ECP FLAGSHIP SICAV - Fondsvermittlung24.de · ECP FLAGSHIP SICAV Report on activities of the Board...

Unaudited semi-annual report as at 30th June 2016

ECP FLAGSHIP SICAV Société d'Investissement à Capital Variable with multiple sub-funds Luxembourg

R.C.S. Luxembourg B 134 745

This report does not constitute an offer or invitation to subscribe or purchase shares in this SICAV. Subscriptions are valid only if made on the basis of the current Prospectus, accompanied by the latest annual report and the most recent semi-annual report.

ECP FLAGSHIP SICAV

Contents

1

Organisation ........................................................................................................................................... 2

General information ............................................................................................................................... 5

Report on activities of the Board of Directors..................................................................................... 6

Combined statement of net assets .....................................................................................................10

ECP FLAGSHIP SICAV - EUROPEAN VALUE ....................................................................................11 Statement of net assets ......................................................................................................................11 Statement of investments and other net assets .................................................................................12 Industrial and geographical classification of investments ...................................................................14

ECP FLAGSHIP SICAV - GLOBAL VALUE .........................................................................................15 Statement of net assets ......................................................................................................................15 Statement of investments and other net assets .................................................................................16 Industrial and geographical classification of investments ...................................................................18

ECP FLAGSHIP SICAV - FLEXIBLE ....................................................................................................19 Statement of net assets ......................................................................................................................19 Statement of investments and other net assets .................................................................................20 Industrial and geographical classification of investments ...................................................................22

Notes to the financial statements .......................................................................................................23

ECP FLAGSHIP SICAV

2

Organisation

Registered Office 9, Boulevard Prince Henri L-1724 LUXEMBOURG (since 1st May 2016) 2, Rue d’Alsace L-1017 LUXEMBOURG (until 30th April 2016) Board of Directors Chairman Frits CARLSEN Independent Non-Executive Director 5, An den Azengen L-5380 Uebersyren, LUXEMBOURG Directors Georges WEYER Independent Non-Executive Director

EDISON CAPITAL PARTNERS S.A. 35A, Avenue John F. Kennedy L-1855 LUXEMBOURG Thomas JANNEAU Conducting Officer EUROPEAN CAPITAL PARTNERS (Luxembourg) S.A. 35A, Avenue John F. Kennedy L-1855 LUXEMBOURG (since 1st February 2016) Matthias SCHMITZ Conducting Officer EUROPEAN CAPITAL PARTNERS (Luxembourg) S.A. 35A, Avenue John F. Kennedy L-1855 LUXEMBOURG (until 31st January 2016) Management Company CONVENTUM ASSET MANAGEMENT Société Anonyme 9, Boulevard Prince Henri L-1724 LUXEMBOURG Board of Directors of the Management Company Chairman Antoine CALVISI Conseiller du Comité de Direction BANQUE DE LUXEMBOURG Société Anonyme 14, Boulevard Royal L-2449 LUXEMBOURG

ECP FLAGSHIP SICAV

Organisation (continued)

3

Directors Pierre AHLBORN Administrateur-Délégué BANQUE DE LUXEMBOURG Société Anonyme 14, Boulevard Royal L-2449 LUXEMBOURG Mario KELLER Administrateur de Sociétés 14, Boulevard Royal L-2449 LUXEMBOURG Pit RECKINGER Avocat ELVINGER, HOSS & PRUSSEN 2, Place Winston Churchill L-1340 LUXEMBOURG Fernand REINERS Membre du Comité de Direction BANQUE DE LUXEMBOURG Société Anonyme 14, Boulevard Royal L-2449 LUXEMBOURG Nico THILL Directeur BANQUE DE LUXEMBOURG Société Anonyme 14, Boulevard Royal L-2449 LUXEMBOURG General Managers of the Michèle BIEL Management Company General Manager CONVENTUM ASSET MANAGEMENT Société Anonyme 9, Boulevard Prince Henri L-1724 LUXEMBOURG Georges ENGEL General Manager CONVENTUM ASSET MANAGEMENT Société Anonyme 9, Boulevard Prince Henri L-1724 LUXEMBOURG Rita HERRMANN General Manager CONVENTUM ASSET MANAGEMENT Société Anonyme 9, Boulevard Prince Henri L-1724 LUXEMBOURG

ECP FLAGSHIP SICAV

Organisation (continued)

4

Investment Manager EUROPEAN CAPITAL PARTNERS (Luxembourg) S.A. 35A, Avenue John F. Kennedy L-1855 LUXEMBOURG Depositary, BANQUE DE LUXEMBOURG Central Administration, Société Anonyme Transfer Agent and Paying Agent 14, Boulevard Royal L-2449 LUXEMBOURG Central Administration EUROPEAN FUND ADMINISTRATION S.A. subcontractor Société Anonyme 2, Rue d’Alsace L-1122 LUXEMBOURG Domiciliation Agent CONVENTUM ASSET MANAGEMENT Société Anonyme 9, Boulevard Prince Henri L-1724 LUXEMBOURG (since 1st May 2016) EUROPEAN FUND ADMINISTRATION S.A. Société Anonyme 2, Rue d’Alsace L-1122 LUXEMBOURG (until 30th April 2016) Paying and Information MARCARD, STEIN & CO AG Agent in Germany Ballindamm 36 D-20095 HAMBOURG Auditor DELOITTE Audit Société à responsabilité limitée 560, Rue de Neudorf L-2220 LUXEMBOURG Legal Adviser DECHERT (Luxembourg) LLP 1, Allée Scheffer L-2017 LUXEMBOURG

