Annual report including audited financial statements as at 31st December 2020
CONVENTUM SICAV with multiple sub-funds under Luxembourg law
R.C.S. Luxembourg B70125
No distribution notices have been submitted for the Sub-Funds named below, which means that shares of these Sub- Funds may not be distributed to investors based within the territorial validity of the German “Kapitalanlagegesetzbuch (KAGB)” (Investment Code):
- CONVENTUM - Institutional Fund - CONVENTUM - MultiAssets - CONVENTUM - Fortuna Royale 1 - CONVENTUM - Fortuna Royale 2 - CONVENTUM - Fortuna Royale 3 - CONVENTUM - Echium - CONVENTUM - FensiFund - CONVENTUM - Mekks - CONVENTUM - Prime Selection - CONVENTUM - Createrra Progress World Equities - CONVENTUM - Createrra Multi Assets Index Fund - CONVENTUM - Dynamic Opportunities - CONVENTUM - Income Opportunites - CONVENTUM - Equity Opportunities - CONVENTUM - Waterlily W Flexible Equity Fund - CONVENTUM - Alluvium Global Fund
This report is the English translation of the audited annual including audited financial statements respectively unaudited semi- annual report in French. In case of a discrepancy of content and/or meaning between the French and English versions the French one shall prevail.
Subscriptions can only be made on the basis of the complete prospectus accompanied by the articles of incorporation and the fact sheets of each of the sub-funds or based on the key investor information document ("KIID").
The complete prospectus may only be distributed if accompanied by the last annual report and the last semi-annual report, if the latter is more recent than the annual report.
CONVENTUM
Table of contents
Organisation ...... 4 Report of the Board of Directors ...... 9 Audit report ...... 11 Combined statement of net assets ...... 14 Combined statement of operations and other changes in net assets ...... 15 CONVENTUM - Institutional Fund ...... 16 Report of the Board of Directors ...... 16 Statement of net assets ...... 18 Statement of operations and other changes in net assets ...... 19 Statistical information ...... 20 Statement of investments and other net assets ...... 21 Industrial and geographical classification of investments ...... 24 CONVENTUM - MultiAssets ...... 25 Report of the Board of Directors ...... 25 Statement of net assets ...... 26 Statement of operations and other changes in net assets ...... 27 Statistical information ...... 28 Statement of investments and other net assets ...... 29 Industrial and geographical classification of investments ...... 31 CONVENTUM - Lyrical Fund ...... 32 Report of the Board of Directors ...... 32 Statement of net assets ...... 33 Statement of operations and other changes in net assets ...... 34 Statistical information ...... 35 Statement of investments and other net assets ...... 36 Industrial and geographical classification of investments ...... 37 CONVENTUM - Fortuna Royale 1 ...... 38 Report of the Board of Directors ...... 38 Statement of net assets ...... 39 Statement of operations and other changes in net assets ...... 40 Statistical information ...... 41 Statement of investments and other net assets ...... 42 Industrial and geographical classification of investments ...... 43 CONVENTUM - Fortuna Royale 2 ...... 44 Report of the Board of Directors ...... 44 Statement of net assets ...... 45 Statement of operations and other changes in net assets ...... 46 Statistical information ...... 47 Statement of investments and other net assets ...... 48 Industrial and geographical classification of investments ...... 49 CONVENTUM - Fortuna Royale 3 ...... 50 Report of the Board of Directors ...... 50 Statement of net assets ...... 51 Statement of operations and other changes in net assets ...... 52 Statistical information ...... 53 Statement of investments and other net assets ...... 54 Industrial and geographical classification of investments ...... 55
1 CONVENTUM
Table of contents (continued)
CONVENTUM - Echium ...... 56 Report of the Board of Directors ...... 56 Statement of net assets ...... 59 Statement of operations and other changes in net assets ...... 60 Statistical information ...... 61 Statement of investments and other net assets ...... 62 Industrial and geographical classification of investments ...... 64 CONVENTUM - FensiFund ...... 65 Report of the Board of Directors ...... 65 Statement of net assets ...... 66 Statement of operations and other changes in net assets ...... 67 Statistical information ...... 68 Statement of investments and other net assets ...... 69 Industrial and geographical classification of investments ...... 70 CONVENTUM - Mekks ...... 71 Report of the Board of Directors ...... 71 Statement of net assets ...... 77 Statement of operations and other changes in net assets ...... 78 Statistical information ...... 79 Statement of investments and other net assets ...... 80 Industrial and geographical classification of investments ...... 83 CONVENTUM - Prime Selection ...... 84 Report of the Board of Directors ...... 84 Statement of net assets ...... 85 Statement of operations and other changes in net assets ...... 86 Statistical information ...... 87 Statement of investments and other net assets ...... 88 Industrial and geographical classification of investments ...... 89 CONVENTUM - Createrra Progress World Equities ...... 90 Report of the Board of Directors ...... 90 Statement of net assets ...... 92 Statement of operations and other changes in net assets ...... 93 Statistical information ...... 94 Statement of investments and other net assets ...... 95 Industrial and geographical classification of investments ...... 97 CONVENTUM - Createrra Multi Assets Index Fund ...... 98 Report of the Board of Directors ...... 98 Statement of net assets ...... 100 Statement of operations and other changes in net assets ...... 101 Statistical information ...... 102 Statement of investments and other net assets ...... 103 Industrial and geographical classification of investments ...... 105 CONVENTUM - Dynamic Opportunities ...... 106 Report of the Board of Directors ...... 106 Statement of net assets ...... 109 Statement of operations and other changes in net assets ...... 110 Statistical information ...... 111 Statement of investments and other net assets ...... 112 Industrial and geographical classification of investments ...... 115
2 CONVENTUM
Table of contents (continued)
CONVENTUM - Income Opportunities ...... 116 Report of the Board of Directors ...... 116 Statement of net assets ...... 119 Statement of operations and other changes in net assets ...... 120 Statistical information ...... 121 Statement of investments and other net assets ...... 122 Industrial and geographical classification of investments ...... 127 CONVENTUM - Equity Opportunities ...... 128 Report of the Board of Directors ...... 128 Statement of net assets ...... 130 Statement of operations and other changes in net assets ...... 131 Statistical information ...... 132 Statement of investments and other net assets ...... 133 Industrial and geographical classification of investments ...... 135 CONVENTUM - Waterlily W Flexible Equity Fund ...... 136 Report of the Board of Directors ...... 136 Statement of net assets ...... 137 Statement of operations and other changes in net assets ...... 138 Statistical information ...... 139 Statement of investments and other net assets ...... 140 Industrial and geographical classification of investments ...... 141 CONVENTUM - Alluvium Global Fund ...... 142 Report of the Board of Directors ...... 142 Statement of net assets ...... 144 Statement of operations and other changes in net assets ...... 145 Statistical information ...... 146 Statement of investments and other net assets ...... 147 Industrial and geographical classification of investments ...... 148 Notes to the financial statements ...... 149 Additional information (unaudited) ...... 163
3 CONVENTUM
Organisation
Registered office Société d'Investissement à Capital Variable 16, Boulevard Royal L-2449 LUXEMBOURG (since 1st January 2021)
9, Boulevard Prince Henri L-1724 LUXEMBOURG (until 31st December 2020)
Board of directors
Chairman Fernand REINERS Membre du Comité Exécutif BANQUE DE LUXEMBOURG Société Anonyme 14, Boulevard Royal L-2449 LUXEMBOURG
Directors Fernand GRULMS Independent Director 2, Rue Nicolas Flener L-8228 MAMER
Florence PILOTAZ Directeur BANQUE DE LUXEMBOURG Société Anonyme 14, Boulevard Royal L-2449 LUXEMBOURG
Nico THILL Directeur BANQUE DE LUXEMBOURG Société Anonyme 14, Boulevard Royal L-2449 LUXEMBOURG
Management Company and BLI - BANQUE DE LUXEMBOURG INVESTMENTS Domiciliary Agent Société Anonyme (since 1st January 2021) acting under its brand name CONVENTUM THIRD PARTY SOLUTIONS 16, Boulevard Royal L-2449 LUXEMBOURG
Board of Directors of the Management Company
Chairman Nicolas BUCK Chief Executive Officer SEQVOIA Société Anonyme IVY Building, 13-15 Parc d'Activités L-8308 CAPELLEN
4 CONVENTUM
Organisation (continued)
Directors Michèle BIEL General Manager BLI - BANQUE DE LUXEMBOURG INVESTMENTS Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG
Ruth BÜLTMANN Independent Director 40, Rue d’Ernster L-6977 OBERANVEN
Fernand GRULMS Independent Director 2, Rue Nicolas Flener L-8228 MAMER
Gary JANAWAY Member of the Executive Committee EUROPEAN FUND ADMINISTRATION Société Anonyme 2, Rue d’Alsace L-1122 LUXEMBOURG
Guy WAGNER Administrateur Directeur BLI - BANQUE DE LUXEMBOURG INVESTMENTS Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG
General Managers of the Michèle BIEL Management Company General Manager BLI - BANQUE DE LUXEMBOURG INVESTMENTS Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG
Georges ENGEL Directeur BLI - BANQUE DE LUXEMBOURG INVESTMENTS Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG
Dieter HEIN Directeur BLI - BANQUE DE LUXEMBOURG INVESTMENTS Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG
5 CONVENTUM
Organisation (continued)
Cédric LENOBLE Directeur BLI - BANQUE DE LUXEMBOURG INVESTMENTS Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG
Fanny NOSETTI - PERROT Directeur BLI - BANQUE DE LUXEMBOURG INVESTMENTS Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG
Guy WAGNER Administrateur Directeur BLI - BANQUE DE LUXEMBOURG INVESTMENTS Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG
Management Company and CONVENTUM ASSET MANAGEMENT Domiciliary Agent Société Anonyme (until 31st December 2020) 9, Boulevard Prince Henri L-1724 LUXEMBOURG
Board of Directors of the Management Company
Chairman Ruth BÜLTMANN Independent Director 40, Rue d’Ernster L-6977 OBERANVEN
Directors Michèle BIEL General Manager CONVENTUM ASSET MANAGEMENT Société Anonyme 9, Boulevard Prince Henri L-1724 LUXEMBOURG
Fernand GRULMS Independent Director 2, Rue Nicolas Flener L-8228 MAMER
Fanny NOSETTI-PERROT Conducting Officer BLI - BANQUE DE LUXEMBOURG INVESTMENTS (formerly BLI - BANQUE DE LUXEMBOURG NVESTMENTS S.A.) Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG (since 20th March 2020)
6 CONVENTUM
Organisation (continued)
General Managers of the Michèle BIEL Management Company General Manager CONVENTUM ASSET MANAGEMENT Société Anonyme 9, Boulevard Prince Henri L-1724 LUXEMBOURG
Georges ENGEL General Manager CONVENTUM ASSET MANAGEMENT Société Anonyme 9, Boulevard Prince Henri L-1724 LUXEMBOURG
Investment Managers for the Sub-Funds:
CONVENTUM - MultiAssets BLI - BANQUE DE LUXEMBOURG INVESTMENTS (formerly BLI - BANQUE DE LUXEMBOURG INVESTMENTS S.A.) acting under its brand name CONVENTUM THIRD PARTY SOLUTIONS Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG (since 1st January 2021)
CONVENTUM ASSET MANAGEMENT Société Anonyme 9, Boulevard Prince Henri L-1724 LUXEMBOURG (until 31st December 2020)
CONVENTUM - Institutional Fund BLI - BANQUE DE LUXEMBOURG INVESTMENTS CONVENTUM - Prime Selection (formerly BLI - BANQUE DE LUXEMBOURG INVESTMENTS S.A.) Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG
CONVENTUM - Lyrical Fund LYRICAL ASSET MANAGEMENT LP 250, West 55th Street 37th Floor NEW YORK, NY 10019
CONVENTUM - Fortuna Royale 1 SHELTER INVESTMENT MANAGEMENT CONVENTUM - Fortuna Royale 2 22, Rue de l’Industrie CONVENTUM - Fortuna Royale 3 L-8399 WINDHOF
CONVENTUM - Echium LAZARD FRERES GESTION Société par Actions Simplifiée 25, Rue de Courcelles F-75008 PARIS
CONVENTUM - FensiFund FUCHS & ASSOCIES FINANCE S.A. CONVENTUM - Waterlily W Flexible 47, Boulevard Prince Henri Equity Fund L-1724 LUXEMBOURG
7 CONVENTUM
Organisation (continued)
CONVENTUM - Mekks BLI - BANQUE DE LUXEMBOURG INVESTMENTS Segment 1 (formerly BLI - BANQUE DE LUXEMBOURG INVESTMENTS S.A.) Société Anonyme 16, Boulevard Royal L-2449 LUXEMBOURG
CONVENTUM - Mekks ARCHE WEALTH MANAGEMENT Segment 2 37A, Avenue J.F Kennedy L-1855 LUXEMBOURG
CONVENTUM - Createrra Progress CREATERRA S.A. World Equities 6, Rue d’Arlon CONVENTUM - Createrra Multi Assets L-8399 WINDHOF Index Fund
CONVENTUM - Dynamic Opportunities QUAESTOR VERMOGENSBEHEER N.V. CONVENTUM - Income Opportunities Hof ter Weze 7 CONVENTUM - Equity Opportunities B-8800 ROESELARE
CONVENTUM - Alluvium Global Fund ALLUVIUM ASSET MANAGEMENT PTY LTD Level 13 111, Elizabeth Street SYDNEY NSW 2000 AUSTRALIA
Investment Adviso
CONVENTUM - MultiAssets ELTAVER GmbH (formerly ELTAVER AG) Gotthardstrasse 2 CH-6304 ZUG
Depositary, Central Administration BANQUE DE LUXEMBOURG and Primary Paying Agent Société Anonyme 14, Boulevard Royal L-2449 LUXEMBOURG
Central Administration subcontractor EUROPEAN FUND ADMINISTRATION Société Anonyme 2, Rue d’Alsace L-1122 LUXEMBOURG
Auditor PRICEWATERHOUSECOOPERS, Société coopérative 2, Rue Gerhard Mercator L-2182 LUXEMBOURG
Global Distributors
CONVENTUM - Createrra Progress CREATERRA S.A. World Equities 6, Rue d’Arlon CONVENTUM - Createrra Multi Assets L-8399 WINDHOF Index Fund
8 CONVENTUM
Report of the Board of Directors
Dear investors.
As of the end of the financial year, the SICAV operated the following sub-funds :
Net assets of the sub-fund(s) (rounded Name of the sub-fund(s) up/down to the nearest million) as of the end of the financial year
CONVENTUM - Institutional Fund EUR 63 million CONVENTUM - MultiAssets EUR 21 million CONVENTUM - Lyrical Fund USD 939 million CONVENTUM - Fortuna Royale 1 EUR 57 million CONVENTUM - Fortuna Royale 2 EUR 61 million CONVENTUM - Fortuna Royale 3 EUR 58 million CONVENTUM – Echium EUR 22 million CONVENTUM – FensiFund EUR 16 million CONVENTUM – Mekks EUR 100 million CONVENTUM - Prime Selection EUR 20 million CONVENTUM - Createrra Progress World Equities EUR 28 million CONVENTUM - Createrra Multi Assets Index Fund EUR 29 million CONVENTUM - Dynamic Opportunities EUR 257 million CONVENTUM - Income Opportunities EUR 315 million CONVENTUM - Equity Opportunities EUR 45 million CONVENTUM - Waterlily W Flexible Equity Fund EUR 17 million CONVENTUM - Alluvium Global Fund EUR 28 million
During the financial year, the SICAV did not launch new sub-funds and did not terminate existing sub- funds.
At the end of the last financial year, the total net assets of the SICAV amounted to around EUR 1.903 billion compared to around EUR 1.963 billion at the end of the previous financial year – i.e. an increase of around 3.07%.
The change in the SICAV's overall net assets can primarily be attributed to total net redemptions of around EUR 82 million, partially offset by the positive overall net performance of the SICAV.
We invite you to read the reports of the investment managers (at the beginning of each section relating to a sub-fund) for general information on the financial markets and additional information regarding the implementation of the investment strategy of the Sub-Funds of the SICAV.
During the financial year, there have been no changes in the composition of the SICAV’s board of directors.
9 CONVENTUM
Report of the Board of Directors (continued)
The SICAV’s prospectus in effect at the date of this Report of the Board of Directors is dated 1st January 2021.
We would like to take the opportunity to thank our investors for their continued trust in the SICAV.
Comments regarding the impacts of the COVID-19 pandemic
The Board wishes to emphasize that the COVID-19 pandemic has not yet been overcome and still represents a significant challenge for our societies and economies and, consequently, for the environment in which our SICAV operates.
The Board will continue to monitor the evolution of the COVID-19 pandemic and the measures taken by government authorities in this regard and, in consultation and coordination with the SICAV's main service providers, will assess their impact on the SICAV's net assets, activities and organization.
Luxembourg, 9th February 2021 The Board of Directors
Note: The information in this report represents historical data and is not an indication of future results.
10 Audit report
To the Shareholders of Conventum
Our opinion
In our opinion, the accompanying annual accounts give a true and fair view of the financial position of Conventum (the “Fund”) and of each of its sub-funds as at 31 December 2020, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the annual accounts.
What we have audited
The Fund’s annual accounts comprise:
the combined statement of net assets for the Fund and the statement of net assets for each of the sub-funds as at 31 December 2020; the combined statement of operations and other changes in net assets for the Fund and the statement of operations and other changes in net assets for the sub-fund for the year then ended; the statement of investments and other net assets as at 31 December 2020; and the notes to the annual accounts, which include a summary of significant accounting policies.
Basis for opinion
We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier” (CSSF). Our responsibilities under the Law of 23 July 2016 and ISAs as adopted for Luxembourg by the CSSF are further described in the “Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the annual accounts” section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the Fund in accordance with the International Code of Ethics for Professional Accountants, including International Independence Standards, issued by the International Ethics Standards Board for Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the annual accounts. We have fulfilled our other ethical responsibilities under those ethical requirements.
Other information
The Board of Directors of the Fund is responsible for the other information. The other information comprises the information stated in the annual report but does not include the annual accounts and our audit report thereon.
Our opinion on the annual accounts does not cover the other information and we do not express any form of assurance conclusion thereon.
PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg T : +352 494848 1, F : +352 494848 2900, www.pwc.lu
Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256) R.C.S. Luxembourg B 65 477 - TVA LU25482518 In connection with our audit of the annual accounts, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the annual accounts or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Board of Directors of the Fund for the annual accounts
The Board of Directors of the Fund is responsible for the preparation and fair presentation of the annual accounts in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the annual accounts, and for such internal control as the Board of Directors of the Fund determines is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.
In preparing the annual accounts, the Board of Directors of the Fund is responsible for assessing the Fund’s and each of its sub-funds' ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of the Fund either intends to liquidate the Fund or close any of its sub-funds or to cease operations, or has no realistic alternative but to do so.
Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the annual accounts
The objectives of our audit are to obtain reasonable assurance about whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts.
As part of an audit in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
identify and assess the risks of material misstatement of the annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control;
evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors of the Fund;
12 conclude on the appropriateness of the Board of Directors of the Fund’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s or any of its sub-funds' ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the annual accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the Fund or any of its sub-funds to cease to continue as a going concern;
evaluate the overall presentation, structure and content of the annual accounts, including the disclosures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
PricewaterhouseCoopers, Société coopérative Luxembourg, 1 April 2021 Represented by @esig
@esig Antoine Geoffroy
Only the French version of the present annual report has been audited by the “Réviseur d’entreprises agréé”. Consequently, the Audit Report refers to the French version of the report; other versions result from a conscientious translation made under the responsibility of the Board of Directors of the FUND. In case of differences between the French version and the translation, the French version shall be the authentic text.
13 CONVENTUM
Combined statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 1,840,120,483.31 Option contracts at market value 86,874.80 Deposits on futures contracts 146,236.79 Cash at banks 62,956,216.68 Formation expenses, net 24,108.39 Receivable on issues of shares 298,668.59 Income receivable on portfolio 4,257,757.70 Bank interest receivable 2.72 Unrealised gain on futures contracts 31,291.52 Unrealised gain on forward foreign exchange contracts 56,527.16 Equalisation factor 2,053.12 Total assets 1,907,980,220.78
Liabilities Bank overdrafts 864,199.19 Bank interest payable 6,038.21 Unrealised loss on forward foreign exchange contracts 9,325.36 Expenses payable 3,740,742.42 Other liabilities 32,613.31 Total liabilities 4,652,918.49
Net assets at the end of the year 1,903,327,302.29
The accompanying notes are an integral part of these financial statements.
14 CONVENTUM
Combined statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 11,571,081.95 Interest on bonds and other debt securities, net 10,707,721.51 Bank interest 78,067.96 Equalisation 406.00 Other commissions received 37,187.01 Other income 153,813.88 Total income 22,548,278.31
Expenses Management fees 11,395,343.81 Performance fees 665,204.26 Depositary fees 961,372.18 Banking charges and other fees 140,589.74 Transaction fees 840,484.47 Central administration costs 798,109.79 Professional fees 116,628.38 Other administration costs 254,236.22 Subscription duty ("taxe d'abonnement") 447,876.10 Other taxes 538,584.08 Bank interest paid 243,125.93 Equalisation 41.46 Other expenses 323,006.01 Total expenses 16,724,602.43
Net investment income 5,823,675.88
Net realised gain/(loss) - on securities portfolio -88,453,747.64 - on option contracts -280,625.73 - on futures contracts -4,236,586.32 - on forward foreign exchange contracts 1,213,026.10 - on foreign exchange -2,795,407.74 Realised result -88,729,665.45
Net variation of the unrealised gain/(loss) - on securities portfolio 170,562,575.52 - on option contracts 32,572.32 - on futures contracts 680,729.34 - on forward foreign exchange contracts -86,263.19 Result of operations 82,459,948.54
Subscriptions 410,040,665.38
Redemptions -482,185,645.35
Total changes in net assets 10,314,968.57
Total net assets at the beginning of the year 1,963,613,867.17
Revaluation difference -70,601,533.45
Total net assets at the end of the year 1,903,327,302.29
The accompanying notes are an integral part of these financial statements.
15 CONVENTUM - Institutional Fund
Report of the Board of Directors from 1st January 2020 to 31st December 2020
In 2020, the bond markets experienced a high degree of volatility. Sovereign debt in the eurozone was initially on the rise prior to a significant correction in March due to pandemic clusters in Italy. Thus, in March, high-quality sovereign debt no longer played the role of a safe haven, in the midst of a correction across the markets. Not until the end of March did central banks intervene to bring a halt to the rise in sovereign yields.
This trend is well illustrated by the returns on the German 10-year bond, which went from -0.18% at the end of December 2019 to -0.85% on 9th March 2020. Ten days later, it would settle down at -0.19%. It fell again to close out the year 2020 at -0.56%, having fluctuated both upwards and downwards within a bandwidth of several dozen basis points. For an issuer with an AAA rating, such volatility had no precedent in recent times. With the re-adoption of quantitative easing measures, central banks have brought some stability to the markets.
With regard to corporate debt, if we look at the yield spreads between corporate debt and “risk-free” sovereign issuers since the beginning of 2020 – skipping over the interim milestones – there are no net changes in spreads. An observer could therefore conclude that nothing occurred to disrupt the level of corporate risk. The reality is quite the reverse, however. The coronavirus pandemic fundamentally altered the results and balance sheets, in an environment where many companies were experiencing an entirely new kind of stress. At the heart of the pandemic, yield differentials surged on average to more than triple their normal level. At the end of December, these spreads returned to levels lower than at 1st January 2020 (with the exception of real estate securities). The massive liquidity provided by central banks allowed companies to refinance themselves at historically low rates both in the short and medium term. This resulted in an annual performance of nearly 1.3% of EUR IG corporate debt (on terms ranging from 3 to 5 years) and nearly 4.23% for the same debt with an average term of 8 years on the basis of the JPMorgan Maggie Corporate index.
In terms of debt, large companies rated investment grade by rating agencies are doing very well, as they have been able to obtain very attractive (sometimes negative) financing rates despite weak revenues and rising debt. This situation illustrates an economic paradox that can be explained by the support of central banks and the advent of Covid vaccines which suggest a return to normal in a future that as yet remains somewhat uncertain.
In the financial markets, valuation multiples rose in 2020 for the second year in a row and are now at elevated levels. These high multiples significantly reduce the long-term return potential of equities. In an environment where interest rates are kept at artificially low levels, equities can be used as a hedge against inflation risk.
On the economic front, the consequences of lockdown remain dramatic. The eurozone economy shrank by 5.1% in 2020. In June, on an annual basis, GDP contracted by more than 14%.
At the end of December 2020, the sub-fund was invested at 14.07% in equities (including 2.00% in investment funds), 67.75% in bonds and 17.83% in cash.
16 CONVENTUM - Institutional Fund
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Outlook
The equity markets are currently showing signs of optimism. With corporate profits on the one hand and generous central banks and negative interest rates on the other, expectations of an economic recovery seem to provide a favourable context for stock prices to continue rising. However, the rise in valuation multiples shows that we are already witnessing a great deal of good things happening in prices. Barring a change in the stance of the monetary authorities, the main risk to equities lies in the fact that the pandemic is still not under control. Unpleasant surprises are therefore not to be ruled out on the economic front. In the longer term, we anticipate a profound change in inflation. The disinflationary environment of the last 40 years could leave room for much more inflationary times to come. The investment implications will be significant, even if not immediately obvious. For traditional fixed income investments, they will be negative. As real assets, equities can help an investor hedge against this change. As markets are trading at high multiples, however, it is important to be very selective while being prepared to deviate from benchmarks. Moreover, higher volatility will be a necessary price to pay in order to receive decent returns. Finally, gold is continuing to play its role in a diversified portfolio.
Note: The information in this report represents historical data and is not an indication of future results.
17 CONVENTUM - Institutional Fund
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 51,198,356.57 Cash at banks 11,158,637.45 Income receivable on portfolio 299,835.32 Total assets 62,656,829.34
Liabilities Bank interest payable 4,131.66 Expenses payable 77,575.78 Total liabilities 81,707.44
Net assets at the end of the year 62,575,121.90
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) B 3,573.053 EUR 17,513.07 62,575,121.90 62,575,121.90
The accompanying notes are an integral part of these financial statements.
18 CONVENTUM - Institutional Fund
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 108,724.62 Interest on bonds and other debt securities, net 565,439.13 Bank interest 7,725.72 Other income 14,057.22 Total income 695,946.69
Expenses Management fees 214,333.92 Depositary fees 38,819.52 Banking charges and other fees 8,226.60 Transaction fees 36,647.40 Central administration costs 27,194.80 Professional fees 6,402.99 Other administration costs 17,798.65 Subscription duty ("taxe d'abonnement") 5,445.64 Bank interest paid 26,320.15 Other expenses 856.17 Total expenses 382,045.84
Net investment income 313,900.85
Net realised gain/(loss) - on securities portfolio -543,428.78 - on foreign exchange -36,378.67 Realised result -265,906.60
Net variation of the unrealised gain/(loss) - on securities portfolio 582,548.39 Result of operations 316,641.79
Subscriptions 66,619,378.69
Redemptions -53,558,509.99
Total changes in net assets 13,377,510.49
Total net assets at the beginning of the year 49,197,611.41
Total net assets at the end of the year 62,575,121.90
The accompanying notes are an integral part of these financial statements.
19 CONVENTUM - Institutional Fund
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 46,621,170.45 49,197,611.41 62,575,121.90
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class B EUR 16,484.72 17,395.72 17,513.07
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year B 2,828.144 3,802.474 -3,057.565 3,573.053
20 CONVENTUM - Institutional Fund
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Shares CHF 160 Geberit AG Reg 60,773.41 81,637.99 0.13 CHF 880 Roche Holding Ltd Pref 191,126.82 250,349.64 0.40 CHF 30 SGS SA Reg 63,947.25 73,745.98 0.12 CHF 1,250 Sika Ltd 51,640.08 278,273.68 0.45 367,487.56 684,007.29 1.10 DKK 3,460 Novo Nordisk AS B 103,214.49 198,446.13 0.32 DKK 1,660 Novozymes AS B 71,894.20 77,992.00 0.13 175,108.69 276,438.13 0.45 EUR 540 Adidas AG Reg 113,346.00 160,866.00 0.26 EUR 2,600 Air Liquide SA 212,164.64 351,780.00 0.56 EUR 1,180 Beiersdorf AG 113,198.24 111,439.20 0.18 EUR 5,220 Danone 353,915.95 283,132.80 0.45 EUR 2,590 EssilorLuxottica SA 301,282.98 333,721.50 0.53 EUR 3,000 Fresenius SE & Co KGaA 167,383.22 113,520.00 0.18 EUR 10,270 Grifols SA A 234,832.84 246,582.70 0.39 EUR 1,590 Henkel AG & Co KGaA Pref 174,943.67 146,757.00 0.23 EUR 4,070 Legrand Holding SA 214,025.28 300,121.80 0.48 EUR 970 LVMH Moët Hennessy L Vuit SE 175,264.44 497,707.00 0.80 EUR 2,000 Pernod-Ricard SA 223,260.68 320,200.00 0.51 EUR 4,030 SAP SE 306,128.30 432,096.60 0.69 EUR 15,000 Unilever Plc Reg 677,527.49 746,400.00 1.19 3,267,273.73 4,044,324.60 6.45 GBP 2,110 Intertek Group Plc 67,633.06 135,367.61 0.22 GBP 3,010 Reckitt Benckiser Group Plc 160,173.89 220,808.27 0.35 GBP 17,990 Sage Group Plc 88,892.22 117,365.44 0.19 GBP 9,460 Smith & Nephew Plc 146,674.93 162,138.83 0.26 463,374.10 635,680.15 1.02 SEK 5,290 Assa Abloy AB B 77,897.79 106,419.37 0.17 SEK 10,300 Essity AB B Reg 245,976.83 270,646.80 0.43 323,874.62 377,066.17 0.60 USD 400 Abbott Laboratories 10,806.26 35,260.74 0.06 USD 40 Alphabet Inc A 27,585.14 56,456.53 0.09 USD 239 Anheuser-Busch InBev SA ADR spons repr 1 Share 20,238.59 13,726.25 0.02 USD 520 Apple Inc Reg 12,441.47 56,525.14 0.09 USD 477 Aptiv Plc Reg 20,405.38 50,714.82 0.08 USD 210 Becton Dickinson & Co 29,922.14 42,110.96 0.07 USD 10 Booking Holdings Inc Reg 14,615.69 17,926.76 0.03 USD 360 Brown-Forman Corp B Non voting 15,646.79 23,025.48 0.04 USD 160 Coca-Cola Co 6,106.54 7,080.76 0.01 USD 260 Constellation Brands Inc A 23,720.18 46,120.07 0.07 USD 50 Ecolab Inc 4,382.43 8,748.53 0.01 USD 110 Estée Lauder Companies Inc A 5,719.56 23,483.48 0.04 USD 239 Fedex Corp 21,675.27 50,510.28 0.08 USD 360 Fiserv Inc 34,785.74 33,034.02 0.05 USD 417 Gilead Sciences Inc 36,314.71 19,203.39 0.03 USD 260 Honeywell Intl Inc 22,560.55 44,585.62 0.07 USD 150 Johnson & Johnson 8,703.17 19,028.17 0.03 USD 500 Lowe's Companies Inc 13,636.86 65,260.33 0.10 USD 250 Mastercard Inc A 21,203.19 72,257.45 0.12 USD 430 Medtronic Plc Reg 17,597.80 40,422.06 0.07 USD 670 Microsoft Corp 22,480.97 120,737.80 0.19 USD 1,550 Mondelez Intl Inc 62,150.16 73,080.52 0.12 USD 680 Nike Inc B 34,457.05 78,262.33 0.13 USD 630 Oracle Corp 19,023.07 32,981.34 0.05 USD 410 PayPal Holdings Inc 10,211.34 77,160.59 0.12
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
21 CONVENTUM - Institutional Fund
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
USD 360 Pepsico Inc 37,514.09 43,109.86 0.07 USD 280 Philip Morris Intl Inc 19,346.09 18,546.03 0.03 USD 217 Rockwell Automation 19,918.17 43,941.55 0.07 USD 108 Roper Technologies Inc 10,615.62 37,033.34 0.06 USD 100 Thermo Fisher Scientific Inc 7,531.01 37,534.45 0.06 USD 600 TJX Cos Inc 20,176.56 33,313.01 0.05 USD 190 Union Pacific Corp 14,961.30 31,814.17 0.05 USD 50 United Health Group Inc 9,971.66 14,022.27 0.02 USD 180 United Parcel Service Inc B 18,011.90 24,323.38 0.04 USD 180 Verisk Analytics Inc 19,805.95 30,110.47 0.05 USD 400 Visa Inc A 13,382.16 71,002.72 0.11 USD 330 Zoetis Inc A 16,703.82 44,067.06 0.07 724,328.38 1,536,521.73 2.45 Total shares 5,321,447.08 7,554,038.07 12.07 Bonds EUR 1,500,000 Apple Inc 0% Sen 19/15.11.25 1,481,281.50 1,517,250.00 2.43 EUR 1,000,000 AT&T Inc 2.4% 14/15.03.24 1,051,130.00 1,072,845.00 1.71 EUR 2,000,000 Belgium 0.2% Ser 79 16/22.10.23 2,010,172.00 2,051,750.00 3.28 EUR 1,500,000 BMW Finance NV 1% EMTN Sen 15/21.01.25 1,524,090.00 1,570,432.50 2.51 EUR 1,500,000 Bq Féd du Crédit Mutuel 0.75% EMTN Sen 19/08.06.26 1,569,840.00 1,566,142.50 2.50 EUR 1,500,000 British Telecommunications Plc 1.75% EMTN 20163 1,592,800.00 1,626,832.50 2.60 16/10.03.26 EUR 1,500,000 Citigroup Inc 1.75% Sen 15/28.01.25 1,638,285.00 1,608,367.50 2.57 EUR 1,700,000 Electricité de France 2.75% EMTN Sen Reg S 12/10.03.23 1,880,523.00 1,808,672.50 2.89 EUR 2,000,000 Engie SA 0% EMTN Sen 19/04.03.27 1,987,502.00 2,003,230.00 3.20 EUR 1,000,000 Engie SA 3% EMTN Sen 12/01.02.23 1,144,620.00 1,068,855.00 1.71 EUR 1,000,000 Espana 1.5% T-Bills 17/30.04.27 1,093,910.00 1,116,660.00 1.78 EUR 1,000,000 Espana 1.6% Sen 15/30.04.25 1,072,390.60 1,091,100.00 1.74 EUR 1,000,000 European Fin Stability Facilit 2.25% EMTN Ser 42 12/05.09.22 1,098,140.00 1,049,875.00 1.68 EUR 1,000,000 France 0.5% 19/25.05.29 1,013,410.00 1,082,295.00 1.73 EUR 1,000,000 France 0.5% OAT Reg S Sen 16/25.05.26 997,427.50 1,062,375.00 1.70 EUR 2,000,000 Ireland 1.1% Sen Reg S 19/15.05.29 2,099,700.00 2,259,250.00 3.61 EUR 2,000,000 Merck & Co Inc 1.875% Sen 14/15.10.26 2,240,620.00 2,227,600.00 3.56 EUR 1,000,000 Microsoft Corp 3.125% Sen 13/06.12.28 1,242,970.00 1,262,545.00 2.02 EUR 2,250,000 Mitsubishi UFJ Fin Gr Inc 0.98% EMTN S14 Sen Reg 2,329,560.00 2,323,608.75 3.71 18/09.10.23 EUR 1,500,000 Oesterreich 1.75% 13/20.10.23 1,691,831.25 1,604,047.50 2.56 EUR 1,000,000 Peugeot SA 2% EMTN Sen 18/20.03.25 1,058,450.00 1,064,985.00 1.70 EUR 1,750,000 Procter & Gamble Co 1.125% Sen 15/02.11.23 1,810,877.00 1,821,968.75 2.91 EUR 1,500,000 Stora Enso Oyj 2.125% EMTN Sen 16/16.06.23 1,591,732.50 1,577,572.50 2.52 EUR 1,800,000 Telenor ASA 2.75% EMTN Sen 12/27.06.22 1,986,426.00 1,881,108.00 3.01 EUR 1,500,000 Telia Co AB 3% EMTN Ser 82 Sen Reg S 12/07.09.27 1,789,680.00 1,806,000.00 2.89 EUR 2,000,000 Vodafone Group Plc 0.5% EMTN Reg S Ser 63 16/30.01.24 1,978,000.00 2,037,120.00 3.26 40,975,368.35 41,162,488.00 65.78 USD 1,500,000 US 0.5% T-Notes Series W-2025 20/31.03.25 1,376,563.49 1,230,271.06 1.97
Total bonds 42,351,931.84 42,392,759.06 67.75
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
22 CONVENTUM - Institutional Fund
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Open-ended investment funds Investment funds (UCITS) JPY 5,000 BL Equities Japan BI Cap 503,448.92 719,440.38 1.15
USD 5,800 Aberdeen Standard Asia Pacific Equity Fd Ser A Cap 139,466.06 532,119.06 0.85
Total investment funds (UCITS) 642,914.98 1,251,559.44 2.00 Total investments in securities 48,316,293.90 51,198,356.57 81.82 Cash at banks 11,158,637.45 17.83 Other net assets/(liabilities) 218,127.88 0.35 Total 62,575,121.90 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
23 CONVENTUM - Institutional Fund
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Countries and governments 18.37 % Telecommunications services 13.47 % Financials 11.29 % Utilities 7.80 % Non-cyclical consumer goods 6.42 % Cyclical consumer goods 6.20 % Healthcare 5.52 % Raw materials 3.90 % Technologies 3.63 % Investment funds 2.00 % International institutions 1.68 % Industrials 1.54 % Total 81.82 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
United States of America 19.45 % France 18.76 % United Kingdom 8.07 % Spain 3.91 % Japan 3.71 % Luxembourg 3.68 % Ireland 3.68 % Sweden 3.49 % Belgium 3.30 % Norway 3.01 % Austria 2.56 % Finland 2.52 % The Netherlands 2.51 % Germany 1.54 % Switzerland 1.10 % Denmark 0.45 % Jersey 0.08 % Total 81.82 %
24 CONVENTUM - MultiAssets
Report of the Board of Directors from 1st January 2020 to 31st December 2020
The period under review in the third quarter of 2020 was characterised by nearly normal levels of volatility throughout the autumn. This was brought about by fears of an anticipated second wave of COVID-19 as well as somewhat less reassuring economic data after the summer recovery. In addition, the US elections were close at hand, where polls were in favour of Joe Biden, with fears of a strengthening of the progressive wing of the Democratic Party (with the risk of a tax hike). What has gone almost unnoticed both in Europe and in the US is the central bank's statements to continue to inject sufficient liquidity into the markets. This led to a global stock market rally, which was further strengthened following positive results from vaccine testing. In addition, the 27 Member States of the European Union decided to create a common fund to combat the coronavirus crisis. In the United States, interminable discussions on a new coronavirus stimulus programme successfully concluded in time for Christmas. In December, markets took great comfort in the initial roll-out of immunisations across the world’s largest economies in December and interpreted it as a return to pre-pandemic life. This was also reflected in corporate earnings forecasts. Given the expected recovery in economic activity, interest rates were adjusted slightly upwards.
