NATIXIS INVESTMENT MANAGERS INTERNATIONAL
UCITS under French law
MIROVA EUROPE ENVIRONNEMENT The UCITS is a feeder fund for the master UCI, MIROVA EUROPE ENVIRONMENTAL EQUITY FUND
ANNUAL REPORT as at 31 December 2019
Management Company: Natixis Investment Managers International
Depositary: Caceis Bank
Statutory Auditor: MAZARS
Natixis Investment Managers International 43 avenue Pierre Mendès France – 75013 Paris, France – Tel.: +33 (0)1 78 40 80 00 www.im.natixis.com NATIXIS INVESTMENT MANAGERS INTERNATIONAL
Contents
Page
1. Management report 3
a) Investment policy 3
Management policy
b) Information regarding the UCI 5
Main changes during the financial year
Substantial changes occurring during the financial year and in the future
Index-linked UCI
Alternative funds of funds
SFTR
Access to documentation
c) Information regarding risks 6
Total risk calculation method
Exposure to securitisation
Risk management
Cash management
Handling of non-liquid assets
d) Environmental, social and governance (ESG) criteria 7
e) French Law on the Energy Transition for Green Growth 10
2. Governance and compliance commitments 12
3. Fees and taxation 23
4. Statutory Auditor’s certification 24
5. Annual financial statements 30
6. Appendices 47
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1. Management report
a) Investment Guidelines
Management policy
The MIROVA EUROPE ENVIRONNEMENT fund/sub-fund invests all its assets in M/D (EUR) units/shares of the master UCI MIROVA EUROPE ENVIRONMENTAL EQUITY FUND, and, on an ancillary basis, in cash.
2018 was a year characterised by solid growth, although it was also affected by adverse market developments. 2019, too, was an exceptional year, marked by strong equity market growth. The MSCI Europe index rose by 26.05%. The Environnement fund significantly outperformed the overall index of the European markets.
Several favourable factors gave rise to this increase, the first of which was the US Fed's change in monetary policy early in the year. The other central banks quickly followed suit, creating accommodative monetary policies, pushing rates to historic lows. This shift marked a turning point for equity markets, which were buoyed up by the “Powell Put” and headed for new record highs. Technically, the rise in equity markets was driven by multiple expansion, but also by the attractiveness of equity returns (~3%) and the moderate rise in profits.
Indeed, uncertainties weighing on growth were front and centre in 2019 due to the trade war between the United States and China, which continued to escalate after Trump imposed new tariffs in September. In addition to the trade exchange tensions, geopolitical risks mounted in the Middle East, notably after the drone strike on the oil processing facilities in Saudi Arabia, which led to a disruption in the oil production chain. In Europe, the risk of a “hard Brexit” increased in September 2019, pushed by Boris Johnson’s political agenda. However, in December, the political uncertainty reduced after Boris Johnson won the general election.
All of the sectors exposed to eco-activities contributed positively to the fund's performance. In particular, low-carbon energy significantly outperformed the index (+3.72%). Top contributors include Vestas, Voltalia and Halma. In broader terms, Buildings, Mobility, Resources and Technologies greatly contributed to the performance. In Buildings, the securities of the portfolio offer a superior growth dynamic (Nibe, Polypipe, Kingspan) and performed well. In Technologies, Dassault Système and ASML are major performance drivers. In Materials, Symrise and Ecolab, and in Resource management. Thermo Fisher Scientific, continue to regularly outperform. The only disappointment during the year was the Consumption stocks, which were abandoned due to rather disappointing publications (e.g. Bonduelle, Chr. Hansen). The quality of stock selection remains at the heart of the management process, and is the main performance driver.
During the year, management gradually increased the fund's exposure to eco-activities beyond the minimum threshold of 75% required by the Greenfin Label, resulting in an exposure of over 79% at the end of 2019. The group will continue to increase its eco-activities in 2020. In response to the targets set in the 2015 Paris Agreement, the portfolio is committed to limiting global warming by investing in green technologies. With this in mind, in 2019, assessments showed that the portfolio's carbon impact remains compatible with a 1.5°C scenario.
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1. Management report
The Mirova Europe Environnement feeder fund shows an increase in units: Mirova Europe Environnement (Euro MD Unit): + 33.83%
Each unit performed as follows: N(C): 32.63% R(C): 32% R(D): 31.91%
Past performance is no guarantee of future results.
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1. Management report
b) Information regarding the UCI
Main changes to the portfolio during the financial year
Changes (“Accounting currency”) Securities Purchases Sales
MIROVA EURP ENV EQ FD MD EUR 124,174,673.22 25,943,266.65
Substantial changes occurring during the financial year and in the future
There are no substantial changes in this UCI.
Index-linked UCI
This UCI is not included in the classification of index-linked UCIs.
Alternative funds of funds
This UCI is not included in the classification of alternative funds of funds.
SFTR in EUR
The UCI did not conduct any transactions during the financial year that fall within the scope of the SFTR.
Access to documentation
You may access the legal documentation of the fund (KIID, prospectus, periodic reports, etc.) by contacting the management company at its head office or via the following e-mail address: [email protected].
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1. Management report
c) Information on risks
Total risk calculation method
The management company uses the commitment method to measure the overall risk of this fund.
Exposure to securitisation
This UCI is not affected by exposure to securitisation.
Risk management
None.
Cash management
None.
Handling of non-liquid assets
Not applicable to this UCI.
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1. Management report
d) Environmental, social and governance (ESG) criteria
Our approach to ESG criteria
The ESG analysis developed by Mirova has the dual objective of prioritising companies that contribute to the transition to a sustainable economy whilst also delivering good financial performance.
Mirova is guided by the United Nations’ Sustainable Development Goals (SDGs), which were unanimously adopted in September 2015 by 193 Heads of State and Government at the summit at the UN headquarters in New York. Funding the SDGs not only requires financial investment, but also a new type of research and investment tools that are entirely dedicated to sustainable development. In other words, the market economy must change to better support human development and to integrate more successfully with the environment.
The following main challenges are analysed:
Governance Environment Social Sustainable development Economic - Suitability of the mode of governance for a long-term - Climate - Basic needs - Management quality company vision - Ecosystems - Well-being - Balance of powers - Balance of value distribution - Resources - Decent work - Quality of financial reporting - Compliance with business ethics
Analysis principles
Environmental and social challenges are tailored to each sector. Governance criteria are considered as a key means of supporting environmental, social and economic performance.
Our proprietary ESG evaluation system is based on an absolute, qualitative analysis which differentiates sectors according to their degree of exposure to sustainable development issues (i.e. level of impact, potential drivers of improvement). Our recommendations are generally positive for sectors offering sustainable development solutions (players in the solar industry, for example) and generally negative for those that increase risks (tobacco, weapons, etc.). The challenges are targeted and differentiated by sector so as to focus on a limited number of challenges, tailored to the specific features of each asset under review. Mirova also analyses the life cycle as a whole, which enables it to assess ESG risks, and at the same time identify opportunities such as business models that offer solutions to the major challenges for sustainable development.
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1. Management report
For each private issuer, the research team produces an ESG evaluation which considers:
a review of opportunities, to assess whether the company’s business activity is suited to dealing with the challenges of sustainable development (e.g. by offering products and services that improve energy efficiency); a review of ESG risks, to assess the way in which a business responds to ESG issues, regardless of its area of activity (e.g. by looking at its occupational safety policy).
There are five levels to the ESG evaluation: Negative, Risky, Neutral, Positive, Committed.
The TEEC label officially became the “Greenfin” label last June.
The Fund was awarded the TEEC label.
The “Transition Énergétique et Écologique pour le Climat” (“Energy and Environmental Transition for the Climate” – TEEC) label is one of the public policies resulting from the August 2015 law on the energy transition for green growth. The TEEC label identifies investment funds that fund the green economy and encourages the setting up of new green funds. Find out more at http://www.consultations-publiques.developpement-durable.gouv.fr/IMG/pdf/150922- LabelTEE_Referentiel.pdf.
The “Greenfin” label was created by the Ministry of the Environment, Energy and the Sea in order to mobilise savings towards the energy and ecological transition. It is in line with the public policies called for in the law on the energy transition for green growth of August 2015.
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1. Management report
The Fund was awarded the SRI label.
Created in early 2016 by the French Ministry of Finance and Public Accounts, with the support of Asset Management professionals, the label aims to raise the profile of SRI (Socially Responsible Investment) management approaches for savers. It helps investors to more easily identify investment products that include environmental, social and governance (ESG) criteria in their investment guidelines. A fund with the SRI label has to meet numerous requirements:
Transparency vis-à-vis investors (objectives, analyses, processes, corporate assets, etc.), Portfolio selection that is based on proven ESG criteria, Management techniques that are in line with a long-term management philosophy, Coherent voting and commitment policies, Tangible positive impacts.
Find out more at www.lelabelisr.fr.
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1. Management report
e) French Law on the Energy Transition for Green Growth
■ BREAKDOWN BY ESG POSITION AS A % OF ■ CHANGE IN ESG SCORE
%
Committed 10.0 13% 9.0 Positive 8.0 52% 36% Neutral 7.0 6.0 Risky 5.0 Fund Negative 4.0 28% 3.0 Index Not monitored 48% 2.0 16% 1.0 7% 0.0
0% Fund Index
31/12/2018 31/01/2019 28/02/2019 29/03/2019 30/04/2019 31/05/2019 30/06/2019 31/07/2019 30/08/2019 30/09/2019 31/10/2019 29/11/2019
■ CHANGE IN THE POSITIVE AND COMMITTED POSITIONS
100% The ESG position measures the extent to which investments meet the United Nations 90% Sustainable Development Goals. - Committed: Makes a significant contribution to achieving the Sustainable 80% Development Goals 70% - Positive: Makes a positive contribution to achieving the Sustainable Development Goals 60% - Neutral: Complies with some Sustainable Development Goals, but the impact is 50% limited or not quantified Fund 40% - Risky: Hampers achievement of the Sustainable Development Goals - Negative: Seriously hampers achievement of the Sustainable Development Goals 30% Index - Worst offender: Serious violations of the United Nations Global Compact, with no 20% appropriate corrective measures in place 10% The analysis methodology is available on the Mirova website: 0% http://www.mirova.com/Content/Documents/Mirova/publications/VF/philoRecherche/Ml ROVA_Philosophie%20de%20recherche.pdf
31/01/2019 28/02/2019 29/03/2019 30/04/2019 31/05/2019 28/06/2019 31/07/2019 30/08/2019 30/09/2019 31/10/2019 29/11/2019 31/12/2019
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1. Management report
■ CARBON ASSESSMENT ■ CHANGE IN CARBON FOOTPRINT
Portfolio Index
6
5 1.5ºC 4.1ºC 4
3 ºC Fund
2 Emissions produced Emissions produced Index 104.2 220.0 (eq. CO2/EUR million) (eq. CO2/EUR million) 1 Emissions prevented Emissions prevented -68.4 -18.9 (eq. CO2/EUR million) (eq. CO2/EUR million) 0
Coverage (% held) 100% Coverage (% held) 100%
Coverage (number) 98% Coverage (number) 100%
31/01/2019 28/02/2019 29/03/2019 30/04/2019 31/05/2019 28/06/2019 31/07/2019 30/08/2019 30/09/2019 31/10/2019 29/11/2019 31/12/2019
In 2015, Mirova and Carbone 4 decided to go into partnership to devise a new methodology for assessing carbon impact in line with the challenges of a low-carbon economy: Carbon Impact Analytics (ClA). The CIA methodology focuses primarily on two indicators: a measure of emissions caused by the company's activity through a “life-cycle assessment” approach, taking account both of direct emissions and those of suppliers and products, a measure of emissions “avoided” through greater efficiency and the rollout of “green” solutions. These assessments are carried out by examining each company individually against an analytical framework tailored to each business sector. Companies with a significant impact on the climate are subject to particular scrutiny: energy producers, carbon-intensive sectors (heavy industry, construction and transport) and suppliers of low-carbon devices and solutions. These assessments are then aggregated at portfolio level by eliminating double counting of emissions. These data can be used to estimate the extent to which the portfolio’s activities comply with climate scenarios, on a scale of 2°C to 6°C: – A 2°C portfolio is on course to help limit global warming to under 2°C by 2100, complying with the objectives set by international agreements, particularly the 2015 Paris Agreement. – A 6°C portfolio sees the increase in greenhouse gas emissions continue, leading to dire consequences in terms of global warming. More information can be found on Mirova’s website: http://www.mirova.com/Content/Documents/Mirova/publications/VF/Etudes/MIRO\/A_Etude_Mesurer_methotialogie_Carbone_FP.pdf
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2. Governance and compliance commitments
. Procedure for selecting and assessing intermediaries and counterparties – Order execution
To enable the management company to meet its best execution obligation, the selection and monitoring of bond dealers, stockbrokers and counterparties is governed by a specific process. The management company’s policy regarding the selection of intermediaries/counterparties and order execution and can be found on its website at http://www.im.natixis.com.
. Voting policy
The latest annual report and details of the conditions under which the management company intends to exercise the voting rights associated with securities held in the portfolio by the funds it manages are available from the company’s registered office, or online at www.im.natixis.com.
. Remuneration policy of the delegating management company
1. General principles of the remuneration policy
The remuneration policy is a strategic aspect of Natixis Investment Managers International’s policy. As a tool to enhance employee motivation and commitment, it aims to be competitive and attractive in relation to the rest of the industry practices, while fully complying with key financial indicators and regulations. It is defined in such a way as to avoid creating situations that are likely to generate conflicts of interest between Natixis Investment Managers International’s employees and its customers.
The policy covers all components of remuneration. It distinguishes between fixed remuneration based on an evaluation of the skills required for the post and determined using market rates, and variable remuneration based on an evaluation of defined individual or collective performance criteria.
This performance assessment is based on quantitative and qualitative annual and multi-year performance criteria. Its fundamental principles incorporate the alignment of the interests of investors, employees and of Natixis Investment Managers International. It applies to all staff of Natixis Investment Managers International.
The remuneration policy is reviewed and approved each year to incorporate any regulatory and contextual changes, in line with the Natixis remuneration policy. As part of the monitoring and evaluation of the remuneration policy, the Compliance and Internal Control Officer at Natixis Investment Managers International approves the policy before it is rolled out. It is subject to an annual internal audit.
A report on the general principles of the remuneration policy is prepared annually for the members of the Works Council, the Board of Directors and all staff.
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2. Governance and compliance commitments
a. Definition of performance
Each employee's contribution and performance are assessed in accordance with their duties, tasks and level of responsibility in the company. In this context, the remuneration policy distinguishes several categories of staff:
The Executive Committee is evaluated on the basis of its contribution to defining and implementing the company’s strategy and its ability to improve the performance of products and services and financial results. For this category, performance is assessed annually.
Staff in supporting roles are appraised on the basis of their contribution to the achievement of the company’s strategic goals. Individual performance is assessed annually.
The performance of executives is assessed based on an evaluation of qualitative criteria that are defined annually to ensure that their independence is not compromised and to prevent conflicts of interest.
The performance of management is assessed on the basis of two quantitative criteria: the information ratio or Sharpe ratio (for absolute return portfolios) and the competitive ranking, together with one or more qualitative criteria.
Quantitative criteria will reflect progress towards the achievement of the investment returns sought by investors without resorting to excessive risk-taking that could adversely impact the risk profile of Natixis Investment Managers International and/or the products managed.
These quantitative criteria are calculated over a period of one year and three years to demonstrate the company's performance over time and to limit the impact of a one-off performance.
Performance evaluation always incorporates qualitative criteria. These include improving the reliability of a process, participating in a cross-disciplinary project, contributing to the development of new expertise, contributing to the development of operational efficiencies or any other aspects defined by the strategic objectives set out by Natixis Investment Managers International.
These qualitative objectives are defined and communicated at the start of each year.
These qualitative criteria also incorporate adherence to Natixis Investment Managers International’s risk and compliance rules.
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2. Governance and compliance commitments
b. Component of remuneration
i. Fixed remuneration
Fixed remuneration reflects the skills and expertise expected of an employee in performing their duties.
ii. Variable remuneration
Variable remuneration rewards annual collective or individual performance.
The collective variable remuneration of Natixis Investment Managers International consists of optional and mandatory employee profit-sharing schemes, in combination with an employee savings plan (plan d’épargne salariale, or PES) and a collective retirement savings plan (plan d’épargne pour la retraite collectif, or PERCO), whereby employees benefit from an employer matching contribution.
This collective variable remuneration has no incentive effect on Natixis Investment Managers International’s risk management and/or the products managed and is not covered by the AIFM or UCITS V Directives.
Individual variable remuneration is awarded on a discretionary basis in light of an evaluation of individual performance and the manner in which objectives were achieved. The variable remuneration awarded to employees is affected by any non-compliant risk-taking or failure to comply with internal procedures during the year under review.
Regulated employees and front-office employees are subject to specific obligations in terms of adherence to the rules on risks and compliance. A breach of these obligations may result in the partial reduction or revocation of the individual variable remuneration awarded.
In the event of a loss or significant decline in its results, Natixis Investment Managers International may also decide that amounts allocated to individual remuneration and, where appropriate, payments in the process of being made, may not be distributed or may be reduced for one or more years.
There is no contractual guarantee with regard to variable remuneration, with the occasional exception of variable remuneration awarded after the first year in the job as part of recruitment from outside the company.
Schemes such as “golden parachutes” are forbidden. Payments relating to the early termination of an employment contract are defined according to the legal provisions (legal and contractual indemnities) and the performance of the beneficiary, the area of the business to which they belong and the company as a whole.
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2. Governance and compliance commitments
iii. Key employee retention scheme
Natixis Investment Managers International wants to ensure that its investors benefit from continued service by its most talented employees, or those identified as key in terms of their commitment or contribution to results.
To achieve this, a system of deferred remuneration has been built into its remuneration policies.
Under this system, an additional variable remuneration amount is awarded in the form of cash indexed to the performance of an equally weighted portfolio of products managed by Ostrum Asset Management. It is vested in equal tranches over a minimum of three years, thereby giving employees a vested interest in the performance of Natixis Investment Managers International. It is conditional on continued employment and lack of any conduct inconsistent with the company’s standards that could impact the risk level of Natixis Investment Managers International and/or the products managed. Vesting of these tranches may be subject to a repayment commitment so as to ensure ex-post risk adjustment.
Amounts are awarded in light of performance evaluations and individual professional commitment over the year in question.
2. Implementation of the scheme applicable to regulated employees
In 2018, notwithstanding the provisions set out below, Natixis Investment Managers International shall apply the rules in force within the French branch of the Luxembourg management company Natixis Investment Managers S.A. for employees attached to this branch.
a. Identification of regulated employees
In accordance with the regulatory provisions, the HR department and the Compliance and Internal Control Officer determine and formally define the scope of the Natixis Investment Managers International regulated population at the beginning of the year.
Employees are identified according to their professional activities when these involve investment processes and/or employees who may have a significant individual impact on the risk profile of Natixis Investment Managers International and/or the products managed due to their decisions, or due to their level of total remuneration.
In order to maintain consistency and alignment, Natixis Investment Managers International decided to implement the system applicable to the regulated population across the full range of products managed (mandates, UCITS and AIFs).
Members of the Executive Committee are automatically included in the scope of regulated employees, as are managers for administrative or support functions (financial and operations managers) and supervisory managers (risk, compliance and control managers).
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2. Governance and compliance commitments
The scope of the regulated population is approved by general management and archived by the Human Resources Department. The employees in question are notified of their status.
The scope of the regulated employee population at Natixis Investment Managers International is presented to the Natixis Remuneration Committee.
The scope of the regulated population may be reviewed during the year in the event that an external candidate is recruited or there is an internal appointment, or when new activities or new management processes are launched.
b. Mechanism applicable to variable remuneration awarded to regulated employees
The variable remuneration of regulated employees is subject to deferred terms, and awarded half in cash and half in the form of an equivalent financial instrument.
The threshold for awarding deferred remuneration is set annually within the limits authorised by the AMF. It may be reviewed (downwards only) based on regulatory directives or changes to HR policies. In this case, the new threshold is approved by the Executive Committee of Natixis Investment Managers International and the Natixis Remuneration Committee. For the highest levels of remuneration at Natixis Investment Managers International, the deferred proportion in the form of an equivalent financial instrument may be up to 60%.
In order to guarantee alignment between employees and investors, the deferred variable remuneration component is granted in the form of cash indexed to the performance of a portfolio of products managed by Ostrum Asset Management. It is vested after a minimum of three annual carry-forward periods, conditional on continued employment and lack of any conduct inconsistent with the company’s standards that may impact the level of risk of Natixis Investment Managers International and/or the products managed.
These vesting items are also subject to obligations in terms of adherence to the rules on risks and compliance. Breach of these obligations may result in the reduction or rescindment of said items. They may also be subject to a repayment commitment so as to ensure ex-post risk adjustment.
Employees awarded deferred variable remuneration are prohibited from using individual hedging or insurance strategies for the entire vesting period.
3. Governance
The general and specific principles of the remuneration policy are defined and documented by the Human Resources Department and then submitted for validation by the Compliance and Internal Control Officer at Natixis Investment Managers International.
They are validated and approved in turn by the members of the Natixis Investment Managers International Executive Committee and the General Management of Natixis Investment Managers and Natixis.
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2. Governance and compliance commitments
The general and specific principles of the remuneration policy are communicated in-house to all employees by HR announcements, including via the intranet, and to members of the Works Council through an annual information meeting.
The general and specific principles of the remuneration policy for regulated employees, the rules for its application and summary figures are presented annually, together with the annual remuneration package for executives, to the Board of Directors of Natixis Investment Managers International.
The Chief Executive Officer’s remuneration is determined by the General Management of Natixis Investment Managers and Natixis and is submitted to the Natixis Remuneration Committee for approval by the Board of Directors of Natixis.
When Natixis Investment Managers International delegates the financial management of one of the portfolios for which it is the management company to another management company, it shall ensure that the said delegate company complies with the regulations in force.
Remuneration paid during the last financial year
The total remuneration for the financial year paid by the management company to its staff and broken down into fixed and variable remuneration, the number of beneficiaries and, where appropriate, the carried interest paid by the portfolios, is as follows:
Fixed remuneration for 2018: €22,161,467 Variable remuneration awarded for 2018: €11,582,073 Employees concerned: 325.
The aggregate amount of remuneration, broken down between the senior executives and members of staff of the management company whose activities have a significant impact on the risk profile of the management company and/or portfolios is as follows:
Total remuneration awarded for 2018: €8,840,581, of which: - Senior executives: €4,343,926 - Members of staff: €4,496,655
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2. Governance and compliance commitments
. Remuneration policy of the delegate management company
The Mirova remuneration policy is established in accordance with AIFM Directive 2011/61/EU, AMF Position 2013-11 “Remuneration Policies for Alternative Investment Fund Managers”, and the reference texts of the AMF and of the French Monetary and Financial Code.
1. General principles
The remuneration policy is based on skills assessment and on quantitative and qualitative annual and multi-year performance criteria. Into its fundamental principles, it incorporates the alignment of interests of investors, employees and Mirova. It applies to all Mirova staff.
The remuneration policy differentiates between fixed remuneration, determined on the basis of market standards, and variable remuneration, linked to the evaluation of set individual or collective performance criteria. The remuneration policy is defined and documented by the Human Resources Department and members of the Mirova executive committee. It is approved by Natixis Investment Managers, reviewed annually and submitted for the approval of Mirova’s Head of Internal Control and Compliance (HICC). Its general principles are the subject of an annual information report to members of the Works Council, the Board of Directors and all staff. Natixis Investment Managers monitors the application of this policy.
2. Components of remuneration
The remuneration policy endeavours to maintain a balance between the percentages of fixed and variable remuneration, with the Human Resources Department being responsible. Fixed salaries are reassessed and the allocation of variable remuneration is analysed once a year as part of the promotion process.
a. Fixed remuneration
Fixed remuneration reflects the skills and expertise expected of an employee in the performance of their duties.
b. Variable remuneration
Variable remuneration rewards annual collective or individual performance.
Variable remuneration is governed by an overall budget set annually by the general management of Mirova and approved by the general management of Natixis and Natixis Investment Managers. This overall package of variable remuneration represents a redistribution percentage applied to the earnings before tax (EBT) of Mirova and the activities it controls. In the event of losses or a significant drop in Mirova’s performance, the package earmarked for individual remuneration and potentially any outstanding payments may be reconsidered and reduced.
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2. Governance and compliance commitments
Currently, collective variable remuneration consists of optional and mandatory profit-sharing, the company savings plan (PES) and the retirement savings plan (PERCO), reserved capital increases pursuant to the Mauve scheme, or any other future contractual scheme allocated on a non-discretionary basis to allow all employees to share in the profits of Mirova or Natixis. They have no incentive effect on the management of Mirova's risks and/or the products managed, and do not fall within the scope of the AIFM or UCITS V directives.
Individual variable remuneration is allocated on a discretionary basis with respect to the assessment of individual performance reflected in the achievement of predetermined quantitative and/or qualitative goals. It may include an element of non-material benefit in kind, linked to the allocation of a vehicle. Unregulated staff are paid entirely in cash and remuneration is allocated on a selective basis, which varies from one year to the next, based on performance criteria. The variable remuneration awarded to employees is affected by any non-compliant risk-taking or failure to comply with internal procedures during the year under review. Variable remuneration is not contractually guaranteed.
c. Key employee retention scheme
Mirova wishes to guarantee its investors the stability of key employees through a retention mechanism built into the remuneration policies that allows for a certain amount of additional variable remuneration, awarded in the form of units indexed to the variation of the EBT of Mirova and of the activities that it controls, vested in equal tranches over a minimum of three years. This gives employees a stake in the results of the company, conditional on their continued employment. Amounts are awarded in light of performance evaluations and individual professional commitment over the year in question. The allocation for the retention scheme is included in the overall budget for variable remuneration.
Carried interest
Carried interest represents loyalty building and the alignment of the interests of investors with those of the employees in question by way of a deferred payment. Requiring that a minimum personal financial risk be taken on by the employees in question, depending on the size of the fund, it results in the acquisition of fund units. The remuneration for units acquired is then conditional upon the creation of a capital gain and a minimum positive return on the ordinary units of the fund’s investors. It is reserved for employees on the investment team for infrastructure fund activities.
3. Evaluation of collective and individual performance
Employees’ contribution and level of performance are evaluated in light of their roles, tasks and level of responsibility within the company. There are several distinct categories of staff: The executive committee is evaluated on the basis of its contribution to defining and implementing of the company’s strategy and on its ability to improve the performance of products and services and the financial results. Performance is assessed annually. The sales support and development roles are evaluated on their ability to hit qualitative and quantitative targets for sales development. These quantitative objectives are defined and communicated at the start of each year.
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2. Governance and compliance commitments
The control functions are evaluated based on the assessment of qualitative criteria defined annually, to ensure that their independence is not compromised and prevent conflicts of interest. Management functions are assessed in a different way, depending on the type of portfolio managed. The quantitative criteria used shall reflect the issues of development of management performances sought by investors, without resorting to excessive risk-taking that could adversely affect the risk profile of Mirova and/or the products managed. For teams managing funds invested in listed securities (equities and bonds), the assessment is based on two quantitative criteria: - average management performance measured by analysis of the spread against benchmark indices, - competitive ranking, supplemented by one or more qualitative criteria. Performance spreads in relation to benchmark indices are calculated over a period of one and three years for all products belonging to Mirova’s GIPS composites. The performance of managers is assessed by comparing this indicator against the outperformance objective for each product. Specific attention is paid to compliance with risk constraints for products as set out in management processes. The competitive ranking results from Morningstar’s rankings expressed in deciles and calculated over a period of one and three years. Management performance is reflected in the position of the products managed. These quantitative criteria are calculated over a period of one year and three years to demonstrate the company's performance over time and to limit the impact of a one-off performance. They are supplied to Mirova by the reporting department and competitive intelligence service and are monitored and validated by the HICC. For teams managing infrastructure funds, performance can only be measured over a long period, depending on the duration of the funds, which may exceed ten years. For this reason, management quality is assessed qualitatively, based on the quality and diversification of the portfolio, the number and amount of investments made during the year, along with analysis of the performance of the assets held in portfolios (no default or solvency problems, stability of cash flow, etc.). Infrastructure teams are also assessed on their ability to raise funds from investors. The annual volume collected during the fundraising phase is used as a quantitative criterion.
4. Implementation of the scheme applicable to regulated employees
a. Identification of regulated employees
In accordance with the regulatory provisions, at the beginning of the year the HRD and HICC draft and formalise the list of the “regulated” population, i.e. those employees whose decisions may individually have a significant impact on Mirova’s risk profile and/or that of the products managed, bearing in mind that the members of the Executive Committee are automatically included in this population, along with the management functions for support activities, supervisory management functions (risks, compliance and auditing), and the voting members serving on investment committees for infrastructure funds. Identification of the management and risk functions falling within the scope of the regulated employees is undertaken annually by the HR Department and the HICC (Head of Internal Control, Compliance and Risk) using the management process mapping. General management approves the scope of the entire group of regulated employees.
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2. Governance and compliance commitments
b. Mechanism applicable to variable remuneration awarded to regulated employees
Variable remuneration and, if applicable, the retention scheme for regulated employees are generally allocated half in cash and the other half in the form of an equivalent financial instrument. For the lowest variable remuneration bracket, falling below an annually defined threshold, the deferred component does not apply. The list of employees concerned is approved by the HICC – Head of Internal Control, Compliance and Risk. For Mirova's highest remuneration bracket, the deferred component, in the form of an equivalent financial instrument, may be up to 60%.
The alignment of risk-taking and the interests of regulated employees on the one hand, and Mirova on the other, is reflected in the payment of a portion of the variable remuneration in the form of units indexed to the EBT of Mirova, and the activities it manages, vested after a minimum of three annual carry-forward periods and subject to conditions of continued employment, freedom from misconduct or wilful fraudulent misconduct, professional misconduct, or conduct not meeting the principles and rules set out in Mirova’s Code of Ethics and procedures that may impact the risk level of Mirova and/or the products managed.
Furthermore, the alignment of interests involves the use of an indexation clause applied to the number of units on expiry of each carry-forward period. This clause is based on the evaluation of a criterion calculated at the end of the year following the award for the first carry-forward, at the end of the second year following the award for the second carry- forward and so on: For asset managers of listed equity or bond portfolios, this criterion is calculated based on the performance spread against benchmarks at the end of the year following the award for the first carry-forward, at the end of the second year following the award for the second carry-forward, and so on. A significant underperformance in relation to this criterion shall trigger a reduction of between 10% and 100% of the number of units vested.
For infrastructure managers, the criterion used is that of “end of function” of the fund’s management company – i.e. the decision of investors to split from the management company. This end-of-function criterion is subject to a clause, the terms of which are set out in the fund's prospectus, and is based on two separate grounds: ○ an “end-of-function without fault” clause, ○ an “end-of-function with fault” clause. If either of these clauses is voted by a qualified majority of the investors during the period preceding the carry-forward period for which the indexing clause is calculated, a reduction of 50% to 100% in the number of units vested shall then apply individually to the asset managers of the fund in question. When an asset manager manages several funds, a weighted average of the assets of those funds is then calculated. This clause also applies to the retention scheme.
This clause also applies to the retention scheme. The quantitative criterion for equity and bond management is calculated annually by the reporting department and independently approved by Mirova’s HICC. For management functions, it is calculated within the employee’s scope of expertise. For all other functions, it is calculated as 50% within the scope of equity/bond portfolios, and 50% within that of infrastructure funds.
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2. Governance and compliance commitments
Depending on its financial situation, Mirova may consider any outstanding payments to be null and void for one or more years in question. The application of these clauses is validated by Mirova general management and a report is sent to Natixis.
c. Control mechanism
At the end of each promotion process and prior to the allocation of variable remuneration, the Human Resources Department conducts a documented check on the suitability and effectiveness of the remuneration policy for regulated employees (list of names, amounts allocated, split between immediate and deferred payments and the portion in cash or equivalent financial instruments). It is approved by the Executive Committee and by Natixis Investment Managers.
The general and specific principles, the application methods and quantified summary data of the remuneration policy including the regulated population, as well as the annual remuneration package for executives, are provided annually to the Board of Directors of Mirova. As part of the promotion process, individual proposals are approved by the Human Resources Department and the general management of Mirova, and then in turn by the remuneration approval bodies of Natixis Investment Managers AM and Natixis. The Chief Executive Officer’s remuneration is determined by the general management of Natixis Investment Managers and Natixis and is submitted to the Natixis Appointments and Remuneration Committee.
5. Remuneration paid during the last financial year
The total amount of remuneration for the financial year, broken down into fixed and variable remuneration, paid by the management company to its staff and the number of beneficiaries, and where appropriate, carried interest paid by the portfolios, is as follows: Fixed remuneration for 2018: €7,051,373 Variable remuneration awarded for 2017: €6,752,332 Employees concerned: 77.
The aggregate amount of remuneration, broken down between the senior executives and members of staff of the management company whose activities have a significant impact on the risk profile of the management company and/or portfolios: Total remuneration awarded for 2018: €4,438,804, of which: ○ Senior management: €3,144,046 ○ Staff: €1,294,759
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3. Fees and taxation
. Intermediation costs
Detailed information on the terms and conditions applied by the management company for order execution and investment decision-making support services during the financial year ended can be found on its website at http://www.im.natixis.com.
. Feeder fund management fees
Your fund is a feeder fund for the UCI/sub-fund MIROVA EUROPE ENVIRONMENTAL EQUITY FUND. The total fees charged during the year amounted to 1.72% inclusive of tax, of which 0.90% inclusive of tax was for direct management fees and 0.82% inclusive of tax was for indirect fees (representing the ongoing charges of the master fund over the same period) for C units.
Your fund is a feeder fund for the UCI/sub-fund MIROVA EUROPE ENVIRONMENTAL EQUITY FUND. The total fees charged during the year amounted to 1.12% inclusive of tax, of which 0.30% inclusive of tax was for direct management fees and 0.82% inclusive of tax was for indirect fees (representing the ongoing charges of the master fund over the same period) for N units.
Your fund is a feeder fund for the UCI/sub-fund MIROVA EUROPE ENVIRONMENTAL EQUITY FUND. The total fees charged during the year amounted to 1.72% inclusive of tax, of which 0.90% inclusive of tax was for direct management fees and 0.82% inclusive of tax was for indirect fees (representing the ongoing charges of the master fund over the same period) for D units.
The annual report of the master fund is appended to this report.
. PEA and PME-PEA
PEA
Pursuant to the provisions of Article 91 quater L of the French General Tax Code, Appendix 2, at least 75% of the Fund is permanently invested in the securities or rights outlined in a, b and c of point 1, section I of Article L. 221-31 of the French Monetary and Financial Code. Proportion of investment actually completed during the financial year: 80.12%. PEA of the master fund
. Withholdings at source
This UCI is not involved in recoveries of withholding tax in respect of this year.
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4. Statutory Auditor’s report
MIROVA EUROPE ENVIRONNEMENT 24
MAZARS
MUTUAL FUND MIROVA EUROPE ENVIRONNEMENT
Statutory Auditor’s report on the annual financial statements
Financial year ended 31 December 2019
MUTUAL FUND Statutory Auditor's report on the MIROVA EUROPE annual financial statements ENVIRONNEMENT
Financial year ended 31 December 2019
To the unitholders of the MIROVA EUROPE ENVIRONNEMENT mutual fund,
Opinion
In execution of the assignment entrusted to us by the management company, we have audited the annual financial statements of the undertaking for collective investment in the form of the MIROVA EUROPE ENVIRONNEMENT mutual investment fund relating to the financial year ended 31 December 2019, as attached to this report.
We certify that the annual financial statements are, in compliance with French accounting rules and principles, accurate and consistent, and give a true and fair view of the financial performance for the previous financial year as well as the financial situation and assets of the Fund at the end of that financial year.
Basis of opinion
Audit terms of reference
We conducted our audit in accordance with the standards of professional practice applicable in France. We believe that the information we collected is sufficient and appropriate as a basis for our opinion.
Our responsibilities pursuant to these standards are set out in the section of this report entitled “Statutory Auditor’s responsibilities regarding the audit of the Annual Financial Statements”.
Independence
We conducted our audit in line with the rules of independence that apply to us, between 1 July 2019 and the date of issue of our report, and in particular, we did not provide any services forbidden by the Code of Ethics for Statutory Auditors.
1
MUTUAL FUND Justification of assessments MIROVA EUROPE ENVIRONNEMENT In accordance with the provisions of Articles L. 823-9 and R. 823-7 of the French Commercial Code Financial year ended 31 relating to the justification of our assessments, you are informed that, in our professional opinion, the December 2019 most significant assessments we conducted were based on the appropriateness of the accounting principles applied, in particular regarding the financial instruments held in the portfolio, and on the overall presentation of the financial statements in terms of the chart of accounts for open-ended undertakings for collective investment.
The assessments made herein fall within the scope of the audit of the annual financial statements taken as a whole and the formation of our opinion as expressed above. Hence, we have no comment to make on any individual aspect of these annual financial statements.
Specific verifications
We also performed specific verifications required by the relevant legal and regulatory provisions and in accordance with professional auditing standards in France.
We have no observations to make concerning the accuracy and consistency with the annual financial statements of the information provided in the management report prepared by the management company.
Responsibilities of senior management and those persons in charge of corporate governance relating to the annual financial statements
It is the management company’s responsibility to prepare annual financial statements that give a true and fair view, in accordance with French accounting rules and principles, and to implement the internal controls it deems necessary for the preparation of annual financial statements that are free of material misstatement, whether due to fraud or error.
When preparing the annual financial statements, it is the management company’s responsibility to assess the fund’s viability as a going concern, to present in said financial statements, where applicable, the necessary information relating to its viability as a going concern, and to apply the going concern accounting policy unless it intends to wind up the fund or to cease trading.
The annual financial statements were prepared by the management company.
Statutory Auditor’s responsibilities regarding the audit of the annual financial statements
It is our responsibility to draft a report on the annual financial statements. Our aim is to obtain reasonable assurance that the annual financial statements, taken as a whole, are free of material misstatement.
2
MUTUAL FUND Reasonable assurance corresponds to a high level of assurance, but does not guarantee, that an audit MIROVA EUROPE performed in accordance with the standards of professional practice can systematically detect any ENVIRONNEMENT material misstatement. Misstatements may arise from fraud or error and are considered material where Financial year ended 31 it can reasonably be expected that, taken individually or together, they may influence the economic December 2019 decisions made by users of the financial statements that are based upon those statements.
As specified by Article L. 823-10-1 of the French Commercial Code, our task is to certify the financial statements – not to guarantee the viability or the quality of the management of your Fund.
