Mandarine Equity Income

Annual report 31 December 2019

1 CONTENTS

MANAGEMENT REPORT ➢ Identification ➢ Performance ➢ Economic commentary ➢ Management commentary ➢ Outlook for 2020 ➢ Report on intermediary fees ➢ Information on financial instruments held in the portfolio and issued by the management company ➢ Information on voting policy ➢ Information on selection of intermediaries ➢ Global risk calculation methodology ➢ Information on taking into account ESG criteria in the investment policy ➢ Use of effective portfolio management techniques ➢ Remuneration policy ➢ Report on main portfolio movements ➢ SFTR

ANNUAL FINANCIAL STATEMENTS

ANNUAL FINANCIAL STATEMENTS - APPENDIX

STATUTORY AUDITOR’S CERTIFICATION

2 Risk profile: IDENTIFICATION Your money will primarily be invested in the financial instruments selected by the Management Company. Name: These instruments will be subject to market trends. The list Mandarine Equity Income (Formerly Fédéral Actions of risk factors set out below is not exhaustive. Rendement) The investor is primarily exposed to the following risks: Management objective: The objective of the Fund is to invest in a discretionary Capital risk: manner and outperform its benchmark index – the Investors should be aware that the performance of the STOXX® Europe 600 Net Return EUR index (dividends Fund may not be in line with its objectives and, because reinvested), over the recommended investment period of 5 the Fund is not capital protected or guaranteed, investors years. may not recover the full amount of their invested capital.

Benchmark index: Equity market risk: The Fund's performances are compared to the performance of The Fund is exposed to one or more equity markets that the STOXX® Europe 600 Net Return EUR Index. This index could experience substantial fluctuations. Equity risk is the global benchmark for the European markets. It is corresponds to a decline on the equity markets. As the composed of 600 securities selected from the 16 eurozone Fund is exposed to equities, the net asset value may countries and from the UK, Denmark, Switzerland, Norway and decline significantly. If the equity markets fall, the value of Sweden. Codes: ISIN: EU0009658210 Reuters: STOXXR; the portfolio may decline. Bloomberg: SXXR Index; the benchmark index is denominated in euros. Exchange-rate risk: This is the risk that fluctuations in foreign currencies could The performance of the STOXX® Europe 600 Net Return affect the value of securities held in the portfolio. The Fund EUR index includes dividends from the equities that may hold, either directly or via UCITS or AIFs, securities comprise said index: www.stoxx.com. denominated in a currency other than the Fund's designated currency. Therefore, fluctuations in exchange However, the Fund's objective is not to reproduce the rates could result in a lower net asset value. The exchange performance of this index in any manner. The Fund's risk may be hedged through derivatives. investments are made on the basis of criteria that could result in significant variations compared to the Interest-rate risk: performance of this index. Investments in companies are Given its management orientation, the Fund may be made on the basis of weightings that are not based on the exposed to interest rate risk. Interest rate risk is represented relative weighting of each company in the index. by fluctuations in the yield curve. The interest rate markets move in the opposite direction of interest rates. This risk Investment strategy: arises from the fact that, in general, the price of debt The Fund's investment strategy consists in selecting securities and bonds falls when interest rates rise. securities that offer returns equivalent to or higher than market returns and securities with significant potential in Credit risk: terms of dividend growth. Credit risk is the risk that the issuer cannot meet its commitments. Credit risk is limited to debt securities and The selection of securities is initially carried out using money-market instruments, which may not make up more quantitative criteria: securities are filtered from the than a maximum of 25% of assets. Investors are reminded universe of European equities using defined ratios such as that this risk may result in a decrease in the Fund's net yield (dividend divided by the share price), historical asset value. dividend growth, future dividend growth, pay-out (share of the profit distributed to shareholders), financial leverage Discretionary management risks: (net debt/EBITDA, net debt ratio, etc). This approach The discretionary management style applied by the Fund makes it possible to determine the investment universe of is based on the selection of securities and on the the portfolio. expectations of the different markets. There is a risk that Qualitative analysis is subsequently carried out for each the Fund may not be invested in the best-performing securities at all times. As a result, the Fund's performance company in the investment universe. Each security, without disregarding the sectoral and economic climate, is may be lower than the investment objective. Furthermore, therefore subject to an in-depth analysis to enable the the net asset value of the Fund may decline. Performance manager to assess its valuation potential, the quality of largely depends on the Fund Manager's ability to anticipate management, the company’s competitive position, its market movements. capital position, the creation of social and societal value, Political and exceptional risks: etc. Within this universe, the manager will then select These are any risks associated with a political or securities with high net returns (net dividend per geopolitical situation, a decision or lack of decision by the share/share price) and securities with a strong dividend political authorities or regional, national, transnational or growth potential. supranational administrative authorities: nationalisation The analysis will also cover the company's distribution without sufficient compensation, embargoes, protectionist policy and the durability of the dividend in relation to the measures, secessionist movements, exclusion of certain company's financial structure and its cash generation. markets, discriminatory taxation, resulting in lasting damage to public order and economic stability, etc. They The Fund management is discretionary and based on also include the risks of civil or foreign war (whether convictions. It allows for a high degree of autonomy in the declared or not), mines and all means of warfare, whether choice of investments and allows the portfolio to be or not related to the disintegration, fission or fusion of focused on a limited number of securities. Sectoral and nuclei of light atoms, piracy, capture, capture or detention geographical distribution may change at any time on a by any government or authority, riots, popular movements, discretionary basis, owing to forecast earning prospects. strikes, lockouts, acts of sabotage or terrorism.

The Fund does not use the exemption ratios stated in When such intrinsically unpredictable events occur, there Article R.214-22 of the Monetary and Financial Code. can be very significant financial consequences.

3 To a lesser extent, they are also exposed to the following As at 31 December 2019, the mutual fund is more than risks: 80.92% invested in securities eligible for equity savings plans (PEA in France). Emerging markets risk: The market practices and monitoring measures in the ECONOMIC COMMENTARY emerging markets may deviate from the standards prevailing on the large international markets: information on certain securities may be incomplete and liquidity may After a very delicate 2018 stock market year, the upturn in be lower. The performance of these securities may European equities in 2019 was particularly strong ... therefore be volatile. If the securities of the emerging despite a macro and micro-economic context that was markets fall, the net asset value of the Fund may fall. complicated, to say the least. Indeed, it is difficult to predict a more than 25-percent rise in markets with the leading Counterparty risk: economy in Europe at a standstill, the delays around The Fund is exposed to the counterparty risk that results Brexit, a mini-industrial recession and a lack of profit from the use of financial futures. Contracts for these growth for European companies in a context of outflows on financial instruments may be concluded with one or more equities from the old continent. Monetary policy is the main credit institution(s) that is/are not able to honour their cause of this excellent performance for risky assets. commitments under these instruments. Investors are reminded that this risk may decrease the Fund's NAV. At the end of one of the worst stock market quarters of the decade (Q4 2018), the start of 2019 caught many investors Risks linked to investments in small cap securities: by surprise. The Stoxx 600 index posted a performance of Given its management orientation, the Fund may be more than 16% in the first half of the year. The main exposed to small cap securities, which may carry liquidity reason for this was the dramatic reversal of monetary risk owing to their specific characteristics. Due to the policy in the United States. While 2018 ended with a new restricted nature of the market, the performance of such rate hike from the FED, the beginning of 2019 was an securities is more pronounced and may rise or fall sharply. opportunity for its Chairman, Jerome Powell, to adjust his This may result in an increase in the volatility of the net monetary policy position and adopt a markedly more asset value. accommodating tone, suggesting future rate cuts. The other central banks, notably the ECB, also made a shift in Recommended investment period: this direction. The equity markets then benefited from a Over 5 years strong revaluation.