After long periods of positive performance, growth and momentum, stocks reached their peak during the reporting period and demand for value stocks as well as cyclical stocks such as banks, energy and industrials increased again. Even emerging markets benefited from this recovery.
Portfolio development in 2020 and the future strategy:
The outperformance of the CONVENTUM - MultiAssets sub-fund for 2020 was slightly above 7.21%, with an increase in the fund of 13.05%. In 2020, the manager continued to focus on good quality large cap stocks with a growth trend, which later proved to be the right choice.
In terms of the allocation of assets in the portfolio, there is still no real alternative to an equity investment. However, what needs to be taken into account is a good diversification of investments, with preference given to the leaders across the various sectors. In the manager’s view, the biggest risk in the coming weeks has to do with the outcome of the elections in the US state of Georgia on 5th January 2021.
Note: The information in this report represents historical data and is not an indication of future results.
25 CONVENTUM - MultiAssets
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 21,303,607.27 Cash at banks 75,071.87 Income receivable on portfolio 5,507.72 Total assets 21,384,186.86
Liabilities Bank overdrafts 17.33 Expenses payable 42,459.95 Total liabilities 42,477.28
Net assets at the end of the year 21,341,709.58
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) B 10,084.308 EUR 2,116.33 21,341,709.58 21,341,709.58
The accompanying notes are an integral part of these financial statements.
26 CONVENTUM - MultiAssets
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 183,940.78 Bank interest 143.18 Other income 5,786.18 Total income 189,870.14
Expenses Management fees 126,486.43 Depositary fees 23,622.41 Banking charges and other fees 12,773.51 Transaction fees 7,702.60 Central administration costs 14,838.64 Professional fees 6,536.69 Other administration costs 3,161.96 Subscription duty ("taxe d'abonnement") 10,288.74 Bank interest paid 3,199.12 Other expenses 384.39 Total expenses 208,994.49
Net investment loss -19,124.35
Net realised gain/(loss) - on securities portfolio 1,281,014.63 - on forward foreign exchange contracts -943.10 - on foreign exchange -25,858.88 Realised result 1,235,088.30
Net variation of the unrealised gain/(loss) - on securities portfolio 1,072,846.77 Result of operations 2,307,935.07
Subscriptions -
Redemptions -5,560,386.06
Total changes in net assets -3,252,450.99
Total net assets at the beginning of the year 24,594,160.57
Total net assets at the end of the year 21,341,709.58
The accompanying notes are an integral part of these financial statements.
27 CONVENTUM - MultiAssets
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 22,855,403.63 24,594,160.57 21,341,709.58
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class B EUR 1,387.00 1,872.09 2,116.33
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year B 13,137.308 - -3,053.000 10,084.308
28 CONVENTUM - MultiAssets
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Shares CAD 3,000 Canadian National Railway Co 117,290.72 269,374.52 1.26
CHF 5,000 Nestlé SA Reg 293,631.19 481,997.87 2.26 CHF 500 Partners Group Holding Reg 344,812.35 480,795.88 2.25 CHF 700 Siegfried Holding SA Reg 227,571.20 421,667.24 1.98 CHF 2,500 Sika Ltd 190,096.12 558,925.22 2.62 1,056,110.86 1,943,386.21 9.11 EUR 1,200 Allianz SE Reg 232,728.00 240,840.00 1.13 EUR 7,000 Deutsche Post AG Reg 238,985.35 283,500.00 1.33 EUR 1,000 EssilorLuxottica SA 109,685.65 127,550.00 0.60 EUR 400 Kering Reg 193,799.00 237,760.00 1.11 EUR 2,000 Koninklijke DSM NV 160,453.28 281,600.00 1.32 EUR 1,700 Linde PLC Reg 199,519.69 362,100.00 1.70 EUR 2,000 SAP SE 146,436.59 214,440.00 1.00 EUR 2,000 Siemens AG Reg 210,553.30 235,040.00 1.10 EUR 3,000 Sixt AG Pref 192,900.00 172,200.00 0.81 1,685,060.86 2,155,030.00 10.10 GBP 7,000 BHP Group Plc Reg 108,889.24 150,525.53 0.70 GBP 7,100 Diageo Plc 179,853.15 228,260.38 1.07 288,742.39 378,785.91 1.77 HKD 4,800 Tencent Holdings Ltd 167,187.84 285,336.86 1.34
USD 2,400 Accenture Plc A 238,818.99 512,343.90 2.40 USD 4,800 Alibaba Group Holding Ltd ADR repr 8 Share 350,071.15 912,965.02 4.28 USD 400 Alphabet Inc A 279,442.52 572,945.41 2.68 USD 5,600 Apple Inc Reg 183,778.11 607,276.89 2.85 USD 2,400 Caterpillar Inc Reg 317,212.94 357,018.63 1.67 USD 2,700 Home Depot Inc 308,627.64 586,118.01 2.75 USD 4,000 Mastercard Inc A 291,939.71 1,166,851.91 5.47 USD 2,000 Medtronic Plc Reg 201,644.68 191,467.80 0.90 USD 8,000 Microsoft Corp 407,528.82 1,454,200.72 6.81 USD 600 NetFlix Inc 184,693.31 265,150.38 1.24 USD 8,000 Nike Inc B 421,116.15 924,942.79 4.33 USD 1,500 NVIDIA Corp 238,805.12 640,160.18 3.00 USD 2,000 S&P Global Inc 359,892.59 537,316.12 2.52 USD 5,000 Sensata Technologies Hg PLC Reg 215,330.41 215,511.61 1.01 USD 1,100 ServiceNow Inc Reg 337,920.97 494,829.19 2.32 USD 4,800 T-Mobile US Inc 228,696.97 528,996.40 2.48 USD 16,800 Taiwan Semiconduct Mfg Co Ltd ADR repr 5 Shares 384,698.33 1,497,116.70 7.01 USD 9,600 TJX Cos Inc 276,190.93 535,782.94 2.51 USD 2,400 United Health Group Inc 409,224.12 687,832.63 3.22 USD 4,800 Walmart Inc Reg 333,610.33 565,478.91 2.65 USD 7,000 Zoetis Inc A 176,496.11 946,796.34 4.44 6,145,739.90 14,201,102.48 66.54 Total shares 9,460,132.57 19,233,015.98 90.12 Money market instruments Money market instruments CAD 455,000 Canada 0% T-Bills 20/04.03.21 291,208.81 291,921.24 1.37
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
29 CONVENTUM - MultiAssets
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
USD 1,085,000 US 0% T-Bills 20/15.04.21 923,350.56 886,540.94 4.15 USD 95,000 US 0% T-Bills Sen 20/22.04.21 79,965.61 77,621.10 0.36 1,003,316.17 964,162.04 4.51 Total money market instruments 1,294,524.98 1,256,083.28 5.88 Open-ended investment funds Investment funds (UCITS) USD 2,600 Pictet Security I USD Cap 487,829.55 814,508.01 3.82 Total investment funds (UCITS) 487,829.55 814,508.01 3.82 Total investments in securities 11,242,487.10 21,303,607.27 99.82 Cash at banks 75,071.87 0.35 Bank overdrafts -17.33 0.00 Other net assets/(liabilities) -36,952.23 -0.17 Total 21,341,709.58 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
30 CONVENTUM - MultiAssets
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Technologies 38.56 % Cyclical consumer goods 14.15 % Healthcare 10.54 % Industrials 8.69 % Raw materials 6.34 % Non-cyclical consumer goods 5.98 % Countries and governments 5.88 % Investment funds 3.82 % Financials 3.38 % Telecommunications services 2.48 % Total 99.82 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
United States of America 55.45 % Switzerland 9.11 % Taiwan 7.01 % Cayman Islands 5.62 % Germany 5.37 % Ireland 5.00 % Luxembourg 3.82 % United Kingdom 2.78 % Canada 2.63 % France 1.71 % The Netherlands 1.32 % Total 99.82 %
31 CONVENTUM - Lyrical Fund
Report of the Board of Directors from 1st January 2020 to 31st December 2020
Class I of the Sub-Fund performed well in 2020, given that net asset value ("NAV") increased 10.3%, from US $247.00 to US $272.53.
At the end of the financial year, the Sub-Fund was invested in 34 large and mid caps, with no positions accounting for more than 5.4% of the portfolio.
The number of shares issued by the sub-fund decreased from 5,756,566 to 4,948,357.
Note: The information in this report represents historical data and is not an indication of future results.
32 CONVENTUM - Lyrical Fund
Statement of net assets (in USD) as at 31st December 2020
Assets Securities portfolio at market value 919,906,221.56 Cash at banks 20,470,906.61 Receivable on issues of shares 9,999.74 Income receivable on portfolio 111,986.33 Total assets 940,499,114.24
Liabilities Bank overdrafts 5,582.08 Expenses payable 1,124,735.10 Total liabilities 1,130,317.18
Net assets at the end of the year 939,368,797.06
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in USD) B 226,133.408 USD 178.89 40,451,971.93 I 1,141,592.047 USD 272.53 311,115,841.54 S 3,548,137.310 USD 164.40 583,330,420.43 W 32,494.113 USD 137.58 4,470,563.16 939,368,797.06
The accompanying notes are an integral part of these financial statements.
33 CONVENTUM - Lyrical Fund
Statement of operations and other changes in net assets (in USD) from 1st January 2020 to 31st December 2020
Income Dividends, net 9,203,021.67 Bank interest 21,171.02 Total income 9,224,192.69
Expenses Management fees 3,683,739.82 Depositary fees 271,961.86 Banking charges and other fees 33,745.22 Transaction fees 316,786.38 Central administration costs 140,340.21 Professional fees 13,242.11 Other administration costs 148,282.45 Subscription duty ("taxe d'abonnement") 84,122.94 Other taxes 134.35 Bank interest paid 3,127.17 Other expenses 70,765.38 Total expenses 4,766,247.89
Net investment income 4,457,944.80
Net realised gain/(loss) - on securities portfolio -109,256,009.65 - on foreign exchange -1,184.83 Realised result -104,799,249.68
Net variation of the unrealised gain/(loss) - on securities portfolio 147,736,450.05 Result of operations 42,937,200.37
Subscriptions 257,054,984.99
Redemptions -321,850,825.16
Total changes in net assets -21,858,639.80
Total net assets at the beginning of the year 961,227,436.86
Total net assets at the end of the year 939,368,797.06
The accompanying notes are an integral part of these financial statements.
34 CONVENTUM - Lyrical Fund
Statistical information (in USD) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 USD 1,029,343,826.74 961,227,436.86 939,368,797.06
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class B USD 131.69 163.00 178.89 I USD 198.49 247.00 272.53 S USD 118.55 148.26 164.40 W USD 100.53 124.85 137.58
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year B 484,799.645 89,337.062 -348,003.299 226,133.408 I 1,072,608.541 384,750.687 -315,767.181 1,141,592.047 S 3,972,692.135 1,233,552.286 -1,658,107.111 3,548,137.310 W 226,465.909 13,479.619 -207,451.415 32,494.113
35 CONVENTUM - Lyrical Fund
Statement of investments and other net assets (in USD) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Shares USD 558,839 Adient Plc Reg 31,122,411.23 19,430,832.03 2.07 USD 658,137 AerCap Holdings NV 24,320,287.56 29,997,884.46 3.19 USD 198,257 Affiliated Managers Group Inc 28,164,496.74 20,162,736.90 2.15 USD 735,873 Air Lease Corp A 27,048,365.54 32,687,478.66 3.48 USD 215,729 Alliance Data Syst Corp 25,800,506.46 15,985,518.90 1.70 USD 215,707 Ameriprise Financial Inc Reg 26,185,334.91 41,918,341.31 4.46 USD 322,481 Arrow Electronics Inc 24,419,583.06 31,377,401.30 3.34 USD 196,353 Assurant Inc 16,700,939.57 26,747,205.66 2.85 USD 489,796 Berry Global Group Inc Reg 18,048,857.75 27,521,637.24 2.93 USD 63,779 Broadcom Inc Reg 9,455,758.64 27,925,635.15 2.97 USD 281,862 Celanese Corp Reg 22,630,911.35 36,625,148.28 3.90 USD 381,066 Centene Corp 22,956,436.27 22,875,391.98 2.43 USD 1,034,320 Commscope Holding Co Inc 26,815,553.83 13,859,888.00 1.48 USD 208,125 Concentrix Corp Reg 14,942,149.42 20,541,937.50 2.19 USD 386,011 Crown Holdings Inc 20,602,098.88 38,678,302.20 4.12 USD 507,012 Dell Technologies Inc 20,469,050.14 37,158,909.48 3.96 USD 209,949 EOG Resources Inc 16,456,292.65 10,470,156.63 1.11 USD 1,771,992 Flex Ltd 27,766,528.74 31,860,416.16 3.39 USD 1,872,404 Hanesbrands Inc 25,534,724.00 27,299,650.32 2.91 USD 168,819 HCA Healthcare Inc 15,121,691.56 27,763,972.74 2.96 USD 842,427 Liberty Global Plc C Reg 18,113,321.80 19,923,398.55 2.12 USD 515,002 Lincoln National Corp 26,924,682.72 25,909,750.62 2.76 USD 542,596 NRG Energy Inc 19,016,601.86 20,374,479.80 2.17 USD 1,497,208 O-I Glass Inc Reg 26,273,776.33 17,816,775.20 1.90 USD 704,013 Quanta Services Inc 24,843,968.59 50,703,016.26 5.40 USD 1,408,068 Qurate Retail Inc A Reg 17,127,409.99 15,446,505.96 1.64 USD 898,510 Suncor Energy Inc 26,255,770.93 15,076,997.80 1.60 USD 209,933 Synnex Corp Reg 11,006,257.55 17,096,943.52 1.82 USD 185,991 United Rentals Inc 25,948,966.45 43,133,172.81 4.59 USD 1,622,114 Univar Solutions Inc Reg 18,315,611.77 30,836,387.14 3.28 USD 394,072 Western Digital Corp 26,082,910.38 21,827,648.08 2.32 USD 155,470 Whirlpool Corp 26,370,349.63 28,060,780.30 2.99 USD 415,211 WR Grace & Co Reg 20,029,882.34 22,761,867.02 2.42 USD 419,883 XPO Logistics Inc 26,442,162.52 50,050,053.60 5.33 Total investments in securities 757,313,651.16 919,906,221.56 97.93 Cash at banks 20,470,906.61 2.18 Bank overdrafts -5,582.08 0.00 Other net assets/(liabilities) -1,002,749.03 -0.11 Total 939,368,797.06 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
36 CONVENTUM - Lyrical Fund
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Financials 25.38 % Technologies 21.47 % Raw materials 16.65 % Industrials 12.43 % Cyclical consumer goods 11.73 % Healthcare 5.39 % Energy 2.71 % Utilities 2.17 % Total 97.93 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
United States of America 85.56 % Singapore 3.39 % The Netherlands 3.19 % United Kingdom 2.12 % Ireland 2.07 % Canada 1.60 % Total 97.93 %
37 CONVENTUM - Fortuna Royale 1
Report of the Board of Directors from 1st January 2020 to 31st December 2020
The CONVENTUM - Fortuna Royale 1 sub-fund ended 2020 with a negative performance of -1.25% for the A units, which is slightly below the benchmarks of carefully mixed funds.
During the first quarter, all fixed income funds, defensive mixed funds and equity funds were hit hard by the massive outflows on the markets following COVID-19. With the exception of government bonds and gold, there were no safe havens, and the B units posted a return of -10.2% in the first quarter of 2020. The most negative contributions came from H2O Adagio, Invesco Pan European High Income, DPAM Emerging Market Bonds and DPAM Corporate High Yield bonds, which all sustained losses in excess of -10% in the first quarter. The H2O Adagio fund was immediately sold in March, whereas the other funds were held in the portfolio and recovered well from the crisis later this year. In April, we also increased our positions in the top-performing funds of Flossbach von Storch (Bond Opportunities and Multiple Opportunities) and also spotted opportunities in US inflation-linked bonds. After the summer, we also added funds in emerging market corporate debt and fallen angels. After being more cautiously positioned during the first quarter, with an average equity exposure of 15%, the percentage of equities was increased during the year to around 19% at the end of the year (close to the maximum authorised limit of 20% for the fund). All of these elements permitted the fund to post a strong recovery after the setback in the first quarter.
105 Performance - Part A
101
97
93
89
85 31/12/19 13/03/20 25/05/20 06/08/20 18/10/20 31/12/20
Conventum Fortuna Royale 1 A
Note: The information in this report represents historical data and is not an indication of future results.
38 CONVENTUM - Fortuna Royale 1
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 56,482,809.45 Cash at banks 473,070.69 Total assets 56,955,880.14
Liabilities Expenses payable 65,917.40 Total liabilities 65,917.40
Net assets at the end of the year 56,889,962.74
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) A 15,742.771 EUR 548.39 8,633,147.79 J 97,238.677 EUR 496.27 48,256,814.95 56,889,962.74
The accompanying notes are an integral part of these financial statements.
39 CONVENTUM - Fortuna Royale 1
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 61,204.00 Total income 61,204.00
Expenses Management fees 565,020.34 Depositary fees 39,601.13 Banking charges and other fees 1,880.70 Transaction fees 8,803.13 Central administration costs 43,367.17 Professional fees 5,267.02 Other administration costs 10,709.56 Subscription duty ("taxe d'abonnement") 3,821.73 Other taxes 20.49 Bank interest paid 9,619.21 Other expenses 1,104.22 Total expenses 689,214.70
Net investment loss -628,010.70
Net realised gain/(loss) - on securities portfolio 38,693.23 Realised result -589,317.47
Net variation of the unrealised gain/(loss) - on securities portfolio 249,774.64 Result of operations -339,542.83
Subscriptions 9,677,499.78
Redemptions -13,829,629.72
Total changes in net assets -4,491,672.77
Total net assets at the beginning of the year 61,381,635.51
Total net assets at the end of the year 56,889,962.74
The accompanying notes are an integral part of these financial statements.
40 CONVENTUM - Fortuna Royale 1
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 53,253,157.97 61,381,635.51 56,889,962.74
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class A EUR 527.57 555.34 548.39 J EUR 469.89 498.58 496.27
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year A 17,352.771 - -1,610.000 15,742.771 J 103,784.677 20,395.000 -26,941.000 97,238.677
41 CONVENTUM - Fortuna Royale 1
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Open-ended investment funds Investment funds (UCITS) EUR 32,200 BlueBay Fds Inv Grade EUR Aggregate Bond C Cap 3,854,543.03 4,070,080.00 7.15 EUR 23,800 DPAM L Bonds Emerging Mks Sustainable F Cap 3,057,150.95 3,252,746.00 5.72 EUR 21,300 DPAM L Bonds EUR Corporate High Yield F Cap 2,981,398.16 3,233,127.00 5.68 EUR 19,969.3507 Evli Nordic Corp Bd Fd IB EUR Cap 2,949,577.57 3,006,904.95 5.28 EUR 285,000 Fidelity Funds Asian Bond EUR A Cap 2,875,650.00 2,904,150.00 5.10 EUR 55,500 Flossbach von Storch Bond Opp IT Cap 6,202,082.96 6,950,265.00 12.22 EUR 40,000 Flossbach von Storch Multiple Opportunities II IT Cap 6,189,460.00 6,542,000.00 11.50 EUR 110,000 Fundsmith Equity Fd I Cap 4,948,944.00 5,199,623.00 9.14 EUR 270,000 PIMCO Fds Gl Investors Ser Plc Inc Istl EUR Cap 3,787,241.13 3,998,700.00 7.03 EUR 220,000 Schroder Intl Sel Fd EUR Corp Bond C Cap 5,803,358.00 5,958,876.00 10.47 EUR 8,500 Tikehau Income Cross Assets I Cap 4,700,080.75 5,192,820.00 9.13 Total investment funds (UCITS) 47,349,486.55 50,309,291.95 88.42 Tracker funds (UCITS) EUR 16,750 iShares II Plc USD TIPS UCITS ETF Cap 3,534,329.15 3,320,017.50 5.84 EUR 520,000 iShares IV Plc Fallen Angels HY Corp Bd UCITS ETF Hedge 2,893,800.00 2,853,500.00 5.02 Dist Total tracker funds (UCITS) 6,428,129.15 6,173,517.50 10.86 Total investments in securities 53,777,615.70 56,482,809.45 99.28 Cash at banks 473,070.69 0.83 Other net assets/(liabilities) -65,917.40 -0.11 Total 56,889,962.74 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
42 CONVENTUM - Fortuna Royale 1
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Investment funds 99.28 % Total 99.28 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
Luxembourg 66.98 % Ireland 17.89 % France 9.13 % Finland 5.28 % Total 99.28 %
43 CONVENTUM - Fortuna Royale 2
Report of the Board of Directors from 1st January 2020 to 31st December 2020
The CONVENTUM - Fortuna Royale 2 sub-fund closed out 2020 with a performance of +9.6% for the B units, well above benchmarks such as MSCi Europe (-3.3%) and MSCi Europe Small Cap (+4.6%).
Most of the funds we selected in the portfolio prior to the market drop in March proved resilient and the outperformance of the CONVENTUM - Fortuna Royale 2 fund was largely due to a strong selection of funds already in place before the crisis. However, some changes were made in early April in response to the coronavirus crisis: we sold the Vector Navigator fund after a significant period of underperformance and doubts about the strength of the fund's positioning for 2020. The Echiquier Agenor and Blackrock World Healthscience funds were added due to their high-quality health care and technology selections. Later in the year, the Liontrust UK Smaller Companies and Meridian European Smaller Companies funds were also sold after underperforming the mid- and small-cap companies during the COVID-19 crisis and were replaced by Fidelity European Dynamic Growth, which better positioned the large growth companies that proved to be more resilient during the various lockdowns. Following positive news on vaccine results towards the end of the year, we continued to augment exposure to value companies that were added to the BlackRock European Value fund in the fourth quarter.
Performance - Part B 109
101
93
85
77
69 31/12/19 13/03/20 25/05/20 06/08/20 18/10/20 31/12/20
Conventum Fortuna Royale 2 B
Note: The information in this report represents historical data and is not an indication of future results.
44 CONVENTUM - Fortuna Royale 2
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 60,603,587.65 Cash at banks 294,586.40 Total assets 60,898,174.05
Liabilities Expenses payable 70,917.35 Total liabilities 70,917.35
Net assets at the end of the year 60,827,256.70
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) B 16,700.185 EUR 817.17 13,646,845.98 I 83,528.368 EUR 564.84 47,180,410.72 60,827,256.70
The accompanying notes are an integral part of these financial statements.
45 CONVENTUM - Fortuna Royale 2
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 12,570.24 Other commissions received 3,589.17 Total income 16,159.41
Expenses Management fees 585,612.82 Depositary fees 38,753.39 Banking charges and other fees 970.82 Transaction fees 1,817.00 Central administration costs 42,156.26 Professional fees 5,267.02 Other administration costs 10,709.73 Subscription duty ("taxe d'abonnement") 4,769.08 Other taxes 745.24 Bank interest paid 5,600.67 Other expenses 1,021.08 Total expenses 697,423.11
Net investment loss -681,263.70
Net realised gain/(loss) - on securities portfolio -274,269.53 - on foreign exchange 14.93 Realised result -955,518.30
Net variation of the unrealised gain/(loss) - on securities portfolio 6,176,631.61 Result of operations 5,221,113.31
Subscriptions 3,530,090.05
Redemptions -12,732,334.18
Total changes in net assets -3,981,130.82
Total net assets at the beginning of the year 64,808,387.52
Total net assets at the end of the year 60,827,256.70
The accompanying notes are an integral part of these financial statements.
46 CONVENTUM - Fortuna Royale 2
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 62,790,249.77 64,808,387.52 60,827,256.70
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class B EUR 600.72 745.72 817.17 I EUR 408.67 511.36 564.84
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year B 19,907.729 693.000 -3,900.544 16,700.185 I 97,705.368 6,002.000 -20,179.000 83,528.368
47 CONVENTUM - Fortuna Royale 2
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Open-ended investment funds Investment funds (UCITS) EUR 42,000 BlackRock Global Fds European Value D2 Cap 3,167,220.00 3,223,920.00 5.30 EUR 157,500 Comgest Growth Plc Europe Opportunities I EUR Cap 5,718,908.66 8,060,850.00 13.25 EUR 39,000 Digital Fds Stars Europe I Cap 4,873,522.80 6,021,600.00 9.90 EUR 17,000 DPAM Invest B SA Eq Eur Sustainable F Cap 5,247,314.44 6,393,360.00 10.51 EUR 1,480 Echiquier Agenor SRI Mid Cap Europe I EUR Cap 3,943,135.10 4,889,683.20 8.04 EUR 3,416 Echiquier Entrepreneurs G Cap 5,170,320.81 7,704,788.00 12.67 EUR 130,000 Fidelity Fds Eur Dynamic Growth Y ACC EUR Cap 3,590,600.00 3,615,300.00 5.94 EUR 9,500 Lupus Alpha Fds Smaller German Champ C Dis 3,975,559.09 5,126,865.00 8.43 EUR 136,000 Nordea 1 SICAV Nordic Equity Small Cap Fd BI Cap 3,643,440.00 5,626,320.00 9.25 EUR 335,758.24 Threadneedle (Lux) Eur Sm Companies 3E Cap 3,292,458.46 4,714,381.45 7.75 EUR 26,000 UBAM Swiss Equity IHC Cap 4,429,153.68 5,226,520.00 8.59 Total investments in securities 47,051,633.04 60,603,587.65 99.63 Cash at banks 294,586.40 0.48 Other net assets/(liabilities) -70,917.35 -0.11 Total 60,827,256.70 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
48 CONVENTUM - Fortuna Royale 2
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Investment funds 99.63 % Total 99.63 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
Luxembourg 55.16 % France 20.71 % Ireland 13.25 % Belgium 10.51 % Total 99.63 %
49 CONVENTUM - Fortuna Royale 3
Report of the Board of Directors from 1st January 2020 to 31st December 2020
The CONVENTUM - Fortuna Royale 3 sub-fund ended 2020 with a performance of +19.25% for the B units, well above benchmarks such as MSCi World (+6.3%) and MSCi World All Countries (-6.7%).
Most of the funds we had selected in the portfolio prior to the massive outflows on the markets in March proved resilient, and the outperformance of the Royale 3 fund was largely due to a good selection of funds, the focus on global growth and the exposure to emerging markets already in place before the crisis. At the beginning of April, however, some changes were made in response to the COVID-19 crisis: we sold the Vector Navigator fund after a significant period of underperformance and doubts about the strength of the fund’s positioning for 2020. The Blackrock World Healthscience fund was added due to its selection of high-quality securities in the healthcare sector. It also became clear that China was ahead of the rest of the world in managing the pandemic, and in April we increased investments in this region via the UBS Greater China fund. The resulting portfolio proved very effective, and only a few additional changes were made during the second half of the year. In October, the Echiquier World Next Leaders fund was added due to its strong positioning in growth companies. The Emerging Market Small Cap fund was sold after a period of underperformance.
120 Performance - Part B
110
100
90
80
70 31/12/19 13/03/20 25/05/20 06/08/20 18/10/20 31/12/20
Conventum Fortuna Royale 3 B
Note: The information in this report represents historical data and is not an indication of future results.
50 CONVENTUM - Fortuna Royale 3
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 56,993,224.04 Cash at banks 638,520.93 Total assets 57,631,744.97
Liabilities Expenses payable 65,767.43 Total liabilities 65,767.43
Net assets at the end of the year 57,565,977.54
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) B 12,886.341 EUR 840.12 10,826,014.51 I 72,574.214 EUR 644.03 46,739,963.03 57,565,977.54
The accompanying notes are an integral part of these financial statements.
51 CONVENTUM - Fortuna Royale 3
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Total income 0.00
Expenses Management fees 446,947.79 Depositary fees 32,181.47 Banking charges and other fees 516.45 Transaction fees 1,907.98 Central administration costs 40,434.23 Professional fees 5,267.02 Other administration costs 10,709.56 Subscription duty ("taxe d'abonnement") 3,467.25 Other taxes 305.31 Bank interest paid 4,762.91 Other expenses 752.03 Total expenses 547,252.00
Net investment loss -547,252.00
Net realised gain/(loss) - on securities portfolio 143,949.88 - on foreign exchange 7,166.70 Realised result -396,135.42
Net variation of the unrealised gain/(loss) - on securities portfolio 9,704,856.23 Result of operations 9,308,720.81
Subscriptions 13,129,443.85
Redemptions -5,939,985.44
Total changes in net assets 16,498,179.22
Total net assets at the beginning of the year 41,067,798.32
Total net assets at the end of the year 57,565,977.54
The accompanying notes are an integral part of these financial statements.
