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SPARX FUNDS PLC

ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2020

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Contents Company Information 2 Directors’ Report 3 Investment Advisor’s Report 10 Statement of Depositary’s Responsibilities and Depositary’s Report 19 Independent Auditor’s Report 20 Statement of Financial Position 24 Statement of Comprehensive Income 30 Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares

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Statement of Cash Flows 40 Notes to the Financial Statements 44 Schedule of Investments 95 Unaudited Changes in Composition of Portfolio 114 Unaudited Disclosure of Remuneration Policy 133

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COMPANY INFORMATION Registered Office: 33 Sir John Rogerson’s Quay, D02 XK09 Dublin 2, Ireland

DIRECTORS DISTRIBUTORS Mr. Brian Wilkinson (Independent Non-executive) SPARX Overseas Ltd. Mr. Paul McNaughton (Chairman, Non-executive) 37 Front Street Mr. Brian Morikuni (Non-executive) (resigned on 30 March 2020)

Hamilton HM11 Bermuda

Mr. Alan Ng (Non-executive) Ms. Satomi Fujii (Non-executive) (appointed on 26 March 2020)

Bridge Fund Management Limited* Ferry House

48-53 Mount Street Lower INVESTMENT ADVISORS D2 PT98 SPARX Asset Management Co., Ltd Dublin 2 Shinagawa Season Terrace 6F Ireland 1-2-70 Konan Minato-ku LEGAL ADVISOR AS TO IRISH LAW Tokyo, 108-0075 Dillon Eustace Japan 33 Sir John Rogerson’s Quay D02 XK09 SPARX Asia Investment Advisors Limited Dublin 2 1706, 17th Floor, Central Plaza Ireland 18 Harbour Road Wanchai SECRETARY Hong Kong Tudor Trust Limited 33 Sir John Rogerson’s Quay DEPOSITARY D02 XK09 HSBC France, Dublin Branch Dublin 2 1 Grand Canal Square Ireland Grand Canal Harbour D02 P820 MANAGER Dublin 2 Bridge Fund Management Limited* Ireland Ferry House 48-53 Mount Street Lower AUDITORS D2 PT98 Grant Thornton Dublin 2 13-18 City Quay Ireland D02 ED70 Dublin 2 Ireland ADMINISTRATOR HSBC Securities Services (Ireland) DAC 1 Grand Canal Square Grand Canal Harbour D02 P820 Dublin 2 Ireland *Bridge Fund Management Limited was appointed as a Distributor and Manager with effect from 22 April 2020.

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DIRECTORS’ REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

The Directors submit their Annual Report for the year ended 31 October 2020. Principal Activities and Business Review

SPARX Funds Plc (the “Company”) was incorporated on 16 September 2003 and was authorised by the Central Bank of Ireland (“the Central Bank”) pursuant to the provisions of the European Communities (Undertakings for Collective Investment in Transferable Securities) (“UCITS”) (Amendment) Regulations, 2016, and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertaking for Collective Investments in Transferable Securities) Regulations 2019 (the “Central Bank UCITS Regulations”). The Company is an umbrella fund. As of the date of this report the Company comprised four Sub-Funds, SPARX Japan Fund, SPARX Japan Smaller Companies Fund, SPARX Japan Sustainable Equity Fund and SPARX OneAsia Growth Equity Fund (which commenced trading on 27 June 2005, 28 September 2007, 25 April 2018 and 16 November 2018 respectively), in respect of which twenty classes of shares have been offered for investment by SPARX Japan Fund , eighteen classes of shares have been offered for investment by SPARX Japan Smaller Companies Fund, seventeen classes of shares have been offered for investment by SPARX Japan Sustainable Equity Fund and three classes of shares have been offered for investment by SPARX OneAsia Growth Equity Fund. SPARX OneAsia All Cap Fund terminated on 30 June 2019. Financial statements presented for this Sub-Fund as of 31 October 2020 contains the remaining balances post termination. All the share classes in the Sub-Funds have been delisted from the Euronext Dublin as of 20 March 2019. As of 31 October 2020, following share classes of each Sub-Funds are on offer for subscription.

SPARX Japan Fund SPARX Japan Smaller Companies Fund* JPY Institutional A Class Shares JPY Institutional A Class Shares JPY Institutional B Class Shares JPY Institutional B Class Shares JPY Institutional C Class Shares JPY Institutional C Class Shares JPY Institutional D Class Shares JPY Institutional D Class Shares USD Hedged Class A Shares USD Hedged Class A Shares USD Hedged Class B Shares USD Hedged Class B Shares USD Hedged Class C Shares USD Hedged Class D Shares USD Hedged Class D Shares EUR Hedged Class A Shares USD Institutional E Class Shares EUR Hedged Class B Shares EUR Hedged Class A Shares EUR Hedged Class D Shares EUR Hedged Class B Shares CHF Hedged Class A Shares EUR Hedged Class C Shares CHF Hedged Class B Shares CHF Hedged Class A Shares GBP Hedged Class A Shares CHF Hedged Class B Shares GBP Hedged Class B Shares GBP Hedged Class A Shares GBP Hedged Class F Shares GBP Hedged Class B Shares GBP Hedged Class G Shares GBP Institutional C Class Shares GBP Institutional D Class Shares GBP Institutional D Class Shares GBP Institutional E Class Shares GBP Institutional E Class Shares GBP Institutional F Class Shares *The fund is no longer on offer for subscription as the Board of Directors agreed to liquidate the fund.

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DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) Principal Activities and Business Review (continued)

SPARX Japan Sustainable Equity Fund SPARX OneAsia Growth Equity Fund JPY Institutional A Class Shares USD A Class Shares JPY Institutional B Class Shares USD B Class Shares JPY Institutional C Class Shares USD C Class Shares JPY Institutional D Class Shares JPY Institutional E Class Shares USD Hedged Class A Shares USD Hedged Class B Shares USD Hedged Class C Shares USD Hedged Class D Shares EUR Hedged Class D Shares GBP Hedged Class H Shares* GBP Hedged Class C Shares GBP Hedged Class F Shares GBP Hedged Class G Shares GBP Institutional D Class Shares GBP Institutional E Class Shares GBP Institutional F Class Shares * launched on 14 May 2020

Review of Development of the Business and Future Developments

The Directors believe that a key indicator of the performance of the Company is the change in Net Asset Value for the year. A detailed review of the business and future developments is included in the Investment Advisor's Report.

Investment/Risk Management Objectives and Policies

The Company seeks to provide investors with capital appreciation by investing in undervalued Japanese equities. Investment in the Company carries with it a degree of risk including, but not limited to, the risks referred to in the prospectus and Note 13 of these financial statements

Performance

The financial position and results for the year are set out on pages 24 and 30.

Dividends

JPY96,293,728 (2019: JPY21,583,372) of dividend was paid on the SPARX Japan Fund and JPY50,825,976 (2019: Nil) on the SPARX Japan Sustainable Equity Fund during the year.

Significant Events

Significant events are outlined in note 20 on page 94. Subsequent Events

Subsequent events are outlined in note 21 on page 94.

Directors

The Directors at the date of this report are listed on page 2. All of the Directors served for the entire year. Directors’ and Secretary’s Interests

The Directors and Secretary had no interest in the Company at 31 October 2020.

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DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) Directors’ Responsibilities

The Directors are responsible for preparing the Directors’ Report and the financial statements in accordance with Irish law and regulations. Irish company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the assets, liabilities and financial position of the company as at the financial year end date and of the profit or loss of the Company for the financial year and otherwise comply with the Companies Act 2014. In preparing these financial statements, the Directors are required to: select suitable accounting policies and then apply them consistently; make judgments and accounting estimates that are reasonable and prudent; state whether the financial statements have been prepared in accordance with applicable accounting standards,

identifying those standards and note the effect and the reason for any material departure from those standards; 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 the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The Directors are required to entrust the assets of the Company to the Depositary for safekeeping. In carrying out this duty, the Company has delegated custody of the Company’s assets to HSBC France, Dublin Branch , 1 Grand Canal Square, Grand Canal Harbour, D02 P820, Dublin 2, Ireland.

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 Acts 2014 and the European Communities (Undertaking for Collective Investment in Transferable Securities) Regulations 2011 (as amended), (the “UCITS Regulations”). They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Books of Account

To ensure that proper books of account are kept in accordance with Section 281 to 285 of the Companies Act, 2014, the Directors of the Company have employed HSBC Securities Services (Ireland) DAC (the “Administrator”). The books of account are located at the offices of the Administrator as shown on page 2.

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DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) Directors’ Responsibilities (continued) Connected Parties

In accordance with the requirements of the Central Bank UCITS Regulations, all transactions between the Company and the management company or depositary of a UCITS; and the delegate or sub-delegates of such a management company or depositary (excluding any non-group company sub-custodians appointed by a depositary); and any associated or group companies of such a management company, depositary, delegate or sub-delegate (“connected persons”) must be carried out as if negotiated at arm’s length and be in the best interests of shareholders. The Directors are satisfied that there are arrangements in place to ensure that the obligations set out in the Central Bank UCITS Regulations are applied to all transactions with connected parties and transactions with connected parties entered into during the period complied with the obligations set out in the Central Bank UCITS Regulations. Corporate Governance At present, the Company is subject to corporate governance practices imposed by:

(i) The Irish Companies Act 2014 which is available for inspection at the registered office of the Company; and may also be obtained at http://www.irishstatutebook.ie/eli/acts.html.

