Mandarine Opportunités Annual Report 31 December 2019

Mandarine Opportunités

Annual report

31 December 2019

CONTENTS

MANAGEMENT REPORT ➢ Identification ➢ Performance ➢ PEA (equity savings plan) eligibility ➢ 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

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IDENTIFICATION - a company in the sector (positioning of the company in its sector, quality of the management teams and Name: expertise of employees, etc). Mandarine Opportunités Based on these analyses, the manager may diversify into other Classification: asset classes (as described below) if he anticipates that the French equities main engine of performance (equity markets) will not allow him to achieve his investment objective. He could decide to invest in Management objective: the bond markets (directly or via UCITS or AIF up to a limit of The Fund's objective is to achieve performance essentially 10% of the assets) or other markets through UCITS or AIF. correlated with the French equity market, with the particular objective of achieving performance superior to that of the CAC This type of management is discretionary and conviction- All Tradable NR Index over the recommended investment driven, allowing a high degree of autonomy in selecting period. investments.

Benchmark index: Risk profile: The Fund's performances are compared to the performance of The Fund is classified as a “French equities” UCITS. As such, the CAC All Tradable NR Index, which is the global benchmark investors are primarily exposed to the following risks: for the French market. The benchmark index is denominated in euros. Capital risk: Investors should be aware that the performance of Codes: ISIN: FR QS0011131883 Reuters: CACTN; the Fund may not be in line with its objectives and, because Bloomberg: SBF250NT. the Fund is not capital protected or guaranteed, investors may The performance of the CAC All Tradable NR index includes not recover the full amount of their invested capital. dividends from the equities that comprise said index. Equity market risk: More than 60% of the Fund is exposed to The Fund therefore does not aim to reproduce the one or more equity markets that could experience substantial performance of the index or its sector allocation in any form fluctuations. Equity risk corresponds to a decline on the equity whatsoever. It makes investments based on criteria that may markets. As the Fund is exposed to equities, the net asset value lead to significant deviations from the behaviour of this index may decline significantly. If the equity markets fall, the value of and its composition. Investments in companies are made on the portfolio may decline. the basis of weightings that are not based on the relative weighting of each company in the index. Risks linked to investments in small and mid-cap securities: Given its management orientation, the Fund may be exposed Investment strategy: to small and mid-cap securities, which may carry liquidity risk The Fund's investment strategy is to be dynamically exposed, owing to their specific characteristics. Due to the restricted mainly to the French equities markets. nature of the market, the performance of such securities is more pronounced and may rise or fall sharply. This may result The investment strategy consists of applying active in an increase in the volatility of the net asset value. management on the basis of an essentially bottom up Investments in small-cap companies will remain incidental and approach, with the addition of top down adjustments through will represent only a minor portion of investments. the discretionary selection of companies with above-average earnings outlooks, owing either to steady growth, restructuring Interest-rate risk: Given its management orientation, the Fund or a business turnaround. may be exposed to interest rate risk. Interest rate risk is represented by fluctuations in the yield curve. The interest rate The bottom up approach consists of studying company markets move in the opposite direction of interest rates. This fundamentals. Therefore, the securities selection process will be risk arises from the fact that, in general, the price of debt implemented by analysing: securities and bonds falls when interest rates rise. - the competitive positioning and competitive advantages of the company (positioning of the Credit risk: Credit risk is the risk that the issuer cannot meet its company in its sector, quality of the management commitments. Credit risk is limited to debt securities and teams and expertise of employees); money-market instruments, which may not make up more than - the quality of the financial structure (study of a maximum of 25% of net assets. Investors are reminded that traditional financial analysis ratios, dividend capacity, this risk may result in a decrease in the Fund's net asset value. growth prospects, etc.); - future prospects (organic growth, possibility of Discretionary management risks: The discretionary restructuring, potential for external growth, likely management style applied by the Fund is based on the developments in ownership, etc.). selection of securities and on the expectations of the different This analysis will allow the Fund Manager to adapt the portfolio markets. There is a risk that the Fund may not be invested in composition to changes in the French equity markets. the best-performing securities at all times. As a result, the Fund's performance may be lower than the investment The top down analysis will supplement the active stock-picking objective. Furthermore, the net asset value of the Fund may by enabling adjustments. To this end, the fund manager will decline. Performance largely depends on the Fund Manager's conduct an overall review of the benchmark market in order to ability to anticipate market movements. benefit from the sector and/or geographical opportunities based on the analysis of: To a lesser extent, they are also exposed to the following risks: - the general economic conditions, both nationally and internationally (changes in interest and/or commodity rates, etc.); - the examination of a specific sector (concentration, new entrants, trend study, purchasing behaviour);