52 CONVENTUM - Fortuna Royale 3
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 35,095,599.12 41,067,798.32 57,565,977.54
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class B EUR 567.51 704.50 840.12 I EUR 428.17 535.77 644.03
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year B 10,533.012 3,264.000 -910.671 12,886.341 I 62,801.243 19,659.000 -9,886.029 72,574.214
53 CONVENTUM - Fortuna Royale 3
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Open-ended investment funds Investment funds (UCITS) EUR 68,000 BlackRock Global Fds World Healthscience D Cap 3,512,705.00 3,601,960.00 6.26 EUR 22,600 DPAM Invest B SA Equities NewGems Sus F EUR Cap 3,468,384.25 5,898,374.00 10.25 EUR 23,500 Echiquier SICAV World Next Leaders K Cap 4,364,595.00 5,204,075.00 9.04 EUR 1,055 Echiquier World Equity Growth I Cap 2,585,771.15 3,644,086.05 6.33 EUR 799,000 Federat Hermes Inv Fds Plc Gl Emerging Mks Eq F EUR Cap 3,253,368.20 3,864,922.80 6.71 EUR 111,000 Fundsmith Equity Fd I Cap 4,502,840.50 5,246,892.30 9.12 EUR 92,000 Morgan Stanley Inv Fds Global Opportunity ZH Cap 3,761,081.05 6,091,320.00 10.58 EUR 192,200 Nordea 1 SICAV Global Climate & Environment Fd BI Cap 3,645,827.40 5,295,110.00 9.20 EUR 9,000 Veritas Fds Plc Asian A EUR Dist 3,609,746.96 6,491,339.10 11.28 32,704,319.51 45,338,079.25 78.77 USD 352,259.55 Invesco Fds Global Consumer Trends Z Cap 3,494,947.91 6,034,128.94 10.48 USD 18,750 UBS (Lux) Equity Fd Greater China Q Cap 5,154,031.80 5,621,015.85 9.76 8,648,979.71 11,655,144.79 20.24 Total investments in securities 41,353,299.22 56,993,224.04 99.01 Cash at banks 638,520.93 1.11 Other net assets/(liabilities) -65,767.43 -0.12 Total 57,565,977.54 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
54 CONVENTUM - Fortuna Royale 3
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Investment funds 99.01 % Total 99.01 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
Luxembourg 55.40 % Ireland 17.99 % France 15.37 % Belgium 10.25 % Total 99.01 %
55 CONVENTUM - Echium
Report of the Board of Directors from 1st January 2020 to 31st December 2020
Economy
2020 was not a normal year. The COVID-19 pandemic led to a severe economic recession in the first half of the year as governments adopted drastic measures to curb the spread of the virus and alleviate pressure on health systems. The improvement in the health situation then led to a gradual lifting of restrictions from February in China and from April in the United States and Europe, allowing a sharp rebound in global production in the third quarter. However, activity remained below pre-pandemic levels. The pace of recovery slackened in the fourth quarter, especially in Europe where lockdown measures were reintroduced. Nevertheless, the prospect of an exit from the crisis improved, thanks to encouraging news on vaccines. Against this backdrop, central banks and governments implemented support measures of an unprecedented scope. These have helped to limit the impact of the crisis on the private sector's financial situation, at the price of a significant widening of budget deficits.
In the United States, GDP fell by 2.8% year-on-year in Q3 2020. The unemployment rate rose from 3.6% to 6.7%, with a peak of 14.8% in April. Year-on-year inflation slowed from +2.3% to +1.4% overall and from +2.3% to +1.6% excluding energy and food. The Fed has ramped up its support by announcing a cumulative cut in its key rate by 150 basis points to 0%-0.25%, an unlimited programme of purchases of treasury bills and mortgage-backed securities, as well as a loan programme for businesses and local authorities. Jerome Powell said in September that the Fed would tolerate inflation in excess of 2% to offset weaker periods. The US Congress adopted two massive fiscal support packages: an initial plan amounting to 10.7% of GDP in March and a second plan at 4.3% of GDP in December. Democratic candidate Joe Biden won the presidential elections. The Democrats retained their majority in the House of Representatives and took control of the Senate.
In the eurozone, GDP fell by 4.3% year-on-year in Q3 2020. It dropped by 4.0% in Germany, 3.9% in France, 5.0% in Italy and was down 9.0% in Spain. The unemployment rate rose from 7.4% to 8.3%, with a peak of 8.7% in July. Year-on-year inflation slowed from +1.3% to -0.3% overall and from +1.3% to +0.2% excluding energy and food. In March, the ECB announced an increase of EUR 120 billion in its asset purchase programme (APP) and a new emergency purchase programme in response to the pandemic (PEPP) of EUR 750 billion. The PEPP was increased by EUR 600 billion in June and EUR 500 billion in December, bringing the total budget to EUR 1.850 trillion. The terms of the negative-rate long-term loan programme have been adjusted. In July, EU countries reached an agreement on a European stimulus package of EUR 750 billion, equivalent to 5.4% of GDP.
In China, GDP was up by 4.9% year-on-year in Q3 2020. In November, industrial production increased by 7.0% year-on-year, investments by 9.7% and retail sales by 6.1% (in terms of volume). The unemployment rate was stable at 5.2%, peaking at 6.2% in February. Year-on-year inflation slowed from +4.5% to +0.2% overall, mainly due to a slowdown in pork prices, and from +1.4% to +0.4% excluding energy and food. In particular, the Chinese Central Bank cut its key rate by 30 basis points to 2.95% and reduced the reserve requirement ratio by 50 basis points for banks, to 12.50% for large banks and to 10.50% for small and medium-sized banks. The government announced support measures in the amount of 4.7% of GDP.
Markets
The equity markets had begun relatively well in 2020, driven by the reduction in trade tensions between China and the US and the initial signs of economic recovery. They collapsed in late February, when the coronavirus outbreak in China spread to the rest of the world. The movement was vicious and exceptionally quick, with the Euro Stoxx losing nearly 40% in just one month.
After plummeting in the first quarter, equity markets rebounded strongly in the second quarter, thanks to the lifting of restrictions in Europe and the United States, the revival of global activity and the strengthening of monetary and fiscal support measures. At the end of June, the equity markets had made up for a large part of their previous decline.
56 CONVENTUM - Echium
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
With hopes of further support and progress on vaccines, catch-up continued at the beginning of the third quarter. This was interrupted by a correction in September, driven by a sharp drop in US technology stocks and fears of a new lockdown in Europe, against a backdrop of political uncertainty in the United States.
Then, the equity markets posted exceptional performances in the fourth quarter, with good news on vaccines, the approval of a new fiscal stimulus package in the United States and the Brexit agreement outweighing the importance of lockdown measures being reintroduced in Europe.
Ultimately, over twelve months, the MSCI World All Country index in dollars gained 14.3%. However, this masks significant differences between markets. The S&P 500 in dollars posted gains of 16.3% year- on-year, while the EURO STOXX in euros fell by 1.6%.
On the bond market, government bond yields fell. The US 10-year yield went from 1.92% to 0.91%, with an all-time low of 0.51% on 4th August, and the German 10-year yield fell from -0.19% to -0.57%, with an all-time low of -0.86% on 9th March. The credit margins of peripheral countries compared to Germany tightened significantly in Italy (-48 basis points) and Greece (-46 basis points), while they remained relatively stable in Spain (-4 basis points) and Portugal (-3 basis points).
In the European credit segment, credit margins widened significantly in the first quarter of 2020 before narrowing sharply. According to the ICE Bank of America indices, they increased from 94 to 93 basis points for high-quality issuers, with a high point of 234 at the beginning of April, and from 308 to 355 basis points for high-yield issuers, with a high point at 866 at the end of March.
On the foreign exchange market, the euro appreciated by 8.9% against the dollar, 3.6% against the yen and 5.7% against sterling. It depreciated by 0.4% against the Swiss franc. Emerging currencies depreciated on average by 5.8% against the dollar, according to JPMorgan's index.
For commodities, the price of a barrel of Brent dropped by 23% year-on-year from USD 66 to USD 51, with a low point of USD 19 on 21st April.
57 CONVENTUM - Echium
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Financial management
As at 31st December 2020, the Conventum Echium sub-fund portfolio essentially broke down as follows:
- Emerging equities: 1.05% - USA equities: 7.87% - European equities: 31.8% - Bonds: 14.92% - Diversified: 7.81% - Monetary: 36.55%
Exposure to equities markets is set at 40.72%.
The equities weighting of the portfolio has remained at a high level. Indeed, risk premiums on the equity markets are very attractive and economic uncertainty has decreased.
Emerging equities: The weighting of this region stands at 1.05%. We are invested in the CG Nouvelle Asie fund.
United States equities: The weighting of this region stands at 7.87%. We have maintained our exposure. The US dollar currency risk is not hedged.
European equities: The weighting of this region stands at 31.8%. We have direct exposure to equities that are significantly discounted, as well as on specific diverse themes via the UCIs.
Bonds: The weighting of this component is 14.92%. We are invested in a fund exposed to financial subordinated bonds, a fund invested in currencies and international bonds, a fund invested in high-yield bonds and a fund exposed to a reduction in credit spreads.
Diversified: The weighting of this component is 7.81%. We are invested in an international convertible bond fund as well as an allocation fund.
Monetary: We maintain residual liquidity which is invested mainly in euros.
Note: The information in this report represents historical data and is not an indication of future results.
58 CONVENTUM - Echium
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 20,665,795.63 Cash at banks 1,284,778.02 Total assets 21,950,573.65
Liabilities Bank overdrafts 4,602.37 Expenses payable 40,061.73 Total liabilities 44,664.10
Net assets at the end of the year 21,905,909.55
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) A 55,162.649 EUR 126.78 6,993,820.35 B 117,617.703 EUR 126.78 14,912,089.20 21,905,909.55
The accompanying notes are an integral part of these financial statements.
59 CONVENTUM - Echium
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 94,471.95 Bank interest 50.98 Other commissions received 1,831.09 Other income 17,693.28 Total income 114,047.30
Expenses Management fees 114,612.52 Depositary fees 15,840.00 Banking charges and other fees 6,025.02 Transaction fees 6,104.64 Central administration costs 27,643.21 Professional fees 6,469.25 Other administration costs 3,503.02 Subscription duty ("taxe d'abonnement") 10,077.28 Bank interest paid 3,959.01 Other expenses 321.56 Total expenses 194,555.51
Net investment loss -80,508.21
Net realised gain/(loss) - on securities portfolio 509,820.74 - on futures contracts -64,020.00 - on foreign exchange -15,001.68 Realised result 350,290.85
Net variation of the unrealised gain/(loss) - on securities portfolio -127,734.15 Result of operations 222,556.70
Subscriptions -
Redemptions -5,087.85
Total changes in net assets 217,468.85
Total net assets at the beginning of the year 21,688,440.70
Total net assets at the end of the year 21,905,909.55
The accompanying notes are an integral part of these financial statements.
60 CONVENTUM - Echium
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 19,659,278.98 21,688,440.70 21,905,909.55
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class A EUR 112.33 125.49 126.78 B EUR 112.33 125.49 126.78
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year A 55,162.649 - - 55,162.649 B 117,662.703 - -45.000 117,617.703
61 CONVENTUM - Echium
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Shares CHF 2,105 Co Financière Richemont SA 140,313.73 155,859.60 0.71 CHF 62 Givaudan SA Reg 101,194.61 213,824.72 0.98 CHF 2,870 Nestlé SA Reg 198,062.48 276,666.78 1.26 CHF 1,670 Novartis AG Reg 105,572.31 129,163.50 0.59 CHF 305 Roche Holding Ltd Pref 69,056.07 87,139.63 0.40 614,199.20 862,654.23 3.94 EUR 1,960 Air Liquide SA 175,718.41 263,130.00 1.20 EUR 11,355 Axa SA 241,544.63 221,558.76 1.01 EUR 1,525 Bayerische Motorenwerke AG 137,714.62 110,150.75 0.50 EUR 7,570 BNP Paribas SA A 342,188.31 326,304.85 1.49 EUR 8,695 Bureau Veritas SA 164,917.73 189,203.20 0.86 EUR 4,268 Cie de Saint-Gobain SA 171,551.60 160,050.00 0.73 EUR 415 Dassault Systèmes SA 54,127.45 68,952.25 0.32 EUR 555 Deutsche Boerse AG Reg 73,884.37 77,283.75 0.35 EUR 2,155 EssilorLuxottica SA 214,790.61 274,870.25 1.26 EUR 3,215 GEA Group AG 118,756.88 94,135.20 0.43 EUR 2,285 Heineken NV 189,120.69 208,437.70 0.95 EUR 170 Hermes Intl SA 105,663.92 149,532.00 0.68 EUR 2,490 Kone Oyj B 107,166.46 165,485.40 0.76 EUR 595 L'Oréal SA 105,206.11 184,926.00 0.85 EUR 485 LVMH Moët Hennessy L Vuit SE 110,889.05 247,786.50 1.13 EUR 1,840 Merck KGaA 154,189.83 258,244.00 1.18 EUR 315 Muenchener Rueckver AG REG 66,937.50 76,482.00 0.35 EUR 8,510 Orange SA 117,790.16 82,836.34 0.38 EUR 875 Pernod-Ricard SA 99,905.64 137,200.00 0.63 EUR 2,710 Sanofi SA 225,753.46 213,277.00 0.97 EUR 875 Schneider Electric SE 56,378.71 103,512.50 0.47 EUR 505 SEB SA 56,339.11 75,245.00 0.34 EUR 2,990 Smurfit Kappa Group Plc 106,812.77 113,739.60 0.52 EUR 4,230 Société Générale SA 176,572.06 72,003.06 0.33 EUR 695 Sodexo 63,501.43 48,107.90 0.22 EUR 5,905 Total SE 254,798.28 208,446.50 0.95 EUR 2,995 Unibail-Rodamco-Westf +1 Sh WFD Unib R 216,223.50 193,417.10 0.88 EUR 4,265 Unilever Plc Reg 150,939.79 211,394.73 0.97 EUR 865 Vinci SA 64,463.91 70,376.40 0.32 4,123,846.99 4,606,088.74 21.03 Total shares 4,738,046.19 5,468,742.97 24.97 Transferable securities dealt in on another regulated market Warrants and rights CHF 4,210 Co Financière Richemont SA Call Wts 22.11.23 0.00 895.30 0.00 Total warrants and rights 0.00 895.30 0.00 Other transferable securities Closed-ended investment funds EUR 3.25 H2O Allegro Side Pocket IC Dist 208,338.04 161,509.47 0.74 Total closed-ended investment funds 208,338.04 161,509.47 0.74 Open-ended investment funds Investment funds (UCITS) EUR 13.265 Amundi Cash Corp IC Cap 3,112,577.63 3,081,482.09 14.07 EUR 230 CG Nouvelle Asie Z Cap 209,861.20 230,165.60 1.05
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
62 CONVENTUM - Echium
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
EUR 3.25 H2O Allegro I Cap 500,817.39 400,682.78 1.83 EUR 1,300 Lazard Actions Americaines PC EUR Cap 296,673.00 379,691.00 1.73 EUR 832 Lazard Alpha Euro I Dist 336,764.47 381,813.12 1.74 EUR 2,030 Lazard Amerique Min Var Cap 243,596.60 326,545.80 1.49 EUR 610 Lazard Capital FI I Cap 897,578.02 1,261,711.80 5.76 EUR 615 Lazard Convertible Gl Sicav IC EUR Dist 636,405.71 1,159,275.00 5.29 EUR 310 Lazard Corpo Euro High Yield PC EUR Cap 527,864.75 566,153.00 2.59 EUR 197.97 Lazard EUR Short Duration Scv IC Cap 871,200.58 889,340.63 4.06 EUR 862 Lazard Euro MM A Dist 3,693,285.09 3,655,716.14 16.69 EUR 1,174 Lazard Inv Microcaps Cap 147,175.19 237,171.48 1.08 EUR 455 Lazard Multi Assets Patrimoine SRI PC Cap 520,151.45 555,682.40 2.54 EUR 265 Lazard Small Caps Euro I Dist 234,376.60 210,542.50 0.96 EUR 1,111 Memnon Fd European R Cap 188,616.27 250,508.28 1.14 EUR 1,700 Norden Small IC Cap 319,610.50 428,026.00 1.95 12,736,554.45 14,014,507.62 63.97 USD 7,620 Lazard Gl Active Fds Plc US Equity Concentrated C Cap 770,679.07 1,020,140.27 4.66
Total investment funds (UCITS) 13,507,233.52 15,034,647.89 68.63 Total investments in securities 18,453,617.75 20,665,795.63 94.34 Cash at banks 1,284,778.02 5.86 Bank overdrafts -4,602.37 -0.02 Other net assets/(liabilities) -40,061.73 -0.18 Total 21,905,909.55 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
63 CONVENTUM - Echium
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Investment funds 69.37 % Cyclical consumer goods 4.84 % Non-cyclical consumer goods 4.66 % Financials 4.41 % Industrials 3.57 % Healthcare 3.14 % Raw materials 2.70 % Energy 0.95 % Telecommunications services 0.38 % Technologies 0.32 % Total 94.34 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
France 78.59 % Ireland 5.18 % Switzerland 3.94 % Germany 2.81 % Luxembourg 1.14 % United Kingdom 0.97 % The Netherlands 0.95 % Finland 0.76 % Total 94.34 %
64 CONVENTUM - FensiFund
Report of the Board of Directors from 1st January 2020 to 31st December 2020
2020 will go down in history as the year of the COVID-19 pandemic, changing both our personal and our professional lives. This “black swan” unleashed intense volatility on the financial markets, especially during the first quarter. Many analysts and economists had forecast a catastrophic scenario as the closure of national borders was likely to have serious consequences for the future of the globalised economy. Unemployment reached a peak unseen in decades. Fensifund had significantly reduced its equity exposure from the end of February to mid-March. As a result, its performance suffered much less than the majority of its peers thanks to its flexible approach. Many scenarios were considered and analysed. Would there be a technical rebound, and if so, on what scale? How long would it take to recover the economic loss caused by the recession? What would be the profile of this economic recovery? U-shape, L-shape, V-shape, W-shape, K-shape recoveries were repeatedly mentioned. No- one (barring extreme examples) really anticipated a V-shaped recovery. Fensifund remained very cautious throughout 2020 and did not take advantage of the technical rebound that followed.
Despite a very satisfactory performance in 2019, we felt at the beginning of the year that the path of “deficit spending”, “helicopter money” and thus economic growth could remain open, given the monetary policy of previous years and the support required by SMEs in a disruptive environment. In recent years, the focus has been on the trade war between China and the US, the Trump effect, Brexit, etc. Our investment convictions were to favour the thematic approach for equities, manage volatility with options, be underinvested in bonds and have an overexposure to gold mines as a hedge against inflation. Once the first warning signs started coming from China and then Italy, we quickly revisited our optimism from the beginning of 2020.
On the macroeconomic front, the biggest unknown remains the trend in currencies that have the greatest weight for Fensifund – i.e. the USD and GBP. In order to limit volatility, we have decided to systematically hedge the GBP. Contrary to what Brexit negotiations could have led one to think, the currency ultimately proved more robust than expected. Our USD exposure boosted performance at the beginning of the year but started to fall sharply towards the end of the year. The unprecedented support for the US economy – caused by the Fed's uncapping of the monetary supply – convinced us that we should hedge the USD when a technical rebound happened.
The correction of the equity markets mainly took place in March. This unprecedented drop of nearly 40% over a few weeks was the result of a self-fulfilling prophecy of a catastrophic scenario. Thanks to an intervention by central banks that was both considerable and unprecedented – beyond what their mandates initially had in mind – the financial markets made a faster turnaround than what economists had projects. Growth stocks, in particular, recovered their losses at a pace not witnessed since the early 2000s (dot-com era). In general, the US and emerging markets performed well in 2020. In contrast, equities in Europe fell significantly (especially the value approach), and as a result all indices in Europe ended the year in negative territory.
For the time being, prudence is what the situation calls for. There are many differences between the different sectors that make up the market. How long this pandemic will last is still the big question and thus influential in determining which investment opportunities are to be seized. One thing is certain: global leaders are aware of the economic consequences of this pandemic and are therefore sparing no effort to foster a global economic recovery. However, it is clear that global growth is increasingly fragmented and that economic policies will only be able to restore sustainable growth once the pandemic has truly been brought under control.
Fensifund held up well in the crisis at the beginning of the year but only somewhat benefited from the rally in the financial markets. We remained very cautious (and then underinvested in equities) for a few months. Towards the end of the year, the fall in the dollar and the drop in gold prices penalised us (in contrast to our “peers”). Nevertheless, we remain convinced that our diversification approach and our core-satellite strategy will lead to good performance once the pandemic is under control.
Note: The information in this report represents historical data and is not an indication of future results.
65 CONVENTUM - FensiFund
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 15,569,195.39 Option contracts at market value 86,874.80 Cash at banks 703,689.66 Total assets 16,359,759.85
Liabilities Bank overdrafts 17,653.19 Unrealised loss on forward foreign exchange contracts 9,325.36 Expenses payable 81,110.25 Total liabilities 108,088.80
Net assets at the end of the year 16,251,671.05
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) B 86,733.213 EUR 103.03 8,936,139.69 I 6,941.000 EUR 1,053.96 7,315,531.36 16,251,671.05
The accompanying notes are an integral part of these financial statements.
66 CONVENTUM - FensiFund
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 17,700.82 Bank interest 1,321.42 Other commissions received 6,183.43 Other income 4,417.94 Total income 29,623.61
Expenses Management fees 224,289.28 Performance fees 13,469.77 Depositary fees 22,669.96 Banking charges and other fees 373.19 Transaction fees 32,940.88 Central administration costs 39,335.69 Professional fees 6,802.96 Other administration costs 10,280.51 Subscription duty ("taxe d'abonnement") 2,714.73 Other taxes 2,241.44 Bank interest paid 7,483.31 Other expenses 2,068.75 Total expenses 364,670.47
Net investment loss -335,046.86
Net realised gain/(loss) - on securities portfolio 1,473,680.63 - on option contracts -611,783.66 - on forward foreign exchange contracts 34,909.46 - on foreign exchange -26,141.81 Realised result 535,617.76
Net variation of the unrealised gain/(loss) - on securities portfolio -421,588.86 - on option contracts -55,414.89 - on forward foreign exchange contracts 22,792.56 Result of operations 81,406.57
Subscriptions 881,229.40
Redemptions -1,717,802.52
Total changes in net assets -755,166.55
Total net assets at the beginning of the year 17,006,837.60
Total net assets at the end of the year 16,251,671.05
The accompanying notes are an integral part of these financial statements.
67 CONVENTUM - FensiFund
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 17,955,408.55 17,006,837.60 16,251,671.05
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class B EUR 89.30 102.44 103.03 I EUR 907.98 1,043.90 1,053.96
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year B 89,726.003 8,480.000 -11,472.790 86,733.213 I 7,487.000 12.000 -558.000 6,941.000
68 CONVENTUM - FensiFund
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Shares CHF 3,100 HBM Healthcare Inv AG A Reg 382,885.58 874,216.36 5.38 Total shares 382,885.58 874,216.36 5.38 Closed-ended investment funds GBP 29,000 Smithson Investment Trust PLC Cap 381,039.89 553,956.29 3.41 Total closed-ended investment funds 381,039.89 553,956.29 3.41 Open-ended investment funds Investment funds (UCITS) EUR 3,500 Bakersteel Global Fd Precious Metals I EUR Cap 682,570.00 689,535.00 4.24 EUR 1,000 Echiquier SICAV World Next Leaders K Cap 221,450.00 221,450.00 1.36 EUR 6,100 Flossbach von Storch Multiple Opportunities II IT Cap 808,115.27 997,655.00 6.14 EUR 540 Groupama Axiom Legacy 21 I Cap 564,408.25 573,193.80 3.53 EUR 200 Ixios Fds Gold I EUR Cap 329,028.00 293,696.00 1.81 EUR 2,000 Lemanik SICAV Global Strateg Fd I EUR Cap 313,380.00 303,473.94 1.87 EUR 35,000 Magna Umbrella Fd Plc New Frontiers G EUR Cap 482,037.50 500,605.00 3.08 EUR 220 Mandarine Global Transition I Cap 317,479.80 317,479.80 1.95 EUR 3,800 MFS Meridian Fds Prudent Wealth I1 EUR Cap 942,418.00 948,670.00 5.84 EUR 5,100 Quadriga Investors Igneo Fd D Cap 766,667.00 549,780.00 3.38 EUR 5,800 Ruffer SICAV Total Return Intl C Cap 764,855.00 858,342.00 5.28 EUR 8,700 Seilern Intl Fds PLC World Gh U I Cap 1,030,602.00 1,037,823.00 6.39 EUR 8,200 Threadneedle (Lux) Global Smaller Co IE Cap 505,560.80 533,902.00 3.28 EUR 230 Variopartner SICAV MIV Gl Medtech Fd I2 Cap 372,531.16 546,164.90 3.36 EUR 1,450 Veritas Fds Plc Asian A EUR Cap Dist 986,439.68 1,045,826.86 6.43 9,087,542.46 9,417,597.30 57.94 GBP 625,000 Fundsmith Sustainable Eq Fd I Cap 850,545.19 1,070,295.16 6.59 GBP 140,000 Lindsell Train Global Fds PLC Equity B GBP Dist 466,009.81 662,500.00 4.08 1,316,555.00 1,732,795.16 10.67 USD 4,300 Man Fds VI Plc AHL TargetRisk I USD Cap 636,579.27 626,444.92 3.85 USD 18,000 Matthews Asia Fds China Small Co Fd I Cap 461,195.81 546,355.02 3.36 USD 1,600 Pgim Fds Plc Jennison Em Mk Equity Fd I Cap 326,779.01 328,528.28 2.02 USD 4,000 Vontobel Fd Emerging Markets Corporate Bond I Cap 560,609.54 566,721.15 3.49 USD 5,400 White Fleet IV SICAV Secular Trends B Cap 780,230.38 922,580.91 5.68 2,765,394.01 2,990,630.28 18.40 Total investment funds (UCITS) 13,169,491.47 14,141,022.74 87.01 Total investments in securities 13,933,416.94 15,569,195.39 95.80 Option contracts Listed financial instruments Index options USD 300 CBOE SPX Volatility Index CALL 01/21 OPRA 45 44,646.65 10,420.07 0.06 USD 300 CBOE SPX Volatility Index CALL 03/21 OPRA 40 57,047.83 42,906.18 0.26 USD 10 S&P 500 Index PUT 03/21 OPRA 3300 46,023.05 33,548.55 0.21 Total option contracts 147,717.53 86,874.80 0.53 Cash at banks 703,689.66 4.33 Bank overdrafts -17,653.19 -0.11 Other net assets/(liabilities) -90,435.61 -0.55 Total 16,251,671.05 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
69 CONVENTUM - FensiFund
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Investment funds 90.42 % Financials 5.38 % Total 95.80 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
Luxembourg 45.92 % Ireland 25.85 % United Kingdom 10.00 % France 8.65 % Switzerland 5.38 % Total 95.80 %
70 CONVENTUM - Mekks
Report of the Board of Directors from 1st January 2020 to 31st December 2020
CONVENTUM - Mekks Segment 1
Market review
2020 was dominated by the crisis of the COVID-19 pandemic. The lockdown measures introduced in March to stem the spread of coronavirus temporarily halted most of the service activities characteristic of most modern economies, leading to the greatest recession in the post-war period. The reaction of public authorities was also historic in scope, with governments bringing in huge fiscal support measures and central banks massively extending their asset purchase programmes. The gradual easing of distancing measures from May and government support measures led to a considerable uptick in activity, with most economic indicators recovering strongly from the lows of March/April. The economic outlook for 2021 depends mainly on the development of a vaccine which is effective, globally accepted and available on a large scale.
Inflationary pressures remained weak in 2020, as the economic recession weighed on commodity prices and wages. Over the long term, however, uncertainty about the inflation outlook has risen as the growing interaction between fiscal and monetary authorities increases the likelihood of prolonged public spending at elevated or even excessive levels.
After the outbreak of the pandemic, the Federal Reserve in the United States reduced its key rate to 0%. As a result, US government bond yields also fell, with the 10-year Treasury yield moving from 1.92% in early January 2020 to 0.92% in December 2020. In the eurozone, the 10-year key rate fell from - 0.19% to -0.57% in Germany, and from 0.12% to -0.34 % in France.
The MSCI World All Countries Total Net Return index in EUR increased by 6.33% for the whole of the year 2020. After a promising start to the period at the beginning of the year, stock markets posted an historic drop in March following the recession triggered by lockdown measures. Thanks to unprecedented support from the fiscal and monetary authorities, the economic situation stabilised and the stock markets began a spectacular rebound. The US stock market was the best performer, driven by the rise in the share prices of technology companies, which were the main beneficiaries of the health crisis. Europe was the worst performing region, driven by significant weakness in the finance and energy sectors.
In foreign exchange markets, the euro appreciated against most currencies and benefited in the second half of the year from the return of risk appetite from safe haven currencies such as the dollar and the yen. The euro gained 8.94% against the dollar and 3.69% against the Japanese yen.
The following table summarises the annual performance of the main markets in the currencies indicated:
Bloomberg Situation au Situation au Index Devise Ticker 31.12.19 31.12.20 Performance S&P 500 USD SPX Index 3230,78 3756,07 16,26% DJ Europe Stoxx 600 Net EUR SXXR Index 897,47 879,59 -1,99% Topix JPY TPX Index 1721,36 1804,68 4,84% MSCI World USD MXWO Index 2358,47 2690,04 14,06% MSCI Emerging Markets USD MXEF Index 1114,66 1291,26 15,84% JP Morgan US Treas USD JPMTUS Index 629.766 682,658 8,40% JNEULOC JP Morgan EMU Govt EUR Index 400,160 420,759 5,15% GOLDS Gold USD Comdty 1522,83 1898,36 24,66% Brent WTI USD CO1 Comdty 66,00 51,8 -21,52%
71 CONVENTUM - Mekks
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Bloomberg Situation au Situation au Index Devise Ticker 31.12.19 31.12.20 Performance USDEUR USD/EUR N/A Curncy 0,8906 0,81866 -8,08% GBPEUR GBP/EUR N/A Curncy 1,1813 1,1186 -5,31% JPYEUR JPY/EUR N/A Curncy 0,82016 0,792406 -3,38% (Source: Bloomberg)
Over the course of financial year 2020, the manager maintained his strategy. Supposedly defensive sectors, such as consumption and health care, remain heavily weighted in the portfolio, while financial securities and highly cyclical companies are extremely under-represented.
Outlook for 2021
At the beginning of 2021, monetary tightening by one of the major central banks does not appear to be on the agenda as central banks continue to support the economy with low interest rates. On the fiscal front, austerity is no longer a priority, and the trend is towards a more expansionist policy. This should help support the global economy and enable a gradual economic recovery.
Equities are certainly not cheap, but higher valuations are justified by the even less attractive valuation of other asset classes. However, the current level of valuation reduces the safety margin and the long- term return potential of equities. Without an increase in valuation multiples, equity market returns in 2021 will be determined mainly by earnings growth. In the current environment, we are keeping the portfolio focus on stocks of companies that have a clear competitive advantage and that can offer good growth prospects even in a more difficult economic environment.
72 CONVENTUM - Mekks
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
CONVENTUM - Mekks Segment 2
Economic and financial climate:
First quarter: Global economic growth in 2019 weakened by 2.4%. In the first quarter of 2020, the global health crisis (COVID-19) was unprecedented and would have considerable economic effects following the lockdown measures and the closure of production tools. In Asia's first continent affected by the crisis, the number of new infections seemed to be slowing significantly. Unfortunately, the same was not true in Europe and the United States.
The various authorities had mobilised in an attempt to offer a coordinated response to the crisis. There were lockdown measures (Europe and the United States) to limit the speed of spread of the virus, fiscal easing measures and monetary easing measures (US rates reduced to 0%, recovery and intensification of asset purchase programmes, massive liquidity injections, easing of rules applicable to banks, etc). These various measures aimed to avoid an excessive deterioration in the economic situation and to ensure that the capital markets and the banking sector functioned properly. In addition to this health crisis, oil prices fell sharply by 65%, following the disagreement between Russia and Saudi Arabia, to limit oil supply in the face of sharply falling demand.
The panic on the financial markets could largely be explained by the sharp increase in the number of infections and the economic consequences of the necessary lockdown measures. Stock markets sustained huge losses in the first quarter: the S&P 500 in the United States fell by 20%, the Topix in Japan by 19%, the Stoxx 600 in Europe by 23% and the MSCI Emerging Markets in USD by 24%. Investors sought refuge in the safest bond investments, where yields had fallen sharply: the 10-year yield in Germany from -0.187% to -0.457% and the 10-year yield in the United States from 1.91% to 0.69%.
Second quarter: In May, the global economy began to recover following the initial easing of the lockdown restrictions. The huge support measures of the fiscal and monetary authorities (asset purchase programmes), the general improvement in the health situation and the relaxing of lockdown gave share prices a boost, despite the prospect of the biggest economic recession since the Second World War. European and US monetary authorities signed off on easing measures to support their economies. The global economic recovery accelerated in June, although activity was down sharply compared to the period prior to the health crisis. The risk of a second wave of infections and the cautious behaviour of the population resulting in a widespread increase in the savings rate and the explosion of both the public debt and the public deficit contributed to uncertainty regarding the current global recovery. The European Central Bank expects a 5-12% decline in the eurozone GDP this year, reflecting the great uncertainty surrounding the economic damage caused by the pandemic. In China, GDP fell by 6.8% year-on-year in the first quarter, its first decline since 1992, when the data was recorded.
Given the prospect of recession and falling oil prices, inflation remained low.
Unconventional monetary policy and stimulus plans were mainly reflected in the increase in financial and real estate assets. Stock markets posted a notable rebound in the second quarter: the S&P 500 in the United States rallied by 20%, the Topix in Japan by 11%, the Stoxx 600 in Europe by 12.6% and the MSCI Emerging Markets in USD by 17%. Stock markets made up for much of the loss seen in the first quarter. Bond markets were very calm. Rates on bond remained essentially at a standstill: the 10-year rate in Germany went from -0.457% to -0.46% and the 10-year rate in the United States went from 0.699% to 0.6530%.
Third quarter: During the third quarter, the global economy quickly showed signs of recovery due to the enormous support programmes of political and monetary authorities. The cheques sent to households in the United States and the partial unemployment benefits in Europe fulfilled their role of stabilising the economy. Logically, it was consumption that experienced the strongest rebound, with retail sales even returning to pre-crisis levels in some countries. Industrial production only managed to bounce back slightly. China – the first to be hit and the epicentre of the epidemic – was also the first to emerge.
73 CONVENTUM - Mekks
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
After an annualised 35% drop in GDP in Q1, the rebound was particularly violent in Q2 (55%) and Q3 is expected to post annualised growth figures of 10-15%. China is the only G20 country that will post positive average growth of 2.5%. This recovery was initially driven by investment (following pragmatic fiscal and monetary measures) and exports supported by the global recovery, particularly driven by the technology and healthcare sectors that benefit from strong global demand in the context of the pandemic.
In the United States, inflation is normalising. Excluding energy and food, it rose to 1.6%, while in Europe it dropped to 0.4%.
The change in monetary policy objectives in the United States (maximum inflation no longer set at 2%, but 2% on average over time, more tolerance for the low unemployment rate) seemed suggestive of persistently negative real interest rates. In Europe, the revision of the monetary policy strategy initiated in early January was expected to be completed at the end of the year.
Health risks ahead of the winter, uncertainty over the US election and the previous sharp rebound in the prices of tech giants dampened investor enthusiasm for risky asset markets. Stock markets continued climbing in the third quarter, but at a slower pace than before: the S&P 500 in the United States posted gains of 8.5%, the Topix in Japan 4.3%, the Stoxx 600 in Europe 0.2% and the MSCI Emerging Markets in USD 8.7%.