As part of an audit conducted in accordance with the standards of professional practice applicable in France, the statutory auditor exercises their professional judgement throughout this audit. In addition:
• they identify and assess the risks that the annual financial statements may contain material misstatements, whether due to fraud or error, set out and implement the audit procedures intended to counter these risks and collate the points of information that they deem sufficient and appropriate to justify their opinion. The risk of non-detection of a material misstatement due to fraud is higher than that of a material misstatement due to error, since fraud may involve collusion, forgery, voluntary omissions, misrepresentation or the circumvention of internal control processes;
• they take note of the internal control processes relevant to the audit so as to set out audit procedures that are appropriate to the circumstances; their role in so doing is not to express an opinion on the effectiveness of the internal control processes;
• they assess the appropriateness of the accounting methods used and the reasonableness of the accounting estimates made by senior management, as well as the information about these methods and estimates provided in the annual financial statements;
• they assess the appropriateness of the application by the management company of the going concern accounting policy and, based on the evidence gathered, whether there is significant uncertainty relating to events or circumstances that may affect the fund’s ability to continue as a going concern. This assessment is based on the information gathered up to the date of their report, on the understanding that subsequent events or circumstances may affect its viability as a going concern. If they conclude that significant uncertainty exists, they draw the attention of the reader of the report to the information provided in the Annual Financial Statements about this uncertainty or, if this information is not provided or is not relevant, they issue certification with reservations or a refusal to certify;
3
MUTUAL FUND • they appraise the overall presentation of the annual financial statements and assess whether MIROVA EUROPE said statements reflect the transactions and underlying events, and thus provide a true and fair ENVIRONNEMENT view thereof. Financial year ended 31 December 2019
Issued in Courbevoie, date of electronic signature Document authenticated and dated by electronic signature
The Statutory Auditor
20/04/2020
Mazars: ‘00’02+ 07:42:16 Pierre Masiéri
4 NATIXIS INVESTMENT MANAGERS INTERNATIONAL
5. Annual financial statements
a) Annual financial statements in EUR
. Balance sheet – Assets
Balance sheet – Assets as at 31/12/2019 Portfolio: 001325 MIROVA EUROPE ENVIRONNEMENT
31/12/2019 31/12/2018
FINANCIAL INSTRUMENTS 663,728,191.93 415,381,219.04 MASTER UCI 663,728,191.93 415,381,219.04 Forward financial instruments 0.00 0.00 Transactions on a regulated or equivalent market 0.00 0.00 Other transactions 0.00 0.00 RECEIVABLES 332,153.10 411,444.95 Forward foreign exchange transactions 0.00 0.00 Other 332,153.10 411,444.95 FINANCIAL ACCOUNTS 3,358,493.57 0.00 Cash and cash equivalents 3,358,493.57 0.00
TOTAL ASSETS 667,418,838.60 415,792,663.99
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5. Annual financial statements
Balance sheet – Liabilities
Balance sheet – Liabilities as at 31/12/2019 Portfolio: 001325 MIROVA EUROPE ENVIRONNEMENT
31/12/2019 31/12/2018
SHAREHOLDERS’ EQUITY Capital 662,787,320.62 415,171,154.19 Undistributed prior net capital gains and losses (a) 0.00 0.00 Retained earnings (a) 0.00 0.00 Net capital gains and losses for the financial year (a, b) 1,976,637.60 1,624,600.85 Profit/loss for the financial year (a, b) -6,937,636.45 -3,550,318.10 TOTAL SHAREHOLDERS’ EQUITY * Amount representing net assets 657,826,321.77 413,245,436.94
FINANCIAL INSTRUMENTS 0.00 0.00 Forward financial instruments 0.00 0.00 Transactions on a regulated or equivalent market 0.00 0.00 Other transactions 0.00 0.00 PAYABLES 9,592,516.83 2,250,763.22 Forward foreign exchange transactions 0.00 0.00 Other 9,592,516.83 2,250,763.22 FINANCIAL ACCOUNTS 0.00 296,463.83 Current bank loans 0.00 296,463.83 Borrowing 0.00 0.00
TOTAL LIABILITIES 667,418,838.60 415,792,663.99
(a) Including adjustments (b) Less interim dividends, if any, paid during the financial year
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5. Annual financial statements
Off-balance sheet items
Off-balance sheet items as at 31/12/2019 Portfolio: 001325 MIROVA EUROPE ENVIRONNEMENT
31/12/2019 31/12/2018
HEDGING TRANSACTIONS 0.00 0.00 Commitments on regulated or equivalent markets 0.00 0.00 Commitments on over-the-counter markets 0.00 0.00 Other commitments 0.00 0.00 OTHER TRANSACTIONS 0.00 0.00 Commitments on regulated or equivalent markets 0.00 0.00 Commitments on over-the-counter markets 0.00 0.00 Other commitments 0.00 0.00
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5. Annual financial statements
Income statement
Income statement as at 31/12/2019 Portfolio: 001325 MIROVA EUROPE ENVIRONNEMENT
31/12/2019 31/12/2018
Income from financial transactions Income from deposits and financial accounts 0.00 2.03 Income from equities and equivalent securities 4,847,502.63 619,722.98 Income from bonds and equivalent securities 0.00 0.00 Income from debt securities 0.00 0.00 Income from temporary purchases and sales of securities 0.00 0.00 Income from forward financial instruments 0.00 0.00 Other financial income 0.00 0.00 TOTAL (1) 4,847,502.63 619,725.01
Expenses on financial transactions Expenses on temporary purchases and sales of securities 0.00 0.00 Expenses on forward financial instruments 0.00 0.00 Expenses on financial debt 4,244.41 457.76 Other financial expenses 0.00 0.00 TOTAL (2) 4,244.41 457.76
PROFIT/LOSS ON FINANCIAL TRANSACTIONS (1 - 2) 4,843,258.22 619,267.25 Other income (3) 0.00 0.00 Management fees and provisions for depreciation (4) 11,815,042.19 4,444,536.12
NET INCOME FOR THE FINANCIAL YEAR (L. 214-17-1) (1 - 2 + 3 - 4) -6,971,783.97 -3,825,268.87 Income adjustment for the financial year (5) 34,147.52 274,950.77 Interim dividend payments for the financial year (6) 0.00 0.00
PROFIT/LOSS (1 - 2 + 3 - 4 + 5 - 6) -6,937,636.45 -3,550,318.10
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5. Annual financial statements
b) Annual financial statements – Accounting appendices
ACCOUNTING RULES AND METHODS
The annual financial statements are presented in the form prescribed by ANC Regulation 2014-01, as amended.
The following general accounting principles apply: - a true and fair view, comparability and going concern, - lawfulness and fairness, - prudence, - consistency in accounting methods from one financial year to the next.
The reference currency of the portfolio is the euro.
Asset valuation rules
The securities held in the feeder fund’s portfolio are valued at the last net asset value of the master fund “MIROVA EUROPE ENVIRONMENTAL EQUITY FUND MD” (LU0914732598).
Management fees
Fixed management fees for the C and D units are capped at 0.90% inclusive of tax, and for the N unit at 0.30% inclusive of tax, on the basis of net assets. The actual effective rate applied for the C and D units is 0.90% inclusive of tax, and for the N unit is 0.30% inclusive of tax on the basis of net assets. Management fees do not include transaction fees. They are recorded each time the net asset value is calculated. The calculation is made pro rata temporis on the basis of the assets under management.
Performance fee
Where appropriate, the management company will levy a performance fee when the Fund outperforms the benchmark index.
The performance fee applicable to a particular unit class is based on a comparison of the Fund’s valued assets and its reference assets.
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5. Annual financial statements
The Fund’s valued assets are the portion of net assets corresponding to a specific unit class, valued in accordance with the valuation rules applicable to the assets and taking account of the actual operating and management fees corresponding to that unit class.
The reference assets are the portion of the Fund’s assets corresponding to a specific unit class, adjusted to take account of the subscription/redemption amounts applicable to that unit class at each valuation, and, if need be, valued in accordance with the performance of the selected benchmark index.
The benchmark index used to calculate the performance fee is: MSCI Europe (NDR), closing price. It is denominated in euros.
The observation period corresponds to:
For the first observation period for the C unit: 12 November 2013 to 31 December 2014. For the first observation period for the N unit: 13 December 2017 to 31 December 2018. For the first observation period for the D unit: 9 March 2018 to 31 December 2019.
- For subsequent periods: 1 January to 31 December each year.
If, during the observation period, the Fund’s performance is higher than that of the reference assets as set out above, the variable portion of the management fees will represent up to 20% including tax of the difference between these two assets.
If, during the observation period, the Fund’s valued assets are lower than the reference assets, the variable portion of the management fees will be zero.
If, during the observation period, the Fund’s valued assets exceed the reference asset value, this difference will be subject to a provision for variable management fees at the time of the net asset value calculation.
If the Fund’s valued assets are lower than the reference assets between two net asset values, any previously accrued provision will be reduced accordingly through a provision reversal. Reversals of provisions must not exceed the previous allocations.
This variable portion will only be collected at the end of the accounting period if, over the elapsed period, the Fund’s valued assets are greater than the reference assets at the time of the final net asset value for the reference period.
In the event of redemption, the portion of the provision corresponding to the number of units redeemed is permanently retained by the management company.
For further information, please also refer to the Fund’s annual report.
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5. Annual financial statements
Accounting methods
Income is recognised using the “coupons received” method. Inflows and outflows are recognised exclusive of costs. Interest on non-business days is not recognised in advance.
Allocation of distributable income
Definition of distributable income:
Distributable income consists of:
Income:
Net income for the financial year is equal to the amount of interest, arrears, premiums and bonuses, dividends, directors’ fees and all other income generated by the securities held in the portfolio, plus income generated by temporary cash holdings, less management fees and borrowing costs. It is increased by the retained earnings and increased or reduced by the balance of the income adjustment account.
Capital gains and losses:
Realised capital gains, net of fees, less realised capital losses, net of fees, recorded in the current financial year, plus net capital gains of the same type recognised in previous years that have not been distributed or accumulated, plus or minus current-year net capital gains adjustments.
Procedures for allocating distributable income:
Distributable income C and N units D unit
Allocation of net income Accumulation Distribution
Allocation of net realised capital gains and Accumulation Accumulation losses
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5. Annual financial statements
■ Changes in net assets in EUR
Changes in net assets as at 31/12/2019 Portfolio: 001325 MIROVA EUROPE ENVIRONNEMENT
31/12/2019 31/12/2018
NET ASSETS AT THE START OF THE FINANCIAL YEAR 413,245,436.94 67,829,815.27 Subscriptions (including subscription fees paid to the UCI) 131,511,880.84 433,394,132.68 Redemptions (excluding redemption fees paid to the UCI) -30,074,778.36 -46,472,750.95 Capital gains earned on deposits and financial instruments 2,117,818.16 797,341.83 Capital losses incurred on deposits and financial instruments -249,039.86 -132,456.08 Capital gains earned on forward financial instruments 0.00 0.00 Capital losses incurred on forward financial instruments 0.00 0.00 Transaction fees 0.00 0.00 Exchange rate differences 0.00 0.00 Changes in the valuation difference on deposits and financial instruments 148,246,788.02 -38,538,455.12 Valuation difference, financial year N 120,333,209.33 -27,913,578.69 Valuation difference, financial year N-1 27,913,578.69 -10,624,876.43 Changes in the valuation difference on forward financial instruments 0.00 0.00 Valuation difference, financial year N 0.00 0.00 Valuation difference, financial year N-1 0.00 0.00 Dividends paid in the previous financial year on net capital gains and losses 0.00 0.00 Dividends paid in the previous financial year on income 0.00 0.00 Net income for the financial year prior to adjustment -6,971,783.97 -3,825,268.87 Interim dividend(s) paid during the financial year on net capital gains and losses 0.00 0.00 Interim dividend(s) paid during the financial year on income 0.00 0.00 Other items* 0.00 193,078.18
NET ASSETS ON THE CLOSING DATE OR AT YEAR END 657,826,321.77 413,245,436.94
* N-1: Result of merger: €193,078.18
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5. Annual financial statements
■ Additional information
• Breakdown of instruments by legal or economic type
Amount %
Off-balance sheet items
Hedging transactions TOTAL Hedging transactions 0.00 0.00
Other transactions TOTAL Other transactions 0.00 0.00
• Breakdown of assets, liabilities and off-balance sheet items by interest rate type
Fixed rate % Variable rate % Adjustable rate % Other % Off-balance sheet items Hedging transactions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other transactions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
• Breakdown of assets, liabilities and off-balance-sheet items by residual maturity
]3 months - <3 months % 1 year] % ]1 - 3 years] % ]3 - 5 years] % > 5 years %
Off-balance sheet items
Hedging transactions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other transactions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
• Breakdown of assets, liabilities and off-balance sheet items by listing or valuation currency (non-euro)
Currency Currency 1 % Currency 2 % 3 % Currency % Assets Master UCI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Receivables 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Financial accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Liabilities 0.00 Financial accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Off-balance sheet items 0.00 Hedging transactions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other transactions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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5. Annual financial statements
• Breakdown of receivables and payables by type
Type of debit/credit 31/12/2019
Receivables Sales with deferred settlement 476.86 Subscriptions receivable 331,676.24 Total receivables 332,153.10
Payables Purchases with deferred settlement - 311,779.49 Redemptions payable - 20,551.96 Management fees - 483,391.68 Variable management fees - 8,776,793.70 Total payables - 9,592,516.83
Total payables and receivables - 9,260,363.73
■ Shareholders’ equity
• Number of securities issued or redeemed
Units Amount
C unit Units subscribed during the financial year 63,579.4780 96,579,863.08 Units redeemed during the financial year -8,448.3275 -13,007,610.34 Net subscriptions/redemptions 55,131.1505 83,572,252.74
N unit Units subscribed during the financial year 9,884.4597 10,955,017.69 Units redeemed during the financial year -4,149.7763 -4,403,984.59 Net subscriptions/redemptions 5,734.6834 6,551,033.10
D unit Units subscribed during the financial year 22,486.1307 23,977,000.07 Units redeemed during the financial year -12,342.5485 -12,663,183.43 Net subscriptions/redemptions 10,143.5822 11,313,816.64
• Subscription and/or redemption fees
Amount
C unit Redemption fees paid to the Fund 0.00 Subscription fees paid to the Fund 0.00 Total fees paid to the Fund 0.00
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5. Annual financial statements
• Subscription and/or redemption fees
Amount
N unit Redemption fees paid to the Fund 0.00 Subscription fees paid to the Fund 0.00 Total fees paid to the Fund 0.00
D unit Redemption fees paid to the Fund 0.00 Subscription fees paid to the Fund 0.00 Total fees paid to the Fund 0.00
• Management fees paid by the Fund
31/12/2019
C unit Guarantee fees 0.00 Fixed management fees 2,041,949.51 Percentage of fixed management fees 0.90 Variable management fees 3,003,268.91 Retrocession of management fees 0.00
N unit Guarantee fees 0.00 Fixed management fees 28,067.84 Percentage of fixed management fees 0.30 Variable management fees 138,165.29 Retrocession of management fees 0.00
D unit Guarantee fees 0.00 Fixed management fees 2,647,633.62 Percentage of fixed management fees 0.90 Variable management fees 3,955,957.02 Retrocession of management fees 0.00
MIROVA EUROPE ENVIRONNEMENT 40
NATIXIS INVESTMENT MANAGERS INTERNATIONAL
5. Annual financial statements
• Commitments received and given
Guarantees received by the UCI
None.
Other commitments received and/or given
None.
MIROVA EUROPE ENVIRONNEMENT 41
NATIXIS INVESTMENT MANAGERS INTERNATIONAL
5. Annual financial statements
■ Other information
• Current value of financial instruments under a temporary purchase agreement
31/12/2019
Securities received under reverse repurchase agreements 0.00 Borrowed securities 0.00
• Current value of financial instruments constituting collateral deposits
31/12/2019
Financial instruments given as collateral and retained under their original entry 0.00 Financial instruments received as collateral and not posted in the balance sheet 0.00
• Financial instruments held, issued and/or managed by the Natixis Group
~ ISIN code Label 31/12/2019
Equities 0.00 Bonds 0.00 Negotiable debt securities 0.00 UCIs 663,728,191.93 LU0914732598 MIROVA EURP ENV EQ FD MD EUR 663,728,191.93
Forward financial instruments 0.00 Total Group securities 663,728,191.93
MIROVA EUROPE ENVIRONNEMENT 42
NATIXIS INVESTMENT MANAGERS INTERNATIONAL
5. Annual financial statements
■ Table of results
• Allocation table for the portion of distributable income relating to profit/loss
31/12/2019 31/12/2018
Amounts still to be allocated Retained earnings 0.00 0.00 Income -6,937,636.45 -3,550,318.10 Total -6,937,636.45 -3,550,318.10
31/12/2019 31/12/2018
C unit Allocation Distribution 0.00 0.00 Retained earnings for the financial year 0.00 0.00 Accumulation -3,124,329.98 -788,933.34 Total -3,124,329.98 -788,933.34
31/12/2019 31/12/2018
N unit Allocation Distribution 0.00 0.00 Retained earnings for the financial year 0.00 0.00 Accumulation -92,620.81 -13,532.48 Total -92,620.81 -13,532.48
31/12/2019 31/12/2018
D unit Allocation Distribution 0.00 0.00 Retained earnings for the financial year 0.00 0.00 Accumulation -3,720,685.66 -2,747,852.28 Total -3,720,685.66 -2,747,852.28
MIROVA EUROPE ENVIRONNEMENT 43
NATIXIS INVESTMENT MANAGERS INTERNATIONAL
5. Annual financial statements
• Allocation table for the portion of distributable income relating to net capital gains and losses
31/12/2019 31/12/2018
Amounts still to be allocated Undistributed prior net capital gains and losses 0.00 0.00 Net capital gains and losses for the financial year 1,976,637.60 1,624,600.85 Interim dividends paid on net capital gains and losses for the financial year 0.00 0.00
Total 1,976,637.60 1,624,600.85
31/12/2019 31/12/2018
C unit Allocation Distribution 0.00 0.00 Undistributed net capital gains and losses 0.00 0.00 Accumulation 912,376.52 1,527,302.72
Total 912,376.52 1,527,302.72
31/12/2019 31/12/2018
N unit Allocation Distribution 0.00 0.00 Undistributed net capital gains and losses 0.00 0.00 Accumulation 45,383.24 55,650.84
Total 45,383.24 55,650.84
31/12/2019 31/12/2018
D unit Allocation Distribution 0.00 0.00 Undistributed net capital gains and losses 0.00 0.00 Accumulation 1,018,877.84 41,647.29
Total 1,018,877.84 41,647.29
MIROVA EUROPE ENVIRONNEMENT 44
NATIXIS INVESTMENT MANAGERS INTERNATIONAL
5. Annual financial statements
■ Table of results and other items characteristic of the entity over the last five financial years
31/12/2015 30/12/2016 29/12/2017 31/12/2018 31/12/2019
Total net assets in EUR 40,445,097.20 53,100,345.61 67,829,815.27 413,245,436.94 657,826,321.77
MIROVA EUROPE ENVIRONNEMENT C
Net assets in EUR 40,445,097.20 53,100,345.61 67,829,815.27 159,455,260.56 303,810,522.31
Number of securities 31,103.2162 42,187.6905 48,199.5828 124,321.7316 179,452.8821
Net asset value per unit 1,300.35 1,258.66 1,407.26 1,282.60 1,692.98
Accumulation per unit on net capital 28.50 5.06 21.41 12.28 5.08 gains and losses
Accumulation per unit on income -10.74 1.44 -2.23 -6.34 -17.41
MIROVA EUROPE ENVIRONNEMENT N
Net assets in EUR 0.00 0.00 0.00 6,118,795.19 15,159,859.19
Number of securities 0.0000 0.0000 0.0000 6,606.5725 12,341.2559
Net asset value per unit 0.00 0.00 0.00 926.16 1,228.38
Accumulation per unit on net capital 0.00 0.00 0.00 8.42 3.67 gains and losses
Accumulation per unit on income 0.00 0.00 0.00 -2.04 -7.50
MIROVA EUROPE ENVIRONNEMENT D
Net assets in EUR 0.00 0.00 0.00 247,671,381.19 338,855,940.27
Number of securities 0.0000 0.0000 0.0000 272,683.1770 282,826.7592
Net asset value per unit 0.00 0.00 0.00 908.27 1,198.10
Accumulation per unit on net capital 0.00 0.00 0.00 0.15 3.60 gains and losses
Accumulation per unit on income 0.00 0.00 0.00 -10.07 -13.15
MIROVA EUROPE ENVIRONNEMENT 45
NATIXIS INVESTMENT MANAGERS INTERNATIONAL
5. Annual financial statements
■ Detailed breakdown of financial instruments
Quantity % of net Security name Currency (number or Current value assets nominal value)
Undertakings for collective investment Retail UCITS and AIFs and equivalents in other countries intended for non-professional investors LUXEMBOURG MIROVA EURP ENV EQ FD MD EUR EUR 7,654.5917 663,728,191.93 100.90 TOTAL LUXEMBOURG 663,728,191.93 100.90 TOTAL Retail UCITS and AIFs and equivalents in other countries 663,728,191.93 100.90 intended for non-professional investors TOTAL Undertakings for collective investment 663,728,191.93 100.90
Total securities portfolio 663,728,191.93 100.90 Receivables 332,153.10 0.05 Payables -9,592,516.83 -1.46 Financial accounts 3,358,493.57 0.51
Net assets 657,826,321.77 100.00
MIROVA EUROPE ENVIRONNEMENT 46
NATIXIS INVESTMENT MANAGERS INTERNATIONAL
6. Appendices
MIROVA EUROPE ENVIRONNEMENT 47
NATIXIS INVESTMENT MANAGERS INTERNATIONAL 43, avenue Pierre Mendès-France, CS 41432, 75648 Paris Cedex 13, France – Tel.: +33 (0)1 78 40 80 00 Société anonyme (French public limited company) with capital of €51,371,060.28 Paris Trade and Companies Register no. 329 450 738 – APE 6630Z – VAT no.: FR 203 294 507 38
Mirova Funds
ISoci été d'Investissement à Capital Variable
Audited annual report as at 31/12/19
R.C.S. B 148004
Database Publishing System: CO-Reporter® by CO-Link, Belgium. Mirova Funds
Table of contents
Page
Organisation 3
Director’s Report 4
Audit report 12
Combined 15
Sub-funds:
- Statement of net assets - Changes in number of shares outstanding - Key figures - Securities portfolio - Statement of operations and changes in net assets
Mirova Global Sustainable Equity Fund 18
Mirova Europe Sustainable Equity Fund 25
Mirova Euro Sustainable Equity Fund 31
Mirova Europe Environmental Equity Fund 37
Mirova Women Leaders Equity Fund (launched on March 29, 2019) 43
Mirova Global Carbon Neutral Equity Fund 48
Mirova Europe Carbon Neutral Equity Fund (launched on May 17, 2019) 54
Mirova US Carbon Neutral Equity Fund (launched on December 30, 2019) 60
Mirova Global Green Bond Fund 66
Mirova Euro Green and Sustainable Bond Fund 73
Mirova Euro Green and Sustainable Corporate Bond Fund 80
Mirova Europe Sustainable Economy Fund 87
Notes to the financial statements - Schedule of derivative instruments 93
Other notes to the financial statements 97
Additional information (unaudited information) 107
Subscriptions can only be received on the basis of the latest prospectus, Key Investor Information Documents accompanied by the latest annual report as well as by the latest semi-annual report, if published thereafter.
Page 2 Mirova Funds
Organisation
Board of Directors of the SICAV
Mirova Chairman and Director represented by Arnaud Grapin, “COO, Head of Operations” of Mirova
Natixis Wealth Management Luxembourg Director represented by Patrick Rougier, “Directeur Général Adjoint” of Natixis Wealth Management Luxembourg (since September 3, 2019) Director represented by Eric Théron, “Directeur Général” of Natixis Wealth Management (until March 28, 2019)
Natixis Life Director represented by Frédéric Lipka, “Directeur Général” of Natixis Life
Management Company and Promoter
Natixis Investment Managers International 43 avenue Pierre Mendès 75013 Paris
Delegated Investment Managers
Mirova 59 avenue Pierre Mendès 75013 Paris www.mirova.com
Ostrum Asset Management U.S., LLC (until March 29, 2019) 888 Boylston Street Boston 02199-8197 Massachussetts (USA)
MIROVA US LLC (as from March 29, 2019) 888 Boylston Street Boston 02199-8197 Massachussetts (USA)
Custodian
CACEIS Bank, Luxembourg Branch 5, allée Scheffer L-2520 Luxembourg
Administrative Agent, Paying Agent, Listing Agent, Domiciliary and Corporate Agent, Registrar and Transfer Agent
CACEIS Bank, Luxembourg Branch 5, allée Scheffer L-2520 Luxembourg
Auditor of the SICAV
PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator B.P. 1443 L-1014 Luxembourg
Page 3 Mirova Funds
Director’s Report
Mirova Global Sustainable Equity Fund
Review of Fund Performance:
The Fund outperformed the MSCI World Index NDR EUR. The Fund returned 34.51% net of fees compared to the benchmark at 30.02%. Security selection contributed significantly to the Fund’s outperformance; asset allocation was also positive.
The top contributors to the Fund’s returns were MasterCard, Microsoft, and Thermo Fisher Scientific. The largest detractors from the Fund’s returns were International Flavors & Fragrances Inc. (“IFF”), Unilever, and BYD Company.
Mirova Europe Sustainable Equity Fund
Review of Fund Performance:
The Fund outperformed its reference index MSCI EUROPE NDR by +4.91%. The outperformance is explained for 50% by the allocation and 50% by the selection.
In terms of allocation, the energy sector was the main contributor. The structural under-representation in the portfolio due to our ESG investment policy favoring companies providing solutions to sustainable development, has a positive impact on the performance in 2019. The technology sector was the main second contributor due to the large representation in the portfolio compared to the benchmark.
In terms of selection, the top contributors to the Fund’s returns were Nvidia (+80%), ASML (+95%), Nexans (80%), Astrazeneca (40%). The largest detractors from the Fund’s returns were:
Biocartis (-42%), an innovative diagnostic company specialized in the oncology field. The company warned during the Q4 after the end of its commercial collaboration with Thermofisher in the US. However, remediation actions have been taken to launch a new go-to-market strategy for the US aiming at sustaining its medium to long term growth.
Arcure (-40%) a small cap French company specialized in technological solutions to address safety issues in industrial environment. The underperformance is largely due to an-over expectation of the market compared to what the company delivered which was quite in line with its medium term growth objectives
Mirova Euro Sustainable Equity Fund
Fund Performance
Over the year 2019 the fund’s benchmark index, the MSCI EMU, is up 25.47%, the fund is up 28.29% (part I).
The fund’s outperformance against its benchmark index is largely due to the Finance, Materials and Technology sectors. In the Finance sector, the fund’s performance is due to our stock selection, with companies such as AXA (+41%), Allianz (+30%) and Intesa (+33%), which are among our best contributors. In the Materials sector, the outperformance is also due to the stock selection with, for instance, Smurfit Kappa which is up +52% or Symrise (+46%) and Linde (+40%). Finally, the Technology sector is driven by the performance of ASML (+94%), Ingenico (+98%) and Dassault Systèmes (+41%).
The portfolio containing cash/money market funds, this has had a negative impact on performance in a significantly rising market. Over the year, the five best contributors to performance are: ASML, LVMH, Smurfit Kappa, Axa, Symrise. The five detractors are: Publicis, Renault, Criteo, Caixabank, Unilever.
Market Environment
2019 was a unique year in many ways. For instance, all risky assets showed very strong growth. This is particularly the case for equities, with increases of about 30% in the USA, and about 25% in Europe, which are their best performances since the 2008 crisis. However, we cannot talk about euphoria: except for the months of January and December, the asset class underwent a massive and continuous outflow throughout the year. In a context of trade tensions and geopolitical risks, investors remained largely pessimistic and preferred to direct their allocations toward bond assets.
Page 4 Mirova Funds
Director’s Report (continued)
Mirova Euro Sustainable Equity Fund (continued)
Last year confirmed the slowdown in global economy which began at the end of 2017. 2019 posted “only” 3.1% of estimated global real GDP growth, after +3.6% in 2018. Growth declined in all major countries, and Germany was particularly affected. This gloomy economic climate has weighed on the results of companies with their profits per share remaining almost sluggish in 2019, both in the United States and in Europe. Sluggish macroeconomic conditions, subdued results, worried investors fleeing to less risky asset classes… and yet a spectacular increase in markets!
Our central scenario for 2020 is that of a further increase in risky assets, with however a risk-adjusted performance revised downwards compared to last year. Therefore, we expect a more moderate increase, of a 10% range for equity markets, with a preference for European equities and also a slight appreciation of euro area corporate bonds.
Fund flows and positioning
Since the beginning of the year, we made the following adjustments in terms of positioning:
• We reduced our exposure to the consumer discretionary sector by scaling down Michelin and EssilorLuxottica following the strong performance of the share price. Exposure was also mechanically reduced by the declines of Renault and Continental.
• We also reduced our exposure to the Non Discretionary Consumption sector, as Wessanen, which was added to the portfolio in 2018, was the subject of a tender offer by PAI Partners — a private equity fund — together with the historical shareholder.
• We increased our exposure to the Healthcare sector, strengthened Sanofi and Fresenius on several occasions and added Grifols to the portfolio. Grifols is one of the top three players in the collection and processing of blood plasma. These three companies control 75% of the world market, with structural growth of 5-6% per year. Grifols' revenue growth is expected to be slightly higher over the 2020-2024 period, resulting in higher EBITDA growth, thanks to lower plasma collection costs and improved operational efficiency in the Diagnostics division.
• We reduced our exposure to financial stocks as we sold ING in March in light of the money laundering controversies. We also sold Caixa given the lack of conviction on the value. Conversely, we increased our exposure to Crédit Agricole and Intesa and added Unicredit to the portfolio.
• We remain under-exposed to the Energy sector, and we sold our position on Enagas because of the regulatory changes that threatened the stock. Within the broader energy sector, we are investing in stocks with exposure to renewable energy such as Siemens Gamesa (which we strengthened in 2019) and not in oil or oil-related stocks, as we firmly believe they will underperform over the long term.
• Within the Industrials sector, we added ELIS to the portfolio, we took profits on RELX and sold GEA given our lesser conviction on the stock. Elis is the leader in Europe and South America in the rental and maintenance of household linen, professional clothing and all hygiene and well-being equipment. Over the coming years, the group's cash flows should improve thanks to the savings made on OpEx and CapEx. The risk profile should also improve with the finalization of the integration of Berendsen.
• Within the Technology sector, we took profits on Ingenico, which was added to the portfolio in 2018 and achieved an exceptional performance in 2019 (+94%). We added Worldline to maintain exposure to the payments sector. Worldline is positioning itself as a consolidator in this fast-growing market. The group's figures have been steadily improving since its IPO and the gradual withdrawal of Atos enables it to have greater autonomy.
• We took profits on Dassault Systèmes, which again this year achieved an exceptional performance (+42%).
• No major changes in the Materials sector. We added Corbion to the portfolio.
Page 5
Mirova Funds
Director’s Report (continued)
Mirova Europe Environmental Equity Fund
The year 2019 will remain an exceptional vintage, marked by strong growth in the equity markets. The MSCI Europe index rose by 26.05%, while the Environment fund rose by +32.54%. Several favorable factors are behind this rise: first and foremost, the Fed's change in monetary policy, followed by the other central banks during the year, pushing rates to historic lows. Doubts about growth prevailed in 2019, due to US-China trade tensions, which continued to escalate after Trump imposed new tariffs in September. In December, the uncertainty of a ‘Hard’ Brexit faded after elections were held. All the sectors exposed to eco-activities contributed favorably to the fund's performance, with exposure to eco-activities standing at 79% at the end of the year. The fund's performance benefited strongly from low-carbon energies (Vestas). More generally, Buildings, Resources and Technologies were largely responsible for the fund's outperformance. Within sectors, the portfolio's stocks were the main drivers of performance. Materials continue to outperform regularly. The only disappointment of the year came from Consumer stocks, which were left behind due to disappointing publications. The quality of stock selection was the main driver of outperformance. Furthermore, in 2019, the portfolio's carbon valuation is at 1.5° C. The portfolio is well on track to limit global warming by investing in all green technologies in response to the targets set by the Paris 2015 agreements.
Mirova Women Leaders Equity Fund (launched on March 29, 2019)
Review of Fund Performance:
The Fund was up 10.22% (Class I/A (EUR)), the MSCI World was up 12.18%. The fund underperformed its benchmark.
The fund’s underperformance against its benchmark is largely due to the Information Technology (IT) Sector and, to a lesser extent, to the Healthcare Sector and to the Cash / Money Market funds, we have in the portfolio. As far as the IT sector is concerned, the strong performance of Nvidia (+30%), Mastercard (+25%), Microsoft (+33%) or Adobe (+21%) was not enough to compensate the fact that we did not own Apple (+54%), that is the biggest weight of the IT sector. In addition, some of the names we own did not perform very well: IBM (-4.25%), Farfetch (-46.71%), Workday (-15%). As far as the Healthcare sector is concerned, we have some names that performed quite well, like Astrazeneca (+25.50%), but we also had Eli Lilly that was up only 2.95%, or Intuitive Surgical that went up 2.84%, or even Raffles that went down 5.45%.
The top contributors to the Fund’s returns were Microsoft (+33.30%), Tiffany (+27.48%), Estée Lauder (+25.83%), Air Products & Chemicals (+23.97%), Nvidia (+30.06%). The largest detractors from the Fund’s returns were Farfetch (-46.71%), G8 (-36.94%), Workday (- 14.99%), IBM (-4.25%), Orange (-7.59%).
Figures on the performance of the sub-fund’s main share class compared with the reference benchmark: • Class I/A (EUR): +10.22%, • Class R/A (EUR) +9.34% • Class Q/A (EUR): +10.35%
Mirova Global Carbon Neutral Equity Fund
Fund performance from 31/12/2018 to 31/12/2019: Mirova Global Carbon Neutral Equity Fund I/A (EUR): 30.19% Benchmark MSCI WORLD NET TOTAL RETURN EUR INDEX: 30.02%
Market Environment
All risky assets posted strong gains in 2019. This was especially true of equities, with increases of nearly 30% in the United States and nearly 25% in Europe. Even though growth remains relatively sluggish, we witnessed several signs of stabilization in the macroeconomic environment in the second part of the year and the market got what it expected in terms of monetary policy. The services and construction sectors, which are less exposed than industry to the global trade uncertainty, showed resilience. Economies continued to create jobs and consumer spending held up. On the political front, heightened visibility on the year's hot issues — the US-China conflict and Brexit — pushed equities higher in the last quarter.
Page 6
Mirova Funds
Director’s Report (continued)
Mirova Global Carbon Neutral Equity Fund (continued)
Fund Performance and positioning
The portfolio has largely outperformed its benchmark since inception on October 4, 2018 (+2.50% as of December 31). The outperformance is lower in 2019 (+0.17% over the year).
Globally both sector allocation and stock selection had a positive impact on the Fund’s performance. The underweight exposure in Energy sector as well as the stock selection within Utilities and Materials benefited the portfolio. In contrast, the Automobiles and Media contributed negatively over the year. With regard to stock picking the largest relative positive contributors were Brookfield Renewable Partners, Koninklijke DSM, Citigroup, Pattern Energy Group, Meridian Energy Limited and Siemens Gamesa. The main equity detractors were Simon Property Group, Banco Santander, Bunzl, BMW, Facebook (UW) and Mizuho Financial.
From an ESG perspective, more than 50% of the portfolio is made up of companies who received “committed”, “positive” ratings from our SRI research teams. Overall, our portfolio is on track to meet the 1.5 degrees climate goal by significantly decreasing the amount of induced emissions (less fossil-fuels dependent industries) while increasing the exposure to solutions providers (renewable energy, energy efficiency, etc.)
Mirova Europe Carbon Neutral Equity Fund (launched on May 17, 2019)
Fund performance from 17/05/2019 to 31/12/2019: Mirova Europe Carbon Neutral Equity Fund SI/A (EUR): 11.12% Benchmark MSCI EUROPE DNR Index: 9.84%
Market Environment
All risky assets posted strong gains in 2019. This was especially true of equities, with increases of nearly 30% in the United States and nearly 25% in Europe. Even though growth remains relatively sluggish, we witnessed several signs of stabilization in the macroeconomic environment in the second part of the year and the market got what it expected in terms of monetary policy. The services and construction sectors, which are less exposed than industry to the global trade uncertainty, showed resilience. Economies continued to create jobs and consumer spending held up. On the political front, heightened visibility on the year's hot issues — the US-China conflict and Brexit — pushed equities higher in the last quarter.
Fund Performance
The portfolio has outperformed its benchmark since inception on May 17, 2019 (+1.28% as of December 31).
Globally both sector allocation and stock selection had a positive impact on the Fund’s performance. The underweight exposure in Energy sector as well as the stock selection within Financials, Capital Goods and Materials benefited the portfolio. In contrast, the Technology Hardware & Equipment and Pharmaceuticals Biotechnology contributed negatively over the period. With regard to stock picking the largest relative positive contributors were London Stock Exchange, Umicore, Segro, Zurich Insurance, Vestas Wind Systems, Encavis and Solaria Energia. The main equity detractors were Nokia, EDF, Ericsson, Enagas and Croda.
From an ESG perspective, around 75% of the portfolio is made up of companies who received “committed”, “positive” ratings from our SRI research teams. Overall, our portfolio is on track to meet the 1.5 degrees climate goal by significantly decreasing the amount of induced emissions (less fossil-fuels dependent industries) while increasing the exposure to solutions providers (renewable energy, energy efficiency, etc.)
Page 7
Mirova Funds
Director’s Report (continued)
Mirova US Carbon Neutral Equity Fund (launched on December 30, 2019)
Review of Fund Performance:
The Fund launched on December 30, 2019. The performance data for Fund and Comparative Index is not relevant considering the short period between launch date and December 31, 2019.
Mirova Global Green Bond Fund
Review of Fund Performance:
In 2019, net of fees, the Fund returned 7.21%, outperforming the benchmark’s 6.50% (Class I/A (EUR)).
Performance attribution gross of fees of the portfolio: year-to-date + 782 bp versus +650 bp for the index
• Allocation had a positive impact on the portfolio as we kept our long position on credit throughout 2018/2019. Corporate recovered and outperformed significantly in 2019 (56bp) • Issues selection had a positive impact (+59bp) • Our duration position and the flattening curve position had a positive impact (+51 bp) • Forex & Other (+-42bp)
Security Selection
Selection paid off on corporates and government-related as the fund was invested on peripheral and high yield debt (ENEL, EDP, ACS, BBVA, Tennet hybrid…). Over the year, the fund has benefited from the significant development of the green bond market but remained very selective by excluding more than 10% of the Barclays Bloomberg green bond index in order to maximize environmental impact for our clients. Our Fund is in line with a 1.5°C scenario.
Allocation
Government debts represented 10% of our NAV versus 18% for the reference index. We maintained our significant short position on Government issuers as yield are very low on this asset class. This position included the green bonds issued by the Netherlands, France, Belgium, Ireland and Indonesia.
Agencies, supranational and regions represented 16 % of the NAV versus 37% for the index as we considered them a expensive.
Since the last quarter of 2015 and specially since Q4 2018, we have had a significant exposure to corporate bonds and notably utilities with a green profile. In 2019, credit spreads were squeezed ahead of optimism around the widely-expected accommodative by Eurozone central bankers. Corporate bonds represented 65% of our NAV in December 2019 versus 42% for the index. High-yield represented close to 5% (S&P) of the NAV and non-rated bonds 10% (S&P).
Duration & curve
At the beginning of the year, due to political uncertainties and anticipations of central banks easing policies, we moved to a long position on global duration exposure versus the index; we took our profits in September. Also, as the FED was more dovish than the ECB, the fund had a long position on the US duration versus the Euro zone to take advantage of the narrowing in spread between both zone.
As of December 2019, the modified duration was set at 7.3 for the portfolio versus the index’ 7.5. Despite good news on the Brexit and US/China trade war, we preferred to remain cautious by staying close to neutral on this strategy in December.
Regarding the curve, as the short end of the curve is very expensive, we have kept a long position on the long end of the curve, i.e. a flattening position.
Page 8
Mirova Funds
Director’s Report (continued)
Mirova Euro Green and Sustainable Bond Fund
Review of Fund Performance:
In 2019, net of fees, the Fund returned 8.28%, outperforming the benchmark 6% (Class I/A (EUR)).
Performance attribution gross of fees of the portfolio: year-to-date + 895 bp versus +600 bp for the index
• Allocation had a positive impact on the portfolio as we kept our long position on credit. Corporate recovered and outperformed significantly in 2019 (67 bp) • Issues selection had a positive impact as well on the portfolio (+72bp) • Our duration position and the flattening curve position had a positive impact (+148 bp) • Other (+8bp)
Security Selection
Green and Social Bonds represented 60.03% of the assets in our Fund as of the end of December 2019. Conventional issuers quoted “committed” and “positive” represented 20.5% of the end of December. Our Fund is in line with a 1.5°C scenario.
Allocation
We underweighted even more our position in Government issuers as yield are very low on this asset class. This position included the green bonds issued by the Netherlands, France, Belgium and Ireland. As of end December 2019, government debts represented 21.1% of our NAV versus 58.1% for the reference index.
Agencies, supranational and regions (Green and Social Bonds only) represented 16.8% of the NAV versus 14.1% for the index. We considered these bonds expensive.
Since the last quarter of 2015 and specially since Q4 2018, we have had a significant position in corporate bonds and notably in utilities with a green profile. In 2019, credit spreads were squeezed ahead of optimism around the widely- expected accommodative by Eurozone central bankers. Corporate bonds represented 58.7% of our NAV in December 2019 compared with 43.4% in December 2018 and 20.1% for our index.
High-yield represented close to 5% of the NAV.
Duration & curve
In March 2019, due to political uncertainties and anticipations of central banks easing policies, we moved to a long duration. In September we took profits and consequently decreased the modified duration from 8.2 to 7 in line with the index. Despite good news on Brexit and US/China trade war, we preferred to remain cautious by staying close to neutral on this strategy at the moment.
Regarding the curve, as the short end of the curve is very expensive, we have kept a long position on the long end of the curve, i.e. a flattening position
Mirova Euro Green and Sustainable Corporate Bond Fund
Review of Fund Performance:
In 2019, net of fees, the Fund returned 7.09%, outperforming the 6.24% return of the benchmark (Class I/A (EUR)).
Performance attribution gross of fees of the portfolio: year-to-date + 781bp versus +624bp for the index
Page 9
Mirova Funds
Director’s Report (continued)
Mirova Euro Green and Sustainable Corporate Bond Fund (continued)
• Asset allocation had a negative impact on the portfolio 2019 (-8.1bp), largely due to our underexposure to the insurance sector; • Security selection had a positive impact (+106.9bp); • Our duration position and the flattening curve position had a positive impact (+55.4bp); • Forex & Others (-2.5bp).
