ANIMA Funds Plc

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Annual Report and Audited Financial Statements

For the financial year ended 31 December 2020

ANIMA Funds Plc

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503 505 509 516 519 527 533 544 550 558 568 578 588 596 598 600 604 610 619 622 624 626 628 630 631 639 643 651 653 659 664 666 668 671 673 674 676 681

ANIMA Funds Plc

Contents Page

4 5 8 12 47 47B

48 67 86 105 124 Organisation

Background to the Company Directors’ Report

Manager’s Report (unaudited)

Report of the Depositary to the Shareholders Independent Auditors Report

Statement of Comprehensive Income Statement of Financial Position

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares Statement of Cash Flows

Notes to the Financial Statements Schedule of Investments

ANIMA Liquidity ANIMA Short Term Bond ANIMA Medium Term Bond ANIMA Bond Dollar ANIMA Global Bond

ANIMA Short Term Corporate Bond ANIMA Europe Equity

ANIMA U.S. Equity ANIMA Asia/Pacific Equity ANIMA Global Equity Value ANIMA Emerging Markets Equity ANIMA Global Selection

ANIMA Euro Equity ANIMA Global Currencies ANIMA Variable Rate Bond ANIMA Hybrid Bond

ANIMA Euro Government Bond ANIMA Star High Potential Europe ANIMA Star Bond

ANIMA Smart Volatility Europe ANIMA Smart Volatility Global ANIMA Smart Volatility Italy ANIMA Smart Volatility USA

ANIMA Smart Volatility Emerging Markets ANIMA Credit Opportunities

ANIMA Star High Potential Italy ANIMA Trading Fund

ANIMA Active Selection ANIMA Smart Dividends Europe ANIMA Flexible Bond

ANIMA Solution 2022-I ANIMA Solution 2022-II ANIMA Solution 2022-III ANIMA Solution 2023-I ANIMA Solution EM ANIMA Italian Bond ANIMA Italian Equity ANIMA High Yield Bond

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Schedule of Investments (continued)

ANIMA Bond 2022 Opportunities 688

ANIMA Global Macro 693

ANIMA Brightview 2023-I 698

ANIMA Brightview 2023-II 703

ANIMA Brightview 2023-III 705

ANIMA Brightview 2023-IV 707

ANIMA Brightview 2024-V 717

ANIMA Brightview-II 723

ANIMA Brightview-III 725

ANIMA Brightview-IV 727

ANIMA Brightview-V 729

ANIMA Brightview-VI 731

ANIMA Brightview-VII 733

ANIMA Brightview-VIII 735

ANIMA Orizzonte Europa 2022 737

ANIMA Orizzonte Europa 2023 - Rendimento Bilanciato 739

ANIMA Orizzonte Sostenibile 2023 741

ANIMA Orizzonte Benessere 2023 743

ANIMA Orizzonte Consumi 2023 745

ANIMA Orizzonte Energia 2023 747

ANIMA Defensive 749

ANIMA Zephyr Global 750

ANIMA Zephyr Global Allocation 752

ANIMA Zephyr New 754

ANIMA Zephyr Real Assets 757

ANIMA International Bond 760

Schedule of Material Portfolio Changes (unaudited)

ANIMA Liquidity 764

ANIMA Short Term Bond 766

ANIMA Medium Term Bond 768

ANIMA Bond Dollar 770

ANIMA Global Bond 772

ANIMA Life Bond 774

ANIMA Short Term Corporate Bond 775

ANIMA Europe Equity 776

ANIMA U.S. Equity 777

ANIMA Asia/Pacific Equity 779

ANIMA Global Equity Value 780

ANIMA Emerging Markets Equity 781

ANIMA Global Selection 782

ANIMA Euro Equity 783

ANIMA Global Currencies 785

ANIMA Variable Rate Bond 786

ANIMA Hybrid Bond 787

ANIMA Euro Government Bond 789

ANIMA Star High Potential Europe 791

ANIMA Star Bond 792

ANIMA Smart Volatility Europe 793

ANIMA Smart Volatility Global 794

ANIMA Funds Plc

Contents (continued) Page

2

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Schedule of Material Portfolio Changes (unaudited) (continued)

ANIMA Smart Volatility Italy 795

ANIMA Smart Volatility USA 796

ANIMA Credit Opportunities 798

ANIMA Star High Potential Italy 799

ANIMA Trading Fund 800

ANIMA Active Selection 801

ANIMA Smart Dividends Europe 802

ANIMA Flexible Bond 803

ANIMA Flexible Income 804

ANIMA Infrastructure 805

ANIMA Solution 2022-I 806

ANIMA Solution 2022-II 807

ANIMA Solution 2022-III 808

ANIMA Solution 2023-I 809

ANIMA Solution EM 810

ANIMA Italian Bond 811

ANIMA Italian Equity 812

ANIMA High Yield Bond 814

ANIMA Bond 2022 Opportunities 816

ANIMA Global Macro 818

ANIMA Brightview 2024-V 828

ANIMA Brightview-II 831

ANIMA Brightview-III 832

ANIMA Brightview-IV 833

ANIMA Brightview-V* 834

ANIMA Brightview-VI* 835

ANIMA Brightview-VII* 836

ANIMA Brightview-VIII** 837

ANIMA Orizzonte Europa 2022 838

ANIMA Orizzonte Europa 2023 - Rendimento Bilanciato 839

ANIMA Orizzonte Sostenibile 2023 840

ANIMA Orizzonte Benessere 2023 841

ANIMA Orizzonte Consumi 2023 842

ANIMA Orizzonte Energia 2023 843

ANIMA Defensive 844

ANIMA Zephyr Global 845

ANIMA Zephyr Global Allocation 846

ANIMA Zephyr New* 847

ANIMA Zephyr Real Assets 848

ANIMA International Bond 849

Appendix I – UCITS V Directive Annual Report Disclosures (Unaudited) 850

Appendix II – Securities Financing Transactions Regulations (Unaudited) 875

ANIMA Funds Plc

Contents (continued) Page

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Registered Office of the Company 78 Sir John Rogerson’s Quay Dublin 2

Ireland

Manager, Promoter and Distributor ANIMA SGR S.p.A.

Corso Garibaldi, 99 20121 Milan (MI) Italy

Administrator, Registrar and Transfer Agent State Street Fund Services (Ireland) Limited 78 Sir John Rogerson’s Quay

Dublin 2 Ireland

Independent Auditors Deloitte Ireland LLP

Chartered Accountants and Statutory Audit Firm Deloitte & Touche House

29 Earlsfort Terrace Dublin 2

Ireland

Legal Advisor to the Company Dillon Eustace

33 Sir John Rogerson’s Quay Dublin 2

Ireland

Registered No: 308009

Directors of the Company Andrew Bates, Chairman (Irish)

Rory Mason* (Irish)

Pierluigi Giverso (Italian)

Davide Sosio (Italian)

Agostino Ricucci (Italian, Irish resident) Depositary

State Street Custodial Services (Ireland) Limited 78 Sir John Rogerson’s Quay

Dublin 2 Ireland

Secretary to the Company Tudor Trust Limited

33 Sir John Rogerson’s Quay Dublin 2

Ireland

* Independent Director

ANIMA Funds Plc

Organisation

ANIMA Funds Plc 4

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Description

ANIMA Funds Plc (the⬙Company”) is an open ended umbrella investment company with variable capital and segregated liability between sub-funds (each a “Fund”, collectively the “Funds”) incorporated with limited liability in Ireland under the Companies Act, 2014 with registration number 308009 and authorised under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) (the “UCITS Regulations”) and subject to the Central Bank (Supervision & Enforcement) Act 2013 (Section 48(1) (Undertakings for Collective Investment in Transferable Securities)) Regulations 2019 (the “Central Bank UCITS Regulations”).

