - - - Units issued 1,446,207.30 259,354.32 - 58,911.47 Units redeemed (372,526.25) - - (8,143.43)

Closing balance 3,863,157.85 259,354.32 - 50,768.04

US$ Institutional + Class Opening balance - - - - Units issued - 973,108.47 - - Units redeemed - (150,000.00) - -

Closing balance - 823,108.47 - -

US$ Retail Class Opening balance 2,515,398.85 - - - Units issued 685,833.60 - - - Units redeemed (204,266.82) - - -

Closing balance 2,996,965.63 - - -

US$ Class Opening balance - 2,086,687.78 27,357.41 - Units issued - 197,346.13 - - Units redeemed - (31,552.96) (27,357.41) -

Closing balance - 2,252,480.95 - -

US$ Z Class Opening balance - - - - Units issued 377,074.24 - - - Units redeemed - - - -


14. Efficient portfolio management and financial derivatives

The Company may, subject to the conditions and within the limits laid down by the Central Bank, employ techniques and instruments relating to transferable securities, including investment in financial derivative instruments (“FDI”). Such techniques and instruments may be used for efficient portfolio management purposes, or to provide protection against exchange risk or for direct investment purposes, where applicable. Only such FDI as are provided for in the current risk management process for the Company approved by the Central Bank may be used by the Company.

15. Net asset value reconciliation

The published NAV is adjusted for subscriptions receivable and redemptions payable which have a value date of the last NAV of each sub-fund in the accounting period.

30 September 2018 31 March 2018 USD USD

ACPI Balanced UCITS Fund Net asset value per financial statements 162,772,493 157,447,043 Subscriptions receivable1 - (110,767) Redemptions payable2 134,611 4,358

Published net asset value 162,907,104 157,340,634 1Subscriptions receivable effective 30 Septermber 2018 and 31 March 2018.

2Redemptions payable effective 30 Septermber 2018 and 31 March 2018.

16. Soft commission arrangements

There were no soft commission arrangements in place during the financial period ended (31 March 2018:10,284).


38

Notes to the financial statements (continued) For the six month financial period ended 30 September 2018 17. Commitments and contingent liabilities

The Directors are not aware of any commitments or contingent liabilities of the Company as at 30 September 2018 (31 March 2018: nil).

18. Capital management

The redeemable shares issued by the Company provide an investor with the right to require redemption for cash at a value proportionate to the investor’s shares in the sub-fund’s net assets at each redemption date and are classified as liabilities. The sub-fund’s objective, in managing the redeemable shares, is to ensure a stable base to maximise returns to all investors and to manage liquidity risk arising from redemptions.

19. Cross holdings

When a sub-fund holds an investment in another sub-fund within the same umbrella, the total for the Company will be overstated by the cross holding. This does not affect the NAV per share of any of the individual sub-funds. The ACPI Balanced UCITS Fund is invested into the Q-ACPI India Equity UCITS Fund with a market value of $496,493 (0.31% of the NAV) at the reporting date (31 March 2018: $911,554 which equated to 0.58% of the NAV).

The table below provides details of realised gains/losses and the movement in unrealised gains/losses in cross holdings within the Company:

Q-ACPI India Equity UCITS Fund

30 September 2018 USD

Q-ACPI India Equity UCITS Fund

31 March 2018 USD

Investment by ACPI Balanced UCITS Fund Shares invested 5,238 9,327 Market Value 496,493 911,554 Movement in unrealised loss (27,312) (21,177) Realised (loss)/gain (8,926) 32,731 The statement of financial position, statement of comprehensive income and statement of changes in net assets attributable to holders of redeemable participating shares have not been updated for this cross holding.

20. Transactions involving connected persons

Chapter 10 of the the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations, 2015 (the “Central Bank Regulations”) headed ‘Transactions involving Connected Persons’ states in regulation 41 that a responsible person shall ensure that any transaction between a UCITS and the management company or depositary to a UCITS; and the delegates or sub-delegates of such a management company or depositary (excluding any non-group company sub-custodians appointed by a depositary); and any associated or group company of such a management company, depositary, delegate or sub-delegate (“connected persons”) is conducted at arm’s length and is in the best interests of the unitholders of the UCITS.