(ii) The Articles of Association of the Company which are available for inspection at the registered office

of the Company at 33 Sir John Rogerson’s Quay, D02 P820, Dublin 2, Ireland and at the Companies Registration Office in Ireland;

(iii) The Central Bank of Ireland in their UCITS Regulations and Guidance Notes which can be obtained from the Central Bank of Ireland website at: - http://www.centralbank.ie/regulation/industry-market-sectors/funds/ucits/guidance and are available for inspection at the registered office of the Company, as applicable for the year end; and

The management body of the Company is comprised of a board of four non-executive Directors, two of whom are Irish, one is Chinese and one is Japanese. Two of the Directors are independent including the Chairman. The Board of Directors has voluntarily adopted the Corporate Governance Code for Irish Domiciled Collective Investment Schemes as issued by the Irish Funds (“IF”), as the Company’s corporate governance code. The Board of Directors has assessed the measures included in the IF Code as being consistent with its corporate governance practices and procedures for the financial year. The Board of Directors is responsible for establishing and maintaining adequate internal control and risk management systems for the Company. Such systems are designed to manage rather than eliminate the risk of error or fraud and can only provide reasonable and not absolute assurance against material misstatement or loss. The Board of Directors has procedures in place to ensure all relevant books of account are properly maintained and are readily available, including production of the Company’s annual and half-yearly financial statements. The annual financial statements of the Company are required to be approved by the Board of Directors of the Company and the annual and half yearly financial statements of the Company are required to be filed with the Central Bank of Ireland. The Company has appointed an Audit Committee during the year. The annual financial statements are required to be audited by independent auditors who report annually to the Audit Committee on their findings. The Audit Committee consists of Brian Wilkinson and Paul McNaughton.

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DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

Corporate Governance (continued) The Board evaluates and discusses significant accounting and reporting issues as the need arises. The Board of Directors has appointed HSBC Securities Services (Ireland) DAC as its Administrator. The Administrator maintains the books and records of the Company. The Administrator is authorised and regulated by the Central Bank of Ireland and must comply with the rules imposed by the Central Bank of Ireland. From time to time the Board also examines and evaluates the Administrators financial accounting and reporting routines and monitors and evaluates the external auditors’ performance, qualifications and independence. The convening and conduct of shareholders’ meetings are governed by the Articles of Association of the Company and the Companies Acts. Although the Directors may convene an extraordinary general meeting of the Company at any time, the Directors are required to convene an annual general meeting of the Company within eighteen months of incorporation and fifteen months of the date of the previous annual general meeting thereafter. Shareholders representing not less than one-tenth of the paid up share capital of the Company may also request the Directors to convene a shareholders’ meeting. At least twenty one days’ notice must be given for annual general meetings and meetings convened for the passing of a special resolution. Fourteen days’ notice must be given for other general meetings. However, all the shareholders who are entitled to attend and vote and the auditors can agree for a shorter notice. Two members present either in person or by proxy constitutes a quorum at a general meeting provided that the quorum for a general meeting convened to consider any alteration to the class rights of shares is two shareholders holding or representing by proxy at least one third of the issued shares of the relevant fund or class. Every holder of participating shares or non-participating shares present in person or by proxy who votes on a show of hands is entitled to one vote. On a poll, every holder of participating shares present in person or by proxy is entitled to one vote in respect of each share held by him and every holder of non-participating shares is entitled to one vote in respect of all non-participating shares held by him. The Chairman of a general meeting of the Company or at least two members present in person or by proxy or any holder or holders of participating shares present in person or by proxy representing at least one tenth of the shares in issue having the right to vote at such meeting may demand a poll. Shareholders may resolve to sanction an ordinary resolution or special resolution at a shareholders’ meeting. An ordinary resolution of the Company or of the shareholders of a particular Sub-Fund or class requires a simple majority of the votes cast by the shareholders voting in person or by proxy at the meeting at which the resolution is proposed. A special resolution of the Company or of the shareholders of a particular Sub-Fund or class requires a majority of not less than 75% of the shareholders present in person or by proxy and voting in general meeting in order to pass a special resolution including a resolution to amend the Articles of Association. Unless otherwise determined by an ordinary resolution of the Company in a general meeting, the number of Directors may not be less than two nor more than nine. Currently the Board of Directors of the Company is composed of four directors, being those listed in the directory in these financial statements. A Director may, and the company secretary of the Company on the requisition of a Director will, at any time summon a meeting of the Directors. Questions arising at any meeting of the Directors are determined by a majority of votes. In the case of an equality of votes, the Chairman has a second or casting vote. The quorum necessary for the transaction of business at a meeting of the directors is two. There is an audit committee as a sub-committees of the Board. The Audit Committee consists of Brian Wilkinson and Paul McNaughton.

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DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) COVID An outbreak of respiratory disease caused by a novel coronavirus designated as COVID has resulted in, among other things, extreme volatility in the financial markets and severe losses, reduced liquidity of many instruments, significant travel restrictions, significant disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, service and event cancelations, reductions and other changes, strained healthcare systems, as well as general concern and uncertainty. The impact of the COVID outbreak has negatively affected the global economy, the economies of individual countries, and the financial performance of individual issuers, sectors, industries, asset classes, and markets in significant and unforeseen ways. Pandemics may also exacerbate other pre-existing political, social, economic, market and financial risks. The COVID pandemic and its effects may be short term or may result in a sustained economic downturn or a global recession, ongoing market volatility and/or decreased liquidity in the financial markets, exchange trading suspensions and closures, higher default rates, domestic and foreign political and social instability and damage to diplomatic and international trade relations. The foregoing could impair the Funds’ ability to maintain operational standards (such as with respect to satisfying redemption requests), disrupt the operations of the Funds’ service providers, adversely affect the value and liquidity of the Funds’ investments, and negatively impact the Funds’ performance and your investment in the Funds. The pandemic is determined to be a non-adjusting post balance sheet event, and therefore no adjustments have been made to the financial statements at this time.

Auditors Grant Thornton has indicated their willingness to remain in office in accordance with Section 383(2) of the Companies Act 2014. Directors Compliance Statement The Directors acknowledge that they are responsible for securing compliance by SPARX Funds Plc (hereinafter called the “Company”) with its Relevant Obligations as defined with the Companies Act 2014 (hereinafter called 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 (including reliance on the advice of persons employed by the Company and external legal and tax advisers as considered appropriate from time to time) and that they have reviewed the effectiveness of these arrangements or structures during the financial year to which this Report relates.

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SPARX JAPAN FUND

INVESTMENT ADVISOR’S REPORT

FOR THE YEAR ENDED 31 OCTOBER 2020 Market Commentary During the twelve-month period ended October 31, 2020, the Japanese stock market, as measured by the TOPIX index with dividends of all shares traded on the first section of the Tokyo Stock Exchange (TSE), declined by -2.95%. My portfolio approach is to construct a concentrated book of great Japanese global companies and hold it for the long term to capture the capital compounding effect. The term “great companies” implies not just businesses with sustainable high returns on invested capital but also those that can grow consistently regardless of macroeconomic conditions. I describe it as “inherently safe and sound business”. In our portfolio, you will find stable growing “defensive” consumer stocks, economically sensitive but high quality industrials, recession-resistant healthcare and internet stocks as well as companies with diversified business portfolios. The portfolio aim to blend these types of businesses in the best way possible such that it can be expected to perform better than average in both strong and weak times. This serves as our first line of defense, if you will, against the downside risk to the Fund’s performance in absolute as well as relative terms. Despite our effort of selective stock picking, however, our portfolio does get caught up in unexpected macro events. For example, a health crisis like the current virus outbreak hits not just economically sensitive companies but also defensive consumer businesses as consumers curtail their spending even for small-ticket daily essentials. When this happens, I turn to another line of defense for limiting the downside of the portfolio, i.e. the ability of our companies to overcome external headwinds. Here, I rely on management track records during tough economic conditions in the past. Revisiting how the business fared during and after the 2008 financial crisis, or the Asian Currency Crisis of the late 1990s or the 2001 dot-com bubble crash is a very helpful exercise. It gives us a clue of how the business will likely perform in the future when another crisis emerges. Through this, I find comfort in maintaining the existing holdings even when the stock price is under pressure for a prolonged period. Fund Commentary For the twelve-month period ended October 31, 2020, the SPARX Japan Fund gained by +7.54% (net of fees, JPY A share class). Please find below commentaries on the best and worst performers. Among positive contributors in the Fund during the period were the telecom and Internet conglomerate SOFTBANK GROUP CORPORATION (9984), the supplier of factory automation related sensors KEYENCE CORPORATION (6861), and SONY CORPORATION (6758), a diversified consumer and professional electronics, gaming, entertainment and financial services conglomerate. SOFTBANK’s market cap has swelled thanks to its unprecedented share repurchasing program as well as continuous rally in shares of its key investment holdings. Keyence contributed positively due to the expectation of growth on global sales which is smaller than its competitor. Shares of SONY CORPORATION performed well under Chairman Yoshida who articulates that the most important area of focus in their current 3-year business plan is to further strengthen its “recurring” business model to achieve stable revenue and profit base. The main detractors to the Fund’s performance were MITSUBISHI UFJ FINANCIAL GROUP, INC. (8306), the gigantic financial services provider, MITSUBISHI CORPORATION (8058), the largest trading company in Japan, and the high performance running shoes maker ASICS CORPORATION (7936). MITSUBISHI UFJ’s share price declined as the bank industry was mired in COVID-led downward economic spiral this year after an already challenging period of 2018-2019 exacerbated by the US-China trade tensions. I spotted more attractive investment opportunities created by the extreme market volatility in early 2020, and it led me to exit the position as a funding source. MITSUBISHI CORPORATION performed poorly because its businesses are exposed to global macro trends, its earnings were affected by the COVID-induced economic slump this year. Shares of Asics continued to lose ground on concerns of market share losses in its key markets such as Europe, the US and China. The fund continues to hold ASICS and MITSUBISHI CORPORATION.

