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30/04/2020

Pharus Asian Niches

Portfolio Update – March & April

Launch date: 15.02.2019

Total Net Asset value 30.04.2020: € 14,355,740.36

Currency: EUR

Net Asset Value per share As of 30.04.20:

Classe A – Isin: LU1867072578 € 83,29

Classe B – Isin: LU1867072651 € 84,08

Classe Q – Isin: LU1867072735 € 84,05

March-April Performance: -10.00% Performance since inception: -15.92%

The fund can invest the Equity Portfolio up to 70% of its NAV,

This would be the case if every Niche was fully invested, The

difference between 70% and the real investment in equity is

managed in the Cash Management Portfolio, through a

combination of cash and safe short-term bonds,

The 30% of the NAV that makes up the rest of portfolio is

managed in the Bond Portfolio that holds bonds and/or cash,

with a total return goal and without any constraint,

65,0

70,0

75,0

80,0

85,0

90,0

95,0

100,0

65,0

70,0

75,0

80,0

85,0

90,0

95,0

100,0

Equity Invested60%

Bond Portfolio (Incl. cash)30%

Equity Portfolio70%

Cash Management

10%

Portfolio breakdown by asset class

Net asset value per share

2

NICHE MAR-APR

Electric Mobility -12,4%

5G -3.3%

Internet Victims -25,0%

Small Cap Indonesia -16,9%

Korea Reunification -5,8%

Close the Gap -7.8%

Neglected Luxury -21,6%

Orphan Companies -2,7%

Steel and Plastic Substitution -10,8% * net of JPY hedging

ISIN Security % Portfolio

LU1867072222 Pharus Sicav - Electric Mobility Niches B 7.99 Electric Mobility

US48268K1016 KT ADR 1.82 Korea Re-unification

FR0013461274 Eramet 5,875 ‘20 1.81 Bond

FI0009000681 Nokia Oyj 1.76 5G

XS1945271952 SGL Carbon SE 1.52 Bond

US78440P1084 SK Telecom Co Ltd 1.50 5G

XS0543111768 Macquerie Bank Sub 1.47 Cash Management

XS1109959467 ARCELIK 3.875 ‘21 1,42 Bond

XS1435297202 SALINI 3.75 ‘21 1,40 Bond

FR0011615699 ERAMET 4.50 ‘20 1,40 Cash Management

EUR; 61%USD; 9%

KRW; 13%

JPY; 3%

GBP; 3%

IDR; 6%Other; 4%

Top holdings

Monthly comment

During these 2 months the world has significantly changed. All around the world governments decided to shut most of the human activities and to mandatory lockdown the population, to stop the COVID 19 epidemic. This happened despite the virus lethality was modest. Those decisions were taken in a hurry, led by panic. Politicians felt they could not stand to be blamed for any loss of life, so they blindly followed epidemiologists who do not care about livelihood and collateral damages. This led to a massive and unnecessary economic recession. We do expect in the next few months a powerful rebound of the economy and of value stocks. This is likely to take place in an environment still plagued by fear and pessimism.

In every recession value investing tends to underperform, and so did our portfolio as whole. However, among our Niches some turned out being very defensive (5G, Orphan Companies) and others were significantly impacted (Internet Victims, Indonesian Small Caps). This proved that our Niches approach, despite being absolutely value, offers some useful decorrelation. During the period we increased the weight of the most affected Niches, as we are sure that this crisis provides a lifetime investment opportunity for value investors.

Here below the comments for each Niche.

Niches performance in March-April

Portfolio breakdown by currency

3

ISIN Security % Niche Sub-Niche

US48268K1016 KT ADR 1,82 Korea Re-unification Telecom

FI0009000681 NOKIA OYJ 1,76 5G Telecom Equipment

US78440P1084 SK TELECOM 1,50 5G Telecom Services

JP3866800000 PANASONIC 1,37 Electric Mobility Lithium Cells (LC)

GB0030913577 BT GROUP 0,82 5G Telecom Services

US7625441040 RIBBONS COMMUNICATIONS 0,82 5G Telecom Equipment

ES0178430E18 TELEFONICA 0,77 5G Telecom Services

FI0009005961 STORA ENSO 0,70 Steel Substitution Wood (Timber, CLT, Glulam)

