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BNP PARIBAS ISLAMIC FUNDFCP

aNNUAL REPORT at 31/12/2016

r.C.s. Luxembourg K642

BNP PARIBAS ISLAMIC FUND

Table of contents

Page

Page 1

Organisation 2 Information 4 Manager's report 5 Sharia Supervisory Committee’s Report 8 Audit report 10 Financial statements at 31/12/2016 12 Key figures relating to the last 3 years 13 Securities portfolio at 31/12/2016

BNP PARIBAS ISLAMIC FUND - Equity Optimiser 14 BNP PARIBAS ISLAMIC FUND - Hilal Income 17

Notes to the financial statements 18 Unaudited appendix 25

No subscription can be received on the basis of the financial statements alone. Subscriptions are only valid if made on the basis of the current prospectus, accompanied by the latest annual report and the most recent semi-annual report, if published thereafter.


Organisation

Page 2

Management Company BNP Paribas Investment Partners Luxembourg

Until 24 April 2016: 33 Rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg

Since 25 April 2016: 10 Rue Edward Steichen, L-2540 Luxembourg, Grand Duchy of Luxembourg

Board of Directors of BNP Paribas Investment Partners Luxembourg Chairman

Mr. Anthony FINAN, Deputy-Head of Distributors Business Line, BNP Paribas Investment Partners, Paris (since 4 February 2016)

Members

Mrs. Sylvie BAIJOT, Deputy Chief Executive Officer, BNP Paribas Investment Partners Luxembourg, Luxembourg

Mr. Pascal BIVILLE, Head of Strategy and Finance, BNP Paribas Investment Partners, Paris (until 17 October 2016)

Mr. Stéphane BRUNET, Chief Executive Officer, BNP Paribas Investment Partners Luxembourg, Luxembourg

Mr. Georges ENGEL, Independent Director, Vincennes, France (since 16 November 2016)

Mr. Anthony FINAN, Deputy-Head of Distributors Business Line, BNP Paribas Investment Partners, Paris (until 3 February 2016)

Mr. Fabrice SILBERZAN, Chief Operating Officer, BNP Paribas Investment Partners, Paris (between 28 January 2016 and 18 October 2016)

Mr. Carlo THILL, Chairman of the Management Board, BGL BNP Paribas Luxembourg, Luxembourg

Net Asset Value Calculation

BNP Paribas Securities Services, Luxembourg Branch, 60 Avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg

Depositary, Paying Agent, Transfer Agent, Bearer Shares Depositary and Registrar

BNP Paribas Securities Services, Luxembourg Branch, 60 Avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg

Auditor

PricewaterhouseCoopers, Société coopérative, 2 Rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg, Grand Duchy of Luxembourg

Effective Investment Managers

• THEAM S.A.S., 1, Boulevard Haussmann, F-75009 Paris, France • BNP Paribas Investment Partners Najmah Malaysia Sdn Bhd, Suite 1005, 10th Floor, Wisma Hamzah-Kwong Hing, No. 1

Leboh Ampang, 50100 Kuala Lumpur, Malaysia


Organisation

Page 3

Fund’s Sharia Supervisory Committee

Sheikh Nizam Yaquby

Dr. Abdul Sattar Abu Ghuddah

Dr. Mohamed Daud Bakar


Information

Page 4

BNP PARIBAS ISLAMIC FUND (the "Fund") is a Sharia-compliant Mutual Investment Fund (fonds commun de placement – abbreviated to “FCP”), created under Luxembourg law on 10 February 2006 for an indefinite period.

The Fund is currently governed by the provisions of Part I of the law of 17 December 2010, as amended, governing undertakings for collective investment as well as by the Directive 2009/65/EC as amended by the Directive 2014/91.

The Management Regulations of the Fund initially signed on 1 February 2006, was filed at the “Greffe du Tribunal d’Arrondissement” and its publication in the “Mémorial, Recueil Spécial des Sociétés et Associations” (The “Mémorial”) was made by a notice of the deposit at the “Greffe”.

The current version of the Management Regulations was signed on 1 June 2016, and filed with the Trade and Companies Registrar of Luxembourg, where any interested party may consult it and obtain a copy (website www.rcsl.lu).

As to net asset values and dividends, the Management Company publishes the Fund's legally required information in the Grand Duchy of Luxembourg and in all other countries where the units are publicly offered. The information is also available on the website: www.bnpparibas-ip.com.

The Management Regulations, the Prospectus, the KIID and the periodic reports may be consulted at the Fund's registered office and at the establishments responsible for the Fund's financial services. Copies of the Management Regulations and the annual and interim reports are available upon request.

Information on changes to the Fund will be published in the Luxemburger Wort newspaper and in any other newspapers deemed appropriate by the Management Company in countries in which the Management Company publicly markets the Fund’s units.

The documents and information are also available on the website: www.bnpparibas-ip.com.


Manager's report

Page 5

BNP PARIBAS ISLAMIC FUND - Equity Optimiser

ECONOMIC AND FINANCIAL CLIMATE

2016 started with uncertainties concerning the global growth, the Chinese economy and the fall in oil prices ($26/b in February) prompting a clear slump in equity market in January. The first discussions between Saudi Arabia and other oil-producing countries were not very forthcoming but testified to the will to negotiate and enabled a rapid increase in oil prices (to around $50), which prompted a stock market recovery in February and March. This growth continued until June. The referendum in the UK was the focus of attention and drove volatility on European markets to the highest level of the year. The UK people’s vote to leave the European Union was announced during the night of 23 to 24 June and was a huge shock for markets. The major indices plummeted on 24 June, before picking up again. The rapid designation of Theresa May as prime minister made the political situation less confusing and enabled a substantial rebound in equities in July followed by a degree of stabilisation. Volatility picked up again in the autumn, with changes in oil prices, doubts over monetary policies and questions on global growth continuing to feed nervousness as equity gains were made with no consideration of fundamentals.

As of October, the forthcoming presidential election in the US accentuated this nervousness. In addition, Theresa May announced that Article 50 of the Lisbon treaty would be invoked before the end of Q1 2017, whereas in Italy, it rapidly became apparent that the prime minister would not emerge victorious from the 4 December referendum. And then came... Donald Trump! Very quickly after the election, the assumption of a more expansionist budgetary policy as evoked during the electoral campaign prompted a rally in equities and the dollar, as well as tension on long-term rates. This momentum remained intact even though no precise details on the stimulus measures are yet available.