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SPARX JAPAN FUND


FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) Fund Commentary (continued) The Fund seeks long term capital appreciation by investing in Japanese companies regardless of market capitalization. I screen for companies that I believe have strong businesses and management, and are traded at an attractive price. Through in-depth and rigorous analysis and on-site research, I identify stocks with a large “value gap”. The portfolio is limited to my best ideas and maintains a concentrated number of holdings. 17 February 2021 SPARX Asset Management Co. Ltd

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SPARX JAPAN SMALLER COMPANIES FUND


FOR THE YEAR ENDED 31 OCTOBER 2020 Market Commentary For the 12-month period ended October 31, 2020, the Russell/Nomura Small Cap™ Index returned -4.54%, underperforming the Tokyo Stock Price Index (TOPIX) Total Return, which returned -2.95%, for the same period. The Japanese stock market, which fell sharply in early 2020 under the worldwide spread of COVID-19, marked a turnaround in April, as cyclicals rose on the hope that economic activity would restart in the West. Speculation continues to remain robust on the back of improvements in various economic indicators. However, I must note that the speculation is partly biased, fueled by speculation in some sectors and emerging equities. It is unavoidable that, under deteriorating market sentiment, investors’ attention is focused on particular sectors. However, these sectors include stocks that demonstrate a growing gap in expected value and actual performance. On the other hand, although there are unpredictable fluctuation factors such as coronavirus infection and progress of vaccine development, it is also a fact that social activities are on a recovery trend. As always, the Fund’s strategy is to focus on attractive investment opportunities that the market dislikes or neglects due to various factors. Fund Commentary My investment philosophy remains the same and is very simple: buying good companies at attractive prices. Namely, by leveraging a medium- to long-term perspective, I look to invest in good companies that have opportunities for future growth, even if the market ignores or dislikes them. By “good” companies, I mean those that can increase their intrinsic value as time goes by, because they expand their markets and grow by introducing new products and services. On the other hand, I assume these companies will undergo significant share price fluctuations due to short-term weak earnings, overall market declines, and other varied factors. This can cause significant gaps between my estimate of intrinsic value and market prices, offering attractive investment opportunities. It is worth noting that I focus on growth in intrinsic value. A typical value investor looks to buy stocks that are undervalued relative to their intrinsic value. However, when investors do not anticipate growth in intrinsic value, they may end up getting caught in a value trap due to the lack of reevaluation. To avoid such circumstances, I believe that it is critical to evaluate companies according to the accuracy of growth forecasts over the medium to long term. Understanding growth strategies that are not explicitly stated to require proper communication with management and IR representatives, based on an accurate knowledge of the business. There are many businesses in Japan’s smaller cap universe and due to these large numbers, many investors appear to stop at a short-term, superficial analysis. I can logically infer this from the content of questions asked by other investors during informal meetings and the responses from companies during our individual sessions. I cannot emphasize enough what the most crucial aspect of corporate analysis is, through detailed research, to understand the essential growth strategies and roadmaps by which target companies operate their businesses to achieve their goals of becoming whatever type of company they aim to be. Especially in small and mid-caps, many companies are in the process of growing, and the majority of their earnings are often in unique products with limited availability. These firms must also forecast sales trends in their current key products to grasp short-term earnings trends. Moreover, I believe that sharing with management the future directions that their companies will take is a more important part of my medium- to long-term investment strategy. After performing such analyses, confirming the presence of such trends is the foundation for making long-term investment decisions.

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FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) Fund Commentary (continued) For the twelve-month period ended October 31, 2020, the SPARX Japan Smaller Companies Fund gained by +2.77% (net of fees, JPY A share class). Please find below commentaries on the best and worst performers. Among the positive contributors were my investments in one of the major telecommunications construction companies NEC NETWORKS & SYSTEM INTEGRATION CORPORATION (1973), a major home video game software development company CAPCOM CO- LTD (9697), and a software developer JUSTSYSTEMS CORPORATION (4686). NEC NETWORKS & SYSTEM INTEGRATION CORPORATION (1973) is one of the major telecommunications construction companies under the NEC umbrella but with a strong sense of independence. In conjunction with the reorganization, I expect an increase in added value through upsells of various services that leverage its traditional customer relationships as well as improving the productivity of the construction business. In the fiscal year, thanks to robust IT investment demand backed by work style reforms, I believe its earnings and stock price rose due to capturing a new demand related to the COVID-19 crisis, such as telework and the digitalization in schools. CAPCOM CO.,LTD. (9697) is a major game developer. Shifting the distribution of games from packaging to downloading, I expected the profit growth backboned by its high creativity of intellectual property. The share price rose due to launch of well-known titles, adoption of digitalization of sales and increasing new demands of staying home. JUSTSYSTEMS CORPORATION (4686) is a software developer. Since the company became a subsidiary of KEYENCE in 2009, it has continuously expanded its earnings in both existing businesses such as ATOK, a kana-kanji conversion software, and new businesses like SMILE-ZEMI, an educational service using tablet terminals for children. Although the company has been passive for IR activities, I have invested in it due to anticipation of the high growth potential of new lineups. Increases in users of SMILE-ZEMI as well as IT investment demand in relation to the revision of the Course of Study led to the company’s earnings growth. Meanwhile, stocks that affected the performance negatively included the number one industrial sewing machine for apparel in the world JUKI CORP(6440), LIFULL Co,- Ltd (2120), the operator of the real estate information search site "Homes", and one of the top three manufacturer of piston ring for the Japanese companies and world leader in cylinder liner TPR Co, LTD.(6463). JUKI CORPORATION (6440) is the world’s largest industrial sewing machine supplier. Labor-intensive sewing business is one of the best beneficiary of automation amid rising labor costs in emerging markets. Thanks to the company’s broad product lineups and strong business proposal capability, my initial expectation was to see an increase of sales and expansion of businesses. During the fiscal year, however, in response to a decline in demand for capital investment particularly in China, there was a sharp drop in the share price, and thus I divested entire JUKI positions in this period. LIFULL Co., Ltd. (2120) is a media operator for real estate. I focused on new business opportunities in the real estate industry, where digitization would go forward. In the fiscal year, the share price declined due to a decrease in traffic caused by changes in Internet search engine algorithms and an anxious slowdown in profit growth due to an increase in upfront investment in new businesses. I divested entire FIFULL positions in this period. TPR CO., LTD. (6463) is an automaker engaged in engine parts. I expect to see an increase of its market share, benefiting from demand for improved fuel efficiency. Due to sluggish demand from local Chinese and European and U.S. automobile manufacturers, and concerns about a decline in automobile demand following the spread of the COVID-19, it deteriorated the Fund’s performance.

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INVESTMENT ADVISOR’S REPORT FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

Fund Commentary (continued) The rampant spread of COVID-19 has brought massive changes in our behavior, while also dealing a huge blow to socioeconomic activity. The effect differs, depending on sector and with no single pattern, such as the severe impact to tourism and events, in contrast to e-commerce, which has instead seen an increase in demand. This situation has been throwing latent issues into sharp relief in various industries. Sectors that benefit from these problems tend to garner attention in the stock market, but I also think those, which can mount rapid responses to problems and be flexible in changing their business portfolios, will similarly present attractive investment opportunities. I continue to take a disciplined approach to discovering good investment stocks without being influenced by short-term market trends. 17 February 2021 SPARX Asset Management Co. Ltd

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SPARX JAPAN SUSTAINABLE EQUITY FUND


