No subscriptions can be received on the basis of this financial report. Subscriptions are only valid if made on the basis of the current prospectus

Semi-Annual Report

30 June 2016 (Unaudited) ASB AXION SICAV

Société d’Investissement à Capital Variable (A Luxembourg Investment Fund)

R.C.S Luxembourg B 133.350

No subscriptions can be received on the basis of this financial report. Subscriptions are only valid if made on the basis of the current prospectus and the Key Investor Information Document, accompanied by a copy of the latest annual report and a copy of the latest semi-annual report, if published thereafter.

ASB AXION SICAV - Semi-Annual Report 2016 1

Table of Contents

Half Year Commentary on the Financial Market . . . 2

Statement of Net Assets . . . 5

Statement of Share Statistics . . . 6

Schedule of Investments . . . 7

ASB AXION SICAV - Opportunity Fund . . . 7

Outstanding Financial Futures Contracts. . . 10

Outstanding Forward Foreign Exchange Contracts . . . 10

ASB AXION SICAV - Kermata Fund . . . 11

Outstanding Financial Futures Contracts. . . 13

Notes to the Financial Statements. . . 14

Management and Administration . . . 18

ASB AXION SICAV Semi-Annual Report 2016 Half Year Commentary on the Financial Market

ASB AXION SICAV – Opportunity Fund

The sub-fund posted a positive return of 3.75%% net of fees in the first half of 2016.

Financial markets continued to experience bouts of turbulence which alternated with phases of uneasy calm. Weakness in the emerging markets and particularly China were again at the epicenter of the malaise. Turbulence hit equity markets after weak Chinese service PMI prompted a reassessment of its growth rate just after the Fed raised interest rates on December 16th, ending eight years of near zero nominal policy rates. Anxiety about a global slowdown prompted a sharp sell-off in equity and commodity markets, with oil falling below USD 30 per barrel. Credit markets, in particular the US HY segment which has a high energy component, declined rapidly. As usual, central banks intervened in concert: the BoJ introduced negative interest rates, the ECB announced new policy measures and the Fed hinted at negative policy rates too. Equity markets, except the US, failed to respond as banking stocks came under severe pressure in Japan and Europe as investors assessed the impact on negative interest rates on the sector’s profitability. The S&P 500 index recovered the losses registered by February to end up 2.7% in USD terms. European bourses, despite being cheaper than US indices, never recovered and finished down 12.3%

over the reporting period.

In a classic bout of risk-off, investor fled risky assets to hide in safe assets. Government bond yields collapsed to new lows, or negative yields (25% of ML fixed income sovereign bonds index members!) on both sides of the Atlantic. Very low yields available in Euro denominated paper sent investors, including banks, into US treasury bonds just at the time the Fed had stopped its purchases and oil exporters trimmed their exposure to fund their budget requirements. Corporate credit markets were generally weak, even outside of the US energy space, as expected default rates started to worry investors. The Euro area fared better as it benefitted from expected ECB purchases of corporate bonds.

Precious metals and related equity investments performed well. As investor’s fretted about the efficacy of central bank policy to reignite inflation and growth, the price of gold continued its ascent from the lows at USD 1047 that were hit just two day after the Fed lifted rates in December. By the end of June the price of the metal climbed to USD 1317.

Currency markets, especially when focusing on the USD/Euro rate, remained relatively calm. The USD lost in strength in Q1 as further rate increase were successively priced out of the market. From the lows relative to the Euro at 1.1616 in early May, the greenback regained strength to end at 1.1145 at the end of June. Over the period the USD weakened by 1.5%. The Japanese Yen staged as strong recovery, as it usually does in risk-off periods. The unexpected outcome of the Brexit vote in June sent the British pound to new lows.

The allocation to corporate bond was in the 55% to 60% range over the period, equity were gradually increased form around 20% to 26%

whereas the exposure to government and supranational bonds declined to 7% from 10% at the beginning of the year.

The bulk of performance come from the bond segment. The main contributors were Anglo American, Glencore, Mittal Steel and Evraz. The manager increased the exposure to this segment as the commodity complex looked like imploding by buying Anglo American 2018 and 2021 as early as January at 79.5 and 64.5 respectively. Prices recovered to 99.4 and 91.5 by the end of June as concerns about the commodity complex abated and corporates demonstrated sound financial management. Another contributor was the exposure to the defensive sector of Non-cyclical consumers. Given their stable business models, the fund used this segment to play duration. The fund traded Coca Cola European Partners 2030 (purchased at 95.8 sold at 99.1) during the period and sold the 2026 issue at 107.8. It also disposed of Anheuser Busch 2030 which was bought in September 2015 as the company embarked in the acquisition of SAB Miller, undermining in our view the quality of the

ASBAXIONSICAV–OpportunityFund



ThesubͲfundpostedapositivereturnof3.75%%netoffeesinthefirsthalfof2016.

Financial markets continued to experience bouts of turbulence which alternated with phases of uneasy

calm.WeaknessintheemergingmarketsandparticularlyChinawereagainattheepicenterofthemalaise.

TurbulencehitequitymarketsafterweakChineseservicePMIpromptedareassessmentofitsgrowthrate

just after the Fed raised interest rates on December 16^th, ending eight years of near zero nominal policy

rates.AnxietyaboutaglobalslowdownpromptedasharpsellͲoffinequityandcommoditymarkets,with

oilfallingbelowUSD30perbarrel.Creditmarkets,inparticulartheUSHYsegmentwhichhasahighenergy

component, declined rapidly. As usual, central banks intervened in concert: the BoJ introduced negative

interest rates, the ECB announced new policy measures and the Fed hinted at negative policy rates too.

Equity markets, except the US, failed to respond as banking stocks came under severe pressure in Japan

and Europe as investors assessed the impact on negative interest rates on the sector’s profitability. The

S&P500indexrecoveredthelossesregisteredbyFebruarytoendup2.7%inUSDterms.Europeanbourses,

despite being cheaper than US indices, never recovered and finished down 12.3% over the reporting

period.

In a classic bout of riskͲoff, investor fled risky assets to hide in safe assets. Government bond yields

collapsed to new lows, or negative yields (25% of ML fixed income sovereign bonds index members!) on

bothsidesoftheAtlantic.VerylowyieldsavailableinEurodenominated papersentinvestors,including

banks,intoUStreasurybondsjustatthetimetheFedhadstoppeditspurchasesandoilexporterstrimmed

their exposure to fund their budget requirements.  Corporate credit markets were generally weak, even

outsideoftheUSenergyspace,asexpecteddefaultratesstartedtoworryinvestors.TheEuroareafared

betterasitbenefittedfromexpectedECBpurchasesofcorporatebonds.

Preciousmetalsandrelatedequityinvestmentsperformedwell.Asinvestor’sfrettedabouttheefficacyof

centralbankpolicytoreigniteinflationandgrowth,thepriceofgoldcontinueditsascentfromthelowsat

ASB AXION SICAV - Semi-Annual Report 2016 3

ASB AXION SICAV Semi-Annual Report 2016

Half Year Commentary on the Financial Market (continued)

balance sheet.