FR0000062796 VRANKEN-POMMERY MONOPOLE 0,70 Neglected Luxury Champagne&Wines

JP3834050001 HEIAN CEREMONY SERVICE 0,69 Orphan Companies Funerary Services

Source: Niche AM

Source: Niche AM – Thomson Reuters

Europe32%

Japan21%

South Korea23%

USA12%

Indonesia 8%

Other 4%

68,1

69,0

20 30 40 50 60 70 80

Market

Asian Niches

Equity top holdings

Equity breakdown by geographical exposure Equity Portfolio ESG rating

4

Electric Mobility ........................................................................................................................................................................... 5

5G ................................................................................................................................................................................................. 7

Internet Victims ........................................................................................................................................................................... 9

Small Cap Indonesia .................................................................................................................................................................. 11

Korea Reunification ................................................................................................................................................................... 13

Close the Gap ............................................................................................................................................................................. 15

Neglected Luxury ....................................................................................................................................................................... 17

Orphan Companies .................................................................................................................................................................... 19

Steel and Plastic Substitution .................................................................................................................................................... 21

Bond Portfolio ……………………………………………………………………………………………………………………………………………………………………24

5

Electric Mobility

Getting ready for a seismic change

# stocks: 27 Average Market Cap (mln $) 4533 Median Market Cap (mln $): 1142

Electric Mobility – segment breakdown

Asian Niches

Fund EM Niche

Pharus Electric Mobility PHSEMN 8,0% 53,3%

Battery makers BM 0,1% 0,4%

Lithium Cells LC 1,7% 11,1%

Cathode makers CM 1,2% 8,2%

Separators makers SM 0,9% 5,9%

Electrolytes and Elecfoils EEM 1,0% 6,9%

Commodities C 1,3% 8,9%

Adas electronics AE 0,5% 3,2%

Automakers geared for EM TAG 0,1% 1,0%

Cash EMN Cash 0,2% 1,2%

Total 15.0% 100.0%

Source: Niche AM

Valuation snapshot

Source: Niche AM, Thomson Reuters

Geographical breakdown ESG rating (Thomson Reuters)

Source: Niche AM Source: Niche AM, Thomson Reuters

PHSEMN53%

BM1%

LC11%

CM8%

SM6%

EEM7%

C 9%

AE3%

TAG1%

Cash1%

Japan35%

South Korea27%

France10%

USA10%

Germany7%

Australia7%

Other4%

6

Electric Mobility

Getting ready for a seismic change

Bi-monthly comment Commento mensile

Chart March-April (28/02/20-30/04/20) Chart since inception (21/02/19 – 30/04/20)

Source: Niche AM

The Niche Electric Mobility lost 12,4% in the 2 months from March to April. Despite its growth and the fresh Tesla-driven enthusiasm, the sector was not immune from the dreadful selloff. We remind that we do not hold Tesla in portfolio, as the approach is strictly value, but we are indirectly leveraged to the future success of this amazing company through its suppliers in Korea and Japan. The Niche focuses on value companies exposed to EV batteries. While those stocks will greatly benefit from the bottleneck in the batteries supply that we think will shortly emerge, they are also very exposed to the cyclicality of the economy, as they are diversified conglomerates in the engineering, commodities and chemical sectors Those companies were already depressed by the Sino-American trade war. The COVID-19 epidemic and the following market crash are creating amazing medium-term opportunities.

Due to the many lockdowns around the world, the auto industry, the main employer worldwide, is going through an existential phase. We expect the sprouting of many cash for clunkers government initiatives that will favour green cars and will help the recovery of the industry. This is a good time for the government to stimulate EVs: prices are now attractive, several sexy models are available, the driving range is more than sufficient and the recharging network decent and growing. After a long journey started in 2011 we are at last getting there… The next 12 months will be pivotal for the EV revolution. The lithium batteries supply won’t be able to match the demand, creating bottlenecks, significantly increasing the margins of the producers and providing opportunities for investors.

The worst performer was Syrah (-38%), the only significant miner and refiner of natural graphite outside China, able to process the material to be used for EV batteries anodes. The company holds a significant balance of net cash and it is well supported by a pension fund. Livent, a fully integrated high-quality supplier of lithium, was also hardly hit (-30%). On the supply side, the lithium industry has reacted promptly to declining market prices by cutting production and delaying capacity expansion: these actions will likely drive price inflation in lithium, once EVs production starts to ramp up. The best performer was Samsung SDI (+8.1%), a leading and solid battery maker trading just above the book value.

