MAGNA UMBRELLA FUND plc (An open-ended variable capital umbrella investment company with limited liability and segregated liability between Funds incorporated under the laws of Ireland with registered number 277318 and authorised as an undertaking for collective investment in transferable securities pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011)
Unaudited Interim Report For the period 1 January 2016 to 30 June 2016 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Fund and Classes of Shares* ISIN:
Magna Eastern European Fund C Class Shares IE0032812996 Magna Eastern European Fund R Class Shares IE00B3Q7LD52 Magna Global Emerging Markets Fund C Class Shares IE0033224555 Magna Global Emerging Markets Fund G Class Shares IE00BFTW8T66 Magna Global Emerging Markets Fund R Class Shares IE00B3RZ9J04 Magna Latin American Fund A Class Shares IE00B04R3C99 Magna Latin American Fund C Class Shares IE00B04R3D07 Magna Latin American Fund G Class Shares IE00BFTW8W95 Magna Latin American Fund R Class Shares IE00B3QHJ640 Magna Africa Fund A Class Shares IE00B0TB5201 Magna Africa Fund C Class Shares IE00B0TB5318 Magna Africa Fund G Class Shares IE00BFTW8X03 Magna Africa Fund R Class Shares IE00B3Q79R51 Magna MENA Fund G Class Shares IE00BFTW8Y10 Magna MENA Fund N Class Shares IE00B3QPMN62 Magna MENA Fund R Class Shares IE00B3NMJY03 Magna Emerging Markets Dividend Fund B Acc Class Shares IE00B8260R81 Magna Emerging Markets Dividend Fund B Dist Class Shares IE00B8QB4001 Magna Emerging Markets Dividend Fund I Class Shares IE00BGLCY261 Magna Emerging Markets Dividend Fund N Acc Class Shares IE00B3MQTC12 Magna Emerging Markets Dividend Fund N Dist Class Shares IE00B3PFZ055 Magna Emerging Markets Dividend Fund R Acc Class Shares IE00B670Y570 Magna Emerging Markets Dividend Fund R Dist Class Shares IE00B671B485 Magna New Frontiers Fund D Dist Class Shares IE00BNCB5M86 Magna New Frontiers Fund G Class Shares IE00BFTW8Z27 Magna New Frontiers Fund N Class Shares IE00B65LCL41 Magna New Frontiers Fund R Class Shares IE00B68FF474 Magna Biopharma Income Fund B Acc Class Shares IE00B8BFJQ84 Magna Biopharma Income Fund B Dist Class Shares IE00B8HQFS95 Magna Biopharma Income Fund C Acc Class Shares IE00BXQ9DQ85 Magna Biopharma Income Fund R Acc Class Shares IE00B7QK5G30 Magna Biopharma Income Fund R Dist Class Shares IE00B8XZDC03 * Active Classes of Shares as at 30 June 2016. Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Contents
Page Management and Administration 2 Reports of the Investment Manager 4 Financial Statements of the Company: Statement of Financial Position 12 Statement of Comprehensive Income 16 Statement of Changes in Net Assets attributable to Holders of Redeemable Participating Shares 20 Statement of Cash Flows 22 Notes to the Financial Statements 26 Schedules of Investments Magna Eastern European Fund 42 Magna Global Emerging Markets Fund 44 Magna Latin American Fund 46 Magna Africa Fund 48 Magna MENA Fund 50 Magna Emerging Markets Dividend Fund 52 Magna New Frontiers Fund 54 Magna Biopharma Income Fund 57 Supplementary Information 58 Portfolio Movements Magna Eastern European Fund 59 Magna Global Emerging Markets Fund 61 Magna Latin American Fund 63 Magna Africa Fund 65 Magna MENA Fund 67 Magna Undervalued Assets Fund 69 Magna Emerging Markets Dividend Fund 70 Magna New Frontiers Fund 72 Magna Biopharma Income Fund 74
Additional Information for Swiss Shareholders The prospectus, KIID, articles of association, annual report and semi-annual report, and the list of the largest purchases and sales are available on request from the office of the Swiss representative and the paying agent in Switzerland, free of charge. All information available in Ireland is also available at the representative and paying agent in Switzerland.
Additional Information for German Shareholders A copy of the prospectus and KIID as well as detailed portfolio information is available on request, free of charge, at the German paying and information agent. All information available in Ireland is also available at the German paying agent and information agent.
1 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Management and Administration
Directors Company Secretary Mr Steven Bates (British) * Tudor Trust Limited Mr Jonathan Bradley (British) 33 Sir John Rogerson’s Quay Mr Fergus Sheridan (Irish) * Dublin 2 Mr David Shubotham (Irish) * Ireland Mr Anderson Whamond (British) * Independent Directors. All Directors are non-executive.
Investment Manager Investment Adviser and Share Distributor Charlemagne Capital (IOM) Limited Charlemagne Capital (UK) Limited St. Mary’s Court, 20 Hill Street 39 St. James’s Street Douglas London SW1A 1JD Isle of Man IM1 1EU United Kingdom British Isles
Administrator and Registrar Custodian (until 17 March 2016) and BNY Mellon Fund Services (Ireland) Designated Depositary (from 18 March 2016) Activity Company ** BNY Mellon Trust Company (Ireland) Limited Riverside Two Guild House Sir John Rogerson’s Quay Guild Street Grand Canal Dock IFSC Dublin 2 Dublin 1 Ireland Ireland ** BNY Mellon Investment Servicing (International) Limited merged with BNY Mellon Fund Services (Ireland) Designated Activity Company on 1 July 2016.
Auditor Paying and Information Agent – Austria KPMG Raiffeisen Bank International AG Chartered Accountants Am Stadtpark 9 1 Harbourmaster Place, IFSC A-1030 Vienna Dublin 1 Austria Ireland
Paying and Information Agent – Germany Representative – Switzerland Marcard Stein and Co. AG Carnegie Fund Services SA Ballindamm 36 11, rue du Général-Dufour 20095 Hamburg 1204 Geneva Germany Switzerland
Paying Agent – Luxembourg Representative – France Banque de Luxembourg AB Société Générale Securities Services Société Anonyme 52-56 rue de la Victoire 14 Boulevard Royal 75009 Paris L-2449 Luxembourg France
Paying Agent – Switzerland Representative – Spain Banque Cantonale de Genève Allfunds Bank, S.A. 17, quai de l’lle Estafeta, 6 1204 Geneva La Moraleja Switzerland Complejo Plaza de la Fuente Alcobendas 28109 Madrid Spain
Paying Agent – Sweden Tax Representative – Austria Skandinviska Enskilda Banken AB (publ) KPMG Alpen-Treuhand GmbH Custody Services Wirtschaftsprufungs-und Steuerberatungs Gellschaft SEB Merchant Banking Porzellangasse 51 Sergels Torg 2 A-1090 Vienna SE- 106 40 Stockholm Austria Sweden
Tax Representative – Germany KPMG Deutsche Treuhand Gesellschaft Aktiengesellschaft Marie Curie Strasse 30 60439 Frankfurt am Main Germany
2 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Management and Administration continued
Sponsoring Broker Irish Regulatory Management J & E Davy Bridge Consulting Davy House 33 Sir John Rogerson’s Quay 49 Dawson Street Dublin 2 Dublin 2 Ireland Ireland
Financial Agent – Belgium Registered Office of the Company CACEIS Belgium SA Riverside Two Avenue du Port 86 C b320 Sir John Rogerson’s Quay B - 1000 Brussels Grand Canal Dock Belgium Dublin 2 Ireland
Legal Advisers to the Company Legal Advisers to the Company In Germany In Ireland White & Case Dillon Eustace Bockenheimer Landstraße 20 33 Sir John Rogerson’s Quay 60323 Frankfurt am Main Dublin 2 Germany Ireland
In The Netherlands In Luxembourg De Brauw Blackstone Westbroek Elvinger Hoss & Prussen The Rock 2, Place Winston Churchill Claude Debussylaan 80 B.P. 425 1082 MD Amsterdam L-2014 Luxembourg The Netherlands
In United States (with respect to U.S. Legal Issues) In Denmark Dechart LLP Kroman Reumert 160 Queen Victoria Street Sund Krogsgade 5 London EC4V 4QQ 2100 Copenhagen United Kingdom Denmark
In France In Singapore Latham & Watkins LLP Drew & Napier LLC 53, quai d’Orsay 10 Collyer Quay 75007 Paris No 10-01 Ocean Financial Centre France Singapore 049315
In England In Italy Stephenson Harwood LLP Galante e Associati Studio Legale 1 Finsbury Circus Via del Consolato, 6 London EC2M 7SH I-00186 Roma United Kingdom Italy
In Finland In Sweden Merilampi Attorneys Ltd. Advokatfirman Vinge KB Lönnrotinkatu 5 Stallgatan 4 FI-00120 Helsinki Box 1064, SE-251 20 Finland Helsingborg, Sweden
In Austria In Switzerland Freshfields Bruckhaus Deringer LLP Carnegie Fund Services SA Seilergasse 16 11 rue du Général-Dufour 1010 Wien 1204 Geneva Austria Switzerland
3 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Report of the Investment Manager
Magna Eastern European Fund Reporting Period: 1 January 2016 to 30 June 2016 Reporting Currency: EUR Fund Return C Class Shares: 7.1% 120 Magna Eastern European Fund As at 30 June 2016
110 Top 10 Holdings Fund Weight LUKOIL 9.8% 100 TATNEFT 7.6% Garanti Bank 5.7% Sberbank 5.0% 90 X5 Retail Group 4.9% Moscow Exchange 4.2% 80 Magnit 3.7% TSKB 3.5% PhosAgro 3.4% 70 Norilsk Nickel 3.0% 31 Dec 31 Jan 29 Feb 31 Mar 30 Apr 31 May 30 Jun 2015 2016 2016 2016 2016 2016 2016
Chart rebased to 31 Dec 2015 = 100 Source: Charlemagne
Emerging European stockmarkets benefited from positive gains after a weak start to 2016, supported by stable commodity prices, a continued improvement in sentiment towards the Russian market as well as a weaker US dollar. Russia was the star performer, followed by Turkey. Volatility came to the fore introduced by the UK’s Brexit referendum at the end of June 2016. As the newsflow bounces around the Brexit topic over the coming months we can expect some increased volatility but overall it seems fair now to suggest that the risk premiums attached to investing in most emerging markets need to be reassessed by investors. The argument that emerging market investing exposes investors to much higher political risk and market volatility appears less and less solid in the face of what is happening in Europe and potentially in the US if a Trump presidency becomes a more realistic option. The Magna Eastern European Fund (the “Fund”) underperformed its MSCI EM Europe 10/40 Index benchmark by 0.4% over the period under review. The Fund’s holdings in Russia were largely responsible. Short sharp rallies tend to benefit index tracking funds more than actively managed portfolios that focus on quality. Many of the larger index companies in Eastern Europe tend to be lower quality names not in the portfolio. However once markets steady themselves, quality does tend to outperform again and indeed more than make up for the shorter-term lag in performance. We made a number of changes to the portfolio during the period under review, exiting our position in Russian mobile operator MTS where we no longer see any upside to fair value and entering a new position in Turkish conglomerate Koc Holding, which is trading near a historic high discount to NAV. We feel this is unjustified as its NAV is very transparent, with most of its assets listed, and most of the underlying assets are generating a solid operating performance. In addition we added MONETA Money Bank in the Czech Republic, to the portfolio. This was an IPO by GE Capital (“GE”) of its Czech retail banking business and whilst we are generally not enthusiastic when it comes to participating in IPOs we felt that the valuation made this deal very attractive. In particular GE intends to sell its remaining 41% stake within the coming year or so meaning that a strong post IPO performance of the stock is important to the parent group in order to prepare the ground for a final exit.
Charlemagne Capital (IOM) Limited 15 July 2016
4 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Report of the Investment Manager continued
Magna Global Emerging Markets Fund Reporting Period: 1 January 2016 to 30 June 2016 Reporting Currency: EUR Fund Return C Class Shares: 0.8% 120 Magna Global Emerging Markets Fund As at 30 June 2016
110 Top 10 Holdings Fund Weight TSMC 6.8% 100 HDFC Bank 5.2% NMC Healthcare 4.1% Alibaba 4.1% 90 Tencent 4.0% Naspers 4.0% 80 LG Household & Health Care 3.8% AIA 3.6% Matahari 3.5% 70 Lojas Renner 3.5% 31 Dec 31 Jan 29 Feb 31 Mar 30 Apr 31 May 30 Jun 2015 2016 2016 2016 2016 2016 2016
Chart rebased to 31 Dec 2015 = 100 Source: Charlemagne
After a volatile start to the year, emerging markets rose through to the end of the first half of 2016. The rally was led by Latin America, with the Brazilian market rising almost 50% from its January 2016 low, with emerging European markets also strong. Asia was a laggard, with both China and India losing value. However, the end of June 2016 was dominated by the shock result from the UK’s EU referendum. This led to a sharp initial fall in equity markets. The main loser was Sterling, which reached a 30-year low. By contrast, commodities gained, led by gold and oil. Emerging markets also rose. Part of this is based on the view that the UK poll eliminated any residual fears of a near-term rise in US interest rates. Over the longer term, with an increased likelihood of non-mainstream players assuming positions of power in western societies, the wider implications should shift significantly the perception and therefore the pricing of risk in emerging relative to developed markets. The Magna Global Emerging Markets Fund underperformed underlying markets by 3.3% over the period under review. An overweight exposure to the underperforming Indian market, as well as stock selection across Asia more widely, were largely responsible. The Brazilian holdings in the portfolio had a positive effect on relative performance however. In Brazil, two consumer firms that have consistently surpassed analysts’ expectations, clothing retailer Lojas Renner and pharmacy store chain RaiaDrogasil, performed very well. The new interim president has brought increased economic stability, the currency has rallied, business confidence has already started to rise while consumer confidence seems to have bottomed. On the other hand a significant loser during this period was 3SBio, a Chinese biotech firm. 3SBio withdrew one of its pipeline products, an anti-cancer drug called Ipterbin. Whilst this affected sentiment, analysts did not include this in their models and the impact on the company’s outlook is negligible. We consider the shares oversold at these levels. Another stronger performer was TAL, the Chinese education business. They are continuing to raise prices, student retention rates are good and revenue growth in excess of 40% seems likely for this year. Prospects for long term growth are good as they capture share in a fragmented market due to their superior offering and growing brand premium.
Charlemagne Capital (IOM) Limited 15 July 2016
5 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Report of the Investment Manager continued
Magna Latin American Fund Reporting Period: 1 January 2016 to 30 June 2016 Reporting Currency: EUR Fund Return C Class Shares: 16.9% 120 Magna Latin American Fund As at 30 June 2016
110 Top 10 Holdings Fund Weight Itau Unibanco 9.9% 100 AmBev 6.4% Banorte 4.6% Bradesco 4.4% 90 FEMSA 4.3% BB Seguridade 4.0% 80 Credicorp 3.8% Ultrapar 3.4% Kroton 3.2% 70 Falabella 3.0% 31 Dec 31 Jan 29 Feb 31 Mar 30 Apr 31 May 30 Jun 2015 2016 2016 2016 2016 2016 2016
Chart rebased to 31 Dec 2015 = 100 Source: Charlemagne
Latin American equities outperformed both emerging and developed markets in the first half of 2016, after dovish policy comments from developed markets post Brexit, and continued supportive news from within the region. Regional currencies appreciated, led by Brazil where the central bank reiterated its commitment to reduce inflation, which was perceived as a sign that rate cuts may be delayed. In Mexico, the central bank finally stepped in with a 0.5% rate hike to defend the peso. The Magna Latin American Fund underperformed its MSCI EM Latin America 10/40 Index benchmark by 5.8% over the period under review, though still gaining significant value. This underperformance was largely due to an overweight exposure to Mexico. The decision to have no exposure to the Mexican telecommunications heavyweight American Movil supported relative performance. At the stock level there were interesting merger and acquisition moves from some of our holdings. In the Brazilian education sector, Kroton made an offer for rival Estacio in what seems like a sensible move given the valuation discount and their recent success in extracting synergies from the Anhanguera merger. Ultimately we want to be positioned to benefit from substantial synergies and so remain with Kroton. In Mexico we made some changes to our small cap positions without impacting overall exposure to the country. We sold out of GICSA, a commercial property developer, and shifted some of the proceeds into Vesta, an industrial warehouse developer and owner in the north of the country which carries lower execution risk. We also sold specialist chemicals group CYDSA as it appears the potential upside from underground gas storage caverns is now further into the future than anticipated. A team trip to Mexico revealed that most companies there are still seeing decent levels of activity and demonstrating some pricing power in passing on the effects of a weaker currency. The bottom-up case for our holdings seems to be intact but nonetheless, the exciting changes seen in Brazil recently have caused the Mexican market to lag, and this has negatively impacted relative Fund performance.
Charlemagne Capital (IOM) Limited 15 July 2016
6 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Report of the Investment Manager continued
Magna Africa Fund Reporting Period: 1 January 2016 to 30 June 2016 Reporting Currency: EUR Fund Return C Class Shares: 0.6% 120 Magna Africa Fund As at 30 June 2016 110 Top 10 Holdings Fund Weight Naspers 9.9% 100 CIB 8.5% Centamin 3.9% Integrated Diagnostics Holdings 3.9% 90 Edita 3.7% The Foschini Group 3.3% 80 Guaranty Trust Bank 3.1% East African Breweries 3.1% FirstRand 2.8% 70 Holdsport 2.7% 31 Dec 31 Jan 29 Feb 31 Mar 30 Apr 31 May 30 Jun 2015 2016 2016 2016 2016 2016 2016
Chart rebased to 31 Dec 2015 = 100 Source: Charlemagne
Most African markets ended the first half of 2016 in positive territory, with apparent strength of South Africa countered by weakness in Egypt and, especially Nigeria. The big news in Africa was the devaluation of the Nigerian naira, from 199 to 280 to the US dollar. Investors had long awaited the devaluation, yet the FX market is still not operating freely. Although the central bank presented the devaluation as a move to a truly flexible exchange rate regime, it is still intervening directly and indirectly in the market and thereby preventing an equilibrium from being reached. In Egypt, the central bank surprised the markets with a devaluation of the pound whilst at the same time adopting a “more flexible exchange rate” policy. The move to a more realistic exchange rate is a positive development, but there remains a significant backlog of hard currency waiting to come out of Egypt, and the foreign exchange markets is still not functioning as it should. The Magna Africa Fund (the “Fund”) underperformed the MSCI EFM Africa (50% South Africa) Index by 0.9% over the period under review. A marked underweight exposure to Nigeria added relative value, whilst holdings in the South African Materials sector detracted from performance. Volatility came to the fore in June 2016, as Britain’s shock EU referendum result triggered a slump in Sterling, collapsing European bank share prices, and a huge amount of uncertainty as to both Britain’s role in the world, and the future of the European Union. In this environment gold proved a relative safe haven, with Egyptian gold miner Centamin up over the period under review. The Fund added to its holding in Centamin on the day of the referendum result, securing a 12% gain through to June 2016 end. Whilst the 30% devaluation of the naira hurt performance, the pain was contained, and the Fund’s position in Nigerian GT Bank gained 63% in local currency, mitigating the loss. The Kenyan banking sector suffered from a number of failures occurred in the last six months. The Fund had an overweight position in Kenyan banks, with shares in Equity Group and Co-op Bank. Ongoing volatility seems likely during the summer months, but we continue to believe our portfolio is well balanced, and the bottom-up process should continue to drive outperformance over time.
Charlemagne Capital (IOM) Limited 15 July 2016
7 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Report of the Investment Manager continued
Magna MENA Fund Reporting Period: 1 January 2016 to 30 June 2016 Reporting Currency: EUR Fund Return N Class Shares: 5.0% 120 Magna MENA Fund As at 30 June 2016
110 Top 10 Holdings Fund Weight NMC Healthcare 10.8% Bupa Arabia 9.7% 100 Tawuniya 9.3% Dubai Parks and Resorts 7.5% 90 Aramex 4.8% SADAFCO 4.5% Middle East Healthcare Company 4.1% 80 Agthia 4.0% Mezzan 3.8% 70 Al Meera 3.8% 31 Dec 31 Jan 29 Feb 31 Mar 30 Apr 31 May 30 Jun 2015 2016 2016 2016 2016 2016 2016
Chart rebased to 31 Dec 2015 = 100 Source: Charlemagne
The stockmarkets of the MENA region were generally weak in the first half of 2016, lagging emerging markets despite the continuing recovery in the oil price which saw Brent crude rise to around USD 50 per barrel. Saudi Arabia was weak, in the absence of any notable newsflow, with only the United Arab Emirates and Morocco making gains. Stockmarket trading was much reduced as a result of the Ramadan holiday. Gulf markets were marginal outperformers, with share prices across North Africa tending to lag. The strongest gains were seen in the United Arab Emirates with Abu Dhabi boosted by a surge in financial stocks on the last day of June 2016. Credit rating agency Moody’s decision to cut the long-term debt rating of several Gulf oil producers, including Saudi Arabia, also left share prices largely untouched. The Magna MENA Fund (the “Fund”) returned an outperformance of 8.3% with respect to its S&P Pan Arab Composite Index benchmark. Strong stock selection across a number of countries and sectors were largely responsible, with exposures to United Arab Emirates, Saudi Arabia and Egypt being the top contributors to relative performance. The strong performance of the Fund owed much of its exposure to the Healthcare sector, particularly in the UAE and Saudi Arabia. NMC Healthcare, the Abu Dhabi-based private hospitals group, again added significant value with an ongoing strong operational performance supporting a share price that also gained from its listing in London, where overseas non-sterling earners were favoured in the wake of the result of the UK’s referendum on EU membership. Bupa Arabia, the Saudi health insurance group, also made further gains. Also in Saudi Arabia, the general insurer Tawuniya continued to garner support with its share price continuing the strong upward trend in place since the beginning of the year. On the downside, Saudi fashion retailer Fawaz Alhokair saw its share price fall after disappointing results that included a 14% fall in net profit over the year to end of June 2016, with its international operations a drag on the back of adverse currency movements and restructuring costs. In its home market, the company grew sales by 7% and with gross margins expanding, net income was up close to 20%, suggesting that barring exceptional items Alhokair continues to deliver attractive returns for its shareholders.