FOR THE YEAR ENDED 31 OCTOBER 2020 Market Commentary During the twelve-month period ended October 31, 2020, the Japanese stock market, as measured by the TOPIX index with dividends of all shares traded on the first section of the Tokyo Stock Exchange (TSE), declined by -2.95%. During this fund fiscal year, the Japanese stock market experienced sharp decline with the escalation of risk off sentiment due to the worldwide spread of COVID-19 and rallied after a sharp decline. The reason for this shift appears to be two-fold: First, the market expects to see proactive countermeasures against COVID-19 worldwide. Second, it awaits the economic recovery that should coincide with the infection’s containment and the lifted state of emergency in Japan. While economic indicators were indeed grim, they seemed to have bottomed out in April after which analysts began to gauge which indicators might show signs of recovery. Despite of US–China relations triggered by tighter controls in Hong Kong and fears of COVID-19 infections, rising expectations for the development of a vaccine, hopes that corporate earnings had bottomed out, and relief from continued monetary easing were among the factors that fueled the market rebound. The market was bullish about Prime Minister Abe’s resignation, the appointment of the new Prime Minister Suga, and the government policy continuity, boosting the rise even further. Cyclicals and financials were among the stocks that drove trading amid a sense that they were undervalued. Small-caps also outperformed large-caps due to a sense that the former were finally beginning to pick up steam. Fund Commentary For the twelve-month period ended October 31, 2020, the SPARX Japan Sustainable Equity Fund gained by +9.81% (Note: JPY B Share Class with the inception date of December 13, 2018). Please find below commentaries on the best and worst performers. Among the positive contributors were investments in solar power business contractor WEST HOLDINGS CORPORATION(1407), logistics service provider SG HOLDINGS CO.,LTD.(9143), and SONY affiliated information provider for medical professionals M3, Inc.(2413). Shares of WEST HOLDINGS performed well because Ministry of Economy, Trade and Industry (METI) has started to review transmission line usage rules for the purpose of promoting renewable energy. Shares of SG HOLDINGS have done well. The company announced that it will review its capital relationship with HITACHI TRANSPORT SYSTEM, LTD., and the stock price rose in anticipation of increased management freedom. COVID-led situation pushed M3 share price as pharmaceutical companies shift to online marketing in earnest. Meanwhile, stocks that affected the performance negatively included parking and car-sharing operator PARK24 CO., LTD. (4666), a retail store and credit card operator MARUI GROUP CO., LTD.(8252), and mega insurance company TOKIO MARINE HOLDINGS, INC.(8766). Under COVID-19 situation, demand for parking lots and shopping decreased affected share prices of PARK24 and MARUI GROUP. TOKIO MARINE HOLDING’s share price declined due to growing concerns about increased insurance payments for losses of companies that have suspended their business under the impact of COVID-19.

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FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) Outlook My team and I currently focus on what policies are in place to combat the world's serious issue of climate change, and what companies are doing in response. One measure that could be implemented to rein in climate change is to reduce the amount of fossil fuels used in power generation and thereby reduce the amount of greenhouse gas emissions. Following the tsunami after the Great East Japan Earthquake in 2011, all nuclear power plants in Japan were shut down, and energy dependence on fossil fuels increased as a result. We believe that correcting this power generation configuration is a major issue. Coal-fired power plants in particular generate a large amount of greenhouse gas emissions; they comprised 32% of power plants in 2017. We think lowering this figure should be a priority, while it should also be a priority to raise the percentage of renewable energy power plants, standing at 16% in 2019. Against this background, it seems the time has come to accelerate such a shift: an example is that METI started this July to talk more about retiring low-efficiency fossil-fuel power plants than it has in the past. To better understand the direction of changes in energy policy and in the power generation system from the strategy’s perspective, we have been conducting a broad survey of related companies. As a result, we are gaining a better grasp of the situation and also focusing on finding companies that could make these changing circumstances into good business opportunities. A positive trend is in the growth of corporations that are treating renewable energy use as a crucial corporate policy. To increase the proportion of renewable energy used, energy producers need to expand their power generation and transmission capacities in a balanced manner. Some renewable energy producers have opined that the number of available connections to the power grid is becoming a bottleneck to further production, so the ideal outcome would be to develop a more advanced power grid. For instance, there are promising developments in power grids, including microgrids, designed to leverage the benefits of distributed power sources, which is one of the unique features of renewable energy. Another promising development is in virtual power plants (VPPs), which utilize electricity storage systems. Therefore, by investigating operators involved in this progress, we would like to discover firms that are discussing better forms of power grids and converting these ideas into business opportunities. Following the lead of European countries, Asia and the US are starting to actively address climate change. In Japan, the Ministry of the Environment and the Japanese Business Federation (Keidanren) issued a joint announcement of their agreement to realize a carbon-free society. The agreement lays the foundation for a partnership in realizing the Paris Agreement and promoting ESG financing. Currently. Japan’s climate change measures are not as advanced as those of other countries. Therefore, we hope to see a reevaluation of the Japanese economy’s sustainability once the public and private sectors work together to accelerate the impact of such measures. They will have wide-ranging effects across the entire economy, so we will include in our research a focus on climate change-related business opportunities and risks among all industries, not just those directly impacted like the energy sector. Lastly, with the resignation of Prime Minister Abe and the appointment of the new Prime Minister Suga, we will also study the medium- to long-term stock market impact of the new administration’s policies, especially regarding its digital strategy. My team and I will continue pursuing the goal of choosing excellent investments and, as a shareholder, engage with companies to help them build a better society. At the same time, we also pursues high-quality performance based on the standards of the Japanese Stewardship Code and the UN-backed Principles for Responsible Investment (PRI). 17 February 2021 SPARX Asset Management Co. Ltd

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SPARX ONEASIA GROWTH EQUITY FUND


FOR THE YEAR ENDED 31 OCTOBER 2020 Performance review During the twelve-month ended 31st October 2020, we have experienced an unprecedented circumstance with COVID-19 globally, as well as volatility and polarization between winners and losers in the market. Under such a circumstance, the Fund gained +22.5%, outperforming +15.3% gain of Asia ex-Japan market as measured by MSCI AC Asia ex Japan Net Total Return USD Index (AeJ Index). The positive contributors were mostly internet and healthcare related stocks, including Sea Ltd., Top Glove, Shandong Weigao Group Medical, and Shenzhen Mindray Bio-Medical. COVID-19 brings new business opportunities for them. On the other hand, the negative contributors were mainly non-China and consumption related stocks such as Fila Holdings (South Korea), Media Nusantra Citra (Indonesia), MacroAsia (the Philippines), and Vincom Retail (Vietnam). The lockdown of cities hampers economic activities as well as consumption especially in countries like Indonesia, the Philippines and India, where the Fund has a relatively higher exposure. Also it hits harder smaller companies with a relatively weaker balance sheet and less diversified business portfolio. The performance of MSCI Asia ex-Japan small-mid cap index lags that of large cap by about 4.5% for year-to-date 2020. Small-mid caps (below 10 billion USD market cap) account for about 60% of the portfolio in number of holdings and nearly half of the portfolio as a percentage of weightings. Despite of the Fund’s higher exposure to the said vulnerable countries and smaller-sized companies, it managed to outperform the market thanks to its focus on companies that have a robust balance sheet and attractive business led by wise managements. Nevertheless, the health care stocks contributed most positively to the Fund’s overall performance. Rise of China I’ve been witnessing the rise of China in many areas, for example, in the level of disposable income and in the telecom networking and digitization trend. China is aiming to double GDP per capita by 2035 to be a moderately developed economy. As China has hitherto been successfully avoiding middle-income trap and transforming into an innovation hub and still investing in basic infrastructure in underserved low-tier cities, the target will be likely met in my view. Although it’s probably a controversial topic, China’s political system works well to at least combat the COVID-19 crisis and drive economic growth with relatively stable domestic affairs. On the other hand, elsewhere, democracy may be at risk with appearance of income inequality, race issues, populism and political short-termism. They are two different systems and I don’t make a judgement on whether one system is better than the other, however, I think the odds China will continue to do well both economically and politically are higher than people expect. China political system is as though a company owned by a controlling family. They have a long-term plan to execute a strategy, which is usually not contested by someone as they are the controlling entity. Studies show many owner-operator companies outperformed others significantly in the stock market over the time, thanks to the long-term mindset. China may be the same. Disadvantage of the system would be a poor corporate governance, or corruption when it comes to a country. China is ranked 80th (tied rank) out of 180 countries in terms of corruption perception index 2019, according to Transparency International. The country seems to be tackling the issue, however, with multiple anti-corruption campaigns taken place. Opening up its financial market is another signal to be more transparent in China. China does not have a dictatorship which usually goes wrong economically and causes rebellion eventually, but has a communistic capitalism.

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Rise of China (continued) All in all, China’s system is unique to outsiders but is working well and we should not underestimate its capability to execute a long-term strategy. I believe investors should pay attention to the areas its government wants to focus and to domestic corporate leaders who ride on China’s prosperity. ESG In the past few years, ESG has been one of the hottest topics in the market. As a fundamental bottom-up stock picker, we’ve always been paying attention to company’s business sustainability and corporate governance. These days, what we are required by the society is further research on each company’s attitude and actions towards ESG factors and to take actions based on our understanding. Here is what I do for ESG investing: 1. actively avoid a company that’s against ESG practice, 2. actively invest in a company whose interests align with ESG goals, and 3. discuss ESG issues with a company when having a meeting. The first category is an exclusion criteria and I exclude businesses such as tobacco, casino, mining activities, plantation, and defense. I admit that there are counterarguments that these industries create a lot of jobs and economic values in emerging Asia. However, I view the problems created by them may be more troublesome in a long term. For example, a study shows approximately 25% of children in ASEAN countries smoke regularly, with which tobacco companies need to deal in future. The second action is the active selection of investees, which is the focus of my approach. This is because in Asia, there are many social issues that I believe we can come close to a solution by investing in companies whose interests align with social goals. In this sense, I pay attention to industries like education and healthcare, which are not provided well and equally to people in emerging Asia. Also the degree of importance may differ by level of economic development. In developed countries, education and healthcare are important areas for people for sure, but I would say they are more essential in emerging countries to reduce poverty and improve the minimum level of standard of living. The third one is discussion with a company. We are a bottom-up investor and we have many meetings with companies. The discussion regarding ESG is one approach to remind them of importance of ESG. Answers companies give us to our ESG-related questions can be very different from company to company. Some would have nothing to mention about social issues but some would have already identified them. These companies work actively to translate them into business opportunities. I’m not using third-party ESG data scores, as Asia is too large to cover fully and there is limited disclosure of ESG by Asian companies in general. Instead, I understand the direction of a company in terms of it’s ESG activities, such as awareness of the importance of ESG and action plans to address social demand on ESG through a meeting and one’s disclosure. 17 February 2021 SPARX Asset Management Co. Ltd

|RESTRICTED|

_____________________________

http://www.hsbc.ie/

Independent auditor’s report to the members of SPARX Funds Plc

20

Opinion

We have audited the financial statements of SPARX Funds Plc (the “Company”) for the year ended 31