Allocation of profit: The second semester was that of the implementation of Capitalisation mutual fund for I, R, L and F units; these monetary measures with three rate cuts in the distribution mutual for I(d), R(d), F(d) and M units. United States and one in the eurozone, accompanied by a resumption of asset purchase programmes by the Changes affecting the UCITS during 2019: European Central Bank before its President Mario Draghi's During the year under review, there were no changes to being replaced by Christine Lagarde. Equities continued to the prospectus. rise in the second semester with solid gains, although these gains were not as strong as in the first semester. Changes due in 2020: As of the writing of this report, the fund prospectus has MANAGEMENT COMMENTARY been updated to include the following information: - The statement that the Benchmark Administrator has or has not obtained Periods of sharp increases are rarely the most favourable registration under European BMR regulations for return strategies, which generally tend to spread market cycles both upwards and downwards. However, we opted and is entered in the register of administrators for purchases of more cyclical securities at the end of maintained by ESMA; 2018, which enabled us to take good advantage of this - The statement that the fund is actively managed favourable trend in the first semester. The main obstacle in accordance with the reference framework for the fund was the cash level in the portfolio gradually defined by ESMA in its Questions and Answers increasing alongside the upward trend. Our “companies 34-43-362 “Actively managed Fund”. with regular dividend growth” pillar exhibited the top performance, benefiting in particular from the strong outperformance of growth securities on Value Statutory auditor management. In this segment, UDG Healthcare, DSM, CABINET MAZARS IMA, SAP and LVMH securities were especially prominent. TOUR EXALTIS 61 RUE HENRI REGNAULT 92400 Among the main movements of the semester, we sold COURBEVOIE - FRANCE Electrolux, which reached our target price, as well as Daimler, which reduced its annual dividend. PERFORMANCE We especially took advantage of the large gap between growth stocks and Value companies to lower the first The annual report is for the 2019 financial year, which category (sale of DSM, Nestlé, Diageo) to the benefit of began on 1 January 2019 and ended on 31 December the second (purchase of Aperam, UPM Kymmene, 2019. Orange, Lagardère, ABN Amro).

MEI MEI_R MEI_M MEI_I This choice initially proved to be expensive during the Performance 2019 23.89% 25.79% 25.41% summer before ultimately reaping rewards from the 01/01/2019 96.87 101.78 106.63 beginning of September. In fact, a strong rotation was set 31/12/2019 120.01 128.03 133.73 up in favour of cyclical stocks and “Value” securities. Cyclical and inexpensive securities such as UPM Benchmark index STOXX® Europe 600 Net Return EUR: Kymmene, Prudential and Meggitt thus witnessed 26.82% increases of over 30%. Some portfolio companies were, however, severely punished after warnings on results Past performance is not indicative of future results. (Hugo Boss, Imerys, Publicis) and, as in the first semester,

4 uninvested cash reserves weighed heavily on the relative Since the end of the financial year, following a start to the performance of the portfolio. year marked by a slightly improving stock market environment, all funds have been impacted by the Covid- The main sales fall into two categories: a continuation of 19 crisis and the very brutal and sudden drop in the outflows from growth stocks no longer having any financial markets started on 19 February 2020. revaluation potential in our eyes (Geberit, Fielmann, Vinci, Essilor) and the sale of securities which no longer hold As of the date of writing of this document (31 March 2020), sufficient guarantees over maintaining their dividend the Fund has suffered from dips in line with the decreases (Renault, ABN Amro, Nordea). Contrary to this, the main experienced by the market. The relative performance of purchases were made on securities presenting a very low the fund compared to its Benchmark, however, remains risk with regard to their dividend due to the resilience of satisfactory. their activity (DCC, Danone), their solid balance sheet (KBC Group) or a combination of the two (La Française The Fund was affected by a dual phenomenon – the des Jeux, Amundi). Grandvision was purchased to place decline in the financial markets in addition to the part of our cash on a security undergoing a takeover bid. redemptions. The only certainty we have was encapsulated by President In the end, the fund achieved a very good annual Macron, when he said “The day to come will not be like the performance, albeit slightly lower than its benchmark index one before it.” but with less volatility. If we combine 2018 and 2019, the portfolio's risk-return ratio is very satisfactory and its REPORT ON INTERMEDIARY FEES competitive positioning is very good.

In accordance with the provisions of Article 321-122 of the OUTLOOK FOR 2020 General Regulations of the French Financial Markets Authority (AMF), the report on intermediary fees has been Due to the sharp rise in the equity markets in 2019 without made available to unit holders. The report is also available profit growth, the absolute valuation level of European on the website of the management company: equities can clearly no longer provide support. In a relative www.mandarine-gestion.com context, however, they still offer a return (notably through the dividend yield) that interest rate markets no longer INFORMATION ON FINANCIAL INSTRUMENTS HELD IN THE offer. Despite the rotation that occurred at the end of the PORTFOLIO AND ISSUED BY THE MANAGEMENT COMPANY summer, the performance and valuation gap between growth stocks and Value stocks still argues for a fairly value-oriented portfolio. However, as long as interest rates In accordance with the provisions of Article 321-131 of the remain exceptionally low, it is difficult to envisage a lasting General Regulations of the French Financial Markets change in the stock market regime. In addition, the boom Authority, we hereby inform you that during the period in ESG investment and the flows that accompany it may under review Mandarine Equity Income was not invested in render historical valuation references obsolete. We see UCITS managed by Mandarine Gestion. this in energy, with the strong revaluation of Utilities and, conversely, the exodus of investors from the oil sector. We INFORMATION ON THE VOTING POLICY are trying to manage these contradictory trends as proficiently as possible and we remain convinced that the relatively balanced sectoral composition of the portfolio In accordance with the provisions of Articles 321-132 and and its ability to rely on two complementary management 321-133 of the General Regulations of the Autorité des strategies (high dividend and dividend growth) should marchés financiers, the voting policy and report on the allow us to manoeuvre through these turbulent markets as conditions under which Mandarine Gestion exercised its successfully as possible. voting rights are available on the management company's website: www.mandarine-gestion.com Impact of the Coronavirus health crisis INFORMATION ON SELECTION OF INTERMEDIARIES At the time of writing, the health crisis that emerged in the Chinese region of Wuhan has spread across the globe. Classification of the management company: All governments have implemented stringent containment Mandarine Gestion has chosen to consider itself as a measures. They have placed many cities, regions and “professional client” and is asking its intermediaries countries in quarantine, closing many sites and deploying (brokers) to categorise it as such, thereby imposing a “best significant health resources. execution” obligation on them with regard to our company.

No one can predict when the peak of the COVID-19 Selection criteria for the best intermediaries in charge of epidemic will be reached or how many victims it will create. execution: As part of its “best selection” procedure, Mandarine However, we already know that its economic Gestion has used four key factors to select and make use consequences will be disastrous. Given that recession of the best brokers in charge of execution in order to seems inevitable, what compensatory mechanisms do guarantee the best possible level of performance. states have? One can predict what consequences this - Probability and speed of execution crisis will have. Recession is inevitable – both in Europe - Execution price and throughout the world. The cessation of business in - Access to cash (blocks, interest, counterparty, most economic sectors stands to put many people out of etc.) work. Many companies risk having to file for bankruptcy, which would trigger mass unemployment. - Quality of execution (including post trade and reporting) On 12 March 2020, the stock market had a record- breaking day…of decline. The main stock markets took These criteria are based on a qualitative analysis, hits of more than 25%. The lows are following one after the quantitative analysis and a technical rating by the middle other... office.

