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  • Annual report including audited financial statements as at 31st December 2015

    ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA) 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 repo

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Contents

    1

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

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

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

    Report of the réviseur d'entreprises agréé ........................................................................................10

    Combined statement of net assets .....................................................................................................12

    Combined statement of operations and other changes in net assets ............................................13

    ECP FLAGSHIP SICAV - EUROPEAN VALUE (formerly ECP Fund - Flagship 1) ...........................14 Statement of net assets ......................................................................................................................14 Statement of operations and other changes in net assets .................................................................15 Statistical information ..........................................................................................................................16 Statement of investments and other net assets .................................................................................18 Industrial and geographical classification of investments ...................................................................20

    ECP FLAGSHIP SICAV - GLOBAL VALUE .........................................................................................21 Statement of net assets ......................................................................................................................21 Statement of operations and other changes in net assets .................................................................22 Statistical information ..........................................................................................................................23 Statement of investments and other net assets .................................................................................24 Industrial and geographical classification of investments ...................................................................26

    ECP FLAGSHIP SICAV - FLEXIBLE ....................................................................................................27 Statement of net assets ......................................................................................................................27 Statement of operations and other changes in net assets .................................................................28 Statistical information ..........................................................................................................................29 Statement of investments and other net assets .................................................................................30 Industrial and geographical classification of investments ...................................................................32

    Notes to the financial statements .......................................................................................................33

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    2

    Organisation

    Registered Office 2, Rue d’Alsace L-1017 LUXEMBOURG (since 8th August 2015) 6, rue Eugène Ruppert L-2453 Luxembourg (until 7th August 2015) Board of Directors Chairman Frits CARLSEN Independent Non-Executive Director 5, An den Azengen L-5380 Uebersyren, LUXEMBOURG Directors Matthias SCHMITZ Conducting Officer EUROPEAN CAPITAL PARTNERS (Luxembourg) S.A. 35A, Avenue John F. Kennedy L- 1855 LUXEMBOURG Georges WEYER Sales Director EDISON CAPITAL PARTNERS S.A. 35A, Avenue John F. Kennedy L- 1855 LUXEMBOURG Management Company CONVENTUM ASSET MANAGEMENT (since 8th August 2015) 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 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

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Organisation (continued)

    3

    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 General Partner ECP Management S.à r.l. (until 7th August 2015) 35A, Avenue John F. Kennedy L- 1855 LUXEMBOURG Board of Directors Jean-Nicolas BRAUN, Manager, Luxembourg of the General Partner Elsa BOURGOIS, Manager, Luxembourg Alain LAM, Manager, Luxembourg (until 5th June 2015) Investment Manager EUROPEAN CAPITAL PARTNERS (Luxembourg) S.A. 35A, Avenue John F. Kennedy L- 1855 LUXEMBOURG

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Organisation (continued)

    4

    Depositary, BANQUE DE LUXEMBOURG Central Administration, Société Anonyme Transfer Agent and Paying Agent 14, Boulevard Royal L-2449 LUXEMBOURG (since 8th August 2015) BANQUE HAVILLAND S.A. 35A, Avenue John F. Kennedy L- 1855 LUXEMBOURG (until 7th August 2015) Domiciliation Agent and EUROPEAN FUND ADMINISTRATION Central Administration Société Anonyme subcontractor 2, Rue d’Alsace L-1122 LUXEMBOURG (since 8th August 2015) INTERTRUST (Luxembourg) S.à r.l. 6, rue Eugène Ruppert L-2453 LUXEMBOURG (until 7th August 2015) 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 (formerly ECP Fund, SICAV-FIS, SCA)

    5

    General information

    ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA) (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 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 name of the Company and the name of its former only sub-fund have been modified from “ECP

    Fund, SICAV-FIS” to “ECP Flagship SICAV” respectively “ECP Fund - Flagship I” to “ECP Flagship

    SICAV - EUROPEAN VALUE”. Further information has been disclosed in note 11 of these financial

    statements.

    On 19th August 2015, the Board of Directors resolved to launch the sub-funds “ECP FLAGSHIP SICAV - GLOBAL VALUE” and “ECP FLAGSHIP SICAV - FLEXIBLE” with effective date as of 25th August 2015. At the date of the present report, the following sub-funds are active: - ECP FLAGSHIP SICAV - EUROPEAN VALUE (formerly ECP Fund - Flagship 1) in EUR - ECP FLAGSHIP SICAV - GLOBAL VALUE (launched on 25th August 2015) in EUR - ECP FLAGSHIP SICAV - FLEXIBLE (launched on 25th August 2015) 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.

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    6

    Report on activities of the Board of Directors

    European Value The portfolio has been fully in place as at 1st of January 2015 and has thus a full history over the calendar year. The strategy implemented is based on an “Entrepreneurial Value Investing” philosophy which aims to invest in quality company which stock price is trading at a substantial discount to the intrinsic value estimated by the Investment team. This approach implemented successfully by Léon Kirch for nearly 15 years has enable the portfolio to generate 8.53% return over the year (A share, net of fees) compared to a performance of 8.22% for the MSCI Europe NR and of only 0.65% for the MSCI Europe Value NR. 2015 will be remembered as a particularly difficult year for value investors as, in average, they underperformed by nearly 14% their growth peers. In this context, the returns generated by the sub-fund on the period is more than appreciable. Market environment 2015 can be divided in two different time periods. The first part of the year has been positive with upwards markets supported among other by massive liquidities injected into the system through the ECB QE program. This upward trend registered a first stress in April with a sudden increase in volatility but the real rupture happened in August following the radical and unexpected change in the Chinese monetary policy which made investors extremely fearful about growth prospects of China and its Emerging peers. Moreover, uncertainties regarding the timing of the Fed for its first rate hike and the continuing decline of commodity process did not help. August thus marked a resurgence in volatility and a trend change with totally indiscriminate selling behaviour from investors. The following months remained highly volatile despite a slight rebound in October. Performance contribution In terms of sector positioning, the main contributors were the Health Care and Consumer Discretionary sectors while the Industrials and Energy segments penalised the final portfolio performance. It’s however worth to highlight that the portfolio’s sector allocation does not result from active sector bets but comes from the underlying stock selection process. The main individual contributors to the portfolio performance over the year are:

    - Adidas (Germany, Consumer Discretionary): Despite a difficult operational environment, the company was able not only to develop its activities but also to increase its margins. It is one of the main convictions of the Investment team;

