conseq invest plc interim report and unaudited condensed … · 2020-05-28 · conseq invest plc 6...

Conseq Invest plc

Interim Report and Unaudited Condensed Financial Statements

For the six months ended 31 March 2020

(Company Registration Number 329465)

Conseq Invest plc

Table of Contents

Page

General Information 3

Company Background 4

Investment Manager’s Report 6

Schedule of Investments 13

Statement of Comprehensive Income 30

Statement of Financial Position 32

Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders 34

Notes to the Financial Statements 36

Statement of Significant Portfolio Movements 52

Appendix 1 57

Appendix 2 60

Conseq Invest plc

3

General Information

The Directors: Mr. Richard Siuda (Czech)

Mr. Ondřej Matuška (Czech)

Ms. Veronika Juvova (Czech)

Mr. Jan Martinec (Czech)

Mr. Jim Cleary (Irish) (Independent)

Ms. Andrea Oman (Irish)

All Directors are non-executive

Secretary and KB Associates

Registered Office: 5 George’s Dock

IFSC

Dublin 1

Ireland

Investment Manager: Conseq Funds Investiční Společnost a.s.

Rybná 682/14

Prague 1

110 05

Czech Republic

Administrator, Registrar, BNP Paribas Fund Administration Services (Ireland) Limited

and Transfer Agent: Trinity Point

10-11 Leinster Street South

Dublin 2

Ireland

Depositary: BNP Paribas Securities Services, Dublin Branch

Trinity Point

10-11 Leinster Street South

Dublin 2

Ireland

Independent Auditors: Deloitte Ireland LLP

Chartered Accountants & Statutory Audit Firm

Deloitte & Touche House

29 Earlsfort Terrace

Dublin 2

Ireland

Irish Legal Advisers: Mason, Hayes & Curran

South Bank House

Barrow Street

Dublin 4

Ireland

All undefined capitalised terms shall bear the same definitions as are set out in the Prospectus and supplements

to the Prospectus.

Conseq Invest plc

4

Company Background

Conseq Invest plc (the “Company”) is an open-ended investment company with variable capital structured as an

umbrella fund with segregated liability between sub-funds (“Funds”). The Company was incorporated on 28

June 2000 under the laws of Ireland (registration number 329465). The Company has been authorised pursuant

to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations

2011 (as amended) (“the UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013

(Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019 (the

“Central Bank UCITS Regulations”). There was no change in the nature of the Company’s business during the

financial period.

The date of commencement of operations was 4 September 2000.

The Company is structured as an umbrella fund in that different Funds thereof may be established with the prior

approval of the Central Bank of Ireland (the “Central Bank”). In addition, each Fund may have more than one

Share Class allocated to it. The shares of each class allocated to a Fund will rank pari passu with each other in

all respects except as to all or any of the following: dividend policy; the level of fees and expenses to be

charged; and the Minimum Subscription and Minimum Holding applicable.

The assets of each Fund will be separate from one another and will be invested in accordance with the

investment objectives and policies applicable to each Fund. The specific investment objectives and policies for

each Fund will be formulated by the Directors, and detailed in the Prospectus (or relevant Supplement thereto),

at the time of the creation of that Fund. Any alterations to the investment objectives of any Fund will be subject

to the prior approval of the Shareholders of the relevant Fund.

The objective of the Conseq Invest Bond Fund (the “Bond Fund”) is to achieve capital appreciation measured in

Czech Crowns by investing in a diversified portfolio of fixed-income securities. The Bond Fund will aim to

outperform its benchmark (the “Benchmark”), being the Bloomberg Effas Czech Govt All >1 Yr TR Index. The

Benchmark is calculated and published by Bloomberg and is a Czech Crowns denominated government bond

index which tracks the complete universe of existing Czech Crowns denominated government bonds with

maturities of 1 year and more weighted by their market capitalisation. Investments will be made primarily in

short, medium and long term fixed-income securities listed or traded on Regulated Markets in the Czech

Republic, Poland, Hungary and Slovakia or any OECD country, and denominated in Czech Crowns. The Bond

Fund may also invest, less extensively, in short, medium and long term fixed-income securities listed or traded

on Regulated Markets in the Czech Republic, Poland, Hungary and Slovakia or any other OECD country, but

denominated in other currencies. Securities denominated in other currencies will not exceed 30% of the Net

Asset Value of the Bond Fund.

The objective of the Conseq Invest New Europe Equity Fund (the “New Europe Equity Fund”) is to achieve

long-term capital appreciation measured in Czech Crowns by investing principally in a diversified portfolio of

Converging European Countries equity securities listed or traded on Regulated Markets. The New Europe

Equity Fund will aim to outperform the benchmark composed from four indices being 25% of the PX Index and

40% of the WIG 30 Index, 15% of the BUX Index and 20% of the SETX EUR Index (the “Benchmark”). All

indices are measured in Czech Crown (CZK).

The PX Index is the Prague Stock Exchange Equity Index comprised of the most liquid stocks listed on the

Prague Stock Exchange. The WIG 30 Index is the Warsaw Stock Exchange Equity Index comprised of the most

liquid stocks on the Warsaw Stock Exchange. The BUX Index is the Budapest Stock Exchange Equity Index

comprised of the most liquid stocks listed on the Budapest Stock Exchange. The SETX EUR Index is comprised

of the most liquid stocks on stock exchanges in the region of Southeast Europe.

Conseq Invest plc

5

Company Background (continued)

The investment objective of the Conseq Invest Conservative Bond Fund (the “Conservative Bond Fund”) is to

provide investors with current income and a stable value over the medium term by investing in CZK

denominated negotiable fixed-income securities. The Conservative Bond Fund will aim to outperform the daily

average of six month Prague Interbank Offer Rate (6M PRIBOR) as fixed by Czech National Bank less 0.35 (the

“Benchmark”). The Conservative Bond Fund will seek to achieve its investment objective by investing normally

at least 90% of its net assets in a portfolio of investment grade, transferable, fixed income securities and short

term debt securities traded on Regulated Markets principally in the Czech Republic and other European

countries which will be either fixed or variable rate, including but not limited to: commercial paper, government

obligations, supranational bonds, asset and mortgage-backed securities, certificates of deposit, floating rate notes

and short and medium term obligations. Investment grade securities are securities which have ratings of at least

BBB by Standard & Poor’s or equivalent rating by any recognised rating agency or, if unrated by such rating

organisations, are determined by the Investment Manager to be of comparable credit quality.

The objective of the Conseq Invest New Europe Bond Fund (the “New Europe Bond Fund”) is to maximise total

investment return through a combination of interest income, capital appreciation and currency gains by investing

in a diversified portfolio of fixed and floating rate debt securities denominated in the currencies of the New

Europe Countries. The total investment return will be measured in the base currency of the New Europe Bond

Fund which is Czech Crowns.

The investments of the New Europe Bond Fund will be made primarily in short, medium and long term fixed

and floating rate debt securities and debt obligations of governments, government-related, municipal or

corporate issuers in the New Europe Countries denominated in domestic currencies of the New Europe

Countries or in any major currencies. The New Europe Bond Fund may also invest in fixed or floating rate debt

securities issued by supranational entities or corporate issuers in the European Union denominated in any major

currencies or in currencies of the New Europe Countries. Such securities will primarily be listed or traded on

Regulated Markets. The New Europe Bond Fund may invest in investment grade and non-investment grade debt

securities. The New Europe Bond Fund may invest a maximum of 30% of its net assets in debt securities which

have all been credited with rating worse than BB-minus by Standard & Poor’s or equivalent rating by any

recognised rating agency.

Conseq Invest plc

6

Investment Manager’s Report

Conseq Invest Bond Fund

The Fund closed 2019 with a three months gain of 0.44%, while the Czech government bond benchmark slipped

1.85% during the last quarter of 2019 and fell for the fourth month in a row. The Fund’s performance for last year as a

whole was a 3.7% gain, compared to the benchmark’s performance of 4.07%.

Since September, we expanded the Fund portfolio to include several new CZK-denominated issues of corporate

issuers. Specifically, the first was a six-month issue by the ZDR Investment real estate fund, which specialises in

investing in commercial real estate, discount-type retail real estate, administrative and production buildings, and

logistics parks. Thanks to its very short maturity, the issue is secured by high-quality facilities. The second case was

M&T, an industrial company producing designer door and window handles and door frames. Founded in 1997, the

company started out with purely commercial operations and gradually moved into internal production, to the extent

that it is now a purely manufacturing company. The company’s revenues grew from CZK 53 million in 2010 to CZK

132 million last year, selling 124,000 handles with a 20% profit margin. The post-issue debt ratio should peak at 3.2x

this year, before gradually declining. Upon maturity in five years, it should hover around zero. Big pluses are the

maintenance covenant for debt with a limit of 4.0x and solid capitalisation of the company (50%).

Other investment projects included an interesting issue of the Norwegian IT company Cegal, which focuses on the

petroleum sector. It is a leading provider of essential services for the mining industry. The business model is based on

three segments – cloud services, software development, and expert consultation (geological expertise in connection

with exploration and mining). It currently employs over 400 people and, besides Norway, has operations in the UK,

US, Dubai, and Malaysia. It provides services to the largest operators in the field in 40 countries. In relation to the

Norwegian continental shelf, it controls over 60% of the cloud services market. Its strengths are its solid capitalisation,

revenue growth and stable margins. The unique combination of its hardware, software, industry expertise, and

technical excellence solutions with very high switching costs means that there is an almost 100% contract renewal rate.

In view of pre-agreed contracts (NOK 2.5bn) and the high share of contract renewals, the estimated newly generated

EBITDA should cover over 60% of the debt financing received.

Although we could overall rate previous year 2019 as very successful for all kind of assets, its final days has brought

then invisible factor with severe consequences not only for this and next quarter but it has probably set up ground and

financial conditions for next several years.. The culprit was the massive worldwide spread of the coronavirus epidemic.

Economies literally came to a halt as a result of the safety measures that were taken. Consequently, the impacts on

GDP, employment and the ability of businesses and households to repay debts will be severe and will depend entirely

on the duration of this state of emergency. Even now, however, we can say with conviction that, at least in the next

two quarters, the world economy will plunge and that the recession will be the worst since the Second World War. The

instant impact on valuations of our assets has been rather negative in general, with the extent depending on particular

asset classes, direct market exposure and the need for mark-to-market valuations, as well as valuation frequencies,

statutory limitations and obligations. Nevertheless, our continuing approach is based on a general long-term

perspective and we are assessing recent developments as a valuation anomaly, with its impact on the economy

dependent on its duration, and a buying opportunity rather than a new dismal normal. Financial conditions and

valuations have tightened to a degree last witnessed in 2008. Although we are expecting profound economic declines

during the next several quarters, accompanied by a rise in unemployment, default rates and credit spreads, a rapid

response from policy-makers and committed fiscal resources could help to shepherd in a bottoming-out process for

equities and other asset classes in the foreseeable future.

In reaction the key central banks, led by the Fed and the ECB, came to the rescue by committing to virtually unlimited

purchases of debt securities. This stabilised the investment sentiment at the end of the quarter. Even so, global markets

reported heavy losses for first three months as a whole. The global bond prices were moving furiously, while corporate

bonds rated below investment grade plummeted when liquidity in the market basically evaporated. Commodities were

also hit hard, seeing their global index sink. Oil fell by as much as 65%. A barrel of North Sea Brent Crude was

trading for USD 23 at the end of March.

Conseq Invest plc

7

Investment Manager’s Report (continued)

Conseq Invest Bond Fund (continued)

The Bond fund lost 3.8 % since January (when the month-to-month loss in March was over 4 %). The overall market

panic caused evaporation of liquidity especially in the segment of corporate bonds. But as was written above - we are

assessing recent developments as a valuation anomaly, with its impact on the economy dependent on its duration, and

a buying opportunity rather than a new dismal normal and thus we grasp the situation and we were cautiously adding

positions on distressed levels in fundamentally strong government bonds and corporates with prudent approach and

sound financials. The overall performance since the end of September 2019 was -3.38 %.

Conseq Invest plc

8


Conseq Invest New Europe Equity Fund

The Fund unit value fell by 26.8% in the financial period 1 October 2019 to 31 March 2020, by doing so

underperformed its benchmark that fell 22.94%. First three months of the period were quite relaxed.

Performance of the stock markets was boosted by central banks’ ongoing relaxed monetary policy rhetoric, a short-

term ceasefire on the front line in the trade wars, the relative calming of the situation at the Turkish-Syrian border, and

good earning season in the third quarter of this year. Following Fed governor Jerome Powell’s announcement that the

US monetary authority would soon start expanding its balance sheet by buying assets. Despite the slowing momentum

of global economic growth, the year as a whole was profitable for equities. The relatively optimistic outlook of the

companies for 2020 drove many stock indices to new highs. The US S&P 500 stock index gained a significant 8.5%

and the European DJ STOXX 600 index climbed by 5.8% during October and December.

The lower liquidity of Central European markets and problems specific to the Polish banking system hobbled local

stock market gains in the period between October to December. The Polish market (+0.4% WIG30 index) continued to

be weighed down by the European Court of Justice’s decision on compensation for those holding mortgages

denominated in Swiss francs, the refund of charges linked to the premature termination of consumer loans, and sale of

the Polish bank mBank by its parent, Commerzbank. The telecommunications sector flourished, with most of the

capital expenditure planned here having been invested in recent years and profitability indicators expected to improve

in the future on the back of a slight rise in tariff prices. Consumer sector shares, such as those of LPP or CCC, did not

do so well. The Prague Stock Exchange performed solidly (PX index +7.1%). In response to the problems of the Polish

banking sector, we began to gradually nudge up our interest in the local banks. We believed that, in certain cases, the

reactions were overblown and, consequently, there was a disconnect between the prices of shares and their

fundamental values. On this basis, we increased our shareholdings in Alior Bank and Bank Millennium, as well as in

Erste Bank, Komerční banka and Moneta. For the most part, these purchases were financed by the sale of Romanian

shares, which have done extremely well this. In December, we nudged up the weight of Moneta shares. There were

fundamental reasons for this purchase, coupled with expectations of profit growth after the acquisition of Wüstenrot.

After Cyfrowy Polsat announced its offer to buy-out part of Asseco Poland and a sharp rise in the prices of this stock,

we exploited the situation to sell off our entire position in Asseco Poland shares. At the same time, we took advantage

of PKN Orlen’s offer to purchase all shares in energy company Energa by selling some of the shares in our possession.

The Slovenian index SBITOP was up by almost nine per cent, driven in particular by shares in pharmaceutical

company Krka, which reported sound economic performance for the preceding quarter and a strong outlook projected

for next year.