As the economic recovery was less robust in the eurozone than in the United States, government bond yields moved in the opposite direction: the 10-year yield in Germany slipped from -0.46% to -0.52%, while the 10-year rate in the United States rose from 0.653% to 0.677%.
Fourth quarter: There was a lot of news in the fourth quarter. The main news was the election of Democrat Joe Biden as President of the United States, and thus the possibility of a return to normality in relations between the United States and the rest of the world. On the health front, the announcement and delivery by several effective vaccine laboratories suggested that the health crisis could end in 2021. Data continued to indicate a global recovery hampered by the new lockdown measures implemented in many parts of the world. Data in Q3 on US GDP growth confirmed the strength of the recovery, with domestic production rising at an annualised rate of 33.1% compared to the previous quarter. In the eurozone, these indices declined following the reintroduction of restrictive measures. In China, the recovery continued along at a strong clip due to the absence of a second wave of the pandemic. In Japan, third quarter GDP caused a pleasant surprise with an increase of 5%, whereas it had fallen 8.2% in the previous quarter.
In the United States, inflation is not rising despite the economic recovery. In the eurozone, prices remain low.
Monetary policy in the United States remained unchanged pending President-elect Joe Biden's inauguration in January 2021. In Europe, the ECB did not change its key rates, but decided to increase the budget allocated to the pandemic emergency purchase programme by EUR 500 billion, bringing it to a total of EUR 1.850 trillion, and the horizon for these additional purchases was extended at least until the end of March 2021.
The gradual easing of lockdowns in some countries, the arrival of vaccines and the change of presidency in the United States boosted risky assets. All of the equity markets put up an impressive performance, especially during November. In the fourth quarter, the S&P 500 in the United States gained 11.69%, the Topix in Japan 11.02%, the Stoxx 600 in Europe 10.51% and the MSCI Emerging Markets in USD 19.34%.
With the prospect of a return to normality in 2021, yields on government bonds on both sides of the Atlantic continued to fluctuate in the opposite direction: the 10-year yield in Germany fell from -0.52% to -0.575%, while the 10-year rate in the United States jumped from 0.677% to 0.912%.
74 CONVENTUM - Mekks
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Over the year as a whole, despite the sharp drop in the stock markets in March, the primary markets posted positive performances, with the exception of the Stoxx 600:
- S&P 500 in the United States: 16.26% - Stoxx 600 in Europe: -4.04% - Topix in Japan: 4.84% - MSCI Emerging Markets in USD: 15.85%
Investment strategy:
During the first quarter, Novo Nordisk AS B, Amazon and Essity were the top performers. The least impressive performances in the portfolio came from Fresenius, Adidas and Constellation Brands. We opened a position in Adidas, a world leader in sporting goods.
During the second quarter, the best performers were quality and high-growth stocks (Paypal, Apple and Tencent), which once again performed well. To diversify our investments in North America, we initiated a position in Franco Nevada corp, the world's largest gold royalties and streaming company. Gold is a safe haven in times of monetary and financial unrest. We also initiated a position in SGS, the world leader in consulting, control and certification services.
During the third quarter, the best performances came from Fedex, Sika and Kering. We initiated a position in Kering, a global luxury group, whose flagship Gucci brand (60% of revenue) saw its sales pick up again. We also initiated a position in Abbott Laboratories, which is active in all areas of health (equipment, diagnostics, drugs), and Dassault Systemes, a global leader in the development and marketing of software for product life cycle management.
During the fourth quarter, the best performances came from LVMH, Alphabet, Paypal and Apple. The main detractor from the quarterly performance was SAP (-19%), after quarterly results rang in below consensus and its business outlook fell. We initiated a position in Symrise AG, a global leader in the development, production and marketing of perfumes, aromas and nutritional ingredients. We also assumed a position in Taiwan Semiconductor Manufacturing Co, which is a leading manufacturer of semiconductor products used in all technology areas and which generates more than 60% of its sales in the US.
Over the year, Paypal, Apple, Amazon and Fedex posted the top performances with 116%, 81%, 76% and 71% respectively. Fresenius SE posted the worst performance in the portfolio with -24.6%.
Asset allocation:
Shares and equity funds 81.11% Bonds 10.99% Cash assets 7.90%
Distribution by currency:
EUR 34.28% USD 33.70% CHF 11.79% JPY 8.51% GBP 6.22% HKD 2.50% DKK 1.51% CAD 0.76% SEK 0.73%
75 CONVENTUM - Mekks
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Sectoral distribution of equities (excl. fund):
Technology 25.66% Industry 24.08% Health 15.13% Consumer goods 13.13% Financial institutions 11.06% Base materials 6.53% Consumer services 4.40%
New positions:
Adidas Franco Nevada Corp SGS Comgest Growth Japan Cap Abbott Laboratories Dassault Systemes SA Kering Symrise AG Taiwan Semiconductor Manufacturing Co Lt ADR repr 5 shs
Sold in their entirety:
Bonds in EUR Oesterreich 1.2% 2025 DCC PLC
Ten primary positions:
Sika AG 6.11% Germany 2017 0.5% 15/08/2027 5.92% Morgan Stanley Investment US Growth I Cap 5.48% Roche Holding AG Genusscheine 4.65% Polar Capital Healthcare Opportunities I EUR Dis 4.36% Comgest Growth Japan Accum PTG Cap 4.27% BL Equities Japan BI JPY cap 4.22% Microsoft Corp 4.04% Visa Inc A 3.58% Fundsmith Equity T cap 3.49%
Performance of segment 2: from 31st December 2019 to 31st December 2020
Segment 2 of the fund: 13.74%
Benchmark (internal to the manager): 6.30 %
50% MSCI World Total Return in EUR and 35% S&P Eurozone Sovereign Bond Index in EUR and 15% Eonia
Note: The information in this report represents historical data and is not an indication of future results.
76 CONVENTUM - Mekks
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 90,716,274.65 Cash at banks 9,436,723.95 Income receivable on portfolio 55,698.92 Total assets 100,208,697.52
Liabilities Bank overdrafts 23.44 Expenses payable 85,717.25 Total liabilities 85,740.69
Net assets at the end of the year 100,122,956.83
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) B 71,462.749 EUR 1,401.05 100,122,956.83 100,122,956.83
The accompanying notes are an integral part of these financial statements.
77 CONVENTUM - Mekks
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 563,136.40 Interest on bonds and other debt securities, net 218,674.69 Bank interest 12,001.74 Other income 39,293.53 Total income 833,106.36
Expenses Management fees 617,414.34 Depositary fees 97,999.90 Banking charges and other fees 18,188.89 Transaction fees 35,472.19 Central administration costs 42,292.69 Professional fees 5,868.13 Other administration costs 3,269.01 Subscription duty ("taxe d'abonnement") 41,286.59 Bank interest paid 31,317.86 Other expenses 1,981.32 Total expenses 895,090.92
Net investment loss -61,984.56
Net realised gain/(loss) - on securities portfolio 1,246,272.78 - on futures contracts -1,517,913.14 - on forward foreign exchange contracts 72.73 - on foreign exchange -280,031.39 Realised result -613,583.58
Net variation of the unrealised gain/(loss) - on securities portfolio 6,634,511.86 Result of operations 6,020,928.28
Subscriptions -
Redemptions -3,035,380.09
Total changes in net assets 2,985,548.19
Total net assets at the beginning of the year 97,137,408.64
Total net assets at the end of the year 100,122,956.83
The accompanying notes are an integral part of these financial statements.
78 CONVENTUM - Mekks
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 81,534,649.45 97,137,408.64 100,122,956.83
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class B EUR 1,082.27 1,317.07 1,401.05
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year B 73,752.881 - -2,290.132 71,462.749
79 CONVENTUM - Mekks
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Shares CAD 4,000 Franco Nevada Corporation 483,561.36 409,624.82 0.41
CHF 690 Geberit AG Reg 264,855.98 353,568.05 0.35 CHF 11,910 Roche Holding Ltd Pref 3,040,879.55 3,402,731.16 3.40 CHF 350 SGS SA Reg 751,200.64 864,045.68 0.86 CHF 20,700 Sika Ltd 1,443,987.01 4,627,900.78 4.62 5,500,923.18 9,248,245.67 9.23 DKK 24,580 Novo Nordisk AS B 1,109,418.30 1,408,859.83 1.40 DKK 7,100 Novozymes AS B 303,126.13 333,364.76 0.33 1,412,544.43 1,742,224.59 1.73 EUR 5,430 Adidas AG Reg 1,294,552.03 1,617,597.00 1.61 EUR 14,410 Air Liquide SA 1,391,820.93 1,934,542.50 1.93 EUR 2,000 Dassault Systèmes SA 303,550.00 332,300.00 0.33 EUR 4,880 EssilorLuxottica SA 535,507.52 622,444.00 0.62 EUR 20,010 Fresenius SE & Co KGaA 1,110,450.67 757,178.40 0.75 EUR 22,340 Grifols SA A 482,088.51 533,479.20 0.53 EUR 950 Kering Reg 499,112.70 564,680.00 0.56 EUR 5,770 Kone Oyj B 276,330.78 383,474.20 0.38 EUR 1,170 L'Oréal SA 297,988.60 363,636.00 0.36 EUR 8,710 Legrand Holding SA 478,284.50 635,830.00 0.64 EUR 4,540 LVMH Moët Hennessy L Vuit SE 772,551.74 2,319,486.00 2.32 EUR 3,800 Pernod-Ricard SA 408,252.38 595,840.00 0.60 EUR 22,790 SAP SE 1,721,660.92 2,443,543.80 2.44 EUR 6,520 Symrise AG 577,090.12 706,768.00 0.70 EUR 18,690 Unilever Plc Reg 854,312.10 926,369.85 0.93 11,003,553.50 14,737,168.95 14.70 GBP 45,870 Avast PLC Reg 238,050.80 275,415.64 0.28 GBP 9,290 Croda International Plc Reg 391,974.10 684,506.77 0.68 GBP 42,960 Halma Plc 649,910.86 1,175,261.33 1.17 GBP 7,200 Intertek Group Plc 313,018.40 454,264.26 0.45 GBP 6,180 Reckitt Benckiser Group Plc 493,864.91 451,627.53 0.45 GBP 54,850 Rotork Plc 145,521.49 194,843.15 0.19 GBP 54,530 Sage Group Plc 385,719.20 354,519.29 0.35 GBP 12,790 Spirax-Sarco Engineering Plc 679,625.10 1,613,757.10 1.61 3,297,684.86 5,204,195.07 5.18 HKD 20,000 Tencent Holdings Ltd 414,607.26 1,188,903.58 1.19
SEK 27,980 Assa Abloy AB B 504,278.93 563,410.40 0.56 SEK 49,330 Essity AB B Reg 1,196,451.65 1,297,444.87 1.29 SEK 3,500 Hexagon AB B 167,026.31 260,954.99 0.26 1,867,756.89 2,121,810.26 2.11 USD 7,590 Abbott Laboratories 535,038.33 679,167.29 0.68 USD 270 Adobe Inc Reg 84,550.87 110,356.65 0.11 USD 750 Alphabet Inc A 516,566.62 1,074,272.63 1.08 USD 490 Amazon.com Inc 729,455.27 1,304,262.58 1.31 USD 1,090 Anheuser-Busch InBev SA ADR spons repr 1 Share 115,315.57 62,276.81 0.06 USD 17,680 Apple Inc Reg 529,819.97 1,917,259.89 1.92 USD 1,960 Aptiv Plc Reg 126,708.12 208,702.52 0.21 USD 1,250 Becton Dickinson & Co 185,568.35 255,618.67 0.26 USD 90 Booking Holdings Inc Reg 134,750.91 163,823.39 0.16 USD 2,140 Brown-Forman Corp B Non voting 93,011.50 138,918.11 0.14 USD 1,670 Coca-Cola Co 64,405.17 74,847.01 0.07
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
80 CONVENTUM - Mekks
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
USD 4,370 Constellation Brands Inc A 593,476.37 782,321.42 0.78 USD 360 Ecolab Inc 38,375.69 63,656.10 0.06 USD 800 Estée Lauder Companies Inc A 64,582.87 174,037.27 0.17 USD 2,750 Fedex Corp 468,469.31 583,487.25 0.58 USD 8,090 Fiserv Inc 803,097.71 752,801.08 0.75 USD 1,790 Gilead Sciences Inc 139,365.61 85,228.34 0.09 USD 1,700 Honeywell Intl Inc 173,396.92 295,513.24 0.30 USD 330 IQVIA Holdings Inc Reg 37,685.69 48,321.43 0.05 USD 830 Johnson & Johnson 84,350.25 106,754.99 0.11 USD 2,500 Lowe's Companies Inc 166,300.68 327,946.22 0.33 USD 6,660 Mastercard Inc A 567,532.78 1,942,808.43 1.94 USD 8,480 Medtronic Plc Reg 572,484.10 811,823.47 0.81 USD 16,060 Microsoft Corp 668,626.24 2,919,307.95 2.92 USD 4,010 Mondelez Intl Inc 142,364.63 191,618.75 0.19 USD 3,790 Nike Inc B 179,085.60 438,191.65 0.44 USD 2,460 Oracle Corp 96,042.17 130,056.72 0.13 USD 5,660 PayPal Holdings Inc 187,525.76 1,083,337.70 1.08 USD 9,150 Pepsico Inc 835,994.20 1,108,977.61 1.10 USD 710 Rockwell Automation 84,429.81 145,533.75 0.15 USD 450 Roper Technologies Inc 77,233.04 158,540.78 0.16 USD 5,700 Taiwan Semiconduct Mfg Co Ltd ADR repr 5 Shares 502,425.65 507,950.31 0.51 USD 830 Thermo Fisher Scientific Inc 111,116.47 315,950.80 0.32 USD 4,460 TJX Cos Inc 139,781.12 248,915.82 0.25 USD 1,010 Union Pacific Corp 87,731.40 171,871.69 0.17 USD 580 United Health Group Inc 128,396.91 166,226.22 0.17 USD 1,250 United Parcel Service Inc B 125,082.62 172,033.34 0.17 USD 1,330 Verisk Analytics Inc 146,343.95 225,641.30 0.23 USD 13,500 Visa Inc A 930,202.84 2,413,251.88 2.41 USD 2,230 Zoetis Inc A 118,273.78 301,622.26 0.30 11,384,964.85 22,663,233.32 22.67 Total shares 35,365,596.33 57,315,406.26 57.22 Bonds EUR 2,850,000 Deutschland 0.5% Sen 15/15.02.25 2,936,532.50 3,000,622.50 3.00 EUR 3,000,000 Deutschland 0.5% Sen 17/15.08.27 3,120,380.00 3,247,890.00 3.24 EUR 2,800,000 Oesterreich 1.2% Reg S Ser 144A 15/20.10.25 2,982,180.00 3,059,588.00 3.06 EUR 1,000,000 Oesterreich 1.65% Ser 1 14/21.10.24 1,101,890.00 1,091,195.00 1.09 10,140,982.50 10,399,295.50 10.39 USD 1,000,000 Apple Inc 2.4% Sen 13/03.05.23 848,887.47 857,392.12 0.86 USD 3,500,000 US 0.25% Ser AT-2023 20/15.11.23 2,883,563.58 2,868,233.41 2.86 USD 1,000,000 US 2.5% T-Notes Ser AV-2021 Sen 19/31.01.21 883,030.76 818,729.08 0.82 4,615,481.81 4,544,354.61 4.54 Total bonds 14,756,464.31 14,943,650.11 14.93 Open-ended investment funds Investment funds (UCITS) EUR 17,580 BL Emerging Markets BI Cap 2,138,770.60 2,258,854.20 2.26 EUR 1,404.622 BL Equities Europe BI Cap 1,267,584.13 1,589,442.16 1.59 EUR 41,000 Fundsmith Equity Fd T Cap 1,607,569.00 1,916,729.50 1.91 EUR 45,346.577 Polar Capital Fds Healthcare Opp I EUR Dist 1,879,982.87 2,367,998.25 2.37 6,893,906.60 8,133,024.11 8.13
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
81 CONVENTUM - Mekks
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
JPY 34,380 BL Equities Japan BI Cap 3,325,848.75 4,973,352.97 4.97 JPY 150,022.817 Comgest Growth Plc Japan JPY I Cap 1,904,392.15 2,340,871.08 2.34 5,230,240.90 7,314,224.05 7.31 USD 11,791.258 Morgan Stanley Inv Fds US Growth I Cap 804,340.30 3,009,970.12 3.01
Total investment funds (UCITS) 12,928,487.80 18,457,218.28 18.45 Total investments in securities 63,050,548.44 90,716,274.65 90.60 Cash at banks 9,436,723.95 9.43 Bank overdrafts -23.44 0.00 Other net assets/(liabilities) -30,018.33 -0.03 Total 100,122,956.83 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
82 CONVENTUM - Mekks
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Investment funds 18.45 % Technologies 14.98 % Countries and governments 14.07 % Cyclical consumer goods 10.87 % Healthcare 8.87 % Raw materials 8.73 % Industrials 8.49 % Non-cyclical consumer goods 6.14 % Total 90.60 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
United States of America 25.62 % Luxembourg 13.74 % Germany 11.74 % Switzerland 9.23 % France 7.36 % United Kingdom 6.11 % Ireland 5.52 % Austria 4.15 % Sweden 2.11 % Denmark 1.73 % Cayman Islands 1.19 % Spain 0.53 % Taiwan 0.51 % Canada 0.41 % Finland 0.38 % Jersey 0.21 % Belgium 0.06 % Total 90.60 %
83 CONVENTUM - Prime Selection
Report of the Board of Directors from 1st January 2020 to 31st December 2020
In 2020, the bond markets experienced a high degree of volatility. Sovereign debt in the eurozone was initially on the rise prior a significant correction in March due to pandemic outbreaks in Italy. Thus, in March, high-quality sovereign debt no longer played the role of a safe haven, in the midst of a correction across the markets. Not until the end of March did central banks intervene to bring a halt to the rise in sovereign yields.
This trend is well illustrated by the returns on the German 10-year bond. It increased from -0.18% at the end of December 2019 to -0.85% on 9th March 2020. Ten days later, it would settle down at -0.19%. It fell again to close out the year 2020 at -0.56%, having fluctuated both upwards and downwards within a bandwidth of several dozen basis points. For an issuer with an AAA rating, such volatility had no precedent in recent times. With the re-adoption of quantitative easing measures, central banks have brought some stability to the markets.
The average return on the portfolio stood at -0.72% as at 31st December 2020. The sub-fund’s manager aims for performance in line with monetary rates by investing in high quality government or para-government securities.
Note: The information in this report represents historical data and is not an indication of future results.
84 CONVENTUM - Prime Selection
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 17,657,696.50 Cash at banks 2,047,483.23 Income receivable on portfolio 120,364.79 Total assets 19,825,544.52
Liabilities Expenses payable 15,916.87 Total liabilities 15,916.87
Net assets at the end of the year 19,809,627.65
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) L 4,000,000.000 EUR 4.95 19,809,627.65 19,809,627.65
The accompanying notes are an integral part of these financial statements.
85 CONVENTUM - Prime Selection
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Interest on bonds and other debt securities, net 363,550.69 Other income 16.26 Total income 363,566.95
Expenses Management fees 38,837.42 Depositary fees 1,048.85 Banking charges and other fees 1,126.75 Central administration costs 20,366.07 Professional fees 6,402.99 Other administration costs 2,821.19 Subscription duty ("taxe d'abonnement") 1,984.61 Bank interest paid 13,324.15 Other expenses 1,002.92 Total expenses 86,914.95
Net investment income 276,652.00
Net realised gain/(loss) - on securities portfolio -532,729.75 Realised result -256,077.75
Net variation of the unrealised gain/(loss) - on securities portfolio 190,017.62 Result of operations -66,060.13
Subscriptions -
Redemptions -
Total changes in net assets -66,060.13
Total net assets at the beginning of the year 19,875,687.78
Total net assets at the end of the year 19,809,627.65
The accompanying notes are an integral part of these financial statements.
86 CONVENTUM - Prime Selection
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 19,865,983.03 19,875,687.78 19,809,627.65
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class L EUR 4.97 4.97 4.95
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year L 4,000,000.000 - - 4,000,000.000
87 CONVENTUM - Prime Selection
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Bonds EUR 1,600,000 Belgium 4.25% Ser 61 11/28.09.21 1,999,824.00 1,658,176.00 8.37 EUR 1,525,000 Belgium 4.25% Ser 65 12/28.09.22 1,909,147.50 1,657,354.75 8.37 EUR 1,750,000 Deutschland 0% Ser 181 20/11.04.25 1,803,725.00 1,807,216.25 9.12 EUR 1,900,000 Deutschland 1% Reg S Sen 15/15.08.25 2,065,319.00 2,056,845.00 10.38 EUR 1,700,000 Deutschland 1.5% 13/15.05.23 1,808,494.00 1,791,995.50 9.05 EUR 2,000,000 European Stability Mechanism 0.125% EMTN Ser 101 2,008,480.00 2,049,880.00 10.35 16/22.04.24 EUR 1,700,000 France 3.75% OAT 05/25.04.21 2,034,968.00 1,723,230.50 8.70 EUR 1,950,000 Netherlands 0.25% Ser 144A 15/15.07.25 1,990,540.50 2,036,589.75 10.28 EUR 1,000,000 Netherlands 2% 14/15.07.24 1,103,890.00 1,097,750.00 5.54 EUR 1,650,000 Oesterreich 3.4% 12/22.11.22 2,025,309.00 1,778,658.75 8.98 Total investments in securities 18,749,697.00 17,657,696.50 89.14 Cash at banks 2,047,483.23 10.34 Other net assets/(liabilities) 104,447.92 0.52 Total 19,809,627.65 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
88 CONVENTUM - Prime Selection
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Countries and governments 78.79 % International institutions 10.35 % Total 89.14 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
Germany 28.55 % Belgium 16.74 % The Netherlands 15.82 % Luxembourg 10.35 % Austria 8.98 % France 8.70 % Total 89.14 %
89 CONVENTUM - Createrra Progress World Equities
Report of the Board of Directors from 1st January 2020 to 31st December 2020
For a long time to come, 2020 will remain etched in our memories and in our history books. For most of us, its conclusion brought great relief. Emerging in China at the end of 2019, the coronavirus completely disrupted our lives. In March, most countries around the world initiated a strict first lockdown, leading to a sudden decline in the economy (“stay at home” recession). This caused a sharp fall – at times reaching more than 35% – in the stock markets.
Remembering the lessons of 2008, central banks and governments intervened very quickly to cope with this unprecedented storm: interest rate cuts, bond buybacks, stimulus packages, etc. These gigantic monetary easing and fiscal stimulus programmes enabled the financial markets to raise their head and recover a significant portion of their losses after a few weeks despite the enormous amount of economic damage sustained during lockdown. Digital securities and “stay at home” were the most resilient to the correction and recovered first.
Shortly before the summer, the decline in infections led to a significant easing of lockdown measures. The end of the first wave and better-than-expected second quarter earnings announcements boosted investor optimism and allowed stock markets to continue to rally. Ultra-accommodative monetary policies and highly expansionary fiscal policies also supported markets despite high valuations.
In September, investors found themselves somewhat brought back down to earth with the emergence of the second wave of the pandemic and the run-up to the US elections. As a result, markets suffered a setback, thus offsetting some of the gains made since the lows reached in March. The last quarter of the year was marked by the second lockdown, the announcement of good news by several pharmaceutical companies on the effectiveness of their COVID-19 vaccines and the US elections. As 2020 can most assuredly be described as a year like no other, this vote was also out of the ordinary, with Donald Trump rejecting the results with the bad faith for which he is known.
Ultimately, the US elections did not have as much influence on the financial markets as expected. Joe Biden's victory and the accusations of massive fraud – alleged without any evidence from the Trump camp – fortunately did not scare the stock markets. The market took reassurance from the fact that Republicans will probably remain in control of the Senate. Indeed, the new administration will probably not be able to implement an increase in corporate tax.
Announcements on vaccines led to a significant increase in the markets in November, coupled with a sharp sector rotation. The “value” sector (energy, financials, industrials, etc.), which had suffered significantly since the beginning of the year, bounced back sharply to the detriment of the digital and “stay at home” sectors; the pending arrival of vaccines rekindled the hope of a return to normality in the coming months.
In mid-December, in response to the pandemic, the European Central Bank (ECB) strengthened its support for the economy by announcing an increase of EUR 500 billion and the extension of its emergency programme to March 2022. In addition, after long negotiations, the European Union managed to disburse a massive post-Covid stimulus package. On the other side of the Atlantic, Democrats and Republicans managed to agree on a new economic support package worth approximately 900 billion dollars.
The poker-like dynamics surrounding the “deal” or “no deal” of Brexit did not spoil the mood despite sometimes very tense negotiations. Fortunately, the European Union and the United Kingdom managed to sign an agreement on their future trade relations on Christmas eve, just seven days before the UK's effective exit from the European bloc.
On the currency side, we saw a weakening of the US dollar in 2020 (-8.94%). Unfortunately, this decline will weigh on European exports across the Atlantic. Gold confirmed its status as a safe haven in times of crisis (+25.12% in 2020).
The measures taken by governments and central banks are expected to be sufficient to remove the economy from the impasse and restore confidence in 2021. It seems there is finally light at the end of
90 CONVENTUM - Createrra Progress World Equities
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
the tunnel with the arrival of vaccines. But it will take time before they can be deployed in sufficient quantities. The vaccine should only be available in large quantities starting in mid-2021, and vaccination campaigns will require a flawless level of logistical organisation.
2021 should be a year where the consumer makes a strong comeback. Moreover, thanks to accommodating central banks, negative interest rates should also continue to support the bullish market in 2021. We do not expect a real rate hike before 2023 for the Fed (US Federal Reserve) and before the end of 2025 for the ECB, with rates that will struggle to win over investors’ interest.
For the next few years, inflation could again make a reappearance due to the largest increase in money supply since the Second World War.
In any case, we will remember the spectacular resilience of the financial markets this year, particularly in the United States.
The equity exposure in the fund was slightly increased in the last quarter of 2020, with the cash allocation being bolstered from 7.8% to 7.99%.
The fund closed out 2020 up 3.30%, more or less the same as its internal benchmark[1] which ended the year up 2.85%.
Ats at 31st December 2020, the liquidities component stood at around 7.99%.
Note: The information in this report represents historical data and is not an indication of future results.
[1] internal benchmark (reference value): comprising 60% of Stoxx 600 in EUR and 40% of S&P 500 in USD
91 CONVENTUM - Createrra Progress World Equities
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 25,673,923.45 Deposits on futures contracts 146,236.79 Cash at banks 2,225,715.16 Income receivable on portfolio 3,355.76 Unrealised gain on futures contracts 31,291.52 Unrealised gain on forward foreign exchange contracts 26,840.47 Total assets 28,107,363.15
Liabilities Bank interest payable 784.36 Expenses payable 226,897.61 Other liabilities 32,613.31 Total liabilities 260,295.28
Net assets at the end of the year 27,847,067.87
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) B 245,775.580 EUR 113.30 27,847,067.87 27,847,067.87
The accompanying notes are an integral part of these financial statements.
92 CONVENTUM - Createrra Progress World Equities
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 134,471.04 Bank interest 5,329.23 Other commissions received 6,929.51 Other income 9,591.18 Total income 156,320.96
Expenses Management fees 423,825.11 Performance fees 101,371.28 Depositary fees 39,326.53 Banking charges and other fees 3,301.87 Transaction fees 43,400.35 Central administration costs 52,715.72 Professional fees 5,935.57 Other administration costs 4,436.93 Subscription duty ("taxe d'abonnement") 9,603.36 Bank interest paid 9,130.73 Other expenses 30,766.03 Total expenses 723,813.48
Net investment loss -567,492.52
Net realised gain/(loss) - on securities portfolio 816,790.64 - on futures contracts -710,149.65 - on forward foreign exchange contracts 469,525.80 - on foreign exchange -106,111.49 Realised result -97,437.22
Net variation of the unrealised gain/(loss) - on securities portfolio 899,818.27 - on futures contracts 30,291.33 - on forward foreign exchange contracts -47,415.78 Result of operations 785,256.60
Subscriptions 2,171,193.22
Redemptions -4,410,969.13
Total changes in net assets -1,454,519.31
Total net assets at the beginning of the year 29,301,587.18
Total net assets at the end of the year 27,847,067.87
The accompanying notes are an integral part of these financial statements.
93 CONVENTUM - Createrra Progress World Equities
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 25,829,729.19 29,301,587.18 27,847,067.87
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class B EUR 94.84 109.68 113.30
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year B 267,164.492 21,800.498 -43,189.410 245,775.580
94 CONVENTUM - Createrra Progress World Equities
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Shares CHF 3,000 Nestlé SA Reg 287,090.05 287,968.37 1.03
EUR 4,350 Danone 263,290.04 235,944.00 0.85 EUR 650 Delivery Hero SE Reg 65,032.50 82,550.00 0.30 EUR 6,440 Deutsche Wohnen SE 232,537.15 281,363.60 1.01 EUR 4,715 Eurazeo SA 288,874.83 263,097.00 0.94 EUR 15,000 Inclusio SA 321,000.00 340,500.00 1.22 EUR 940 L'Oréal SA 240,184.00 294,408.00 1.06 EUR 470 LVMH Moët Hennessy L Vuit SE 195,002.65 241,157.00 0.87 EUR 3,250 Moncler SpA 101,140.00 162,955.00 0.59 EUR 5,500 Nyxoah SA Reg 106,733.67 85,250.00 0.31 EUR 10,000 Royal Dutch Shell Plc A 134,815.30 147,380.00 0.53 EUR 3,575 Solvay SA 321,869.87 348,634.00 1.25 EUR 4,165 Total SE 136,241.90 148,232.35 0.53 EUR 3,300 Vinci SA 258,905.60 273,966.00 0.98 2,665,627.51 2,905,436.95 10.44 USD 750 Alibaba Group Holding Ltd ADR repr 8 Share 163,162.86 145,342.03 0.52 USD 275 Alphabet Inc A 290,272.89 388,138.64 1.39 USD 105 Amazon.com Inc 205,373.50 280,465.19 1.01 USD 4,260 Apple Inc Reg 201,687.04 463,071.33 1.66 USD 2,605 Baidu Inc ADR repr 0.1 Share A 230,680.45 465,094.62 1.67 USD 3,400 Berkshire Hathaway Inc 486,807.97 634,727.47 2.28 USD 1,125 Estée Lauder Companies Inc A 179,674.76 240,171.93 0.86 USD 700 Facebook Inc A 119,144.76 154,703.90 0.56 USD 1,700 Microsoft Corp 226,451.60 306,349.63 1.10 USD 1,100 Pepsico Inc 131,422.59 131,724.59 0.47 USD 1,000 Salesforce.com Inc 142,086.68 180,790.96 0.65 USD 6,750 Service Corp Intl 178,954.29 266,455.31 0.96 USD 1,470 Stryker Corp 295,097.52 289,255.94 1.04 USD 220 Tesla Inc 65,893.68 124,254.44 0.45 USD 1,150 The Walt Disney Co 148,464.83 169,365.93 0.61 USD 1,450 Visa Inc A 231,513.69 257,384.87 0.92 3,296,689.11 4,497,296.78 16.15 Total shares 6,249,406.67 7,690,702.10 27.62 Closed-ended investment funds EUR 3,000 Aedifica SICAFI Dist 281,750.00 294,600.00 1.06 Total closed-ended investment funds 281,750.00 294,600.00 1.06 Open-ended investment funds Investment funds (UCITS) CHF 5,320 Mirabaud Equities Swiss Small and Mid N Cap 481,682.24 581,831.64 2.09
EUR 720 Bestinver SICAV Intl R Cap 504,494.64 548,845.92 1.97 EUR 16,682.113 Comgest Growth Plc Europe Opportunities Z Cap 540,000.00 842,613.53 3.03 EUR 10,850 Comgest Growth Plc Europe Smaller Companies Institutiona 450,368.00 498,232.00 1.79 Cap EUR 48,000 Comgest Growth Plc Japan Fd Z EUR Hedged Cap 418,240.00 672,960.00 2.42 EUR 6,900 Digital Fds Stars Europe I Cap 852,864.00 1,067,913.00 3.84 EUR 720 Echiquier Fd Artificial Intelligence K EUR Cap 130,500.00 158,760.00 0.57 EUR 750 Echiquier SICAV World Next Leaders K Cap 132,225.00 164,197.50 0.59 EUR 22,550 Fundsmith Equity Fd I Cap 932,942.84 1,069,898.28 3.84 EUR 1,250 Montsegur Croissance FCP I Cap 276,350.00 285,750.00 1.03
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
95 CONVENTUM - Createrra Progress World Equities
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
EUR 2,600 Pictet Clean Energy P EUR Cap 258,414.00 326,274.00 1.17 EUR 4,100 Quest Management SICAV Cleantech Fd I Cap 399,627.00 665,389.00 2.39 EUR 3,065 Robeco Capital Gh Fds Gl Con Trends D EUR Cap 796,503.10 1,079,584.95 3.88 5,692,528.58 7,380,418.18 26.52 USD 6,350 Alger SICAV Small Cap Focus Fd I US Cap 162,472.89 181,907.90 0.65 USD 19,500 JPMorgan Fds Asia Growth A Cap 640,598.40 747,250.34 2.68 USD 11,150 Nikko AM Global Umbrella Fd SICAV ARK Disrupti Inno D US 132,656.12 169,042.39 0.61 Cap USD 4,125 Vontobel Fd mtx Sustainable Em Mks Leaders I Cap 582,049.69 684,565.91 2.46 USD 2,100 Vontobel Fd US Equity I Cap 352,078.83 630,657.24 2.26 1,869,855.93 2,413,423.78 8.66 Total investment funds (UCITS) 8,044,066.75 10,375,673.60 37.27 Tracker funds (UCITS) EUR 54,000 iShares IV Plc iShares MSCI China A UCITS ETF Cap 263,772.97 271,350.00 0.97 EUR 8,600 Lyxor Index Fd MSCI EMU Value (DR) UCITS ETF C EUR Cap 909,692.14 869,460.00 3.12 EUR 20,000 Lyxor Index Fd Stoxx Eur 600 Bk UCITS ETF Cap 265,839.67 288,500.00 1.04 EUR 7,750 Lyxor Index Fd Stoxx Europe 600 Const & Mat Unhedged Cap 364,327.50 481,058.00 1.73 EUR 7,600 Multi Uts France Lyxor World Water UCITS ETF Dist 275,886.80 348,490.40 1.25 EUR 3,000 SSgA SPDR ETFs Europe II Plc MSCI Eu Health Care UCITS 434,730.00 465,420.00 1.67 Cap 2,514,249.08 2,724,278.40 9.78 USD 13,400 First Trust Gl Fds Plc Nasdaq Cybersecurity UCITS ETF A Cap 260,352.10 310,341.02 1.11 USD 33,400 iShares IV Plc Edge MSCI USA Value Factor UCITS ETF Cap 183,642.45 198,339.23 0.71 USD 89,650 iShares IV Plc Healthcare Innovation UCITS ETF Cap 500,186.73 751,656.38 2.70 USD 2,500 iShares VII Plc Dow Jones Indust Average UCITS ETF B USD 576,715.23 700,524.33 2.52 Cap USD 17,000 Legal & General UCITS ETF Plc ROBO Gl Robot & Autom A 147,206.58 334,638.05 1.20 Cap USD 18,800 SSgA SPDR ETFs Europe II Plc S&P US Con St Sel Sec 358,091.39 484,098.28 1.74 UCITS Cap USD 19,200 Vanguard Fds Plc S&P500 UCITS ETF USD Dist 930,417.78 1,106,284.60 3.97 USD 13,200 Xtrackers (IE) Plc SP500 E Weight ETF 1C Cap 519,641.37 702,787.46 2.52 3,476,253.63 4,588,669.35 16.47 Total tracker funds (UCITS) 5,990,502.71 7,312,947.75 26.25 Total investments in securities 20,565,726.13 25,673,923.45 92.20 Cash at banks 2,225,715.16 7.99 Other net assets/(liabilities) -52,570.74 -0.19 Total 27,847,067.87 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
96 CONVENTUM - Createrra Progress World Equities
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Investment funds 63.52 % Technologies 7.11 % Non-cyclical consumer goods 5.23 % Cyclical consumer goods 5.19 % Financials 4.28 % Real estate 2.23 % Healthcare 1.35 % Raw materials 1.25 % Energy 1.06 % Industrials 0.98 % Total 92.20 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
Luxembourg 34.30 % Ireland 26.35 % United States of America 13.96 % France 8.10 % Belgium 3.84 % Cayman Islands 2.19 % Germany 1.31 % Switzerland 1.03 % Italy 0.59 % The Netherlands 0.53 % Total 92.20 %
97 CONVENTUM - Createrra Multi Assets Index Fund
Report of the Board of Directors from 1st January 2020 to 31st December 2020
For a long time to come, 2020 will remain etched in our memories and in our history books. For most of us, its conclusion brought great relief. Emerging in China at the end of 2019, the coronavirus completely disrupted our lives. In March, most countries around the world initiated a strict first lockdown, leading to a sudden decline in the economy (“stay at home” recession). This caused a sharp fall – at times reaching more than 35% – in the stock markets.