In December, equities continued to rise. The increase in long-term rates and steeper rates curves offering a less penalising financial environment for banks and insurance groups favoured the financial sector. In the US, the prospect of less restrictive regulations associated with Donald Trump’s campaign promises underpinned the sector. In Europe, concerns over Italian bank MONTE DEI PASCHI DI SIENA, which is obliged to seek public financing, did not take a toll on European banks, which were lifted by the ECB’s reassurance that it would continue its asset purchases at least until the end of 2017.

In term of performance, global equities gained 5.6% (MSCI AC World index in US Dollars) while emerging markets equities rose 8.6% (MSCI EMERGING in US Dollars), despite a more difficult end to the year for emerging assets facing tension in US rates and penalised by fears of rising protectionism. In developed markets, US stock markets clearly outperformed (+9.5% for the S&P 500) as they were less exposed to the consequences of Brexit and naturally benefited from the prospects of a boost to activity and deregulation following the election of the Republican candidate. Japanese equities were supported by the decline in the yen during November and December after a chaotic performance, and managed to end the year close to breakeven (+0.4% for the Nikkei 225 index). In Europe, the EUROSTOXX 50 gained 0.7%. In early July, fears concerning BREXIT and the specific situation of certain financial institutions pushed European banking stocks to their lowest level in four years. Despite a surge in Q4, these shares did not manage to recover all of their losses. The UK Footsie gained an impressive 14.4%, but this reflected above all the decline in sterling against the euro (-13.9%).

OUTLOOK

The year ended gloriously for equity markets, especially in the US with new record highs hit in December by the S&P500, the Dow Jones and the NASDAQ. While the widespread improvement in activity surveys is a positive factor, a clear acceleration in global growth does not seem to be on the cards yet. In addition, renewed confidence for economic agents and financial markets is mainly based on the assumption of significant tax cuts in the US. The OECD highlighted the need for “fiscal initiatives” in the US, in China, and the European Union in order for “the global economy to escape low-growth trap”.

In the recent weeks, the rally on equity markets masked risks: effect of the stronger US Dollar on economies and emerging markets, electoral year in several major countries in Europe, eventual protectionist measures, changes in monetary policy … Whereas global equities seem overvalued, the return to reality could be difficult.


Manager's report

Page 6

INVESTMENT POLICY

To seek medium to long term capital gain by investing in a basket of stocks selected from the components of the Dow Jones Islamic Market Developed Markets Top Cap Index (“the Base Index”). The Selection is objectively and systematically selected from the Base Index components according to valuation, profitability, momentum and volatility criteria, and is considered to be in compliance with Sharia principles. The Selection is rebalanced at least quarterly. This rebalancing will take place after the Sharia Board review of the index.

Since September 14th, 2015, the strategy implemented in the fund is a Multi-Factor approach based on Equity Risk Allocation. The benchmark is the DJ Islamic Market Developed Markets Top Cap Net Total Return.

31/12/2015 31/12/2016 Change

DJ Islamic Market Developed Markets Top Cap NTR 2 086.53 2 195.65 (**) +5.23%

BNP PARIBAS ISLAMIC FUND - Equity Optimiser - Unit “Classic-Capitalisation” 1 542.79 (*) 1 591.65 (*) +3.17%

BNP PARIBAS ISLAMIC FUND - Equity Optimiser - Unit “Privilege-Capitalisation” 16 286.56 (*) 16 928.68 (*) +3.94%

BNP PARIBAS ISLAMIC FUND - Equity Optimiser - Unit “I-Capitalisation” 168 849.44 (*) 176 016.00 (*) +4.24%

BNP PARIBAS ISLAMIC FUND - Equity Optimiser - Unit “Classic-Distribution” 94.58 (*) 95.57 (*) +3.17%

BNP PARIBAS ISLAMIC FUND - Equity Optimiser - Unit “I-Distribution” 95 321.54 (*) 97 319.33 (*) +4.24%

* Technical NAV

** This data refers to 30 December 2016

BNP PARIBAS ISLAMIC FUND - Hilal Income

For the year 2016, the fund returned 3.73% and outperformed its benchmark by 303bps.

The opening month of the year began on a softer tone after as a slew of negative sell down, led by the plunge in the Chinese stock market, drive risk assets lower. Economic data releases were consistently threatening to undo central banker’s efforts for more than half a decade, which led to Japan reinvigorating its easy monetary policy by venturing into negative interest rate territory. With oil prices also moving lower, demand for Global Sukuk was largely subdued and his left most issuances kick starting 2016 in red. The month of February, however, brought along a revival as oil prices recovered from its all-time low and overwhelmed the double notch downgrade on Bahrain and Saudi Arabia. Towards the final month of March, risk assets continued rallying as the ECB’s overshoot market expectations on its easy monetary policy along with the Fed also indicated that there is now a greater risk on slowing down its policy rate normalization journey considering the weaker global economic condition. Global Sukuk performance was generally stronger, thanks to the rally in the last 2 months in Q1.

The Global sukuk assets then moved into Q2 positively bolstered by a benign interest rate outlook as well as steadily recovering oil prices (which touched a high of USD52.50/bbl in mid-June). The former was aided by a disappointing print for May Nonfarm Payrolls, coming in at +38K vs 160K consensus, which drove risk assets higher on lower for longer expectations. The quarter ended most unexpectedly as the UK voted against all expectations to leave the EU, triggering a 10.6% drop in the pound sterling (vs USD) over 2 days. International ratings then moved to downgrade the credit rating of the UK government citing a Brexit would bring about a prolonged period of uncertainties for the country. The Global sukuk market was spared from the brunt of the selloff in spite of oil being initially down by 5% and poor sentiment and Brexit.