Charlemagne Capital (IOM) Limited 15 July 2016
8 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Report of the Investment Manager continued
Magna Emerging Markets Dividend Fund Reporting Period: 1 January 2016 to 30 June 2016 Reporting Currency: EUR Fund Return N Class Shares: 5.6% 120 Magna Emerging Markets Dividend Fund As at 30 June 2016 110 Top 10 Holdings Fund Weight TSMC 9.1% 100 China Construction Bank 6.5% POWERGRID 5.7% Samsung Electronics 5.0% 90 Astro 3.8% Fibra UNO 3.4% 80 Moscow Exchange 3.3% China Pacific Insurance Group 3.2% CTCI 2.8% 70 St Shine Optical 2.5% 31 Dec 31 Jan 29 Feb 31 Mar 30 Apr 31 May 30 Jun 2015 2016 2016 2016 2016 2016 2016
Chart rebased to 31 Dec 2015 = 100 Source: Charlemagne
Emerging markets ended the first part of 2016 on a strong note, continuing a risk rally that started in February 2016. Commodity prices gained as the US dollar sold off. The rally was broad based with, for example, Russia (which exports commodities) and Turkey (which imports them) both gaining. Latin American markets bounced back strongly from earlier weakness whilst Asian markets were relative underperformers. The end of June 2016 however, was dominated by the shock result from the UK’s EU referendum. This led to a sharp initial fall in equity markets. The main loser was sterling, which reached a 30-year low. By contrast, commodities gained, led by gold and oil. Emerging markets also rose. Part of this is based on the view that the UK poll eliminated any residual fears of a near-term rise in US interest rates. Over the longer term, with an increased likelihood of non-mainstream players assuming positions of power in western societies, the wider implications should shift significantly the perception and therefore the pricing of risk in emerging relative to developed markets. The Magna Emerging Markets Dividend Fund outperformed the MSCI Emerging Markets Index by 1.5% during the period under review supported by an underweight exposure to the weaker Chinese market as well as stock selection across Asia. Performance was however held back by the portfolio’s exposure to South Africa and Turkey. Brazil provided some of the highlights during the period under review. Smiles, the air miles company, and BM&FBOVESPA the stock exchange operator, both gained. Smiles is a beneficiary of the improvement in consumer sentiment, given the leverage to economic growth embedded in the airline industry. In addition, the Lower House approved allowing foreign investors to own 100% of airlines in the country. The exchange benefits from the overall improvement in confidence as investment volumes should recover. On the other hand, shares in TAV Airports, the operator of Istanbul’s Ataturk airport and a number of others around the region, fell sharply following the killing of 45 people by a terrorist bomb at the airport. This tragedy is seen as further affecting tourist sentiment. During the period, we made an extensive site visit to the new airport. It is clear to us that this will not open on time and that TAV’s concession at Ataturk may well run its full course. Furthermore, moves by Turkey and Russia to improve relationships should help boost travel.
Charlemagne Capital (IOM) Limited 15 July 2016
9 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Report of the Investment Manager continued
Magna New Frontiers Fund Reporting Period: 1 January 2016 to 30 June 2016 Reporting Currency: EUR Fund Return N Class Shares: 11.0%
120 Magna New Frontiers Fund As at 30 June 2016
110 Top 10 Holdings Fund Weight NMC Healthcare 5.6% Vinamilk 5.5% 100 VEIL 5.0% Romgaz 4.9% 90 Bank of Georgia 4.0% Emirates NBD 3.8% Aramex 3.6% 80 HBL 3.2% Banca Transilvania 3.2% 70 Georgia Healthcare Group 3.0% 31 Dec 31 Jan 29 Feb 31 Mar 30 Apr 31 May 30 Jun 2015 2016 2016 2016 2016 2016 2016
Chart rebased to 31 Dec 2015 = 100 Source: Charlemagne
The Magna New Frontiers Fund (the “Fund”) outperformed its MSCI Frontiers Market Index benchmark by 13.6% over the first half of 2016, with frontier markets themselves failing to participate in the rally that saw emerging markets score strong gains. The strong relative performance of the Fund was entirely the result of its stock selection across a diverse range of markets, particularly Vietnam and the United Arab Emirates. An absence of any exposure to the underperforming Nigerian market also added significant relative value. In the Fund, NMC Healthcare, the UAE-based hospitals operator, continues to be one of the stand-out performers in the portfolio as strong organic growth, high quality management execution and significantly accretive acquisitions continue to drive the stock. The share price has however yet to catch up with the pace of earnings upgrades (both actual and forecast) and the stock still trades at a significant discount to its emerging market peers. Another top contributor to relative performance was Georgia Healthcare, a spin-off from Bank of Georgia, has taken a while to convince investors of its capability to operate as a separate entity. Recent results though have been very strong with first quarter revenues growing by 40% year-on-year and with a P/E ratio of only 12 for 2017, the stock is trading at a huge discount to its peer group. The only significant negative contributor to performance during the period under review arose from a technical situation in Argentina. Stocks here were negatively impacted by rumours that the government social insurance agency, one of the largest investors in the market, could divest some of its holdings. Whilst ultimately good news for the economy, in the short-term this could create a stock overhang. Whilst the Frontier Index continues to tread water, our bottom-up stock picking in markets where political and economic reform are generating very high levels of economic growth is continuing to find exciting opportunities in which to invest.
Charlemagne Capital (IOM) Limited 15 July 2016
10 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Report of the Investment Manager continued
Magna Biopharma Income Fund Reporting Period: 1 January 2016 to 30 June 2016 Reporting Currency: EUR Fund Return B Class Shares: -12.2%
120 Magna Biopharma Income Fund As at 30 June 2016
110 Top 10 Holdings Fund Weight Pfizer 8.6% Roche 7.3% 100 DexCom 6.4% Abiomed 6.3% 90 Gilead 6.0% Medivation 4.5% Edwards Lifesciences 4.5% 80 Bristol-Myers Squibb 4.2% Express Scripts 4.0% 70 Thermo Fisher Scientific 3.9% 31 Dec 31 Jan 29 Feb 31 Mar 30 Apr 31 May 30 Jun 2015 2016 2016 2016 2016 2016 2016
Chart rebased to 31 Dec 2015 = 100 Source: Charlemagne
The Magna Biopharma Income Fund (the “Fund”) underperformed its MSCI World Health Care Index benchmark by 8.5% over the period under review, with its US stock selection primarily responsible. As market shocks go, the vote to leave the EU by the UK electorate at June end is up there with the failure of Lehman’s and the bursting of the TMT bubble. In consequence, the FTSE 100 fell while the S&P 500 rose; largely due to the US index’s lower exposure to sterling, the euro, and markets within the current EU area. The biggest detriment to performance during the period was not holding the world’s biggest life science company, Johnson & Johnson (“J&J”), which would be expected to outperform in a market shock as investors sought some security in the biggest assets. Similarly in the UK, we have not been attracted to GlaxoSmithKline (“GSK”) or AstraZeneca for nearly two years because their healthy yield does not outweigh their declining sales. However from the morning the Brexit vote was announced, the share prices of both companies, like J&J, caught a defensive bid irrespective of their fundamentals. On the positive side, while the UK investors’ flight to GSK and AstraZeneca was more of a knee-jerk response to concerns surrounding the UK economy and currency, in previous market shocks, healthcare has been the first sector to recover and we should expect the defensive characteristics of all our portfolio holdings to be recognised if Brexit develops into recession. Also on the positive side, a key contributor to Fund performance included Medivation, which is in discussions to be acquired, and the bidding continues to rumble towards an exit with multiple bidders apparently involved. In addition, good companies with growth fundamentals will win out in the end as the two biggest positive contributors to the Fund’s performance, DexCom and Abiomed, demonstrated.
Charlemagne Capital (IOM) Limited 15 July 2016
11 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Financial Position
Notes Magna Eastern Magna Global Emerging Magna Latin European Fund Markets Fund American Fund 30/06/2016 31/12/2015 30/06/2016 31/12/2015 30/06/2016 31/12/2015 € € € € € € Financial assets at fair value through profit or loss Transferable securities 12,896,118 12,298,710 8,436,551 8,903,713 7,070,454 18,951,628 Total financial assets at fair value through profit or loss 12,896,118 12,298,710 8,436,551 8,903,713 7,070,454 18,951,628 Other Current Assets: Cash 8 124,501 328,103 448,403 350,976 188,631 236,708 Dividends receivable 33,588 47,357 31,490 13,474 7,202 30,845 Receivable from issuance of Redeemable Participating Shares – – – 90 – 845 Due from broker – – – 4 – 27,691 Other receivables 4,175 3 1,952 1 828 – Total Assets 13,058,382 12,674,173 8,918,396 9,268,258 7,267,115 19,247,717 Current Liabilities: Bank overdraft – – (564) – – – Due to broker – – (45,147) – – – Payable on redemption of Redeemable Participating Shares – (1,357) (2,855) – (6,160) (12,376) Other creditors 7 (106,875) (93,229) (105,414) (86,515) (169,929) (154,982) Total Liabilities (excluding Net Assets Attributable to Holders of Redeemable Participating Shares) (106,875) (94,586) (153,980) (86,515) (176,089) (167,358) Net Assets Attributable to Holders of Redeemable Participating Shares 12,951,507 12,579,587 8,764,416 9,181,743 7,091,026 19,080,359 Redeemable Participating Shares Outstanding: A Class – – – – 74,555 78,310 C Class 272,929 278,501 164,561 168,036 7,991 7,325 G Class – – 207,474 207,522 280,026 985,073 R Class 631,367 681,277 316,748 363,064 267,001 1,256,792 Net Asset Value per Share: A Class – – – – €25.347 €21.741 C Class €31.801 €29.682 €22.116 €21.944 €27.449 €23.485 G Class – – €11.285 €11.183 €10.108 €8.638 R Class €6.766 €6.331 €8.788 €8.741 €8.058 €6.920
The accompanying notes form an integral part of the financial statements.
12 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Financial Position continued
Notes Magna Africa Magna MENA Magna Undervalued Fund Fund Assets Fund* 30/06/2016 31/12/2015 30/06/2016 31/12/2015 30/06/2016 31/12/2015 € € € € € € Financial assets at fair value through profit or loss Transferable securities 13,339,856 16,674,722 20,735,804 22,914,124 – 2,752,765 Options at fair value – – 1,304,245 2,459,783 – – Total financial assets at fair value through profit or loss 13,339,856 16,674,722 22,040,049 25,373,907 – 2,752,765 Other current assets: Cash 8 490,356 633,341 1,560,947 3,407,157 69,092 264,863 Dividends receivable 34,783 32,242 91,078 28,640 – – Interest income receivable 27,514 17,300 – – – – Receivable from issuance of Redeemable Participating Shares – 299 – 5,952 – – Due from broker 274,352 – – 112,457 – – Other receivables 1,972 23 987 218 – 279 Total assets 14,168,833 17,357,927 23,693,061 28,928,331 69,092 3,017,907 Current liabilities: Bank overdraft – (45,254) (640,936) – – – Payable on redemption of Redeemable Participating Shares – (12,162) (133,234) (1,816,416) – – Performance fees payable – – (408,045) (1,093,940) – – Other creditors 7 (154,132) (125,915) (184,588) (166,498) (69,092) (66,487) Total liabilities (excluding Net Assets Attributable to Holders of Redeemable Participating Shares) (154,132) (183,331) (1,366,803) (3,076,854) (69,092) (66,487) Net Assets Attributable to Holders of Redeemable Participating Shares 14,014,701 17,174,596 22,326,258 25,851,477 – 2,951,420 Redeemable Participating Shares Outstanding: A Class 1,177,047 1,248,043 – – – – C Class 295,553 574,489 – – – – G Class 42,354 15,306 357,237 365,763 – 197,239 N Class – – 294,639 421,313 – 44,072 R Class 88,275 96,473 408,459 465,935 – 43,171 Net Asset Value per Share: A Class €8.383 €8.396 – – – – C Class €9.870 €9.861 – – – – G Class €10.165 €10.142 €12.885 €12.264 – €10.151 N Class – – €25.671 €24.449 – €11.023 R Class €9.057 €9.072 €24.873 €23.748 – €10.736
* Magna Undervalued Assets Fund was fully redeemed on 29 January 2016.
The accompanying notes form an integral part of the financial statements.
13 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Financial Position continued
Notes Magna Emerging Markets Magna New Magna Biopharma Dividend Fund Frontiers Fund Income Fund 30/06/2016 31/12/2015 30/06/2016 31/12/2015 30/06/2016 31/12/2015 € € € € € € Financial assets at fair value through profit or loss Transferable securities 323,478,538 337,665,926 31,556,973 16,384,948 6,900,690 8,253,720 Options at fair value – – 2,228,488 – – – Total financial assets at fair value through profit or loss 323,478,538 337,665,926 33,785,461 16,384,948 6,900,690 8,253,720 Other current assets: Cash 8 6,054,668 17,843,475 4,737,979 1,449,790 115,440 64,851 Dividends receivable 3,101,476 306,798 83,139 8,112 1,949 4,874 Receivable from issuance of Redeemable Participating Shares – 42,549 15,320 17,489 – – Due from broker 4,214,351 – – – 193,182 – Other receivables 24,313 383 6,731 – 724 7 Total assets 336,873,346 355,859,131 38,628,630 17,860,339 7,211,985 8,323,452 Financial liabilities at fair value through profit or loss Unrealised depreciation on forward currency contracts (159,446) – (15,699) – – – Total financial liabilities at fair value through profit or loss (159,446) – (15,699) – – – Current liabilities: Bank overdraft (348,068) (146,132) (14) (2,558) – (2,538) Due to broker – – (1,308,032) (244,802) (198,103) – Payable on redemption of Redeemable Participating Shares (8,212) (246,163) (29,693) (5,986) – – Performance fees payable – – (160,083) (4,727) – – Other creditors 7 (883,018) (807,188) (154,892) (132,029) (95,788) (68,624) Total liabilities (excluding Net Assets Attributable to Holders of Redeemable Participating Shares) (1,398,744) (1,199,483) (1,668,413) (390,102) (293,891) (71,162) Net Assets Attributable to Holders of Redeemable Participating Shares 335,474,602 354,659,648 36,960,217 17,470,237 6,918,094 8,252,290 Redeemable Participating Shares Outstanding: B Acc Class 4,202,710 4,618,441 – – 430,845 463,998 B Dist Class 15,319,294 16,343,267 – – 78,963 78,624 C Acc Class – – – – 26,468 10,858 D Dist Class – – 194,484 82,828 – – G Class – – 1,404,255 166,615 – – I Class 4,919,006 4,919,006 – – – – N Acc Class 3,023,908 4,620,182 – – – – N Class – – 374,601 521,597 – – N Dist Class 1,069,466 1,108,579 – – – – R Acc Class 552,003 433,191 – – 22,376 24,809 R Class – – 1,070,620 677,948 – – R Dist Class 808,768 773,782 – – 41 41 Net Asset Value per Share: B Acc Class £10.327 £8.642 – – €12.791 €14.576 B Dist Class £9.040 £7.719 – – €11.951 €13.619 C Acc Class – – – – €8.036 €9.236 D Dist Class – – €10.000 €9.130 – – G Class – – €10.614 €9.695 – – I Class €10.709 €10.083 – – – – N Acc Class €12.911 €12.232 – – – – N Class – – €14.190 €12.789 – – N Dist Class €10.100 €9.765 – – – – R Acc Class €12.369 €11.747 – – €11.185 €12.793 R Class – – €13.819 €12.431 – – R Dist Class €9.800 €9.498 – – €11.214 €12.820
The accompanying notes form an integral part of the financial statements.
14 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Financial Position continued
Magna Umbrella Fund plc 30/06/2016 31/12/2015 € € Financial assets at fair value through profit or loss Transferable securities 424,414,984 444,800,256 Options at fair value 3,532,733 2,459,783 Total financial assets at fair value through profit or loss 427,947,717 447,260,039 Other current assets: Cash 13,790,017 24,579,264 Dividends receivable 3,384,705 472,342 Interest income receivable 27,514 17,300 Receivable from issuance of Redeemable Participating Shares 15,320 67,224 Due from broker 4,681,885 140,152 Other receivables 41,682 914 Total assets 449,888,840 472,537,235 Financial liabilities at fair value through profit or loss Unrealised depreciation on forward currency contracts (175,145) – Total financial liabilities at fair value through profit or loss (175,145) – Current liabilities: Bank overdraft (989,582) (196,482) Due to broker (1,551,282) (244,802) Payable on redemption of Redeemable Participating Shares (180,154) (2,094,460) Performance fees payable (568,128) (1,098,667) Other creditors (1,923,728) (1,701,467) Total liabilities (excluding Net Assets Attributable to Holders of Redeemable Participating Shares) (5,388,019) (5,335,878) Net Assets Attributable to Holders of Redeemable Participating Shares 444,500,821 467,201,357
The accompanying notes form an integral part of the financial statements.
15 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Comprehensive Income
Notes Magna Eastern Magna Global Emerging Magna Latin European Fund Markets Fund American Fund 30/06/2016 30/06/2015 30/06/2016 30/06/2015 30/06/2016 30/06/2015 € € € € € € Income: Dividend income 228,646 227,785 59,817 134,525 212,431 726,124 Interest income – – – – – 1 228,646 227,785 59,817 134,525 212,431 726,125 Net realised (loss)/gain on: – Investment transactions (24,499) (832,672) (183,137) 785,516 (2,134,101) 3,027,825 – Foreign currency transactions (3,373) (401) (17,231) 6,850 (1,667) 129,301 Total realised (loss)/gain (27,872) (833,073) (200,368) 792,366 (2,135,768) 3,157,126
Net movement in unrealised (depreciation)/appreciation on: – Investment transactions 863,217 2,688,015 352,865 279,817 3,693,718 (1,196,216) – Foreign currency transactions 40 (540) 3,779 1,531 1,990 (26,889) Net movement in unrealised (depreciation)/appreciation on investments in securities and foreign currency transactions 863,257 2,687,475 356,644 281,348 3,695,708 (1,223,105) Total income 1,064,031 2,082,187 216,093 1,208,239 1,772,371 2,660,146
Expenses: Investment Manager: – Annual 4.1 (88,595) (110,978) (56,157) (73,353) (108,192) (459,945) – Performance 4.1 – – – – – – Transaction costs (8,061) (8,442) (33,198) (14,950) (42,019) (89,793) Directors' fees and expenses 4.4 (1,867) (2,413) (1,291) (1,468) (2,650) (9,909) Audit fees (10,443) (10,823) (10,443) (11,093) (10,443) (12,330) Administrator fees and expenses 4.3 (29,765) (24,724) (35,606) (27,738) (39,493) (52,082) Depositary fees 4.2 (16,165) (19,836) (15,914) (18,918) (22,581) (30,052) Printing fees (127) (442) (88) (326) (268) (1,201) Statutory, professional and legal expenses (6,786) (8,656) (5,318) (7,141) (11,621) (28,899) Other expenses (11,495) (25,953) (9,555) (29,326) (24,920) (41,430) Total expenses before taxation (173,304) (212,267) (167,570) (184,313) (262,187) (725,641) Net Income from operations before Taxation 890,727 1,869,920 48,523 1,023,926 1,510,184 1,934,505
Finance costs: Interest expense (423) (466) (34) (22) (40) (46) Total finance costs (423) (466) (34) (22) (40) (46)
Taxation: Withholding tax 6 (25,577) (30,300) (7,651) (15,407) (19,389) (47,278) Total taxation (25,577) (30,300) (7,651) (15,407) (19,389) (47,278) Increase in Net Assets Attributable to Holders of Redeemable Participating Shares 864,727 1,839,154 40,838 1,008,497 1,490,755 1,887,181
The accompanying notes form an integral part of the financial statements.
16 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Comprehensive Income continued
Notes Magna Africa Magna MENA Magna Undervalued Fund Fund Assets Fund* 30/06/2016 30/06/2015 30/06/2016 30/06/2015 30/06/2016 30/06/2015 € € € € € € Income: Dividend income 289,237 482,980 420,489 853,049 1,307 578,198 Interest income 10,500 10,514 – 500 – – 299,737 493,494 420,489 853,549 1,307 578,198 Net realised (loss)/gain on: – Investment transactions (994,838) 1,502,827 (935,690) 4,747,661 (202,036) (1,143,825) – Foreign currency transactions (66,216) 24,501 (51,076) 93,699 4,399 6,793 Total realised (loss)/gain (1,061,054) 1,527,328 (986,766) 4,841,360 (197,637) (1,137,032)
Net movement in unrealised (depreciation)/appreciation on: – Investment transactions 761,923 1,370,252 1,894,956 4,262,998 (94,680) 1,860,366 – Foreign currency transactions 3,307 (2,927) 7,772 (25,812) (1) 91,006 Net movement in unrealised (depreciation)/appreciation on investments in securities and foreign currency transactions 765,230 1,367,325 1,902,728 4,237,186 (94,681) 1,951,372 Total income/(loss) 3,913 3,388,147 1,336,451 9,932,095 (291,011) 1,392,538
Expenses: Investment Manager: – Annual 4.1 (116,357) (179,239) (154,030) (317,658) (2,445) (47,590) – Performance 4.1 – (721) (408,046) (926,895) – (75,315) Transaction costs (35,078) (113,498) (56,871) (167,501) (5,049) (11,890) Directors' fees and expenses 4.4 (2,261) (3,191) (3,626) (5,714) (198) (1,708) Audit fees (10,443) (10,879) (9,200) (9,568) (10,840) (10,432) Administrator fees and expenses 4.3 (40,768) (33,306) (36,475) (47,635) (3,597) (27,766) Depositary fees 4.2 (34,037) (36,773) (48,616) (92,491) (3,248) (18,336) Printing fees (171) (539) (349) (784) (65) (330) Statutory, professional and legal expenses (7,927) (12,228) (11,782) (18,886) (21,959) (6,473) Other expenses (15,789) (35,669) (47,239) (38,611) (9,673) (23,880) Total expenses before taxation (262,831) (426,043) (776,234) (1,625,743) (57,074) (223,720) Net (Expenses)/Income from operations before Taxation (258,918) 2,962,104 560,217 8,306,352 (348,085) 1,168,818
Finance costs: Distributions to Holders of Redeemable Participating Shares 9 – – – – – – Interest expense (498) (3,071) (2,180) (281) (413) (993) Total finance costs (498) (3,071) (2,180) (281) (413) (993)
Taxation: Withholding tax 6 (27,895) (42,773) (22,902) (16,743) 1,876 (3,402) Total taxation (27,895) (42,773) (22,902) (16,743) 1,876 (3,402) (Decrease)/increase in Net Assets Attributable to Holders of Redeemable Participating Shares (287,311) 2,916,260 535,135 8,289,328 (346,622) 1,164,423
* Magna Undervalued Assets Fund was fully redeemed on 29 January 2016.