5 Criterion no. 1: Qualitative aspects: total price of the from Directive 2011/65/EU and Directive 2014/91/EU of transaction; access to places of execution that enable the the European Parliament and of the Council of 23 July best performance to be regularly achieved; connectivity; 2014 amending Directive 2009/65/EC on the coordination market technology; direct market access; etc. of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable Criterion no. 2: Quantitative aspect: execution performance securities (UCITS), as regards the functions of the measurement - TCA: depositary, remuneration policies and sanctions. Measurement of average execution performance (Trading Cost Analysis): all transactions undertaken during a Mandarine Gestion has remuneration policies and selection period, measured and compared to defined practices that are compatible with sound and efficient risk benchmarks (IS-TWAP, VWAP, etc.). management that does not promote or encourage excessive risk taking that is incompatible with the risk Criterion no. 3: Rating by middle office: quality of profiles, regulations and regulatory documents of UCIs, confirmations; quality of outcomes; management of namely the AIFs and UCITS in respect of which it acts as a outstandings, etc. management company.

Terms and frequency of selection of market brokers - These remuneration policies and practices are used in Brokers' review. various categories of personnel, including the senior Role of Broker Committee: Each half-year, the management, risk takers, persons exercising a position of management company reviews the brokers selected control, and all employees receiving a total remuneration during the previous half-year on the basis of the three situated in the same tranche of remuneration as the risk criteria mentioned above and decides which new brokers takers and the senior management, and whose to include on the shortlist of brokers selected for the professional activities have a substantial effect on the risk following half-year. profiles of managers and on the UCITS or AIFs that they The Broker Committee is responsible for: (i) selecting new manage. These remuneration policies and practices have brokers and (ii) rating the brokers on the basis of the three been tailored to the size of the internal organisation as well criteria. as to the nature, the scope and the complexity of Mandarine Gestion activities. For further information, please refer to: www.mandarine- gestion.com Remuneration of the staff of Mandarine Gestion comprises the following components: GLOBAL RISK CALCULATION METHODOLOGY Firstly, fixed remuneration whose quantum is set at the market price. It has been confirmed that the fixed The Commitment Approach was used to calculate the remuneration falls in line with the market through salary global risk in accordance with methodology guide studies and benchmarking with competing companies. CESR/10-788 included in AMF instruction 2011-15. This remuneration is accorded individually and specified in the employment contract of each employee. This fixed remuneration is essentially the measure of the collective INFORMATION ON TAKING INTO ACCOUNT ESG CRITERIA IN agreement adhered to by the management company and THE INVESTMENT POLICY is consistent with the noted levels of remuneration for asset management based on the positions occupied. This The information on taking account of ESG criteria in fixed remuneration may be reviewed. The main indicators investment policy can be found on the website of the for review relate to effectiveness in the performance of the management company at the following address: tasks and assignments entrusted with the employee, www.mandarine-gestion.com and/or changes in the labour market or inflation.

The mutual fund does not systematically take into account Secondly, variable remuneration whose quantum comes in ESG criteria as defined in Decree No. 2012-132. addition to the amount of fixed remuneration. The quantum component depends on the implementation of company In addition to 4 SRI labelled funds and the management of aims (VSTR “Vision, Strategy, Tactics, Results”) and 2 solidarity capital funds, Mandarine Gestion has, individual objectives. Variable remuneration is not however, developed a global approach to integrating guaranteed, except in the case of a newly hired employee Environmental, Social and Governance (ESG) issues. and exclusively for their first year of employment, without Unlike SRI management, which systematically takes extra- any tacit renewal. This is not general practice. The financial criteria into account in its investment process, the assignment of variable remuneration is, in all cases, integration of ESG corresponds to a global policy carried conditional upon the financial situation of the company and out across all of the funds. Extra-financial information on the employee's participation in the company's provides a complementary analysis of the companies development. Mandarine Gestion may choose to give monitored by the fund managers. Our objective is to offer a supplementary remuneration in the form of discretionary transversal vision of ESG issues to all of the management bonuses on the basis of criteria that are wholly unrelated to team as a complement to financial analysis. the performance of the UCIs managed or the taking of risk. The assignment of variable remuneration is discretionary USE OF EFFECTIVE PORTFOLIO MANAGEMENT TECHNIQUES and is in no way based on any pre-established quantitative formula. Finally, an incentive scheme and a profit-sharing agreement have been set up for a period of three years, The UCITS did not use efficient portfolio management renewable from one year to the next by tacit renewal. techniques in the sense of Directive 2009/65/EC during the Concerning other similar benefits: As at 31 December financial year under review. 2019, no benefits in kind (company car, fuel allowance or other) were granted to the management company's staff. REMUNERATION POLICY The remuneration policy will be updated should the Management Company give its employees a benefit in kind. However, the management company may reimburse The risk profile for UCIs and the features of Mandarine employees for business costs to the nearest euro (taxi Gestion as an AIFM and UCITSM justify a proportionate fares, meals, etc.) in the form of an expense account implementation of the remuneration principles resulting validated by the Deputy Managing Director. It may be the

6 case that upon the departure of an employee from the REPORT ON MAIN PORTFOLIO MOVEMENTS company (contractual termination, dismissal), the employee could receive compensation under the conditions set out in the Labour Code and the collective Main purchase: LA FRANCAISE DES JEUX SAEM agreement applicable to the Management Company. This €838,128.30 compensation is not detailed here, since it arises from Main sale: ABN AMRO GROUP NV-CVA €-851,052.41 labour law and the collective bargaining agreement and is in no way related to the work undertaken by the employee. With a view to preserving the interests of its unitholders, SECURITIES FINANCING TRANSACTION REGULATION (SFTR) the Management Company does not make a practice of remunerating its employees via a Carried Interest mechanism. The AIFs managed by the Management During the financial year under review, the Fund did not Company do not offer Carried Interest units to PMC perform any securities financing transaction operations managers and/or employees. As such, this type of covered by the SFTR, i.e. repurchase transactions, remuneration is not included in this Mandarine Gestion securities/commodities lending/borrowing, buy/sell back or remuneration policy. sell/buy transactions, margin lending transactions and total return swaps (TRS). Hence, under EU Directive 2011/61 Level I (Article 13 and Annex II) of 8 June 2011, the AIMF Directive, of Delegated Regulation 231/2013, Level II (Article 107) of 19 December 2012, ESMA Guidance on the Remuneration Policies of AIF managers of 3 July 2013 and EU Directive 2014/91 of the European Parliament and of the Council of 23 July 2014 amending EC Directive 2009/65 on the coordination of legal, regulatory and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), as regards the functions of depositary, remuneration policies and sanctions, ESMA Guidelines of 14 October 2016 (ESMA/2016/575 – Guidelines on sound remuneration policies under the UCITS Directive) as well as provisions such as those arising from national transposition texts as applicable in the French Republic, namely Art. L.533-22-2 CMF and Articles 319-10 and 319- 11 RG AMF as well as AMF Position 2013-11 on the remuneration policies applicable to AIFMs and the AMF guide entitled “UCITS V Guide for management companies”, the total amount of gross remuneration for the financial year 2019 that began on 1 January 2019 and ended on 31 December 2019, for the staff of the management company Mandarine Gestion, was €6,607,000, being broken down into €4,175,000 in fixed remuneration and €2,432,000 in variable remuneration for that financial year. These sums relate to 41 beneficiaries and the variable remuneration will be paid in the financial years following the financial year under review. Regarding the personnel listed in Article 533-22-2 of the CMF – i.e. 30 out of 41 persons – remuneration is broken down at the rate of €3,454,000 for the fixed portion and €2,131,000 for the variable portion. It should be noted that neither the UCI nor any of the UCIs for which the management company carries out management duties during the financial year under review disbursed any remuneration to its managers as a percentage of the performance achieved by an investment fund (carried interests). Similarly, it should be noted that the fixed and variable remuneration mentioned above concerns 41 employees of the management company, 30 of whom appear on the list of beneficiaries in Article L.533-22-2 of the CMF. Secondly, this remuneration also has a bearing on the remuneration of employees involved in the management of AIFs and UCITS.