The Manager of the Company is satisfied that there are arrangements (evidenced by written procedures) in place, to ensure that the obligations set out in regulation 41 of the Central Bank Regulations are applied to all transactions with connected persons; and the Board of Directors is satisfied that transactions with connected persons entered into during the financial period complied with the obligations set out in this paragraph.

21. Related party disclosures

In accordance with IAS 24 ‘Related Party Disclosures’ the related parties of the Company and the required disclosures relating to material transactions with parties are outlined below. All transactions between related parties are conducted at arm’s length.

Investment Manager In the opinion of the Directors, the Investment Manager is considered a related party as Aaron Dunlop is Chief Financial Officer of the Investment Manager and is also a Director of the Company.

Details of fees payable to the Investment Manager at the reporting date are outlined below:

30 September 2018 31 March 2018 USD USD

Investment management fee 192,847 188,486 Details of fees charged to the Investment Manager during the financial period are outlined below:

30 September 2018 30 September 2017 USD USD

Investment management fee 1,220,005 866,979 Distributor The Investment Manager acted as Distributor of the Company during the financial period. The Distributor does not receive a fee in its capacity as Distributor to the Company.


39


21. Related party disclosures (continued)

Directors The Directors are also considered related parties of the Company.

Aggregate directors’ fees charged during the financial period ended 30 September 2018 amounted to €20,000 (financial year ended 31 March 2018: €40,000).

Director fees accrued at the reporting date and director fees charged during the financial period are disclosed in the statement of financial position and the statement of comprehensive income, respectively.

The Directors did not hold any shares in the sub-funds at the financial reporting date (31 March 2018: nil).

22. Significant events during the financial period.

Effective 5 September 2018, the registered office addrees of the Manager and Administrator changed from 2nd Floor, 2 Grand Canal Square, Grand Canal Harbour, Dublin 2 to 1st Floor, 2 Grand Canal Square, Grand Canal Harbour, Dublin 2. Effective 10 September 2018, the registered office address of the Company changed from 2nd Floor, 2 Grand Canal Square, Grand Canal Harbour, Dublin 2 to 1st Floor, 2 Grand Canal Square, Grand Canal Harbour, Dublin 2. Effective 27 September 2018, GBP Institutional + Class was lauched on ACPI Horizon UCITS Funds. 23. Changes to the prospectus

There were no significant changes to the prospectus during the financial period.

24. Events after the reporting date

There are no significant events that occurred after the reporting date and up to the approval of these financial statements that are required to be disclosed.

25. Approval of the financial statements

The financial statements were authorised for issue by the Directors on 22 November 2018.


40

Schedule of investments


ACPI Balanced UCITS Fund Currency Nominal holding

Fair value USD % of NAV

Financial assets at fair value through profit or loss

Equities United Kingdom British Land Co PLC/The GBP 252,700 2,032,564 1.25% Land Securities Group PLC GBP 135,656 1,562,756 0.96%

3,595,320 2.21%

Total equities 3,595,320 2.21%

Investment Funds Ireland ACPI FM Limited Dimano Fund USD 141,134 - 0.00% ACPI Select UCITS Funds PLC - Q-ACPI India Equity UCITS Fund USD 5,238 496,493 0.31% First State China A Share Fund USD 262,657 6,093,653 3.74% HERMES ASIA EX-JAPAN EQUITY FUND USD 1,803,262 6,426,824 3.95% Kames Short Dated High Yield Global Bond Fund USD 691,889 7,192,882 4.42% Legg Mason Global Funds PLC-Legg Mason Western Asset Macro Opportunities Bond Fund USD 28,637 3,582,775 2.20% MAN Funds PLC - MAN GLG Japan CoreAlpha Equity JPY 45,445 9,094,973 5.59% MillenniumGlobal Emerging Credit Fund Limited USD 4,452 - 0.00% PineBridge Asia ex Japan Small Cap Equity Fund USD 5,482 3,539,093 2.17% PineBridge Japan Small Cap Equity Fund JPY 21,435 1,704,476 1.05% Rubrics Global Credit UCITS Fund USD 288,771 4,619,006 2.84% Sector Capital Fund plc - Sector Healthcare Value Fund USD 86,271 11,237,723 6.90% TT Asia Pacific Equity Fund USD 160,305 1,537,000 0.94% Vulcan Value Equity Fund USD 59,095 10,496,376 6.45%