The accompanying notes form an integral part of the financial statements.
17 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Comprehensive Income continued
Notes Magna Emerging Markets Magna New Magna Biopharma Dividend Fund Frontiers Fund Income Fund 30/06/2016 30/06/2015 30/06/2016 30/06/2015 30/06/2016 30/06/2015 € € € € € € Income: Dividend income 10,516,075 10,747,987 586,196 336,210 59,690 61,259 Interest income 10 14 – – – – 10,516,085 10,748,001 586,196 336,210 59,690 61,259 Net realised (loss)/gain on: – Investment transactions (16,655,201) 7,032,818 336,324 1,737,065 (343,658) 1,232,112 – Foreign currency transactions (300,021) 2,010,720 242,451 17,772 (8,078) 5,025 Total realised (loss)/gain (16,955,222) 9,043,538 578,775 1,754,837 (351,736) 1,237,137
Net movement in unrealised (depreciation)/appreciation on: – Investment transactions 27,043,114 14,411,710 2,333,895 463,146 (589,294) 276,654 – Foreign currency transactions 78,338 (145,711) (12,723) (5,970) (1,334) 3,161 Net movement in unrealised (depreciation)/appreciation on investments in securities and foreign currency transactions 27,121,452 14,265,999 2,321,172 457,176 (590,628) 279,815 Total income/(loss) 20,682,315 34,057,538 3,486,143 2,548,223 (882,674) 1,578,211
Expenses: Investment Manager: – Annual 4.1 (1,540,832) (2,026,494) (162,359) (152,469) (37,842) (40,766) – Performance 4.1 – – (160,082) (391) – – Transaction costs (294,482) (578,905) (103,112) (88,020) (9,988) (9,373) Directors' fees and expenses 4.4 (50,499) (45,093) (2,513) (3,028) (1,092) (899) Audit fees (10,443) (10,167) (9,199) (10,050) (9,199) (6,503) Administrator fees and expenses 4.3 (226,136) (233,694) (39,814) (29,498) (41,711) (27,750) Depositary fees 4.2 (175,048) (174,227) (23,715) (54,420) (10,930) (10,768) Printing fees (3,917) (5,220) (1,901) (750) (73) (158) Statutory, professional and legal expenses (131,603) (152,766) (11,946) (15,178) (12,445) (4,179) Other expenses (149,931) (142,766) (26,165) (43,089) (9,172) (41,013) Total expenses before taxation (2,582,891) (3,369,332) (540,806) (396,893) (132,452) (141,409) Net Income/(Expenses) from operations before Taxation 18,099,424 30,688,206 2,945,337 2,151,330 (1,015,126) 1,436,802
Finance costs: Distributions to Holders of Redeemable Participating Shares 9 (3,828,965) (3,674,705) (24,707) – – – Interest expense (308) (4,372) (1,181) (3,594) (3) (6) Total finance costs (3,829,273) (3,679,077) (25,888) (3,594) (3) (6)
Taxation: Withholding tax 6 (1,101,022) (922,762) (31,599) (19,849) (17,542) (73,739) Capital gains tax 40,163 127,625 7,974 (12,876) – – Total taxation (1,060,859) (795,137) (23,625) (32,725) (17,542) (73,739) Increase/(decrease) in Net Assets Attributable to Holders of Redeemable Participating Shares 13,209,292 26,213,992 2,895,824 2,115,011 (1,032,671) 1,363,057
The accompanying notes form an integral part of the financial statements.
18 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Comprehensive Income continued
Notes Magna Umbrella Fund plc 30/06/2016 30/06/2015 € € Income: Dividend income 12,373,889 14,148,117 Interest income 10,509 11,029 12,384,398 14,159,146 Net realised (loss)/gain on: – Investment transactions (21,136,835) 18,089,327 – Foreign currency transactions (200,811) 2,294,260 Total realised (loss)/gain (21,337,646) 20,383,587
Net movement in unrealised (depreciation)/appreciation on: – Investment transactions 36,259,714 24,416,742 – Foreign currency transactions 81,168 (112,151) Net movement in unrealised depreciation on investments in securities and foreign currency transactions 36,340,882 24,304,591 Total income 27,387,634 58,847,324
Expenses: Investment Manager: – Annual 4.1 (2,266,809) (3,408,492) – Performance 4.1 (568,129) (1,003,322) Transaction costs (587,858) (1,082,372) Directors' fees and expenses 4.4 (65,997) (73,423) Audit fees (90,652) (91,845) Administrator fees and expenses 4.3 (493,364) (504,193) Depositary fees 4.2 (350,254) (455,821) Printing fees (6,959) (9,750) Statutory, professional and legal expenses (221,385) (254,406) Other expenses (303,940) (421,737) Total expenses before taxation (4,955,347) (7,305,361) Net Income from operations before Taxation 22,432,287 51,541,963
Finance costs: Distributions to Holders of Redeemable Participating Shares 9 (3,853,672) (3,674,705) Interest expense (5,080) (12,851) Total finance costs (3,858,752) (3,687,556)
Taxation: Withholding tax 6 (1,251,704) (1,172,253) Capital gains tax 48,136 114,749 Total taxation (1,203,568) (1,057,504) Increase in Net Assets Attributable to Holders of Redeemable Participating Shares 17,369,967 46,796,903
The accompanying notes form an integral part of the financial statements.
19 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares Magna Eastern Magna Global Emerging Magna Latin European Fund Markets Fund American Fund 30/06/2016 30/06/2015 30/06/2016 30/06/2015 30/06/2016 30/06/2015 € € € € € € Net increase in Net Assets Attributable to Holders of Redeemable Participating shares 864,727 1,839,154 40,838 1,008,497 1,490,755 1,887,181
Transactions in Redeemable Participating Shares Proceeds from shares issued 4,848 85,237 85,670 267,445 1,054,339 19,554,353 Payment on shares redeemed (497,655) (1,064,372) (543,835) (892,393) (14,534,427) (53,125,733) Decrease in Net Assets from Redeemable Participating Share Transactions (492,807) (979,135) (458,165) (624,948) (13,480,088) (33,571,380) Increase/(decrease) in Net Assets Attributable to Holders of Redeemable Participating Shares 371,920 860,019 (417,327) 383,549 (11,989,333) (31,684,199)
Net Assets Attributable to Holders of Redeemable Participating Shares: At beginning of period 12,579,587 14,184,693 9,181,743 10,082,863 19,080,359 61,986,661 At end of period 12,951,507 15,044,712 8,764,416 10,466,412 7,091,026 30,302,462
Magna Undervalued Magna Africa Fund Magna MENA Fund Assets Fund* 30/06/2016 30/06/2015 30/06/2016 30/06/2015 30/06/2016 30/06/2015 € € € € € € Net (decrease)/increase in Net Assets Attributable to Holders of Redeemable Participating shares (287,311) 2,916,260 535,135 8,289,328 (346,622) 1,164,423
Transactions in Redeemable Participating Shares Proceeds from shares issued 649,048 1,717,743 2,798,556 17,883,506 – 18,162 Payment on shares redeemed (3,521,632) (2,210,678) (6,858,910) (20,993,725) (2,604,798) (6,345,213) Decrease in Net Assets from Redeemable Participating Share Transactions (2,872,584) (492,935) (4,060,354) (3,110,219) (2,604,798) (6,327,051) (Decrease)/increase in Net Assets Attributable to Holders of Redeemable Participating Shares (3,159,895) 2,423,325 (3,525,219) 5,179,109 (2,951,420) (5,162,628)
Net Assets Attributable to Holders of Redeemable Participating Shares: At beginning of period 17,174,596 20,880,511 25,851,477 37,885,788 2,951,420 11,069,773 At end of period 14,014,701 23,303,836 22,326,258 43,064,897 – 5,907,145
* Magna Undervalued Assets Fund was fully redeemed on 29 January 2016.
The accompanying notes form an integral part of the financial statements.
20 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares continued Magna Emerging Markets Magna New Magna Biopharma Dividend Fund Frontiers Fund Income Fund 30/06/2016 30/06/2015 30/06/2016 30/06/2015 30/06/2016 30/06/2015 € € € € € € Net increase/(decrease) in Net Assets Attributable to Holders of Redeemable Participating shares 13,209,292 26,213,992 2,895,824 2,115,011 (1,032,671) 1,363,057
Transactions in Redeemable Participating Shares Proceeds from shares issued 41,699,667 107,225,469 21,187,462 1,275,453 258,045 112,238 Payment on shares redeemed (74,094,005) (78,096,329) (4,593,306) (8,930,381) (559,570) (1,688,110) (Decrease)/increase in Net Assets from Redeemable Participating Share Transactions (32,394,338) 29,129,140 16,594,156 (7,654,928) (301,525) (1,575,872) (Decrease)/increase in Net Assets Attributable to Holders of Redeemable Participating Shares (19,185,046) 55,343,132 19,489,980 (5,539,917) (1,334,196) (212,815)
Net Assets Attributable to Holders of Redeemable Participating Shares: At beginning of period 354,659,648 356,608,179 17,470,237 20,411,741 8,252,290 8,092,192 At end of period 335,474,602 411,951,311 36,960,217 14,871,824 6,918,094 7,879,377
Magna Umbrella Fund plc 30/06/2016 30/06/2015 € € Net increase in Net Assets Attributable to Holders of Redeemable Participating shares 17,369,967 46,796,903
Transactions in Redeemable Participating Shares Proceeds from shares issued 67,737,635 148,139,606 Payment on shares redeemed (107,808,138) (173,346,934) Decrease in Net Assets from Redeemable Participating Share Transactions (40,070,503) (25,207,328) (Decrease)/increase in Net Assets Attributable to Holders of Redeemable Participating Shares (22,700,536) 21,589,575
Net Assets Attributable to Holders of Redeemable Participating Shares: At beginning of period 467,201,357 541,202,401 At end of period 444,500,821 562,791,976
The accompanying notes form an integral part of the financial statements.
21 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Cash Flows
Magna Eastern Magna Global Emerging Magna Latin European Fund Markets Fund American Fund 30/06/2016 30/06/2015 30/06/2016 30/06/2015 30/06/2016 30/06/2015 € € € € € € Cash flows from operating activities Increase in Net Assets Attributable to Holders of Redeemable Participating Shares from operations 864,727 1,839,154 40,838 1,008,497 1,490,755 1,887,181
Adjustments to reconcile increase/ decrease in Net Assets Attributable to Holders of Redeemable Participating Shares from operations to net cash (used in)/provided by operating activities
(Increase)/decrease in assets: Financial assets at fair value through profit or loss (597,408) (807,858) 467,162 (169,616) 11,881,174 30,640,030 Due from broker – (7,610) 4 (16,046) 27,691 103,815 Dividends receivable 13,769 52,790 (18,016) (33,076) 23,643 (23,679) Other receivables (4,172) (2,326) (1,951) 154 (828) (652) Increase/(decrease) in liabilities: Due to Broker – 11,853 45,147 – – 42,110 Other creditors 13,646 36,132 18,899 39,260 14,947 9,914 Net cash provided by operating activities 290,562 1,122,135 552,083 829,173 13,437,382 32,658,719
Cash flows from financing activities Issue of Redeemable Participating Shares during the period 4,848 85,237 85,760 267,445 1,055,184 19,549,932 Redemption of Redeemable Participating Shares during the period (499,012) (1,069,132) (540,980) (889,457) (14,540,643) (53,131,102) Net cash (used in) financing activities (494,164) (983,895) (455,220) (622,012) (13,485,459) (33,581,170)
Net (decrease)/increase in cash and cash equivalents (203,602) 138,240 96,863 207,161 (48,077) (922,451) Cash and cash equivalents at beginning of period 328,103 283,428 350,976 238,038 236,708 2,066,955 Cash and cash equivalents at end of period 124,501 421,668 447,839 445,199 188,631 1,144,504
Cash and cash equivalents at end of period comprise of: Cash 124,501 421,668 448,403 445,199 188,631 1,144,504 Bank overdraft – – (564) – – – 124,501 421,668 447,839 445,199 188,631 1,144,504
Supplemental Disclosures Cash received during the period for interest income – – – – – 1 Cash paid during the period for interest expense (423) (466) (34) (22) (40) (46) Cash received during the period for dividend income 242,415 280,575 41,801 101,449 236,074 702,445
The accompanying notes form an integral part of the financial statements.
22 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Cash Flows continued
Magna Undervalued Magna Africa Fund Magna MENA Fund Assets Fund* 30/06/2016 30/06/2015 30/06/2016 30/06/2015 30/06/2016 30/06/2015 € € € € € € Cash flows from operating activities (Decrease)/increase in Net Assets Attributable to Holders of Redeemable Participating Shares from operations (287,311) 2,916,260 535,135 8,289,328 (346,622) 1,164,423
Adjustments to reconcile increase/ decrease in Net Assets Attributable to Holders of Redeemable Participating Shares from operations to net cash (used in)/provided by operating activities
(Increase)/decrease in assets: Financial assets at fair value through profit or loss 3,334,866 (2,128,950) 3,333,858 (7,127,039) 2,752,765 4,572,160 Due from broker (274,352) (174,090) 112,457 – – (19,242) Interest receivable (10,214) 9,677 – – – – Dividends receivable (2,541) (21,832) (62,438) 4,968 – (19,713) Other receivables (1,949) 129 (769) (3,081) 279 (2,653) Increase/(decrease) in liabilities: Due to Broker – 322,047 – 303,520 – 19,369 Performance fees – 721 (685,895) (537,118) – 58,268 Other creditors 28,217 69,059 18,090 86,411 2,605 (8,111) Net cash provided by operating activities 2,786,716 993,021 3,250,438 1,016,989 2,409,027 5,764,501
Cash flows from financing activities Issue of Redeemable Participating Shares during the period 649,347 1,717,824 2,804,508 19,200,470 – 18,162 Redemption of Redeemable Participating Shares during the period (3,533,794) (2,219,529) (8,542,092) (21,186,769) (2,604,798) (6,345,213) Net cash (used in) financing activities (2,884,447) (501,705) (5,737,584) (1,986,299) (2,604,798) (6,327,051)
Net (decrease)/increase in cash and cash equivalents (97,731) 491,316 (2,487,146) (969,310) (195,771) (562,550) Cash and cash equivalents at beginning of period 588,087 487,645 3,407,157 3,322,489 264,863 1,113,901 Cash and cash equivalents at end of period 490,356 978,961 920,011 2,353,179 69,092 551,351
Cash and cash equivalents at end of period comprise of: Cash 490,356 978,961 1,560,947 2,353,179 69,092 551,351 Bank overdraft – – (640,936) – – – 490,356 978,961 920,011 2,353,179 69,092 551,351
Supplemental Disclosures Cash received during the period for interest income 286 20,191 – 500 – – Cash paid during the period for interest expense (498) (3,071) (2,180) (281) (413) (993) Cash received during the period for dividend income 286,696 461,148 358,051 858,017 1,307 558,485
* Magna Undervalued Assets Fund was fully redeemed on 29 January 2016.
The accompanying notes form an integral part of the financial statements.
23 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Cash Flows continued
Magna Emerging Markets Magna New Magna Biopharma Dividend Fund Frontiers Fund Income Fund 30/06/2016 30/06/2015 30/06/2016 30/06/2015 30/06/2016 30/06/2015 € € € € € € Cash flows from operating activities Increase/(decrease) in Net Assets Attributable to Holders of Redeemable Participating Shares from operations 13,209,292 26,213,992 2,895,824 2,115,011 (1,032,671) 1,363,057
Adjustments to reconcile increase/ decrease in Net Assets Attributable to Holders of Redeemable Participating Shares from operations to net cash (used in)/provided by operating activities
(Increase)/decrease in assets: Financial assets at fair value through profit or loss 14,187,388 (55,171,658) (17,400,513) 4,107,243 1,353,030 696,324 Due from broker (4,214,351) (630,425) – (27,895) (193,182) (473,673) Dividends receivable (2,794,678) (2,766,403) (75,027) (49,089) 2,925 770 Other receivables (23,930) (10,483) (6,731) 605 (717) 4,537 Increase/(decrease) in liabilities: Financial liabilities at fair value through profit or loss 159,446 – 15,699 – – – Due to Broker – 33,810 1,063,230 (221,752) 198,103 232,723 Performance fees – – 155,356 308 – – Other creditors 75,830 129,228 22,863 71,675 27,164 30,856 Net cash provided by/(used in) operating activities 20,598,997 (32,201,939) (13,329,299) 5,996,106 354,652 1,854,594
Cash flows from financing activities Issue of Redeemable Participating Shares during the period 41,742,216 107,217,860 21,189,631 1,884,618 258,045 112,238 Redemption of Redeemable Participating Shares during the period (74,331,956) (76,500,733) (4,569,599) (8,904,943) (559,570) (1,685,409) Net cash (used in)/provided by financing activities (32,589,740) 30,717,127 16,620,032 (7,020,325) (301,525) (1,573,171)
Net (decrease)/increase in cash and cash equivalents (11,990,743) (1,484,812) 3,290,733 (1,024,219) 53,127 281,423 Cash and cash equivalents at beginning of period 17,697,343 15,996,190 1,447,232 1,411,268 62,313 60,400 Cash and cash equivalents at end of period 5,706,600 14,511,378 4,737,965 387,049 115,440 341,823
Cash and cash equivalents at end of period comprise of: Cash 6,054,668 14,511,378 4,737,979 387,049 115,440 341,823 Bank overdraft (348,068) – (14) – – – 5,706,600 14,511,378 4,737,965 387,049 115,440 341,823
Supplemental Disclosures Cash received during the period for interest income 10 14 – – – – Cash paid during the period for interest expense (308) (4,372) (1,181) (3,594) (3) (6) Cash received during the period for dividend income 7,721,397 7,981,584 511,169 287,121 62,615 62,029
The accompanying notes form an integral part of the financial statements.
24 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Statement of Cash Flows continued
Magna Umbrella Fund plc 30/06/2016 30/06/2015 € € Cash flows from operating activities Increase in Net Assets Attributable to Holders of Redeemable Participating Shares from operations 17,369,967 46,796,903
Adjustments to reconcile increase/ decrease in Net Assets Attributable to Holders of Redeemable Participating Shares from operations to net cash (used in)/provided by operating activities
(Increase)/decrease in assets: Financial assets at fair value through profit or loss 19,312,322 (25,389,364) Due from broker (4,541,733) (1,245,166) Interest receivable (10,214) 9,677 Dividends receivable (2,912,363) (2,855,263) Other receivables (40,768) (13,770) Increase/(decrease) in liabilities: Financial liabilities at fair value through profit or loss 175,145 – Due to Broker 1,306,480 743,680 Performance fees (530,539) (477,821) Other creditors 222,261 464,424 Net cash provided by operating activities 30,350,558 18,033,300
Cash flows from financing activities Issue of Redeemable Participating Shares during the period 67,789,539 150,053,786 Redemption of Redeemable Participating Shares during the period (109,722,444) (171,932,287) Net cash (used in) financing activities (41,932,905) (21,878,501)
Net decrease in cash and cash equivalents (11,582,347) (3,845,201) Cash and cash equivalents at beginning of period 24,382,782 24,980,313 Cash and cash equivalents at end of period 12,800,435 21,135,112
Cash and cash equivalents at end of period comprise of: Cash 13,790,017 21,135,112 Bank overdraft (989,582) – 12,800,435 21,135,112
Supplemental Disclosures Cash received during the period for interest income 296 20,706 Cash paid during the period for interest expense (5,080) (12,851) Cash received during the period for dividend income 9,461,525 11,292,854
25 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements
1. General Magna Umbrella Fund plc (the “Company”) is an open-ended investment company with variable capital, incorporated as Regent Magna Europa Fund plc in Ireland on 15 December 1997 under the Companies Act 2014 with registration number 277318. The Company was renamed Magna Umbrella Fund plc by resolution of the members on 24 March 2003. The Company is authorised by the Central Bank of Ireland (the “Central Bank”) as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) which is in accordance with the Companies Act 2014 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the “UCITS Regulations”). All active share classes are listed on the Irish Stock Exchange (“ISE”).