Mandarine Opportunités Annual report

Changes due in 2020: Risks linked to emerging markets: The market practices and As of the writing of this report, the fund prospectus has been monitoring measures in the emerging markets may deviate updated to include the following information: from the standards prevailing on the large international - The statement that the Benchmark Administrator markets: information on certain securities may be incomplete has or has not obtained registration under European and liquidity may be lower. The performance of these BMR regulations and is entered in the register of securities may therefore be volatile. If the securities of the administrators maintained by ESMA; emerging markets fall, the net asset value of the Fund may fall. - The statement that the fund is actively managed in Counterparty risk: The Fund is exposed to the counterparty accordance with the reference framework defined by risk that results from the use of financial futures. Contracts for ESMA in its Questions and Answers 34-43-362 these financial instruments may be concluded with one or “Actively managed Fund”. more credit institution(s) that is/are not able to honour their commitments under these instruments. Investors are reminded Statutory auditor that this risk may decrease the Fund's NAV. Deloitte & Associés Tour Majunga Exchange-rate risk: This is the risk that fluctuations in foreign 6 place de la Pyramide currencies could affect the value of securities held in the 92908 Paris-La Défense cedex portfolio. The Fund may hold, either directly or through UCITS, securities denominated in a currency other than the accounting currency of the Fund. As such, fluctuations in exchange rates PERFORMANCE could result in a decline in the net asset value. The exchange risk may be hedged through derivatives. This annual report relates to the 2019 financial year which began on 1 January 2019 and ended on 31 December 2019. Recommended investment period: Over 5 years MO MO_R ME MO_M MO_F Performance Allocation of profit: 2019 25.69% 27.32% 27.71% 26.99% Capitalisation FCP for I, M, R and F units 01/01/2019 €1,017.48 €11,526.01 €102,041.70 €539.53 Changes affecting the UCITS during 2019: February 2019 31/12/2019 €1,278.82 €14,674.97 €130,315.77 €685.17 Changes to the prospectus: - Removal of the overly restrictive French AMF Benchmark performance: 27.84% classification - Eligibility of I units Past performance is not indicative of future results. - Administrative and accounting manager PEA (EQUITY SAVINGS PLAN) ELIGIBILITY - Taxation (French and German) - Management objective: ESG Best in Universe As at 31 December 2019, the mutual fund is more than strategy 98.81% invested in securities eligible for equity savings plans - Supplementary benchmark indicator: see (PEA in France). amendments from the benchmark regulation - Changes to the investment strategy: ECONOMIC COMMENTARY - Best In Universe ESG strategy and financial component With a 29% increase for the CAC 40 (dividends reinvested), 2019 was the best year that the stock market had seen in 20 - Wording update on debt securities years! - Clarification that the fund does not use TRS The CAC Small increased by 17%. This is practically half as No contracts constituting financial guarantees - much as the CAC 40. Over the course of three years, average - New disclaimer: risk linked to convertible bonds and securities were up +6% while the CAC 40 increased by 31.5%. the absence of guarantees or protections - Disclaimer on US persons / US Investors in the Smaller stocks faced fierce competition from private equity, which captured all of the inflows from investors. A sectoral sense of FATCA and SEC effect subsequently acted against their interests. Luxury goods - Accuracy of distributable amounts vs. allocation of and aeronautics have been the two main components of the revenue success of the CAC 40 for three years. The weight of these - Notes on the possibility of precentralisation and AMF two sectors is insignificant within average securities. table on the timeline In 2019, we will also note that Total was up by barely 7%. The - Information on personal data from GDPR increase is largely symbolic over three years at +2%. The company was hampered by a distrust of oil companies at a time when protecting the planet has become a legitimate issue Changes to the regulations of widespread concern. We sold this security in December. - Article 3 and Articles 5b and 7 (new for 5b) (see amendments resulting from the updated instruction The fund's annual performance (I unit) is +27.3% vs. + 27.8% no. 2011-19) for the CAC All Tradable, even though the fund has 46% exposure (as of 31 December 2019) to small and medium caps against 20% for the index. In this part of the market, our stock picks paid off.

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MANAGEMENT COMMENTARY OUTLOOK FOR 2020

The benchmark fund (Mandarine Opportunités) obtained the One could legitimately wonder if the index climbed “too far” this State SRI label in January 2019. year (2019) and whether lean times are now ahead of us? We do not believe so. The fund remains concentrated (between 35 and 40 lines) and • Just because the market grows significantly one 100% invested. year, that does not necessarily mean the following 1st SEMESTER 2019 year is doomed to fall back. The CAC 40 grew (net) by 24% in 1996, 30% in 1997, 31% in 1998 and 51% Main movements: in 1999. • PURCHASES: Carrefour, Atos and Seb • If we take 1 September 2018 as a starting point, the • STRENGTHENING (main): Sartotius Stedim (net) performance of the CAC 40 is 10.6% (as of 31 Biotech, L'Oreal, LVMH, Axa, Worldline, Rubis, December 2019). Sodexo • SALES: SES, Altran, Faurecia, ArcelorMittal, Virbac More generally, our proprietary market monitoring indicators • REDUCTIONS (main): Total, Thales, Safran, remain well positioned for the time being: EssilorLuxottica, Pernod Ricard Our 3 key factors for monitoring shares are:

The best performance contributors • A risk-free prime rate: neutral • Sartorius Stedim Biotech: performance + 60%; On both sides of the Atlantic, central bankers are satisfied with contribution to performance: 1.20% the current monetary policy and for the time being are • Worldline: performance + 52%; contribution to operating on “autopilot”. performance: 0.75% In addition, several countries continued to ease their monetary • GTT: performance + 34%; contribution to performance: 0.48% policy during the second half of 2019. Combined with the o significant support provided by the easing measures taken Strongest performance detractors earlier in 2019, the lagged effects of this approach should allow global business to recover at the beginning of 2020. The • LVMH (we were underweighted): performance + estimate for global growth for 2019 and the forecast for 2020 47%; impact on performance: -1.02% would have been 0.5 percentage points lower for each year • ADP: performance -4%; impact on performance: - without monetary stimulus. 0.63% • Solutions 30: performance -1%; impact on • The risk premium has fallen sharply over performance: -0.46% the past year and is approaching its lowest o point: neutral It is mainly our absences from certain securities (Airbus, According to the IMF report of 20 January 2020, world growth is Schneider Electric, Vinci, Kering, BNPP, Dassault Systèmes estimated to go from 2.9% in 2019 to 3.3% in 2020, and then to and Legrand) which cut performance by 246 bps. 3.4% in 2021, which represents a downward revision of 0.1 percentage point for 2019 and 2020 and 0.2 percentage points source: BLOOMBERG / front office tool for 2021 compared to the IMF forecasts in October. This 2nd SEMESTER 2019 downward revision is mainly due to weaker than expected economic activity in some emerging countries, notably India, Main movements: which has led to a reassessment of growth prospects for the next two years. In some cases, this reassessment is also • Participation in a stock market flotation: Française explained by the repercussions of a rise in social unrest. des Jeux • PURCHASES: BNPP, STM, Saint-Gobain, Legrand, On the positive side, the markets were reassured by tentative Unibail-Rodamco-Westfield, Airbus signs of the beginnings of a recovery in manufacturing activity • STRENGTHENING (main): EssilorLuxottica, Ubisoft and global trade, by a general repositioning towards an • SALES: Total, Pernod-Ricard, Carrefour, Safran, accommodating monetary policy, by the intermittent good Mediawan news concerning trade negotiations between the United States • REDUCTIONS (main): Sanofi, Sartorius Stedim and China and by receding fears of a no-deal Brexit, which led Biotech, GTT, L’Oreal, Danone, Edenred to a reduction in risk aversion.