    - Diasorin (Italy, Health Care): This Italian Biotechnology company produces and markets in vitro diagnostics reagent kits used in immunodiagnostics and molecular diagnostics. The development of its franchise around XL bonds remain key to its long-term prospects;

    - Deutsche Boerse (Germany, Financial Services): The company largely benefited from the volatility in place in the financial markets during the year but also took profit from the strategy implemented by its new CEO consisting in diversifying the business into new segments such as Forex;

    - Syngenta (Switzerland, Materials): An agribusiness company that produces agrochemicals and seeds. The company has been the target of a hostile bid from Monsanto in May 2015. The stock raised then by more than 37%. From an industrial point of view, joining the two companies makes a lot of sense but Syngenta’s Management refused the offer. The Investment team then decided to sell its position during the month of June in order to secure the gains made until then;

    - Jeronimo Martins (Portugal, Consumer Staples): This Portuguese food retailer has half of its activity in Poland. One of the key element of the investment case lies in the future improvement of the polish market which proved to confirm in 2015 sustaining the stock price.

    https://en.wikipedia.org/wiki/In_vitro_diagnosticshttps://en.wikipedia.org/wiki/In_vitro_diagnosticshttps://en.wikipedia.org/wiki/Reagenthttps://en.wikipedia.org/wiki/Immunodiagnosticshttps://en.wikipedia.org/wiki/Molecular_diagnosticshttps://en.wikipedia.org/wiki/Agribusinesshttps://en.wikipedia.org/wiki/Agrochemicals

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Report on activities of the Board of Directors (continued)

    7

    The main detractors were:

    - Volkswagen (Germany, Consumer Discretionary): with no surprise, the scandal on harmful emissions put a strong drag on the stock price of the German auto manufacturer. As soon as the scandal became public, the Investment team decided to sell its position because of the lack of visibility on the company’s future earnings power;

    - Rolls Royce (United Kingdom, Industrials): this stock has been bought in January 2015. The Investment case is mainly based on the existing fleet of aircraft engines resulting in a solid maintenance business. The company also recently suffered from internal operational problems, as the launch of a new aircraft engine led to a (temporary) decline in profitability. The arrival of a new CEO and the implementation of a new business strategy offer interesting prospects for a gradual improvement in profitability. It is likely that the Investment team was too early in initiating this position but they remain confident in their investment thesis;

    - Caixabank (Spain, Banks): in the wake of a stabilisation of the Spanish economy, the Investment team initiated this position in July 2015 as stock valuation was really depressed compared to the recovery potential of its profitability. However, the aggressive Quantitative Easing policy of the ECB had an extremely negative impact on the bank’s profitability;

    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. During the year, the Investment team initiated new positions in different market segments, such as Industrials (FLSmidth), Consumer Discretionary (Swatch, Leoni) and Cyclicals sectors (Sligro Food) as well as Oil Services (Subsea7) and Financials (Credit Suisse, Aberdeen). The Investment team sell discipline is generally 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 the following companies: Michelin, Belway, Swiss Re while the second case is illustrated by Volkswagen and AP Moeller-Maersk. Another scenario is to be considered and relates to company involved in M&A activity, like Syngenta and Wincor Nixdorf. On the period, the portfolio turnover ratio has remained below 25%. 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 aiming at maintaining in the portfolio a consistent volatility level overtime. Because of this more conservative approach and its capital preservation objective, the maximal market exposure is generally limited to 50%. This model experienced its first real-life test during the sharp market correction in August and managed to demonstrate its effectiveness. Thus, over the period, the A (Market Hedged) share class generated a performance of 1.48%.

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Report on activities of the Board of Directors (continued)

    8

    The net market exposure has evolved during the year in line with market conditions as it was between 30% and 35% in the first months of the year to progressively go down at 10%-15% at the end of the period. Global Value Before its launch under its current UCITS format in August 2015, the strategy was implemented in the framework of a discretionary mandate. Please note that the below commentary relates to the period that started with the launch of the strategy as a sub-fund of the ECP Flagship SICAV. Performance contribution In terms of sector positioning, the key contributors are the Consumer Staples and Utilities sectors while the Consumer Discretionary and Financials sectors brought a negative contribution to the final portfolio performance. It’s however worth to highlight that the portfolio’s sector allocation does not result from active sector bets but comes from the underlying stock selection process. The main individual contributors to the portfolio performance over the year are:

    - Hormel Foods Corp (USA, Consumer Staples): US company active in the packaged food segment which is highly profitable. It processes meat and poultry products and produces a variety of prepared foods. Hormel markets its products around the world under a variety of branded names. The stock represents one of the biggest weight in the portfolio and went up thanks to solid operational results and strong cash flow generation as well as a good strategy;

    - Adidas (Germany, Consumer Discretionary): despite a difficult operational environment, the company was able not only to develop its activities but also to increase its margins. It is one of the main convictions of the Investment team;

    - Autoliv (Sweden, Consumer Discretionary): A Swedish company which is global leader in automotive safety (airbags, set belt tensioners, active break systems). The investment case is founded on the progressive long-term increase of demand for safety car equipment. One of its main competitor has been obliged to recall airbags; this situation proved to be positive for Autoliv as it sees an increase in demand for its products that enable the company to raise its market share from an already high level.

    The main detractors to performance were:

    - Staples Inc. (USA, Consumer Discretionary): a US distribution company which is the most important office retailer around the world. The drop in stock price was consecutive to problems experienced by the company to conclude a merger project with its competitor Office Deport. Indeed, the US competition authorities remain cautious on the subject while the two protagonists (Staples Inc. and Office Depot) maintain their commitment to lead this merger to completion;

    - Volkswagen (Germany, Consumer Discretionary): with no surprise, the scandal on harmful emissions put a strong drag on the stock price of the German auto manufacturer. As soon as the scandal became public, the Investment team decided to sell its position because of the lack of visibility on the company’s future earnings power.

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Report on activities of the Board of Directors (continued)

    9

    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 Credit Suisse (Finance) and Leoni (Consumer Discretionary) while for the sell decisions, the Investment team closed its investments in Swiss Re (target price reached) and Volkswagen (strong deterioration of the investment case). Flexible This strategy has been initiated at the launch of the UCITS SICAV ECP Flagship. 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 to point 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. Allocation As at end of December, the allocation between the main asset classes was in line with the target allocation as Equities were representing around 60% of the portfolio and Fixed Income between 13% and 14%, the remaining assets were invested into Cash instruments. Around half of the Equity bucket was hedged against Equity risk by selling futures on indices. Performance contribution Over the period, the main source of performance comes from the Equity pocket while the contribution of the Fixed Income investments was also slightly positive. However, if the hedging strategies implemented were able to reduce portfolio’s volatility, they also had a slightly negative impact as they reduced the magnitude of the final performance contribution of the Equity pocket.