The Fund’s unit value plunged by 29.52% in the period 1st January 2020 to 31st March 2020. First half of that period

was quite ordinary development on the stock market with low volatility. Second part was really challenging and

especially March was one of the most unforgiving months for stock markets in modern history. The spread of COVID-

19 saw all stock markets slump. In the initial phase, starting in late February, sell-offs verged on the rash and reckless,

with no heed to the basic fundamentals of individual companies. By the end of March, the stock markets stabilised

somewhat, with the focus back on companies’ genuine attributes. In the main, the smallest drops were recorded by the

telecommunications, medical and consumer (staple goods) sectors. At the other end of the scale, the banking,

automotive, leisure, real estate, oil and gas sectors plummeted. Disagreement on production cuts between OPEC and

Russia led to a decline in the price of WTI crude oil from USD 60 per barrel in January to USD 20 in March. At these

levels, all US oil producers are running at a loss, as their average costs range from USD 40 to USD 50 per barrel.

Corporate reports were sidelined as investors tried to estimate, at least to some degree, the impacts that the whole

situation would have. In the next few months, it will be crucial to curb the spread of the disease and to relax the current

measures, which are hitting individual companies and entire economies hard. Central banks’ supporting and stabilising

measures and fiscal government packages are having a positive effect on financial markets. The US S&P 500 index

fell by 20% in March, while the European DJ STOXX 600 index was down by 23%.

Conseq Invest plc

9


Conseq Invest New Europe Equity Fund (continued)

Central European markets suffered a lot more than mature markets in the face of the spreading COVID-19. The many

factors contributing to this included economic reasons, lower liquidity, specific sectoral reasons, political concerns

(especially in Hungary) and, last but not least, the openness of the individual economies and the potential effects of

border restrictions and quarantine. Shares in mining companies (a slump in production due to quarantine, a fall in raw

material prices, higher indebtedness), petroleum – including refining– companies (a drop in demand for petrol) and

cyclical retail companies performed very poorly. One of the steepest downturns was in the banking sector, where it is

very difficult to estimate future losses on outstanding loans. Loan repayment holidays, the cutting of the CNB’s base

interest rates in the Czech Republic, and the recommendations by central banks not to pay dividends this year were

also viewed in a negative light. Smaller losses were recorded by defensive sectors and companies that could actually

profit from the current situation, including Polish IT developers (CD Project, Ten Square Games, and 11 Bit Studios)

and telecommunications or defensive consumer companies (Philip Morris, Stock Spirits, and Dino Polska). The Czech

PX index fell by 29.2% month on month, while the Polish WIG30 index was down 29.7%, the Hungarian BUX index

28.1% and the south-east European markets’ SETXEUR index 22%. Foreign exchange investments were helped by the

sharp depreciation of the Czech crown (EUR/CZK +7.6% month on month). At the end of March, the situation on the

stock markets started to calm down and there were no longer any extreme day-to-day changes of around 10%. In

response, we reduced our defensive positions, which fell less than the market average. These included shares such in

the Polish telecommunications companies Play and Cyfrowy Polsat, as well as shares in the Slovenian pharmaceutical

company Krka. The funds obtained were mostly invested in bank titles, which reported some of the steepest falls for a

plethora of reasons, including the temporary suspension of loan repayments, the lowering of interest rates by central

banks, and the hard-to-estimate effects of the current weak economic situation. We purchased shares in Moneta,

Komerční banka, Bank Pekao and Erste Bank. We also took advantage of the slump in CETV shares, as we did not

register any reports that PPF Group was cancelling its offer to acquire all the shares. Another area we capitalised on

was the downturn in oil-mining stocks. Here, for instance, we purchased shares in the Hungarian MOL. At the end of

March, on account of the specific stock mix Hungarian, Polish and Croatian shares were most underweight in the Fund

(relative to the benchmark), whereas Slovenian, Czech and Austrian shares continued to be overweight.

Conseq Invest plc

10


Conseq Invest Conservative Bond Fund

Since September 2019, we expanded the Fund portfolio to include two CZK-denominated issues of corporate issuers.

Specifically, the first was a six-month issue by the ZDR Investment real estate fund, which specialises in investing in

commercial real estate, discount-type retail real estate, administrative and production buildings, and logistics parks.

Thanks to its very short maturity, the issue is secured by high-quality facilities. The second case was M&T, an

industrial company producing designer door and window handles and door frames. Founded in 1997, the company

started out with purely commercial operations and gradually moved into internal production, to the extent that it is now

a purely manufacturing company. The company’s revenues grew from CZK 53 million in 2010 to CZK 132 million

last year, selling 124,000 handles with a 20% profit margin. The post-issue debt ratio should peak at 3.2x this year,

before gradually declining. Upon maturity in five years, it should hover around zero. Big pluses are the maintenance

covenant for debt with a limit of 4.0x and solid capitalisation of the company (50%).

Last but not least, there were DEK Group commercial papers, again with a maturity of up to one year. DEK is a group

of companies specialising in the supply of materials and services to the construction industry and in the production of

building materials. It has long been a leading supplier of building materials in the Czech Republic. It operates 92

branches in the Czech Republic and 16 in Slovakia. The group’s total turnover in 2018 was almost CZK 20 billion. It

currently has more than 2,400 employees at 117 points of sale. The company’s operating profit has broken through the

CZK 1.1 billion mark. Pluses are the low debt ratio and the short maturity relative to the issuer’s assets, as well as the

high liquidity of stocks and receivables supporting such short-term securities. The fund ended last quarter of 2019

0.48% in the black, reporting an overall gain of 2.37% for 2019 as a whole.

Although we could overall rate previous year 2019 as very successful for all kind of assets, its final days has brought

then invisible factor with severe consequences not only for this and next quarter but it has probably set up ground and

financial conditions for next several years.. The culprit was the massive worldwide spread of the coronavirus epidemic.

Economies literally came to a halt as a result of the safety measures that were taken. Consequently, the impacts on

GDP, employment and the ability of businesses and households to repay debts will be severe and will depend entirely

on the duration of this state of emergency. Even now, however, we can say with conviction that, at least in the next

two quarters, the world economy will plunge and that the recession will be the worst since the Second World War. The

instant impact on valuations of our assets has been rather negative in general, with the extent depending on particular

asset classes, direct market exposure and the need for mark-to-market valuations, as well as valuation frequencies,

statutory limitations and obligations. Nevertheless, our continuing approach is based on a general long-term

perspective and we are assessing recent developments as a valuation anomaly, with its impact on the economy

dependent on its duration, and a buying opportunity rather than a new dismal normal. Financial conditions and

valuations have tightened to a degree last witnessed in 2008. Although we are expecting profound economic declines

during the next several quarters, accompanied by a rise in unemployment, default rates and credit spreads, a rapid

response from policy-makers and committed fiscal resources could help to shepherd in a bottoming-out process for

equities and other asset classes in the foreseeable future.

In reaction the key central banks, led by the Fed and the ECB, came to the rescue by committing to virtually unlimited

purchases of debt securities. This stabilised the investment sentiment at the end of the quarter. Even so, global markets

reported heavy losses for first three months as a whole. The global bond prices were moving furiously, while corporate

bonds rated below investment grade plummeted when liquidity in the market basically evaporated. Commodities were

also hit hard, seeing their global index sink. Oil fell by as much as 65%. A barrel of North Sea Brent Crude was

trading for USD 23 at the end of March.

The Conservative bond fund has lost 1.65 % during first three months of 2020. Our view for future development is

cautiously optimistic. Bond prices of corporate bonds will tend to reprice higher as the situation stabilise and

economies will be gradually opened. But in the environment of once again zero or negative interest rates any

conservative strategy will struggle to provide interesting returns. The overal return since September 2019 was -1.18 %.

We continue to maintain the Fund’s interest-rate sensitivity at approximately half the value of the market index.

Conseq Invest plc

11


Conseq Invest Conservative Bond Fund (continued)

Conseq Invest plc

12


Conseq Invest New Europe Bond Fund

The Fund ended 2019 with a gain of 1.39%, resulting in a final 13.6% over the past twelve months. The main

contributors to this result were Ukrainian government bonds and the strengthening hryvnia, combined with active

trading in the Turkish government and corporate bond segment. In this latter case in particular, the use of stress periods

to increase positions, and then to reduce them after price growth, had a positive effect. The current share of Turkish

assets was slightly over 8% at the end of the year. While, in the case of Turkey, the rebound in economic activity, the

fall in inflation and – for Turkey – the relatively sensible behaviour of the central bank had positive impacts, Ukrainian

assets benefited mainly from the reformist mood and the election of the new president and his party. Active

cooperation with the International Monetary Fund, an economy growing better than expected, and falling inflation,

combined with high real returns, thus attracted keen interest from foreign investors. Despite all the upsides, the

Ukrainian government still has a long way to go and the most fundamental decisions it needs to take lie in the future.

From the perspective of investment actions we have added new corporate position - M&T, an industrial company

producing design door and window handles and door frames. Founded in 1997, the company started out with purely

commercial operations and gradually moved into internal production, to the extent that it is now a purely

manufacturing company. The company’s revenues grew from CZK 53 million in 2010 to CZK 132 million last year,

selling 124,000 handles with a 20% profit margin. The post-issue debt ratio should peak at 3.2x this year, before

gradually declining. Upon maturity in five years, it should hover around zero. Big pluses are the maintenance covenant

for debt with a limit of 4.0x and solid capitalisation of the company (50%).

Stress on the global markets came to a head towards the end of March. In April, the situation gradually started to

stabilise as the main central banks announced new measures. In late March, the American Fed launched a massive

quantitative easing programme several times bigger than that witnessed during the last global financial crisis in 2008-

2009. The Fed decided to buy virtually all debt securities and announced, in mid-April, that it would even start

purchasing speculative (non-investment) grade corporate bonds. The European Central Bank also cast the net a lot

wider for its asset purchase programme. These monumental monetary stimuli from the central banks managed to

steady the situation. Ultimately, the global equity markets actually started to grow very strongly.

Nevertheless, in first quarter of 2020, the Fund made a 6.7% loss (attributable almost solely to March) mainly caused

by the Ukrainian government bonds. Their prices plunged, pushed by strong selling from foreign investors. One rather

positive factor is that the Ukrainian government rushed to be able to accept crucial laws and reforms as soon as

possible as this is a vital prerequisite for obtaining the much needed IMF financial aid.

The overall performance since September 2019 was 5.37 %.

Conseq Funds Investiční Společnost a.s.

May 2020

Conseq Invest plc

Schedule of Investments as at 31 March 2020

13

Bond Fund

Fair % of Net

Holding Investment Currency Coupon Maturity Value CZK Assets

Austria: 0.00% (30 September 2019: 1.70%)

Czech Republic: 57.87% (30 September 2019: 57.51%)

Corporate Bonds

30,000,000 Ceska Zbrojovka AS CZK 3.93% 27/01/2022 29,871,000 0.94%

41,000,000 Cetin Finance BV CZK 1.25% 06/12/2023 38,769,600 1.22%

20,000,000 City Home Inv CZK 5.00% 15/10/2023 18,600,000 0.58%

6,000,000 Czechoslovak Group AS CZK 5.22% 16/12/2021 5,970,000 0.19%

30,000,000 Dekinvest Pod CZK 0.00% 12/12/2020 29,274,000 0.92%


45,000,000 EPH Financing CZ CZK 4.23% 16/07/2022 40,500,000 1.27%

55,000,000 Equa Bank AS CZK 4.40% 26/09/2027 53,350,000 1.67%

27,000,000 Equa Bank AS CZK 4.06% 18/09/2029 25,639,200 0.80%

39,330,002 Ges Real AS CZK 0.00% 31/05/2022 32,671,433 1.02%

4,702,435 Help Financial CZK 7.10% 29/06/2021 4,520,451 0.14%

10,000,000 Material & Tech CZK 5.20% 31/12/2024 9,015,000 0.28%

54,000,000 Moneta Money CZK 3.30% 25/09/2029 55,501,740 1.74%

30,000,000 Moneta Money CZK 3.79% 30/01/2030 31,598,400 0.99%

30,000,000 Moravska Stavebni - Invest AS CZK 0.00% 01/12/2021 26,130,000 0.82%


26,000,000 Net4gas Bond CZK 2.25% 28/01/2021 25,971,400 0.81%

17,500,000 PPF Banka AS CZK 4.05% 31/05/2022 17,298,750 0.54%

21,000,000 Red Thirteen CZK 4.80% 01/09/2022 20,475,000 0.64%

21,000,000 Sazka Group AS CZK 5.20% 23/09/2024 19,530,000 0.61%

500,000 Sazka Group AS EUR 3.88% 15/02/2027 10,783,673 0.34%

36,000,000 Skoda Trans CZK 3.00% 26/06/2020 35,978,400 1.13%

36,000,000 Skofin S.R.O CZK 0.00% 20/11/2020 35,382,458 1.11%

36,000,000 Smvak CZK 2.63% 17/07/2022 33,120,000 1.04%

18,500,000 T-Centrum Cz CZK 6.72% 30/10/2024 16,650,000 0.52%

24,000,000 Teplarna Otro CZK 5.02% 21/12/2023 23,805,600 0.75%

45,000,000 Trigema Real Est CZK 5.17% 15/12/2020 43,875,000 1.38%

20,000,000 Twisto Finco Sro CZK 7.65% 18/05/2023 19,202,000 0.60%

15,000,000 Vsehrdova Two CZK 3.10% 03/10/2022 14,148,000 0.44%

35,000,000 ZDR Investments CZK 0.00% 19/06/2020 34,594,000 1.09%

Government security

18,000,000 City of Prague Czech Republic CZK 4.25% 11/05/2021 18,468,000 0.58%

175,000,000 Czech Republic Government Bond CZK 2.86% 18/04/2023 176,200,500 5.52%








Total Czech Republic

1,846,225,065 57.87%

Denmark: 1.80% (30 September 2019: 0.85%)

Corporate Bonds

1,500,000 Bidco NR Two EUR 7.00% 11/09/2023 31,848,431 1.00%

1,100,000 SSG Bidco EUR 6.00% 21/10/2024 25,615,728 0.80%

Total Denmark

57,464,159 1.80%

Conseq Invest plc


14

Bond Fund (continued)

Fair % of Net


Estonia: 0.41% (30 September 2019: 0.41%)

Corporate Bonds

550,000 Nortal AS EUR 4.75% 28/05/2024 12,958,544 0.41%

Total Estonia

12,958,544 0.41%

France: 2.00% (30 September 2019: 2.20%)