The best performance contributors • Corporate dividends: positive • Neoen: performance +44%; contribution to Although earnings per share were reviewed downwards for performance: 1.13% 2019 (for the CAC 40, we expect -2% compared to essentially • Robertet: performance +44%; contribution to +9% as at 1 January), the solidity of the companies' balance performance: 0.64% sheets allows them to maintain growing dividend distribution • Teleperformance: performance +24%; contribution policies (expected to be up 8.1% now compared to 6.7% on 1 to performance: 0.54% January 2019 for the CAC 40). o Strongest performance detractors Impact of the Coronavirus health crisis • SMCP: performance -36%; impact on performance: - 0.61% At the time of writing, the health crisis that emerged in the • Ipsen: performance -34%; impact on performance: - Chinese region of Wuhan has spread across the globe. 0.54% • Sanofi (we were underweighted): performance All governments have implemented stringent containment +18%; impact on performance: -0.37% measures. They have placed many cities, regions and countries in quarantine, closing many sites and deploying source: BLOOMBERG / front office tool significant health resources.

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No one can predict when the peak of the COVID-19 epidemic charge of execution in order to guarantee the best possible level of will be reached or how many victims it will create. performance: - Probability and speed of execution However, we already know that its economic consequences - Execution price will be disastrous. Given that recession seems inevitable, what - Access to cash (blocks, interest, counterparty, etc.) compensatory mechanisms do states have? One can predict what consequences this crisis will have. Recession is - Quality of execution (including post trade and inevitable – both in Europe and throughout the world. The reporting) cessation of business in most economic sectors stands to put many people out of work. Many companies risk having to file These criteria are based on a qualitative analysis, quantitative for bankruptcy, which would trigger mass unemployment. analysis and a technical rating by the middle office.

On 12 March 2020, the stock market had a record-breaking Criterion no. 1: Qualitative aspects: total price of the day…of decline. The main stock markets took hits of more transaction; access to places of execution that enable the best than 25%. The lows are following one after the other... performance to be regularly achieved; connectivity; market technology; direct market access; etc. Since the end of the financial year, following a start to the year marked by a slightly improving stock market environment, all Criterion no. 2: Quantitative aspect: execution performance funds have been impacted by the Covid-19 crisis and the very measurement - TCA: brutal and sudden drop in the financial markets started on 19 Measurement of average execution performance (Trading Cost February 2020. Analysis): all transactions undertaken during a selection period, measured and compared to defined benchmarks (IS- As of the date of writing of this document (31 March 2020), the TWAP, VWAP, etc.). Fund has suffered from dips in line with the decreases experienced by the market. The relative performance of the Criterion no. 3: Rating by middle office: quality of fund compared to its Benchmark, however, remains confirmations; quality of outcomes; management of satisfactory. outstandings, etc.

The Fund was affected by a dual phenomenon – the decline in Terms and frequency of selection of market brokers - Brokers' the financial markets in addition to the redemptions. review. The only certainty we have was encapsulated by President Macron, when he said “The day to come will not be like the Role of Broker Committee: Each half-year, the management one before it.” company reviews the brokers selected during the previous half-year on the basis of the three criteria mentioned above and decides which new brokers to include on the shortlist of REPORT ON INTERMEDIARY FEES brokers selected for the following half-year.

In accordance with the provisions of Article 314-122 of the The Broker Committee is responsible for: (i) selecting new General Regulations of the French Financial Markets Authority brokers and (ii) rating the brokers on the basis of the three (AMF), the report on intermediary fees has been made criteria. available to unit holders. The report is also available on the website of the management company: www.mandarine- For further information, please refer to: www.mandarine- gestion.com gestion.com

GLOBAL RISK CALCULATION METHODOLOGY INFORMATION ON FINANCIAL INSTRUMENTS HELD IN THE PORTFOLIO AND ISSUED BY THE MANAGEMENT COMPANY The Commitment Approach was used to calculate the global In accordance with the provisions of Article 314-131 of the risk in accordance with methodology guide CESR/10-788 General Regulations of the French Financial Markets Authority, included in AMF instruction 2011-15. we hereby inform you that during the period under review, Mandarine Opportunity in 2018 was invested to a maximum of INFORMATION ON TAKING INTO ACCOUNT ESG CRITERIA IN THE 3.07% in UCITS, managed by Mandarine Gestion. INVESTMENT POLICY

INFORMATION ON THE VOTING POLICY The information on taking account of ESG criteria in investment policy can be found on the website of the In accordance with the provisions of Articles 321-132 and 321- management company at the following address: 133 of the General Regulations of the Autorité des marchés www.mandarine-gestion.com financiers, the voting policy and report on the conditions under The mutual fund systematically takes ESG criteria into which Mandarine Gestion exercised its voting rights are available on the management company's website: account, as defined in Decree No. 2012-132. www.mandarine-gestion.com Reminder of the ESG method implemented in the portfolio

INFORMATION ON SELECTION OF INTERMEDIARIES Firstly, it should be remembered that an ESG filter is applied upstream of the Mandarine Opportunités investment process Classification of the management company: as shown in the diagram below: Mandarine Gestion has chosen to consider itself as a “professional client” and is asking its intermediaries (brokers) to categorise it as such, thereby imposing a “best execution” obligation on them with regard to our company.

Selection criteria for the best intermediaries in charge of execution: As part of its “best selection” procedure, Mandarine Gestion has used four key factors to select and make use of the best brokers in

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500 130 100 35 COMPANIES COMPANIES COMPANIES COMPANIES A version from the last quarter of 2019 can be downloaded Excluding the last quintile below:

ESG filter Large & Mid Greenhouse gas emissions French equitiesBest in universe Cap equities 3 pillars ~ 310 securities2 ~ 150 of growth with rating: securities2 MANDARINE The portfolio's carbon footprint compared to its benchmark extra-financial* OPPORTUNITÉS 2 index was structurally lower than that of the benchmark all ~ 390 securities Selectivity > 90% Freedom ratio3 Liquidity through 2018 to end up at 87 tonnes of CO2 per million euros filter companies ~ 130 securities5 invested, against 177 for the index. This is due to an French listed Identification SELECTION 1 overweighting in sectors with low CO2 emissions, such as companies ~500 securities of growth companies OF SECURITIES technology, relative to the index. The information is available in ESG each of the monthly reports of the Mandarine Entrepreneurs fund.