ECP FLAGSHIP SICAV

5

General information

ECP FLAGSHIP SICAV (the “Company”) is an open-ended investment company organised under the laws of Luxembourg as a société d’investissement à capital variable (SICAV), under the form of a public limited liability company (société anonyme) and authorised under Part I of the amended Law of 17th December 2010 on Undertakings for Collective Investment, which incorporates the provisions of the European Directive 2009/65/EC. The Directive 2014/91/EU of the European Parliament and of the Council of 23rd July 2014 amending the Directive 2009/65/EC had been transposed by the law of 10th May 2016 coming into force on 1st June 2016 and amending the amended law of 17th December 2010. The Company is registered with the Luxembourg trade and companies register under number B 134 745. The Company was incorporated on 5th December 2007 for an unlimited period of time under the name “YEP I, SICAV-FIS” and under form of a specialised investment fund subject to, and authorised under, the Law of 13 February 2007 on specialised investment funds established as a Luxembourg partnership limited by shares (société en commandite par actions). It was renamed into “ECP Fund, SICAV-FIS” through a decision of an extraordinary meeting of its shareholders dated 14th April 2010. Through the Extraordinary General Meeting of the Shareholders held on 7th August 2015, the Company has been converted into a UCITS under the form of public limited liability company (société anonyme). The consolidated version of the Articles is published in the Mémorial on 4th September 2015. As from 1st June 2016, publications are made in the “Recueil électronique des sociétés et associations (“RESA“)“ through the website of “Registre de Commerce et des Sociétés” of Luxembourg. At the date of the present report, the following sub-funds are active: - ECP FLAGSHIP SICAV - EUROPEAN VALUE in EUR - ECP FLAGSHIP SICAV - GLOBAL VALUE in EUR - ECP FLAGSHIP SICAV - FLEXIBLE in EUR

At the date of the report, Classes A, A (Market Hedged), I and I (Market Hedged) Shares are issued. The calculation of the Net Asset Value of the sub-fund ECP FLAGSHIP SICAV - EUROPEAN VALUE is performed as of each business day in Luxembourg. The calculation of the Net Asset Value of the sub-funds ECP FLAGSHIP SICAV - GLOBAL VALUE and ECP FLAGSHIP SICAV - FLEXIBLE is performed as of each 1st and 15th day of each month. The reference currency of the Company is the Euro. The Company’s financial year ends on 31st December of each year. A copy of the Prospectus, the most recent financial statements and the Articles may be obtained free of charge upon request at the registered office of the Company. For the distribution of the SICAV’s shares in Germany, MARCARD, STEIN & CO AG is appointed paying and information agent. The paying and information agent in Germany accepts the redemption and conversion orders.

ECP FLAGSHIP SICAV

6

Report on activities of the Board of Directors

European Value As at end of June 2016, the European Value strategy celebrates its 1.5 year of existence under the ECP label. The strategy implemented is based on an “Entrepreneurial Value Investing” philosophy aiming at investing in quality company which stock price is trading at a substantial discount to our intrinsic value. Over the semester, in a highly volatile environment, the strategy has generated a return of -6.99% (A share class, net of fees) outperforming the MSCI Europe NR (-7.23%) and the MSCI Europe Value NR (-11.21%). Thanks to its defensive profile, the Fund was able to limit the losses compared to the Broader market. Market environment The first two months of the year were marked by a strong market correction with the MSCI Europe NR down by -8.29% from January to end of February. This negative behaviour was the result of an increased risk aversion linked to different factors, i.e. uncertainties about emerging economies’ growth prospects, volatility in commodity prices and challenging environment for the oil and banking sectors. March recorded a reversal of this negative trend, mainly thanks to the ECB action that showed a strong commitment to support economic growth further. This positive trend continued for various weeks. Volatility was however not absent and increased progressively as the date of the UK referendum was approaching. The final outcome of the referendum with a vote in favour of Brexit took everybody by surprise leading to a surge in volatility and an indiscriminate massive sell-off. Over the last days of June, the MSCI was down by more than 8% (from 23 to 28 June). Globally, 2016 seems to be a more promising year for value investors. At least the first months of the year have shown signs of a trend reversal with Value regaining some ground vs. Growth even if, over the short-term, the turbulences linked to the Brexit may slowdown the process. Performance contribution Over the period, the Financial sector was the biggest detractor to the overall performance, followed by the Consumer Discretionary segment. At the positive side, we can highlight the Consumer Staples and the Energy sectors, the latter being helped by our focused positioning in oil services companies. The IT sector also brought positive contribution. As bottom-up investors, the performance contribution of individual positions remains the most relevant indicator. With no surprise the main detractors were the Banks and financial institutions (Unicredit, Credit Suisse and CaixaBank) that continued to suffer from a difficult operating environment and were additionally hurt, at the end of the period, by the post-Brexit market downturn. We can also cite Cobham. This UK industrial company suffered from a negative perception as a result of the management’s decision to finance the payment of a dividend through a right issue. Positive contribution came from adidas that gained strong momentum thanks to a solid end market and vital signs of an improved execution of the company’s strategy. Our position in the oil services company Subsea7 proved also to be positive; with a strong order book, the company also benefited from the recent (slight) rebound in oil prices. Carl Zeis Meditec (Germany, Health Care Equipment & Services), Rockwool (Denmark, Capital Goods) and Jeronimo Martins (Portugal, Food & Staples Retailing) also ranked amongst the top contributors over the period.