MAZARS

Mutual Fund MANDARINE EQUITY INCOME

Statutory Auditor’s report on the annual financial statements Financial year ending 31 December 2019

MAZARS

61, rue Henri Regnault - 92075 Paris La Défense Cedex Tel.: +33 (0)1 49 97 60 00 - Fax: +33 (0)1 49 97 60 01 Public Limited Company of Chartered Accountants and Statutory Auditors with Management Board and Supervisory Board Share capital of 8,320,000 euros - RCS Nanterre 784 824 153 - Registered office: 61, rue Henri Regnault - 92400 Courbevoie

Mutual Fund MANDARINE EQUITY INCOME

40, avenue George V 75008 Paris

Statutory Auditor’s report on the annual financial statements

Financial year ending 31 December 2019

Mutual Fund Statutory Auditor’s report on the annual MANDARINE financial statements EQUITY INCOME Financial year ending 31 December 2019

To FCP MANDARINE EQUITY INCOME unitholders,

Audit opinion

While carrying out the duties entrusted to us by the management company, we conducted an audit of the annual financial statements of the MANDARINE EQUITY INCOME mutual fund, established as a mutual fund, for the financial year ending 31 December 2019, as enclosed with this report. We certify that the annual financial statements are, in conformity with French accounting rules and principles, accurate and consistent and give a true and fair view of the financial performance of the previous financial year and the assets of the mutual fund at the end of that financial year.

Basis for the opinion

Audit standards We conducted our audit in accordance with the standards of professional practice applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The responsibilities incumbent upon us as a result of these norms are laid out in the section of this report entitled “Responsibility of the statutory auditor concerning the audit of the annual financial statements”.

Independence

We undertook our auditing duties in full compliance with the applicable independence requirements from the period from 1 January 2019 up to the date of releasing this report, and we did not provide any services prohibited by the professional code of ethics for statutory auditors.

Mutual Fund Justification of our assessments MANDARINE EQUITY INCOME Pursuant to the provisions of Articles L.823-9 and R.823-7 of the Commercial Code Financial year ending 31 December 2019 concerning the justification of our assessments, we hereby inform you that in our professional opinion, the most important assessments that we made related to the adequacy of the accounting principles applied, with particular regard to the financial instruments in the portfolio and the overall presentation of the financial statements, regarding the accounting principles of undertakings for investment with variable capital.

The assessments made are a part of our process of auditing the annual financial statements, taken in their entirety, and the formulation of our opinion expressed above. We therefore do not express any opinion on elements of these annual financial statements taken in isolation.

Specific checks

We also carried out, in accordance with professional standards applicable in France, the specific checks required by the required by legal and regulatory texts.

We have no comment to make on the genuineness and consistency of the information in the management report established by the management company, in relation to the annual financial statements.

Responsibilities of management and those charged with corporate governance for the annual financial statements The management company is required to generate annual financial statements that give a true account in accordance with French rules and principles of accounting, as well as to implement any internal controls that it deems necessary in order to generate annual financial statements that are free from material misstatements, regardless of whether these are due to fraud or error. When generating the annual financial statements, it is the management company's responsibility to evaluate the mutual fund's capacity for continued operation, to present the necessary information relating to continuity of operation in its financial statements, where applicable and to apply the accounting convention of continuity of operation, unless it envisages liquidating the mutual fund or ceasing its activity. The annual financial statements were approved by the management company.

Responsibilities of the statutory auditor relating to the audit of the annual financial statements We are required to generate a report on the annual financial statements. We aim to obtain reasonable assurance that the annual financial statements taken as a whole do not contain material misstatements. Reasonable assurance means a high level of

Mutual Fund assurance without in any way guaranteeing that an audit conducted in accordance with MANDARINE EQUITY INCOME the standards of professional conduct can systematically detect all material Financial year ending misstatements. Misstatements may result from fraud or error and are viewed as 31 December 2019 material if it can reasonably be assumed that taken individually or jointly they could influence any economic decisions made by users on the basis of these annual financial statements. As stated in Article L.823-10-1 of the Commercial Code, our accounts certification assignment does not consist in guaranteeing the viability or the quality of the management of your mutual fund.

In the context of an audit carried out in accordance with the standards of applicable professional practice in France, the statutory auditor exercises their professional judgement throughout the audit. In addition:

• they identify and evaluate the risks of material misstatements in the annual financial statements resulting from fraud or error, define and implement audit procedures in response to these risks and obtain such audit evidence as they deem sufficient and adequate as a basis for their opinion. The risk of failing to detect material misstatements is greater in the case of fraud than with errors, since fraud may involve collusion, falsification, intentional omission of information, misleading information, or the bypassing of internal controls;

• they gain an understanding of the internal control system that is relevant to the audit in order to lay down audit procedures that are appropriate under the circumstances rather than with a view to giving an opinion on the efficacy of the internal control system;

• they assess the adequacy of the accounting policies used and the reasonableness of the accounting estimates and related disclosures made by management in the annual financial statements;

• they assess how suitably the management company applied the accounting convention of continuity of operation and, according to the information gathered, whether there is any significant uncertainty connected to events or circumstances that might endanger the mutual fund's capacity for continued operation. This assessment is based on evidence gathered up to the date of this report, while bearing in mind that subsequent circumstances or events could also call the continuity of the operation into question. Should they determine that significant uncertainty exists, they draw the attention of those reading the report to the information provided in the annual financial statements regarding this uncertainty or, if such information is not provided and/or pertinent, they issue certification with reservations or a refusal to issue said certification;

Mutual Fund • they assess the overall presentation of the annual financial statements and MANDARINE EQUITY INCOME evaluate whether the annual financial statements reflect the operations and underlying events so as to give a true image thereof. Financial year ending 31 December 2019

Drawn up in Courbevoie, 23 April 2020

The Statutory Auditor

Mazars:

Gilles DUNAND-ROUX

MANDARINE EQUITY INCOME

Balance sheet assets

Financial year Financial year 31/12/2019 31/12/2018

Net fixed assets - - Deposits - - Financial instruments 50,815,312.50 38,634,945.90 Equities and similar securities 45,946,792.94 38,634,945.90 Negotiated on a regulated or similar market 45,946,792.94 38,634,945.90 Not traded on a regulated or similar market - - Bonds and similar debt securities - - Negotiated on a regulated or similar market - - Not traded on a regulated or similar market - - Debt securities - - Traded on a regulated or similar market – Negotiable debt securities - - Traded on a regulated or similar market – Other debt securities - - Not traded on a regulated or similar market - - Securities of undertakings for collective investment 4,868,519.56 - General purpose UCITS and AIFs for non-professionals and equivalents in other 4,868,519.56 - Member States of the European Union

Other funds for non-professionals and equivalents in other Member States of the - - European Union General purpose professional funds and equivalents in other Member States of the European Union and listed securitisation agencies - - Other professional investment funds and equivalents in other Member States of the European Union and unlisted securitisation agencies - - Other non-European agencies - - Temporary securities transactions - -

Receivables representing securities under repurchase agreements - - Receivables representing loaned securities - - Securities borrowed - - Securities loaned under repurchase agreements - - Other temporary transactions - - Financial futures instruments - - Transactions on a regulated or similar market - - Other transactions - - Other financial instruments - -

Receivables 56,046.90 45,039.11 Forward exchange transactions - - Other 56,046.90 45,039.11 Financial accounts 1,369,288.27 1,941,327.21

Cash 1,369,288.27 1,941,327.21 TOTAL ASSETS 52,240,647.67 40,621,312.22

Annual report as at 31 December 2019 5

MANDARINE EQUITY INCOME

Balance sheet liabilities

Financial year Financial year 31/12/2019 31/12/2018

Equity capital - - Capital 48,379,296.49 24,245,531.27 Prior undistributed net gains and losses (a) 2,161.52 12,793,925.31 Retained earnings (a) 1,144.61 1,339,525.61 Net gains and losses for the financial year (a,b) 2,276,260.48 1,240,627.64 Income in the financial year (a,b) 1,172,099.68 969,521.47

Total equity capital (= Amount representing net assets) 51,830,962.78 40,589,131.30

Financial instruments - -

Sale transactions on financial instruments - -

Temporary securities transactions - - Payables representing securities loaned under repurchase agreements - - Payables representing borrowed securities - - Other temporary transactions - - Financial futures instruments - - Transactions on a regulated or similar market - - Other transactions - -

Debts 409,684.89 32,180.92 Forward exchange transactions - -

Other 409,684.89 32,180.92

Financial accounts - - Current bank overdrafts - -

Loans - -

TOTAL LIABILITIES 52,240,647.67 40,621,312.22

(a) Including adjustment accounts. (b) Less interim payments made during the financial year.

