FS AQA UCITS Funds SICAV PLC Dec 2016 1512558992381 1331 PDF

AQA UCITS Funds SICAV plc
Annual Report
and
Audited Financial Statements
For the year ended
31 December 2016
Company Registration Number: SV359

Contents
_____________________________________________________________________________________
Directors, officers and other information ................................................................................ 1
Report of the investment manager ........................................................................................... 2
Report of the directors ............................................................................................................. 5
Statement of directors’ responsibilities ................................................................................... 9
Comparative table .................................................................................................................. 10
Statement of financial position .............................................................................................. 12
Statement of changes in net assets attributable to holders of redeemable shares .................. 14
Statement of comprehensive income ..................................................................................... 16
Statement of cash flows ......................................................................................................... 18
Notes to the annual financial statements................................................................................ 21
Independent auditor’s report .................................................................................................. 77
Portfolio of net assets............................................................................................................. 80
Custodian report..................................................................................................................... 90
Derivatives risk report ........................................................................................................... 91

Directors, officers and other information
__________________________________________________________________________________________
Directors: Raffaele Rossetti

Alexander Vella
Nicholas Calamatta
Registered office: Ewropa Business Centre,

Triq Dun Karim,
Birkirkara, BKR 0934,
Malta
Company registration number: SV359
Administrators: Calamatta Cuschieri Fund Services Limited

Ewropa Business Center,
Triq Dun Karim,
Birkirkara, BKR 0934,
Malta
Valletta Fund Services Limited

TG Complex, Suite 2, Level 3,
Triq il-Birrerija,
Birkirkara BKR 3000,
Malta
Investment manager: AQA Capital Ltd

171,
Old Bakery Street,
Valletta VLT1455,
Malta
Custodian and banker: Bank of Valletta p.l.c

58,
Zachary Street,
Valletta VLT1130,
Malta
Global Custodian: RBC Investor Services Trust, London Branch

Riverbank House – 2 Swan Lane
London, UK EC4R 3AF
United Kingdom
Legal advisers: GANADO Advocates

171, Old Bakery Street,
Valletta VLT1455,
Malta
Auditors: Deloitte Audit Limited

Deloitte Place,
Mriehel Bypass,
Mriehel BKR3000,
Malta
1
Report of the investment manager
Year ended 31 December 2016
Market Commentary - January 2016 to December 2016
For financial markets, the 2016 turned out to be an eventful year, where equities have set new highs, while fixed
income investments witnessed one of the deepest market corrections since the 2008 financial crisis. The
divergent path of equities and bonds markets has prompted many economists and analysts to call 2016 the year
of the “Great Rotation”, as investors have shifted large amount of money from fixed term investments
(particularly government and investment grade bonds) into equities and risky assets. Evidence of this cyclical
asset rotation can be found in the widespread bond sell off started in the fall of 2016, and the rally in equities
witnessed from October throughout the whole first quarter of 2017.
While many different variables have contributed to this sharp change in macro investment strategies, four main
events have paved the way for this global asset rotation: the Chinese equities selloff at the beginning of 2016,
the unexpected result of the UK’s UE Membership Referendum in June 2016, the battled US Presidential
Elections in November 2016, and the US Federal Reserve’s interest rate increase in December 2016.
Chinese equities selloff

While bond markets recovered and performed well during the first quarter of 2016, a selloff in Chinese equities
at the beginning of January led to a boarder correction across all major equity markets, as investors feared for a
repetition of the 2015 summer’s China led global markets correction. During the first month of 2016 the
Shanghai Shenzhen CSI 300 Index lost around 21%, dragging all main equity indexes lower: Nikkei 225 -8.0%,
EuroStoxx 50 -6.8%, Emerging Markets -6.5%, S&P 500 -5.1%, while the UK’s FTSE 100 limited losses at -
2.5%. Over the same period the MSCI World Index retreated 6.1%.
Brexit Referendum
On June 23rd, the UK unexpectedly voted in favour of leaving the European Union, setting an unimaginable
precedent and plunging European politics into chaos, by being the first member state ever to decide to withdraw
its membership from the EU, membership, until then, considered to be irreversible. The unexpected
referendum’s result caused the GBP to plunge to multi-decade lows, equities to correct, and gold to rally, as
investors became concerned with global economic growth and political uncertainty. Bond markets were
moderately affected by the referendum vote, with most of the main indexes moving sideways during the summer
months through October.
2
Report of the investment manager (continued)
US Presidential election
On November 08th, billionaire and Washington-outsider Donald Trump became the 45th US President elected
after one of the most battled election campaigns in recent history. The also unexpected election of Mr Trump,
contrary to initial expectations, propelled a rally in equities and risky assets, and accelerated a bond markets’
selloff, which since then has wiped out billions from government (especially US Treasuries) and investment
grade bonds, as investors rushed out of fixed income investments, pouring fresh money into rallying equity
markets. Banks, industrials and basic materials are the sectors that benefitted the most by Mr Trump election’s
investment euphoria, as investors bet the new US President would make good on his promises for substantial tax
cuts and an infrastructure led fiscal expansion for years to come. Industrial Metals and crude oil also rallied
during the last two months of 2016, fuelled by positive economic and consumption data from China and Mr
Trump’s promise to implement a multi-year infrastructures investment strategy.
US interest rate hike

On December 14th, the US Federal Reserve finally decided to trigger a second interest rate increase, after
postponing the decision throughout the entire 2016 due to mixed economic data and a substantial increase in
perceived economic and political uncertainty connected to the Brexit referendum and the US Presidential
election. The monetary tightening move provided another upward catalyst for the already soaring USD,
contributing to attract additional money to US equities and further weighting on US Treasuries, whose selloff
continued into the first quarter of 2017.
Equity top performing sectors

In 2016, the best performing equity sectors were energy, materials, financials and industrials, while the worst
performing sector was healthcare, whose global index declined 8.26% through the year end.
Energy stocks were boosted by a crude oil rebound, whose price double from Feb. 2016 lows, ending the year at
around $53 per barrel. With OPEC agreeing to implement an output cut throughout the first half of 2017, crude
oil price seems to have stabilised at around $50, giving some breading room to oil producers and normalising
revenue generation across the energy sector. The sector has also benefitted by costs cuts implemented in the
wake of the 2014 oil prices drop, which have started to positively impact operating margins and net incomes,
adding another positive catalyst as the sector fundamentals improve. At 31st December, the sector was up
22.77% from a year earlier.
After months of slumping prices and output increases, basic materials stocks benefitted by improving global
economic growth and China consumption and demand. Towards the end of the year the sector has also rallied on
bets that Mr Trump will push for a multi-year infrastructure developments that are expected to increase US
demand, helping to eliminate global oversupply and contributing to create price upwards pressure for all major
basic and industrial commodities. At the end of the year the sector was up 16.74%.
3
Report of the investment manager (continued)
Financial stocks were also big winners in 2016, supported by improved profitability across many major financial
institutions and boosted by Mr Trump’s election and the US Federal Reserve’s new tightening monetary policy.
While increasing interest rates will positively impact banks’ bottom lines after years of shrinking interest income
revenues; markets are also betting that the election of Mr Trump is likely to lead to a new phase of financial
deregulation, after years of regulatory tightening followed from the 2008 financial crisis. At the end of the year
financials added 9.44% globally since the beginning of 2016.
The industrial sector also performed well in 2016, on the back of an improving US economy and higher global
growth expectations. The Presidential Election of Mr Trump has provided a strong upwards catalyst for
industrial stocks, which are expected to over perform should the US President succeed in pushing for a new era
of infrastructure-led economic growth. Additionally, the sector has indirectly benefitted from a resurgence in the
oil and basic materials sectors, which it likely to result in an increase in revenue for industrial firms serving the
commodities sector, such machinery and industrial transports. Throughout 2016 the industrial sector added
10.78%.
Fixed Income - Investment Grade

Investment grades bonds underperformed in 2016, as an improving global economy and a change in investors’
sentiment have caused a selloff in safer assets such as Government and high rated corporate bonds. The rally in
equity markets also negatively weighted on investment grade fixed income, whose steep selloff continued
throughout the first quarter of 2017. Although rising interest rates are expected to contribute to make fixed
income investments more attractive in the mid to long term, already issued low coupon IG bonds will be the
most exposed to the initial interest rates increases. US Treasuries were among the worst performing within the
IG category, with yields on US 10 Years Treasuries jumping above 2.50% close to year end, from the low
1.40s% at the beginning of the summer, a further evidence of a widespread rotation from bonds into equities.
Fixed Income – High Yield

High Yield bonds have proved to be the least affected by the year-end fixed income selloff, with both US HY
and European HY segments trending upwards throughout most of 2016, with the exception of a moderate
correction in November. Emerging Markets HY bonds did not perform as well as their US peers, negatively
weighting on the Bloomberg ex-US HY Bonds Index, which in November paired almost all gains recorded over
the first 9 months of the year. With the FED finally embarking on a tightening monetary policy, the HY space is
still considered the most attractive segment within bond markets, as they are believed to be less affected by
rising rates and to benefit from an improving global economic growth expectations.
4
Report of the Directors
For the year ending 31 December 2016
__________________________________________________________________________________________
The Directors present their second Annual Report, together with the audited financial statements of AQA
UCITS Funds SICAV plc (‘the Company’) for the year ended 31 December 2016.
Principal activities
The Company is an open-ended collective investment scheme organised as a multi-fund public limited liability
company with variable share capital registered under the laws of Malta. The company qualifies as a ‘Maltese
UCITS’ in terms of the Investment Services Act Regulations. The investment objective of the AQA High Yield
Bond Fund is to achieve long-term capital growth for investors through investment, primarily, in a diversified
portfolio of listed corporate and government bonds. The AQA Inter-Active Allocation Fund’s investment
objective is to achieve medium to long-term capital growth by investing primarily in a diversified portfolio of
listed securities including corporate and government bonds, equities and units of other eligible UCITS and non
UCITS collective investment schemes. The AQA Hybrid Bond Fund’s investment objective is to achieve long-
term capital growth, with simultaneous risk diversification, by investing predominantly in hybrid bonds. The
AQA Credit Strategies Fund’s investment objective is to achieve stable capital growth by investing primarily in
a diversified portfolio of corporate and government fixed and/or floating bonds and other types of financial
credit instruments. The AQA Flexible Allocation Fund’s investment objective is to achieve long-term capital
growth, with simultaneous risk diversification, by investing in a diversified portfolio of stocks, convertible
securities and debt securities. The AQA Selective Opportunities Fund’s investment objective is to generate
absolute return, by investing in bonds, index futures, options, deposits, ETFs and CFDs. The investment
objective of the AQA Selective Income Fund is to maximise capital growth by investing in corporate and
sovereign bonds.
Significant changes in to the Company’s documents
During the financial year ended 31 December 2016, one sub-fund, the AQA U3S Fund was launched and
liquidated whilst the AQA Hybrid Bond Fund, AQA Credit Strategies Fund, AQA Credit Strategies Fund, AQA
Flexible Allocation Fund and the AQA Selective Opportunities Fund were launched.
Results and dividends
The results for the year are shown in the statements of profit or loss and other comprehensive income on pages
16 and 17.
In the year to 31 December 2016, no dividend was proposed to the founder shareholders out of the profits of the
funds. No subsequent to year-end dividends were proposed.
Business review
At 31 December 2016, the net asset value of the Company stood at EUR121,135,310 (2015: EUR 19,635,025).
5
Report of the Directors (continued)
__________________________________________________________________________________________
AQA Inter-Active
AQA High Yield Bond
Allocation AQA Hybrid Bond AQA Credit
Fund
Fund Fund Strategies Fund
Class A Class A Class B Class A Class A

EUR EUR EUR EUR EUR
NAV 31 Dec 2015 97.8975 95.174 95.572 - -
Price issued - - - 100 100
NAV 31 Dec 2016 97.6647 98.0969 99.1594 108.1894 102.4145
YTD performance % -0.24% 3.07% 3.75% 8.19% 2.41%
AUM as at 31 December 2016 7,364,340 13,743,091 1,225,803 10,928,610 5,927,820
Subscriptions of year 418,000 2,429,000 - 11,541,800 5,939,500

Redemptions of year 152,562 449,976 - 1,511,643 142,752
Net 265,438 1,979,024 - 10,030,157 5,796,748
TER 2.72% 2.32% 1.62% 2.78% 3.38%
AQA Selective
AQA Flexible
Opportunities AQA Selective Income Fund AQA U3S Fund
Allocation Fund
Fund
Class A Class A Class A Class C
EUR EUR EUR USD
NAV 31 Dec 2015 - - - - -
Price issued 100 100 100 100 -
NAV 31 Dec 2016 99.7421 106.3495 104.4854 106.6398 -
YTD performance % -0.26% 6.35% 4.49% 6.64% -
AUM as at 31 December 2016 10,763,893 4,147,632 23,454,241 45,832,960 -
Subscriptions of year 10,750,342 3,900,000 23,185,000 43,170,708 6,719,974

Redemptions of year - - 389,158 14,174 6,482,417
Net 10,750,342 3,900,000 22,795,842 43,156,534 237,557
TER 0.68% 3.27% 1.16% 1.06% -
A review of the business of the Company during the current year and an indication of likely future developments
are given in the Investment Manager’s Report on pages 2 to 4.
Financial Risk Management
Note 10 to the financial statements provides details in connection with the company’s use of financial
instruments, its financial risk management objectives and policies and the financial risks to which it is exposed.
Likely future business developments
Two additional sub-funds, namely AQA Versatile Fund and AQA Global Dynamic Strategy Fund was launched
in 2017. To date these sub-funds have been licensed by the MFSA and AQA Versatile Fund is currently in the
initial offering period.
6
Report of the Directors (continued)
__________________________________________________________________________________________
The directors consider that the year-end financial position was satisfactory and that the Company is well placed
to sustain the present level of activity in the foreseeable future.
Principal risks and uncertainties
The successful management of risk is essential to enable the Company to achieve its objectives. The ultimate
responsibility for risk management rests with the Company’s directors, who evaluate the Company’s risk appetite
and formulate policies for identifying and managing such risks. The principal risks and uncertainties facing the
Company are included in note 10.
Directors
The Directors who served in office during the year were:
Raffaele Rossetti
Alexander Vella
Nicholas Calamatta
In accordance with article 19.5 of the Company’s Articles of Association, all the Directors are due to retire at the
Company’s forthcoming Annual General Meeting and being eligible, intend offering themselves for re-election.
Auditors
A resolution to reappoint Deloitte Audit Limited as auditors of the Company will be proposed at the forthcoming
Annual General Meeting.
Standard licence conditions and regulatory sanctions

During the year under review there were no breaches of standard conditions which were subject to regulatory
sanctions with the exception of;
On the 6th of April 2016, a wrong USD/EUR rate was used to value a forward in the AQA Selective Income
Fund – Class A Accumulator class, resulting to a material pricing error.
On the 10th November 2016 the AQA Selective Opportunities Fund invested in two Exchange Traded Funds
(ETFs). BOV as Custodian has queried the eligibility of the two assets for investment by the Scheme and is
currently waiting for guidance from the MFSA in this respect.
For further details on the above refer to the report of the Custodian on page 90.
Remuneration Policy
Qualitative for AQA Capital Limited and AQA UCITS Funds SICAV plc
For 2016, the fixed and variable remuneration of all employees was not in any possible way linked to the
performance of any of the sub-funds. Fixed salary is linked to the experience, responsibility and work of the
respective individual, while, the variable remuneration is linked to the performance of the individual in relation
to the targets at the beginning of the year.
Quantitative for AQA Capital Limited