ECP FLAGSHIP SICAV

Report on activities of the Board of Directors (continued)

7

Main changes in the portfolio The investment horizon is oriented towards the long-term with an average holding period of 4 to 5 years. This time period is the time normally needed for the market to recognise the earnings power of an undervalued company and thus for the valuation gap between the stock price and the estimated intrinsic value to close. The investment strategy aims to identify companies with significant earnings power without any geographic, sector or market capitalisation considerations. Over the semester, we initiated new positions in different market segments:

Europcar (France, Industrials): leading car rental company in Europe. Its business model is much less risky than its competitors; it should also benefit from a weaker euro that makes it cheaper for international tourists to travel to Europe.

Danieli (Italy, Capital Goods): one of the biggest suppliers of plant and equipment to the steel industry. The valuation appears to be highly depressed taking into account its resilient order book and its sound balance sheet.

Fila (Italy, Commercial & Professional Services): one of the global market leaders in its sector, the company enjoys a very high brand recognition and a strong market share.

Duerr (Germany, Capital Goods), this engineering and equipment manufacturer benefits from a strong cash flow generation and sustainable high return on capital.

Marks & Spencer (UK, Retailing): the company has two main activities: food (60% of revenues) and clothing (40%). The clothing business is less profitable and a new strategy is currently implemented to reinforce it. Once the transformation occurs, the company should be able to generate higher cash flows.

Our strict sell discipline is based on two scenarios: either the stock has reached its estimated intrinsic value, either the initial investment case has lost its relevance. In the first case, we can mention adidas while the second case is illustrated by Unicredit, Cobham, and Draegerwerk. Hedging strategy (“Market Hedged” share classes) In addition to the Value stock selection approach, the “Market Hedged” share classes rely on a second performance engine consisting in a dynamic management of the portfolio’s Equity market exposure by selling futures on indices. The level of Equity market exposure is defined by a proprietary hedging model that aims to maintain in the portfolio a consistent volatility level over time. Because of this more conservative approach and its capital preservation objective, the maximal market exposure is generally limited to 50%. This model experienced major tests over the semester, first during the Jan-Feb market correction and then during the sharp downturn that occurred just after the UK referendum. The strategy managed to demonstrate its effectiveness during these 2 periods. Thus, over the semester, the A (Market Hedged) share class generated a slightly negative performance of -0.49% (compared to a loss of more than 7% for the MSCI Europe NR). The Hedged portfolio started the quarter with a net exposure of around 14.5%. This low exposure level enabled the strategy to resist during the two first months. Once turbulences were over and based on the low volatility of the strategy, the net exposure increased progressively to reach, early May, 45.5%. In the days just before the UK referendum, given the uncertainties on the final outcome of the vote, we decided to tilt the portfolio even more defensively than the model was suggesting. Net exposure as at end of June was of 17.1%.

ECP FLAGSHIP SICAV


8

Global Value Before its launch under its current UCITS format in August 2015, the strategy was implemented in the framework of a discretionary mandate. Over the semester, the Fund generated a return of -4.28%, slightly underperforming the Broader Global Market (-3.89% for the MSCI Global NR in euro). Performance contribution From a sector point of view, the Consumer Staples, Energy and Health Care segments were the main contributors to the portfolio’s performance while the main detractors were Financials, IT and Consumer Discretionary. As bottom-up investors, the performance contribution of individual positions remains the most relevant indicator. With no surprise the main detractors were the European Banks and Financial institutions (Unicredit, Credit Suisse and CaixaBank) that continued to suffer from a difficult operating environment and were additionally hurt, at the end of the period, by the post-Brexit market downturn. We can also cite Cobham. This UK industrial company suffered from a negative perception as a result of the management’s to finance the payment of a dividend through a right issue. Positive contribution came from the oil services company Subsea7 which has a strong order book and has benefited from the (slight) rebound in oil prices during the period. adidas has also contributed positively as it has gained strong momentum thanks to a solid end market and vital signs of an improved execution of the company’s strategy. Other positive contributors are Computer Sciences Corp (USA, Software & Services), Waste Management Inc (USA, Commercial & Professional Services) and General Mills (USA, Food Beverage & Tobacco). Main changes in the portfolio The investment horizon is oriented towards the long-term with an average holding period of 4 to 5 years. This time period is the time normally needed for the market to recognise the earnings power of an undervalued company and thus for the valuation gap between the stock price and the estimated intrinsic value to close. The investment strategy aims to identify companies with significant earnings power without any geographic, sector or market capitalisation considerations. In terms of buy decisions, we can mention Europcar (France, Transportation), Duerr (Germany, Capital Goods) and Marks & Spencer (UK, Retailing) while for the sell decisions, the Investment team closed its investments in adidas (target price reached), Cohbam and Unicredit (deteriorating investment cases). Flexible The portfolio is managed through a patrimonial approach based on the “Entrepreneurial Value Investing” Philosophy. The typical weight of Equities in the portfolio is 60% while Cash and Fixed Income instruments usually represent 40% of the portfolio. It’s worth pointing out that the Equity bucket of the portfolio may be hedged depending on the market’s volatility. The hedging model used is the same that the one used for the “market hedged” share classes of the European Value sub-fund. Hedging is thus realised by selling futures on indices. The Fixed Income pocket invests in Government Bonds (mainly Wealth Treasuries) as well as in an opportunistic way in Corporate Bonds, mainly short-term, in order to generate additional yield.