Corporate Bonds

45,000,000 BPCE SA CZK 2.33% 04/02/2023 43,335,000 1.36%

750,000 Societe Generale SA EUR 3.75% 11/01/2021 20,574,087 0.64%

Total France

63,909,087 2.00%

Germany: 3.60% (30 September 2019: 3.15%)

Corporate Bonds

800,000 Ferratum Cap Ger EUR 5.50% 25/05/2022 14,903,696 0.46%

1,500,000 Gamigo EUR 7.75% 11/10/2022 36,985,275 1.16%

1,450,000 Mutares EUR 6.00% 14/02/2024 32,773,063 1.03%

1,300,000 Tempton EUR 6.00% 09/10/2023 30,273,133 0.95%

Total Germany

114,935,167 3.60%

Hungary: 0.84% (30 September 2019: 1.48%)

Corporate Bonds

1,000,000 OTP Bank EUR 2.88% 15/07/2029 26,754,326 0.84%

Total Hungary

26,754,326 0.84%

Italy: 1.20% (30 September 2019: 1.01%)

Corporate Bonds

1,400,000 Saxa Gres SPA EUR 7.00% 10/07/2023 38,355,100 1.20%

Total Italy

38,355,100 1.20%

Japan: 0.00% (30 September 2019: 0.22%)

Luxembourg: 4.02% (30 September 2019: 4.03%)

Corporate Bonds

23,000,000 Ecm Real Estate CZK 0.00% 30/03/2051 23,000 0.00%

58,000,000 European Investment Bank CZK 2.55% 05/06/2034 56,840,000 1.78%

34,000,000 Societe Generale CZK 2.02% 04/01/2021 34,101,999 1.07%

1,500,000 Societe Generale EUR 6.42% 11/01/2021 37,346,909 1.17%

Total Luxembourg

128,311,908 4.02%

Malta: 0.82% (30 September 2019: 0.85%)

Corporate Bonds

13,000,000 Gaming Innov SEK 9.31% 28/06/2022 26,208,905 0.82%

Total Malta

26,208,905 0.82%

Conseq Invest plc


15


Fair % of Net


Netherlands: 6.08% (30 September 2019: 5.16%)

Corporate Bonds

1,000,000 Azerion Hldgs EUR 8.50% 17/03/2023 23,013,060 0.72%

38,000,000 LeasePlan Corp NV CZK 2.99% 19/11/2020 37,931,600 1.19%


30,669 New World Resources NV EUR 0.00% 07/10/2020 - 0.00%

72,000,000 PPF Finance Holding CZK 4.50% 18/12/2027 69,840,000 2.19%

1,700,000 Sand Hill Petro EUR 9.00% 13/04/2022 30,273,132 0.95%

8,354,000 Satpo Group BV CZK 7.00% 24/02/2022 8,061,610 0.25%

Contingent Value Rights


Total Netherlands

193,856,902 6.08%

Norway: 6.06% (30 September 2019: 5.12%)

Corporate Bonds

13,000,000 Chip Bidco AS NOK 7.21% 13/12/2024 24,109,919 0.76%

6,000,000 Crayon Group NOK 5.26% 21/11/2022 11,983,628 0.38%

13,000,000 Dnb Bank ASA NOK 4.55% 31/12/2059 27,819,137 0.87%

850,000 Fiven AS EUR 7.75% 05/04/2022 20,958,322 0.66%

14,970 Global Rig Co USD 9.00% 03/06/2021 373,832 0.01%

9,000,000 Holmetjern Inv NOK 8.77% 16/02/2022 17,119,469 0.54%

300,000 Infront ASA EUR 5.75% 15/05/2023 6,873,097 0.21%

15,000,000 Kistefos AS NOK 6.73% 10/05/2023 28,532,448 0.89%

6,000,000 Mime Petroleum NOK 8.51% 18/02/2025 14,194,607 0.44%

1,200,000 Okea AS USD 7.87% 28/06/2023 16,479,098 0.52%

1,000,000 Okea AS USD 8.75% 11/12/2024 24,871,453 0.78%

Total Norway

193,315,010 6.06%

Poland: 4.84% (30 September 2019: 6.81%)

Corporate Bonds

15,000,000 Aaw X SP CZK 5.48% 29/03/2023 14,850,000 0.47%

5,000,000 Bank Pol Kasa Opieki PLN 3.34% 16/10/2028 28,196,312 0.88%

5,000,000 Cyfrowy Polsat PLN 3.54% 24/04/2026 28,553,989 0.90%

4,000,000 Dom Development SA PLN 3.29% 09/10/2023 23,420,282 0.73%

6,000,000 Ghelamco Invest PLN 6.29% 28/02/2022 34,986,150 1.10%

4,550,000 Robyg S.A. PLN 4.64% 05/07/2023 24,195,327 0.76%

Total Poland

154,202,060 4.84%

Slovakia: 1.21% (30 September 2019: 1.06%)

Corporate Bonds

1,000,000 Gevorkyan SRO EUR 4.70% 15/03/2024 26,574,605 0.83%

475,000 Sazka Group Fin EUR 4.00% 12/12/2022 11,972,271 0.38%

Total Slovakia

38,546,876 1.21%

Conseq Invest plc


16


Fair % of Net


Sweden: 1.99% (30 September 2019: 0.49%)

Corporate Bonds

15,000,000 AE4 2017 SE SEK 6.42% 08/11/2024 30,241,044 0.95%

800,000 Bewi Group AB EUR 3.01% 22/11/2023 18,191,276 0.57%

900,000 Quant AB EUR 6.00% 15/02/2023 15,040,679 0.47%

Total Sweden

63,472,999 1.99%

Turkey: 1.63% (30 September 2019: 2.72%)

Corporate Bonds

2,450,000 Ronesans Gayrime USD 7.25% 26/04/2023 51,893,778 1.63%

Total Turkey

51,893,778 1.63%

United Kingdom: 3.16% (30 September 2019: 3.21%)

Corporate Bonds

1,250,000 Centralnic GR EUR 7.00% 03/07/2023 26,426,321 0.83%

20,000,000 International Personal Finance SEK 8.97% 15/06/2022 35,281,218 1.10%

40,000,000 Lloyds Bank Plc Bond CZK 2.68% 01/12/2021 39,192,000 1.23%

Total United Kingdom

100,899,539 3.16%

Forward Foreign Exchange Contracts: 0.00% (30 September 2019: 0.04%)

Total Financial Assets at fair value through profit or loss

3,111,309,425 97.53%

Interest Rate Swaps: (0.58%) (30 September 2019: (0.20%)) Nominal Fair % of Net

Description

Maturity Counterparty Holding Value CZK Assets

Interest Rate Swap

13/04/2027 Ceska Sporitelna, a.s. 3,400,000 (6,588,399) (0.21%)

Interest Rate Swap

10/02/2030 Ceska Sporitelna, a.s. 150,000,000 (11,858,787) (0.37%)

Total Interest Rate Swaps (18,447,186) (0.58%)

Conseq Invest plc


17


Forward Foreign Exchange Contracts: (1.79%) (30 September 2019: (0.04%)) Fair % of Net

Purchases Currency Sales Currency Maturity Value CZK Assets

6,374,875 CZK 250,000 EUR 02/04/2020 (474,683) (0.01%)

24,871,570 CZK 950,000 EUR 02/04/2020 (1,156,796) (0.04%)

517,405,262 CZK 20,280,000 EUR 02/04/2020 (38,230,940) (1.20%)

21,941,105 CZK 950,000 USD 03/04/2020 (1,779,799) (0.05%)

109,645,920 CZK 45,900,000 SEK 14/04/2020 (6,053,868) (0.19%)

75,311,710 CZK 3,320,000 USD 14/04/2020 (7,587,211) (0.24%)

587,829,350 CZK 21,500,000 EUR 04/05/2020 (1,933,344) (0.06%)

Total Forward Foreign Exchange Contracts

(57,216,641) (1.79%)

(Counterparty: BNP Paribas Securities Services)

Total Financial Liabilities at fair value through profit or loss

(75,663,827) (2.37%)

Total Net Financial Assets at fair value through profit or loss

3,035,645,598 95.16%

Net Other Assets: 4.84% (30 September 2019: 2.22%) Cash

125,653,886 3.94%

Net Other Current Assets

28,874,335 0.90%

Total Value of Fund

3,190,173,819 100.00%

Total assets comprised as follows:

% of Total Assets

(a) Transferable securities admitted to an official stock exchange listing

94.79%

(b) Other assets

5.21%

100.00%

Conseq Invest plc


18

New Europe Equity Fund

Fair % of Net

Holding Investment

Currency Value CZK Assets


Common Stock

Banks

200,500 Addiko Bank AG

EUR 43,449,616 1.51%

134,000 Erste Group Bank AG

CZK 62,310,000 2.16%

221,000 Erste Group Bank AG

EUR 103,140,562 3.58%

100,000 Raiffeisen Bank International EUR 36,519,534 1.27%

Insurance

34,000 Vienna Insurance Group AG

CZK 15,640,000 0.54%

115,000 Vienna Insurance Group AG

EUR 54,820,397 1.90%

Pharmaceuticals

25,700 Marinomed Biotech AG

EUR 64,776,285 2.25%

Total Austria

380,656,394 13.21%

Bermuda: 2.14% (30 September 2019: 3.39%)

Common Stock

Media

780,000 Central European Media Enterprises Ltd

CZK 61,698,000 2.14%

Total Bermuda

61,698,000 2.14%

Croatia: 2.69% (30 September 2019: 2.95%)

Common Stock

Hotels And Restaurants

900,000 Valamar Riviera DD

HRK 77,609,966 2.69%

Total Croatia

77,609,966 2.69%


Common Stock

Banks

320,000 Komercni Bank AS

CZK 151,168,000 5.24%

2,200,000 Moneta Money Bank AS

CZK 114,180,000 3.96%

Electric

345,000 CEZ AS

CZK 140,622,000 4.88%

Food

11,700 Fillamentum AS

CZK 10,062,000 0.35%

225,870 Kofola CS AS

CZK 46,303,350 1.61%

Real Estate

120,000 Primoco

CZK 28,800,000 1.00%

Textiles and Clothing

31,000 Prabos Plus AS

CZK 11,160,000 0.39%

Total Czech Republic

502,295,350 17.43%

Conseq Invest plc


19

New Europe Equity Fund (continued)

Fair % of Net

Holding Investment



Common Stock

Banks

20,000 OTP Bank PLC

HUF 14,476,575 0.50%

Oil & Gas

920,000 MOL Hungarian Oil & Gas PLC

HUF 134,582,017 4.67%

Pharmaceuticals

260,000 Richter Gedeon Nyrt

HUF 122,534,408 4.25%

Telecommunications

550,000 Magyar Telekom Telecommunica HUF 15,268,381 0.53%

Transportation And Transportation Materials

140,000 Waberers International ZRT

HUF 7,443,360 0.26%

Total Hungary

294,304,741 10.21%


Common Stock

Telecommunications

80,000 Play Communications SA

PLN 14,061,787 0.49%

Total Luxembourg

14,061,787 0.49%


Common Stock

Media

150,000 Digi Communications NV

RON 24,918,793 0.86%

Total Netherlands

24,918,793 0.86%


Common Stock

Banks

1,500,000 Bank Millennium SA

PLN 29,052,932 1.01%

360,000 Bank Pekao SA

PLN 121,362,266 4.21%

240,000 PKO Bank Polski SA

PLN 32,634,504 1.13%

45,000 Santander Bank Polska SA

PLN 46,933,740 1.63%

Diversified Finanancial Services

940,000 Alior Bank SA

PLN 72,611,290 2.52%

650,000 Getback SA

PLN 820,552 0.03%

35,000 Kruk SA

PLN 13,675,858 0.47%

Electric

1,100,000 PGE SA

PLN 25,147,347 0.87%

2,500,000 Tauron Polska Energia SA

PLN 16,771,711 0.58%

Food

100,000 Eurocash SA

PLN 10,189,265 0.35%

Conseq Invest plc


20


Fair % of Net

Holding Investment


Poland: 20.95% (30 September 2019: 29.46%) (continued)

Common stock (continued)

Insurance

680,000 Powszechny Zaklad Ubezpieczen SA

PLN 127,945,914 4.44%

Media

400,000 Agora SA

PLN 17,072,279 0.59%

150,000 Cyfrowy Polsat SA

PLN 21,478,611 0.75%

Mining

20,000 KGHM Polska Miedz SA

PLN 7,189,594 0.25%

Retail/distribution

185,000 CCC SA

PLN 33,340,839 1.16%

Telecommunications

400,000 Orange Polska SA

PLN 14,270,983 0.49%


1,224,000 VRG SA

PLN 13,538,558 0.47%

Total Poland

604,036,243 20.95%

Republic of Moldova: 2.55% (30 September 2019: 2.30%)

Common Stock

Food

713,512 Purcari Wineries PLC

RON 73,425,351 2.55%

Total Republic of Moldova

73,425,351 2.55%

Romania: 5.20% (30 September 2019: 7.63%)

Closed-ended Fund

4,500,000 SC Fondul Proprietatea SA1

RON 28,193,105 0.98%

Common Stock

Banks

650,000 BRD-Group Societe General

RON 42,971,452 1.49%

Electric

25,000 Electrica SA GDR

USD 5,305,770 0.18%

Oil & Gas

16,000,000 OMV Petrom SA

RON 26,262,537 0.91%

Pharmaceuticals

300,000 Med Life SA

RON 47,286,174 1.64%

Total Romania

150,019,038 5.20%

1 AIF

Conseq Invest plc


21


Fair % of Net

Holding Investment


Slovak Republic: 13.44% (30 September 2019: 14.21%)

Common Stock

Banks

96,989 Nova Ljubljanska Banka DD

EUR 100,440,616 3.48%

170,000 Nova Ljubljanska B-GDR

EUR 34,837,389 1.21%

Food

45,500 Luka Koper

EUR 20,193,960 0.70%

Oil & Gas

11,484 Petrol DD Ljubljana

EUR 89,981,722 3.12%

Pharmaceuticals

80,000 Krka DD Novo mesto

EUR 142,023,456 4.93%

Total Slovak Republic

387,477,143 13.44%


Common Stock


300,000 Karo Invest AS

CZK 15,300,000 0.53%

Total Sweden

15,300,000 0.53%

Ukraine: 2.06% (30 September 2019: 1.99%)