Fixed: EUR135,000
Variable: EUR1,000
7
Statement of Directors’ responsibilities
__________________________________________________________________________________________
The directors are required by the Companies Act (Cap. 386) to prepare financial statements in
accordance with generally accepted accounting principles and practices which give a true and fair
view of the state of affairs of the Company at the end of each financial year and of the profit or loss
and other comprehensive income of the Company for the year then ended. In preparing the financial
statements, the directors should:
select suitable accounting policies and apply them consistently;

make judgments and estimates that are reasonable; and
prepare the financial statements on a going concern basis, unless it is inappropriate to presume that the
Company will continue in business as a going concern.
The directors are responsible for ensuring that proper accounting records are kept which disclose with
reasonable accuracy at any time the financial position of the Company and which enable the directors
to ensure that the financial statements comply with the Companies Act (Cap. 386). This responsibility
includes designing, implementing and maintaining such internal control as the directors determine is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error. The directors are also responsible for safeguarding the assets of the
Company, and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
Additionally, the Directors of a multi-fund company are responsible for ensuring that such separate
records, accounts, statements and other records are kept as may be necessary to evidence the assets
and liabilities of each sub-fund as distinct and separate from the assets and liabilities of other sub-
funds in the same company.
9
Comparative table
____________________________________________________________________________________________________________________________________________________
AQA Inter-Active AQA

Allocation AQA High Yield Bond AQA Credit AQA U3S AQA AQA Selective Opportunities
Fund Fund Hybrid Strategies Fund Flexible Fund AQA Selective Income Fund
Bond Fund Fund Allocation
Fund
EUR EUR EUR EUR EUR EUR EUR EUR USD
Class A Class A Class B Class A Class A Class A Class A Class A Class B Class A Class C
Denominated EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR USD
in:
Net Asset Value

per unit as at:
31 December 97.6647 98.0969 99.1594 108.1894 102.4145 - 99.7421 106.3495 - 104.4854 106.6398
2016
Net Asset Value

as at:
31 December
7,364,340 13,743,091 1,225,803 10,928,610 5,927,820 - 10,763,893 4,147,632 - 23,454,241 45,832,960
2016
10
Comparative table (Continued)
__________________________________________________________________________________________
AQA Inter-Active Allocation AQA High Yield Bond

Fund Fund
EUR EUR
Class A Class A Class B
Denominated in: EUR EUR EUR
Net Asset Value per unit as at:
31 December 2015 97.6325 95.0290 95.4311
Net Asset Value as at:
31 December 2015 7,089,971 11,365,339 1,179,715
11
Statement of financial position (continued)
As at 31 December 2015
____________________________________________________________________________________________________________________________________________________
AQA Inter- AQA AQA AQA AQA AQA AQA

Active High Yield Hybrid Credit AQA Flexible Selective Selective
Allocation Bond Bond Strategies U3S Allocation Opportunities Income
Fund Fund Fund
Combined Fund Fund Fund Fund Fund
2015 2015 2015 2015 2015 2015 2015 2015 2015

Notes EUR EUR EUR EUR EUR EUR EUR EUR EUR
Assets
Financial assets at fair value through profit or

loss 8 16,633,417 6,082,704 10,550,713 - - - - - -
310,602 73,278 237,324 - - - - - -
Prepayments and accrued income
2,862,146 1,025,380 1,836,766 - - - - - -
Cash and cash equivalents 7
Total assets 19,806,165 7,181,362 12,624,803 - - - - - -
Liabilities
Financial liabilities at fair value through profit or 8

loss (33,173) (33,173) - - - - - - -
Accrued expenses and other payables (137,967) (58,218) (79,749) - - - - - -
Net assets attributable to holders of

redeemable shares 19,635,025 7,089,971 12,545,054 - - - - - -
The notes on pages 21 to 76 are an integral part of these annual financial statements.
13
Statement of changes in net assets attributable to holders of redeemable shares
For the year ended 31 December 2016
______________________________________________________________________________________________________________________________________________________________________________________________
AQA Inter- AQA AQA AQA Credit AQA AQA Flexible AQA Selective AQA
Active High Yield Hybrid Bond Strategies U3S Allocation Opportunities Selective
Combined Allocation Fund Bond Fund Fund Fund Fund Fund Fund Income Fund
1 January 1 January 1 January 25 March 5 March 4 January 1 October 1 October 27 February
2016 to 2016 to 2016 to 2016 to 2016 to 2016 to 2016 to 2016 to 2016 to
31 December 31 December 31 December 31 December 31 December 27 May 31 December 31 December 31 December
2016 2016 2016 2016 2016 2016 2016 2016 2016
EUR EUR EUR EUR EUR EUR EUR EUR EUR
Net assets attributable to holders of redeemable 19,635,025 7,089,971 12,545,054 - - - - - -

shares as at 31 December 2016
Amounts received on subscription of redeemable

shares 106,171,470 418,000 2,429,000 11,541,800 5,939,500 9,044,390 10,747,391 3,900,000 62,151,389
Amounts paid on redemption of redeemable shares (11,137,071) (152,562) (449,976) (1,511,643) (142,752) (8,457,243) - - (422,895)
Increase/decrease in net assets attributable to

holders of redeemable shares 6,465,886 8,931 444,816 898,453 131,072 (587,147) 16,502 247,632 5,305,627
Net assets attributable to holders of redeemable

121,135,310 7,364,340 14,968,894 10,928,610 5,927,820 - 10,763,893 4,147,632 67,034,121
shares as at the end of the year/period
14
Statement of changes in net assets attributable to holders of redeemable shares (continued)
For the period ended 31 December 2015
_________________________________________________________________________________________________________________________________________________________________________________________
AQA AQA AQA AQA AQA AQA

AQA Inter-
High Yield Hybrid Credit AQA Flexible Selective Selective
Active
Bond Bond Strategies U3S Allocation Opportunities Income
Allocation
Fund Fund Fund Fund Fund Fund Fund
Fund
Combined 20 April
20 April
2015 to
2015 to
31 December
31 December
2016
2016
Notes EUR EUR EUR EUR EUR EUR EUR EUR EUR
Amounts received on subscription of redeemable

shares 21,095,000 7,410,000 13,685,000 - - - - -
Amounts paid on redemption of redeemable (689,540) (148,901) (540,639) - - - - - -

shares
Decrease in net assets attributable to holders of
redeemable shares (770,435) (171,128) (599,307) - - - - - -
Net assets attributable to holders of

19,635,025 7,089,971 12,545,054 - - - - - -
redeemable shares as at the end of the period
15
Statement of profit or loss and other comprehensive income
____________________________________________________________________________________________________________________________________________________
AQA AQA Selective AQA Selective
AQA Inter- AQA High Yield AQA Hybrid AQA Credit AQA Flexible Allocation Opportunities Income Fund
Active Allocation Bond Fund Bond Fund Strategies Fund U3S Fund Fund Fund 1 October 27 February
Combined Fund 1 January 2016 to 25 March 2016 5 March 2016 4 January 1 October 2016 to 2016 to 2016 to
1 January 2016 to 1 January 2016 to 31 December to 31 December to 31 December 2016 to 27 31 December 31 December 31 December
Notes 31 December 2016 31 December 2016 2016 2016 2016 May 2016 2016 2016 2016
Operating income
Interest income on cash and cash
equivalents 3,314,363 167,328 697,692 427,087 12,875 13,923 88,587 11,342 1,895,529
Dividend income 61,458 1,262 - - 16,992 32,641 - 10,563 -
Other net changes in fair value on
financial assets and liabilities at fair
value through profit and loss 1,659,690 38,450 55,829 916,649 262,107 (528,853) (27,015) 321,249 621,274
Other income 29,955 - - 16,333 - 658 103 432 12,429
Net investment profit/(loss) 5,065,466 207,040 753,521 1,360,069 291,974 (481,631) 61,675 343,586 2,529,232
Expenses
Management fees 5b (834,244) (108,871) (190,620) (158,422) (55,897) (46,626) (4,861) (10,141) (258,806)
Administration fees 5d (132,674) (22,500) (22,500) (9,631) (18,567) (9,098) (3,195) (5,860) (41,323)
Custodian fees 5c (95,433) (16,500) (16,548) (11,557) (12,377) (6,672) (3,775) (3,822) (24,182)
Transaction costs (130,658) (8,869) (27,661) (23,815) (8,349) (16,867) (20,312) (1,366) (23,419)
Performance fees
5a (278,909) - - (208,822) (25,221) - - (44,866) -
Directors’ fees (38,379) (11,176) (8,741) (4,552) (4,923) (3,290) (1,221) (1,221) (3,255)
Professional fees (1,844) (400) (400) (349) (357) (173) (27) (27) (111)
Other fees and charges
(425,079) (28,101) (40,217) (44,468) (34,329) (22,790) (11,782) (27,956) (215,436)
Total operating expenses (1,937,220) (196,417) (306,687) (461,616) (160,020) (105,516) (45,173) (95,259) (566,532)
Operating profit/(loss) 3,128,246 10,623 446,834 898,453 131,954 (587,147) 16,502 248,327 1,962,700
Withholding taxes (5,287) (1,692) (2,018) - (882) - - (695) -
Increase/(decrease) in net assets
attributable to holders of
redeemable shares from operations 3,122,959 8,931 444,816 898,453 131,072 (587,147) 16,502 247,632 1,962,700
Other comprehensive income
Items that may be classified
subsequently to profit or loss:
Exchange difference on translation 3,342,927 - - - - - - - 3,342,927
translation
Total profit or loss or other
comprehensive income/(loss) for
6,465,886 8,931 444,816 898,453 131,072 (587,147) 16,502 247,632 5,305,627
the year/period
16
Statement of comprehensive income (continued)
__________________________________________________________________________________________
AQA Inter-Active AQA High Yield

Allocation Bond
Combined
Fund Fund
20 April 2015 to 31 20 April 2015 to 31
December 2015 December 2015
Notes
EUR EUR EUR
Income
Interest income 263,631 22,737 240,894
Net losses on financial assets at fair value

through profit and loss (728,059) (76,206) (651,853)
Net investment loss (464,428) (53,469) (410,959)
Expenses
Management fees 5b (128,435) (44,274) (84,161)
Administration fees 5d (22,560) (9,431) (13,129)
Custodian fees 5c (18,051) (7,546) (10,505)
Legal fees (5,900) (2,119) (3,781)
Audit fees (7,080) (3,540) (3,540)
Directors’ fees (19,843) (7,127) (12,716)
Transaction costs (20,492) (6,211) (14,281)

Other fees and charges (80,879) (35,436) (45,443)
Total operating expenses (303,240) (115,684) (187,556)

Operating loss (767,668) (169,153) (598,515)
Withholding taxes (2,767) (1,975) (792)

Decrease in net assets attributable
to holders of redeemable shares (770,435) (171,128) (599,307)
17
Statement of cash flows
________________________________________________________________________________________________________________________________________________
AQA Inter- AQA AQA AQA AQA

Active High AQA Credit AQA Flexible Selective AQA Selective
Allocation Yield Hybrid Bond Strategies U3S Allocation Opportunities Income
Combined Fund Bond Fund Fund Fund Fund Fund Fund
1 January 2016 1 January 2016 Fund 25 March 2016 5 March2016 4 January 1 October 1 October 2016 27 February
to to 1 January 2016 to to 31 to 2016 to 2016 to to 2016 to
31 December 31 December 31 December December 31 December 27 May 31 December 31 December 31 December
2016 2016 2016 2016 2016 2016 2016 2016 2016

Cash flows used in operating activities
Profit/(loss) before tax 3,128,246 10,623 446,834 898,453 131,954 (587,147) 16,502 248,327 1,962,700
Adjustments for:
Interest income (3,308,949) (167,328) (697,692) (427,087) (12,875) (13,923) (88,587) (5,928) (1,895,529)
Dividend income (61,458) (1,262) - - (16,992) (32,641) - (10,563) -
(Increase)/decrease in financial assets at
fair value through profit or loss (93,197,586) 246,822 (2,353,557) (9,840,766) (5,424,580) - (9,909,282) (3,224,898) (62,691,325)
Increase in financial liabilities at fair
value through profit or loss 1,731,569 7,599 44,655 81,814 4,490 - 2,875 96,640 1,493,496
Movement in prepayments 118,454 49,089 433 (1,343) (1,318) - (883) 73,761 (1,285)
Movement in accrued expenses 865,518 6,381 12,986 298,506 56,090 7,195 17,946 190,088 276,326
Cash (used in)/generate from operations (90,724,206) 151,924 (2,546,341) (8,990,423) (5,263,231) (626,516) (9,961,429) (2,632,573) (60,855,617)
Interest received 1,714,629 145,955 632,845 244,395 (451) 13,923 (127,360) (210,019) 1,015,341
Dividend received 61,458 1,262 - - 16,992 32,641 - 10,563 -
Tax paid (5,287) (1,692) (2,018) - (882) - - (695) -
Net cash flows (used in)/generated

(88,953,406) 297,449 (1,915,514) (8,746,028) (5,247,572) (579,952) (10,088,789) (2,832,724) (59,840,276)
from operating activities
18
Statement of cash flows (continued)
For the year 31 December 2016
____________________________________________________________________________________________________________________________________________________
AQA
AQA AQA High AQA AQA AQA Selective
Inter-Active Yield Hybrid Bond AQA Flexible Selective Income
Allocation Bond Fund Credit AQA Allocation Opportunities Fund
Combined Fund Fund 25 March Strategies U3S Fund Fund Fund 27
1 January 2016 1 January 2016 1 January 2016 2016 Fund 1 January 1 October 2016 1 October 2016 February
to to to to 31 5 March 2016 to 2016 to to to 2016 to 31
31 December 31 December 31 December December 31 December 31 December 31 December 31 December December
2016 2016 2016 2016 2016 2016 2016 2016 2016

Proceeds from creation of units 106,171,470 418,000
2,429,000 11,541,800 5,939,500 9,044,390 10,747,391 3,900,000 62,151,38
9
Outflows from redemption of units (11,137,071) (152,562) (449,976) (1,511,643) (142,752) (8,457,243) - - (422,895)
Cash flows from/(used in) financing activities 95,034,399 265,438

1,979,024 10,030,157 (5,796,748) 587,147 10,747,391 3,900,000 61,728,49
4
6,080,993 562,887 63,510 1,284,129 549,176 7,195 658,602 1,067,276 1,888,218
Net increase in cash and cash equivalents
2,862,146 1,025,380 1,836,766 - - - - - -
Cash and cash equivalents at beginning of year
Exchange difference on translation 3,342,927 - - - - - - - 3,342,927
Cash and cash equivalents at end of year/period 12,286,066 1,588,267 1,900,276 1,284,129 549.176 7,195 658,602 1,067,276 5,231,145
19
Statement of cash flows (continued)

______________________________________________________________________________________
AQA Inter-Active AQA High

Allocation Yield Bond
Combined Fund Fund
20 April 2015 to 20 April 2015 to 31 20 April 2015
31 December December to 31
2015 2015 December 2015
Note
EUR EUR EUR
Cash flows used in operating activities
Operating loss (767,668) (169,153) (598,515)
Adjustments for:
Net losses on financial assets at fair value through
profit or loss 728,059 76,206 651,853
Operating (loss)/profit before working capital (39,609) (92,947) 53,338

movements
Movement in receivables (310,602) (73,278) (237,324)
Movement in accrued expenses and other payables 137,967 58,218 79,749
Cash flows used in operations (212,244) (108,007) (104,237)
Tax paid (2,767) (1,975) (792)