ECP FLAGSHIP SICAV


9

Allocation During the semester, the Equity allocation remained quite stable representing around 60% of the portfolio, in line with the target allocation. The Fixed Income bucket evolved between 13% and 26%, the remaining assets were invested into Cash instruments. A little bit less than half of the Equity bucket was hedged against Equity risk by selling futures on indices. Performance contribution Over the period, the Fixed Income segment brought a slightly positive contribution while, given the high volatility on the markets, the Equity bucket had a negative contribution that was however fully compensated by the hedging in place to reduce the Equity risk. Within the Equity component, Subsea7, Adidas and Waste Management were amongst the top contributors while Unicredit, Cohbam and Credit Suisse were the worst performers. Luxembourg, 11st August 2016 The Board of Directors Note: The information in this report represents historical data and is not an indication of future results.

ECP FLAGSHIP SICAV

Combined statement of net assets (in EUR) as at 30th June 2016

The accompanying notes are an integral part of these financial statements.

10

Assets Securities portfolio at market value 45,653,412.31 Deposits on futures contracts 2,065,190.31 Cash at banks 1,729,018.24 Formation expenses, net 69,842.47 Income receivable on portfolio 7,689.41 Other receivables 128,065.00

Total assets 49,653,217.74

Liabilities Bank overdrafts 1,655,150.33 Unrealised loss on futures contracts 332,604.73 Expenses payable 71,578.89 Other liabilities 425.91

Total liabilities 2,059,759.86

Net assets at the end of the period 47,593,457.88

ECP FLAGSHIP SICAV - EUROPEAN VALUE

Statement of net assets (in EUR) as at 30th June 2016


11

Assets Securities portfolio at market value 39,254,005.63 Deposits on futures contracts 2,020,246.02 Cash at banks 1,361,205.99 Formation expenses, net 68,179.57 Other receivables 127,365.00


Liabilities Bank overdrafts 1,649,953.89 Unrealised loss on futures contracts 325,860.00 Expenses payable 58,696.37

Total liabilities 2,034,510.26


Number of Class A Shares outstanding 31,291.4743 Net asset value per Class A Share 100.94

Number of Class A (Market Hedged) Shares outstanding 13,236.3692 Net asset value per Class A (Market Hedged) Share 96.96

Number of Class I Shares outstanding 147,561.8908 Net asset value per Class I Share 94.30

Number of Class I (Market Hedged) Shares outstanding 226,537.8285 Net asset value per Class I (Market Hedged) Share 99.05


Statement of investments and other net assets (in EUR) as at 30th June 2016


12

Currency Number / nominal value

Description Cost Market value % of total net assets

Investments in securities

Transferable securities admitted to an official stock exchange listing

Shares

CHF 40,682 ABB Ltd Reg 737,535.61 719,371.68 1.76 CHF 70,296 Credit Suisse Group AG Reg 1,080,459.15 670,274.09 1.64 CHF 13,917 Novartis AG Reg 1,039,842.62 1,031,602.31 2.53 CHF 3,941 Swatch Group AG 995,024.39 1,031,468.62 2.53

3,852,861.77 3,452,716.70 8.46

DKK 49,329 Danske Bank A/S 1,167,086.59 1,162,931.91 2.85 DKK 32,492 FLSmidth & Co AS B 1,163,184.16 1,038,946.71 2.55 DKK 57,354 Matas A/S 1,062,700.77 874,947.43 2.14 DKK 22,666 NKT Holding 1,076,710.90 1,027,575.19 2.52 DKK 7,850 Rockwool Intl A/S B 893,429.07 1,274,556.16 3.12

5,363,111.49 5,378,957.40 13.18

EUR 409,682 Caixabank SA 1,345,425.63 805,844.49 1.98 EUR 24,478 Carl Zeiss Meditec AG 598,859.64 891,855.93 2.19 EUR 82,089 Danieli & C Off Meccaniche SpA Risp non Conv 1,143,934.91 1,025,291.61 2.51 EUR 13,336 Deutsche Boerse AG Reg 854,437.34 980,729.44 2.40 EUR 9,671 DiaSorin SpA 344,709.28 531,905.00 1.30 EUR 16,325 Duerr AG 1,094,503.63 1,109,936.75 2.72 EUR 122,639 Europcar Group SA 1,141,633.73 951,678.64 2.33 EUR 86,128 Fabbrica Italian Lapis Aff SpA 1,039,889.58 1,067,987.20 2.62 EUR 101,047 Jeronimo Martins SA 1,071,830.70 1,430,825.52 3.51 EUR 35,635 Leoni AG Reg 1,164,475.67 876,799.18 2.15 EUR 8,969 LVMH Moët Hennessy L Vuit SE 1,282,760.99 1,219,784.00 2.99 EUR 31,778 Oesterreichische Post AG 1,081,306.65 921,720.89 2.26 EUR 35,728 Rhoen Klinikum AG 882,621.51 940,718.24 2.31 EUR 15,361 SAP SE 972,025.14 1,031,644.76 2.53 EUR 27,189 Sligro Food Group NV 918,142.63 942,098.85 2.31 EUR 35,860 Software AG 907,550.71 1,095,343.70 2.68 EUR 41,795 Tecnicas Reunidas SA 1,352,103.15 1,118,434.20 2.74 EUR 27,270 Unilever NV Certif of Shares 977,089.38 1,142,885.70 2.80