Annual report as at 31 December 2019 6

MANDARINE EQUITY INCOME

Off-balance sheet

Financial year Financial year 31/12/2019 31/12/2018

Hedging transactions

Positions on regulated or similar markets

Over-the-counter positions

Other positions

Other transactions

Positions on regulated or similar markets

Over-the-counter positions

Other positions

Annual report as at 31 December 2019 7

MANDARINE EQUITY INCOME

Profit and loss account

Financial year Financial year 31/12/2019 31/12/2018

Income from financial transactions

Profit on equities and similar securities 1,496,796.18 1,283,357.23

Profit on bonds and similar securities - -

Profit on debt securities - -

Profit on temporary purchase and sale of securities - -

Profit on financial futures - -

Income from deposits and financial accounts 35.39 896.37

Other financial income - -

TOTAL I 1,496,831.57 1,284,253.60

Expenses from financial transactions

Charges on temporary purchase and sale of securities - -

Charges on financial futures - -

Charges on financial debts -10,813.38 -9,095.88

Other financial expenses - -

TOTAL II -10,813.38 -9,095.88

Profit or loss on Financial Operations (I + II) 1,486,018.19 1,275,157.72

Other profit (III) - -

Management fees and depreciation and amortisation (IV) -315,743.85 -301,649.73

Net profit or loss for the financial year (I + II + III + IV) 1,170,274.34 973,507.99

Adjustment of income for the year (V) 1,825.34 -3,986.52

Payments on account on profit or loss paid during the financial year (VI) - -

Profit or loss (I + II + III + IV + V + VI) 1,172,099.68 969,521.47

Annual report as at 31 December 2019 8

MANDARINE EQUITY INCOME

Accounting principles

The annual financial statements are presented in the form provided by ANC regulation no. 2014-01, as amended.

The accounting currency is the euro.

All transferable securities in the portfolio are recorded at acquisition cost, excluding any fees.

Futures and options held in the portfolio denominated in foreign currencies are converted to the accounting currency based on exchange rates in Paris on the valuation day.

The portfolio is valued at each net asset value calculation and at the end of the accounting period, according to the following methods:

Transferable securities

Listed securities: at stock market value – including accrued coupons (at the daily closing price) However, transferable securities whose price is not established on the valuation day or listed by the contributors and whose price has been adjusted, and securities that are not traded on a regulated market, are valued under the responsibility of the management company (or board of directors for a Sicav) at their probable trading value. Prices are adjusted by the management company based on its knowledge of the issuers and/or markets.

UCIs: at their last published net asset value or, if such value is unavailable, at their last estimated value. The net asset values of the securities of foreign undertakings for collective investment that are valued on a monthly basis are confirmed by the fund administrators. The valuations are updated weekly on the basis of estimates notified by the administrators of these UCIs and validated by the fund manager.

ETFs: at their last published net asset value or, if such value is unavailable, at their last estimated value.

Negotiable debt securities and similar securities that are not subject to significant transactions are valued using the actuarial method at a rate applicable to issues of equivalent securities, and where applicable assigned a variance representative of the intrinsic characteristics of the issuer.

EMTNs are measured at their market value, based on prices provided by counterparties. These measurements are subject to review by the management company.

Financial futures and options

Futures: the day’s settlement price. The off-balance sheet valuation is calculated based on the nominal value, the settlement price and, where applicable, the exchange rate.

Options: daily closing price, or, in its absence, the last known price. OTC options: these options are measured at their market value, based on prices provided by counterparties. These measurements are subject to review by the management company. The off-balance sheet valuation is calculated based on the underlying equivalent, as a function of the delta and the price of the underlying, and where applicable the exchange rate.

Term deposits are recorded and valued at nominal value, even when they have a maturity of more than three months. Accrued interest is added to this amount. However, certain contracts contain specific conditions if early repayment is requested so that the effect of the increase in the financing curve of the counterparty is taken into account. Accrued interest can therefore be reduced by this impact, without being negative. The term deposits are therefore valued at least at their nominal value.

Annual report as at 31 December 2019 9

MANDARINE EQUITY INCOME

Financial management fees and Administrative fees external to the Management Company

- 0.60 % maximum for M units (incl. tax) - 0.90 % maximum for I and ID units (incl. tax) - 2.20 % maximum for R and RD units (incl. tax) - 1.10 % maximum for F and FD units (incl. tax)

The allocation is calculated on the basis of the net assets. These fees, not including transaction fees, will be charged directly to the Fund’s income statement.

These fees cover all the expenses charged to the UCI, with the exception of transaction fees. Transaction costs include intermediary costs (brokerage, stock-exchange taxes, etc.) and, if applicable, the transaction fee that may be charged in particular by the depositary and the management company.

Outperformance fee

15% of the outperformance over the STOXX® Europe 600 NR

The outperformance fee is a variable fee. The period for calculating the outperformance fee is the Fund's financial year. For each calculation of the net asset value, the Fund's outperformance is defined as the positive difference between the Fund's net assets before taking into account any provisions for outperformance fees and the net assets of a notional UCITS generating the benchmark performance and recording the same subscription and redemption pattern as the actual Fund.

Each time the NAV is determined, the outperformance fee, set at 15% (including taxes) of any performance above that of the STOXX® Europe 600 Net Return EUR (dividends reinvested), is subject to a provision or a write-back within the limits of the existing provision. Such a provision can only be approved if the net asset value, after taking into account any provision for an outperformance fee, is greater than the net asset value at the beginning of the financial year. In the case of redemptions, the share of the outperformance fee corresponding to the redeemed units is set by the Management Company. With the exception of redemptions, the outperformance fee is set by the Management Company at the closing date of each calculation period. Investors may obtain a description of the method used for calculating the outperformance fee from the Management Company. The first period will start when the financial year begins on 1 January 2018.

Commission-sharing of management fees

None

Interest accounting method

Interest paid in

Allocation of profit and loss

F units: Capitalisation FD units: Capitalisation and/or distribution and/or carry forward I units: Capitalisation ID units: Capitalisation and/or distribution and/or carry forward M units: Capitalisation and/or distribution and/or carry forward R units: Capitalisation RD units: Capitalisation and/or distribution and/or carry forward

Annual report as at 31 December 2019 10

MANDARINE EQUITY INCOME

Allocation of capital gains realised

F units: Capitalisation FD units: Capitalisation and/or distribution I units: Capitalisation ID units: Capitalisation and/or distribution M units: Capitalisation and/or distribution R units: Capitalisation RD units: Capitalisation and/or distribution

Changes affecting the fund:

04/07/2019: creation of ID units 25/01/2019: creation of F units 04/07/2019: creation of FD units 04/07/2019: creation of RD units

Annual report as at 31 December 2019 11

MANDARINE EQUITY INCOME

Changes in net assets

Financial year Financial year 31/12/2019 31/12/2018

Net assets at the beginning of the financial year 40,589,131.30 47,014,189.36

Subscriptions (including subscription fees paid to the UCI) 1,686,681.07 209,531.12

Redemptions (after deduction of redemption fees paid to the UCI) -966,167.20 -3,234,971.11

Capital gains realised on deposits and financial instruments 4,121,415.02 2,430,072.89

Capital losses realised on deposits and financial instruments -1,639,182.86 -1,022,528.48