66,021,274 40.56% Luxembourg Amundi Funds - Bond Global Aggregate USD 2,121 4,714,087 2.90% Eastspring Investments - Asian High Yield Bond Fund USD 474,435 6,428,121 3.95% Jupiter JGF - Asia Pacific Income1 USD 897,610 8,751,693 5.38% LO Funds - Europe High Conviction EUR 100,000 1,755,504 1.08% Morgan Stanley Investment Funds-Global Brands Equity Income Fund USD 257,092 8,442,905 5.19% Vontobel Fund - Emerging Markets Debt USD 38,819 4,909,858 3.02%

35,002,168 21.52% United Kingdom Fundsmith Equity Fund GBP 900,810 4,839,772 2.97% Thesis Unit Trust Management - TM Sanditon UK Fund GBP 2,680,373 3,663,121 2.25%

8,502,893 5.22%

Total IF 109,526,335 67.30%

IF - ETF United States Energy Select Sector SPDR Fund USD 17,940 1,358,776 0.83% SPDR Gold Shares USD 11,850 1,336,206 0.82% VanEck Vectors Oil Services ET USD 191,600 4,826,404 2.97% Vanguard Consumer Staples ETF USD 46,660 6,537,999 4.02%

14,059,385 8.64%

Total IF- ETF 14,059,385 8.64%

Debt securities Government bond United States United States Treasury Note/Bond 1.25% 04/30/2019 USD 8,000,000 7,945,156 4.88% United States Treasury Note/Bond 2.00% 11/15/2026 USD 15,050,000 13,917,135 8.55%

21,862,291 13.43%

Total government bond 21,862,291 13.43%

Total debt securities 21,862,291 13.43%

1IF not regulated by the UCITS Regulations


41

Schedule of investments (continued) As at 30 September 2018


Financial assets at fair value through profit or loss (continued) Forward Currency Contracts (counterparty-BNY Mellon)

Purchase Currency Amount Sale

Currency Amount Settlement

date Fair value

USD % of NAV

Class EUR Ret USD 58,829 EUR (49,829) 15-Oct-2018 892 0.00% USD 40,652 EUR (34,949) 15-Oct-2018 17 0.00% Class GBP Ret GBP 1,823,532 USD (2,361,455) 15-Oct-2018 17,931 0.01% Class GBP Inst GBP 19,900,707 USD (25,771,216) 15-Oct-2018 195,688 0.12% GBP 12,500 USD (16,212) 15-Oct-2018 99 0.00% USD 2,427 GBP (1,850) 15-Oct-2018 14 0.00%

214,641 0.13%

Total derivatives 214,641 0.13%

Total financial assets at fair value through profit or loss 149,257,972 91.71%

Financial liabilities at fair value through profit or loss Derivatives Forward Currency Contracts (counterparty-BNY Mellon)



date Fair value

USD % of NAV

Class EUR Ret USD 71,621 EUR (61,673) 15-Oct-2018 (88) 0.00% EUR 80,598 USD (94,930) 15-Oct-2018 (1,217) 0.00% EUR 11,710,907 USD (13,646,030) 15-Oct-2018 (29,526) (0.02%) Class EUR Inst EUR 6,002,181 USD (6,993,988) 15-Oct-2018 (15,133) (0.01%) Class GBP Inst USD 16,120 GBP (12,363) 15-Oct-2018 (12) 0.00% GBP 25,000 USD (32,933) 15-Oct-2018 (312) 0.00%