Net cash flows used in operating activities (215,011) (109,982) (105,029)
Cash flows used in investing activities

Purchase of financial assets at fair value through
profit or loss (20,430,603) (6,125,154) (14,305,449)
Proceeds from sale of financial assets at fair value
through profit or loss 3,101,774 - 3,101,774
Net cash flows used in investing activities (17,328,829) (6,125,154) (11,203,675)
Cash flows from financing activities
Proceeds from creation of units
21,095,000 7,410,000 13,685,000
Outflows from redemption of units
(689,540) (148,901) (540,639)
Cash flows from financing activities
20,405,460 7,261,099 13,144,361
Net movements in cash and cash equivalents 2,861,620 1,025,963 1,835,657
Cash and cash equivalents at the beginning of the

period - - -
Effect of foreign exchange rate fluctuations on cash
held 526 (583) 1,109
Cash and cash equivalents at the end of the period 7 2,862,146 1,025,380 1,836,766
20
Notes to the annual financial statements
__________________________________________________________________________________________
1 Company Information and basis of preparation

AQA UCITS Funds SICAV plc (the “Company”) is an open-ended collective investment scheme
organised as a multi-fund public limited liability company with variable share capital (SICAV)
incorporated in terms of the Companies Act (Cap 386, Laws of Malta) on
3 June 2011 with registration number SV359. The company qualifies as a ‘Maltese UCITS’ in terms of
the Investment Services Act (Marketing of UCITS) Regulations (S.L. 370.18, Laws of Malta).
These financial statements comprise the financial statements of the Company which include the
following licensed sub-funds collectively called “sub-funds” at 31 December 2016:
• AQA Inter-Active Allocation Fund
• AQA High Yield Bond Fund
• AQA Credit Strategies Fund (launched on the 5 March 2016)
• AQA Hybrid Bond Fund (launched on the 25 March 2016)
• AQA Selective Income Fund (launched on the 27 February 2016)
• AQA U3S Fund (launched on 04 January 2016 and liquidated on the 27 May 2016)
• AQA Selective Opportunities Fund (launched on 1 October 2016)
• AQA Flexible Allocation Fund (launched on 1 October 2016)
The financial statements have been prepared on the historical cost basis except for financial instruments
at fair value through profit or loss which are measured at fair value.
The financial statements have been prepared and presented in accordance with International Financial
Reporting Standards as adopted by the EU (“the applicable framework”). All references in these
financial statements to IAS, IFRS or SIC/IFRIC interpretations refer to those adopted by the EU. These
financial statements have also been prepared and presented in accordance with the provisions of the
Companies Act, 1995 (Cap 386, Laws of Malta).
The statement of financial position is organised in increasing order of liquidity with additional
disclosures on the current or non-current nature of the Company’s assets and liabilities provided within
the notes to the financial statements.
2 Judgements in applying accounting policies and key estimation uncertain

The preparation of financial statements in conformity with the applicable framework requires the
directors to make judgements, estimates and assumptions that affect both the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the year in which the estimates are revised and in any future years affected.
In the opinion of the directors, the accounting estimates and judgements made in the course of
preparing these financial statements are not difficult, subjective or complex to a degree which would
warrant their descriptions as significant and critical in terms of the requirements of IAS 1 (revised).
21
Notes to the annual financial statements (continued)
__________________________________________________________________________________________
3 Significant accounting policies

The accounting policies set out below have been applied consistently during the year.
3.1 Foreign currency translations
Transactions in foreign currencies have been converted into the functional currency at the spot rates of
exchange ruling on the date of the transaction. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year-end exchange rates of monetary assets
and liabilities denominated in foreign currencies are recognised in the statement of comprehensive
income.
3.2 Financial assets and financial liabilities
3.2.1 Recognition
The Company recognises financial assets on the date it commits to purchase the assets, using trade date
accounting. From this date any gains and losses arising from changes in fair value of the financial
assets are recorded in the period in which they arise.
Where applicable, interest income on financial assets at fair value through profit or loss is disclosed
within the line item ‘interest income’, while dividend income from financial assets at fair value through
profit or loss is recognised in the statement of comprehensive income within dividend income. Fair
value gains or losses are recognised within net gains/(losses) on financial assets at fair value through
profit or loss.
Financial liabilities are recognised when the entity becomes party to the contractual provisions of the
instrument.
Financial assets and financial liabilities are offset and the net amount presented in the statement of
financial position when the Company has a legally enforceable right to set off the recognised amounts
and intends to settle on a net basis or to realise the asset and settle the liability simultaneously.
3.2.2 Classification
The company classifies financial assets and financial liabilities into the following categories:
Financial assets at fair value through profit or loss:
(i) Held for trading – derivative financial instruments;

(ii) Designated as at fair value through profit or loss – Portfolio assets other than derivative
financial instruments.
Financial liabilities at fair value through profit and loss:
22
__________________________________________________________________________________________
3 Significant accounting policies (continued)

3.2 Financial assets and financial liabilities (continued)
3.2.2 Classification (continued)
(i) Held for trading – derivative financial instruments.
A financial asset or financial liability is classified as held for trading if it is acquired or incurred
principally for the purpose of selling or repurchasing in the near term or if on initial recognition is part
of a portfolio of identifiable financial investments that are managed together and for which there is
evidence of a recent actual pattern of short-term profit taking.
Derivative financial assets and derivative financial liabilities are classified as held for trading unless
they are designated as effective hedging instruments. During the year under review, the Company did
not designate any of its derivative financial instruments in a hedging relationship for accounting
purposes.
A forward currency contract involves an obligation to purchase or sell a specific currency at a future
date at a price set at the time the contract is made. Foreign exchange contracts are valued by reference
to the forward price at which a new forward contract of the same size and maturity could be undertaken
at the valuation date. The unrealised gain or loss on open foreign currency contract is calculated as the
difference between the contract rate and his forward price and is recognised in the statement of
comprehensive income.
(ii) Financial assets and financial liabilities designated at fair value through profit or loss
Financial assets and financial liabilities designated at fair value through profit or loss at inception are
financial instruments that are not classified as held for trading but are managed, and their performance
is evaluated on a fair value basis in accordance with the sub-funds’ documented investment strategy.
(iii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market other than those that are held for trading or are designated upon initial
recognition as at fair value through profit or loss or as available-for-sale financial assets or those for
which the Company may not recover substantially all of its initial investment other than because of
credit deterioration.
Financial liabilities include all financial liabilities, other than those classified as at fair value through
profit or loss and comprise accrued expenses and settlements payable.
3.2.3 Measurement
A financial asset or financial liability is measured initially at fair value plus, for an item not at fair
value through profit or loss, transaction costs that are directly attributable to its acquisition or issue.
Subsequent to initial recognition, all instruments classified at fair value through profit or loss are
measured at fair value with changes in their fair value recognised in the statement of comprehensive
income.
Financial assets classified as loans and receivables are carried at amortised cost using the effective
interest method, less impairment losses, if any.
23
__________________________________________________________________________________________

3.2.3 Measurement (continued)
Settlement and other receivables are stated at their nominal value. Appropriate allowances for
estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence that
the asset is impaired.
Financial liabilities, other than those at fair value through profit or loss, are stated at their nominal
value unless the effect of discounting is material in which case such liabilities are measured at
amortised cost using the effective interest rate method.
When applying the effective interest method, the annual amortisation of any discount or premium is
aggregated with other investment income receivable over the term of the instrument, if any, so that the
revenue recognised in each year represents a constant yield on the investment.
3.2.4 Fair value measurement principles
The fair value of quoted financial instruments is based on their quoted market prices at the reporting
date without any deduction for estimated future selling costs and adjusted for any tax effect on the
maturity of such instruments. Financial assets and financial liabilities are priced at current mid-market
or the last traded price where this falls within the bid-ask yield.
Unquoted investments are valued at initial value restated at fair value as determined by the directors,
acting on the advice of the Investment Manager or such other person commissioned and appointed from
time to time for that purpose by the directors. The fair value is estimated using valuation techniques,
including the use of recent arm’s length market transactions, reference to the current fair value of
another instrument that is substantially the same, discounted cash flow techniques, option pricing
models or any other valuation techniques that provide a reliable estimate of prices obtained in actual
market transactions.
Investments in collective investment schemes (private investment funds) are valued at fair value, as
determined by the administrator of the private investment fund and/or based on the independently
audited net asset values of the private investment funds.
For those private investment funds for which independently audited financial statements are not
available, the board of directors bases its valuation on the private investments funds’ net asset values as
calculated by the administrator of such private investment funds. It is possible that the underlying
private investment funds’ results may subsequently be adjusted when such results are subjected to an
audit, and the adjustments may be material. In determining fair value, the administrator utilises the
valuations of the underlying private investment funds to determine the fair value of its interest. The
underlying private investment funds value securities and other financial instruments on a mark-to-
market of fair value basis of accounting.
The fair value of investments that are not exchange-traded is estimated at the amount that the Company
would receive, or pay, to terminate the contract at the reporting date, taking into account current market
conditions, volatility, appropriate yield curve and the current creditworthiness of the counterparties.
The fair value of a forward contract is determined as the net present value of estimated future cash
flows, discounted at appropriate market rates on the valuation date.
24
_______________________________________________________________________________________

3.2.5 Identification and measurement of impairment
The carrying amount of financial assets other than those at fair value through profit or loss are reviewed
at each reporting date to determine whether there is any indication or objective evidence of impairment.
If any such indication or objective evidence exists, the recoverable amount of the asset is estimated.
Objective evidence that financial assets are impaired can include significant financial difficulty of the
issuer (or counterparty), a breach of contract, indications that the borrower will enter bankruptcy or
other financial reorganisation, the disappearance of an active market for that financial asset because of
financial difficulties and observable data indicating that there is a measurable decrease in the estimated
future cash flows since the initial recognition of those assets. If any such indication exists, an
impairment loss is recognised in the statement of comprehensive income as the difference between the
asset’s carrying amount and the present value of estimated future cash flows discounted at the financial
asset’s original effective interest rates.
If, in a subsequent year, the amount of an impairment loss recognised on a financial asset other than a
financial asset at fair value through profit and loss decreases and the reduction in value can be linked
objectively to an event occurring after the write-down, this is reversed through the statement of
comprehensive income. Where an impairment loss subsequently reverses, the carrying amount of the
asset is increased to the revised estimate of its recoverable amount, to the extent that the increased
carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in prior years.
3.2.6 Derecognition
The Company derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire, or when it transfers the financial asset in a transaction in which substantially all
the risks and rewards of ownership of the financial asset are transferred or in which the Company
neither transfers nor retains substantially all the risks and rewards of ownership and does not retain
control of the financial asset. Any interest in transferred financial assets that qualify for derecognition
that is created or retained by the Company is recognised as a separate asset or liability in the statement
of financial position. On derecognition of a financial asset, the difference between the carrying amount
of the asset (and the carrying amount allocated to the portion of the asset derecognised), and the
consideration received (including any new asset obtained less any new liability assumed) is recognised
in the statement of comprehensive income.
The Company enters into transactions whereby it transfers assets recognised on its statement of
financial position, but retains either all or substantially all of the risks and rewards of the transferred
assets or a portion of them. If all or substantially all risks and rewards are retained, then the transferred
assets are not derecognised. Transfers of assets with retention of all or substantially all risks and
rewards would include, for example, securities lending and repurchase transactions. The Company
derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.
25
__________________________________________________________________________________________

3.3 Redeemable shares
The Company classifies financial instruments issued as financial liabilities or equity instruments in
accordance with the substance of the contractual terms of instruments.
The redeemable shares provide investors with the right to require redemption for cash at a value
proportionate to the investor’s share in the sub-funds’ net assets at the redemption date and also in the
event of the sub-funds’ liquidation.
The redeemable shares are classified as financial liabilities and are measured at the present value of the
redemption amounts.
3.4 Cash and cash equivalents
Cash comprises current deposits with banks with original maturities of less than three months. Cash
equivalents are short-term highly liquid investments that are readily convertible to known amounts of
cash, are subject to an insignificant risk of changes in value, and are held for the purpose of meeting
short-term cash commitments rather than for investment or other purposes.
3.5 Net assets attributable to shareholders
The liability to participating shareholder is presented in the statement of financial position as “Net
assets attributable to holders of redeemable shares” and is determined based on the residual assets of
the Company after deducting all other liabilities.
3.6 Interest income and dividend income
Interest income is recognised in the statement of comprehensive income as it accrues using the
effective interest method and, where applicable, gross of withholding tax. Dividend income is
recognised when the right to receive payment is established.
3.7 Finance costs
Proposed distributions to holders of redeemable shares are recognised in the statement of

comprehensive income when they are appropriately authorised and no longer at the discretion of the
Company. This typically occurs when proposed distribution is ratified at the Annual General Meeting.
The distribution on the redeemable shares is recognised as a finance cost in the statement of
comprehensive income.
3.8 Net gain/(losses) from financial instruments at fair value through profit and loss
Net gain/loss from financial instruments at fair value through profit or loss includes all realised and
unrealised fair value changes and foreign exchange differences but excludes interest and dividend
income. Net realised gain from financial instruments at fair value through profit or loss is calculated
using the average cost method.
3.9 Expenses
All expenses, including management fees, administration fees and custodian fees, are recognised in the
statement of comprehensive income on an accrual basis and are accordingly expensed as incurred.
Formation expenses are recognised as an expense when incurred.
26
______________________________________________________________________________________

3.9 Expenses (continued)
Transaction costs are costs incurred to acquire financial assets or liabilities at fair value through profit
or loss. They include fees and commissions paid to agents, advisers, brokers and dealers. Transaction
costs, when incurred, are immediately recognised in profit or loss as an expense.
3.10 Functional and presentation currency
The financial statements are presented in Euro (EUR), which is the presentation currency of the all sub-
funds, rounded to the nearest unit.
3.11 Taxation
Under the current system of taxation in Malta the Company is exempt from paying taxes on income,
profits or capital gains. Dividend and interest income received by the Company may be subject to
withholding tax imposed in the country of origin.
3.12 Initial application of an International Financial Reporting Standard and International Financial
Reporting Standards in issue but not yet effective
Initial application of an International Financial Reporting Standard
During the year, the Company adopted the following new and revised accounting standards in the
preparation of these financial statements:
• On 18 December 2014, the IASB issued an amendment to IAS 1 Presentation of Financial
Statements. The amendments aim at clarifying IAS 1 to address perceived impediments to
preparers exercising their judgement in presenting their financial reports. The amendments are
designed to further encourage companies to apply professional judgement in determining what
information to disclose in their financial statements. The amendments make clear that
materiality applies to the whole of financial statements and that the inclusion of immaterial
information can inhibit the usefulness of financial disclosures. Furthermore, the amendments
clarify that companies should use professional judgement in determining where and in what
order information is presented in the financial disclosures. This amendment is applicable for
annual periods beginning on or after 1 January 2016.
International Financial Reporting Standard in issue but not yet effective
At the date of authorisation of these financial statements the following standards, revisions and
interpretations were in issue but not yet effective:
IFRS 9 – Financial instruments The final version of IFRS 9 brings together the classification and
measurement, impairment and hedge accounting phases of the IASB's project to replace IAS 39
'Financial Instruments: Recognition and Measurement'. The Standard supersedes all previous versions
of IFRS 9.
IFRS 9 introduces a logical approach for the classification of financial assets, which is driven by cash
flow characteristics and the business model in which an asset is held. This single, principle-based
approach replaces existing rule based requirements that are generally considered to be overly complex
and difficult to apply.
The new model also results in a single, forward-looking ‘expected loss’ impairment model that will
require more timely recognition of expected credit losses. IFRS 9 introduces a substantially-reformed
model for hedge accounting, with enhanced disclosures about risk management activity. The new
model represents a significant overhaul of hedge accounting that aligns the accounting treatment with
risk management activities, enabling entities to better reflect these activities in their financial
statements.
27
____________________________________________________________________________________________________________________________________________________