Segregated liability between Funds In accordance with the prospectus of the Company (the “Prospectus”), the assets of each Fund are separate from one another and are invested separately in accordance with the investment objective and policies of each Fund. Whilst there is segregated liability between the Funds, a separate portfolio of assets is not maintained for each class of share. As at 30 June 2016 Magna Umbrella Fund Plc had the following active funds and share classes. Fund Share Class Base Currency Magna Eastern European Fund C Class Euro Magna Eastern European Fund R Class Euro Magna Global Emerging Markets Fund C Class Euro Magna Global Emerging Markets Fund G Class Euro Magna Global Emerging Markets Fund R Class Euro Magna Latin American Fund A Class Euro Magna Latin American Fund C Class Euro Magna Latin American Fund G Class Euro Magna Latin American Fund R Class Euro Magna Africa Fund A Class Euro Magna Africa Fund C Class Euro Magna Africa Fund G Class Euro Magna Africa Fund R Class Euro Magna MENA Fund G Class Euro Magna MENA Fund N Class Euro Magna MENA Fund R Class Euro Magna Emerging Markets Dividend Fund B Acc Class Sterling Magna Emerging Markets Dividend Fund B Dist Class Sterling Magna Emerging Markets Dividend Fund I Class Euro Magna Emerging Markets Dividend Fund N Acc Class Euro Magna Emerging Markets Dividend Fund N Dist Class Euro Magna Emerging Markets Dividend Fund R Acc Class Euro Magna Emerging Markets Dividend Fund R Dist Class Euro Magna New Frontiers Fund D Dist Class Euro Magna New Frontiers Fund G Class Euro Magna New Frontiers Fund N Class Euro Magna New Frontiers Fund R Class Euro Magna Biopharma Income Fund B Acc Class Euro Magna Biopharma Income Fund B Dist Class Euro Magna Biopharma Income Fund C Acc Class Euro Magna Biopharma Income Fund R Acc Class Euro Magna Biopharma Income Fund R Dist Class Euro 1.1 Magna Eastern European Fund The investment objective of the Magna Eastern European Fund is to achieve capital growth by investment in a diversified portfolio consisting of Eastern European Securities, as defined in the Prospectus. The investment objective of the Fund is achieved mainly by investing in equities and to a limited extent debt securities issued by, or in relation to, the securities of companies in countries of Eastern Europe or companies carrying out business in Eastern Europe, the majority of which are listed or traded on recognised exchanges, as defined or listed in the Prospectus (“Recognised Exchanges”). The Fund may also invest in financial derivative instruments either for the purpose of investment or for the purpose of efficient portfolio management, within the conditions and limits laid down by the Central Bank, the Prospectus and the UCITS Regulations. It may also invest in low exercise price warrants or low strike price options or similar instruments.
26 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
1.2 Magna Global Emerging Markets Fund The investment objective of the Magna Global Emerging Markets Fund is to achieve capital growth by investment in a diversified portfolio of Global Emerging Market Securities, as defined in the Prospectus. The investment objective of the Fund is achieved mainly by investing in equities and to a limited extent debt securities issued by, or in relation to, the equities and debt securities of companies in Global Emerging Countries or whose business is carried out in Global Emerging Countries which are listed or traded on Recognised Exchanges. Global Emerging Countries include any emerging market country where there is a Recognised Exchange, Hong Kong or any other country included in the MSCI Emerging Markets Free Index. The Fund may also invest in financial derivative instruments either for the purpose of investment, hedging or for the purpose of efficient portfolio management, within the conditions and limits laid down by the Central Bank, the Prospectus and the UCITS Regulations. It may also invest in low exercise price warrants or low strike price options or similar instruments.
1.3 Magna Latin American Fund The investment objective of the Magna Latin American Fund is to achieve capital appreciation through investment in a portfolio consisting primarily of Latin American Securities, as defined in the Prospectus. The investment objective of the Fund is achieved by investing mainly in equities and debt securities issued by, or in relation to, the securities of companies in Latin America or companies whose business is carried out in Latin America, the majority of which are listed or traded on Recognised Exchanges. The Fund may also invest in financial derivative instruments either for the purpose of investment, hedging or for the purpose of efficient portfolio management, within the conditions and limits laid down by the Central Bank, the Prospectus and the UCITS Regulations. It may also invest in low exercise price warrants or low strike price options or similar instruments.
1.4 Magna Africa Fund The investment objective of the Magna Africa Fund is to achieve capital appreciation through investment in a portfolio consisting primarily of African Securities, as defined in the Prospectus. The investment objective of the Fund is achieved mainly by investing in equities and to a limited extent debt securities issued by, or in relation to, the securities of companies in Africa and the companies located outside Africa who carry out business in Africa, the majority of which will be listed or traded on Recognised Exchanges. The countries included are Africa are South Africa, Egypt, Morocco, Nigeria, Kenya, Mauritius, Tunisia, Botswana, Cote d’Ivoire, Ghana, Namibia and Zimbabwe. The Fund may also invest in financial derivative instruments either for the purpose of investment, hedging or for the purpose of efficient portfolio management, within the conditions and limits laid down by the Central Bank, the Prospectus and the UCITS Regulations. It may also invest in low exercise price warrants or low strike price options or similar instruments.
1.5 Magna MENA Fund The investment objective of the Magna MENA Fund is to achieve capital appreciation through investment in a portfolio consisting primarily of MENA Securities, as defined in the Prospectus. The investment objective of the Fund is achieved mainly by investing in equities and to a limited extent debt securities issued by, or in relation to, the securities of companies in the Middle East and North Africa (MENA), the majority of which will be listed or traded on Recognised Exchanges and the companies located outside MENA who carry out business in MENA, all of which will be listed or traded on Recognised Exchanges. The MENA countries include but are not limited to Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia and United Arab Emirates. The Fund may also invest in financial derivative instruments either for the purpose of investment, hedging or for the purpose of efficient portfolio management, within the conditions and limits laid down by the Central Bank, the Prospectus and the UCITS Regulations. It may also invest in low exercise price warrants or low strike price options or similar instruments.
1.6 Magna Undervalued Assets Fund (fully redeemed on 29 January 2016) The investment objective of the Magna Undervalued Assets Fund was to provide shareholders with an attractive return to be achieved primarily through long-term capital growth. In pursuit of its investment objective, the Fund sought to take advantage of opportunities in global emerging countries through investment in equities, debt securities, closed-ended and open-ended funds which trade at a discount relative to their net asset value and which may be listed or unlisted in accordance with the UCITS Regulations. The Fund may also have invested in financial derivative instruments either for the purpose of investment, hedging or for the purpose of efficient portfolio management, within the conditions and limits laid down by the Central Bank, the Prospectus and the UCITS Regulations. It may also have invested in single stock and index futures, options, contracts for difference, swap contracts (on currency exchange rates, market indices and specific securities and options on such swaps), low exercise price warrants, low strike price options and zero coupon equity linked notes (structured as a combination of a zero coupon bond and an option).
27 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
1.7 Magna Emerging Markets Dividend Fund The Investment objective of the Magna Emerging Markets Dividend Fund is to achieve capital growth by investing in companies with high dividend yield plus capital growth. The Fund aims to provide a combination of income and long term capital growth by investing in equities and debt securities issued by, or in relation to the securities of companies in global emerging countries the majority of which will be listed or traded on Recognised Exchanges. Investment in debt securities shall not exceed 15% of the Fund’s total assets. The Fund may invest in unlisted securities or in units of other collective investment schemes, subject to the requirements of the Central Bank, the Prospectus and the UCITS Regulations.
1.8 Magna New Frontiers Fund The investment objective of the Magna New Frontiers Fund is to achieve capital growth by investing in Global Frontier Market Securities, as defined in the Prospectus. The Fund invests predominantly in the rapidly developing frontier markets of the world with opportunities anticipated to arise in the frontier markets of Europe, Africa, the Middle East, Central and South America and Asia on the basis that notwithstanding there has been economic progress in these markets, the Investment manager believes there are opportunities for further growth and investment. The Fund aims to provide long term capital growth by investing in equities and debt securities issued by, or in relation to the securities of companies, governments and government agencies in Global Frontier Countries.
1.9 Magna Biopharma Income Fund The Investment objective of the Magna Biopharma Income Fund is to seek growing income distributions with capital appreciation potential in the long term by investing in a diversified portfolio of Biopharma Sector Securities, as defined in the Prospectus. In pursuit of its investment objective the Fund will invest primarily in Biopharma Sector Equities and Biopharma Sector Debt which are listed or traded on Recognised Exchanges. The Fund may participate in initial public offerings (“IPOs”) of Biopharma companies subject to the investment restrictions. The Fund may also invest in long-term equity anticipation securities (“LEAPs”) the underlying securities of which will be based on Biopharma Sector Securities and/or indices relating to the Biopharma Sector (such as for example the MSCI World Health Care Index, the NASDAQ Biotech Index, the NYSE Arca Pharmaceutical Index and the Amex Drug Index). LEAPs are publicly traded options contracts with expiration dates of up to two and a half years. Any investment in LEAPs will be subject to and in accordance with the requirements of the Central Bank, the Prospectus and the UCITS Regulations.
2. Significant Accounting Policies The following is a summary of the significant accounting policies adopted by the Company:
2.1 Basis of preparation The condensed interim financial statements for the six months ended 30 June 2016 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted for use in the European Union (“EU”), Irish statute comprising the Companies Act 2014 and the UCITS Regulations. The condensed interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, (‘Interim Financial Reporting’). The condensed interim financial statements should be read in conjunction with the audited annual financial statements for the year ended 31 December 2015. The significant accounting policies adapted by the company for the period ended 30 June 2016 are consistent with those adapted for the year ended 31 December 2015. The Directors have made an assessment of the Company’s ability to continue as a going concern and are satisfied that the Company has the resources to continue in business for the foreseeable future. Furthermore, the Directors are not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. Therefore the financial statements continue to be prepared on the going concern basis.
Fair value measurement principles Fair value is the amount for which a financial asset could be exchanged or a financial liability settled between knowledgeable willing parties in an arm’s length transaction. The fair value of financial instruments traded in active markets (such as publicly traded derivatives and trading securities) is based on quoted market prices at the Statement of Financial Position date without any deduction for estimated future selling costs. The quoted market price used for financial assets held by the Company is the closing mid-market price.
28 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
The Company may from time to time invest in financial instruments that are not traded in an active market (for example in over-the-counter derivatives). The fair value is estimated by using valuation techniques. The Board of Directors has authorised a pricing committee convened by Charlemagne Capital (IOM) Limited (the “Investment Manager”) and approved by BNY Mellon Trust Company (Ireland) Limited (the “Depositary”) as the competent person (the “Pricing Committee”) to recommend the fair value for such unlisted securities to the Administrator. The Pricing Committee uses a variety of techniques and makes assumptions that are based on market conditions existing at each statement of financial position date.
2.2 New accounting standards Issued At the date of approval of these financial statements, the following Standards, Amendments and Interpretations were in issue but not yet effective: IFRS 9, “Financial instruments” (“IFRS 9”) (issued 12 November 2009, revised in October 2010, November 2013 and July 2014). IFRS 9 is effective for annual periods beginning on or after 1 January 2018 and has not been early adopted by the Company. IFRS 9 replaces most of the guidance of IAS 39, “Financial instruments: Recognition and measurement” that relates to classification and measurement of financial instruments. The completed IFRS 9 (as revised in 2014) contains the requirements for a) the classification and measurement of financial assets and financial liabilities, b) impairment methodology and c) general hedge accounting. IFRS 9 establishes three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income and fair value through profit or loss. The basis of classification depends on the entity’s business model and the contractual cash-flow characteristics of the financial asset. For financial liabilities, there were no changes to classification and measurement except for the recognition of changes in the entity’s own credit risk in other comprehensive income, for liabilities designated at fair value through profit or loss. Based on the initial assessment, this standard is not expected to have a material impact on the Company. This is because the financial instruments currently measured at fair value through profit or loss will continue to be measured at fair value through profit or loss under IFRS 9 and those currently measured at amortised cost will continue to be measured at amortised cost under IFRS 9.
3. Share Capital The authorised share capital of the Company is US$60,000 divided into 60,000 (non-participating) subscriber shares of a par value of US$1 each and 500,000,000,000 participating shares of no par value (“Redeemable Participating shares”). The Redeemable Participating shares are available for issue to shareholders. The issued subscriber share capital is 7 shares at US$1 per share. The subscriber shares carry no voting rights while the Redeemable Participating shares carry voting rights and are entitled to all dividend and capital surplus rights. The Statement of Financial Position and the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares deal only with the Redeemable Participating shares and do not include the subscriber shares.
4. Charges and fees Pursuant to the relevant service provider agreements the service providers to the Company are entitled to receive fees and expenses for services rendered to the Company. The fees and expenses paid to the major service providers during the period are as follows:
4.1 Investment Manager Fees Annual fee For the period ended 30 June 2016 this fee amounted to €2,266,809 (30 June 2015: €3,408,492). The fees and expenses of Charlemagne Capital (UK) Limited (“the Investment Adviser”) are the responsibility of Charlemagne Capital (IOM) Limited (the “Investment Manager”). During the period ended 30 June 2016 the Investment Manager re- charged expenses to the Company amounting to €216,064 (30 June 2015: €105,572). Performance fee In addition the Investment Manager is entitled to a performance fee, accrued daily and payable after the end of each financial year for each Fund, in relation to A, B, C, and D Class Shares, where appropriate, equaling a rate of 20% of any excess of the net asset value per class of share over 110% (adjusted appropriately in respect of any period of more or less than 12 months) of the reference index net asset value per class of share as at the last dealing day in the relevant accounting period, multiplied by the weighted average number of shares of each class in issue during the accounting period as at the last dealing day or, in the case of shares that are redeemed, the number of shares of each class being redeemed during the period by reference to which the fee is payable. The Funds have high watermarks. Until the Funds’ high watermarks have been exceeded, no performance fees are paid.
29 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
The Investment Manager is also entitled to a performance fee in relation to G, N and R Class Shares, where appropriate, as well as B Dist and D Dist on Magna New Frontiers Fund, equalling a rate of 20% of the return on the G, N, B Dist, R and D Dist Class Shares (including any dividends declared in respect of the B Dist and D Dist) in excess of the percentage return on the benchmark rate subject to the reference index net asset value per share, as defined in the Prospectus. With respect to Magna Biopharma Income Fund the Investment Manager shall be entitled to receive a performance fee for each of the B Acc, B Dist, R Acc and R Dist Class Shares, equalling a rate of 10% of the return on the B Acc, B Dist, R Acc and R Dist Class Shares (including any dividends declared in respect of the B Dist and R Dist) in excess of the percentage return on the benchmark rate subject to the relevant benchmark net asset value per share, as defined in the Prospectus. Performance fees crystallise and are paid on 1 January each year, however, in the event of large redemptions the Company may choose to crystallise performance fees as and when they occur. No performance fees are payable in respect of the C Class, G Class or R Class Shares on Magna Eastern European Fund, Magna Global Emerging Markets Fund and Magna Latin American Fund. No performance fees are payable in respect of I, J and S Classes. For the period ended 30 June 2016 performance fees accrued and not yet paid on Magna Africa Fund, Magna MENA Fund, Magna Undervalued Assets Fund and Magna New Frontiers Fund amounted to €nil (30 June 2015: €721), €408,046 (30 June 2015: €926,895), €nil (30 June 2015: €75,315) and €160,082 (30 June 2015: €391) respectively.
4.2 Depositary fees For the period to 17 March 2016, the Fund paid the Depositary a fee of up to 0.0175% per annum of average net assets up to US$250 million and 0.015% per annum of average net assets in excess of US$250 million. Such fees were accrued daily together with any VAT, if applicable, subject to a minimum fee of US$18,000 per annum. For the period from 18 March 2016, the Fund pays the Depository a fee of up to 0.020125% per annum of average net assets up to US$250 million and 0.01726% per annum of average net assets in excess of US$250 million. Such fees are accrued daily together with any VAT, if applicable, subject to a minimum fee of US$20,700 per annum. The increase in fees is as a result of UCITS V depositary services. The Depositary is also entitled to reimbursement of all reasonable out of pocket expenses properly incurred in the performance of its duties. The Depositary also charges each Fund for all safekeeping charges incurred by its sub- depositary plus transaction fees, stamp duties, scrip charges, registration fees and special taxes plus any ad hoc administration costs. For the period ended 30 June 2016, total Depositary fees amounted to €350,254 (30 June 2015: €455,821).
4.3 Administrator fee BNY Mellon Fund Services (Ireland) Designated Activity Company (the “Administrator”) is entitled to a fee, payable monthly in arrears, in relation to administration and accounting services at a rate of up to 0.11% per annum of the average Net Asset Value of each Fund and subject to an agreed minimum fee of US$75,000 per annum per Fund. For the period ended 30 June 2016 this fee amounted to €371,036 (30 June 2015: €376,404). The Administrator is also entitled to receive a fee of US$5,000 per share class per Fund per annum for acting as transfer agent to the Funds and to reimbursement of transaction charges incurred in the performance of its duties. Such fees are calculated and payable monthly. For the period ended 30 June 2016, this fee amounted to €122,328 (30 June 2015: €127,789).
4.4 Directors fees The Company shall pay the Directors such annual remuneration for acting as Directors of the Company as the Directors may from time to time agree, provided however that the annual remuneration of the Directors shall not, in aggregate, exceed €200,000. Such fees shall be payable quarterly in arrears and shall be apportioned pro rata amongst the Funds. The Directors shall also be entitled to reimbursement of any reasonable expenses incurred by them in the performance of their duties. For the period ended 30 June 2016, the Directors’ fees charged to the Statement of Comprehensive Income were €65,997 (30 June 2015: €73,423). For the period ended 30 June 2016, reimbursements of expenses amounted to €2,109 (30 June 2015 : €446). Directors’ fees were subject to PAYE.
5. Related party transactions Anderson Whamond is a Director of the Investment Manager and the Sponsor, a shareholder of Charlemagne Capital Limited (“CCL”) and a director of Mann Bioinvest Limited which has been engaged to perform investment advisory services to the Investment Manager in respect of Magna Biopharma Income Fund. As at 30 June 2016, a party related to Anderson Whamond held 6,111 B Acc Class Shares of Magna Emerging Markets Dividend Fund (31 December 2015: 6,111 B Acc Class Shares of Magna Emerging Markets Dividend Fund). Jonathan Bradley is a Director of the Investment Adviser and the share distributor, Charlemagne Capital (UK) Limited.
30 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
As at 30 June 2016, a subsidiary of CCL, Charlemagne Capital (Investments) Limited, held in the Company 8,031 Class R shares of Magna Eastern European Fund (31 December 2015: 8,031), 47,253 Class C shares of Magna Global Emerging Markets Fund (31 December 2015: 47,253), 206,584 Class G shares of Magna Global Emerging Markets Fund (31 December 2015: 206,584), 47,459 Class G shares of Magna Latin America Fund (31 December 2015: Nil), 5,757 Class R shares of Magna Africa Fund (31 December 2015: 5,757), 18,571 Class B Accumulating shares of Magna Emerging Markets Dividend Fund (31 December 2015: 18,571), 11,725 Class D shares of Magna New Frontiers Fund (31 December 2015: 11,725) and held 36,584 Class B Accumulating shares of Magna Biopharma Income Fund (31 December 2015: 73,164). As at 30 June 2016, and 31 December 2015 no Director held any interest in the Company. As at 30 June 2016, a fund managed by CCL, Charlemagne Global Opportunities Limited held in the Company, Nil Class R shares of Magna MENA Fund (31 December 2015: 34,519), and Nil Class N shares of Magna New Frontiers Fund (31 December 2015: 78,644). CCL is a company incorporated in the Cayman Islands. On 4 April 2006 CCL's shares were admitted to the official list of the Alternative Investment Market of the London Stock Exchange. As at 30 June 2016 and 31 December 2015 employees (including parties related to employees) of the Investment Manager also held shares in the Company as disclosed below:
Fund Share Class 30 June 2016 31 December 2015 Magna Global Emerging Markets Fund C Class 25,669.01 25,669.01 Magna Latin American Fund C Class 63.57 63.57 G Class 115.62 115.62 R Class 33.06 – Magna MENA Fund G Class 9,457.65 9,457.65 N Class – 780.61 R Class 17.91 – Magna Emerging Markets Dividend Fund B Acc Class 34,445.04 40,952.71 N Acc Class 56,689.98 58,496.71 R Acc Class 1,207.88 1,207.88 R Dist Class 36,584.96 36,584.96 Magna New Frontiers Fund N Class 91,323.46 44,778.69 D Class 95.34 – 6. Taxation The Company is an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. Therefore, it will not be liable to Irish tax on its income or gains, other than on the occurrence of a chargeable event. A chargeable event includes any distribution payments to shareholders or any encashment, redemption or transfer of shares or the ending period for which the investment was held. Generally a chargeable event arises on any distribution, redemption, repurchase, cancellation, transfer of shares or on the ending of a “Relevant Period”. A “Relevant Period” being an eight year period beginning with the acquisition of the shares by the shareholder and each subsequent period of eight years beginning immediately after the preceding Relevant Period. A gain or chargeable event does not arise in respect of (i) a shareholder who is not an Irish resident and not ordinarily resident in Ireland at the time of the chargeable event, provided the necessary signed statutory declarations are held by the Company. (ii) certain exempted Irish tax resident investors who have provided the Company with the necessary signed statutory declarations; (iii) an exchange of shares arising on a qualifying amalgamation or reconstruction of the Company with another fund; (iv) any transactions in relation to shares held in a recognised clearing system as designated by order of the Revenue Commissioners of Ireland; (v) certain exchanges between spouses and former spouses on the occasion of judicial separation and/or divorce; (vi) an exchange by a shareholder, effected by way of an arm’s length bargain where no payment is made to the shareholder of the shares in the Company for other shares in the Company. The Company is exposed to tax risks with regard to the imposition of taxes in the jurisdictions in which it invests (including but not limited to capital gains tax and withholding tax), and has put in place a process for the identification of its obligations in this regard including periodic updates to its tax database and external, third party validation of this database at regular intervals. In the absence of an appropriate declaration, the Company will be liable to Irish tax on the occurrence of a chargeable event, and the Company reserves its right to withhold such taxes from the relevant shareholders.
31 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
Capital gains, dividends and interest (if any) received on investment made by the Company may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Company or its shareholders. The dividend withholding tax charge for the period ending 30 June 2016 was €1,251,704 (30 June 2015: €1,172,253). For the period ended 30 June 2016 there was a refund of taxation in respect of capital gains tax of €40,163 for Magna Emerging Markets Dividend Fund (30 June 2015: €127,625) and €7,974 for Magna New Frontiers Fund (30 June 2015: charge of €12,876).