    Luxembourg, 21st March 2016 The Board of Directors Note: The information in this report represents historical data and is not an indication of future results.

  • Société à responsabilité limitée au capital de 35.000 EUR RCS Luxembourg B 67.895

    10

    Deloitte Audit Société à responsabilité limitée 560, rue de Neudorf L-2220 Luxembourg B.P. 1173 L-1011 Luxembourg Tel: +352 451 451 Fax: +352 451 452 992 www.deloitte.lu

    Report of the réviseur d'entreprises agréé

    To the Shareholders of ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA) Following our appointment by the general meeting of the shareholders, we have audited the accompanying financial statements of ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA) and of each of its sub-funds, which comprise the statement of net assets and the statement of investments and other net assets as at 31st December 2015 and the statement of operations and other changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the Company for the financial statements The Board of Directors of the Company is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the réviseur d’entreprises agréé Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the réviseur d’entreprises agréé’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the réviseur d’entreprises agréé considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

  • Deloitte.

    Report of the reviseur d'entreprises agree (continued)

    An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the Company, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

    Opinion

    In our opinion, the financial statements give a true and fair view of the financial position of ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA) and of each of its sub-funds as of 31st December 2015, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements.

    Other matter

    Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole.

    For Deloitte Audit Cabinet de revision agree

    -Nicolas Hennebert, Reviseur d'entreprises agree Partner

    11th April 2016 560, rue de Neudorf L-2220 LUXEMBOURG

    11

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Combined statement of net assets (in EUR) as at 31st December 2015

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

    12

    Assets Securities portfolio at market value 31,221,929.59 Deposits on futures contracts 1,051,751.45 Cash at banks 648,272.99 Formation expenses, net 70,784.47 Income receivable on portfolio 4,419.94 Receivable on futures contracts 1,758.75 Other receivables 222,995.00

    Total assets 33,221,912.19

    Liabilities Bank overdrafts 5.62 Unrealised loss on futures contracts 222,847.67 Expenses payable 72,128.21 Other liabilities 147.33

    Total liabilities 295,128.83

    Net assets at the end of the year 32,926,783.36

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Combined statement of operations and other changes in net assets (in EUR) from 1st January 2015 to 31st December 2015

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

    13

    Income Dividends, net 614,203.73 Interest on bonds and other debt securities, net 808.03 Interest on bank accounts 8.27

    Total income 615,020.03

    Expenses Management fees 291,675.44 Custodian fees 31,855.13 Banking charges and other fees 26,087.44 Transaction fees 80,633.17 Central administration costs 72,855.65 Professional fees 31,659.55 Other administration costs 8,959.60 Subscription duty ("taxe d'abonnement") 3,999.89 Interest paid on bank overdrafts 149.00 Other expenses 63,514.48

    Total expenses 611,389.35

    Net investment income 3,630.68

    Net realised gain/(loss) - on securities portfolio 204,742.94 - on futures contracts -574,887.82 - on forward foreign exchange contracts 5,439.66 - on foreign exchange -37,185.33

    Realised result -398,259.87

    Net variation of the unrealised gain/(loss) - on securities portfolio 1,121,291.74 - on futures contracts -510,412.67

    Result of operations 212,619.20

    Subscriptions 72,603,695.60

    Redemptions -49,635,095.77

    Total changes in net assets 23,181,219.03

    Total net assets at the beginning of the year 9,745,564.33

    Total net assets at the end of the year 32,926,783.36

  • ECP FLAGSHIP SICAV - EUROPEAN VALUE

    Statement of net assets (in EUR) as at 31st December 2015

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

    14

    Assets Securities portfolio at market value 25,822,364.12 Deposits on futures contracts 1,026,720.00 Cash at banks 181,978.85 Formation expenses, net 68,922.39 Other receivables 219,455.00

    Total assets 27,319,440.36

    Liabilities Bank overdrafts 4.27 Unrealised loss on futures contracts 219,455.00 Expenses payable 63,626.27

    Total liabilities 283,085.54

    Net assets at the end of the year 27,036,354.82

    Number of Class A Shares outstanding 16,293.1745 Net asset value per Class A Share 108.53

    Number of Class A (Market Hedged) Shares outstanding 11,326.9890 Net asset value per Class A (Market Hedged) Share 97.44

    Number of Class I Shares outstanding 92,706.8743 Net asset value per Class I Share 101.02

    Number of Class I (Market Hedged) Shares outstanding 149,337.7213 Net asset value per Class I (Market Hedged) Share 99.10

  • ECP FLAGSHIP SICAV - EUROPEAN VALUE

    Statement of operations and other changes in net assets (in EUR) from 1st January 2015 to 31st December 2015

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

    15

    Income Dividends, net 566,687.58 Interest on bank accounts 5.05

    Total income 566,692.63

    Expenses Management fees 288,800.69 Custodian fees 30,921.15 Banking charges and other fees 23,058.50 Transaction fees 68,925.72 Central administration costs 63,953.26 Professional fees 28,421.09 Other administration costs 7,120.00 Subscription duty ("taxe d'abonnement") 2,879.01 Interest paid on bank overdrafts 136.81 Other expenses 60,746.64

    Total expenses 574,962.87

    Net investment loss -8,270.24

    Net realised gain/(loss) - on securities portfolio 217,029.96 - on futures contracts -558,665.20 - on foreign exchange -33,657.77

    Realised result -383,563.25

    Net variation of the unrealised gain/(loss) - on securities portfolio 942,745.54 - on futures contracts -507,020.00

    Result of operations 52,162.29

    Subscriptions 66,873,723.97

    Redemptions -49,635,095.77

    Total changes in net assets 17,290,790.49

    Total net assets at the beginning of the year 9,745,564.33

    Total net assets at the end of the year 27,036,354.82

  • ECP FLAGSHIP SICAV - EUROPEAN VALUE

    Statistical information (in EUR) as at 31st December 2015

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

    16

    Total net assets

    - as at 31.12.2015 27,036,354.82 - as at 31.12.2014 9,745,564.33 - as at 31.12.2013 14,225,400.88

    Number of Class A Shares* - outstanding at the beginning of the year 0.0000 - issued 92,719.9185 - redeemed -76,426.7440