October 2020 which comprise the Statement of Financial Position, the Statement of Comprehensive

Income, the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating

Shares, the Statement of Cash Flows and the related notes to the financial statements, including the

summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is Irish law, the European Communities (Undertakings for Collective Investment in Transferable Securities), Regulations 2011 (as amended) and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

In our opinion, the Company’s financial statements:

give a true and fair view in accordance with IFRS as adopted by the European Union of the

assets, liabilities and financial position of the company as at 31 October 2020 and of its financial

performance and cash flows for the financial year then ended; and

have been properly prepared in accordance with the requirements of the Companies Act, 2014.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (Ireland) (‘ISAs

(Ireland)) and applicable law. Our responsibilities under those standards are further described in the

‘Responsibilities of the auditor for the audit of the financial statements’ section of our report. We are

independent of the company in accordance with the ethical requirements that are relevant to our audit of

the financial statements in Ireland, namely the Irish Auditing and Accounting Supervisory Authority

(IAASA) Ethical Standard concerning the integrity, objectivity and independence of the auditor, and the

ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be

appropriate in the circumstances for the entity. We have fulfilled our other ethical responsibilities in

accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (Ireland) require

us to report to you where:

the directors’ use of the going concern basis of accounting in the preparation of the financial

statements is not appropriate; or

the directors have not disclosed in the financial statements any identified material uncertainties

that may cast significant doubt about the company’s ability to continue to adopt the going

concern basis of accounting for a period of at least twelve months from the date when the

financial statements are authorised for issue.


21

Other information

Other information comprises information included in the annual report, other than the financial

statements and the auditor’s report thereon. The directors are responsible for the other information. Our

opinion on the financial statements does not cover the other information and, except to the extent

otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the audit, or otherwise appears to be materially

misstated. If we identify such material inconsistencies in the financial statements, we are required to

determine whether there is a material misstatement in the financial statements or a material misstatement

of the other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by the Companies Act 2014

We have obtained all the information and explanations which we consider necessary for the purposes of our audit.

In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited.

The financial statements are in agreement with the accounting records.

In our opinion the information given in the Directors’ report is consistent with the financial statements. Based solely on the work undertaken in the course of our audit, in our opinion, the Directors’ report has been prepared in accordance with the requirements of the Companies Act 2014.

Matters on which we are required to report by exception Based on our knowledge and understanding of the Company and its environment obtained in the course

of the audit, we have not identified material misstatements in the Directors’ report.

Under the Companies Act 2014 we are required to report to you if, in our opinion, the disclosures of

directors’ remuneration and transactions specified by sections 305 to 312 of the Act have not been made.

We have no exceptions to report arising from this responsibility.

Responsibilities of management and those charged with governance for the financial

statements

As explained more fully in the Directors’ responsibilities statement, management is responsible for the

preparation of the financial statements which give a true and fair view in accordance with IFRS as

adopted by the European Union, and for such internal control as they determine necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or

error.


22

Responsibilities of management and those charged with governance for the financial

statements (continued)

In preparing the financial statements, management is responsible for assessing the company’s ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting unless management either intends to liquidate the company or to cease

operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the company’s financial reporting process.

Responsibilities of the auditor for the audit of the financial statements

The auditor’s objectives are to obtain reasonable assurance about whether the financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report

that includes their opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that

an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on the

basis of these financial statements.

As part of an audit in accordance with ISAs (Ireland), the auditor will exercise professional judgment and

maintain professional scepticism throughout the audit. The auditor will also:

Identify and assess the risks of material misstatement of the financial statements, whether due to

fraud or error, design and perform audit procedures responsive to those risks, and obtain audit

evidence that is sufficient and appropriate to provide a basis for their opinion. The risk of not

detecting a material misstatement resulting from fraud is higher than for one resulting from error,

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override

of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the company’s ability to continue as a going

concern. If they conclude that a material uncertainty exists, they are required to draw attention in

the auditor’s report to the related disclosures in the financial statements or, if such disclosures are

inadequate, to modify their opinion. Their conclusions are based on the audit evidence obtained

up to the date of the auditor’s report. However, future events or conditions may cause the

company to cease to continue as a going concern.


23

Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and

events in a matter that achieves a true and fair view.

Responsibilities of the auditor for the audit of the financial statements The auditor communicates with those charged with governance regarding, among other matters, the

planned scope and timing of the audit and significant audit findings, including any significant deficiencies

in internal control that may be identified during the audit.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the company’s members, as a body, in accordance with section 391 of the

Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s

members those matters we are required to state to them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company’s members as a body, for our audit work, for this report, or for the opinions

we have formed.

Niamh Meenan

For and on behalf of

Grant Thornton

Chartered Accountants & Statutory Audit Firm

13-18 City Quay

17 February 2021

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STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2020

SPARX SPARX JAPAN SPARX ONEASIA SPARX SMALLER JAPAN GROWTH ONEASIA SPARX COMPANIES SUSTAINABLE EQUITY ALL CAP TOTAL JAPAN FUND FUND EQUITY FUND FUND FUND* 2020 2020 2020 2020 2020 2020 NOTES JPY JPY JPY JPY USD USD

ASSETS Cash and cash equivalents 6 1,095,545,683 755,911,091 3,442,064 305,269,604 296,087 - Financial assets at fair value through profit or loss - Transferable securities 3 174,710,275,984 160,943,286,010 112,290,000 12,965,385,300 6,600,188 - - Financial derivative instruments 3 520,306 517,937 - 2,369 - - Due from shareholders 1,446,155,192 1,437,410,334 - 8,744,858 - - Investments sold not yet settled 4 1,325,636,794 1,263,753,078 4,956,027 54,298,759 25,172 - Dividends receivable 619,474,882 532,887,924 1,196,050 84,999,159 3,751 - Other receivables 5 22,309,192 184,996 6,168,078 15,206,040 7,182 - TOTAL ASSETS 179,219,918,033 164,933,951,370 128,052,219 13,433,906,089 6,932,380 - LIABILITIES Bank overdraft 6 24,162,105 24,162,105 - - - - Financial liabilities at fair value through profit or loss - Financial derivative instruments 3 167,082,039 165,077,331 - 2,004,708 - - Due to shareholders 41,699,672 34,873,664 5,659,046 1,166,962 - - Investments purchased not yet settled 4 1,435,465,837 1,375,620,525 - 59,845,312 - - Investment advisory fees payable 8 108,438,404 103,618,615 386,849 3,896,021 5,141 - Management fees payable 8 3,746,231 3,268,668 - 477,563 - - Administration fees payable 8 23,775,781 20,312,833 2,174,696 1,213,056 720 - Depositary fees payable 8 9,578,756 8,134,056 498,136 898,000 465 - Redemptions payable - - - - - - Other payables and accrued expenses 7 102,942,760 86,046,432 2,000,680 14,737,528 1,514 - TOTAL LIABILITIES 1,916,891,585 1,821,114,229 10,719,407 84,239,150 7,840 -

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES 177,303,026,448 163,112,837,141 117,332,812 13,349,666,939 6,924,540 -

*Terminated Sub-Fund.

The accompanying notes form an integral part of these financial statements

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STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2020 (CONTINUED)

SPARX SPARX JAPAN SPARX ONEASIA SMALLER JAPAN GROWTH SPARX COMPANIES SUSTAINABLE EQUITY JAPAN FUND FUND EQUITY FUND FUND NOTES 2020 2020 2020 2020

Net Asset Value per share JPY Institutional A Class Shares 15 ¥28,377 ¥23,822 - - JPY Institutional B Class Shares 15 ¥20,167 ¥16,985 ¥11,530 - JPY Institutional C Class Shares 15 ¥11,457 - - - JPY Institutional D Class Shares 15 ¥11,490 - - - JPY Institutional E Class Shares 15 - - ¥10,772 - USD Hedged Class A Shares 15 $175 - - - USD Hedged Class B Shares 15 $203 - - - USD Hedged Class C Shares 15 $150 - - - USD Hedged Class D Shares 15 $122 - - - USD Unhedged Class B Shares 15 - - - $139 USD Institutional E Class Shares 15 $117 - - - EUR Hedged Class A Shares 15 € 160 - - - EUR Hedged Class B Shares 15 € 136 - - - EUR Hedged Class C Shares 15 € 110 - - - GBP Hedged Class B Shares 15 £141 - - - GBP Hedged Class C Shares* 15 - - £116 - GBP Hedged Class H Shares*** 15 - - £121 - GBP Institutional C Class Shares 15 £130 - - - GBP Institutional D Class Shares 15 £114 - £124 - GBP Institutional E Class Shares 15 £116 - £113 - GBP Institutional F Class Shares** 15 £114 - £127 -

SPARX OneAsia All Cap Fund was terminated on 30 June 2019. * Name of GBP Hedged Class B Shares was changed to GBP Hedged Class C Shares with effect from 29 January 2020. ** Name of GBP C Class Shares was changed to GBP Institutional F Class Shares with effect from 29 January 2020.