18,173,300.27 18,085,484.10 44.33

GBP 333,589 Aberdeen Asset Management Plc 1,230,790.52 1,120,238.29 2.75 GBP 131,365 John Wood Group Plc 1,040,690.15 1,086,276.53 2.66 GBP 293,736 Marks & Spencer Group Plc 1,243,806.62 1,125,152.86 2.76 GBP 123,796 Rolls-Royce Holdings PLC 1,257,205.36 1,058,653.42 2.59 GBP 73,002 Smiths Group Plc 1,023,859.47 1,011,664.14 2.48

5,796,352.12 5,401,985.24 13.24

NOK 150,701 Subsea 7 SA 1,057,154.25 1,317,671.44 3.23 NOK 26,567 Yara Intl ASA 978,485.49 753,733.40 1.85

2,035,639.74 2,071,404.84 5.08

SEK 47,981 Atlas Copco AB B 1,035,014.77 1,010,718.09 2.48 SEK 11,843 Autoliv Inc SDR 1,106,744.08 1,133,450.45 2.78 SEK 219,645 Elekta AB Shares B 1,374,363.50 1,593,239.52 3.91 SEK 166,723 Husqvarna AB B 1,012,568.90 1,108,357.65 2.72

4,528,691.25 4,845,765.71 11.89

Total shares 39,749,956.64 39,236,313.99 96.18


Statement of investments and other net assets (in EUR) (continued) as at 30th June 2016


13



Other transferable securities

Shares

GBP 6,328,165 Rolls-Royce Holdings PLC C 0.00 7,605.90 0.02 GBP 8,391,419 Rolls-Royce Holdings Plc Pref 0.00 10,085.74 0.02

Total shares 0.00 17,691.64 0.04

Total investments in securities 39,749,956.64 39,254,005.63 96.22

Cash at banks 1,361,205.99 3.34

Bank overdrafts -1,649,953.89 -4.04

Other net assets/(liabilities) 1,831,234.22 4.48

Total 40,796,491.95 100.00


Industrial and geographical classification of investments as at 30th June 2016

14

Industrial classification

(in percentage of net assets)

Capital goods 19.36 %

Health care equipment and services 8.41 %

Consumer durables and apparel 8.24 %

Software and services 7.83 %

Raw materials 7.52 %

Banks 6.47 %

Energy 5.89 %

Food retailing, drugstores and pharmacies 5.82 %

Automobiles and components 5.41 %

Diversified financial services 5.15 %

Transportation 4.59 %

Pharmaceuticals and biotechnology 3.83 %

Food, beverage and tobacco 2.80 %

Retailing 2.76 %

Household and personal products 2.14 %

Total 96.22 %

Geographical classification

(by domicile of the issuer) (in percentage of net assets)

Germany 16.98 %

United Kingdom 13.28 %

Denmark 13.18 %

Sweden 9.11 %

Switzerland 8.46 %

Italy 6.43 %

France 5.32 %

The Netherlands 5.11 %

Spain 4.72 %

Portugal 3.51 %

Luxembourg 3.23 %

United States of America 2.78 %

Austria 2.26 %

Norway 1.85 %

Total 96.22 %

ECP FLAGSHIP SICAV - GLOBAL VALUE



15

Assets Securities portfolio at market value 4,204,627.07 Cash at banks 68,000.11 Formation expenses, net 831.45 Income receivable on portfolio 3,623.73


Liabilities Bank overdrafts 1.96 Expenses payable 8,416.80

Total liabilities 8,418.76






16





Shares

AUD 9,926 AGL Energy Ltd 104,423.80 128,511.32 3.01 CHF 6,081 ABB Ltd Reg 102,834.22 107,529.11 2.52 CHF 6,494 Credit Suisse Group AG Reg 118,597.80 61,920.45 1.45 CHF 285 Swatch Group AG 98,965.74 74,592.38 1.75

320,397.76 244,041.94 5.72

DKK 3,941 Danske Bank A/S 110,807.20 92,909.13 2.18 EUR 28,195 Caixabank SA 103,524.69 55,459.57 1.30 EUR 1,342 Deutsche Boerse AG Reg 105,432.46 98,690.68 2.31 EUR 1,663 Duerr AG 111,596.89 113,067.37 2.65 EUR 9,305 Europcar Group SA 89,636.50 72,206.80 1.69 EUR 8,273 Jeronimo Martins SA 101,785.35 117,145.68 2.74 EUR 2,307 Leoni AG Reg 85,467.42 56,763.74 1.33 EUR 657 LVMH Moët Hennessy L Vuit SE 99,885.10 89,352.00 2.09 EUR 1,702 SAP SE 101,065.58 114,306.32 2.68 EUR 2,698 Unilever NV Certif of Shares 96,019.37 113,073.18 2.65

894,413.36 830,065.34 19.44

GBP 30,164 Marks & Spencer Group Plc 128,048.23 115,542.91 2.71 GBP 9,584 Rolls-Royce Holdings PLC 95,403.85 81,958.50 1.92 GBP 6,570 Smiths Group Plc 101,254.10 91,047.28 2.13