Common Stock

Agriculture

300,000 Kernel Holding SA

PLN 59,512,523 2.06%

Total Ukraine

59,512,523 2.06%


Common Stock

Beverages

800,000 Stock Spirits Group PLC

CZK 40,960,000 1.42%

Office Equipment & Material

1,020,000 Avast PLC

CZK 127,500,000 4.42%

Total United Kingdom

168,460,000 5.84%

Total Financial Assets at fair value through profit or loss 2,813,775,329 97.60%

Conseq Invest plc


22


Forward Foreign Exchange Contracts: (0.72%) (30 September 2019: (0.01%))

Fair % of Net


284,521,860 CZK 53,850,000 RON 03/04/2020 (20,760,552) (0.72%)

Total Forward Foreign Exchange Contracts (20,760,552) (0.72%)


Total Financial Liabilities at fair value through profit or loss (20,760,552) (0.72%)


2,793,014,777 96.88%


81,636,988 2.83%


8,351,379 0.29%

Total Value of Fund 2,883,003,144 100.00%


% of Total Assets


95.77%

(b) Closed-ended Fund

0.97%

(c) Other assets

3.26%

100.00%

Conseq Invest plc


23

Conservative Bond Fund

Fair % of Net



Corporate Bonds

13,000,000 Erste Group Bank AG CZK 5.19% 29/04/2023 13,119,600 0.81%

45,000,000 Hypo Noe Gruppe CZK 2.52% 16/09/2020 44,806,500 2.75%

Total Austria 57,926,100 3.56%

Belgium: 0.94% (30 September 2019: 0.82%)

Corporate Bonds

380,000 VGP NV EUR 3.90% 21/09/2023 10,881,857 0.67%

165,000 VGP NV EUR 3.25% 06/07/2024 4,385,895 0.27%

Total Belgium 15,267,752 0.94%


Corporate Bonds

1,400,000 Ceska Exp Banka Bond EUR 0.18% 02/07/2021 38,190,173 2.35%

21,000,000 Ceska Zbrojovka AS CZK 3.93% 27/01/2022 20,909,700 1.28%

250,000 Ceske Drahy EUR 1.50% 23/05/2026 6,830,221 0.42%

600,000 CEZ AS EUR 0.88% 21/11/2022 16,237,686 1.00%



30,000,000 EPH Financing CZ CZK 4.23% 16/07/2022 27,000,000 1.66%

7,000,000 Equa Bank As CZK 4.40% 26/09/2027 6,790,000 0.42%

18,000,000 Finep Holding SE CZK 3.75% 19/06/2020 17,730,000 1.09%

20,490,001 GES Real AS CZK 0.00% 31/05/2022 17,021,044 1.05%

3,000,000 Help Financial CZK 7.10% 29/06/2021 2,883,900 0.18%


24,000,000 Moneta Money Bank AS CZK 3.30% 25/09/2029 24,667,440 1.52%

15,000,000 Moneta Money Bank AS CZK 3.79% 30/01/2030 15,799,200 0.97%

10,000,000 Moravska Stav In CZK 5.50% 30/11/2022 9,289,000 0.57%


16,000,000 Net4gas Bond CZK 2.25% 28/01/2021 15,982,400 0.98%

12,000,000 Red Thirteen CZK 4.80% 01/09/2022 11,700,000 0.72%

18,000,000 Severom Vodovody AS CZK 2.63% 17/07/2022 16,560,000 1.02%

27,000,000 Skoda Transportation CZK 3.00% 26/06/2020 26,983,800 1.66%

51,000,000 Skofin S.R.O CZK 0.00% 20/11/2020 50,125,149 3.08%

8,000,000 T-Centrum CZ CZK 6.72% 30/10/2024 7,200,000 0.44%

36,000,000 Trigema Real EST CZK 5.17% 15/12/2020 35,100,000 2.16%

20,000,000 Twisto Finco SRO CZK 7.65% 18/05/2023 19,202,000 1.18%

35,000,000 ZDR Investments CZK 0.00% 19/06/2020 34,594,000 2.13%

Government security









Total Czech Republic 930,596,114 57.22%

Conseq Invest plc


24

Conservative Bond Fund (continued)

Fair % of Net


France: 6.20% (30 September 2019: 4.66%)

Corporate Bonds

1,350,000 BNP PARIBAS EUR 0.28% 07/06/2024 34,277,213 2.11%

18,000,000 BNP PARIBAS CZK 2.87% 08/10/2024 18,450,000 1.13%

30,000,000 BPCE SA CZK 2.33% 04/02/2023 28,890,000 1.78%

700,000 Societe Generale SA EUR 3.75% 11/01/2021 19,202,481 1.18%

Total France 100,819,694 6.20%

Germany 1.06% (30 September 2019: 1.02%)

Corporate Bonds

700,000 Gamigo EUR 7.75% 11/10/2022 17,259,795 1.06%

Total Germany 17,259,795 1.06%

Japan: 0.98% (30 September 2019: 0.43%)

Corporate Bonds

600,000 Nomura International Fund EUR 1.75% 30/06/2022 15,996,049 0.98%

Total Japan 15,996,049 0.98%


Corporate Bonds



20,000,000 SG Issuer CZK 2.02% 04/01/2021 20,060,000 1.23%

900,000 SG Issuer EUR 6.42% 11/01/2021 22,408,145 1.38%

Total Luxembourg 77,748,145 4.78%


Corporate Bonds

735,000 Atrium European EUR 3.63% 17/10/2022 20,539,358 1.26%



38,000,000 PPF Finance Holding CZK 4.50% 18/12/2027 36,860,000 2.26%

700,000 Sand Hill Petro EUR 9.00% 13/04/2022 12,465,407 0.76%

Total Netherlands 116,693,165 7.16%


Corporate Bonds

800,000 Okea AS USD 7.87% 28/06/2023 10,986,065 0.68%

Total Norway 10,986,065 0.68%


Corporate Bonds

9,000,000 AAW X SP CZK 5.48% 29/03/2023 8,910,000 0.55%

Total Poland 8,910,000 0.55%

Conseq Invest plc


25

Conservative Bond Fund (continued)

Fair % of Net



Corporate Bonds

26,000,000 Lloyds Bank Plc Bond CZK 2.68% 01/12/2021 25,474,800 1.57%

Total United Kingdom 25,474,800 1.57%

United States: 0.92% (30 September 2019: 0.80%)

Corporate Bonds

550,000 Citigroup Inc EUR 0.42% 24/05/2021 14,862,999 0.92%

Total United States 14,862,999 0.92%


Buy-Sell back Transactions: 6.15% (30 September 2019: 7.78%) Nominal Fair % of Net

Description Maturity Counterparty

Holding Value CZK Assets

CNB Bill 31/07/2020 Ceska Sporitelna, a.s.

100,000,000 100,000,000 6.15%

Total Buy-Sell back Transactions 100,000,000 6.15%

Total Financial Assets at fair value through profit or loss 1,492,540,678 91.77%

Interest Rate Swaps: (0.46%) (30 September 2019: (0.21%)) Nominal Fair % of Net

Description

Maturity Counterparty Holding Value CZK Assets

Interest Rate Swap 13/04/2027 Ceska Sporitelna, a.s. 1,800,000 (3,487,976) (0.22%)


Total Interest Rate Swaps

(7,440,905) (0.46%)



225,025,366 CZK 8,820,000 EUR 02/04/2020 (16,627,065) (1.02%)

5,099,900 CZK 200,000 EUR 02/04/2020 (379,747) (0.02%)

17,240,030 CZK 760,000 USD 14/04/2020 (1,736,832) (0.11%)

246,614,918 CZK 9,020,000 EUR 04/05/2020 (811,105) (0.05%)

Total Forward Foreign Exchange Contracts (19,554,749) (1.20%)


Total Financial Liabilities at fair value through profit or loss (26,995,654) (1.66%)

Total Net Financial Assets at fair value through profit or loss 1,465,545,024 90.11%


159,953,073 9.83%


895,330 0.06%

Total Value of Fund

1,626,393,427 100.00%


% of Total Assets


83.35%

(b) Buy-sell back instruments

5.99%

(c) Other assets

10.66%

100.00%

Conseq Invest plc


26

New Europe Bond Fund

Fair % of Net



Corporate Bonds


900,000 Sazka Group AS EUR 3.88% 15/02/2027 19,410,612 1.56%

Total Czech Republic 28,425,612 2.28%

Denmark: 1.19% (30 September 2019: 0.00%)

Corporate Bonds

700,000 Bidco NR Two EUR 7.00% 11/09/2023 14,862,601 1.19%

Total Denmark 14,862,601 1.19%

Germany: 1.27% (30 September 2019: 0.00%)

Corporate Bonds

700,000 Mutares EUR 6.00% 14/02/2024 15,821,479 1.27%

Total Germany 15,821,479 1.27%


Italy: 0.44% (30 September 2019: 0.00%)

Corporate Bonds

200,000 Saxa Gres SPA EUR 7.00% 10/07/2023 5,479,300 0.44%

Total Italy 5,479,300 0.44%


Corporate Bonds

10,000,000 ECM Real Estate Investments AG CZK 0.00% 30/03/2051 10,000 0.00%

Total Luxembourg 10,000 0.00%


Corporate Bonds

400,000 Azerion Holdings EUR 8.50% 17/03/2023 9,205,224 0.74%


800,000 Sand Hill Petro EUR 9.00% 13/04/2022 14,246,180 1.14%

Contingent Value Right


Total Netherlands 23,451,404 1.88%


Corporate Bonds

1,000,000 Okea AS USD 8.75% 11/12/2024 24,871,453 1.99%

Total Norway 24,871,453 1.99%

Conseq Invest plc


27

New Europe Bond Fund (continued)

Fair % of Net



Corporate Bonds

3,000,000 Bank Pol Kasa Opieki PLN 3.34% 16/10/2028 16,917,787 1.36%

3,300,000 Cyfrowy Polsat SA PLN 3.54% 24/04/2026 18,845,632 1.51%

2,900,000 Ghelamco Invest PLN 6.29% 28/02/2022 16,909,973 1.36%

4,500,000 PKO Bank Hipoteczny SA PLN 2.40% 18/05/2022 27,046,819 2.17%

Government Security

2,200,000 Poland Government Bond PLN 1.79% 25/01/2024 13,139,704 1.05%









Total Poland 468,163,328 37.54%

Romania: 0.00% (30 September 2018: 2.84%)

Slovakia: 1.64% (30 September 2019: 0.00%)

Corporate Bonds

770,000 Gevorkyan S.R.O EUR 4.70% 15/03/2024 20,462,446 1.64%

Total Slovakia 20,462,446 1.64%


Corporate Bonds

600,000 Bewi Group AB EUR 3.01% 22/11/2023 13,643,457 1.09%

Total Sweden 13,643,457 1.09%

Turkey: 5.98% (30 September 2019: 24.21%)

Corporate Bonds

3,000,000 Migros Ticaret A TRY 13.73% 24/02/2021 11,309,204 0.91%

1,500,000 Yasar Holdings AS USD 8.88% 06/05/2020 36,072,371 2.89%

Government Security

3,321,696 Turkey Government Bond TRY 2.70% 14/01/2026 12,149,779 0.97%



Total Turkey 74,579,301 5.98%

Conseq Invest plc


28


Fair % of Net


Ukraine: 23.26% (30 September 2019: 21.32%)

Government Security

50,000,000 Ukraine Government Bond UAH 9.79% 26/05/2027 28,043,882 2.25%




500,000 Ukraine Government Bond EUR 6.75% 20/06/2026 12,096,240 0.97%

1,500,000 Ukraine Government Bond USD 8.99% 01/02/2024 34,473,898 2.76%

2,250,000 Ukraine Government Bond USD 9.75% 01/11/2028 54,541,132 4.37%

Total Ukraine 290,138,695 23.26%

United States: 1.44% (30 September 2019: 1.22%)

Corporate Bonds

3,000,000 JP Morgan Chase + Co PLN 2.74% 16/06/2027 17,972,782 1.44%

Total United States 17,972,782 1.44%


Buy-Sell back Transactions: 8.02% (30 September 2019:

3.44%) Nominal

Fair % of Net

Description Maturity Counterparty Holding

Value CZK Assets

CNB Bill 31/07/2020 Ceska Sporitelna a.s. 100,000,000

100,000,000 8.02%

Total Buy-Sell back Transactions

100,000,000 8.02%

Total Financial Assets at fair value through profit or loss

1,097,881,858 88.02%

Interest Rate Swaps: (0.79%) (30 September 2019: 0.00%) Nominal Fair % of Net

Description Maturity Counterparty Holding Value CZK Assets


Total Interest Rate Swaps

(9,902,869) (0.79%)

Conseq Invest plc


29




41,885,679 CZK 1,650,000 EUR 02/04/2020 (3,321,394) (0.27%)

118,712,926 CZK 5,140,000 USD 03/04/2020 (9,629,649) (0.77%)

49,240,244 CZK 1,930,000 EUR 02/04/2020 (3,638,349) (0.29%)

19,657,823 CZK 770,000 EUR 06/04/2020 (1,440,827) (0.11%)

16,064,685 CZK 630,000 EUR 02/04/2020 (1,196,202) (0.10%)

4,868,560 CZK 190,000 EUR 02/04/2020 (337,106) (0.03%)

9,817,725 CZK 375,000 EUR 02/04/2020 (456,630) (0.04%)

130,962,911 CZK 4,790,000 EUR 04/05/2020 (430,731) (0.03%)

Total Forward Foreign Exchange Contracts

(20,450,888) (1.64%)


Total Financial Liabilities at fair value through profit or loss

(30,353,757) (2.43%)


1,067,528,101 85.59%


162,803,979 13.05%


16,887,775 1.36%

Total Value of Fund

1,247,219,855 100.00%


% of Total Assets


77.90%

(b) Buy-sell back instruments

7.81%

(c) Other assets

14.29%

100.00%

Conseq Invest plc

The accompanying notes form an integral part of the financial statements.