The Company is structured as an umbrella investment company in that different Funds may be established with the prior approval of the Central Bank. In addition, each Fund may issue more than one Share Class. The Shares of each class issued by a Fund will rank pari passu with each other in all respects except as to all or any of the following:

- currency of denomination of the class;

- hedging strategies;

- dividend policy;

- the level of fees and expenses to be charged; and

- the minimum subscription and minimum holding applicable.

The assets of each Fund will be separate from one another and will be invested in accordance with the investment objectives and policies applicable to each such Fund.

The Funds in existence during the financial year were as follows:

ANIMA Liquidity ANIMA Short Term Bond ANIMA Medium Term Bond ANIMA Bond Dollar ANIMA Global Bond ANIMA Life Bond*

ANIMA U.S. Equity ANIMA Asia/Pacific Equity ANIMA Global Equity Value ANIMA Emerging Markets Equity ANIMA Global Selection*

ANIMA Euro Government Bond ANIMA Star High Potential Europe ANIMA Star Bond

ANIMA Smart Volatility Europe ANIMA Smart Volatility Global ANIMA Smart Volatility Italy ANIMA Smart Volatility USA

ANIMA Smart Volatility Emerging Markets ANIMA Credit Opportunities

ANIMA Star High Potential Italy ANIMA Trading Fund

ANIMA Active Selection ANIMA Smart Dividends Europe ANIMA Flexible Bond

ANIMA Flexible Income*

ANIMA Infrastructure*

ANIMA Solution 2022-I ANIMA Solution 2022-II ANIMA Solution 2022-III ANIMA Solution 2023-I

ANIMA Solution EM ANIMA Italian Bond ANIMA Italian Equity ANIMA High Yield Bond

ANIMA Bond 2022 Opportunities ANIMA Global Macro

ANIMA Brightview 2023-I ANIMA Brightview 2023-II ANIMA Brightview 2023-III ANIMA Brightview 2023-IV ANIMA Brightview 2024-I ANIMA Brightview 2024-II ANIMA Brightview 2024-III ANIMA Brightview 2024-IV ANIMA Brightview 2024-V ANIMA Brightview 2025-I ANIMA Brightview 2027-I ANIMA Brightview-II ANIMA Brightview-III ANIMA Brightview-IV ANIMA Brightview-V*

ANIMA Brightview-VI*

ANIMA Brightview-VII*

ANIMA Brightview-VIII*

ANIMA Orizzonte Europa 2022

ANIMA Orizzonte Europa 2023 - Rendimento Bilanciato ANIMA Orizzonte Sostenibile 2023

ANIMA Orizzonte Benessere 2023 ANIMA Orizzonte Consumi 2023 ANIMA Orizzonte Energia 2023 ANIMA Defensive

ANIMA Zephyr Global

ANIMA Zephyr Global Allocation ANIMA Zephyr New*

ANIMA Zephyr Real Assets ANIMA International Bond

* Please refer to note 22 to the financial statements for details of Fund launches and Fund terminations during the financial year.

ANIMA Funds Plc

Background to the Company

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Categories of Funds

The Funds are detailed below under three headings as per the Prospectus: Markets Funds, Strategies Funds and Solution Funds.

• Markets Funds: means a traditional bond or equity type Fund, which seeks to achieve its objective through investment in transferable securities and financial derivative instruments.

• Strategies Funds: means a Fund the policy of which has been formulated with a view to following a particular trading or investment strategy.

• Solution Funds: means a Fund, the policy of which has been formulated with a view to providing investment solutions over a specific timeframe.

Markets Funds ANIMA Liquidity ANIMA Short Term Bond ANIMA Medium Term Bond ANIMA Bond Dollar ANIMA Global Bond ANIMA Life Bond*

ANIMA U.S. Equity ANIMA Asia/Pacific Equity ANIMA Global Equity Value

ANIMA Emerging Markets Equity ANIMA Global Selection*

ANIMA Euro Government Bond ANIMA Italian Bond

ANIMA Italian Equity ANIMA High Yield Bond ANIMA International Bond

Solution Funds

ANIMA Solution 2022-I ANIMA Solution 2022-II ANIMA Solution 2022-III ANIMA Solution 2023-I

ANIMA Bond 2022 Opportunities ANIMA Brightview 2023-I ANIMA Brightview 2023-II ANIMA Brightview 2023-III ANIMA Brightview 2023-IV ANIMA Brightview 2024-I ANIMA Brightview 2024-II ANIMA Brightview 2024-III ANIMA Brightview 2024-IV ANIMA Brightview 2024-V ANIMA Brightview 2025-I ANIMA Brightview 2027-I

ANIMA Brightview-II ANIMA Brightview-III ANIMA Brightview-IV ANIMA Brightview-V*

ANIMA Brightview-VI*

ANIMA Brightview-VII*

ANIMA Brightview VIII*

ANIMA Orizzonte Europa 2022 ANIMA Orizzonte Europa 2023 - Rendimento Bilanciato

ANIMA Orizzonte Sostenibile 2023

ANIMA Orizzonte Benessere 2023

ANIMA Orizzonte Consumi 2023 ANIMA Orizzonte Energia 2023

Strategies Funds

ANIMA Star High Potential Europe ANIMA Star Bond

ANIMA Smart Volatility Emerging Markets ANIMA Smart Volatility Europe

ANIMA Smart Volatility Global ANIMA Smart Volatility Italy ANIMA Smart Volatility USA ANIMA Credit Opportunities ANIMA Star High Potential Italy ANIMA Trading Fund

ANIMA Active Selection

ANIMA Smart Dividends Europe ANIMA Flexible Bond

ANIMA Flexible Income*

ANIMA Infrastructure*

ANIMA Solution EM ANIMA Global Macro ANIMA Defensive ANIMA Zephyr Global

ANIMA Zephyr Global Allocation ANIMA Zephyr New*

ANIMA Zephyr Real Assets

* Please refer to note 22 to the financial statements for details of Fund launches and Fund terminations during the financial year.

ANIMA Funds Plc

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ANIMA Funds Plc 6

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Segregated Liability

The Company is structured as an open-ended umbrella investment company with segregated liability between its Funds. While the provisions of the Companies Act, 2014, as amended provide for segregated liability between Funds, these provisions have not been tested in foreign courts, in particular in satisfying local creditors’ claims. Accordingly it is not free from doubt that the assets of any Fund of the Company may not be exposed to the liabilities of other Funds.