(46,288) (0.03%)

(46,288) (0.03%)

Total financial liabilities at fair value through profit or loss (46,288) (0.03%)

Cash and cash equivalents and other net assets 13,560,809 8.32%

Net assets attributable to holders of redeemable participating shares 162,772,493 100.00%

Analysis of total assets % of total assets

Transferable securities listed on an official stock exchange or dealt on another regulated market 15.58% IF (UCITS) 57.96% IF (Non-UCITS) 17.69% OTC financial derivative instruments 0.10% Other current assets 8.67%

100.00%


42


ACPI Horizon UCITS Fund Currency Nominal holding


Financial assets at fair value through profit or loss Equities Cayman Islands Noah Holdings Ltd USD 1,238 52,169 0.08%

52,169 0.08% France Thales SA EUR 6,850 973,451 1.50%

973,451 1.50% Germany ADLER Real Estate AG EUR 66,930 1,181,637 1.83% alstria office REIT-AG EUR 41,100 610,088 0.94% Fresenius SE & Co KGaA EUR 16,700 1,226,670 1.90% SAP SE EUR 9,330 1,148,701 1.78%

4,167,096 6.45% Hong Kong AIA Group Ltd HKD 63,000 562,780 0.87%

562,780 0.87% Italy Telecom Italia SpA/Milano EUR 792,000 426,286 0.66%

426,286 0.66% Luxembourg Samsonite International SA HKD 219,600 813,863 1.26%

813,863 1.26% Netherlands ING Groep NV 6.13% USD 22,800 577,981 0.89%

577,981 0.89% Panama Carnival Corp USD 15,150 966,116 1.49%

966,116 1.49% Switzerland HBM Healthcare Investments AG CHF 13,491 2,463,958 3.81%

2,463,958 3.81% United Kingdom British American Tobacco PLC GBP 22,860 1,068,561 1.65%

1,068,561 1.65% United States American Express Co USD 4,400 468,556 0.72% Booking Holdings Inc USD 338 670,592 1.04% Facebook Inc USD 3,390 557,519 0.86% Invesco Mortgage Capital Inc USD 10,965 274,783 0.42% Microsoft Corp USD 10,100 1,155,137 1.79% Oracle Corp USD 25,990 1,340,044 2.07% Visa Inc USD 6,580 987,592 1.53%

5,454,223 8.43%

Total equities 17,526,484 27.09%

Investment Funds Ireland Brilliance China Core Long Short Fund USD 15,283 1,478,873 2.29% Kames Short Dated High Yield Global Bond Fund USD 129,067 1,341,782 2.07% MAN Funds PLC - MAN GLG Japan CoreAlpha Equity USD 11,970 2,620,559 4.05% Rubrics Global Credit UCITS Fund USD 145,114 2,321,162 3.59% Sector Capital Fund plc - Sector Healthcare Value Fund USD 10,556 1,375,067 2.12% Vulcan Value Equity Fund USD 16,627 2,953,313 4.56%

12,090,756 18.68%

United Kingdom Thesis Unit Trust Management - TM Sanditon UK Fund GBP 1,343,783 1,836,475 2.84%

1,836,475 2.84%

Total investment funds 13,927,231 21.52%


43


ACPI Horizon UCITS Fund (continued) Currency Nominal holding


Financial assets at fair value through profit or loss (continued) IF - ETF Germany iShares STOXX Europe 600 Oil & Gas UCITS ETF DE EUR 27,900 1,190,430 1.84%

1,190,430 1.84% Ireland Xtrackers MSCI USA Consumer Staples UCITS ETF EUR 50,900 1,531,218 2.37%

1,531,218 2.37% United States VanEck Vectors Oil Services ETF1 USD 33,300 838,827 1.30%

838,827 1.30%

Total IF- ETF 3,560,475 5.51%

Debt securities Convertible Bond Canada Golden Star Resources Ltd 7.00% 08/15/2021 USD 500,000 542,200 0.84%