Activity was rather subdued. The fund took a few risk positions during the period. It bought into Brazil 2018 in local currency and also Venezuela 2026 in USD at 43.15. Position sizing was, as always prudent, but unfortunately the opportunities available in Euro terms are dwindling day by day. The mix between USD and Euro denominated issues was stable, despite the USD universe being larger.

In June, for the first time in the history of this fund, the manager used interest rate futures. Just ahead of the Brexit vote, a short position in short dated Italian Government bond futures was initiated. The aim was twofold: 1) have a hedge in case of peripheral spread widening and 2) reduce duration of the fund as we believe that fiscal policy and higher inflation may attract more attention in the coming quarters.

Equities generated a positive contribution despite the large allocation to Europe. The exposure to gold mining stock like Agnico Eagle, Franco Nevada and Fresnillo generated the bulk of returns. The fund had very little exposure to the banking sector in Europe, but the only holding, Banca Carige, came under significant pressure and was a drag on overall performance. Hedging via short S&P futures detracted too from performance.

The fund kept more than 90% of assets in the fund’s currency. The exposure to USD, JPY, GBP and CHF was hedged over the period.

At half year end the asset mix of the sub-fund was the following: 26% equities), 65% bonds (57% corporate, 3% government, 4%

supranational), the remainder in cash.

The compression of yield has been dramatic over the first half of the year. The average yield to maturity of the fund has shrunk form 3.7% in January to 2.7% at the end of June. As written in this same context a year ago, the investment manager can only repeat itself: “the

extraordinarily easy monetary conditions in Europe are necessary, but also create a difficult environment for investors. The prudent man investment approach is seriously challenged. There is no yield available at either acceptable duration risk or credit risk” We sense that monetary policy is running out of options, and, after the Brexit vote, despite the remarkable quite market response, challenges to keeping Europe united will surface again.

The fund manager intends to continue with his prudent and flexible investment strategy in order to achieve the sub-fund’s investment objective of reasonable capital preservation combined with long-term growth.

ASB AXION SICAV – Kermata Fund

Over the period under review the investment manager’s strategy was to achieve a steady appreciation in the value of the sub-fund with a low volatility on a constant basis.

The sub-fund posted a positive return of 2.08% net of fees in the first half of 2016.

Financial markets continued to experience bouts of turbulence which alternated with phases of uneasy calm. Weakness in the emerging markets and particularly China were again at the epicenter of the malaise. Turbulence hit equity markets after weak Chinese service PMI prompted a reassessment of its growth rate just after the Fed raise interest rates on December 16th, ending eight years of near zero nominal policy rates. Anxiety about a global slowdown prompted a sharp sell-off in equity and commodity markets, with oil falling below USD 30 per

ASBAXIONSICAV–KermataFund

 

Overtheperiodunderreviewtheinvestmentmanager’sstrategywastoachieveasteadyappreciationin

thevalueofthesubͲfundwithalowvolatilityonaconstantbasis.



ThesubͲfundpostedapositivereturnof2.08%netoffeesinthefirsthalfof2016.

Financial markets continued to experience bouts of turbulence which alternated with phases of uneasy

calm.WeaknessintheemergingmarketsandparticularlyChinawereagainattheepicenterofthemalaise.

TurbulencehitequitymarketsafterweakChineseservicePMIpromptedareassessmentofitsgrowthrate

just after the Fed raise interest rates on December 16^th, ending eight years of near zero nominal policy

rates.AnxietyaboutaglobalslowdownpromptedasharpsellͲoffinequityandcommoditymarkets,with

oilfallingbelowUSD30perbarrel.Creditmarkets,inparticulartheUSHYsegmentwhichhasahighenergy

component, declined rapidly. As usual, central banks intervened in concert: the BoJ introduced negative

interest rates, the ECB announced new policy measures and the Fed hinted at negative policy rates too.

Equity markets, except the US, failed to respond as banking stocks came under severe pressure in Japan

andEuropeasinvestorsassessedtheimpactonnegativeinterestratesonthesector’sprofitability.

In a classic bout of riskͲoff, investor fled risky assets to hide in safe assets. Government bond yields

collapsed to new lows, or negative yields (25% of ML fixed income sovereign bonds index members!) on

bothsidesoftheAtlantic.VerylowyieldsavailableinEurodenominated papersentinvestors,including

banks,intoUStreasurybondsjustatthetimetheFedhadstoppeditspurchasesandoilexporterstrimmed

their exposure to fund their budget requirements.  Corporate credit markets were generally weak, even

outsideoftheUSenergyspace,asexpecteddefaultratesstartedtoworryinvestors.TheEuroareafared

betterasitbenefittedfromexpectedECBpurchasesofcorporatebonds.

ThefundregisteredpositivemonthlyperformanceineachmonthexceptJanuaryandadvanced1.29%and

0.78%inQ1andQ2respectively.

ASB AXION SICAV Semi-Annual Report 2016

Half Year Commentary on the Financial Market (continued)

barrel. Credit markets, in particular the US HY segment which has a high energy component, declined rapidly. As usual, central banks intervened in concert: the BoJ introduced negative interest rates, the ECB announced new policy measures and the Fed hinted at negative policy rates too. Equity markets, except the US, failed to respond as banking stocks came under severe pressure in Japan and Europe as investors assessed the impact on negative interest rates on the sector’s profitability.

In a classic bout of risk-off, investor fled risky assets to hide in safe assets. Government bond yields collapsed to new lows, or negative yields (25% of ML fixed income sovereign bonds index members!) on both sides of the Atlantic. Very low yields available in Euro denominated paper sent investors, including banks, into US treasury bonds just at the time the Fed had stopped its purchases and oil exporters trimmed their exposure to fund their budget requirements. Corporate credit markets were generally weak, even outside of the US energy space, as expected default rates started to worry investors. The Euro area fared better as it benefitted from expected ECB purchases of corporate bonds.

The fund registered positive monthly performance in each month except January and advanced 1.29% and 0.78% in Q1 and Q2 respectively.

The composition of the fund was, broadly speaking, stable even as subscriptions nearly double the AuM.

Corporate bonds accounted for the bulk of holdings, as yields available in core European government bond markets, and increasingly so in the periphery were uninteresting. The allocation to the high yield segment and “not-rated” issues was fully exploited, i.e. just below the 25% limit.

In this segment, the manager kept a broad range of names, avoiding to having too concentrated an exposure to any single issuer or industry.

Issues from European banking institutions were few (UBS, Depfa, BBVA and Swedbank) accounting for only 6% of assets.

Best contributors were Anglo American, Glencore in the materials sector, Pemex, Galp and Gazprom in the energy space and Russian

Government bonds in Euro. Little exposure to government bonds certainly was a missed opportunity, but the risk/reward ratio is just appalling.

In June, just ahead of the Brexit vote, a short position in short dated Italian Government bond futures was initiated. The aim was twofold: 1) have a hedge in case of peripheral spread widening and 2) reduce duration of the fund as we believe that fiscal policy and higher inflation may attract more attention in the coming quarters.