3.12 Initial application of an International Financial Reporting Standard and International Financial Reporting Standards in issue but not yet effective (continued)
IFRS 9 also removes the volatility in profit or loss that was caused by changes in the credit risk of liabilities elected to be measured at fair value. This change in accounting
means that gains caused by the deterioration of an entity’s own credit risk on such liabilities are no longer recognised in profit or loss. This standard is applicable for annual
periods beginning on or after 1 January 2018.
The directors anticipate that the adoption of International Financial Reporting Standards that were in issue at the date of authorisation of these financial statements but not yet
effective, will have no material impact on the financial statements of the company in the period of initial application.
4 Share capital
The Company’s capital is represented by the redeemable shares outstanding. The number of shares at the end of the year is analysed below:
AQA Inter- AQA High Yield AQA Hybrid AQA Credit AQA AQA Flexible AQA Selective AQA Selective
Active Allocation Bond Bond Strategies Fund U3S Allocation Opportunities Income
Fund Fund Fund Fund Fund Fund Fund
No. of shares No. of shares No. of shares No. of shares No. of shares No. of shares No. of shares No. of shares
31 December 2016
Units in issue at the beginning of the year/period 72,619 131,961 - - - - - -
Subscription of units during the year/period
Class A – EUR 4,351 25,127 115,782 59,281 28,400 107,917 39,000 228,212
Class B - EUR - - - - 67,200 - - -
Class C – USD - - - - - - - 429,928
Redemption of units during the year/period
Class A – EUR (1,566) (4,629) (14,769) (1,400) (28,400) - - (3,690)
Class B - EUR - - - - (67,200) - - -
Class C – USD - - - - - - - (184)
Units in issue at the end of the year/period 75,404 152,459 101,013 57,881 - 107,917- 39,000- 654,266
28
__________________________________________________________________________________________
4 Share capital (continued)

Allocation Fund Bond Fund
31 December 2015 No. of shares No. of shares

Units in issue at the beginning of the period - -
Subscription of units during the period
Class A - EUR 74,119 125,115
Class B - EUR - 12,362
Redemption of units during the period

Class A - EUR (1,500) (5,516)
Class B - EUR - -
Units in issue at the end of the period 72,619 131,961
The authorised share capital of the Company amounting to 10,000,001,000 shares has not been assigned
any nominal value. The paid-up share capital of the Company shall at all times be equal to the net asset
value of the sub-funds. The Company was incorporated by the issue of 1,000 founder shares with no
nominal value. The effect of the proceeds from the issue of the founder shares is reflected in the combined
amounts in these annual financial statements.
5 Management fees and other expenses

(a) Performance fees
Inter-Active Allocation Fund

The Investment Manager receives a performance fee of 5% on the appreciation in the Net Asset Value of
the Sub-Fund over the previous High Watermark (“HWM”), as defined in offering supplement,
multiplied by the number of Investor Shares in issue for each class of investor share.
For the year ended 31 December 2016 investment manager fees for Inter-Active Allocation Fund
amounted to nil (2015: nil) of which nil was due as at December 2016 (2015: nil).
AQA High Yield Bond Fund
The Investment Manager receives a performance fee of 5% on the appreciation in the Net Asset Value of
the Sub-Fund over the previous High Watermark (“HWM”), as defined in offering supplement,
For the year ended 31 December 2016 investment manager fees for AQA High Yield Bond Fund
amounted to nil (2015: nil) of which nil was due as at December 2016 (2015: nil).
AQA Hybrid Bond Fund
The Investment Manager receives a performance fee of 20% on the appreciation in the Net Asset Value
of the Sub-Fund over the previous High Watermark (“HWM”), as defined in offering supplement,
For the period ended 31 December 2016 investment manager fees for AQA Hybrid Bond Fund amounted
to EUR208,822 of which EUR208,822 was due as at December 2016.
29
__________________________________________________________________________________________
5 Management fees and other expenses (continued)
(a) Performance fees (continued)
AQA Credit Strategies Fund
For the period ended 31 December 2016 investment manager fees for AQA Credit Strategies Fund
amounted to EUR25,221 of which EUR25,221 was due as at December 2016.
AQA U3S Fund
For the period ended 31 December 2016 investment manager fees for AQA U3S Fund amounted to nil of
which nil was due as at December 2016.
AQA Flexible Allocation Fund
The Investment Manager receives no performance fee on AQA Flexible Allocation Fund.
AQA Selective Opportunities Fund
For the period ended 31 December 2016 investment manager fees for AQA Selective Opportunities Fund
AQA Selective Income Fund
The Investment Manager receives no performance fee on the AQA Selective Income Fund.
(b) Management fees
AQA Inter-Active Allocation Fund
The Investment Manager receives a fee of 1.5% per annum of the net asset value of the sub-fund in
respect of Class A and 0.8% per annum of the net asset value of the sub-fund in respect of Class B as
well as reimbursement of out-of-pocket expenses.
For the year ended 31 December 2016 investment manager fees for AQA Inter-Active Allocation Fund
amounted to EUR108,871 (2015: EUR44,274), of which EUR27,826 (2015: EUR27,504) was due as at
December 2016.
30
__________________________________________________________________________________________
(b) Management fees (continued)
respect of Class A and 0.8% per annum of the net asset value of the sub-fund in respect of Class B as well
as reimbursement of out-of-pocket expenses.
For the year ended 31 December 2016 investment manager fees for AQA High Yield Bond Fund
amounted to EUR 190,620 (2015: EUR84,161), of which EUR51,432 (2015: EUR39,394) was due as at
December 2016.
The Investment Manager receives a fee of 2% per annum of the net asset value of the sub-fund as well as
reimbursement of out-of-pocket expenses.
For the period ended 30 December 2016 investment manager fees for AQA Hybrid Bond Fund amounted
respect of Class A and 0.75% per annum of the net asset value of the sub-fund in respect of Class B as
well as reimbursement of out-of-pocket expenses.
For the period ended 31 December 2016 investment manager fees for AQA Credit Strategies Fund
AQA U3S Fund
The Investment Manager receives a fee of 1.45% per annum of the net asset value of the sub-fund as well
For the period ended 31 December 2016 investment manager fees for AQA U3S Fund amounted to
EUR46,626 of which nil was due as at December 2016.
For the period ended 31 December 2016 investment manager fees for AQA Flexible Allocation Fund
respect of the Class A R Retail EUR Shares and 1.0% per annum of the net asset value of the sub-fund in
respect of the Class B Institutional EUR Shares as well as reimbursement of out-of-pocket expenses.
For the period ended 31 December 2016 investment manager fees for AQA Selective Opportunities Fund
31
__________________________________________________________________________________________
(b) Management fees (continued)
For the period ended 31 December 2016 investment manager fees for AQA Selective Income Fund
(c) Custodian fees
The Custodian receives a fee of 0.05% per annum of the net asset value of the sub-fund as per Custodian
Agreement. The Custody fee is subject to a minimum fee of EUR20,000 per annum reduced to
EUR18,000 for the first year from commencement date.
For the year ended 31 December 2016 custodian fees for AQA High Yield Bond Fund amounted to EUR
16,548 (2015: EUR10,505), of which EUR 16,500 (2015: EUR10,505) was due as at December 2016.
AQA Interactive Allocation Fund
EUR18,000 for the first year from commencement date
For the year ended 31 December 2016 custodian fees for AQA Interactive Allocation Fund amounted to
EUR 16,500 (2015: EUR7,546), of which EUR 16,500 (2015: EUR7,546) was due as at December 2016.
Agreement. The Custody fee is subject to a minimum fee of EUR15,000 per annum for the first two
years, with a minimum of EUR20,000 thereon.
For the period ended 31 December 2016, custodian fees for AQA Hybrid Bond Fund amounted to EUR
11,557 of which EUR11,557 was due as at December 2016.
Agreement. The Custody fee is subject to a minimum fee of EUR20,000 per annum in respect of each
class of Investor shares which is being reduced to EUR15,000 for the first two years.
For the period ended 31 December 2016, custodian fees for AQA Credit Strategies Fund amounted to
EUR12,377 of which EUR12,377 was due as at December 2016.
AQA U3S Fund
EUR18,000 for the first year from commencement date.
For the period ended 31 December 2016 investment manager fees for AQA U3S Fund amounted to
EUR6,672 of which EUR nil was due as at December 2016.
32
__________________________________________________________________________________________
(c) Custodian fees (continued)
Agreement. The Custody fee is subject to a minimum fee of EUR13,000 per annum.
For the period ended 31 December 2016 custodian fees for AQA Flexible Allocation Fund amounted to
EUR15,000 for the first year and EUR16,500 for the second year from the commencement date.
For the period ended 31 December 2016 custodian fees for AQA Selective Opportunities Fund amounted
Agreement. The Custody fee is subject to a minimum fee of EUR15,000 per annum.
For the period ended 31 December 2016 investment manager fees for AQA Selective Income Fund
(d) Administration fees
The Administrator receives a fee of 0.08% of the net asset value of the sub-fund subject to a minimum
fee of EUR22,500 per annum. The Administrator is also entitled to receive agreed upon fixed fees for the
preparation of unaudited financial statements for the sub-fund, investor transactions and maintenance of
investor accounts The Administrator is also entitled to recover out-of-pocket expenses.
For the year ended 31 December 2016 administration fees for Inter-Active Allocation Fund amounted to
EUR22,500 (2015: EUR9,431) of which EUR5,595(2015: EUR5,671) was due as at December 2016.
For the year ended 31 December 2016 administration fees for AQA High Yield Bond Fund amounted to
EUR22,500 (2015: EUR 13,129) of which EUR5,595 (2015: EUR5,671) was due as at December 2016.
33
__________________________________________________________________________________________
(d) Administration fees (continued)
The Administrator receives a fee of 0.1% of the net asset value of the sub-fund subject to a minimum fee
of EUR12,500 per annum. The Administrator is also entitled to receive agreed upon fixed fees for the
For the period ended 31 December 2016 administration fees for AQA Hybrid Bond Fund amounted to
For the period ended 31 December 2016 administration fees for AQA Credit Strategies Fund amounted
to EUR 18,567 of which EUR5,657 was due as at December 2016.
AQA U3S Fund
For the period ended 30 December 2016 administration fees for AQA U3S Fund amounted to EUR 9,098
of which nil was due as at December 2016.
For the period ended 31 December 2016 administration fees for AQA Flexible Allocation Fund amounted
For the period ended 31 December 2016 administration fees for AQA Selective Income Fund amounted
34
__________________________________________________________________________________________
(d) Administration fees (continued)
fee of EUR25,000 per annum. The Administrator is also entitled to receive agreed upon fixed fees for
the preparation of unaudited financial statements for the sub-fund, investor transactions and
maintenance of investor accounts The Administrator is also entitled to recover out-of-pocket expenses.
For the period ended 31 December 2016 administration fees for AQA Selective Income Fund amounted
6 Taxation
The Company
In terms of current Maltese fiscal legislation, collective investment schemes are classified as either
‘prescribed’ or ‘non-prescribed’ funds.
A collective investment scheme which declares that the value of its assets situated in Malta allocated
thereto for the purpose of its operations does not exceed eighty five per cent of the value of its total
assets is treated as a non-prescribed fund.
On this basis, the AQA Inter-Active Allocation Fund and the AQA High Yield Bond Fund qualify as
non-prescribed funds for Maltese income tax purposes.
Accordingly, the sub-funds within the Company are exempt from Maltese income tax except in respect
of any income from immovable property situated in Malta.
Capital gains, dividends, interest and any other income from foreign investments held by the sub-funds
within the Company may nonetheless be subject to tax imposed by the country of origin concerned and
any such taxes are not recoverable by the sub-funds within Company or by the members.
Members not resident in Malta
Capital gains accruing to members not resident in Malta upon a redemption or transfer of shares or
upon a distribution on a winding-up of the Company are not subject to tax in Malta.
However, the redemption or transfer of shares and any distribution on a winding-up of the Company
may result in a tax liability for the members according to the tax regime applicable in their respective
countries of incorporation, establishment, residence, citizenship, nationality or domicile, or other
relevant jurisdiction.
Withholding tax expense
Certain interest income received by the Company is subject to withholding tax imposed in the country
of origin.
35
____________________________________________________________________________________________________________________________________________________
7 Cash and cash equivalents

AQA Inter- AQA High Yield AQA Hybrid AQA Selective
Active Bond Bond AQA Credit AQA U3S AQA Flexible AQA Selective Income Fund
Allocation Fund Fund Strategies Fund Allocation Fund Opportunities
Combined Fund Fund Fund

31 December 2016
Cash at bank and on hand 12,286,066 1,588,267 1,900,276 1,284,129 549,176 7,195 658,602 1,067,276 5,231,145
AQA Inter- AQA High Yield AQA Hybrid AQA Selective

Active Bond Bond AQA Credit AQA U3S AQA Flexible AQA Selective Income Fund
Allocation Fund Fund Strategies Fund Allocation Fund Opportunities
Combined Fund Fund Fund

31 December 2015
Cash at bank and on hand 2,862,146 1,025,380 1,836,766 - - - - - -
Cash at bank represents current account deposits.
36
AQA UCITS Funds SICAV p.l.c.
__________________________________________________________________________________________
8 Financial assets at fair value through profit or loss
8.1 Summary of the composition of the portfolio of investments
AQA Inter- AQA High AQA AQA

Active Yield Hybrid Credit
Allocation Bond Bond Strategies
Combined Fund Fund Fund Fund
31 December 2016 EUR EUR EUR EUR EUR
Financial assets designated as
at fair value through profit or
loss
Debt instruments 101,588,157 5,466,696 12,904,270 9,840,766 312,552
Exchange Traded Funds 1,680,317 304,370 - - 1,375,947
Collective Investment Schemes 3,732,632 - - - 3,732,632
Equities 2,726,055 - - - -
Derivatives- Futures 13,639 - - - 3,449
Derivatives-Options 90,203 64,816 - - -
109,831,003 5,835,882 12,904,270 9,840,766 5,424,580
AQA AQA AQA

Selective Flexible AQA Selective
Opportunities Allocation U3S Income
Fund Fund Fund Fund
31 December 2016 EUR EUR EUR EUR
Financial assets designated as
at fair value through profit or
loss
Debt instruments 463,266 9,909,282 - 62,691,325
Exchange Traded Funds - - - -
Collective Investment Schemes - - - -
Equities 2,726,055 - - -
Derivatives- Futures 10,190 - - -
Derivatives-Options 25,387 - - -
3,224,898 9,909,282 - 62,691,325
37
__________________________________________________________________________________________
8 Financial assets at fair value through profit or loss (continued)