542,200 0.84% Netherlands Fyber NV 3.00% 07/27/2020 EUR 900,000 418,140 0.65%

418,140 0.65%

Total convertible bond 960,340 1.49%

Corporate Bond France AXA SA 4.39$ EUR 200,000 236,075 0.36%

236,075 0.36% Spain Banco Santander SA 1.28% EUR 600,000 642,333 0.99%

642,333 0.99% United Kingdom Mclaren Finance PLC 5.00% 08/01/2022 GBP 587,000 746,502 1.15% Prudential PLC 5.25% USD 350,000 339,063 0.52%

1,085,565 1.67% United States CF Industries Inc 3.45% 06/01/2023 USD 538,000 520,515 0.80% Dell International LLC / EMC Corp 3.48% 06/01/2019 USD 399,000 400,209 0.62% Jefferies Group LLC / Jefferies Group Capital Finance Inc 8.00% 08/31/2037 USD 774,000 626,940 0.97% Jefferies Group LLC / Jefferies Group Capital Finance Inc 1.37% 07/31/2037 USD 538,000 355,080 0.55% Morgan Stanley 3.74% 10/24/2023 USD 503,000 517,028 0.80%

2,419,772 3.74%

Total corporate bond 4,383,745 6.76%

Government Bond Argentina Argentina Treasury Bill 0 10/12/2018 ARS 26,000,000 709,513 1.10%

709,513 1.10% United States United States Treasury Note/Bond USD 12,920,000 12,831,427 19.83%

12,831,427 19.83%

Total government bond 13,540,940 20.93%

Stepped Bond Netherlands Amatheon Financing BV 2.00% 07/31/2019 EUR 1,500,000 522,675 0.81%

522,675 0.81%

Total debt securities 19,407,700 29.99%

1IF not regulated by he UCITS Regulations


44


ACPI Horizon UCITS Fund (continued) Currency Nominal holding


Derivatives Warrants Goldman Sachs & Co Wertpapier GmbH 0 EUR 6,138 125,411 0.19% Goldman Sachs & Co Wertpapier GmbH 0 USD 10,230 162,637 0.25%

Total Warrants 288,048 0.44%

Forward Currency Contracts (counterparty-BNY Mellon)



date Fair Value

USD % NAV

Fund Level USD 2,132,170 CHF (2,052,000) 14-Dec-2018 16,415 0.03% USD 10,364,198 EUR (8,862,000) 14-Dec-2018 6,763 0.01% USD 3,818,359 GBP (2,915,000) 14-Dec-2018 3,507 0.01% USD 131,177 GBP (100,000) 04-Oct-2018 760 0.00% EUR Retail Class USD 49,066 EUR (41,941) 15-Oct-2018 300 0.00% GBP Inst Class GBP 8,566,747 USD (11,093,851) 15-Oct-2018 84,239 0.13% GBP 140,000 USD (182,252) 15-Oct-2018 423 0.00%

112,407 0.18%

Total derivatives 400,455 0.62%


Financial liabilities at fair value through profit or loss Derivatives

Currency Nominal Holding Fair Value

USD % NAV

Options (counterparty-BNY Mellon) Ctrip.Com International Ltd Ctrp 12 P37 21/12/2018 USD (220) (40,700) (0.06%) Facebook Inc Fb 11 P160 11/16/2018 USD (60) (35,640) (0.06%) Halliburton Co Hal 11 P40 11/16/2018 USD (163) (20,375) (0.03%)

Total options (counterparty-BNY Mellon) (96,715) (0.15%)

Forward Currency Contracts



date Fair Value

USD % NAV

EUR Inst Class EUR 2,317,362 USD (2,700,286) 15-Oct-2018 (5,843) (0.01%) EUR Retail Class EUR 1,816,381 USD (2,116,522) 15-Oct-2018 (4,580) (0.01%) GBP Inst + Class GBP 100,000 USD (131,238) 15-Oct-2018 (755) 0.00%

(11,178) (0.02%)

Total derivatives (107,893) (0.17%)

Total financial liabilities at fair value through profit or loss (107,893) (0.17%)