The compression of yield has been dramatic over the first half of the year. The average yield to maturity of the fund has shrunk form 1.2% in January to 0.8% at the end of June. As written in this same context a year ago, the investment manager can only repeat itself: “the

extraordinarily easy monetary conditions in Europe are necessary, but also create a difficult environment for investors. The prudent man investment approach is seriously challenged. There is no yield available at either acceptable duration risk or credit risk” We sense that monetary policy is running out of options, and, after the Brexit vote, despite the remarkable quite market response, challenges to keeping Europe united will surface again.

ASB AXION SICAV - Semi-Annual Report 2016 5 The accompanying notes form an integral part of these financial statements.

as at 30 June 2016

Statement of Net Assets

Combined ASB AXION SICAV -

Kermata Fund ASB AXION SICAV -

Opportunity Fund

EUR EUR

EUR Assets

79,933,636 42,013,479

37,920,157 Securities at cost

1,547,826 550,851

996,975 Net unrealised gains/(losses) on securities

81,481,462 42,564,330

38,917,132 Investments in securities at market value

9,264,875 5,410,064

3,854,811 Cash at bank and brokers

773,144 468,168

304,976 Interest receivable

33,581 -

33,581 Dividends receivable

170,429 90,124

80,305 Receivables resulting from subscriptions

91,723,491 48,532,686

43,190,805 Total Assets

Liabilities

92,874 -

92,874 Net unrealised loss on forward foreign exchange contracts

220,313 79,250

141,063 Net unrealised loss on financial futures contracts

11,138 11,138

- Payables resulting from redemptions

122,931 46,442

76,489 Accrued expenses

447,256 136,830

310,426 Total Liabilities

91,276,235 48,395,856

42,880,379 Net Assets

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

as at 30 June 2016

Statement of Share Statistics

ASB AXION SICAV - Opportunity Fund

31 December 2014 31 December 2015

30 June 2016 Currency

Class A Non - Distributing

Number of shares 359,643.00 376,368.00 515,452.00

Net asset value per share EUR 119.23 114.92 116.89

60,253,657 43,252,335

42,880,379 EUR

Total Net Assets

ASB AXION SICAV - Kermata Fund

31 December 2014 31 December 2015

30 June 2016 Currency

Class A Non - Distributing

Number of shares 425,615.14 207,888.14 318,149.14

Net asset value per share EUR 113.71 111.39 110.68

35,211,632 23,156,185

48,395,856 EUR

Total Net Assets

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

Any differences in the percentage of net assets are the results of roundings.

ASB AXION SICAV - Semi-Annual Report 2016 7 Transferable Securities and Money Market Instruments Admitted to an Official Exchange

Listing or Dealt in on Other Regulated Markets Bonds

Basic Materials Chemicals

0.58%

250,428 SGL Carbon SE 4.875% 15/Jan/2021

EUR 250,000

Industrial Metals and Mining

1.19%

510,090 ArcelorMittal 3% 25/Mar/2019

EUR 500,000

0.64%

273,701 Evraz Group SA 6.75% 31/Jan/2022

USD 300,000

0.60%

256,468 Vale SA 4.375% 24/Mar/2018

EUR 250,000

Mining

0.46%

198,754 Anglo American Capital PLC 2.5% 18/Sep/2018

EUR 200,000

0.43%

183,348 Anglo American Capital PLC 2.5% 29/Apr/2021

EUR 200,000

0.86%

370,488 Glencore Finance Europe SA 1.25% 17/Mar/2021

EUR 400,000

Consumer Goods Automobiles and Parts

0.95%

409,228 CNH Industrial Finance Europe SA 2.875% 27/Sep/2021

EUR 400,000

1.18%

508,105 General Motors Financial International BV 1.168% 18/May/2020

EUR 500,000

1.07%

456,738 Jaguar Land Rover Automotive PLC - Regs - 4.125% 15/Dec/2018

USD 500,000

Beverages

1.31%

559,615 Coca-Cola Enterprises Inc 2.75% 06/May/2026

EUR 500,000

1.17%

503,350 Coca-Cola European Partners PLC 1.125% 26/May/2024

EUR 500,000

1.85%

793,118 Davide Campari-Milano SpA 2.75% 30/Sep/2020

EUR 750,000

0.25%

108,448 Pernod Ricard SA 1.875% 28/Sep/2023

EUR 100,000

Food Producers

1.40%

600,985 Barry Callebaut Services NV 5.625% 15/Jun/2021

EUR 500,000

1.07%

457,119 Nestle Holdings Inc 1.875% 09/Mar/2021

USD 500,000

Household Goods and Home Construction

0.24%

103,776 Arcelik AS 3.875% 16/Sep/2021

EUR 100,000

Consumer Services Food and Drug Retailers

1.17%

502,895 Tesco Corporate Treasury Services PLC 2.125% 12/Nov/2020

EUR 500,000

General Retailers

0.93%

396,878 Li & Fung Ltd 5.25% 13/May/2020

USD 400,000

Financials Banks

0.84%

358,466 ING Bank NV - Regs - Libor 3M 17/Aug/2018

USD 400,000

1.18%

507,223 Islandsbanki HF 2.875% 27/Jul/2018

EUR 500,000

1.18%

505,943 Islandsbanki HF 2.875% 27/Jul/2018

EUR 500,000

0.63%

270,557 JPMorgan Chase & Co Libor 3M 25/Jan/2018

USD 300,000

0.43%

183,198 State Bank of India/London - Regs - 3.25% 18/Apr/2018

USD 200,000

1.20%

515,580 Swedbank AB Floating 05/Dec/2022

EUR 500,000

1.52%

653,887 VTB Bank OJSC Via VTB Capital SA 2.9% 25/May/2018

CHF 700,000

Financial Services

2.43%

1,041,880 Bank of America Corp Floating 08/Feb/2021

EUR 1,000,000

0.42%

181,064 China Funding Investment 2014-2 Libor 3M 12/Aug/2017

USD 200,000

0.25%

108,540 Lunar Funding V for Swisscom AG 1.75% 15/Sep/2025

EUR 100,000

Nonlife Insurance

0.56%

239,538 Helvetia Schweizerische Versicherungsgesellschaft AG Floating Perpetual

CHF 250,000

0.60%

255,464 Helvetia Schweizerische Versicherungsgesellschaft AG Floating 17/Oct/2044

CHF 250,000

1.19%

510,520 Mapfre SA Floating 24/Jul/2037

EUR 500,000

Schedule of Investments as at 30 June 2016 (expressed in EUR)

ASB AXION SICAV - Opportunity Fund

Net Assets % Market Value

Description of Securities Currency

Holding

Schedule of Investments

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

Any differences in the percentage of net assets are the results of roundings.