8.1 Summary of the composition of the portfolio of investments (continued)

Combined Allocation Fund Bond Fund
31 December 2015 EUR EUR EUR

Financial assets designated as at fair value
through profit or loss
Debt instruments 16,593,416 6,042,703 10,550,713

Derivatives 40,001 40,001 -
16,633,417 6,082,704 10,550,713
AQA Inter- AQA High AQA AQA

Active Yield Hybrid Credit
Allocation Bond Bond Strategies
Combined Fund Fund Fund Fund
31 December 2016 EUR EUR EUR EUR EUR
Financial liabilities designated
as at fair value through profit
or loss
Derivatives-Futures (34,116) - - (29,626) (4,490)
Derivatives-Options (101,585) (40,772) (5,750) (52,188) -
Derivatives-Forwards (1,629,041) - (38,905) - -
(1,764,742) (40,772) (44,655) (81,814) (4,490)
AQA Selective AQA Flexible AQA AQA

Opportunities Allocation U3S Selective
Fund Fund Fund Income
Fund
31 December 2016 EUR EUR EUR EUR
Financial liabilities designated -
as at fair value through profit
or loss
Derivatives-Options - (2,875) - -
Derivatives-Forwards (96,640) - - (1,493,496)
(96,640) (2,875) - (1,493,496)
Combined AQA Inter-Active

Allocation Fund
EUR EUR
31 December 2015
Financial liabilities designated as at fair value through profit
or loss
Derivatives (33,173) (33,173)
(33,173) (33,173)
38
__________________________________________________________________________________________

The table below sets the composition of the portfolio of the Fund as at 31 December 2016:
Total Percentage Percentage

of portfolio of net assets
EUR
31 December 2016 % %
Debt instruments traded on a regulated

market
Corporate bonds 3,938,387 67.48 53.48
Sovereign bonds 1,528,309 26.19 20.75
Exchange Traded Funds 304,370 5.22 4.13
5,834,066 98.89 78.36
Derivatives assets
Options 64,816 1.11 0.88
5,835,882 100.00 79.24
100.00

EUR
31 December 2015 % %
Debt instruments traded on a regulated

market
Corporate bonds 4,066,218 82.74 70.99
Sovereign bonds 1,976,485 16.60 14.24
6,042,703 99.34 85.23
Derivatives assets
Options 40,001 0.66 0.56
6,082,704 100.00 85.79
39
__________________________________________________________________________________________

AQA Inter-Active Allocation Fund (continued)
31 December 2016 % of total % of net

EUR
liabilities assets
Financial liabilities at fair value through
profit or loss
Derivatives
Options (40,772) (38.69) (0.55)
(40,772) (38.69) (0.55)
31 December 2015
% of total % of net
EUR
liabilities assets
profit or loss
Derivatives
Options (28,489) (31.17) (0.40)
Futures (4,684) (5.13) (0.07)
(33,173) (36.30) (0.47)
Issuers of the above debt instruments are categorised as follows:

Percentage Percentage
Total of portfolio of net assets
31 December 2016 EUR % %
Eurozone 4,909,531 84.12 66.67

EU non-Eurozone 246,580 4.23 3.35
United States 434,927 7.45 5.91
Other 244,844 4.20 3.32
5,835,882 93.67 79.25
Issuers of the above debt instruments are categorised as follows:
Eurozone 5,145,075 84.58 72.57

EU non-Eurozone 246,970 4.06 3.48
United States 409,132 6.73 5.77
Other 241,526 3.97 3.41
6,042,703 99.34 85.23
40
__________________________________________________________________________________________

Financial liabilities at fair value through 2016 Percentage of Percentage

profit or loss EUR total liabilities of net assets
% %
Held for trading
Fair value of open option contracts (40,722) (38.69) (0.55)

(40,722) (38.69) (0.55)
Financial assets at fair value through profit 2016 Percentage of Percentage

or loss EUR total portfolio of net assets
% %
Held for trading
Fair value of open option contracts 64,816 0.11 0.88

64,816 0.11 0.88
Financial liabilities at fair value through Percentage of Percentage

2015
profit or loss total liabilities of net assets
EUR
% %
Held for trading

Fair value of open futures contracts (4,684) (5.13) (0.07)
(33,173) (36.30) (0.47)
Investment in open future contracts 2016

Financial assets at fair value through profit or loss EUR
Held for trading
Notional amount 227,908
Investment in open options
Financial assets at fair value through profit or loss
41
__________________________________________________________________________________________

Investment in open future contracts

2015
Held for trading
Investment in open options
Financial assets at fair value through profit or loss
None of the financial assets at fair value through profit or loss as at 31 December 2016 were pledged.
Debt instruments traded on a regulated market
Corporate bonds 12,904,270 100.00 86.21

12,904,270 100.00 86.21
The table below sets the composition of the portfolio of the Fund as at 31 December 2015.
Debt instruments traded on a

regulated market
Corporate bonds 10,444,588 98.99 83.25
Sovereign bonds 106,125 1.01 0.85
10,550,713 100.00 84.10
% of total % of net
EUR
liabilities assets
31 December 2016
profit or loss
Derivatives
Options (5,750) (4.18) (0.04)
Forwards (38,905) (28.32) (0.26)
(44,655) (32.50) (0. 30)
42
__________________________________________________________________________________________


Issuers of the above financial assets are categorised as follows:

Eurozone 10,864,463 84.19 72.58

EU non-Eurozone 621,962 4.82 4.16
United States 1,103,220 8.55 7.37
Other 314,625 2.44 2.10
12,904,270 100.00 86.21
2016
EUR
Financial liabilities at fair value through Percentage of Percentage
profit or loss total liabilities of net assets
% %
Held for trading
(5,750) (4.18) (0.04)
Investment in open options 2016

EUR
Financial liabilities at fair value through profit or loss
Held for trading
Notional amount (78,387)
Corporate bonds 9,464,950 96.18 86.61

Corporate financial bonds 375,816 3.82 3.44
9,840,766 100.00 90.05
43
__________________________________________________________________________________________

AQA Hybrid Bond Fund (continued)

% of total % of net
EUR
liabilities assets
Financial liabilities at fair value
through profit or loss
Derivatives
Options (52,188) (13.72) (0.48)
Futures (29,626) (7.79) (0.27)
(81,814) (21.51) (0.75)

Eurozone 9,347,606 94.99 85.83

EU non-Eurozone 493,160 5.01 4.51
9,840,766 100.00 90.05
Financial liabilities at fair value through 2016 Percentage of Percentage

profit or loss Total total liabilities of net assets
EUR % %
Held for trading

(81,814) (21.51) (0.75)
44
__________________________________________________________________________________________

AQA Hybrid Bond Fund (continued)
Investment in open option contracts

2016
Held for trading

2016
Financial liabilities at fair value through profit or loss EUR
Held for trading
Notional amount (3,655,985)
AQA U3S Fund
None of the financial assets/liabilities were held by the Fund as at 31 December 2016.
Debt instruments traded on a

regulated market
Corporate bonds 312,552 5.76 5.27
Collective investment scheme 3,732,632 68.81 62.97
Exchange traded funds 1,375,947 25.37 23.21
Futures 3,449 0.06 0.06
5,424,580 100.00 91.51
Percentage
Financial liabilities at fair value through 2016 Percentage of
of total
profit or loss Total net assets
liabilities
EUR %
%
Derivatives
Futures (4,490) (7.41) (0.08)
(4,490) (7.41) (0.08)
45
__________________________________________________________________________________________

AQA Credit Strategies Fund (continued)
Eurozone 4,511,592 83.16 76.11

United States 302,709 5.58 5.11
Other 192,418 3.55 3.25
Super national Institutions 417,861 7.70 7.05
5,424,580- 100.00- 91.51 -
Percentage of
Financial liabilities at fair value through Percentage of net
Total total
profit or loss assets
EUR liabilities
%
%
Held for trading

(4,490) (7.41) (0.08)
Financial assets at fair value through 2016 Percentage of Percentage of net

profit or loss Total total portfolio assets
EUR % %
Held for trading
Fair value of open futures contracts 3,449 (0.06) (0.06)
3,449 (0.06) (0.06)
46
__________________________________________________________________________________________

AQA Credit Strategies Fund (continued)

2016
Investment in open future contracts EUR
Financial assets/liabilities at fair value through profit or loss

Held for trading
Notional amount-assets 372,291
Notional amount-liabilities (2,709)
369,582
As of 31 December 2016, investments with a fair value of EUR1,869,181 held by the AQA Credit
Strategies Fund are valued based on the latest unaudited net asset value as calculated by the custodian, all
of which are considered by the portfolio manager to be non-redeemable. Independently audited financial
statements for these investments are not readily available as at the reporting date of the fund. As a result,
the valuation of these collective investment schemes, cannot be corroborated against independently audited
net asset values as at 31 December 2016 and has been based on net assets values as calculated by the
administrators of the underlying funds or custodian. Because of the inherent uncertainty in the above
valuations, reported figures might differ from the values that would have been obtained had independently
audited net asset values as at 31 December 2016 been available. The ultimate outcome of these
uncertainties cannot at present be reliably determined.

Corporate bonds 2,015,900 20.34 18.73
Corporate bonds financial 7,893,382 79.66 73.33
9,909,282 101001011111
100.00 92.06
2016 % of total % of net

EUR liabilities assets
profit or loss
Derivatives
Options (2,875) (13.81) (0.03)
(2,875) (13.81) (0.03)
47
__________________________________________________________________________________________

AQA Flexible Allocation Fund (continued)

Eurozone 9,508,862 95.96 88.34

United States 400,420 4.04 3.71
9,909,282 100.00 92.05
Financial liabilities at fair value through Percentage of Percentage of

Total
profit or loss total liabilities net assets %
EUR
% %
Held for trading
Investment in open option contracts

2016
Held for trading
Notional amount 47
48
__________________________________________________________________________________________



Corporate bonds 463,266 14.37 11.17
Equities 2,726,055 84.53 65.73
Options 25,387 0.79 0.61
Futures
Futures 10,190 0.32 0.25
3,224,898 100.00 77.75
Eurozone 925,697 29.02 22.39

EU non -Eurozone 328,450 10.30 7.92
United States 1,561,686 48.97 37.65
Other 373,488 11.71 9.00
3,189,321 100.00 76.96

2016
Financial assets/liabilities at fair value through profit or loss EUR
Held for trading
Notional amount-liabilities (720,536)
Investment in open options contracts

2016
Financial liabilities at fair value through profit or loss EUR
Held for trading
Notional amount (1,070,232)
49
__________________________________________________________________________________________



Corporate bonds 59,613,324 95.09 88.92
Corporate financial bonds 3,078,001 4.91 4.59
62,691,325 100 93.51
2016 % of total % of net

EUR liabilities assets
profit or loss
Derivatives
Forwards (1,493,496) (84.39) (2.23)

Eurozone 4,804,993 7.66 7.17

United States 55,943,373 89.24 83.45
Other 1,942,959 3.10 2.90
62,691,325 100.00 93.52
9 Transactions with related parties

(a) Directors
During the reporting year, Directors’ remuneration amounted to EUR38,379 (2015: EUR19,843) as
disclosed separately on statement of comprehensive income. Directors are entitled to a maximum of
EUR60,000 (2015: EUR60,000 per annum) per annum. There were no other payments to key
management personnel as defined in IAS 24 Related Party Disclosures.
(b) Management fees
Total management fees for the reporting year ending 31 December 2016 amounted to EUR834,244
(2015: EUR128,435) as disclosed separately on the statement of comprehensive income.
50
______________________________________________________________________________________
9 Transactions with related parties (continued)
(c) Administration fees
Total administration fees for the reporting year ending 31 December 2016, amounted to EUR132,674
(2015: EUR22,560) as disclosed separately on the face of the statement of comprehensive income.
(d) Performance fees
Total performance fees for the reporting year ending 31 December 2016, amounted EUR278,909 (2015:
nil) as disclosed separately on the face of the statement of comprehensive income.
(e) Founder shares
999 Founder Shares are held by AQA Capital Holding Limited, and 1 Founder share is held by AQA
Capital Limited as at 31 December 2016 and 2015.
10 Financial instruments and associated risks

The Company is established as an investment company with variable share capital (SICAV) which
implies that financial instruments are extensively used in the course of its routine business. The sub-
funds may invest in securities, deposits with credit institutions, investments in units of other Collective
Investment Schemes, financial derivative instruments or OTC financial derivative instruments for the
purposes of efficient portfolio management only and ancillary liquid assets.
Tactical allocation of sub-funds’ assets is determined by the Investment Manager, setting the risk
management limits in line with the investment strategy of each sub-fund at the prevailing market
circumstances.
The nature and extent of the financial instruments outstanding at the reporting date and the risk
management policies employed by the sub-funds are discussed below.
10.1 Market risk
Market risk encapsulates the potential for gains and losses in the valuation of the underlying securities,
including gains and losses arising from currency risk, interest rate risk and price risk.
The strategy of each sub-fund relating to the management of investment risk is derived from the sub-
fund’s investment objective, which is clearly outlined in the prospectus of the SICAV. The Investment
Manager monitors the sub-funds market exposures within the pre-determined Investment Restrictions on
a daily basis whilst the overall market exposures are also monitored on a quarterly basis by the Board of
Directors.
Details of the nature of the sub-funds’ investment portfolio as at the reporting date are disclosed in note 9
10.1.1 Currency risk
The sub-funds may hold foreign cash balances, as well as invest in financial instruments and enter into
transactions denominated in currencies other than the respective functional currency. Consequently, the
sub-funds are exposed to risks that the exchange rate of the functional currencies relative to other foreign
currencies may change in a manner that have adverse effect on the value of that portion of the sub-funds’
assets denominated in currencies other than the functional currency.
The sub-funds currency risk is managed on a daily basis by the Investment Manager in accordance with
policies and procedures in place.
51
__________________________________________________________________________________________
10 Financial instruments and associated risks
10.1.1 Currency risk (continued)
As at the reporting date the sub-funds had the following open currency exposures.
31 December 2016 EUR % of total assets

Currency
US Dollars 1,299,429 8.60
GBP 249,044 1.65

Currency
US Dollars 1,256,234 9.95
GBP 130,590 1.03

Currency
US Dollars 724,164 9.69

Currency
US Dollars 662,691 9.23

Currency
US Dollars (42,205) (0.37)
AQA U3S Fund
As at the reporting date the sub-fund had no open currency exposures.

Currency
US Dollars 708,040 11.82%
GBP 250,831 4.19%
Indian Rupee 57,269 0.96%
Russian Rubble 120,134 2.01%
South African Rand 61,499 1.03%
Brazilian Real 73,650 1.23%
52
__________________________________________________________________________________________
10 Financial instruments and associated risks (continued)

10.1 Market risk (continued)

Currency
US Dollars 518,402 4.81

Currency
US Dollars 2,644,448 59.64
GBP 96,194 2.17
CHF 149,328 3.37
DKK 74,571 1.68

Currency
US Dollars 62,691,325 91.12
Sensitivity Analysis
As at 31 December 2016, had the functional currency of the Fund strengthened by 5% in relation to the
other currencies with all other variables held constant, net assets attributable to holders of redeemable
shares would have decreased by the amounts shown below.
31 December 2016 EUR

Currency
US Dollars
36,208

Currency
US Dollars
33,135
53
__________________________________________________________________________________________

Currency
US Dollars 64,971
GBP 12,452

Currency
US Dollars 62,812
GBP 6,530

Currency
US Dollars (2,110)
AQA U3S Fund
As at the reporting date the sub-fund had no currency risk.