Remembering the lessons of 2008, central banks and governments intervened very quickly to cope with this unprecedented storm: interest rate cuts, bond buybacks, stimulus packages, etc. These gigantic monetary easing and fiscal stimulus programmes enabled the financial markets to raise their head and recover a significant portion of their losses after a few weeks despite the enormous amount of economic damage sustained during lockdown. Digital securities and “stay at home” were the most resilient to the correction and recovered first.
Shortly before the summer, the decline in infections led to a significant easing of lockdown measures. The end of the first wave and better-than-expected second quarter earnings announcements boosted investor optimism and allowed stock markets to continue to rally. Ultra-accommodative monetary policies and highly expansionary fiscal policies also supported markets despite high valuations. In September, investors found themselves somewhat brought back down to earth with the emergence of the second wave of the pandemic and the run-up to the US elections. As a result, markets suffered a setback, thus offsetting some of the gains made since the lows reached in March.
The last quarter of the year was marked by the second lockdown, the announcement of good news by several pharmaceutical companies on the effectiveness of their COVID-19 vaccines and the US elections. As 2020 can most assuredly be described as a year like no other, this vote was also out of the ordinary, with Donald Trump rejecting the results with the bad faith for which he is known.
Ultimately, the US elections did not have as much influence on the financial markets as expected. Joe Biden's victory and the accusations of massive fraud – alleged without any evidence from the Trump camp – fortunately did not scare the stock markets. The market took reassurance from the fact that Republicans will probably remain in control of the Senate. Indeed, the new administration will probably not be able to implement an increase in corporate tax.
Announcements on vaccines led to a significant increase in the markets in November, coupled with a sharp sector rotation. The “value” sector (energy, financials, industrials, etc.), which had suffered significantly since the beginning of the year, bounced back sharply to the detriment of the digital and “stay at home” sectors; the pending arrival of vaccines rekindled the hope of a return to normality in the coming months.
In mid-December, in response to the pandemic, the European Central Bank (ECB) strengthened its support for the economy by announcing an increase of EUR 500 billion and the extension of its emergency programme to March 2022. In addition, after long negotiations, the European Union managed to disburse a massive post-Covid stimulus package. On the other side of the Atlantic, Democrats and Republicans managed to agree on a new economic support package worth approximately 900 billion dollars.
The poker-like dynamics surrounding the “deal” or “no deal” of Brexit did not spoil the mood despite sometimes very tense negotiations. Fortunately, the European Union and the United Kingdom managed to sign an agreement on their future trade relations on Christmas eve, just seven days before the UK's effective exit from the European bloc.
On the currency side, we saw a weakening of the US dollar in 2020 (-8.94%). Unfortunately, this decline will weigh on European exports across the Atlantic. Gold confirmed its status as a safe haven in times of crisis (+25.12% in 2020).
The measures taken by governments and central banks are expected to be sufficient to remove the economy from the impasse and restore confidence in 2021. It seems there is finally light at the end of
98 CONVENTUM - Createrra Multi Assets Index Fund
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
the tunnel with the arrival of vaccines. But it will take time before they can be deployed in sufficient quantities. The vaccine should only be available in large quantities starting in mid-2021, and vaccination campaigns will require a flawless level of logistical organisation.
2021 should be a year where the consumer makes a strong comeback. Moreover, thanks to accommodating central banks, negative interest rates should also continue to support the bullish market in 2021. We do not expect a real rate hike before 2023 for the Fed (US Federal Reserve) and before the end of 2025 for the ECB, with rates that will struggle to win over investors’ interest.
For the next few years, inflation could again make a reappearance due to the largest increase in money supply since the Second World War.
In any case, we will remember the spectacular resilience of the financial markets this year, particularly in the United States.
The fund closed out 2020 with a performance of 0.11%.
The asset breakdown at 31/12/2020 is as follows:
- Equities: 39.95% - Fixed income investments: 39.42% - Raw materials: 9.42% - Hedge funds: 7.50% - Cash and equivalent: 3.71%
Note: The information in this report represents historical data and is not an indication of future results.
99 CONVENTUM - Createrra Multi Assets Index Fund
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 27,808,879.18 Cash at banks 1,196,487.08 Formation expenses, net 4,410.75 Receivable on issues of shares 5,522.00 Unrealised gain on forward foreign exchange contracts 29,686.69 Total assets 29,044,985.70
Liabilities Bank overdrafts 130,121.47 Bank interest payable 1,122.19 Expenses payable 118,975.88 Total liabilities 250,219.54
Net assets at the end of the year 28,794,766.16
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) M 285,671.215 EUR 100.80 28,794,766.16 28,794,766.16
The accompanying notes are an integral part of these financial statements.
100 CONVENTUM - Createrra Multi Assets Index Fund
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 181,551.07 Bank interest 3,655.61 Other commissions received 30.51 Total income 185,237.19
Expenses Management fees 393,262.79 Performance fees 768.06 Depositary fees 40,126.96 Banking charges and other fees 3,733.50 Transaction fees 17,561.57 Central administration costs 52,470.62 Professional fees 8,495.69 Other administration costs 14,752.16 Subscription duty ("taxe d'abonnement") 13,509.07 Other taxes 5,114.41 Bank interest paid 7,621.61 Equalisation 41.46 Other expenses 34,435.18 Total expenses 591,893.08
Net investment loss -406,655.89
Net realised gain/(loss) - on securities portfolio -443,632.54 - on futures contracts -302,596.91 - on forward foreign exchange contracts 704,530.98 - on foreign exchange -118,430.87 Realised result -566,785.23
Net variation of the unrealised gain/(loss) - on securities portfolio 566,000.53 - on forward foreign exchange contracts -61,639.97 Result of operations -62,424.67
Subscriptions 1,408,884.72
Redemptions -3,695,581.71
Total changes in net assets -2,349,121.66
Total net assets at the beginning of the year 31,143,887.82
Total net assets at the end of the year 28,794,766.16
The accompanying notes are an integral part of these financial statements.
101 CONVENTUM - Createrra Multi Assets Index Fund
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 30,701,460.30 31,143,887.82 28,794,766.16
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class M EUR 94.76 100.69 100.80
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year M 309,303.000 14,546.442 -38,178.227 285,671.215
102 CONVENTUM - Createrra Multi Assets Index Fund
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Investment certificates EUR 11,400 Wisdom Tree Metal Sec Ltd Certif Phys Gold Perpetual 1,289,035.13 1,658,928.00 5.76 EUR 16,000 Wisdom Tree Metal Sec Ltd Certif Physical Silver Perpetual 298,873.60 321,600.00 1.12 Total investment certificates 1,587,908.73 1,980,528.00 6.88 Open-ended investment funds Investment funds (UCITS) EUR 1,575 Candriam Absolute Return Eq Mk Neutral C Cap 292,666.50 300,872.25 1.04 EUR 3,100 Digital Fds Market Neutral Europe I Cap 309,318.00 283,495.00 0.98 EUR 6,048.41 KL UCITS ICAV Event Driven Fund Hedged EUR B Cap 621,543.39 666,976.32 2.32 EUR 41,000 Nordea 1 SICAV Alpha 10 MA Fd BI EUR Cap 555,550.00 569,490.00 1.98 EUR 2,183 RAM (LUX) Syst Fds Long/Short Eur Equities I Cap 322,901.68 286,169.47 0.99 Total investment funds (UCITS) 2,101,979.57 2,107,003.04 7.31 Tracker funds (UCITS) CHF 4,798 iShares SLI UCITS ETF (DE) Dist 401,241.45 509,325.44 1.77
EUR 6,590 Amundi Index Solutions EURO Corporates ETF C Cap 1,435,161.22 1,528,062.18 5.31 EUR 41,000 iShares IV Plc Digitalisation UCITS ETF Cap 233,159.29 337,717.00 1.17 EUR 42,000 iShares IV Plc Edge MSCI EUR Moment Fact UCITS ETF Cap 279,048.00 343,350.00 1.19 EUR 64,200 iShares IV Plc iShares MSCI China A UCITS ETF Cap 311,139.18 322,605.00 1.12 EUR 7,400 iShares IV Plc USD Short Duration HY Corp Bd UCITS ETF Dist 562,511.00 548,636.00 1.91 EUR 10,150 iShares Plc EUR Corp Bd Large Cap UCITS ETF EUR Dist 1,381,360.94 1,441,490.31 5.01 EUR 5,300 iShares Plc MSCI AC Far East ex-Jap UCITS ETF Dist 268,098.78 302,683.00 1.05 EUR 7,000 iShares STOXX Europe 600 Industrial Goods & Serv UCITS 431,314.84 446,530.00 1.55 Dist EUR 13,600 iShares STOXX Europe 600 UCITS ETF (DE) Dist 519,222.34 540,124.00 1.88 EUR 3,700 JPMorgan ETFs (Ireland) ICAV EUR Ultra-Sh Inc UCITS ETF 368,361.40 368,816.00 1.28 Dist EUR 5,489 Lyxor Index Fd FTSE EPRA/NAREIT Gl Develop UCITS Dist 230,213.44 209,021.12 0.73 EUR 1,277 Lyxor Index Fd MSCI EMU Growth (DR) UCITS ETF C Cap 156,291.11 193,286.72 0.67 EUR 1,431 Lyxor Index Fd MSCI EMU Value (DR) UCITS ETF C EUR Cap 172,860.21 144,674.10 0.50 EUR 11,000 Lyxor Index Fd Stoxx Eur 600 Bk UCITS ETF Cap 142,758.00 158,675.00 0.55 EUR 5,150 Lyxor Index Fd Stoxx Europe 600 Const & Mat Unhedged Cap 266,551.17 319,670.80 1.11 EUR 2,500 Lyxor Index Fd Stoxx Europe 600 Healthcare UCITS ETF Cap 270,252.50 268,052.50 0.93 EUR 3,760 Multi Units Lux Lyxor EUR Gov ILB (DR) UCITS ETF Acc Cap 603,965.85 612,616.80 2.13 EUR 3,000 Ossiam Lux Stoxx Eu600 EqW NR 1C EUR Cap 280,006.20 309,600.00 1.08 EUR 10,000 SSGA SPDR ETFs Europe I Plc FTSE EPRA Nar DevEu exUK 292,952.60 330,325.00 1.15 EUR Cap EUR 900 SSgA SPDR ETFs Europe II Plc MSCI Eu Cons Staple UCT 162,770.20 176,580.00 0.61 ETF Cap EUR 10,000 SSgA SPDR ETFs Europe II Plc Refini Glo Conv Bd UCITS Dist 414,236.00 425,100.00 1.48 EUR 29,889 UBS ETF SICAV Factor MSCI EMU Quality UCITS A dis Dist 537,696.16 656,511.89 2.28 EUR 43,600 Xtrackers (IE) Plc iBoxx EUR Corp Bd Yield + ETF 1D Dist 724,232.43 740,916.60 2.57 EUR 6,985 Xtrackers FTSE Dev Europe RE UCITS ETF 1C Cap 167,885.48 191,563.63 0.67 EUR 2,346 Xtrackers II Eurozone Gov Bd UCITS ETF 1C EUR Cap 537,775.08 605,877.96 2.10 EUR 12,765 Xtrackers Nikkei 225 UCITS ETF 1D Dist 234,978.12 288,106.05 1.00 10,984,801.54 11,810,591.66 41.03 GBP 2,300 iShares Plc MSCI AC Far East ex-Jap UCITS ETF Dist 128,540.76 131,300.39 0.46
JPY 2,290 Amundi Index Solutions Japan TOPIX C Cap 174,727.78 198,548.84 0.69
USD 8,500 Amundi Index Solutions Msci Em Asia UCITS ETF Cap 279,193.52 308,899.32 1.07 USD 29,700 Easy ETF S&P GSCI Ca Com 35/20 Units A USD Cap 789,003.06 683,499.57 2.37 USD 7,000 First Trust Gl Fds Plc Nasdaq Cybersecurity UCITS ETF A Cap 137,730.55 162,118.44 0.56 USD 2,051 Invesco Markets III Plc Inv EQQQ Nasdaq 100 UCITS ETF Dist 268,368.97 524,775.23 1.82 USD 4,788 Invesco Mks Plc Nasdaq Biotech UCITS ETF USD Dist 134,687.52 190,796.05 0.66
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
103 CONVENTUM - Createrra Multi Assets Index Fund
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
USD 11,000 Invesco Mks Plc Real Estate S&P US Sel Sector UCITS ETF 162,258.62 169,383.81 0.59 Cap USD 62,936 iShares II Plc Global Clean Energy UCITS ETF USD Dist 268,640.88 833,928.22 2.90 USD 3,000 iShares II Plc USD TIPS UCITS ETF Cap 546,129.98 594,439.70 2.06 USD 5,080 iShares II Plc USD Treasury Bond 7-10yr UCITS ETF Dist 874,808.68 905,203.43 3.14 USD 35,000 iShares IV Plc Edge MSCI USA Moment Fact UCITS Cap 254,446.03 314,534.81 1.09 USD 44,000 iShares IV Plc Edge MSCI USA Value Factor UCITS ETF Cap 239,626.78 261,285.21 0.91 USD 14,669 iShares IV Plc USD Short Duration Corp Bd UCITS ETF Dist 1,265,990.76 1,249,157.50 4.34 USD 4,740 iShares Plc USD Corp Bond UCITS ETF Dist 469,796.65 508,929.15 1.77 USD 125,000 iShares Plc USD Treasury Bond 1-3yr UCITS ETF Cap 557,995.18 550,390.20 1.91 USD 6,200 iShares V Plc JPM USD EM Corp Bond UCITS ETF USD Dist 546,948.36 533,739.79 1.85 USD 4,050 JPMorgan ETFs (Ireland) ICAV USD Ultra-Short Inc UCITS Cap 356,828.19 344,611.33 1.20 USD 17,000 Lyxor Index Fd Robotics & AI UCITS ETF Cap 311,772.47 488,068.53 1.70 USD 5,115 Lyxor Index Fd USD FRN UCITS ETF D Cap 426,191.84 417,881.97 1.45 USD 855 Multi Units Lux SICAV Lyxor UCITS ETF MSCI World Hlth Cap 203,839.12 291,081.58 1.01 USD 17,000 SSgA SPDR ETFs Europe II Plc S&P US Con St Sel Sec 323,806.03 437,748.45 1.52 UCITS Cap USD 26,259 UBS (Irl) ETF Plc Factor MSCI USA Low Volatilit UCITS A Dist 406,115.16 527,464.04 1.83 USD 4,000 Vanguard Fds Plc S&P500 UCITS ETF USD Dist 172,916.22 230,475.96 0.80 USD 10,202 Xtrackers (IE) Plc SP500 E Weight ETF 1C Cap 407,251.51 543,169.52 1.89 9,404,346.08 11,071,581.81 38.44 Total tracker funds (UCITS) 21,093,657.61 23,721,348.14 82.39 Total investments in securities 24,783,545.91 27,808,879.18 96.58 Cash at banks 1,196,487.08 4.16 Bank overdrafts -130,121.47 -0.45 Other net assets/(liabilities) -80,478.63 -0.29 Total 28,794,766.16 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
104 CONVENTUM - Createrra Multi Assets Index Fund
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Investment funds 89.70 % Financials 6.88 % Total 96.58 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
Ireland 52.16 % Luxembourg 32.34 % Jersey 6.88 % Germany 5.20 % Total 96.58 %
105 CONVENTUM - Dynamic Opportunities
Report of the Board of Directors from 1st January 2020 to 31st December 2020
In 2020, the equity markets experienced intense volatility. 2019 was a very positive year, and 2020 continued with the same momentum. Suddenly, the end of February and early March saw the market take a very negative turn, due to COVID-19. The pandemic brought the economy to a complete standstill, with strict lockdowns in effect around the world. The largest indices lost more than 30% in a matter of weeks. However, central banks reacted in a responsive and decisive manner to avoid a global liquidity crisis. Interest rates will remain low for several years, and an enormous amount was injected into the banking system. After a widespread crash in equities, investors started to look for business models that would benefit from the acceleration of digitisation both in companies and in people's private lives. On the stock market, there was a clear difference in performance between the growth sectors compared to traditional sectors. Towards the end of the year, several effective vaccines were tested, thus igniting the hope of a return to normal life. This period saw a very strong sector rotation that carried the markets through to a very strong end of the year. Stock market indices performed particularly well in the United States, where the composition of the indices has more of a growth slant, while in Europe there are more traditional sectors.
On the geopolitical front, the second half of the year was of particular importance. In Europe, an agreement was finally reached between the United Kingdom and the European Union to settle Brexit in a manner agreeable to both parties. In the United States, the election of a new president was once again disputed, but in the end Joe Biden did win and Donald Trump left the White House.
Emerging countries were more heavily impacted by COVID, but once good news on vaccines started to appear, they also benefited from hopes of a return to normality. The pandemic started in China, but by implementing massive restrictions, they were able to stop the disease. The Chinese economy picked up very quickly and continued to accelerate towards the end of 2020. In the CONVENTUM - Dynamic Opportunities sub-fund, we have invested in direct lines in Europe and the United States, with additional third-party funds that provide geographical or technical diversification. During the crisis, our focus in the fund was on quality stocks (limited debt, good return on equity, strong cash flow), large market capitalisation and good growth. Gradually over the year, we added a few companies with a lower market capitalisation but with stronger growth in addition to some more cyclical stocks.
We use futures to increase or decrease our exposure to the stock markets. The sub-fund benefited from this strategy. In the crisis, we significantly increased our market exposure because all of our purchase limits were hit. Towards the end of the year, we gradually reduced our position to more neutral levels. Meanwhile, with the US elections, we even reduced to 60% for a week to protect the portfolio against intense volatility.
As concerns bonds, we opted mainly for third-party funds instead of direct lines. In addition, we focused primarily on funds with a very liquid underlying asset, such as covered bonds.
In this environment, our management strategy has been characterised by the following decisions:
To use volatility to actively increase or decrease the net exposure of our portfolio by using futures. To focus on the quality of the average balance sheet of the companies listed in the portfolio. The largest positions for the largest capitalisations To diversify the portfolio by adding third-party funds.
106 CONVENTUM - Dynamic Opportunities
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Changes in the net exposure in equities:
95% 90% 85% 80% 75% 70% 65% 60% 55% 50%
In the equity bucket of the portfolio, we reduced the weight of small cap positions. Also in the equity bucket, we pursued greater geographic diversification by adding positions in Asian companies. With regard to bonds, we chose to invest less in direct lines, opting instead for third-party funds, with a significant portion of the funds with a very liquid underlying asset. This strategy enabled us to achieve a return of 6.69% in 2020.
Track record (A class):
Janv Fév Mars Avr Mai Juin Juil Août Sept Oct Nov Déc Annuel
- - - - - 2020 1,05% 5,25% 11,96% 10,22% 3,84% 2,11% 0,60% 3,54% 0,74% 0,87% 4,91% 2,58% 6,69%
As at 31st December 2020, the assets under management amounted to EUR 256.7 million. This variation consisted of EUR 34.19 million in subscriptions, EUR 73.69 million in redemptions and a (net) appreciation in the portfolio of EUR 13.64 million.
107 CONVENTUM - Dynamic Opportunities
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Changes in assets under management:
Total AuM 350 000 000
300 000 000
250 000 000
200 000 000
150 000 000
100 000 000
50 000 000
0
Note: The information in this report represents historical data and is not an indication of future results.
108 CONVENTUM - Dynamic Opportunities
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 251,659,498.35 Cash at banks 6,396,649.05 Income receivable on portfolio 99,632.20 Equalisation factor 406.00 Total assets 258,156,185.60
Liabilities Bank overdrafts 707,219.22 Expenses payable 754,283.75 Total liabilities 1,461,502.97
Net assets at the end of the year 256,694,682.63
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) A 4,737.803 EUR 1,854.78 8,787,570.61 D 129,819.930 EUR 1,810.26 235,007,711.58 M 6,496.783 EUR 1,720.26 11,176,146.95 N 963.000 EUR 1,789.46 1,723,253.49 256,694,682.63
The accompanying notes are an integral part of these financial statements.
109 CONVENTUM - Dynamic Opportunities
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 1,976,934.41 Interest on bonds and other debt securities, net 483,870.55 Bank interest 10,301.58 Equalisation 406.00 Other commissions received 8,744.13 Other income 62,723.37 Total income 2,542,980.04
Expenses Management fees 2,092,161.54 Performance fees 167,900.32 Depositary fees 117,093.56 Banking charges and other fees 32,384.20 Transaction fees 276,076.65 Central administration costs 106,070.06 Professional fees 9,474.86 Other administration costs 10,847.21 Subscription duty ("taxe d'abonnement") 103,342.33 Other taxes 248,543.19 Bank interest paid 60,617.67 Other expenses 97,975.70 Total expenses 3,322,487.29
Net investment loss -779,507.25
Net realised gain/(loss) - on securities portfolio -2,359,367.01 - on option contracts 331,157.93 - on futures contracts 780,244.28 - on forward foreign exchange contracts 9,392.96 - on foreign exchange -1,485,455.68 Realised result -3,503,534.77
Net variation of the unrealised gain/(loss) - on securities portfolio 16,416,647.30 - on option contracts 81,848.57 - on futures contracts 650,438.01 Result of operations 13,645,399.11
Subscriptions 34,191,685.23
Redemptions -73,687,144.64
Total changes in net assets -25,850,060.30
Total net assets at the beginning of the year 282,544,742.93
Total net assets at the end of the year 256,694,682.63
The accompanying notes are an integral part of these financial statements.
110 CONVENTUM - Dynamic Opportunities
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 245,129,525.40 282,544,742.93 256,694,682.63
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class A EUR 1,509.29 1,738.45 1,854.78 D EUR 1,475.91 1,697.93 1,810.26 M EUR 1,414.37 1,620.65 1,720.26 N EUR 1,458.85 1,678.28 1,789.46
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year A 12,532.063 83.334 -7,877.594 4,737.803 D 146,027.974 20,722.510 -36,930.554 129,819.930 M 6,900.596 444.792 -848.605 6,496.783 N 971.000 - -8.000 963.000
111 CONVENTUM - Dynamic Opportunities
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Shares EUR 14,180 Adidas AG Reg 2,322,540.32 4,224,222.00 1.65 EUR 41,500 Alfen NV Reg 583,390.40 3,427,900.00 1.33 EUR 28,600 ASM Intl NV Reg 2,177,987.55 5,146,570.00 2.00 EUR 17,500 Brederode SA 719,813.12 1,421,000.00 0.55 EUR 54,500 Covestro AG 2,358,982.74 2,751,160.00 1.07 EUR 57,500 Dermapharm Holding SE Bearer 2,687,222.40 3,275,200.00 1.28 EUR 49,500 Interpump Group SpA 1,317,011.85 1,996,830.00 0.78 EUR 77,250 JDE Peet's BV Bearer Reg 2,766,372.63 2,854,387.50 1.11 EUR 165,100 Koninklijke Ahold Delhaize NV 3,327,559.91 3,815,461.00 1.49 EUR 22,000 L'Oréal SA 5,780,446.07 6,837,600.00 2.66 EUR 12,650 LVMH Moët Hennessy L Vuit SE 4,437,770.83 6,462,885.00 2.52 EUR 20,000 Melexis NV 1,143,470.46 1,598,000.00 0.62 EUR 85,000 NN Group NV 2,718,577.67 3,020,050.00 1.18 EUR 16,800 Prosus NV N Reg 1,544,465.30 1,484,448.00 0.58 EUR 20,000 Puma SE 729,517.47 1,845,600.00 0.72 EUR 46,000 Qt Group Plc Reg 1,288,579.60 2,649,600.00 1.03 EUR 323,150 Relx Plc 6,422,855.51 6,472,694.50 2.52 EUR 61,217 Royal Philips NV 1,826,812.88 2,680,080.26 1.04 EUR 5,400 Sofina SA 617,293.51 1,495,800.00 0.58 EUR 48,000 Tessenderlo Group NV Parts Soc 1,508,078.12 1,567,200.00 0.61 46,278,748.34 65,026,688.26 25.32 GBP 68,000 Keywords Studios Plc 918,543.51 2,172,482.74 0.85
HKD 493,450 Ping An Ins Gr Co of Cn Ltd H 4,717,711.49 4,940,879.87 1.92 HKD 82,000 Tencent Holdings Ltd 3,232,788.98 4,874,504.69 1.90 7,950,500.47 9,815,384.56 3.82 NOK 679,399 House of Control Group AS Reg 1,264,245.29 1,393,396.94 0.54 NOK 1,450,000 Mercell Holding AS Reg 1,472,740.10 1,438,509.82 0.56 2,736,985.39 2,831,906.76 1.10 SEK 160,000 Dometic Group AB 1,155,328.87 1,733,402.18 0.67 SEK 200,000 Epiroc AB Reg A 2,062,696.79 2,976,177.56 1.16 SEK 164,400 Indutrade AB 1,695,930.34 2,880,446.67 1.12 SEK 38,250 Lifco AB B 2,005,521.64 3,000,962.47 1.17 SEK 65,750 Sdiptech AB B Reg 1,268,655.66 1,503,750.26 0.59 SEK 148,500 Stillfront Group AB 1,548,003.56 1,476,653.42 0.57 9,736,136.86 13,571,392.56 5.28 USD 18,000 Accenture Plc A 3,106,325.08 3,842,579.27 1.50 USD 38,750 Activision Blizzard Inc 1,789,976.53 2,940,452.35 1.15 USD 15,625 Adobe Inc Reg 5,295,233.20 6,386,380.35 2.49 USD 21,150 Alibaba Group Holding Ltd ADR repr 8 Share 3,849,031.98 4,022,752.12 1.57 USD 4,500 Alphabet Inc A 5,129,568.38 6,445,635.83 2.51 USD 36,000 CDW Corp 4,281,271.98 3,877,443.61 1.51 USD 34,750 Microsoft Corp 5,363,204.00 6,316,684.37 2.46 USD 55,050 Nike Inc B 5,373,451.38 6,364,762.59 2.48 USD 102,010 Ping An Ins Gr Co of Cn Ltd spons ADR repr 2 Shares H Reg 1,862,707.04 2,042,534.32 0.80 USD 32,000 Qualcomm Inc 2,173,276.37 3,984,047.07 1.55 USD 3,600 The Trade Desk Inc A Reg 721,546.44 2,356,652.50 0.92 USD 49,000 The Walt Disney Co 5,121,726.28 7,255,491.99 2.83 USD 12,425 Veeva Syst Inc 2,354,634.31 2,764,552.35 1.08 USD 53,600 Walmart Inc Reg 5,901,949.98 6,314,514.55 2.46 USD 533,600 Zynga Inc A Reg 3,009,880.94 4,304,210.53 1.68 55,333,783.89 69,218,693.80 26.99 Total shares 122,954,698.46 162,636,548.68 63.36
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
112 CONVENTUM - Dynamic Opportunities
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Closed-ended investment funds CHF 42,000 BB Biotech AG Dist 2,463,365.40 2,879,505.04 1.12 Total closed-ended investment funds 2,463,365.40 2,879,505.04 1.12 Bonds USD 2,800,000 Koninklijke KPN NV VAR Reg S Sub Sen 13/28.03.73 2,685,852.05 2,416,544.63 0.94 Total bonds 2,685,852.05 2,416,544.63 0.94 Transferable securities dealt in on another regulated market Shares GBP 23,369 Judges Scientific Plc Reg 938,578.21 1,665,490.64 0.65 Total shares 938,578.21 1,665,490.64 0.65 Bonds USD 882,035 CGG VAR PIK Sen Reg S 18/21.02.24 601,629.82 705,692.87 0.27 USD 1,500,000 Infra Asia Investment Fd NV 7% Reg S Sen 16/12.05.23 1,305,142.26 1,235,084.99 0.48 Total bonds 1,906,772.08 1,940,777.86 0.75 Other transferable securities Bonds in default of payment EUR 1,250,000 FNG Group NV 0% 15/01.06.21 1,200,850.00 0.00 0.00 Total bonds in default of payment 1,200,850.00 0.00 0.00 Open-ended investment funds Investment funds (UCITS) EUR 8,800.001 Allianz Gl Investors Fd FRN Plus Cap 8,804,629.07 8,810,385.00 3.43 EUR 8,450 Allianz Pfandbrieffonds Units P2 Dist 8,747,885.81 8,775,832.00 3.42 EUR 37,382.0461 Evli Nordic Corp Bd Fd IA Dist 3,749,965.00 3,812,781.79 1.48 EUR 166.4531 Exane Fds 1 Overdrive A EUR Cap 2,499,999.06 2,651,797.63 1.03 EUR 1,000,000 First Sentier Inv Gl Umbrella Fd Plc St Inv AsiP L Su VI Cap 1,946,785.97 2,865,700.00 1.12 EUR 20,000 MontLake UCITS Platform ICAV Abrax Merg Arb Fd EUR I F 2,039,541.90 2,130,508.00 0.83 Cap EUR 625,000 Nordea 1 SICAV Eur Covered Bond Fd AI Dist 8,709,122.53 8,800,000.00 3.43 EUR 79,400 SEB Fd 5 SEB Danish Mortgage Bond ID EUR Dist 8,718,214.00 8,829,597.60 3.44 EUR 1,200 Variopartner SICAV MIV Gl Medtech Fd I2 Cap 2,567,096.00 2,849,556.00 1.11 47,783,239.34 49,526,158.02 19.29 GBP 466,750 Fundsmith Equity Fd I GBP Cap 2,098,214.81 2,893,265.36 1.13 GBP 360,000 Legg Mason Fds ICVC IF Japan Equity X GBP Cap 1,428,732.36 2,671,456.72 1.04 3,526,947.17 5,564,722.08 2.17 JPY 24,700 Goldman Sachs Fds Scv Japan Equity Partners Ptf I Cap 2,572,863.44 3,925,264.92 1.53 JPY 14,500 UBAM Angel Japan Small Cap Equity IPC Cap 2,037,595.06 2,637,170.30 1.03 4,610,458.50 6,562,435.22 2.56 USD 600 CS Inv Fds 2 Digital Health Eq EB Cap 922,809.42 1,708,911.41 0.67 USD 85,000 F Templeton Inv Fds Asian Smaller Co Cap 3,377,832.48 3,992,971.56 1.56 USD 144,000 Guardcap UCITS Fds Plc Global Equity I USD Cap 2,089,187.95 2,769,375.61 1.08 USD 94,600 Janus Henderson Cap Fd Plc US Venture I2 USD Cap 2,408,968.60 3,691,688.46 1.44 USD 29,200 Vontobel Fd Emerging Markets Debt AI Dist 2,560,149.09 2,441,526.64 0.95 11,358,947.54 14,604,473.68 5.70 Total investment funds (UCITS) 67,279,592.55 76,257,789.00 29.72
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
113 CONVENTUM - Dynamic Opportunities
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Tracker funds (UCITS) EUR 1,045,000 iSAes V Plc S&P US Banks UCITS ETF Cap 3,772,972.50 3,862,842.50 1.50 Total tracker funds (UCITS) 3,772,972.50 3,862,842.50 1.50 Total investments in securities 203,202,681.25 251,659,498.35 98.04 Cash at banks 6,396,649.05 2.49 Bank overdrafts -707,219.22 -0.28 Other net assets/(liabilities) -654,245.55 -0.25 Total 256,694,682.63 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
114 CONVENTUM - Dynamic Opportunities
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Investment funds 32.34 % Technologies 24.28 % Cyclical consumer goods 10.77 % Industrials 9.86 % Non-cyclical consumer goods 7.72 % Financials 6.78 % Healthcare 3.40 % Raw materials 1.68 % Telecommunications services 0.94 % Energy 0.27 % Total 98.04 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
United States of America 23.12 % Luxembourg 22.15 % The Netherlands 9.67 % Ireland 7.47 % United Kingdom 6.19 % France 5.45 % Sweden 5.28 % Germany 4.72 % Cayman Islands 3.47 % China 2.72 % Finland 2.51 % Belgium 2.29 % Switzerland 1.12 % Norway 1.10 % Italy 0.78 % Total 98.04 %
115 CONVENTUM - Income Opportunities
Report of the Board of Directors from 1st January 2020 to 31st December 2020
In 2020, the bond markets were characterised by intense volatility. 2019 was a very positive year, and 2020 continued with the same momentum. Suddenly, the end of February and early March saw the market take a very negative turn, due to COVID-19. The pandemic brought the economy to a complete standstill, with strict lockdowns in effect around the world. The spreads (Fig. 1) on corporate bonds started to rise sharply.