Investment Objectives

Please refer to the Prospectus for each Fund’s investment objectives and policies.

Manager

The Company has appointed ANIMA SGR S.p.A. as manager of the Company (the⬙Manager⬙) pursuant to the Management Agreement. Under the terms of the Management Agreement the Manager is responsible, subject to the overall supervision and control of the Directors, for the management, investment management and administration of the Company’s affairs, and the distribution of Shares.

ANIMA SGR S.p.A. is regulated as a funds management company by Bank of Italy and is a 100% direct subsidiary of ANIMA Holding S.p.A.. Ordinary shares of ANIMA Holding S.p.A. are listed on the MTA (Mercato Telematico Azionario) of the Italian Stock Exchange.

Net Asset Value

The Net Asset Value of a Fund is determined by valuing the assets of each relevant Fund (including income accrued but not collected) and deducting the liabilities of each relevant Fund (including a provision for duties and charges, accrued expenses and fees and other liabilities). The Net Asset Value of a class is determined by calculating that portion of the Net Asset Value of the relevant Fund attributable to the relevant class subject to adjustment to take account of assets and/or liabilities attributable to the Class. The Net Asset Value of a Fund is expressed in the base currency of the Fund. The base currency of each Fund may vary as a result of the primary economic environment in which it operates.

The Net Asset Value per Share is calculated by dividing the Net Asset Value of the relevant Fund or Class by the total number of Shares in issue in the Fund or Class at the relevant Valuation Point rounded to four decimal places.

Issue and Redemption of Shares Issue of Shares

Applications for Shares should be made to the Administrator or to the Distributor for onward transmission to the Administrator.

Applications received by the Administrator or by the Distributor prior to the Dealing Deadline for any Dealing Day are dealt with on that Dealing Day. Any applications received after the Dealing Deadline will be dealt with on the following Dealing Day unless the Directors in their absolute discretion determine otherwise provided that the application is received before the Valuation Point.

Minimum Subscription amounts are disclosed in the Fund or Class Information Card in the Prospectus.

Redemption of Shares

Applications for the redemption of Shares are made to the Administrator or to the Distributor for onward transmission to the Administrator. Requests for redemptions received prior to the Dealing Deadline for any Dealing Day are dealt with on that Dealing Day. Any requests for redemptions received after the Dealing Deadline for a Dealing Day will be dealt with on the next Dealing Day unless the Directors in their absolute discretion determine otherwise provided that the application is received before the Valuation Point. Redemption requests will only be accepted where cleared Funds and completed documents are in place for original subscriptions. There is no minimum redemption transaction size for any Class of Share in any Fund. Shareholders should note that if a redemption request would, if processed, leave the Shareholder holding Shares having a Net Asset Value of less than the Minimum Holding, the Directors may, in their discretion, redeem the whole of the Shareholder’s holding. The redemption price per Share shall be the Net Asset Value per Share less applicable duties and charges.

Published Information

The Net Asset Value per Share is made available at the registered office of the Administrator during normal business hours and at the following website www.animafunds.ie not later than the third Business Day following the relevant Valuation Point. The Prospectus also allows for publication in such other places as may be determined by the Directors from time to time. The Directors of the Company have approved the daily publication of the Net Asset Value per Share in “Il Sole-24 Ore” (Italian daily newspaper).

ANIMA Funds Plc

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The Directors submit their report together with the audited financial statements of the Company for the financial year ended 31 December 2020.

Statement of Directors’ Responsibilities

The Directors are responsible for preparing the Directors’ report and the financial statements in accordance with Irish law. Irish law requires the Directors to prepare financial statements for each financial year that gives a true and fair view of the Company’s assets, liabilities and financial position as at the end of the financial year and of the profit or loss of the Company for the financial year. Under that law the Directors have prepared the financial statements in accordance with International Financial Reporting Standards and Irish law.

Under Irish law, the Directors shall not approve the financial statements unless they are satisfied that they give a true and fair view of the Company’s assets, liabilities and financial position as at the end of the financial year and the profit or loss of the Company for the financial year.

In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether the financial statements have been prepared in accordance with applicable accounting standards and identify the standards in question, subject to any material departures from those standards being disclosed and explained in the notes to the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping proper books of account that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2014, as amended.

The Directors confirm that they believe that they have complied with the above requirements in preparing the financial statements.

The Directors are responsible for the maintenance and integrity of the corporate and financial information relating to the Company which may be included on the Manager’s website. Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In carrying out the above requirements the Company has appointed ANIMA SGR S.p.A. as Manager of the Company (the

“Manager”) and the Manager has appointed State Street Fund Services (Ireland) Limited to act as administrator (the

“Administrator”) of the Company.

The Directors are also responsible for safeguarding the assets of the Company. In this regard they have appointed State Street Custodial Services (Ireland) Limited (the “Depositary”) as depositary to the Company pursuant to the terms of a depositary agreement. The Directors have a responsibility for taking such steps as are reasonably open to them to prevent and detect fraud and other irregularities. The Directors believe that they have complied with the requirements of the Companies Act, 2014, as amended, with regard to accounting records by employing an experienced administrator with appropriate expertise and by providing adequate resources to the financial function. The accounting records of the Company are maintained by the Administrator at 78 Sir John Rogerson’s Quay, Dublin 2, Ireland.

Compliance statement

The Directors acknowledge that they are responsible for securing compliance by the Company with its Relevant Obligations as defined with the Companies Act 2014 (the “Relevant Obligations”). The Directors confirm that they have drawn up and adopted a compliance policy statement setting out the Company’s policies that, in the Directors’ opinion, are appropriate to the Company in respect of its compliance with its Relevant Obligations.

The Directors further confirm the Company has put into place appropriate arrangements or structures that are, in the Directors’

opinion, designed to secure material compliance with its Relevant Obligations and that measures have been taken throughout the financial year to which this Report relates to meet and satisfy the Company’s compliance with the Relevant Obligations.

Relevant audit information

The Directors have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to ensure that the Company’s Statutory Auditors are aware of this information.

Audit Committee

The Company has not established a separate Audit Committee as the Directors operate as a unitary Board whilst considering such related matters. The Directors believe that the Company’s straightforward structure together with the delegation of responsibilities to the Manager does not warrant such a function. This is reviewed by the Board annually.

ANIMA Funds Plc

Directors’ Report

ANIMA Funds Plc 8

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Transactions with Connected Persons

Regulation 43(1) of the Central Bank UCITS Regulations “Restrictions of transactions with connected persons” states that “A responsible person shall ensure that any transaction between a UCITS and a connected person is conducted a) at arm’s length;

and b) in the best interest of the unit-holders of the UCITS”.

As required under Central Bank UCITS Regulation 81.(4), the Directors, as responsible persons, are satisfied that there are arrangements in place, evidenced by written procedures, to ensure that the obligations that are prescribed by Regulation 43(1) are applied to all transactions with a connected person; and all transactions with connected persons that were entered into during the period to which the report relates complied with the obligations that are prescribed by Regulation 43(1).