Manager's report

Page 7

Q3 2016 was a turbulent, albeit positive, quarter for USD assets and Global sukuk in particular. The quarter began with effects of Brexit still lingering in investor’s mind as they scrambled to process the implications of Brexit on global growth and inflation. EM assets rallied, while USD declined against most Asian currencies. The benchmark UST 10 year fell to a low of 1.35% mid-month only to back up to close to 1.58% as money flowed back to EM assets. The Global Sukuk market strengthened further during August following news of inclusion into JPM Emerging Market suite of indices. Long duration sovereigns led the rally, with USD Malay curve, INDOIS sukuk curve, Turkish sukuk curve and ultra-long SECO rallying by 20-35 bps. The Sept FOMC meeting came and went without a hike as well as direction for market to trade on. By quarter end, the OPEC meeting at Algiers provided an unexpected sentiment boost to oil prices by announcing a unanimous decision to cut production. Crude oil and Brent rallied nearly 5% higher upon news hitting the circuit.

The last three months of the year saw yet another unexpected outcome in Western political history. The victory by Donald Trump in the US presidential election has caught investors off guard, as well as pollsters (yet again), and drove fixed income and EM currencies lower on possible higher US fiscal spending and inflation growth moving forward. As the reality of an unexpected Trump’s president-elect victory sets-in, the UST moved higher by 75bps. The Fed then topped it off with increasing its interest rates by 25bps in December (within investor expectations), causing the US10y yield to climb by another 15bps before settling back lower to pre hike levels before New Year’s Eve. In the Sukuk universe, the obvious losers were long duration risks such as 10 and 30 year issues from Government of Malaysia and Saudi Electricity Co., while 10 year Government of Indonesia underperformed similar GCC quasi-sovereigns (i.e. DIFC and Ras Al Khaimah).

The Board of Directors Luxembourg, 19 January 2017 Note: The information stated in this report is historical and not necessarily indicative of future performance.


Sharia Supervisory Committee’s Report

Page 8

Complying with written guidelines relating to Islamic Sharia criteria, the Fund does not invest in equity securities where the issuer’s core activity or activities relate to conventional banking or any other interest-related activity, alcohol, tobacco, gaming, gambling, leisure, biotechnology companies involved in human/animal genetic engineering, arms manufacturing, life insurance, pork production, packaging and processing or any other activity relating to pork and sectors/companies significantly affected by the above, hotels and hospitality (unless no alcohol served), music, films, entertainment.

In addition, the Fund does not invest in any issuer that is unacceptable under Islamic Sharia principles due to excessive debt. The current criteria exclude issuers whose gross interest-bearing debt to gross assets ratio exceeds the percentage permitted under Islamic Sharia from time to time (which currently is 33 per cent).

Furthermore, it is not permissible for the Fund to pay or receive interest, although the receipt and payment of dividends from equity securities is acceptable.

However, dividends received by the Fund from its investments may comprise an amount which is attributable, for Islamic Sharia purposes, to interest income earned or received by the underlying investee companies as well as to the interest-bearing debt. In this case, the amount of the dividend will be calculated in accordance with Islamic Sharia criteria (dividend cleansing procedure). In accordance with Islamic Sharia, the amount of dividend income so attributed will be donated once a year by the Fund to charities with no direct or indirect benefit accruing to the Fund at the absolute discretion of the Directors. Since that dividend income received by the Fund will be accumulated and rolled up outside the capital of the Fund.

SHARIA OPINION

The BNP Paribas’ Fund Shari’ah Supervisory Committee (the “FSSC”), chaired by Sheikh Nizam Yaquby, issued the following Shari’ah opinion on March 30th of 2017 on the BNP Paribas Islamic Fund Equity Optimiser (the “fund”), sub-fund of the BNP Paribas Islamic Fund, after a detailed discussion and review of the Fund’s Documents.

In the name of Allah, the Most Gracious, the Most Merciful All praise is due to Allah, the Cherisher of the world, and peace and blessing be upon the Prophet of Allah, on his family and all his companions


Quarter 1, 2, 3 & 4, 2016 Shari’ah Compliance Report

With reference to the Shari’ah Opinion issued on the 16th February 2006, based on its view of the structure and investment process of the Fund and on the information provided by the Fund’s Manager, the FSSC hereby confirm that the Fund’s portfolio holding as well as its transactions during the year (ended 31st December 2016) are in compliance with the Islamic investment guidelines required by the FSSC.

The FSSC has reviewed and endorsed the methodology used by the Fund’s Manager to calculate a pro rate of the Fund’s earnings arising from interest income earned or received by the underlying investee companies as well as to the interest-bearing debt, and the earnings arising from restricted activities for the period under review which were as follows:

First, Second, Third & Fourth Quarter 2016

Total Impure Income: USD$ 2 607.64

In accordance with the Fund prospectus dated June 2016, the above total amount will be donated to a charity. This donation will have neither direct nor indirect benefit accruing to the Fund.

A copy of this proposal has been filed with BNP Paribas’ Sharia Supervisory Committee secretary.


Sharia Supervisory Committee’s Report

Page 9

And Allah Knows best.

.................................. ................................................. ..........................................

Sheikh Nizam Yaquby Dated: 30th March 2017

Dr. Abdul Sattar Abu Ghuddah Dr. Mohamed Daud Bakar

Prospective investors should not rely on the Pronouncement above in deciding to make an investment in the Fund and should consult their own Shari’ah advisers to assess the Shari’ah compliance of the Fund.

SHARIA PRONOUNCEMENT

The BNP Paribas’ Fund Sharia Supervisory Committee (the “FSSC”), chaired by Sheikh Nizam Yaquby, issued the following Sharia opinion on the 13th February 2017 on the BNP Paribas Islamic Fund Hilal Income (the “Fund”), after a detailed discussion and review of the Fund’s Documents.

In the name of Allah, the Most Gracious, the Most Merciful All praise is due to Allah, the Cherisher of the world, and peace and blessing be upon the Prophet of Allah, on his family and all his companions


Year 2016 Sharia Compliance Report

With reference to the Sharia Opinion issued on the 13th February 2017, based on its view of the structure and investment process of the Fund and on the information provided by the Fund’s Manager, the FSSC hereby confirm that the Fund’s investment objectives, criteria, strategy and the portfolio holding as well as its transactions during the year (ended the 31st December 2016) are in compliance with the Islamic investment guidelines required by the FSSC.