Security Selection
In eleven months out of twelve, our selection positively contributed to the outperformance of the fund, fuelled by the good performance of credit, combined with our over exposure to BBBs, notably those from peripheral countries (e.g. Portuguese EDP, Italian Ferrovie dello Stato, Spanish Telefonica or Bankia), plus our decision to increase the weight of banks. Over the year, the fund has also benefited from the significant development of the green bond market, in which the fund is much more invested than the index is. Our Fund is in line with a 1.5°C scenario.
Allocation
Cyclicals represented 19.9% of our NAV versus 26.1% for the reference index. We maintained our short position on this segment as we considered that the global GDP was slowing down, notably as a result of the trade war between China and the U.S., which, in our view, was to hit German exporters – hence our underexposure to Germany (8.5% of the fund NAV, versus 14.8% for the reference index);
Defensive amounted to 37.8% of the fund NAV, versus 32.4% for the index, but with a bias towards some issuers located in Southern Europe (see hereabove);
Financials reached 36.4% of the NAV, vs 41.4% for the index, as we overweighed banks, notably Tier 2, but were very underexposed to insurance companies;
High-yield (based on S&P ratings) represented close to 7.1% of the NAV while non-rated bonds accounted for 11.1%. Green bonds represented more than half the NAV of the fund.
Duration & curve
At the beginning of the year, due to political uncertainties and anticipations of central banks easing policies, we moved to a long position on global duration exposure versus the index; we took profits in September.
As of December 2019, the modified duration was set at 5.1 for the portfolio versus 5.1 for the index. Despite good news on the Brexit and US/China trade war, we preferred to remain cautious by staying close to neutral on this strategy in December.
Regarding the curve, as the short end of the curve looks very expensive, we have kept a long position on the long end of the curve, i.e. a flattening position.
Mirova Europe Sustainable Economy Fund
Fund performance from 31/12/2018 to 31/12/2019: Mirova Europe Sustainable Economy Fund I/A (EUR): 18.66% Mirova Europe Sustainable Economy Fund Q/A (EUR): 20.00% Mirova Europe Sustainable Economy Fund R/A (EUR): 17.92% Benchmark 50% MSCI EUROPE DNR + 50% Barclays Euro Aggregate Corporate TR Index: 15.89%
Page 10
Mirova Funds
Director’s Report (continued)
Mirova Europe Sustainable Economy Fund (continued)
Market Environment
All risky assets posted strong gains in 2019. This was especially true of equities, with increases of nearly 30% in the United States and nearly 25% in Europe. Even though growth remains relatively sluggish, we witnessed several signs of stabilization in the macroeconomic environment in the second part of the year and the market got what it expected in terms of monetary policy. The services and construction sectors, which are less exposed than industry to the global trade uncertainty, showed resilience. Economies continued to create jobs and consumer spending held up. On the political front, heightened visibility on the year's hot issues — the US-China conflict and Brexit — pushed equities higher in the last quarter.
Fund Performance and positionning
All performance drivers (equity/bond allocation, security selection, duration and yield curve positioning, FX management) have positively contributed to the outperformance in 2019.
The fund’s equity component fluctuated between 50% and 60% of the total holdings, above the benchmark’s weighting except for an underweight in May. Within the fixed income sleeve, we maintained a long position duration from January to August before cutting it in order to have it getting closer to that of the index until the end of the year. We massively over- weighted credit versus benchmark throughout the year favoring defensive players over cyclicals.
With regard to issuers selection the largest relative positive contributors were Hera, Telefonica, Santander, EDP, Credit Agricole and Covivio. The largest relative negative contributors were Orange, SEB, EON, Castellum and Commerzbank. On the equity side, both sector allocation and stocks selection had a positive impact on the Fund’s performance. The overweight exposure in Technology and Industrials sector as well as underweight exposure in Energy sector benefited the portfolio. Regarding stocks selection the largest relative positive contributors were Voltalia, LVMH, Eurofins Scientific, Nvidia, Smurfit Kappa, ASML and Credit Agricole. The main equity detractors were Biocartis, Renault, Caixabank, Orange, Qiagen, SEB and Bonduelle.
From an ESG perspective, 86% of the portfolio is made up of companies who received “committed” or “positive” ratings from our SRI research teams. As of the end of December, Green bonds and Social bonds represented nearly 25% of the portfolio. Overall, our portfolio is on track to meet the 1.5 degrees climate goal.
The Board of Directors Luxembourg, March 17, 2020
Note: The information stated in this report is historical and not necessarily indicative of future performance.
Page 11
Audit report
To the Shareholders of Mirova Funds
Our opinion
In our opinion, the accompanying financial statements give a true and fair view of the financial position of Mirova Funds (the “Fund”) and of each of its sub-funds as at 31 December 2019, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements.
What we have audited
The Fund’s financial statements comprise:
the statement of net assets as at 31 December 2019; the securities portfolio as at 31 December 2019; the statement of operations and changes in net assets for the year then ended; and the notes to the financial statements - schedule of derivative instruments and the other notes to the financial statements, which include a summary of significant accounting policies.
Basis for opinion
We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier” (CSSF). Our responsibilities under the Law of 23 July 2016 and ISAs as adopted for Luxembourg by the CSSF are further described in the “Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the financial statements” section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the Fund in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the financial statements. We have fulfilled our other ethical responsibilities under those ethical requirements.
Other information
The Board of Directors of the Fund is responsible for the other information. The other information comprises the information stated in the annual report but does not include the financial statements and our audit report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg T : +352 494848 1, F : +352 494848 2900, www.pwc.lu
Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256) R.C.S. Luxembourg B 65 477 - TVA LU25482518 In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Board of Directors of the Fund and those charged with governance for the financial statements
The Board of Directors of the Fund is responsible for the preparation and fair presentation of the financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements, and for such internal control as the Board of Directors of the Fund determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors of the Fund is responsible for assessing the Fund’s and each of its sub-funds' ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of the Fund either intends to liquidate the Fund or close any of its sub-funds or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Fund’s financial reporting process.
Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the financial statements
The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control;
13 evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors of the Fund;
conclude on the appropriateness of the Board of Directors of the Fund’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s or any of its sub-funds' ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the Fund or any of its sub-funds to cease to continue as a going concern;
evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
PricewaterhouseCoopers, Société coopérative Luxembourg, 18 March 2020 Represented by
Christophe Pittie
14 Mirova Funds Combined
15Page Mirova Funds Combined Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 3,942,559,828.20 Securities portfolio at market value 2Note 3,847,917,339.15 Cost price 3,231,459,610.93 Unrealised profit on the securities portfolio 616,457,728.22 Cash at banks and liquidities 71,788,335.24 Interest receivable 2Note 6,307,318.66 Brokers receivable 582,893.27 Subscribers receivable 11,139,302.42 Dividends receivable 2Note 616,731.05 Unrealised appreciation on forward foreign exchange contracts 2Note 2,182,978.80 Unrealised appreciation on financial futures contracts 2Note 546,980.00 Other receivables 1,475,826.25 Other assets 2,123.36 Liabilities 38,726,416.85 Bank overdrafts 1,297,226.22 Brokers payable 10,946,788.96 Administration fees payable 4Note 1,434,412.52 Taxe d'abonnement payable 6Note 141,454.45 Performance fees payable 5Note 5,742,515.69 Redeemers payable 5,041,558.10 Unrealised depreciation on financial futures contracts 2Note 278,327.40 Management fees payable 4Note 12,370,048.16 Payable on spot exchange 1,472,564.04 Other liabilities 1,521.31 Net asset value 3,903,833,411.35
The accompanying notes form an integral part of these financial statements. 16Page Mirova Funds Combined Statement of operations and changes in net assets from 01/01/19 to 31/12/19
Expressed in EUR
Income 63,562,542.07 Net dividends 2Note 50,863,618.13 Net interest on bonds 2Note 12,552,233.58 Bank interest on cash account 136,837.58 Other interest 888.86 Other income 8,963.92 Expenses 34,608,582.60 Management fees 4Note 21,837,129.76 Custodian & sub-custodian fees 277,274.62 Taxe d'abonnement 6Note 485,626.63 Administration fees 4Note 2,941,278.91 Performance fees 5Note 5,742,283.12 Bank interest on overdrafts 286,060.76 Legal fees 164.00 Transaction fees 2Note 2,750,826.23 Other expenses 287,938.57 Net income from investments 28,953,959.47 Net realised profit / loss on: - sales of investment securities 2Note 38,030,086.53 - forward foreign exchange contracts 2Note -4,791,640.67 - financial futures contracts 2Note -1,728,924.03 - foreign exchange 2Note 5,074,324.48 Net realised profit 65,537,805.78 Movement in net unrealised appreciation / depreciation on: - investments 2Note 614,286,373.73 - forward foreign exchange contracts 2Note 1,686,113.41 - financial futures contracts 2Note 718,245.25 Increase in net assets as a result of operations 682,228,538.17 Dividends paid 9Note -19,115,001.90 Subscription capitalisation shares 1,626,542,164.63 Subscription distribution shares 284,221,266.26 Redemption capitalisation shares -772,995,831.39 Redemption distribution shares -198,799,191.71 Increase in net assets 1,602,081,944.06
Net assets at the beginning of the year 2,301,751,467.29
Net assets at the end of the year 3,903,833,411.35
The accompanying notes form an integral part of these financial statements. 17Page Mirova Funds - Mirova Global Sustainable Equity Fund
18Page Mirova Funds - Mirova Global Sustainable Equity Fund Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 825,901,583.51 Securities portfolio at market value 2Note 801,857,699.54 Cost price 637,750,096.69 Unrealised profit on the securities portfolio 164,107,602.85 Cash at banks and liquidities 20,817,660.65 Subscribers receivable 1,076,328.78 Dividends receivable 2Note 205,888.19 Unrealised appreciation on forward foreign exchange contracts 2Note 466,324.39 Other receivables 1,475,558.60 Other assets 2,123.36 Liabilities 11,759,495.22 Brokers payable 5,994,843.76 Administration fees payable 4Note 268,105.76 Taxe d'abonnement payable 6Note 24,358.82 Performance fees payable 5Note 1,111,613.47 Redeemers payable 32,194.73 Management fees payable 4Note 2,856,082.39 Payable on spot exchange 1,472,296.29 Net asset value 814,142,088.29
Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class F/A NPF (USD) - Capitalisation - 10,445.23 - 10,445.23
Class I/A (EUR) - Capitalisation 4,322.12 7,666.79 4,072.56 7,916.35
Class I/A NPF (EUR) - Capitalisation 433,636.73 704,195.00 529,269.50 608,562.23
Class I/A (USD) - Capitalisation 1,000.00 71,305.65 945.51 71,360.14
Class I/A NPF (USD) - Capitalisation 586.14 6,372.67 - 6,958.81
Class I/D (EUR) - Distribution - 5,274.51 53.02 5,221.49
Class M/D (EUR) - Distribution 1,776.08 252.45 72.33 1,956.20
Class N/A (EUR) - Capitalisation 14,339.16 145,604.75 17,374.05 142,569.86
Class N/A NPF (EUR) - Capitalisation 4,976.25 17,100.11 - 22,076.36
The accompanying notes form an integral part of these financial statements. 19Page Mirova Funds - Mirova Global Sustainable Equity Fund Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class N/A NPF (USD) - Capitalisation - 7,684.48 - 7,684.48
Class N/D NPF (USD) - Distribution 30,000.00 46,168.41 30,000.00 46,168.41
Class R/A (CHF) - Capitalisation - 300.00 - 300.00
Class R/A (EUR) - Capitalisation 51,371.87 110,471.81 32,657.47 129,186.21
Class R/A NPF (EUR) - Capitalisation 31,840.14 98,123.43 16,864.31 113,099.26
Class R/A (USD) - Capitalisation - 12,583.14 - 12,583.14
Class R/A NPF (USD) - Capitalisation 1.15 8,913.63 - 8,914.78
Class RE/A (EUR) - Capitalisation 3,801.66 5,807.88 2,153.77 7,455.77
Class RE/A NPF (EUR) - Capitalisation 2,983.45 - 710.39 2,273.06
Class RE/D (EUR) - Distribution - 1.00 - 1.00
Class SI/A NPF (EUR) - Capitalisation 57,256.78 715,452.96 272,158.82 500,550.92
Class SI/A NPF (USD) - Capitalisation 1,493.01 32,410.94 91.36 33,812.59
Class H-SI/A NPF (CHF) - Capitalisation 425,938.60 304,335.58 274,479.82 455,794.36
Class H-SI/A NPF (EUR) - Capitalisation 110,382.56 493,885.56 189,614.51 414,653.61
Class H-SI/A NPF (GBP) - Capitalisation 14,477.00 37,259.24 14,394.24 37,342.00
Class H-SI/A NPF (USD) - Capitalisation 317,463.35 672,992.14 340,492.91 649,962.58
Class SI/D NPF (CHF) - Distribution - 26,724.48 8,424.48 18,300.00
Class SI/D NPF (EUR) - Distribution 9,855.97 - 9,855.97 -
Class H-SI/D NPF (CHF) - Distribution 51,655.00 4,480.00 21,495.00 34,640.00
Class H-SI/D NPF (GBP) - Distribution 90,800.00 - 90,800.00 -
The accompanying notes form an integral part of these financial statements. 20Page Mirova Funds - Mirova Global Sustainable Equity Fund Key figures
Year ending as at: 31/12/19 31/12/18 31/12/17
Total Net Assets EUR 814,142,088.29 364,121,970.02 162,739,085.51 Class F/A NPF (USD) - Capitalisation Number of shares 10,445.23 - - Net asset value per share USD 110.39 - - Class F/A NPF (EUR) - Capitalisation Number of shares - - 3,250.00 Net asset value per share EUR - - 101.61 Class I/A (EUR) - Capitalisation Number of shares 7,916.35 4,322.12 1,686.57 Net asset value per share EUR 21,166.18 15,732.76 16,083.96 Class I/A NPF (EUR) - Capitalisation Number of shares 608,562.23 433,636.73 - Net asset value per share EUR 137.86 101.73 - Class I/A (USD) - Capitalisation Number of shares 71,360.14 1,000.00 - Net asset value per share USD 121.50 91.96 - Class I/A NPF (USD) - Capitalisation Number of shares 6,958.81 586.14 - Net asset value per share USD 126.24 94.88 - Class I/D (EUR) - Distribution Number of shares 5,221.49 - - Net asset value per share EUR 106.89 - - Dividend per share - - - Class M/D (EUR) - Distribution Number of shares 1,956.20 1,776.08 1,582.63 Net asset value per share EUR 108,000.64 79,907.41 81,546.23 Dividend per share 387.70 300.80 405.29 Class N/A (EUR) - Capitalisation Number of shares 142,569.86 14,339.16 1.00 Net asset value per share EUR 212.69 158.26 162.42 Class N/A NPF (EUR) - Capitalisation Number of shares 22,076.36 4,976.25 - Net asset value per share EUR 128.71 95.12 - Class N/A NPF (USD) - Capitalisation Number of shares 7,684.48 - - Net asset value per share USD 112.19 - - Class N/D NPF (USD) - Distribution Number of shares 46,168.41 30,000.00 - Net asset value per share USD 118.97 90.51 - Dividend per share 0.17 - - Class R/A (CHF) - Capitalisation Number of shares 300.00 - - Net asset value per share CHF 105.28 - - Class R/A (EUR) - Capitalisation Number of shares 129,186.21 51,371.87 26,059.47 Net asset value per share EUR 202.07 151.45 156.19 Class R/A NPF (EUR) - Capitalisation Number of shares 113,099.26 31,840.14 - Net asset value per share EUR 135.15 100.79 -
The accompanying notes form an integral part of these financial statements. 21Page Mirova Funds - Mirova Global Sustainable Equity Fund Key figures
Year ending as at: 31/12/19 31/12/18 31/12/17
Total Net Assets EUR 814,142,088.29 364,121,970.02 162,739,085.51 Class R/A (USD) - Capitalisation Number of shares 12,583.14 - - Net asset value per share USD 124.83 - - Class R/A NPF (USD) - Capitalisation Number of shares 8,914.78 1.15 - Net asset value per share USD 122.46 93.10 - Class RE/A (EUR) - Capitalisation Number of shares 7,455.77 3,801.66 3,858.14 Net asset value per share EUR 193.01 145.34 150.52 Class RE/A NPF (EUR) - Capitalisation Number of shares 2,273.06 2,983.45 - Net asset value per share EUR 133.76 100.29 - Class RE/D (EUR) - Distribution Number of shares 1.00 - - Net asset value per share EUR 102.31 - - Dividend per share - - - Class SI/A NPF (EUR) - Capitalisation Number of shares 500,550.92 57,256.78 5,704.15 Net asset value per share EUR 141.04 103.88 105.64 Class SI/A NPF (USD) - Capitalisation Number of shares 33,812.59 1,493.01 - Net asset value per share USD 119.31 89.49 - Class H-SI/A NPF (CHF) - Capitalisation Number of shares 455,794.36 425,938.60 - Net asset value per share CHF 117.26 89.98 - Class H-SI/A NPF (EUR) - Capitalisation Number of shares 414,653.61 110,382.56 - Net asset value per share EUR 120.02 90.81 - Class H-SI/A NPF (GBP) - Capitalisation Number of shares 37,342.00 14,477.00 - Net asset value per share GBP 125.17 94.15 - Class H-SI/A NPF (USD) - Capitalisation Number of shares 649,962.58 317,463.35 - Net asset value per share USD 125.66 93.47 - Class SI/D NPF (CHF) - Distribution Number of shares 18,300.00 - - Net asset value per share CHF 109.23 - - Dividend per share - - - Class SI/D NPF (EUR) - Distribution Number of shares - 9,855.97 9,855.97 Net asset value per share EUR - 96.84 98.47 Dividend per share 0.47 - - Class H-SI/D NPF (CHF) - Distribution Number of shares 34,640.00 51,655.00 - Net asset value per share CHF 116.56 90.40 - Dividend per share 0.40 - - Class H-SI/D NPF (GBP) - Distribution Number of shares - 90,800.00 - Net asset value per share GBP - 102.04 - Dividend per share - - -
The accompanying notes form an integral part of these financial statements. 22Page Mirova Funds - Mirova Global Sustainable Equity Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 801,857,699.54 98.49 on another regulated market Shares 801,857,699.54 98.49 Belgium 18,347,683.06 2.25 273,601.00 KBC GROUPE SA EUR 18,347,683.06 2.25 Denmark 97,689,088.99 12.01 111,805.00 CHRISTIAN HANSEN DKK 7,920,985.88 0.97 62,777.00 COLOPLAST -B- DKK 6,942,644.74 0.85 581,342.00 NOVO NORDISK DKK 30,080,412.75 3.70 305,643.00 ORSTED DKK 28,181,736.63 3.47 272,652.00 VESTAS WIND SYSTEMS AS DKK 24,563,308.99 3.02 France 40,810,774.89 5.01 187,147.00 DANONE EUR 13,830,163.30 1.70 114,469.00 ESSILORLUXOTTICA SA EUR 15,544,890.20 1.91 364,079.00 VALEO SA EUR 11,435,721.39 1.40 Germany 55,121,919.54 6.77 37,506.00 ALLIANZ SE REG SHS EUR 8,191,310.40 1.01 170,135.00 FRESENIUS SE & CO KGAA EUR 8,537,374.30 1.05 66,532.00 SAP AG EUR 8,005,130.24 0.98 323,967.00 SYMRISE AG EUR 30,388,104.60 3.73 Hong Kong 18,210,266.38 2.24 1,947,096.00 AIA GROUP LTD HKD 18,210,266.38 2.24 Ireland 29,539,982.54 3.63 350,070.00 EATON CORPORATION PUBLIC LIMITED COMPANY USD 29,539,982.54 3.63 Japan 40,866,452.16 5.02 759,100.00 SEKISUI HOUSE LTD JPY 14,520,807.02 1.78 235,633.00 TAKEDA PHARMA CO LTD JPY 8,367,746.55 1.03 564,500.00 TERUMO CORP. JPY 17,977,898.59 2.21 Jersey Island 15,019,304.56 1.84 177,521.00 APTIV - REGISTERED USD 15,019,304.56 1.84 Switzerland 7,352,939.10 0.90 14,714.00 GEBERIT AG CHF 7,352,939.10 0.90 Taiwan 20,312,639.91 2.49 392,443.00 TAIWAN SEMICON ADR (REPR 5 SHS) USD 20,312,639.91 2.49 The Netherlands 34,931,999.39 4.29 18,424.00 ADYEN - PARTS SOCIALES EUR 13,467,944.00 1.65 34,513.00 ASML HLDG EUR 9,101,078.10 1.12 241,323.00 UNILEVER NV EUR 12,362,977.29 1.52 United Kingdom 24,197,176.28 2.97 3,548,380.00 LEGAL GENERAL GROUP PLC GBP 12,688,489.29 1.56 673,008.00 PRUDENTIAL PLC GBP 11,508,686.99 1.41 United States of America 399,457,472.74 49.07 60,392.00 ADOBE INC USD 17,744,218.73 2.18 21,436.00 ALPHABET -A- USD 25,577,874.42 3.14 200,448.00 AMERCIAN WATER WORKS CO INC USD 21,937,671.98 2.69 254,826.00 DANAHER CORP USD 34,842,489.51 4.28 885,361.00 EBAY USD 28,481,412.66 3.50 175,099.00 ECOLAB INC USD 30,104,548.78 3.70 52,623.00 ESTEE LAUDER COMPANIES INC -A- USD 9,682,632.00 1.19 201,945.00 GILEAD SCIENCES INC USD 11,690,321.69 1.44 155,745.00 MASTERCARD INC -A- USD 41,428,863.74 5.09 305,126.00 MICROSOFT CORP USD 42,867,144.94 5.27 65,038.00 NEXTERA ENERGY USD 14,030,825.91 1.72 151,288.00 ORACLE CORP USD 7,140,524.04 0.88 85,986.00 ROPER TECHNOLOGIES USD 27,134,806.93 3.33 91,896.00 SIGNATURE BANK USD 11,183,886.47 1.37 134,084.00 THERMO FISHER SCIEN SHS USD 38,806,119.45 4.77 173,144.00 VISA INC -A- USD 28,983,302.98 3.56 88,000.00 WATTS WATER TECHNOLOGIES INC CLASS -A- USD 7,820,828.51 0.96
Total securities portfolio 801,857,699.54 98.49
The accompanying notes form an integral part of these financial statements. 23Page Mirova Funds - Mirova Global Sustainable Equity Fund Statement of operations and changes in net assets from 01/01/19 to 31/12/19 Expressed in EUR
Income 8,399,627.21 Net dividends 2Note 8,299,453.09 Bank interest on cash account 98,881.53 Other income 1,292.59 Expenses 7,039,072.93 Management fees 4Note 4,760,048.07 Custodian & sub-custodian fees 75,372.42 Taxe d'abonnement 6Note 83,487.40 Administration fees 4Note 530,787.13 Performance fees 5Note 1,111,405.03 Bank interest on overdrafts 76,825.90 Transaction fees 2Note 342,151.97 Other expenses 58,995.01 Net income from investments 1,360,554.28 Net realised profit / loss on: - sales of investment securities 2Note 16,771,889.72 - forward foreign exchange contracts 2Note -125,950.37 - foreign exchange 2Note 3,078,451.99 Net realised profit 21,084,945.62 Movement in net unrealised appreciation / depreciation on: - investments 2Note 146,435,260.60 - forward foreign exchange contracts 2Note 427,902.17 Increase in net assets as a result of operations 167,948,108.39 Dividends paid 9Note -717,392.07 Subscription capitalisation shares 558,107,958.83 Subscription distribution shares 31,628,732.54 Redemption capitalisation shares -280,453,148.60 Redemption distribution shares -26,494,140.82 Increase in net assets 450,020,118.27
Net assets at the beginning of the year 364,121,970.02
Net assets at the end of the year 814,142,088.29
The accompanying notes form an integral part of these financial statements. 24Page Mirova Funds - Mirova Europe Sustainable Equity Fund
25Page Mirova Funds - Mirova Europe Sustainable Equity Fund Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 270,284,722.35 Securities portfolio at market value 2Note 268,362,294.14 Cost price 233,798,792.90 Unrealised profit on the securities portfolio 34,563,501.24 Cash at banks and liquidities 1,537,208.97 Subscribers receivable 1,963.98 Dividends receivable 2Note 149,542.74 Unrealised appreciation on forward foreign exchange contracts 2Note 233,712.52 Liabilities 1,484,181.82 Administration fees payable 4Note 99,466.56 Taxe d'abonnement payable 6Note 7,808.17 Performance fees payable 5Note 281,809.21 Redeemers payable 117,219.50 Management fees payable 4Note 977,878.38 Net asset value 268,800,540.53
Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class I/A (EUR) - Capitalisation 52,839.00 39,981.21 48,610.08 44,210.13
Class I/A (GBP) - Capitalisation 703.15 - - 703.15
Class I/D (EUR) - Distribution 1.00 - - 1.00
Class M/D (EUR) - Distribution 3,579.70 403.73 645.49 3,337.94
Class R/A (EUR) - Capitalisation 38,945.21 2,746.73 11,914.88 29,777.06
Class R/D (EUR) - Distribution 154.95 - - 154.95
Class RE/D (EUR) - Distribution - 1.00 - 1.00
The accompanying notes form an integral part of these financial statements. 26Page Mirova Funds - Mirova Europe Sustainable Equity Fund Key figures
Year ending as at: 31/12/19 31/12/18 31/12/17
Total Net Assets EUR 268,800,540.53 225,089,804.67 272,906,727.26 Class I/A (EUR) - Capitalisation Number of shares 44,210.13 52,839.00 25,965.50 Net asset value per share EUR 416.97 318.40 369.88 Class I/A (GBP) - Capitalisation Number of shares 703.15 703.15 703.15 Net asset value per share GBP 119.54 96.67 109.79 Class I/D (EUR) - Distribution Number of shares 1.00 1.00 1.00 Net asset value per share EUR 389.93 302.57 354.58 Dividend per share 5.06 5.44 4.38 Class M/D (EUR) - Distribution Number of shares 3,337.94 3,579.70 3,875.39 Net asset value per share EUR 71,714.20 55,103.60 64,569.88 Dividend per share 1,048.13 1,129.51 909.52 Class R/A (EUR) - Capitalisation Number of shares 29,777.06 38,945.21 39,697.15 Net asset value per share EUR 363.83 279.69 325.75 Class R/D (EUR) - Distribution Number of shares 154.95 154.95 157.95 Net asset value per share EUR 353.46 273.53 320.56 Dividend per share 1.92 2.22 1.83 Class RE/D (EUR) - Distribution Number of shares 1.00 - - Net asset value per share EUR 103.18 - - Dividend per share - - -
The accompanying notes form an integral part of these financial statements. 27Page Mirova Funds - Mirova Europe Sustainable Equity Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 264,622,389.14 98.45 on another regulated market Shares 264,622,389.14 98.45 Belgium 9,557,092.64 3.56 951,196.00 BIOCARTIS GROUP 144/REG S EUR 5,440,841.12 2.03 94,932.00 UMICORE SA EUR 4,116,251.52 1.53 Denmark 12,241,938.86 4.55 106,591.00 NOVO NORDISK DKK 5,515,344.28 2.05 74,665.00 VESTAS WIND SYSTEMS AS DKK 6,726,594.58 2.50 France 94,137,050.63 35.01 17,796.00 AIR LIQUIDE - REGISTERED SHS EUR 2,245,855.20 0.84 28,411.00 AIR LIQUIDE NOM. PRIME FIDELITE EUR 3,585,468.20 1.33 8,439.00 AIR LIQUIDE SA EUR 1,065,001.80 0.40 256,584.00 ARCURE SA EUR 1,093,047.84 0.41 236,597.00 AXA SA EUR 5,940,950.67 2.21 183,048.00 CIE DE SAINT-GOBAIN EUR 6,681,252.00 2.49 205,337.00 CREDIT AGRICOLE SA EUR 2,653,980.73 0.99 135,815.00 DANONE EUR 10,036,728.50 3.72 25,856.00 DASSAULT SYSTEMES SA EUR 3,789,196.80 1.41 10,734.00 EUROFINS SCIENTIFIC EUR 5,304,742.80 1.97 115,764.00 FAURECIA EUR 5,560,144.92 2.07 12,623.00 L OREAL-ACT REG PROV PRIM.FIDELITE 2013 EUR 3,332,472.00 1.24 10,946.00 L'OREAL SA EUR 2,889,744.00 1.08 333,384.00 MEDINCELL SA EUR 2,293,681.92 0.85 127,909.00 NEXANS SA EUR 5,562,762.41 2.07 336,368.00 ORANGE EUR 4,413,148.16 1.64 149,133.00 RENAULT SA EUR 6,290,429.94 2.34 291,164.00 SUEZ ACT. EUR 3,926,346.54 1.46 43,397.00 UNIBAIL RODAMCO EUR 6,103,788.05 2.27 652,026.00 VOTALIA EUR 8,508,939.30 3.16 45,279.00 WORLDLINE SA EUR 2,859,368.85 1.06 Germany 36,795,136.99 13.69 112,492.00 FRESENIUS SE & CO KGAA EUR 5,644,848.56 2.10 68,487.00 GRENKELEASING NAMENS-AKT. EUR 6,317,925.75 2.35 277,838.00 INFINEON TECHNOLOGIES REG SHS EUR 5,642,889.78 2.10 74,913.00 MORPHOSYS EUR 9,498,968.40 3.54 7,276.00 RATIONAL NAMEN EUR 5,216,892.00 1.94 41,615.00 WIRECARD AG EUR 4,473,612.50 1.66 Ireland 15,578,887.29 5.80 19,861.00 ACCENTURE - SHS CLASS A USD 3,725,728.97 1.39 42,811.00 KERRY GROUP -A- EUR 4,756,302.10 1.77 207,147.00 SMURFIT KAPPA PLC EUR 7,096,856.22 2.64 Italy 11,969,675.33 4.45 2,839,058.00 INTESA SANPAOLO SPA EUR 6,667,527.71 2.48 407,231.00 UNICREDIT -REGISTERD SHARE EUR 5,302,147.62 1.97 Spain 4,860,388.30 1.81 975,394.00 BANCO BILBAO VIZCAYA ARGENT SA REG EUR 4,860,388.30 1.81 Sweden 6,496,591.02 2.42 775,029.00 SKANDINAVISKA ENSKILDA BANKEN -A- SEK 6,496,591.02 2.42 Switzerland 2,280,198.22 0.85 106,058.00 ABB LTD REG SHS CHF 2,280,198.22 0.85 The Netherlands 23,787,259.68 8.85 410,108.00 ALFEN NV EUR 6,742,175.52 2.51 23,979.00 ASML HLDG EUR 6,323,262.30 2.35 133,350.00 CORBION EUR 3,749,802.00 1.40 228,891.00 QIAGEN REGD EUR EUR 6,972,019.86 2.59 United Kingdom 30,452,115.66 11.33 101,056.00 ASTRAZENECA PLC GBP 9,072,201.48 3.38 1,343,319.00 AVIVA PLC GBP 6,637,725.44 2.47 91,675.00 CRODA INTL - REGISTERED SHS GBP 5,539,340.30 2.06 540,916.00 POLYPIPE GROUP PLC GBP 3,447,154.54 1.28 3,323,172.00 VODAFONE GROUP GBP 5,755,693.90 2.14 United States of America 16,466,054.52 6.13 168,475.00 FIRST SOLAR INC USD 8,398,985.30 3.13 38,484.00 NVIDIA CORP USD 8,067,069.22 3.00
The accompanying notes form an integral part of these financial statements. 28Page Mirova Funds - Mirova Europe Sustainable Equity Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets
Shares/Units of UCITS/UCIS 3,739,905.00 1.39 Shares/Units in investment funds 3,739,905.00 1.39 France 3,739,905.00 1.39 300.00 OSTRUM SUSTAINABLE TRESORERIE I-CAP EUR 3,739,905.00 1.39
Total securities portfolio 268,362,294.14 99.84
The accompanying notes form an integral part of these financial statements. 29Page Mirova Funds - Mirova Europe Sustainable Equity Fund Statement of operations and changes in net assets from 01/01/19 to 31/12/19 Expressed in EUR
Income 6,364,994.37 Net dividends 2Note 6,363,156.65 Bank interest on cash account 1,532.51 Other interest 272.71 Other income 32.50 Expenses 2,870,574.84 Management fees 4Note 1,925,583.14 Custodian & sub-custodian fees 18,109.90 Taxe d'abonnement 6Note 30,481.07 Administration fees 4Note 230,333.88 Performance fees 5Note 281,784.87 Bank interest on overdrafts 8,900.43 Transaction fees 2Note 357,706.23 Other expenses 17,675.32 Net income from investments 3,494,419.53 Net realised profit / loss on: - sales of investment securities 2Note 3,581,423.64 - forward foreign exchange contracts 2Note 1,377,468.70 - foreign exchange 2Note 1,035,859.58 Net realised profit 9,489,171.45 Movement in net unrealised appreciation / depreciation on: - investments 2Note 60,112,329.59 - forward foreign exchange contracts 2Note 233,712.52 Increase in net assets as a result of operations 69,835,213.56 Dividends paid 9Note -3,749,878.85 Subscription capitalisation shares 15,903,417.38 Subscription distribution shares 24,991,609.68 Redemption capitalisation shares -22,464,155.83 Redemption distribution shares -40,805,470.08 Increase in net assets 43,710,735.86
Net assets at the beginning of the year 225,089,804.67
Net assets at the end of the year 268,800,540.53
The accompanying notes form an integral part of these financial statements. 30Page Mirova Funds - Mirova Euro Sustainable Equity Fund