324,706.18 288,548.69 6.76

JPY 1,700 Familymart Co Ltd 69,192.02 93,418.34 2.19 JPY 5,000 Kirin Holdings Co Ltd 62,216.54 75,745.79 1.77 JPY 6,400 Konica Minolta Inc 62,826.02 41,640.40 0.98 JPY 1,100 Lawson Inc 70,354.25 79,016.53 1.85 JPY 1,400 Makita Corp 72,630.60 83,210.47 1.95 JPY 4,400 Mitsubishi Tanabe Pharma Corp 70,712.26 71,298.64 1.67 JPY 1,100 Secom Co Ltd 62,577.19 73,049.19 1.71

470,508.88 517,379.36 12.12

NOK 20,854 Subsea 7 SA 142,560.25 182,339.34 4.27 SEK 5,007 Atlas Copco AB B 105,003.90 105,472.28 2.47 SEK 1,180 Autoliv Inc SDR 111,032.81 112,933.51 2.65

216,036.71 218,405.79 5.12

USD 1,256 Clorox Co 125,155.86 156,677.34 3.67 USD 2,248 Computer Sciences Corp 64,041.87 100,606.81 2.36 USD 3,304 ConAgra Foods Inc 123,367.33 142,387.09 3.34 USD 2,248 CSRA Inc 60,914.38 47,476.69 1.11 USD 2,485 General Mills Inc 125,621.70 159,753.20 3.74 USD 2,840 Hormel Foods Corp 78,222.14 93,693.89 2.19 USD 1,260 Kimberly-Clark Corp 119,434.67 156,142.78 3.66 USD 2,485 Merck & Co Inc 119,015.83 129,043.49 3.02 USD 3,073 Microsoft Corp 120,194.62 141,739.15 3.32 USD 3,200 Mondelez Intl Inc 122,277.31 131,270.96 3.08 USD 4,050 Pfizer Inc 118,125.34 128,538.40 3.01 USD 2,841 Seagate Technology Plc 125,017.87 62,382.15 1.46 USD 10,302 Staples Inc 127,486.51 80,046.19 1.88 USD 2,859 Waste Management Inc 127,588.04 170,782.34 4.00

1,556,463.47 1,700,540.48 39.84

Total shares 4,140,317.61 4,202,741.39 98.46




17




Shares

GBP 888,436 Rolls-Royce Holdings PLC C 0.00 1,067.83 0.02 GBP 680,464 Rolls-Royce Holdings Plc Pref 0.00 817.85 0.02

Total shares 0.00 1,885.68 0.04


Cash at banks 68,000.11 1.59

Bank overdrafts -1.96 0.00

Other net assets/(liabilities) -3,961.62 -0.09

Total 4,268,663.60 100.00



18






Retailing 8.63 %




Commercial services and supplies 5.71 %

Banks 4.93 %


Energy 4.27 %

Utilities 3.01 %




Total 98.50 %




Japan 12.12 %

Germany 8.97 %


Switzerland 5.72 %

Luxembourg 4.27 %

France 3.78 %

Australia 3.01 %

Portugal 2.74 %


Sweden 2.47 %

Denmark 2.18 %

Ireland 1.46 %

Spain 1.30 %

Total 98.50 %

ECP FLAGSHIP SICAV - FLEXIBLE



19

Assets Securities portfolio at market value 2,194,779.61 Deposits on futures contracts 44,944.29 Cash at banks 299,812.14 Formation expenses, net 831.45 Income receivable on portfolio 4,065.68 Other receivables 700.00


Liabilities Bank overdrafts 5,194.48 Unrealised loss on futures contracts 6,744.73 Expenses payable 4,465.72 Other liabilities 425.91

Total liabilities 16,830.84






20





Shares

AUD 3,582 AGL Energy Ltd 39,112.43 46,375.94 1.84 CHF 2,191 ABB Ltd Reg 35,703.36 38,743.02 1.53 CHF 2,444 Credit Suisse Group AG Reg 39,353.75 23,303.60 0.92 CHF 103 Swatch Group AG 33,733.55 26,957.95 1.07

108,790.66 89,004.57 3.52

DKK 1,429 Danske Bank A/S 38,114.68 33,688.70 1.33 EUR 10,228 Caixabank SA 33,363.99 20,118.48 0.80 EUR 485 Deutsche Boerse AG Reg 38,344.93 35,666.90 1.41 EUR 599 Duerr AG 40,120.84 40,726.01 1.61 EUR 3,491 Europcar Group SA 33,541.88 27,090.16 1.07 EUR 2,982 Jeronimo Martins SA 36,805.84 42,225.12 1.67 EUR 843 Leoni AG Reg 28,828.75 20,742.02 0.82 EUR 239 LVMH Moët Hennessy L Vuit SE 34,976.30 32,504.00 1.29 EUR 615 SAP SE 39,360.62 41,303.40 1.63 EUR 979 Unilever NV Certif of Shares 36,561.65 41,029.89 1.62

321,904.80 301,405.98 11.92

GBP 10,765 Marks & Spencer Group Plc 45,657.23 41,235.23 1.63 GBP 3,440 Rolls-Royce Holdings PLC 30,178.22 29,417.49 1.16 GBP 2,383 Smiths Group Plc 32,990.73 33,023.69 1.31

108,826.18 103,676.41 4.10

JPY 600 Familymart Co Ltd 24,704.80 32,971.18 1.30 JPY 1,800 Kirin Holdings Co Ltd 23,178.27 27,268.49 1.08 JPY 2,300 Konica Minolta Inc 20,132.62 14,964.52 0.59 JPY 400 Lawson Inc 27,348.51 28,733.28 1.14 JPY 500 Makita Corp 24,797.61 29,718.02 1.18 JPY 1,600 Mitsubishi Tanabe Pharma Corp 24,982.03 25,926.78 1.03 JPY 400 Secom Co Ltd 23,976.62 26,563.34 1.05