This ruling is based on the documents presented to us under the title:

- Presentation of the BNP Paribas Fund Hilal Income dated January 2017, - Fund investment Strategy dated on January 2017, - BNP Paribas Islamic Fund Hilal Income: Monthly performance for 2016, - Presentation of the Portfolio as at December 31st, 2016.

A copy of this proposal has been filed with BNP Paribas’ Sharia Supervisory Committee secretary.

And Allah Knows best.

----------------------- ---------------------------- ---------------------------- Sheikh Nizam Yaquby Dated: 13th February 2017

Dr. Abdul Sattar Abu Ghuddah Dr. Mohamed Daud Bakar

PricewaterhouseCoopers, Société coopérative , 2 rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg T: +352 494848 1, F:+352 494848 2900, www.pwc.lu

Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256) R.C.S. Luxembourg B 65 477 - TVA LU25482518

Page 10

Audit report To the Unitholders of BNP PARIBAS ISLAMIC FUND We have audited the accompanying financial statements of BNP PARIBAS ISLAMIC FUND and of each of its sub-funds, which comprise the statement of net assets and the securities portfolio as at 31 December 2016 and the statement of operations and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the Management Company for the financial statements The Board of Directors of the Management Company is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the Management Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the “Réviseur d’entreprises agréé” Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier”. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the “Réviseur d’entreprises agréé”, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the “Réviseur d’entreprises agréé” considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the Management Company, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

_IL pwc

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of BNP PARIBAS ISLAMIC FUND and of each of its sub-funds as of 31 December 2016, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements.

Other information

The Board of Directors of the Management Company is responsible for the other information. The other information comprises the information included in the annual report but does not include the financial statements and our audit report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

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 dr 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 r port this fact. We have nothing to report in this regard.

PricewaterhouseCoopers, Societe cooperative Luxembourg, 11 April 2017 Represented by

Frederic Botteman

Page 11


Financial statements at 31/12/2016

The accompanying notes form an integral part of these financial statements Page 12

BNP PARIBAS

ISLAMIC FUND - Equity Optimiser

BNP PARIBAS ISLAMIC FUND - Hilal

Income Consolidated

Expressed in USD USD USD Notes

Statement of net assets Assets 40 301 706 11 114 588 51 416 294

Securities portfolio at cost price 38 080 623 10 676 813 48 757 436 Unrealised gain/(loss) on securities portfolio 1 700 763 (180 230) 1 520 533

Securities portfolio at market value 4 39 781 386 10 496 583 50 277 969 Cash at banks and time deposits 244 583 534 685 779 268 Other assets 275 737 83 320 359 057

Liabilities 117 690 9 436 127 126 Other liabilities 117 690 9 436 127 126

Net asset value 40 184 016 11 105 152 51 289 168 Statement of operations and changes in net assets Income on investments and assets 774 440 505 534 1 279 974

Management fees 6 530 923 69 119 600 042 Extraordinary expenses 7 9 001 0 9 001 Other fees 8 185 310 54 312 239 622 Taxes 9 36 111 8 539 44 650 Transaction fees 12 16 898 0 16 898

Total expenses 778 243 131 970 910 213

Net result from investments (3 803) 373 564 369 761

Net realised result on: Investments securities 4 420 517 (502 602) (82 085)Financial instruments 4 (6 537) (6) (6 543)

Net realised result 410 177 (129 044) 281 133

Movement on net unrealised gain/(loss) on: Investments securities 4 714 193 535 659 1 249 852 Financial instruments 4 68 0 68

Change in net assets due to operations 1 124 438 406 615 1 531 053

Net subscriptions/(redemptions) (3 042 231) (26 538 925) (29 581 156)

Dividends paid 13 (16 885) 0 (16 885)Increase/(Decrease) in net assets during the year/period

(1 934 678) (26 132 310) (28 066 988)

Net assets at the beginning of the financial year/period

42 118 694 37 237 462 79 356 156

Net assets at the end of the financial year/period

40 184 016 11 105 152 51 289 168


Key figures relating to the last 3 years


BNP PARIBAS ISLAMIC FUND - Equity Optimiser USD USD USD Number of units 31/12/2014 31/12/2015 31/12/2016 31/12/2016

Net assets 46 063 391 42 118 694 40 184 016

Net asset value per unit Units “Classic - Capitalisation” 1 661.12 1 542.79 1 591.65 19 857.112 Units “Classic - Distribution” 104.61 94.58 95.57 936.000 Units “I - Capitalisation” 179 917.61 168 849.44 176 016.00 24.130 Units “I - Distribution” 104 337.48 95 321.54 97 319.33 7.226 Units “Privilege - Capitalisation” 17 404.68 16 286.56 16 928.68 209.025

BNP PARIBAS ISLAMIC FUND - Hilal Income USD USD USD Number of units 31/12/2014 31/12/2015 31/12/2016 31/12/2016

Net assets 0 37 237 462 11 105 152

Net asset value per unit Units “Classic - Capitalisation” 0 1 373.663 1 405.847 3 029.386 Units “I - Capitalisation” 0 142 284.672 146 611.855 38.034 Units “Privilege - Capitalisation” 0 14 040.058 14 439.584 87.957


Securities portfolio at 31/12/2016 Expressed in USD


Quantity Denomination Quotation currency Market value % of netassets

Transferable securities admitted to an official stock exchange listing and/or traded on another regulated market

39 781 386 99.00

Shares 39 781 386 99.00 United States of America 28 229 271 70.23

564 3M CO USD 100 713 0.25 584 AIR PRODUCTS AND CHEMICALS INC USD 83 991 0.21

5 456 AMETEK INC USD 265 162 0.66 11 836 AMPHENOL CORP - A USD 795 379 1.98 3 155 APPLIED MATERIALS INC USD 101 812 0.25 8 109 AUTOMATIC DATA PROCESSING USD 833 442 2.07

11 425 AVERY DENNISON CORP USD 802 264 2.00 3 248 BROADRIDGE FINANCIAL SOLUTIONS USD 215 342 0.54 6 115 C.H. ROBINSON WORLDWIDE INC USD 447 985 1.11