Capital gains realised on financial futures - -

Capital losses realised on financial futures - -

Transaction fees -272,670.49 -119,653.11

Exchange-rate differences 66,354.48 -36,675.26

Variances of the valuation differences on deposits and financial instruments 7,075,127.12 -5,624,342.10

Valuation difference for financial year N 3,357,348.86 -3,717,778.26

Valuation difference for financial year N-1 3,717,778.26 -1,906,563.84

Variances of the valuation differences from financial futures - -

Valuation difference for financial year N - -

Valuation difference for financial year N-1 - -

Distribution over the previous financial year and net capital gains and losses - -

Distribution from the previous financial year on profit or loss - -

Net income for the financial year before accruals and deferred income 1,170,274.34 973,507.99

Prepayments made during the financial year on net capital gains and losses - -

Prepayments made during the financial year on profit or loss - -

Other items - -

Net assets at the end of the financial year 51,830,962.78 40,589,131.30

Annual report as at 31 December 2019 12

MANDARINE EQUITY INCOME

Additional information 1

Financial year 31/12/2019 Commitments received or given

Commitments received or given (capital guarantee or other commitments) (*) -

Current value of financial instruments in the portfolio representing collateral

Financial instruments received in surety and not recorded on the balance sheet -

Financial instruments given in surety and maintained under their original item -

Financial instruments in the portfolio issued by the provider or its affiliates

Deposits -

Shares -

Interest-bearing securities -

UCI 4,868,519.56

Temporary purchases and sales of securities -

Swaps (in nominal) -

Present value of financial instruments borrowed

Securities acquired under repurchase agreements -

Securities lent -

Securities borrowed -

(*) For guaranteed UCI, the information is given in the accounting principles

Annual report as at 31 December 2019 13

MANDARINE EQUITY INCOME

Additional information 2 Financial year 31/12/2019

Issues and redemptions during the financial year Number of securities Category of class I (Currency: EUR)

Number of D securities issued 500.0000

Number of D securities redeemed -

Number of C securities issued -

Number of C securities redeemed -

Category of class F (Currency: EUR)

Number of D securities issued 500.0000

Number of D securities redeemed -

Number of C securities issued 3,875.8900

Number of C securities redeemed -

Category of class M (Currency: EUR)

Number of securities issued -

Number of securities redeemed -

Category of class R (Currency: EUR)

Number of D securities issued 500.0000

Number of D securities redeemed -

Number of C securities issued 10,382.8410

Number of C securities redeemed 8,850.2202 Subscription and/or redemption fees Amount (EUR)

Subscription fees paid to the UCI -

Redemption fees paid to the UCI -

Subscription fees received and retroceded -

Redemption fees received and retroceded - % of average net Management fees Amount (EUR) assets

Category of class I (Currency: EUR)

Operating and management fees (*) 334.92 0.90

Outperformance fees - -

Other fees - -

Category of class R (Currency: EUR)

Operating and management fees (*) 46,577.47 2.20

Outperformance fees 0.51 -

Other fees - -

Category of class F (Currency: EUR)

Operating and management fees (*) 4,550.07 1.10

Outperformance fees - -

Other fees - -

Annual report as at 31 December 2019 14

MANDARINE EQUITY INCOME

% of average net Management fees Amount (EUR) assets

Category of class M (Currency: EUR)

Operating and management fees (*) 264,280.88 0.60

Outperformance fees - -

Other fees - -

Commission-sharing of management fees (all units together) -

(*) For UCI whose financial year is not equal to 12 months, the percentage of average net assets is the average annualised rate.

Annual report as at 31 December 2019 15

MANDARINE EQUITY INCOME

Breakdown by type of receivable and payable

Financial year 31/12/2019 Breakdown by type of receivable -

Deposit - euros -

Deposit - other currencies -

Cash collateral -

Valuation of currency futures purchases -

Countervalue of futures sales -

Other debtors 31,008.23

Interest receivable 25,038.67

TOTAL RECEIVABLES 56,046.90

Breakdown by type of payable -

Deposit - euros -

Deposit - other currencies -

Cash collateral -

Provision for borrowing expenses -

Valuation of currency futures sales -

Countervalue of futures purchases -

Fees and expenses not yet paid 30,447.53

Other creditors 379,237.36

Provision for market liquidity risk -

TOTAL PAYABLES 409,684.89

Annual report as at 31 December 2019 16

MANDARINE EQUITY INCOME

Breakdown by legal and economic nature of instrument

Financial year 31/12/2019

Assets

Bonds and similar debt securities -

Indexed bonds -

Convertible bonds -

Participation notes -

Other bonds and similar securities -

Debt securities -

Traded on a regulated or similar market -

Treasury bonds -

Others negotiable debt securities -

Other debt securities -

Not traded on a regulated or similar market -

Liabilities

Sale transactions on financial instruments -

Shares -

Bonds -

Other -

Off-balance sheet

Hedging transactions

Rate -

Shares -

Other -

Other transactions

Rate -

Shares -

Other -

Annual report as at 31 December 2019 17

MANDARINE EQUITY INCOME

Breakdown by type of rate for assets, liabilities and off-balance sheet items

Fixed rate Variable rate Adjustable rate Other

Assets

Deposits - - - -

Bonds and similar debt securities - - - -

Debt securities - - - -

Temporary securities transactions - - - -

Financial accounts - - - 1,369,288.27

Liabilities

Temporary securities transactions - - - -

Financial accounts - - - -

Off-balance sheet

Hedging transactions - - - -

Other transactions - - - -

Annual report as at 31 December 2019 18

MANDARINE EQUITY INCOME

Breakdown by residual maturity for assets, liabilities and off- balance sheet items

[3 months - [0 - 3 months] [1-3 years] [3-5 years] > 5 years 1 year]

Assets

Deposits - - - - -

Bonds and similar debt securities - - - - -

Debt securities - - - - -

Temporary securities transactions - - - - -

Financial accounts 1,369,288.27 - - - -

Liabilities

Temporary securities transactions - - - - -

Financial accounts - - - - -

Off-balance sheet

Hedging transactions - - - - -

Other transactions - - - - -

Annual report as at 31 December 2019 19

MANDARINE EQUITY INCOME

Breakdown by listing currency for assets, liabilities and off-balance sheet items

GBP CHF NOK SEK DKK

Assets

Deposits - - - - -

Equities and similar securities 9,262,418.68 4,000,758.20 2,394,704.98 818,525.51 513,256.33

Bonds and similar debt securities - - - - -

Debt securities - - - - -

UCI securities - - - - -

Temporary securities transactions - - - - -

Other financial instruments - - - - -

Receivables 25,038.67 - - - -

Financial accounts 823.64 - - - -

Liabilities

Sale transactions on financial instruments - - - - -

Debts - - - - -

Temporary securities transactions - - - - -

Financial accounts - - - - -

Off-balance sheet

Hedging transactions - - - - -

Other transactions - - - - -

Only the five currencies with the most representative values of the net assets are included in this table.