Cash and cash equivalents and other net assets 9,995,747 15.44%

Net assets attributable to holders of redeemable participationg shares 64,710,199 100.00%


Transferable securities listed on an official stock exchange or dealt on another regulated market 26.64% IF (UCITS) 25.30% IF (Non-UCITS) 5.02% OTC financial derivative instruments 0.88% Other current assets 42.16%

100.00%


45


Q-ACPI India Equity UCITS Fund Currency Nominal holding


Financial assets at fair value through profit or loss Equities India ACC Ltd INR 30,901 278 0.01% Bajaj Auto Ltd INR 13 213,283 6.34% Cipla Ltd/India INR 5,753 154,278 4.58% Exide Industries Ltd INR 17,099 69,814 2.07% GAIL India Ltd INR 19,065 147,679 4.39% Hero MotoCorp Ltd INR 28,246 185,043 5.50% Housing Development Finance Corp Ltd INR 4,573 227,657 6.76% ICICI Bank Ltd INR 9,406 157,483 4.68% Indian Hotels Co Ltd/The INR 37,362 141,538 4.21% Infosys Ltd INR 74,946 299,212 8.89% Larsen & Toubro Ltd INR 29,710 24,831 0.74% LIC Housing Finance Ltd INR 1,151 87,280 2.59% Lupin Ltd INR 1,415 113,809 3.38% NTPC Ltd INR 15,158 145,842 4.33% Oil & Natural Gas Corp Ltd INR 9,157 142,281 4.23% Power Grid Corp of India Ltd INR 63,363 115,449 3.43% PTC India Ltd INR 12,405 47,678 1.42% Shriram Transport Finance Co Ltd INR 34,375 44,439 1.32% State Bank of India INR 58,205 142,170 4.22% Tata Consultancy Services Ltd INR 44,421 153,452 4.56% Tata Motors Ltd INR 51,817 95,359 2.83% Tata Steel Ltd INR 38,817 2,165 0.06% Tata Steel Ltd INR 5,094 99,468 2.96% Wipro Ltd INR 34,375 153,642 4.57%

2,964,130 88.07%

Derivatives Forward currency contracts (Counterparty – BNY Mellon)

Purchase currency Amount Sale

currency Amount Settlement

date Fair value

USD % of NAV

EUR Institutional Class USD 4,714 EUR (3,999) 15-Oct-2018 64 0.00%

64 0.00%

Total unrealised gain on forward currency contracts 64 0.00%

Total derivatives 64 0.00%


Financial liabilities at fair value through profit or loss Derivatives

Purchase currency Amount Sale

currency Amount Settlement

date

Forward currency contracts (Counterparty – BNY Mellon) EUR Institutional Class EUR 122,865 USD (143,167) 15-Oct-2018 (321) (0.01%)

(321) (0.01%)

Total unrealised loss on forward currency contracts (321) (0.01%)

Total derivatives (321) (0.01%)

Total financial liabilities at fair value through profit or loss (321) (0.01%)

Cash and cash equivalents and other net assets 401,737 11.94%

Net assets attributable to holders of redeemable participating shares 3,365,610 100.00%


Transferable securities listed on an official stock exchange or dealt on another regulated market 85.64% OTC financial derivative instruments (0.01%) Other current assets 14.37%

100.00%


46

Statement of significant portfolio movements For the six month financial period ended 30 September 2018

The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the interim report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period.