31Page Mirova Funds - Mirova Euro Sustainable Equity Fund Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 827,173,920.59 Securities portfolio at market value 2Note 822,353,146.90 Cost price 664,493,458.67 Unrealised profit on the securities portfolio 157,859,688.23 Cash at banks and liquidities 4,581,205.50 Subscribers receivable 239,568.19 Liabilities 4,744,238.43 Administration fees payable 4Note 279,794.69 Taxe d'abonnement payable 6Note 23,273.69 Performance fees payable 5Note 1,151,453.76 Redeemers payable 485,529.45 Management fees payable 4Note 2,804,186.84 Net asset value 822,429,682.16
Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class I/A (EUR) - Capitalisation 1,605.28 2,695.79 1,836.17 2,464.90
Class I/A NPF (USD) - Capitalisation - 55,389.00 4.00 55,385.00
Class I/D (EUR) - Distribution 376.00 21.00 376.00 21.00
Class M/D (EUR) - Distribution 29,319.90 3,500.07 3,164.69 29,655.28
Class N/A (EUR) - Capitalisation 13,736.72 32,180.07 22,802.04 23,114.75
Class R/A (EUR) - Capitalisation 180,756.98 96,147.63 89,832.73 187,071.88
Class R/A NPF (USD) - Capitalisation - 2.00 1.00 1.00
Class R/D (EUR) - Distribution 416.57 14.35 - 430.92
Class RE/A (EUR) - Capitalisation 1.00 105.43 - 106.43
Class RE/D (EUR) - Distribution - 1.00 - 1.00
Class SI/A NPF (EUR) - Capitalisation 3,697.76 598,707.26 21,708.53 580,696.49
Class SI/D NPF (EUR) - Distribution - 312,000.00 73,000.00 239,000.00
The accompanying notes form an integral part of these financial statements. 32Page Mirova Funds - Mirova Euro Sustainable Equity Fund Key figures
Year ending as at: 31/12/19 31/12/18 31/12/17
Total Net Assets EUR 822,429,682.16 523,572,099.01 587,955,036.98 Class I/A (EUR) - Capitalisation Number of shares 2,464.90 1,605.28 1,308.23 Net asset value per share EUR 83,471.37 65,066.12 72,586.69 Class I/A NPF (USD) - Capitalisation Number of shares 55,385.00 - - Net asset value per share USD 114.98 - - Class I/D (EUR) - Distribution Number of shares 21.00 376.00 948.00 Net asset value per share EUR 71,319.42 56,160.86 63,341.52 Dividend per share 618.77 734.34 810.09 Class M/D (EUR) - Distribution Number of shares 29,655.28 29,319.90 29,114.79 Net asset value per share EUR 16,373.49 12,904.58 14,470.95 Dividend per share 254.19 198.34 210.17 Class N/A (EUR) - Capitalisation Number of shares 23,114.75 13,736.72 1.00 Net asset value per share EUR 162.68 126.95 141.87 Class R/A (EUR) - Capitalisation Number of shares 187,071.88 180,756.98 106,429.00 Net asset value per share EUR 123.45 96.85 108.80 Class R/A NPF (USD) - Capitalisation Number of shares 1.00 - - Net asset value per share USD 113.92 - - Class R/D (EUR) - Distribution Number of shares 430.92 416.57 294.29 Net asset value per share EUR 147.46 116.05 130.77 Dividend per share 0.37 0.45 0.72 Class RE/A (EUR) - Capitalisation Number of shares 106.43 1.00 76.82 Net asset value per share EUR 146.29 115.45 130.29 Class RE/D (EUR) - Distribution Number of shares 1.00 - - Net asset value per share EUR 101.73 - - Dividend per share - - - Class SI/A NPF (EUR) - Capitalisation Number of shares 580,696.49 3,697.76 - Net asset value per share EUR 120.73 93.44 - Class SI/D NPF (EUR) - Distribution Number of shares 239,000.00 - - Net asset value per share EUR 112.59 - - Dividend per share - - -
The accompanying notes form an integral part of these financial statements. 33Page Mirova Funds - Mirova Euro Sustainable Equity Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 776,227,651.78 94.38 on another regulated market Shares 776,227,651.78 94.38 Austria 8,872,896.00 1.08 231,065.00 ANDRITZ AG EUR 8,872,896.00 1.08 Belgium 36,533,558.74 4.44 262,187.00 KBC GROUPE SA EUR 17,582,260.22 2.14 500,228.00 ONTEX GROUP NV EUR 9,379,275.00 1.14 220,757.00 UMICORE SA EUR 9,572,023.52 1.16 France 359,671,610.91 43.73 939,234.00 AXA SA EUR 23,584,165.74 2.87 492,457.00 CIE DE SAINT-GOBAIN EUR 17,974,680.50 2.19 1,502,534.00 CREDIT AGRICOLE SA EUR 19,420,251.95 2.36 192,157.00 CRITEO ADR REPR 1 SHS USD 2,966,664.42 0.36 317,461.00 DANONE EUR 23,460,367.90 2.85 97,349.00 DASSAULT SYSTEMES SA EUR 14,266,495.95 1.73 467,497.00 ELIS SA EUR 8,648,694.50 1.05 124,705.00 ESSILORLUXOTTICA SA EUR 16,934,939.00 2.06 21,894.00 ESSILORLUXOTTICA SA EUR 2,988,531.00 0.36 596,110.00 GETLINK ACT EUR 9,245,666.10 1.12 19,427.00 HERMES INTERNATIONAL SA EUR 12,942,267.40 1.57 34,340.00 INGENICO GROUP EUR 3,324,112.00 0.40 406,454.00 JC DECAUX SA EUR 11,169,355.92 1.36 65,685.00 L OREAL-ACT REG PROV PRIM.FIDELITE 2013 EUR 17,340,840.00 2.11 166,813.00 LEGRAND SA EUR 12,117,296.32 1.47 20,114.00 L'OREAL SA EUR 5,310,096.00 0.65 66,698.00 LVMH EUR 27,626,311.60 3.36 90,119.00 MICHELIN SA REG SHS EUR 9,831,982.90 1.20 231,816.00 NEXANS SA EUR 10,081,677.84 1.23 1,179,917.00 ORANGE EUR 15,480,511.04 1.88 207,741.00 ORPEA SA EUR 23,744,796.30 2.89 286,281.00 PUBLICIS GROUPE EUR 11,554,301.16 1.40 270,723.00 RENAULT SA EUR 11,419,096.14 1.39 402,674.00 SANOFI EUR 36,087,643.88 4.39 735,550.00 SUEZ ACT. EUR 9,918,891.75 1.21 35,344.00 WORLDLINE SA EUR 2,231,973.60 0.27 Germany 144,598,561.53 17.58 113,246.00 ALLIANZ SE REG SHS EUR 24,732,926.40 3.01 82,411.00 CONTINENTAL AG EUR 9,498,691.86 1.15 989,306.00 DEUTSCHE TELEKOM AG REG SHS EUR 14,414,188.42 1.75 512,926.00 FRESENIUS SE & CO KGAA EUR 25,738,626.68 3.13 473,957.00 INFINEON TECHNOLOGIES REG SHS EUR 9,626,066.67 1.17 45,181.00 MUENCHENER RUECKVERSICHERUNGS AG REG SHS EUR 11,882,603.00 1.44 108,740.00 SAP AG EUR 13,083,596.80 1.59 128,845.00 SIEMENS AG REG EUR 15,015,596.30 1.83 219,683.00 SYMRISE AG EUR 20,606,265.40 2.51 Ireland 49,103,758.17 5.97 205,431.00 KINGSPAN GROUP EUR 11,185,717.95 1.36 78,580.00 LINDE PLC EUR 14,993,064.00 1.82 669,147.00 SMURFIT KAPPA PLC EUR 22,924,976.22 2.79 Italy 33,568,069.05 4.08 11,377,161.00 INTESA SANPAOLO SPA EUR 26,719,262.61 3.25 526,022.00 UNICREDIT -REGISTERD SHARE EUR 6,848,806.44 0.83 Spain 55,391,687.66 6.74 79,777.00 AMADEUS IT -A- EUR 5,807,765.60 0.71 159,542.00 FERROVIAL SA EUR 4,302,847.74 0.52 997,237.00 GAMESA CORPORACION TECNOLOGICA SA EUR 15,591,800.50 1.90 457,494.00 GRIFOLS SA -A- EUR 14,379,036.42 1.75 486,812.00 INDITEX SHARE FROM SPLIT EUR 15,310,237.40 1.86 The Netherlands 69,962,232.20 8.51 114,705.00 ASML HLDG EUR 30,247,708.50 3.68 218,348.00 BASIC-FIT NV EUR 7,391,079.80 0.90 248,472.00 CORBION EUR 6,987,032.64 0.85 494,562.00 UNILEVER NV EUR 25,336,411.26 3.08
The accompanying notes form an integral part of these financial statements. 34Page Mirova Funds - Mirova Euro Sustainable Equity Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets
United Kingdom 18,525,277.52 2.25 824,812.00 RELX PLC EUR 18,525,277.52 2.25
Shares/Units of UCITS/UCIS 46,125,495.12 5.61 Shares/Units in investment funds 46,125,495.12 5.61 France 46,125,495.12 5.61 3,700.00 OSTRUM SUSTAINABLE TRESORERIE I-CAP EUR 46,125,495.12 5.61
Total securities portfolio 822,353,146.90 99.99
The accompanying notes form an integral part of these financial statements. 35Page Mirova Funds - Mirova Euro Sustainable Equity Fund Statement of operations and changes in net assets from 01/01/19 to 31/12/19 Expressed in EUR
Income 18,411,019.24 Net dividends 2Note 18,398,567.72 Bank interest on cash account 12,451.52 Expenses 7,798,873.83 Management fees 4Note 5,200,812.53 Custodian & sub-custodian fees 40,033.24 Taxe d'abonnement 6Note 79,472.13 Administration fees 4Note 598,257.06 Performance fees 5Note 1,151,453.76 Bank interest on overdrafts 25,452.99 Transaction fees 2Note 648,240.33 Other expenses 55,151.79 Net income from investments 10,612,145.41 Net realised profit / loss on: - sales of investment securities 2Note 14,655,257.30 - foreign exchange 2Note 89,160.82 Net realised profit 25,356,563.53 Movement in net unrealised appreciation / depreciation on: - investments 2Note 138,687,252.92 Increase in net assets as a result of operations 164,043,816.45 Dividends paid 9Note -7,804,849.50 Subscription capitalisation shares 294,474,151.80 Subscription distribution shares 81,479,849.47 Redemption capitalisation shares -154,735,297.39 Redemption distribution shares -78,600,087.68 Increase in net assets 298,857,583.15
Net assets at the beginning of the year 523,572,099.01
Net assets at the end of the year 822,429,682.16
The accompanying notes form an integral part of these financial statements. 36Page Mirova Funds - Mirova Europe Environmental Equity Fund
37Page Mirova Funds - Mirova Europe Environmental Equity Fund Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 1,020,713,713.27 Securities portfolio at market value 2Note 1,013,887,786.81 Cost price 800,146,016.24 Unrealised profit on the securities portfolio 213,741,770.57 Cash at banks and liquidities 5,204,426.95 Subscribers receivable 374,927.46 Dividends receivable 2Note 163,130.50 Unrealised appreciation on forward foreign exchange contracts 2Note 1,083,441.55 Liabilities 8,545,206.74 Bank overdrafts 750,000.00 Brokers payable 386,023.39 Administration fees payable 4Note 363,811.36 Taxe d'abonnement payable 6Note 41,276.12 Performance fees payable 5Note 3,195,159.79 Redeemers payable 13,435.26 Management fees payable 4Note 3,794,009.75 Other liabilities 1,491.07 Net asset value 1,012,168,506.53
Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class I/A (EUR) - Capitalisation 2,983.20 6,757.91 785.83 8,955.28
Class I/D (EUR) - Distribution - 117.00 - 117.00
Class M/D (EUR) - Distribution 6,375.11 1,648.80 344.06 7,679.85
Class N/A (EUR) - Capitalisation 19,753.65 56,526.79 13,970.26 62,310.18
Class R/A (EUR) - Capitalisation 454,864.03 460,880.84 61,505.92 854,238.95
Class R/D (EUR) - Distribution 168,443.98 285.83 17,544.85 151,184.96
Class RE/A (EUR) - Capitalisation - 2.00 - 2.00
Class RE/D (EUR) - Distribution - 1.00 - 1.00
Class SI/A NPF (EUR) - Capitalisation - 200,000.00 - 200,000.00
The accompanying notes form an integral part of these financial statements. 38Page Mirova Funds - Mirova Europe Environmental Equity Fund Key figures
Year ending as at: 31/12/19 31/12/18 31/12/17
Total Net Assets EUR 1,012,168,506.53 527,744,924.96 387,588,054.33 Class I/A (EUR) - Capitalisation Number of shares 8,955.28 2,983.20 2,382.63 Net asset value per share EUR 18,342.46 13,839.03 15,117.43 Class I/D (EUR) - Distribution Number of shares 117.00 - - Net asset value per share EUR 17,621.96 - - Dividend per share - - - Class M/D (EUR) - Distribution Number of shares 7,679.85 6,375.11 4,899.35 Net asset value per share EUR 86,709.81 65,156.76 71,271.69 Dividend per share 763.06 640.61 755.43 Class N/A (EUR) - Capitalisation Number of shares 62,310.18 19,753.65 - Net asset value per share EUR 117.97 89.09 - Class R/A (EUR) - Capitalisation Number of shares 854,238.95 454,864.03 18,074.34 Net asset value per share EUR 157.84 119.88 131.89 Class R/D (EUR) - Distribution Number of shares 151,184.96 168,443.98 - Net asset value per share EUR 115.58 87.79 - Dividend per share - - 0.18 Class RE/A (EUR) - Capitalisation Number of shares 2.00 - - Net asset value per share EUR 112.44 - - Class RE/D (EUR) - Distribution Number of shares 1.00 - - Net asset value per share EUR 104.16 - - Dividend per share - - - Class SI/A NPF (EUR) - Capitalisation Number of shares 200,000.00 - - Net asset value per share EUR 101.30 - -
The accompanying notes form an integral part of these financial statements. 39Page Mirova Funds - Mirova Europe Environmental Equity Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 968,877,165.37 95.72 on another regulated market Shares 968,877,165.37 95.72 Belgium 23,823,718.40 2.35 549,440.00 UMICORE SA EUR 23,823,718.40 2.35 Denmark 80,719,988.28 7.97 147,705.00 CHRISTIAN HANSEN DKK 10,464,372.97 1.03 561,016.00 NOVOZYMES -B- DKK 24,475,238.01 2.42 175,749.00 ORSTED DKK 16,204,892.74 1.60 328,287.00 VESTAS WIND SYSTEMS AS DKK 29,575,484.56 2.92 France 278,105,500.60 27.47 17,269.00 AIR LIQUIDE NOM. PRIME FIDELITE EUR 2,179,347.80 0.22 166,696.00 AIR LIQUIDE SA EUR 21,037,035.20 2.08 85,817.00 AIR LIQUIDE SA EUR 10,830,105.40 1.07 774,469.00 ALSTOM SA EUR 32,705,825.87 3.22 295,780.00 BONDUELLE S.C.A. EUR 6,891,674.00 0.68 514,862.00 CIE DE SAINT-GOBAIN EUR 18,792,463.00 1.86 1,008,726.00 CREDIT AGRICOLE SA EUR 13,037,783.55 1.29 371,079.00 DANONE EUR 27,422,738.10 2.70 207,123.00 DASSAULT SYSTEMES SA EUR 30,353,875.65 2.99 38,608.00 EUROFINS SCIENTIFIC EUR 19,080,073.60 1.89 669,299.00 GETLINK ACT EUR 10,380,827.49 1.03 225,929.00 HOFF GR CM TECH - SHS EUR 4,315,243.90 0.43 206,240.00 LEGRAND SA EUR 14,981,273.60 1.48 439,334.00 MEDINCELL SA EUR 3,022,617.92 0.30 205,204.00 MICHELIN SA REG SHS EUR 22,387,756.40 2.21 1,097,551.00 ORANGE EUR 14,399,869.12 1.42 170,323.00 SCHNEIDER ELECTRIC SE EUR 15,584,554.50 1.54 820,110.00 VOTALIA EUR 10,702,435.50 1.06 Germany 120,918,399.36 11.95 453,192.00 AIXTRON AG EUR 3,864,821.38 0.38 100,206.00 ALLIANZ SE REG SHS EUR 21,884,990.40 2.16 563,722.00 CAPITAL STAGE AG EUR 5,293,349.58 0.52 875,220.00 INFINEON TECHNOLOGIES REG SHS EUR 17,775,718.20 1.76 86,691.00 MUENCHENER RUECKVERSICHERUNGS AG REG SHS EUR 22,799,733.00 2.25 13,744.00 RATIONAL NAMEN EUR 9,854,448.00 0.97 420,526.00 SYMRISE AG EUR 39,445,338.80 3.91 Ireland 34,418,041.53 3.40 307,909.00 KINGSPAN GROUP EUR 16,765,645.05 1.66 515,248.00 SMURFIT KAPPA PLC EUR 17,652,396.48 1.74 Norway 1,121,813.35 0.11 39,746.00 TOMRA SYSTEMS ASA NOK 1,121,813.35 0.11 Spain 32,349,248.05 3.20 1,273,830.00 GAMESA CORPORACION TECNOLOGICA SA EUR 19,916,332.05 1.97 1,828,370.00 SOLARIA ENERGIA EUR 12,432,916.00 1.23 Sweden 34,572,070.51 3.42 775,047.00 AXFOOD AB SEK 15,371,491.97 1.52 1,242,333.00 NIBE INDUSTRIER -B- SEK 19,200,578.54 1.90 Switzerland 50,374,953.62 4.98 42,354.00 GEBERIT AG CHF 21,165,310.76 2.09 1,539.00 GEBERIT AG NAM-AKT CHF 768,811.21 0.08 98,456.00 ROCHE HOLDING AG GENUSSSCHEIN CHF 28,440,831.65 2.81 The Netherlands 93,889,816.71 9.28 794,222.00 ALFEN NV EUR 13,057,009.68 1.29 117,000.00 ASML HLDG EUR 30,852,900.00 3.05 517,155.00 CORBION EUR 14,542,398.60 1.44 144,107.00 DSM KONINKLIJKE EUR 16,730,822.70 1.65 365,151.00 UNILEVER NV EUR 18,706,685.73 1.85 United Kingdom 112,173,363.51 11.08 636,053.00 CRODA INTL - REGISTERED SHS GBP 38,432,659.00 3.79 1,167,362.00 HALMA PLC GBP 29,151,330.52 2.88 1,241,117.00 PENNON GROUP PLC GBP 15,013,216.79 1.48 1,996,215.00 POLYPIPE GROUP PLC GBP 12,721,497.61 1.26 233,020.00 RECKITT BENCKISER GROUP PLC GBP 16,854,659.59 1.67
The accompanying notes form an integral part of these financial statements. 40Page Mirova Funds - Mirova Europe Environmental Equity Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets
United States of America 106,410,251.45 10.51 286,747.00 AQUA AMERICA INC USD 11,991,005.95 1.18 119,706.00 DANAHER CORP USD 16,367,462.70 1.62 145,784.00 ECOLAB INC USD 25,064,458.05 2.48 199,928.00 FIRST SOLAR INC USD 9,967,011.92 0.98 148,645.00 THERMO FISHER SCIEN SHS USD 43,020,312.83 4.25
Shares/Units of UCITS/UCIS 45,010,621.44 4.45 Shares/Units in investment funds 45,010,621.44 4.45 France 45,010,621.44 4.45 13.50 OSTRUM CASH EURIBOR SICAV -I- CAP EUR 1,378,396.44 0.14 3,500.00 OSTRUM SUSTAINABLE TRESORERIE I-CAP EUR 43,632,225.00 4.31
Total securities portfolio 1,013,887,786.81 100.17
The accompanying notes form an integral part of these financial statements. 41Page Mirova Funds - Mirova Europe Environmental Equity Fund Statement of operations and changes in net assets from 01/01/19 to 31/12/19 Expressed in EUR
Income 16,590,565.05 Net dividends 2Note 16,351,314.07 Net interest on bonds 2Note 233,779.03 Bank interest on cash account 566.14 Other interest 379.61 Other income 4,526.20 Expenses 11,857,927.60 Management fees 4Note 6,601,510.59 Custodian & sub-custodian fees 79,434.87 Taxe d'abonnement 6Note 132,580.90 Administration fees 4Note 740,032.19 Performance fees 5Note 3,195,160.00 Bank interest on overdrafts 25,164.38 Transaction fees 2Note 1,024,456.20 Other expenses 59,588.47 Net income from investments 4,732,637.45 Net realised profit / loss on: - sales of investment securities 2Note -6,545,642.36 - forward foreign exchange contracts 2Note -1,757,454.39 - foreign exchange 2Note -752,152.96 Net realised loss -4,322,612.26 Movement in net unrealised appreciation / depreciation on: - investments 2Note 217,073,769.35 - forward foreign exchange contracts 2Note 751,251.30 Increase in net assets as a result of operations 213,502,408.39 Dividends paid 9Note -4,847,502.63 Subscription capitalisation shares 198,072,689.07 Subscription distribution shares 128,190,867.10 Redemption capitalisation shares -22,745,562.46 Redemption distribution shares -27,749,317.90 Increase in net assets 484,423,581.57
Net assets at the beginning of the year 527,744,924.96
Net assets at the end of the year 1,012,168,506.53
The accompanying notes form an integral part of these financial statements. 42Page Mirova Funds - Mirova Women Leaders Equity Fund (launched on 29/03/19)
43Page Mirova Funds - Mirova Women Leaders Equity Fund (launched on 29/03/19) Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 28,353,824.53 Securities portfolio at market value 2Note 27,990,052.53 Cost price 26,940,422.12 Unrealised profit on the securities portfolio 1,049,630.41 Cash at banks and liquidities 338,286.86 Dividends receivable 2Note 25,217.49 Other receivables 267.65 Liabilities 25,700.88 Bank overdrafts 38.66 Administration fees payable 4Note 27.68 Taxe d'abonnement payable 6Note 708.33 Management fees payable 4Note 24,658.46 Payable on spot exchange 267.75 Net asset value 28,328,123.65
Changes in number of shares outstanding from 29/03/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 29/03/19 31/12/19
Class I/A (EUR) - Capitalisation - 975.00 - 975.00
Class Q/A NPF (EUR) - Capitalisation - 254,426.71 - 254,426.71
Class R/A (EUR) - Capitalisation - 10.00 - 10.00
Key figures
Period/Year ending as at: 31/12/19
Total Net Assets EUR 28,328,123.65 Class I/A (EUR) - Capitalisation Number of shares 975.00 Net asset value per share EUR 110.78 Class Q/A NPF (EUR) - Capitalisation Number of shares 254,426.71 Net asset value per share EUR 110.91 Class R/A (EUR) - Capitalisation Number of shares 10.00 Net asset value per share EUR 109.86
The accompanying notes form an integral part of these financial statements. 44Page Mirova Funds - Mirova Women Leaders Equity Fund (launched on 29/03/19) Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 26,581,354.98 93.83 on another regulated market Shares 26,581,354.98 93.83 Australia 1,022,793.19 3.61 171,950.00 G8 EDUCATION AUD 204,593.42 0.72 9,478.00 MACQUARIE GROUP AUD 818,199.77 2.89 Canada 786,684.23 2.78 9,748.00 CANADIAN NATIONAL RAILWAY CAD 786,684.23 2.78 Cayman Islands 189,932.87 0.67 20,599.00 FARFETCH-REGISTERED SHS -A- USD 189,932.87 0.67 Denmark 1,545,290.08 5.45 4,768.00 NOVOZYMES -B- DKK 208,011.78 0.73 4,112.00 ORSTED DKK 379,145.94 1.34 1,425.00 ROCKWOOL INT SHS -B- DKK 300,923.39 1.06 7,295.00 VESTAS WIND SYSTEMS AS DKK 657,208.97 2.32 France 2,200,211.12 7.77 9,407.00 DANONE EUR 695,177.30 2.45 19,421.00 ENGIE EUR 279,662.40 0.99 1,617.00 L'OREAL SA EUR 426,888.00 1.51 4,085.00 MICHELIN SA REG SHS EUR 445,673.50 1.57 26,891.00 ORANGE EUR 352,809.92 1.25 Germany 850,886.40 3.00 3,896.00 ALLIANZ SE REG SHS EUR 850,886.40 3.00 Italy 382,631.56 1.35 103,932.00 PRADA SPA HKD 382,631.56 1.35 Singapore 1,317,928.91 4.65 305,300.00 COMFORTDELGRO CORP SGD 481,408.55 1.70 168,700.00 RAFFLES MEDICAL GRP SGD 111,769.97 0.39 324,600.00 SINGAPORE TELECOM - SH BOARD LOT 1000 SGD 724,750.39 2.56 Switzerland 637,478.84 2.25 1,745.00 ZURICH INSURANCE GROUP NAMEN AKT CHF 637,478.84 2.25 United Kingdom 1,536,426.77 5.42 7,229.00 ASTRAZENECA PLC GBP 648,976.26 2.29 12,989.00 HALMA PLC GBP 324,360.94 1.15 7,162.00 JOHNSON MATTHEY GBP 253,228.91 0.89 14,813.00 MONDI PLC GBP 309,860.66 1.09 United States of America 16,111,091.01 56.88 2,197.00 ADOBE INC USD 645,516.77 2.28 4,159.00 AIR PRODUCTS CHEMICALS INC USD 870,666.73 3.08 8,339.00 AMERCIAN WATER WORKS CO INC USD 912,646.90 3.23 4,600.00 BRIGHT HORIZONS FAMILY SOLUTION USD 615,887.75 2.17 4,305.00 COLGATE-PALMOLIVE CO USD 264,014.43 0.93 4,940.00 ECOLAB INC USD 849,327.93 3.00 5,622.00 ELI LILLY & CO USD 658,262.33 2.32 5,287.00 ESTEE LAUDER COMPANIES INC -A- USD 972,808.00 3.44 9,391.00 GENERAL MOTORS CO USD 306,200.98 1.08 4,215.00 GILEAD SCIENCES INC USD 244,000.62 0.86 4,190.00 HAIN CELESTIAL GROUP INC USD 96,883.25 0.34 4,144.00 IBM CORP USD 494,843.44 1.75 4,470.00 INTERNATIONAL FLAVORS FRAGRANCES USD 513,781.20 1.81 9,459.00 INTERNATIONAL PAPER CO USD 388,050.73 1.37 1,133.00 INTUITIVE SURGICAL USD 596,679.69 2.11 4,388.00 KELLOGG USD 270,355.53 0.95 1,728.00 LULULEMON ATHLETICA INC SHS WHEN ISSUED USD 356,637.65 1.26 2,465.00 MASTERCARD INC -A- USD 655,700.98 2.31 6,882.00 MICROSOFT CORP USD 966,852.03 3.42 3,067.00 NVIDIA CORP USD 642,908.78 2.27 2,931.00 PROCTER AND GAMBLE CO USD 326,130.87 1.15 2,803.00 SALESFORCE COM.INC USD 406,129.10 1.43 2,952.00 STRYKER CORP USD 552,109.47 1.95 14,271.00 SUNRUN INC USD 175,574.62 0.62 6,963.00 TIFFANY CO USD 829,046.73 2.93 3,508.00 UNION PACIFIC CORP USD 564,998.95 1.99 4,683.00 VISA INC -A- USD 783,907.08 2.77 8,411.00 WASTE MANAGEMENT INC USD 853,913.19 3.01
The accompanying notes form an integral part of these financial statements. 45Page Mirova Funds - Mirova Women Leaders Equity Fund (launched on 29/03/19) Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets 2,029.00 WORKDAY -A- USD 297,255.28 1.05
Shares/Units of UCITS/UCIS 1,408,697.55 4.97 Shares/Units in investment funds 1,408,697.55 4.97 France 1,408,697.55 4.97 113.00 OSTRUM SUSTAINABLE TRESORERIE I-CAP EUR 1,408,697.55 4.97
Total securities portfolio 27,990,052.53 98.81
The accompanying notes form an integral part of these financial statements. 46Page Mirova Funds - Mirova Women Leaders Equity Fund (launched on 29/03/19) Statement of operations and changes in net assets from 29/03/19 to 31/12/19 Expressed in EUR
Income 109,243.32 Net dividends 2Note 108,314.54 Bank interest on cash account 918.78 Other income 10.00 Expenses 68,045.06 Management fees 4Note 33,357.25 Custodian & sub-custodian fees 946.37 Taxe d'abonnement 6Note 1,098.56 Administration fees 4Note 1,334.30 Bank interest on overdrafts 1,074.47 Transaction fees 2Note 26,830.75 Other expenses 3,403.36 Net income from investments 41,198.26 Net realised profit / loss on: - sales of investment securities 2Note 33,626.11 - foreign exchange 2Note -4,030.00 Net realised profit 70,794.37 Movement in net unrealised appreciation / depreciation on: - investments 2Note 1,049,630.41 Increase in net assets as a result of operations 1,120,424.78 Subscription capitalisation shares 27,207,698.87 Increase in net assets 28,328,123.65
Net assets at the beginning of the period 0.00
Net assets at the end of the period 28,328,123.65
The accompanying notes form an integral part of these financial statements. 47Page Mirova Funds - Mirova Global Carbon Neutral Equity Fund
48Page Mirova Funds - Mirova Global Carbon Neutral Equity Fund Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 32,484,483.60 Securities portfolio at market value 2Note 31,714,936.90 Cost price 27,899,923.76 Unrealised profit on the securities portfolio 3,815,013.14 Cash at banks and liquidities 153,758.93 Brokers receivable 582,893.27 Dividends receivable 2Note 32,894.50 Liabilities 509,185.77 Brokers payable 442,081.62 Taxe d'abonnement payable 6Note 799.40 Management fees payable 4Note 66,304.75 Net asset value 31,975,297.83
Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class I/A (EUR) - Capitalisation 132,182.00 142,061.00 241.00 274,002.00
Key figures
Year ending as at: 31/12/19 31/12/18
Total Net Assets EUR 31,975,297.83 11,848,308.61 Class I/A (EUR) - Capitalisation Number of shares 274,002.00 132,182.00 Net asset value per share EUR 116.69 89.63
The accompanying notes form an integral part of these financial statements. 49Page Mirova Funds - Mirova Global Carbon Neutral Equity Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 31,677,537.85 99.07 on another regulated market Shares 31,675,666.15 99.06 Australia 404,994.58 1.27 5,440.00 ASX LTD AUD 267,119.89 0.84 5,318.00 WESFARMERS AUD 137,874.69 0.43 Belgium 259,512.04 0.81 2,298.00 KBC GROUPE SA EUR 154,103.88 0.48 2,431.00 UMICORE SA EUR 105,408.16 0.33 Bermuda 301,582.85 0.94 7,280.00 BRKF RENEW PARTNERS PARTNERSHIP UNITS CAD 301,582.85 0.94 Canada 1,242,034.96 3.88 6,188.00 BANK OF NOVA SCOTIA CAD 311,823.17 0.98 9,222.00 ENBRIDGE INC CAD 327,103.50 1.02 4,666.00 ROYAL BANK OF CANADA CAD 329,370.36 1.02 5,471.00 TORONTO DOMINION BANK CAD 273,737.93 0.86 Denmark 599,231.10 1.87 2,876.00 NOVOZYMES -B- DKK 125,470.19 0.39 2,332.00 ORSTED DKK 215,021.48 0.67 2,872.00 VESTAS WIND SYSTEMS AS DKK 258,739.43 0.81 France 1,517,431.54 4.75 6,298.00 CIE DE SAINT-GOBAIN EUR 229,877.00 0.72 25,457.00 CREDIT AGRICOLE SA EUR 329,031.73 1.04 111.00 EUROFINS SCIENTIFIC EUR 54,856.20 0.17 10,003.00 GETLINK ACT EUR 155,146.53 0.49 4,766.00 HOFF GR CM TECH - SHS EUR 91,030.60 0.28 1,332.00 LEGRAND SA EUR 96,756.48 0.30 859.00 L'OREAL SA EUR 226,776.00 0.71 594.00 LVMH EUR 246,034.80 0.77 6,520.00 SUEZ ACT. EUR 87,922.20 0.27 Germany 776,371.99 2.43 3,315.00 BMW VORZUG - STIMMRECHTSLOS EUR 182,490.75 0.57 4,510.00 DAIMLER NAMEN-AKT EUR 222,658.70 0.70 8,000.00 INFINEON TECHNOLOGIES REG SHS EUR 162,480.00 0.51 1,151.00 SIEMENS AG REG EUR 134,137.54 0.42 694.00 WIRECARD AG EUR 74,605.00 0.23 Hong Kong 106,202.09 0.33 4,985.00 AIA GROUP LTD HKD 46,622.34 0.15 4,368.00 SUN HUNG KAI PROPERTIES LTD HKD 59,579.75 0.18 Ireland 400,001.84 1.25 2,264.00 KINGSPAN GROUP EUR 123,274.80 0.39 2,738.00 MEDTRONIC HLD USD 276,727.04 0.86 Italy 330,304.38 1.03 25,369.00 UNICREDIT -REGISTERD SHARE EUR 330,304.38 1.03 Japan 2,568,761.55 8.04 5,500.00 CANON INC JPY 134,650.87 0.42 2,100.00 EAST JAPAN RAILWAY CO JPY 169,703.99 0.53 4,980.00 HITACHI LTD JPY 188,850.84 0.59 8,000.00 HONDA MOTOR CO LTD JPY 203,233.60 0.64 21,500.00 MITSUBISHI ELECTRIC CORP JPY 264,106.55 0.83 212,200.00 MIZUHO FINANCIAL GROUP INC JPY 292,761.16 0.92 1,300.00 ORIENTAL LAND CO LTD JPY 158,573.36 0.50 2,700.00 RECRUIT HOLDINGS CO LTD JPY 90,724.72 0.28 7,700.00 SUMITOMO MITSUI FINANCIAL GROUP INC JPY 254,883.07 0.80 1,993.00 TAKEDA PHARMA CO LTD JPY 70,774.97 0.22 2,800.00 TOYOTA MOTOR CORP JPY 177,060.47 0.55 6,800.00 TOYOTA TSUSHO CORP JPY 215,169.23 0.67 4,500.00 WEST JAPAN RAILWAY COMPANY JPY 348,268.72 1.09 New Zealand 193,127.39 0.60 64,267.00 MERIDIAN ENERGY LTD NZD 193,127.39 0.60 Norway 159,899.48 0.50 5,945.00 SCHIBSTED -A- NOK 159,899.48 0.50 Spain 584,977.80 1.83 14,546.00 EDP RENOVAVEIS SA EUR 152,733.00 0.48
The accompanying notes form an integral part of these financial statements. 50Page Mirova Funds - Mirova Global Carbon Neutral Equity Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets 3,107.00 ENAGAS EUR 70,653.18 0.22 11,372.00 GAMESA CORPORACION TECNOLOGICA SA EUR 177,801.22 0.56 27,028.00 SOLARIA ENERGIA EUR 183,790.40 0.57 Sweden 228,545.98 0.71 9,664.00 BOLIDEN AB SEK 228,545.98 0.71 Switzerland 1,097,786.54 3.43 4,687.00 ABB LTD REG SHS CHF 100,768.34 0.32 1,948.00 CIE FINANCIERE RICHEMONT NAMEN AKT CHF 136,306.24 0.43 78.00 GIVAUDAN SA REG.SHS CHF 217,495.86 0.68 2,210.00 NOVARTIS AG REG SHS CHF 186,843.61 0.58 465.00 SWISSCOM SHS NOM CHF 219,281.51 0.69 649.00 ZURICH INSURANCE GROUP NAMEN AKT CHF 237,090.98 0.73 The Netherlands 653,687.04 2.04 22,031.00 ALFEN NV EUR 362,189.64 1.13 375.00 ASML HLDG EUR 98,887.50 0.31 1,659.00 DSM KONINKLIJKE EUR 192,609.90 0.60 United Kingdom 1,868,691.17 5.85 2,436.00 ASTRAZENECA PLC GBP 218,689.47 0.68 4,115.00 CRODA INTL - REGISTERED SHS GBP 248,643.42 0.78 4,055.00 DIAGEO PLC GBP 153,160.18 0.48 12,974.00 GLAXOSMITHKLINE PLC GBP 272,387.40 0.86 30,621.00 LAND SEC R.E.I.T GBP 357,759.96 1.13 2,842.00 LIBERTY GLOBAL -C- USD 55,181.64 0.17 13,784.00 POLYPIPE GROUP PLC GBP 87,842.80 0.27 8,313.00 RELX PLC GBP 186,940.72 0.58 3,720.00 UNILEVER PLC GBP 190,993.80 0.60 56,058.00 VODAFONE GROUP GBP 97,091.78 0.30 United States of America 18,382,521.83 57.50 2,235.00 ABBVIE INC USD 176,291.22 0.55 1,050.00 ADOBE INC USD 308,508.24 0.96 1,240.00 AFLAC INC USD 58,437.42 0.18 10,996.00 AGNC INVESTMENT CORP USD 173,193.12 0.54 718.00 AIR PRODUCTS CHEMICALS INC USD 150,309.86 0.47 801.00 ALLSTATE CORP USD 80,242.72 0.25 626.00 ALPHABET -A- USD 746,956.03 2.35 726.00 AMERCIAN WATER WORKS CO INC USD 79,455.77 0.25 1,334.00 AMGEN INC USD 286,492.10 0.90 371.00 ANTHEM USD 99,824.61 0.31 3,381.00 APPLE INC USD 884,481.65 2.78 9,104.00 AT&T INC USD 316,957.08 0.99 1,346.00 BANK OF NEW YORK MELLON CORP USD 60,351.16 0.19 570.00 BLACKROCK INC USD 255,268.60 0.80 97.00 BOOKING HLDG USD 177,471.55 0.56 3,381.00 BRISTOL-MYERS SQUIBB CO USD 193,342.00 0.60 1,952.00 BROWN-FORMAN CORP -B- NON VOTING USD 117,554.74 0.37 1,872.00 CATERPILLAR - REGISTERED USD 246,286.82 0.77 1,935.00 CHARLES SCHWAB CORP/THE USD 81,985.39 0.26 8,082.00 CISCO SYSTEMS INC USD 345,312.00 1.08 7,661.00 CITIGROUP USD 545,244.80 1.71 2,087.00 CITIZENS FINANCIAL GROUP INC USD 75,503.85 0.24 448.00 CLOROX CO USD 61,279.22 0.19 445.00 CME GROUP -A- USD 79,572.74 0.25 1,566.00 COLGATE-PALMOLIVE CO USD 96,038.70 0.30 1,882.00 CVS HEALTH USD 124,555.71 0.39 1,389.00 DEERE & CO USD 214,394.78 0.67 5,871.00 EATON VANCE NON-VOTING USD 244,202.22 0.76 2,242.00 ECOLAB INC USD 385,464.21 1.21 1,854.00 ELI LILLY & CO USD 217,079.04 0.68 349.00 ESTEE LAUDER COMPANIES INC -A- USD 64,216.00 0.20 5,127.00 FIRST SOLAR INC USD 255,596.37 0.80 2,576.00 GILEAD SCIENCES INC USD 149,121.14 0.47 1,614.00 HARTFORD FINANCIAL SERVICES GROUP INC USD 87,378.87 0.27 2,023.00 HOME DEPOT INC USD 393,570.37 1.23 8,565.00 HP INC USD 156,802.45 0.49 1,058.00 HUMANA INC USD 345,459.39 1.08 1,430.00 IBM CORP USD 170,759.20 0.53
The accompanying notes form an integral part of these financial statements. 51Page Mirova Funds - Mirova Global Carbon Neutral Equity Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets 5,505.00 INTEL CORP USD 293,518.26 0.92 938.00 INTERCONEXCH GR INC WI USD 77,338.00 0.24 371.00 KIMBERLY CLARK USD 45,461.96 0.14 1,368.00 L BRANDS USD 22,082.99 0.07 2,394.00 LIBERTY MEDIA -A- SIRIUS XM GROUP USD 103,096.62 0.32 2,933.00 LINCOLN NATIONAL CORP USD 154,188.27 0.48 716.00 LOWE'S COMPANIES INC USD 76,390.34 0.24 1,916.00 MARRIOTT INTERNATIONAL -A- USD 258,476.51 0.81 1,272.00 MASTERCARD INC -A- USD 338,357.67 1.06 1,094.00 MCDONALD'S CORP USD 192,592.73 0.60 3,775.00 MERCK AND CO USD 305,867.48 0.96 7,651.00 METLIFE INC USD 347,413.34 1.09 4,595.00 MICROSOFT CORP USD 645,551.45 2.02 6,795.00 MONDELEZ INTERNATIONAL INC USD 333,424.14 1.04 1,100.00 NETFLIX INC USD 317,084.19 0.99 1,926.00 NEWMONT GOLDCORP CORPORATION USD 74,552.07 0.23 2,596.00 NIKE INC USD 234,299.12 0.73 1,075.00 NVIDIA CORP USD 225,342.98 0.70 3,166.00 ORACLE CORP USD 149,429.56 0.47 2,512.00 ORMAT TECHNOLOGIES USD 166,765.47 0.52 1,886.00 PARKER-HANNIFIN CORP USD 345,814.27 1.08 14,271.00 PATTERN ENERGY -A- USD 340,151.99 1.06 2,436.00 PAYPAL HOLDINGS INC WI USD 234,745.76 0.73 7,687.00 PFIZER INC USD 268,308.83 0.84 2,436.00 PROCTER AND GAMBLE CO USD 271,052.47 0.85 791.00 PROGRESSIVE CORP USD 51,011.57 0.16 4,743.00 PRUDENTIAL FINANCIAL INC USD 396,088.04 1.24 1,985.00 SALESFORCE COM.INC USD 287,608.37 0.90 2,170.00 SIMON PROPERTY GROUP - REGISTERED USD 287,967.22 0.90 478.00 SPLUNK USD 63,777.34 0.20 2,575.00 SYSCO CORP USD 196,227.62 0.61 2,082.00 TEXAS INSTRUMENTS INC USD 237,950.81 0.74 1,166.00 THERMO FISHER SCIEN SHS USD 337,459.62 1.06 1,428.00 UNION PACIFIC CORP USD 229,993.87 0.72 1,832.00 UNITEDHEALTH GROUP INC USD 479,796.31 1.50 5,722.00 VERIZON COMMUNICATIONS INC USD 312,989.58 0.98 1,674.00 VF REGISTERED USD 148,624.36 0.46 2,738.00 VISA INC -A- USD 458,325.35 1.43 1,517.00 WALGREENS BOOTS ALLIANCE INC USD 79,681.35 0.25 2,931.00 WALT DISNEY CO USD 377,648.58 1.18 1,525.00 WELLTOWER INC USD 111,104.23 0.35 Warrants, Rights 1,871.70 0.01 United States of America 1,871.70 0.01 698.00 BRISTOL-MYERS XX.XX.XX RIGHTS USD 1,871.70 0.01