Annual report as at 31 December 2019 20

MANDARINE EQUITY INCOME

Allocation of profit and loss

Category of class M (Currency: EUR)

Allocation table for distributable amounts related to profit or loss

Financial year Financial year 31/12/2019 31/12/2018

Amounts remaining to be allocated

Balance carried forward 1,144.61 1,339,525.61

Result 1,139,931.36 956,202.20

Total 1,141,075.97 2,295,727.81

Allocation

Distribution - -

Balance carried forward for the financial year 1,141,075.97 -

Capitalisation - 2,295,727.81

Total 1,141,075.97 2,295,727.81

Information relating to securities with distribution rights

Number of securities - -

Unit distribution - -

Tax credits and tax assets related to distribution of income

Total amount of tax credits

originating in financial year - -

originating in financial year N-1 - -

originating in financial year N-2 - -

originating in financial year N-3 - -

originating in financial year N-4 - -

Annual report as at 31 December 2019 21

MANDARINE EQUITY INCOME

Allocation table: amounts related to net capital gains and losses

Financial year Financial year 31/12/2019 31/12/2018

Amounts remaining to be allocated

Prior undistributed net gains and losses (a) 2,161.52 12,793,925.31

Net gains and losses for the financial year 2,146,508.00 1,185,373.41

Adjustments paid for the net gains and losses for the financial year - -

Total 2,148,669.52 13,979,298.72

Allocation

Distribution - -

Undistributed net gains and losses - -

Capitalisation 2,148,669.52 13,979,298.72

Total 2,148,669.52 13,979,298.72

Information relating to securities with distribution rights

Number of securities - -

Unit distribution - -

Annual report as at 31 December 2019 22

MANDARINE EQUITY INCOME

Category of class I (Currency: EUR)

Allocation table for distributable amounts related to profit or loss

Financial year Financial year 31/12/2019 31/12/2018

Amounts remaining to be allocated

Balance carried forward - -

Result 392.39 271.21

Total 392.39 271.21

Allocation

Distribution 115.00 -

Balance carried forward for the financial year 1.28 -

Capitalisation 276.11 271.21

Total 392.39 271.21

Information relating to securities with distribution rights

Number of securities 500.00 -

Unit distribution 0.23 -

Tax credits and tax assets related to distribution of income

Total amount of tax credits

originating in financial year - -

originating in financial year N-1 - -

originating in financial year N-2 - -

originating in financial year N-3 - -

originating in financial year N-4 - -

Annual report as at 31 December 2019 23

MANDARINE EQUITY INCOME

Allocation table: amounts related to net capital gains and losses

Financial year Financial year 31/12/2019 31/12/2018

Amounts remaining to be allocated

Prior undistributed net gains and losses (a) - -

Net gains and losses for the financial year 1,598.68 356.29

Adjustments paid for the net gains and losses for the financial year - -

Total 1,598.68 356.29

Allocation

Distribution - -

Undistributed net gains and losses - -

Capitalisation 1,598.68 356.29

Total 1,598.68 356.29

Information relating to securities with distribution rights

Number of securities - -

Unit distribution - -

Annual report as at 31 December 2019 24

MANDARINE EQUITY INCOME

Category of class R (Currency: EUR)

Allocation table for distributable amounts related to profit or loss

Financial year Financial year 31/12/2019 31/12/2018

Amounts remaining to be allocated

Balance carried forward - -

Result 22,773.53 13,048.06

Total 22,773.53 13,048.06

Allocation

Distribution - -

Balance carried forward for the financial year - -

Capitalisation 22,773.53 13,048.06

Total 22,773.53 13,048.06

Information relating to securities with distribution rights

Number of securities - -

Unit distribution - -

Tax credits and tax assets related to distribution of income

Total amount of tax credits

originating in financial year - -

originating in financial year N-1 - -

originating in financial year N-2 - -

originating in financial year N-3 - -

originating in financial year N-4 - -

Annual report as at 31 December 2019 25

MANDARINE EQUITY INCOME

Allocation table: amounts related to net capital gains and losses

Financial year Financial year 31/12/2019 31/12/2018

Amounts remaining to be allocated

Prior undistributed net gains and losses (a) - -

Net gains and losses for the financial year 107,028.87 54,897.94

Adjustments paid for the net gains and losses for the financial year - -

Total 107,028.87 54,897.94

Allocation

Distribution - -

Undistributed net gains and losses - -

Capitalisation 107,028.87 54,897.94

Total 107,028.87 54,897.94

Information relating to securities with distribution rights

Number of securities - -

Unit distribution - -

Annual report as at 31 December 2019 26

MANDARINE EQUITY INCOME

Category of class F (Currency: EUR)

Allocation table for distributable amounts related to profit or loss

Financial year 31/12/2019

Amounts remaining to be allocated

Balance carried forward -

Result 9,002.40

Total 9,002.40

Allocation

Distribution 65.00

Balance carried forward for the financial year 1.08

Capitalisation 8,936.32

Total 9,002.40

Information relating to securities with distribution rights

Number of securities 500.00

Unit distribution 0.13

Tax credits and tax assets related to distribution of income

Total amount of tax credits

originating in financial year -

originating in financial year N-1 -

originating in financial year N-2 -

originating in financial year N-3 -

originating in financial year N-4 -

Annual report as at 31 December 2019 27

MANDARINE EQUITY INCOME

Allocation table: amounts related to net capital gains and losses

Financial year 31/12/2019

Amounts remaining to be allocated

Prior undistributed net gains and losses (a) -

Net gains and losses for the financial year 21,124.93

Adjustments paid for the net gains and losses for the financial year -

Total 21,124.93

Allocation

Distribution -

Undistributed net gains and losses -

Capitalisation 21,124.93

Total 21,124.93

Information relating to securities with distribution rights

Number of securities -

Unit distribution -

Annual report as at 31 December 2019 28

MANDARINE EQUITY INCOME

Table of income and other key items for the last five financial years

Category of class I (Currency: EUR)

30/06/2016 30/06/2017 29/12/2017 31/12/2018 31/12/2019

Net asset value (in EUR)

D units - - - - 107.69

C units 92.79 110.82 115.22 106.63 133.73

Net assets (in thousands of EUR) 113.39 0.11 0.12 10.66 67.22

Number of securities

D units - - - - - 500.0000

C units 1,222.0000 1.0000 1.0000 100.0000 100.0000

Payment date 30/06/2016 30/06/2017 29/12/2017 31/12/2018 31/12/2019

Unit distribution on net gains and losses - - - - - (including interim payments) (in EUR)

Unit distribution from income - - - - 0.23 (including interim payments) (in EUR)

Unit tax credit (*) - - - - -

individuals (in EUR)

Unit capitalisation on net capital gains and losses

D units - - - - 2.01

C units - 51.52 17.07 3.56 5.89

Unit capitalisation of result

D units ------

C units - 6.25 0.50 2.71 2.76

(*) “The unit tax credit is determined on the date of payment under tax instruction from 04/03/93 (Ints.4 K-1-93). The notional amounts, calculated according to the rules applicable to individuals, are presented here as a guide. “Instruction 4 J-2-99 of 08/11/99 also states that the beneficiaries of tax credits other than individuals are themselves responsible for calculating the amount of tax credits to which they are entitled.”

Annual report as at 31 December 2019 29

MANDARINE EQUITY INCOME

Category of class F (Currency: EUR)

31/12/2019

Net asset value (in EUR)

D units 107.58

C units 119.50

Net assets (in thousands of EUR) 516.97

Number of securities

D units 500.0000

C units 3,875.8900

Payment date 31/12/2019

Unit distribution on net gains and losses - (including interim payments) (in EUR)

Unit distribution from income 0.13 (including interim payments) (in EUR)

Unit tax credit (*) -

individuals (in EUR)

Unit capitalisation on net capital gains and losses

D units 2.01

C units 5.19

Unit capitalisation of result

D units - -

C units 2.30

Annual report as at 31 December 2019 30

MANDARINE EQUITY INCOME

Category of class M (Currency: EUR)

30/06/2016 30/06/2017 29/12/2017 31/12/2018 31/12/2019

Net asset value (in EUR)

D units 91.71 106.32 110.36 101.78 128.03

Net assets (in thousands of EUR) 73,293.49 43,584.92 44,593.64 38,795.79 48,800.79

Number of securities

D units 799,182.0000 409,942.0000 404,068.0000 381,160.0000 381,160.0000

Payment date 30/06/2016 30/06/2017 29/12/2017 31/12/2018 31/12/2019

Unit distribution on net gains and - - - - - losses (including interim payments) (in EUR)

Unit distribution from income 2.72 - - - - (including interim payments) (in EUR)

Unit tax credit (*) - - - - -

individuals (in EUR)