Employees

There were no persons employed by the Company during the financial year.

Review of performance of the business, principal activities and future developments of the business

A detailed performance review of the business, the Funds’ principal activities and future developments is included in the Manager’s Report for each Fund.

Principal risks and uncertainties

Under Companies Act 2014, as amended, the Company is required to give a description of the principal risks and uncertainties which it faces. Investment in the Company carries with it a degree of risk, including, but not limited to, the risks referred to below and in Notes 2 and 3 of these Financial Statements. Information about the financial risk management objectives and policies of the Company is also discussed in Notes 2 and 3.

The principal risks and uncertainties facing the Company include Market risk, Credit risk and Liquidity risk. These risks should not be regarded as a complete and comprehensive statement of all potential risks and uncertainties. The Prospectus issued by the Company discloses a variety of other risks and uncertainties which investors should consider before investing. Other risks may arise of which the Board is not aware or which it deems immaterial.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: currency risk, interest rate risk and other price risk. Market risks are referred to in Note 3 of these Financial Statements.

Credit risk is the risk that the issuer or the counterparty of a financial instrument will be unable to pay amounts in full when they fall due. Credit risk comprises two types of risks: issuer risk and counterparty risk.

All securities, cash at bank balances are held by the Depositary, State Street Custodial Services (Ireland) Limited. Bankruptcy or insolvency of the Depositary, State Street Custodial Services (Ireland) Limited, may cause the Company’s rights with respect to cash and securities held by these entities to be delayed or limited and the Company would be treated as a general creditor of that entity in respect of its cash balances. Periodic monitoring and an annual review are performed on the Depositary by an outsourcing monitoring team of the Manager. This review may include as appropriate an assessment of the Depositary’s liquidity position, income streams, asset quality and credit ratings. Credit risk is referred to in Note 3 of these Financial Statements.

Liquidity risk is the risk that the Funds will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets. Delivery obligation may arise from: account payable (i.e.management fees, depositary fees, etc.), financial derivative instruments, cash redemptions of redeemable participating shares. Liquidity risks are referred to in Note 3 of these Financial Statements.

COVID-19

Beginning in January 2020, global financial markets have experienced significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects of COVID-19 has adversely affected the economies of the entire world.

Going Concern

The Directors have made an assessment of the Company and its sub-funds’ ability to continue as a going concern and are satisfied that the Company and its sub-funds’ will continue in business for the foreseeable future. Notwithstanding the challenging global financial environment, the management is not aware of any material uncertainties that may cast doubt upon the Company and its sub-funds’ ability to continue as a going concern. Therefore the financial statements continue to be prepared on a going concern basis. The Directors consider that the financial statements taken as a whole are fair, balanced and understandable.

Accordingly, having assessed its principal risks, the Directors of the Company believe that the Company is well placed to manage its risks successfully and it is thus appropriate to prepare the financial statements on a going concern basis. The Company does not have a fixed life. The Directors of the Company consider that the financial statements taken as a whole are fair, balanced and understandable and they provide the information necessary for the shareholder to assess the Company’s position, performance, business model and strategy.

ANIMA Funds Plc

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Going Concern (continued)

The Directors of the Company do not believe that there is any material uncertainty that casts any doubts on the Company’s ability to continue as a going concern.

Results and distributions

The results and distributions for the financial year are set out in the Statement of Comprehensive Income for each Fund.

Distribution Policy

The Articles of Association of the Company empower the Directors to declare dividends in respect of any Shares in the following Funds out of the net income, realised gains or capital standing to the credit account of the Fund:

ANIMA Life Bond

ANIMA Variable Rate Bond ANIMA Credit Opportunities ANIMA Star Bond

ANIMA Active Selection ANIMA Smart Dividends Europe ANIMA Flexible Income

ANIMA Flexible Bond ANIMA Solution 2022-I ANIMA Solution 2022-II ANIMA Solution 2022-III ANIMA Solution 2023-I ANIMA Solution EM

ANIMA Bond 2022 Opportunities ANIMA Global Macro

ANIMA Brightview 2023-I ANIMA Brightview 2023-II ANIMA Brightview 2023-III ANIMA Brightview 2023-IV ANIMA Brightview 2024-I ANIMA Brightview 2024-II ANIMA Brightview 2024-III

ANIMA Brightview 2024-IV ANIMA Brightview 2024-V ANIMA Brightview 2025-I ANIMA Brightview 2027-I ANIMA Brightview-II ANIMA Brightview-III ANIMA Brightview-IV ANIMA Brightview-V ANIMA Brightview-VI ANIMA Brightview-VII

ANIMA Orizzonte Europa 2022

ANIMA Orizzonte Europa 2023 - Rendimento Bilanciato ANIMA Orizzonte Sostenibile 2023

ANIMA Orizzonte Benessere 2023 ANIMA Orizzonte Consumi 2023 ANIMA Orizzonte Energia 2023 ANIMA Zephyr Global

ANIMA Zephyr Global Allocation ANIMA Zephyr Real Assets ANIMA Zephyr New

The above details are in summary form only and must be read in conjunction with the detailed information contained within the Prospectus of the Funds.

Significant events during the financial year

Significant events during the financial year are disclosed in Note 22 to the financial statements.

Significant events after the financial year end

Significant events after the financial year end are disclosed in Note 23 of the financial statements.

Corporate Governance Code

The Irish Funds association (“IF”) in association with the Central Bank has published a corporate governance code (the “IF Code”) that may be adopted on a voluntary basis by Irish authorised collective investment schemes. The Company adheres to the IF Code.

Directors

The name and nationality of persons who were Directors at any time during the financial year ended 31 December 2020 are set out below. All Directors are non-executive directors.

Andrew Bates, Chairman (Irish)

Rory Mason (Irish - Independent Director) Pierluigi Giverso (Italian)

Davide Sosio (Italian)

Agostino Ricucci (Italian, Irish resident) Directors’ and Secretary’s interests

None of the Directors or the Company Secretary hold or held any beneficial interest in the shares of the Company during the financial year.

Other than as disclosed in Note 17, no Directors had at any time during the financial year or at the financial year end, a material interest in any contract of significance, in relation to the business of the Company.

ANIMA Funds Plc

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Financial markets

2020 was a year effected predominately by the Covid-19 pandemic even if it started on a positive note for the main asset classes.

The climate of optimism was supported by the announcement of the signing of the US/China trade agreement and by signs of the stabilization of macroeconomic conditions. From the second half of January, the performance of the financial markets was heavily influenced by the fears and developments connected with the rapid and progressive spread of the COVID-19 epidemic around the world. Risk aversion gradually overwhelmed the stock markets and generated strong volatility. The sectors most affected were energy and finance. Fears about the adverse effects of the pandemic on growth, with direct impacts on consumption, the production of goods and businesses and household confidence were largely borne out. Uncertainties about the extent and duration of the pandemic prompted expectations of a sharp contraction in growth. After early April, stock markets globally predominantly returned to posting gains, strengthening in the late spring and summer months and gradually recouping previous losses. This trend was sustained by changes in infection data in a number of developed areas, by the gradual easing of lockdown measures, by the reopening of economies, by the strengthening of support measures implemented by central banks and governments, and by positive surprises in macroeconomic data. However, the recovery was not free of setbacks. Fears of a new wave of the pandemic and warnings issued by the authorities about the threat posed to the economic outlook repeatedly put pressure on equity markets: in July, the performance of equities in Japan and Europe was burdened by fears for growth, before regaining momentum in August and then turning downwards again between September and October, together with markets in the entire developed world. In November, the success of Joe Biden in the US presidential elections and the announcement of significant advances in vaccine trials were greeted by a rally in the equity sector. In general, the markets were buffeted by opposing stresses connected with the alternation of good and bad news for growth, due to the epidemiological situation and developments in macroeconomic conditions.