Niche description Electric mobility will grow dramatically in the next few years, with a speed still unexpected by most and changing the world for good. The electric mobility will be pervasive, affecting land, air and water transportation. The batteries stocks, just a part of the broader electric mobility sector, will overcome the semiconductor sector by total sales in few years. We deem the sector a great opportunity for those who have a firm understanding of it, and potentially hazardous for those who do not. Niche Asset Management team boasts a long and successful experience in the electric mobility investing. Niche aims to give the investor exposure to this exciting sector through its value approach.

7

5G Moving to the next Internet investment chapter


5G breakdown

Asian Niches Fund

5G Niche

Telecom Equipment 4.5% 44.9%

Telecom Services 4.5% 45.1%

5G Apps 1.0% 10.0%

Cash 0.0% 0.4%

Total 10,0% 100,0%

Source: Niche AM

Valuation Snapshot

Source: Niche AM, Thomson Reuters


Source: Niche AM Source: Niche AM, Thomson Reuters

Telecom Equipment

45%Telecom Services

45%

5G Apps10%

8

5G

Moving to the next Internet investment chapter


Chart March-April (28/02/20 - 30/04/20) Chart since inception (21/02/19 - 30/04/20)

Source: Niche AM

During March and April, the 5G Niche depreciated by only 3,3%, making it one of the best Niches for the period. Best

performer was Shinsegae I&C, a technology company focused on building the IT infrastructure for unmanned groceries.

Thanks to 5G we will see significant growth in automation and the physical working experience will change for good.

The worst performer was Avaya, a company that creates and sells hardware and software to make remote working efficient

and smoothless. The 5G should increase the number of people able to work in remote and this pandemic should jumpstart

the process. While the leverage of the company was a big negative point for investors during the crisis, leading them to

ditch the stock, we expect Avaya business model to thrive in this environment.

In general, during the period, telecom equipment did well while telecom services lagged, despite low valuations and decent

results. Those companies now present an amazing investment opportunity, in particular in Europe. Margin recovery

through regulation, M&A and restructuring is highly likely. FCF production is healthy, debt and dividend sustainable. While

the distribution of the EV between equity (1/3) and debt (2/3) makes the upside of the sector stellar and the downside

modest.

Niche description The 5G is coming

•This starts a 5 to 10 years journey leading to full 5G connectivity

•The 5G will shape this century and will change the way we live for good

•The 5G will open the gates to new business models, will greatly improve the productivity and will make the world smaller and safer

5G will make a broad and disruptive array of new technologies reality, IoT, AI, VR, AU, block chain, self-driving cars, smart living, smart homes, remote healthcare won’t be possible without 5G. Nonetheless the companies that will make 5G possible are still neglected and offer great value,

The niche aims to give the investors an exposure to these 5G players

9

Internet Victims

Chasing the survivors


Internet Victims breakdown

Asian

Niches Fund

Internet Victims Niche

Publishers&TV&Book 3,0% 30,3%

Postal Services 1,2% 12,1%

Retailers 1,6% 16,0%

Post Equipment 0,2% 2,2%

Advertisement 1,0% 9,8%

Travel Agents 0,2% 1,6%

Financials 2,8% 28,0%

Cash 0,0% 0,0%

Total 10.0% 100.0%

Source: Niche AM

Valuation Snapshot

Source: Niche AM. Thomson Reuters

Geographical breakdown

ESG rating (Thomson Reuters)

Source: Niche AM Source: Niche AM. Thomson Reuters

10

Internet Victims

Chasing the survivors



Source: Niche AM

Niche description

Every technology revolution, and the ongoing huge internet revolution is no exception, makes corporate victims; business models are replaced; many of the old players fail to adapt early, while new players are ushered in, thriving and gaining market share, This slow and cruel process is well known by investors, who, however, normally tend to be late in fully understanding the depth and the breath of the shift, Once the trend is established most of the investors sell the old players and gain exposure to the new ones, The old players have to live through a prolonged period of restructuring and reinvention; valuations are squeezed, failures and consolidation are common, We call them the (internet revolution) VICTIMS At the end of a technology revolution a new class of companies emerges; this class is composed by the old players which have learnt to live through the change, thriving in a less competitive environment and/or through an adapted business model, We call them the (internet revolution) SURVIVORS, Finding survivors can be even more rewarding than finding winners, The niche aims to gain exposure to the survivors of the internet revolution,