*** launched on 14 May 2020.


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STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2019

SPARX SPARX JAPAN SPARX ONEASIA SPARX SMALLER JAPAN GROWTH ONEASIA SPARX COMPANIES SUSTAINABLE EQUITY ALL CAP TOTAL JAPAN FUND FUND EQUITY FUND FUND FUND* 2019 2019 2019 2019 2019 2019 NOTES JPY JPY JPY JPY USD USD

ASSETS Cash and cash equivalents 6 5,725,456,832 5,593,120,396 48,357,751 59,862,267 171,844 50,847 Financial assets at fair value through profit or loss - - Transferable securities 3 132,245,681,994 129,352,487,740 845,941,500 1,458,844,480 5,433,362 - - Financial derivative instruments 3 630,211 614,585 - 15,626 - - Due from shareholders 1,417,295,366 1,416,947,985 - 347,381 - - Investments sold not yet settled 4 125,666,777 103,987,967 - 357,714 196,879 - Dividends receivable 737,418,965 718,585,228 6,224,700 12,573,841 325 - Other receivables 5 1,659,952 - - - 15,328 - TOTAL ASSETS 140,253,810,097 137,185,743,901 900,523,951 1,532,001,309 5,817,738 50,847 LIABILITIES Financial liabilities at fair value through profit or loss - Financial derivative instruments 3 53,349,965 52,780,951 569,011 3 - - Due to shareholders 203,202,447 202,647,874 - 554,573 - - Investments purchased not yet settled 4 125,785,640 103,975,096 3,195,916 357,860 168,583 - Investment advisory fees payable 8 345,393,162 332,853,205 4,015,915 6,691,467 16,918 4 Administration fees payable 8 15,065,454 12,236,557 2,193,896 544,899 417 415 Depositary fees payable 8 3,556,164 2,946,718 302,670 283,817 212 - Redemptions payable 663,418 - - - - 6,126 Other payables and accrued expenses 7 133,641,993 123,018,282 2,672,486 3,051,290 944 44,302 TOTAL LIABILITIES 880,658,243 830,458,683 12,949,894 11,483,909 187,074 50,847

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES 139,373,151,854 136,355,285,218 887,574,057 1,520,517,400 5,630,664 -

*Terminated Sub-Fund


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Net Asset Value per share JPY Institutional A Class Shares 15 ¥26,387 ¥23,180 - - JPY Institutional B Class Shares 15 ¥18,641 ¥16,479 ¥10,500 - JPY Institutional C Class Shares 15 ¥10,574 - ¥10,402 - JPY Institutional D Class Shares 15 ¥10,623 - - - USD Hedged Class A Shares 15 $162 - - - USD Hedged Class B Shares 15 $186 $164 - - USD Hedged Class C Shares 15 $138 - - - USD Hedged Class D Shares 15 $112 - - - USD B Class Shares 15 - - - $113 USD Institutional E Class Shares 15 $105 EUR Hedged Class A Shares 15 € 150 - - - EUR Hedged Class B Shares 15 € 127 - - - EUR Hedged Class C Shares 15 € 102 - - - GBP Hedged Class B Shares 15 £131 - £106 - GBP C Class Shares 15 - - £111 - GBP Institutional C Class Shares 15 £116 - - - GBP Institutional D Class Shares 15 £102 - - - GBP Institutional E Class Shares 15 £103 - £100 - GBP Institutional F Class Shares 15 £103 - - -

SPARX OneAsia All Cap Fund is terminated on 30 June 2019.


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Number of shares in issue JPY Institutional A Class Shares 9 116,168 18,316 - - JPY Institutional B Class Shares 9 1,495,090 18,286 11,145 - JPY Institutional C Class Shares 9 3,341,676 - 106,236 - JPY Institutional D Class Shares 9 2,703,598 - - - USD Hedged Class A Shares 9 28,224 - - - USD Hedged Class B Shares 9 164,379 9,078 - - USD Hedged Class C Shares 9 76,239 - - - USD Hedged Class D Shares 9 581,317 - - - USD B Class Shares 9 - - - 50,000 USD Institutional E Class Shares 9 1,800 - - - EUR Hedged Class A Shares 9 23,178 - - - EUR Hedged Class B Shares 9 69,683 - - - EUR Hedged Class C Shares 9 734,288 - - - GBP Hedged Class B Shares 9 92,584 - 2,515 - GBP C Class Shares 9 - - 11,097 - GBP Institutional C Class Shares 9 269,572 - - - GBP Institutional D Class Shares 9 1,279 - - - GBP Institutional E Class Shares 9 808,639 - 6,533 - GBP Institutional F Class Shares 9 68,482 - - -

SPARX OneAsia All Cap Fund is terminated on 30 June 2019.


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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2020

SPARX

TOTAL SPARX

JAPAN FUND

SPARX JAPAN SMALLER

COMPANIES FUND

SPARX JAPAN SUSTAINABLE

EQUITY FUND

ONEASIA GROWTH

EQUITY FUND

SPARX ONEASIA ALL CAP

FUND* 2020 2020 2020 2020 2020 2020

NOTES JPY JPY JPY JPY USD USD INCOME Interest 55,563 - - 25,354 281 Dividends 2(l) 1,949,244,533 1,763,689,539 9,447,918 169,692,117 59,671 - Less: Withholding tax 2(l) (298,322,052) (270,109,054) (1,446,959) (25,988,344) (7,234) - Other income 32,956,998 10,425,397 6,174,511 15,469,740 8,254 -

TOTAL INVESTMENT INCOME 1,683,935,042 1,504,005,882 14,175,470 159,198,867 60,972 - EXPENSES Investment advisory fees 8 1,171,688,386 1,127,904,973 6,351,531 31,706,786 53,254 - Management fees 8 22,882,504 22,404,941 - 477,563 - - Administration fees 8 184,318,447 164,403,449 6,694,953 12,022,541 11,139 - Depositary fees 8 56,293,350 49,646,270 2,683,834 3,708,781 2,367 - Directors' fees and expenses 8 10,641,551 9,859,472 83,097 664,688 319 - Audit fees 8 5,305,364 4,795,657 7,561 477,420 230 - Transaction costs 9,718,840 8,252,755 140,981 1,325,104 - - Other expenses 40,350,539 32,428,757 1,634,806 5,047,975 11,525 -

OPERATING EXPENSES 1,501,198,981 1,419,696,274 17,596,763 55,430,858 78,834 - FINANCE COST Distributions to redeemable participating

Distributions to redeemable participating shareholders 10 147,119,704 96,293,728 - 50,825,976 - - 147,119,704 96,293,728 - 50,825,976 - - NET INVESTMENT INCOME 35,616,357 (11,984,120) (3,421,293) 52,942,033 (17,862) -



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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

SPARX

TOTAL SPARX

JAPAN FUND

SPARX JAPAN SMALLER

COMPANIES FUND


EQUITY FUND

ONEASIA GROWTH

EQUITY FUND


FUND* 2020 2020 2020 2020 2020 2020

NOTES JPY JPY JPY JPY USD USD Net realised (loss)/gain on: RG-Investments (999,399,802) (868,239,913) (17,936,476) (165,140,389) 482,924 - RG-Forward foreign exchange contracts (383,931,640) (382,873,276) (946,174) (112,190) - - RG-Foreign exchange (5,672,760) (1,642,920) (30,584) (4,043,226) 409 - - - Net change in fair value of investments and foreign exchange: UG-Investments 14,464,667,187 13,369,683,779 (44,470,127) 1,050,813,870 824,513 - RG-Forward foreign exchange contracts (113,841,979) (112,393,028) 569,011 (2,017,962) - - UG-Foreign exchange (1,931,562) 561,897 86,771 (2,998,641) 3,892 -

PROFIT/(LOSS) ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES FROM OPERATIONS 12,995,505,801 11,993,112,419 (66,148,872) 929,443,495 1,293,876 -



SPARX Funds Plc

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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2019

SPARX

TOTAL SPARX

JAPAN FUND

SPARX JAPAN SMALLER

COMPANIES FUND


EQUITY FUND

ONEASIA GROWTH

EQUITY FUND*


FUND** 2019 2019 2019 2019 2019 2019

NOTES JPY JPY JPY JPY USD USD INCOME Interest 9,033,131 2,693,725 6,180 2,157 3,221 54,562 Dividends 2(l) 2,100,320,164 1,736,397,560 118,275,050 160,866,252 119,336 654,454 Less: Withholding tax 2(l) (315,439,465) (265,929,285) (18,113,821) (24,636,666) (14,868) (46,827) Other income 17,135,376 10,890,930 3,642,041 594,055 15,529 2,801

TOTAL INVESTMENT INCOME 1,811,049,206 1,484,052,930 103,809,450 136,825,798 123,218 664,990 EXPENSES Investment advisory fees 8 1,109,902,205 962,561,168 58,102,586 55,523,259 47,043 260,672 Administration fees 8 196,665,617 161,455,329 12,462,124 14,034,028 7,828 71,705 Depositary fees 8 63,150,137 46,585,417 7,136,166 5,155,578 4,394 34,605 Directors' fees and expenses 8 10,609,239 8,931,437 674,963 351,577 535 5,409 Audit fees 5,272,398 3,688,611 28,712 - 220 13,973 Audit fees reversal 8 (117,264) - - (117,264) - - Legal and professional fees 623,980 - - - - 5,695 Establishment expenses 2(o) 4,695,244 - - 42,853 - Transaction costs 7,575,613 5,681,026 439,076 1,395,250 - 550 Other expenses 37,211,144 23,514,456 4,764,223 3,857,465 12,157 34,162

OPERATING EXPENSES 1,435,588,313 1,212,417,444 83,607,850 80,199,893 115,030 426,771 FINANCE COST Distributions to redeemable participating

Distributions to redeemable participating shareholders 10 21,583,372 21,583,372 - - - - 21,583,372 21,583,372 - - - - NET INVESTMENT INCOME 353,877,521 250,052,114 20,201,600 56,625,905 8,188 238,219

*For the period from 16 November 2018 to 31 October 2019. **Terminated Sub-Fund.