Real Estate Investment and Services

1.72%

735,532 Grand City Properties SA 2% 29/Oct/2021

EUR 700,000

Real Estate Investment Trusts

1.19%

510,790 Unibail-Rodamco SE 1.125% 28/Apr/2027

EUR 500,000

Health Care

Health Care Equipment and Services

3.05%

1,301,695 Roche Holdings Inc 2% 13/Mar/2020

USD 1,420,000

Industrials

Aerospace and Defense

1.51%

646,561 Embraer SA 5.15% 15/Jun/2022

USD 700,000

Industrial Engineering

0.47%

202,042 Ansaldo Energia SpA 2.875% 28/Apr/2020

EUR 200,000

0.75%

321,622 Navistar International Corp 8.25% 01/Nov/2021

USD 500,000

Industrial Transportation

1.17%

501,510 FedEx Corp Euribor 3M 11/Apr/2019

EUR 500,000

Oil and Gas Oil and Gas Producers

2.81%

1,205,533 CNOOC Finance 2011 Ltd - Regs - 4.25% 26/Jan/2021

USD 1,250,000

2.49%

1,066,870 Galp Energia SGPS SA 4.125% 25/Jan/2019

EUR 1,000,000

2.02%

865,300 Gazprom OAO Via Gaz Capital SA - Regs - 3.755% 15/Mar/2017

EUR 850,000

0.63%

271,315 Genel Energy Finance PLC 7.5% 14/May/2019

USD 400,000

2.18%

936,190 Petrobras Global Finance BV 3.25% 01/Apr/2019

EUR 1,000,000

0.34%

144,911 Tullow Oil PLC - Regs - 6% 01/Nov/2020

USD 200,000

Technology

Software and Computer Services

0.98%

419,960 Amadeus Capital Markets SA Sociedad Unipersonal 1.625% 17/Nov/2021

EUR 400,000

Technology Hardware and Equipment

1.73%

741,274 Diamond 1 Finance Corp / Diamond 2 Finance Corp - Regs - 5.45% 15/Jun/2023

USD 800,000

1.08%

464,830 Semiconductor Manufacturing International Corp - Regs - 4.125% 07/Oct/2019

USD 500,000

Telecommunications Fixed Line Telecommunications

1.26%

541,000 Bharti Airtel International Netherlands BV - Regs - 3.375% 20/May/2021

EUR 500,000

1.29%

554,780 Proximus SADP 1.875% 01/Oct/2025

EUR 500,000

Mobile Telecommunications

1.07%

459,613 America Movil SAB de CV 3.125% 16/Jul/2022

USD 500,000

57.52%

24,666,720 Total Bonds

Equities Basic Materials

Industrial Metals and Mining

0.30%

128,243 First Quantum Minerals Ltd

CAD 20,000

Mining

3.31%

1,425,445 Agnico Eagle Mines Ltd

USD 30,000

1.02%

438,061 Fresnillo PLC

GBP 22,500

Consumer Goods

Household Goods and Home Construction

1.02%

435,400 Henkel AG & Co KGaA - Pfd

EUR 4,000

0.29%

124,002 Samsonite International SA

HKD 50,000

Schedule of Investments as at 30 June 2016 (expressed in EUR) (continued)

ASB AXION SICAV - Opportunity Fund

Net Assets % Market Value

Description of Securities Currency

Holding

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

Any differences in the percentage of net assets are the results of roundings.

ASB AXION SICAV - Semi-Annual Report 2016 9 Consumer Services

Food and Drug Retailers

0.37%

157,319 Tesco PLC

GBP 75,000

Travel, Leisure and Catering

0.75%

322,171 easyJet PLC

GBP 25,000

Financials Banks

0.23%

98,064 Banca Carige SpA

EUR 270,000

Financial Services

1.21%

517,262 CME Group Inc/IL

USD 6,000

0.74%

315,299 DBS Group Holdings Ltd

SGD 30,000

0.94%

401,882 Franco-Nevada Corp

CAD 6,000

Nonlife Insurance

1.08%

461,690 American International Group Inc

USD 10,000

0.68%

290,700 Mapfre SA

EUR 150,000

Health Care

Health Care Equipment and Services

0.47%

199,648 Coloplast A/S

DKK 3,000

1.45%

620,080 Fresenius Medical Care AG & Co KGaA

EUR 8,000

Pharmaceuticals and Biotechnology

0.72%

310,268 Allergan plc

USD 1,500

0.66%

281,377 Basilea Pharmaceutica

CHF 4,500

1.49%

639,649 Novartis AG - Reg

CHF 8,750

Industrials

Construction and Materials

0.53%

227,700 Buzzi Unicem SpA

EUR 15,000

0.31%

131,475 Buzzi Unicem SpA

EUR 15,000

Electronic and Electrical Equipment

0.41%

173,820 Hella KGaA Hueck & Co

EUR 6,000

General Industrials

1.57%

676,924 Jardine Strategic Holdings Ltd

USD 25,000

Industrial Transportation

0.75%

321,249 Japan Airport Terminal Co Ltd

JPY 10,000

Oil and Gas Alternative Energy

0.54%

233,552 GCL-Poly Energy Holdings Ltd

HKD 2,000,000

Oil and Gas Producers

1.14%

489,800 Galp Energia SGPS SA

EUR 40,000

0.57%

245,800 Royal Dutch Shell PLC - A

EUR 10,000

Oil Equipment, Services and Distribution

0.48%

207,100 SBM Offshore NV

EUR 20,000

Technology

Software and Computer Services

0.44%

187,200 Indra Sistemas SA

EUR 20,000

Technology Hardware and Equipment

1.18%

507,000 Nokia OYJ

EUR 100,000

Telecommunications Fixed Line Telecommunications

0.89%

383,175 Telecom Italia SpA/Milano - RSP

EUR 650,000

Schedule of Investments as at 30 June 2016 (expressed in EUR) (continued)

ASB AXION SICAV - Opportunity Fund

Net Assets % Market Value

Description of Securities Currency

Holding

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

Any differences in the percentage of net assets are the results of roundings.

Mobile Telecommunications

0.66%

281,625 Telefonica Deutschland Holding AG

EUR 75,000

26.20%

11,232,980 Total Equities

Supranationals, Governments and Local Public Authorities, Debt Instruments Supranationals

3.14%

1,349,354 African Export-Import Bank 5.75% 27/Jul/2016

USD 1,500,000

0.53%

226,355 Corp Andina de Fomento 2% 10/May/2019

USD 250,000

Governments

0.81%

348,250 Brazilian Government International Bond 2.875% 01/Apr/2021

EUR 350,000

1.08%

461,273 Temasek Financial I Ltd - Regs - 2.375% 23/Jan/2023

USD 500,000

0.40%

171,990 Venezuela Government International Bond - Regs - 11.75% 21/Oct/2026

USD 400,000

0.65%

277,332 Vietnam Government International Bond - Regs - 4.8% 19/Nov/2024

USD 300,000

Local Public Authorities

0.43%

182,876 Japan Bank for International Cooperation/Japan 2.125% 10/Feb/2025

USD 200,000

7.04%

3,017,430 Total Supranationals, Governments and Local Public Authorities, Debt Instruments

90.76%

38,917,130 Total Transferable Securities and Money Market Instruments Admitted to an Official