30

Statement of Comprehensive Income


Total

Bond New Europe Conservative New Europe 31 March

Fund Equity Fund Bond Fund Bond Fund 2020

Notes CZK CZK CZK CZK CZK

Income

Bond interest income 68,662,592 - 21,971,925 39,118,225 129,752,742

Dividend income - 3,683,219 - - 3,683,219

Interest and other income 284,951 35,070 123,371 125,740 569,132

Interest income from Buy-Sell back

operations 2,079,623 72,722 4,287,316 1,144,639 7,584,300

Net losses on financial assets and

financial liabilities at fair value through

profit or loss (211,317,283) (919,339,615) (50,530,859) (110,931,232) (1,292,118,989)

Total Investment Loss (140,290,117) (915,548,604) (24,148,247) (70,542,628) (1,150,529,596)

Expenses

Transaction costs - 2,909,252 - - 2,909,252

Investment manager fees 5 15,083,697 15,266,100 5,002,544 6,991,401 42,343,742

Depositary fees 5 1,274,348 2,132,811 787,876 672,406 4,867,441

Administrator & Transfer Agent fees 5 1,672,624 1,465,108 849,104 647,089 4,633,925

Performance fees 5 1,495,527 12,418,515 768,042 1,818,598 16,500,682

Legal fees 103,422 133,362 64,846 52,980 354,610

Directors' fees 5 263,541 257,544 145,429 103,214 769,728

Audit fees 150,754 167,231 74,913 69,437 462,335

Other expenses 12 538,358 529,665 315,325 239,579 1,622,927

Total Operating Expenses 20,582,271 35,279,588 8,008,079 10,594,704 74,464,642

Operating Loss for the financial

period (160,872,388) (950,828,192) (32,156,326) (81,137,332) (1,224,994,238)

Finance Costs

Dividend expense 3 (66,912) (3,693,943) (30,018) (211,214) (4,002,087)

Interest expense (8,364) (25,310) - (254) (33,928)

Interest expense on interest rate swap (102,981) - (53,695) - (156,676)

Total Finance Costs (178,257) (3,719,253) (83,713) (211,468) (4,192,691)

Less: withholding tax (349,563) (167,603) - (333,997) (851,163)

Decrease in Net Assets Attributable to

Redeemable Participating Shareholders at Bid

Market Prices (161,400,208) (954,715,048) (32,240,039) (81,682,797) (1,230,038,092)

Movement in Bid/Mid Adjustment

From bid prices to mid market prices 45,507,925 (9,273,090) 10,330,629 8,761,423 55,326,887


Redeemable Participating Shareholders at

Mid Market Prices (115,892,283) (963,988,138) (21,909,410) (72,921,374) (1,174,711,205)

There were no recognised gains or losses arising in the financial period other than as dealt with above.

In arriving at the results for the financial period, all amounts above relate to continuing operations.

Conseq Invest plc


31

Statement of Comprehensive Income


Total




Income

Bond interest income 61,006,773 - 21,271,315 45,078,532 127,356,620

Dividend income - 4,079,216 - - 4,079,216

Interest and other income 280,179 72,579 146,375 206,796 705,929

Interest income from Buy-Sell back

operations 1,197,405 - 2,451,712 - 3,649,117

Net gains on financial assets and

financial liabilities at fair value through

profit or loss 33,770,305 84,226,973 11,633 111,160,388 229,169,299

Total Investment Income 96,254,662 88,378,768 23,881,035 156,445,716 364,960,181

Expenses

Transaction costs 205,635 2,038,763 112,409 44,410 2,401,217

Investment manager fees 5 14,954,371 14,587,080 4,911,508 6,494,412 40,947,371

Depositary fees 5 1,274,684 1,880,112 760,915 734,329 4,650,040

Administrator & Transfer Agent fees 5 1,477,747 1,422,857 859,629 635,538 4,395,771

Performance fees 5 1,251,645 5,072,908 1,364,821 - 7,689,374

Legal fees 682,114 634,513 368,917 252,672 1,938,216

Directors' fees 5 103,319 204,693 368,913 89,979 766,904

Audit fees 136,032 112,491 64,462 34,344 347,329

Other expenses 12 596,008 516,096 445,388 295,886 1,853,378

Total Operating Expenses 20,681,555 26,469,513 9,256,962 8,581,570 64,989,600

Operating Profit for the financial

period 75,573,107 61,909,255 14,624,073 147,864,146 299,970,581

Finance Costs

Dividend expense 3 (52,691) - (44,700) (2,812,573) (2,909,964)

Interest expense (2,459) (17,797) - (81,433) (101,689)

Total Finance Costs (55,150) (17,797) (44,700) (2,894,006) (3,011,653)

Add/(less): withholding tax 345,646 2,722,406 103,500 - 3,171,552

Increase in Net Assets Attributable to


Market Prices 75,863,603 64,613,864 14,682,873 144,970,140 300,130,480

Movement in Bid/Mid Adjustment

From bid prices to mid market prices 4,109,757 (5,520,428) 1,009,133 (1,310,478) (1,712,016)


Redeemable Participating Shareholders at

Mid Market Prices 79,973,360 59,093,436 15,692,006 143,659,662 298,418,464

There were no recognised gains or losses arising in the financial period other than as dealt with above.

In arriving at the results for the financial period, all amounts above relate to continuing operations.

Conseq Invest plc


32

Statement of Financial Position

As at 31 March 2020

Total




Current Assets

Financial assets at fair value through

profit or loss 14 3,111,309,425 2,813,775,329 1,492,540,678 1,097,881,858 8,515,507,290

Cash and cash equivalents 7 125,653,886 81,636,988 159,953,073 162,803,979 530,047,926

Due from shareholders 3,918,420 13,170,773 929,318 865,115 18,883,626

Bond interest receivable 39,903,113 - 16,616,212 19,062,427 75,581,752

Interest receivable from Buy-Sell back

operations - - 66,111 66,111 132,222

Spot contracts 1,580,250 - 634,019 352,065 2,566,334

Total Assets 3,282,365,094 2,908,583,090 1,670,739,411 1,281,031,555 9,142,719,150

Current Liabilities

Financial liabilities at fair value through

profit or loss 14 75,663,827 20,760,552 26,995,654 30,353,757 153,773,790

Due to shareholders 11,886,737 607,964 15,302,714 1,411,999 29,209,414

Investment manager fees payable 5 2,475,319 2,149,132 804,099 1,123,406 6,551,956

Performance fees payable 5 32,271 2,506 3,117 2,453 40,347

Administrator & Transfer Agent fees

payable 5 731,683 725,945 427,413 312,949 2,197,990

Depositary fees payable 5 725,101 704,458 439,300 340,789 2,209,648

Audit fees payable 162,080 158,391 89,438 63,478 473,387

Directors' fees payable 5 149,783 117,109 69,679 48,806 385,377

Other expenses payable 13 364,474 353,889 214,570 154,063 1,086,996

Liabilities (excluding net assets

attributable to Redeemable

Participating Shareholders) 92,191,275 25,579,946 44,345,984 33,811,700 195,928,905

Net Assets Attributable to

Redeemable Participating

Shareholders at Bid

Market Prices 3,190,173,819 2,883,003,144 1,626,393,427 1,247,219,855 8,946,790,245

Bid/Mid Adjustment

From bid prices to mid market prices 62,026,553 4,853,579 16,340,368 13,127,410 96,347,910



Shareholders at Mid Market Prices 3,252,200,372 2,887,856,723 1,642,733,795 1,260,347,265 9,043,138,155

Conseq Invest plc

The accompanying notes form an integral part of the financial statements

33

Statement of Financial Position

As at 30 September 2019

Total




Current Assets

Financial assets at fair value through

profit or loss 14 3,499,620,623 3,613,926,614 1,724,173,094 1,395,454,963 10,233,175,294

Cash and cash equivalents 7 94,211,284 28,672,093 68,720,408 40,419,915 232,023,700

Sales awaiting settlement - 8,668,434 - - 8,668,434

Due from shareholders 1,635,713 1,677,474 422,627 556,054 4,291,868

Dividend receivable - 2,905,755 - - 2,905,755

Bond interest receivable 34,843,103 - 17,314,733 21,986,524 74,144,360

Interest receivable from Buy-Sell back

operations - - 106,167 37,917 144,084

Total Assets 3,630,310,723 3,655,850,370 1,810,737,029 1,458,455,373 10,555,353,495

Current Liabilities


profit or loss 14 8,626,674 195,333 4,027,123 115,145 12,964,275

Due to shareholders 4,078,630 852,768 1,282,902 1,932,040 8,146,340

Purchase awaiting settlement 33,560,800 26,265,091 - - 59,825,891

Investment manager fees payable 5 2,463,962 2,555,651 743,435 1,139,073 6,902,121

Performance fees payable 5 9,499,362 4,440,147 3,106,867 2,017,287 19,063,663

Administrator & Transfer Agent fees

payable 5 497,552 508,666 265,255 215,617 1,487,090

Depositary fees payable 5 493,116 492,411 279,153 233,405 1,498,085

Audit fees payable 333,599 317,667 176,840 124,941 953,047

Directors' fees payable 5 160,048 132,277 83,625 52,748 428,698

Dividend payable - - 35,625 - 35,625

Spot contracts - - 28,951 - 28,951

Other expenses payable 13 299,150 265,343 191,557 114,399 870,449

Liabilities (excluding net assets

attributable to Redeemable

Participating Shareholders) 60,012,893 36,025,354 10,221,333 5,944,655 112,204,235



Shareholders at Bid

Market Prices 3,570,297,830 3,619,825,016 1,800,515,696 1,452,510,718 10,443,149,260

Bid/Mid Adjustment

From bid prices to mid market prices 16,518,628 14,126,669 6,009,739 4,365,987 41,021,023



Shareholders at Mid Market Prices 3,586,816,458 3,633,951,685 1,806,525,435 1,456,876,705 10,484,170,283

Conseq Invest plc

The accompanying notes form an integral part of the financial statements

34

Statement of Changes in Net Assets Attributable to Redeemable

Participating Shareholders


Total



CZK CZK CZK CZK CZK

Net Assets Attributable to Redeemable

Participating Shareholders as at start of

financial period at Bid Market Prices 3,570,297,830 3,619,825,016 1,800,515,696 1,452,510,718 10,443,149,260

Shares Issued 395,100,796 489,619,531 431,928,748 239,766,156 1,556,415,231

Shares Redeemed (613,824,599) (271,726,355) (573,810,978) (363,374,222) (1,822,736,154)



Market Prices (161,400,208) (954,715,048) (32,240,039) (81,682,797) (1,230,038,092)


Participating Shareholders as at end of


Conseq Invest plc


35

Statement of Changes in Net Assets Attributable to Redeemable

Participating Shareholders


Total



CZK CZK CZK CZK CZK


Participating Shareholders as at start of


Shares Issued 226,806,873 202,518,438 105,249,891 63,497,353 598,072,555

Shares Redeemed (354,810,106) (141,809,869) (298,530,224) (157,508,592) (952,658,791)



Market Prices 75,863,603 64,613,864 14,682,873 144,970,140 300,130,480


Participating Shareholders as at end of


Conseq Invest plc

Notes to the Financial Statements

31 March 2020

36

1. Significant Accounting Policies

Basis of Accounting and Presentation of Financial Statements

The interim report and condensed unaudited financial statements of Conseq Invest plc (the

"Company") have been prepared on a going concern basis and in accordance with FRS 104 Interim

Financial Reporting (“FRS 104”) issued by the Financial Reporting Council, and in accordance

with Irish statute comprising the European Communities (Undertakings for Collective Investment in

Transferable Securities) (“UCITS”) Regulations 2011 (as amended) (the “UCITS Regulations”) and

the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (UCITS) Regulations

2019 (the “Central Bank UCITS Regulations”).

The comparative financial period of the statement of financial position is 30 September 2019. The

comparative financial period of the statement of comprehensive income and statement of changes in

net assets attributable to holders of redeemable participating shares is the six month financial period

ended 31 March 2019.

The interim report and condensed unaudited financial statements do not contain all of the

information and disclosures required in the full annual financial statements and should be read in

conjunction with the audited financial statements for the financial year ended 30 September 2019

which have been prepared in accordance with FRS 102 The Financial Reporting Standard

applicable in the UK and Ireland (“FRS 102”), and Irish statute comprising the Companies Act

2014, the UCITS Regulations and the Central Bank UCITS Regulations.

The preparation of financial statements in conformity with FRS 104 and FRS 102 requires the use of

certain critical accounting estimates. It also requires management to exercise its judgements in the

process of applying the Company’s accounting policies. Actual results could differ from those

estimates and the difference could be material.

The Company has availed of the exemption available to entities not required to present a cash flow

statement in their annual financial statements under FRS 104 not to prepare a cash flow statement.

The accounting policies applied in these interim financial statements are the same as those applied

in the last annual financial statements.

There are currently 4 active sub-funds of the Company at the reporting date: Conseq Invest Bond

Fund ("Bond Fund"), Conseq Invest New Europe Equity Fund ("New Europe Equity Fund"),

Conseq Invest Conservative Bond Fund ("Conservative Bond Fund") and Conseq Invest New

Europe Bond Fund ("New Europe Bond Fund"), collectively referred to as the “Funds”.

Conseq Invest plc

Notes to the Financial Statements (continued)

31 March 2020

37

2. Significant judgements and estimates

The judgements, estimates and assumptions applied in preparing the interim financial statements are

consistent with those described in the last annual financial statements.

3. Dividends Paid/Payable

The intention of the Bond Fund is to declare at least semi-annually a dividend that will be

determined with the objective of distributing the majority of net revenue, if any, attributable to the

Class D Shares. The formula for calculating the dividends is set out in the Bond Fund’s Supplement

to the Prospectus. In respect of this Fund, a dividend amounting to CZK 66,912 (31 March 2019:

CZK 52,691) was declared during the financial period ended 31 March 2020 attributable to the

Class D Shareholders.

The intention of the New Europe Equity Fund is to declare at least annually a dividend that will be

determined with the objective of distributing the majority of net revenue, if any, attributable to the

Class D Shares. The formula for calculating the dividends is set out in the New Europe Equity

Fund’s Supplement to the Prospectus. In respect of this Fund, a dividend amounting to CZK

3,693,943 (31 March 2019: CZK Nil) was declared during the financial period ended 31 March

2020 attributable to the Class D Shareholders.

The Conservative Bond Fund intends to declare at least quarterly a dividend that will be determined

with the objective of distributing the majority of net revenue, if any, attributable to the Class D

Shares. The formula for calculating the dividend payable on the Class D Shares of the Conservative

Bond Fund is set out in the Conservative Bond Fund’s Supplement to the Prospectus. Dividends

totalling CZK 30,018 (31 March 2019: CZK 44,700) were declared during the financial period

ended 31 March 2020 in respect of the Conservative Bond Fund’s Class D Shares.

The intention of the New Europe Bond Fund is to declare at least semi-annually a dividend that will

be determined with the objective of distributing the majority of net revenue, if any, attributable to

the Class D Shares. The formula for calculating the dividends is set out in the New Europe Bond

Fund’s Supplement to the Prospectus. Dividends totalling CZK 211,214 (31 March 2019: CZK

2,812,573) were declared during the financial period ended 31 March 2020 in respect of the New

Europe Bond Fund’s Class D Shares.