Currency
US Dollars 35,402
GBP 12,541
Indian Rupee 2,863
Russian Rubble 6,007
South African Rand 3,075
Brazilian Real 3,682
54
___________________________________________________________________________

Currency
US Dollars 25,920

Currency
US Dollars 132,222
GBP 4,810
CHF 7,466
DKK 3,729

Currency
US Dollars 3,134,566
10.1.2 Interest rate risk
A substantial amount of the sub-fund’s financial assets are interest-bearing securities and are hence
exposed to fair value interest rate risk arising from fluctuations in the prevailing levels of market interest
rates.
Sensitivity Analysis
The interest rate risk is managed on a daily basis by the Investment Manager in line with the pre-
determined policies and procedures in place. The overall interest rate risk is monitored on a quarterly
basis by the Board of Directors.
55
___________________________________________________________________________
10.1.2 Interest rate risk (continued)
The table below sets out the impact on the relative net assets of each sub-fund as at
31 December 2015 in the event that worldwide yield curves experience a parallel 25bps/50bps shift
upwards or downwards.
Yield Curve Shift
EUR
AQA Inter-Active Allocation Fund 31 December 2016
+25bps 13,667
-25bps -13,667
+50bps 27,333
-50bps -27,333
EUR
AQA Inter-Active Allocation Fund 31 December 2015
+25bps 15,107
-25bps -15,107
+50bps 30,214
-50bps -30,214
EUR
AQA High Yield Bond Fund 31 December 2016
+25bps 32,261
-25bps -32,261
+50bps 64,521
-50bps -64,521
56
__________________________________________________________________________________________

EUR
AQA High Yield Bond Fund 31 December 2015
+25bps 26,377
-25bps -26,377
+50bps 52,574
-50bps -52,574
EUR
AQA Hybrid Bond Fund 31 December 2016
+25bps 24,602
-25bps -24,602
+50bps 49,204
-50bps -49,204
AQA U3S Fund
As at the reporting date the sub-fund had no open currency exposures.

EUR
AQA Credit Strategies Fund 31 December 2016
+25bps 781
-25bps -781
+50bps 1,563
-50bps -1,563
57
______________________________________________________________________________________

EUR
AQA Flexible Allocation Fund 31 December 2016
+25bps 24,773
-25bps -24,773
+50bps 49,546
-50bps -49,546
EUR
AQA Selective Opportunities Fund 31 December 2016
+25bps 1,158
-25bps -1,158
+50bps 2,316
-50bps -2,316
EUR
AQA Selective Income Fund 31 December 2016
+25bps 156,728
-25bps -156,728
+50bps 313,457
-50bps -313,457
10.1.3 Price risk
Price risk is the risk that the value of the underlying assets will fluctuate as a result of changes in market
prices (other than those arising from interest rate risk or currency risk). These can arise from factors
specific to an individual investment or its issuer, better known as idiosyncratic risk, or from factors
affecting total market sentiment, better known as systemic risk.
Idiosyncratic price risk is managed through the construction of a well-diversified portfolio of investments
traded on various markets. Systemic risk cannot be eliminated completely by diversification and hence
investors in the respective sub-funds forming part of this SICAV are subject to the sub-funds relative
systemic market risk.
58
__________________________________________________________________________________________

10.1.3 Price risk (continued)
As the majority of the sub-funds financial instruments are carried at fair value with fair value changes
recognised in the statement of comprehensive income, all changes in market conditions will directly
affect the sub-funds financial statements.
10.2 Credit and settlement risk
Credit risk is the risk that counterparty to a financial instrument will fail to honour an obligation or
commitment that it has entered into with the respective Fund.
Settlement risk is the risk of loss due to failure of counterparty to honour its obligations to deliver cash,
securities and/or other assets as contractually agreed. Risk relating to unsettled transactions is considered
to be minimal due to the short settlement period involved and the high credit quality of the brokers used.
Furthermore, the Investment Manager monitors the financial positions of the brokers used to further
mitigate this risk.
All of the assets of the sub-funds are held by Sparkasse Bank Malta p.l.c. as Custodian. Bankruptcy or
insolvency of the Custodian may cause the sub-funds rights with respect to securities held by the
Custodian to be delayed or limited.
All of the assets of the sub-funds are held by Bank of Valetta, p.l.c. (rated BBB+ by international rating
agency Fitch) as a custodian. Bankruptcy or insolvency of the Custodian may cause the sub-funds rights
with respect to securities held by the Custodian to be delayed or limited.
Total
Debt securities 5,466,696

Cash at bank-EUR 1,542,002
Cash at bank-Foreign 46,265
Derivatives (assets-liabilities) 24,044
Exchange Traded Funds 304,370
7,383,377
Total

Cash at bank 718,315
Derivatives 6,828
Cash at bank 307,065
7,074,911
59
__________________________________________________________________________________________
10.2 Credit and settlement risk (continued)

Derivatives (assets-liabilities) (44,655)
14,759,891

Cash at bank 1,836,766
12,387,479
Total

Cash at bank-Foreign (12,579)
11,043,081
AQA U3S Fund
As at the reporting date the sub-fund had no credit and settlement risk.
60
__________________________________________________________________________________________

Total
Debt securities 312,552

Collective Investment Schemes 3,732,632
Exchange Traded Funds 1,375,947
Cash at bank-EUR 423,565
5,969,267

Cash at bank-Foreign (45,510)
10,565,004
Total
Debt securities 463,266

Equities 2,726,055
Cash at bank-Foreign 571,774.51
610,406
4,195,532
61
__________________________________________________________________________________________

AQA Selective Income Bond Fund
Total
31 December 2016 USD

Cash at bank-USD (currency of fund) 5,231,145
Derivatives (assets-liabilties) (1,493,496)
66,428,974
As at 31 December 2016, the AQA Inter-Active Allocation Fund exposure to debt securities stood at
74.23 % of its total net assets. The credit quality of these investments as at 31 December 2016 is
summarised below:
31 December 2016
Credit Rating % Exposure of total
net assets
AA 8.15
A 3.41
BBB+ 14.77
BBB 12.71
BBB- 3.63
BB+ 13.01
BB 1.35
B+ 6.11
B 2.36
B- 2.80
62
__________________________________________________________________________________________

As at 31 December 2015, the AQA Inter-Active Allocation Fund exposure to debt securities stood at
84.10% of its total net assets. The credit quality of these investments as at 31 December 2015 is
summarised below:
31 December 2015
net assets
AA+ 6.38
AA 7.05
A 6.35
A- 6.92
BBB+ 27.88
BBB 11.79
BBB- 4.81
BB+ 6.8
BB 3.41
B+ 3.84
The AQA High Yield Bond Fund’s exposure to debt securities stood at 86.21% of its total net assets. The
credit quality of these investments as at 31 December 2016 is summarised below:
31 December 2016
net assets
BBB 4.23
BBB- 16.94
BB+ 14.99
BB 12.72
BB- 7.21
B+ 9.35
B 3.86
B- 10.29
NR 6.67
63
__________________________________________________________________________________________

The AQA High Yield Bond Fund’s exposure to debt securities stood at 84.10% of its total net assets. The
credit quality of these investments as at 31 December 2015 is summarised below:
31 December 2015
net assets
BBB+ 0.47
BBB 10.04
BBB- 17.99
BB+ 16.85
BB 12.47
BB- 4.61
B+ 9.00
B 4.54
B- 2.38
CCC 1.58
NR 4.18
As at 31 December 2016, the AQA Hybrid Bond Fund exposure to debt securities stood at 90.05% of its
total net assets. The credit quality of these investments as at 31 December 2016 is summarised below:
31 December 2016
net assets
BB+ 11.19
BB 17.26
BB- 11.56
BBB 6.17
BBB- 9.46
B+ 11.79
B 2.74
B- 11.66
NR 8.33
As at 31 December 2016, the AQA Credit Strategies Fund exposure to debt securities stood at 5.27% of
its total net assets. The credit quality of these investments as at 31 December 2016 is summarised below:
31 December 2016
net assets
AA+ 5
64
______________________________________________________________________________________

As at 31 December 2016, the AQA Flexible Allocation Fund exposure to debt securities stood at 92.06%
of its total net assets. The credit quality of these investments as at 31 December 2016 is summarised
below:
31 December 2016
net assets
B 2.59
BB+ 16.80
BB 24.36
BB- 3.5
BBB+ 3.77
BBB 11.87
BBB- 4.42
B+ 17.34
B- 4.63
NR 2.87
As at 31 December 2016, the AQA Selective Opportunities Fund exposure to debt securities stood at
11.17% of its total net assets. The credit quality of these investments as at 31 December 2016 is
summarised below:
31 December 2016
net assets
BB+ 1.9
BB- 1.19
B+ 3.3
B 1.47
CCC+ 1.67
CCC 1.64
65
______________________________________________________________________________________

As at 31 December 2016, the AQA Selective Income Fund exposure to debt securities stood at 98.4% of
its total net assets. The credit quality of these investments as at 31 December 2016 is summarised below:
31 December 2016
net assets
BBB 1.38
BBB- 17.28
BB+ 18.51
BB 22.18
BB- 24.40
B+ 8.68
B 2.77
B- 1.53
CCC+ 1.62
10.3 Liquidity risk
The sub-funds’ constitution provides for the weekly creation and cancellation of units and these are
therefore exposed to the liquidity risk of meeting unit-holders’ redemptions at any time. The major part
of these sub-funds’ underlying securities is considered to be readily realisable since they are all listed on
major European and US Stock Exchanges.
The sub-funds’ liquidity risk is managed on and on-going basis by the Investment Manager in accordance
with policies and procedures in place. The sub-funds’ overall liquidity risks are monitored and reviewed
on a quarterly basis by the Board of Directors.
10.4 Custody risk
The Company is also exposed to operational risks such as custody risk. Custody risk is the risk of a loss
being incurred on securities in custody as a result of a custodian’s insolvency, negligence, misuse of
assets, fraud, poor administration or inadequate record-keeping. Although an appropriate legal
framework is in place that reduces the risk of loss of value of the securities held by the custodian in the
event of its failure, the ability of the company to transfer the securities might be temporarily impaired.
66
______________________________________________________________________________________

10.5 Offsetting financial assets and financial liabilities
Inter-Active Allocation Fund has entered into a master netting agreement with its over-the-counter
derivative counterparty. Where legally enforceable, this agreement gives the Sub-Fund, in the event of
default by the counterparty, the right to liquidate cash and securities held as collateral and to offset
receivables and payables with the same counterparty.
The following tables present the potential effect of offsetting assets and liabilities as of December 31,
2016:
EUR
2016
Gross Gross Net Financial Financial Net
amounts amounts of amounts instruments collateral amount
of recognised recognised of received or
financial financial financial
pledged
assets/(liab assets/(liabilit assets/(liab
ilities) ies) set off in ilities)
the statement presented
of financial in the
position statement
of
financial
position
Type of financial assets
Financial assets
Derivatives 64,816 - 64,816 (40,772) - 24,044
Total 64,816 - 64,816 (40,772) - 24,044
Financial liabilities
Derivatives (40,772) - (40,772) 40,772 - -
Total (40,772) - (40,772) 40,772 - -
67
______________________________________________________________________________________

10.5 Offsetting financial assets and financial liabilities (continued)
2015:
EUR
2015
pledged
of financial in the
position statement
of
financial
position
Financial assets
Derivatives 40,001 - 40,001 (33,173) - 6,828
Total 40,001 - 40,001 (33,173) - 6,828
Derivatives (33,173) - (33,173) 33,173 - -
Total (33,173) - (33,173) 33,173 - -
68
______________________________________________________________________________________

Credit Strategies Fund has entered into a master netting agreement with its over-the-counter derivative
counterparty. Where legally enforceable, this agreement gives the Sub-Fund, in the event of default by
the counterparty, the right to liquidate cash and securities held as collateral and to offset receivables and
payables with the same counterparty.
2016:
EUR
2016
pledged
of financial in the
position statement
of
financial
position
Financial assets
Derivatives 3,449 - 3,449 (4,490) - (1,041)
Total 3,449 - 3,449 (4,490) - (1,041)
Derivatives (4,490) - (4,490) 4,490 - -
Total (4,490) - (4,490) 4,490 - -
69
______________________________________________________________________________________

Selective Opportunities Fund has entered into a master netting agreement with its over-the-counter
derivative counterparty. Where legally enforceable, this agreement gives the Sub-Fund, in the event of
default by the counterparty, the right to liquidate cash and securities held as collateral and to offset
receivables and payables with the same counterparty.
2016:
EUR
2016
pledged
of financial in the
position statement
of
financial
position
Financial assets
Derivatives 35,577 - 35,577 (96,640) - -
Total 35,577 - 35,577 (96,640) - -
Derivatives (96,640) - (96,640) 96,640 - (61,063)
Total (96,640) - (96,640) 96,640 - (61,063)
10.6 Capital risk management
The capital of the Company is represented by the net assets attributable to holders of redeemable
shares. The amount of net assets attributable to holders of redeemable shares can change significantly
on a weekly basis, as the sub-fund is subject to weekly subscriptions and redemptions at the discretion
of shareholders. The Company’s objective when managing capital is to safeguard the Company’s
ability to continue as a going concern in order to provide returns for shareholders, provide benefits for
other stakeholders and maintain a strong capital base to support the development of the investment
activities of the Company.
70
__________________________________________________________________________________________

10.6 Capital risk management (continued)
The Board of Directors and Investment Manager monitor capital on the basis of the value of net assets
attributable to redeemable shareholders.
11 Fair values of financial assets and financial liabilities

At 31 December 2016, the fair value of listed investments is based on quoted prices in an active market at
the end of the reporting period. Pursuant to the adoption of IFRS 13 “Fair value measurement”, the quoted
spread that is most representative of the fair value in the circumstances to be used to measure fair value.
The fair values of derivative contracts are valued by reference to the price at which a new contract of the
same size and maturity could be undertaken at valuation date. At 31 December 2016 the carrying amounts
of other financial assets and financial liabilities classified with assets and liabilities respectively
approximated their fair values due to short-term maturities of these assets and liabilities.
The company classifies fair value measurements using a fair value hierarchy that reflects the significance
of the inputs used in making the measurements. The fair value hierarchy has the following levels:
- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active
markets for identical assets or liabilities.
- Level 2 fair value measurements are those derived from inputs other than quoted prices included
within level 1 that are observable, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
- Level 3 fair value measurements are those derived from inputs that are not based on observable
market data (unobservable inputs)
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety
is determined on the basis of the lowest level input that is significant to the fair value measurement in its
entirety.
For this purpose, the significance of an input is assessed against the fair value measurement in its entirety.
If a fair value measurement uses observable inputs that require significant adjustment based on
unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a
particular input to the fair value measurement in its entirety requires judgement, considering factors
specific to the asset or liability.
The determination of what constitutes ‘observable’ requires significant judgement by the Fund. The Fund
considers observable data to be that market data that is readily available, regularly distributed or updated
reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in
the relevant market.
71
__________________________________________________________________________________________
11 Fair values of financial assets and financial liabilities (continued)

Financial assets and financial liabilities at fair value as at 31 December 2016
The following table analyses within the fair value hierarchy the Fund’s financial assets measured at fair
value for 31 December 2016:
Total Level 1 Level 2 Level 3

EUR EUR EUR EUR
Financial assets held for trading
Debt instruments 5,466,696 5,195,863 270,833 -
Exchange Traded Funds 304,370 304,370 -
Derivative financial instruments-
- Options 64,816 64,816 - -
Total 5,835,882 5,565,049 270,833 -
Financial liabilities held for trading