During the period, the Niche Internet Victims lost 25%, making it the worst Niche in the portfolio. Understandably so. The huge upside that this Niche offers comes inexorably with some pain, pain at which the value investor is nonetheless used to. The Niche invests in many industries that suffer from the internet competition. Those industries have been extremely affected by the lockdowns. General retailers are closed. Advertisement agencies saw the order flow drying up. Tour operators are frozen. Malls owners do not get payed. Banks fear the NPL wave. Newspapers and broadcasters saw their audience increase and the advert income fall. Postal services could not balance the loss of income from the business and advert mail with the surge in income from e-commerce deliveries. However, postal services turned out to be the best sector as the trend in e-commerce looks promising, while tourist operators and general retailers lost from 50% to 70%, from already depressed levels. We cannot refrain from seeing a big silver lining in all this wreckage. As the process from physical to online trade accelerates, many weaker players will restructure fast and the supply will decrease, leaving room to the survivors to increase margins and thrive again. That is why we are cherry picking the likely survivors where we can find stocks with incredibly great risk/reward profiles. We are also studying tourism agencies and malls owners to better assess their likelihood to survive for a protracted period. We are accumulating quality and well capitalized publishers and broadcasters. The formers are seeing the on-line circulation increasing rapidly and the latter are, at last, rethinking to their business model and getting ready to jump into the streaming through M&A and restructuring of their production divisions. Finally, the banks and insurance we hold are solid and ready to withstand the sharp and short economic decline that will come with these lockdowns. Here we are adding into companies with very strong capital, low NPE and low P/TBV.

11

Small Cap Indonesia

A tremendous opportunity

# stocks: 16 Average Market Cap (mln $): 514 Median Market Cap (mln $): 327

Small Cap Indonesia breakdown

Asian Niches

Fund Small Cap Indonesia

Banks 1,6% 15,6%

Real Estate & construction

1,9% 18,8%

Retailers 0,2% 2,1%

Telecom 0,6% 6,3%

Manufacturers 0,4% 3,8%

Services 0,0% 0,0%

Conglomerates 0,6% 6,5%

Insurance 0,0% 0,0%

Consumer Products 1,1% 11,0%

Cash 3,6% 35,9%

Total 10,0% 100,0%

Source: Niche AM

Valuation Snapshot



n.a.


16%

19%

2%

6%4%6%

36%

Banks

RealEstate&ConstructionRetailers

Telecom

Manufacturers

Conglomerates

Consumer Products

Cash

12

Small Caps Indonesia

A tremendous opportunity



Source: Niche AM

The Niche Small Caps Indonesia lost 17% in the two-month period. The epidemic triggered an emerging market run among

investors, and this affected small companies the most. The discount between big and small caps in Indonesia, already at

record levels, increased by 15% in the period. Infrastructures and real estate were the sectors most affected while telecom

and consumer staples outperformed from very depressed levels. Matahari Department Stores, a high-end general retailer,

lost 62% despite being net cash and already trading at very low multiples at the start of the period. PPTP, the main

infrastructure company of the country, controlled by the government and well capitalised, lost 46%, left trading at 0,2x the

TBV.

The lockdown in a country like Indonesia, characterized by warm weather, a very young population (28 years the average

age), widespread poverty and low safety nets, is something that should not recommended unless the disease is highly

lethal. This is not the case with COVID 19. This crisis led the Niche to levels that make no sense and represent an amazing

opportunity for the value and contrarian investor. We did gradually increase our exposure to the Niche during the period,

focusing on banks, consumer staples and infrastructures players.

Niche description Indonesia is a land with incredible potential, Its territory is huge, highly fertile and beautiful, The weather is ideal for agriculture and tourism, There are plenty of natural resources, The population is tame and friendly, Corporate governance is decent by emerging markets standards, The Central Bank is independent and from a political perspective the democracy system is maturing rapidly, while corruption is decreasing, The public debt is very low, inflation under control and growth is healthy, While this is well reflected in the valuation of big caps, it is not in small caps’, The discount of Indonesian small caps vs big caps is stunning, which is a legacy of the low visibility and reliability of those stocks in the past, Things have changed, and we expect a rapid catch up in the next few years, as it has happened in India, Through this niche NAM aims to give the investor exposure to this resourceful country through an actively managed small caps portfolio that offers absolute low valuations and a huge discount versus the Indonesia big caps,