Exchange Listing or Dealt in on Other Regulated Markets

Other Transferable Securities Equities

Consumer Goods Food Producers

0.00%

2 Pescanova SA

EUR 15,000

0.00%

2 Total Equities

0.00%

2 Total Other Transferable Securities

90.76%

38,917,132 Total Securities

100.00%

42,880,379 Net Asset Value

Schedule of Investments as at 30 June 2016 (expressed in EUR) (continued)

ASB AXION SICAV - Opportunity Fund

Net Assets % Market Value

Description of Securities Currency

Holding

Outstanding Forward Foreign Exchange Contracts as at 30 June 2016 (expressed in EUR)

Unrealised Gain/(Loss) (in Fund Ccy) Amount Sold

Currency Amount Purchased

Currency Maturity Date

10,149 2,200,000

CHF 2,036,189

EUR 08-Sep-16

30,844 600,000

GBP 755,715

EUR 08-Sep-16

(133,867) 16,000,000

USD 14,198,243

EUR 08-Sep-16

(92,874) Total Net Unrealised Gain/(Loss) on Forward Foreign Exchange Contracts

Outstanding Financial Futures Contracts as at 30 June 2016 (expressed in EUR)

Unrealised Gain/(Loss) (in Fund Ccy) Market Price

(in Trade Ccy) Trade

Currency Contract

Long/(Short) Quantity Maturity Date

(66,070) 112.92

EUR Short Euro Btp

(200) 12-Sep-16

(74,993) 2,070.88

USD S&P 500 Emini

(50) 16-Sep-16

(141,063) Total Net Unrealised Gain/(Loss) on Financial Futures Contracts

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

Any differences in the percentage of net assets are the results of roundings.

ASB AXION SICAV - Semi-Annual Report 2016 11 Transferable Securities and Money Market Instruments Admitted to an Official Exchange

Listing or Dealt in on Other Regulated Markets Bonds

Basic Materials Chemicals

2.18%

1,054,960 Syngenta Finance NV 1.875% 02/Nov/2021

EUR 1,000,000

Industrial Metals and Mining

0.21%

100,271 Bao-trans Enterprises Ltd 1.625% 23/Feb/2018

EUR 100,000

0.64%

307,761 Vale SA 4.375% 24/Mar/2018

EUR 300,000

Mining

1.23%

596,262 Anglo American Capital PLC 2.5% 18/Sep/2018

EUR 600,000

3.82%

1,852,440 Glencore Finance Europe SA 1.25% 17/Mar/2021

EUR 2,000,000

Consumer Goods Automobiles and Parts

1.65%

796,410 Continental AG 3% 16/Jul/2018

EUR 750,000

1.03%

500,040 Daimler AG Euribor 3M 07/Oct/2016

EUR 500,000

1.03%

500,343 FCE Bank PLC Euribor 3M 15/Nov/2016

EUR 500,000

1.05%

508,105 General Motors Financial International BV 1.168% 18/May/2020

EUR 500,000

0.62%

300,294 Pirelli International PLC 1.75% 18/Nov/2019

EUR 300,000

1.04%

502,025 RCI Banque SA 0.375% 10/Jul/2019

EUR 500,000

1.07%

519,417 RCI Banque SA 1.375% 17/Nov/2020

EUR 500,000

1.04%

505,575 Volkswagen Leasing GmbH 1% 04/Oct/2017

EUR 500,000

Beverages

0.63%

305,583 Anheuser-Busch InBev SA/NV 0.625% 17/Mar/2020

EUR 300,000

2.16%

1,043,070 Carlsberg Breweries A/S 3.375% 13/Oct/2017

EUR 1,000,000

0.52%

250,280 Coca-Cola European Partners PLC Floating 26/Nov/2017

EUR 250,000

1.09%

527,800 Coca-Cola European Partners US LLC 2% 05/Dec/2019

EUR 500,000

0.87%

422,996 Davide Campari-Milano SpA 2.75% 30/Sep/2020

EUR 400,000

1.11%

534,855 Pernod Ricard SA 2% 22/Jun/2020

EUR 500,000

Personal Goods

0.21%

100,539 Christian Dior SE 0.75% 24/Jun/2021

EUR 100,000

Tobacco

0.66%

317,319 Philip Morris International Inc 1.75% 19/Mar/2020

EUR 300,000

Consumer Services Food and Drug Retailers

1.11%

539,050 Casino Guichard Perrachon SA 3.157% 06/Aug/2019

EUR 500,000

1.15%

554,340 Casino Guichard Perrachon SA 3.994% 09/Mar/2020

EUR 500,000

1.04%

502,895 Tesco Corporate Treasury Services PLC 2.125% 12/Nov/2020

EUR 500,000

Media

0.85%

413,032 Havas SA 1.875% 08/Dec/2020

EUR 400,000

Financials Banks

0.83%

402,052 Banque Federative du Credit Mutuel SA 0.25% 14/Jun/2019

EUR 400,000

3.18%

1,545,630 Deutsche Pfandbriefbank AG 1.5% 17/Sep/2019

EUR 1,500,000

2.15%

1,041,060 Industrial Bank of Korea 2% 30/Oct/2018

EUR 1,000,000

1.68%

811,556 Islandsbanki HF 2.875% 27/Jul/2018

EUR 800,000

1.05%

505,942 Islandsbanki HF 2.875% 27/Jul/2018

EUR 500,000

2.18%

1,054,470 Sberbank of Russia Via SB Capital SA - Regs - 3.3524% 15/Nov/2019

EUR 1,000,000

1.07%

515,580 Swedbank AB Floating 05/Dec/2022

EUR 500,000

1.71%

829,720 UBS AG/London 1.125% 30/Jun/2020

EUR 800,000

Schedule of Investments as at 30 June 2016 (expressed in EUR)

ASB AXION SICAV - Kermata Fund

Net Assets % Market Value

Description of Securities Currency

Holding

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

Any differences in the percentage of net assets are the results of roundings.