Shares/Units of UCITS/UCIS 37,399.05 0.12 Shares/Units in investment funds 37,399.05 0.12 France 37,399.05 0.12 3.00 OSTRUM SUSTAINABLE TRESORERIE I-CAP EUR 37,399.05 0.12
Total securities portfolio 31,714,936.90 99.19
The accompanying notes form an integral part of these financial statements. 52Page Mirova Funds - Mirova Global Carbon Neutral Equity Fund Statement of operations and changes in net assets from 01/01/19 to 31/12/19 Expressed in EUR
Income 467,189.16 Net dividends 2Note 466,361.78 Bank interest on cash account 466.89 Other income 360.49 Expenses 186,144.90 Management fees 4Note 126,736.85 Custodian & sub-custodian fees 2,305.60 Taxe d'abonnement 6Note 2,331.21 Administration fees 4Note 2,346.88 Bank interest on overdrafts 603.02 Legal fees 82.00 Transaction fees 2Note 34,481.92 Other expenses 17,257.42 Net income from investments 281,044.26 Net realised profit / loss on: - sales of investment securities 2Note 201,157.06 - foreign exchange 2Note 56,092.50 Net realised profit 538,293.82 Movement in net unrealised appreciation / depreciation on: - investments 2Note 4,677,634.94 Increase in net assets as a result of operations 5,215,928.76 Subscription capitalisation shares 14,936,583.05 Redemption capitalisation shares -25,522.59 Increase in net assets 20,126,989.22
Net assets at the beginning of the year 11,848,308.61
Net assets at the end of the year 31,975,297.83
The accompanying notes form an integral part of these financial statements. 53Page Mirova Funds - Mirova Europe Carbon Neutral Equity Fund (launched on 17/05/19)
54Page Mirova Funds - Mirova Europe Carbon Neutral Equity Fund (launched on 17/05/19) Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 33,934,098.25 Securities portfolio at market value 2Note 33,255,738.41 Cost price 30,040,477.50 Unrealised profit on the securities portfolio 3,215,260.91 Cash at banks and liquidities 650,992.02 Dividends receivable 2Note 27,367.82 Liabilities 81,444.40 Administration fees payable 4Note 9,075.88 Taxe d'abonnement payable 6Note 846.33 Management fees payable 4Note 71,522.19 Net asset value 33,852,653.85
Changes in number of shares outstanding from 17/05/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 17/05/19 31/12/19
Class SI/A (EUR) - Capitalisation - 311,610.86 6,985.86 304,625.00
Key figures
Period/Year ending as at: 31/12/19
Total Net Assets EUR 33,852,653.85 Class SI/A (EUR) - Capitalisation Number of shares 304,625.00 Net asset value per share EUR 111.12
The accompanying notes form an integral part of these financial statements. 55Page Mirova Funds - Mirova Europe Carbon Neutral Equity Fund (launched on 17/05/19) Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 33,255,738.41 98.24 on another regulated market Shares 33,255,738.41 98.24 Austria 376,359.38 1.11 3,979.00 ANDRITZ AG EUR 152,793.60 0.45 4,997.00 VERBUND AG EUR 223,565.78 0.66 Belgium 803,775.20 2.37 4,952.00 UCB EUR 351,096.80 1.04 10,440.00 UMICORE SA EUR 452,678.40 1.33 Denmark 1,254,605.74 3.71 57.00 A.P. MOELLER-MAERSK -B- A/S DKK 73,289.53 0.22 1,695.00 CHRISTIAN HANSEN DKK 120,084.71 0.35 3,516.00 NOVOZYMES -B- DKK 153,391.23 0.45 10,077.00 VESTAS WIND SYSTEMS AS DKK 907,840.27 2.69 Finland 868,189.86 2.56 3,623.00 NESTE EUR 112,385.46 0.33 99,086.00 NOKIA OYJ EUR 326,587.46 0.97 12,612.00 STORA ENSO -R- EUR 163,514.58 0.48 8,596.00 UPM KYMMENE CORP EUR 265,702.36 0.78 France 7,404,726.51 21.88 2,700.00 AIR LIQUIDE SA EUR 340,740.00 1.01 10,414.00 ALSTOM SA EUR 439,783.22 1.30 1,129.00 CAPGEMINI SE EUR 122,948.10 0.36 7,350.00 CIE DE SAINT-GOBAIN EUR 268,275.00 0.79 653.00 COVIVIO SA EUR 66,083.60 0.20 29,215.00 CREDIT AGRICOLE SA EUR 377,603.88 1.12 2,096.00 DASSAULT SYSTEMES SA EUR 307,168.80 0.91 17,191.00 EDF SA EUR 170,672.25 0.50 5,413.00 FAURECIA EUR 259,986.39 0.77 13,364.00 GETLINK ACT EUR 207,275.64 0.61 334.00 HERMES INTERNATIONAL SA EUR 222,510.80 0.66 5,648.00 HOFF GR CM TECH - SHS EUR 107,876.80 0.32 650.00 KERING EUR 380,380.00 1.12 2,261.00 LEGRAND SA EUR 164,239.04 0.49 1,476.00 L'OREAL SA EUR 389,664.00 1.15 1,468.00 LVMH EUR 608,045.60 1.79 4,443.00 NEXANS SA EUR 193,226.07 0.57 1,990.00 PERNOD RICARD SA EUR 317,206.00 0.94 3,172.00 RENAULT SA EUR 133,794.96 0.40 10,188.00 SANOFI EUR 913,048.56 2.69 815.00 SARTORIUS STEDIM BIOTECH EUR 120,375.50 0.36 2,825.00 SCOR SE ACT PROV REGROUPEMENT EUR 105,711.50 0.31 11,500.00 SUEZ ACT. EUR 155,077.50 0.46 514.00 TELEPERFORMANCE SA EUR 111,743.60 0.33 2,203.00 UBISOFT ENTERTAINMENT EUR 135,660.74 0.40 3,390.00 UNIBAIL RODAMCO EUR 476,803.50 1.41 3,536.00 VALEO SA EUR 111,065.76 0.33 15,154.00 VOTALIA EUR 197,759.70 0.58 Germany 4,765,959.24 14.08 402.00 ADIDAS NAMEN AKT EUR 116,499.60 0.34 3,920.00 BMW VORZUG - STIMMRECHTSLOS EUR 215,796.00 0.64 24,293.00 CAPITAL STAGE AG EUR 228,111.27 0.67 27,964.00 COMMERZBK EUR 154,277.39 0.46 6,174.00 DAIMLER NAMEN-AKT EUR 304,810.38 0.90 2,598.00 DEUTSCHE BOERSE AG REG SHS EUR 364,109.70 1.08 25,889.00 DEUTSCHE TELEKOM AG REG SHS EUR 377,202.73 1.11 4,697.00 DEUTSCHE WOHNEN AG EUR 171,064.74 0.51 53,580.00 E.ON AG REG SHS EUR 510,295.92 1.52 1,308.00 GRENKELEASING NAMENS-AKT. EUR 120,663.00 0.36 1,301.00 HANNOVER RUECKVERSICHERUNG AG REG SHS EUR 224,162.30 0.66 9,184.00 INFINEON TECHNOLOGIES REG SHS EUR 186,527.04 0.55 2,795.00 MERCK KGAA EUR 294,453.25 0.87 1,253.00 MUENCHENER RUECKVERSICHERUNGS AG REG SHS EUR 329,539.00 0.97 1,805.00 SAP AG EUR 217,177.60 0.64 3,615.00 SIEMENS AG REG EUR 421,292.10 1.24
The accompanying notes form an integral part of these financial statements. 56Page Mirova Funds - Mirova Europe Carbon Neutral Equity Fund (launched on 17/05/19) Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets 3,162.00 SMA SOLAR TECHNOLOGY AG EUR 109,278.72 0.32 3,645.00 SYMRISE AG EUR 341,901.00 1.01 733.00 WIRECARD AG EUR 78,797.50 0.23 Greece 172,572.14 0.51 22,529.00 TERNA ENERGY EUR 172,572.14 0.51 Ireland 73,344.15 0.22 1,347.00 KINGSPAN GROUP EUR 73,344.15 0.22 Italy 871,938.12 2.58 75,876.00 INTESA SANPAOLO SPA EUR 178,194.79 0.53 68,809.00 SNAM SPA EUR 322,438.97 0.95 28,518.00 UNICREDIT -REGISTERD SHARE EUR 371,304.36 1.10 Luxembourg 312,331.84 0.92 17,815.00 AROUNDTOWN SA EUR 142,234.96 0.42 17,078.00 SOLUTIONS 30 --- SHS EUR 170,096.88 0.50 Norway 507,462.17 1.50 11,773.00 DNB NOK 195,744.21 0.58 6,010.00 MOWI ASA NOK 139,042.66 0.41 6,420.00 SCHIBSTED -A- NOK 172,675.30 0.51 Spain 1,939,637.38 5.73 51,336.00 BANCO BILBAO VIZCAYA ARGENT SA REG EUR 255,807.29 0.76 117,484.00 BANCO SANTANDER SA REG SHS EUR 438,215.32 1.29 58,772.00 BANKIA BEARER SHS EUR 111,813.73 0.33 57,263.00 CAIXABANK EUR 160,221.87 0.47 7,544.00 ENAGAS EUR 171,550.56 0.51 10,781.00 FERROVIAL SA EUR 290,763.57 0.86 13,451.00 GAMESA CORPORACION TECNOLOGICA SA EUR 210,306.39 0.62 2,409.00 INDITEX SHARE FROM SPLIT EUR 75,763.05 0.22 33,117.00 SOLARIA ENERGIA EUR 225,195.60 0.67 Sweden 881,466.85 2.60 4,347.00 ASSA ABLOY -B- NEW I SEK 90,599.13 0.27 4,121.00 HENNES AND MAURITZ AB SEK 74,703.73 0.22 15,531.00 SKANDINAVISKA ENSKILDA BANKEN -A- SEK 130,186.81 0.38 47,458.00 TELEFON AB L.M.ERICSSON SEK 368,363.78 1.09 16,832.00 TELE2 AB SEK 217,613.40 0.64 Switzerland 4,341,648.66 12.83 38.00 CHOCOLADEFAB.LINDT.SPRUENGLI PARTIZIPSCH CHF 262,713.89 0.78 204.00 GIVAUDAN SA REG.SHS CHF 568,835.33 1.68 3,350.00 NESTLE SA REG SHS CHF 322,919.04 0.95 10,242.00 NOVARTIS AG REG SHS CHF 865,905.98 2.56 2,660.00 ROCHE HOLDING AG CHF 752,728.61 2.22 5,921.00 SWISS RE NAMEN AKT CHF 592,100.00 1.75 671.00 TEMENOS AG NAM.AKT CHF 94,569.64 0.28 2,414.00 ZURICH INSURANCE GROUP NAMEN AKT CHF 881,876.17 2.61 The Netherlands 1,706,750.76 5.04 11,105.00 ALFEN NV EUR 182,566.20 0.54 1,315.00 ASML HLDG EUR 346,765.50 1.02 6,721.00 KONINKLIJKE AHOLD NV EUR 149,844.70 0.44 1,430.00 NXP SEMICONDUCTORS N.V. EUR 164,221.20 0.49 17,668.00 ROYAL PHILIPS ELECTRONIC EUR 768,911.36 2.27 3,940.00 STMICROELECTRONICS NV EUR 94,441.80 0.28 United Kingdom 6,974,970.41 20.60 8,707.00 ASTRAZENECA PLC GBP 781,662.23 2.31 19,634.00 AUTO TRADER GROUP PLC GBP 137,775.13 0.41 9,973.00 BUNZL PLC GBP 243,042.96 0.72 9,860.00 BURBERRY GROUP PLC GBP 256,579.93 0.76 8,535.00 CRODA INTL - REGISTERED SHS GBP 515,716.06 1.52 87,295.00 J SAINSBURY PLC GBP 236,845.71 0.70 391,515.00 LLOYDS BANKING GROUP PLC GBP 288,778.99 0.85 7,783.00 LSE GROUP GBP 711,845.75 2.10 27,308.00 MARKS AND SPENCER GROUP PLC GBP 68,805.78 0.20 11,035.00 MONDI PLC GBP 230,831.86 0.68 39,618.00 NATIONAL GRID PLC GBP 441,509.14 1.30 1,179.00 NEXT PLC GBP 97,648.22 0.29 17,710.00 RELX PLC GBP 398,258.16 1.18 96,326.00 ROYAL BANK OF SCOTLAND GBP 273,170.92 0.81
The accompanying notes form an integral part of these financial statements. 57Page Mirova Funds - Mirova Europe Carbon Neutral Equity Fund (launched on 17/05/19) Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets 36,365.00 ROYAL MAIL GBP 97,119.25 0.29 62,693.00 SEGRO (REIT) GBP 663,812.59 1.96 6,608.00 SEVERN TRENT PLC GBP 196,130.52 0.58 18,300.00 STANDARD CHARTERED PLC GBP 153,855.20 0.45 9,443.00 UNILEVER PLC GBP 484,826.48 1.43 170,619.00 VODAFONE GROUP GBP 295,510.05 0.87 7,016.00 WHITBREAD GBP 401,245.48 1.19
Total securities portfolio 33,255,738.41 98.24
The accompanying notes form an integral part of these financial statements. 58Page Mirova Funds - Mirova Europe Carbon Neutral Equity Fund (launched on 17/05/19) Statement of operations and changes in net assets from 17/05/19 to 31/12/19 Expressed in EUR
Income 339,400.10 Net dividends 2Note 339,382.66 Bank interest on cash account 17.44 Expenses 195,919.60 Management fees 4Note 88,134.43 Custodian & sub-custodian fees 3,496.98 Taxe d'abonnement 6Note 2,397.76 Administration fees 4Note 12,766.91 Bank interest on overdrafts 748.43 Legal fees 82.00 Transaction fees 2Note 84,915.23 Other expenses 3,377.86 Net income from investments 143,480.50 Net realised profit / loss on: - sales of investment securities 2Note -21,146.16 - foreign exchange 2Note 34,640.19 Net realised profit 156,974.53 Movement in net unrealised appreciation / depreciation on: - investments 2Note 3,215,260.91 Increase in net assets as a result of operations 3,372,235.44 Subscription capitalisation shares 31,203,454.78 Redemption capitalisation shares -723,036.37 Increase in net assets 33,852,653.85
Net assets at the beginning of the period 0.00
Net assets at the end of the period 33,852,653.85
The accompanying notes form an integral part of these financial statements. 59Page Mirova Funds - Mirova US Carbon Neutral Equity Fund (launched on 30/12/19)
60Page Mirova Funds - Mirova US Carbon Neutral Equity Fund (launched on 30/12/19) Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in USD
Assets 9,355,183.95 Securities portfolio at market value 2Note 4,640,292.20 Cost price 4,627,695.67 Unrealised profit on the securities portfolio 12,596.53 Subscribers receivable 4,714,612.25 Dividends receivable 2Note 279.50 Liabilities 4,629,420.01 Bank overdrafts 232.99 Brokers payable 4,629,010.60 Administration fees payable 4Note 12.95 Taxe d'abonnement payable 6Note 118.15 Management fees payable 4Note 45.32 Net asset value 4,725,763.94
Changes in number of shares outstanding from 30/12/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 30/12/19 31/12/19
R/A - EUR - Capitalisation - 1.00 - 1.00
SI/A - EUR - Capitalisation - 42,000.00 - 42,000.00
Key figures
Period/Year ending as at: 31/12/19
Total Net Assets USD 4,725,763.94 R/A - EUR - Capitalisation Number of shares 1.00 Net asset value per share EUR 100.23 SI/A - EUR - Capitalisation Number of shares 42,000.00 Net asset value per share EUR 100.24
The accompanying notes form an integral part of these financial statements. 61Page Mirova Funds - Mirova US Carbon Neutral Equity Fund (launched on 30/12/19) Securities portfolio as at 31/12/19 Expressed in USD Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 4,640,292.20 98.19 on another regulated market Shares 4,640,292.20 98.19 Bermuda 7,389.78 0.16 411.00 INVESCO LTD USD 7,389.78 0.16 Ireland 37,980.14 0.80 38.00 ALLERGAN USD 7,264.46 0.15 269.00 EATON CORPORATION PUBLIC LIMITED COMPANY USD 25,479.68 0.54 88.00 SEAGATE TECHNOLOGY PLC USD 5,236.00 0.11 United States of America 4,594,922.28 97.23 208.00 ABBVIE INC USD 18,416.32 0.39 153.00 ADOBE INC USD 50,460.93 1.07 157.00 ADVANCED MICRO DEVICES INC USD 7,200.02 0.15 79.00 AFFILIATED MANAGERS GROUP USD 6,694.46 0.14 235.00 AFLAC INC USD 12,431.50 0.26 77.00 ALLSTATE CORP USD 8,658.65 0.18 51.00 ALPHABET -A- USD 68,308.89 1.45 38.00 ALPHABET -C- USD 50,806.76 1.08 397.00 AMERCIAN WATER WORKS CO INC USD 48,771.45 1.03 104.00 AMGEN INC USD 25,071.28 0.53 75.00 ANTHEM USD 22,652.25 0.48 438.00 APPLE INC USD 128,618.70 2.71 553.00 APPLIED MATERIALS INC USD 33,755.12 0.71 1,605.00 AT&T INC USD 62,723.40 1.33 115.00 AUTODESK INC USD 21,097.90 0.45 76.00 AVALONBAY COMMUN USD 15,937.20 0.34 356.00 BALL CORP USD 23,022.52 0.49 442.00 BANK OF NEW YORK MELLON CORP USD 22,245.86 0.47 38.00 BECTON DICKINSON USD 10,334.86 0.22 38.00 BIOGEN IDEC INC USD 11,275.74 0.24 64.00 BLACKROCK INC USD 32,172.80 0.68 24.00 BOOKING HLDG USD 49,289.52 1.04 89.00 BOSTON PROPERTIES INC USD 12,269.54 0.26 231.00 BOSTON SCIENTIFIC CORP USD 10,445.82 0.22 206.00 BRIGHTHOUSE - REGISTERED USD 8,081.38 0.17 535.00 BRISTOL-MYERS SQUIBB CO USD 34,341.65 0.73 822.00 BROWN-FORMAN CORP -B- NON VOTING USD 55,567.20 1.18 356.00 CBRE GROUP USD 21,819.24 0.46 CBS602.00 USD 25,265.94 0.53 320.00 CHARLES SCHWAB CORP/THE USD 15,219.20 0.32 125.00 CIGNA --- REGISTERED SHS USD 25,561.25 0.54 2,038.00 CISCO SYSTEMS INC USD 97,742.48 2.07 343.00 CITIGROUP USD 27,402.27 0.58 1,107.00 CITIZENS FINANCIAL GROUP INC USD 44,955.27 0.95 51.00 CME GROUP -A- USD 10,236.72 0.22 208.00 COGNIZANT TECHNOLOGY SOLUTIONS -A- USD 12,900.16 0.27 179.00 COLGATE-PALMOLIVE CO USD 12,322.36 0.26 142.00 CROWN CASTLE REIT USD 20,185.30 0.43 531.00 CVS HEALTH USD 39,447.99 0.83 165.00 DANAHER CORP USD 25,324.20 0.54 118.00 DIGITAL REALTY TRUST INC USD 14,129.32 0.30 1,078.00 EBAY USD 38,926.58 0.82 517.00 ECOLAB INC USD 99,775.83 2.11 38.00 EDWARDS LIFESCIENCES CORP USD 8,865.02 0.19 128.00 ELECTRONIC ARTS - REGISTERED USD 13,761.28 0.29 349.00 ELI LILLY & CO USD 45,869.07 0.97 201.00 EQTY RESIDENTIAL PPTYS TR SHS BEN.INT. USD 16,264.92 0.34 38.00 EQUINIX USD 22,180.60 0.47 102.00 ESSEX PROPERTY TRUST USD 30,687.72 0.65 88.00 ESTEE LAUDER COMPANIES INC -A- USD 18,175.52 0.38 1,553.00 FASTENAL CO USD 57,383.35 1.21 1,085.00 FIRST SOLAR INC USD 60,716.60 1.28 141.00 FISERV INC USD 16,303.83 0.34 572.00 FOX A USD 21,204.04 0.45 308.00 FRANKLIN RESOURCES INC USD 8,001.84 0.17 3,279.00 GENERAL ELECTRIC CO USD 36,593.64 0.77
The accompanying notes form an integral part of these financial statements. 62Page Mirova Funds - Mirova US Carbon Neutral Equity Fund (launched on 30/12/19) Securities portfolio as at 31/12/19 Expressed in USD Quantity/ Quotation % of net Denomination Market value Nominal currency assets 191.00 GILEAD SCIENCES INC USD 12,411.18 0.26 429.00 HARTFORD FINANCIAL SERVICES GROUP INC USD 26,070.33 0.55 153.00 HCA HEALTHCARE RG REGISTERED SHS USD 22,614.93 0.48 64.00 HERSHEY USD 9,406.72 0.20 2,276.00 HEWLETT PACKARD WHEN ISSUED USD 36,097.36 0.76 360.00 HOME DEPOT INC USD 78,616.80 1.66 178.00 HOST HOTELS & RESORTS - SHS USD 3,301.90 0.07 750.00 HP INC USD 15,412.50 0.33 63.00 HUMANA INC USD 23,090.76 0.49 2,296.00 HUNTINGTON BANCSHARES INC USD 34,623.68 0.73 232.00 IBM CORP USD 31,097.28 0.66 25.00 ILLUMINA INC USD 8,293.50 0.18 1,147.00 INTEL CORP USD 68,647.95 1.45 220.00 INTERCONEXCH GR INC WI USD 20,361.00 0.43 113.00 INTERNATIONAL FLAVORS FRAGRANCES USD 14,579.26 0.31 375.00 INTERPUBLIC GROUP OF COMPANIES INC USD 8,662.50 0.18 25.00 INTUITIVE SURGICAL USD 14,778.75 0.31 153.00 KANSAS CITY SOUTHERN INDUSTRIES INC USD 23,433.48 0.50 315.00 KELLOGG USD 21,785.40 0.46 2,354.00 KEYCORP USD 47,644.96 1.01 297.00 KROGER CO USD 8,610.03 0.18 170.00 LEGG MASON USD 6,104.70 0.13 265.00 LINCOLN NATIONAL CORP USD 15,637.65 0.33 179.00 LOWE'S COMPANIES INC USD 21,437.04 0.45 321.00 MASTERCARD INC -A- USD 95,847.39 2.03 90.00 MCDONALD'S CORP USD 17,784.90 0.38 796.00 MERCK AND CO USD 72,396.20 1.53 1,077.00 MGM RESORTS INTL USD 35,831.79 0.76 856.00 MICROSOFT CORP USD 134,991.20 2.85 192.00 MONDELEZ INTERNATIONAL INC USD 10,575.36 0.22 115.00 MOODY S CORP USD 27,302.15 0.58 167.00 MOTOROLA SOLUTIONS INC USD 26,910.38 0.57 77.00 MSCI USD 19,879.86 0.42 1,032.00 NAVIENT USD 14,117.76 0.30 331.00 NETAPP USD 20,604.75 0.44 130.00 NETFLIX INC USD 42,064.10 0.89 455.00 NEWMONT GOLDCORP CORPORATION USD 19,769.75 0.42 447.00 NIKE INC USD 45,285.57 0.96 216.00 NORFOLK SOUTHERN CORP USD 41,932.08 0.89 154.00 NORTHERN TRUST CORP USD 16,360.96 0.35 129.00 NVIDIA CORP USD 30,353.70 0.64 216.00 OMNICOM GROUP INC USD 17,500.32 0.37 609.00 ORACLE CORP USD 32,264.82 0.68 1,377.00 ORMAT TECHNOLOGIES USD 102,614.04 2.17 117.00 PARKER-HANNIFIN CORP USD 24,080.94 0.51 3,194.00 PATTERN ENERGY -A- USD 85,455.47 1.81 308.00 PAYPAL HOLDINGS INC WI USD 33,316.36 0.70 2,906.00 PEOPLES UNITED FINANCIAL USD 49,111.40 1.04 1,916.00 PFIZER INC USD 75,068.88 1.59 513.00 PROCTER AND GAMBLE CO USD 64,073.70 1.36 222.00 PRUDENTIAL FINANCIAL INC USD 20,810.28 0.44 51.00 PUBLIC STORAGE INC USD 10,860.96 0.23 179.00 SALESFORCE COM.INC USD 29,112.56 0.62 102.00 S&P GLOBAL USD 27,851.10 0.59 297.00 STARBUCKS CORP USD 26,112.24 0.55 166.00 STATE STREET CORP USD 13,130.60 0.28 38.00 STRYKER CORP USD 7,977.72 0.17 267.00 SYSCO CORP USD 22,839.18 0.48 253.00 TAKE TWO INTERACTIVE SOFTWARE INC USD 30,974.79 0.66 334.00 TARGET CORP USD 42,822.14 0.91 165.00 TEXAS INSTRUMENTS INC USD 21,167.85 0.45 168.00 THERMO FISHER SCIEN SHS USD 54,578.16 1.15 77.00 TIFFANY CO USD 10,291.05 0.22 360.00 TJX COS INC USD 21,981.60 0.47 468.00 UNION PACIFIC CORP USD 84,609.72 1.79 129.00 UNITED PARCEL SERVICE INC USD 15,100.74 0.32 324.00 UNITEDHEALTH GROUP INC USD 95,249.52 2.02
The accompanying notes form an integral part of these financial statements. 63Page Mirova Funds - Mirova US Carbon Neutral Equity Fund (launched on 30/12/19) Securities portfolio as at 31/12/19 Expressed in USD Quantity/ Quotation % of net Denomination Market value Nominal currency assets 860.00 VERIZON COMMUNICATIONS INC USD 52,804.00 1.12 51.00 VERTEX PHARMACEUTICALS INC USD 11,166.45 0.24 649.00 VISA INC -A- USD 121,947.10 2.58 368.00 WALGREENS BOOTS ALLIANCE INC USD 21,697.28 0.46 700.00 WALT DISNEY CO USD 101,241.00 2.14 422.00 WASTE MANAGEMENT INC USD 48,091.12 1.02 868.00 WELLTOWER INC USD 70,985.04 1.50 172.00 WESTERN DIGITAL CORP USD 10,916.84 0.23 386.00 WEYERHAEUSER CO USD 11,657.20 0.25 167.00 WW GRAINGER INC USD 56,532.84 1.20 420.00 XEROX HOLDINGS - REGISTERED SHS USD 15,485.40 0.33 167.00 XYLEM WHEN ISSUED USD 13,157.93 0.28 1,111.00 ZIONS BANCORPORATION NA USD 57,683.12 1.22
Total securities portfolio 4,640,292.20 98.19
The accompanying notes form an integral part of these financial statements. 64Page Mirova Funds - Mirova US Carbon Neutral Equity Fund (launched on 30/12/19) Statement of operations and changes in net assets from 30/12/19 to 31/12/19 Expressed in USD
Income 279.50 Net dividends 2Note 279.50 Expenses 1,724.35 Management fees 4Note 45.32 Taxe d'abonnement 6Note 118.16 Administration fees 4Note 12.95 Transaction fees 2Note 1,547.92 Net loss from investments -1,444.85 Net realised profit / loss on: - foreign exchange 2Note 8,820.22 Net realised profit 7,375.37 Movement in net unrealised appreciation / depreciation on: - investments 2Note 12,596.53 Increase in net assets as a result of operations 19,971.90 Subscription capitalisation shares 4,705,792.04 Increase in net assets 4,725,763.94
Net assets at the beginning of the period 0.00
Net assets at the end of the period 4,725,763.94
The accompanying notes form an integral part of these financial statements. 65Page Mirova Funds - Mirova Global Green Bond Fund
66Page Mirova Funds - Mirova Global Green Bond Fund Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 232,946,665.54 Securities portfolio at market value 2Note 206,866,546.22 Cost price 198,876,064.21 Unrealised profit on the securities portfolio 7,990,482.01 Cash at banks and liquidities 19,312,119.15 Interest receivable 2Note 1,311,153.89 Subscribers receivable 5,125,095.62 Unrealised appreciation on forward foreign exchange contracts 2Note 331,750.66 Liabilities 5,138,285.47 Administration fees payable 4Note 86,013.02 Taxe d'abonnement payable 6Note 11,372.00 Redeemers payable 4,308,005.23 Unrealised depreciation on financial futures contracts 2Note 278,327.40 Management fees payable 4Note 454,562.75 Other liabilities 5.07 Net asset value 227,808,380.07
Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class I/A (EUR) - Capitalisation 42,539.52 75,792.33 61,256.56 57,075.29
Class I/D (EUR) - Distribution 33,261.92 5,174.00 19,095.47 19,340.45
Class N/A (EUR) - Capitalisation 1,494.84 16,668.24 1,017.64 17,145.44
Class N/D (EUR) - Distribution 1.00 17,690.99 841.59 16,850.40
Class R/A (EUR) - Capitalisation 62,402.66 214,677.87 43,531.16 233,549.37
Class R/D (EUR) - Distribution 300.00 820.00 300.00 820.00
Class SI/A (EUR) - Capitalisation 7,554.14 3,189.84 258.88 10,485.10
Class H-I/A (USD) - Capitalisation 936.50 205.94 936.50 205.94
Class H-N/A (CHF) - Capitalisation 16,639.30 6,098.06 15,687.30 7,050.06
The accompanying notes form an integral part of these financial statements. 67Page Mirova Funds - Mirova Global Green Bond Fund Key figures
Year ending as at: 31/12/19 31/12/18 31/12/17
Total Net Assets EUR 227,808,380.07 152,775,448.18 162,209,828.46 Class I/A (EUR) - Capitalisation Number of shares 57,075.29 42,539.52 62,603.31 Net asset value per share EUR 849.94 792.75 806.54 Class I/D (EUR) - Distribution Number of shares 19,340.45 33,261.92 45,574.85 Net asset value per share EUR 392.54 370.53 381.57 Dividend per share 4.59 4.54 1.30 Class N/A (EUR) - Capitalisation Number of shares 17,145.44 1,494.84 144.00 Net asset value per share EUR 1,063.96 993.89 1,012.68 Class N/D (EUR) - Distribution Number of shares 16,850.40 1.00 - Net asset value per share EUR 105.05 99.32 - Dividend per share 1.36 0.19 - Class R/A (EUR) - Capitalisation Number of shares 233,549.37 62,402.66 96,824.21 Net asset value per share EUR 132.00 123.67 126.37 Class R/D (EUR) - Distribution Number of shares 820.00 300.00 - Net asset value per share EUR 105.07 99.18 - Dividend per share 0.79 0.14 - Class SI/A (EUR) - Capitalisation Number of shares 10,485.10 7,554.14 6,349.87 Net asset value per share EUR 10,701.37 9,961.35 10,114.43 Class H-I/A (USD) - Capitalisation Number of shares 205.94 936.50 648.18 Net asset value per share USD 11,125.17 10,110.47 10,007.52 Class H-N/A (CHF) - Capitalisation Number of shares 7,050.06 16,639.30 14,895.10 Net asset value per share CHF 1,007.06 945.60 967.69
The accompanying notes form an integral part of these financial statements. 68Page Mirova Funds - Mirova Global Green Bond Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 204,644,854.22 89.83 on another regulated market Bonds 186,058,376.38 81.67 Austria 2,472,012.50 1.09 2,500,000.00 RAIFFEISEN BANK INT 0.375 19-26 25/09A EUR 2,472,012.50 1.09 Belgium 5,887,327.50 2.58 2,500,000.00 BELGIUM 1.25 18-33 22/04A EUR 2,804,362.50 1.23 3,000,000.00 KBC GROUPE SA 0.875 18-23 27/06A EUR 3,082,965.00 1.35 Brazil 2,274,505.12 1.00 2,400,000.00 BNDES REGS 4.75 17-24 09/05S USD 2,274,505.12 1.00 Canada 3,770,802.42 1.66 2,400,000.00 ONTARIO 2.65 18-25 05/02S CAD 1,696,042.87 0.75 2,000,000.00 ONTARIO (PROV.OF) 1.95 16-23 27/01S CAD 1,376,202.26 0.60 1,000,000.00 PROVINCE OF QUEBEC 2.45 18-23 01/03S CAD 698,557.29 0.31 Cayman Islands 3,911,554.56 1.72 4,000,000.00 FIBRIA 5.50 17-27 17/01S USD 3,911,554.56 1.72 China 1,605,232.00 0.70 1,600,000.00 IND & COMM BK C 0.2500 19-22 25/04A EUR 1,605,232.00 0.70 Denmark 3,273,765.00 1.44 3,000,000.00 ORSTED 1.50 17-29 26/11A EUR 3,273,765.00 1.44 France 34,756,252.13 15.25 200,000.00 AKUO ENERGY 5.50 16-21 12/07A EUR 208,596.00 0.09 1,200,000.00 ALD SA 1.2500 18-22 11/10A EUR 1,238,688.00 0.54 2,500,000.00 BNP PARIBAS 1.1250 19-24 28/08A EUR 2,588,887.50 1.14 1,200,000.00 EDF REGS 3.625 15-25 13/10S USD 1,141,031.63 0.50 3,600,000.00 ENGIE SA 0.375 19-27 21/06A EUR 3,615,894.00 1.59 400,000.00 FONC DES REGIONS 1.875 16-26 20/05A EUR 431,530.00 0.19 10,700,000.00 FRANCE 1.75 17-39 25/06A EUR 12,969,149.00 5.69 3,000,000.00 ICADE 1.50 17-27 13/09A EUR 3,177,435.00 1.39 2,500,000.00 LA BANQUE POSTALE 1.375 19-29 24/04A EUR 2,640,150.00 1.16 900,000.00 REGIE AUTONOME 0.3500 19-29 20/06A EUR 904,401.00 0.40 1,000,000.00 SCHNEIDER ELECTRIC SE 1.841 15-25 13/10A EUR 1,111,280.00 0.49 2,000,000.00 SNCF 2.25 17-47 20/12A EUR 2,505,540.00 1.10 1,000,000.00 SOCIETE DU GRAN 1.7000 19-50 25/05A EUR 1,148,340.00 0.50 1,000,000.00 SOCIETE DU GRAND PARI 1.125 19-34 25/05A EUR 1,075,330.00 0.47 Germany 7,308,731.00 3.21 1,800,000.00 COMMERZBANK AG 1.2500 18-23 23/10A EUR 1,854,207.00 0.81 3,600,000.00 E.ON 0.35 19-30 28/02A EUR 3,467,574.00 1.53 2,000,000.00 LDBK BADEN WUERTT 0.375 19-26 29/07A EUR 1,986,950.00 0.87 Hong Kong 908,387.53 0.40 1,000,000.00 HONG KONG 2.50 19-24 28/05S USD 908,387.53 0.40 India 3,090,200.45 1.36 1,800,000.00 EXPORT-IMPORT BK I 2.75 15-20 01/04S USD 1,605,022.72 0.71 1,600,000.00 INDIAN RAILWAY FINAN 3.835 17-27 13/12S USD 1,485,177.73 0.65 Indonesia 1,893,363.03 0.83 2,000,000.00 PERUSAHAAN PENERBIT SB 3.9 19-24 20/08S USD 1,893,363.03 0.83 Ireland 2,913,001.00 1.28 2,600,000.00 IRELAND 1.35 18-31 18/03A EUR 2,913,001.00 1.28 Italy 5,760,690.00 2.53 1,800,000.00 ASSICURAZIONI G 2.1240 19-30 01/10A EUR 1,872,531.00 0.82 1,000,000.00 A2A SPA 1.0000 19-29 16/07A EUR 1,021,805.00 0.45 1,000,000.00 FERROVIE DELLO ST 19-26 09/07A EUR 1,025,575.00 0.45 1,800,000.00 UNIONE DI BANCH 1.5000 19-24 10/04A EUR 1,840,779.00 0.81 Japan 8,202,002.49 3.60 500,000.00 MITSUBISHI UFJ 0.9800 18-23 09/10A EUR 514,520.00 0.23 400,000.00 MITSUBISHI UFJ FIN 0.68 18-23 26/01A EUR 406,522.00 0.18 2,578,000.00 MIZUHO FINANCIAL G 0.956 17-24 16/10A EUR 2,656,512.99 1.17 4,500,000.00 SUMITOMO MITSUI FINL 0.934 17-24 11/10A EUR 4,624,447.50 2.02 Lettonia 103,925.50 0.05 100,000.00 LATVENERGO 1.90 15-22 10/06A EUR 103,925.50 0.05 Lithuania 3,657,394.00 1.61 3,000,000.00 IGNITIS GRUPE 1.8750 18-28 10/07A EUR 3,223,110.00 1.42 400,000.00 IGNITIS GRUPE UAB 2.00 17-27 14/04A EUR 434,284.00 0.19
The accompanying notes form an integral part of these financial statements. 69Page Mirova Funds - Mirova Global Green Bond Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets
Luxembourg 413,173.33 0.18 585,000.00 PROVINCE OF QUEBEC 2.6 18-25 06/07S CAD 413,173.33 0.18 Mexico 1,791,786.19 0.79 2,000,000.00 NACIONAL FINANCIER 3.375 15-20 05/11S USD 1,791,786.19 0.79 Philippines 389,888.64 0.17 400,000.00 ASIAN DEVELOPME 3.1250 18-28 26/09S USD 389,888.64 0.17 South Korea 6,759,214.36 2.97 1,800,000.00 EXPORT-IMPORT BANK 2.125 16-21 11/02S USD 1,606,241.42 0.71 2,600,000.00 HYUNDAI CAPITAL SE 2.875 16-21 16/03 USD 2,328,024.94 1.02 2,800,000.00 LG CHEM 0.50 19-23 15/04A EUR 2,824,948.00 1.24 Spain 11,060,245.00 4.85 1,800,000.00 ADIF 0.95 19-27 30/04A EUR 1,870,254.00 0.82 1,400,000.00 BASQUE GOVERNME 1.1250 19-29 30/04A EUR 1,480,402.00 0.65 3,900,000.00 BBVA 1.00 19-26 21/06A EUR 4,018,306.50 1.75 2,500,000.00 IBERDROLA FINANZAS 1.25 18-26 28/10A EUR 2,654,687.50 1.17 1,000,000.00 TEEFONICA EMISIONES 1.069 19-24 05/02A EUR 1,036,595.00 0.46 Sweden 8,392,702.46 3.68 7,000,000.00 CITY OF GOTHENBURG 1.455 15-21 30/06A SEK 678,459.23 0.30 6,000,000.00 FORTUM VARME 1.75 15-22 18/05A SEK 587,126.65 0.26 1,300,000.00 KOMMUNINVEST I SVE 1.875 17-21 01/06S USD 1,160,729.17 0.51 6,800,000.00 KOMMUNINVEST I SVERI 0.625 18-23 01/06A SEK 654,609.41 0.29 3,800,000.00 SVENSKA KULLAGERFABRI 0.875 19-29 15/11A EUR 3,800,228.00 1.66 1,500,000.00 VATTENFALL AB 0.5000 19-26 24/06A EUR 1,511,550.00 0.66 The Netherlands 37,951,221.04 16.65 2,600,000.00 EDP FINANCE 1.875 18-25 12/10A EUR 2,814,474.00 1.24 3,100,000.00 ENBW INTL FINAN 1.8750 18-33 31/10A EUR 3,571,401.50 1.57 1,500,000.00 ENEL FINANCE INTL 1.125 18-26 16/09A EUR 1,568,865.00 0.69 2,500,000.00 GAS NAT FENOSA 0.875 17-25 15/05A EUR 2,578,350.00 1.13 2,800,000.00 IBERDROLA INTL 1.125 16-26 21/04A EUR 2,950,822.00 1.30 2,800,000.00 INNOGY FINANCE BV 1.25 17-27 19/10A EUR 2,959,642.00 1.30 1,500,000.00 KONINKLIJKE PHI 0.5000 19-26 22/05A EUR 1,522,507.50 0.67 2,400,000.00 LEASEPLAN CORPO 1.3750 19-24 07/03A EUR 2,486,160.00 1.09 2,000,000.00 NEDER WATERSCHAPSB 2.375 16-26 24/03S USD 1,828,142.54 0.80 700,000.00 NETHERLANDS 0.50 19-40 15/01A EUR 727,300.00 0.32 3,700,000.00 POSTNL N.V. 0.625 19-26 23/09A EUR 3,683,017.00 1.61 2,000,000.00 ROYAL SCHIPHOL GROUP 1.5 18-30 05/11A EUR 2,195,240.00 0.96 3,100,000.00 TENNET HOLDING BV 1.375 17-29 26/06A EUR 3,343,427.50 1.47 200,000.00 TENNET HOLDING B.V 1.375 18-28 05/06A EUR 215,020.00 0.09 2,200,000.00 TENNET HOLDING B.V. 1.875 16-36 13/06A EUR 2,511,894.00 1.10 1,100,000.00 TENNET HOLDING REGS 1.75 15-27 04/06A EUR 1,217,276.50 0.53 1,700,000.00 VESTEDA FINANCE 1.5000 19-27 24/05A EUR 1,777,681.50 0.78 United Kingdom 5,290,578.88 2.32 4,200,000.00 STANDARD CHARTERED P 0.9 19-27 02/07A EUR 4,256,133.00 1.87 1,100,000.00 STATE BANK INDI 4.5000 18-23 28/09S USD 1,034,445.88 0.45 United States of America 18,335,552.25 8.04 2,200,000.00 APPLE 3.00 17-27 20/06S USD 2,054,956.79 0.90 200,000.00 APPLE INC 2.85 16-23 23/02S USD 183,273.05 0.08 3,600,000.00 DIGITAL EURO FINCO 2.5 19-26 16/01A EUR 3,919,968.00 1.71 700,000.00 DIGITAL REALTY TRU 3.95 15-22 01/07S USD 649,964.81 0.29 1,000,000.00 DTE ELECTRIC CO 4.05 18-48 15/05S USD 1,036,930.96 0.46 11,000,000.00 INTL FINANCE CORP 4.75 16-21 29/04A MXN 504,995.45 0.22 1,600,000.00 NAT AUSTRALIA BANK 3.625 18-23 20/06S USD 1,497,265.04 0.66 1,800,000.00 SOUTHERN POWER 4.15 15-25 01/12S USD 1,740,612.03 0.76 1,200,000.00 SOUTHERN POWER CO 1.00 16-22 20/06A EUR 1,228,338.00 0.54 2,000,000.00 SOUTHERN POWER CO 1.85 16-26 20/06A EUR 2,174,890.00 0.95 3,400,000.00 VERIZON COMM 3.875 19-29 08/02S USD 3,344,358.12 1.47 Venezuela 3,884,868.00 1.71 3,900,000.00 CORPORACION ANDINA 0.625 19-26 20/11A EUR 3,884,868.00 1.71 Subordinated debt 18,586,477.84 8.16 Denmark 2,224,959.00 0.98 2,200,000.00 ORSTED FL.R 19-XX 09/12A EUR 2,224,959.00 0.98 Finland 2,322,114.50 1.02 2,300,000.00 CITYCON OYJ FL.R 19-XX XX/XXA EUR 2,322,114.50 1.02 France 2,106,940.50 0.92 2,100,000.00 BNP PARIBAS FL.R 19-26 04/12A EUR 2,106,940.50 0.92