ACPI Balanced UCITS Fund

Cost Purchases USD

First State China A Share Fund 6,900,000 Eastspring Investments - Asian High Yield Bond Fund 6,400,000 United States Treasury Note/Bond 1.25% 04/30/2019 4,954,000 Vontobel Fund - Emerging Markets Debt 4,800,000 Sector Capital Fund plc - Sector Healthcare Value Fund 4,700,000 Vanguard Consumer Staples ETF 3,000,445 Morgan Stanley Investment Funds-Global Brands Equity Income Fund 2,000,000 TT Asia Pacific Equity Fund 1,600,000 Kames Short Dated High Yield Global Bond Fund 1,500,000

Proceeds Sales USD

First State Global Umbrella PLC - Stewart Investors Worldwide Equity Fund 5,090,338 HERMES ASIA EX-JAPAN EQUITY FUND 4,800,000 J O Hambro Capital Management 4,344,649 Veritas Funds PLC - Global Equity Income Fund 3,754,409 Vulcan Value Equity Fund 3,400,000 Conventum - Lyrical Fund 761,833 ACPI Select UCITS Funds PLC - Q-ACPI India Equity UCITS Fund 400,000 Kames High Yield Global Bond 71,477

Due to trading volumes the above details all of the purchases and sales during the financial period. Financial derivative instruments are excluded from the above due to no cost being attributed to purchases and sales of such instruments.


47

Statement of significant portfolio movements (continued) For the six month financial period ended 30 September 2018

The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the interim report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period.

ACPI Horizon UCITS Fund

Cost Purchases USD

Brilliance China Core Long Short Fund 1,612,000 Xtrackers MSCI USA Consumer Staples UCITS ETF 1,490,635 Fresenius SE & Co KGaA 1,324,928 Italy Buoni Poliennali Del Tesoro 1,310,057 British American Tobacco PLC 1,162,204 Carnival Corp 985,271 Argentina Treasury Bill 0 10/12/2018 949,854 Samsonite International SA 818,183 AIA Group Ltd 575,076 Amatheon Financing BV 2.00% 07/31/2019 340,812 Wild Bunch AG 292,126 Noah Holdings Ltd 51,717

Proceeds Sales USD

United States Treasury Note/Bond 2.25% 11/15/2027 3,289,357 United States Treasury Note/Bond 2.75% 11/15/2047 3,288,319 Invesco KBW Bank ETF 1,495,537 Italy Buoni Poliennali Del Tesoro 1,337,199 Banco Bilbao Vizcaya Argentaria SA 1,025,108 VanEck Vectors Oil Services ET 888,693 METRO AG 869,979 ADLER Real Estate AG 782,744 Alphabet Inc 767,957 Randstad NV 681,861 British Airways Finance Jersey LP 533,612 Cemex SAB de CV 400,000 Wild Bunch AG 285,241 Due to trading volumes the above details all of the purchases and sales during the financial period. Financial derivative instruments are excluded from the above due to no cost being attributed to purchases and sales of such instruments.


48

Statement of significant portfolio movements (continued) For the six month financial period ended 30 September 2018

The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the interim report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Q-ACPI India Equity UCITS Fund

Cost Purchases USD

LIC Housing Finance Ltd 104,249 PTC India Ltd 59,292 Shriram Transport Finance Co Ltd 43,540 Tata Steel Ltd 5,229 Tata Motors Ltd 3,518 Wipro Ltd 3,446 ACC Ltd 241

Proceeds Sales USD

Tata Consultancy Services Ltd 307,485 Exide Industries Ltd 141,142 Infosys Ltd 121,263 Housing Development Finance Corp Ltd 118,543 Bajaj Auto Ltd 107,386 Hero MotoCorp Ltd 103,955 Indian Hotels Co Ltd/The 77,108 NTPC Ltd 71,811 ICICI Bank Ltd 69,374 State Bank of India 69,301 GAIL India Ltd 67,277 Oil & Natural Gas Corp Ltd 67,264 Cipla Ltd/India 65,209 Power Grid Corp of India Ltd 61,664 Wipro Ltd 61,583 Lupin Ltd 53,634 Tata Steel Ltd 42,490 Tata Motors Ltd 38,720 Larsen & Toubro Ltd 29,870 Due to trading volumes the above details all of the purchases and sales during the financial period. Financial derivative instruments are excluded from the above due to no cost being attributed to purchases and sales of such instruments.

Documents

Reports and Financial Statements - ACPI · 2019. 7. 3. · ACPI Select UCITS Funds plc 5 Investment Manager’s report (continued) For the six month financial period ended 30 September