13

Korea Reunification

A free option on an already attractive market


Korea Reunification breakdown

Asian Niches Fund

Korea Reunification

Niche

Banks 1,6% 31,9%

Insurance 0,4% 8,0%

Constructions 0,8% 15,9%

Consumer Goods 0,4% 8,0%

Telecom 1,8% 36,2%

Cash 0.0% 0.0%

Total 5.0% 100.0%

Source: Niche AM

Valuation Snapshot



14

Korea Reunification

A free option on an already attractive market



Source: Niche AM

Niche description

South Korea is the ideal market to play through a value approach, as it is cheap, and its economy is growing healthy, Beside this, it has a terrific catalyst, this being a reunification or some form of rapprochement, with its half (North Korea), This event could be able to increase the long-term growth potential of the country and to free the market animal spirits, The Korea reunification is a way to add a free option to an already attractive market, The niche aims to give the investor an exposure to the main beneficiaries of the reunification or of a rapprochement between the South and the North Korea,

The Niche Korea Reunification drifted lower by just 5,8%, turning out being one of the best Niches in the period. While financials were weak (Hana Financial -10,3%, KB -7,4%, Samsung Life -7%), telecom, pharma and food retailers were resilient. While the reunification theme looks distant in the Covid 19 age, the valuations of the area has never been so attractive. South Korea managed to limit the epidemic without a hard lockdown and used its low public debt to help an economy strained by the significative slowdown in international trade and internal consumption.

15

Close the Gap

As simple as that …


Close the Gap breakdown

Asian Niches

Fund Close the Gap Niche

Preferred shares 2,8% 55,4%

Holding companies 1,3% 25,9%

Cash 0,9% 18,6%

Total 5.0% 100.0%

Source: Niche AM

Valuation Snapshot


Geographical breakdown

ESG rating (Thomson Reuters)


16

Close the Gap

As simple as that …



Source: Niche AM

In March and April, the Niche was down by 7,8%. Renault stub (excluding the stakes in Nissan and Daimler) went back to positive due to the cash drained by the crisis. However, its valuation is well below the EBITDA Renault stand alone 2019. First pacific (-26%) discount went above 70% of its SOP and the discount of LG Electronics pref vs the ordinary increased above 60%. On the other hand, Seronics cushioned the fall of its affiliated L&F, decreasing the discount from 75% to 67%.

Niche description

There are some classes of shares, like saving/preferred, or some companies’ structures, like holdings or conglomerates, that can present huge discounts versus ordinary shares or the sum of the controlled companies, These discounts tend to close over time, Shares conversions, M&A, spin-offs, changes in dividend policies are normally the catalysts, The niche aims to give investors an exposure to these shares’ classes or companies structures,

17

Neglected Luxury

Overlooked rarity


Neglected Luxury breakdown

Asian Niches Fund

Neglected Luxury Niche

Champagne & Wines 1,7% 33,8%

Motors 1,7% 33,5%

Watches 0,3% 6,4%

High-End Furniture 0,6% 12,9%

Iconic Hotels 0,5% 10,7%

Cash 0,1% 2,6%

Total 5.0% 100.0%

Source: Niche AM

Valuation Snapshot



Source: Niche AM


Champagne & Wines34%

Motors33%

Watches6%

High-End Furniture13%

Iconic Hotel11%

Cash3%

18

Neglected Luxury

Overlooked rarity



Source: Niche AM

The performance of the Niche was deeply negative (-21,4%). Carnival was again the worst performer (-55%) having stopped the business for an illimited time and launch a cash call. We increased our holding in the company. Carnival is the most solid and resilient company in the sector. The longer the pandemic drags out, the stronger the company will become in a strained sector. Knoll retraced by 33%, anticipating a long crisis in luxury furnishing. The company lost 2/3 of its value in just few weeks, going back to the 2008. It did this despite the last 10 years the company has almost doubled the revenues and the ebit. The company sells iconic pieces that can be found in the museum worldwide and trades at 0,6x EV/sales vs 4x EV/sales of the luxury sector. Automakers like Porsche, Daimler, BMW and Harley Davidson were down double digit. Swatch went to trade at 20% discount on the TBV, despite its collection of luxury brands and its leading positioning in quartz movements. We increased Knoll and the champagne houses that trade at a fraction of their TBV.