The data used are provided by the companies on the basis of measurements and / or estimates. The results expressed in The ESG rating in use is the product of internally conducted tonnes of CO2 per million euros invested are based, for each research. It is a proprietary rating of the Management company, on the share of market capitalisation held by the Company and is based on external (Sustainalytics and fund, then reported at €1m invested. The data used are those Ethifinance) and internal research. It is based on 4 extra- from Scopes 1 and 2 (direct and indirect energy-related financial indicators which are themselves made up of sub- emissions). Mandarine Gestion did not use Scope 3 (other indicators as shown in the diagram below: indirect emissions) owing to the lack of availability and uniformity of data.

Top 5 and Bottom 5 of the ESG rating for companies of the fund At 31/12/2019, the five best and five worst ratings in terms of Environment Social ESG rating are summarised in the table below: TOP 5 ESG BOTTOM 5 ESG rating rating [-2; +2] [-2; +2] Legrand 1.44 Alten -0.21 Axa 1.41 Euronext -.017 Stakeholders Unibail 1.39 Ipsen -0.09 Governance Robertet 1.35 Ubisoft -0.01 STM 1.25 Aéroport de Paris 0.02

SWOT ESG (Strengths, Weaknesses, Opportunities, Threats)

Opportunities Strengths The ESG rating is the equally-weighted average of the 4 Portfolio's carbon footprint Low carbon footprint indicators. It falls between [-2 and +2], refined over the course lower than its index (overweighting of technology of updates to ratings originating from ratings agencies, new Green utilities benefit from sectors) developments in current affairs and meetings with the the theme of the European Absence of serious companies. Green Deal controversy ESG ratings for the universe are classified in quintiles (A-B- Threats Weaknesses C-D-E). The last quintile (E) is excluded from the scope of Private company data Some level 3 controversies investment. Controversies

Controversies are monitored every 15 days using the MANDARINE ESG RATING Sustainalytics tool, ranging from a severity scale from 1 to 5, from -2 to +2 with 1 being the least serious level of controversy. Several

Exclusion from the Investable universe level 3 controversies were noted at the end of December (Axa, investable universe Saint Gobain, ALD, Sanofi).

Rating of the portfolio (preferably detailed) vs. benchmark Engagement policy followed at fund level rating Mandarine Gestion has had an engagement policy since 2017. We noted that over the course of 2019, the fund's ESG rating This policy applies to the entire Mandarine Gestion range and was higher than that of the index. At the end of 2019, the fund's is not specific to the Mandarine Opportunités fund. The ESG rating was 0.72 in comparison to 0.54 for the index (for Mandarine Gestion 2019 Dialogue and Engagement report is the monthly report for December 2019). available on the management company's website: http://www.mandarine- Measure of ESG impact of the fund and the index gestion.com/fileadmin/user_upload/Documents_Reglementaire A quarterly ESG impact report is produced to compare the s/Site_Internet_-_Rapport_Dialogue_et_Engagement_EN.pdf performance of the fund with that of the index. The four ESG indicators used are: Greenhouse gas emissions (carbon footprint) USE OF EFFECTIVE PORTFOLIO MANAGEMENT TECHNIQUES The level of independence of governance bodies The proportion of companies that commit themselves to the main principles of the UN Global Compact The UCITS did not use efficient portfolio management Employee turnover rate techniques in the sense of Directive 2009/65/EC during the financial year under review. The web link to access the report is as follows: http://www.mandarine- gestion.com/fileadmin/user_upload/Reporting/ReportESG_Ma ndarineOpportunit%C3%A9s.pdf 7 Mandarine Opportunités Annual report