7. Other Creditors Magna Magna Magna Magna Global Magna Under- Emerging Magna Magna Eastern Emerging Latin Magna Magna valued Markets New Biopharma Magna European Markets American Africa MENA Assets Dividend Frontiers Income Umbrella Fund Fund Fund Fund Fund Fund* Fund Fund Fund Fund plc 30/06/2016 30/06/2016 30/06/2016 30/06/2016 30/06/2016 30/06/2016 30/06/2016 30/06/2016 30/06/2016 30/06/2016 € € € € € € € € € €
Investment Manager fees: Annual 14,875 9,293 8,893 18,710 27,335 – 257,881 37,781 5,989 380,757 Administrator fees: Administration 28,070 37,954 27,935 33,812 25,357 10,186 51,939 28,181 34,660 278,094 Transfer Agent 6,573 8,668 13,930 14,138 13,784 2,157 45,884 13,601 13,000 131,735 Depositary fees: Annual 8,405 8,405 8,405 8,405 8,405 1,813 28,819 8,405 8,405 89,467 Transaction costs 10,030 9,986 22,642 27,343 33,649 4,839 174,639 22,328 3,583 309,039 Directors’ fees 10,416 4,281 29,814 9,732 5,493 8,274 41,810 5,229 2 115,051 Audit fees 9,906 9,906 9,906 9,906 8,695 10,336 9,906 8,695 8,696 85,952 Legal fees 1,171 1,364 5,313 3,474 2,079 16,544 84,888 – 3,843 118,676 Other 17,429 15,557 43,091 28,612 59,791 14,943 187,252 30,672 17,610 414,957 Total 106,875 105,414 169,929 154,132 184,588 69,092 883,018 154,892 95,788 1,923,728
Magna Magna Magna Magna Global Magna Under- Emerging Magna Magna Eastern Emerging Latin Magna Magna valued Markets New Biopharma Magna European Markets American Africa MENA Assets Dividend Frontiers Income Umbrella Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund plc 31/12/2015 31/12/2015 31/12/2015 31/12/2015 31/12/2015 31/12/2015 31/12/2015 31/12/2015 31/12/2015 31/12/2015 € € € € € € € € € €
Investment Manager fees: Annual 15,604 10,708 26,286 23,205 37,030 2,934 281,852 22,942 7,243 427,804 Administrator fees: Administration 20,192 26,170 17,065 21,921 17,086 13,348 38,277 17,279 21,780 193,118 Transfer Agent 2,646 3,393 5,857 5,448 5,882 3,151 18,524 5,215 4,790 54,906 Depositary fees: Annual 3,292 3,292 3,292 3,292 3,292 3,292 10,800 3,292 3,292 37,136 Transaction costs 6,767 5,984 17,502 18,959 34,861 6,145 79,581 17,945 1,550 189,294 Directors’ fees 10,431 4,289 29,793 9,760 5,477 8,297 42,242 5,255 11 115,555 Audit fees 21,000 21,000 21,000 21,000 18,500 18,500 21,000 18,500 18,500 179,000 Legal fees 1,590 1,603 6,692 4,248 8,628 578 79,920 2,787 1,771 107,817 Taxation – – – – – – 40,163 – – 40,163 Other 11,707 10,076 27,495 18,082 35,742 10,242 194,829 38,814 9,687 356,674 Total 93,229 86,515 154,982 125,915 166,498 66,487 807,188 132,029 68,624 1,701,467
* Magna Undervalued Assets Fund was fully redeemed on 29 January 2016. 8. Cash Balances As at 30 June 2016 and 31 December 2015 all cash balances were held by the Depository.
9. Distributions The Funds are capital appreciation Funds and it is not intended that they will pay dividends. However, the B Dist, N Dist, R Dist and S Class Shares of Magna Emerging Markets Dividend Fund, the D Dist Class Shares of Magna New Frontiers Fund and the B Dist, H and R Dist Class Shares of Biopharma Income Fund are distributing Classes. The B Dist, D Dist, N Dist, R Dist, H and S Class Shares shall if applicable pay distributions in respect of each accounting period and half-yearly accounting period as may from time to time be determined by the Directors, in their absolute discretion and such distributions in respect of the B Dist, D Dist, N Dist, R Dist, H and S Class Shares shall be paid within six months of the relevant accounting date or half-yearly accounting date as appropriate. The amount of the distribution (if any) for any accounting period or half-yearly accounting period as appropriate shall be determined by the Directors and any sums not distributed will be accumulated and reflected in the Net Asset Value of the B Dist, D Dist, N Dist, R Dist, H and S Class Shares as appropriate. Any distribution paid will be out of net income, less accrued expenses.
32 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
Distributions from Magna Emerging Markets Dividend Fund per share class during the period ended 30 June 2016 were as follows: Dividend per Redeemable Participating Fund Class Ex Date Pay Date Share Amount B Dist Class 20/05/2016 10/06/2016 0.1579 £2,660,584 N Dist Class 20/05/2016 10/06/2016 0.1918 €208,173 R Dist Class 20/05/2016 10/06/2016 0.1864 €152,588 Distributions from Magna Emerging Markets Dividend Fund per share class during the period ended 30 June 2015 were as follows: Dividend per Redeemable Participating Fund Class Ex Date Pay Date Share Amount B Dist Class 22/05/2015 29/05/2015 0.1688 £2,129,796 N Dist Class 22/05/2015 29/05/2015 0.2222 €440,759 R Dist Class 22/05/2015 29/05/2015 0.2170 €240,092 Distributions from Magna New Frontiers Fund per share class during the period ended 30 June 2016 were as follows: Dividend per Redeemable Participating Fund Class Ex Date Pay Date Share Amount D Dist Class 20/05/2016 10/06/2016 0.1484 €24,707 There were no distributions for the Magna New Frontiers Fund during the period ended 30 June 2015.
10. Commission Sharing and Soft Commission Arrangements There have been no commission sharing or soft commission arrangements affecting the Company during the periods ended 30 June 2016 and 30 June 2015.
11. Contingent liabilities There were no contingent liabilities as at 30 June 2016 and 31 December 2015.
12. Exchange rates Foreign exchange rates used at 30 June 2016 and 31 December 2015 were as follows: 30 June 2016 31 December 2015 EUR 1 : AUD Australian Dollar n/a 1.4913 EUR 1 : BWP Botswana Pula 12.0756 12.1970 EUR 1 : BRL Brazilian Real 3.5648 4.2994 EUR 1 : GBP British Pound 0.8336 0.7372 EUR 1 : CAD Canadian Dollar 1.4337 1.5037 EUR 1 : CLP Chilean Peso 734.5124 770.0116 EUR 1 : COP Colombian Peso 3,241.4264 3,449.8167 EUR 1 : HRK Croatian Kuna n/a 7.6421 EUR 1 : CZK Czech Koruna 27.0619 27.0209 EUR 1 : EGP Egyptian Pound 9.8545 8.5091 EUR 1 : HKD Hong Kong Dollar 8.6095 8.4222 EUR 1 : HUF Hungarian Forint n/a 315.3687 EUR 1 : INR Indian Rupee 74.9023 71.8938 EUR 1 : IDR Indonesian Rupiah 14,662.5052 14,980.5374 EUR 1 : JPY Japanese Yen n/a 130.6192 EUR 1 : KES Kenyan Shilling 112.1952 111.1722 EUR 1 : KWD Kuwaiti Dinar 0.3349 0.3298 EUR 1 : MYR Malaysian Ringgit 4.4739 4.6659 EUR 1 : MXN Mexican Peso 20.2890 18.7292 EUR 1 : NGN Nigerian Naira 313.2256 216.3131 EUR 1 : NOK Norwegian Krone 9.2872 9.6193 EUR 1 : PKR Pakistan Rupee 116.2014 113.8184
33 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
30 June 2016 31 December 2015 EUR 1 : PHP Philippine Peso 52.2107 51.1360 EUR 1 : PLN Polish Zloty 4.3781 4.2628 EUR 1 : QAR Qatar Riyal 4.0409 3.9579 EUR 1 : RON Romanian Leu 4.5237 4.5189 EUR 1 : RUB Russian Ruble n/a 79.3311 EUR 1 : SGD Singapore Dollar 1.4950 1.5409 EUR 1 : ZAR South African Rand 16.3443 16.8062 EUR 1 : KRW South Korean Won 1,278.2598 1,274.2422 EUR 1 : LKR Sri Lanken Rupee 161.6344 156.7604 EUR 1 : CHF Swiss Franc 1.0837 1.0885 EUR 1 : TWD Taiwan Dollar 35.7993 35.6957 EUR 1 : TZS Tanzanian Shilling 2,430.3424 2,347.3318 EUR 1 : THB Thai Baht 38.9964 39.1059 EUR 1 : TRY Turkish Lira 3.1922 3.1693 EUR 1 : UGX Ugandan Shilling 3,776.4630 3,664.4454 EUR 1 : AED United Arab Emirates Dirham 4.0760 4.0947 EUR 1 : USD United States Dollar 1.1097 1.0867 EUR 1 : VND Vietnamese Dong 24,751.7508 24,435.0654
13. Fair value estimation IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Investments measured and reported at fair value are classified and disclosed in one of the following fair value hierarchy levels based on the significance of the inputs used in measuring its fair value: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the valuation date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 inputs are inputs other than quoted prices in active markets included within level 1 that are observable for the asset or liability, either directly or indirectly. Fair value is determined through the use of models, other valuation methodologies or where quoted prices are used but the market is not active. Level 2 inputs include the following: (a) Quoted prices for similar assets or liabilities in active markets. (b) Quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. (c) Inputs other than quoted prices that are observable for the asset or liability (e.g. interest rate and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks and default rates). (d) Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the Pricing Committee’s assumptions about how market participants would be expected to value the asset or liability. Unobservable inputs are developed based on the best information available in the circumstances, other than market data obtained from sources independent of the Funds and might include a Fund’s own data. An investment is always categorised as level 1, 2 or 3 in its entirety. In certain cases, the fair value measurement for an investment may use a number of different inputs that fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and is specific to the investment. All assets and liabilities not carried at fair value are carried at amortised cost; their carrying values are a reasonable approximation of fair value.
34 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
The fair values of investments valued under Levels 1 to 3 for 30 June 2016 are as follows: Total Level 1 Level 2 Level 3 30 June 2016 Magna Eastern European Fund €€€ € Financial assets at fair value through profit or loss Closed-End Fund 258,437 – – 258,437 Equities 11,565,328 1,072,353 – 12,637,681 Total 11,823,765 1,072,353 – 12,896,118
Total Level 1 Level 2 Level 3 30 June 2016 Magna Global Emerging Markets Fund €€€ € Financial assets at fair value through profit or loss Equities 8,436,551 – – 8,436,551 Total 8,436,551 – – 8,436,551
Total Level 1 Level 2 Level 3 30 June 2016 Magna Latin American Fund €€€ € Financial assets at fair value through profit or loss Equities 6,874,043 – 196,411 7,070,454 Total 6,874,043 – 196,411 7,070,454
Total Level 1 Level 2 Level 3 30 June 2016 Magna Africa Fund €€€ € Financial assets at fair value through profit or loss Debt Securities – – 216,266 216,266 Equities 13,123,590 – – 13,123,590 Total 13,123,590 – 216,266 13,339,856
Total Level 1 Level 2 Level 3 30 June 2016 Magna MENA Fund €€€ € Financial assets at fair value through profit or loss Derivative Instruments – 1,304,245 – 1,304,245 Equities 11,841,445 8,894,359 – 20,735,804 Total 11,841,445 10,198,604 – 22,040,049
Total Level 1 Level 2 Level 3 30 June 2016 Magna Emerging Markets Dividend Fund €€€ € Financial assets at fair value through profit or loss Equities 323,478,538 – – 323,478,538 Total 323,478,538 – – 323,478,538
Financial liabilities at fair value through profit or loss Derivative Instruments – (159,446) – (159,446) Total – (159,446) – (159,446)
35 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
Total Level 1 Level 2 Level 3 30 June 2016 Magna New Frontiers Fund €€€ € Financial assets at fair value through profit or loss Closed-End Fund – 1,846,326 – 1,846,326 Derivative Instruments – 2,228,488 – 2,228,488 Equities 25,923,432 367,777 3,419,438 29,710,647 Total 25,923,432 4,442,591 3,419,438 33,785,461
Financial liabilities at fair value through profit or loss Derivative Instruments – (15,699) – (15,699) Total – (15,699) – (15,699)
Total Level 1 Level 2 Level 3 30 June 2016 Magna Biopharma Income Fund €€€ € Financial assets at fair value through profit or loss Equities 6,900,690 – – 6,900,690 Total 6,900,690 – – 6,900,690
The fair values of investments valued under Levels 1 to 3 for 31 December 2015 are as follows: Total Level 1 Level 2 Level 3 31 December 2015 Magna Eastern European Fund €€€ € Financial assets at fair value through profit or loss Closed-End Fund 289,202 – – 289,202 Equities 10,246,423 1,763,085 – 12,009,508 Total 10,535,625 1,763,085 – 12,298,710
Total Level 1 Level 2 Level 3 31 December 2015 Magna Global Emerging Markets Fund €€€ € Financial assets at fair value through profit or loss Equities 8,903,713 – – 8,903,713 Total 8,903,713 – – 8,903,713
Total Level 1 Level 2 Level 3 31 December 2015 Magna Latin American Fund €€€ € Financial assets at fair value through profit or loss Equities 18,745,522 – 206,106 18,951,628 Total 18,745,522 – 206,106 18,951,628
Total Level 1 Level 2 Level 3 31 December 2015 Magna Africa Fund €€€ € Financial assets at fair value through profit or loss Debt Securities – – 257,654 257,654 Equities 16,011,011 406,057 – 16,417,068 Total 16,011,011 406,057 257,654 16,674,722
36 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
Total Level 1 Level 2 Level 3 31 December 2015 Magna MENA Fund €€€ € Financial assets at fair value through profit or loss Derivative Instruments – 2,459,783 – 2,459,783 Equities 14,500,506 8,413,618 – 22,914,124 Total 14,500,506 10,873,401 – 25,373,907
Total Level 1 Level 2 Level 3 31 December 2015 Magna Undervalued Assets Fund* €€€ € Financial assets at fair value through profit or loss Closed-End Fund 729,546 277,882 29,862 1,037,290 Equities 1,534,502 116,254 64,719 1,715,475 Total 2,264,048 394,136 94,581 2,752,765
*Magna Undervalued Assets Fund was fully redeemed on 29 January 2016. Total Level 1 Level 2 Level 3 31 December 2015 Magna Emerging Markets Dividend Fund €€€ € Financial assets at fair value through profit or loss Equities 334,272,559 3,393,367 – 337,665,926 Total 334,272,559 3,393,367 – 337,665,926
Total Level 1 Level 2 Level 3 31 December 2015 Magna New Frontiers Fund €€€ € Financial assets at fair value through profit or loss Closed-End Fund – 1,230,054 – 1,230,054 Equities 12,565,047 724,451 1,865,396 15,154,894 Total 12,565,047 1,954,505 1,865,396 16,384,948
Total Level 1 Level 2 Level 3 31 December 2015 Magna Biopharma Income Fund €€€ € Financial assets at fair value through profit or loss Equities 8,253,720 – – 8,253,720 Total 8,253,720 – – 8,253,720
For the purposes of the tables above debt securities include all debt instruments; derivative instruments include forwards currency contracts and options; and equities include common stock, P-Notes, preferred stock and warrants. During the period ended 30 June 2016 and the year ended 31 December 2015, there were no transfers between levels 1 and 2 or between levels 1 and 3. All other assets and liabilities including cash balances are carried at amortised cost. Their carrying values are a reasonable appreciation of fair value. As such, Level 2 is deemed to be the most appropriate categorisation for these financial instruments. As at 30 June 2016, 8 investments across 3 Funds were valued by the Pricing Committee using valuation techniques which included unobservable inputs (31 December 2015: 10 investments across 4 Funds). The total value of these investments was €3,832,115 (31 December 2015: €2,423,737) or 0.86% (31 December 2015: 0.52%) of the Company’s net assets. As at 30 June 2016, 1 security across 1 Fund was valued by the Pricing Committee using broker quotes (31 December 2015: 2 securities across 2 Funds). The total value of this investment was €1,846,326 (31 December 2015: €1,507,936) or 0.42% (31 December 2015: 0.32%) of the Company’s net assets.
37 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
As at 30 June 2016, 2 investments held across 3 Funds were valued by the Pricing Committee using market prices. (31 December 2015: 2 investments held across 3 Funds) The total value of these investments was €19,482,886 (31 December 2015: €17,045,147) or 4.38% (31 December 2015: 3.65%) of the Company’s net assets. Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However, the fair value measurement objective remains the same, i.e. an exit price from the perspective of a market participant that holds the asset or owes the liability. Therefore, unobservable inputs shall reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk. The sensitivity of unobservable inputs used in the fair valuation of these Level 3 securities is not readily determinable. If the fair value of these investments at 30 June 2016 had increased or decreased by 5% with other variables held constant, the increase or decrease, respectively, in the Fund’s net assets attributable to holders of redeemable shares would be €191,606 (31 December 2015: €121,187). The following tables present the movement in level 3 instruments for the period ended 30 June 2016 and 31 December 2015. The classification of a financial instrument within Level 3 is based upon the significance of the observable inputs to the overall fair value measurement. 30 June 2016: Magna Latin Magna Africa Magna Undervalued Magna New American Fund Fund Assets Fund* Frontiers Fund Common Stock Debt Securities Closed-End Funds Common Stock Common Stock Opening balance 206,106 257,654 29,862 64,719 1,865,396 Purchases – – – – 1,222,298 Sales – – (82,382) (252,258) – Transfers into level 3 – – – – – Movement in gains and losses recognized in the Statement of Comprehensive Income (9,695) (41,388) 52,520 187,539 331,744 Closing balance 196,411 216,266 – – 3,419,438
Magna Umbrella Fund plc Closed-End Funds Common Stock Debt Securities Opening balance 29,862 2,136,221 257,654 Purchases – 1,222,298 – Sales (82,382) (252,258) – Transfers into level 3 – – – Movement in gains and losses recognized in the Statement of Comprehensive Income 52,520 509,588 (41,388) Closing balance – 3,615,849 216,266
*Magna Undervalued Assets Fund was fully redeemed on 29 January 2016. The following table presents the movement in level 3 instruments for the year ended 31 December 2015 by class of financial instrument: 31 December Magna Latin Magna Magna Undervalued Magna New 2015: American Fund Africa Fund Assets Fund Frontiers Fund Common Common Debt Closed-End Common Common Stock Stock Securities Funds Stock Stock Opening balance 310,566 24,443 357,011 – 7,109 219,109 Purchases – – – – – 1,740,557 Sales – – – – (2,560) – Transfers into level 3 – – – 82,382 252,258 – Movement in gains and losses recognized in the Statement of Comprehensive Income (104,460) (24,443) (99,357) (52,520) (192,088) (94,270) Closing balance 206,106 – 257,654 29,862 64,719 1,865,396
38 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
Magna Umbrella Fund plc Closed-End Funds Common Stock Debt Securities Opening balance – 561,227 357,011 Purchases – 1,740,557 – Sales – (2,560) – Transfers into level 3 82,382 252,258 – Movement in gains and losses recognized in the Statement of Comprehensive Income (52,520) (415,261) (99,357) Closing balance 29,862 2,136,221 257,654
Transfers are deemed to have occurred at the end of the year for the purposes of the above tables. The following table summarises the valuation methodology and significant unobservable inputs utilised for the Company’s valuation of investments and financial instruments that are categorised within level 3 of the fair value hierarchy as at 30 June 2016 and 31 December 2015: Principal Significant Fair Valuation Unobservable Fund Date Investments value (€) Techniques Inputs Inputs Magna Latin 30-Jun-16 Common Stock 196,411 Adjusted market Value of underlying 40% American price/discounted assets and/or discount Fund net asset value discount rate applied 31-Dec-15 Common Stock 206,106 Adjusted market Value of underlying 40% price/discounted assets and/or discount net asset value discount rate applied Magna 30-Jun-16 Debt Securities 216,266 Adjusted market Value of underlying 40% Africa Fund price/discounted assets and/or discount net asset value discount rate applied 31-Dec-15 Debt Securities 257,654 Adjusted market Value of underlying 30% price/discounted assets and/or discount net asset value discount rate applied Magna 31-Dec-15 Closed-End 29,862 Adjusted market Value of underlying 50% Undervalued Fund price/discounted assets and/or discount Assets Fund* net asset value discount rate applied 31-Dec-15 Common Stock 64,719 Adjusted market Value of underlying 20% price/discounted assets and/or discount net asset value discount rate applied Magna 30-Jun-16 Common Stock 1,074,091 Adjusted market Value of underlying 7% New Frontiers price/discounted assets and/or premium Fund net asset value discount rate applied 30-Jun-16 Common Stock 2,024,080 Adjusted market Value of underlying 3% price/discounted assets and/or premium net asset value discount rate applied 30-Jun-16 Common Stock 321,267 Adjusted market Value of underlying n/a price/discounted assets and/or net asset value discount rate applied
39 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
Principal Significant Fair Valuation Unobservable Fund Date Investments value (€) Techniques Inputs Inputs 31-Dec-15 Common Stock 1,769,199 Adjusted market Value of underlying 7% price/discounted assets and/or premium net asset value discount rate applied 31-Dec-15 Common Stock 96,197 Adjusted market Value of underlying n/a price/discounted assets and/or net asset value discount rate applied
* Magna Undervalued Assets Fund was fully redeemed on 29 January 2016.