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33

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2019 (CONTINUED)

SPARX

TOTAL SPARX

JAPAN FUND

SPARX JAPAN SMALLER

COMPANIES FUND


EQUITY FUND

ONEASIA GROWTH

EQUITY FUND*


FUND** 2019 2019 2019 2019 2019 2019

NOTES JPY JPY JPY JPY USD USD Net realised (loss)/gain on: RG-Investments 651,910,244 1,877,957,518 (1,574,787,393) (726,093,929) 214,197 9,595,700 RG-Forward foreign exchange contracts (984,072,334) (985,106,306) (646,768) 1,680,740 - - RG-Foreign exchange (25,851,721) (9,813,816) (125,472) (824,388) (10,244) (127,463) Net change in fair value of investments and foreign exchange:

UG-Investments 7,469,012,493 5,755,783,071 789,171,239 878,071,237 419,718 - RG-Forward foreign exchange contracts (134,577,659) (132,820,806) (1,772,476) 15,623 - - UG-Foreign exchange 2,041,104 1,791,735 289,045 (31,787) (1,195) 1,123

PROFIT/(LOSS) ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES FROM OPERATIONS 7,332,339,648 6,757,843,510 (767,670,225) 209,443,401 630,664 9,707,579



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34

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES


SPARX SPARX JAPAN SPARX ONEASIA SPARX SMALLER JAPAN GROWTH ONEASIA SPARX COMPANIES SUSTAINABLE EQUITY ALL CAP TOTAL JAPAN FUND FUND EQUITY FUND FUND FUND* 2020 2020 2020 2020 2020 2020

JPY JPY JPY JPY USD USD

Net assets attributable to holders of redeemable participating shares at 1 November 139,373,151,854 136,355,285,218 887,574,057 1,520,517,400 5,630,664 - Profit/(loss) attributable to holders of redeemable participating shares from operations 12,995,505,801 11,993,112,419 (66,148,872) 929,443,495 1,293,876 - Foreign exchange movement arising on aggregation (25,684,382) - - - - - Proceeds from issuance of redeemable participating shares JPY Institutional A Class Shares 90,967,660 90,967,660 - - - - JPY Institutional B Class Shares 5,119,857,453 3,947,014,816 34,842,000 1,138,000,637 - - JPY Institutional C Class Shares 25,263,883,004 25,263,883,004 - - - - JPY Institutional D Class Shares 21,139,565,364 21,139,565,364 - - - - JPY Institutional E Class Shares 321,738,400 - - 321,738,400 - - USD Hedged Class A Shares 60,388,447 60,388,447 - - - - USD Hedged Class B Shares 1,519,229,292 1,519,229,292 - - - - USD Hedged Class C Shares 187,234,689 187,234,689 - - - - USD Institutional E Class Shares 43,767,710 43,767,710 - - EUR Hedged Class A Shares 13,369,331 13,369,331 - - - - EUR Hedged Class B Shares 397,603,403 397,603,403 - - - - EUR Hedged Class C Shares 533,291,306 533,291,306 - - - - GBP Hedged Class B Shares 3,723,979,965 3,723,979,965 - - - - GBP Hedged Class H Shares** 167,901,834 - - 167,901,834 - -

*Terminated Sub-Fund. **launched on 14 May 2020


SPARX Funds Plc

35



SPARX SPARX JAPAN SPARX ONEASIA SPARX SMALLER JAPAN GROWTH ONEASIA SPARX COMPANIES SUSTAINABLE EQUITY ALL CAP TOTAL JAPAN FUND FUND EQUITY FUND FUND FUND* 2020 2020 2020 2020 2020 2020 JPY JPY JPY JPY USD USD

Proceeds from issuance of redeemable participating shares (continued) GBP Hedged Class C Shares 97,337,623 - - 97,337,623 - - GBP Institutional C Class Shares 1,193,675,612 1,193,675,612 - - - - GBP Institutional D Class Shares 134,187,629 121,465,008 - 12,722,621 - - GBP Institutional E Class Shares 18,666,347,152 6,527,967,356 - 12,138,379,796 - - GBP Institutional F Class Shares 2,191,502,280 2,184,145,567 - 7,356,713 - - Payment on redemption of redeemable participating shares JPY Institutional A Class Shares (443,165,307) (129,488,580) (313,676,727) - - - JPY Institutional B Class Shares (23,520,248,493) (22,085,069,550) (284,346,546) (1,150,832,397) - - JPY Institutional C Class Shares (8,359,028,463) (7,221,034,395) - (1,137,994,068) - - JPY Institutional D Class Shares (7,267,344,195) (7,267,344,195) - - - - JPY Institutional E Class Shares (4,908,500) - - (4,908,500) - - USD Hedged Class A Shares (208,356,844) (208,356,844) - - - - USD Hedged Class B Shares (358,962,677) (218,051,577) (140,911,100) - - - USD Hedged Class C Shares (893,602,010) (893,602,010) - - - - EUR Hedged Class A Shares (288,001,572) (288,001,572) - - - - EUR Hedged Class B Shares (646,240,440) (646,240,440) - - - - EUR Hedged Class C Shares (6,019,170,744) (6,019,170,744) - - - - GBP Hedged Class B Shares (285,714,151) (285,714,151) - - - - GBP Hedged Class H Shares**** (25,670,786) - - (25,670,786) - - GBP Hedged Class C Shares** (121,558,179) - - (121,558,179) - - GBP Institutional C Class Shares (3,682,802,948) (3,682,802,948) - - - -


SPARX Funds Plc

36

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO

HOLDERS OF REDEEMABLE PARTICIPATING SHARES FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

SPARX SPARX JAPAN SPARX ONEASIA SPARX SMALLER JAPAN GROWTH ONEASIA SPARX COMPANIES SUSTAINABLE EQUITY ALL CAP TOTAL JAPAN FUND FUND EQUITY FUND FUND FUND* 2020 2020 2020 2020 2020 2020 JPY JPY JPY JPY USD USD Payment on redemption of redeemable participating shares (continued) GBP Institutional D Class Shares (83,393,079) (83,393,079) - - - - GBP Institutional E Class Shares (3,213,799,235) (2,850,844,534) - (362,954,701) - - GBP Institutional F Class Shares*** (483,807,356) (303,994,407) - (179,812,949) - - NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES AT 31st OCTOBER 2020 177,303,026,448 163,112,837,141 117,332,812 13,349,666,939 6,924,540 - *Terminated Sub-Fund. ** Name of GBP Hedged Class B Shares was changed to GBP Hedged Class C Shares with effect from 29 January 2020. *** Name of GBP C Class Shares was changed to GBP Institutional F Class Shares with effect from 29 January 2020. **** launched on 14 May 2020.


SPARX Funds Plc

37


HOLDERS OF REDEEMABLE PARTICIPATING SHARES FOR THE YEAR ENDED 31 OCTOBER 2019

SPARX SPARX JAPAN SPARX ONEASIA SPARX SMALLER JAPAN GROWTH ONEASIA SPARX COMPANIES SUSTAINABLE EQUITY ALL CAP TOTAL JAPAN FUND FUND EQUITY FUND FUND* FUND** 2019 2019 2019 2019 2019 2019


Net assets attributable to holders of redeemable participating shares at 1 November 145,317,705,323 109,511,215,329 14,725,345,388 10,909,850,535 - 89,893,897 Profit/(loss) attributable to holders of redeemable participating shares from operations 7,332,339,648 6,757,843,510 (767,670,225) 209,443,401 630,664 9,707,579 Foreign exchange movement arising on aggregation (329,108,821) - - - - - Proceeds from issuance of redeemable participating shares

JPY Institutional A Class Shares 259,129,301 236,918,456 41 22,210,804 - - JPY Institutional B Class Shares 9,288,390,041 7,554,852,927 284,030,518 1,449,506,596 - - JPY Institutional C Class Shares 34,297,478,566 32,904,321,312 171,262,014 1,221,895,240 - - JPY Institutional D Class Shares 27,083,171,626 27,083,171,626 - - - - USD Hedged Class A Shares 87,359,803 87,359,803 - - - - USD Hedged Class B Shares 1,104,617,224 1,104,617,224 - - - - USD Hedged Class C Shares 473,795,375 473,795,375 - - - - USD B Class Shares 547,831,465 - - - 5,000,000 - USD Institutional E Class Shares 19,560,965 19,560,965 - - - - EUR Hedged Class A Shares 181,155,573 181,155,573 - - - - EUR Hedged Class B Shares 358,120,744 358,120,744 - - - - EUR Hedged Class C Shares 4,272,770,271 4,272,770,271 - - - -