4. Exchange rates

The financial statements are prepared in CZK. Exchange rates used in the preparation of the

financial statements as at 31 March 2020 were as follows:

31 March 2020 Exchange rate to CZK EUR 27.3965 RON 5.6698

HUF 0.0760 GBP 30.9598

PLN 6.0113 USD 24.9682

TRY 3.7887 RSD 0.2332

SEK 2.5201 NOK 2.3777

HRK 3.5931 UAH 0.9039

Exchange rates used in the preparation of the financial statements as at 30 September 2019 were as

follows:

30 September 2019 Exchange rate to CZK EUR 25.8158 RON 5.4432

HUF 12.9751 GBP 29.1809

PLN 5.9065 USD 23.6798

TRY 4.1938 RSD 4.5500

SEK 2.4084 NOK 2.6062

HRK 3.4836 UAH 1.0178

Conseq Invest plc


31 March 2020

38

5. Fees and Expenses

Investment Manager Fee

The Investment Manager is entitled to charge a fee equal to a percentage of the NAV of each Fund

payable monthly in arrears. The Investment Manager will be responsible for the fees and expenses

of the investment advisers, and is entitled to be paid its reasonable out-of-pocket expenses (apart

from the fees and expenses of investment advisers). Total investment manager fees charged during

the financial period and accrued at the reporting date are disclosed in the statement of

comprehensive income and the statement of financial position respectively.

The Investment Manager’s fee charged to the Bond Fund is 1.00% per annum on Class A Shares,

0.70% per annum on Class B Shares, and 0.70% per annum on Class D Shares. The New Europe

Equity Fund is charged 1.15% per annum on Class A Shares, 0.75% per annum on Class B Shares,

0.75% per annum on Class D Shares and 0.60% per annum on Class I Shares. The fee charged to the

Conservative Bond Fund will not exceed the maximum fee of 0.65% per annum of Class A Shares

and 0.65% per annum of Class D Shares. Currently the fee charged on both Classes of shares is

0.50% per annum. The Investment Manager’s fee charged to the New Europe Bond Fund is 1.00%

per annum on Class A Shares and 0.70% per annum on Class D Shares.

Performance Fee

The Investment Manager is also entitled to receive a performance fee. For each Share Class, the

performance fee will be calculated by taking the Net Gain per Share of the relevant Share Class for

the applicable Performance Period, and multiplying the resultant figure by 8% (the “Performance

Fee”).

Any Performance Fee accrued in respect of Shares redeemed during a Performance Period will be

realised and become payable at the point of redemption. The Performance Fee will be accrued daily

and payable annually at the end of the relevant Performance Period. The Performance Fee shall be

calculated independently by the Administrator and verified by the Depositary.

For the avoidance of doubt, a Performance Fee is only payable on the increase over the High Water

Mark. This means that a Performance Fee shall accrue only in the event that the Ending NAV per

Share for the applicable Performance Period exceeds the previous High Water Mark.

Total performance fees charged during the period and accrued at the reporting date are disclosed in

the statement of comprehensive income and the statement of financial position respectively.

Depositary Fees

The Depositary is entitled to charge a tier structured fee per annum as set out in the below table

based on the NAV of each Fund subject to a minimum of EUR17,500 per Fund per annum.

The Depositary is also entitled to charge transaction fees and is entitled to be reimbursed for all sub-

custodians’ fees, both of which are at normal commercial rates, and for all expenses incurred by it or

by its sub-custodians on behalf of each Fund.

The table set out below details the tier structured fee for the Company:

Up to EUR150 million 0.020%

Above EUR150 million 0.015%

Total depositary fees charged during the period and accrued at the reporting date are disclosed in the

statement of comprehensive income and the statement of financial position respectively.

Conseq Invest plc


31 March 2020

39

5. Fees and Expenses (continued)

Administration and Transfer Agent Fees

The Administrator is entitled to charge a tier structured fee per annum as set out in the below table

of the NAV of each Fund subject to a minimum of EUR22,500 per Fund per annum.

The Administrator is also entitled to transactional fees and to reports compilation fees (at normal

commercial rates). The fee accrues daily and is paid monthly in arrears out of the assets of the

Company based on the NAV of each Fund as at the last Dealing Day of each month. The

Administrator is also entitled to be reimbursed any expenses incurred by it on behalf of each Fund.

The table set out below details the tier structured fee for the Company:

Up to EUR150 million 0.07%

From EUR150 million to EUR300 million 0.06%

Over EUR300 million 0.04%

Total administration and transfer agent fees charged during the period and accrued at the reporting

date are disclosed in the statement of comprehensive income and the statement of financial position

respectively.

Directors’ Fees and Expenses

The Directors shall be entitled to a fee and remuneration for their services at a rate to be determined

from time to time by the Directors provided that such fee will not exceed the sum of EUR20,000 per

annum per Director without the approval of the Board of Directors of the Company. The Directors

may also be paid, inter alia, for travelling, hotel and other expenses properly incurred by them in

attending meetings of the Directors or in connection with the business of the Company.

Total directors' fees charged during the financial period and accrued at the reporting date are

disclosed in the statement of comprehensive income and the statement of financial position

respectively.

6. Soft Commission Arrangements

The Investment Manager returned to the Funds listed below incentive fees relating to bond

placements held during the financial period. The table below details the bonds from which the fees

were earned and the amounts received.

Date ISIN Description

Bond

Fund

CZK

Conservative

Bond Fund

CZK

11 October 2019 CZ0003704900

EQUA BANK AS

4.06% 18/09/2029 175,500 -

12 December 2019 CZ0003520181

T-CENTRUM CZ

6.72% 30/10/2024 518,000 224,000

30 December 2019 CZ0003523813

ZDR INVESTMENTS

0% 19/06/2020 17,066 17,066

There were no soft commission arrangements in place during the financial period ended 31 March

2019.

Conseq Invest plc


31 March 2020

40

7. Cash and Cash Equivalents

Cash and cash equivalents held with the Depositary and Ceska Sporitelna, a.s., as at:

31 March 2020

Bond Fund

New Europe

Equity Fund

Conservative

Bond Fund

New Europe

Bond Fund Total

CZK CZK CZK CZK CZK

Cash

BNP Paribas Securities

Services, Dublin

Branch 45,337,796 65,473,053 135,041,208 137,292,114 383,144,171

Cash collateral

Ceska Sporitelna, a.s. 80,316,090 16,163,935 24,911,865 25,511,865 146,903,755

125,653,886 81,636,988 159,953,073 162,803,979 530,047,926

30 September 2019

Bond Fund

New Europe

Equity Fund

Conservative

Bond Fund

New Europe

Bond Fund Total

CZK CZK CZK CZK CZK

Cash

BNP Paribas Securities

Services, Dublin

Branch 86,411,284 28,672,093 66,120,408 40,419,915 221,623,700

Cash collateral

Ceska Sporitelna, a.s. 7,800,000 - 2,600,000 - 10,400,000

94,211,284 28,672,093 68,720,408 40,419,915 232,023,700

8. Transactions involving Connected Persons

Chapter 10 of the Central Bank UCITS Regulations headed ‘Transactions involving Connected

Persons’ states in Regulation 43 that a responsible person shall ensure that any transaction between

a UCITS and the management company or depositary to a UCITS; and the delegates or sub-

delegates of such a management company or depositary (excluding any non-group company sub-

custodians appointed by a depositary); and any associated or group company of such a management

company, depositary, delegate or sub-delegate (“connected persons”) is conducted at arm’s length

and is in the best interests of the shareholders of the UCITS.

The Board of Directors of the Company is satisfied that there are arrangements (evidenced by

written procedures) in place, to ensure that the obligations set out in Regulation 43 of the Central

Bank Regulations are applied to all transactions with connected persons; and the Board of Directors

is satisfied that transactions with connected persons entered into during the financial period

complied with the obligations set out in Regulation 43.

9. Related Parties

The Directors and the Investment Manager are related parties under FRS 102 “Related Party

Disclosures”. Mr. Jan Martinec, Mr. Richard Siuda and Mr. Ondřej Matuška, who are Directors of

the Company at the reporting date, are also Directors of the Investment Manager. Ms. Veronika

Juvova, a consultant of the Investment Manager and also a Director of the Company, provides legal

and compliance services to the Investment Manager.

Investment manager fees and performance fees charged during the financial period and accrued at

the reporting date are disclosed in the statement of comprehensive income and the statement of

financial position respectively.

Directors’ fees charged during the financial period and accrued at the reporting date are disclosed in

the statement of comprehensive income and the statement of financial position respectively.

Conseq Invest plc


31 March 2020

41

9. Related Parties (continued)

The Board of Directors appointed the Investment Manager as a Competent Person, pursuant to the

Investment Management Agreement between the Company and the Investment Manager dated

1 May 2018. The Portfolio Administration department of the Investment Manager responsible for

action as the Competent Person is independent from the Portfolio Management department

responsible for acting as the Investment Manager. Securities priced by the Competent Person at the reporting date are disclosed in note 14.

KB Associates is also deemed a related party. Ms. Andrea Oman is an employee and a shareholder

of KB Associates and is also a Director of the Company. KB Associates provides consultancy,

MLRO and company secretarial services to the Company. KB Associates fees charged during the

financial period and accrued at the reporting date are disclosed as consultancy fees in note 12 and

note 13 respectively.

Directors’ and Secretary’s interests

The table below provides details of shares held by related parties as at:

31 March 2020

Name Bond Fund

New Europe

Equity Fund

Conservative

Bond Fund

New Europe

Bond Fund

Irena Siudova 49.8945 751.9829 - -

Richard Siuda - - 710.3585 575.3369

Ondřej Matuška - 180.2645 - -

The table below provides details of shares held by related parties as at 30 September 2019:

30 September 2019

Name Bond Fund

New Europe

Equity Fund

Conservative

Bond Fund

New Europe

Bond Fund

Irena Siudova 49.8945 751.9829 - -

Richard Siuda - - 710.3585 575.3369

Ondřej Matuška - 180.2645 - -

Jan Vedral1 - - - 29,613.3516

1Jan Vedral is a 49% shareholder of both the Investment Manager and Conseq Investment Management, a.s., (the

“Distributor/Promoter”). Jan Vedral can therefore be identified as ultimate beneficiary holder of both the Investment Manager

and Distributor/Promoter.

10. Efficient Portfolio Management

The Company may, on behalf of each Fund and subject to the conditions and within the limits laid

down by the Central Bank, employ techniques and instruments relating to transferable securities for

efficient portfolio management purposes. Transactions for the purposes of efficient portfolio

management may be undertaken with a view to achieving a reduction in risk, a reduction in costs or

an increase in capital or income returns to a Fund and may not be speculative in nature. These

techniques and instruments may include investments in financial derivative instruments (“FDI”)

such as futures (which may be used to manage interest rate risk), options (which may be used to

achieve cost efficiencies, for example where the acquisition of the option is more cost effective than

purchasing of the underlying asset), swaps and forward currency contracts and foreign exchange

options (which may be used to manage currency risk). Such techniques and instruments are set out

in Appendix II of the Prospectus. New techniques and instruments may be developed which may be

suitable for use by the Company and the Company (subject as aforesaid) may employ such

techniques and instruments. A Fund may enter into stock lending, repurchase and/or reverse

repurchase and sell/buy-back agreements for the purposes of efficient portfolio management in

accordance with the provisions of Appendix II of the Prospectus.

Conseq Invest plc


31 March 2020

42

10. Efficient Portfolio Management (continued)

During the financial period ended 31 March 2020 and the financial year ended 30 September 2019

forward foreign exchange contracts, interest rate swaps, buy-sell back transactions, and contingent

value rights were entered into for the purpose of EPM. Details of all open transactions at the

reporting date are disclosed in the schedule of investments and note 14.

It is not the intention to leverage the Funds as a result of investment in FDI. In any case, global

exposure and leverage as a result of their investment in FDI, as measured using the commitment

approach, shall not exceed 100% of the NAV of the respective Fund on a permanent basis. The

commitment approach is a standard methodology used to calculate the gross notional exposure and

global exposure (net leverage/gearing) arising from the derivatives held by each Fund.

Gains and losses arising from the use of efficient portfolio management techniques and instruments

are included in the statement of comprehensive income in the financial period in which they arise

within net gains/(losses) on financial assets and financial liabilities at fair value through profit or

loss.

11. Share Capital

Authorised Share Capital

On incorporation the authorised Share Capital of the Company was CZK 1,500,000 divided into

1,500,000 Subscriber Shares of a par value of CZK 1 each and 500,000,000,000 shares of no par

value initially designated as unclassified shares. The unclassified shares are available for issue as

shares of classes within the Funds.

There are seven Subscriber Shares currently in issue which are held by the Investment Manager and

nominees of the Investment Manager. These Subscriber Shares may be repurchased by the Company

at any time. The repurchase price will be CZK 1 per Subscriber Share.

The Company has designated four Share Classes in the Company: Class A Shares, Class B Shares,

Class D Shares and Class I Shares. None of the share classes were hedged at the reporting date

(2019: Nil).