14. Use of Derivatives Instruments Where considered appropriate, the Company may utilise instruments such as futures, options, swaps, warrants, repurchase/reverse repurchase agreements and forward currency contracts for efficient portfolio management and/or to protect against exchange risks within the conditions and limits laid down by the Central Bank from time to time. For Funds which have engaged in efficient portfolio management techniques, disclosures are required under the UCITS Regulations. A UCITS is required to disclose the revenues arising from repurchase agreements and stocklending transactions for the entire reporting period together with the direct and indirect operational costs and fees incurred. During the period ended 30 June 2016 and 30 June 2015 the Funds did not enter into repurchase agreements and did not engage into stock lending activities. A description of the use of financial derivative instruments is set out below. Within the limitations imposed by the Prospectus and individual Funds’ supplements, the Funds may sell futures on currencies to provide an efficient, liquid and effective method for the management of risks by “locking in” gains and/or protecting against future declines in value. The Funds may also buy futures on currencies to provide a cost effective and efficient mechanism for taking positions in securities. The Funds where applicable may enter into forward currency contracts to purchase or sell a specific currency at a future date at a price set at the time of the contract. A Fund may enter into these contracts to hedge against changes in currency exchange rates. The Funds may use one currency (or a basket of currencies) to hedge against adverse changes in the value of another currency (or a basket of currencies) when exchange rates between the two currencies are positively correlated. The Investment Manager may write put options and covered call options to generate additional revenues for the Funds as and where permitted by the Prospectus and its supplements. The Investment Manager will not write uncovered call options. As set in the supplement for Magna Biopharma Income Fund to the Prospectus, the Investment Manager may take a temporary defensive position when the securities trading markets or the economy are experiencing excessive volatility, a prolonged general decline, or other adverse conditions. The Fund may invest in different transferable securities such as U.S. government securities, short term indebtedness, and money market instruments issued or guaranteed by any Member State, its local authorities, non-Member States or public international body of which one or more Member States are members subject to and in accordance with the requirements of the Central Bank and the UCITS Regulations or other investment grade cash equivalents. When the Fund is in a defensive investment position, it may not achieve its investment objective. 15. Significant events On 29 January 2016, at the request of the Company, Magna Undervalued Assets Fund was closed. There have been no other significant events during the period to 30 June 2016 other than those disclosed in the financial statements. 16. Subsequent events Effective 1 July 2016, BNY Mellon Investment Servicing (International) Limited merged with BNY Mellon Fund Services (Ireland) Designated Activity Company. There have been no other material events affecting the Company since the period end.
40 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Notes to the Financial Statements continued
17. Connected party transactions In accordance with the requirements of the UCITS Regulations, any transaction carried out with the Company by Investment Manager, Depositary, and Investment Adviser and/or associated or group companies of these entities (“connected parties”) must be carried out as if negotiated at arm’s length. Such transaction must be in the best interests of the shareholders. In addition to those transactions, there are also transactions carried out by connected parties on behalf of the Company to which the Directors have no direct access and in respect of which the Directors must rely upon assurances from its delegates that the connected parties carrying out these transactions do carry them out on a similar basis. Shareholders should have regard to the governance structure of the Company as more particularly described in the Corporate Governance Statement section of the Directors Report of the Annual Statements and the roles and responsibilities of the Companies respective delegates subject to the overall supervision of the Board. Further, shareholders should refer to the Prospectus which identifies many of the connected party transactions and the general nature of the contractual arrangements with the principal connected parties but it is not exhaustive of all connected party transactions. Shareholders should also refer to the provisions of the Prospectus dealing with conflicts of interest. Note 5 details related party transactions in the period as required by IAS 24: “Related Party Disclosures”. However, shareholders should understand that not all “connected parties” are related parties as such latter expression is defined by those IAS 24. Details of fees paid to related parties and certain connected parties are set out in note 4. As required under the UCITS Regulations, the Directors, as responsible persons are satisfied that there are arrangements in place, evidenced by written procedures, to ensure that the obligations that are prescribed by the UCITS Regulations are applied to all transactions with a connected party; and all transactions with connected parties that were entered into during the period to which the report relates complied with the obligations that are prescribed by the UCITS Regulations. 18. Approval of Financial Statements The interim report and financial statements for the period ended 30 June 2016 were approved by the Board of Directors on 26 August 2016.
41 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments
Magna Eastern European Fund – 30 June 2016 Description Shares Fair Value % of Net € Asset Value CLOSED-END FUND – 1.99% (31 December 2015: 2.30%) Romania 1.99% (31 December 2015: 2.30%) Fondul Proprietatea SA 1,611,432 258,437 1.99% 258,437 1.99% Total Closed-End Fund – 1.99% (31 December 2015: 2.30%) 258,437 1.99% COMMON STOCK – 96.41% (31 December 2015: 88.42%) Albania 1.69% (31 December 2015: 0.82%) Bankers Petroleum Ltd NPV 152,029 218,968 1.69% 218,968 1.69% Czech Republic 3.59% (31 December 2015: 1.72%) Komercni Banka AS 5,900 198,790 1.54% Moneta Money Bank AS 100,298 265,552 2.05% 464,342 3.59% Eastern Europe 3.87% (31 December 2015: 0.00%) Erste Group Bank AG 12,216 247,069 1.91% Luxoft Holding Inc 5,413 253,835 1.96% 500,904 3.87% Kazakhstan 1.56% (31 December 2015: 2.40%) Nostrum Oil & Gas Plc 55,059 202,109 1.56% 202,109 1.56% Poland 6.90% (31 December 2015: 10.78%) Bank Zachodni WBK SA 5,293 317,749 2.45% International Personal Finance Plc 59,339 202,801 1.57% Powszechna Kasa Oszczednosci Bank Polski SA 70,247 373,691 2.88% 894,241 6.90% Russia 53.23% (31 December 2015: 46.30%) Alrosa PAO 383,000 372,369 2.87% EON Russia JSC 7,144,586 277,113 2.14% Lenta Ltd GDR 33,928 221,360 1.71% Lukoil PJSC ADR 33,812 1,273,116 9.83% Magnit OJSC 3,812 484,272 3.74% Mail.Ru Group Ltd GDR 14,701 240,768 1.86% MMC Norilsk Nickel PJSC ADR 32,045 383,618 2.96% Moscow Exchange MICEX – RTS OAO USD 342,090 542,251 4.19% PhosAgro OAO GDR 32,995 438,697 3.39% Ros Agro Plc GDR 18,821 250,156 1.93% Sberbank of Russia 342,414 643,864 4.97% Surgutneftegas OJSC 318,919 148,768 1.15% Tatneft PAO ADR 35,439 980,704 7.57% X5 Retail Group NV GDR 35,569 637,504 4.92% 6,894,560 53.23% Turkey 25.57% (31 December 2015: 24.23%) Akbank TAS 117,185 301,939 2.33% Arcelik AS 58,933 349,386 2.70% Coca-Cola Icecek AS 16,977 186,832 1.44% KOC Holding AS 61,778 253,716 1.96% TAV Havalimanlari Holding AS 55,479 214,377 1.65% Tofas Turk Otomobil Fabrikasi AS 49,874 368,721 2.85% Tupras Turkiye Petrol Rafinerileri AS 10,797 215,792 1.67% Turk Traktor ve Ziraat Makineleri AS 8,944 234,514 1.81% Turkiye Garanti Bankasi AS 310,182 737,027 5.69% Turkiye Sinai Kalkinma Bankasi AS 1,081,433 448,877 3.47% 3,311,181 25.57% Total Common Stock – 96.41% (31 December 2015: 88.42%) 12,486,305 96.41%
42 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna Eastern European Fund – 30 June 2016 continued Description Shares Fair Value % of Net € Asset Value PREFERRED STOCK – 1.17% (31 December 2015: 7.04%) Russia 1.17% (31 December 2015: 7.04%) Surgutneftegas OJSC 279,464 151,376 1.17% 151,376 1.17% Total Preferred Stock – 1.17% (31 December 2015: 7.04%) 151,376 1.17%
Total Investments – 99.57% (31 December 2015: 97.76%) 12,896,118 99.57% Other assets and liabilities 55,389 0.43% Net Assets 12,951,507 100.00%
% of Analysis of Total Assets Total Assets Transferable securities admitted to an official stock exchange listing 98.76% Current Assets 1.24% Total Assets 100.00%
43 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna Global Emerging Markets Fund – 30 June 2016 Description Shares Fair Value % of Net € Asset Value COMMON STOCK – 92.46% (31 December 2015: 94.88%) Brazil 6.59% (31 December 2015: 4.31%) Lojas Renner SA 46,100 306,423 3.50% Raia Drogasil SA 15,300 271,101 3.09% 577,524 6.59% China 26.74% (31 December 2015: 24.86%) 3SBio Inc 278,000 256,221 2.92% AIA Group Ltd 58,400 313,893 3.58% Alibaba Group Holding Ltd ADR 4,971 356,113 4.06% Baidu Inc ADR 2,042 303,877 3.47% NewOcean Energy Holdings Ltd 208,000 60,882 0.70% Ping An Insurance (Group) Co of China Ltd 77,500 307,183 3.50% TAL Education Group ADR 3,788 211,767 2.42% Tencent Holdings Ltd 17,300 354,359 4.04% Vipshop Holdings Ltd ADR 17,800 179,244 2.05% 2,343,539 26.74% India 18.45% (31 December 2015: 11.39%) Bharti Infratel Ltd 52,102 240,747 2.75% Britannia Industries Ltd 4,382 161,139 1.84% HDFC Bank Ltd 24,967 459,167 5.24% Housing Development Finance Corp Ltd 6,834 114,259 1.30% Infosys Ltd 14,632 228,894 2.61% Kotak Mahindra Bank Ltd 13,018 132,296 1.51% Power Grid Corp of India Ltd1 128,621 280,073 3.20% 1,616,575 18.45% Indonesia 3.54% (31 December 2015: 2.27%) Matahari Department Store Tbk PT 227,900 310,472 3.54% 310,472 3.54% Mexico 8.12% (31 December 2015: 8.32%) Fibra Uno Administracion SA de CV 116,600 223,730 2.55% Gentera SAB de CV 167,600 269,875 3.08% Infraestructura Energetica Nova SAB de CV 57,442 218,200 2.49% 711,805 8.12% Philippines 2.05% (31 December 2015: 1.41%) Robinsons Retail Holdings Inc 109,890 179,376 2.05% 179,376 2.05% Russia 2.67% (31 December 2015: 1.92%) X5 Retail Group NV GDR 13,066 234,182 2.67% 234,182 2.67% South Africa 6.85% (31 December 2015: 6.54%) Aspen Pharmacare Holdings Ltd 11,126 246,678 2.82% Naspers Ltd 2,584 353,562 4.03% 600,240 6.85% Taiwan 10.06% (31 December 2015: 14.40%) E.Sun Financial Holding Co Ltd 538,046 285,185 3.25% Taiwan Semiconductor Manufacturing Co Ltd 131,655 596,689 6.81% 881,874 10.06% Turkey 1.92% (31 December 2015: 2.70%) Coca-Cola Icecek AS 15,320 168,596 1.92% 168,596 1.92% United Arab Emirates 4.06% (31 December 2015: 2.86%) NMC Health Plc 22,840 356,185 4.06% 356,185 4.06%
44 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna Global Emerging Markets Fund – 30 June 2016 continued Description Shares Fair Value % of Net € Asset Value United States 1.41% (31 December 2015: 0.00%) Luxoft Holding Inc 2,631 123,377 1.41% 123,377 1.41%
Total Common Stock – 92.46% (31 December 2015: 94.88%) 8,103,745 92.46% PREFERRED STOCK – 3.80% (31 December 2015: 2.09%) South Korea 3.80% (31 December 2015: 1.31%) LG Household & Health Care Ltd 648 332,806 3.80% 332,806 3.80%
Total Preferred Stock – 3.80% (31 December 2015: 2.09%) 332,806 3.80%
Total Investments – 96.26% (31 December 2015: 96.97%) 8,436,551 96.26% Other assets and liabilities 327,865 3.74% Net Assets 8,764,416 100.00%
1 Investments valued in care and good faith by the Pricing Committee, using observable market prices, as described in note 13, representing 3.20% of the Net Assets.
% of Analysis of Total Assets Total Assets Transferable securities admitted to an official stock exchange listing 94.60% Current Assets 5.40% Total Assets 100.00%
45 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna Latin American Fund – 30 June 2016 Description Shares Fair Value % of Net € Asset Value COMMON STOCK – 90.15% (31 December 2015: 90.91%) Argentina 1.56% (31 December 2015: 1.08%) Banco Macro SA ADR 1,651 110,449 1.56% 110,449 1.56% Brazil 42.89% (31 December 2015: 30.63%) Ambev SA ADR 81,761 435,790 6.15% Atento SA 8,629 69,203 0.98% Banco Bradesco SA ADR 43,050 302,777 4.27% BB Seguridade Participacoes SA 34,900 275,201 3.88% BM&FBovespa SA – Bolsa de Valores Mercadorias e Futuros 39,000 196,651 2.77% BR Malls Participacoes SA 54,000 194,653 2.74% Cielo SA 18,200 172,437 2.43% Hypermarcas SA 10,400 68,048 0.96% Klabin SA 28,100 121,392 1.71% Kroton Educacional SA 57,400 218,904 3.09% Linx SA 28,000 126,812 1.79% Lojas Renner SA 25,300 168,167 2.37% Mahle-Metal Leve SA 11,100 71,368 1.01% Raia Drogasil SA 7,600 134,665 1.90% Smiles SA 4,400 59,233 0.83% Ultrapar Participacoes SA 11,800 235,251 3.32% Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA 11,300 86,934 1.23% WEG SA 26,900 103,719 1.46% 3,041,205 42.89% Chile 3.88% (31 December 2015: 5.88%) Empresa Nacional de Electricidad SA 81,018 67,295 0.95% SACI Falabella 30,307 208,123 2.93% 275,418 3.88% Colombia 1.45% (31 December 2015: 1.35%) Cemex Latam Holdings SA 26,542 102,928 1.45% 102,928 1.45% Mexico 33.92% (31 December 2015: 47.72%) Alfa SAB de CV 56,500 87,469 1.23% Alsea SAB de CV 44,030 151,151 2.13% Bolsa Mexicana de Valores SAB de CV 77,460 107,568 1.52% Corp Inmobiliaria Vesta SAB de CV 84,584 117,940 1.66% Fibra Uno Administracion SA de CV 61,192 117,414 1.66% Fomento Economico Mexicano SAB de CV ADR 3,505 292,214 4.12% Gentera SAB de CV 61,200 98,546 1.39% Grupo Aeroportuario del Centro Norte SAB de CV 38,758 207,306 2.92% Grupo Financiero Banorte SAB de CV 61,962 312,360 4.41% Grupo Herdez SAB de CV 37,000 73,411 1.04% Grupo Mexico SAB de CV 41,039 86,785 1.22% Grupo Rotoplas SAB de CV 32,590 53,200 0.75% Grupo Televisa SAB ADR 5,568 130,552 1.84% Infraestructura Energetica Nova SAB de CV 47,800 181,574 2.56% Nemak SAB de CV 70,000 73,919 1.04% Promotora y Operadora de Infraestructura – L SAB de CV 1,900 16,402 0.23% Promotora y Operadora de Infraestructura SAB de CV 16,900 187,867 2.65% Wal-Mart de Mexico SAB de CV 50,700 109,851 1.55% 2,405,529 33.92% Peru 3.68% (31 December 2015: 3.17%) Credicorp Ltd 1,876 260,849 3.68% 260,849 3.68%
46 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna Latin American Fund – 30 June 2016 continued Description Shares Fair Value % of Net € Asset Value Uruguay 2.77% (31 December 2015: 1.08%) Union Agriculture Group Corp1 35,384 196,411 2.77% 196,411 2.77% Total Common Stock – 90.15% (31 December 2015: 90.91%) 6,392,789 90.15% PREFERRED STOCK – 9.56% (31 December 2015: 8.42%) Brazil 9.56% (31 December 2015: 8.42%) Itau Unibanco Holding SA ADR 79,707 677,665 9.56% 677,665 9.56% Total Preferred Stock – 9.56% (31 December 2015: 8.42%) 677,665 9.56%
Total Investments – 99.71% (31 December 2015: 99.33%) 7,070,454 99.71% Other assets and liabilities 20,572 0.29% Net Assets 7,091,026 100.00%
1 Unlisted Investments valued in care and good faith by the Pricing Committee, using unobservable inputs as described in note 13, representing 2.77% of Net Assets.