that upon the departure of an employee from the company (contractual termination, dismissal), the employee could REMUNERATION POLICY receive compensation under the conditions set out in the Labour Code and the collective agreement applicable to the The risk profile for UCIs and the features of Mandarine Gestion Management Company. This compensation is not detailed as an AIFM and UCITSM justify a proportionate implementation here, since it arises from labour law and the collective of the remuneration principles resulting from Directive bargaining agreement and is in no way related to the work 2011/65/EU and Directive 2014/91/EU of the European undertaken by the employee. With a view to preserving the Parliament and of the Council of 23 July 2014 amending interests of its unitholders, the Management Company does Directive 2009/65/EC on the coordination of laws, regulations not make a practice of remunerating its employees via a and administrative provisions relating to undertakings for Carried Interest mechanism. The AIFs managed by the collective investment in transferable securities (UCITS), as Management Company do not offer Carried Interest units to regards the functions of the depositary, remuneration policies PMC managers and/or employees. As such, this type of and sanctions. remuneration is not included in this Mandarine Gestion remuneration policy. Mandarine Gestion has remuneration policies and practices that are compatible with sound and efficient risk management Hence, under EU Directive 2011/61 Level I (Article 13 and that does not promote or encourage excessive risk taking that Annex II) of 8 June 2011, the AIMF Directive, of Delegated is incompatible with the risk profiles, regulations and regulatory Regulation 231/2013, Level II (Article 107) of 19 December documents of UCIs, namely the AIFs and UCITS in respect of 2012, ESMA Guidance on the Remuneration Policies of AIF which it acts as a management company. managers of 3 July 2013 and EU Directive 2014/91 of the European Parliament and of the Council of 23 July 2014 These remuneration policies and practices are used in various amending EC Directive 2009/65 on the coordination of legal, categories of personnel, including the senior management, risk regulatory and administrative provisions relating to takers, persons exercising a position of control, and all undertakings for collective investment in transferable securities employees receiving a total remuneration situated in the same (UCITS), as regards the functions of depositary, remuneration tranche of remuneration as the risk takers and the senior policies and sanctions, ESMA Guidelines of 14 October 2016 management, and whose professional activities have a (ESMA/2016/575 – Guidelines on sound remuneration policies substantial effect on the risk profiles of managers and on the under the UCITS Directive) as well as provisions such as those UCITS or AIFs that they manage. These remuneration policies arising from national transposition texts as applicable in the and practices have been tailored to the size of the internal French Republic, namely Art. L.533-22-2 CMF and Articles organisation as well as to the nature, the scope and the 319-10 and 319-11 RG AMF as well as AMF Position 2013-11 complexity of Mandarine Gestion activities. on the remuneration policies applicable to AIFMs and the AMF guide entitled “UCITS V Guide for management companies”, Remuneration of the staff of Mandarine Gestion comprises the the total amount of gross remuneration for the financial year following components: 2019 that began on 1 January 2019 and ended on 31 December 2019, for the staff of the management company Firstly, fixed remuneration whose quantum is set at the market Mandarine Gestion, was €6,607,000, being broken down into price. It has been confirmed that the fixed remuneration falls in €4,175,000 in fixed remuneration and €2,432,000 in variable line with the market through salary studies and benchmarking remuneration for that financial year. These sums relate to 41 with competing companies. This remuneration is accorded beneficiaries and the variable remuneration will be paid in the individually and specified in the employment contract of each financial years following the financial year under review. employee. This fixed remuneration is essentially the measure Regarding the personnel listed in Article 533-22-2 of the CMF of the collective agreement adhered to by the management – i.e. 30 out of 41 persons – remuneration is broken down at company and is consistent with the noted levels of the rate of €3,454,000 for the fixed portion and €2,131,000 for remuneration for asset management based on the positions the variable portion. It should be noted that neither the UCI nor occupied. This fixed remuneration may be reviewed. The main any of the UCIs for which the management company carries indicators for review relate to effectiveness in the performance out management duties during the financial year under review of the tasks and assignments entrusted with the employee, disbursed any remuneration to its managers as a percentage and/or changes in the labour market or inflation. of the performance achieved by an investment fund (carried interests). Similarly, it should be noted that the fixed and Secondly, variable remuneration whose quantum comes in variable remuneration mentioned above concerns 41 addition to the amount of fixed remuneration. The quantum employees of the management company, 30 of whom appear component depends on the implementation of company aims on the list of beneficiaries in Article L.533-22-2 of the CMF. (VSTR “Vision, Strategy, Tactics, Results”) and individual Secondly, this remuneration also has a bearing on the objectives. Variable remuneration is not guaranteed, except in remuneration of employees involved in the management of the case of a newly hired employee and exclusively for their AIFs and UCITS. first year of employment, without any tacit renewal. This is not general practice. The assignment of variable remuneration is, REPORT ON MAIN PORTFOLIO MOVEMENTS in all cases, conditional upon the financial situation of the company and on the employee's participation in the company's development. Mandarine Gestion may choose to give Main purchase: L’OREAL Nominative €17,559,610.40 supplementary remuneration in the form of discretionary Main sale: AIR LIQUIDE €-14,269,389 bonuses on the basis of criteria that are wholly unrelated to the performance of the UCIs managed or the taking of risk. The assignment of variable remuneration is discretionary 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, renewable from one year to the next by tacit renewal. Concerning other similar benefits: As at 31 December 2019, no benefits in kind (company car, fuel allowance or other) were granted to the management company's staff. The remuneration policy will be updated should the Management Company give its employees a benefit in kind. However, the management company may reimburse employees for business costs to the nearest euro (taxi fares, meals, etc.) in the form of an expense account validated by the Deputy Managing Director. It may be the case 8 Mandarine Opportunités Annual report

SECURITIES FINANCING TRANSACTION REGULATION (SFTR)

During the financial year under review, the Fund did not perform any securities financing transaction operations covered by the SFTR, i.e. repurchase transactions, securities/commodities lending/borrowing, buy/sell back or sell/buy transactions, margin lending transactions and total return swaps (TRS).

MANDARINE OPPORTUNITES Fonds Commun de Placement (mutual fund) Management company: Mandarine Gestion 40, avenue George V 75008 Paris

Statutory Auditor’s report on the annual financial statements

Financial year ending 31 December 2019

Deloitte & Associés 6 place de la Pyramide 92908 Paris-La Défense Cedex France Telephone: + 33 (0) 1 40 88 28 00 www.deloitte.fr

Address: TSA 20303 92030 La Défense Cedex

MANDARINE OPPORTUNITES

Fonds Commun de Placement (mutual fund) Management company: Mandarine Gestion 40, avenue George V 75008 Paris

Statutory Auditor’s report on the annual financial statements

Financial year ending 31 December 2019

To MANDARINE OPPORTUNITES mutual fund 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 OPPORTUNITES 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.

Justification of the audit opinion on the annual financial statements

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 of 01 January 2019 up to the date of releasing this report,

Simplified joint-stock company with a capital of €1,723,040 Chartered Accountancy Company (Société d'Expertise Comptable) listed on the Register of Paris Ile-de-France Auditing Company, registered with the Compagnie Régionale de Versailles 572 028 041 RCS Nanterre VAT: FR 02 572 028 041

A member of the Deloitte group

and we did not provide any services prohibited by the professional code of ethics for statutory auditors.

Justification of our assessments

Pursuant to the provisions of Articles L.823-9 and R.823-7 of the Commercial Code 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 of collective 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 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.

The management company's responsibilities relating to 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 assurance without in any way guaranteeing that an audit conducted in accordance with the standards of professional conduct can systematically detect all material misstatements. Misstatements

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

may result from fraud or error and are viewed as 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. If it transpires that there is any such significant uncertainty, we draw the attention of the readers of this report to the information provided in the annual financial statements with regard to this uncertainty or, if this information is not provided or is not relevant, we would draw up a certification with reservations or refuse to provide certification;

• they assess the overall presentation of the annual financial statements and evaluate whether the annual financial statements reflect the operations and underlying events so as to give a true image thereof.