Unit capitalisation on net capital gains and losses

D units - - 31.66 36.67 5.63

Unit capitalisation of result

D units - - 3.31 6.02 -

Annual report as at 31 December 2019 31

MANDARINE EQUITY INCOME

Category of class R (Currency: EUR)

30/06/2016 30/06/2017 29/12/2017 31/12/2018 31/12/2019

Net asset value (in EUR)

D units - - - 106.99

C units 87.35 103.34 106.76 96.87 120.01

Net assets (in thousands of EUR) 2,007.59 2,404.47 2,420.43 1,782.68 2,445.98

Number of securities

D units - - - - 500.0000

C units 22,984.2920 23,268.4700 22,670.5920 18,401.4801 19,934.1009

Payment date 30/06/2016 30/06/2017 29/12/2017 31/12/2018 31/12/2019

Unit distribution on net gains and losses - - - - - (including interim payments) (in EUR)

Unit distribution from income - - - - - (including interim payments) (in EUR)

Unit tax credit (*) - - - - -

individuals (in EUR)

Unit capitalisation on net capital gains and losses

D units - - - - 2.00

C units - 13.04 16.06 2.98 5.31

Unit capitalisation of result

D units - - - - -0.41

C units 6.86 -0.64 0.70 1.15

Annual report as at 31 December 2019 32

MANDARINE EQUITY INCOME

Inventory of financial instruments as at 31 December 2019

Asset elements and denomination of Market Listing Rounded % Quantity Current value securities price currency of net assets

Equities and similar securities 45,946,792.94 88.65

Negotiated on a regulated or similar market 45,946,792.94 88.65

ALLIANZ SE-REG 2,911.0000 218.40 EUR 635,762.40 1.23

AMUNDI SA 11,135.0000 69.90 EUR 778,336.50 1.50

APERAM 17,655.0000 28.51 EUR 503,344.05 0.97

ASSOCIATED BRITISH FOODS PLC 31,958.0000 25.98 GBP 975,868.41 1.88

AXA SA 24,833.0000 25.11 EUR 623,556.63 1.20

BASF SE 6,944.0000 67.35 EUR 467,678.40 0.90

BNP PARIBAS 13,357.0000 52.83 EUR 705,650.31 1.36

BODYCOTE PLC 55,995.0000 9.52 GBP 626,554.30 1.21

BRITISH AMERICAN TOBACCO PLC 19,228.0000 32.32 GBP 730,315.96 1.41

COLRUYT SA 12,199.0000 46.48 EUR 567,009.52 1.09

CRODA INTERNATIONAL PLC 15,873.0000 51.20 GBP 955,215.80 1.84

DANONE 10,566.0000 73.90 EUR 780,827.40 1.51

DCC PLC 13,867.0000 65.44 GBP 1,066,592.01 2.06

DNB ASA 36,861.0000 164.00 NOK 612,867.66 1.18

EIFFAGE 6,279.0000 102.00 EUR 640,458.00 1.24

EQUINOR ASA 53,656.0000 175.50 NOK 954,665.34 1.84

FRESENIUS SE & CO KGAA 19,136.0000 50.18 EUR 960,244.48 1.85

FUCHS PETROLUB SE-PREF 11,042.0000 44.16 EUR 487,614.72 0.94

GLANBIA PLC 59,569.0000 10.26 EUR 611,177.94 1.18

GRANDVISION NV- W/I 56,350.0000 27.42 EUR 1,545,117.00 2.98

HENKEL AG & CO KGAA VORZUG 6,745.0000 92.20 EUR 621,889.00 1.20

HUGO BOSS AG-ORD 17,123.0000 43.26 EUR 740,740.98 1.43

IMERYS SA 14,139.0000 37.68 EUR 532,757.52 1.03

IMI PLC 35,728.0000 11.79 GBP 495,102.40 0.96

INCHCAPE PLC 61,059.0000 7.06 GBP 506,672.00 0.98

INDUSTRIA DE DISENO TEXTIL 26,703.0000 31.45 EUR 839,809.35 1.62

ING GROEP NV 134,095.0000 10.69 EUR 1,433,207.36 2.77

IPSEN 6,043.0000 79.00 EUR 477,397.00 0.92

KBC GROUP NV 15,190.0000 67.06 EUR 1,018,641.40 1.97

KLEPIERRE 14,422.0000 33.85 EUR 488,184.70 0.94

LA FRANCAISE DES JEUX SAEM 42,117.0000 23.83 EUR 1,003,437.53 1.94

LAGARDERE SCA 45,672.0000 19.43 EUR 887,406.96 1.71

LVMH MOET HENNESSY LOUIS VUI 1,476.0000 414.20 EUR 611,359.20 1.18

MAYR-MELNHOF KARTON AG 5,776.0000 119.60 EUR 690,809.60 1.33

MEGGITT PLC 64,389.0000 6.57 GBP 497,069.76 0.96

Annual report as at 31 December 2019 33

MANDARINE EQUITY INCOME

NATIXIS 123,569.0000 3.96 EUR 489,086.10 0.94

NOKIAN RENKAAT OYJ 38,333.0000 25.63 EUR 982,474.79 1.90

NOVARTIS AG-REG 14,581.0000 91.90 CHF 1,234,562.28 2.38

NOVO NORDISK A/S-B 9,918.0000 386.65 DKK 513,256.33 0.99

ORANGE 81,064.0000 13.12 EUR 1,063,559.68 2.05

PIHLAJALINNA OYJ 32,750.0000 15.28 EUR 500,420.00 0.97

PRUDENTIAL PLC 29,819.0000 14.49 GBP 507,848.27 0.98

PUBLICIS GROUPE 14,276.0000 40.36 EUR 576,179.36 1.11

ROCHE HOLDING AG-GENUSSCHEIN 4,296.0000 314.00 CHF 1,242,808.18 2.40

ROYAL DUTCH SHELL PLC RTS 29/11/2019 43,906.0000 - EUR - -

ROYAL DUTCH SHELL PLC-A SHS 51,406.0000 22.35 GBP 1,350,404.44 2.61

RUBIS 15,539.0000 54.75 EUR 850,760.25 1.64

SANOFI 11,752.0000 89.62 EUR 1,053,214.24 2.03

SAP SE 5,318.0000 120.32 EUR 639,861.76 1.23

SIEMENS AG-REG 6,503.0000 116.54 EUR 757,859.62 1.46

SMITHS GROUP PLC 26,873.0000 16.87 GBP 532,848.51 1.03

SPECTRIS PLC 15,354.0000 29.06 GBP 524,432.58 1.01

SVENSKA HANDELSBANKEN-A SHS 84,747.0000 100.90 SEK 818,525.51 1.58

SWISS RE AG 5,689.0000 108.70 CHF 569,738.62 1.10

TELENOR ASA 51,820.0000 157.45 NOK 827,171.98 1.60

TIETOEVRY OYJ 15,850.0000 27.72 EUR 439,362.00 0.85

TOTAL SA 30,443.0000 49.20 EUR 1,497,795.60 2.89

UBS GROUP AG-REG 84,670.0000 12.23 CHF 953,649.12 1.84

UCB SA 9,153.0000 70.90 EUR 648,947.70 (1.25)

UPM-KYMMENE OYJ 14,409.0000 30.91 EUR 445,382.19 0.86

VICTREX PLC 16,835.0000 24.94 GBP 493,494.24 0.95

VIDRALA SA 3,840.0000 93.70 EUR 359,808.00 0.69

UCI securities 4,868,519.56 9.39

General purpose UCITS and AIFs for non-professionals and equivalents in other Member 4,868,519.56 9.39 States of the European Union

FEDERAL SUPPORT MONETAIRE 461.0000 10,560.78 EUR 4,868,519.56 9.39

Receivables 56,046.90 0.11 Debts -409,684.89 -0.79

Other financial accounts 1,369,288.27 2.64

TOTAL NET ASSETS 51,830,962.78 100.00

Annual report as at 31 December 2019 34