% of Analysis of Total Assets Total Assets Transferable securities admitted to an official stock exchange listing 94.59% Transferable securities other than those admitted to an official stock exchange listing 2.70% Current Assets 2.71% Total Assets 100.00%
47 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna Africa Fund – 30 June 2016 Description Shares Fair Value % of Net € Asset Value COMMON STOCK – 92.70% (31 December 2015: 93.23%) Botswana 0.97% (31 December 2015: 1.54%) Letshego Holdings Ltd 657,229 135,249 0.97% 135,249 0.97% Egypt 26.50% (31 December 2015: 26.71%) Centamin Plc 347,933 549,899 3.92% Commercial International Bank Egypt SAE 292,992 1,186,305 8.47% Eastern Tobacco 15,052 271,119 1.93% Edita Food Industries SAE 344,644 524,601 3.74% Egyptian Financial Group-Hermes Holding Co 316,281 341,814 2.44% Integrated Diagnostics Holdings Plc 152,156 545,008 3.89% Orascom Construction Ltd 55,177 296,169 2.11% 3,714,915 26.50% Kenya 11.68% (31 December 2015: 9.64%) Centum Investment Co Ltd 387,600 152,438 1.09% Co-operative Bank of Kenya Ltd 2,324,048 340,750 2.43% East African Breweries Ltd 170,900 430,315 3.07% Equity Group Holdings Ltd 1,070,500 367,344 2.62% Safaricom Ltd 2,185,600 345,776 2.47% 1,636,623 11.68% Liberia 1.25% (31 December 2015: 1.01%) African Petroleum Corp Ltd 328,324 105,350 0.75% Aureus Mining Inc 1,403,717 69,461 0.50% 174,811 1.25% Nigeria 4.89% (31 December 2015: 8.32%) Guaranty Trust Bank Plc 5,831,459 439,465 3.14% Nigerian Breweries Plc 299,230 130,788 0.93% Zenith Bank Plc 2,288,814 115,235 0.82% 685,488 4.89% Sierre Leone 0.00% (31 December 2015: 0.00%) African Minerals Ltd2,^ 185,139 – 0.00% – 0.00% South Africa 44.73% (31 December 2015: 43.36%) AngloGold Ashanti Ltd 15,675 256,742 1.83% Ascendis Health Ltd 188,220 276,958 1.98% Aspen Pharmacare Holdings Ltd 15,972 354,120 2.53% AVI Ltd 50,198 254,625 1.82% Curro Holdings Ltd 45,814 109,375 0.78% FirstRand Ltd 139,967 384,251 2.74% Foschini Group Ltd 54,416 462,946 3.30% Group Five Ltd 103,876 129,747 0.93% Holdsport Ltd 102,482 371,289 2.65% Lewis Group Ltd 74,229 200,238 1.43% Life Healthcare Group Holdings Ltd 155,580 344,917 2.46% Mr Price Group Ltd 17,426 219,766 1.57% MTN Group Ltd 28,189 246,563 1.76% Nampak Ltd 214,183 251,146 1.79% Naspers Ltd 10,146 1,388,253 9.90% Old Mutual Plc 128,668 302,613 2.16% Omnia Holdings Ltd 14,553 130,484 0.93% Rhodes Food Group Pty Ltd 215,004 310,121 2.21% Sasol Ltd 11,335 275,287 1.96% 6,269,441 44.73% Tanzania 0.28% (31 December 2015: 0.26%) Tanzania Breweries Ltd 6,995 39,460 0.28% 39,460 0.28%
48 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna Africa Fund – 30 June 2016 continued Description Shares Fair Value % of Net € Asset Value Uganda 1.42% (31 December 2015: 1.53%) Umeme Ltd 1,497,978 198,331 1.42% 198,331 1.42% Zimbabwe 0.98% (31 December 2015: 0.86%) Delta Corp Ltd 226,894 136,986 0.98% Kingdom Financial Holdings Ltd2 36,739 – 0.00% 136,986 0.98%
Total Common Stock – 92.70% (31 December 2015: 93.23%) 12,991,304 92.70%
PARTICIPATORY NOTES – 0.94% (31 December 2015: 2.36%) United Kingdom 0.94% (31 December 2015: 0.00%) ICBC Standard Bank Plc P-Note^ 23,450 132,286 0.94% 132,286 0.94%
Total PARTICIPATORY NOTES – 0.94% (31 December 2015: 2.36%) 132,286 0.94%
WARRANT – 0.00% (31 December 2015: 0.00%) Nominal Liberia 0.00% (31 December 2015: 0.00%) African Petroleum Corp Ltd2,^ 123,050 – 0.00% Aureus Mining Inc2 84,000 – 0.00% – 0.00% Total Warrant – 0.00% (31 December 2015: 0.00%) – 0.00%
CORPORATE BOND – 1.54% (31 December 2015: 1.50%) Face Value Kenya 1.54% (31 December 2015: 1.50%) TransCentury Ltd1 – 6.00%, 25 September 2016 400,000 216,266 1.54% 216,266 1.54% Total Corporate Bond – 1.54% (31 December 2015: 1.50%) 216,266 1.54% Total Investments – 95.18% (31 December 2015: 97.09%) 13,339,856 95.18% Other assets and liabilities 674,845 4.82% Net Assets 14,014,701 100.00%
1 Investments valued in care and good faith by the Pricing Committee, using unobservable inputs, as described in note 13, representing 1.54% of Net Assets. 2 Investments valued at zero in care and good faith priced by the Pricing Committee, representing 0.00% of Net Assets. ^ Unlisted investment. % of Analysis of Total Assets Total Assets Transferable securities admitted to an official stock exchange listing 93.22% Transferable securities other than those admitted to an official stock exchange listing 0.93% Current Assets 5.85% Total Assets 100.00%
49 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna MENA Fund – 30 June 2016 Description Shares Fair Value % of Net € Asset Value COMMON STOCK – 53.04% (31 December 2015: 56.09%) Egypt 11.09% (31 December 2015: 14.93%) Commercial International Bank Egypt SAE GDR 216,791 696,625 3.12% Eastern Tobacco 22,550 406,174 1.82% Edita Food Industries SAE GDR 21,636 145,248 0.65% Edita Food Industries SAE 326,656 497,221 2.23% Egyptian Financial Group-Hermes Holding Co 197,644 213,600 0.95% Integrated Diagnostics Holdings Plc 144,733 518,420 2.32% 2,477,288 11.09% Jordan 1.16% (31 December 2015: 2.89%) Hikma Pharmaceuticals Plc 8,723 257,888 1.16% 257,888 1.16% Kuwait 3.85% (31 December 2015: 5.95%) Mezzan Holding Co KSCC 260,541 847,870 3.80% National Bank of Kuwait SAKP 6,239 11,083 0.05% 858,953 3.85% Qatar 6.24% (31 December 2015: 3.86%) Al Meera Consumer Goods Co QSC 16,047 836,524 3.75% Gulf Warehousing Co 4,375 62,416 0.28% Qatar Insurance Co SAQ 27,366 493,699 2.21% 1,392,639 6.24% United Arab Emirates 30.70% (31 December 2015: 28.46%) Agthia Group PJSC 469,343 889,512 3.98% Aramex PJSC 1,019,447 811,601 3.64% Dubai Parks & Resorts PJSC 4,359,267 1,663,057 7.45% Emirates NBD PJSC 391,030 801,050 3.59% NMC Health Plc 154,351 2,407,073 10.78% Union National Bank PJSC 280,391 282,384 1.26% 6,854,677 30.70%
Total Common Stock – 53.04% (31 December 2015: 56.09%) 11,841,445 53.04%
PARTICIPATORY NOTES – 31.29% (31 December 2015: 32.55%) Saudi Arabia 31.29% (31 December 2015: 32.55%) Abdullah Al Othaim Markets P-Note Morgan Stanley 33,730 812,370 3.64% Al Mouwasat Medical Services P-Note Credit Suisse 12,879 397,206 1.78% Bupa Arabia for Cooperative Insurance Co P-Note HSBC 14,422 487,238 2.18% Dallah Healthcare Holding P-Note Credit Suisse 20,827 429,681 1.93% Fawaz Abdulaziz Al Hokair & Co P-Note Credit Suisse 26,422 280,887 1.26% Halwani Brothers Co P-Note Goldman Sachs 31,144 455,477 2.04% Middle East Healthcare Co P-Note Credit Suisse 35,416 588,149 2.63% Middle East Healthcare Co P-Note HSBC 19,119 317,507 1.42% National Medical Care P-Note HSBC 16,124 248,401 1.11% Saudi Dairy & Foodstuff Co P-Note HSBC 28,196 1,008,468 4.52% Saudi HW P-Note JP Morgan 26,915 572,256 2.56% Tawuniya Co for Cooperative Insurance P-Note JP Morgan 63,899 1,387,380 6.22% 6,985,020 31.29%
Total Participatory Notes – 31.29% (31 December 2015: 32.55%) 6,985,020 31.29%
WARRANT – 8.55% (31 December 2015: 0.00%) Nominal Saudi Arabia 8.55% (31 December 2015: 0.00%) Bupa Arabia for Cooperative Insurance Co 49,407 1,669,183 7.48% Saudi Industrial Investment Group 73,910 240,156 1.07% 1,909,339 8.55%
Total Warrant – 8.55% (31 December 2015: 0.00%) 1,909,339 8.55%
50 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna MENA Fund – 30 June 2016 continued Description Shares Fair Value % of Net € Asset Value OPTION – 5.84% (31 December 2015: 9.52%) Saudi Arabia 4.68% (31 December 2015: 7.31%) Co for Cooperative Insurance – Call 18.4085, 11 May 2017 10,771 233,861 1.05% Co for Cooperative Insurance – Call 18.4085, 24 April 2017 20,314 441,059 1.97% National Medical Care Co – Call 0.0000, 10 May 2017 15,313 235,907 1.06% National Medical Care Co – Call 0.0000, 11 May 2017 8,647 133,213 0.60% 1,044,040 4.68% United Arab Emirates 1.16% (31 December 2015: 2.21%) Aramex PJSC – Call 0.0000, 09 December 2016 234,505 186,696 0.83% Aramex PJSC – Call 0.0000, 16 December 2016 92,334 73,509 0.33% 260,205 1.16% Total option – 5.84% (31 December 2015: 9.52%) 1,304,245 5.84% Total Investments – 98.72% (31 December 2015: 98.16%) 22,040,049 98.72% Other assets and liabilities 286,209 1.28% Net Assets 22,326,258 100.00%
% of Analysis of Total Assets Total Assets Transferable securities admitted to an official stock exchange listing 87.52% Financial derivative instruments 5.50% Current Assets 6.98% Total Assets 100.00%
51 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna Emerging Markets Dividend Fund – 30 June 2016 Description Shares Fair Value % of Net € Asset Value COMMON STOCK – 89.72% (31 December 2015: 88.78%) Brazil 7.77% (31 December 2015: 5.44%) AES Tiete Energia SA 875,700 3,612,298 1.08% BB Seguridade Participacoes SA 623,400 4,915,762 1.46% BM&FBovespa SA – Bolsa de Valores Mercadorias e Futuros 1,409,900 7,109,195 2.12% Mahle-Metal Leve SA 731,100 4,700,614 1.40% Smiles SA 426,500 5,741,601 1.71% 26,079,470 7.77% Chile 2.95% (31 December 2015: 2.32%) Banco de Chile 76,006,319 7,335,596 2.19% Empresa Nacional de Electricidad SA 3,073,008 2,552,498 0.76% 9,888,094 2.95% China 15.47% (31 December 2015: 16.60%) China Construction Bank Corp 36,721,000 21,859,020 6.52% China Mobile Ltd 485,500 5,003,312 1.49% China Pacific Insurance Group Co Ltd 3,531,000 10,683,850 3.18% NewOcean Energy Holdings Ltd 24,076,000 7,047,048 2.10% Sands China Ltd 2,430,000 7,317,241 2.18% 51,910,471 15.47% India 11.18% (31 December 2015: 9.93%) Bharti Infratel Ltd 1,461,804 6,754,541 2.01% Coal India Ltd 1,089,847 4,559,322 1.36% Indiabulls Housing Finance Ltd 778,347 6,995,040 2.09% Power Grid Corp of India Ltd1 8,818,724 19,202,810 5.72% 37,511,713 11.18% Indonesia 2.09% (31 December 2015: 1.71%) Matahari Department Store Tbk PT 5,152,100 7,018,783 2.09% 7,018,783 2.09% Malaysia 3.83% (31 December 2015: 3.64%) Astro Malaysia Holdings Bhd 19,640,555 12,840,695 3.83% 12,840,695 3.83% Mexico 10.77% (31 December 2015: 11.76%) Bolsa Mexicana de Valores SAB de CV 5,839,090 8,108,660 2.42% Fibra Uno Administracion SA de CV 5,894,686 11,310,585 3.37% Gentera SAB de CV 3,229,181 5,199,738 1.55% Grupo Aeroportuario del Centro Norte SAB de CV 1,374,009 7,349,188 2.19% Wal-Mart de Mexico SAB de CV 1,913,433 4,145,824 1.24% 36,113,995 10.77% Nigeria 0.90% (31 December 2015: 0.97%) Guaranty Trust Bank Plc 39,979,386 3,012,887 0.90% 3,012,887 0.90% Philippines 0.85% (31 December 2015: 0.50%) San Miguel Pure Foods Co Inc 703,480 2,855,110 0.85% 2,855,110 0.85% Poland 0.94% (31 December 2015: 1.09%) Powszechny Zaklad Ubezpieczen SA 482,450 3,144,460 0.94% 3,144,460 0.94% Russia 4.55% (31 December 2015: 2.57%) Moscow Exchange MICEX – RTS OAO 6,953,001 11,021,286 3.28% PhosAgro OJSC GDR 320,192 4,257,224 1.27% 15,278,510 4.55% South Africa 3.34% (31 December 2015: 7.87%) Foschini Group Ltd 727,476 6,189,032 1.84% Lewis Group Ltd 1,863,794 5,027,720 1.50% 11,216,752 3.34%
52 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna Emerging Markets Dividend Fund – 30 June 2016 continued Description Shares Fair Value % of Net € Asset Value Taiwan 19.12% (31 December 2015: 18.91%) Chailease Holding Co Ltd 4,925,000 7,160,657 2.14% CTCI Corp 7,034,000 9,229,858 2.75% E.Sun Financial Holding Co Ltd 10,657,000 5,648,623 1.69% Merida Industry Co Ltd 890,300 3,375,997 1.01% St Shine Optical Co Ltd 408,000 8,257,041 2.46% Taiwan Semiconductor Manufacturing Co Ltd 6,716,000 30,438,361 9.07% 64,110,537 19.12% Thailand 3.44% (31 December 2015: 3.00%) Advanced Info Service PCL 1,516,700 6,135,421 1.83% Kasikornbank PCL 1,234,300 5,420,341 1.61% 11,555,762 3.44% Turkey 2.52% (31 December 2015: 2.47%) TAV Havalimanlari Holding AS 1,345,883 5,200,653 1.55% Tofas Turk Otomobil Fabrikasi AS 438,604 3,242,619 0.97% 8,443,272 2.52%
Total Common Stock – 89.72% (31 December 2015: 88.78%) 300,980,511 89.72%
PREFERRED STOCK – 6.70% (31 December 2015: 5.47%) South Korea 6.70% (31 December 2015: 5.47%) Hyundai Motor Co 76,849 5,675,333 1.69% Samsung Electronics Co Ltd 18,185 16,822,694 5.01% 22,498,027 6.70%
Total Preferred Stock – 6.70% (31 December 2015: 5.47%) 22,498,027 6.70% Net depreciation on forward currency contracts – (0.05)% (31 December2015: 0.00%) (159,446) (0.05)% Total Investments – 96.37% (31 December 2015: 95.21%) 323,319,092 96.37% Other assets and liabilities 12,155,510 3.63% Net Assets 335,474,602 100.00%
Schedule of forward currency contracts Unrealised Appreciation/ Expiration (Depreciation) Date Counterparty Buy Currency Sell Currency on Contracts, € 2016/07/05 Brown Brothers Harriman Buy USD 3,511,811 Sell ZAR 54,385,060 (159,446) Unrealised depreciation of forward currency contracts (159,446) Net depreciation of forward currency contracts (159,446)
1 Investments valued in care and good faith by the Pricing Committee, using observable market prices, as described in note 13, representing 5.72% of the Net Assets.
% of Analysis of Total Assets Total Assets Transferable securities admitted to an official stock exchange listing 96.02% Current Assets 3.98% Total Assets 100.00%
53 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna New Frontiers Fund – 30 June 2016 Description Shares Fair Value % of Net € Asset Value CLOSED-END FUND – 5.00% (31 December 2015: 7.04%) Vietnam 5.00% (31 December 2015: 7.04%) Dragon Capital – Vietnam Enterprise Investments Ltd2 638,800 1,846,326 5.00% 1,846,326 5.00%
Total Closed-End Fund – 5.00% (31 December 2015: 7.04%) 1,846,326 5.00%
COMMON STOCK – 79.39% (31 December 2015: 82.60%) Argentina 9.13% (31 December 2015: 9.01%) Banco Macro SA ADR 8,259 552,513 1.49% Grupo Clarin SA GDR 16,544 301,886 0.82% Grupo Financiero Galicia SA ADR 26,025 716,790 1.94% Grupo Supervielle SA ADR 90,163 1,035,894 2.80% Pampa Energia SA ADR 31,185 768,142 2.08% 3,375,225 9.13% Bulgaria 0.04% (31 December 2015: 0.25%) Bulgarian Land Development1,^ 422,786 12,684 0.04% 12,684 0.04% Burma 1.67% (31 December 2015: 2.25%) Yoma Strategic Holdings Ltd 1,654,618 617,041 1.67% 617,041 1.67% Egypt 1.17% (31 December 2015: 6.19%) Integrated Diagnostics Holdings Plc 120,633 432,096 1.17% 432,096 1.17% Georgia 7.91% (31 December 2015: 6.86%) BGEO Group Plc 47,187 1,485,046 4.02% Georgia Healthcare Group Plc 327,435 1,119,454 3.03% TBC Bank JSC GDR 27,099 317,449 0.86% 2,921,949 7.91% Kazakhstan 0.95% (31 December 2015: 0.00%) Halyk Savings Bank of Kazakhstan JSC GDR 79,794 352,325 0.95% 352,325 0.95% Laos 0.00% (31 December 2015: 0.00%) Kolao Holdings GDR3 1 3 0.00% 3 0.00% Nigeria 0.00% (31 December 2015: 0.00%) Lafarge Africa Plc 1 – 0.00% – 0.00% Pakistan 16.80% (31 December 2015: 5.79%) Allied Bank Ltd 257,900 197,584 0.53% DG Khan Cement Co Ltd 578,200 950,760 2.57% Engro Fertilizers Ltd 734,500 408,016 1.10% Engro Foods Ltd 339,200 476,246 1.29% Habib Bank Ltd 696,200 1,177,774 3.19% Kohinoor Textile Mills Ltd 1,021,500 707,657 1.92% Lucky Cement Ltd 141,700 788,608 2.13% Maple Leaf Cement Factory Ltd 676,000 612,872 1.66% MCB Bank Ltd 129,400 243,457 0.66% United Bank Ltd 424,400 645,723 1.75% 6,208,697 16.80% Philippines 4.94% (31 December 2015: 4.92%) Cemex Holdings Philippines Inc 1,803,000 371,231 1.01% Metro Retail Stores Group Inc 8,622,000 666,334 1.80% Puregold Price Club Inc 330,500 266,972 0.72% Robinsons Retail Holdings Inc 142,010 231,807 0.63% Xurpas Inc 914,100 288,880 0.78% 1,825,224 4.94%
54 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna New Frontiers Fund – 30 June 2016 continued Description Shares Fair Value % of Net € Asset Value Romania 10.81% (31 December 2015: 8.48%) Banca Transilvania SA 2,508,772 1,163,236 3.15% Electrica SA 194,671 564,168 1.53% Societatea Nationala de Gaze Naturale ROMGAZ SA 327,490 1,820,709 4.92% Transgaz SA Medias 7,490 448,700 1.21% 3,996,813 10.81% Sri Lanka 3.01% (31 December 2015: 2.83%) Hatton National Bank Plc 606,266 784,678 2.12% Sampath Bank Plc 233,823 329,539 0.89% 1,114,217 3.01% Uganda 0.54% (31 December 2015: 0.90%) Umeme Ltd 1,497,108 198,216 0.54% 198,216 0.54% United Arab Emirates 9.48% (31 December 2015: 16.52%) Abu Dhabi Commercial Bank PJSC 235,417 349,138 0.94% Aramex PJSC 137,489 109,457 0.30% Emirates NBD PJSC 368,204 754,290 2.04% National Central Cooling Co PJSC 663,309 225,387 0.61% NMC Health Plc 132,564 2,067,309 5.59% 3,505,581 9.48% United States 2.01% (31 December 2015: 0.00%) Luxoft Holding Inc 15,881 744,718 2.01% 744,718 2.01% Vietnam 10.93% (31 December 2015: 10.13%) DHG Pharmaceutical JSC1 67,000 308,583 0.83% FPT Corp1 264,194 476,821 1.29% Military Commercial Joint Stock Bank 1,045,220 631,308 1.71% Mobile World Investment Corp1 112,787 597,270 1.62% Vietnam Dairy Products JSC1 346,196 2,024,080 5.48% Vingroup JSC 11 22 0.00% 4,038,084 10.93%
Total Common Stock – 79.39% (31 December 2015: 82.60%) 29,342,873 79.39%
PARTICIPATORY NOTES – 0.99% (31 December 2015: 4.14%) Mongolia 0.00% (31 December 2015: 0.00%) GOBI Coal & Energy Ltd1 192,647 – 0.00% – 0.00% Saudi Arabia 0.99% (31 December 2015: 3.04%) Bupa Arabia for Cooperative P-Note HSBC 10,880 367,573 0.99% 367,573 0.99% Total Participatory Notes – 0.99% (31 December 2015: 4.14%) 367,573 0.99% Nominal WARRANT – 0.00% (31 December 2015: 0.01%) Sri Lanka 0.00% (31 December 2015: 0.01%) John Keells Holdings Plc 5,408 201 0.00% 201 0.00%
Total Warrant – 0.00% (31 December 2015: 0.01%) 201 0.00%
OPTION – 6.03% (31 December 2015: 0.00%) Saudi Arabia 0.99% (31 December 2015: 0.00%) Co for Cooperative Insurance – Call 18.4085, 30 June 2017 16,893 366,782 0.99% 366,782 0.99%
55 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna New Frontiers Fund – 30 June 2016 continued Description Shares Fair Value % of Net € Asset Value United Arab Emirates 5.04% (31 December 2015: 0.00%) Amarex PJSC – Call 0.0000, 04 April 2017 50,000 39,806 0.11% Amarex PJSC – Call 0.0000, 05 April 2017 326,148 259,655 0.70% Amarex PJSC – Call 0.0000, 08 June 2017 110,152 87,695 0.24% Amarex PJSC – Call 0.0000, 11 January 2017 306,751 244,213 0.66% Amarex PJSC – Call 0.0000, 21 April 2017 67,375 53,639 0.14% Amarex PJSC – Call 0.0000, 23 May 2017 134,776 107,299 0.29% Amarex PJSC – Call 0.0000, 24 March 2017 60,739 48,356 0.13% Amarex PJSC – Call 0.0000, 25 April 2017 110,300 87,813 0.24% Amarex PJSC – Call 0.0000, 25 May 2017 194,331 154,712 0.42% Amarex PJSC – Call 0.0000, 28 March 2017 86,736 69,054 0.19% Amarex PJSC – Call 0.0000, 30 March 2017 73,291 58,349 0.16% Amarex PJSC – Call 0.0000, 31 March 2017 17,911 14,259 0.04% Emirates PJSC – Call 0.0000, 08 June 2017 56,823 116,407 0.31% Emirates PJSC – Call 0.0000, 12 August 2016 182,469 373,803 1.01% Emirates PJSC – Call 0.0000, 19 May 2017 39,776 81,485 0.22% Emirates PJSC – Call 0.0000, 21 April 2017 31,808 65,161 0.18% 1,861,706 5.04% Total option – 6.03% (31 December 2015: 0.00%) 2,228,488 6.03% Net depreciation on forward currency contracts – (0.04)% (31 December 2015: 0.00%) (15,699) (0.04)% Total Investments – 91.37% (31 December 2015: 93.79%) 33,769,762 91.37% Other assets and liabilities 3,190,455 8.63% Net Assets 36,960,217 100.00%
Schedule of forward currency contracts Unrealised Expiration (Depreciation) Date Counterparty Buy Currency Sell Currency on Contracts, € 2016/07/06 BNY Mellon Buy USD 3,444,012 Sell GBP 2,600,000 (15,699)
Unrealised depreciation of forward currency contracts (15,699) Net depreciation of forward currency contracts (15,699)
1 Investments valued in care and good faith by the Pricing Committee, using unobservable inputs as described in note 13, representing 9.26% of Net Assets. 2 Investments valued in care and good faith by the Pricing Committee, using broker quotes as described in note 13, representing 5.00% of Net Assets. 3 Investments valued in care and good faith by the Pricing Committee, using observable market prices, as described in note 13, representing 0.00% of the Net Assets. ^ Unlisted investment.
% of Analysis of Total Assets Total Assets Transferable securities admitted to an official stock exchange listing 81.66% Transferable securities other than those admitted to an official stock exchange listing 0.03% Financial derivative instruments 5.77% Current Assets 12.54% Total Assets 100.00%
56 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Schedule of Investments continued
Magna Biopharma Income Fund – 30 June 2016 Description Shares Fair Value % of Net € Asset Value COMMON STOCK – 99.75% (31 December 2015: 100.02%) Germany 3.15% (31 December 2015: 0.00%) Fresenius Medical Care AG & Co KGaA 2,794 218,113 3.15% 218,113 3.15% Switzerland 7.25% (31 December 2015: 12.69%) Roche Holding AG 2,122 501,376 7.25% 501,376 7.25% United Kingdom 6.79% (31 December 2015: 5.53%) Smith & Nephew Plc 17,503 265,922 3.84% Vectura Group Plc 105,427 203,933 2.95% 469,855 6.79% United States 82.56% (31 December 2015: 77.65%) Abbott Laboratories 5,711 202,247 2.92% ABIOMED Inc 4,437 436,965 6.32% Akorn Inc 4,880 125,260 1.81% Alexion Pharmaceuticals Inc 1,644 172,993 2.50% Allergan Plc 1,183 246,254 3.56% Amgen Inc 1,633 223,927 3.24% Amphastar Pharmaceuticals Inc 14,671 213,109 3.08% Bristol-Myers Squibb Co 4,347 288,143 4.16% Cardinal Health Inc 2,527 177,648 2.57% Celgene Corp 2,026 180,082 2.60% DexCom Inc 6,173 441,193 6.38% Edwards Lifesciences Corp 3,437 308,906 4.47% Express Scripts Holding Co 4,034 275,520 3.98% Gilead Sciences Inc 5,525 415,267 6.00% Impax Laboratories Inc 8,500 220,744 3.19% Lannett Co Inc 6,323 135,577 1.96% Medivation Inc 5,702 309,854 4.48% Medtronic Plc 3,199 250,156 3.62% Pfizer Inc 18,727 594,086 8.59% Thermo Fisher Scientific Inc 2,020 268,949 3.89% Waters Corp 1,771 224,466 3.24% 5,711,346 82.56% Total Common Stock – 99.75% (31 December 2015: 100.02%) 6,900,690 99.75%
Total Investments – 99.75% (31 December 2015: 100.02%) 6,900,690 99.75% Other assets and liabilities 17,404 0.25% Net Assets 6,918,094 100.00%
% of Analysis of Total Assets Total Assets Transferable securities admitted to an official stock exchange listing 95.68% Current Assets 4.32% Total Assets 100.00%
57 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Supplementary Information
Key Investor Information Document (“KIID”)
A KIID for each share class of the Company in compliance with the Regulations is available from the Share Distributor and on the websites of www.fundinfo.com and www.charlemagnecapital.com.