Government bonds experienced alternating phases of upward pressure (attributable to the risk-on environment or to the outlook for a deterioration in public finances as a result of fiscal stimulus measures) and downward momentum (especially for the core sectors, where greater caution and risk aversion prevailed). Sometimes divergent trends emerged between US government securities, supported by the Fed’s interventions, and those issued by European governments, especially in the peripheral countries, which were penalized by a massive flow of new issues. The spread between German yields and those in France, Italy and Spain varied between the peak reached before the ECB announced the Pandemic Emergency Purchase Programme in mid-March and the more recent lows. BTPs, in particular, were subject to profit taking and had to incorporate significant price drops. The ten-year BTP/Bund spread exceeded 260 basis points after the second ten days of April, penalized in particular by the domestic political debate on the use of the ESM and the weakness of the economy. From mid-May, the differential narrowed, with the fall continuing until the end of the year (111 basis points) thanks to the strengthening of the PEPP safety net and the definitive approval of the Recovery Fund. Yields on BTPs then posted record lows for securities with maturities of between 3 and 30 years (around 0.54% on ten-year paper).

In the end, notwithstanding the difficult social and economic environment due to the worldwide spread of the pandemic, the equity markets overall surprisingly registered positive performances in 2020, essentially driven by the United States and Japan.

The strong support of monetary and fiscal policies around the world and the progress in the development of Covid vaccines made the markets first recoup the heavy losses of February and March and then finish the year on a strong note, with gains of more than 10% both in the US, Japan and Emerging Markets. Positive performances were registered also by government bond markets, where expectations of a growth revival prevailed over fears of increasing fiscal deficits, keeping interest rates low through the year after their deep dive in February. On the currency side, after a strong US dollar phase during the first months of the pandemic, US dollar weakness against Euro and Yen ensued once expectations of growth recovery set in.

Macroeconomic conditions

At the beginning of 2020, the continuation of expansionary monetary policies had fostered the emergence of signs of stabilization of the cycle, despite certain unclear indications of weakness in manufacturing. A number of economic indicators appeared to be pointing to recovery, and risk factors seemed to be easing slightly. The “Phase 1” agreement signed in January between the United States and China had provided for mutual commitments concerning the purchase of goods, the gradual reduction of tariffs and undertakings regarding currency management and the protection of intellectual property. The pre-crisis fundamentals appeared solid: a few weeks after the spread of the COVID-19 epidemic to the West, the unemployment rate in the advanced economies was at an all-time low. Global manufacturing continued shake off the effects of the trade war between the United States and China, anticipating a resumption of world trade. Since the second half of January, the scenario has changed radically in the wake of the rapid spread of the coronavirus epidemic, which very rapidly became a global pandemic with the consequent imposition of containment measures to stem the health emergency. This had a direct impact on the demand and production of goods and services, with negative repercussions for economic growth, triggering a severe global recession. The peak of the disease in late spring seemed to have passed, with the situation improving in China and the euro area. With the start of the summer, alarm over the deterioration the COVID-19 situation in America increased, while at the same time macroeconomic data continued to provide encouraging surprises and boosted confidence in progress on the medical/scientific front. In the autumn, the significant increase in COVID-19 cases in some US states, the worsening of the health crisis in Latin America and Asia, and the rise in infections in Europe triggered heightened uncertainty about the evolution of the pandemic and the possibility that the fragile recovery could be derailed. The spread of the pandemic in the summer and autumn indicated that without effective vaccines a return to pre-crisis levels of activity in certain sectors would be incompatible with controlling the health threat. In Europe, the spread of the pandemic forced a resumption of drastic containment measures. The rush to develop a vaccine has yielded favourable results. At the end of the year, the pharmaceutical companies Pfizer, Moderna and AstraZeneca gave comforting signals in this regard. At the beginning of 2021, the vaccines had been cleared by regulatory authorities for public use in many countries.

ANIMA Funds Plc

Manager’s Report

for the financial year ended 31 December 2020

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The reactions of the monetary and fiscal authorities to the progress of the pandemic initially appeared poorly coordinated. Since the end of February, governments had announced large-scale fiscal stimulus packages and central banks had intervened aggressively by cutting rates, expanding their quantitative easing measures and injecting liquidity into the banking system. In March, the Fed held two extraordinary meetings at which it cut rates by 1.5 percentage points to a range of 0%-0.25%, subsequently announcing interventions totaling more than $1.2 trillion and removing limits on maturities and amounts in its QE plan. The US Congress approved substantial support, with fiscal measures worth over $2 trillion. Other central banks also implemented significant measures: the Bank of England and the Bank of Canada adjusted their official rates (with decreases of 0.65 points and 1 point respectively), while the Bank of Japan injected liquidity into the interbank market. The ECB, while leaving rates unchanged, announced substantial purchases of government securities, eased bank capital requirements and introduced the Pandemic Emergency Purchase Programme (PEPP, progressively increasing its envelope up to€1,850 billion, extending net purchases until at least the end of March 2022 and the reinvestment of principal payments until at least the end of 2023). The European Commission had also invoked the general escape clause of the Stability Pact, granting maximum flexibility to governments in their budget decisions. Although the European Council had charged the European Commission with the task of preparing an operational proposal for the Recovery Fund, until mid-July the euro-area countries could not agree on the creation of a joint debt instrument. The desired agreement - the result of a compromise that emerged from the European Council in July – includes a plan to raise€750 billion on the markets and the distribution of €390 billion in grants and €360 billion in loans. Aid from the EU budget will be repaid by all Member States as a whole. The Fund will remain open until 2026, while the repayment of the loans will begin in 2027. Italy will be eligible for about€80 billion in grants and over €120 billion in loans for a total of €209 billion:

the resources will be disbursed between the second half of 2021 and 2023.

After the spring collapse, during the summer the United States registered improvements on both the supply side and the domestic demand side, with industrial production, orders and retail sales rising sharply. Earlier subsidies and the strength of the labor market helped support household spending, although consumer confidence began to reflect growing uncertainty over earnings prospects. Towards the close of 2020, the US economy began to display signs of a slowdown while the pandemic surged again. The OECD and IMF estimated an annual decrease in US GDP of -3.7% and -4.3% respectively in 2020, with a recovery of more than 3% forecast for 2021. The December FOMC meeting ended without changes in the monetary policy stance, with unchanged rates and securities purchases. The Fed announced that it had relaxed its 2% inflation target to preserve greater freedom over rates. The US elections were won by Joe Biden, although the handover of power has been embroiled in internal political turmoil (Trump had not recognized the challenger’s victory, complaining of irregularities and fraud). After winning the House, the Democrats also gained a narrow majority in the Senate, thanks to the outcome of run-off elections in Georgia at the beginning of January. This could facilitate smoother US government action.