    - outstanding at the end of the year 16,293.1745

    Net asset value per Class A Share - as at 31.12.2015 108.53

    Number of Class A (Market Hedged) Shares* - outstanding at the beginning of the year 0.0000 - issued 162,985.0790 - redeemed -151,658.0900

    - outstanding at the end of the year 11,326.9890

    Net asset value per Class A (Market Hedged) Share - as at 31.12.2015 97.44

    Number of Class A Shares (former SIF structure)* - outstanding at the beginning of the year 17,837.3200 - issued 10,011.5710 - redeemed -27,848.8910

    - outstanding at the end of the year 0.0000

    Net asset value per Class A Shares (former SIF structure)

    - as at 31.12.2015 - - as at 31.12.2014 546.34 - as at 31.12.2013 509.82

    Number of Class B Shares (former SIF structure)* - outstanding at the beginning of the year 0.0000 - issued 3,720.9410 - redeemed -3,720.9410

    - outstanding at the end of the year 0.0000

    Net asset value per Class B Shares (former SIF structure)

    - as at 31.12.2015 -

    Number of Class C Shares (former SIF structure)* - outstanding at the beginning of the year 0.0000 - issued 82,182.8970 - redeemed -82,182.8970

    - outstanding at the end of the year 0.0000

    Net asset value per Class C Shares (former SIF structure)

    - as at 31.12.2015 - *See note 11 for further information on the conversion of Shares

  • ECP FLAGSHIP SICAV - EUROPEAN VALUE

    Statistical information (in EUR) (continued) as at 31st December 2015

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

    17

    Number of Class I Shares*

    - outstanding at the beginning of the year 0.0000 - issued 92,706.8743 - redeemed 0.0000

    - outstanding at the end of the year 92,706.8743

    Net asset value per Class I share - as at 31.12.2015 101.02

    Number of Class I (Market Hedged) Shares* - outstanding at the beginning of the year 0.0000 - issued 149,337.7213 - redeemed 0.0000

    - outstanding at the end of the year 149,337.7213

    Net asset value per Class I (Market Hedged) Share - as at 31.12.2015 99.10

    Number of Management Shares (former SIF structure)*

    - outstanding at the beginning of the year 1.0000 - issued 0.0000 - redeemed -1.0000

    - outstanding at the end of the year 0.0000

    Net asset value per Management Shares (former SIF structure)

    - as at 31.12.2015 - - as at 31.12.2014 546.34 - as at 31.12.2013 509.82 *See note 11 for further information on the conversion of Shares

  • ECP FLAGSHIP SICAV - EUROPEAN VALUE

    Statement of investments and other net assets (in EUR) as at 31st December 2015

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

    18

    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 33,673 ABB Ltd Reg 618,372.07 556,097.23 2.06 CHF 27,527 Credit Suisse Group AG Reg 595,902.29 549,010.97 2.03 CHF 6,669 Novartis AG Reg 543,512.36 532,283.53 1.97 CHF 2,395 Swatch Group AG 560,093.47 771,230.59 2.85

    2,317,880.19 2,408,622.32 8.91

    DKK 33,056 Danske Bank A/S 788,398.39 820,262.82 3.03 DKK 15,929 FLSmidth & Co AS B 643,504.65 512,225.86 1.89 DKK 35,971 Matas A/S 697,938.40 641,011.62 2.37 DKK 13,599 NKT Holding 650,110.05 650,302.27 2.41 DKK 5,268 Rockwool Intl A/S B 546,480.70 683,960.92 2.53

    3,326,432.19 3,307,763.49 12.23

    EUR 12,007 Adidas AG Reg 783,659.00 1,079,549.37 3.99 EUR 197,599 Caixabank SA 807,204.81 635,083.19 2.35 EUR 28,996 Carl Zeiss Meditec AG 641,391.29 827,835.80 3.06 EUR 13,336 Deutsche Boerse AG Reg 854,437.34 1,085,417.04 4.02 EUR 23,907 DiaSorin SpA 852,131.60 1,158,294.15 4.28 EUR 9,548 Draegerwerk AG&Co KGaA Pref 887,518.68 655,088.28 2.42 EUR 68,112 Jeronimo Martins SA 650,256.31 817,003.44 3.02 EUR 13,965 Leoni AG Reg 517,460.55 508,954.43 1.88 EUR 5,535 LVMH Moët Hennessy L Vuit SE 803,292.14 802,021.50 2.97 EUR 13,613 Oesterreichische Post AG 552,832.67 457,805.19 1.69 EUR 23,927 Rhoen Klinikum AG 570,847.20 662,299.36 2.45 EUR 10,315 SAP SE 619,929.51 756,914.70 2.80 EUR 16,277 Sligro Food Group NV 546,970.02 542,024.10 2.01 EUR 24,228 Software AG 546,213.34 640,103.76 2.37 EUR 16,941 Tecnicas Reunidas SA 670,030.85 590,393.85 2.18 EUR 147,569 Unicredit SpA Post Raggruppamento 814,192.07 757,766.82 2.80 EUR 22,572 Unilever NV Certif of Shares 790,114.56 905,250.06 3.35

    11,908,481.94 12,881,805.04 47.64

    GBP 107,658 Aberdeen Asset Management Plc 477,460.76 422,803.74 1.56 GBP 190,398 Cobham Plc 756,669.55 731,727.92 2.71 GBP 65,896 John Wood Group Plc 527,003.53 547,720.68 2.03 GBP 68,265 Rolls-Royce Holdings PLC 818,538.49 532,672.08 1.97 GBP 44,923 Smiths Group Plc 659,406.61 572,742.66 2.12

    3,239,078.94 2,807,667.08 10.39

    NOK 65,013 Subsea 7 SA 578,745.55 426,076.84 1.58 NOK 17,925 Yara Intl ASA 693,940.71 713,423.09 2.64

    1,272,686.26 1,139,499.93 4.22

    SEK 23,016 Atlas Copco AB B 526,162.96 490,811.82 1.82 SEK 7,947 Autoliv Inc SDR 726,988.70 931,077.56 3.44 SEK 147,471 Elekta AB Shares B 906,748.24 1,160,980.20 4.29 SEK 112,116 Husqvarna AB B 688,252.38 685,549.07 2.54

    2,848,152.28 3,268,418.65 12.09

    Total shares 24,912,711.80 25,813,776.51 95.48

  • ECP FLAGSHIP SICAV - EUROPEAN VALUE

    Statement of investments and other net assets (in EUR) (continued) as at 31st December 2015