13 703 CAMPBELL SOUP CO USD 828 620 2.06 18 347 CHURCH & DWIGHT CO INC USD 810 754 2.02 4 679 CLOROX COMPANY USD 561 574 1.40

12 190 COACH INC USD 426 894 1.06 11 777 COGNIZANT TECH SOLUTIONS - A USD 659 865 1.64 8 580 COLGATE-PALMOLIVE CO USD 561 475 1.40

10 926 CORNING INC USD 265 174 0.66 372 CR BARD INC USD 83 574 0.21

16 258 DELTA AIR LINES INC USD 799 731 1.99 13 580 DENTSPLY SIRONA INC USD 783 973 1.95

6 618 DICKS SPORTING GOODS INC USD 351 416 0.87 3 431 DR PEPPER SNAPPLE GROUP INC USD 311 089 0.77

23 250 EBAY INC USD 690 293 1.72 1 098 ELECTRONIC ARTS INC USD 86 478 0.22 8 563 ESTEE LAUDER COMPANIES - A USD 654 984 1.63

11 373 EXPEDITORS INTL WASH INC USD 602 314 1.50 2 067 FASTENAL CO USD 97 108 0.24

451 FEDEX CORP USD 83 976 0.21 2 695 FISERV INC USD 286 425 0.71 3 926 FOOT LOCKER INC USD 278 314 0.69 1 502 FORTUNE BRANDS HOME + SECURI USD 80 297 0.20 6 017 GENUINE PARTS CO USD 574 864 1.43

499 HENRY SCHEIN INC USD 75 703 0.19 3 438 HERSHEY CO/THE USD 355 592 0.88 5 058 HUNT (JB) TRANSPRT SVCS INC USD 490 980 1.22 6 508 ILLINOIS TOOL WORKS USD 796 970 1.98 6 258 INTL FLAVORS & FRAGRANCES USD 737 380 1.84 6 939 INTUIT INC USD 795 279 1.98 2 872 JUNIPER NETWORKS INC USD 81 163 0.20 6 186 KIMBERLY-CLARK CORP USD 705 946 1.76 7 418 LEGGETT & PLATT INC USD 362 592 0.90 4 545 LOWES COS INC USD 323 240 0.80 5 459 MCCORMICK & CO-NON VTG SHRS USD 509 488 1.27 6 613 MCDONALDS CORP USD 804 934 2.00 1 043 MEAD JOHNSON NUTRITION CO USD 73 803 0.18 8 602 NORDSTROM INC USD 412 294 1.03 2 452 NUCOR CORP USD 145 943 0.36 3 136 PARKER HANNIFIN CORP USD 439 040 1.09

13 321 PAYCHEX INC USD 810 982 2.02 3 720 PUBLIC STORAGE USD 831 420 2.07

11 983 ROSS STORES INC USD 786 085 1.96 728 S&P GLOBAL INC USD 78 289 0.19

8 332 SOUTHWEST AIRLINES CO USD 415 267 1.03 2 599 SYNOPSYS INC USD 152 977 0.38 6 672 SYSCO CORP USD 369 429 0.92

11 271 TEXAS INSTRUMENTS INC USD 822 445 2.05 6 758 TJX COMPANIES INC USD 507 729 1.26




Quantity Denomination Quotation currency Market value % of netassets1 113 TRACTOR SUPPLY COMPANY USD 84 377 0.21 7 007 UNITED PARCEL SERVICE- CL B USD 803 282 2.00

10 455 VALERO ENERGY CORP USD 714 286 1.78 5 411 VF CORP USD 288 677 0.72

13 989 XILINX INC USD 844 515 2.10 1 567 ZOETIS INC USD 83 882 0.21

Germany 1 940 574 4.83 8 574 BRENNTAG AG EUR 477 493 1.19

13 314 SYMRISE AG EUR 812 103 2.02 16 638 UNITED INTERNET AG-REG SHARE EUR 650 978 1.62

United Kingdom 1 630 057 4.06 9 487 BUNZL PLC GBP 247 230 0.62

10 241 CRODA INTERNATIONAL PLC GBP 404 431 1.01 14 587 RELX PLC GBP 261 174 0.65 88 617 SAGE GROUP PLC/THE GBP 717 222 1.78

Japan 1 466 309 3.66 4 000 DAIICHI SANKYO CO LTD JPY 82 017 0.20

900 HIKARI TSUSHIN INC JPY 84 031 0.21 8 500 HITACHI CHEMICAL CO LTD JPY 213 019 0.53 2 000 HOYA CORP JPY 84 211 0.21 5 300 JAPAN AIRLINES CO LTD JPY 155 181 0.39 1 500 ORACLE CORP JAPAN JPY 75 749 0.19 2 400 TOKYO ELECTRON LTD JPY 227 273 0.57

17 800 YAMAHA CORP JPY 544 828 1.36

Canada 1 094 440 2.72 4 047 CANADIAN NATL RAILWAY CO CAD 272 691 0.68

17 101 CGI GROUP INC CLASS - A CAD 821 749 2.04

Australia 969 618 2.42 14 495 CALTEX AUSTRALIA LTD AUD 319 711 0.80

953 COCHLEAR LTD AUD 84 570 0.21 4 589 CSL LTD AUD 333 660 0.83 6 691 FLIGHT CENTRE TRAVEL GROUP AUD 151 651 0.38 2 001 REA GROUP LTD AUD 80 026 0.20

Ireland 842 419 2.11 979 ACCENTURE PLC - A USD 114 670 0.29

5 389 RYANAIR HOLDINGS PLC EUR 82 447 0.21 16 906 SEAGATE TECHNOLOGY USD 645 302 1.61

Finland 810 188 2.02 18 044 KONE OYJ - B EUR 810 188 2.02

Denmark 616 113 1.53 4 273 CHRISTIAN HANSEN HOLDING A/S DKK 237 059 0.59 2 429 DSV A/S DKK 108 261 0.27 4 159 VESTAS WIND SYSTEMS A/S DKK 270 793 0.67

Hong Kong 544 337 1.35 30 900 ASM PACIFIC TECHNOLOGY LTD HKD 327 406 0.81 60 500 TECHTRONIC INDUSTRIES CO LTD HKD 216 931 0.54