- Options 40,772 40,772 - -
Total 40,772 40,772 - -

EUR EUR EUR EUR
Debt instruments 6,042,703 6,042,703 - -
- Options 40,001 40,001 - -
Total 6,082,704 6,082,704 - -

- Options 28,489 28,489 - -
- Futures 4,684 4,684 - -
Total 33,173 33,173 - -
72
__________________________________________________________________________________________


EUR EUR EUR EUR
Debt instruments 12,904,270 11,217,258 1,687,012 -
Total 12,904,270 11,217,258 1,687,012 -

- Options (5,750) (5,750) - -
Total (5,750) (5,750) - -

EUR EUR EUR EUR

EUR EUR EUR EUR
Debt instruments 9,840,766 8,941,861 898,905 -
Total 9,840,766 8,941,861 898,905 -

- Options 52,188 52,188 - -
- Futures 29,626 29,626 - -
Total 81,814 81,814 - -
73
______________________________________________________________________________________

AQA U3S Fund

EUR EUR EUR EUR
Debt instruments 312,552 312,552 - -
Collective Investment Schemes 3,732,632 - 3,732,632 -
Exchange Traded Funds 1,375,947 1,375,947 - -
- Futures 3,449 3,449 - -
Total 5,424,580 1,691,948 3,732,632 -

- Futures 4,490 4,490 - -
Total 4,490 4,490 - -

EUR EUR EUR EUR
Debt instruments 9,909,282 8,303,469 1,605,813 -
Total 9,909,282 8,303,469 1,605,813 -

- Options 2,875 2,875 - -
Total 2,875 2,875 - -
74
______________________________________________________________________________________


EUR EUR EUR EUR
Debt instruments 463,266 463,266 - -
Equities 2,726,055 2,726,055
- Options 25,387 25,387 - -
- Futures 10,190 10,190
Total 3,224,898 3,224,898 - -

- Forwards (96,640) (96,640) - -
Total (96,640) (96,640) - -

EUR EUR EUR EUR
Total 62,691,325 62,691,325 - -

- Forwards (1,493,496) (1,493,496) - -
Total (1,493,496) (1,493,496) - -
75
__________________________________________________________________________________________

The puttable value of redeemable shares is calculated based on the net difference between total assets and
all other liabilities of the Fund in accordance with their offering document. These shares are not traded in
an active market. A demand feature is attached to these shares, as they are redeemable at the holders’
option and can be put back to the Sub-fund at any dealing date for cash equal to a proportionate share of
the Sub-fund’s net asset value attributable to the share class. The fair value is based on the amount payable
on demand, discounted from the first date that the amount could be required to be paid. The impact of
discounting in this instance is not material. On the basis of these considerations, Level 2 is deemed to be
the most appropriate categorisation for net assets attributable to holders of redeemable shares.
There have been no transfers between Level 1, 2 or 3 fair value classification categories during the year.
Cash and cash equivalents include deposits held with banks.
Payables represent the contractual amounts and obligations due by the Company for the settlement of
expenses. The fair values are not materially different from their carrying amounts due to short-term nature.
76
Independent auditor’s report
to the members of
Opinion
We have audited the financial statements of AQA UCITS Funds SICAV plc (the “Company”) and its sub-
fund, set out on pages 12 to 76, which comprise the statement of financial position as at 31 December
2016, and the statement of comprehensive income, statement of changes in net assets attributable to
holders of non-voting redeemable participating shares and statement of cash flows for the year then
ended, and notes to the financial statements, including significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position
of the Company and its sub-fund as at 31 December 2016, and of its financial performance and its cash
flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as
adopted by the EU and have been properly prepared in accordance with the requirements of the
Companies Act (Cap.386).
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Company in accordance
with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional
Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the
financial statements in Malta, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the IESBA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Emphasis of matter
We also draw attention to note 8.1 to the financial statements which describes that as at
31 December 2016, investments with a fair value of EUR1,869,181 held by the AQA Credit Strategies
Fund are valued based on the latest unaudited net asset value as calculated by the custodian, all of
which are considered by the portfolio manager to be non-redeemable. Because of the inherent
uncertainty in the above valuations, reported figures might differ from the values that would have been
obtained had independently audited net asset values as at 31 December 2016 been available. The
ultimate outcome of these uncertainties cannot at present be reliably determined.
Our opinion is not qualified in respect of these matters.
Information other than the Financial Statements and the Auditor’s Report thereon
The directors are responsible for the other information. The other information comprises the company
information on page 1, investment manager report on page 2 to 4, directors’ report on page 5 to 8,
statement of directors’ responsibilities on page 9, comparative table on page 10 to 11, and other general
information on pages 80 onwards, but does not include the financial statements and our auditor’s report
thereon.
Except for our opinion on the directors’ report in accordance with the Companies Act (Cap.386), our
opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement
of this other information; we are required to report that fact. We have nothing to report in this regard.
With respect to the Directors’ report, we also considered whether the Directors’ report includes the
disclosure requirements of Article 177 of the Companies Act (Cap. 386).
77
Independent auditor’s report
to the members of
Information other than the Financial Statements and the Auditor’s Report thereon (continued)
In accordance with the requirements of sub-article 179(3) of the Companies Act (Cap.386) in relation to
the Directors’ Report on page 5 to 8, in our opinion, based on the work undertaken in the course of the
audit:
• the information given in the Directors’ Report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
• the Directors’ Report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the
course of the audit, we have not identified any material misstatements in the Directors’ Report.
Responsibilities of the Directors for the financial statements

As explained more fully in the statement of director’s responsibilities on page 9, the directors are
responsible for the preparation of financial statements that give a true and fair view in accordance with
IFRSs as adopted by the EU and the requirements of the Companies Act (Cap.386), and for such internal
control as the directors determine is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
78
Portfolio of Net Assets
31 December 2016
______________________________________________________________________________________
Denominated in: Fair Value Percentage of

EUR total net assets
%
Debt Instruments
0.52211% AEGON NV 15/10/2165 EUR 250,960 3.40
1.59% AXA SA 29/01/2166 EUR 256,274 3.47
4.875% BNP PARIBAS 29/12/2049 EUR 255,625 3.46
1.25% BUONI POLIENNALI DEL TES 27/10/2020 USD 208,703 2.83
0.796% CCTS EU 15/04/2018 EUR 151,835 2.06
1.588% CCTS EU 01/11/2018 EUR 206,280 2.79
1.691% CASINO GUICHARD PERRACH 20/01/2166 EUR 267,287 3.62
5.25% HSBC HOLDINGS PLC 29/12/2049 EUR 246,580 3.34
2.65% BANCA MONTE DEI PASCHI S 21/03/2017 EUR 97,380 1.32
0% SAP SE 01/04/2020 EUR 451,175 6.11
7.125% UBS GROUP AG 29/12/2049 USD 244,844 3.32
4% VENETO BANCA SPA 20/01/2017 EUR 99,735 1.35
3.5% BANCA POP DI VICENZA 20/01/2017 EUR 99,690 1.35
2.5% VOLKSWAGEN INTL FIN NV 29/12/2049 EUR 95,122 1.29
4.95% BANK OF NY MELLON CORP 29/12/2049 USD 432,461 5.86
2.15% BUONI POLIENNALI DEL TES 12/11/2017 EUR 511,525 6.93
6.8% UNICREDIT SPA 31/10/2018 EUR 173,453 2.35
0% CERT DI CREDITO DEL TES 27/02/2017 EUR 450,284 6.10
5.25% RHEINMETALL AG 22/09/2017 EUR 466,313 6.32
0% SANOFI 10/09/2018 EUR 501,170 6.79
Total debt Instruments 5,466,696 74.04
Exchange Traded Funds

ISHARES EURO CORP 1-5YR UCITS ETF EUR (DIST) EUR 304,370 4.12
304,370 4.12
Derivatives
Options
GBP 03MAR17 1.27 C EUR 2,466 0.03
SX5E 03/17/17 C3075 EUR 62,350 0.84
GBP 03MAR17 1.32 C USD (416) (0.01)
SX5E 03/17/17 C3275 EUR (26975) (0.35)
GBP 03MAR17 1.175 P USD (1456) (0.02)
SX5E 03/17/17 P2400 EUR (9750) (0.13)
SX5E 03/17/17 P2625 EUR (2175) (0.03)
Total derivatives 24044 (0.83)
Total portfolio of investments 5,795,110 78.49
Bank balances 1,588,267 21.51
Other assets net of liabilities (19037) (0.26)
Net Assets 7,383,377 100.00
80
31 December 2016
______________________________________________________________________________________

%
Debt Instruments
6.756% BANCO BPM SPA 29/06/2049 EUR 280,035 1.87
7.875% FINNAIR OYJ 29/12/2049 EUR 111,702 0.75
6% L'ISOLANTE K-FLEX SpA 01/07/2020 EUR 208,376 1.39
5.875% TELEFONICA EUROPE BV 31/03/2049 EUR 316,125 2.11
7.375% SANTANDER UK GROUP HLDGS 29/12/2049 GBP 236,081 1.58
6.5% CREDIT AGRICOLE SA 29/04/2049 EUR 103,563 0.69
5.185% AEGON NV 29/10/2049 EUR 60,232 0.40
6.25% AIR FRANCE-KLM 29/12/2049 EUR 303,939 2.03
5.2% AMERICAN EXPRESS CO 29/05/2049 USD 94,274 0.63
4.875% BNP PARIBAS 29/12/2049 EUR 409,000 2.73
6.156% BANCO BPM SPA 29/06/2049 EUR 273,300 1.83
2.81% BPCE SA 30/09/2165 USD 68,888 0.46
5.95% CITIGROUP INC 29/07/2049 USD 96,059 0.64
4.87% CASINO GUICHARD PERRACHO 31/01/2049 EUR 190,750 1.27
5.875% DANSKE BANK A/S 29/10/2049 EUR 419,500 2.80
6.75% BPCE SA 29/01/2049 USD 192,464 1.29
4.25% ELECTRICITE DE FRANCE SA 29/12/2049 EUR 204,750 1.37
3% BAYER AG 01/07/2075 EUR 203,470 1.36
5.118% SOLVAY FINANCE 29/12/2049 EUR 215,500 1.44
0.843% BANQUE FED CRED MUTUEL 25/02/2166 EUR 244,500 1.63
6.375% GROUPAMA SA 29/05/2049 EUR 188,126 1.26
6.298% GROUPAMA SA 29/10/2049 EUR 288,939 1.93
5.625% HSBC HOLDINGS PLC 29/12/2049 USD 188,617 1.26
7.7% INTESA SANPAOLO SPA 29/12/2049 USD 179,947 1.20
7% INTESA SANPAOLO SPA 29/12/2049 EUR 793,000 5.30
4.75% INTESA SANPAOLO VITA SPA 29/12/2049 EUR 393,936 2.63
5% JPMORGAN CHASE & CO 29/12/2049 USD 284,596 1.90
5.625% KBC GROEP NV 29/03/2049 EUR 303,000 2.02
6.375% LLOYDS BANKING GROUP PLC 27/06/2049 EUR 305,439 2.04
2.625% BANCO ESPIRITO SANTO SA 08/05/2017 EUR 86,250 0.58
6.25% NYKREDIT REALKREDIT AS 29/12/2049 EUR 209,876 1.40
9% BANCO BPM SPA 29/06/2049 EUR 401,500 2.68
5.5% COOPERATIEVE RABOBANK UA 22/01/2049 EUR 405,252 2.71
6.875% STOREBRAND LIVSFORSIKRIN 04/04/2043 EUR 114,778 0.77
5% TELEFONICA EUROPE BV 31/03/2049 EUR 416,000 2.78
5.75% UNIPOLSAI ASSICURAZIONI 30/06/2049 EUR 380,500 2.54
4.85% VOLVO TREASURY AB 10/03/2078 EUR 314,625 2.10
5.56975% WACHOVIA CAP TRUST III 15/03/2166 USD 186,992 1.25
Total debt instruments 12,904,270 86.21
81
31 December 2016
______________________________________________________________________________________
AQA High Yield Bond Fund (continued)
Derivatives
Options
FTSEMIB 03/17/17 P13000 Index EUR (5,750) (0.04)
Total Options (5,750) (0.04)
Forward Exchange Contracts
Forward Exchange Contract EUR/USD - Bank of Valletta 02/03/2017 USD (38,580) (0.26)
Forward Exchange Contract EUR/GBP - Bank of Valletta 28/06/2017 GBP (325) 0.00
Total Forward Exchange Contracts (38,905) (0.26)
Other assets net of liabilities 209,003 1.40
Net Assets 14,968,894 100.00
82
31 December 2016
______________________________________________________________________________________

%
Debt Instruments
6.756% BANCO BPM SPA 29/06/2049 EUR 186,690 1.71
4.5% REPSOL INTL FINANCE 25/03/2075 EUR 189,126 1.73
5.185% AEGON NV 29/10/2049 EUR 180,696 1.65
8.875% BANCO BILBAO VIZCAYA ARG 29/12/2049 EUR 432,000 3.95
1.691% CASINO GUICHARD PERRACH 20/01/2166 EUR 296,985 2.72
6.298% GROUPAMA SA 29/10/2049 EUR 385,252 3.53
5.625% KBC GROEP NV 29/03/2049 EUR 404,000 3.70
6.375% LLOYDS BANKING GROUP PLC 27/06/2049 EUR 509,065 4.66
6.25% NYKREDIT REALKREDIT AS 29/12/2049 EUR 209,876 1.92
5% ORANGE SA 29/10/2049 EUR 527,600 4.83
9% BANCO BPM SPA 29/06/2049 EUR 501,875 4.59
5.5% COOPERATIEVE RABOBANK UA 22/01/2049 EUR 506,565 4.64
5% RALLYE SA 15/10/2018 EUR 314,625 2.88
6.25% BANCO SANTANDER SA 11/09/2049 EUR 187,876 1.72
6.75% SOCIETE GENERALE 07/04/2049 EUR 411,000 3.76
Derivatives
Options
Futures
US 10YR NOTE (CBT) MAR17 USD (29,626) (0.27)
(29,626) (0.27)
Other assets net of liabilities (114,471) (1.05)
Net Assets 10,928,610 100.00
83
31 December 2016
______________________________________________________________________________________

%
Debt Instruments
6.6% BRITISH COLUMBIA PROV OF 09/01/2020 INR 57,269 0.97
6.75% EUROPEAN BK RECON & DEV 12/05/2017 RUB 58,273 0.98
7.5% EUROPEAN INVESTMENT BANK 30/01/2019 ZAR 61,499 1.04
10% EUROPEAN INVESTMENT BANK 19/06/2018 BRL 73,650 1.24
8.5% INTL FINANCE CORP 27/07/2017 RUB 61,861 1.04
Total debt Instruments 312,552 5.27
Exchange Traded Funds

LYXOR ETF EURO CORPORATE BOND EUR 377,078 6.36
ISHARES EURO INFLATION LINKED GOVERNMENT BOND UCITS ETF EUR (ACC) EUR 149,119 2.52
ISHARES GLOBAL INFLATION LINKED GOVT BOND UCITS ETF USD (ACC) USD 279,719 4.72
ISHARES EURO HIGH YIELD CORP BOND UCITS ETF EUR (DIST) EUR 319,200 5.38
ISHARES CORE GBP CORP BOND UCITS ETF GBP (DIST) GBP 250,831 4.23
Total Exchange Traded Funds 1,375,947 23.21
Collective Investment Schemes