Fig 1: corporate bond spreads
However, central banks reacted in a responsive and decisive manner to avoid a global liquidity crisis. Interest rates will remain low for several years, and an enormous amount was injected into the banking system. The ECB will continue to buy bonds in the market. In the United States, the central bank will continue to invest money in the economy until they arrive at an average inflation level of 2%. The new president, Biden, will try to reach a political agreement for an investment plan worth USD 1.9 trillion.
In terms of currencies, the dollar weakened against most foreign currencies during the year.
To limit the risk of increasing interest rates, our management strategy was to keep the maturity as low as possible through the purchase of short-term bonds. To increase the yield of the portfolio, the CONVENTUM - Income Opportunities sub-fund is mainly invested in corporate bonds. A significant portion is also invested in third-party funds, which are in turn largely invested in highly liquid underlying assets. During the year, we continued diversifying the sub-fund. We added more geographical diversification in direct lines but also via third-party funds. Finally, we also increased the number of direct lines to limit the impact of any single bond on the performance of the sub-fund.
As at 31 December 2020, the yield at maturity and the duration were 2.93% and 2.64 years respectively.
116 CONVENTUM - Income Opportunities
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Ratings
6.36% 2.84%
9.94% 10.50% 1.03%
69.32%
A BB BBB CCC NR B
duration
0.38% 1.41% 6.59% 8.99%
23.18% 59.46%
< 3j 3j - 5j 5j - 7j nvt 7j - 10j > 20j
This strategy enabled us to achieve a return of 0.21% in 2020.
Track record (A class):
Janv Fév Mars Avr Mai Juin Juil Août Sept Oct Nov Déc Annuel - 2020 0,49% 0,11% 9,36% 2,91% 0,92% 1,72% 0,62% 0,29% 0,26% 0,29% 1,96% 0,57% 0,21%
As at 31st December 2020, the assets under management had increased to 314.5 million euros. This variation consisted of EUR 33.7 million in subscriptions, EUR 22.4 million in redemptions and a (net) appreciation in the portfolio of EUR 1.2 million.
117 CONVENTUM - Income Opportunities
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Changes in assets under management:
Total AuM 350 000 000
300 000 000
250 000 000
200 000 000
150 000 000
100 000 000
50 000 000
0 14/02/13 14/02/14 14/02/15 14/02/16 14/02/17 14/02/18 14/02/19 14/02/20
Note: The information in this report represents historical data and is not an indication of future results.
118 CONVENTUM - Income Opportunities
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 305,437,779.26 Cash at banks 5,735,595.93 Receivable on issues of shares 284,974.20 Income receivable on portfolio 3,576,755.99 Equalisation factor 1,647.12 Total assets 315,036,752.50
Liabilities Expenses payable 509,588.00 Total liabilities 509,588.00
Net assets at the end of the year 314,527,164.50
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) A 270,302.004 EUR 1,163.61 314,527,164.50 314,527,164.50
The accompanying notes are an integral part of these financial statements.
119 CONVENTUM - Income Opportunities
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Interest on bonds and other debt securities, net 9,076,186.45 Bank interest 10,654.60 Other commissions received 9,253.35 Total income 9,096,094.40
Expenses Management fees 1,661,354.16 Depositary fees 134,770.22 Banking charges and other fees 17,117.95 Transaction fees 16,045.78 Central administration costs 57,843.23 Professional fees 6,870.40 Other administration costs 13,440.95 Subscription duty ("taxe d'abonnement") 140,093.01 Other taxes 261,790.86 Bank interest paid 38,418.59 Other expenses 69,353.19 Total expenses 2,417,098.34
Net investment income 6,678,996.06
Net realised gain/(loss) - on securities portfolio -1,903,381.18 - on foreign exchange -147,637.74 Realised result 4,627,977.14
Net variation of the unrealised gain/(loss) - on securities portfolio -3,365,709.81 Result of operations 1,262,267.33
Subscriptions 33,761,533.06
Redemptions -22,472,555.48
Total changes in net assets 12,551,244.91
Total net assets at the beginning of the year 301,975,919.59
Total net assets at the end of the year 314,527,164.50
The accompanying notes are an integral part of these financial statements.
120 CONVENTUM - Income Opportunities
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 249,799,125.07 301,975,919.59 314,527,164.50
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class A EUR 1,102.02 1,161.13 1,163.61
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year A 260,069.974 30,049.286 -19,817.256 270,302.004
121 CONVENTUM - Income Opportunities
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Bonds DKK 12,350,000 Deutsche Bank AG 0% Sen 96/18.11.26 1,325,041.43 1,422,706.26 0.45
EUR 3,145,000 Aegon NV FRN Sub 04/15.10.Perpetual 2,159,000.00 2,500,447.98 0.79 EUR 3,500,000 Ageasfinlux SA FRN Sen Sub Conv Ageas 02/31.12.Perpetual 2,209,306.12 2,476,250.00 0.79 EUR 1,400,000 Akka Technologies SE VAR Conv Sub Reg S 1,084,500.00 1,092,868.00 0.35 19/01.07.Perpetual EUR 1,700,000 Akuo Energy 4.25% 20/12.12.26 1,700,000.00 1,708,500.00 0.54 EUR 1,000,000 Altareit 2.875% Sen Reg S 18/02.07.25 1,003,620.00 1,071,040.00 0.34 EUR 1,500,000 Argenta Banque d'Epargne SA 3.875% Reg S Sub 16/24.05.26 1,541,771.15 1,522,650.00 0.48 EUR 1,880,000 Artea SA 5.25% Sen 18/21.12.23 1,880,000.00 1,880,000.00 0.60 EUR 126,000 Atenor SA 2.875% Sen 18/05.04.22 127,423.80 126,479.43 0.04 EUR 1,570,000 Atenor SA 3.25% Sen 20/23.10.24 1,587,662.50 1,597,365.10 0.51 EUR 955,000 Atenor SA 3.875% Sen 20/23.10.26 968,131.25 969,707.00 0.31 EUR 1,600,000 Aves One AG 5.25% Sen Reg S 20/01.06.25 1,585,500.00 1,570,000.00 0.50 EUR 1,050,000 Axa SA FRN EMTN Sub 03/29.01.Perpetual 755,375.00 841,795.50 0.27 EUR 700,000 Axa SA VAR EMTN Sub 04/29.10.Perpetual 521,500.00 553,987.00 0.18 EUR 900,000 Axa SA VAR Sub EMTN Ser 19 Tr-1 04/20.12.Perpetual 889,998.00 913,279.50 0.29 EUR 200,000 Axactor SE FRN 144A 21/12.01.24 200,000.00 201,418.00 0.06 EUR 900,000 Banco Santander SA FRN 04/30.09.Perpetual 829,350.00 871,177.50 0.28 EUR 3,000,000 Bank J Van Breda & Co NV VAR EMTN Sub 18/05.11.28 3,000,000.00 2,928,540.00 0.93 EUR 1,100,000 Befimmo SA 2.098% Sen 18/12.03.26 1,092,350.00 1,083,027.00 0.34 EUR 1,800,000 Belfius Banque SA 6% EMTN Sub Ser 90 Tr 1 02/04.04.22 2,014,447.00 1,925,226.00 0.61 EUR 1,000,000 Bertrand Corp SAS 4.5% EMTN 19/20.12.24 1,006,250.00 1,010,000.00 0.32 EUR 1,000,000 Bilfinger SE 4.5% Sen Reg S 19/14.06.24 1,090,885.00 1,054,210.00 0.34 EUR 1,100,000 Biocartis Group NV 4% Conv Sen Reg S 19/09.05.24 1,055,300.00 705,430.00 0.22 EUR 700,000 BNP Paribas Cardif VAR Sub 14/25.11.Perpetual 699,300.00 796,148.50 0.25 EUR 2,500,000 BNP Paribas Fortis SA FRN Conv Fortis SA 07/19.12.Perpetual 1,722,625.00 2,104,162.50 0.67 EUR 3,798 BNP Paribas SA FRN 2 84/30.07.Perpetual 389,295.00 402,208.20 0.13 EUR 2,000,000 BNP Paribas SA FRN EMTN Sen Reg S 17/22.09.22 2,000,000.00 2,024,770.00 0.64 EUR 500,000 BNP Paribas SA VAR Sub 85/17.07.Perpetual 360,000.00 402,500.00 0.13 EUR 15,000 BNP Paribas SA VAR TP1 84/30.07.Perpetual 1,516,654.11 1,576,359.81 0.50 EUR 2,000,000 Bollore 2% Sen 17/25.01.22 2,013,445.00 2,025,510.00 0.64 EUR 3,100,000 BPI Real Estate Belgium SA 3.75% Sen 17/19.12.22 3,106,960.00 2,976,000.00 0.95 EUR 1,200,000 Bq Fédérative Crédit Mutuel FRN EMTN Sub 992,980.00 1,077,204.00 0.34 05/25.02.Perpetual EUR 550,000 Bulgarian Energy Hg EAD 3.5% Sen Reg S 18/28.06.25 572,000.00 576,851.00 0.18 EUR 1,300,000 Bulgarian Energy Hg EAD 4.875% Reg S Sen 16/02.08.21 1,421,980.00 1,333,852.00 0.42 EUR 1,000,000 Burger King France SAS FRN Sen Reg S 17/01.05.23 987,500.00 1,008,505.00 0.32 EUR 1,500,000 Carrefour Banque FRN EMTN Sen 18/15.06.22 1,507,925.00 1,504,597.50 0.48 EUR 1,400,000 Casino Guichard Perrachon VAR EMTN Sub 1,302,875.00 717,990.00 0.23 13/31.01.Perpetual EUR 4,195,000 Casino Guichard Perrachon VAR Sub 05/20.01.Perpetual 2,997,473.36 1,315,027.63 0.42 EUR 200,000 Catalent Pharma Solutions Inc 2.375% Sen Reg S 20/01.03.28 196,200.00 201,107.00 0.06 EUR 200,000 Caverion Oyj 3.25% Sen 19/28.03.23 208,750.00 205,023.00 0.07 EUR 1,500,000 CE Credit Mgt Inv Fd 1 BV 6.5% Sen 19/28.06.24 1,500,000.00 1,185,375.00 0.38 EUR 1,500,000 CGG Holding US Inc 7.875% Sen Reg S 18/01.05.23 1,612,500.00 1,525,417.50 0.48 EUR 1,400,000 Claranova SA 6% 19/27.06.24 1,400,000.00 1,414,000.00 0.45 EUR 1,000,000 CMA CGM 5.25% Sen Reg S 17/15.01.25 899,595.00 1,000,270.00 0.32 EUR 1,700,000 CMA CGM 6.5% Sen Reg S 17/15.07.22 1,644,340.00 1,732,079.00 0.55 EUR 2,288,000 CNP Assurances VAR Sub Tr 1 05/11.03.Perpetual 2,287,500.00 2,301,270.40 0.73 EUR 2,385,000 Cofinoga Funding Two LP FRN Sub 04/15.04.Perpetual 2,201,093.62 2,146,500.00 0.68 EUR 1,418,225 Cooperatieve Rabobank UA VAR Sub 14/29.03.Perpetual 1,558,713.75 1,882,792.96 0.60 EUR 1,100,000 Credit Logement SA VAR Sub 06/16.03.Perpetual 926,750.00 995,109.50 0.32 EUR 1,000,000 Créd Agricole Assurances SA VAR Sub 15/13.01.Perpetual 970,000.00 1,123,160.00 0.36 EUR 1,000,000 D S Smith Plc 2.25% EMTN Reg S Sen 15/16.09.22 1,035,260.00 1,034,000.00 0.33 EUR 1,000,000 Daimler Intl Fin BV FRN EMTN Sen Reg S 17/11.05.22 1,003,660.00 1,002,710.00 0.32 EUR 1,140,000 Deceuninck SA 3.75% 15/08.12.22 1,183,762.00 1,174,200.00 0.37 EUR 1,000,000 Deut Post Fd Trust II Del USA FRN Sub 04/23.12.Perpetual 991,723.06 999,315.00 0.32
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
122 CONVENTUM - Income Opportunities
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
EUR 1,200,000 Deutsche Postbank Fding Tr I FRN Ser I 04/02.12.Perpetual 1,098,500.00 1,132,926.00 0.36 EUR 1,376,000 Deutsche Rohstoff AG 5.25% Sen 19/06.12.24 1,376,000.00 1,339,880.00 0.43 EUR 1,300,000 Dometic Group AB 3% EMTN Sen Reg S 18/13.09.23 1,304,375.00 1,357,668.00 0.43 EUR 700,000 Dometic Group AB 3% EMTN Sen Reg S 19/08.05.26 686,775.00 724,804.50 0.23 EUR 300,000 Econocom Group SA 0.5% Conv Sen Reg S 18/06.03.23 2,073,389.37 2,156,866.44 0.69 EUR 1,500,000 Eircom Finance DAC 3.5% Sen Reg S 19/15.05.26 1,499,250.00 1,533,802.50 0.49 EUR 1,400,000 Ethias SA 5% Sub 15/14.01.26 1,585,950.00 1,637,762.00 0.52 EUR 500,000 Eurofins Scientific SA VAR Sub Reg S 19/11.09.Perpetual 498,230.00 512,505.00 0.16 EUR 500,000 Eurofins Scientific SE VAR Reg S Sub 15/29.04.Perpetual 531,250.00 541,172.50 0.17 EUR 600,000 Extensa Group NV 3% Sen 17/29.06.22 607,340.00 593,622.00 0.19 EUR 1,500,000 Extensa Group NV 3.375% EMTN Sen 20/05.06.24 1,492,500.00 1,513,155.00 0.48 EUR 1,500,000 Fabric (Bc) SpA FRN Sen Reg S 18/30.11.24 1,518,750.00 1,495,530.00 0.48 EUR 200,000 Ferrari NV 0.25% Sen Reg S 17/16.01.21 199,114.00 199,992.00 0.06 EUR 1,500,000 FFP 1.875% Sen 19/30.10.26 1,501,750.90 1,451,445.00 0.46 EUR 500,000 Financiere Apsys 4.75% Sen 17/28.07.22 508,750.00 496,250.00 0.16 EUR 1,400,000 Financiere Apsys 5.5% Sen 18/14.11.23 1,444,500.00 1,386,000.00 0.44 EUR 2,100,000 Financiere Immobil Bordelaise 6% Sen 20/30.01.25 2,091,000.00 1,984,500.00 0.63 EUR 2,460,000 Fonciere Oppidum SA 5% Reg S Sen 15/27.02.21 2,467,787.50 2,469,225.00 0.79 EUR 951,750 Fruit Farm Group BV 5.75% Sen 14/31.12.20 929,067.27 0.00 0.00 EUR 2,200,000 Fugro NV 4% Conv Reg S Sub Ser FUR 16/26.10.21 2,069,160.00 2,194,038.00 0.70 EUR 1,000,000 Getlink SE 3.5% 20/30.10.25 1,044,500.00 1,036,100.00 0.33 EUR 40,000 GIMV NV 2.875% EMTN 19/05.07.26 40,500.00 42,346.80 0.01 EUR 1,000,000 GIMV NV 3.5% EMTN Sen 19/05.07.31 1,005,000.00 1,064,510.00 0.34 EUR 1,000,000 Greenyard Fresh NV 3.75% Conv Greenyar Ser GREE 976,000.00 971,200.00 0.31 16/22.12.21 EUR 2,000,000 Humanis Prevoyance 5.75% Sub 15/22.10.25 2,137,500.00 2,248,180.00 0.71 EUR 500,000 IM Group SASU 6.625% Sen Reg S 20/01.03.25 515,625.00 497,500.00 0.16 EUR 1,500,000 Imanes Sàrl 5.5% Sen 20/09.10.25 1,500,000.00 1,504,612.50 0.48 EUR 354,000 ImmoBel 3% EMTN Sen Program 1197 19/14.04.27 358,867.50 365,232.42 0.12 EUR 193,000 ImmoBel 3% Pr 1152 Reg S 18/17.10.23 198,546.00 195,702.00 0.06 EUR 2,463,000 ImmoBel 3.5% Program 1152 Sen Reg S 18/17.10.25 2,496,866.25 2,553,970.90 0.81 EUR 1,400,000 Intrum AB 3.125% Sen Reg S 17/15.07.24 1,381,350.00 1,406,125.00 0.45 EUR 1,700,000 IPSOS SA 2.875% Sen 18/21.09.25 1,758,500.00 1,721,250.00 0.55 EUR 1,332,000 Jyske Bank A/S FRN EMTN Jun Sub 04/05.07.Perpetual 1,065,600.00 1,202,096.70 0.38 EUR 816,000 Jyske Bank AS VAR Jun Sub 05/16.03.Perpetual 652,800.00 736,268.64 0.23 EUR 1,000,000 KBC Group NV 2% EMTN Reg S Sub 15/06.03.25 941,300.00 997,500.00 0.32 EUR 2,000,000 KBC Group NV FRN EMTN Sen Reg S 17/24.11.22 2,000,000.00 2,014,450.00 0.64 EUR 1,600,000 KBC Group NV VAR Jun Sub 19/05.09.Perpetual 1,631,200.00 1,706,328.00 0.54 EUR 1,000,000 Kedrion SpA 3% Sen Reg S 17/12.07.22 986,500.00 1,000,630.00 0.32 EUR 800,000 Kinepolis Group NV 2.4% Sen 17/15.12.25 799,260.00 684,992.00 0.22 EUR 4,600,000 Kinepolis Group NV 2.75% EMTN Ser 7YR Sen Reg S 4,559,950.00 4,163,000.00 1.32 19/18.12.26 EUR 700,000 Kinepolis Group NV 2.9 % Sen Reg S 17/15.12.27 708,540.00 623,000.00 0.20 EUR 28,000 Kinepolis Group NV 4% Sen 15/09.06.23 30,466.80 27,802.88 0.01 EUR 1,200,000 Kongsberg Actuation Syst BV 5% Sen Reg S 18/15.07.25 1,187,190.00 1,134,948.00 0.36 EUR 1,800,000 Koninklijke Friesland Foods NV VAR 20/10.12.Perpetual 1,810,911.00 1,850,085.00 0.59 EUR 1,700,000 Kronos Intl Inc 3.75% Sen Reg S 17/15.09.25 1,695,700.00 1,731,943.00 0.55 EUR 1,000,000 La Lorraine Bakery Group NV 3% 20/15.12.27 1,008,750.00 995,000.00 0.32 EUR 1,450,000 La Mondiale Ste Ass Vie FRN Sub 06/15.11.Perpetual 1,352,500.00 1,341,250.00 0.43 EUR 1,400,000 La Mondiale Ste Assurances Vie VAR EMTN Sub 13/25.04.44 1,709,400.00 1,657,068.00 0.53 EUR 1,000,000 Leasinvest Real Estate SCA 1.95% Sen 19/28.11.26 996,000.00 991,740.00 0.32 EUR 500,000 Lenzing AG VAR 20/07.12.Perpetual 500,000.00 513,740.00 0.16 EUR 1,100,000 Louis Dreyfus Company BV 2.375% 20/27.11.25 1,111,200.00 1,140,925.50 0.36 EUR 1,410,000 Mota-Engil SGPS SA 4% Sen 18/04.01.23 1,435,897.85 1,386,946.50 0.44 EUR 1,800,000 Mota-Engil SGPS SA 4.375% Sen 19/30.10.24 1,786,248.00 1,757,790.00 0.56 EUR 500,000 MRG Finance UK PLC 8.75% EMTN Sen 18/26.10.23 500,000.00 365,282.50 0.12 EUR 1,500,000 Mutuelle Ass Com & Ind France VAR Sub 14/06.10.Perpetual 1,557,400.00 1,675,500.00 0.53 EUR 800,000 Natixis FRN EMTN Sub 05/25.01.Perpetual 789,000.00 806,068.00 0.26 EUR 871,531 Newco GB SAS VAR TOG PIK Sen Reg S 17/15.12.22 862,725.00 860,562.78 0.27 EUR 1,000,000 Nexans SA 2.75% Sen 17/05.04.24 1,008,500.00 1,058,235.00 0.34 EUR 2,500,000 NN Group NV VAR Sub 14/08.04.44 2,877,100.00 2,813,712.50 0.89 EUR 1,200,000 Nordex SE 6.5% Sen Reg S 18/01.02.23 1,237,400.00 1,231,818.00 0.39 EUR 3,200,000 NV Bekaert SA 0% Conv Reg S Ser BEKB 16/09.06.21 2,928,820.00 3,182,832.00 1.01 EUR 300,000 OI European Group BV 2.875% Sen Reg S /15.02.25 304,650.00 305,469.00 0.10
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
123 CONVENTUM - Income Opportunities
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
EUR 1,900,000 Orpea SA 2.2% Sen 17/15.12.24 1,903,950.00 1,895,250.00 0.60 EUR 1,500,000 P&V Assurances SCRL 5.5% Sub Reg S 18/13.07.28 1,554,000.00 1,658,857.50 0.53 EUR 900,000 Paprec Holding SA 4% Sen Reg S 18/31.03.25 840,625.00 901,975.50 0.29 EUR 1,420,000 Prysmian SpA 2.5% Reg S Sen 15/11.04.22 1,452,690.00 1,461,314.90 0.46 EUR 1,000,000 R-Logitech Sarl 8.5% Sen Reg S 18/29.03.23 1,000,000.00 909,500.00 0.29 EUR 1,100,000 RCI Banque SA FRN EMTN Sen 18/12.01.23 1,089,140.00 1,094,791.50 0.35 EUR 1,500,000 Refinitiv US Hgs Inc 6.875% Sen Reg S 18/15.11.26 1,699,650.00 1,628,092.50 0.52 EUR 1,000,000 Renewi Plc 3% EMTN Reg S 19/19.07.24 1,010,000.00 995,650.00 0.32 EUR 988,000 Renewi Plc 3.65% Reg S 15/16.06.22 1,015,762.22 1,003,877.16 0.32 EUR 1,900,000 Retail Estates SA 2.15% Sen Reg S19 /18.12.26 1,900,000.00 1,862,000.00 0.59 EUR 1,300,000 Rexel SA 2.125% Sen Reg S 17/15.06.25 1,211,450.00 1,309,932.00 0.42 EUR 150,000 Rolls-Royce Plc 4.625% Sen Reg S 20/16.02.26 150,000.00 162,756.75 0.05 EUR 900,000 Rossini Sàrl 6.75% Sen Reg S 18/30.10.25 967,150.00 962,928.00 0.31 EUR 3,361,000 Rothschilds Continuati Fin Plc FRN EMTN 04/29.08.Perpetual 2,676,798.75 2,760,187.64 0.88 EUR 800,000 Sacyr SA FRN EMTN Ser 1 Sen Reg S 18/10.06.22 800,000.00 791,864.00 0.25 EUR 3,681 Sanofi SA VAR 83/01.10.Perpetual 2,152,094.36 2,105,900.10 0.67 EUR 1,700,000 Sappi Papier Holdings GmbH 4% Reg S Sen 16/01.04.23 1,746,765.00 1,700,731.00 0.54 EUR 2,250,000 SD Worx NV 3.8% Sub 19/11.06.26 2,332,850.00 2,360,295.00 0.75 EUR 100,000 Sofima Hg SpA FRN 20/15.01.28 99,750.00 101,006.00 0.03 EUR 800,000 Solvay Finance SA VAR 15/03.06.Perpetual 949,440.00 916,452.00 0.29 EUR 1,100,000 Solvay SA VAR Reg S 18/04.03.Perpetual 1,128,800.00 1,192,026.00 0.38 EUR 2,200,000 Spie SAS 2.63% Sen 19/18.06.26 2,203,650.00 2,308,482.00 0.73 EUR 2,750,000 Studio 100 NV 3.35% Reg S 15/23.06.22 2,875,214.50 2,758,937.50 0.88 EUR 3,140,000 Suedzucker Intl Finance BV VAR Reg S Sub 05/30.06.Perpetual 3,086,239.92 2,471,211.40 0.79 EUR 2,923,000 Sydbank A/S FRN Sen Sub Reg S 04/24.11.Perpetual 2,264,740.25 2,567,183.21 0.82 EUR 2,785,000 Tessenderlo Group NV 2.875% Sen 15/15.07.22 2,938,220.27 2,866,920.77 0.91 EUR 1,000,000 Tessenderlo Group NV 3.375% Sen 15/15.07.25 1,023,905.00 1,043,820.00 0.33 EUR 1,800,000 Thomas & Piron Hg SA 2.625% 20/09.12.22 1,800,000.00 1,804,500.00 0.57 EUR 1,200,000 Thomas & Piron Hg SA 3.25% 20/09.12.24 1,200,000.00 1,201,500.00 0.38 EUR 1,000,000 Tikehau Capital SCA 3% Sen 17/27.11.23 1,037,500.00 1,053,360.00 0.33 EUR 3,000,000 Triple Living Holding NV 4% Sen Reg S 19/24.07.23 3,000,000.00 2,895,000.00 0.92 EUR 1,700,000 Triple Living Holding NV 4.5% Sen Reg S 19/24.07.25 1,700,000.00 1,649,000.00 0.52 EUR 100,000 UBISOFT Entertainment SA 1.289% Sen 18/30.01.23 100,000.00 102,038.00 0.03 EUR 1,500,000 United Group BV 3.125% Sen Reg S 20/15.02.26 1,473,600.00 1,473,307.50 0.47 EUR 500,000 Valeo SA 1.5% EMTN Sen 18/18.06.25 448,750.00 512,530.00 0.16 EUR 935,000 VGP SA 2.75% Sen Reg S 19/02.04.23 938,412.50 949,726.25 0.30 EUR 2,900,000 VGP SA 3.5% Sen Reg S 18/19.03.26 2,903,625.00 2,997,570.50 0.95 EUR 2,708,000 VGP SA 3.9% Reg S Sen 16/21.09.23 2,764,289.00 2,801,006.26 0.89 EUR 2,100,000 Victoria Plc 5.25% Sen Reg S 19/15.07.24 1,998,850.00 2,182,278.00 0.69 EUR 800,000 Volkswagen Intl Finance NV VAR Reg S Sub 725,852.50 811,292.00 0.26 15/20.03.Perpetual EUR 250,000 Volkswagen Intl Finance NV VAR Sub 14/24.03.Perpetual 258,750.00 251,651.25 0.08 EUR 600,000 Volkswagen Intl Finance NV VAR Sub Sen 13/04.09.Perpetual 635,266.50 656,604.00 0.21 EUR 750,000 Vranken-Pommery Monopole 3% Sen Reg S 19/19.06.22 752,812.50 751,616.25 0.24 EUR 1,500,000 Vranken-Pommery Monopole 3.4% Sen 16/19.07.22 1,500,000.00 1,502,700.00 0.48 EUR 1,788,000 Warehouses De Pauw NV 3.375% Sen 14/13.06.21 1,873,874.40 1,811,100.96 0.58 EUR 300,000 Warehouses De Pauw NV FRN 16/01.04.26 302,420.00 301,125.00 0.10 EUR 1,400,000 Wiener Versicherung Gruppe VAR 17/13.04.47 1,560,720.00 1,558,711.00 0.50 EUR 700,000 Worldline SA 1.625% Sen 17/13.09.24 696,850.00 732,504.50 0.23 218,189,389.83 216,443,334.97 68.83 GBP 400,000 GKN Hgs Plc 5.375% EMTN Ser 1 Sen Reg S 12/19.09.22 497,301.30 474,523.49 0.15
NLG 3,950,000 Aegon NV VAR Sub Reg S 95/08.06.Perpetual 1,387,659.89 1,616,235.80 0.51
NOK 15,000,000 Norsk Hydro ASA FRN Sen 20/15.05.23 1,354,971.33 1,493,107.37 0.47 NOK 11,000,000 Odfjell SE FRN Sen 17/25.01.21 1,214,729.90 1,050,622.51 0.33 2,569,701.23 2,543,729.88 0.80 SEK 14,000,000 Indutrade AB FRN Ser 104 DMTN Sen 19/26.09.24 1,309,677.69 1,384,599.74 0.44
USD 1,550,000 Barry Callebaut Serv NV 5.5% Sen Reg S 13/15.06.23 1,511,017.77 1,380,761.69 0.44 USD 970,000 BNP Paribas Fortis Funding Step-up Ser 829 14/11.04.22 897,973.48 820,464.94 0.26 USD 3,400,000 Euronav Luxembourg SA 7.5% Sen 17/31.05.22 3,034,531.53 2,893,306.63 0.92
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
124 CONVENTUM - Income Opportunities
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
USD 5,250,000 KBC Ifima SA VAR EMTN Sub 05/07.02.25 4,816,485.93 4,529,862.70 1.44 USD 2,700,000 Koninklijke KPN NV VAR Reg S Sub Sen 13/28.03.73 2,631,245.36 2,330,239.46 0.74 USD 1,500,000 Société Générale SA VAR Sub Reg S 16/13.03.Perpetual 1,439,792.95 1,260,889.99 0.40 USD 1,000,000 Stolt-Nielsen Ltd 6.375% EMTN Sen 17/21.09.22 831,808.35 844,924.81 0.27 15,162,855.37 14,060,450.22 4.47 Total bonds 240,441,626.74 237,945,580.36 75.65 Transferable securities dealt in on another regulated market Bonds EUR 1,230,000 Akuo Energy 4.25% Sen 17/08.12.23 1,245,000.00 1,248,450.00 0.40 EUR 3,400,000 Argan 3.25% Sen 17/04.07.23 3,462,110.00 3,470,686.00 1.10 EUR 1,500,000 De Persgroep NV 2.15% 19/28.06.26 1,500,000.00 1,370,475.00 0.44 EUR 2,510,000 Foncière Verte (La) 4.5% Sen 19/18.07.25 2,510,550.00 2,547,650.00 0.81 EUR 2,200,000 HLD Europe SCA 4.75% EMTN Reg S 16/19.12.22 2,341,000.00 2,266,000.00 0.72 EUR 3,100,000 ImmoBel 3% Sen 17/01.06.22 3,168,222.00 3,143,958.00 1.00 EUR 100,000 Intervest Offices Warehouse SA 4.057% EMTN Sen 100,800.00 100,775.00 0.03 14/01.04.21 EUR 1,000,000 Maxeda DIY Holding BV 5.875% Sen Reg S 20/01.10.26 1,002,000.00 1,045,935.00 0.33 EUR 1,300,000 Mytilineos Fin Partners SA 2.5% Sen Reg S 19/01.12.24 1,303,700.00 1,339,130.00 0.43 EUR 1,500,000 Priams 5.75% Sen 16/07.12.21 1,540,000.00 1,533,750.00 0.49 EUR 2,400,000 SOCFIN Ste Financière de Caout 4% Reg S Sen 16/09.12.21 2,362,000.00 2,424,000.00 0.77 EUR 500,000 Solvay SA VAR Reg S 20/02.03.Perpetual 496,880.00 514,645.00 0.16 Total bonds 21,032,262.00 21,005,454.00 6.68 Other transferable securities Bonds EUR 1,900,000 Atenor SA 3% EMTN Sen 16/04.10.21 1,938,815.00 1,910,583.00 0.61 EUR 1,400,000 Atenor SA 3.125% EMTN Sen 16/11.10.22 1,417,980.00 1,391,096.00 0.44 EUR 2,200,000 Atenor SA 3.5% EMTN Sen 16/04.10.23 2,199,250.00 2,236,476.00 0.71 EUR 900,000 Audax Renovables SA 4.2% EMTN 20/18.12.27 831,000.00 904,500.00 0.29 EUR 1,400,000 Codic International SA 4.25% EMTN Sen 17/01.12.22 1,409,630.00 1,362,368.00 0.43 EUR 1,700,000 Codic International SA 4.625% Sen 19/13.03.24 1,718,850.00 1,668,482.00 0.53 EUR 800,000 Infra Asia Investment Fd NV 6% Reg S Sen 16/12.05.23 801,850.00 805,360.00 0.26 EUR 700,000 Kinepolis Group NV 2.7% Sen Reg S 15/30.01.22 678,610.00 678,153.00 0.22 EUR 2,700,000 Koramic Real Estate NV 3.25% Sen 17 /06.12.22 2,727,000.00 2,739,528.00 0.87 EUR 500,000 Matexi NV 3.75% Sub Ser 995 16/22.06.23 503,750.00 459,865.00 0.15 EUR 4,900,000 Matexi NV 4.85% Sub 14/05.02.21 4,966,954.00 4,914,038.50 1.56 EUR 300,000 Retail Estates SICAFI SA 3.566% 14/23.04.21 306,485.00 301,383.00 0.10 EUR 200,000 Sacyr SA 4.5% Sen 17/16.11.24 203,600.00 203,413.00 0.06 EUR 2,000,000 VGP SA 3.35% Sen 17/30.03.25 2,000,000.00 1,971,120.00 0.63 21,703,774.00 21,546,365.50 6.86 SEK 16,600,000 Mercell Holding AS FRN Sen 20/08.12.25 1,642,691.59 1,658,923.16 0.53
Total bonds 23,346,465.59 23,205,288.66 7.39 Bonds in default of payment EUR 500,000 FNG Group NV 0% 15/01.06.21 478,850.00 0.00 0.00 Total bonds in default of payment 478,850.00 0.00 0.00 Open-ended investment funds Investment funds (UCITS) EUR 14,750.286 AXA World Fds Em Mks Short Duration Bonds I EUR Hedged 1,615,816.90 1,801,599.93 0.57 Cap EUR 21,000 CORUM Butler Cred Strat ICAV Opp Fd B EUR Cap 2,166,891.00 2,333,849.70 0.74 EUR 19,983.853 CORUM Butler Cred Strat ICAV Opp Fd Istl Fouder Pooled Cap 2,013,085.42 2,276,364.69 0.72 EUR 13,600 Evli Nordic Corp Bd Fd IB EUR Cap 1,977,527.05 2,047,833.60 0.65 EUR 380,000 M&G (Lux) Investemt Funds 1 Optimal Income C Cap 3,621,215.19 4,091,384.00 1.30
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
125 CONVENTUM - Income Opportunities
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
EUR 20,000 MontLake UCITS Platform ICAV Abrax Merg Arb Fd EUR I F 2,050,306.00 2,130,508.00 0.68 Cap EUR 34,000 Nordea 1 SICAV Flexible Fixed Income Fd BI Cap 3,683,140.70 3,893,680.00 1.24 EUR 270,000 PIMCO Fds Gl Investors Ser Plc Inc Istl EUR Cap 3,442,359.23 3,998,700.00 1.27 20,570,341.49 22,573,919.92 7.17 USD 6,269.854 AXA World Fds Em Mks Short Duration Bonds I Cap 641,738.63 707,536.32 0.22
Total investment funds (UCITS) 21,212,080.12 23,281,456.24 7.39 Total investments in securities 306,511,284.45 305,437,779.26 97.11 Cash at banks 5,735,595.93 1.82 Other net assets/(liabilities) 3,353,789.31 1.07 Total 314,527,164.50 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
126 CONVENTUM - Income Opportunities
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Financials 38.00 % Real estate 13.92 % Industrials 13.40 % Cyclical consumer goods 8.74 % Investment funds 7.39 % Raw materials 4.84 % Non-cyclical consumer goods 3.07 % Healthcare 2.51 % Energy 2.12 % Technologies 1.49 % Utilities 0.89 % Telecommunications services 0.74 % Total 97.11 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
Belgium 33.16 % France 23.65 % Luxembourg 9.30 % The Netherlands 8.54 % Ireland 3.90 % United Kingdom 3.54 % Germany 2.47 % United States of America 1.93 % Sweden 1.61 % Denmark 1.43 % Norway 1.33 % Italy 1.29 % Austria 1.20 % Portugal 1.00 % Spain 0.88 % Finland 0.72 % Bulgaria 0.60 % Monaco 0.29 % Bermuda 0.27 % Total 97.11 %
127 CONVENTUM - Equity Opportunities
Report of the Board of Directors from 1st January 2020 to 31st December 2020
In 2020, equity markets experienced intense volatility. 2019 was a very positive year, and 2020 continued with the same momentum. Suddenly, the end of February and early March saw the market take a very negative turn, due to COVID-19. The pandemic brought the economy to a complete standstill, with strict lockdowns in effect around the world. The largest indices lost more than 30% in a matter of weeks. However, central banks reacted in a responsive and decisive manner to avoid a global liquidity crisis. Interest rates will remain low for several years, and an enormous amount was injected into the banking system. After a widespread crash in equities, investors started to look for business models that would benefit from the acceleration of digitisation both in companies and in people's private lives. On the stock market, there was a clear difference in performance between the growth sectors compared to traditional sectors. Towards the end of the year, several effective vaccines were tested, thus igniting the hope of a return to normal life. At this time, we saw a very strong sector rotation that carried the markets through to a very strong end of the year. Stock market indices performed particularly well in the United States, where the composition of the indices has more of a growth slant, while in Europe there are more traditional sectors.