Financial Services

0.65%

314,156 Intermediate Capital Group PLC 4.282% 10/Mar/2019

EUR 300,000

0.63%

303,717 Nomura Europe Finance NV 1.125% 03/Jun/2020

EUR 300,000

1.60%

773,707 Nomura Europe Finance NV 1.875% 29/May/2018

EUR 750,000

Health Care

Health Care Equipment and Services

1.56%

753,179 Fresenius Finance BV - Regs - 2.875% 15/Jul/2020

EUR 700,000

Pharmaceuticals and Biotechnology

2.21%

1,070,230 Teva Pharmaceutical Finance IV BV 2.875% 15/Apr/2019

EUR 1,000,000

Industrials

Construction and Materials

2.18%

1,052,680 Ferrovial Emisiones SA - Regs - 3.375% 30/Jan/2018

EUR 1,000,000

1.12%

541,145 HeidelbergCement Finance Luxembourg SA 3.25% 21/Oct/2020

EUR 500,000

Industrial Engineering

1.04%

505,105 Ansaldo Energia SpA 2.875% 28/Apr/2020

EUR 500,000

1.08%

523,110 Fluor Corp 1.75% 21/Mar/2023

EUR 500,000

1.04%

502,870 John Deere Bank SA Euribor 3M 19/Mar/2019

EUR 500,000

Industrial Transportation

2.75%

1,330,784 AP Moeller - Maersk A/S Euribor 3M 18/Mar/2019

EUR 1,300,000

2.59%

1,253,775 FedEx Corp Euribor 3M 11/Apr/2019

EUR 1,250,000

Oil and Gas Oil and Gas Producers

1.76%

853,496 Galp Energia SGPS SA 4.125% 25/Jan/2019

EUR 800,000

0.64%

311,013 Gazprom OAO Via Gaz Capital SA 3.389% 20/Mar/2020

EUR 300,000

2.16%

1,046,050 Petroleos Mexicanos 3.75% 15/Mar/2019

EUR 1,000,000

Oil Equipment, Services and Distribution

1.05%

507,860 Schlumberger Finance France SAS 0.625% 12/Feb/2019

EUR 500,000

Technology

Software and Computer Services

0.87%

419,960 Amadeus Capital Markets SA Sociedad Unipersonal 1.625% 17/Nov/2021

EUR 400,000

1.03%

500,850 Amadeus Capital Markets SA Sociedad Unipersonal 4.875% 15/Jul/2016

EUR 500,000

Technology Hardware and Equipment

0.76%

368,991 ASML Holding NV 5.75% 13/Jun/2017

EUR 350,000

1.19%

577,900 Nokia OYJ 6.75% 04/Feb/2019

EUR 500,000

Telecommunications Fixed Line Telecommunications

2.24%

1,082,000 Bharti Airtel International Netherlands BV - Regs - 3.375% 20/May/2021

EUR 1,000,000

2.22%

1,073,240 Bharti Airtel International Netherlands BV 4% 10/Dec/2018

EUR 1,000,000

1.63%

788,704 OTE PLC 3.5% 09/Jul/2020

EUR 800,000

0.68%

326,784 SoftBank Group Corp - Regs - 4.625% 15/Apr/2020

EUR 300,000

1.15%

558,420 Telecom Italia SpA/Milano 5.375% 29/Jan/2019

EUR 500,000

Mobile Telecommunications

0.84%

405,916 Vodafone Group PLC 0.875% 17/Nov/2020

EUR 400,000

Utilities Electricity

1.80%

869,655 Fortum OYJ 6% 20/Mar/2019

EUR 750,000

Gas, Water and Multiutilities

0.52%

250,423 Snam SpA Euribor 3M 17/Oct/2016

EUR 250,000

80.85%

39,127,392 Total Bonds

Schedule of Investments as at 30 June 2016 (expressed in EUR) (continued)

ASB AXION SICAV - Kermata Fund

Net Assets % Market Value

Description of Securities Currency

Holding

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

Any differences in the percentage of net assets are the results of roundings.

ASB AXION SICAV - Semi-Annual Report 2016 13 Equities

Financials Banks

0.00%

12 United Overseas Bank Ltd

SGD 1

Oil and Gas Oil and Gas Producers

0.00%

8 Gazprom PJSC - Adr Reg

USD 2

0.00%

20 Total Equities

Supranationals, Governments and Local Public Authorities, Debt Instruments Governments

4.34%

2,099,160 Italy Buoni Poliennali Del Tesoro 1.45% 15/Sep/2022

EUR 2,000,000

2.24%

1,085,900 Russian Foreign Bond - Eurobond - Regs - 3.625% 16/Sep/2020

EUR 1,000,000

Local Public Authorities

0.52%

251,858 Export-Import Bank of Korea 0.375% 15/Mar/2019

EUR 250,000

7.10%

3,436,918 Total Supranationals, Governments and Local Public Authorities, Debt Instruments

87.95%

42,564,330 Total Transferable Securities and Money Market Instruments Admitted to an Official

Exchange Listing or Dealt in on Other Regulated Markets

87.95%

42,564,330 Total Securities

100.00%

48,395,856 Net Asset Value

Schedule of Investments as at 30 June 2016 (expressed in EUR) (continued)

ASB AXION SICAV - Kermata Fund

Net Assets % Market Value

Description of Securities Currency

Holding

Outstanding Financial Futures Contracts as at 30 June 2016 (expressed in EUR)

Unrealised Gain/(Loss) (in Fund Ccy) Market Price

(in Trade Ccy) Trade

Currency Contract

Long/(Short) Quantity Maturity Date

(79,250) 112.92

EUR Short Euro Btp

(250) 12-Sep-16

(79,250) Total Net Unrealised Gain/(Loss) on Financial Futures Contracts

ASB AXION SICAV

Notes to the Financial Statements as at 30 June 2016

Capitalised terms in these Notes should be attributed the same meaning as given to them in the prospectus of the Company unless specifically stated otherwise.

1. Description of the Company

ASB AXION SICAV (the “Company”) is an open ended fund (“SICAV”). The Company is an open-ended investment company incorporated under the laws of the Grand Duchy of Luxembourg as a Société d’Investissement à Capital Variable (“SICAV”). The Company is an undertaking for collective investments in transferable securities (“UCITS”) subject to Part I of the UCI Law and compliant with the requirements of the UCITS Directive.

Its Articles of Incorporation were deposited with the Registry of the Luxembourg District Court (where they may be inspected and where copies may be obtained) and published in the Luxembourg “Mémorial, Recueil des Sociétés et Associations” (the “Mémorial”) on 6 November 2007. They have been amended on 23 November 2011. It is registered in the “Registre du Commerce et des Sociétés” of Luxembourg under number B 133 350.

The Company is an umbrella fund and as such provides investors with the choice of investment in one or several Sub-Funds, each of which relates to a separate portfolio of transferable securities and/or other liquid financial assets permitted by law and managed within specific investment objectives.

As at 30 June 2016, two Sub-Funds were active as detailed below:

ASB AXION SICAV - Opportunity Fund ASB AXION SICAV - Kermata Fund

Detailed Share Classes active as at 30 June 2016 are listed in the “Statement of Share Statistics” and description of shares Classes are disclosed in the last prospectus.

2. Significant Accounting Policies

Presentation of financial statements

These financial statements are prepared in accordance with Luxembourg legal and regulatory requirements relating to Undertakings for Collective Investment in Transferable Securities and generally accepted accounting principles.

The financial statements reflect the Net Asset Values (“NAV”) as calculated on 30 June 2016 based on latest available market prices of the investments.

Valuation of investments and other instruments The following accounting policies apply:

Valuation of investments

Investments which are quoted or dealt in on an official stock exchange or on a Regulated Market or any Other Regulated Market are valued at the latest available prices at 1.00 pm Luxembourg time.

In the event that any assets held in a Sub-Fund’s portfolio on the relevant day are not quoted or dealt in on any stock exchange or on any Regulated Market, or on any Other Regulated Market or if, with respect of assets quoted or dealt in on any stock exchange or dealt in on any such markets, the last available price (as determined pursuant to the previous paragraph) is not representative of the fair market value of the relevant assets, the value of such assets is based on a reasonably foreseeable sales price determined prudently and in good faith by the Board of Directors of the Company.