Belgium 450 966 1.12 9 096 COLRUYT SA EUR 450 966 1.12

Switzerland 429 993 1.07 538 EMS-CHEMIE HOLDING AG - REG CHF 273 935 0.68 85 GIVAUDAN - REG CHF 156 058 0.39

The Netherlands 290 799 0.72 8 010 WOLTERS KLUWER EUR 290 799 0.72

British Virgin Islands 256 376 0.64 5 965 MICHAEL KORS HOLDINGS LTD USD 256 376 0.64





Spain 133 322 0.33 2 928 AMADEUS IT GROUP SA EUR 133 322 0.33

Norway 76 604 0.19 4 235 MARINE HARVEST NOK 76 604 0.19

Total securities portfolio 39 781 386 99.00





Transferable securities admitted to an official stock exchange listing and/or traded on another regulated market

10 496 583 94.52

Bonds 10 496 583 94.52 Cayman Islands 5 686 590 51.21

300 000 AHB SUKUK CO 3.267% 13-08/10/2018 USD 304 500 2.74 500 000 DIB SUKUK LTD 2.921% 15-03/06/2020 USD 493 750 4.45 200 000 DIB SUKUK LTD 3.600% 16-30/03/2021 USD 201 500 1.81 450 000 DP WORLD CRESCEN 3.908% 16-31/05/2023 USD 448 875 4.04 400 000 DUBAI DOF SUKUK 6.450% 12-02/05/2022 USD 460 500 4.15 450 000 EIB SUKUK LTD 3.542% 16-31/05/2021 USD 451 688 4.07 400 000 EIB SUKUK LTD 4.147% 12-11/01/2018 USD 406 500 3.66 300 000 EMAAR SUKUK LTD 3.635% 16-15/09/2026 USD 287 625 2.59 260 000 EMAAR SUKUK LTD 6.400% 12-18/07/2019 USD 281 775 2.54 240 000 EMG SUKUK LTD 4.564% 14-18/06/2024 USD 245 700 2.21 400 000 JANY SUKUK 2.844% 14-23/09/2019 USD 400 324 3.60 300 000 OOREDOO TAMWEEL 3.039% 13-03/12/2018 USD 304 125 2.74 350 000 QIB SUKUK LTD 2.754% 15-27/10/2020 USD 348 250 3.14 200 000 SHARJAH SUKUK 3.839% 16-27/01/2021 USD 206 954 1.86 350 000 SIB SUKUK CO III 2.843% 15-17/03/2020 USD 347 375 3.13 200 000 SIB SUKUK CO III 2.950% 13-16/04/2018 USD 200 524 1.81 300 000 SIB SUKUK CO III 3.084% 16-08/09/2021 USD 296 625 2.67

Malaysia 1 599 393 14.40 200 000 AXIATA SPV2 3.466% 15-19/11/2020 USD 202 292 1.82 200 000 AXIATA SPV2 4.357% 16-24/03/2026 USD 201 053 1.81 300 000 EXPORT-IMPORT 2.874% 14-19/02/2019 USD 301 010 2.71 350 000 PETRONAS SUKUK 2.707% 15-18/03/2020 USD 348 493 3.14 300 000 TNB GLOBAL VC 3.244% 16-19/10/2026 USD 279 528 2.52 250 000 WAKALA GLOBAL 4.646% 11-06/07/2021 USD 267 017 2.40

United Arab Emirates 1 585 634 14.27 300 000 DIFC SUKUK 4.325% 14-12/11/2024 USD 307 875 2.77 292 000 JAFZ SUKUK 7.000% 12-19/06/2019 USD 319 010 2.87 450 000 NOOR SUKUK 2.788% 15-28/04/2020 USD 444 375 4.00 500 000 SUKUK FUND NO 3 4.348% 13-03/12/2018 USD 514 374 4.63

Indonesia 935 958 8.43 500 000 PERUSAHAAN PENER 6.125% 13-15/03/2019 USD 537 642 4.84 400 000 SBSN INDO III 3.400% 16-29/03/2021 USD 398 316 3.59

Hong Kong 393 040 3.54 400 000 HONG KONG SUKUK 1.894% 15-03/06/2020 USD 393 040 3.54

Saudi Arabia 295 968 2.67 300 000 APICORP SUKUK 2.383% 15-28/10/2020 USD 295 968 2.67

Total securities portfolio 10 496 583 94.52

Notes to the financial statements


Notes to the financial statements at 31/12/2016

Page 19

Note 1 - General

BNP PARIBAS ISLAMIC FUND (“the Fund”) has been established for an undetermined period. The Fund may be dissolved at any time by agreement between the Management Company and the Depositary. The Fund may further be dissolved in any circumstances imposed by Luxembourg law. The liquidation of the Fund may not be requested by its Unitholders or by their heirs and beneficiaries.

The net asset values are expressed in US Dollar (USD).

The Fund is open to Islamic and non-Islamic investors alike.

The Fund is an Umbrella Fund containing two Sub-Funds, open for subscriptions:

- BNP PARIBAS ISLAMIC FUND – Equity Optimiser

- BNP PARIBAS ISLAMIC FUND – Hilal Income

The business of the Fund shall at all times be conducted in a manner that complies with written guidelines relating to Islamic Sharia criteria.

The Fund will observe the following guidelines in its investment activities:

- it will not invest in equity securities where the issuer’s core activity or activities relate to any of the following sectors:

a) conventional banking or any other interest-related activity b) alcohol c) tobacco d) gaming e) gambling f) leisure g) biotechnology companies involved in human/animal genetic engineering h) arms manufacturing i) life insurance j) pork production, packaging and processing or any other activity relating to pork k) sectors/companies significantly affected by the above l) hotels and hospitality (unless no alcohol served) m) music n) films o) entertainment.

- it will not invest in any issuer that is unacceptable under Islamic Sharia principles due to excessive debt.

The current criteria exclude issuers whose gross interest-bearing debt to gross assets ratio exceeds the percentage permitted under Islamic Sharia from time to time (which currently is 33 per cent).