On the geopolitical front, the second half of the year was of particular importance. In Europe, an agreement was finally reached between the United Kingdom and the European Union to settle Brexit in a manner agreeable to both parties. In the United States, the election of a new president was once again disputed, but in the end Joe Biden did win and Donald Trump left the White House.
Emerging countries were more heavily impacted by COVID, but once good news on vaccines started to appear, they also benefited from hopes of a return to normality. The pandemic started in China, but by implementing massive restrictions, they were able to stop the disease. The Chinese economy picked up very quickly and continued to accelerate towards the end of 2020.
In the CONVENTUM - Equity Opportunities sub-fund, we have invested in direct lines in Europe and the United States, with additional third-party funds that provide geographical or technical diversification. During the crisis, our focus in the fund was on quality stocks (limited debt, good return on equity, strong cash flow), large market capitalisation and good growth. Gradually over the year, we added a few companies with a lower market capitalisation but with stronger growth in addition to some more cyclical stocks.
In this environment, our management strategy has been characterised by the following decisions:
To focus on the quality of the average balance sheet of the companies listed in the portfolio. The largest positions for the largest capitalisations To diversify the portfolio by adding third-party funds.
This strategy enabled us to achieve a return of 16.4% in 2020.
Track record (A class):
Janv Fév Mars Avr Mai Juin Juil Aaoût Sept Oct Nov Déc Annuel - - - - - 2020 1,49% 6,41% 11,20% 11,59% 4,82% 3,77% 0,23% 5,14% 0,91% 1,62% 8,54% 3,63% 16,40%
As at 31st December 2020, the assets under management had increased to EUR 45.37 million. This amount consisted of EUR 30.45 million in subscriptions, EUR 16.29 million in redemptions and a (net) appreciation in the portfolio of EUR 9.90 million.
128 CONVENTUM - Equity Opportunities
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Changes in assets under management:
Total AuM 50 000 000
45 000 000
40 000 000
35 000 000
30 000 000
25 000 000
20 000 000
15 000 000
10 000 000
5 000 000
0
Note: The information in this report represents historical data and is not an indication of future results.
129 CONVENTUM - Equity Opportunities
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 45,426,688.35 Cash at banks 427,561.98 Formation expenses, net 10,501.30 Total assets 45,864,751.63
Liabilities Bank overdrafts 0.16 Expenses payable 491,508.13 Total liabilities 491,508.29
Net assets at the end of the year 45,373,243.34
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) A 1,165.000 EUR 1,201.63 1,399,899.15 D 37,436.550 EUR 1,162.41 43,516,505.09 M 364.100 EUR 1,254.71 456,839.10 45,373,243.34
The accompanying notes are an integral part of these financial statements.
130 CONVENTUM - Equity Opportunities
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 372,220.55 Bank interest 122.44 Other commissions received 625.82 Other income 234.92 Total income 373,203.73
Expenses Management fees 310,724.75 Performance fees 379,690.41 Depositary fees 35,647.80 Banking charges and other fees 2,679.86 Transaction fees 64,878.66 Central administration costs 55,736.51 Professional fees 7,842.09 Other administration costs 9,394.34 Subscription duty ("taxe d'abonnement") 19,347.40 Other taxes 19,713.34 Bank interest paid 5,923.26 Other expenses 17,941.84 Total expenses 929,520.26
Net investment loss -556,316.53
Net realised gain/(loss) - on securities portfolio 1,813,817.27 - on forward foreign exchange contracts -3,966.26 - on foreign exchange -80,747.42 Realised result 1,172,787.06
Net variation of the unrealised gain/(loss) - on securities portfolio 8,719,195.42 - on option contracts 6,138.64 Result of operations 9,898,121.12
Subscriptions 30,455,063.93
Redemptions -16,291,719.96
Total changes in net assets 24,061,465.09
Total net assets at the beginning of the year 21,311,778.25
Total net assets at the end of the year 45,373,243.34
The accompanying notes are an integral part of these financial statements.
131 CONVENTUM - Equity Opportunities
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 13,764,783.55 21,311,778.25 45,373,243.34
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class A EUR 846.26 1,032.33 1,201.63 D EUR 826.74 1,007.73 1,162.41 M EUR - 1,090.42 1,254.71
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year A 1,062.000 300.000 -197.000 1,165.000 D 19,973.759 33,467.050 -16,004.259 37,436.550 M 80.000 284.100 - 364.100
132 CONVENTUM - Equity Opportunities
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Shares EUR 3,525 Adidas AG Reg 726,592.03 1,050,097.50 2.31 EUR 10,300 Alfen NV Reg 166,544.46 850,780.00 1.88 EUR 7,475 ASM Intl NV Reg 681,442.36 1,345,126.25 2.96 EUR 4,425 Brederode SA 267,660.77 359,310.00 0.79 EUR 13,750 Covestro AG 572,781.38 694,100.00 1.53 EUR 15,150 Dermapharm Holding SE Bearer 705,904.50 862,944.00 1.90 EUR 9,375 Interpump Group SpA 249,434.06 378,187.50 0.83 EUR 19,850 JDE Peet's BV Bearer Reg 722,299.88 733,457.50 1.62 EUR 42,500 Koninklijke Ahold Delhaize NV 910,600.63 982,175.00 2.17 EUR 4,375 L'Oréal SA 1,162,483.40 1,359,750.00 3.00 EUR 2,735 LVMH Moët Hennessy L Vuit SE 950,340.96 1,397,311.50 3.08 EUR 4,800 Melexis NV 256,325.59 383,520.00 0.85 EUR 19,850 NN Group NV 566,997.75 705,270.50 1.55 EUR 4,175 Prosus NV N Reg 384,557.21 368,903.00 0.81 EUR 4,000 Puma SE 214,457.32 369,120.00 0.81 EUR 8,500 Qt Group Plc Reg 238,107.10 489,600.00 1.08 EUR 69,700 Relx Plc 1,307,205.01 1,396,091.00 3.08 EUR 15,447 Royal Philips NV 567,590.87 676,269.66 1.49 EUR 1,425 Sofina SA 239,331.22 394,725.00 0.87 EUR 11,000 Tessenderlo Group NV Parts Soc 302,164.09 359,150.00 0.79 11,192,820.59 15,155,888.41 33.40 GBP 13,106 Keywords Studios Plc 192,941.94 418,714.10 0.92
HKD 121,050 Ping An Ins Gr Co of Cn Ltd H 1,122,390.01 1,212,065.07 2.67 HKD 19,000 Tencent Holdings Ltd 811,213.56 1,129,458.40 2.49 1,933,603.57 2,341,523.47 5.16 NOK 180,000 House of Control Group AS Reg 341,746.99 369,166.64 0.81 NOK 365,000 Mercell Holding AS Reg 357,414.20 362,107.64 0.80 699,161.19 731,274.28 1.61 SEK 31,500 Dometic Group AB 185,422.66 341,263.55 0.75 SEK 46,000 Epiroc AB Reg A 441,013.41 684,520.84 1.51 SEK 41,265 Indutrade AB 501,010.63 723,002.63 1.59 SEK 9,625 Lifco AB B 509,844.32 755,144.15 1.66 SEK 17,000 Sdiptech AB B Reg 328,017.43 388,802.35 0.86 SEK 37,000 Stillfront Group AB 387,775.57 367,920.38 0.81 2,353,084.02 3,260,653.90 7.18 USD 3,700 Accenture Plc A 563,674.61 789,863.52 1.74 USD 10,050 Activision Blizzard Inc 513,009.66 762,620.55 1.68 USD 3,425 Adobe Inc Reg 1,170,293.84 1,399,894.57 3.09 USD 3,750 Alibaba Group Holding Ltd ADR repr 8 Share 697,738.54 713,253.92 1.57 USD 960 Alphabet Inc A 1,071,749.04 1,375,068.98 3.03 USD 6,400 CDW Corp 659,677.34 689,323.31 1.52 USD 7,650 Microsoft Corp 1,091,491.65 1,390,579.44 3.07 USD 11,700 Nike Inc B 1,030,048.65 1,352,728.83 2.98 USD 6,000 Ping An Ins Gr Co of Cn Ltd spons ADR repr 2 Shares H Reg 110,464.10 120,137.30 0.27 USD 8,600 Qualcomm Inc 708,130.36 1,070,712.65 2.36 USD 800 The Trade Desk Inc A Reg 152,018.63 523,700.56 1.15 USD 10,300 The Walt Disney Co 1,048,872.69 1,525,134.03 3.36 USD 2,580 Veeva Syst Inc 432,324.11 574,047.89 1.27 USD 11,550 Walmart Inc Reg 1,211,039.02 1,360,683.64 3.00 USD 114,000 Zynga Inc A Reg 686,202.04 919,565.22 2.03 11,146,734.28 14,567,314.41 32.12 Total shares 27,518,345.59 36,475,368.57 80.39
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
133 CONVENTUM - Equity Opportunities
Statement of investments and other net assets (in EUR) (continued) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Closed-ended investment funds CHF 10,525 BB Biotech AG Dist 597,792.21 721,590.25 1.59 Total closed-ended investment funds 597,792.21 721,590.25 1.59 Transferable securities dealt in on another regulated market Shares GBP 5,541 Judges Scientific Plc Reg 244,752.44 394,902.80 0.87 Total shares 244,752.44 394,902.80 0.87 Open-ended investment funds Investment funds (UCITS) EUR 243,000 First Sentier Inv Gl Umbrella Fd Plc St Inv AsiP L Su VI Cap 563,226.43 696,365.10 1.54 EUR 290 Variopartner SICAV MIV Gl Medtech Fd I2 Cap 608,391.32 688,642.70 1.52 1,171,617.75 1,385,007.80 3.06 GBP 104,000 Fundsmith Equity Fd I GBP Cap 492,894.68 644,669.73 1.42 GBP 83,500 Legg Mason Fds ICVC IF Japan Equity X GBP Cap 394,655.09 619,629.54 1.37 887,549.77 1,264,299.27 2.79 JPY 4,325 Goldman Sachs Fds Scv Japan Equity Partners Ptf I Cap 499,432.57 687,318.65 1.52 JPY 3,825 UBAM Angel Japan Small Cap Equity IPC Cap 501,102.17 695,667.34 1.53 1,000,534.74 1,382,985.99 3.05 USD 125 CS Inv Fds 2 Digital Health Eq EB Cap 190,966.76 356,023.21 0.78 USD 21,500 F Templeton Inv Fds Asian Smaller Co Cap 879,419.26 1,009,986.92 2.23 USD 36,200 Guardcap UCITS Fds Plc Global Equity I USD Cap 577,967.71 696,190.26 1.53 USD 18,500 Janus Henderson Cap Fd Plc US Venture I2 USD Cap 511,752.39 721,947.53 1.59 2,160,106.12 2,784,147.92 6.13 Total investment funds (UCITS) 5,219,808.38 6,816,440.98 15.03 Tracker funds (UCITS) EUR 275,500 iSAes V Plc S&P US Banks UCITS ETF Cap 993,039.75 1,018,385.75 2.24 Total tracker funds (UCITS) 993,039.75 1,018,385.75 2.24 Total investments in securities 34,573,738.37 45,426,688.35 100.12 Cash at banks 427,561.98 0.94 Bank overdrafts -0.16 0.00 Other net assets/(liabilities) -481,006.83 -1.06 Total 45,373,243.34 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
134 CONVENTUM - Equity Opportunities
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Technologies 30.35 % Investment funds 18.86 % Cyclical consumer goods 13.35 % Industrials 12.17 % Non-cyclical consumer goods 9.79 % Financials 8.62 % Healthcare 4.66 % Raw materials 2.32 % Total 100.12 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
United States of America 28.54 % The Netherlands 12.48 % Ireland 8.64 % Luxembourg 8.37 % United Kingdom 7.66 % Sweden 7.18 % Germany 6.55 % France 6.08 % Cayman Islands 4.06 % China 2.94 % Belgium 2.51 % Norway 1.61 % Switzerland 1.59 % Finland 1.08 % Italy 0.83 % Total 100.12 %
135 CONVENTUM - Waterlily W Flexible Equity Fund
Report of the Board of Directors from 1st January 2020 to 31st December 2020
2020 is marked by the first recovery truly worthy of being considered “V-shaped” that we have experienced in our career in finance.
In the first quarter of 2020, the fund's system held up very well against turbulence by significantly reducing the impact of declining stock markets. We do have some regret over the infamous second quarter, where we set aside our strategic convictions and caution dominated the way we interpreted the unfolding health disaster. Uncertainty, which normally causes equity markets to fall, was this time accompanied by a rise in stock markets for the rest of the year. Our risk aversion and outlook in the second quarter were not successful.
In Q3 2020, we were late in coming back to the markets. The fall in the USD penalised us in a market that only had eyes for technology.
2020 brought a loss to the fund and taught us that deviating from the given strategy – out of caution – does not bear fruit.
For 2021, our ultimate goal is to reintegrate the strongest elements, and the initial results are promising. Therefore, we will no longer allow human emotion to dissuade us from our strategic path. We will remain rigorously oriented by market psychology and therefore by our strategic system. We are expecting a less turbulent year on the financial markets. Thanks to the support of central banks, more predictable policy in the US, the levels and peaks of extreme volatility in 2020 will likely be a thing of the past. We anticipate smooth sailing and good visibility for 2021.
Note: The information in this report represents historical data and is not an indication of future results.
136 CONVENTUM - Waterlily W Flexible Equity Fund
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 16,505,313.12 Cash at banks 303,902.68 Formation expenses, net 1,885.28 Total assets 16,811,101.08
Liabilities Expenses payable 79,253.38 Total liabilities 79,253.38
Net assets at the end of the year 16,731,847.70
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) B 129,463.000 EUR 103.64 13,417,091.48 I 31,185.000 EUR 106.29 3,314,756.22 16,731,847.70
The accompanying notes are an integral part of these financial statements.
137 CONVENTUM - Waterlily W Flexible Equity Fund
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 39,933.61 Bank interest 1,136.28 Total income 41,069.89
Expenses Management fees 260,777.21 Performance fees 2,004.42 Depositary fees 29,840.07 Banking charges and other fees 1,840.93 Transaction fees 16,810.04 Central administration costs 34,098.27 Professional fees 6,802.96 Other administration costs 4,403.05 Subscription duty ("taxe d'abonnement") 7,002.44 Bank interest paid 3,840.50 Other expenses 2,483.47 Total expenses 369,903.36
Net investment loss -328,833.47
Net realised gain/(loss) - on securities portfolio 410,308.99 - on futures contracts -2,422,150.90 - on foreign exchange -80,980.16 Realised result -2,421,655.54
Net variation of the unrealised gain/(loss) - on securities portfolio 1,223,020.98 Result of operations -1,198,634.56
Subscriptions 1,633,767.38
Redemptions -1,961,277.14
Total changes in net assets -1,526,144.32
Total net assets at the beginning of the year 18,257,992.02
Total net assets at the end of the year 16,731,847.70
The accompanying notes are an integral part of these financial statements.
138 CONVENTUM - Waterlily W Flexible Equity Fund
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2018 31.12.2019 31.12.2020 EUR 17,427,359.67 18,257,992.02 16,731,847.70
Net asset value per Currency 31.12.2018 31.12.2019 31.12.2020 share class B EUR 102.99 110.69 103.64 I EUR 104.43 112.88 106.29
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year B 138,766.000 5,548.000 -14,851.000 129,463.000 I 25,675.000 9,300.000 -3,790.000 31,185.000
139 CONVENTUM - Waterlily W Flexible Equity Fund
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Open-ended investment funds Tracker funds (UCITS) EUR 12,000 DekaDAX UCITS ETF Cap 1,431,366.23 1,485,360.00 8.88 EUR 15,000 iShares Core DAX UCITS ETF (DE) Cap 1,405,235.74 1,753,500.00 10.48 EUR 50,000 iShares ST Eur 600 Tr & Lei DE Dist 943,700.00 1,052,000.00 6.29 EUR 15,000 Multi Units Lux Lyxor Nasdaq 100 UCITS ETF Dist 711,000.00 1,654,800.00 9.89 EUR 12,400 Xtrackers DAX UCITS ETF 1C Cap 1,285,076.48 1,633,824.00 9.76 5,776,378.45 7,579,484.00 45.30 USD 6,000 iShares VII Plc Core S&P500 UCITS ETF USD Cap 1,332,446.79 1,847,417.46 11.04 USD 3,000 iShares VII Plc Nasdaq 100 UCITS ETF Cap 856,540.20 1,778,032.04 10.63 USD 20,000 SSgA SPDR ETFs Europe II Plc S&P US Tech Sel Sec UCITS 444,507.20 1,095,415.17 6.55 Dist USD 20,000 SSgA SPDR ETFs Europe II Plc SPDR S&P US Ind Sel Sec 448,028.25 586,588.75 3.51 ETF Cap USD 35,000 Vanguard Fds Plc S&P500 UCITS ETF USD Dist 1,589,431.79 2,023,669.91 12.09 USD 27,800 Xtrackers S&P 500 Swap UCITS ETF 1C Cap 994,683.23 1,594,705.79 9.53 5,665,637.46 8,925,829.12 53.35 Total investments in securities 11,442,015.91 16,505,313.12 98.65 Cash at banks 303,902.68 1.82 Other net assets/(liabilities) -77,368.10 -0.47 Total 16,731,847.70 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
140 CONVENTUM - Waterlily W Flexible Equity Fund
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Investment funds 98.65 % Total 98.65 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
Ireland 43.82 % Luxembourg 29.18 % Germany 25.65 % Total 98.65 %
141 CONVENTUM - Alluvium Global Fund
Report of the Board of Directors from 1st January 2020 to 31st December 2020
This was a solid last quarter that ended an extraordinary year full of rebounds. During 2020, the EUR share of the CONVENTUM - Alluvium Global Fund sub-fund fell by 1.7%. The share in US dollars rose 7.1%. This significant difference highlights the relative decline of the dollar against the euro, especially since most of the portfolio's positions are denominated in dollars.
We have seen for several quarters that a limited number of companies “carry” the performance of the equity markets. In 2020, only ten "growth” stocks, out of the 1,585 comprising the MSCI World Index, account for approximately 75% of the total return of this index. Every quarter, we are convinced that a paradigm shift is about to be implemented: “value” management catching up with “growth” management. We hope that the good performance of “value” stocks in the last quarter bodes well for the next quarter, in order to continue to compensate for the delay that has accumulated over the past several years.
Panic Rebound Consolidation Euphoria Year
01-Jan - 23-Mar 24-Mar - 30-Jun 01-Jul - 30-Sep 01-Oct - 31-Dec 01-Jan - 31-Dec
MSCI World -31.8% 38.2% 7.9% 14.0% 15.9%
MSCI World Growth -26.2% 44.3% 11.7% 12.5% 33.8%
MSCI World Value -37.3% 31.1% 4.0% 16.6% -0.3%
Fund (classe USD) -37.9% 34.1% 5.6% 21.9% 7.2%
Gold 2.7% 15.2% 5.2% 0.6% 25.1%
Bitcoin -11.2% 43.4% 17.1% 171.4% 304.7% Growth - Value +11.1% +13.1% +7.7% -4.1% +34.1% (différence) Fund - Value -0.6% +3.0% +1.6% +5.3% +7.5% (différence)
Table 1 clearly highlights the advantages of remaining invested in particularly tense moments on the market. If an investor had decided to sell around March's lows, they would have been relieved to have left the market. However, how would they feel if someone told them that just 9 months later, they would miss the tremendous stock market performance that followed.
We continue to believe that managing assets is about investing in companies that are not fairly valued and where we feel entirely comfortable as owners. This means that these companies must operate according to a business model that we understand and that they must under no circumstances produce socially detrimental goods and services. In recent years, the extraordinary stock market performance of many companies that do not pass our “comfort zone” criterion has made our task of “beating the market” increasingly complicated. Despite this obvious challenge, we are not changing our philosophy: we are still not willing to invest in companies lacking these fundamental characteristics, in line with our specifications. On the other hand, we are more inclined to include more qualitative criteria in our management process, which will result in a greater willingness to pay a price that we would have historically deemed "uncomfortable" for companies that we consider to be "comfortable."
Since 2008, we have been privy to a period without precedent, characterised by central banks that continue to flood the entire economic system with liquidity. Undoubtedly, this has made it possible to avert economic disaster. However, this is not without concealing significant risks: whether it is the most fragile companies that do not find it difficult to refinance, or hedge funds that exhibit stratospheric performance (although using significant leverage, to put it mildly), private equity funds are also particularly aggressive on the use of debt and managed by a rock star-esque, flamboyant manager or whether it is the market price of the shares of companies whose cash flows are far away (and therefore inherently uncertain) and which are expected to grow considerably. All of this leads us to ask ourselves the following two questions: do market operators include a sufficiently large margin of error as capital discount rates approach zero (when they are not negative!). Are these same operators aware that one day or another, the liquidity tap, which has remained largely open for the last 12 years, could quite simply be turned off?
142 CONVENTUM - Alluvium Global Fund
Report of the Board of Directors (continued) from 1st January 2020 to 31st December 2020
Stock Contribution (%) Vestas 3.4 HCA Healthcare 2.3 Micron Technology 2.1 Linamar 2.0 Samsung Electronics 2.0 Thor Industries 1.5 McKesson 1.3 Capri Holdings 1.3 Regis Resources 1.2 LyondellBasell 1.1 Dick's Sporting 1.1 Lear Corporation 0.9 F5 Networks 0.8 Ruths Hospitality 0.7 Alphabet 0.4 Methode Electronics 0.4 Robert Half 0.2 Ryanair 0.1 Roche 0.0 Gilead 0.0 Franklin -0.1 Tosoh -0.2 Northern Star -0.2 Western Forest -0.3 Shenhua Energy -0.4 T-Gaia -0.6 Kirkland Lake -0.9 Southwest Airlines -1.2 Walgreens Boots -1.5 H&R Block -2.4 Hawaiian Holdings -2.5 Delta Air Lines -2.7 United Airlines -3.7
For more information on performance and the operations made in each of the four quarters of 2020, please visit our website:
Note: The information in this report represents historical data and is not an indication of future results.
143 CONVENTUM - Alluvium Global Fund
Statement of net assets (in EUR) as at 31st December 2020
Assets Securities portfolio at market value 24,614,796.62 Cash at banks 3,827,678.36 Formation expenses, net 7,311.06 Income receivable on portfolio 5,084.99 Bank interest receivable 2.72 Total assets 28,454,873.75
Liabilities Expenses payable 95,590.04 Total liabilities 95,590.04
Net assets at the end of the year 28,359,283.71
Breakdown of net assets per share class
Share class Number Currency NAV per share Net assets per of of in currency of share class shares share class share class (in EUR) I 26,922.212 EUR 1,049.83 28,263,780.00 O 100.000 USD 1,168.58 95,503.71 28,359,283.71
The accompanying notes are an integral part of these financial statements.
144 CONVENTUM - Alluvium Global Fund
Statement of operations and other changes in net assets (in EUR) from 1st January 2020 to 31st December 2020
Income Dividends, net 302,955.98 Bank interest 8,322.94 Total income 311,278.92
Expenses Management fees 309,108.19 Depositary fees 31,766.71 Banking charges and other fees 1,870.86 Transaction fees 15,418.59 Central administration costs 26,852.10 Professional fees 6,100.49 Other administration costs 2,812.99 Subscription duty ("taxe d'abonnement") 2,372.48 Bank interest paid 9,431.47 Other expenses 2,724.41 Total expenses 408,458.29
Net investment loss -97,179.37
Net realised gain/(loss) - on securities portfolio -840,661.90 - on forward foreign exchange contracts -496.47 - on foreign exchange -398,845.27 Realised result -1,337,183.01
Net variation of the unrealised gain/(loss) - on securities portfolio 1,302,567.38 Result of operations -34,615.63
Subscriptions 2,499,999.54
Redemptions -251,301.41
Total changes in net assets 2,214,082.50
Total net assets at the beginning of the year 26,145,201.21
Total net assets at the end of the year 28,359,283.71
The accompanying notes are an integral part of these financial statements.
145 CONVENTUM - Alluvium Global Fund
Statistical information (in EUR) as at 31st December 2020
Total net assets Currency 31.12.2019 31.12.2020 EUR 26,145,201.21 28,359,283.71
Net asset value per Currency 31.12.2019 31.12.2020 share class I EUR 1,067.87 1,049.83 O USD 1,090.64 1,168.58
Number of shares outstanding at the issued redeemed outstanding at the beginning of the end of the year year I 24,392.573 2,785.670 -256.031 26,922.212 O 100.000 - - 100.000
146 CONVENTUM - Alluvium Global Fund
Statement of investments and other net assets (in EUR) as at 31st December 2020
Currency Number / Description Cost Market value % of nominal value total net assets *
Investments in securities Transferable securities admitted to an official stock exchange listing Shares AUD 70,000 Northern Star Resources Ltd 603,752.62 560,087.81 1.98 AUD 330,000 Regis Resources Ltd 655,041.29 778,183.47 2.74 1,258,793.91 1,338,271.28 4.72 CAD 32,000 Kirkland Lake Gold Ltd Reg 1,307,937.97 1,080,013.30 3.81 CAD 37,300 Linamar Corp Reg 1,032,311.77 1,613,581.71 5.69 CAD 500,000 Western Forest Products Inc 629,208.48 410,651.45 1.45 2,969,458.22 3,104,246.46 10.95 CHF 2,700 Roche Holding Ltd 785,521.03 773,896.45 2.73
DKK 6,000 Vestas Wind Systems A/S 528,059.27 1,160,318.13 4.09
EUR 65,000 Ryanair Holdings Plc 630,686.97 1,056,575.00 3.73
JPY 34,000 T-Gaia Corp Reg 652,590.73 520,826.94 1.84
KRW 27,000 Samsung Electronics Co Ltd 919,867.19 1,643,735.33 5.80
USD 328 Alphabet Inc A 397,843.27 469,815.23 1.66 USD 39,100 Capri Holdings Ltd Reg 1,143,267.60 1,342,105.26 4.73 USD 26,000 Dick's Sporting Goods Inc 754,195.37 1,194,393.59 4.21 USD 12,400 Gilead Sciences Inc 752,881.67 590,408.63 2.08 USD 55,000 H & R Block Inc 1,153,882.31 712,896.37 2.51 USD 10,500 HCA Healthcare Inc 1,040,478.65 1,411,270.02 4.98 USD 11,000 Lear Corp 1,385,850.43 1,429,658.39 5.04 USD 22,200 Lyondellbasell Industries NV 1,529,148.21 1,663,004.25 5.86 USD 9,000 McKesson Corp 966,896.56 1,279,241.58 4.51 USD 38,000 Methode Electronics Inc 1,150,565.02 1,188,819.88 4.19 USD 22,500 Micron Technology Inc 924,440.70 1,382,437.07 4.87 USD 15,000 Robert Half Intl Inc 735,846.65 765,936.58 2.70 USD 16,000 Southwest Airlines Co 741,873.87 609,480.22 2.15 USD 6,000 Thor Industries Inc 320,743.80 455,982.35 1.61 USD 16,000 Walgreens Boots Alliance Inc 765,317.52 521,477.61 1.84 13,763,231.63 15,016,927.03 52.94 Total investments in securities 21,508,208.95 24,614,796.62 86.80 Cash at banks 3,827,678.36 13.50 Other net assets/(liabilities) -83,191.27 -0.30 Total 28,359,283.71 100.00
* Minor differences may arise due to rounding in the calculation of percentages. The accompanying notes are an integral part of these financial statements.
147 CONVENTUM - Alluvium Global Fund
Industrial and geographical classification of investments as at 31st December 2020
Industrial classification (in percentage of net assets)
Cyclical consumer goods 27.08 % Raw materials 15.84 % Industrials 12.77 % Healthcare 9.79 % Non-cyclical consumer goods 8.86 % Technologies 6.53 % Energy 4.09 % Telecommunications services 1.84 % Total 86.80 %
Geographical classification (by domicile of the issuer) (in percentage of net assets)
United States of America 42.35 % Canada 10.95 % The Netherlands 5.86 % South Korea 5.80 % British Virgin Islands 4.73 % Australia 4.72 % Denmark 4.09 % Ireland 3.73 % Switzerland 2.73 % Japan 1.84 % Total 86.80 %
148 CONVENTUM
Notes to the financial statements as at 31st December 2020
Note 1 - General information
CONVENTUM (the "SICAV") is an open-ended investment company ("société d'investissement à capital variable") with multiple Sub-Funds subject to Luxembourg law. The SICAV is governed by the Council Directive 2009/65/EC as amended as well as by the Part I of the amended Law of 17th December 2010 relating to Undertakings for Collective Investment.
The Net Asset Value, issue, redemption and conversion price of each class of shares are available every full bank working day in Luxembourg at the SICAV’s registered office.
At the end of each financial year ended on 31st December, the SICAV publishes an annual report audited by the Independent Auditor, as well as, at the end of each semester, an unaudited half-yearly report. These financial reports include, amongst other items, separate financial statements drawn up for each Sub-Fund.
The following documents are made available to the public at the registered office of the SICAV and at the registered office of the Management Company:
- the Prospectus of the SICAV, including the Articles of Incorporation and the fact sheets, - the key investor information document (“KIID”) of the SICAV, (also published on www.conventumtps.lu), - the financial reports of the SICAV.
The complaint settlement procedure foreseen by the CSSF relating to the out-of-court resolution of complaints is available at the registered office of the SICAV.
Note 2 - Principal accounting methods a) Presentation of the financial statements
The financial statements of the SICAV are prepared in accordance with the Luxembourg legal and regulatory requirements concerning undertakings for collective investment and with generally accepted accounting principles in Luxembourg.
The financial statements of the SICAV have been prepared on a going concern basis. b) Valuation of assets
1) The value of cash in hand or on deposit, bills and notes due on demand, accounts receivable, dividends, and interest declared or due but not yet received consists of the nominal value of these assets, unless it is unlikely that this value is received, in which event, the value is determined by deducting an amount which the SICAV deems adequate to reflect the actual value of these assets.
2) The value of all transferable securities, money-market instruments and financial derivative instruments that are listed on a stock exchange or traded on another regulated market, which operates regularly, and is recognised and open to the public, is determined based on the most recent available price.
3) In the case of SICAV investments that are listed on a stock exchange or traded on another regulated market, which operates regularly, and is recognised and open to the public, and traded by market keepers outside the stock exchange on which the investments are listed, or of the market on which they are traded, the Board of Directors may determine the main market for the investments in question that is evaluated at the last available closing price on that market.
149 CONVENTUM
Notes to the financial statements (continued) as at 31st December 2020
4) The value of securities representative of an open-ended undertaking for collective investment is determined according to the last official net asset value per unit or according to the last estimated net asset value if it is more recent than the official net asset value, and provided that the SICAV is assured that the valuation method used for this estimate is consistent with that used for the calculation of the official net asset value.
5) To the extent that transferable securities, money market instruments and/or financial derivative instruments held in the portfolio on the Valuation Day are not listed or traded on a stock exchange or on another regulated market that operates regularly and is recognised and open to the public or, for transferable securities, money market instruments and/or financial derivative instruments listed and traded on a stock exchange or on another market but for which the price determined under sub-paragraph 2) or 4) is not, in the opinion of the Board of Directors, representative of the real value of these transferable securities, money market instruments and/or financial derivative instruments or, for financial derivative instruments traded over-the- counter and/or securities representing undertakings for collective investment, the price determined in accordance with sub-paragraphs 5) is not, in the opinion of the Board of Directors, representative of the real value of these financial derivative instruments or securities representing undertakings for collective investment, the Board of Directors shall estimate the probable realisable value prudently and in good faith. c) Acquisition cost of securities in the portfolio
The acquisition cost of the securities held by each Sub-Fund that are denominated in currencies other than the reference currency of the Sub-Fund is converted into currency at the exchange rate prevailing on the date of purchase. d) Net realised gain/(loss) on securities portfolio
The realised gains and losses on securities portfolio are calculated on the basis of the average acquisition cost and are recorded net in the statement of operations and other changes in net assets. e) Investment income
Dividend income is recorded at the ex-date, net of any withholding tax.