Open-ended and closed-ended UCIs

Units or shares of open-ended UCIs are valued at their last determined and available Net Asset Value or, if such price is not representative of the fair market value of such assets, then the price is determined by the Board of Directors of the SICAV on a fair and equitable basis. Units or shares of a closed-ended UCI are valued at their last available market value.

Foreign currency conversion

Assets and liabilities expressed in currencies other than the Base Currency of the relevant Sub-Fund are converted at exchange rates prevailing as at 30 June 2016. Transactions in foreign currencies are converted into the Base Currency of the relevant Sub-Fund at exchange rates prevailing on the transaction dates.

The exchange rates used as at 30 June 2016 are as follows:

1 EUR = 1 EUR =

NOK 9.32096

AUD 1.49480

SEK 9.42022

CAD 1.44102

SGD 1.49953

CHF 1.08751

TRY 3.21451

DKK 7.43959

ASB AXION SICAV - Semi-Annual Report 2016 15

2. Significant Accounting Policies (continued)

Foreign currency conversion (continued)

Forward foreign exchange contracts

Forward foreign exchange contracts are valued at the forward rate applicable at the “Statement of Net Assets” date for the period until their maturity. Net unrealised gains and losses on forward foreign exchange contracts are recorded in the “Statement of Net Assets”.

Financial futures contracts

Financial futures contracts are valued at the quoted price available on an official stock exchange (at the pricing points as described above under “Valuation of Investments”). Initial margin deposits are made in cash upon entering into futures contract. Subsequent payments, referred to as variation margins, are made or received by the Sub-Fund periodically and are based on changes in the market value of open future contracts. Net unrealised gains and losses on financial futures contracts are recorded in the “Statement of Net Assets”. When the contract is closed, the concerned Sub-Fund records a realised gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the opening transaction.

Upfront premium Options contracts

When the Sub-Fund purchases an option with an upfront premium, it pays a premium and an amount equal to that premium is recorded as an asset. When the Sub-Fund writes an option with an upfront premium, it receives a premium and an amount equal to that premium is recorded as a liability.

The asset or liability is adjusted daily to reflect the current market value of the option contracts.

Options contracts which are quoted or dealt in on a stock exchange or on a Regulated Market or any Other Regulated Market are valued at the exchange quoted price (at the pricing points described above under “Valuation of Investments”). OTC options are marked-to-market based upon daily prices calculated by third party agents and verified against the value received from the counterparty.

If the last known prices are not representative, the valuation will be based on the potential realisation value estimated by the Board of Directors of the Company with prudence and in good faith.

If an option expires unexercised, the Sub-Fund realises a gain or loss to the extent of the premium received or paid. Premiums received or paid, net unrealised gains and losses from options are recorded in the “Statement of Net Assets” under the account balances “Upfront premium Options purchased at market value” or “Upfront premium Options written at market value”.

Futures-Style Options contracts

Futures-style options are valued at the quoted price available on an official stock exchange (at the pricing points as described above under

“Valuation of Investments”). Initial margin deposits are paid in cash upon entering into the contract. Subsequent positive or negative

cashflows, referred to as variation margins, are paid or received by the Sub-Fund periodically and are based on changes in the market value of open option contracts. When the contract is closed, the concerned Sub-Fund records a realised gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the opening transaction.

Net unrealised gains and losses on futures-style options are recorded in the “Statement of Net Assets”.

Swaps contracts

Sub-Funds may enter into different types of swaps agreements such as interest rate swaps, swaptions, inflation-linked, credit default swaps and total return swaps. Net unrealised gains and losses on swaps contracts are recorded in the “Statement of Net Assets”. Swaps are valued at fair market value as determined in good faith pursuant to procedures established by the Company.

Swaps are marked-to-market at each Net Asset Valuation calculation date. The market value is based on the valuation of elements laid down in the contract, and it is obtained from third party agents, market makers or internal models, pursuant to the procedures established by the Company.

Swing Pricing Adjustment

Since 15 December 2011, a Swing Pricing policy has been implemented to the Sub-Funds. A Sub-Fund may suffer dilution of the Net Asset Value per share in case of significant net inflows or outflow, which would force the Investment Manager to trade the Sub-Funds’ securities, thereby incurring trading costs.

The aim is to protect the interests of non-dealing shareholders by ensuring the shareholders making significant subscriptions, redemptions or conversions contribute to the cost of their transactions.

With Swing Pricing, a Sub-Fund’s Net Asset Value per share is adjusted to account for trading costs incurred where shareholders’

subscriptions, redemptions or conversions activity exceeds a Sub-Fund’s predetermined threshold. Swing Pricing is a mechanism of valuation which adjusts (swings) a Sub-Fund’s Net Asset Value per share to account for these trading costs.

The Swing Factor will not exceed 1% of the unswung Net Asset Value per Share. The Board of Directors will determine the Swing Factor for each Sub-Fund individually based on the assessment of the costs on average (bid/ask spreads, market impacts, transaction costs, commissions,

1 EUR = 1 EUR =

114.55293 JPY

8.64903 HKD 16.49793 ZAR

0.82643 GBP 1.11460 USD

ASB AXION SICAV

Notes to the Financial Statements as at 30 June 2016 (continued)

2. Significant Accounting Policies (continued)

Swing Pricing Adjustment (continued)

duties etc.) triggered by the net inflows or outflows and review the Swing Factor at least on a quarterly basis. In the event of market

developments and unforeseen circumstances that will negatively impact the market liquidity of the underlying assets of the Fund the Board of Directors may review the Swing Factor at any time in between the quarterly review cycle. The Board of Directors may determine the thresholds for the level of net inflows or outflows relevant for the application of the Swing Factor.

During the period, the Net Asset Value per share of the Sub-Funds was not subject to any Swing Pricing adjustments.

Combined financial statements

The figures of each Sub-Fund are presented in their respective Base Currency. The combined financial statements are expressed in euros.

The combined financial statements are presented for information purposes only.

3. Management, Investment Management and Distribution Fees

The remuneration of the Management Company is 0.08% per annum calculated on each Valuation Day and payable monthly in arrears on the basis of the average net assets of the relevant Sub-Fund, subject to a minimum fee of EUR 16,000 per year per Sub-Fund.

The Management Company may pay selected Dealers for nominee and other distribution services from its own assets, including past profits, and such selected Dealers may receive different levels of compensation in respect of such services. In addition, the Management Company may rebate a portion of its management fee to selected Dealers who assist in the placement of shares. No such fees shall be paid directly by the Company.

The management fee is a percentage of the Net Asset Value of each Sub-Fund; the management fee rates effectively applied as at 30 June 2016 are as follows:

The investment management fee is a percentage of the Net Asset Value of each Sub-Fund; the investment management fee rates effectively applied as at 30 June 2016 are as follows:

As of 30 June 2016, there were no distribution fees charged to the Sub-Funds.

Both management fee and investment management fees are calculated and accrued on each Valuation Day on the basis of the Net Asset Value of the Share Class and are payable monthly in arrears.