Niche description The luxury sector has been one of the winners of the last 2 decades, Globalisation, growing inequality, emerging markets and westernisation have been at the root of its growth, Luxury means not just quality, but also exclusivity and recognisability, Selling prices or supply constraints determine and warrant the rarity effect that encompass the concept of luxury, Although the market generously prices these luxury stocks, it sometimes does not recognise some companies as belonging to the luxury sector, There could be many reasons for this: low profitability; being part of a conglomerate; short term imbalance between supply and demand; corporate governance issues, etc, The niche aims to give the patient investor the opportunity to gain exposure to these unique stock at valuations that are extremely attractive,

19

Orphan Companies

Thinking outside the box


Orphan Companies breakdown

Asian Niches Fund

Orphan Companies

Niche

Funerary Services 0,7% 13,8%

Logistic Services 0,5% 9,8%

Industrials 1,1% 22,6%

Utility Services 0,8% 16,8%

Electric Infrastructure 1,2% 23,1%

Central Banking 0,4% 7,1%

Cash 0,3% 6,8%

Total 5,0% 100,0%

Source: Niche AM

Valuation Snapshot



n.a.

Source: Niche AM

Europe8%

Japan92%

20

Orphan Companies

Thinking outside the box



Source: Niche AM

The Niche moved down by 2.7% in the period, demonstrating its defensive nature. Their huge net cash position, their stable businesses, and the valuations well below their TBV cushioned the Orphan Companies during this dreadful bimester. Heian (funerals) was positive together with Sanyo Engineering (electrical plants maintenance), Asahi Broadcasting (content producer) and Hitachi Zosen (green energy).

Niche description Brokers coverage is essential when attracting investors interest, improving liquidity and valuations, However, there are many companies in Asia that don’t have any coverage or are covered just by one local broker, we call them “orphan companies”, Reason being coverage can be expensive, time demanding, brokers have cut the number of analysts and now focus on fewer companies, etc, As the result the uncovered or under-covered companies trade a huge discount versus their peers, Normally this undue discount will be closed by the restart of the broker coverage or by corporate action, Those are deep value opportunities; however, investor has to be patient to reap the reward, The niche aims to give investors an exposure to deeply undervalued orphan companies,

21

Steel and Plastic Substitution

Anticipating a trend


Steel and Plastic Substitution breakdown

Asian Niches Fund

Steel and Plastic

Substitution Niche

Carbon Fibre and fibre glass 1,5% 30,0%

Aluminium 0,8% 15,1%

Wood (Timber. CLT. Glulam) 1,8% 35,2%

Steel Recycling 0,8% 15,7%

Cash 0,2% 4,1%

Total 5.0% 100.0%

Source: Niche AM

Valuation Snapshot


Source: Niche AM


Carbon Fibre and fibre glass

30%

Aluminium

15%

Wood (Timber,

CLT, Glulam)

35%

Steel Recycling

16%

Cash4%

22

Steel and Plastic Substitution

Anticipating a trend



Source: Niche AM

The Niche was down by 10,8% in the two-months period. Aluminium was the worst sector with Alcoa falling by 40% and Norsk Hydro

by 9%. Wood and paper were also weak, affected by the US residential market. Interfor, wood mills, was down -33% and

Weyerhaeuser, the biggest worldwide owner of forestry, down by 14%. Decently performed the stocks exposed to steel recycling with

Fluor up by 18%, Showa Denko by 3% and Graftech unchanged.

Niche description Our infrastructures, our vehicles and our many devices are made partially of iron and its derivatives, Although materials such as aluminium have partially replaced it in some applications, it still plays a dominant role in our system, Its physical properties, the abundance of iron ores and its labour-intensive characteristic have kept its leadership solid and unchallenged, Up to a point thought, Other materials are emerging with better qualities in terms of safety, resistance, weight and sustainability, As their prices will go down, steel will be gradually substituted and many of its mines and producing assets will go stranded, At the same time the world needs to reduce the use of plastic that is highly toxic for the planet, There is a growing consensus around this issue that will lead to a small revolution in the materials we use in our society, The Niche aims to provide the investors with the opportunity to gain exposure to the growing and positive trend of innovative and ecological materials,

23

Bond Portfolio

# securities: 21 Average Yield to Maturity 8.3% Duration 2.2

Monthly Comment

During March and April, the bond portfolio lost 6.8%: anxieties about the consequences of lockdowns on corporate profits led to a harsh

reprising corporate bonds. Unrated and HY bonds underperformed. This took place despite the massive support of the Central Banks:

Fed has launched an unlimited government and corporate bonds purchases program; ECB has renewed its quantitative easing plan and

reduced collateral requirements to include high yield bonds.