The contraction in GDP in the euro area also appeared to be largely attributable to a collapse in private consumption. Retail sales in the late spring and summer helped offset the previous collapse. Industrial production continued to decline on an annual basis, despite the emergence of some signs of recovery in the summer. The slight gain of new car registrations in September after the plunge in August was swamped by another decrease in the final part of the year. As in the US, signs of stabilization related to the earlier easing of lockdown measures also emerged in the euro area. However, domestic demand slowed in the second half of 2020. Economic activity slumped rapidly, foreshadowing a contraction in GDP in the fourth quarter. The most recent OECD and IMF estimates point to a contraction in euro-area GDP of around 7.5% and 8.3% in 2020, respectively, and growth of 3.6% and 5.2% in 2021 . According to these forecasts, Italy’s GDP is expected to drop by 9.1% (10.6%) in 2020, and then rise by 4.3%

(5.2%) in 2021. The weakness could be attenuated by official intervention: the ECB has undertaken to strengthen its stimulus measures and governments appear willing to launch new support measures.

As the end of the year approached, some progress emerged in the negotiations over Brexit, with the brinksmanship finally producing an agreement between the EU and the United Kingdom.

In Japan, the change in prime minister (with Suga succeeding Abe) was a prelude to continuity in the country’s embrace of

“Abenomics”, at least in the short term. Seasonally-adjusted GDP growth in the third quarter rebounded to 22.9% on an annual basis, while unemployment stood at 3.1%. OECD and IMF estimates point to a contraction of 5.3% in 2020 and a recovery of 2.3%

in 2021.

China continued to record growth, supported by the recovery in demand, which strengthened gradually in all sectors, in particular in infrastructure and real estate investment, and in exports (not only COVID-related goods). The supply side kept pace, with retail sales and industrial production signaling a sound continuation of the recovery, supported by levels of the PMI that have risen into the area indicating an expansion for both manufacturing and services. The Asian giant could be the only systemic economy capable of recording GDP growth (the OECD estimate is for a gain of about 1.8% for 2020 and an acceleration to 8% in 2021).

On the global inflation front, the COVID pandemic continues to exert downward pressure, with price pressures generally remaining subdued, with signs of considerable weakness in the euro area. The Fed’s statements concerning its inflation target were accompanied by those of the ECB, which confirmed the need to monitor exchange rate developments due to their implications for the medium-term outlook for inflation.

The outlook

News about vaccine research and availability in the fight against COVID-19 have reduced uncertainty about the medium-term prospects for growth, buoying risky assets and supporting the possibility of an acceleration of the global economic recovery in the second half of 2021. Political developments also appear more favorable: the outcome of the US elections has reduced the risks to trade, encouraging expectations of a considerable pandemic stimulus in the short term. Furthermore, the accommodative

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for the financial year ended 31 December 2020 (continued)

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monetary and fiscal stance is set to remain highly supportive, as underlying inflation is unlikely to strengthen in the next six to twelve months. With inflation currently below its target level, central banks (both the Fed and the ECB) will retain their accommodative stance for much of 2021, if not longer, while governments remain focused on supporting economic activity.

Regardless of the differences in the impact of the pandemic on different areas, economic activity could return to pre-pandemic levels faster than previously assumed: the exogenous shock represented by the pandemic hit a global economy that was originally healthy and has proved resilient, which increases the chances of recovery, albeit with differences in timing and approaches in the various geographical areas. The Chinese economy in particular has managed to rebound earlier than the rest of the world, and should continue to expand at a pace in line with potential. The United States could return to pre-crisis levels in less than a year, while Europe, albeit with more difficulty as a result of the lack of greater fiscal stimuli in the first half of 2021, the consequences of the more severe lockdowns imposed and the prospect of an adjustment of labor market conditions, has taken major steps towards fiscal union: this should help the region unleash some of its growth potential as early as the second half of 2021. The main driver in 2021 could be the services industry in the advanced economies, particularly in the euro area and the United Kingdom, where restrictions severely impacted many segments of the sector. The health crisis and the weakening of fiscal support measures have undermined consumer confidence and strengthened the tendency to increase precautionary savings, slowing or depressing global growth. At the same time, the accumulated resources (which are substantial, especially in the USA) could constitute an important reserve to draw upon to finance consumption once the numerous factors of uncertainty have dissipated.

In the United States, forecasts for economic recovery in the first half of 2021 are based on support from fiscal policy, while vaccine developments have paved the way for more sustainable growth in the second half of 2021. President-elect Biden’s approach appears to be founded on pursuing greater balance and collaboration in international relations (with expectations of an improvement in relations with trading partners and less heated rhetoric between the United States and China) and managing the health crisis.

On the monetary policy front, the Fed remains very accommodative, and no new developments are expected in the short term.

Rates are expected to remain close to zero for a considerable time, especially after the transition to the average inflation target.

It is also conceivable that the Fed could modify its forward guidance to qualitatively link the asset purchases to economic conditions, while maintaining the current pace of overall purchases unchanged.

In the euro area, the short-term outlook is not promising: the fears associated with the spread of the virus are high, the main leading indicators point to an economic slowdown and investment and private consumption remain at risk, connected with the lack of support for the labor market, which will remain in precarious condition. However, the deployment of the Recovery Fund suggests a more optimistic view for the second half of next year. In this context, the ECB is expected to maintain a particularly accommodative stance: after the expansion of monetary policy measures, it could adopt a more wait-and-see approach, with a focus on monitoring economic data and developments in the COVID pandemic.

Growth is expected to continue in China, provided that the health situation remains under control. In the absence of any easing or tightening, the neutral macroeconomic policy context appears appropriate to support the continued growth of domestic demand, with a steady rise in investment and an expansion of spending on consumption and services. The recovery in global demand following the development of vaccines and the rebalancing of the composition of growth will continue to support the Chinese economy in the second half of 2021 as well.

Inflationary pressures are not expected to materialize until the services sector normalizes. This could happen after vaccines are widely distributed and the economy returns to pre-pandemic conditions.

In consideration of the risks still present, it is possible that the dynamics of the financial markets, as well as those of the real economy, remain exposed to variability, which will have to be managed prudently and tactically. The allocative approach considers the existing imbalances, which could alter the outlook.

A constructive stance is being maintained in equities in the medium term, due in part to the structural liquidity support. Managing the very short-term equity position remains exposed to the impact of developments on the health front, after benefiting from a number of major catalysts (the outcome of the US elections, the announcements on vaccines). Any periods of weakness in equity markets could reflect profit taking, and be exploited tactically to rebalance risk exposure. Despite the apparent absence of new catalysts for an acceleration of the positive trend in the immediate future, the elimination of uncertainties about Brexit, the strengthening of central bank support programs, and the expectations for substantial fiscal intervention nevertheless appear capable of sustaining gains during the first quarter of 2021. However, a recovery in consumption will be decisive for sustainable growth looking forward: developments in labor market conditions will therefore remain a crucial factor. Any retrenchment could represent favorable investment opportunities, taking a tactical approach to identify the companies and sectors with the greatest potential for recovery after having suffered the most in the past.