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

    19

    Currency Number / nominal value

    Description Cost Market value % of total net assets

    Other transferable securities

    Shares

    GBP 6,328,165 Rolls-Royce Holdings Plc Pref C Entitlement 01 2016 0.00 8,587.61 0.03

    Total shares 0.00 8,587.61 0.03

    Total investments in securities 24,912,711.80 25,822,364.12 95.51

    Cash at banks 181,978.85 0.67

    Bank overdrafts -4.27 0.00

    Other net assets/(liabilities) 1,032,016.12 3.82

    Total 27,036,354.82 100.00

  • ECP FLAGSHIP SICAV - EUROPEAN VALUE

    Industrial and geographical classification of investments as at 31st December 2015

    20

    Industrial classification

    (in percentage of net assets)

    Capital goods 17.72 %

    Health care equipment and services 12.22 %

    Banks 10.21 %

    Consumer durables and apparel 9.81 %

    Materials 7.06 %

    Pharmaceuticals and biotechnology 6.25 %

    Diversified financial services 5.58 %

    Automobiles and components 5.44 %

    Software and services 5.17 %

    Food retailing, drugstores and pharmacies 5.03 %

    Energy 3.61 %

    Food, beverage and tobacco 3.35 %

    Household and personal products 2.37 %

    Transportation 1.69 %

    Total 95.51 %

    Geographical classification

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

    Germany 22.99 %

    Denmark 12.23 %

    United Kingdom 10.42 %

    Switzerland 8.91 %

    Sweden 8.65 %

    Italy 7.08 %

    The Netherlands 5.36 %

    Spain 4.53 %

    United States of America 3.44 %

    Portugal 3.02 %

    France 2.97 %

    Norway 2.64 %

    Austria 1.69 %

    Luxembourg 1.58 %

    Total 95.51 %

  • ECP FLAGSHIP SICAV - GLOBAL VALUE

    Statement of net assets (in EUR) as at 31st December 2015

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

    21

    Assets Securities portfolio at market value 4,273,627.81 Cash at banks 94,103.36 Formation expenses, net 931.04 Income receivable on portfolio 2,847.85

    Total assets 4,371,510.06

    Liabilities Bank overdrafts 1.26 Expenses payable 5,378.93

    Total liabilities 5,380.19

    Net assets at the end of the year 4,366,129.87

    Number of Class A Shares outstanding 42,626.6788 Net asset value per Class A Share 102.43

  • ECP FLAGSHIP SICAV - GLOBAL VALUE

    Statement of operations and other changes in net assets (in EUR) From 25th August 2015 to 31st December 2015

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

    22

    Income Dividends, net 38,866.43 Interest on bank accounts 3.22

    Total income 38,869.65

    Expenses Management fees 1,876.84 Custodian fees 654.99 Banking charges and other fees 2,130.39 Transaction fees 8,282.34 Central administration costs 4,812.32 Professional fees 2,258.13 Other administration costs 919.80 Subscription duty ("taxe d'abonnement") 743.33 Interest paid on bank overdrafts 7.89 Other expenses 2,016.19

    Total expenses 23,702.22

    Net investment income 15,167.43

    Net realised gain/(loss) - on securities portfolio -11,264.69 - on foreign exchange 2,092.47

    Realised result 5,995.21

    Net variation of the unrealised gain/(loss) - on securities portfolio 130,163.03

    Result of operations 136,158.24

    Subscriptions 4,229,971.63

    Redemptions -

    Total changes in net assets 4,366,129.87

    Total net assets at the beginning of the year -

    Total net assets at the end of the year 4,366,129.87

  • ECP FLAGSHIP SICAV - GLOBAL VALUE

    Statistical information (in EUR) as at 31st December 2015

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

    23

    Total net assets

    - as at 31.12.2015 4,366,129.87

    Number of Class A Shares - outstanding at the beginning of the year 0.0000 - issued 42,626.6788 - redeemed 0.0000

    - outstanding at the end of the year 42,626.6788

    Net asset value per Class A Share - as at 31.12.2015 102.43

  • ECP FLAGSHIP SICAV - GLOBAL VALUE

    Statement of investments and other net assets (in EUR) as at 31st December 2015

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

    24

    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

    AUD 9,926 AGL Energy Ltd 104,423.80 120,170.19 2.75 CHF 6,081 ABB Ltd Reg 102,834.22 100,425.48 2.30 CHF 4,546 Credit Suisse Group AG Reg 98,469.99 90,667.49 2.08 CHF 285 Swatch Group AG 98,965.74 91,774.83 2.10

    300,269.95 282,867.80 6.48

    DKK 3,941 Danske Bank A/S 110,807.20 97,793.31 2.24 EUR 1,515 Adidas AG Reg 101,138.56 136,213.65 3.12 EUR 28,195 Caixabank SA 103,524.69 90,618.73 2.07 EUR 1,342 Deutsche Boerse AG Reg 105,432.46 109,225.38 2.50 EUR 8,273 Jeronimo Martins SA 101,785.35 99,234.64 2.27 EUR 2,307 Leoni AG Reg 85,467.42 84,078.62 1.93 EUR 657 LVMH Moët Hennessy L Vuit SE 99,885.10 95,199.30 2.18 EUR 1,702 SAP SE 101,065.58 124,892.76 2.86 EUR 18,767 Unicredit SpA Post Raggruppamento 109,411.61 96,368.55 2.21 EUR 2,698 Unilever NV Certif of Shares 96,019.37 108,203.29 2.48

    903,730.14 944,034.92 21.62

    GBP 30,341 Cobham Plc 118,387.94 116,604.99 2.67 GBP 9,584 Rolls-Royce Holdings PLC 95,403.85 74,783.99 1.71 GBP 6,570 Smiths Group Plc 101,254.10 83,763.76 1.92

    315,045.89 275,152.74 6.30

    JPY 1,700 Familymart Co Ltd 69,192.02 73,392.32 1.68 JPY 5,000 Kirin Holdings Co Ltd 62,216.54 63,054.78 1.44 JPY 6,400 Konica Minolta Inc 62,826.02 59,865.11 1.37 JPY 1,100 Lawson Inc 70,354.25 82,937.60 1.90 JPY 1,400 Makita Corp 72,630.60 75,336.59 1.72 JPY 4,400 Mitsubishi Tanabe Pharma Corp 70,712.26 70,593.79 1.62 JPY 1,100 Secom Co Ltd 62,577.19 69,381.31 1.59