Share Transactions for the financial period ended 31 March 2020

Bond Fund

New Europe

Equity Fund

Conservative

Bond Fund

New Europe

Bond Fund

Shares Shares Shares Shares

Shares in Issue at start of financial period

Class A 7,412,037 3,985,502 13,373,371 8,308,346

Class B 8,518,346 9,551,830 - -

Class D 77,357 3,555,825 68,933 2,579,048

Class I - 500 - -

Shares Issued

Class A 926,312 323,752 3,196,165 1,550,847

Class B 834,046 1,928,323 - -

Class D 773 186,668 5,796 3,297

Shares Redeemed

Class A (956,073) (197,352) (4,264,031) (1,208,521)

Class B (1,765,509) (598,702) - -

Class D (24,227) (2,450,548) (9,834) (2,546,050)

Shares in Issue at end of financial period

Class A 7,382,276 4,111,902 12,305,505 8,650,672

Class B 7,586,883 10,881,451 - -

Class D 53,903 1,291,945 64,895 36,295

Class I - 500 - -

Conseq Invest plc


31 March 2020

43

11. Share Capital (continued)

Net Asset Value Per Redeemable Participating Share as at 31 March 2020

Bond Fund

New Europe

Equity Fund

Conservative Bond

Fund

New Europe Bond

Fund Class A CZK 206.6765 CZK 180.1741 CZK 131.7052 CZK 143.9304

Class B CZK 218.8202 CZK 194.3034 - -

Class D CZK 79.1802 CZK 21.4764 CZK 87.7516 CZK 58.5615

Class I - EUR 6.9600 - -

Share Transactions for the financial period ended 31 March 2019

Bond Fund

New Europe

Equity Fund

Conservative

Bond Fund

New Europe

Bond Fund

Shares Shares Shares Shares

Shares in Issue at start of financial period

Class A 7,004,929 3,783,495 15,907,442 9,242,277

Class B 10,028,136 8,976,081 - -

Class D 86,978 3,020,989 58,047 2,452,113

Class I - 500 - -

Shares Issued

Class A 789,075 376,767 795,953 453,563

Class B 269,496 390,778 - -

Class D 609 268,972 354 43,735

Class I - - - -

Shares Redeemed

Class A (697,418) (163,142) (2,260,534) (1,168,838)

Class B (929,323) (385,370) - -

Class D (13,315) (70,318) - (7,661)

Class I - - - -

Shares in Issue at end of financial period

Class A 7,096,586 3,997,120 14,442,861 8,527,002

Class B 9,368,309 8,981,489 - -

Class D 74,272 3,219,643 58,401 2,488,187

Class I - 500 - -

Net Asset Value Per Redeemable Participating Share as at 30 September 2019

Bond Fund

New Europe

Equity Fund

Conservative Bond

Fund

New Europe Bond

Fund Class A CZK 217.1585 CZK 245.7368 CZK 134.1698 CZK 153.2991

Class B CZK 229.3911 CZK 264.5234 - -

Class D CZK 86.3254 CZK 31.9554 CZK 90.1244 CZK 69.3468

Class I - EUR 10.0480 - -

Conseq Invest plc


31 March 2020

44

12. Other Expenses


Bond New Europe Conservative New Europe

Fund Equity Fund Bond Fund Bond Fund Total

CZK CZK CZK CZK CZK

Director insurance fees 48,315 47,218 26,661 18,923 141,117

Directors' expenses 17,924 17,028 10,285 6,936 52,173

FATCA investor services fees 8,126 7,942 4,484 3,180 23,732

Financial regulator fees 20,804 20,376 11,971 8,842 61,993

Financial reporting fees 27,052 23,356 14,224 12,351 76,983

Paying agent fees 53,734 51,795 45,155 45,215 195,899

Translation fees 6,459 6,447 3,599 2,544 19,049

Oekb fees 4,391 4,291 2,424 1,722 12,828

EU Savings Directive (EUSD)

fees 25,443 22,671 12,239 10,706 71,059

PWC Austria fees for Austrian

tax calculation 18,887 18,459 10,423 7,398 55,167

Consultancy fees 307,223 310,082 173,860 121,762 912,927

538,358 529,665 315,325 239,579 1,622,927


. Bond New Europe Conservative New Europe


CZK CZK CZK CZK CZK

Director insurance fees 50,022 46,530 27,054 18,529 142,135

FATCA investor services fees 6,610 6,182 3,535 2,473 18,800

Financial regulator fees 13,068 12,250 7,717 5,696 38,731

Financial reporting fees 19,553 23,800 19,388 19,484 82,225

Directors’ expenses 11,044 10,112 5,945 4,144 31,245

Paying agent fees 52,451 52,226 44,460 45,794 194,931

Translation fees 4,770 4,371 2,637 1,714 13,492

Consultancy fees 438,490 360,625 334,652 198,052 1,331,819

596,008 516,096 445,388 295,886 1,853,378

Conseq Invest plc


31 March 2020

45

13. Other Expenses Payable

As at 31 March 2020



CZK CZK CZK CZK CZK

FATCA investor services fees (10,902) (12,021) (5,896) (4,806) (33,625)

Financial reporting fees (9,651) (9,651) (9,651) (9,651) (38,604)

Financial regulator fees (40,766) (39,624) (25,735) (15,720) (121,845)

Legal fees (52,797) (50,518) (30,132) (20,432) (153,879)

Director insurance fees (56,612) (55,578) (30,840) (22,247) (165,277)

Paying agent fees (15,386) (13,790) (11,043) (9,661) (49,880)

Directors' expenses (8,800) (8,420) (5,022) (3,406) (25,648)

Consultancy fees (128,562) (120,907) (72,945) (49,492) (371,906)


fees (9,581) (12,763) (6,381) (6,383) (35,108)

Translation fees (1,492) (1,347) (837) (571) (4,247)


tax calculation (29,925) (29,270) (16,088) (11,694) (86,977)

(364,474) (353,889) (214,570) (154,063) (1,086,996)




CZK CZK CZK CZK CZK

Interest Payable - - (26,338) - (26,338)

FATCA investor services fees (2,776) (4,080) (1,412) (1,625) (9,893)

Financial reporting fees (6,527) (6,527) (6,527) (6,527) (26,108)

Financial regulator fees (21,484) (20,780) (15,094) (8,169) (65,527)

Legal fees (84,072) (51,316) (43,689) (20,168) (199,245)

Director insurance fees (8,297) (8,360) (4,179) (3,324) (24,160)

Paying agent fees (11,495) (10,801) (8,966) (8,648) (39,910)

Directors' expenses (2,189) (2,206) (1,103) (878) (6,376)

Consultancy fees (149,516) (146,485) (76,765) (58,189) (430,955)


fees (6,477) (8,637) (4,318) (4,318) (23,750)

Translation fees (1,500) (1,465) (763) (589) (4,317)


tax calculation (4,817) (4,686) (2,403) (1,964) (13,870)

(299,150) (265,343) (191,557) (114,399) (870,449)

Conseq Invest plc


31 March 2020

46

14. Fair value of Financial Instruments

The Funds are required to classify fair value measurements using a fair value hierarchy that reflects

the significance of the inputs used in making the measurements. The fair value hierarchy has the

following levels:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).

• Inputs other than quoted prices included within Level 1 that are observable for the asset or

liability, either directly (as prices) or indirectly (derived from prices) (Level 2).

• Inputs for the asset or liability that are not based on observable market data (that is, unobservable

inputs) (Level 3).

The level in the fair value hierarchy within which the fair value measurement is categorised in its

entirety is determined on the basis of the lowest level input that is significant to the fair value

measurement in its entirety. For this purpose, the significance of an input is assessed against the fair

value measurement in its entirety. If a fair value measurement uses observable inputs that require

significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement.

Assessing the significance of a particular input to the fair value measurement in its entirety requires

judgement, considering factors specific to the asset or liability.

The following table analyses within the fair value hierarchy the Funds’ financial assets and financial

liabilities measured at fair value:

As at 31 March 2020

Bond Fund

Level 1 Level 2 Level 3

Financial assets at fair value through Profit

or Loss CZK CZK CZK

Government Bonds - 1,010,165,660 -

Corporate Bonds - 1,753,746,381 328,929,3841

Municipal Bonds - 18,468,000 -

Total - 2,782,380,041 328,929,384


Profit or Loss

Derivatives - (75,663,827) -

Total - (75,663,827) -

1Includes the corporate bond New World Resources NV and the contingent value right on New World Resources NV which

both had a nil market value at the reporting date.

Conseq Invest plc


31 March 2020

47

14. Fair value of Financial Instruments (continued)


liabilities measured at fair value (continued):

As at 31 March 2020




or Loss CZK CZK CZK

Equities 2,802,892,777 10,062,000 820,552

Total 2,802,892,777 10,062,000 820,552


Profit or Loss

Derivatives - (20,760,552) -

Total - (20,760,552) -




or Loss CZK CZK CZK

Government Bonds - 441,049,600 -

Corporate Bonds - 762,205,085 189,285,993

Buy-Sell back operations - - 100,000,000

Total - 1,203,254,685 289,285,993


Profit or Loss

Derivatives - (26,995,654) -

Total - (26,995,654) -




or Loss CZK CZK CZK


Corporate Bonds - 265,104,537 26,997,7821

Buy-Sell back operations -

100,000,000

Total - 970,884,076 126,997,782


Profit or Loss

Derivatives - (30,353,757) -

Total - (30,353,757) -



Conseq Invest plc


31 March 2020

48



liabilities measured at fair value:


Bond Fund



or Loss CZK CZK CZK


Corporate Bonds - 1,985,384,048 274,771,5161

Municipal Bonds - 18,534,600 -

Derivatives - 1,316,614 -

Total - 3,224,849,107 274,771,516


Profit or Loss

Derivatives - (8,626,674) -

Total - (8,626,674) -




or Loss CZK CZK CZK

Equities 3,603,347,227 10,003,500 575,887

Total 3,603,347,227 10,003,500 575,887


Profit or Loss

Derivatives - (195,333) -

Total - (195,333) -



Conseq Invest plc


31 March 2020

49



liabilities measured at fair value (continued):





or Loss CZK CZK CZK


Corporate Bonds - 738,088,853 177,056,999


Derivatives - 563,092 -

Total - 1,407,116,095 317,056,999


Profit or Loss

Derivatives - (4,027,123) -

Total - (4,027,123) -




or Loss CZK CZK CZK


Corporate Bonds - 164,921,823 17,914,4141


Derivatives - 420,166 -

Total - 1,327,540,549 67,914,4141


Profit or Loss

Derivatives - (115,145) -

Total - (115,145) -

1Includes the corporate bond New World Resources NV and the contingent value right on New

World Resources NV which both had a nil market value at the reporting date.

Transfers between levels from a financial reporting perspective occur at the start of the financial

period.

There were no transfers between Level 1 and Level 2 investments during the financial period ended

31 March 2020 or the financial period ended 31 March 2019.

Conseq Invest plc


31 March 2020

50


The changes in investments measured at fair value for which Level 3 inputs have been used to

determine fair value during the financial period ended 31 March 2020 are as follows:

Level 3 Reconciliation

For the financial period ended 31 March 2020:

New Europe Conservative New Europe

Description Bond Fund Equity Fund Bond Fund Bond Fund

CZK CZK CZK CZK

Opening Balance 274,771,516 575,887 317,056,999 67,914,414

Purchases 91,707,255 - 84,055,365 60,000,000

Sales (25,491,066) - (108,408,146) -

(Losses)/gains recognised in

profit and loss (12,058,321) 244,665 (3,418,225) (916,632)

Closing Balance 328,929,384 820,552 289,285,993 126,997,782

For the financial period ended 31 March 2019

New Europe Conservative New Europe

Description Bond Fund Equity Fund Bond Fund Bond Fund

CZK CZK CZK CZK

Opening Balance 381,848,583 1,369,432 520,815,972 17,887,865

Purchases 113,495,829 - 52,171,351 -

Sales (160,000,000) - (215,246,000) -

Gains/(losses) recognised in

profit and loss 2,637,513 (1,088,608) 2,557,140 22,859

Closing Balance 337,981,925 280,824 360,298,463 17,910,724

Level 3 securities include (i) securities priced by Conseq Investment Management, a.s. (the

“Competent Person”) and (ii) receivables and payables from repo operations (sell/buy, buy/sell,

reverse repo, repo).

With regards to (i) the Competent Person has been appointed by the Board and is a related party to

the Company, being the parent company to Conseq Investicni spolecnost, a.s. the Investment

Manager. The Competent Person acts on an arms-length basis. All valuations provided for these

assets are fully transparent and attestable and the basis for valuation is set out in the Company’s

Competent Person Manual and Valuation Policy. As such, the Board has determined that due to no

other price sources being available it is appropriate to classify these assets as Level 3 securities for

the purposes of these financial statements. The Competent Person is providing pricing in case there

is not a trustworthy and relevant price provider. Whenever there is a third party pricing provider that

provides relevant pricing the Competent Person pricing is replaced by such vendor. The proportion

of assets priced by Competent Person is monitored on at least a monthly basis and reported to the

Board on a quarterly basis.

In case of (ii) receivables and payables from repo operations are valued based on the interest rate

spread between the offsetting positions agreed at each deal’s inception.

A 5% decrease/rise in price would reduce/increase the fair value of these positions by CZK

16,446,469, CZK 41,028, CZK 14,464,300 and CZK 6,349,889, to the Bond Fund, New Europe

Equity Fund, Conservative Bond Fund and New Europe Bond Fund, respectively (30 September

2019: CZK 13,738,576, CZK 28,794, CZK 15,852,850, and CZK 3,395,721 to the Bond Fund, New

Europe Equity Fund, Conservative Bond Fund and New Europe Bond Fund, respectively).

All other assets and liabilities held by the Funds at the reporting date are carried at amortised cost;

their carrying values are a reasonable approximation of fair value. Cash and cash equivalents have

been classified at Level 1, due to the liquid nature of the asset. All other assets and liabilities held,

outside of those discussed above, have been classified at Level 2.

Conseq Invest plc


31 March 2020

51

15. Forward Foreign Exchange Contracts

All details of the open forward foreign exchange contracts as at 31 March 2020 have been

incorporated into the Funds’ schedule of investments.

16. Cross Liability Statement

The Company has adopted segregated liability between Funds, and therefore, the assets of each

Fund are not exposed to the liabilities of the other Funds within the Company.

17. Changes to the Prospectus

There were no changes to the Prospectus during the financial period.

18. Significant Events during the financial period

Since January 2020, the development of the novel coronavirus (COVID-19) into a pandemic has had

a significant impact on the world economy. Despite coordinated and extraordinary actions by

governments and global central banks to contain the virus and support the financial system, the

situation has resulted in dislocations across markets. The nature and extent of the impact of this

event is difficult to predict but it may adversely affect the returns on the Funds and their

investments. The Directors and the Investment Manager are actively monitoring the situation.

There were no other material events during the financial period ended 31 March 2020.

19. Events after the reporting date

There were no material events after the reporting date.

20. Financial Statements

These financial statements were approved by the Directors on 26 May 2020.

Conseq Invest plc

52

Statement of Significant Portfolio Movements for the financial period ended 31 March 2020

The Central Bank UCITS Regulations requires all material changes that have occurred in the disposition of

the assets of the UCITS to be documented in the interim report. A material change is defined as aggregate

purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or

aggregate disposals greater than 1 per cent of the total value of sales for the financial period.