169,120.46 186,145.61 7.37

NOK 7,645 Subsea 7 SA 47,300.06 66,844.93 2.64 SEK 1,815 Atlas Copco AB B 34,593.10 38,232.91 1.51 SEK 428 Autoliv Inc SDR 38,943.36 40,962.32 1.62

73,536.46 79,195.23 3.13

USD 453 Clorox Co 48,293.04 56,508.63 2.24 USD 810 Computer Sciences Corp 22,708.88 36,250.68 1.43 USD 1,198 ConAgra Foods Inc 44,376.00 51,628.25 2.04 USD 821 CSRA Inc 20,825.94 17,339.13 0.69 USD 896 General Mills Inc 45,293.73 57,601.15 2.28 USD 1,746 Hormel Foods Corp 54,198.32 57,601.95 2.28 USD 457 Kimberly-Clark Corp 46,849.53 56,632.74 2.24 USD 897 Merck & Co Inc 41,679.72 46,580.29 1.84 USD 1,109 Microsoft Corp 46,887.22 51,151.55 2.02 USD 1,159 Mondelez Intl Inc 43,742.00 47,544.70 1.88 USD 1,470 Pfizer Inc 40,695.11 46,654.68 1.85 USD 1,029 Seagate Technology Plc 38,705.79 22,594.59 0.89 USD 3,709 Staples Inc 39,519.20 28,818.80 1.14 USD 1,038 Waste Management Inc 47,526.47 62,004.92 2.45

581,300.95 638,912.06 25.27

Total shares 1,488,006.68 1,545,249.43 61.12




21



Bonds

EUR 83,000 Volkswagen Leasing GmbH 1% EMTN Sen 14/04.10.17 83,113.28 83,945.37 3.32 GBP 100,000 United Kingdom 1% 12/07.09.17 133,280.57 121,420.05 4.80 USD 200,000 Subsea 7 SA 1% Reg-S Sen Conv 12/05.10.17 167,263.38 174,568.24 6.91

Total bonds 383,657.23 379,933.66 15.03

Transferable securities dealt in on another regulated market

Bonds

USD 285,100 US 2% T-Notes 15/15.08.25 254,897.51 269,072.12 10.64

Total bonds 254,897.51 269,072.12 10.64


Shares

GBP 192,074 Rolls-Royce Holdings PLC C 0.00 230.85 0.01 GBP 244,240 Rolls-Royce Holdings Plc Pref 0.00 293.55 0.01

Total shares 0.00 524.40 0.02


Cash at banks 299,812.14 11.86

Bank overdrafts -5,194.48 -0.21

Other net assets/(liabilities) 38,905.06 1.54

Total 2,528,302.33 100.00



22



Countries and governments 15.44 %


Energy 9.55 %



Retailing 5.21 %





Commercial services and supplies 3.50 %

Banks 3.05 %


Utilities 1.84 %



Total 86.81 %




Luxembourg 9.55 %


Germany 8.79 %

Japan 7.37 %

Switzerland 3.52 %

France 2.36 %

Australia 1.84 %

Portugal 1.67 %


Sweden 1.51 %

Denmark 1.33 %

Ireland 0.89 %

Spain 0.80 %

Total 86.81 %

ECP FLAGSHIP SICAV

Notes to the financial statements as at 30th June 2016

23

Note 1 - Significant accounting policies a) Presentation of the financial statements

The financial statements of the Company are established in accordance with the Luxembourg legal and regulatory requirements concerning Undertakings for Collective Investment.

b) Valuation of assets 1. The value of any cash in hand or on deposit, notes and bills payable on demand and accounts

receivable, prepaid expenses and cash dividends declared and interest accrued but not yet collected, shall be deemed the nominal value of these assets unless it is improbable that it can be paid and collected in full; in which case, the value will be arrived at after deducting such amounts as the Company or the Management Company may consider appropriate to reflect the true value of these assets.

2. Securities and Money Market Instruments listed on an official stock exchange or dealt on any other Regulated Market are valued at their last available price in Luxembourg as of the Valuation Day and, if the security or Money Market Instrument is traded on several markets, on the basis of the last known price on the main market of this security.

3. Unlisted securities and securities or Money Market Instruments not traded on a stock exchange or any other Regulated Market as well as listed securities and securities or Money Market Instruments listed on a Regulated Market for which no price is available, or securities or Money Market Instruments whose quoted price is, in the opinion of the Company or the Management Company, not representative of actual market value, are valued at their last known price in Luxembourg or, in the absence of such price, on the basis of their probable realisation value, as determined with prudence and in good faith by the Company or the Management Company.

4. Any other securities and assets are valued in accordance with the procedures put in place by the Company or the Management Company and, where necessary and appropriate, with the support of valuers who will be instructed to carry out valuations.

c) Acquisition cost of securities in the portfolio

The acquisition cost of the securities held by the sub-fund that are denominated in currencies other than the reference currency of the sub-fund is converted into this currency at the exchange rate prevailing on the date of purchase.

d) Net realised gain/(loss) on sales of securities

The net realised gains and losses on sales of securities are determined on the basis of the average acquisition cost.

e) Investment income

Dividend income is recorded at the ex-date, net of any withholding tax. Interest income accrued and payable are recorded, net of any withholding tax.