    470,508.88 494,561.50 11.32

    NOK 14,598 Subsea 7 SA 111,092.73 95,671.17 2.19 SEK 5,007 Atlas Copco AB B 105,003.90 106,773.32 2.44 SEK 1,180 Autoliv Inc SDR 111,032.81 138,249.85 3.17

    216,036.71 245,023.17 5.61

    USD 1,256 Clorox Co 125,155.86 146,683.68 3.36 USD 2,248 Computer Sciences Corp 64,041.87 67,647.00 1.55 USD 3,304 ConAgra Foods Inc 123,367.33 128,265.78 2.94 USD 2,248 CSRA Inc 60,914.38 62,099.45 1.42 USD 2,485 General Mills Inc 125,621.70 131,938.40 3.02 USD 2,420 Hormel Foods Corp 133,308.15 176,218.78 4.04 USD 1,260 Kimberly-Clark Corp 119,434.67 147,696.13 3.38 USD 2,485 Merck & Co Inc 119,015.83 120,863.44 2.77 USD 3,073 Microsoft Corp 120,194.62 156,988.99 3.59 USD 3,200 Mondelez Intl Inc 122,277.31 132,125.23 3.03 USD 4,050 Pfizer Inc 118,125.34 120,381.22 2.76 USD 2,841 Seagate Technology Plc 125,017.87 95,903.37 2.20 USD 10,302 Staples Inc 127,486.51 89,834.20 2.06 USD 2,859 Waste Management Inc 127,588.04 140,501.69 3.22

    1,611,549.48 1,717,147.36 39.34

    Total shares 4,143,464.78 4,272,422.16 97.85

  • ECP FLAGSHIP SICAV - GLOBAL VALUE

    Statement of investments and other net assets (in EUR) (continued) as at 31st December 2015

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

    25

    Currency Number / nominal value

    Description Cost Market value % of total net assets

    Other transferable securities

    Shares

    GBP 888,436 Rolls-Royce Holdings Plc Pref C Entitlement 01 2016 0.00 1,205.65 0.03

    Total shares 0.00 1,205.65 0.03

    Total investments in securities 4,143,464.78 4,273,627.81 97.88

    Cash at banks 94,103.36 2.16

    Bank overdrafts -1.26 0.00

    Other net assets/(liabilities) -1,600.04 -0.04

    Total 4,366,129.87 100.00

  • ECP FLAGSHIP SICAV - GLOBAL VALUE

    Industrial and geographical classification of investments as at 31st December 2015

    26

    Industrial classification

    (in percentage of net assets)

    Food, beverage and tobacco 16.95 %

    Consumer durables and apparel 12.69 %

    Capital goods 11.26 %

    Software and services 9.42 %

    Banks 8.60 %

    Pharmaceuticals and biotechnology 7.15 %

    Household and personal products 6.74 %

    Retailing 5.64 %

    Automobiles and components 4.91 %

    Commercial services and supplies 4.81 %

    Utilities 2.75 %

    Diversified financial services 2.50 %

    Food retailing, drugstores and pharmacies 2.27 %

    Energy 2.19 %

    Total 97.88 %

    Geographical classification

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

    United States of America 40.31 %

    Japan 11.32 %

    Germany 10.41 %

    Switzerland 6.48 %

    United Kingdom 6.33 %

    Australia 2.75 %

    The Netherlands 2.48 %

    Sweden 2.44 %

    Portugal 2.27 %

    Denmark 2.24 %

    Italy 2.21 %

    Ireland 2.20 %

    Luxembourg 2.19 %

    France 2.18 %

    Spain 2.07 %

    Total 97.88 %

  • ECP FLAGSHIP SICAV - FLEXIBLE

    Statement of net assets (in EUR) as at 31st December 2015

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

    27

    Assets Securities portfolio at market value 1,125,937.66 Deposits on futures contracts 25,031.45 Cash at banks 372,190.78 Formation expenses, net 931.04 Income receivable on portfolio 1,572.09 Receivable on futures contracts 1,758.75 Other receivables 3,540.00

    Total assets 1,530,961.77

    Liabilities Bank overdrafts 0.09 Unrealised loss on futures contracts 3,392.67 Expenses payable 3,123.01 Other liabilities 147.33

    Total liabilities 6,663.10

    Net assets at the end of the year 1,524,298.67

    Number of Class A Shares outstanding 15,000.0000 Net asset value per Class A Share 101.62

  • ECP FLAGSHIP SICAV - FLEXIBLE

    Statement of operations and other changes in net assets (in EUR) from 25th August 2015 to 31st December 2015

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

    28

    Income Dividends, net 8,649.72 Interest on bonds and other debt securities, net 808.03

    Total income 9,457.75

    Expenses Management fees 997.91 Custodian fees 278.99 Banking charges and other fees 898.55 Transaction fees 3,425.11 Central administration costs 4,090.07 Professional fees 980.33 Other administration costs 919.80 Subscription duty ("taxe d'abonnement") 377.55 Interest paid on bank overdrafts 4.30 Other expenses 751.65

    Total expenses 12,724.26

    Net investment loss -3,266.51

    Net realised gain/(loss) - on securities portfolio -1,022.33 - on futures contracts -16,222.62 - on forward foreign exchange contracts 5,439.66 - on foreign exchange -5,620.03

    Realised result -20,691.83

    Net variation of the unrealised gain/(loss) - on securities portfolio 48,383.17 - on futures contracts -3,392.67

    Result of operations 24,298.67

    Subscriptions 1,500,000.00

    Redemptions -

    Total changes in net assets 1,524,298.67

    Total net assets at the beginning of the year -

    Total net assets at the end of the year 1,524,298.67

  • ECP FLAGSHIP SICAV - FLEXIBLE

    Statistical information (in EUR) as at 31st December 2015

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

    29

    Total net assets

    - as at 31.12.2015 1,524,298.67

    Number of Class A Shares - outstanding at the beginning of the year 0.0000 - issued 15,000.0000 - redeemed 0.0000

    - outstanding at the end of the year 15,000.0000

    Net asset value per Class A Share - as at 31.12.2015 101.62

  • ECP FLAGSHIP SICAV - FLEXIBLE

    Statement of investments and other net assets (in EUR) as at 31st December 2015

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

    30

    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

    AUD 2,156 AGL Energy Ltd 22,192.76 26,101.85 1.71 CHF 1,318 ABB Ltd Reg 22,178.87 21,766.29 1.43 CHF 927 Credit Suisse Group AG Reg 20,081.78 18,488.51 1.21 CHF 62 Swatch Group AG 21,176.13 19,965.05 1.31