Government issues have proved to be extremely sensitive to the massive stimulus measures announced and implemented by central banks. A neutral stance is being maintained for the sector as a whole: the current trading range is expected to continue with the ongoing consolidation of yields in light of the central banks’ careful control of official rates (which are expected to remain low for a long time).

In the corporate bond market, the neutral stance on investment grade paper is supported by the consideration that the segment, while enjoying the protection of central banks as a result of the purchase programs targeting the sector and benefiting from the possibility of issuing debt at negative rates, has seen spreads narrowing progressively, with both rates and spreads close to

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all-time lows. The scope for further narrowing appears rather limited, counseling a preference for quality issuers. The neutral stance in respect of the high yield corporate bond segment is essentially connected with a generally constructive orientation in the broader risky-asset sector. The relative caution towards emerging-market issues is linked to trends in fundamentals.

Among the main currencies, the euro/dollar exchange rate appears unlikely to be impacted by news from the Fed and the ECB concerning the rate differential. However, a negative position in respect of the US dollar under the assumption of a continuation of the weakness in the greenback is connected with the expectation that official rates will remain low for an extended period, in conjunction with a stronger euro (the Recovery Fund should reduce political risk within the EU). At the same time, the progressive strengthening of the euro has been facilitated by the wait-and-see attitude of the ECB in response to the appreciation of the single currency. The neutral view of the British pound reflects consideration of the potential benefits of the Brexit agreement.

The global growth outlook appears to selectively support an increase in commodity prices.

ANIMA Liquidity

During 2020 the Fund kept an average Duration higher than the benchmark, with overweight in Italian, Spanish and Portuguese issues, in order to maximize the portfolio’s yield to maturity in an environment of deeply negative money markets yields. Core countries have been kept underweight, compared to the benchmark.

In the year the Fund reported a net negative absolute performance and below its benchmark. The overweight of Italian notes, in an environment of deeply negative yields, gave a positive contribution in relative terms, but only partially helped to recover the costs.

In 2021 we foresee to keep overweighting Italian and other peripheral countries notes, in order to maximize the yield to maturity of the Fund. At the same time, we expect to invest only a small part of the portfolio in Core countries, which pay yields much lower than the ECB official rates. We expect the ECB to stay on hold along the course of the year.

Fund Share Class Performance

ANIMA Liquidity A -0.79%

I -0.59%

Prestige -0.81%

Silver -0.92%

ANIMA Short Term Bond

The management of the Fund relies on a quantitative investment process based on a risk budget with constraint of tracking error.

During the year, on average, the Fund had a bond exposure equal to 95% of the portfolio, fully allocated on government securities.

The portfolio was country neutral relative to the benchmark: at the end of December, the fixed income component was mainly allocated in Italy (25%), France (22%), Germany (19%) and Spain (11%).

During the year, the Fund duration was aligned with the one of the benchmark: at the end of December, it was 1.81 (with respect to the BMK Duration 1.81). The net active performance against the reference Benchmark was -0.45% (Class I).

The Fund will follow a management style characterized by a limited level of Tracking Error compared to the reference Benchmark.

ANIMA Short Term Bond I -0.44%

Prestige -0.75%

Silver -0.87%

ANIMA Medium Term Bond

The portfolio was country neutral relative to the benchmark: at the end of December, the fixed income component was mainly allocated in France (24%), Italy (21%), Germany (17%) and Spain (13%).

During the year, the Fund duration was aligned with the one of the benchmark: at the end of December, it was 8.42 (with respect to the BMK Duration 8.36).

The net active performance against the reference Benchmark was -0.59% (Class I).

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ANIMA Medium Term Bond (continued)

ANIMA Medium Term Bond I 4.08%

Prestige 3.60%

Silver 3.21%

ANIMA Bond Dollar

During the year, on average, the Fund had a bond exposure equal to 95% of the portfolio, mainly allocated on US Treasuries.

ANIMA Bond Dollar I -1.08%

Prestige -1.57%

Silver -1.91%

ANIMA Global Bond

The portfolio was country neutral relative to the benchmark: at the end of December, the fixed income component was mainly allocated in USA (36%) and Japan (24%).

ANIMA Global Bond I -0.52%

Prestige -0.89%

Silver -1.26%

ANIMA Short Term Corporate Bond

The Fund has achieved an absolute positive net performance (Class I), slightly lower than the benchmark over the past twelve months.

Interest rates are lower than one year ago, while corporate spreads are still higher, even if they partially recovered some of the losses occurred during March 2020. The global pandemic, indeed, caused a rise in corporate spread and, in general, a sell-off on risky assets that has been drastic in March. European governments took many measures to contain contagion. These measures reduced dramatically the economic activity, primarily in countries like Italy, one of the first to be hit by the pandemic. The gradual recovery in economic activity determined a renewed trust among investors, but not sufficiently to recover all the losses.

During the second half of 2020, the second wave in October and the return of containment measures, reduced during summer, caused a renewed panic on the markets, even if the movement was lower than the one that took place in March. Subsequent news about the discovery of a vaccine restored trust in financial markets, together with the market-friendly outcome of USA elections. Besides this, looser fiscal and monetary policies determined a decrease in interest rates and backed equity markets, and risky assets in general.

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ANIMA Short Term Corporate Bond (continued)

The shorter duration of the Fund relative to the benchmark benefited the Fund, but not enough to cover all the losses coming from the overweight of high beta securities, which were the most hit during periods of tensions. At the end of 2020 the duration of the Fund is approximately 0.8 years- the sector which are mostly overweight are insurances, utilities and communications. Moreover, there is an overweight of subordinated securities, both financial and non-financial. The percentage weight of corporate securities is lower than the benchmark by approximately 10%.

The Fund will exploit periods of high volatility to increase the percentage positioning of corporate securities, keeping a preference for those with close maturities/call. The Fund will maintain its overweight of subordinated securities issued by high credit quality firms, in order to generate yield and contain risk.

ANIMA Short Term Corporate Bond I 0.45%

Silver -0.22%

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ANIMA Europe Equity

The first weeks of 2020 saw a favorable financial environment, characterized by the reduction in geopolitical tensions between the United States and China, and by improving macro leading indicators. However, the situation deteriorated rapidly in mid-February, with an average correction of global equity markets of -30%, once the danger of the Covid-19 virus and the speed of its expansion beyond China’s borders were better understood by the investment community.

The investment team quickly reduced the equity exposure, taking an underweight position with respect to the benchmark, favoring the defensive sectors (in particular the pharmaceutical, telecommunications and utilities sectors) and the technology sector. In stock picking, particular attention was paid to identifying the companies that could benefit from the trends that emerged during the lockdowns, such as the⬙Work From Home⬙ and the acceleration of online penetration.