Paris La Défense, 15 April 2020

The Statutory Auditor Deloitte & Associés

Olivier GALIENNE

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

MANDARINE OPPORTUNITES

Balance sheet assets

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

Net fixed assets - - Deposits - - Financial instruments 383,708,958.42 387,464,695.71 Equities and similar securities 383,708,958.42 387,464,695.71 Negotiated on a regulated or similar market 383,708,958.42 387,464,695.71 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 - - General purpose UCITS and AIFs for non-professionals and equivalents in other - - 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 47,163.63 1,943,836.13 Forward exchange transactions - - Other 47,163.63 1,943,836.13 Financial accounts 5,117,443.57 1,262,331.67

Cash 5,117,443.57 1,262,331.67

TOTAL ASSETS 388,873,565.62 390,670,863.51

Annual report as at 31 December 2019 5

MANDARINE OPPORTUNITES

Balance sheet liabilities

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

Equity capital - - Capital 373,430,112.76 380,342,498.73 Prior undistributed net gains and losses (a) - - Retained earnings (a) - - Net gains and losses for the financial year (a,b) 11,506,532.64 4,939,685.90 Income in the financial year (a,b) 3,365,295.35 4,640,675.42

Total equity capital (= Amount representing net assets) 388,301,940.75 389,922,860.05

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 571,624.87 748,003.46 Forward exchange transactions - - Other 571,624.87 748,003.46

Financial accounts - - Current bank overdrafts - - Loans - -

TOTAL LIABILITIES 388,873,565.62 390,670,863.51 (a) Including adjustment accounts. (b) Less interim payments made during the financial year.

Annual report as at 31 December 2019 6

MANDARINE OPPORTUNITES

Off-balance sheet

Financial year Financial year ended 31/12/2019 ended 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 OPPORTUNITES

Profit and loss account

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

Income from financial transactions

Profit on equities and similar securities 8,268,364.27 10,902,673.87

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 8.21 2.24

Other financial income - -

TOTAL I 8,268,372.48 10,902,676.11

Expenses from financial transactions

Charges on temporary purchase and sale of securities - - Charges on financial futures - -

Charges on financial debts -14,309.62 -63,900.34 Other financial expenses - -

TOTAL II -14,309.62 -63,900.34

Profit or loss on Financial Operations (I + II) 8,254,062.86 10,838,775.77

Other profit (III) - -

Management fees and depreciation and amortisation (IV) -4,838,034.74 -5,954,238.30

Net profit or loss for the financial year (I + II + III + IV) 3,416,028.12 4,884,537.47

Adjustment of income for the year (V) -50,732.77 -243,862.05

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

Profit or loss (I + II + III + IV + V + VI) 3,365,295.35 4,640,675.42

Annual report as at 31 December 2019 8

MANDARINE OPPORTUNITES

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. In the absence of sensitivity, securities with a residual term of three months are valued at the latest rate until maturity, while for those acquired at less than three months the interest is calculated on a straight-line basis - 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. Specific case: Floor: these options are measured by external counterparties on the basis of a marked-to-market discount model based on volatility and a market yield curve verified by the fund manager and taken from the market at closing each Thursday.

Forward exchange contracts: revaluation of foreign currency commitments at the daily rate with the premium/discount calculated according to the term of the contract.

Annual report as at 31 December 2019 9

MANDARINE OPPORTUNITES

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.

Financial management fees

- 0.90% maximum for I units (incl. tax) - 2.20% maximum for R units (incl. tax) - 0.60% maximum for M units (incl. tax) - 1.10% maximum for F 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 any performance exceeding the CAC All Tradable 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 and the net assets of a notional UCITS generating the benchmark performance and recording the same subscription and redemption pattern as the actual Fund. For each calculation of the net asset value, the outperformance fee, set at 15% including all taxes of any performance exceeding the CAC All Tradable NR – dividends reinvested (ISIN code: QS0011131883), is subject to a provision or a write- back limited to 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.

Commission-sharing of management fees

None

Interest accounting method

Accrued coupons included.

Allocation of profit and loss

- I units: Capitalisation - M units: Capitalisation - R units: Capitalisation - F units: Capitalisation

Annual report as at 31 December 2019 10

MANDARINE OPPORTUNITES

Allocation of capital gains realised

- I units: Capitalisation - M units: Capitalisation - R units: Capitalisation - F units: Capitalisation

Changes affecting the fund: None

Annual report as at 31 December 2019 11

MANDARINE OPPORTUNITES

Changes in net assets

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

Net assets at the beginning of the financial year 389,922,860.05 243,546,121.64

Subscriptions (including subscription fees paid to the UCI) 50,405,320.37 288,894,241.62 Redemptions (after deduction of redemption fees paid to the UCI) -143,863,858.77 -89,439,805.51

Capital gains realised on deposits and financial instruments 24,859,764.99 34,945,604.42

Capital losses realised on deposits and financial instruments -12,327,920.36 -27,136,278.22

Capital gains realised on financial futures - - Capital losses realised on financial futures - -

Transaction fees -1,121,306.87 -3,401,331.86

Exchange-rate differences - 0.02

Variances of the valuation differences on deposits and financial instruments 77,011,053.22 -62,370,229.53

Valuation difference for financial year N 61,072,598.69 -15,938,454.53

Valuation difference for financial year N-1 15,938,454.53 -46,431,775.00

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 3,416,028.12 4,884,537.47

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 388,301,940.75 389,922,860.05

Annual report as at 31 December 2019 12

MANDARINE OPPORTUNITES

Additional information 1

Financial year ended 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 -

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 OPPORTUNITES

Financial year Additional information 2 ended 31/12/2019

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

Number of securities issued 13,061.40900

Number of securities redeemed 10,734.42610

Category of class R (Currency: EUR) Number of securities issued 32,637.14450 Number of securities redeemed 84,083.16350

Category of class M (Currency: EUR) Number of securities issued -

Number of securities redeemed 169.00000

Category of class I (Currency: EUR) Number of securities issued 292.85830

Number of securities redeemed 1,633.04840

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 R (Currency: EUR)

Operating and management fees (*) 3,274,127.09 2.20

Outperformance fees 8,108.06 -

Other fees - -

Category of class I (Currency: EUR)

Operating and management fees (*) 280,854.53 0.90

Outperformance fees 5,994.91 -

Other fees - -

Category of class M (Currency: EUR)

Operating and management fees (*) 1,074,346.12 0.60

Outperformance fees 9,335.99 -

Other fees - -

Category of class F (Currency: EUR)

Operating and management fees (*) 184,474.05 1.10

Outperformance fees 793.99 -

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 14

MANDARINE OPPORTUNITES

Breakdown by type of receivable and payable

Financial year ended 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 47,163.63