HI NUMEN CREDIT FUND EUR 430,122 7.26
AXA WORLD FUND - GLOBAL INFLATION BONDS EUR 145,096 2.45
CANDRIAM BONDS-CREDIT OPPORTUNITIES EUR 306,625 5.17
GAM STAR PLC CREDIT OPPORTUNITIES EUR EUR 252,901 4.27
HEDGE INVEST INTERNATIONAL FUNDS - HI SIBILLA MACRO FUND EUR 300,989 5.08
H2O ADAGIO EUR 310,314 5.23
H2O MULTIBONDS EUR 326,095 5.50
PICTET-EUR BONDS EUR 266,183 4.49
PLURIMA APUANO FLEXIBLE BOND FUND EUR 253,896 4.28
DPAM L- BONDS EMERGING MARKETS SUSTAINABLE EUR 236,844 4.00
SCHRODER INTERNATIONAL SELECTION FUND -ASIAN CONVERTIBLE BOND EUR 297,727 5.02
UBAM GLOBAL HIGH YIELD SOLUTION EUR 306,580 5.17
U ACCESS IRELAND UCITS PLC - TREND MACRO EUR 299,260 5.05
Total Collective Investment Schemes 3,732,632 62.97
Derivatives
Futures
MAR 17 IMM EURO FX USD 3,449 0.06
EUR OAT MAR17 EUR (1,000) (0.02)
EUR-BUND MAR17 EUR (1,740) (0.03)
EUR BTP MAR17 EUR (1,750) (0.03)
Total Futures (1,041) (0.02)
Bank balances 549,176 9.26
Other liabilties net of assets (41,446) (0.70)
Net Assets 5,927,820 100.00
84
31 December 2016
_______________________________________________________________________________________

%
Debt Instruments
3.736% AXA SA 25/01/2166 EUR 100,264 0.93
6.25% BANCO SANTANDER SA 11/09/2049 EUR 187,876 1.75
0.843% BANQUE FED CRED MUTUEL 25/02/2166 EUR 489,000 4.54
6.75% BPCE SA 29/01/2049 USD 192,464 1.79
2.5% BANCA POPOLARE SONDRIO 30/09/2021 EUR 500,025 4.65
1.072% CITIGROUP INC 10/02/2019 EUR 400,420 3.72
4.596% GENERALI FINANCE BV 30/11/2049 EUR 587,106 5.45
7.7% INTESA SANPAOLO SPA 29/12/2049 USD 179,947 1.67
3.875% REPSOL INTL FINANCE 29/12/2049 EUR 298,314 2.77
3.875% SACE SPA 10/02/2049 EUR 290,316 2.70
5.118% SOLVAY FINANCE 29/12/2049 EUR 323,250 3.00
4.85% VOLVO TREASURY AB 10/03/2078 EUR 209,750 1.95
6.25% AIR FRANCE-KLM 29/12/2049 EUR 202,626 1.88
6% ALERION INDUSTRIES SPA 11/02/2022 EUR 106,188 0.99
3% BAYER AG 01/07/2075 EUR 305,205 2.84
4.87% CASINO GUICHARD PERRACHO 31/01/2049 EUR 95,375 0.89
5.125% DEUTSCHE LUFTHANSA AG 12/08/2075 EUR 315,000 2.93
4.25% ELECTRICITE DE FRANCE SA 29/12/2049 EUR 307,125 2.85
5% ELECTRICITE DE FRANCE SA 22/01/2049 EUR 191,376 1.78
6.5% ENEL SPA 10/01/2074 EUR 107,938 1.00
5.25% FIAT CHRYSLER AUTOMOBILE 15/04/2023 USD 194,567 1.81
2.75% RWE AG 21/04/2075 EUR 190,500 1.77
Derivatives
Options
FTSEMIB 2 P13000 INDEX EUR (2,875) (0.03)
Bank balances 658,602 6.12
Other assets net of liabilities 198,884 1.85
Net Assets 10,763,893 100.00
85
31 December 2016
______________________________________________________________________________________

%
Debt Instruments
7% ADVANCED MICRO DEVICES 01/07/2024 USD 69,346 1.67
7.375% DYNEGY INC 01/11/2022 USD 63,813 1.54
11% FRONTIER COMMUNICATIONS 15/09/2025 USD 49,265 1.19
9.25% LAUREATE EDUCATION INC 01/09/2019 USD 67,973 1.64
4.75% OBRASCON HUARTE LAIN SA 15/03/2022 EUR 72,875 1.76
7.875% SPRINT CORP 15/09/2023 USD 61,080 1.47
10.5% WESTERN DIGITAL CORP 01/04/2024 USD 78,914 1.90
Total debt Instruments 463,266 11.17
Equities
NESTLE 'R' CHF 88,579 2.14
ROCHE HOLDING CHF 60,749 1.46
BOSS (HUGO) EUR 58,130 1.40
INFINEON TECHNOLOGIES EUR 66,040 1.59
THYSSENKRUPP EUR 45,280 1.09
PANDORA DKK 74,571 1.80
ACS ACTIV.CONSTR.Y SERV. EUR 45,030 1.09
CELLNEX TELECOM EUR 47,828 1.15
AMEC FOSTER WHEELER GBP 49,559 1.19
ENSCO CLASS A USD 83,180 2.01
GKN GBP 46,635 1.12
MELLANOX TECHS. USD 97,224 2.34
ANIMA HOLDING EUR 41,280 1.00
ASSICURAZIONI GENERALI EUR 127,080 3.06
BANCA GENERALI EUR 67,980 1.64
CEMENTIR HOLDING EUR 42,020 1.01
INFRASTRUTTURE WIRELESS EUR 52,824 1.27
INTESA SANPAOLO EUR 48,520 1.17
SARAS EUR 68,800 1.66
SONAE SGPS EUR 87,400 2.11
AMAZON.COM USD 71,301 1.72
AMBARELLA USD 51,469 1.24
ANADARKO PETROLEUM USD 66,302 1.60
APACHE USD 60,350 1.46
COGNIZANT TECH.SLTN.'A' USD 53,276 1.28
CRITEO ADR 1:1 USD 54,685 1.32
FMC USD 107,559 2.59
FREEPORT-MCMORAN USD 25,083 0.60
INTREXON USD 46,211 1.11
MARATHON PETROLEUM USD 95,750 2.31
MICRON TECHNOLOGY USD 112,549 2.71
NIKE 'B' USD 72,497 1.75
NIMBLE STORAGE USD 120,491 2.91
NORWEGIAN CRUISE LINE USD 56,615 1.36
QUALCOMM USD 74,394 1.79
ROYAL CARIBBEAN CRUISES USD 93,608 2.26
TOLL BROTHERS USD 44,214 1.07
TRIMBLE USD 43,002 1.04
WESTERN DIGITAL USD 116,297 2.80
WYNN RESORTS USD 61,693 1.49
Total Equities 2,726,055 65.73
Derivatives
Futures
RUSSEL 2000 MINI MAR 17 INDEX USD 3,082 0.07
NASDAQ 100 E-MINI MAR 17 INDEX EUR 7,108 0.17
Total Futures 10,190 0.25
Options
SPX PUT 2200 FEB 17 13,597 0.33
SPX PUT 2200 JAN 17 11,790 0.28
25,387 0.61
86
31 December 2016
______________________________________________________________________________________
AQA Selective Opportunities Fund (continued)
Forward Exchange Contract EUR/USD - Bank of Valletta 02/03/2017 USD (96,640) -2.33
Total Forward Exchange Contracts (96,640) (0.26)
Other liabilties net of assets (47,902) (0.70)
Net Assets 4,147,632 100.00
87
31 December 2016
______________________________________________________________________________________

%
Debt Instruments
3.875% CNH INDUSTRIAL CAP LLC 15/10/2021 USD 938,956 1.40
5.75% MALLINCKRODT FIN/SB 01/08/2022 USD 1,650,551 2.46
4.75% WEST CORP 15/07/2021 USD 488,495 0.73
6.25% ADT CORP 15/10/2021 USD 1,455,976 2.17
5.875% ALLEGION PLC 15/09/2023 USD 1,011,458 1.51
7.875% AMAG PHARMACEUTICALS INC 01/09/2023 USD 941,333 1.40
4.75% AMC NETWORKS INC 15/12/2022 EUR 957,973 1.43
7.5% ADVANCED MICRO DEVICES 15/08/2022 USD 1,032,852 1.54
6.125% AMERICAN AIRLINES GROUP 01/06/2018 USD 1,292,497 1.93
7.125% ASTALDI SPA 01/12/2020 USD 732,561 1.09
5.5% BEST BUY CO INC 15/03/2021 USD 1,564,096 2.33
4.625% BROCADE COMMUNICATIONS 15/01/2023 USD 1,900,504 2.84
4.625% BRUNSWICK CORP 15/05/2021 USD 1,944,503 2.90
5.625% CENTENE CORP 15/02/2021 USD 1,749,252 2.61
4.875% CINEMARK USA INC 01/06/2023 USD 727,394 1.09
6.5% DEAN FOODS CO 15/03/2023 USD 1,000,171 1.49
5.875% DELL INC 15/06/2019 USD 1,616,431 2.41
5.875% DISH DBS CORP 15/07/2022 USD 702,196 1.05
2.65% EMC CORP 01/06/2020 USD 557,669 0.83
4.5% FIAT CHRYSLER AUTOMOBILE 15/04/2020 USD 1,410,610 2.10
5.5% GAMESTOP CORP 01/10/2019 USD 2,326,245 3.47
5.95% GAP INC/THE 12/04/2021 USD 2,402,967 3.58
4.75% GRAPHIC PACKAGING INTL 15/04/2021 USD 451,147 0.67
5.875% HCA INC 01/05/2023 USD 2,019,359 3.01
4.9% HP ENTERPRISE CO 15/10/2025 USD 881,687 1.32
5% INGRAM MICRO INC 10/08/2022 USD 1,857,716 2.77
4.75% LEAR CORP 15/01/2023 USD 491,281 0.73
5.375% LEAR CORP 15/03/2024 USD 1,502,767 2.24
6.125% LEXMARK INTL INC 15/03/2020 USD 1,752,163 2.61
5.5% LIFEPOINT HEALTH INC 01/12/2021 USD 1,970,619 2.94
6.375% MATCH GROUP INC 01/06/2024 USD 1,008,491 1.50
4.5% NEUSTAR INC 15/01/2023 USD 973,424 1.45
5.375% NUANCE COMMUNICATIONS 15/08/2020 USD 783,022 1.17
6% NUANCE COMMUNICATIONS 01/07/2024 USD 1,678,065 2.50
5.625% OPEN TEXT CORP 15/01/2023 USD 997,794 1.49
5.5% PLANTRONICS INC 31/05/2023 USD 1,448,555 2.16
6.5% RR DONNELLEY & SONS CO 15/11/2023 USD 928,259 1.38
4.75% SEAGATE HDD CAYMAN 01/06/2023 USD 945,165 1.41
4.625% SIRIUS XM RADIO INC 15/05/2023 USD 708,232 1.06
5.25% SOTHEBY'S 01/10/2022 USD 939,555 1.40
4.2% SYMANTEC CORP 15/09/2020 USD 732,151 1.09
6% T-MOBILE USA INC 01/03/2023 USD 1,807,787 2.70
5.25% TELEFLEX INC 15/06/2024 USD 830,441 1.24
6.5% TEREX CORP 01/04/2020 USD 1,318,936 1.97
5.75% TIME INC 15/04/2022 USD 1,033,956 1.54
5.875% TRIBUNE MEDIA CO 15/07/2022 USD 1,015,855 1.52
4.75% UNIVERSAL HEALTH SVCS 01/08/2022 USD 965,703 1.44
6% UNITED CONTINENTAL HLDGS 01/12/2020 USD 1,523,433 2.27
5.25% VERISIGN INC 01/04/2025 USD 1,466,381 2.19
10.5% WESTERN DIGITAL CORP 01/04/2024 USD 2,254,691 3.36
Total debt Instruments 62,691,325 93.52
88
31 December 2016
______________________________________________________________________________________
AQA Selective Income Fund (continued)
Derivatives

Forward Exchange Contract USD/EUR - Bank of Valletta 30/03/2017 EUR (1,493,496) (2.63)
Total derivatives (1,493,496) (2.63)
Other liabilties net of assets 605,147 0.90
Net Assets 67,034,121 100.00
89

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AQA UCITS Funds SICAV plc

For the year ended

Company Registration Number: SV359

Directors, officers and other information ................................................................................ 1

Report of the investment manager ........................................................................................... 2

Report of the directors ............................................................................................................. 5

Statement of directors’ responsibilities ................................................................................... 9

Comparative table .................................................................................................................. 10

Statement of financial position .............................................................................................. 12

Statement of changes in net assets attributable to holders of redeemable shares .................. 14

Statement of comprehensive income ..................................................................................... 16

Statement of cash flows ......................................................................................................... 18

Notes to the annual financial statements................................................................................ 21

Independent auditor’s report .................................................................................................. 77

Portfolio of net assets............................................................................................................. 80

Derivatives risk report ........................................................................................................... 91

Directors: Raffaele Rossetti

Registered office: Ewropa Business Centre,

Company registration number: SV359

Administrators: Calamatta Cuschieri Fund Services Limited

Valletta Fund Services Limited

Investment manager: AQA Capital Ltd

Custodian and banker: Bank of Valletta p.l.c

Global Custodian: RBC Investor Services Trust, London Branch

Legal advisers: GANADO Advocates

Auditors: Deloitte Audit Limited

Market Commentary - January 2016 to December 2016

Chinese equities selloff

US interest rate hike

Equity top performing sectors

Fixed Income - Investment Grade

Fixed Income – High Yield

Significant changes in to the Company’s documents

Results and dividends

Class A Class A Class B Class A Class A

AUM as at 31 December 2016 7,364,340 13,743,091 1,225,803 10,928,610 5,927,820

Subscriptions of year 418,000 2,429,000 - 11,541,800 5,939,500

TER 2.72% 2.32% 1.62% 2.78% 3.38%

AUM as at 31 December 2016 10,763,893 4,147,632 23,454,241 45,832,960 -

Subscriptions of year 10,750,342 3,900,000 23,185,000 43,170,708 6,719,974

TER 0.68% 3.27% 1.16% 1.06% -

Principal risks and uncertainties

The Directors who served in office during the year were:

Standard licence conditions and regulatory sanctions

Quantitative for AQA Capital Limited

select suitable accounting policies and apply them consistently;

AQA Inter-Active AQA

EUR EUR EUR EUR EUR EUR EUR EUR USD

Net Asset Value

Net Asset Value

AQA Inter-Active Allocation AQA High Yield Bond

Net Asset Value per unit as at:

31 December 2015 97.6325 95.0290 95.4311

Net Asset Value as at:

31 December 2015 7,089,971 11,365,339 1,179,715

AQA Inter- AQA AQA AQA AQA AQA AQA

2015 2015 2015 2015 2015 2015 2015 2015 2015

Financial assets at fair value through profit or

Total assets 19,806,165 7,181,362 12,624,803 - - - - - -

Financial liabilities at fair value through profit or 8

Accrued expenses and other payables (137,967) (58,218) (79,749) - - - - - -

Net assets attributable to holders of

EUR EUR EUR EUR EUR EUR EUR EUR EUR