Among worst performers bonds in the portfolio during the period SGL Carbon 2024 and Europcar 2024. SGL Carbon is a leading producer

of graphite and composite materials used in the automotive, aerospace and several other industries, whose main shareholders are

Susanne Klatten (29%), BMW (18%) and Volkswagen (7%), providing a strong support. Europcar, a leading car rental company, is under

pressure due to the relevant travel restriction in place (Hertz near to Chapter 11). The business model of Europcar shields the company

from any dramatic variations in used car price (as is happening now). We added three new bond in the portfolio: Daimler, whose balance

sheet would remain rock solid even in a ultra-negative and prolonged macro environment; Thyssenkrupp, a turnaround story with a

relevant cash firepower thanks to the disposal of its elevator division; a supranational bond in IDR, to take advantage of the significative

sell-off in the Indonesian currency.

Bond Portfolio breakdown

Bond allocation

Currency Breakdown Rating Breakdown

Bond 21%

Cash 9%Bond Portfolio 30%

Government or Supranational Bonds

6%

Senior79%

Subordinated12%

Convertible3%

Corporate Bonds 94%

USD 8%

EUR88%

IDR4%

Investment Grade16%

Non-Investment

Grade62%

Not rated22%

24

# securities: 2 Average Yield to Maturity 5.8% Duration 0.4

Cash management breakdown

Source: Niche AM

Equity

Bond

Corporate

Cash

Bond Portfolio Duration

Bond Geographical Breakdown Corporate Bond - Sector Breakdown

Cash Management

48%

24%19%

10%

0%

10%

20%

30%

40%

50%

1 - 2 2 - 3 3 - 4 4 - 5

Duration (# anni)

Euro Area84%

Turkey7%

Argentina1%Indonesia

USA4%

Telecom4%

Industrials54%Services

18%

Financials24%

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DISCLAIMER

This document, any presentation made in conjunction herewith and any accompanying materials are preliminary and for information only, They are not an offering memorandum, do not contain any representations and do not constitute or form part of an offer or invitation to subscribe for any of Niche's funds (each, the ”Fund”), Further they do not constitute or form part of any solicitation of any such offer or invitation, nor do they (or any part of them) or the fact of their distribution, form the basis of, or can they be relied on, in connection with any contract therefor, The information contained in this report has been compiled exclusively by Niche Asset Management Ltd which is authorised and regulated by the Financial Conduct Authority (RN783048) and is registered in England & Wales 10805355, The information and views contained in this document are not intended to be complete and may be subject to change at any time, No representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information or views in this document and no liability for the accuracy and completeness of information is accepted by Niche Asset Management Ltd and/or its partners, The investment strategy of the Fund is speculative and involves a substantial degree of risk of losing some or all of the capital invested, Market, political, counterparty, liquidity and other risk factors may have a significant impact on the investment objectives of the Fund, while past performance is not a guide or otherwise indicative of future results, The distribution of this document and the offering of the Fund's shares in certain jurisdictions may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe any such restrictions, The Fund is not yet available for distribution in all countries, it will be only subject to registration with the local supervisory Authority, Potential investors are invited to contact Niche Asset Management Ltd, in order to check registration countries, Any failure to comply with these restrictions could result in a violation of the laws of such jurisdiction, Any reproduction of this information, in whole or in part, without the prior consent of Niche Asset Management Ltd is also prohibited, This document may only be communicated or passed to persons to whom Niche Asset Management Ltd is permitted to communicate financial promotions pursuant to an exemption available in Chapter 4,12 of the Financial Conduct Authority’s Conduct of Business Sourcebook (“COBS”) (“Permitted Recipients”), In addition, no person who is not an authorised person may communicate this document or otherwise promote the Fund or shares therein to any person it the United Kingdom unless such person is both (a) a Permitted Recipient and (b) a person to whom an authorised person is permitted to communicate financial promotions relating to the Fund or otherwise promote the Fund under the rules in COBS 4,12 applicable to such authorised person, The securities referenced in this document have not been registered under the Securities Act of 1933 (the “1933 Act”) or any other securities laws of any other US jurisdiction, Such securities may not be sold or transferred to US persons unless such sale or transfer is registered under the 1933 Act or exemption from such registration, This document is intended for professional investors only, Potential investors are recommended to read carefully the Prospectus and the Key Investor Information Document (KIID) before subscribing,

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