4. Depositary and Paying Agent, Administrator, Registrar and Transfer Agent Fees

The Depositary and Paying Agent, the Administrator and the Registrar and Transfer Agent receive out of the assets of the relevant Sub-Fund, a fee for their services as detailed below:

Depositary and Paying Agent: The fee is a percentage of portfolio value at each month end of the Sub-Fund. It ranges from 0.003% to 0.40%

p.a. depending on where the assets of the relevant Sub-Fund are held. The fee is calculated and accrued on each Valuation Day and is payable monthly in arrears.

Administrator: The fee for the main services provided, amounts to an annual rate of 0.01%, is calculated and accrued on each Valuation Day on the basis of the Net Asset Value of the relevant Sub-Fund. It is payable monthly in arrears.

Registrar and Transfer Agent: The main components of the compensation for the services provided are the number of the existing active share Classes, the number of clients’ accounts and the number of transactions processed.

5. Taxation

In accordance with the legislation currently prevailing in Luxembourg, the SICAV is not subject to any taxes on income or capital gains. The SICAV is subject to a subscription tax “Taxe d’Abonnement”, which amounts to an annual rate of 0.05% based on the Net Asset Value of each Sub-Fund at the end of each calendar quarter, calculated and paid quarterly. However, this tax is reduced to 0.01% for Net Asset Value related to share classes only aimed at eligible institutional investors and for Sub-Funds whose sole object is collective investment in money market instruments and in deposits with credit institutions.

Additionally, the value of the assets represented by Units held in other UCIs, provided such Units have already been subject to the subscription tax provided for in Article 174 of the amended law of 17 December 2010 relating to Undertakings for Collective Investments, is exempted from this subscription tax.

Interest and dividend income received by the SICAV may be subject to non-recoverable withholding tax in the countries of origin.

Sub-Fund Class Management fee rate

ASB AXION SICAV - Opportunity Fund Class A 0.08%

ASB AXION SICAV - Kermata Fund Class A 0.08%

Sub-Fund Class Investment fee rate

ASB AXION SICAV - Opportunity Fund Class A 1.50%

ASB AXION SICAV - Kermata Fund Class A 0.60%

ASB AXION SICAV

Notes to the Financial Statements as at 30 June 2016 (continued)

ASB AXION SICAV - Semi-Annual Report 2016 17

6. Changes in Portfolios

A list of changes in the portfolio for the period ended 30 June 2016 is available at the registered office of the SICAV.

7. Outstanding Derivatives Contracts

All details relating to the outstanding Derivatives Contracts as at 30 June 2016 are presented with the Sub-Fund’s Schedule of Investments.

8. Proxy Voting Policy

The investment manager has implemented a Proxy Voting Policy to enable the exercise of voting rights attached to the portfolio securities. The investment manager aims to cast proxy votes in a manner consistent with the best interest of the SICAV. In voting proxies, consideration is given to the economic effect of the proposal on the value of portfolio holdings on both the short and long-term impact. In general, the investment manager believes that supporting the company’s strategy and voting “for” management’s proposals builds portfolio value. In some cases, however, proposals set forth by management may have a negative effect on that value, and consideration of this may affect the votes cast by the investment manager.

9. Class Actions

A class action is an action that allows to a group of investors to claim from a company or public institution to obtain financial compensation in the event of losses.

The Management Company has engaged the services of two independent companies to assist in the class action activities and ensure a global coverage.

The proceeds received from these class actions, if any, are booked in the respective Sub-Funds’ Net Asset Values.

ASB AXION SICAV

Notes to the Financial Statements as at 30 June 2016 (continued)

Registered Office of the SICAV

8-10, rue Jean Monnet L-2180 Luxembourg Grand Duchy of Luxembourg

Corporate Governance/ALFI Code of Conduct

The SICAV is subject to corporate governance based, inter alia, on:

1. Its obligations as defined by the amended Law of 17 December 2010 relating to Undertakings of Collective Investment of the Grand Duchy of Luxembourg and circulars issued by the Commission de Surveillance du Secteur Financier (“CSSF”) which complements the regulatory framework.

2. Its Articles of Incorporation which are available for inspection at the registered office of the SICAV and at the Luxembourg corporate and trade register, Registre de Commerce et des Sociétés (“RCSL”).

3. The obligations in respect of the management of the Company, for which the SICAV has appointed Pioneer Asset Management S.A.

4. The Association of the Luxembourg Fund Industry (“ALFI”) code of conduct, which the Management Company has voluntarily adopted.

Board of Directors of the SICAV

Chairman

Mr Alberto Lotti

Chief Executive Officer of Axion Swiss Bank S.A., residing in Switzerland

Members

Mr Giampiero Marangio

Director of Axion Swiss Bank S.A., residing in Switzerland

Mr Enrico Turchi

Managing Director of Pioneer Asset Management S.A., residing in Luxembourg

Conducting Officers of the Management Company

Within the meaning of Article 102 (1) c) of the 2010 Law, the Management Company has appointed the following Conducting Officers:

Mr Marco Malguzzi, Head of Outsourcing Control of the Management Company and residing in Luxembourg Mr Andreas Roth, Global Head of Investment Risk, Pioneer Investments, professionally residing in Luxembourg Mr Enrico Turchi, Managing Director of the Management Company and residing in Luxembourg

Main responsibilities of the Conducting Officers are to ensure:

• the implementation of strategies and guiding principles for central administration and internal governance through written internal policies and procedures

• the implementation of adequate internal control functions

• that the Management Company has technical infrastructure and human resources adequate to perform its activities.

Management Company and Domiciliary Agent

Pioneer Asset Management S.A.

8-10, rue Jean Monnet L-2180 Luxembourg Grand Duchy of Luxembourg

Administrator, Registrar and Transfer Agent

Société Générale Bank & Trust

(Operational center), 28-32, Place de la gare L-1616 Luxembourg Grand Duchy of Luxembourg

Management and Administration

ASB AXION SICAV - Semi-Annual Report 2016 19

Depositary and Paying Agent

Société Générale Bank & Trust 11, Avenue Emile Reuter L-2420 Luxembourg Grand Duchy of Luxembourg

Investment Manager and Distributor

Axion Swiss Bank S.A. ⁽¹⁾

via Emilio Bossi 1 CH-6901 Lugano Switzerland

Axion Swiss Bank S.A. ⁽²⁾ viale Stefano Franscini 22 CH-6901 Lugano Switzerland

Auditor / Cabinet de révision agréé

Deloitte Audit Société à responsabilité limitée 560, rue de Neudorf

L-2220 Luxembourg Grand Duchy of Luxembourg

Legal Advisor

Arendt & Medernach 41A, avenue J.F. Kennedy L-2082 Luxembourg Grand Duchy of Luxembourg

Management and Administration (continued)

(1) Until 29 February, 2016.

(2) From 1 March, 2016.

Contact Information

Pioneer Asset Management S.A.

UXH-HDQ0RQQHW L-2180 Luxembourg Tel. +352 42120-1 Fax. +352 42120-8300 www.pioneerinvestments.eu www.pioneerinvestments.com