Conseq Invest plc

53


Bond Fund

Largest Purchases

%

Nominal Description Coupon Maturity Value CZK

997,000,000 CNB Bill 0.00% 31/07/2020 1,000,113,750

110,000,000 Czech Republic Government Bond 0.45% 25/10/2023 106,629,089

60,000,000 AH Claim 3.70% 31/12/2024 54,600,000

1,450,000 Mutares 6.00% 14/02/2024 36,518,250

36,000,000 Skofin SRO 0.00% 20/11/2020 35,382,458

15,000,000 AE4 6.42% 08/11/2024 35,365,429

35,000,000 ZDR Investment 0.00% 19/06/2020 34,132,455

34,000,000 SG Issuer 2.02% 04/01/2021 34,000,000

13,000,000 Chip Bidco AS 7.21% 13/12/2024 32,742,398

30,000,000 Moneta Money 3.79% 30/01/2030 30,000,000

30,000,000 Dekinvest Pod 0.00% 12/12/2020 29,074,800

1,100,000 SSG Bidco 6.00% 21/10/2024 28,200,632

1,000,000 Azerion Holdings 8.50% 17/03/2023 25,341,500

1,000,000 Okea AS 8.75% 11/12/2024 23,003,457

9,000,000 Holmetjern Investments 8.77% 16/02/2022 22,760,565

800,000 Bewi Group AB 3.01% 22/11/2023 20,474,400

18,500,000 T-Centrum CZ 6.72% 30/10/2024 18,500,000

17,500,000 PPF Banka AS 4.05% 31/05/2022 17,500,000

6,000,000 Crayon Group* 5.26% 21/11/2022 15,253,114

6,000,000 MIME Petroleum* 8.51% 18/02/2025 14,803,045

Largest Sales

%


997,000,000 CNB Bill 0.00% 31/07/2020 1,000,598,861



84,000,000 Skofin SRO 0.00% 20/12/2019 84,000,000

57,000,000 MND 4.74% 13/11/2022 57,631,958

54,000,000 MCI Capital SA 5.86% 08/04/2021 55,393,644

60,000,000 AH Claim 3.70% 31/12/2024 54,652,333

44,000,000 Hypo Noe Gruppe 2.34% 16/09/2020 44,027,720

42,500,000 SG Issuer 2.82% 27/12/2019 42,500,000

35,000,000 Dekinvest Pod 0.00% 12/12/2019 35,000,000

8,150,000 Turkey Government Bond 7.10% 08/03/2023 29,310,905

1,000,000 OTP Bank 2.88% 15/07/2029 26,765,713

900,000 Infront ASA 5.75% 15/05/2023 23,721,112

800,000 Okea AS 7.87% 28/06/2023 19,370,628

18,000,000 Finep Barran* 3.75% 19/06/2020 18,180,000

700,000 Ferratum Cap Ger* 5.50% 25/05/2022 18,146,913

600,000 Vienna Insurance Group* 3.75% 13/04/2047 17,310,146

2,800,000 Dom Development* 3.54% 15/11/2021 16,855,089

500,000 SG Issuer* 3.75% 11/01/2021 13,791,198

2,000,000 Dom Development* 3.39% 15/12/2022 12,221,601

*Total value of acquisition/disposal is less than 1 per cent of the total value of purchases/sales for the

financial period; however the Central Bank UCITS Regulations require a minimum of 20 purchases and sales

to be disclosed.

Conseq Invest plc

54



Largest Purchases

Nominal Description Value CZK

1,550,000 Moneta Money Bank AS 97,367,230

150,001 Komercni Bank AS 95,235,250

150,000 Erste Group Bank AG 90,914,678

85,000,000 CNB Bill 85,000,000

480,000 Alior Bank SA 73,867,457

25,700 Marinomed Biotech AG 61,365,882

300,000 Mol Hungarian Oil and Gas Plc 53,915,024

1,000,000 Central European Media Enterprises Ltd 53,079,100

130,000 Raiffeisen Bank International 52,610,629

80,000 CCC SA 44,708,364

80,000 Bank Pekao SA 32,548,848

59,000 Vienna Insurance Group AG 29,433,217

55,000 CES AS 28,413,599

450,000 Stock Spirits Group Plc 27,807,066

70,000 Nova Ljubljanska B-GDR 19,661,966

550,000 Magyar Telekom Telecommunication 18,629,689

50,000 Addiko Bank AG 18,438,158

80,000 Powszechny Zaklad Ubezpiecze 18,341,034

84,298 Med Life SA 16,245,676

374,000 Karo Investment AS 14,960,000

50,000 Kernel Holding SA 12,818,053

11,700 Fillamentum 10,062,000

Largest Sales

Nominal Description Value CZK

986,398 Avast PLC 134,906,890

1,370,000 Central European Media Enterprises Ltd 134,406,669

53,000 KRKA DD Novo mesto 96,046,728

85,000,000 CNB Bill 85,072,722

4,500 Philip Morris CR AS 56,341,020

90,000 KGHM Polska Miedz SA 45,142,238

85,000 Asseco Poland SA 33,702,225

160,000 Societatea National De Gaze 32,055,302

700,000 Energa SA 29,891,418

350,000 BRD-Group Societe General 27,590,923

12,000,000 OMV Petrom SA 27,126,455

120,000 Play Communication SA 21,446,621

3,000,000 SC Fondul Proprietatea SA 19,191,193

30,000 Raiffeisen Bank International 16,490,732

120,000 Eurocash SA 15,777,270

10,000 Nova Ljubljanska Banka DD 15,750,433

400,000 Orange Polska SA 14,759,482

100,000 Cyfrowy Polska SA 13,662,083

20,000 Bank Pekao SA 12,115,123

170,000 Agora SA 11,245,160

60,000 Alior Bank SA 10,791,243

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Conservative Bond fund

Largest Purchases

%


5,458,000,000 CNB Bill 0.00% 31/07/2020 5,480,451,306


51,000,000 Skofin SRO* 1.50% 20/11/2020 50,125,149

50,000,000 AH Claim* 3.70% 31/12/2024 45,500,000

35,000,000 ZDR Investment* 0.00% 19/06/2020 34,132,455

30,000,000 Czech Republic Government Bond* 3.75% 12/09/2020 30,287,100

25,000,000 Dekinvest Pod* 0.00% 12/12/2020 24,229,000

20,000,000 SG Issuer* 2.02% 04/01/2021 20,000,000

18,000,000 BNP PARIBAS* 2.87% 08/10/2024 18,450,000

15,000,000 Moneta Money* 3.79% 30/01/2030 15,000,000

15,000,000 Hypo Noe Gruppe* 2.34% 16/09/2020 15,000,000

10,000,000 Material & Tech* 5.20% 31/12/2024 10,000,000

8,000,000 T-Centrum CZ* 6.72% 30/10/2024 8,000,000

300,000 Nomura International Fund* 1.75% 30/06/2022 7,693,910

200,000 Ceska Exp Banka* 0.18% 02/07/2021 5,127,108

Largest Sales

%


5,458,000,000 CNB Bill 0.00% 31/07/2020 5,483,520,889



48,000,000 Skofin SRO* 0.00% 20/12/2029 48,000,000

50,000,000 AH Claim* 3.70% 31/12/2024 45,543,611

30,000,000 MCI Capital SA* 5.86% 08/04/2021 30,774,247

20,000,000 SG Issuer* 2.82% 27/12/2019 20,000,000

15,000,000 MND* 4.74% 13/11/2022 15,081,290

13,000,000 Equa Bank AS* 4.40% 26/09/2027 13,233,856

12,000,000 Cetelem CR AS Bond* 2.52% 08/10/2019 12,000,000

7,000,000 Help Financial* 7.10% 29/06/2021 7,174,290

* Total value of acquisition/disposal is less than 1 per cent of the total value of purchases/sales for the


to be disclosed; however due to trading volumes, the above discloses all purchases and sales during the

period.

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Largest Purchases

%


1,846,000,000 CNB Bill 0.00% 31/07/2020 1,850,019,583

55,000,000 Ukraine Government Bond 9.99% 22/05/2024 51,303,586


1,000,000 Okea AS 8.75% 11/12/2024 23,003,457

900,000 Sazka Group AS 3.88% 15/02/2027 22,312,750

770,000 Gevorkyan SRO* 4.70% 15/03/2024 19,616,625

700,000 Bidco NR Two* 7.00% 11/09/2023 17,673,579

700,000 Mutares* 6.00% 14/02/2024 17,629,500

600,000 Bewi Group AB* 3.01% 22/11/2023 15,359,020

400,000 Azerion Holdings * 8.50% 17/03/2023 10,136,600

10,000,000 Material & Tech* 5.20% 31/12/2024 10,000,000

200,000 Saxa Gres SPA* 7.00% 10/07/2023 5,112,200

Largest Sales

%


1,846,000,000 CNB Bill 0.00% 31/07/2020 1,851,164,222



10,160,000 Poland Government Bond 4.00% 25/10/2023 69,054,190



5,000,000 Poland Government Bond 3.25% 25/07/2025 33,388,753


250,000,000 Hungary Government Bond 6.00% 24/11/2023 24,470,623

4,000,000 Romania Government Bond 5.80% 26/07/2027 24,405,942

250,000,000 Hungary Government Bond* 3.00% 27/10/2027 21,861,739

3,000,000 Romania Government Bond* 4.75% 24/02/2025 17,380,417

475,000 IS Bankasi* 6.13% 25/04/2024 11,371,002

2,500,000 Ronesans Holdings* 18.16% 19/02/2020 9,520,940

* Total value of acquisition/disposal is less than 1 per cent of the total value of purchases/sales for the


to be disclosed; however due to trading volumes, the above discloses all purchases and sales during the

period.

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Appendix 1

Securities Financing Transaction Regulations (SFTR)

A Securities Financing Transaction (SFT) is defined as per Article 3(11) of the SFTR as:

· a repurchase transaction;

· securities or commodities lending and securities or commodities borrowing;

· a buy-sell back transaction or sell-buy back transaction; or

· a margin lending transaction.

During the financial period ended 31 March 2020 the Funds held the following types of SFTs:

· Buy-Sell Back Transactions.

As at 31 March 2020 only Conservative Bond Fund and New Europe Bond Fund held such SFTs.

Global Data:


(CZK)


(CZK)

Type of Asset

Absolute

Amount

Proportion

of AUM

(%) Absolute Amount

Proportion of

AUM (%)

Reverse Repo / Buy-Sell Back 100,066,111 6.15% 100,066,111 8.02%

The amount of securities on loan as a proportion of total lendable assets (excluding cash and cash

equivalents) as at 31 March 2020 was:

Conservative Bond Fund (CZK) 6.75%

New Europe Bond Fund (CZK) 9.09%

Concentration Data:

The collateral issuers across all Buy-Sell Back Transactions are as follows:


(CZK)


(CZK)

Collateral

Issuers

Volume of the collateral

securities

Collateral

Issuers

Volume of the collateral

securities

1. Czech National Bank

100 pieces

100,000,000 CZK

in nominal value

Czech National

Bank

100 pieces

100,000,000 CZK

in nominal value

The collateral issuers across all Buy-Sell Back Transactions are as follows:


(CZK)


(CZK)

Counterparty

Gross volume of

outstanding

trades Counterparty

Gross volume of outstanding

trades

1. Ceska Sporitelna, a.s. 100,066,111 Ceska Sporitelna, a.s. 100,066,111

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Appendix 1 (continued)

Securities Financing Transaction Regulations (SFTR) (continued)

Aggregate Transaction Data:

Conservative Bond Fund (CZK)

Type of collateral Quality Currency

Maturity tenor

(collateral)

Maturity tenor

(SFTs)

Country of

counterparty

establishment (not

collateral)

Settlement and

clearing

Buy-Sell back Transaction

UniCredit Bank Czech Republic and

Slovakia, a.s.

Czech Central Bank T-Bill AA by S&P CZK 4 months 14 days Czech Republic Bilateral

The share of collateral that is reused is 0%.

New Europe Bond Fund (CZK)

Type of collateral Quality Currency

Maturity tenor

(collateral)

Maturity tenor

(SFTs)

Country of

counterparty

establishment (not

collateral)

Settlement and

clearing

Buy-Sell back Transaction

UniCredit Bank Czech Republic and

Slovakia, a.s.

Czech Central Bank T-Bill AA by S&P CZK 4 months 14 days Czech Republic Bilateral

The share of collateral that is reused is 0%.

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Appendix 1 (continued)

Securities Financing Transaction Regulations (SFTR) (continued)

Safekeeping:


(CZK)


(CZK)

Custodian Collateral assets safe-kept Collateral assets safe-kept

Raiffeisenbank International AG (subcustody for BNP)

Czech National Bank T-Bill

(CZ0001005755) CZK 99,732,468

Czech National Bank T-Bill

(CZ0001005755) CZK 99,732,468

The proportion of collateral held in pooled accounts is 100%.

Return/Costs:

Bond Fund

CZK


CZK


(CZK)


(CZK)

Absolute

Returns

% overall

returns

Absolute

Returns

% overall

returns

Absolute

Returns

% overall

returns

Absolute

Returns

%

overall

returns

Collective investment undertaking:

Buy-Sell back Transaction 2,079,623 100.00% 72,722 100.00% 4,287,316 100.00% 1,144,639 100.00%

Manager of the collective investment

undertaking:

Buy-Sell back Transaction CZK Nil 0.00% CZK Nil 0.00% CZK Nil 0.00% CZK Nil 0.00%

Third parties:

Buy-Sell back Transaction CZK Nil 0.00% CZK Nil 0.00% CZK Nil 0.00% CZK Nil 0.00%

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Appendix 2

Reconciliation of Published Net Asset Values

As per the Prospectus, the financial instruments held by the Funds are valued at mid-market prices. However,

under FRS 102 the financial instruments are usually valued at bid prices, hence the adjustment in the

financial statements. Therefore, the published net asset value per share differs from the net asset value per

share per the financial statements.

As at 31 March 2020

Bond Fund

CZK

New Europe

Equity Fund

CZK

Conservative

Bond Fund

CZK

New Europe

Bond Fund

CZK

Class A

Net asset value per share per

financial statements at bid

market prices 206.6765 180.1741 131.7052 143.9304

Adjustment from bid prices to

mid market prices 4.1287 0.2981 1.3209 1.5111

Published net asset value per

share 210.8052 180.4722 133.0261 145.4415

Class B

Bond Fund

CZK

New Europe

Equity Fund

CZK

Conservative

Bond Fund

CZK

New Europe

Bond Fund

CZK



market prices 218.8202 194.3034 - -


mid market prices 4.1287 0.2981 - -


share 222.9489 194.6015 - -

Class D

Bond Fund

CZK

New Europe

Equity Fund

CZK

Conservative

Bond Fund

CZK

New Europe

Bond Fund

CZK



market prices 79.1802 21.4764 87.7516 58.5615


mid market prices 4.1287 0.2981 1.3209 1.5111


share 83.3089 21.7745 89.0725 60.0726

Class I

Bond Fund

CZK

New Europe

Equity Fund

CZK

Conservative

Bond Fund

CZK

New Europe

Bond Fund

CZK



market prices - 6.9600 - -


mid market prices - 0.0109 - -


share - 6.9709 - -

conseq invest plc interim report and unaudited condensed … · 2020-05-28 · conseq invest plc 6...

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