Interest receivable -

TOTAL RECEIVABLES 47,163.63

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 432,302.48

Other creditors 139,322.39

Provision for market liquidity risk -

TOTAL PAYABLES 571,624.87

Annual report as at 31 December 2019 15

MANDARINE OPPORTUNITES

Breakdown by legal and economic nature of instrument

Financial year ended 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 16

MANDARINE OPPORTUNITES

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 - - - 5,117,443.57

Liabilities Temporary securities transactions - - - -

Financial accounts - - - -

Off-balance sheet Hedging transactions - - - -

Other transactions - - - -

Annual report as at 31 December 2019 17

MANDARINE OPPORTUNITES

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

[0 - 3 months] [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 5,117,443.57 - - - -

Liabilities Temporary securities transactions - - - - -

Financial accounts - - - - -

Off-balance sheet Hedging transactions - - - - -

Other transactions - - - - -

Annual report as at 31 December 2019 18

MANDARINE OPPORTUNITES

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

Currency

Assets None

Deposits -

Equities and similar securities -

Bonds and similar debt securities -

Debt securities -

UCI securities -

Temporary securities transactions -

Other financial instruments -

Receivables -

Financial accounts -

Liabilities None

Sale transactions on financial instruments -

Debts -

Temporary securities transactions -

Financial accounts -

Off-balance sheet None

Hedging transactions -

Other transactions -

As at 31 December 2019, the portfolio holds only financial instruments denominated in the accounting currency

Annual report as at 31 December 2019 19

MANDARINE OPPORTUNITES

Allocation of profit and loss

Category of class R (Currency: EUR)

Allocation table for distributable amounts related to profit or loss

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

Amounts remaining to be allocated

Balance carried forward - -

Result 53,167.75 412,263.83

Total 53,167.75 412,263.83

Allocation

Distribution - -

Balance carried forward for the financial year - -

Capitalisation 53,167.75 412,263.83 Total 53,167.75 412,263.83

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 20

MANDARINE OPPORTUNITES

Allocation table: amounts related to net capital gains and losses

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

Amounts remaining to be allocated

Prior undistributed net gains and losses (a) - -

Net gains and losses for the financial year 4,525,473.37 2,309,910.21

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

Total 4,525,473.37 2,309,910.21

Allocation

Distribution - -

Undistributed net gains and losses - -

Capitalisation 4,525,473.37 2,309,910.21

Total 4,525,473.37 2,309,910.21

Information relating to securities with distribution rights

Number of securities - -

Unit distribution - -

Annual report as at 31 December 2019 21

MANDARINE OPPORTUNITES

Category of class I (Currency: EUR)

Allocation table for distributable amounts related to profit or loss

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

Amounts remaining to be allocated

Balance carried forward - -

Result 337,830.91 639,924.26

Total 337,830.91 639,924.26

Allocation

Distribution - -

Balance carried forward for the financial year - -

Capitalisation 337,830.91 639,924.26

Total 337,830.91 639,924.26

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 22

MANDARINE OPPORTUNITES

Allocation table: amounts related to net capital gains and losses

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

Amounts remaining to be allocated

Prior undistributed net gains and losses (a) - -

Net gains and losses for the financial year 826,496.17 488,753.46

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

Total 826,496.17 488,753.46

Allocation

Distribution - -

Undistributed net gains and losses - -

Capitalisation 826,496.17 488,753.46

Total 826,496.17 488,753.46

Information relating to securities with distribution rights

Number of securities - -

Unit distribution - -

Annual report as at 31 December 2019 23

MANDARINE OPPORTUNITES

Category of class M (Currency: EUR)

Allocation table for distributable amounts related to profit or loss

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

Amounts remaining to be allocated

Balance carried forward - -

Result 2,756,328.25 3,350,293.06

Total 2,756,328.25 3,350,293.06

Allocation

Distribution - -

Balance carried forward for the financial year - -

Capitalisation 2,756,328.25 3,350,293.06

Total 2,756,328.25 3,350,293.06

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 24

MANDARINE OPPORTUNITES

Allocation table: amounts related to net capital gains and losses

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

Amounts remaining to be allocated

Prior undistributed net gains and losses (a) - -

Net gains and losses for the financial year 5,493,649.06 1,927,090.26

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

Total 5,493,649.06 1,927,090.26

Allocation

Distribution - -

Undistributed net gains and losses - -

Capitalisation 5,493,649.06 1,927,090.26

Total 5,493,649.06 1,927,090.26

Information relating to securities with distribution rights

Number of securities - -

Unit distribution - -

Annual report as at 31 December 2019 25

MANDARINE OPPORTUNITES

Category of class F (Currency: EUR)

Allocation table for distributable amounts related to profit or loss

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

Amounts remaining to be allocated

Balance carried forward - -

Result 217,968.44 238,194.27

Total 217,968.44 238,194.27

Allocation

Distribution - -

Balance carried forward for the financial year - -

Capitalisation 217,968.44 238,194.27

Total 217,968.44 238,194.27

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 26

MANDARINE OPPORTUNITES

Allocation table: amounts related to net capital gains and losses

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

Amounts remaining to be allocated Prior undistributed net gains and losses (a) - -

Net gains and losses for the financial year 660,914.04 213,931.97

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

Total 660,914.04 213,931.97

Allocation

Distribution - -

Undistributed net gains and losses - -

Capitalisation 660,914.04 213,931.97

Total 660,914.04 213,931.97

Information relating to securities with distribution rights

Number of securities - -

Unit distribution - -

Annual report as at 31 December 2019 27

MANDARINE OPPORTUNITES

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

Category of class F (Currency: EUR)

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

Net asset value (in EUR)

C units 528.12 614.73 539.53 685.17

Net assets (in thousands of EUR) 441.13 13,490.28 16,310.92 22,308.25

Number of securities

C units 835.27300 21,944.81259 30,231.26940 32,558.25230

Payment date 30/12/2016 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

C units 23.12 48.94 7.07 20.29

Unit capitalisation of result

C units 4.68 3.72 7.87 6.69

(*) “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 28

MANDARINE OPPORTUNITES

Category of class R (Currency: EUR)

31/12/2015 30/12/2016 29/12/2017 31/12/2018 31/12/2019

Net asset value (in EUR)