The accompanying notes form an integral part of these financial statements. 70Page Mirova Funds - Mirova Global Green Bond Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets
Germany 3,128,349.50 1.37 3,100,000.00 ENBW ENERGIE B-W FL.R 19-79 05/11A EUR 3,128,349.50 1.37 Portugal 2,800,712.50 1.23 2,500,000.00 ENERGIAS DE POR FL.R 19-79 30/04A EUR 2,800,712.50 1.23 The Netherlands 4,639,972.00 2.04 2,000,000.00 IBERDROLA INTL FL.R 17-XX 22/02A EUR 2,061,760.00 0.91 2,400,000.00 TENNET HOLDING BV FL.R 17-49 12/04A EUR 2,578,212.00 1.13 United States of America 1,363,429.84 0.60 1,500,000.00 BANK OF AMERICA FL.R 18-22 17/05S USD 1,363,429.84 0.60
Other transferable securities 2,221,692.00 0.98 Bonds 2,221,692.00 0.98 France 2,221,692.00 0.98 2,200,000.00 COVIVIO SA 1.125 15-21 31/01S EUR 2,221,692.00 0.98
Total securities portfolio 206,866,546.22 90.81
The accompanying notes form an integral part of these financial statements. 71Page Mirova Funds - Mirova Global Green Bond Fund Statement of operations and changes in net assets from 01/01/19 to 31/12/19 Expressed in EUR
Income 3,023,417.52 Net dividends 2Note 984.13 Net interest on bonds 2Note 3,004,993.60 Bank interest on cash account 14,461.11 Other interest 236.54 Other income 2,742.14 Expenses 1,119,343.15 Management fees 4Note 756,376.12 Custodian & sub-custodian fees 14,670.54 Taxe d'abonnement 6Note 31,858.55 Administration fees 4Note 168,550.54 Bank interest on overdrafts 40,570.85 Transaction fees 2Note 85,931.44 Other expenses 21,385.11 Net income from investments 1,904,074.37 Net realised profit / loss on: - sales of investment securities 2Note 383,906.22 - forward foreign exchange contracts 2Note -3,870,832.39 - financial futures contracts 2Note 94,392.94 - foreign exchange 2Note 1,415,767.74 Net realised loss -72,691.12 Movement in net unrealised appreciation / depreciation on: - investments 2Note 10,523,952.52 - forward foreign exchange contracts 2Note 229,096.90 - financial futures contracts 2Note -225,001.71 Increase in net assets as a result of operations 10,455,356.59 Dividends paid 9Note -102,208.82 Subscription capitalisation shares 151,150,253.16 Subscription distribution shares 3,952,315.91 Redemption capitalisation shares -83,135,439.97 Redemption distribution shares -7,287,344.98 Increase in net assets 75,032,931.89
Net assets at the beginning of the year 152,775,448.18
Net assets at the end of the year 227,808,380.07
The accompanying notes form an integral part of these financial statements. 72Page Mirova Funds - Mirova Euro Green and Sustainable Bond Fund
73Page Mirova Funds - Mirova Euro Green and Sustainable Bond Fund Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 375,958,536.78 Securities portfolio at market value 2Note 359,815,534.37 Cost price 344,138,580.01 Unrealised profit on the securities portfolio 15,676,954.36 Cash at banks and liquidities 12,831,886.31 Interest receivable 2Note 2,911,624.91 Subscribers receivable 90,333.79 Unrealised appreciation on forward foreign exchange contracts 2Note 58,617.40 Unrealised appreciation on financial futures contracts 2Note 250,540.00 Liabilities 1,199,983.62 Bank overdrafts 250,540.00 Administration fees payable 4Note 169,524.69 Taxe d'abonnement payable 6Note 12,797.18 Redeemers payable 70,075.07 Management fees payable 4Note 697,027.60 Other liabilities 19.08 Net asset value 374,758,553.16
Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class I/A (EUR) - Capitalisation 6,522.81 6,773.52 7,100.57 6,195.76
Class I/D (EUR) - Distribution 106,184.00 1,282.00 40,028.00 67,438.00
Class M/D (EUR) - Distribution 2,342.79 130.07 203.93 2,268.93
Class N/A (EUR) - Capitalisation 8,807.54 445,327.00 203,256.59 250,877.95
Class H-N/A (CHF) - Capitalisation 5,737.61 15,823.00 1,617.00 19,943.61
Class N/D (EUR) - Distribution 4,173.63 3,980.00 - 8,153.63
Class R/A (EUR) - Capitalisation 10,315.99 177,031.89 154,973.55 32,374.33
Class R/D (EUR) - Distribution 0.20 1.32 1.52 -
Class RE/A (EUR) - Capitalisation 2,109.31 6,030.74 342.21 7,797.84
Class RE/D (EUR) - Distribution - 1.00 - 1.00
The accompanying notes form an integral part of these financial statements. 74Page Mirova Funds - Mirova Euro Green and Sustainable Bond Fund Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class SI/A (EUR) - Capitalisation 645,987.65 770,212.18 262,106.33 1,154,093.50
Key figures
Year ending as at: 31/12/19 31/12/18 31/12/17
Total Net Assets EUR 374,758,553.16 279,636,260.47 294,553,300.31 Class I/A (EUR) - Capitalisation Number of shares 6,195.76 6,522.81 9,753.14 Net asset value per share EUR 12,617.75 11,652.84 11,854.98 Class I/D (EUR) - Distribution Number of shares 67,438.00 106,184.00 90,721.00 Net asset value per share EUR 104.75 97.80 100.68 Dividend per share 1.11 1.17 1.22 Class M/D (EUR) - Distribution Number of shares 2,268.93 2,342.79 2,523.54 Net asset value per share EUR 57,379.13 53,568.61 55,145.79 Dividend per share 772.43 806.45 836.20 Class N/A (EUR) - Capitalisation Number of shares 250,877.95 8,807.54 20,996.97 Net asset value per share EUR 105.45 97.55 99.37 Class H-N/A (CHF) - Capitalisation Number of shares 19,943.61 5,737.61 1,757.61 Net asset value per share CHF 106.11 98.61 100.90 Class N/D (EUR) - Distribution Number of shares 8,153.63 4,173.63 13,948.63 Net asset value per share EUR 115.27 107.62 110.78 Dividend per share 1.06 1.16 1.21 Class R/A (EUR) - Capitalisation Number of shares 32,374.33 10,315.99 28,321.64 Net asset value per share EUR 123.17 114.27 116.75 Class R/D (EUR) - Distribution Number of shares - 0.20 - Net asset value per share EUR - 100.30 - Dividend per share 0.30 - - Class RE/A (EUR) - Capitalisation Number of shares 7,797.84 2,109.31 1,831.71 Net asset value per share EUR 121.69 113.56 116.74 Class RE/D (EUR) - Distribution Number of shares 1.00 - - Net asset value per share EUR 99.54 - - Dividend per share - - - Class SI/A (EUR) - Capitalisation Number of shares 1,154,093.50 645,987.65 230,081.89 Net asset value per share EUR 108.35 99.86 101.39
The accompanying notes form an integral part of these financial statements. 75Page Mirova Funds - Mirova Euro Green and Sustainable Bond Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 351,297,975.37 93.74 on another regulated market Bonds 327,915,319.37 87.50 Australia 2,825,922.00 0.75 1,000,000.00 NATIONAL AUSTRALIA 0.35 17-22 07/09A EUR 1,011,180.00 0.27 1,800,000.00 TOYOTA FINANCE 0.2500 19-24 09/04A EUR 1,814,742.00 0.48 Austria 988,805.00 0.26 1,000,000.00 RAIFFEISEN BANK INT 0.375 19-26 25/09A EUR 988,805.00 0.26 Belgium 15,554,619.50 4.15 13,500,000.00 BELGIUM 1.25 18-33 22/04A EUR 15,143,557.50 4.04 400,000.00 KBC GROUPE SA 0.875 18-23 27/06A EUR 411,062.00 0.11 China 1,003,270.00 0.27 1,000,000.00 IND & COMM BK C 0.2500 19-22 25/04A EUR 1,003,270.00 0.27 Denmark 1,996,928.50 0.53 1,900,000.00 VESTAS WIND SYSTEMS 2.75 15-22 11/03A EUR 1,996,928.50 0.53 France 103,503,690.50 27.61 4,400,000.00 AIR LIQUIDE FIN 0.6250 19-30 20/06A EUR 4,523,156.00 1.21 500,000.00 AKUO ENERGY 5.50 16-21 12/07A EUR 521,490.00 0.14 600,000.00 ALD SA 1.2500 18-22 11/10A EUR 619,344.00 0.17 3,000,000.00 BFCM 1.875 19-29 18/06A EUR 3,194,940.00 0.85 1,200,000.00 BNP PARIBAS 1.1250 19-24 28/08A EUR 1,242,666.00 0.33 300,000.00 CAPGEMINI S 1.7500 18-28 18/04A EUR 329,413.50 0.09 2,100,000.00 CAPGEMINI SE 2.50 15-23 01/07U EUR 2,262,519.00 0.60 1,100,000.00 CASINO GUICHARD 4.561 13-23 25/01A EUR 1,083,478.00 0.29 4,700,000.00 CREDIT AGRICOLE 2.625 15-27 17/03A EUR 5,283,246.50 1.41 4,000,000.00 CREDIT AGRICOLE 2.0000 19-29 25/03A EUR 4,283,900.00 1.14 1,400,000.00 DASSAULT SYSTEM 0.00 19-24 16/09A EUR 1,392,909.00 0.37 1,600,000.00 EDF 1.00 16-26 13/10A EUR 1,674,968.00 0.45 2,500,000.00 ELIS SA EX HOLDELIS 1.75 19-24 11/04A EUR 2,599,075.00 0.69 7,600,000.00 ENGIE SA 0.375 19-27 21/06A EUR 7,633,554.00 2.04 400,000.00 FONC DES REGIONS 1.875 16-26 20/05A EUR 431,530.00 0.12 9,600,000.00 FRANCE 1.75 17-39 25/06A EUR 11,635,872.00 3.10 700,000.00 GECINA 1.625 19-34 29/05A EUR 756,693.00 0.20 3,000,000.00 ICADE 1.50 17-27 13/09A EUR 3,177,435.00 0.85 1,000,000.00 LA BANQUE POSTALE 1.375 19-29 24/04A EUR 1,056,060.00 0.28 2,500,000.00 LEGRAND SA 0.6250 19-28 24/06A EUR 2,542,050.00 0.68 1,100,000.00 LEGRAND SA 0.75 17-24 06/07A EUR 1,133,621.50 0.30 1,200,000.00 NEXANS SA 3.75 18-23 08/08A EUR 1,319,778.00 0.35 1,100,000.00 ORANGE SA 1.375 19-49 04/09A EUR 1,003,953.50 0.27 2,100,000.00 ORPEA 2.625 18-25 10/03A EUR 2,246,328.00 0.60 1,200,000.00 PEUGEOT SA 2 18-25 20/03A EUR 1,283,622.00 0.34 700,000.00 REGIE AUTONOME 0.3500 19-29 20/06A EUR 703,423.00 0.19 800,000.00 REGION IDF 1.375 18-33 20/06A EUR 890,800.00 0.24 2,200,000.00 RENAULT CREDIT INTER 0.75 19-23 10/04A EUR 2,215,026.00 0.59 3,800,000.00 RENAULT SA 1.2500 19-25 24/06A EUR 3,796,238.00 1.01 8,000,000.00 SCHNEIDER ELECTRIC SE 1.841 15-25 13/10A EUR 8,890,240.00 2.37 7,700,000.00 SNCF 1.00 16-31 09/11A EUR 8,144,675.00 2.17 200,000.00 SNCF 2.25 17-47 20/12A EUR 250,554.00 0.07 400,000.00 SOCIETE DU GRAN 1.7000 19-50 25/05A EUR 459,336.00 0.12 1,900,000.00 SOCIETE DU GRAND PAR 1.125 18-28 22/10A EUR 2,049,634.50 0.55 1,200,000.00 SOCIETE DU GRAND PARI 1.125 19-34 25/05A EUR 1,290,396.00 0.34 1,000,000.00 SUEZ SA 1.625 17-32 21/09A EUR 1,103,615.00 0.29 700,000.00 VALEO SA 0.375 17-22 12/09A EUR 704,795.00 0.19 300,000.00 VALEO SA 1.5000 18-25 18/06A EUR 314,704.50 0.08 800,000.00 VILLE DE PARIS 1.375 17-34 20/11A EUR 885,364.00 0.24 7,500,000.00 VILLE DE PARIS 1.75 15-31 25/05A EUR 8,573,287.50 2.29 Germany 10,590,003.00 2.83 900,000.00 DEUTSCHE KREDITBK 0.75 17-24 26/09A EUR 920,911.50 0.25 2,600,000.00 E.ON 0.35 19-30 28/02A EUR 2,504,359.00 0.67 100,000.00 FRESENIUS MEDIC 1.5000 18-25 11/07A EUR 105,799.00 0.03 2,000,000.00 LANDESBANK BADEN WUE 2.2 19-29 09/05A EUR 2,130,380.00 0.57 1,100,000.00 LDBK BADEN WUERTT 0.375 19-26 29/07A EUR 1,092,822.50 0.29 700,000.00 SAP 1.75 14-27 22/02A EUR 778,043.00 0.21 800,000.00 STATE OF NORTH RHINE 1.1 19-34 13/03A EUR 873,940.00 0.23 2,100,000.00 SYMRISE AG 1.2500 19-25 29/11A EUR 2,183,748.00 0.58
The accompanying notes form an integral part of these financial statements. 76Page Mirova Funds - Mirova Euro Green and Sustainable Bond Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets
Indonesia 1,136,017.81 0.30 1,200,000.00 PERUSAHAAN PENERBIT SB 3.9 19-24 20/08S USD 1,136,017.81 0.30 Ireland 12,056,483.00 3.22 8,300,000.00 IRELAND 1.35 18-31 18/03A EUR 9,299,195.50 2.48 2,500,000.00 SMURFIT KAPPA ACQ 2.875 18-26 15/01S EUR 2,757,287.50 0.74 Italy 43,107,052.00 11.50 1,200,000.00 ASSICURAZIONI G 2.1240 19-30 01/10A EUR 1,248,354.00 0.33 2,500,000.00 A2A SPA 1.0000 19-29 16/07A EUR 2,554,512.50 0.68 1,000,000.00 BANCA MONTE DEI 0.8750 19-26 08/10A EUR 1,001,515.00 0.27 2,400,000.00 ERG SPA 1.8750 19-25 11/04A EUR 2,540,892.00 0.68 1,200,000.00 FERROVIE DELLO ST 19-26 09/07A EUR 1,230,690.00 0.33 2,000,000.00 HERA SPA 0.8750 19-27 05/07A EUR 2,042,790.00 0.55 7,000,000.00 ITALY 4.00 05-37 01/02S EUR 9,027,480.00 2.41 11,700,000.00 ITALY 5.00 03-34 01/08S EUR 16,482,082.50 4.39 200,000.00 TELECOM ITALIA 2.50 17-23 19/07A EUR 211,893.00 0.06 3,200,000.00 TELECOM ITALIA SPA 2.75 19-25 15/04A EUR 3,389,248.00 0.90 300,000.00 TERNA SPA 1.0000 19-26 10/04A EUR 309,630.00 0.08 3,000,000.00 UNIONE DI BANCH 1.5000 19-24 10/04A EUR 3,067,965.00 0.82 Japan 5,126,947.90 1.37 200,000.00 MITSUBISHI UFJ 0.9800 18-23 09/10A EUR 205,808.00 0.05 600,000.00 MITSUBISHI UFJ FIN 0.68 18-23 26/01A EUR 609,783.00 0.16 1,591,000.00 MIZUHO FINANCIAL G 0.956 17-24 16/10A EUR 1,639,453.90 0.44 2,600,000.00 SUMITOMO MITSUI FINL 0.934 17-24 11/10A EUR 2,671,903.00 0.72 Lettonia 207,851.00 0.06 200,000.00 LATVENERGO 1.90 15-22 10/06A EUR 207,851.00 0.06 Lithuania 325,713.00 0.09 300,000.00 IGNITIS GRUPE UAB 2.00 17-27 14/04A EUR 325,713.00 0.09 Luxembourg 11,674,975.50 3.12 1,000,000.00 BEI 1.50 17-47 15/11A EUR 1,223,205.00 0.33 10,300,000.00 EUROP.INVEST.BK 0.50 16-37 13/11A EUR 10,451,770.50 2.79 Philippines 4,415,545.66 1.18 5,000,000.00 ASIAN DEVELOPMENT 1.75 16-26 14/08S USD 4,415,545.66 1.18 Portugal 7,670,430.00 2.05 6,000,000.00 PORTUGAL 4.125 17-27 14/04A EUR 7,670,430.00 2.05 South Korea 2,017,820.00 0.54 2,000,000.00 LG CHEM 0.50 19-23 15/04A EUR 2,017,820.00 0.54 Spain 20,791,656.00 5.55 2,100,000.00 ADIF 0.95 19-27 30/04A EUR 2,181,963.00 0.58 2,000,000.00 ADIF ALTA VELOCIDAD 0.80 17-23 05/07A EUR 2,055,980.00 0.55 4,200,000.00 BASQUE GOVERNME 1.1250 19-29 30/04A EUR 4,441,206.00 1.19 3,900,000.00 BBVA 1.00 19-26 21/06A EUR 4,018,306.50 1.07 3,400,000.00 KINGDOM OF SPAIN 1.773 18-28 30/04A EUR 3,758,428.00 1.00 2,500,000.00 SPAIN 4.20 05-37 31/01A EUR 3,817,475.00 1.02 500,000.00 TEEFONICA EMISIONES 1.069 19-24 05/02A EUR 518,297.50 0.14 Sweden 15,188,964.50 4.05 1,400,000.00 CASTELLUM AB 2.125 18-23 20/11A EUR 1,489,502.00 0.40 1,500,000.00 SEB 0.30 17-22 17/02A EUR 1,511,017.50 0.40 2,200,000.00 SKANDINAVISKA ENSK 0.05 19-24 01/07A EUR 2,187,405.00 0.58 5,000,000.00 SVENSKA HANDELSBANKE 0.125 19-24 18/06A EUR 4,996,650.00 1.33 4,000,000.00 SVENSKA KULLAGERFABRI 0.875 19-29 15/11A EUR 4,000,240.00 1.07 1,000,000.00 SWEDBANK AB 0.250 17-22 07/11A EUR 1,004,150.00 0.27 The Netherlands 33,994,137.00 9.07 800,000.00 ASML HOLDING NV 1.375 16-26 07/07S EUR 857,800.00 0.23 3,400,000.00 EDP FINANCE 1.50 17-27 22/11A EUR 3,608,250.00 0.96 1,700,000.00 ENBW INTL FINAN 1.8750 18-33 31/10A EUR 1,958,510.50 0.52 4,500,000.00 ENEL FIN INTL 1.00 17-24 16/09A EUR 4,668,277.50 1.25 1,000,000.00 ENEL FINANCE INTL 1.125 18-26 16/09A EUR 1,045,910.00 0.28 3,200,000.00 GAS NAT FENOSA 0.875 17-25 15/05A EUR 3,300,288.00 0.88 2,400,000.00 KONINKLIJKE PHI 0.5000 19-26 22/05A EUR 2,436,012.00 0.65 2,200,000.00 LEASEPLAN CORPO 1.3750 19-24 07/03A EUR 2,278,980.00 0.61 3,600,000.00 NETHERLANDS 0.50 19-40 15/01A EUR 3,740,400.00 1.00 5,100,000.00 POSTNL N.V. 0.625 19-26 23/09A EUR 5,076,591.00 1.35 1,000,000.00 ROYAL SCHIPHOL GROUP 1.5 18-30 05/11A EUR 1,097,620.00 0.29 700,000.00 TENNET HOLDING BV 1.25 16-33 24/10A EUR 734,590.50 0.20 2,600,000.00 TENNET HOLDING REGS 1.75 15-27 04/06A EUR 2,877,199.00 0.77
The accompanying notes form an integral part of these financial statements. 77Page Mirova Funds - Mirova Euro Green and Sustainable Bond Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets 300,000.00 VESTEDA FINANCE 1.5000 19-27 24/05A EUR 313,708.50 0.08 United Kingdom 9,154,478.00 2.44 300,000.00 BRITISH TELECOM 2.125 18-28 26/09A EUR 326,590.50 0.09 600,000.00 CREDIT AGRICOLE SA 1.75 19-29 05/03A EUR 657,567.00 0.18 100,000.00 PEARSON FUNDING 1.375 15-25 06/05A EUR 103,195.00 0.03 6,100,000.00 STANDARD CHARTERED P 0.9 19-27 02/07A EUR 6,181,526.50 1.64 1,800,000.00 VODAFONE GROUP PLC 1.60 16-31 29/07A EUR 1,885,599.00 0.50 United States of America 19,005,737.50 5.07 700,000.00 ATT T 3.55 12-32 17/12A EUR 870,128.00 0.23 1,700,000.00 CITIGROUP INC 0.5000 19-22 29/01A EUR 1,719,796.50 0.46 5,600,000.00 DIGITAL EURO FINCO 2.5 19-26 16/01A EUR 6,097,728.00 1.62 1,300,000.00 ELI LILLY & CO 2.125 15-30 03/06A EUR 1,502,969.00 0.40 1,000,000.00 FORD MOTOR CREDIT CO 1.514 19-23 17/02A EUR 1,010,895.00 0.27 2,000,000.00 FORD MOTOR CREDIT CO 3.021 19-24 06/03A EUR 2,117,460.00 0.57 2,000,000.00 LEVI STRAUSS 3.375 17-27 15/03S EUR 2,142,640.00 0.57 2,400,000.00 SOUTHERN POWER CO 1.00 16-22 20/06A EUR 2,456,676.00 0.66 1,000,000.00 SOUTHERN POWER CO 1.85 16-26 20/06A EUR 1,087,445.00 0.29 Venezuela 5,578,272.00 1.49 5,600,000.00 CORPORACION ANDINA 0.625 19-26 20/11A EUR 5,578,272.00 1.49 Subordinated debt 23,382,656.00 6.24 Belgium 788,348.00 0.21 800,000.00 KBC GROUP NV FL.R 19-29 03/12A EUR 788,348.00 0.21 Denmark 404,538.00 0.11 400,000.00 ORSTED FL.R 19-XX 09/12A EUR 404,538.00 0.11 Finland 2,019,230.00 0.54 2,000,000.00 CITYCON OYJ FL.R 19-XX XX/XXA EUR 2,019,230.00 0.54 France 6,711,310.50 1.79 1,200,000.00 BNP PARIBAS FL.R 19-26 04/12A EUR 1,203,966.00 0.32 2,400,000.00 ENGIE SA FL.R 19-XX 08/07A EUR 2,436,588.00 0.64 2,200,000.00 EUROFINS SCIENTIFIC FL.R 19/XX 11/09A EUR 2,159,069.00 0.58 800,000.00 RCI BANQUE SA FL.R 19-30 18/02A EUR 810,192.00 0.22 100,000.00 SUEZ ENVIRONNEMENT FL.R 14-20 23/06A EUR 101,495.50 0.03 Germany 3,431,093.00 0.92 3,400,000.00 ENBW ENERGIE B-W FL.R 19-79 05/11A EUR 3,431,093.00 0.92 Portugal 4,954,394.00 1.32 1,000,000.00 CAIXA GERAL DEPO.DY FL.R 18-28 28/06A EUR 1,145,425.00 0.31 3,400,000.00 ENERGIAS DE POR FL.R 19-79 30/04A EUR 3,808,969.00 1.01 Spain 2,174,620.00 0.58 2,000,000.00 BANKIA SA FL.R 19-29 15/02A EUR 2,174,620.00 0.58 Sweden 1,236,702.00 0.33 1,200,000.00 SEB FL.R 14-26 28/05A EUR 1,236,702.00 0.33 The Netherlands 1,662,420.50 0.44 1,300,000.00 IBERDROLA INTL FL.R 17-XX 22/02A EUR 1,340,144.00 0.35 300,000.00 TENNET HOLDING BV FL.R 17-49 12/04A EUR 322,276.50 0.09
Other transferable securities 8,517,559.00 2.27 Bonds 8,517,559.00 2.27 France 4,856,668.00 1.29 500,000.00 AKUO ENERGY SAS 4.00 19-25 22/11A EUR 505,525.00 0.13 600,000.00 BUREAU VERITAS 1.125 19-27 18/01A EUR 614,661.00 0.16 3,700,000.00 COVIVIO SA 1.125 15-21 31/01S EUR 3,736,482.00 1.00 Sweden 3,660,891.00 0.98 3,700,000.00 CASTELLUM AB 0.7500 19-26 04/09A EUR 3,660,891.00 0.98
Total securities portfolio 359,815,534.37 96.01
The accompanying notes form an integral part of these financial statements. 78Page Mirova Funds - Mirova Euro Green and Sustainable Bond Fund Statement of operations and changes in net assets from 01/01/19 to 31/12/19 Expressed in EUR
Income 5,702,614.78 Net interest on bonds 2Note 5,696,032.42 Bank interest on cash account 6,582.36 Expenses 1,754,571.45 Management fees 4Note 1,196,591.01 Custodian & sub-custodian fees 26,218.40 Taxe d'abonnement 6Note 49,362.11 Administration fees 4Note 325,470.85 Bank interest on overdrafts 61,851.50 Transaction fees 2Note 67,373.20 Other expenses 27,704.38 Net income from investments 3,948,043.33 Net realised profit / loss on: - sales of investment securities 2Note 6,536,154.55 - forward foreign exchange contracts 2Note -494,165.68 - financial futures contracts 2Note -223,155.56 - foreign exchange 2Note 97,853.03 Net realised profit 9,864,729.67 Movement in net unrealised appreciation / depreciation on: - investments 2Note 16,118,803.17 - forward foreign exchange contracts 2Note 35,018.24 - financial futures contracts 2Note 563,353.51 Increase in net assets as a result of operations 26,581,904.59 Dividends paid 9Note -1,879,071.34 Subscription capitalisation shares 236,980,484.31 Subscription distribution shares 7,959,688.85 Redemption capitalisation shares -158,923,402.18 Redemption distribution shares -15,597,311.54 Increase in net assets 95,122,292.69
Net assets at the beginning of the year 279,636,260.47
Net assets at the end of the year 374,758,553.16
The accompanying notes form an integral part of these financial statements. 79Page Mirova Funds - Mirova Euro Green and Sustainable Corporate Bond Fund
80Page Mirova Funds - Mirova Euro Green and Sustainable Corporate Bond Fund Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 249,636,430.27 Securities portfolio at market value 2Note 241,025,679.74 Cost price 231,113,463.59 Unrealised profit on the securities portfolio 9,912,216.15 Cash at banks and liquidities 6,337,486.04 Interest receivable 2Note 1,948,319.90 Subscribers receivable 30,984.59 Unrealised appreciation on financial futures contracts 2Note 293,960.00 Liabilities 1,087,805.42 Bank overdrafts 293,960.00 Administration fees payable 4Note 148,095.43 Taxe d'abonnement payable 6Note 17,188.75 Redeemers payable 15,098.86 Management fees payable 4Note 613,456.29 Other liabilities 6.09 Net asset value 248,548,624.85
Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class I/A (EUR) - Capitalisation 425,785.28 313,833.50 40,219.20 699,399.58
Class I/D (EUR) - Distribution - 43,855.00 17,525.00 26,330.00
Class N/A (EUR) - Capitalisation 1,021,858.13 254,248.61 361,725.76 914,380.98
Class N/D (EUR) - Distribution 1,895.00 13,760.29 458.00 15,197.29
Class R/A (EUR) - Capitalisation 40,825.01 39,580.64 22,986.28 57,419.37
Class R/D (EUR) - Distribution 7,819.05 2,150.11 4,509.00 5,460.16
Class RE/A (EUR) - Capitalisation - 390.19 291.45 98.74
Class RE/D (EUR) - Distribution - 1.00 - 1.00
The accompanying notes form an integral part of these financial statements. 81Page Mirova Funds - Mirova Euro Green and Sustainable Corporate Bond Fund Key figures
Year ending as at: 31/12/19 31/12/18 31/12/17
Total Net Assets EUR 248,548,624.85 186,870,897.13 201,567,389.25 Class I/A (EUR) - Capitalisation Number of shares 699,399.58 425,785.28 535,435.76 Net asset value per share EUR 194.67 181.78 186.05 Class I/D (EUR) - Distribution Number of shares 26,330.00 - 40,414.42 Net asset value per share EUR 100.45 - 125.20 Dividend per share 0.18 0.60 1.29 Class N/A (EUR) - Capitalisation Number of shares 914,380.98 1,021,858.13 902,562.64 Net asset value per share EUR 106.37 99.46 101.94 Class N/D (EUR) - Distribution Number of shares 15,197.29 1,895.00 - Net asset value per share EUR 104.92 98.87 - Dividend per share 0.78 0.26 - Class R/A (EUR) - Capitalisation Number of shares 57,419.37 40,825.01 24,211.22 Net asset value per share EUR 179.61 168.46 173.18 Class R/D (EUR) - Distribution Number of shares 5,460.16 7,819.05 6,789.93 Net asset value per share EUR 103.03 97.10 100.34 Dividend per share 0.48 0.53 0.26 Class RE/A (EUR) - Capitalisation Number of shares 98.74 - - Net asset value per share EUR 103.13 - - Class RE/D (EUR) - Distribution Number of shares 1.00 - - Net asset value per share EUR 99.94 - - Dividend per share - - -
The accompanying notes form an integral part of these financial statements. 82Page Mirova Funds - Mirova Euro Green and Sustainable Corporate Bond Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 240,103,688.24 96.60 on another regulated market Bonds 217,628,431.99 87.56 Australia 8,467,862.00 3.41 1,000,000.00 TELSTRA CORPORATION L 1.375 19-29 26/03A EUR 1,066,265.00 0.43 3,600,000.00 TOYOTA FINANCE 0.2500 19-24 09/04A EUR 3,629,484.00 1.46 3,700,000.00 WESTPAC BANKING 0.625 17-24 22/11A EUR 3,772,113.00 1.52 Belgium 2,774,668.50 1.12 2,700,000.00 KBC GROUPE SA 0.875 18-23 27/06A EUR 2,774,668.50 1.12 Canada 1,001,480.00 0.40 1,000,000.00 ROYAL BANK OF C 0.2500 19-24 02/05A EUR 1,001,480.00 0.40 China 1,203,924.00 0.48 1,200,000.00 IND & COMM BK C 0.2500 19-22 25/04A EUR 1,203,924.00 0.48 Denmark 8,296,897.50 3.34 600,000.00 NYKREDIT REALKR 0.1250 19-24 10/07A EUR 591,099.00 0.24 2,500,000.00 NYKREDIT REALKR 0.6250 19-25 17/01A EUR 2,516,062.50 1.01 3,600,000.00 ORSTED 1.50 17-29 26/11A EUR 3,928,518.00 1.58 1,200,000.00 VESTAS WIND SYSTEMS 2.75 15-22 11/03A EUR 1,261,218.00 0.51 Finland 2,057,740.00 0.83 1,000,000.00 FORTUM OYJ 0.8750 19-23 27/02A EUR 1,018,140.00 0.41 1,000,000.00 NOKIA CORP 2.00 19-26 11/03A EUR 1,039,600.00 0.42 France 48,572,382.00 19.54 1,000,000.00 AIR LIQUIDE FIN 0.6250 19-30 20/06A EUR 1,027,990.00 0.41 600,000.00 AKUO ENERGY 5.50 16-21 12/07A EUR 625,788.00 0.25 1,000,000.00 ALD SA 1.2500 18-22 11/10A EUR 1,032,240.00 0.42 2,800,000.00 BFCM 1.875 19-29 18/06A EUR 2,981,944.00 1.20 1,200,000.00 BNP PARIBAS 1.1250 19-24 28/08A EUR 1,242,666.00 0.50 1,900,000.00 CAPGEMINI S 1.7500 18-28 18/04A EUR 2,086,285.50 0.84 1,500,000.00 CAPGEMINI SE 2.50 15-23 01/07U EUR 1,616,085.00 0.65 700,000.00 CASINO GUICHARD 4.561 13-23 25/01A EUR 689,486.00 0.28 2,000,000.00 COMPAGNIE DE SGOBAIN 1.875 18-28 21/09A EUR 2,206,000.00 0.89 3,800,000.00 CREDIT AGRICOLE 2.625 15-27 17/03A EUR 4,271,561.00 1.71 2,400,000.00 CREDIT AGRICOLE 2.0000 19-29 25/03A EUR 2,570,340.00 1.03 2,000,000.00 DANONE 1.00 18-25 26/03A EUR 2,093,280.00 0.84 900,000.00 DASSAULT SYSTEM 0.00 19-24 16/09A EUR 895,441.50 0.36 2,800,000.00 EDF 1.00 16-26 13/10A EUR 2,931,194.00 1.18 500,000.00 ELIS SA EX HOLDELIS 1.75 19-24 11/04A EUR 519,815.00 0.21 1,000,000.00 ENGIE 2.375 14-26 19/05A EUR 1,142,805.00 0.46 800,000.00 FONC DES REGIONS 1.875 16-26 20/05A EUR 863,060.00 0.35 1,000,000.00 GECINA 1.625 19-34 29/05A EUR 1,080,990.00 0.43 2,000,000.00 ICADE 1.50 17-27 13/09A EUR 2,118,290.00 0.85 1,500,000.00 LA BANQUE POSTALE 1.375 19-29 24/04A EUR 1,584,090.00 0.64 1,000,000.00 LEGRAND SA 0.6250 19-28 24/06A EUR 1,016,820.00 0.41 400,000.00 ORANGE SA 1.375 19-49 04/09A EUR 365,074.00 0.15 1,900,000.00 ORPEA 2.625 18-25 10/03A EUR 2,032,392.00 0.82 900,000.00 PEUGEOT SA 2 18-25 20/03A EUR 962,716.50 0.39 1,000,000.00 PSA BANQUE FRAN 0.5000 19-22 12/04A EUR 1,009,970.00 0.41 900,000.00 RCI BANQUE SA 0.2500 19-23 08/03A EUR 893,349.00 0.36 1,200,000.00 RENAULT CREDIT INTER 0.75 19-23 10/04A EUR 1,208,196.00 0.49 900,000.00 RENAULT SA 1.00 17-23 08/03A EUR 913,243.50 0.37 2,100,000.00 RENAULT SA 1.2500 19-25 24/06A EUR 2,097,921.00 0.84 400,000.00 SCHNEIDER ELECT 1.3750 18-27 21/06A EUR 430,368.00 0.17 3,900,000.00 UNIBAIL-RODAMCO REGS 1.00 15-25 14/03A EUR 4,062,981.00 1.63 Germany 8,228,823.00 3.31 1,000,000.00 COMMERZBANK AG 1.2500 18-23 23/10A EUR 1,030,115.00 0.41 400,000.00 DEUTSCHE KREDITBANK 0.875 18-28 02/10A EUR 426,278.00 0.17 2,000,000.00 DEUTSCHE KREDITBK 0.75 17-24 26/09A EUR 2,046,470.00 0.83 1,000,000.00 E.ON 0.35 19-30 28/02A EUR 963,215.00 0.39 500,000.00 FRESENIUS MEDIC 1.5000 18-25 11/07A EUR 528,995.00 0.21 1,500,000.00 LANDESBANK BADEN WUE 2.2 19-29 09/05A EUR 1,597,785.00 0.64 600,000.00 LDBK BADEN WUERTT 0.375 19-26 29/07A EUR 596,085.00 0.24 1,000,000.00 SYMRISE AG 1.2500 19-25 29/11A EUR 1,039,880.00 0.42 Italy 7,847,809.00 3.16 1,000,000.00 A2A SPA 1.0000 19-29 16/07A EUR 1,021,805.00 0.41 300,000.00 BANCA MONTE DEI 0.8750 19-26 08/10A EUR 300,454.50 0.12
The accompanying notes form an integral part of these financial statements. 83Page Mirova Funds - Mirova Euro Green and Sustainable Corporate Bond Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets 1,100,000.00 BANCA MONTE DEI PASC 2.00 19-24 29/01A EUR 1,159,944.50 0.47 1,500,000.00 ERG SPA 1.8750 19-25 11/04A EUR 1,588,057.50 0.64 900,000.00 FERROVIE DELLO ST 19-26 09/07A EUR 923,017.50 0.37 800,000.00 TELECOM ITALIA 2.50 17-23 19/07A EUR 847,572.00 0.34 1,700,000.00 TELECOM ITALIA SPA 2.75 19-25 15/04A EUR 1,800,538.00 0.73 200,000.00 TERNA SPA 1.0000 19-26 10/04A EUR 206,420.00 0.08 Japan 17,402,971.99 7.00 1,200,000.00 MITSUBISHI UFJ 0.9800 18-23 09/10A EUR 1,234,848.00 0.50 5,300,000.00 MITSUBISHI UFJ FIN 0.68 18-23 26/01A EUR 5,386,416.50 2.17 4,978,000.00 MIZUHO FINANCIAL G 0.956 17-24 16/10A EUR 5,129,604.99 2.06 5,500,000.00 SUMITOMO MITSUI FINL 0.934 17-24 11/10A EUR 5,652,102.50 2.27 Jersey Island 2,874,447.00 1.16 2,700,000.00 WPP FINANCE DEUTSCHLA 1.625 15-30 23/03A EUR 2,874,447.00 1.16 Lettonia 103,925.50 0.04 100,000.00 LATVENERGO 1.90 15-22 10/06A EUR 103,925.50 0.04 Lithuania 5,824,278.00 2.34 3,400,000.00 IGNITIS GRUPE 1.8750 18-28 10/07A EUR 3,652,858.00 1.47 2,000,000.00 IGNITIS GRUPE UAB 2.00 17-27 14/04A EUR 2,171,420.00 0.87 Norway 2,810,416.00 1.13 800,000.00 SPAREBANK 1 NOR 0.1250 19-25 11/12A EUR 779,776.00 0.31 2,000,000.00 SPAREBANK 1 SR 0.6250 19-24 25/03A EUR 2,030,640.00 0.82 South Korea 1,513,365.00 0.61 1,500,000.00 LG CHEM 0.50 19-23 15/04A EUR 1,513,365.00 0.61 Spain 10,126,888.50 4.07 1,000,000.00 ADIF 0.95 19-27 30/04A EUR 1,039,030.00 0.42 2,000,000.00 BANCO BILBAO VIZCAYA 1.375 18-25 14/05A EUR 2,103,000.00 0.84 1,000,000.00 BANKIA SA 1.0000 19-24 25/06A EUR 1,013,310.00 0.41 1,000,000.00 BANKIA SA 0.75 19-26 09/07A EUR 1,001,935.00 0.40 600,000.00 BBVA 1.00 19-26 21/06A EUR 618,201.00 0.25 500,000.00 CAIXABANK SA 1.3750 19-26 19/06A EUR 515,072.50 0.21 1,400,000.00 IBERDROLA FINANZAS 1.25 18-26 28/10A EUR 1,486,625.00 0.59 1,100,000.00 KINGDOM OF SPAIN 1.773 18-28 30/04A EUR 1,215,962.00 0.49 400,000.00 TEEFONICA EMISIONES 1.069 19-24 05/02A EUR 414,638.00 0.17 600,000.00 TELEFONICA EMISIONES 2.932 14-29 17/10A EUR 719,115.00 0.29 Sweden 9,873,871.00 3.97 900,000.00 ALFA LAVAL TREA 0.2500 19-24 25/06A EUR 894,703.50 0.36 2,000,000.00 CASTELLUM AB 2.125 18-23 20/11A EUR 2,127,860.00 0.86 2,000,000.00 HEIMSTADEN BOST 2.1250 19-23 05/09A EUR 2,103,860.00 0.85 1,200,000.00 SKANDINAVISKA ENSK 0.05 19-24 01/07A EUR 1,193,130.00 0.48 1,200,000.00 SVENSKA HANDELSBANKE 0.125 19-24 18/06A EUR 1,199,196.00 0.48 700,000.00 SVENSKA HANDELSBANKEN 0.05 19-26 03/09A EUR 679,997.50 0.27 800,000.00 TELE2 AB 2.1250 18-28 15/05A EUR 868,964.00 0.35 800,000.00 VATTENFALL AB 0.5000 19-26 24/06A EUR 806,160.00 0.32 The Netherlands 39,149,481.00 15.75 3,300,000.00 ASML HOLDING NV 1.375 16-26 07/07S EUR 3,538,425.00 1.42 1,000,000.00 DEUTSCHE TELEKOM EMTN 7.50 03-33 24/01A EUR 1,762,580.00 0.71 1,500,000.00 EDP FINANCE 1.50 17-27 22/11A EUR 1,591,875.00 0.64 5,100,000.00 ENBW INTL FINAN 1.8750 18-33 31/10A EUR 5,875,531.50 2.36 1,500,000.00 ENEL FINANCE INTL 1.125 18-26 16/09A EUR 1,568,865.00 0.63 4,400,000.00 GAS NAT FENOSA 0.875 17-25 15/05A EUR 4,537,896.00 1.83 3,200,000.00 IBERDROLA INTL 1.125 16-26 21/04A EUR 3,372,368.00 1.36 3,400,000.00 INNOGY FINANCE BV 1.25 17-27 19/10A EUR 3,593,851.00 1.45 1,000,000.00 KONINKLIJKE PHI 0.5000 19-26 22/05A EUR 1,015,005.00 0.41 2,000,000.00 LEASEPLAN CORPO 1.3750 19-24 07/03A EUR 2,071,800.00 0.83 300,000.00 POSTNL N.V. 0.625 19-26 23/09A EUR 298,623.00 0.12 1,500,000.00 ROYAL SCHIPHOL GROUP 1.5 18-30 05/11A EUR 1,646,430.00 0.66 3,000,000.00 TENNET HOLDING BV 1.25 16-33 24/10A EUR 3,148,245.00 1.27 3,500,000.00 TENNET HOLDING REGS 1.75 15-27 04/06A EUR 3,873,152.50 1.56 1,200,000.00 VESTEDA FINANCE 1.5000 19-27 24/05A EUR 1,254,834.00 0.50 United Kingdom 14,380,943.00 5.79 3,800,000.00 BRITISH TELECOM 1.75 16-26 10/03A EUR 4,020,438.00 1.62 1,000,000.00 CREDIT AGRICOLE SA 1.75 19-29 05/03A EUR 1,095,945.00 0.44 1,000,000.00 GLAXOSMITHKLINE 1.7500 18-30 21/05A EUR 1,115,950.00 0.45 600,000.00 OMNICOM FINANCE HOLD 0.8 19-27 08/07A EUR 603,384.00 0.24 1,000,000.00 SSE PLC 0.875 17-25 06/09A EUR 1,027,915.00 0.41