In addition, it is not permissible for the Fund to pay or receive interest, although the receipt and payment of dividends from equity securities is acceptable. However, dividends received by the Fund from its investments may comprise an amount which is attributable, for Islamic Sharia purposes, to interest income earned or received by the underlying investee companies as well as to the interest-bearing debt. Where this is the case, the amount of any dividend that is so attributed will be calculated in accordance with Islamic Sharia criteria (dividend cleansing procedure). In accordance with the Islamic Sharia, the amount of dividend income so attributed will be donated once a year by the Fund to the Arab World Institute (“Institut du Monde Arabe” or IMA), Paris, or any other charities with no direct or indirect benefit accruing to the Fund or any of its advisers, as decided from time to time, at the absolute discretion of the Management Company. Since that dividend income received by the Fund will be capitalised and rolled up outside the capital of the Fund, a donation of dividend income to charities will have no effect on the net asset value of the Fund.



Page 20

Note 2 - General Information BNP PARIBAS ISLAMIC FUND may be officially subscribed and may solicit public savings in the countries in which it has obtained a commercial distribution licence:

- Luxembourg (10 February 2006)

- Austria (2 September 2007)

- France (7 July 2009)

- Switzerland (30 July 2009)

- Singapore (21 September 2010)

- United Kingdom (11 December 2013)

- Ireland (15 May 2015)

- Germany (11 November 2015)

In addition, BNP PARIBAS ISLAMIC FUND is a restricted recognized scheme in Singapore (since 5 April 2006).

Before making any subscription in a country in which BNP PARIBAS ISLAMIC FUND is registered, it is necessary to verify the unit categories and classes that are authorized for commercial distribution.

Note 3 - The Fund’s Units The Fund's capital is represented by the assets of its various Sub-Funds. Subscriptions are invested in the assets of the relevant Sub-Fund.

In each Sub-Fund, the Management Company may issue Units of the following categories, their main difference being the various commissions and fees charged:

- “Classic”: offered to all types of investors.

- “Privilege”: offered to all types of investors. This category differs from the “Classic” category in that a specific management fee is charged and a minimum holding amount may be applied.

- “I”: reserved to institutional investors and undertakings for collective investment.

- “I Plus”: reserved to authorized investors.

- “X”: reserved to authorized investors.

The categories “Classic”, “Privilege”, “I” and “I Plus” may offer two classes of Units: Capitalisation units and Distribution units. The category “X” offers only Capitalisation units.

Note 4 - Principal accounting methods The financial statements of the Fund are prepared in accordance with the regulatory requirements applicable in the Grand Duchy of Luxembourg.

• Valuation of the securities portfolio

a) The value of non-interest bearing cash in hand, non-remunerated deposits, bills and drafts payable at sight and accounts receivable, prepaid expenses, and dividends due but not yet received, shall comprise the nominal value of these assets, unless it is unlikely that this value could be received; in that event, the value will be determined by deducting an amount which the Management Company deems adequate to reflect the actual value of these assets;

b) The value of shares or units in undertakings for collective investment shall be determined on the basis of the last net

asset value available on the Valuation Day. If this price is not a true reflection, the valuation shall be based on the probable sale price estimated by the Management Company in a prudent and bona fide manner;



Page 21

c) The valuation of all securities listed on a stock exchange or any other regulated market, which functions regularly, is recognised and accessible to the public, is based on the last known closing price on the Valuation Day, and, if the securities concerned are traded on several markets, on the basis of the last known closing price on the major market on which they are traded. If this price is not a true reflection, the valuation shall be based on the probable sale price estimated by the Management Company in a prudent and bona fide manner;

d) Unlisted securities or securities not traded on a stock exchange or another regulated market which functions in a

regular manner, is recognised and accessible to the public, shall be valued on the basis of the probable sale price estimated in a prudent and bona fide manner by a qualified professional appointed for this purpose by the Management Company;

e) Securities denominated in a currency other than the currency in which the sub-fund concerned is denominated shall

be converted at the exchange rate prevailing on the Valuation Day; f) All liquid instruments may be valued at their nominal value; g) At its sole discretion, the Management Company's Board of Directors may permit the use of another valuation method

if it believes that this valuation reflects the fair value of one of the Fund's assets more accurately. Security transactions are accounted for on the date the securities are purchased or sold. Realized gains or losses on investments sold are computed on a weighted average cost basis.

• Income on investment assets

Dividends are recorded as income on the ex-dividend date.

The caption "Income on investments and assets" in the "Statement of operations and changes in net assets" only includes dividends net of witholding tax.

• Presentation of the financial statements

This annual report is prepared on the basis of the last unofficial technical net asset value calculated for financial statements purpose as at 31 December 2016. In accordance with the prospectus, the net assets were calculated using the latest exchange rates known at the time of calculation.

The stock market prices and exchange rates used to value the securities portfolio at the date of the report are those of 30 December 2016.

• Valuation of forward foreign exchange contracts

Forward foreign exchange contracts remaining open at the closing date are valued by reference to the forward foreign exchange rate corresponding to the remaining life of the contract. Any unrealised gains and losses are included when determining the result of the transactions.

To calculate the net positions per currency, the positions are converted at the forward exchange rates corresponding to the remaining life of the contract.

Note 5 - Exchange rates

As at 31 December 2016, all sub-funds and unit classes were denominated in USD.



Page 22

Note 6 - Management fees

The management fee is defined for each unit class as mentioned below:

Sub-fund Category Management fee


Classic Max. 1.50% Privilege Max. 0.75%

I Max. 0.60% X -



I Max. 0.35% X -

Management fees are calculated and deducted monthly from the average net assets of a sub-fund, unit category, or unit class, are paid to the Management Company and serve to cover remuneration of the asset managers and also distributors in connection with the marketing of the Fund's units.

Note 7 - Extraordinary expenses

Expenses other than management, performance, distribution and other fees described below borne by each sub-fund. These expenses include but are not limited to Sharia supervisory committee fees, legal fees, taxes, assessments or miscellaneous fees levied on sub-funds and not considered as ordinary expenses.