C units 1,013.57 1,018.29 1,171.86 1,017.48 1,278.82

Net assets (in thousands of EUR) 151,664.06 162,881.13 180,177.54 173,694.39 152,517.83

Number of securities

C units 149,633.43130 159,954.87780 153,753.26630 170,709.81210 119,263.79310

Payment date 31/12/2015 30/12/2016 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

C units 83.49 54.13 94.01 13.53 37.94

Unit capitalisation of result

C units -12.50 -1.38 -5.63 2.41 0.44

Annual report as at 31 December 2019 29

MANDARINE OPPORTUNITES

Category of class M (Currency: EUR)

31/12/2015 30/12/2016 29/12/2017 31/12/2018 31/12/2019

Net asset value (in EUR)

C units 97,490.87 99,494.91 116,005.85 102,041.70 130,315.77

Net assets (in thousands of EUR) 97.49 99.49 116.01 162,552.44 185,569.66

Number of securities

C units 1.00000 1.00000 1.00000 1,593.00000 1,424.00000

Payment date 31/12/2015 30/12/2016 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

C units 7,964.15 5,262.75 9,222.35 1,209.72 3,857.89

Unit capitalisation of result

C units 80.09 1,328.66 885.18 2,103.13 1,935.62

Annual report as at 31 December 2019 30

MANDARINE OPPORTUNITES

Category of class I (Currency: EUR)

31/12/2015 30/12/2016 29/12/2017 31/12/2018 31/12/2019

Net asset value (in EUR)

C units 11,071.27 11,265.55 13,103.10 11,526.01 14,674.97

Net assets (in thousands of EUR) 72,527.21 62,182.58 49,762.29 37,365.12 27,906.20

Number of securities

C units 6,550.93700 5,519.70740 3,797.74930 3,241.80830 1,901.61820

Payment date 31/12/2015 30/12/2016 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

C units 905.87 596.40 1,043.41 150.76 434.62

Unit capitalisation of result

C units -18.69 119.51 69.81 197.39 177.65

Annual report as at 31 December 2019 31

MANDARINE OPPORTUNITES

Inventory of financial instruments as at 31 December 2019

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

Equities and similar securities 383,708,958.42 98.82

Negotiated on a regulated or similar market 383,708,958.42 98.82

ADP 59,909.00 176.10 EUR 10,549,974.90 2.72

AIR LIQUIDE RGS SHS LOYALTY BONUS 147,939.00 126.20 EUR 18,669,901.80 4.81 2021

AIRBUS SE 60,337.00 130.48 EUR 7,872,771.76 2.03

ALD SA 683,313.00 13.84 EUR 9,457,051.92 2.44

ALTEN SA 74,152.00 112.50 EUR 8,342,100.00 2.15

ARKEMA 60,679.00 94.70 EUR 5,746,301.30 1.48

ATOS SE 128,716.00 74.32 EUR 9,566,173.12 2.46

AXA SA 693,621.00 25.11 EUR 17,416,823.31 4.49

BNP PARIBAS 458,136.00 52.83 EUR 24,203,324.88 6.22

BOUYGUES SA 242,831.00 37.88 EUR 9,198,438.28 2.37

COMPAGNIE DE SAINT GOBAIN 310,745.00 36.50 EUR 11,342,192.50 2.92

DANONE 113,677.00 73.90 EUR 8,400,730.30 2.16

EDENRED 128,274.00 46.10 EUR 5,913,431.40 1.52

ESSILORLUXOTTICA 101,671.00 135.80 EUR 13,806,921.80 3.56

EURONEXT NV - W/I 107,039.00 72.65 EUR 7,776,383.35 2.00

GAZTRANSPORT ET TECHNIGA SA 56,460.00 85.40 EUR 4,821,684.00 1.24

IPSEN 48,040.00 79.00 EUR 3,795,160.00 0.98

JCDECAUX SA 175,219.00 27.48 EUR 4,815,018.12 1.24

LA FRANÇAISE DES JEUX SAEM 580,544.00 23.83 EUR 13,831,460.80 3.56

LEGRAND SA 138,528.00 72.64 EUR 10,062,673.92 2.59

LOREAL SA 57,974.00 264.00 EUR 15,305,136.00 3.94

LVMH MOET HENNESSY LOUIS VUI 35,482.00 414.20 EUR 14,696,644.40 3.78

NEOEN SA 519,489.00 30.90 EUR 16,052,210.10 4.13

ORPEA 85,314.00 114.30 EUR 9,751,390.20 2.51

ROBERTET SA 10,188.00 923.00 EUR 9,403,524.00 2.42

RUBIS 159,969.00 54.75 EUR 8,758,302.75 2.26

SANOFI 95,957.00 89.62 EUR 8,599,666.34 2.21

SARTORIUS STEDIM BIOTECH 38,013.00 147.70 EUR 5,614,520.10 1.45

SEB SA 28,116.00 132.40 EUR 3,722,558.40 0.96

SMCP SA 480,556.00 9.45 EUR 4,541,254.20 1.17

SODEXO 71,205.00 105.65 EUR 7,522,808.25 1.94

SOLUTIONS 30 SE 848,333.00 9.96 EUR 8,449,396.68 2.18

STMICROELECTRONICS NV 401,765.00 23.97 EUR 9,630,307.05 2.48

Annual report as at 31 December 2019 32

MANDARINE OPPORTUNITES

SUEZ 663,696.00 13.49 EUR 8,949,940.56 2.30

TELEPERFORMANCE 84,079.00 217.40 EUR 18,278,774.60 4.71

THALES SA 35,054.00 92.52 EUR 3,243,196.08 0.84

UBISOFT ENTERTAINMENT 91,750.00 61.58 EUR 5,649,965.00 1.46

UNIBAIL-RODAMCO-WESTFIELD 68,734.00 140.65 EUR 9,667,437.10 2.49

WORLDLINE SA - W/I 162,841.00 63.15 EUR 10,283,409.15 2.65

Receivables 47,163.63 0.01

Debts -571,624.87 -0.15

Other financial accounts 5,117,443.57 1.32

TOTAL NET ASSETS 388,301,940.75 100.00

Annual report as at 31 December 2019 33