    63,436.78 60,219.85 3.95

    DKK 855 Danske Bank A/S 23,732.86 21,216.26 1.39 EUR 329 Adidas AG Reg 21,697.55 29,580.39 1.94 EUR 6,133 Caixabank SA 22,888.36 19,711.46 1.29 EUR 291 Deutsche Boerse AG Reg 23,055.93 23,684.49 1.55 EUR 1,793 Jeronimo Martins SA 21,577.72 21,507.04 1.41 EUR 471 Leoni AG Reg 17,452.99 17,165.60 1.13 EUR 143 LVMH Moët Hennessy L Vuit SE 21,106.80 20,720.70 1.36 EUR 368 SAP SE 21,557.44 27,003.84 1.77 EUR 4,071 Unicredit SpA Post Raggruppamento 23,326.83 20,904.59 1.37 EUR 585 Unilever NV Certif of Shares 20,506.15 23,461.43 1.54

    193,169.77 203,739.54 13.36

    GBP 6,585 Cobham Plc 25,539.79 25,307.14 1.66 GBP 2,072 Rolls-Royce Holdings PLC 20,690.44 16,167.82 1.06 GBP 1,426 Smiths Group Plc 21,370.75 18,180.69 1.19

    67,600.98 59,655.65 3.91

    JPY 400 Familymart Co Ltd 15,977.74 17,268.78 1.13 JPY 1,100 Kirin Holdings Co Ltd 14,265.84 13,872.05 0.91 JPY 1,400 Konica Minolta Inc 13,342.45 13,095.49 0.86 JPY 200 Lawson Inc 12,198.22 15,079.56 0.99 JPY 300 Makita Corp 14,895.76 16,143.55 1.06 JPY 1,000 Mitsubishi Tanabe Pharma Corp 15,681.31 16,044.04 1.05 JPY 200 Secom Co Ltd 11,214.06 12,614.78 0.83

    97,575.38 104,118.25 6.83

    NOK 3,162 Subsea 7 SA 23,961.57 20,722.85 1.36 SEK 1,085 Atlas Copco AB B 21,574.55 23,137.42 1.52 SEK 255 Autoliv Inc SDR 22,212.87 29,876.03 1.96

    43,787.42 53,013.45 3.48

    USD 272 Clorox Co 26,525.85 31,765.89 2.09 USD 487 Computer Sciences Corp 13,365.51 14,654.84 0.96 USD 718 ConAgra Foods Inc 26,093.43 27,873.74 1.83 USD 487 CSRA Inc 12,712.80 13,453.04 0.88 USD 538 General Mills Inc 26,849.81 28,564.53 1.88 USD 525 Hormel Foods Corp 28,043.21 38,229.28 2.51 USD 274 Kimberly-Clark Corp 25,270.21 32,118.05 2.11 USD 540 Merck & Co Inc 25,227.50 26,264.09 1.72 USD 666 Microsoft Corp 24,853.12 34,023.65 2.23 USD 695 Mondelez Intl Inc 25,689.74 28,695.95 1.88 USD 877 Pfizer Inc 24,603.05 26,067.73 1.71 USD 616 Seagate Technology Plc 27,441.46 20,794.25 1.37 USD 2,234 Staples Inc 27,711.62 19,480.64 1.28 USD 620 Waste Management Inc 27,296.08 30,469.06 2.00

    341,683.39 372,454.74 24.45

    Total shares 877,140.91 921,242.44 60.44

  • ECP FLAGSHIP SICAV - FLEXIBLE

    Statement of investments and other net assets (in EUR) (continued) as at 31st December 2015

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

    31

    Currency Number / nominal value

    Description Cost Market value % of total net assets

    Bonds

    EUR 50,000 Volkswagen Leasing GmbH 1% EMTN Sen 14/04.10.17 50,075.00 49,863.00 3.27

    Total bonds 50,075.00 49,863.00 3.27

    Transferable securities dealt in on another regulated market

    Bonds

    USD 172,100 US 2% T-Notes 15/15.08.25 150,338.58 154,571.57 10.14

    Total bonds 150,338.58 154,571.57 10.14

    Other transferable securities

    Shares

    GBP 192,074 Rolls-Royce Holdings Plc Pref C Entitlement 01 2016 0.00 260.65 0.02

    Total shares 0.00 260.65 0.02

    Total investments in securities 1,077,554.49 1,125,937.66 73.87

    Cash at banks 372,190.78 24.42

    Bank overdrafts -0.09 0.00

    Other net assets/(liabilities) 26,170.32 1.71

    Total 1,524,298.67 100.00

  • ECP FLAGSHIP SICAV - FLEXIBLE

    Industrial and geographical classification of investments as at 31st December 2015

    32

    Industrial classification

    (in percentage of net assets)

    Food, beverage and tobacco 10.55 %

    Countries and governments 10.14 %

    Consumer durables and apparel 7.90 %

    Capital goods 6.93 %

    Software and services 5.84 %

    Banks 5.26 %

    Diversified financial services 4.82 %

    Pharmaceuticals and biotechnology 4.48 %

    Household and personal products 4.20 %

    Retailing 3.40 %

    Automobiles and components 3.04 %

    Commercial services and supplies 2.83 %

    Utilities 1.71 %

    Food retailing, drugstores and pharmacies 1.41 %

    Energy 1.36 %

    Total 73.87 %

    Geographical classification

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

    United States of America 35.18 %

    Germany 9.66 %

    Japan 6.83 %

    Switzerland 3.95 %

    United Kingdom 3.93 %

    Australia 1.71 %

    The Netherlands 1.54 %

    Sweden 1.52 %

    Portugal 1.41 %

    Denmark 1.39 %

    Ireland 1.37 %

    Italy 1.37 %

    Luxembourg 1.36 %

    France 1.36 %

    Spain 1.29 %

    Total 73.87 %

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Notes to the financial statements as at 31st December 2015

    33

    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 (formerly ECP Fund, SICAV-FIS, SCA)

    Notes to the financial statements (continued) as at 31st December 2015

    34

    f) Valuation of forward foreign exchange contracts Forward foreign exchange contracts are valued at forward rates for the remaining period from valuation date to the maturity of the contracts. Net unrealised gains or losses are recorded in the statement of net assets at the reporting date. Net variation of unrealised gains or losses and net realised gains or losses are recorded in the statement of operations and other changes in net assets.

    g) 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. Net variation of unrealised gains or losses and net realised gains or losses are recorded in the statement of operations and other changes in net assets.

    h) 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.

    i) 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. Exchange gains or losses are recorded in the statement of operations and other changes in net assets. At the date of the report, the exchange rates used are the following:

    1 EUR = 1.4933993 AUD Australian Dollar 1.0875204 CHF Swiss Franc 7.4634264 DKK Danish Krona 0.7368957 GBP Pound Sterling 130.6403772 JPY Japanese Yen 9.6204939 NOK Norwegian Krona 9.1583466 SEK Swedish Krona 1.0860000 USD US Dollar

    j) 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.