The accompanying notes form an integral part of these financial statements. 84Page Mirova Funds - Mirova Euro Green and Sustainable Corporate Bond Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets 1,800,000.00 SSE PLC 1.375 18-27 04/09A EUR 1,904,742.00 0.77 2,200,000.00 STANDARD CHARTERED P 0.9 19-27 02/07A EUR 2,229,403.00 0.90 2,000,000.00 VODAFONE GROUP 1.875 14-25 11/09A EUR 2,169,880.00 0.87 200,000.00 WELCOME TRUST LTD 1.125 15-27 21/01A EUR 213,286.00 0.09 United States of America 25,116,259.00 10.11 800,000.00 AMGEN 2.00 16-26 25/02A EUR 881,036.00 0.35 1,500,000.00 AT T 3.375 14-34 15/03A EUR 1,808,977.50 0.73 2,700,000.00 AT&T INC 2.60 14-29 17/12A EUR 3,086,829.00 1.24 1,600,000.00 ATT T 3.55 12-32 17/12A EUR 1,988,864.00 0.80 4,800,000.00 DIGITAL EURO FINCO 2.5 19-26 16/01A EUR 5,226,624.00 2.10 3,000,000.00 ECOLAB 2.625 15-25 08/07A EUR 3,396,390.00 1.37 900,000.00 ECOLAB INC 1.00 16-24 15/01A EUR 934,132.50 0.38 1,800,000.00 FORD MOTOR CREDIT CO 1.514 19-23 17/02A EUR 1,819,611.00 0.73 1,800,000.00 FORD MOTOR CREDIT CO 3.021 19-24 06/03A EUR 1,905,714.00 0.77 1,100,000.00 LEVI STRAUSS 3.375 17-27 15/03S EUR 1,178,452.00 0.47 800,000.00 ORACLE CORP 3.125 13-25 10/07A EUR 932,228.00 0.38 1,800,000.00 SOUTHERN POWER CO 1.85 16-26 20/06A EUR 1,957,401.00 0.79 Subordinated debt 22,475,256.25 9.04 Denmark 1,259,818.25 0.51 425,000.00 NYKREDIT REALKREDIT FL.R 15-27 17/11A EUR 450,742.25 0.18 800,000.00 ORSTED FL.R 19-XX 09/12A EUR 809,076.00 0.33 Finland 1,615,384.00 0.65 1,600,000.00 CITYCON OYJ FL.R 19-XX XX/XXA EUR 1,615,384.00 0.65 France 8,446,930.00 3.40 2,000,000.00 BNP PARIBAS FL.R 19-26 04/12A EUR 2,006,610.00 0.81 1,700,000.00 ENGIE SA FL.R 19-XX 08/07A EUR 1,725,916.50 0.69 800,000.00 EUROFINS SCIENTIFIC FL.R 19/XX 11/09A EUR 785,116.00 0.32 1,500,000.00 LA POSTE SA FL.R 18-31.12.99A EUR 1,597,327.50 0.64 1,100,000.00 RCI BANQUE SA FL.R 19-30 18/02A EUR 1,114,014.00 0.45 1,200,000.00 SUEZ ENVIRONNEMENT FL.R 14-20 23/06A EUR 1,217,946.00 0.49 Germany 1,412,803.00 0.57 1,400,000.00 ENBW ENERGIE B-W FL.R 19-79 05/11A EUR 1,412,803.00 0.57 Portugal 2,489,767.00 1.00 1,000,000.00 CAIXA GERAL DEPO.DY FL.R 18-28 28/06A EUR 1,145,425.00 0.46 1,200,000.00 ENERGIAS DE POR FL.R 19-79 30/04A EUR 1,344,342.00 0.54 Spain 2,174,620.00 0.87 2,000,000.00 BANKIA SA FL.R 19-29 15/02A EUR 2,174,620.00 0.87 Sweden 1,545,877.50 0.62 1,500,000.00 SEB FL.R 14-26 28/05A EUR 1,545,877.50 0.62 The Netherlands 3,530,056.50 1.42 900,000.00 IBERDROLA INTL FL.R 17-XX 22/02A EUR 927,792.00 0.37 1,500,000.00 TELEFONICA EUROPE BV FL.R 13-XX XX/XXA EUR 1,635,435.00 0.66 900,000.00 TENNET HOLDING BV FL.R 17-49 12/04A EUR 966,829.50 0.39
Other transferable securities 921,991.50 0.37 Bonds 921,991.50 0.37 France 921,991.50 0.37 900,000.00 BUREAU VERITAS 1.125 19-27 18/01A EUR 921,991.50 0.37
Total securities portfolio 241,025,679.74 96.97
The accompanying notes form an integral part of these financial statements. 85Page Mirova Funds - Mirova Euro Green and Sustainable Corporate Bond Fund Statement of operations and changes in net assets from 01/01/19 to 31/12/19 Expressed in EUR
Income 3,337,914.29 Net interest on bonds 2Note 3,337,083.57 Bank interest on cash account 830.72 Expenses 1,622,460.41 Management fees 4Note 1,129,370.26 Custodian & sub-custodian fees 14,339.06 Taxe d'abonnement 6Note 69,001.94 Administration fees 4Note 304,893.20 Bank interest on overdrafts 42,719.07 Transaction fees 2Note 45,363.03 Other expenses 16,773.85 Net income from investments 1,715,453.88 Net realised profit / loss on: - sales of investment securities 2Note 1,481,659.98 - financial futures contracts 2Note -1,444,098.41 - foreign exchange 2Note 5,154.19 Net realised profit 1,758,169.64 Movement in net unrealised appreciation / depreciation on: - investments 2Note 11,947,295.43 - financial futures contracts 2Note 377,013.45 Increase in net assets as a result of operations 14,082,478.52 Dividends paid 9Note -14,098.69 Subscription capitalisation shares 93,625,737.53 Subscription distribution shares 6,018,202.71 Redemption capitalisation shares -49,769,073.64 Redemption distribution shares -2,265,518.71 Increase in net assets 61,677,727.72
Net assets at the beginning of the year 186,870,897.13
Net assets at the end of the year 248,548,624.85
The accompanying notes form an integral part of these financial statements. 86Page Mirova Funds - Mirova Europe Sustainable Economy Fund
87Page Mirova Funds - Mirova Europe Sustainable Economy Fund Financial Statements as at 31/12/19 Statement of net assets as at 31/12/19 Expressed in EUR
Assets 36,837,609.88 Securities portfolio at market value 2Note 36,654,032.97 Cost price 32,139,646.47 Unrealised profit on the securities portfolio 4,514,386.50 Cash at banks and liquidities 23,303.86 Interest receivable 2Note 136,219.96 Dividends receivable 2Note 12,440.81 Unrealised appreciation on forward foreign exchange contracts 2Note 9,132.28 Unrealised appreciation on financial futures contracts 2Note 2,480.00 Liabilities 26,684.16 Bank overdrafts 2,480.00 Administration fees payable 4Note 10,485.91 Taxe d'abonnement payable 6Note 920.40 Performance fees payable 5Note 2,479.46 Management fees payable 4Note 10,318.39 Net asset value 36,810,925.72
Changes in number of shares outstanding from 01/01/19 to 31/12/19
Shares Shares outstanding as at Shares issued Shares redeemed outstanding as at 01/01/19 31/12/19
Class I/A (EUR) - Capitalisation 500.00 6,071.94 184.90 6,387.04
Class Q/A (EUR) - Capitalisation 300,000.00 - - 300,000.00
Class R/A (EUR) - Capitalisation 10.00 - - 10.00
Key figures
Year ending as at: 31/12/19 31/12/18
Total Net Assets EUR 36,810,925.72 30,091,754.24 Class I/A (EUR) - Capitalisation Number of shares 6,387.04 500.00 Net asset value per share EUR 118.80 100.12 Class Q/A (EUR) - Capitalisation Number of shares 300,000.00 300,000.00 Net asset value per share EUR 120.17 100.14 Class R/A (EUR) - Capitalisation Number of shares 10.00 10.00 Net asset value per share EUR 118.03 100.09
The accompanying notes form an integral part of these financial statements. 88Page Mirova Funds - Mirova Europe Sustainable Economy Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets Transferable securities admitted to an official stock exchange listing and/or dealt in 35,951,802.47 97.67 on another regulated market Shares 21,051,173.30 57.19 Belgium 862,781.20 2.34 24,257.00 BIOCARTIS GROUP 144/REG S EUR 138,750.04 0.38 6,142.00 KBC GROUPE SA EUR 411,882.52 1.11 7,199.00 UMICORE SA EUR 312,148.64 0.85 Denmark 632,581.48 1.72 6,142.00 NOVO NORDISK DKK 317,805.86 0.86 3,494.00 VESTAS WIND SYSTEMS AS DKK 314,775.62 0.86 Finland 303,010.73 0.82 9,803.00 UPM KYMMENE CORP EUR 303,010.73 0.82 France 8,406,737.81 22.85 3,340.00 AIR LIQUIDE SA EUR 421,508.00 1.15 9,809.00 ALSTOM SA EUR 414,234.07 1.13 20,939.00 AXA SA EUR 525,778.29 1.43 3,600.00 CAPGEMINI SE EUR 392,040.00 1.07 13,564.00 CIE DE SAINT-GOBAIN EUR 495,086.00 1.34 32,691.00 CREDIT AGRICOLE SA EUR 422,531.18 1.15 6,539.00 DANONE EUR 483,232.10 1.31 2,730.00 DASSAULT SYSTEMES SA EUR 400,081.50 1.09 10,000.00 ELIS SA EUR 185,000.00 0.50 22,316.00 ENGIE EUR 321,350.40 0.87 2,080.00 ESSILORLUXOTTICA SA EUR 282,464.00 0.77 1,129.00 EUROFINS SCIENTIFIC EUR 557,951.80 1.52 6,831.00 FAURECIA EUR 328,092.93 0.89 1,221.00 L'OREAL SA EUR 322,344.00 0.88 1,533.00 LVMH EUR 634,968.60 1.73 2,700.00 NEXANS SA EUR 117,423.00 0.32 25,030.00 ORANGE EUR 328,393.60 0.89 3,533.00 ORPEA SA EUR 403,821.90 1.10 8,859.00 PEUGEOT SA EUR 188,696.70 0.51 5,178.00 RENAULT SA EUR 218,408.04 0.59 1,540.00 SCHNEIDER ELECTRIC SE EUR 140,910.00 0.38 700.00 UNIBAIL RODAMCO EUR 98,455.00 0.27 8,920.00 VEOLIA ENVIRONNEMENT SA EUR 211,493.20 0.57 39,270.00 VOTALIA EUR 512,473.50 1.39 Germany 2,117,966.99 5.75 1,712.00 ALLIANZ SE REG SHS EUR 373,900.80 1.02 19,110.00 DEUTSCHE TELEKOM AG REG SHS EUR 278,432.70 0.76 2,874.00 GRENKELEASING NAMENS-AKT. EUR 265,126.50 0.72 20,769.00 INFINEON TECHNOLOGIES REG SHS EUR 421,818.39 1.14 1,732.00 MORPHOSYS EUR 219,617.60 0.60 1,717.00 MUENCHENER RUECKVERSICHERUNGS AG REG SHS EUR 451,571.00 1.22 1,000.00 WIRECARD AG EUR 107,500.00 0.29 Ireland 1,083,020.11 2.94 2,505.00 KERRY GROUP -A- EUR 278,305.50 0.76 6,099.00 KINGSPAN GROUP EUR 332,090.55 0.90 13,715.00 SMURFIT KAPPA PLC GBP 472,624.06 1.28 Italy 1,034,042.30 2.81 31,711.00 ENEL SPA EUR 224,260.19 0.61 131,227.00 INTESA SANPAOLO SPA EUR 308,186.61 0.84 38,525.00 UNICREDIT -REGISTERD SHARE EUR 501,595.50 1.36 Jersey Island 220,730.61 0.60 7,329.00 EXPERIAN GROUP GBP 220,730.61 0.60 Spain 557,247.78 1.51 876.00 AMADEUS IT -A- EUR 63,772.80 0.17 7,355.00 FERROVIAL SA EUR 198,364.35 0.54 18,875.00 GAMESA CORPORACION TECNOLOGICA SA EUR 295,110.63 0.80 Sweden 362,806.36 0.99 43,282.00 SKANDINAVISKA ENSKILDA BANKEN -A- SEK 362,806.36 0.99 Switzerland 628,885.64 1.71 14,717.00 ABB LTD REG SHS CHF 316,408.73 0.86 3,696.00 NOVARTIS AG REG SHS CHF 312,476.91 0.85
The accompanying notes form an integral part of these financial statements. 89Page Mirova Funds - Mirova Europe Sustainable Economy Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets
The Netherlands 1,838,119.55 4.99 16,743.00 ALFEN NV EUR 275,254.92 0.75 1,832.00 ASML HLDG EUR 483,098.40 1.31 13,941.00 CORBION EUR 392,020.92 1.06 11,009.00 QIAGEN REGD EUR EUR 335,334.14 0.91 6,879.00 UNILEVER NV EUR 352,411.17 0.96 United Kingdom 2,492,224.11 6.77 6,367.00 ASTRAZENECA PLC GBP 571,591.07 1.55 40,000.00 AVIVA PLC GBP 197,651.50 0.54 6,144.00 CRODA INTL - REGISTERED SHS GBP 371,243.05 1.01 17,066.00 PRUDENTIAL PLC GBP 291,834.94 0.79 3,660.00 RECKITT BENCKISER GROUP PLC GBP 264,732.87 0.72 15,745.00 RELX PLC GBP 354,069.72 0.96 254,679.00 VODAFONE GROUP GBP 441,100.96 1.20 United States of America 511,018.63 1.39 1,269.00 ECOLAB INC USD 218,177.56 0.59 1,397.00 NVIDIA CORP USD 292,841.07 0.80 Bonds 11,202,484.17 30.43 Denmark 512,337.50 1.39 200,000.00 NYKREDIT REALKR 0.1250 19-24 10/07A EUR 197,033.00 0.54 300,000.00 VESTAS WIND SYSTEMS 2.75 15-22 11/03A EUR 315,304.50 0.85 France 3,632,983.00 9.87 200,000.00 AIR LIQUIDE FIN 0.6250 19-30 20/06A EUR 205,598.00 0.56 300,000.00 BNP PARIBAS 1.1250 19-24 28/08A EUR 310,666.50 0.84 100,000.00 CASINO GUICHARD 4.561 13-23 25/01A EUR 98,498.00 0.27 200,000.00 CIE DE SAINT-GOBAI 1 17-25 17/03A EUR 207,244.00 0.56 200,000.00 CREDIT AGRICOLE 2.0000 19-29 25/03A EUR 214,195.00 0.58 200,000.00 DASSAULT SYSTEM 0.00 19-24 16/09A EUR 198,987.00 0.54 200,000.00 ELIS SA EX HOLDELIS 1.75 19-24 11/04A EUR 207,926.00 0.56 300,000.00 ENGIE SA 0.375 19-27 21/06A EUR 301,324.50 0.82 300,000.00 EUROFINS SCIENTIFIC 2.125 17-24 25/07A EUR 304,974.00 0.83 400,000.00 FONC DES REGIONS 1.875 16-26 20/05A EUR 431,530.00 1.18 200,000.00 GECINA 1.625 19-34 29/05A EUR 216,198.00 0.59 300,000.00 ICADE 1.50 17-27 13/09A EUR 317,743.50 0.86 200,000.00 LA BANQUE POSTALE 1.375 19-29 24/04A EUR 211,212.00 0.57 100,000.00 LEGRAND SA 0.6250 19-28 24/06A EUR 101,682.00 0.28 100,000.00 ORANGE SA 1.375 19-49 04/09A EUR 91,268.50 0.25 200,000.00 ORPEA 2.625 18-25 10/03A EUR 213,936.00 0.58 Germany 431,301.17 1.17 203,000.00 COMMERZBANK AG 4.00 17-27 30/03A EUR 230,991.67 0.63 100,000.00 E.ON 0.35 19-30 28/02A EUR 96,321.50 0.26 100,000.00 SYMRISE AG 1.2500 19-25 29/11A EUR 103,988.00 0.28 Ireland 220,583.00 0.60 200,000.00 SMURFIT KAPPA ACQ 2.875 18-26 15/01S EUR 220,583.00 0.60 Italy 1,854,333.50 5.04 300,000.00 A2A SPA 1.0000 19-29 16/07A EUR 306,541.50 0.83 100,000.00 BANCA MONTE DEI 0.8750 19-26 08/10A EUR 100,151.50 0.27 300,000.00 ERG SPA 1.8750 19-25 11/04A EUR 317,611.50 0.86 500,000.00 FERROVIE DELLO ST 19-26 09/07A EUR 512,787.50 1.40 100,000.00 TELECOM ITALIA SPA 2.75 19-25 15/04A EUR 105,914.00 0.29 500,000.00 UNIONE DI BANCH 1.5000 19-24 10/04A EUR 511,327.50 1.39 Lithuania 108,571.00 0.29 100,000.00 IGNITIS GRUPE UAB 2.00 17-27 14/04A EUR 108,571.00 0.29 Spain 989,458.00 2.69 200,000.00 BANCO SANTANDER SA 2.125 18-28 08/02A EUR 214,837.00 0.58 300,000.00 BBVA 1.00 19-26 21/06A EUR 309,100.50 0.84 100,000.00 RED ELECT FINANCE 1.25 18-27 13/03A EUR 105,963.00 0.29 300,000.00 TELEFONICA EMISIONES 2.932 14-29 17/10A EUR 359,557.50 0.98 Sweden 495,831.00 1.35 200,000.00 SVENSKA HANDELSBANKEN 0.05 19-26 03/09A EUR 194,285.00 0.53 100,000.00 SVENSKA KULLAGERFABRI 0.875 19-29 15/11A EUR 100,006.00 0.27 200,000.00 VATTENFALL AB 0.5000 19-26 24/06A EUR 201,540.00 0.55 The Netherlands 1,354,883.00 3.68 200,000.00 EDP FINANCE 1.875 18-25 12/10A EUR 216,498.00 0.59 300,000.00 LEASEPLAN CORPO 1.3750 19-24 07/03A EUR 310,770.00 0.84
The accompanying notes form an integral part of these financial statements. 90Page Mirova Funds - Mirova Europe Sustainable Economy Fund Securities portfolio as at 31/12/19 Expressed in EUR Quantity/ Quotation % of net Denomination Market value Nominal currency assets 200,000.00 POSTNL N.V. 0.625 19-26 23/09A EUR 199,082.00 0.54 300,000.00 TENNET HOLDING BV 1.25 16-33 24/10A EUR 314,824.50 0.86 300,000.00 VESTEDA FINANCE 1.5000 19-27 24/05A EUR 313,708.50 0.85 United Kingdom 428,685.50 1.16 100,000.00 ASTRAZENECA PLC 1.25 16-28 12/05A EUR 106,705.00 0.29 200,000.00 CREDIT AGRICOLE SA 1.75 19-29 05/03A EUR 219,189.00 0.59 100,000.00 SSE PLC 0.875 17-25 06/09A EUR 102,791.50 0.28 United States of America 974,293.50 2.65 300,000.00 DIGITAL EURO FINCO 2.5 19-26 16/01A EUR 326,664.00 0.89 300,000.00 LEVI STRAUSS 3.375 17-27 15/03S EUR 321,396.00 0.87 300,000.00 SOUTHERN POWER CO 1.85 16-26 20/06A EUR 326,233.50 0.89 Venezuela 199,224.00 0.54 200,000.00 CORPORACION ANDINA 0.625 19-26 20/11A EUR 199,224.00 0.54 Subordinated debt 3,698,145.00 10.05 Denmark 303,403.50 0.82 300,000.00 ORSTED FL.R 19-XX 09/12A EUR 303,403.50 0.82 Finland 201,923.00 0.55 200,000.00 CITYCON OYJ FL.R 19-XX XX/XXA EUR 201,923.00 0.55 France 977,544.50 2.66 200,000.00 CREDIT MUTUEL ARKEA FL.R 17-29 25/10A EUR 205,577.00 0.56 300,000.00 ENGIE SA FL.R 19-XX 08/07A EUR 304,573.50 0.83 300,000.00 ORANGE FL.R 14-XX 01/10A EUR 366,120.00 0.99 100,000.00 RCI BANQUE SA FL.R 19-30 18/02A EUR 101,274.00 0.28 Germany 706,401.50 1.92 700,000.00 ENBW ENERGIE B-W FL.R 19-79 05/11A EUR 706,401.50 1.92 Italy 307,558.50 0.84 300,000.00 UNICREDIT SPA FL.R 19-25 03/07A EUR 307,558.50 0.84 Portugal 677,199.00 1.84 200,000.00 CAIXA GERAL DEPO.DY FL.R 18-28 28/06A EUR 229,085.00 0.62 400,000.00 ENERGIAS DE POR FL.R 19-79 30/04A EUR 448,114.00 1.22 The Netherlands 524,115.00 1.42 300,000.00 IBERDROLA INTL FL.R 17-XX 22/02A EUR 309,264.00 0.84 200,000.00 TENNET HOLDING BV FL.R 17-49 12/04A EUR 214,851.00 0.58
Other transferable securities 702,230.50 1.91 Bonds 702,230.50 1.91 France 405,401.50 1.10 100,000.00 BUREAU VERITAS 1.125 19-27 18/01A EUR 102,443.50 0.28 300,000.00 COVIVIO SA 1.125 15-21 31/01S EUR 302,958.00 0.82 Sweden 296,829.00 0.81 300,000.00 CASTELLUM AB 0.7500 19-26 04/09A EUR 296,829.00 0.81
Total securities portfolio 36,654,032.97 99.57
The accompanying notes form an integral part of these financial statements. 91Page Mirova Funds - Mirova Europe Sustainable Economy Fund Statement of operations and changes in net assets from 01/01/19 to 31/12/19 Expressed in EUR
Income 816,308.03 Net dividends 2Note 535,834.49 Net interest on bonds 2Note 280,344.96 Bank interest on cash account 128.58 Expenses 94,112.66 Management fees 4Note 18,569.14 Custodian & sub-custodian fees 2,347.24 Taxe d'abonnement 6Note 3,449.73 Administration fees 4Note 26,494.43 Performance fees 5Note 2,479.46 Bank interest on overdrafts 2,149.72 Transaction fees 2Note 31,996.94 Other expenses 6,626.00 Net income from investments 722,195.37 Net realised profit / loss on: - sales of investment securities 2Note 951,800.47 - forward foreign exchange contracts 2Note 79,293.46 - financial futures contracts 2Note -156,063.00 - foreign exchange 2Note 9,669.74 Net realised profit 1,606,896.04 Movement in net unrealised appreciation / depreciation on: - investments 2Note 4,433,962.04 - forward foreign exchange contracts 2Note 9,132.28 - financial futures contracts 2Note 2,880.00 Increase in net assets as a result of operations 6,052,870.36 Subscription capitalisation shares 687,493.48 Redemption capitalisation shares -21,192.36 Increase in net assets 6,719,171.48
Net assets at the beginning of the year 30,091,754.24
Net assets at the end of the year 36,810,925.72
The accompanying notes form an integral part of these financial statements. 92Page Mirova Funds Notes to the financial statements - Schedule of derivative instruments
93Page Mirova Funds FORWARD FOREIGN EXCHANGE CONTRACTS As at December 31, 2019, the following forward contracts were outstanding : The contracts that followed by * relate specifically to foreign exchange risk hedging of shares.
Mirova Funds - Mirova Global Sustainable Equity Fund Currency Quantity Currency Quantity Maturity Unrealised purchased purchased sale sale date (in EUR) Counterparty CHF 109,279.62 GBP 85,515.00 20/02/20 -161.38 * Credit Agricole CIB EUR 84,712.00 GBP 72,249.17 20/02/20 -395.11 * Credit Agricole CIB GBP 7,096.04 HKD 72,535.00 20/02/20 103.73 * Credit Agricole CIB EUR 717,566.00 USD 803,229.03 20/02/20 4,531.33 * Credit Agricole CIB USD 150,537.90 GBP 115,011.00 20/02/20 -1,852.60 * Credit Agricole CIB USD 49,342.00 CHF 48,217.00 20/02/20 -570.64 * Credit Agricole CIB EUR 36,487.00 CHF 39,807.32 20/02/20 -147.65 * Credit Agricole CIB EUR 31,845.10 CHF 34,743.00 20/02/20 -128.85 * Credit Agricole CIB CHF 7,694.24 GBP 6,021.00 20/02/20 -11.36 * Credit Agricole CIB EUR 421,580.00 CHF 467,384.67 20/02/20 -8,551.23 * Credit Agricole CIB GBP 550,342.78 DKK 4,825,802.00 20/02/20 2,324.81 * BNP Paribas CHF 1,547,482.49 GBP 1,208,889.00 20/02/20 33.29 * BNP Paribas EUR 1,146,036.08 HKD 9,972,485.00 20/02/20 10,837.63 * BNP Paribas EUR 441,199.90 CHF 480,930.00 20/02/20 -1,399.68 * BNP Paribas CHF 30,240,818.55 USD 30,961,405.00 20/02/20 345,468.21 * BNP Paribas CHF 6,173,844.56 DKK 42,309,003.00 20/02/20 18,264.21 * BNP Paribas EUR 5,778,540.16 DKK 43,161,056.00 20/02/20 611.23 * BNP Paribas GBP 43,600.53 CHF 55,816.00 20/02/20 -2.57 * BNP Paribas CHF 9,335,812.67 EUR 8,566,492.00 20/02/20 25,581.79 * BNP Paribas GBP 238,850.82 JPY 34,146,899.00 20/02/20 1,516.26 * BNP Paribas EUR 27,731,611.64 USD 30,960,112.00 20/02/20 247,070.16 * BNP Paribas CHF 95,417.69 HKD 761,851.00 20/02/20 1,090.35 * BNP Paribas USD 2,356,568.01 GBP 1,798,625.00 20/02/20 -26,961.87 * BNP Paribas EUR 1,491,409.37 GBP 1,270,608.00 20/02/20 -5,445.97 * BNP Paribas CHF 713,259.78 EUR 654,413.00 20/02/20 2,026.12 * BNP Paribas CHF 2,310,162.78 USD 2,365,209.00 20/02/20 26,391.25 * BNP Paribas CHF 2,731,056.53 JPY 305,113,827.00 20/02/20 12,696.97 * BNP Paribas USD 4,164,454.63 JPY 454,436,533.00 20/02/20 -27,750.92 * BNP Paribas GBP 103,523.33 HKD 1,057,353.00 20/02/20 1,597.83 * BNP Paribas EUR 2,504,703.10 JPY 305,101,091.00 20/02/20 4,052.32 * BNP Paribas GBP 846,032.81 EUR 993,043.00 20/02/20 3,671.20 * BNP Paribas USD 14,241,196.94 EUR 12,758,933.00 20/02/20 -116,679.33 * BNP Paribas CHF 465,594.09 DKK 3,190,597.00 20/02/20 1,374.93 * BNP Paribas CHF 117,946.68 GBP 92,181.00 20/02/20 -45.78 * BNP Paribas USD 735,514.33 CHF 718,152.00 20/02/20 -7,996.46 * BNP Paribas CHF 208,531.30 JPY 23,308,305.00 20/02/20 878.68 * BNP Paribas USD 9,261,139.28 DKK 61,972,436.00 20/02/20 -74,946.77 * BNP Paribas CHF 1,248,903.67 HKD 9,972,901.00 20/02/20 14,138.15 * BNP Paribas GBP 2,682,420.37 USD 3,514,229.00 20/02/20 40,457.18 * BNP Paribas CHF 908,579.69 EUR 836,437.00 20/02/20 -234.45 * Credit Agricole CIB CHF 67,069.42 EUR 61,744.00 20/02/20 -17.31 * Credit Agricole CIB USD 1,378,781.98 EUR 1,236,354.00 20/02/20 -12,095.41 * Credit Agricole CIB GBP 74,169.79 EUR 86,728.00 20/02/20 663.62 * Credit Agricole CIB EUR 38,956.90 CHF 42,389.00 20/02/20 -54.16 * Credit Agricole CIB USD 846,950.35 DKK 5,689,389.00 20/02/20 -9,559.21 * Credit Agricole CIB CHF 38,391.27 DKK 263,606.00 20/02/20 43.01 * Credit Agricole CIB USD 65,033.98 CHF 63,639.00 20/02/20 -827.81 * Credit Agricole CIB HKD 54,720.00 GBP 5,371.02 20/02/20 -96.11 * Credit Agricole CIB CHF 496,618.42 DKK 3,410,676.00 20/02/20 456.69 * Credit Agricole CIB GBP 4,883.85 CHF 6,244.00 20/02/20 8.34 * Credit Agricole CIB EUR 82,975.92 GBP 70,654.00 20/02/20 -253.34 * Credit Agricole CIB EUR 312,200.10 DKK 2,331,885.00 20/02/20 34.77 * Credit Agricole CIB HKD 39,315.00 CHF 4,940.31 20/02/20 -67.21 * Credit Agricole CIB HKD 700,858.00 CHF 87,296.58 20/02/20 -520.62 * BNP Paribas HKD 564,856.00 EUR 64,645.78 20/02/20 -305.61 * BNP Paribas USD 809,514.00 EUR 721,882.00 20/02/20 -2,983.68 * BNP Paribas CHF 3,098.00 GBP 2,431.13 20/02/20 -12.69 * BNP Paribas GBP 50,038.70 EUR 58,482.00 20/02/20 476.11 * BNP Paribas 466,324.39
94Page Mirova Funds FORWARD FOREIGN EXCHANGE CONTRACTS
Mirova Funds - Mirova Europe Sustainable Equity Fund Currency Quantity Currency Quantity Maturity Unrealised purchased purchased sale sale date (in EUR) Counterparty GBP 25,000,000.00 EUR 29,254,239.23 16/01/20 233,712.52 HSBC Bank 233,712.52
Mirova Funds - Mirova Europe Environmental Equity Fund Currency Quantity Currency Quantity Maturity Unrealised purchased purchased sale sale date (in EUR) Counterparty EUR 89,000,764.15 USD 99,000,000.00 23/01/20 942,246.23 Natixis EUR 4,500,412.78 USD 5,000,000.00 23/01/20 52,888.21 Société Générale GBP 58,500,000.00 EUR 68,898,685.72 22/01/20 88,307.11 STATE STREET BANK GMBH 1,083,441.55
Mirova Funds - Mirova Global Green Bond Fund Currency Quantity Currency Quantity Maturity Unrealised purchased purchased sale sale date (in EUR) Counterparty EUR 1,960,962.12 SEK 20,500,000.00 31/01/20 10,513.16 Natixis EUR 35,876,627.45 USD 40,000,000.00 31/01/20 320,967.59 Natixis EUR 4,231,177.91 CAD 6,200,000.00 31/01/20 -20,035.91 Natixis EUR 521,399.45 MXN 11,100,000.00 31/01/20 1,045.41 Natixis CHF 24,893.00 EUR 22,813.69 20/01/20 90.97 * Société Générale USD 2,290,908.00 EUR 2,056,285.79 21/01/20 -18,599.26 * Société Générale USD 8,249.00 EUR 7,403.65 21/01/20 -66.44 * Société Générale CHF 7,063,808.00 EUR 6,478,061.66 21/01/20 21,482.27 * Natixis EUR 2,238,529.66 USD 2,500,000.00 31/01/20 16,311.35 Société Générale CHF 47,405.00 EUR 43,600.10 20/01/20 17.58 * Société Générale EUR 17,888.20 CHF 19,478.00 20/01/20 -33.61 * Société Générale EUR 4,922.29 USD 5,469.00 21/01/20 57.55 * J.P.MORGAN AG 331,750.66
Mirova Funds - Mirova Euro Green and Sustainable Bond Fund Currency Quantity Currency Quantity Maturity Unrealised purchased purchased sale sale date (in EUR) Counterparty EUR 5,830,099.94 USD 6,500,000.00 31/01/20 52,311.76 BNP Paribas CHF 2,124,674.00 EUR 1,948,639.38 21/01/20 6,305.64 * HSBC Bank 58,617.40
Mirova Funds - Mirova Europe Sustainable Economy Fund Currency Quantity Currency Quantity Maturity Unrealised purchased purchased sale sale date (in EUR) Counterparty GBP 683,200.00 EUR 800,000.00 31/01/20 9,132.28 Société Générale, Paris 9,132.28 As at December 31, 2019, there is no cash received from the counterparties for all the forwards.
95Page Mirova Funds FINANCIAL FUTURES CONTRACTS As at December 31, 2019, the following futures contracts were outstanding :
Mirova Funds - Mirova Global Green Bond Fund Commitment Quantity (in EUR) Unrealised (purchase/(sale)) Denomination Currency (in absolute value) (in EUR) Broker Futures on bonds 12 CAN 10YR BOND (MSE) 03/20 CAD 848,474.86 -25,474.03 CACEIS Bank, Paris -9 EURO BOBL FUTURE 03/20 EUR 920,736.00 6,660.00 CACEIS Bank, Paris -145 EURO BUND FUTURE 03/20 EUR 15,133,940.00 351,100.00 CACEIS Bank, Paris 40 EURO BUXL FUTURE 03/20 EUR 6,134,440.00 -310,400.00 CACEIS Bank, Paris -61 EURO SCHATZ FUTURE 03/20 EUR 6,173,566.00 5,185.00 CACEIS Bank, Paris 14 LONG GILT FUTURE-LIF 03/20 GBP 2,325,997.52 -12,887.24 CACEIS Bank, Paris 45 US TREASURY BOND 03/20 USD 5,317,754.75 -132,795.10 CACEIS Bank, Paris 146 US 10 YEARS NOTE 03/20 USD 13,149,958.31 -135,328.51 CACEIS Bank, Paris 9 US 2 YEARS NOTE- CBT 03/20 USD 1,635,321.55 -2,004.45 CACEIS Bank, Paris 48 US 5 YEARS NOTE-CBT 03/20 USD 4,333,964.39 -22,383.07 CACEIS Bank, Paris -278,327.40 As of December 31, 2019, the cash held at brokers is composed of margin deposits for futures and amount to EUR 932,700.14.
Mirova Funds - Mirova Euro Green and Sustainable Bond Fund Commitment Quantity (in EUR) Unrealised (purchase/(sale)) Denomination Currency (in absolute value) (in EUR) Broker Futures on bonds -58 EURO BOBL FUTURE 03/20 EUR 5,933,632.00 42,920.00 CACEIS Bank, Paris -409 EURO BUND FUTURE 03/20 EUR 42,688,148.00 921,540.00 CACEIS Bank, Paris 92 EURO BUXL FUTURE 03/20 EUR 14,109,212.00 -713,920.00 CACEIS Bank, Paris 250,540.00 As of December 31, 2019, the cash held at brokers is composed of margin deposits for futures and amount to EUR 373,669.80.
Mirova Funds - Mirova Euro Green and Sustainable Corporate Bond Fund Commitment Quantity (in EUR) Unrealised (purchase/(sale)) Denomination Currency (in absolute value) (in EUR) Broker Futures on bonds 110 EURO BOBL FUTURE 03/20 EUR 11,253,440.00 -82,500.00 CACEIS Bank, Paris -190 EURO BUND FUTURE 03/20 EUR 19,830,680.00 486,400.00 CACEIS Bank, Paris 15 EURO BUXL FUTURE 03/20 EUR 2,300,415.00 -116,400.00 CACEIS Bank, Paris -76 EURO SCHATZ FUTURE 03/20 EUR 7,691,656.00 6,460.00 CACEIS Bank, Paris 293,960.00 As of December 31, 2019, the cash held at brokers is composed of margin deposits for futures and amount to EUR 409.80.
Mirova Funds - Mirova Europe Sustainable Economy Fund Commitment Quantity (in EUR) Unrealised (purchase/(sale)) Denomination Currency (in absolute value) (in EUR) Broker Futures on bonds -4 EURO BUND FUTURE 03/20 EUR 417,488.00 10,240.00 CACEIS Bank, Paris 1 EURO BUXL FUTURE 03/20 EUR 153,361.00 -7,760.00 CACEIS Bank, Paris 2,480.00 As of December 31, 2019, the cash held at brokers is composed of margin deposits for futures and amount to EUR 2,629.60.
96Page Mirova Funds Other notes to the financial statements
97Page Mirova Funds
Other notes to the Financial Statements
NOTE 1 - ORGANISATION
Mirova Funds (the “SICAV”) is a Luxembourg Société d’Investissement à Capital Variable composed of several separate sub-funds (each, a “Sub-Fund”).
The SICAV’s objective is to provide investors access to a diversified management expertise through a range of several separate sub-funds, each having its own investment objective and policy.
The SICAV was incorporated on August 26, 2009 under the name of “Impact”. This name has been changed into “Impact Funds” by an extraordinary general meeting of the SICAV dated September 9, 2009 and further changed into “Mirova Funds” by an extraordinary general meeting of the SICAV dated April 24, 2013.
The SICAV is recorded in the Luxembourg Registre de Commerce under the number B 148004.
The SICAV qualifies as a UCITS under Part I of the Luxembourg law of December 17, 2010, as amended, on undertakings for collective investments.
At the date of the report, the following sub-funds are offered to the investors:
• Mirova Global Sustainable Equity Fund • Mirova Europe Sustainable Equity Fund • Mirova Euro Sustainable Equity Fund • Mirova Europe Environmental Equity Fund • Mirova Women Leaders Equity Fund (launched on March 29, 2019) • Mirova Global Carbon Neutral Equity Fund • Mirova Europe Carbon Neutral Equity Fund (launched on May 17, 2019) • Mirova Global Green Bond Fund • Mirova Euro Green and Sustainable Bond Fund • Mirova Euro Green and Sustainable Corporate Bond Fund • Mirova Europe Sustainable Economy Fund • Mirova US Carbon Neutral Equity Fund (launched on December 30, 2019)
The shares issued at the date of the report are:
• Class I Shares, Class SI Shares and Class M Shares (available only for Institutional Investors (the “Institutional Investors”)).
• Class R Shares and Class RE Shares (available for retail investors).
• Class N Shares (available for individuals in certain limited circumstances when investing through Intermediaries).
• Class Q Shares (only investors that meet certain qualifications may purchase Q Shares. The prospectus determine whether you satisfy those qualifications).
• Class F NPF, Class I NPF, Class N NPF, Class Q NPF, Class R NPF, Class RE NPF and Class SI NPF (Individuals may invest only in class R, RE, F and N Shares, regardless of whether they are investing directly or through a financial advisor).
• Class I Shares, Class SI Shares, Class R Shares, Class RE Shares, Class N Shares and Class Q Shares are available as Accumulation Shares and/or Distribution Shares. Class M is available as Distribution Shares (only investors that meet certain qualifications may purchase class I, SI and M Shares. The prospectus determine whether you satisfy those qualifications).
• Class H-I Shares, Class H-N, Class H-R Shares, Class H-RE and Class H-SI NPF Shares refer to the hedge share classes issued.
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NOTE 1 - ORGANISATION (continued)
PRESENTATION OF THE FINANCIAL STATEMENTS
The financial reports of the SICAV are established in accordance with the Luxembourg legal and regulatory requirements concerning Undertakings for Collective Investment.
CROSS SUB-FUNDS INVESTMENTS
As at December 31, 2019, no sub-funds hold cross-investments.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
COMBINED FINANCIAL STATEMENT
The various positions of the combined financial statements of the SICAV are equal to the sum of the various corresponding positions in the financial statements of each Sub-Fund and are expressed in euros (EUR). Bank accounts, other net assets/(liabilities), the value of the portfolio securities, the income and fees that are expressed in a currency other than EUR were converted to EUR at the exchange rates prevailing on December 31, 2019.
CURRENCY TRANSLATION
Transactions of a sub-fund expressed in currencies other than the sub-fund's reporting currency are recorded on the basis of the exchange rates prevailing on the date they occur.
At the time of closing the books, resulting assets and liabilities are translated into the sub-fund's reporting currency on the basis of the exchange rates prevailing on that date.
Realised profit/(loss) resulting from foreign exchange translation is included in the statement of operations and changes in net assets under “Net realised profit/(loss) on foreign exchange”.
As at December 31, 2019, the following exchange rate was used:
1 EUR = 1.087 CHF 1 EUR = 0.84735 GBP 1 EUR = 1.1225 USD
ABBREVIATIONS IN SECURITIES PORTFOLIO
FL.R : Floating Rate Notes Q : Quarter XX : Perpetual Bonds A : Annual CV : Convertible ZCP : Zero Coupon Bond
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (continued)
VALUATION OF THE INVESTMENTS IN SECURITIES
The value of each sub-fund’s assets shall be determined as follows:
• Securities and money market instruments traded on exchanges and Regulated Markets are valued at the last closing price unless the SICAV believes that an occurrence after the publication of the last market price and before any sub-fund next calculates its net asset value will materially affect the security’s value. In that case, the security may be fair valued at the time the Administrative Agent determines its net asset value by or pursuant to procedures approved by the SICAV.
• Securities and money market instruments not traded on a Regulated Market (other than short-term money market instruments) are based upon valuations provided by pricing vendors, which valuations are determined based on normal, institutional-size trading of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders.
• Short-term money market instruments (remaining maturity of less than 90 calendar days or less) are valued with the principle of amortized cost (which approximates market value under normal conditions).
• Units or shares of open-ended funds are valued at the last published net asset value.
• All other assets - fair market value as determined pursuant to procedures approved by the Board of Directors of the SICAV.