ECP FLAGSHIP SICAV

Notes to the financial statements (continued) as at 30th June 2016

24

f) Valuation of futures contracts Futures contracts are registered on the posted off-balance sheet and valued at the last settlement or close price on the stock exchanges or regulated markets. Unrealised gains or losses are recorded in the statement of net assets at the reporting date.

g) Formation expenses

The formation expenses are amortised on a straight line basis over a period of five years. If the launch of a sub-fund occurs after the launch date of the Company, the costs of formation expenses in relation to the launch of the new sub-fund shall be charged to that sub-fund alone and may be amortised over a maximum of five years with effect from the sub-fund's launch date. Pursuant to the chapter 16.12 the UCITS Conversion Expenses are estimated at up to EUR 75,000 and written off over a period of five years following the date of the conversion.

h) Conversion of foreign currencies

Cash at banks, other net assets and the valuation of the securities in portfolio expressed in currencies other than the reference currency of the sub-fund are converted into this currency at the exchange rate prevailing on the date of the report. Income and expenses expressed in currencies other than the reference currency of the sub-fund are converted into this currency at the exchange rate prevailing on the date of the transaction. At the date of the report, the exchange rates used are the following:

1 EUR = 1.4899275 AUD Australian Dollar 1.0812767 CHF Swiss Franc 7.4400801 DKK Danish Krona 0.8320084 GBP Pound Sterling 113.7356915 JPY Japanese Yen 9.2982142 NOK Norwegian Krona 9.4089878 SEK Swedish Krona 1.1094000 USD US Dollar

i) Combined financial statements

The combined financial statements of the Company are expressed in EUR and are equal to the corresponding captions in the financial statements of each sub-fund.

Note 2 - Management fees Pursuant to the provisions of a Management Company agreement signed between CONVENTUM ASSET MANAGEMENT and the Company on 7th August 2015 with effective date 8th August 2015, the Company has appointed CONVENTUM ASSET MANAGEMENT as Management Company to provide Investment Management services, risk management services, administrative services and distribution services. The Company pays fees to the Management Company in accordance with normal practice in Luxembourg. The Investment Management function has been delegated to the Investment Manager EUROPEAN CAPITAL PARTNERS (Luxembourg) S.A.. The Investment Manager receives a monthly management fee as follows:

ECP FLAGSHIP SICAV


25

Name of the sub-fund Share class Currency Management fee

ECP Flagship SICAV- EUROPEAN VALUE

A EUR 1.50 % p.a.

A (Market Hedged) EUR 1.75 % p.a.

I EUR 0.80% p.a.

I (Market Hedged) EUR 0.90% p.a.

ECP Flagship SICAV - GLOBAL VALUE A EUR 1.00% p.a.

A (Market Hedged) EUR 0.00%

ECP Flagship SICAV - FLEXIBLE A EUR 0.50% p.a.

Note 3 - Subscription and redemption fees Subscription price is equal to the NAV plus a subscription fee up to 5% of the subscription amount that may be required to be paid to the distributor(s), the sub-distributors or any intermediaries. No redemption fee is charged. Note 4 - Subscription duty ("taxe d’abonnement") The Company is governed by Luxembourg law. Pursuant to the legislation and regulations in force, the Company is subject to an annual subscription duty ("taxe d’abonnement") of 0.05% which is payable quarterly and calculated on the basis of the net assets of each sub-fund on the last day of each quarter. Pursuant to Article 175 (a) of the amended Law of 17th December 2010 the net assets invested in Undertakings for Collective Investment already subject to the "taxe d’abonnement" are exempt from this tax. This rate is reduced to 0.01% for the Classes I and I (Market Hedged) Shares reserved to institutional investors. Note 5 - Changes in investments The statement of changes in investment portfolio for the period referring to the report can be obtained free of charge at the registered office of the Company. Note 6 - Futures contracts As at 30th June 2016, the sub-funds of the Company are committed in the following futures contracts with BANQUE DE LUXEMBOURG, Luxembourg:

ECP FLAGSHIP SICAV - EUROPEAN VALUE Number of

contracts Denomination Currency Exposure

(in EUR) Unrealised

result (in EUR)

Sale 1,203 Stoxx Europe 600 EUR (Price) Index FUT 09/16 EUX

EUR -19,675,065.00 -325,860.00

-325,860.00

ECP FLAGSHIP SICAV


26

ECP FLAGSHIP SICAV - FLEXIBLE Number of

contracts Denomination Currency Exposure

(in EUR) Unrealised

result (in EUR)

Sale 20 Stoxx Europe 600 EUR (Price) Index FUT 09/16 EUX

EUR -327,100.00 -4,000.00

Sale 3 S&P 500 Index FUT 09/16 CME

USD -282,618.98 -2,744.73

-6,744.73

Note 7 - Significant events Following a Board Resolution dated 22nd February 2016, the Board of Directors of the Company resolved to accept the offer of KPMG related to the registration of and obtaining the marketing authorization in Germany and Switzerland for ECP Flagship SICAV. As of 1st May 2016, the Board of Directors of the Company has resolved to:

- appoint CONVENTUM ASSET MANAGEMENT (9, Boulevard du Prince Henri, L-1724 LUXEMBOURG) as its domiciliary agent, in replacement of EUROPEAN FUND ADMINISTRATION S.A.;

- change the new registered office of the Company to 9, Boulevard du Prince Henri, L-1724 LUXEMBOURG.

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