Note 8 - Other fees

Other fees are calculated and deducted monthly from the average net assets of a sub-fund, unit category, or unit class and serve to cover general custody assets expenses (remuneration of the depositary) and daily administration expenses (NAV calculation, record and book keeping, notices to the unitholders, providing and printing the documents legally required for the unitholders, domiciliation, auditors cost and fees…), except for brokerage fees, commissions for transactions not related to the deposit, Fund’s Sharia Supervisory Committee fees, interest and bank fees, extraordinary expenses, and the “taxe d’abonnement” in force in Luxembourg, as well as any other specific foreign tax and other regulators levy.

Maximum other fees payable by the Sub-fund

Sub-fund Category Other fees



I Max. 0.35% X Max. 0.50%



I Max. 0.40% X Max. 0.40%



Page 23

Note 9 - Taxes

The Fund is not liable to any Luxembourg income tax or capital gains tax.

The Fund is liable to an annual “taxe d’abonnement” in Luxembourg representing 0.05% of the net asset value. This rate is reduced to 0.01% for: a) Sub-funds with the exclusive objective of collective investments in money market instruments and deposits with

institutions; b) Sub-funds with the exclusive objective of collective investments with credit institutions; c) Sub-funds, categories, or classes reserved for Institutional Investors, Managers, and UCIs.

The following are exempt from this “taxe d’abonnement”: a) The value of assets represented by units, or shares in other UCIs, provided that these units or shares have already been

subject to the “taxe d’abonnement”; b) Sub-funds, categories and/or classes:

(i) whose securities are reserved to Institutional Investors, Managers, or UCIs and (ii) whose sole object is the collective investment in money market instruments and the placing of deposits with

institutions, and (iii) whose weighted residual portfolio maturity does not exceed 90 days, and (iv) that have obtained the highest possible rating from a recognized rating agency;

c) Sub-funds, categories and/or classes reserved to: (i) institutions for occupational retirement pension or similar investment vehicles, set up at the initiative of one or

more employers for the benefit of their employees, and (ii) companies having one or more employers investing funds to provide pension benefits to their employees;

d) Sub-funds whose main objective is investment in microfinance institutions; e) Sub-funds, categories and/or classes:

(i) whose securities are listed or traded on at least one stock exchange or another regulated market operating regularly that is recognized and open to the public, and

(ii) whose exclusive object is to replicate the performance of one or several indices. When due, the “taxe d’abonnement” is payable quarterly based on the relevant net assets and calculated at the end of the quarter for which it is applicable.

In addition, the Fund may be subject to foreign UCI’s tax, and/or other regulators levy, in the country where the sub-fund is registered for distribution.

Note 10 - Changes in the composition of the securities portfolio

The list of changes in the composition of the securities portfolio during the year is available free of charge at the Management Company’s registered office and from local agents.

Note 11 - List of Investment managers

• BNP Paribas Investment Partners Najmah Malaysia Sdn Bhd • THEAM S.A.S.

Sub-fund Investment managers

BNP PARIBAS ISLAMIC FUND - Equity Optimiser THEAM S.A.S.

BNP PARIBAS ISLAMIC FUND - Hilal Income BNP Paribas Investment Partners Najmah Malaysia Sdn Bhd

Note 12 - Transaction fees

Transaction fees incurred by the Fund relating to purchase or sale of transferable securities, money market instruments, derivatives or other eligible assets are mainly composed of standard fees, sundry fees on transaction, stamp fees, brokerage fees, Depositary fees, VAT fees, stock exchange fees and RTO fees (Reception and Transmission of Orders).



Page 24

In line with bond market practice, a bid-offer spread is applied when buying and selling securities. Consequently, in any given transaction, there will be a difference between the purchase and sale prices quoted by the broker, which represents the broker’s fee.

Note 13 - Dividends

The following dividends were paid on 30 September 2016 for units outstanding at 26 September 2016, with an ex-date 27 September 2016:

Sub-fund Category Currency DividendBNP PARIBAS ISLAMIC FUND - Equity Optimiser Classic USD 2.04

BNP PARIBAS ISLAMIC FUND - Equity Optimiser I USD 2 072.44

Note 14 - Tax reclaims as part of the Aberdeen/Fokus Bank Project

In several European Union member states, community law grants undertakings for collective investments (UCIs) the right to file claims with a view to recovering taxes they have been unjustly forced to pay. When one member state imposes a greater tax burden on a foreign UCI than on a resident UCI, this constitutes discrimination under community law.

This principle was confirmed by the ruling of the Court of Justice of the European Union (CJEU) in the “Aberdeen” case (18 June 2009). This ruling acknowledges that a non-resident UCI can be subject to discriminatory taxation, which constitutes an obstacle to freedom of establishment and/or the free movement of capital. Other CJEU rulings have subsequently confirmed this jurisprudence. Key examples are the rulings in the Santander (10 May 2010) and Emerging Markets (10 April 2014) cases regarding French and Polish tax legislation, respectively.

In light of this jurisprudence and in order to safeguard the right of UCIs to receive tax rebates, the management company has decided to file claims with the tax authorities in several member states whose discriminatory legislation fails to comply with community law. Preliminary studies will be carried out to determine whether or not the claims are viable, i.e. for which funds, in which member states and over what period of time it is necessary to request a rebate.

To date, there is no European legislation establishing a uniform framework for this type of claim. As a result, the time taken to receive a rebate and the complexity of the procedure vary depending on the member state in question. This means that it is necessary to constantly monitor developments in this regard.

Due to the uncertainty of the recoverability of the amounts, no accrual is recorded and it is booked under the caption “Income on investments and assets” when received.


Unaudited appendix

Page 25

Global Market Risk Exposure The Management Company of the Fund, after a risk profile assessment, decided to adopt the commitment approach to determine the global market risk exposure.

Information on the remuneration policy in effect within the Management Company Information on remuneration policy, applicable during the financial year 2016, is available on request to the management company BNP Paribas Investment Partners Luxembourg, 10 rue Edward Steichen, L-2540 Luxembourg.

In addition, descriptive information on the remuneration policy of the management company can be found on the website http://www.bnpparibas-ip.com/en/remuneration-disclosure/.

Information according to regulation on transparency of securities financing transactions The FCP is not affected by SFTR instruments during the exercise ending 31 December 2016.

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14, rue Bergère - 75009 Paris - France

www.bnpparibas-ip.com

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