Redeemable Participating Shares
The Investment Manager reserves the right to impose "an anti-dilution levy" representing a provision for market spreads (the difference between the prices at which assets are valued and/or bought or sold) and duties and charges and other dealing costs relating to the acquisition or disposal of assets in the event of receipt for processing of net subscription or redemption requests exceeding 1 per cent of the Net Asset Value of the Fund including as a result of requests for switching from one Fund (which shall for this purpose be treated as a redemption request) into another Fund (which shall for this purpose be treated as a subscription request). Such provision will be added to the price at which Shares will be issued in the case of net subscription requests exceeding 1 per cent of the Net Asset Value of the Fund and deducted from the price at which Shares will be redeemed in the case of net redemption requests exceeding 1 per cent of the Net Asset Value of the Fund. The Investment Manager may in addition apply a provision for market spreads and duties and charges in any other case where it considers such a provision to be in the best interests of the Fund. Any such sum will be paid into the account of the relevant Fund.
58 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements
In accordance with the UCITS Regulations, as amended, a statement of the largest changes in the composition of the Schedule of Investments during the period is provided to ensure that the shareholders can identify changes in the investments held by each Fund. That statement presents the aggregate purchases and sales of an investment, exceeding 1% of the total value of purchases and sales for the period, or the top 20 purchases or sales if those purchases or sales in excess of 1% of the total value of purchases or sales amounts to less than 20 transactions.
Magna Eastern European Fund
All Purchases Cost € Surgutneftegas OJSC 386,275 Tatneft PAO ADR 334,768 Alrosa PAO 286,100 Erste Group Bank AG 282,013 Luxoft Holding Inc 267,476 Ros Agro Plc GDR 265,480 Moneta Money Bank AS 253,081 KOC Holding AS 245,395 Tupras Turkiye Petrol Rafinerileri AS 243,157 EON Russia JSC 26,494
59 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Eastern European Fund continued
All Sales Proceeds € Surgutneftegas OJSC 679,107 OTP Bank Plc 321,948 Surgutneftegas OJSC 318,516 Mobile TeleSystems PJSC 252,993 Sberbank of Russia 249,265 Powszechna Kasa Oszczednosci Bank Polski SA 184,217 Pegasus Hava Tasimaciligi AS 122,926 Lukoil PJSC ADR 110,259 Mail.Ru Group Ltd GDR 106,029 Turkiye Garanti Bankasi AS 99,585 Prime Car Management SA 98,381 Arcelik AS 91,130 Tofas Turk Otomobil Fabrikasi AS 82,783 Moscow Exchange MICEX - RTS OAO USD 49,670 PhosAgro OAO GDR 38,849
60 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Global Emerging Markets Fund
Largest Purchases Cost € HDFC Bank Ltd 272,607 3SBio Inc 256,265 AIA Group Ltd 233,092 Raia Drogasil SA 228,568 Gentera SAB de CV 210,276 X5 Retail Group NV GDR 206,494 Alibaba Group Holding Ltd ADR 204,383 LG Household & Health Care Ltd 199,017 Bharti Infratel Ltd 189,808 Hermes Microvision Inc 166,933 Britannia Industries Ltd 157,632 Matahari Department Store Tbk PT 152,853 JD.com Inc ADR 144,546 Robinsons Retail Holdings Inc 135,093 Luxoft Holding Inc 128,462 Aspen Pharmacare Holdings Ltd 128,276 TAL Education Group ADR 125,784 Vipshop Holdings Ltd ADR 125,456 Kotak Mahindra Bank Ltd 116,947 Power Grid Corp of India Ltd 111,910 Lojas Renner SA 106,297 NMC Health Plc 105,486 Infraestructura Energetica Nova SAB de CV 100,193 Naspers Ltd 99,928 Coca-Cola Icecek AS 97,553 Housing Development Finance Corp Ltd 79,579 Fibra Uno Administracion SA de CV 78,162 Ping An Insurance (Group) Co of China Ltd 77,357 Tencent Holdings Ltd 65,127 Infosys Ltd 52,833
61 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Global Emerging Markets Fund continued
Largest Sales Proceeds € Samsung Electronics Co Ltd 494,664 China Construction Bank Corp 267,624 JD.com Inc ADR 181,850 Hermes Microvision Inc 172,560 Kia Motors Corp 166,271 Hengan International Group Co Ltd 161,198 Astro Malaysia Holdings BHD 158,964 Raia Drogasil SA 149,076 Grupo Financiero Banorte SAB de CV 139,157 St Shine Optical Co Ltd 126,639 Kasikornbank PCL NVDR 116,134 TAV Havalimanlari Holding AS 112,691 SACI Falabella SA 111,168 Reliance Industries Ltd 107,692 Merida Industry Co Ltd 105,526 Housing Development Finance Corp Ltd 101,792 Chailease Holding Co Ltd 100,496 X5 Retail Group NV GDR 99,589 Robinsons Retail Holdings Inc 96,507 Wal-Mart de Mexico SAB de CV 94,773 Grupo Aeroportuario del Centro Norte SAB de CV 93,497 Kroton Educacional SA 92,220 Al Noor Hospitals Group Plc 91,702 Want Want China Holdings Ltd 88,439 ICICI Bank Ltd 86,390 The Foschini Group Ltd 83,230 Bank Central Asia Tbk PT 82,573 BB Seguridade Participacoes SA 80,497 TAL Education Group ADR 79,044 Adani Ports and Special Economic Zone Ltd 75,224 LG Household & Health Care Ltd 71,903 Itau Unibanco Holding SA ADR 69,668 Localiza Rent A Car NPV 68,586 Nampak Ltd 68,030 Life Healthcare Group Holdings Ltd 67,712 Guaranty Trust Bank Plc 64,876 Ultrapar Participacoes SA 64,372 Magnit PJSC 62,848 Advanced Info Service PCL 61,055
62 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Latin American Fund
Largest Purchases Cost € Banco Bradesco SA ADR 639,812 Itau Unibanco Holding SA ADR 355,529 WEG SA 261,526 Ambev SA ADR 207,173 Hypermarcas SA 146,481 BR Malls Participacoes SA 113,888 Lojas Renner SA 111,351 Cielo SA 102,013 Grupo Herdez SAB de CV 95,978 Mahle-Metal Leve SA 84,180 BM&FBovespa SA - Bolsa de Valores Mercadorias e Futuros 71,803 Empresa Nacional de Electricidad SA 63,686 Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA 44,283 BB Seguridade Participacoes SA 42,696 Grupo Televisa SAB ADR 41,351 Credicorp Ltd 38,110 Gentera SAB de CV 32,164 Raia Drogasil SA 26,603 Klabin SA 23,506 Linx SA 17,496
63 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Latin American Fund continued
Largest Sales Proceeds € Itau Unibanco Holding SA ADR 1,416,464 Fomento Economico Mexicano SAB de CV ADR 852,107 Ambev SA ADR 816,777 Grupo Financiero Banorte SAB de CV 707,065 Credicorp Ltd 598,403 BB Seguridade Participacoes SA 560,679 SACI Falabella 532,573 Grupo Aeroportuario del Centro Norte SAB de CV 459,039 Cielo SA 447,257 Ultrapar Participacoes SA 441,972 Wal-Mart de Mexico SAB de CV 441,584 Grupo Televisa SAB ADR 428,760 Kroton Educacional SA 405,790 Fibra Uno Administracion SA de CV 405,712 Banco Bradesco SA ADR 376,599 BRF SA ADR 353,736 Promotora y Operadora de Infraestructura SAB de CV 353,195 Infraestructura Energetica Nova SAB de CV 331,683 Alsea SAB de CV 310,002 Gentera SAB de CV 271,732 Bolsa Mexicana de Valores SAB de CV 267,595 Lojas Renner SA 250,613 BR Malls Participacoes SA 249,054 Raia Drogasil SA 246,824 Nemak SAB de CV 243,539 Klabin SA 241,364 BM&FBovespa SA - Bolsa de Valores Mercadorias e Futuros 237,493 Corp Inmobiliaria Vesta SAB de CV 233,232 Banco de Chile 228,112 Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA 216,146 Cemex Latam Holdings SA 215,500 Cemex SAB de CV ADR 210,138 Grupo Rotoplas SAB de CV 208,364 Linx SA 205,087 Grupo Mexico SAB de CV 201,435 Smiles SA 200,785 Suzano Papel e Celulose SA 199,844 Alfa SAB de CV 198,794 Localiza Rent A Car NPV 185,796 WEG SA 183,304 Atento SA 177,338
64 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Africa Fund
Largest Purchases Cost € Orascom Construction Ltd 593,921 Naspers Ltd 568,252 Orascom Construction Ltd 300,582 Rhodes Food Group Pty Ltd 294,401 Egyptian Financial Group-Hermes Holding Co 292,347 Centamin Plc 212,278 Edita Food Industries SAE GDR 177,824 AngloGold Ashanti Ltd 157,120 Cie Financiere Richemont SA 145,175 Egyptian Financial Group-Hermes Holding Co 136,325 Co-operative Bank of Kenya Ltd 104,060 Ascendis Health Ltd 101,606 Safaricom Ltd 75,572 Aspen Pharmacare Holdings Ltd 61,123 Foschini Group Ltd 54,409 Umeme Ltd 49,631 AVI Ltd 43,513 Holdsport Ltd 42,156 Group Five Ltd 37,450 Curro Holdings Ltd 29,655
65 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Africa Fund continued
Largest Sales Proceeds € Naspers Ltd 938,895 Orascom Construction Ltd 594,151 Sabmiller Plc 395,510 Orascom Construction Ltd 304,892 Zenith Bank Plc 255,812 MTN Group Ltd 227,694 Foschini Group Ltd 230,592 Integrated Diagnostics Holdings Plc 217,204 Co-operative Bank of Kenya Ltd 211,932 ElSewedy Electric Co 211,032 Halwani Brothers Co P-Note Goldman Sachs 207,044 Edita Food Industries SAE GDR 202,795 Lewis Group Ltd 201,691 Sanlam Ltd 190,887 Edita Food Industries SAE GDR 177,952 Nestle Nigeria Plc 176,991 Sasol Ltd 164,735 Egyptian Financial Group-Hermes Holding Co 146,668 Cie Financiere Richemont SA 138,769 Woolworths Holdings Ltd 138,645 Life Healthcare Group Holdings Ltd 129,978 Centamin Plc 125,223 FirstRand Ltd 120,161 Guaranty Trust Bank Plc 106,534 Letshego Holdings Ltd 92,802 Holdsport Ltd 81,643 Group Five Ltd 75,606
66 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna MENA Fund
Largest Purchases Cost € Commercial International Bank Egypt SAE GDR 2,182,043 Dubai Parks & Resorts PJSC 1,464,845 NMC Health Plc 1,195,618 Tawuniya Co for Cooperative Insurance P-Note JP Morgan 1,181,016 Commercial International Bank Egypt SAE GDR 1,131,967 Edita Food Industries SAE GDR 1,028,944 Edita Food Industries SAE GDR 797,136 Middle East Healthcare Co P-Note Credit Suisse 603,119 Agthia Group PJSC 501,077 Al Meera Consumer Goods Co QSC 456,650 Middle East Healthcare Co P-Note HSBC 415,193 Dallah Healthcare Holding P-Note Credit Suisse 382,731 Saudi HW P-Note JP Morgan 345,237 National Medical Care Co - Call 0.00000, 11 May 2017 319,586 Dallah Healthcare Holding P-Note Credit Suisse 245,512 Fawaz Abdulaziz Al Hokair & Co P-Note Credit Suisse 205,819 Egyptian Financial Group-Hermes Holding Co 201,878 Bupa Arabia for Cooperative Insurance Co P-Note HSBC 192,964 Saudi Dairy & Foodstuff Co P-Note HSBC 160,667 Abdullah Al Othaim Markets P-Note Morgan Stanley 129,852
67 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna MENA Fund continued
Largest Sales Proceeds € Commercial International Bank Egypt SAE GDR 2,095,744 NMC Health Plc 1,891,826 Edita Food Industries SAE GDR 1,588,119 Commercial International Bank Egypt SAE GDR 1,191,313 Co for Cooperative Insurance - Call 18.4085, 11 May 2017 1,100,695 Integrated Diagnostics Holdings Plc 977,509 Al Noor Hospitals Group Plc 965,523 Bupa Arabia for Cooperative Insurance Co P-Note Deutsche Bank 847,925 Edita Food Industries SAE GDR 798,028 Dallah Healthcare Holding P-Note Credit Suisse 674,031 Air Arabia PJSC 445,253 Samba Financial Group P-Note Goldman Sachs 396,138 Hikma Pharmaceuticals Plc 354,903 Mezzan Holding Co KSCC 348,802 Emaar Properties PJSC 336,513 Ras Al Khaimah Ceramics 303,587 Arab National Bank P-Note Goldman Sachs 298,313 Aramex PJSC - Call 0.00000, 16 December 2016 282,224 Bupa Arabia for Cooperative Insurance Co P-Note HSBC 275,123 Dubai Islamic Bank PJSC 266,639 United International Transportation P-Note HSBC 253,825 Al Hassan GI Shaker Co P-Note Morgan Stanley 226,604 DAMAC Properties Dubai Co PJSC 224,190 National Bank of Kuwait SAKP 217,000 National Medical Care P-Note HSBC 208,818
68 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Undervalued Assets Fund*
All Sales Proceeds € DWS Vietnam Fund Ltd 260,463 Fondul Proprietatea SA 197,949 China Merchants China Direct Investments Ltd 157,969 HSBC China Dragon Fund 142,453 Quality Houses PCL 138,358 Symphony International Holdings Ltd 124,337 Weiss Korea Opportunity Fund Ltd 119,068 Grupo Mexico SAB de CV 116,758 Arc Capital Holdings Ltd 108,501 Intouch Holdings PCL 102,884 Gamuda BHD 99,458 Naspers Ltd 96,845 K Wah International Holdings Ltd 94,184 SOHO China Ltd 93,954 Bombay Dyeing & Manufacturing Co Ltd P-Note Deutsche Bank AG 91,918 Aseana Properties Ltd 90,101 Major Cineplex Group Plc 86,985 Vietnam Infrastructure Ltd 83,106 Vietnam Infrastructure Ltd 81,393 South African Property Opportunities Plc 61,867 Cosan Ltd 55,716 YGM Trading Ltd 46,733
* Magna Undervalued Assets Fund was fully redeemed on 29 January 2016.
69 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Emerging Markets Dividend Fund
All Purchases Cost € China Mobile Ltd 4,692,276 Samsung Electronics Co Ltd 4,293,709 PhosAgro OJSC GDR 4,249,363 Empresa Nacional de Electricidad SA 3,467,257 China Pacific Insurance Group Co Ltd 3,323,658 AES Tiete Energia SA 2,955,291 Tofas Turk Otomobil Fabrikasi AS 2,664,836 Sands China Ltd 2,219,115 Hyundai Motor Co 1,685,160 Bharti Infratel Ltd 1,655,604 Indiabulls Housing Finance Ltd 1,456,635 China Construction Bank Corp 1,448,211 E.Sun Financial Holding Co Ltd 843,076 Coal India Ltd 523,154 Mahle-Metal Leve SA 487,905 Lewis Group Ltd 449,791 Power Grid Corp of India Ltd 436,462 Moscow Exchange MICEX - RTS OAO 340,180
70 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Emerging Markets Dividend Fund continued
All Sales Proceeds € Hengan International Group Co Ltd 8,290,144 Life Healthcare Group Holdings Ltd 5,807,873 Nampak Ltd 4,358,596 Old Mutual Plc 3,953,347 Hyundai Motor Co 3,483,752 Ultrapar Participacoes SA 3,201,181 Want Want China Holdings Ltd 3,005,090 Fibra Uno Administracion SA de CV 2,611,506 Saudi Investment Group P-Note HSBC 2,607,443 Taiwan Semiconductor Manufacturing Co Ltd 2,570,687 Moscow Exchange MICEX - RTS OAO 2,052,109 St Shine Optical Co Ltd 1,914,611 Merida Industry Co Ltd 1,830,519 Bolsa Mexicana de Valores SAB de CV 1,752,383 Grupo Aeroportuario del Centro Norte SAB de CV 1,529,275 BM&FBovespa SA - Bolsa de Valores Mercadorias e Futuros 1,419,515 Astro Malaysia Holdings Bhd 1,303,846 Banco de Chile 1,132,403 Endesa Americas SA NPV 1,123,551 TAV Havalimanlari Holding AS 1,057,141 CTCI Corp 919,348 Smiles SA 887,376 China Construction Bank Corp 864,276 Coal India Ltd 848,594 Chailease Holding Co Ltd 843,176 Sands China Ltd 829,012 Wal-Mart de Mexico SAB de CV 651,335 Lewis Group Ltd 624,413
71 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna New Frontiers Fund
Largest Purchases Cost € BGEO Group Plc 1,432,087 Societatea Nationala de Gaze Naturale ROMGAZ SA 1,374,623 Amarex Option 1,228,001 NMC Health Plc 1,179,245 Vietnam Dairy Products JSC 1,005,490 Grupo Supervielle SA ADR 962,335 DG Khan Cement Co Ltd 889,092 Banca Transilvania SA 792,217 Luxoft Holding Inc 790,644 Georgia Healthcare Group Plc 772,196 Habib Bank Ltd 771,699 Kohinoor Textile Mills Ltd 669,803 Military Commercial Joint Stock Bank 609,710 Emirates Option 588,597 Engro Foods Ltd 557,302 Dragon Capital - Vietnam Enterprise Investments Ltd 516,847 Lucky Cement Ltd 500,113 Transgaz SA Medias 478,609 United Bank Ltd 437,803 Engro Fertilizers Ltd 406,009 Xurpas Inc 393,725 Cemex Holdings Philippines Inc 374,943 Bupa Arabia for Cooperative P-Note HSBC 367,622 Co for Cooperative Insurance 366,799 Emirates NBD PJSC 356,214 Maple Leaf Cement Factory Ltd 346,009 Grupo Clarin SA GDR 341,855 Abu Dhabi Commercial Bank PJSC 336,432 Sampath Bank Plc 320,068 Halyk Savings Bank of Kazakhstan JSC GDR 317,649 Hatton National Bank Plc 307,835 Saudi Telecom P-Note Deutsche Bank 280,047 Metro Retail Stores Group Inc 233,181 Electrica SA 225,412 National Central Cooling Co PJSC 224,698 MCB Bank Ltd 222,053
72 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna New Frontiers Fund continued
Largest Sales Proceeds € BGEO Group Plc 1,091,410 NMC Health Plc 856,575 Al Noor Hospitals Group Plc 731,144 National Bank of Kuwait SAKP 522,519 Kuwait Projects Co Holding KSCP 490,299 Al Mouwasat Medical Services P-Note Credit Suisse 378,737 Banca Transilvania SA 334,323 Tallink Grupp AS 288,013 Saudi Telecom P-Note Deutsche Bank 267,544 Air Arabia PJSC 247,080 NagaCorp Ltd 219,060 Al Khaleej Training and Education P-Note Credit Suisse 193,710 DP World Ltd 190,813 Engro Foods Ltd 176,989 Integrated Diagnostics Holdings Plc 165,576 Saudi Telecom P-Note Deutsche Bank 165,118 Commercial International Bank Egypt SAE GDR 157,546 Edita Food Industries SAE GDR 151,617 Xurpas Inc 113,611 Emaar Properties PJSC 92,404 Georgia Healthcare Group Plc 86,050 Puregold Price Club Inc 82,113
73 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Biopharma Income Fund
All Purchases Cost € Akorn Inc 313,934 AbbVie Inc 291,231 Fresenius Medical Care AG & Co KGaA 277,084 Lannett Co Inc 252,660 Waters Corp 211,331 Alexion Pharmaceuticals Inc 189,848 Adamas Pharmaceuticals Inc 176,864 Gilead Sciences Inc 147,353 Express Scripts Holding Co 142,805 DexCom Inc 134,043 Impax Laboratories Inc 124,615 Illumina Inc 118,013 Bristol-Myers Squibb Co 107,618 Celgene Corp 101,510 Smith & Nephew Plc 71,630 ABIOMED Inc 71,521 Edwards Lifesciences Corp 71,482 Eagle Pharmaceuticals Inc 71,072 Allergan Plc 59,966 Cardinal Health Inc 36,058
74 Magna Umbrella Fund plc Interim Report for the period 1 January 2016 to 30 June 2016
Portfolio Movements continued
Magna Biopharma Income Fund continued
All Sales Proceeds € AbbVie Inc 528,912 Novartis AG 403,843 Illumina Inc 329,956 Merck & Co Inc 231,881 Lannett Co Inc 212,246 CSL Ltd 176,534 Becton Dickinson and Co 166,048 VWR Corp 141,502 Chugai Pharmaceutical Co Ltd 133,752 Allergan Plc 128,737 Akorn Inc 125,365 Incyte Corp 124,895 Adamas Pharmaceuticals Inc 118,706 Regeneron Pharmaceuticals Inc 83,614 Momenta Pharmaceuticals Inc 73,312 Medivation Inc 71,142 Waters Corp 68,975 Fresenius Medical Care AG & Co KGaA 68,557 Eagle Pharmaceuticals Inc 49,866 Pfizer Inc 37,091 Bristol-Myers Squibb Co 36,055 Medtronic Plc 35,044 Roche Holding AG 34,696
75
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