Considering the strong monetary and fiscal stimulus, which were followed by an improvement in the macro leading indicators, in the second quarter the Fund increased its equity exposure but maintained a bias towards the technology and utilities sectors, and brought to underweight the exposure to the pharmaceutical sector.

However, during the third quarter of 2020, the European stock market enters into a trading range: the so-called⬙Covid Winners⬙

reach very high valuations and lose the momentum of the first part of the year, while the uncertainties about the prospects of the stocks most negatively affected by the pandemic remains alive. Considering the potential positive developments on the Covid vaccine approval process and the publication of the⬙Recovery Fund⬙ in Europe, the Fund has gradually increased its ⬙value⬙ tilt (mainly through the banking and oil sectors) and selectively reduced the overweight of the “growth” style (in particular, taking some profit on the “Covid winners”).

The last quarter was characterized by the euphoria deriving from the positive newsflow on the effectiveness of the anti-Covid vaccines, the geopolitical uncertainties surrounding the US elections (with the market welcoming the victory of the democratic candidate Joe Biden) and the Brexit negotiation (with an agreement reached at the last minute on December 24th). In this context, the sectoral and style rotation towards “value” has found strength. The investment team selectively took profits in some banking stocks but kept the exposure to the financial sector unchanged by increasing the weight of the insurance sector, and selectively increased the exposure to stocks related to the reopening, such as those in the hotel sector.

Over the last twelve months, the Fund has achieved a positive net performance compared to the benchmark. In terms of sector allocation, the overweight to Tech and Utilities sectors, and an underweight to Consumer Discretionary contributed positively to the Fund’s annual performance.

In 2021, we should see an acceleration of the economic recovery, thanks to both the accommodative monetary and fiscal policies, and to the Covid-19 vaccine rollout.

We believe that the rotation towards the⬙value⬙ style and towards ⬙reopening trades⬙ still have room in the first part of the year, although there may be volatility coming from the increase in Covid-19 cases. The stocks most affected by the pandemic in 2020 will benefit from vaccine administration and the gradual reopening of global economies, while⬙covid winners⬙ generally find themselves with high valuations and a growth profile that could be weaker in 2021 than in 2020.

ANIMA Europe Equity I 1.40%

Prestige 0.35%

Silver -0.18%

ANIMA U.S. Equity

In 2020, the US Equity Fund outperformed the benchmark and had a positive net performance, thanks to its balanced portfolio, which indeed was capable of face any scenario that could occur during pandemic, especially the positive trends that arose during the period. The investment policy consisted in being overweight information technology, in particular those stocks of companies that allowed to maintain communications during the lockdown, and consumer discretionary, especially those companies that have a high growth and remained resilient during the lockdown. In order to offset the cyclicality of this portfolio, we also invested in consumer staples stocks, characterized by high demand, high growth, and elevated opportunities for international expansion. In terms of sector allocation, the sectors that contributed most positively to the outperformance were information technology, consumer discretionary and the market weight position in industrials, which benefitted from the cyclical recovery that started towards the end of the year. The stock picking also contributed positively, for instance the decision not to invest in specific stocks of the financial sector or the communication sector.

The management team’s priority is that of continuing to select the best stocks on the American equity market, especially those that have specific characteristics, such as a sustainable topline growth, elevated cash generation, clean and unlevered balance sheets, with ample liquidity and flexibility to capture interesting opportunities that allow for the firm’s growth. We still care a lot

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ANIMA U.S. Equity (continued)

about valuations and indeed we seek stocks with these characteristics at interesting valuations or even undervalued. Our goal is that to select the stocks of companies that are able to obtain a performance that is superior to that of the benchmark, in order to generate alpha.

ANIMA U.S. Equity I 15.20%

Prestige 14.05%

Silver 13.50%

ANIMA Asia/Pacific Equity

Asia-Pacific market equities returned around 17% (in USD) in 2020, overperforming developed markets as a whole. At regional level, a marked dispersion in distribution of results was observed: strong over-performance of Japan (+ 13%) stands out both against Australia (+6%), Hong Kong (-3%) and Singapore (-10%). Looking at sector performance tech with semiconductors, pharma with med-tech and telemedicine, on line commerce and development of electric vehicle and hybrid technology were the sectors with the highest yield, while banks, energy, utilities, real estate and transport reported the most negative performances.

The highly accommodative monetary policies pursued by almost all Central Banks in emerging countries, determined by the need to face the massive and totally unexpected negative economic impact of the COVID-19 pandemic, allowed stock markets to recover the losses recorded in the first half of 2020, as nominal and real interest rates dropped to lowest ever levels and major central bank balance sheets at all-time highs. Japan and Australia, in particular, by resorting to expansive fiscal and monetary policies to restart its economy has managed to return at levels of economic activity registered before the outbreak of the pandemic. Also “negatively important” has been difficulties in political and commercial relations between USA and China. Main protagonist of financial markets have been companies engaged in running digital platforms active in e-commerce, online games and innovative digital services. Even a significant contribution to full year’s results also came from companies developing and selling electric vehicles and related components.

The Fund’s equity exposure was marginally overweight all year long, significantly more pronounced in the fourth quarter than in previous quarters.

During the course of the year, the strategically preferred countries were Japan (one of the economy less affected by the pandemic effects) and Australia for the success in containing the infections, but also for the strong exposure to technology, much less impacted by pandemic than services and, indeed, promoted by progressive worldwide ’smart working’ business process adoption. Hong Kong and Singapore markets were structurally underweight. Always underweight, financial sector, particularly in the last months of the year has been tactically increased to overweight, while overweight in Technology was structural all year long.

The Fund achieved a net positive performance in 2020 in absolute terms and negative above reference benchmark. Main positive contributors to Fund’s performance relative to its benchmark were overweight equity exposure and overweight, sector and stock selection in Japan and Australia.

Thanks to start of vaccination programs and still expansionary monetary and fiscal policies, economic outlook remains constructive for the main emerging countries and their respective financial markets. It is believed to maintain current exposure (overall equity overweight favoring Japan and Australia), but closely monitoring upcoming fiscal policies of new US administration (due to the impact they could have on global interest rates and the USD ) and evolution of economic policy in China (due to the impact on the demand for the main raw materials and semi-finished products to which other economies like Australia are deeply exposed).

ANIMA Asia/Pacific Equity I 1.81%

Prestige 0.79%

Silver 0.30%

ANIMA Global Equity Value

On 27th of November the Fund changed its benchmark to better reflect the investment style and approach used to manage the fund. It represents a better reference to the investment activity of the fund.

The Fund underperformed its benchmark in 2020 because the portfolio composition favored a balanced approach between economically sensitive companies (that turned out to be most penalized by the COVID19 in terms of earnings revisions) and more prudent names like those in healthcare, telecommunications and consumer staples. The market rewarded technology and other high growth stocks that directly benefited from the structural acceleration towards a more digital economy. Only when the Pfizer vaccine was announced on the 9th of November, did we see a significant reversal in the Covid winner/cyclical impact trade.