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Notes to the financial statements (continued) as at 31st December 2015

    35

    k) Transaction fees Transaction costs disclosed under the caption “Transaction fees” in the expenses of the statement of operations and other changes in net assets are mainly composed of broker fees incurred by the Company relating to purchases or sales of securities, of fees relating to settlement of transactions paid to the custodian bank and of transaction fees on financial and on derivative instruments.

    Note 2 - Management fees Until 7th August 2015, the Company paid to the General Partner an annual Management fee. The General Partner received from the sub-fund ECP Flagship SICAV - EUROPEAN VALUE (formerly ECP Fund - Flagship I) an annual Management fee of up to 1% of the Net Asset Value subject to an annual minimum of EUR 50,000. The Management fee was payable monthly in arrear. Since 7th August 2015, 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 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:

    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 0%

    A (Market Hedged) EUR 0%

    ECP Flagship SICAV - FLEXIBLE A EUR 0%

    Note 3 - Performance fee Until the change of the legal structure on 7th August 2015, for the sub-fund ECP FLAGSHIP SICAV - EUROPEAN VALUE (formerly ECP Fund - Flagship 1), the Company paid to the General Partner a performance fee of 12% of the Net Asset Value which exceeded the hurdle rate of 8% of the Net Asset Value subject to a high-water-mark. The performance fee was calculated monthly and paid annually. Since the change of the legal structure on 7th August 2015, no performance fee is payable to the Management Company any more. For the year ending 31st December 2015, no performance fees were incurred.

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Notes to the financial statements (continued) as at 31st December 2015

    36

    Note 4 - Depositary fee Remuneration for custody services and depositary services are respectively disclosed in the caption “Custodian fee” and “Banking charges and other fees” in the statement of operations and other changes in net assets Note 5 - Central administration costs

    The item "Central administration costs" disclosed in the statement of operations is mainly composed of administrative agent fees. Note 6 - 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 7 - 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 8 - 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 9 - Risk management As required by Circular CSSF 11/512, the Board of Directors needs to determine the global risk exposure of the Company either by applying the commitment approach or the VaR approach. In terms of risk management, the Board of Directors of the Company decided to adopt the commitment approach as a method of determining the global exposure.

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Notes to the financial statements (continued) as at 31st December 2015

    37

    Note 10 - Futures contracts As at 31st December 2015, the sub-funds of the Company are committed in the following futures contracts with BANQUE DE LUXEMBOURG, Luxembourg:

    ECP FLAGSHIP SICAV - EUROPEAN VALUE (formerly ECP Fund - Flagship 1) Number

    of contracts

    Denomination Currency Commitments (in EUR)

    Unrealised result

    (in EUR)

    Sale 744 Stoxx Europe 600 EUR (Price) Index FUT 03/16 EUX

    EUR -13,604,040.00 -219,455.00

    -219,455.00

    ECP FLAGSHIP SICAV - FLEXIBLE Number

    of contracts

    Denomination Currency Commitments (in EUR)

    Unrealised result

    (in EUR)

    Sale 12 Stoxx Europe 600 EUR (Price) Index FUT 03/16 EUX

    EUR -219,420.00 -3,540.00

    Sale 2 S&P 500 Index FUT 03/16 CME

    USD -187,430.94 147.33

    -3,392.67

    Note 11 – Significant events during the year Through the Extraordinary General Meeting of the Shareholders held on 7th August 2015, the following decisions have been resolved:

    - The legal regime of the Company has been converted from a SICAV-FIS subject to the

    Luxembourg law of 13th February 2007 on specialised investment funds, as amended into an

    investment company with variable capital (société d’investissement en capital variable or

    SICAV) under Part I of the Luxembourg law of 17th December 2010 on undertakings for

    collective investment, as amended;

    - The legal form of the Company has been modified and the Company has been converted from

    a corporate partnership limited by shares (société en commandite par actions) into a public

    limited company (société anonyme);

    - The name of the Company and the name of its former only sub-fund have been modified from

    ECP Fund to ECP Flagship SICAV respectively ECP Fund - Flagship I to ECP Flagship

    SICAV - EUROPEAN VALUE;

    - The Company reorganized the share capital by way of the conversion of:

    o the existing Management Shares and Class C Shares in ECP Flagship

    SICAV - EUROPEAN VALUE into Class A Shares of ECP Flagship

    SICAV - EUROPEAN VALUE at the net asset value as at 7th August 2015;

    o the existing Class A Shares and Class B Shares in ECP Flagship

    SICAV - EUROPEAN VALUE into an equivalent number of shares of Class A (Market

    Hedged) Shares of ECP Flagship SICAV - EUROPEAN VALUE at the net asset value

    as at 7th August 2015;

    - The EGM removed ECP Management S.à r.l. as the General Partner of the Company and

    granted discharge (quitus) for the performance of its duties;

  • ECP FLAGSHIP SICAV (formerly ECP Fund, SICAV-FIS, SCA)

    Notes to the financial statements (continued) as at 31st December 2015

    38

    On 19th August 2015, the Board of Directors adopted the following resolutions: - Launch class I and class I (Market Hedged) Shares of the sub-fund ECP FLAGSHIP

    SICAV – EUROPEAN VALUE with an Initial subscription period from 14th August 2015 to 25th August 2015;

    - Launch the sub-funds ECP FLAGSHIP SICAV – GLOBAL VALUE and ECP FLAGSHIP SICAV – FLEXIBLE with an Initial subscription period from 14th August 2015 to 25th August 2015;

    Note 12 – Subsequent events Following a Board Resolution dated 28th December 2015, the Board of Directors resolved to change the management fees of ECP Flagship SICAV - GLOBAL VALUE to 1% and the management fees of ECP Flagship SICAV - FLEXIBLE to 0.5% with effective date 1st January 2016. Following a Board Resolution dated 22nd February 2016, the Board of Directors 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. Following a Board Resolution dated 18th March 2016, the Board of Directors resolved, subject to CSSF approval, to appoint Thomas JANNEAU as Director of the Company in replacement of Mathias SCHMITZ with effective date 1st February 2016.