Interest income accrued and payable is recorded, net of any withholding tax. f) Accounting principles relating to options
Premiums paid on the purchase of options are disclosed under the item ʺOption contracts at market valueʺ in the statement of net assets and are presented as cost in the statement of investments and other net assets. Premiums received on issued options are disclosed under the item ʺShort option contracts at market valueʺ in the statement of net assets and are presented as cost received in the statement of investments and other net assets. Open option contracts outstanding at the date of the financial statements are valued at the last settlement or closing price on the stock exchanges or regulated markets. Net variation of unrealised gains or losses and net realised gains or losses are disclosed in the statement of operations and other changes in net assets. g) Valuation of forward foreign exchange contracts
Open forward foreign exchange contracts are valued at forward market rates for the remaining period from valuation date to the maturity of the contracts. Net unrealised gains or losses of open contracts are disclosed in the statement of net assets. Net variation of unrealised gains and losses and net realised gains and losses are disclosed in the statement of operations and other changes in net assets.
150 CONVENTUM
Notes to the financial statements (continued) as at 31st December 2020
h) Valuation of futures contracts
Open futures contracts are registered on the posted off balance sheet and valued at the last settlement or close price on the stock exchanges or regulated markets. Net unrealised gains or losses of open contracts are disclosed in the statement of net assets. Net variation of unrealised gains or losses and net realised gains or losses are disclosed in the statement of operations and other changes in net assets. i) Formation expenses
Formation expenses are amortised using the straight-line method over five years.
The formation expenses may be amortised over a maximum of five years starting from the date of launching of the first Sub-Fund, in proportion to the number of operating Sub-Funds, at that time. j) Conversion of foreign currencies
Cash at banks, other net assets and liabilities and the market value of the securities in portfolio expressed in currencies other than the reference currency of the Sub-Fund are converted into this currency at the exchange rate prevailing on the date of the financial statements. Income and expenses expressed in currencies other than the reference currency of the Sub-Fund are converted into this currency at the exchange rate prevailing on the date of the transaction. Net realised gains or losses on foreign exchange are recorded in the statement of operations and other changes in net assets. k) Combined financial statements
The combined financial statements of the SICAV are expressed in EUR and are equal to the sum of the corresponding items in the financial statements of each Sub-Fund converted into this currency at the exchange rates prevailing at the date of the financial statements.
At the date of the financial statements, the exchange rate used for the combined financial statements is the following:
1 EUR = 1.2236000 USD US Dollar l) Revaluation difference
The item "Revaluation difference" in the combined statement of operations and other changes in net assets represents the valuation difference of the net assets at the beginning of the financial year of the Sub-Funds converted into the reference currency of the SICAV with the exchange rates applicable at the beginning of the financial year and the exchange rates applicable at the end of the financial year. m) Transaction fees
Transaction costs disclosed under the item "Transaction fees" in the expenses of the statement of operations and other changes in net assets are mainly composed of broker fees incurred by the SICAV and of fees relating to transactions paid to the depositary as well as of transaction fees on financial instruments and derivatives. n) Other liabilities
The item "Other liabilities " disclosed in the statement of net assets includes margin accounts on futures contracts reflecting daily margin variations.
151 CONVENTUM
Notes to the financial statements (continued) as at 31st December 2020
Note 3 - Management fee
The Management Company may, under its own responsibility and control, entrust the management of the assets of one or more Sub-Funds of the SICAV to Investment Managers. The management function has been delegated to the following managers during the financial year.
This management fee is payable quarterly and based on the average net asset of the Sub-Fund over the quarter in question, excepted for the Sub-Funds managed by SHELTER INVESTMENT MANAGEMENT for which this fee is payable monthly.
At the date of the financial statements, the annual effective rates of the management fee are the following:
BLI - BANQUE DE LUXEMBOURG INVESTMENTS (formerly BLI - BANQUE DE LUXEMBOURG INVESTMENTS S.A.)
- CONVENTUM - Institutional Fund Share class B the difference between max. 0.35% of the average net assets of the Sub-Fund per annum and the fixed quarterly fee of EUR 3,500.00 payable to the Management Company - CONVENTUM - Mekks Segment 1 0.60% - CONVENTUM - Prime Selection Share class L 0.05%
CONVENTUM ASSET MANAGEMENT (since 1st January 2021 BLI - BANQUE DE LUXEMBOURG INVESTMENTS acting under its brand name CONVENTUM THIRD PARTY SOLUTIONS) - CONVENTUM - MultiAssets Share class B 0.45%
LYRICAL ASSET MANAGEMENT LP
- CONVENTUM - Lyrical Fund Share class B 1.25% Share class I 0.75% Share class S 0.25% Share class W 0.90% (until 15/11/20) (until 15/11/20) 0.75% (since 16/11/20)
SHELTER INVESTMENT MANAGEMENT
- CONVENTUM - Fortuna Royale 1 Share class A 0.13% (per month) Share class J 0.065% (per month)
- CONVENTUM - Fortuna Royale 2 Share class B 0.13% (per month) Share class I 0.065% (per month)
- CONVENTUM - Fortuna Royale 3 Share class B 0.13% (per month) Share class I 0.065% (per month)
LAZARD FRERES GESTION
- CONVENTUM - Echium Shares classes A and B 0.40%
152 CONVENTUM
Notes to the financial statements (continued) as at 31st December 2020
FUCHS & ASSOCIES FINANCE S.A. - CONVENTUM - FensiFund Share class B 1.40% Share class I 1.00%
- CONVENTUM - Waterlily W Flexible Equity Fund Share class B 1.45% Share class I 0.90%
ARCHE WEALTH MANAGEMENT
- CONVENTUM - Mekks Segment 2 0.60%
CREATERRA S.A.
- CONVENTUM - Createrra Progress World Equities Share class B 1.50% - CONVENTUM - Createrra Multi Assets Index Fund Share class M 1.25%
QUAESTOR VERMOGENSBEHEER N.V.
- CONVENTUM - Dynamic Opportunities Share Classes A, D and N 0.75% Share class M 1.25%
- CONVENTUM - Income Opportunities Share class A 0.50%
- CONVENTUM - Equity Opportunities Share class A and D 0.75% Share class M 1.25%
ALLUVIUM ASSET MANAGEMENT PTY LTD
- CONVENTUM - Alluvium Global Fund Share classes I and O 1.15%
The Management Company fee, paid on the basis of practices of the market in Luxembourg, is recorded under the caption "Management fees" in the statement of operations and other changes in net assets.
Note 4 - Management fee of the target funds
A management fee is planned for Sub-Funds that invest at least 50% of their assets in other related UCITS.
The target fund management fee is a maximum of 2.50% p.a. of the net assets invested in the target fund.
Retrocessions of management fees received by the SICAV and its related investments in UCITS or other UCI are recorded under the caption "Other commissions received" in the statement of transactions and other variations in net assets.
Note 5 - Performance fee
For the Sub-Fund CONVENTUM - Lyrical Fund, LYRICAL ASSET MANAGEMENT LP is entitled to receive, where applicable, a performance fee in relation to each of classes B, I, and W shares equal to 20% and to each of classes S shares equal to 30% of the "Accumulated Surplus Performance" of the Net Asset Value, as defined below, with respect to each financial year (hereafter "the Calculation Period").
153 CONVENTUM
Notes to the financial statements (continued) as at 31st December 2020
The "Accumulated Surplus Performance" is determined by the addition of the daily differences between the "Daily Performance of the Share Class" and the "Daily Performance of the Benchmark". During a sub-performance Calculation Period, the "Accumulated Surplus Performance" will be reduced and may even be negative. A provision will be recognised for a performance fee only in the event of a positive "Accumulated Surplus Performance". The "Daily Performance of the Share Class" is the difference between the Net Asset Value on that Valuation Day and the “Adjusted Net Asset Value” of the previous Valuation Day, calculated each Valuation Day.
The "Adjusted Net Asset Value" is the Net Asset Value adjusted to reflect any distribution, subscription and redemption on the relevant Valuation Day. The "Daily Performance of the Benchmark" is the capital gain or loss theoretically obtained by having invested the "Adjusted Net Asset Value" of the Valuation Day in the S&P 500 index of the previous Valuation Day.
All calculations must be made before deducting the performance fee for the Calculation Period in progress and must include realised and unrealised gains as well as losses, and in each case shall be readjusted to take into account dividends and distributions paid, recapitalisations or other similar operations.
The calculation period corresponds to the accounting year. The annual performance fee is generally payable to the Investment Manager after the end of each Calculation Period or on the date of any redemption occurring before the end of the Calculation Period (the "Redemption Date"). The performance fee which is payable for each share bought back before the end of the Calculation Period is determined solely with reference to this share and is payable to the Investment Manager on the Redemption Date. In the event of a negative Accumulated Surplus Performance at the end of a Calculation Period, this negative Accumulated Surplus Performance will be carried forward to the next Calculation Period. The performance fee can be fully or partially reversed by the Investment Manager, to the Sub-Fund, at his sole discretion.
For the Sub-Fund CONVENTUM - FensiFund, FUCHS & ASSOCIES FINANCE S.A. is entitled to receive, where applicable, a performance fee in relation to each of classes B and I as described below :
1. For each quarter during which the performance of the Sub-Fund exceeds the minimum rate of return (“hurdle rate”) calculated on a pro rata basis (the “Outperformance”), a fee amounting to 10% of the outperformance realised is to be paid under the conditions determined in Paragraph 4. A provision shall also be set aside for this performance fee on each Valuation Date. If the NAV per share decreases during the calculation period, the provisions set aside for the performance fee shall be reduced accordingly. If these provisions are reduced to zero, no performance fee will be charged.
2. The Performance of the Sub-Fund for each share class in question equates to the difference between the NAV per share at the end of the current quarter (“Final NAV”) and that at the end of the previous quarter (“Initial NAV”), expressed as a percentage (the “Performance”). For the first quarter that the performance fee is applied, the Initial NAV will be the price per share of the share class at launch.
3. For each share class, the hurdle rate is fixed at the 3-month Euribor rate +2% rate to be realised on a pro rata basis if the Initial NAV per share is exceeded (NAV at the end of the previous quarter).
4. The Outperformance fee is only payable when (1) the Performance exceeds the hurdle rate calculated on a pro rata basis, and (2) the Final NAV per share is greater than the highest historical Final NAV per share (High Watermark principle); in such cases, the Outperformance fee is applied to the difference between the Final NAV per share and that of the High Watermark. If the Performance exceeds the hurdle rate calculated on a pro rata basis, and the Final NAV per share is lower than the highest historical Final NAV per share, no Outperformance fee is applicable. If the Performance does not exceed the hurdle rate calculated on a pro rata basis, and the Final NAV per share is greater than the highest historical Final NAV per share, no Outperformance fee is applicable. If the Performance does not exceed the hurdle rate calculated on a pro rata basis, and
154 CONVENTUM
Notes to the financial statements (continued) as at 31st December 2020
the Final NAV per share is lower than the highest historical Final NAV per share, no Outperformance fee is applicable.
5. Investors are advised that the performance fee is subject to the crystallization principle. When shares are redeemed on a date other than the date when the performance fee is paid out, and when a provision has been set aside for the performance fee, the provisioned performance fee amount payable on redeemed shares will be considered as accruing to the Manager and paid out at the end of the quarter concerned. In the case of subscriptions, the calculation of the performance fee is adjusted to prevent the subscription having an impact on the amount of provisions for performance fees. For such adjustments, the outperformance of the net asset value per share compared with the minimum rate of return up to the subscription date is not taken into account when calculating the performance fee. The provision set aside for the performance fee will be reduced by 10% of the Outperformance determined on the Valuation Date on which the subscriptions were deducted, multiplied by the number of shares subscribed to.
For the Sub-Fund CONVENTUM - Createrra Progress World Equities, CREATERRA S.A. is entitled to receive, where applicable, a performance fee in relation to each of classes B as described below :
1. For each quarter during which the performance of the share class exceeds the 3-month Euribor rate + 3% annually (the “Reference Rate”) expressed as a percentage (the “Outperformance”), a fee amounting to 10% of the Outperformance calculated on the net assets on the day prior to the deduction of the performance fee, is to be paid under the conditions determined in paragraph 3. The Outperformance is the (positive) difference between the (positive or negative) performance of the share class and the (positive or negative) performance of the Reference Rate over the quarter in question. A provision shall also be set aside for this performance fee on each Valuation Day. If the NAV per share decreases during the calculation period, the provisions set aside for the performance fee shall be reduced accordingly. If these provisions are reduced to zero, no performance fee will be charged.
2. The performance of the share class equates to the difference between the NAV per share at the end of the current quarter (“Final NAV”) and that at the end of the previous quarter (“Initial NAV”), expressed as a percentage (the “Performance”). For the first quarter that the performance fee is applied, the Initial NAV will be the initial subscription price of the share class at launch.
3. The performance fee is only payable when 1) the performance of the share class exceeds the performance of the Reference Rate over the quarter, and 2) the Final NAV per share for the quarter is greater than highest historical Final NAV per share for the quarter (“High Watermark” principle). If the performance of the share class does not exceed the Reference Rate, no performance fee is applicable. If the performance exceeds the Reference Rate and the Final NAV per share for the quarter is less than the highest historical Final NAV per share for the quarter, no performance fee is applicable.
4. Investors are advised that the performance fee is subject the crystallisation principle. When shares are redeemed on a date other than the date when the performance fee is paid out, and when a provision has been set aside for the performance fee, the provisioned performance fee amount payable on redeemed shares will be considered as accruing to the Manager and paid out at the end of the quarter concerned. In the case of subscriptions, the calculation of the performance fee is adjusted to prevent the subscription having an impact on the amount of provisions for performance fees. For such adjustments, the outperformance of the net asset value per share compared with the minimum rate of return up to the subscription date is not taken into account when calculating the performance fee. The provision set aside for the performance fee will be reduced by 10% of the Outperformance determined on the Valuation Day on which the subscriptions were deducted, multiplied by the number of shares subscribed.
The performance fee is payable quarterly, where applicable.
155 CONVENTUM
Notes to the financial statements (continued) as at 31st December 2020
For the Sub-Fund CONVENTUM - Createrra Multi Assets Index Fund, CREATERRA S.A. is entitled to receive, where applicable, a performance fee in relation to the class M as described below.
1. For each year during which the performance of the share class exceeds the annualised 3-month Euribor rate + 2% p.a. (the “Reference Rate”) expressed as a percentage (the “Outperformance”), a fee amounting to 10% of the Outperformance calculated on the net assets on the day prior to the deduction of the performance fee, is to be paid under the conditions determined in paragraph 3. The Outperformance is the (positive) difference between the (positive or negative) performance of the share class and the (positive or negative) performance of the Reference Rate over the year in question. A provision shall also be set aside for this performance fee on each Valuation Day. If the NAV per share decreases during the calculation period, the provisions set aside for the performance fee shall be reduced accordingly. If these provisions are reduced to zero, no performance fee will be charged.
2. The performance of the share class equates to the difference between the NAV per share at the end of the current year (“Final NAV”) and that at the end of the previous year (“Initial NAV”), expressed as a percentage (the “Performance”). For the first year that the performance fee is applied, the Initial NAV will be the initial subscription price of the share class at launch.
3. The performance fee is only payable when 1) the performance of the share class exceeds the performance of the Reference Rate over the year, and 2) the Final NAV per share for the year is greater than the highest historical annual Final NAV per share (“High Water Mark” principle). If the performance of the share class does not exceed the Reference Rate, no performance fee is applicable. If the performance exceeds the Reference Rate and the Final NAV per share for the year is lower than the historical annual Final NAV per share, no performance fee is applicable.
4. Investors are advised that the performance fee is subject to the crystallisation principle. When shares are redeemed on a date other than the date when the performance fee is paid out, and when a provision has been set aside for the performance fee, the provisioned performance fee amount payable on redeemed shares will be considered as accruing to the Manager and paid out at the end of the year concerned. In the case of subscriptions, the calculation of the performance fee is adjusted to prevent the subscription having an impact on the amount of provisions for performance fees. For such adjustments, the outperformance of the net asset value per share compared with the minimum rate of return up to the subscription date is not taken into account when calculating the performance fee. The provision set aside for the performance fee will be reduced by 10% of the Outperformance determined on the Valuation Day on which the subscriptions were deducted, multiplied by the number of shares subscribed.
The performance fee is payable annually, where applicable.
For the Sub-Fund CONVENTUM - Dynamic Opportunities, QUAESTOR VERMOGENSBEHEER N.V., Roeselare. is entitled to receive, where applicable, a performance fee for the classes D, M and N as described below :
1. For each financial year during which the performance of the Sub-Fund exceeds 6% (the “Hurdle Rate”), a fee amounting to 10% of the Outperformance achieved is to be paid under the conditions determined in paragraph 3.
2. The performance of the Sub-Fund equates to the difference between the NAV per share at the end of the current financial year (“Final NAV”) and that at the end of the previous financial year (“Initial NAV”), expressed as a percentage (the “Performance”).
3. The outperformance fee is only payable when (1) the annual increase in NAV exceeds 6%, and (2) the Final NAV per share is greater than the highest historical Final NAV on which a performance fee has been paid (“High Watermark” principle); in such cases, the outperformance fee is applied to the difference between the Final NAV per share and the highest of the Initial NAV + 6% or the High
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Notes to the financial statements (continued) as at 31st December 2020
Watermark, multiplied by the average number of shares outstanding during the financial year in question.
For the Sub-Fund CONVENTUM - Equity Opportunities, QUAESTOR VERMOGENSBEHEER N.V., Roeselare is entitled to receive, where applicable, a performance fee for the classes D and M as described below.
1. For each financial year during which the performance of the Sub-Fund exceeds 6% (the “Hurdle Rate”), a fee amounting to 10% of the Outperformance achieved is to be paid under the conditions determined in paragraph 3.
2. The performance of the Sub-Fund equates to the difference between the NAV per share at the end of the current financial year (“Final NAV”) and that at the end of the previous financial year (“Initial NAV”), expressed as a percentage (the “Performance”).
3. The outperformance fee is only payable when 1) the annual increase in NAV exceeds 6%, and 2) the Final NAV per share is greater than the highest historical Final NAV on which a performance fee has been paid (“High-Water Mark” principle); in such cases, the outperformance fee is applied to the difference between the Final NAV per share and the highest of the Initial NAV + 6% or the High-Water Mark, multiplied by the average number of shares outstanding during the financial year in question.
For the Sub-Fund CONVENTUM - Waterlily W Flexible Equity Fund, FUCHS & ASSOCIES FINANCE S.A. is entitled to receive, where applicable, a performance fee in relation to each of classes B and I as described below.
This methodology for calculating the performance fee has been applicable since 7th October 2019 by decision of the Board of Directors of the SICAV.
1. For each financial year during which the performance of the Sub-Fund exceeds the hurdle rate to be carried out on a pro rata temporis basis (the “Outperformance”), a fee amounting to 10% of the Outperformance realised is to be paid under the conditions determined in paragraph 4. A provision shall also be set aside for this performance fee on each Valuation Day. If the NAV per share decreases during the calculation period, the provisions set aside for the performance fee shall be reduced accordingly. If these provisions are reduced to zero, no performance fee will be charged.
2. The performance of the Sub-Fund equates for each share class in question to the difference between the NAV per share at the end of the current financial year (“Final NAV”) and that at the end of the previous year (“Initial NAV”), expressed as a percentage (the “Performance”). For the first year that this performance fee is applied, the Initial NAV will be the price per share of the share class at launch.
3. The hurdle rate is fixed, for each share class in question, at 3-month Euribor + 3% to be carried out on a pro rata temporis basis, if the Initial NAV per share is exceeded (NAV at the end of the previous year).
4. The Outperformance fee is only payable when 1) the Performance exceeds the hurdle rate calculated on a pro rata basis, and 2) the Final NAV per share is greater than the highest historical Final NAV per share (“High-Water Mark” principle); in such cases, the Outperformance fee is applied to the difference between the Final NAV per share and that of the high-water mark. In the event that performance exceeds the hurdle rate calculated on a pro rata temporis basis and the Final NAV per share is lower than the highest historical Final NAV per share, no Outperformance fee is applied. In the event that performance does not exceed the hurdle rate calculated on a pro rata temporis basis and the Final NAV per share is higher than the highest historical Final NAV per share, no Outperformance fee is applied. In the event that performance does not exceed the hurdle rate calculated on a pro rata temporis basis and the Final NAV per share is lower than the highest historical Final NAV per share, no Outperformance fee is applied.
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Notes to the financial statements (continued) as at 31st December 2020
5. Investors are advised that the performance fee is subject to the crystallisation principle. When shares are redeemed on a date other than the date when the performance fee is paid out, and when provision has been set aside for the performance fee, the provisioned performance fee amount payable on redeemed shares will be considered as accruing to the Manager and paid out at the end of the year concerned. In the case of subscriptions, the calculation of the performance fee is adjusted to prevent the subscription having an impact on the amount of provisions for performance fees. For such adjustments, the outperformance of the net asset value per share compared with the minimum rate of return up to the subscription date is not taken into account when calculating the performance fee. The provision set aside for the performance fee will be reduced by 10% of the Outperformance determined on the Valuation Day on which the subscriptions were deducted, multiplied by the number of shares subscribed.
The performance fee is accrued at the time of each NAV calculation and is payable in the month that follows the end of the financial year.
At the date of the financial statements, the performance fee was presented for the following Sub-Funds and amounted to:
CONVENTUM - Lyrical Fund USD 0.00 CONVENTUM - FensiFund EUR 13,469.77 CONVENTUM - Createrra Progress World Equities EUR 101,371.28 CONVENTUM - Createrra Multi Assets Index Fund EUR 768.06 CONVENTUM - Dynamic Opportunities EUR 167,900.32 CONVENTUM - Equity Opportunities EUR 379,690.41 CONVENTUM - Waterlily W Flexible Equity Fund EUR 2,004.42
For the other Sub-Funds, no performance fee is foreseen.
Note 6 - Capped expenses
All charges supported by the Sub-Fund CONVENTUM - Lyrical Fund (excluding management fee, performance fee, and transaction fee) are limited to 0.50% per year.
Any charges exceeding this limit (excluding management fee, performance fee, and transaction fee) will be deducted from the management fee paid to LYRICAL ASSET MANAGEMENT LP.
Note 7 - Depositary fee
The remuneration for account holding and custody services as well as the remuneration for depositary services are recorded in the item “Depositary fees” in the statement of operations and other changes in net assets.
Note 8 - Central administration costs
The item "Central administration costs" disclosed in the statement of operations and other changes in net assets is mainly composed of administrative agent and domiciliary fees.
Note 9 - Commission on shares issued, redeemed and converted
The payable amount per share corresponds to the Net Asset Value (NAV) by applying a possible subscription, redemption and conversion fee of: :
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Notes to the financial statements (continued) as at 31st December 2020
Conversion Subscription Redemption Sub-Funds fee per fee per share fee per share share CONVENTUM - Institutional Fund none none none CONVENTUM - MultiAssets 2%1 none none CONVENTUM - Lyrical Fund 5%1 none none CONVENTUM - Fortuna Royale 1 CONVENTUM - Fortuna Royale 2 5%1 none none CONVENTUM - Fortuna Royale 3 CONVENTUM - Echium 1%1 none none CONVENTUM - FensiFund 3%1 none none CONVENTUM - Mekks 5%1 none none CONVENTUM - Prime Selection 5%1 none none CONVENTUM - Createrra Progress World Equities none none none CONVENTUM - Createrra Multi Assets Index Fund none none none CONVENTUM - Dynamic Opportunities 3%2 1%3 1%4 CONVENTUM - Income Opportunities 3%2 1%3 1%4 CONVENTUM - Equity Opportunities 3%2 1%3 1%4 CONVENTUM - Waterlily W Flexible Equity Fund 1.5%1 none none CONVENTUM - Alluvium Global Fund none none none
1 maximum of the subscription amount in favour of entities and agents active in the sale and investment of shares. 2 maximum of the subscription amount paid in full or in part to the entities and agents active in the sale and investment of shares 3 maximum of the redemption amount paid to the entities and agents active in the sale and investment of shares and/or to the divested share class. 4 maximum of the converted amount paid to the entities and agents active in the sale and investment of shares and/or to the divested share class.
Note 10 - Subscription Duty ("Taxe d’abonnement")
The SICAV is subject to Luxembourg Law.
Pursuant to the legislation and regulations currently in force, the SICAV is subject to a subscription tax at an annual rate of 0.05% of its net assets, calculated and payable quarterly, on the basis of the net assets at the end of each quarter. A reduced rate of 0.01% is applicable for classes I, J, L, S and W reserved for institutional investors.
Pursuant to Article 175 (a) of the amended Law of 17th December 2010, the net assets invested in Undertakings for Collective Investment already subject to the subscription tax are exempt from this tax.
Note 11 - Belgian Subscription Tax
The Belgian regulation (the inheritance tax code, tome II bis) imposes to Undertakings for Collective Investment which were authorised to market their shares publicly in Belgium, the payment of an annual tax. This tax amounts to 0.0925% on the total of the net sums invested in Belgium at 31st December of the previous year, starting from their registration with the "Financial Services and Markets Authority” ("FSMA").
This tax will be paid no later than 31st March of each year.
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Notes to the financial statements (continued) as at 31st December 2020
Note 12 - Equalisation factor
It is normal practice, for the Funds in which the SICAV invests, to apply an "Equalisation factor", whereby the SICAV may be required to pay an amount in excess of the net asset value representing its part of the performance fee accrual within the net asset value. The "Equalisation factor" ensures that the performance fee is charged only to those shares which have increased in value and that all shareholders have the same amount per share at risk.
Note 13 - Changes in the composition of the securities portfolio
Changes that occurred in the composition of the securities portfolio during the period relating to the report are available on demand and free of charge from the registered office of the SICAV.
Note 14 - Forward foreign exchange contracts
As at 31st December 2020, the following Sub-Funds are committed in the following forward foreign exchange contracts with BANQUE DE LUXEMBOURG:
CONVENTUM - FensiFund Currency Purchases Currency Sales Maturity Unrealised result (in EUR)
EUR 380,609.37 GBP 350,000.00 15.06.2021 -9,325.36 -9,325.36
CONVENTUM - Createrra Progress World Equities Currency Purchases Currency Sales Maturity Unrealised result (in EUR)
EUR 7,734,203.91 USD 9,500,000.00 31.03.2021 26,840.47 26,840.47
CONVENTUM - Createrra Multi Assets Index Fund Currency Purchases Currency Sales Maturity Unrealised result (in EUR)
EUR 8,548,351.51 USD 10,500,000.00 31.03.2021 29,686.69 29,686.69
Note 15 - Futures contracts
As at 31st December 2020, the following Sub-Funds are committed in the following futures contracts:
CONVENTUM - Createrra Progress World Equities Number of Denomination Currency Exposure Unrealised contracts (in EUR) result (in EUR) Purchase 16 Euro Stoxx 50 EUR (Price) EUR 568,000.00 8,400.00 Index FUT 03/21 EUX Purchase 8 S&P 500 Index FUT 03/21 USD 1,210,974.27 22,891.52 CME 31,291.52
At the date of the financial statements, the above Sub-Funds have pledged assets, recorded in the items "Deposits on futures contracts", in favour of BANQUE DE LUXEMBOURG, acting as counterparty to the SICAV for futures.
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Notes to the financial statements (continued) as at 31st December 2020
Note 16 - Short Options
As at 31st December 2020, no Sub-Fund is committed in the short options contracts.
Note 17 - Evaluations
The CONVENTUM - Income Opportunities sub-fund held a position of 951,750 bonds from The Fruit Farm Group 2014 5.75% 31/12/20 (ISIN BE6274385374). On 5th August 2020, CONVENTUM ASSET MANAGEMENT (from 1st January 2021 BLI - BANQUE DE LUXEMBOURG INVESTMENTS operating under the commercial name CONVENTUM THIRD PARTY SOLUTIONS) was informed by the manager of the sub-fund that at the general meeting of bondholders held on 28th July 2020, a restructuring plan had been proposed for the vote by the directors of “The Fruit Farm Group”. The Antwerp Business Court ruled that the restructuring plan could not be approved if the bondholders did not accept the terms of this plan. The court also found that the restructuring plan violated other rights of other creditors of “The Fruit Farm Group”.
As a result, the court rejected the restructuring plan proposed by the directors of The Fruit Farm Group, thus ending said legal reorganisation proceedings.
On 13th August 2021, out of caution and on the basis of information at its disposal, the Board of Directors of the SICAV decided to fully amortise the bonds and appraise them at 0 from the NAV dated 12th August 2020.
The CONVENTUM - Income Opportunities sub-fund held a position of 500,000 subordinated bonds of the FNG Group NV 7.45% Sub 15/01 (ISIN BE6276993266), which represented 0.02% of the sub-fund's net assets at the NAV date of 29/07/2020. The CONVENTUM - Dynamic Opportunities sub-fund held a position of 1,250,000 of these same bonds, which represented 0.06% of the sub-fund's net assets at the NAV date of 29/07/2020. On 30th July 2020, FNG announced that FNG International Holding and the majority of its operating subsidiaries in Belgium, in court-ordered receivership proceedings, decided to file for bankruptcy. Based on up-to-date information and opinions received from CONVENTUM ASSET MANAGEMENT (from 1st January 2021 BLI - BANQUE DE LUXEMBOURG INVESTMENTS operating under the commercial name CONVENTUM THIRD PARTY SOLUTIONS) and indirectly from the manager, the Board of Directors of the SICAV decided to value the bonds at 0% with effect from 30th July 2020.
Note 18 - Events
Cash accounts of liquidated sub-funds
As at 31st December 2020 and 30th June 2020, the bank account held with BANQUE DE Luxembourg by the Sub-Funds liquidated in 2018 below, showed a positive balance :
CONVENTUM - SAFETY CHF (liquidated on 30th November 2018) CHF 5,898.17 CONVENTUM - PROCLERO (liquidated on 14th December 2018) EUR 3,702.15
Comments regarding the impacts of COVID-19
The Board wishes to emphasize that the COVID-19 pandemic has not yet been overcome and still represents a significant challenge for our societies and economies and, consequently, for the environment in which our SICAV operates.
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Notes to the financial statements (continued) as at 31st December 2020
The Board will continue to monitor the evolution of the COVID-19 pandemic and the measures taken by government authorities in this regard and, in consultation and coordination with the SICAV's main service providers, will assess their impact on the SICAV's net assets, activities and organization.
Note 18 - Subsequent Events
With effect on 1st January 2021, CONVENTUM ASSET MANAGEMENT, management company of the SICAV, and its sister company BLI - BANQUE DE LUXEMBOURG INVESTMENTS have merged. CONVENTUM ASSET MANAGEMENT has been absorbed by BLI - BANQUE DE LUXEMBOURG INVESTMENTS.
Since that date: - BLI - BANQUE DE LUXEMBOURG INVESTMENTS acting under its brand name CONVENTUM TPS or CONVENTUM THIRD PARTY SOLUTIONS acts as management company and domiciliation agent of the SICAV; - the registered office of the SICAV is established at 16, Boulevard Royal L-2449 LUXEMBOURG.
BLI - BANQUE DE LUXEMBOURG INVESTMENTS was incorporated in Luxembourg on 25th January 2001 in the form of a public limited company (société anonyme) and is registered with the Luxembourg trade and company register under number B 80 479. BLI - BANQUE DE LUXEMBOURG INVESTMENTS, with registered office at 16, Boulevard Royal L-2449 LUXEMBOURG, is subject to the provisions of Chapter 15 of the amended law of 17th December 2010.
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Additional information (unaudited) as at 31st December 2020
1 - Risk management
As required by Circular CSSF 11/512 as amended, the Board of Directors of the SICAV needs to determine the global risk exposure of the SICAV by applying either the commitment approach or the VaR (“Value at Risk”) approach.
In terms of risk management, the Board of Directors of the SICAV decided to adopt the commitment approach as a method of determining the global exposure.
2 - Remuneration
CONVENTUM ASSET MANAGEMENT (since 1st January 2021 BLI - BANQUE DE LUXEMBOURG INVESTMENTS acting under its brand name CONVENTUM THIRD PARTY SOLUTIONS) has been appointed Management Company of CONVENTUM.
The Management Company has partially delegated the investment management to several Investment Managers : BLI - BANQUE DE LUXEMBOURG INVESTMENTS (formerly BLI - BANQUE DE LUXEMBOURG INVESTMENTS S.A.), LYRICAL ASSET MANAGEMENT LP, SHELTER INVESTMENT MANAGEMENT, ALLUVIUM ASSET MANAGEMENT PTY LTD, LAZARD FRERES GESTION, FUCHS & ASSOCIES FINANCE S.A., ARCHE WEALTH MANAGEMENT, CREATERRA S.A. and QUAESTOR VERMOGENSBEHEER N.V. (the "Investment Managers").
The Management Company ensures that its delegate Investment Managers are subject to regulatory requirements on remuneration disclosure for their staff that are equally as effective as those applicable to the Management Company and/or that appropriate arrangements are in place.
The Management Company further informs that it did not pay any remuneration to the staff of its delegate Investment Managers.
The Management Company has further implemented a remuneration policy, which aligns with the principles of internal corporate governance, based on its size and organization as well as the nature, scope and complexity of its activities.
The annual remuneration of the conducting officers and employees of the Management Company is independent of both the evolution of its mandates under management and any related performance criteria.
Annual remuneration comprises a contractual fixed amount and a variable component. The ratio of the fixed amount to the variable component is significantly weighted in favour of the fixed amount.
During the financial year 2020, a total remuneration of EUR 1.472 mio has been paid to an average of 17 employees with a variable component weighted 14.24%.
The remuneration policy of the Management Company is reviewed each year and its implementation is assessed annually by an independent body.
The details of the remuneration policy of the Management Company are available on the internet site www.conventumtps.lu and a hard copy can be made available free of charge on request.
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Additional information (unaudited) (continued) as at 31st December 2020
3 - Information concerning the transparency of securities financing transactions and of reuse of cash collateral (regulation EU 2015/2365, hereafter "SFTR")
During the reporting period, the SICAV did not engage in transactions which are subject to the publication requirements of SFTR. Accordingly, no information concerning the transparency of securities financing transactions and of reuse of cash collateral should be reported.
164