• The SICAV also may value securities at fair value or estimate their value pursuant to procedures approved by the SICAV in other circumstances such as when extraordinary events occur after the publication of the last market price but prior to the time the Sub-Funds’ net asset value is calculated.
• In the event that the latest available closing price does not, in the opinion of the Board of Directors, reflect the fair market value of the relevant securities, the value of such securities is defined by the Board of Directors based on the reasonably foreseeable sale proceeds determined prudently and in good faith.
• Securities not listed or traded on a stock exchange or not dealt in on another regulated market are valued on the basis of the probable sale proceeds determined prudently and in good faith by the board of Directors of the SICAV.
VALUATION OF FORWARD FOREIGN EXCHANGE CONTRACTS
Forward foreign exchange contracts remaining open at the closing date are valued at the closing date by reference to the forward foreign exchange rate applicable to the outstanding life of the contract. The unrealised appreciation or depreciation on forward foreign exchange contracts is disclosed in the statement of net assets. For the details of outstanding forward foreign exchange contracts, please refer to the section “Schedule of derivative instruments”.
VALUATION OF FINANCIAL FUTURES CONTRACTS
Financial futures contracts remaining open at the closing date are valued at their last known price on the date of valuation. The unrealised appreciation or depreciation on financial futures contracts is disclosed in the statement of net assets. For the details of outstanding financial futures contracts, please refer to the section “Schedule of derivative instruments”.
TRANSACTION FEES
The transaction fees, i.e. fees charged by the brokers and the custodian for securities and derivatives transactions are recorded separately in the statement of operations and changes in net assets in the account “Transaction fees”.
REALISED PROFIT AND LOSS ON SALES OF INVESTMENT SECURITIES
The cost of securities sold is calculated on the basis of the average cost. Exchange profit and losses resulting from sale of investments are presented in the statement of operations and changes in net assets in the account “Net realised profit / loss on sales of investment securities”.
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (continued)
REALISED PROFIT AND LOSS ON FORWARD FOREIGN EXCHANGE CONTRACTS
Realised profit/(loss) and change in unrealised appreciation/depreciation resulting there from are included in the statement of operations and changes in net assets respectively under “Net realised profit/(loss) on forward foreign exchange contracts” and “Movement in net unrealised appreciation/depreciation on forward foreign exchange contracts”.
REALISED PROFIT AND LOSS ON FINANCIAL FUTURES CONTRACTS
Realised profit/(loss) and change in unrealised appreciation/depreciation resulting there from are included in the statement of operations and changes in net assets respectively under “Net realised profit/(loss) on financial futures contracts” and “Movement in net unrealised appreciation/depreciation on financial futures contracts”.
DIVIDEND AND INTEREST INCOME
Dividend income is accounted for on an ex-dividend basis, net of withholding tax. Interest income is recognised on an accrual basis.
NOTE 3 - DETERMINATION OF THE NET ASSET VALUE OF SHARES
The net asset value of each Share of any one class on any day that any sub-fund calculates its net asset value is determined by dividing the value of the portion of assets attributable to that class less the portion of liabilities attributable to that class, by the total number of Shares of that class outstanding on such day. The net asset value of each Share shall be determined in the currency of quotation of the relevant class of shares.
For any class in which the only difference from the class denominated in the Sub-Fund’s Reference Currency is the currency of quotation, the net asset value per Share of that class shall be the net asset value per Share of the class denominated in the reference currency multiplied by the exchange rate between the Reference Currency and the currency of quotation at the WMR rates (4.00 pm in London).
If such quotations are not available, the rate of exchange will be determined in good faith by or under procedures established by the SICAV.
The net asset value of each class Share may be rounded to the nearest 1/100 of the currency of the relevant class in accordance with the SICAV’s guidelines.
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NOTE 4 - MANAGEMENT AND ADMINISTRATION FEES
The amount to be incurred annually by each sub-fund including the remuneration to the Management Company and the Administration fee is:
Management Administration All-In fee Fee Fee Mirova Global Sustainable Equity Fund F/A NPF Shares 1.30% 0.20% 1.50% I/A Shares, 0.70% 0.10% 0.80% I/A NPF Shares 0.90% 0.10% 1.00% M/D Shares 0.70% 0.10% 0.80% N/A Shares 0.70% 0.20% 0.90% N/A NPF Shares and N/D NPF Shares 0.90% 0.20% 1.10% R/A Shares 1.60% 0.20% 1.80% R/A NPF Shares 1.80% 0.20% 2.00% RE/A Shares 2.20% 0.20% 2.40% RE/A NPF Shares 2.35% 0.20% 2.55% SI/A NPF Shares and SI/D NPF Shares 0.70% 0.10% 0.80% Mirova Europe Sustainable Equity Fund I/A Shares and I/D Shares 0.90% 0.10% 1.00% M/D Shares 0.70% 0.10% 0.80% R/A Shares and R/D Shares 1.60% 0.20% 1.80% RE/D Shares 2.20% 0.20% 2.40% Mirova Euro Sustainable Equity Fund I/A Shares and I/D Shares 0.90% 0.10% 1.00% I/A NPF Shares 1.00% 0.10% 1.10% M/D Shares 0.70% 0.10% 0.80% N/A Shares 0.90% 0.20% 1.10% R/A Shares and R/D Shares 1.60% 0.20% 1.80% R/A NPF Shares 1.80% 0.20% 2.00% RE/A Shares and RE/D Shares 2.20% 0.20% 2.40% SI/A NPF Shares and SI/D NPF Shares 0.80% 0.10% 0.90% Mirova Europe Environmental Equity Fund I/A Shares and I/D Shares 0.90% 0.10% 1.00% M/D Shares 0.70% 0.10% 0.80% N/A Shares 0.90% 0.20% 1.10% R/A Shares and R/D Shares 1.60% 0.20% 1.80% RE/A Shares and RE/D Shares 2.20% 0.20% 2.40% SI/A NPF Shares 0.80% 0.10% 0.90% Mirova Women Leaders Equity Fund (launched on March 29, 2019) I/A Shares 0.70% 0.10% 0.80% Q/A NPF Shares 0.55% 0.10% 0.65% R/A Shares 1.60% 0.20% 1.80% Mirova Global Carbon Neutral Equity Fund I/A Shares 0.60% 0.10% 0.70% Mirova Europe Carbon Neutral Equity Fund SI/A Shares 0.45% 0.10% 0.55%
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NOTE 4 - MANAGEMENT AND ADMINISTRATION FEES (continued)
Management Administration All-In fee Fee Fee Mirova Global Green Bond Fund H I/A Shares 0.50% 0.10% 0.60% H N/A Shares 0.50% 0.20% 0.70% I/A Shares and I/D Shares 0.50% 0.10% 0.60% N/A Shares and N/D Shares 0.50% 0.20% 0.70% R/A Shares and R/D Shares 0.80% 0.20% 1.00% SI/A Shares 0.30% 0.10% 0.40% Mirova Euro Green and Sustainable Bond Fund H N/A Shares 0.50% 0.20% 0.70% I/A Shares and I/D Shares 0.50% 0.10% 0.60% M/D Shares 0.20% 0.10% 0.30% N/A Shares and N/D Shares 0.50% 0.20% 0.70% R/A Shares and R/D Shares 0.80% 0.20% 1.00% RE/A Shares and RE/D Shares 1.40% 0.20% 1.60% SI/A Shares 0.30% 0.10% 0.40% Mirova Euro Green and Sustainable Corporate Bond Fund I/A Shares and I/D Shares 0.50% 0.10% 0.60% N/A Shares and N/D Shares 0.50% 0.20% 0.70% R/A Shares and R/D Shares 0.80% 0.20% 1.00% RE/A Shares and RE/D Shares 1.40% 0.20% 1.60% Mirova Europe Sustainable Economy Fund I/A Shares 0.60% 0.10% 0.70% Q/A Shares 0.05% 0.10% 0.15% R/A Shares 1.20% 0.20% 1.40% Mirova US Carbon Neutral Equity Fund (launched on December 30, 2019) R/A Shares 1.30% 0.20% 1.50% SI/A Shares 0.45% 0.10% 0.55%
“Management fees” include the aggregate amount of Management Company fees, Investment Managers fees, Distributors fees, registration fees and expenses specific to a Sub-Fund or share class.
“Administration fees” include the total amount of the fees due the Custodian, the Administrative Agent, Paying Agent, Domiciliary and Corporate Agent and Registrar and Transfer Agent, the costs relating to the translation and printing of key investor information documents, the Prospectus and reports to Shareholders, Auditors, outside counsels and other professionals, administrative expenses, such as insurance coverage.
The “All-in-Fee” is defined as the aggregate of Management Fees and Administration Fees paid annually by each Sub-Fund. The “All-in-Fee” shall not exceed such percentage of each Sub-Fund’s average daily net asset value.
If the yearly actual expenses paid by any Sub-Fund exceed the applicable “All-in-Fee”, the Management Company will support the difference and the corresponding income will be recorded under “Management Company fees” caption.
If the yearly actual expenses paid by each Sub-Fund are lower than the applicable “All-in-Fee”, the Management Company will keep the difference and the corresponding charge will be recorded under “Management Company Fees” caption at December 31, 2019.
Given the fees mechanism descrived above, as at December 31, 2019, yearly actual expenses paid were equivalent to the applicable “All-in-fee”.
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NOTE 5 - PERFORMANCE FEES
The Management Company is entitled to receive from the below-stated sub-funds a performance fee calculated and accrued at each valuation day in respect of each class of share and payable annually in arrears.
The performance fee is based on a comparison of the Valued Asset and the Reference Asset and applies to all existing share classes of the concerned sub-funds, except for the M/D (EUR) share class and all the NFP share classes.
The Valued Asset is defined as the portion of the net assets corresponding to a particular class of share, valued in accordance with the rules applicable to the assets and taking into account the All-in-Fee corresponding to the said share class.
The Reference Asset corresponds to the portion of the net assets related to a particular share class, adjusted to take into account the subscription/redemption amounts applicable to the said share class at each valuation, and valued in accordance with the performance of the Reference Rate of the said share class.
Sub-funds Observation period Reference rate Mirova Global From 01/01/19 to 20% of the performance above the reference index MSCI Sustainable Equity Fund 31/12/19 World Net Dividends Reinvested in EUR Mirova Europe From 01/01/19 to 20% of the performance above the reference index MSCI Sustainable Equity Fund 31/12/19 Europe Dividend Net Reinvested in EUR 20% of the performance above the reference index MSCI Europe Dividend Net Reinvested in GBP for class I/A (GBP) Mirova Euro From 01/01/19 to 20% of the performance above the reference index MSCI Sustainable Equity Fund 31/12/19 EMU Net Dividends Reinvested in EUR Mirova Europe From 01/01/19 to The Sub-Fund is not managed with reference to a specific Environmental Equity Fund 31/12/19 index, but its performance of 20% can be compared to the MSCI Europe Dividend Net Reinvested in EUR, which is representative of European equity markets. Mirova Women Leaders Equity From 29/03/19 to 20% of the performance above the reference index MSCI Fund (launched on 29/03/2019) 31/12/19 Europe Dividend Net Reinvested in EUR Mirova Europe From 01/01/19 to 20% of the performance above the reference index 50% Sustainable Economy Fund 31/12/19 MSCI Europe Dividend Net Reinvested in EUR and 50% Bloomberg Barclays Capital Euro Aggregate Corporate Index. The calculation method used is the one with the Annual Reset of Reference Asset with the High-Water Mark method.
If, over the observation period, the Valued Asset of the Sub-Fund is higher than the Reference Asset defined above, the actual performance fee will amount up to the applicable percentage of performance fee, applied on the difference between these two assets. If, over the observation period, the Valued Asset of Sub-Fund is lower than the Reference Asset, the performance fees will be zero.
In case of redemption, the due portion of performance fee corresponding to the number of shares which have been redeemed is definitely payable to the Management Company at the end of the accounting year.
The High-Water Mark is defined by the Reference Asset until it is outperformed on a maximum successive period of three years, maintaining an annual payment and implementing a High-Water Mark reset on the last payment or after three successive observation periods without performance fee payments. In case of outperformance, a performance fee will be paid and the High-Water Mark will be reset. In case of underperformance, no performance fee will be paid and the observation period continues.
At the next Observation Period, in case of outperformance, no performance fee will be paid before the Sub-Fund exceeds previous underperformance and therefore the outperformance reaches the High-Water Mark. This means that any underperformance must be recovered by a subsequent outperformance before a performance fee can be paid, provided that the outperformance reaches the High-Water Mark.
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NOTE 6 - TAXE D’ABONNEMENT
The SICAV is registered in Luxembourg and as a result, is exempt from tax except for the “taxe d'abonnement”. Under current legislation, Category of Shares reserved to institutional investors (class I Shares, class M Shares, class Q Shares and class SI Shares) are subject to a tax rate of 0.01%, those reserved to retail investors (class F Shares, class R Shares, class RE Shares and N Shares) are subject to a tax rate of 0.05%. The tax is calculated and payable quarterly on the net assets of the SICAV at the end of the relevant quarter.
NOTE 7 - SWING PRICING
Subscriptions and redemptions can potentially have a dilutive effect on the Sub-Funds’ Net Assets Values per share and be detrimental to long term investors as a result of the costs, bid-offer spreads or other losses that are incurred by the SICAV in relation to the trades undertaken by the Management Company. In order to protect the interest of existing shareholders, the Management Company may decide to introduce a Swing Pricing mechanism for any Sub-Fund.
If, for the Sub-Funds listed below, net subscriptions or net redemptions on any calculation day exceeds a certain threshold (“the Swing Threshold”), the net asset value per share will be adjusted respectively upwards or downwards by a Swing Factor. Swing Thresholds and Swing Factors are determined and reviewed on a periodic basis by the Management Company.
The Swing Factor will be set by the Management Company to reflect estimated dealing and other costs, and may not exceed 2% of the net asset value.
The volatility of the Sub Funds' net asset values may not reflect the true portfolio performance, and therefore might deviate from the Sub-Funds' benchmark as a consequence of the application of the Swing Pricing mechanism. Performance fees, if any, are calculated on the basis of the net asset value before the application of Swing Pricing adjustments.
The Swing Pricing Mechanism may be applied to the following Sub-Funds:
Mirova Global Green Bond Fund; Mirova Euro Green and Sustainable Bond Fund; Mirova Euro Green and Sustainable Corporate Bond Fund.
As at 31 December 2019, no Swing Pricing was applied to the Net Assets Values of the Sub-Funds of the SICAV.
NOTE 8 - SUBSEQUENT EVENTS
1) The Board has decided with effect from 19/02/20 to replace the denomination of the following sub-funds as follows:
Mirova Global Carbon Neutral Equity Fund by Mirova Global Climate Ambition Equity Fund; Mirova Europe Carbon Neutral Equity Fund by Mirova Europe Climate Ambition Equity Fund Mirova US Carbon neutral Equity Fund by Mirova US Climate Ambition Equity Fund
2) For these three sub-funds, the Board has decided to decrease the management fees by 0.10% of the following share classes: Share classes M*, SI*, I, N* and R*
* The share-classes are not registered in the United Kingdom
As a consequence, all-in fees are decreased by 0.10% for the relevant share classes.
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Other notes to the Financial Statements (continued)
NOTE 9 - DIVIDENDS (unaudited)
During the financial year under review, the dividends paid are as follow:
Dividend Payment Sub-fund Shares Ccy Ex-date per share date Mirova Global Sustainable Equity Fund M/D (EUR) Shares 387.699 EUR 18/01/19 23/01/19 N/D NPF (USD) Shares 0.1733 EUR 18/01/19 23/01/19 SI/D NPF (EUR) Shares 0.4696 EUR 18/01/19 23/01/19 H-SI/D NPF (CHF) Shares 0.4022 EUR 18/01/19 23/01/19 Mirova Europe Sustainable Equity Fund I/D (EUR) Shares 5.06 EUR 18/01/19 23/01/19 M/D (EUR) Shares 1,048.1303 EUR 18/01/19 23/01/19 R/D (EUR) Shares 1.9199 EUR 18/01/19 23/01/19 Mirova Euro Sustainable Equity Fund I/D (EUR) Shares 618.772 EUR 18/01/19 23/01/19 M/D (EUR) Shares 254.1932 EUR 18/01/19 23/01/19 R/D (EUR) Shares 0.3728 EUR 18/01/19 23/01/19 Mirova Europe Environmental Equity Fund M/D (EUR) Shares 763.0649 EUR 18/01/19 23/01/19 Mirova Global Green Bond Fund I/D (EUR) Shares 1.2175 EUR 18/01/19 23/01/19 I/D (EUR) Shares 1.237 EUR 18/04/19 24/04/19 I/D (EUR) Shares 1.1262 EUR 19/07/19 24/07/19 I/D (EUR) Shares 1.006 EUR 18/10/19 23/10/19 N/D (EUR) Shares 0.51 EUR 18/01/19 23/01/19 N/D (EUR) Shares 0.3658 EUR 18/04/19 24/04/19 N/D (EUR) Shares 0.2582 EUR 19/07/19 24/07/19 N/D (EUR) Shares 0.2302 EUR 18/10/19 23/10/19 R/D (EUR) Shares 0.2144 EUR 18/01/19 23/01/19 R/D (EUR) Shares 0.2235 EUR 18/04/19 24/04/19 R/D (EUR) Shares 0.2053 EUR 19/07/19 24/07/19 R/D (EUR) Shares 0.1462 EUR 18/10/19 23/10/19 Mirova Euro Green and Sustainable Bond Fund I/D (EUR) Shares 0.3117 EUR 18/01/19 23/01/19 I/D (EUR) Shares 0.2975 EUR 18/04/19 24/04/19 I/D (EUR) Shares 0.2657 EUR 19/07/19 24/07/19 I/D (EUR) Shares 0.2322 EUR 18/10/19 23/10/19 M/D (EUR) Shares 211.965 EUR 18/01/19 23/01/19 M/D (EUR) Shares 202.0765 EUR 18/04/19 24/04/19 M/D (EUR) Shares 186.3927 EUR 19/07/19 24/07/19 M/D (EUR) Shares 171.9908 EUR 18/10/19 23/10/19 N/D (EUR) Shares 0.3044 EUR 18/01/19 23/01/19 N/D (EUR) Shares 0.2903 EUR 18/04/19 24/04/19 N/D (EUR) Shares 0.2518 EUR 19/07/19 24/07/19 N/D (EUR) Shares 0.2131 EUR 18/10/19 23/10/19 R/D (EUR) Shares 0.0513 EUR 18/01/19 23/01/19 R/D (EUR) Shares 0.2454 EUR 18/04/19 24/04/19 R/D (EUR) Shares 0.3142 EUR 19/07/19 24/07/19 Mirova Euro Green and Sustainable Corporate Bond 0.1832 EUR 18/10/19 23/10/19 Fund I/D (EUR) Shares N/D (EUR) Shares 0.2081 EUR 18/01/19 23/01/19 N/D (EUR) Shares 0.1989 EUR 18/04/19 24/04/19 N/D (EUR) Shares 0.21 EUR 19/07/19 24/07/19 N/D (EUR) Shares 0.1644 EUR 18/10/19 23/10/19 R/D (EUR) Shares 0.1367 EUR 18/01/19 23/01/19 R/D (EUR) Shares 0.1329 EUR 18/04/19 24/04/19 R/D (EUR) Shares 0.1326 EUR 19/07/19 24/07/19 R/D (EUR) Shares 0.0820 EUR 18/10/19 23/10/19
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Additional information (unaudited information)
Global exposure calculation method
The following sub-funds use the commitment approach in order to monitor and measure the global market risk exposure:
• Mirova Global Sustainable Equity Fund • Mirova Europe Sustainable Equity Fund • Mirova Euro Sustainable Equity Fund • Mirova Europe Environmental Equity Fund • Mirova Women Leaders Equity Fund (launched on March 29, 2019) • Mirova Global Carbon Neutral Equity Fund • Mirova Europe Carbon Neutral Equity Fund (launched on May 17, 2019) • Mirova Global Green Bond Fund • Mirova Euro Green and Sustainable Bond Fund • Mirova Euro Green and Sustainable Corporate Bond Fund • Mirova Europe Sustainable Economy Fund • Mirova US Carbon Neutral Equity Fund (launched on December 30, 2019)
Securities Financing Transactions Regulation (“SFTR”)
As at December 31, 2019, the SICAV does not use any instruments falling into the scope of SFTR.
Changes in composition of securities portfolio
The details of the changes in portfolio composition for the year ended December 31, 2019 are at the disposal of the shareholders at the registered office of the SICAV and are available upon request free of charge.
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Additional information (unaudited information) (continued)
Remuneration Policy
MIROVA AND OSTRUM ASSET MANAGEMENT U.S., LLC
Preamble
The Mirova remuneration policy is established in accordance with the AIFM Directive 2011/61/EU, UCITS Directive 5 2014/91/EU, AMF Position 2013-11 “Remuneration Policy Applicable to Alternative Investment Fund Managers”, and the reference texts of the AMF and of the French Monetary and Financial Code.
1. General principles
The remuneration policy is based on skills assessment and on quantitative and qualitative annual and multi-year performance criteria. It incorporates the alignment of the interests of investors, employees and Mirova into its fundamental principles. It applies to all Mirova staff.
The remuneration policy differentiates between fixed remuneration, determined on the basis of market standards, and variable remuneration linked to the evaluation of defined individual or collective performance criteria. The remuneration policy is defined and documented by the Human Resources department and members of the Mirova executive committee. It is approved by Natixis Investment Managers, reviewed annually and submitted for compliance approval to the HICC - Head of Internal Control and Compliance at Mirova. Its general principles are covered in an annual information report to members of the Works Council, the Board of Directors and all staff. Natixis Investment Managers monitors the application of this policy.
2. Components of remuneration
The remuneration policy endeavours to maintain a balance between the percentages of fixed and variable remuneration, with the Human Resources department being the guarantor. Revaluations of fixed salaries and the allocation of variable remuneration are analysed once a year as part of the promotion process.
a. Fixed remuneration
Fixed remuneration rewards the skills and expertise expected of an employee in the performance of their duties.
b. Variable remuneration
Variable remuneration rewards annual collective or individual performance.
Variable remuneration is governed by an overall budget set annually by the general management of Mirova and approved by the general management of Natixis and Natixis Investment Managers. This overall amount of variable remuneration is a reallocation percentage applied to the earnings before tax (EBT) of Mirova and the business activities it manages. In the event that losses or a significant fall in Mirova’s income level are recorded, the amount allocated to individual remuneration and any outstanding payments may be reviewed and reduced.
To date, collective variable remuneration consists of optional and mandatory profit-sharing, the company savings plan (PES) and the collective retirement savings plan (PERCO), reserved capital increases pursuant to the Mauve scheme, or any other future contractual scheme allocated on a non-discretionary basis to allow all employees to benefit from the results of Mirova or Natixis. They have no incentive effect on the management of Mirova’s risks and/or the products managed and do not fall within the scope of application of the AIFM or UCITS 5 directives.
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Additional information (unaudited information) (continued)
Remuneration Policy (continued)
Individual variable remuneration is allocated on a discretionary basis with respect to the assessment of individual performance reflected in the achievement of predetermined quantitative and/or qualitative objectives. It may include an element of non-material benefit in kind, linked to the allocation of a vehicle. Unregulated staff are paid entirely in the form of cash and remuneration is allocated on a selective basis, which varies from one year to the next, based on the evaluation of performance criteria. The variable remuneration awarded to employees is affected by any non- compliant risk-taking or failure to comply with internal procedures during the year under review. Variable remuneration is not guaranteed by contract.
c. Key employee retention scheme
Mirova wishes to guarantee its investors the stability of key employees through a retention scheme embedded within remuneration policies that allows an amount of additional variable remuneration to be allocated, awarded in the form of units that are index-linked to variations in the EBT of Mirova and the business activities that it controls and that are vested in equal tranches over a minimum period of three years. Therefore, this gives employees a stake in the results of the company, subject to continued employment criteria. Amounts are awarded based on performance evaluations and individual professional commitment over the year in question. The allocation for the retention scheme is included in the overall budget for variable remuneration.
d. Carried interest
Carried interest represents loyalty building and the alignment of the interests of investors and the employees in question by way of a deferred payment. Requiring that a minimum personal financial risk be taken on by the employees in question, according to the size of the fund, it results in the acquisition of fund units. The remuneration for units acquired is then conditioned upon the creation of a capital gain and a minimum positive return on the ordinary units of the Fund’s investors. It is reserved for employees that make up the investment team for infrastructure fund activities.
3. Evaluation of collective and individual performance
Employees’ contribution and level of performance are evaluated in the light of their functions, tasks and level of responsibility within the company. The policy identifies several categories of employee:
• The executive committee is evaluated on its contribution to the definition and implementation of the company’s strategy and on its ability to develop the performance of product and service offerings and the financial results. Performance is assessed annually. • The sales support and development functions are evaluated on their ability to achieve qualitative and quantitative objectives for sales development functions. These quantitative objectives are defined and communicated at the start of each year. • The control functions are evaluated based on the assessment of qualitative criteria defined annually, in order not to compromise their independence or create conflicts of interest. • Management functions are assessed in a different way, according to the type of portfolio managed. The quantitative criteria used shall reflect the development issues of management performance sought by investors, without causing excessive risk, which may have an impact on the risk profile of Mirova and/or the products managed.
For management teams of funds invested in listed securities (equities and bonds), the assessment is based on two quantitative criteria:
• average management performance measured by analysis of the spread against benchmark indices, • competitive ranking, supplemented by one or more qualitative criteria.
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Performance spreads in relation to benchmark indices are calculated over a period of one year and three years for all products belonging to Mirova’s GIPS composites. The performance of management functions is assessed by comparing this indicator against the performance objective for each product. Specific attention is paid to compliance with risk constraints for products as set out in management processes. The competitive ranking results from Morningstar’s rankings expressed in deciles and calculated over a period of one year and three years. Management performance is reflected in the positioning of the products managed.
These quantitative criteria are calculated over a period of one year and three years to demonstrate the performance of the company over time and to limit the impact of a one-off performance. They are supplied to Mirova by the reporting department and competitive intelligence service and are monitored and approved by the HICC.
For management teams in infrastructure funds, performance can only be measured over a long period, depending on the duration of the funds, which may exceed ten years. Management quality is thus assessed qualitatively, based on the quality and diversification of the portfolio, the number and amount of investments made during the year, along with analysis of the performance of the assets held in portfolios (no default or solvency problems, stability of cash flow, etc.). Infrastructure teams are also assessed on their ability to raise funds from investors. The annual volume collected during the fundraising phase is used as a quantitative criterion.
4. Implementation of the scheme that is applicable to regulated employees
a. Identification of regulated employees
In accordance with the regulatory provisions, at the beginning of the year the Human Resources department and HICC draft and formalise the list of the “regulated” population, i.e. those employees who, via their decisions, may individually have a significant impact on Mirova’s risk profile and/or the products managed, bearing in mind that the members of the Executive Committee are systematically included in this population, along with the management functions for support activities, supervisory management functions (risks, compliance and audit), and the voting members serving on investment committees for infrastructure funds.
Identification of the management and risk functions falling within the scope of the regulated functions is undertaken annually by the Human Resources department and the HICC (Head of Internal Control, Compliance and Risk) using the management process mapping. General management approves the scope of the entire group of regulated employees.
b. Scheme that is applicable to variable remuneration allocated to regulated employees
Variable remuneration and, if applicable, the retention scheme for regulated employees are generally allocated half in cash and the other half in the form of an equivalent financial instrument. For the lowest variable remuneration bracket, falling below an annually defined threshold, the deferred component does not apply. The list of employees concerned is approved by the HICC – Head of Internal Control, Compliance and Risk. For Mirova’s highest remuneration bracket, the deferred component, in the form of an equivalent financial instrument, may reach 60%.
The alignment of risk-taking and the interests of regulated employees on the one hand, and Mirova on the other, is reflected in the payment of a portion of the variable remuneration in the form of units index-linked to the EBT of Mirova and the business activities it manages, which are vested after a minimum of three annual carry-forward periods and subject to conditions of continued employment, freedom from misconduct or wilful fraudulent misconduct, professional misconduct, or conduct not meeting the principles and rules set out in the French Code of Ethics and Mirova’s procedures that may impact the risk level of Mirova and/or the products managed.
Furthermore, the alignment of interests involves the use of an indexation clause applied to the number of units on expiry of each carry-forward period. This clause is based on the evaluation of a criterion calculated at the end of the year following the award for the first carry-forward, at the end of the second year following the award for the second carry-forward and so on:
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• For asset managers of listed equity or bond portfolios, this criterion is calculated based on the performance spread against benchmarks at the end of the year following the award for the first carry-forward, at the end of the second year following the award for the second carry-forward and so on.
A significant underperformance observed on this criterion shall lead to a reduction of between 10% and 100% of the number of units vested. • For infrastructure managers, the criterion used is that of “end-of-function” of the Fund’s management company, i.e. the decision of investors to split from the management company. This end-of-function criterion is subject to a clause, the terms of which are set out in the Fund’s prospectus, and is based on two separate grounds:
- an “end-of-function without fault” clause, - an “end-of-function with fault” clause.
If either of these clauses is voted by a qualified majority of the investors during the period preceding the reporting period for which the indexing clause is calculated, a reduction of 50% to 100% in the number of units vested shall then apply individually to the asset managers of the fund in question. When an asset manager manages several funds, a weighted average of the assets of the funds in question is then calculated. This clause also applies to the retention scheme.
This clause also applies to the retention scheme.
Calculation of the quantitative criterion for equity and bond management is provided annually by the reporting department and independently approved by Mirova’s HICC. For management functions, it is calculated within the employee’s scope of expertise. For all other functions, it is calculated as 50% within the scope of equity/bond portfolios, and 50% within that of infrastructure funds.
Depending on its financial situation, Mirova may consider that any outstanding payments are null and void for one or more years in question. The application of these clauses is approved by the general management of Mirova and Natixis is notified thereof.
c. Control mechanism
At the end of each promotion process and prior to the allocation of variable remuneration, the Human Resources department conducts a documented check on the adequacy and effectiveness of the remuneration policy for regulated employees (list of names, amounts allocated, split between immediate and deferred payments and the portion in cash or equivalent financial instrument). It is approved by the Executive Committee and by Natixis Investment Managers.
The general and specific principles, the application methods and quantified summary data of the remuneration policy including the regulated population, as well as the annual remuneration package for executives, are provided annually to the Board of Directors of Mirova. As part of the promotion process, individual proposals are approved by the Human Resources department and the general management of Mirova, then in turn by the remuneration approval bodies of Natixis Investment Managers AM and Natixis. The Chief Executive Officer’s remuneration is determined by the general management of Natixis Investment Managers and Natixis and is submitted to the Natixis Appointments and Remuneration Committee.
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5. Remuneration paid during the last financial year The total amount of remuneration for the financial year, broken down into fixed and variable remuneration, paid by the management company to its staff and the number of beneficiaries, and where appropriate, carried interest paid by the portfolios, is as follows:
• Fixed remuneration: €7,051,373 • Variable remuneration awarded: €6,752,332 • Employees concerned: 77 employees
The aggregate amount of remuneration, divided among senior executives and employees of the management company whose activities have a significant impact on the risk profile of the management company and/or the portfolios:
• Total remuneration: €4,438,804, of which:
Executive managers: €3,144,046 Members of staff: €1,294,759
The data for the year 2019 are not yet available.
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Please note that the following remuneration policy is applicable for the fiscal year ended 31 December 2018.
NATIXIS INVESMENT MANAGERS INTERNATIONAL APPENDIX TO THE MANAGEMENT REPORT
1. General principles of the remuneration policy
The remuneration policy is a strategic element of Natixis Investment Managers International's policy. As a tool for mobilising and encouraging associates, it ensures, in strict compliance with great financial equilibrium and regulations, that it is competitive and attractive in light of market practice. It is designed to avoid creating incentives that could give rise to conflicts of interest between the associates and clients of Natixis Investment Managers International.
The remuneration policy includes all components of remuneration. It distinguishes between fixed remuneration, based on an assessment of the skills required for the role in question and determined according to market standards, and variable remuneration, which is related to the assessment of defined individual or collective performance criteria.
This assessment of performance is based on quantitative and qualitative annual and multi-year performance criteria. One of its fundamental principles is to align the interests of investors, associates and Natixis Investment Managers International. It applies to all Natixis Investment Managers International staff.
The remuneration policy is reviewed and approved each year to incorporate any regulatory and contextual changes, and to ensure consistency with Natixis' remuneration policy. As part of the monitoring and assessment of the remuneration policy, the RCCI (Head of Compliance and Internal Control) of Natixis Investment Managers International validates the policy prior to its implementation. It is subject to an annual internal audit.
Information on the remuneration policy’s general principles is provided annually to members of the workers’ committee, the board of directors and all staff. a. Definition of performance
Each associate’s contribution and performance level are assessed with regard to his/her role, duties and level of responsibility within the company. Within this context, the remuneration policy distinguishes between several categories of staff:
- The executive committee, which is assessed on its contribution to establishing and implementing the company strategy and on its capacity to boost performance for products and services as well as the financial results. For this category, performance is appraised annually. - The support functions are assessed on their capacity to respond to the company’s strategic challenges. Individual performance is appraised annually. - Assessment of the performance of the control functions is based on the appraisal of qualitative criteria defined every year in order not to compromise their independence or create conflicts of interest. - The performance of the portfolio management functions is assessed on the basis of two quantitative criteria: the information ratio or the Sharpe ratio (for absolute return portfolios) and the competitive ranking, plus one or more qualitative criteria.
The quantitative criteria reflect the challenges of developing portfolio management performance sought by investors, without allowing excessive risk taking that may have an impact on the risk profile of Natixis Investment Managers International and/or managed products.
These quantitative criteria are calculated over a period of one and three years in order to reflect the company’s search for long-term performance and to limit the weighting of one-off performance.
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Performance assessment systematically includes qualitative criteria. They involve contributing to the reliability of a process, participating in a cross-disciplinary project, contributing to developing new expertise, contributing to improvements in operational efficiency and any other subjects defined in the implementation of the strategic objectives of Natixis Investment Managers International.
These qualitative objectives are defined and communicated at the start of every year.
They incorporate compliance with the Natixis Investment Managers International risk and compliance rules. b. Remuneration components i. Fixed remuneration
Fixed remuneration rewards the skills and expertise expected in a given role. ii. Variable remuneration
Variable remuneration rewards annual, collective or individual performance.
The collective variable remuneration of Natixis Investment Managers International consists of a profit-sharing and incentive scheme, linked with an associates savings plan and a group retirement savings plan (PERCO), thus enabling associates to benefit from a matching contributions scheme.
These collective variable remunerations have no incentive impact on the management of Natixis Investment Managers International’s risks and/or products managed, and do not fall within the scope of the AIFM or UCITS V directives.
Individual variable remuneration is awarded on a discretionary basis depending on the assessment of an individual's performance and the way in which objectives have been reached. The variable remuneration awarded to associates is impacted if they adopt a non-compliant level of risk-taking or if they do not adhere to internal procedures during the year under review.
Regulated persons and front office associates are subject to specific obligations regarding compliance with risk and compliance rules. Failure to comply with these obligations may result in a partial or total reduction in the allocation of individual variable remuneration.
In the event of a significant loss or decrease in its profits, Natixis Investment Managers International may also consider that the budget allocated to individual remuneration and, if applicable, the payments in the process of being acquired, may not be distributed or reduced for one or more years.
There is no contractual guarantee for variable remuneration, except, in some cases, for variable remuneration awarded for a first year of service as part of an external recruitment.
Schemes such as "golden parachutes" are prohibited. Payments related to the early termination of the employment contract are determined according to legal provisions (legal and contractual indemnities) and the performance of the beneficiary, his/her area of business and the entire company. iii. Loyalty mechanism for key associates
Natixis Investment Managers International wants to guarantee its investors stability by retaining the most talented associates and those identified as key for their commitment or contribution to results.
To this end, a deferred remuneration scheme has been incorporated within the remuneration policies.
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This scheme allows the allocation of an additional amount of variable remuneration, in the form of cash indexed to the performance of an equally-weighted basket of products managed by Ostrum Asset Management. It is acquired in equal instalments over a minimum period of three years and thus enables associates to be linked with the performance of Natixis Investment Managers International. It is subject to conditions regarding presence (i.e., not on leave) and an absence of unusual behaviour that may have an impact on the risk level of Natixis Investment Managers International and/or managed products. Instalments acquired may need to be refunded in order to guarantee risk adjustment after the event.
Amounts are awarded with regard to the performance assessment and an individual professional commitment over the year in question.
2. Implementation of the scheme applicable to regulated persons
For 2018, and notwithstanding the scheme described below, Natixis Investment Managers International will apply the rules applicable to the French branch of the Luxembourg management company Natixis Investment Managers S.A. for associates employed by this branch. a. Identification of regulated persons
At the start of the year, in accordance with the regulatory provisions, the Human Resources Department and the RCCI (Head of Compliance and Internal Control) formally determine which Natixis Investment Managers International associates constitute regulated persons.
Associates are identified as regulated persons on the basis of their work activities, when they are involved in investment processes and/or when individually, through their decisions, they can have a significant impact on the risk profile of Natixis Investment Managers International and/or managed products, or because of their total level of remuneration.
With a view to coherence and harmonisation, Natixis Investment Managers International has decided to implement the scheme applicable to regulated persons over the entire scope of managed products (mandates, UCITS and AIF). The following are systematically included in the scope of regulated persons: members of the executive committee, the management functions of support or administrative activities (financial and operations directors) and the control management functions (heads of risk, compliance and controls).
The scope of all regulated persons is validated by the General Management and recorded by the Human Resources Department. The associates in question are informed of their status.
The scope of regulated persons of Natixis Investment Managers International is presented to the Natixis Remuneration Committee.
The scope of regulated persons may be reviewed during the year in the event of recruitment or mobility of an associate, or the initiation of new activities or a new management process. b. Mechanism applicable to variable remuneration awarded to regulated persons
The variable remuneration of regulated persons is subject to deferral conditions. Half of it is granted in cash and half in the form of a financial instrument equivalent.
The triggering threshold for deferred remuneration is set annually within the limits authorised by the French Financial Markets Authority (AMF). It will be subject to change, downwards only, according to regulatory directives or changes in HR policies. In this case, the new threshold set will be approved by the Executive Committee of Natixis Investment Managers International and the Natixis Remuneration Committee. For the highest remunerations within Natixis Investment Managers International, the deferred proportion in the form of a financial instrument equivalent may reach 60%.
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To ensure alignment between associates and investors, the portion of deferred variable remuneration is allocated in the form of cash indexed to the performance of a basket of products managed by Ostrum Asset Management. It is acquired with a minimum maturity of three annual deferral periods, subject to conditions concerning presence (i.e., not on leave) and unusual behaviour that may have an impact on the level of risk of Natixis Investment Managers International and/or managed products.
These acquisitions are also subject to obligations regarding compliance with risk and compliance rules. Failure to comply with these obligations may result in a partial or total reduction of the amounts acquired. Instalments acquired may also be refunded in order to guarantee risk adjustment after the event.
Associates with deferred variable remuneration are prohibited from using individual hedging or insurance strategies over the entire acquisition period.
3. Governance
The general and specific principles of the remuneration policy are defined and formalised by the Human Resources Department and submitted for validation to the RCCI (Head of Compliance and Internal Control) of Natixis Investment Managers International.
They are validated and approved successively by the members of the Executive Committee of Natixis Investment Managers International, the General Management of Natixis Investment Managers and of Natixis.
The general and specific principles of the remuneration policy are communicated internally to all associates through HR Department publications such as the intranet and to members of the workers’ committee through an annual information meeting.
The general and specific principles, the scope of implementation and a summary of remuneration data regarding regulated persons, as well as the annual remuneration package for executives, are provided annually to the Board of Directors of Natixis Investment Managers International.
The remuneration of the managing director is determined by the General Management of Natixis Investment Managers and of Natixis and is presented to the Natixis Remuneration Committee for approval by the Natixis Board of Directors.
When Natixis Investment Managers International delegates the financial management of one of the portfolios of which it is a management company to another management company, it ensures this delegated company complies with the regulations in force.
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4. Remuneration paid during the last financial year
The total amount of remuneration for the financial year, broken down into fixed and variable remunerations, paid by the management company to its staff and the number of beneficiaries, and where appropriate, carried interest paid by the portfolios, is as follows:
Fixed remuneration 2018* : €22,161,467 Variable remuneration allocated for 2018 : €11,582,073 Employees concerned : 325 employees.
*Fixed remuneration calculated on a pro rata temporis basis 2018
The aggregate amount of remuneration, broken down between the senior executives and members of staff of the management company whose activities have a significant impact on the risk profile of the management company and/or portfolios:
Total remuneration allocated for 2018 : €8,840,581 of which : o Executive managers: €4,343,926 o Members of staff: €4,496,655
The data for the year 2019 are not yet available.
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