SPARX Funds Plc

38



SPARX SPARX JAPAN SPARX ONEASIA SPARX SMALLER JAPAN GROWTH ONEASIA SPARX COMPANIES SUSTAINABLE EQUITY ALL CAP TOTAL JAPAN FUND FUND EQUITY FUND FUND* FUND** 2019 2019 2019 2019 2019 2019 JPY JPY JPY JPY USD USD

GBP Hedged Class B Shares 669,473,307 635,845,187 - 33,628,120 - - GBP Institutional C Class Shares 5,569,372,574 5,569,372,574 - - - - GBP Institutional D Class Shares 1,052,392,661 1,052,392,661 - - - - GBP Institutional E Class Shares 11,274,912,716 11,184,046,993 - 90,865,723 - - GBP Institutional F Class Shares 899,868,416 899,868,416 - - - - GBP C Class Shares 182,145,962 - - 182,145,962 - - Payment on redemption of redeemable participating shares

JPY Institutional A Class Shares (831,578,500) (733,570,911) (76,326,877) (21,680,712) - - JPY Institutional B Class Shares (26,068,530,800) (22,468,287,662) (2,262,328,232) (1,337,914,906) - - JPY Institutional C Class Shares (45,491,503,448) (23,130,105,946) (11,145,127,060) (11,216,270,442) - - USD Hedged Class A Shares (534,364,870) (534,364,870) - - - - USD Hedged Class B Shares (7,868,340,277) (7,826,728,767) (41,611,510) - - - USD Hedged Class C Shares (647,724,629) (647,724,629) - - - - USD Class C Shares (10,912,964,498) - - - - (99,601,476) *For the period from 16 November 2018 to 31 October 2019. **Terminated Sub-Fund.


SPARX Funds Plc

39


HOLDERS OF REDEEMABLE PARTICIPATING SHARES FOR THE YEAR ENDED 31 OCTOBER 2019 (CONTINUED)

SPARX SPARX JAPAN SPARX ONEASIA SPARX SMALLER JAPAN GROWTH ONEASIA SPARX COMPANIES SUSTAINABLE EQUITY ALL CAP TOTAL JAPAN FUND FUND EQUITY FUND FUND* FUND** 2019 2019 2019 2019 2019 2019 JPY JPY JPY JPY USD USD EUR Hedged Class A Shares (34,659,226) (34,659,226) - - - - EUR Hedged Class B Shares (1,104,741,428) (1,104,741,428) - - - - EUR Hedged Class C Shares (4,678,148,361) (4,678,148,361) - - - - GBP Hedged Class B Shares (742,950,503) (742,537,465) - (413,038) - - GBP Institutional C Class Shares (10,498,066,245) (10,498,066,245) - - - - GBP Institutional D Class Shares (977,637,868) (977,637,868) - - - - GBP Institutional E Class Shares (144,536,208) (140,372,541) - (4,163,667) - - GBP Institutional F Class Shares (14,997,809) (14,997,809) - - - - GBP C Class Shares (18,586,216) - - (18,586,216) - -

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE 139,373,151,854 136,355,285,218 887,574,057 1,520,517,400 5,630,664 - *For the period from 16 November 2018 to 31 October 2019. **Terminated Sub-Fund.


SPARX Funds Plc

40

STATEMENT OF CASH FLOWS


SPARX SPARX JAPAN SPARX JAPAN ONEASIA SPARX SMALLER SUSTAINABLE GROWTH ONEASIA

TOTAL SPARX

JAPAN FUND COMPANIES

FUND EQUITY

FUND EQUITY

FUND ALL CAP

FUND* 2020 2020 2020 2020 2020 2020


Cash flows from operating activities Profit/(loss) attributable to holders of redeemable participating shares from operations 12,995,505,801 11,993,112,419 (66,148,872) 929,443,495 1,293,876 - Adjustments to reconcile profit/(loss) for the period to net cash from operating activity Purchases of investments (64,306,908,289) (49,740,406,502) (165,327,124) (13,995,153,671) (3,776,747) - Sales of investments 35,283,047,896 30,651,052,098 836,572,021 3,374,286,332 3,917,358 - Net realised gain/(loss) on investments 999,399,802 868,239,913 17,936,476 165,140,389 (482,924) - Net unrealised (loss)/gain on investments (14,464,667,187) (13,369,683,779) 44,470,127 (1,050,813,870) (824,513) - Net unrealised gain/(loss) on forward foreign exchange 113,841,979 112,393,028 (569,011) 2,017,962 - - Distributions to redeemable participating shareholders 147,119,704 96,293,728 - 50,825,976 - - Increase in amounts due from shareholders (28,859,826) (20,462,349) - (8,397,477) - - (Increase)/decrease in investments sold not yet settled (1,199,970,017) (1,159,765,111) (4,956,027) (53,941,045) 171,707 - Decrease/(increase) in dividends receivable 117,944,083 185,697,304 5,028,650 (72,425,318) (3,426) - (Increase)/decrease in other receivables (20,649,240) (184,996) (6,168,078) (15,206,040) 8,146 - (Decrease)/increase in due to shareholders (161,502,775) (167,774,210) 5,659,046 612,389 - - Increase/(decrease) in investments purchased not yet settled 1,309,680,197 1,271,645,429 (3,195,916) 59,487,452 (168,583) - Decrease in investment advisory fees payable (236,954,758) (229,234,590) (3,629,066) (2,795,446) (11,777) (4) Increase in management fees payable 3,746,231 3,268,668 - 477,563 - - Increase/(decrease) in administration fees payable 8,710,327 8,076,276 (19,200) 668,157 303 (415) Increase in depositary fees payable 6,022,592 5,187,338 195,466 614,183 253 - Decrease in redemption payable (663,418) - - - - (6,126) (Decrease)/increase in other payables and accrued expenses (30,699,233) (36,971,850) (671,806) 11,686,238 570 (44,302) Net cash (used in)/provided by operating activities (29,465,856,131) (19,529,517,186) 659,176,686 (10,603,472,731) 124,243 (50,847)



SPARX Funds Plc

41

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)


TOTAL SPARX


FUND EQUITY

FUND EQUITY

FUND ALL CAP

FUND* 2020 2020 2020 2020 2020 2020

JPY JPY JPY JPY USD USD Cash flows from financing activities Proceeds from issuance of redeemable participating shares 80,865,828,154 66,947,548,530 34,842,000 13,883,437,624 - - Payment on redemption of redeemable participating shares (55,905,774,979) (52,183,109,026) (738,934,373) (2,983,731,580) - - Distributions to redeemable participating shareholders (147,119,704) (96,293,728) - (50,825,976) - - Net cash provided by/(used in ) financing activities 24,812,933,471 14,668,145,776 (704,092,373) 10,848,880,068 - - Net (decrease)/increase in cash and cash equivalents (4,652,922,660) (4,861,371,410) (44,915,687) 245,407,337 124,243 (50,847) Cash at beginning of the year 5,725,456,832 5,593,120,396 48,357,751 59,862,267 171,844 50,847 Foreign exchange movement arising on aggregation (1,150,594) - - - - - Cash and bank overdraft at end of the year 1,071,383,578 731,748,986 3,442,064 305,269,604 296,087 - Cash and cash equivalents 1,095,545,683 755,911,091 3,442,064 305,269,604 296,087 - Bank overdraft (24,162,105) (24,162,105) - - - - 1,071,383,578 731,748,986 3,442,064 305,269,604 296,087 - Supplemental disclosure of cash flow information Interest received - - 25,354 281 - Interest paid 5,291,249 23,515 1,135,793 - - Dividend received 1,949,386,843 14,476,568 84,692,958 56,245 -



SPARX Funds Plc

42

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2019


TOTAL SPARX


FUND EQUITY

FUND EQUITY

FUND* ALL CAP

FUND** 2019 2019 2019 2019 2019 2019


Cash flows from operating activities Profit/(loss) attributable to holders of redeemable participating shares from operations 7,332,339,648 6,757,843,510 (767,670,225) 209,443,401 630,664 9,707,579 Adjustments to reconcile profit/(loss) for the period to net cash from operating activity Purchases of investments (39,330,830,908 (26,595,065,709) (7,300,098,043) (4,233,586,211) (8,337,086) (2,634,180) Sales of investments 52,481,979,164 9,822,522,358 19,050,532,189 13,433,538,709 3,537,639 89,332,035 Net realised (loss)/gain on investments (651,910,244) (1,877,957,518) 1,574,787,393 726,093,929 (214,197) (9,595,700) Net unrealised gain on investments (7,469,012,493) (5,755,783,071) (789,171,239) (878,071,237) (419,718) - Net unrealised (loss)/gain on forward foreign exchange 134,577,659 132,820,806 1,772,476 (15,623) - - Distributions to redeemable participating shareholders 21,583,372 21,583,372 - - - - Increase in amounts due from shareholders (807,548,521) (807,201,140) - (347,381) - - Decrease/(increase) in investments sold not yet settled 509,744,370 111,574,252 327,980,764 91,510,450 (196,879) - (Increase)/decrease in dividends receivable (52,848,916) (211,908,000) 68,020,750 84,547,054 (325) 57,681 (Increase)/decrease in other receivables (506,518) 174,011 540,843 219,865 (15,328) 1,933 Increase/(decrease) in due to shareholders 30,934,362 33,070,500 (2,690,711) 554,573 - - (Decrease)/increase in investments purchased not yet settled (790,198,674) (535,862,051) (190,403,687) (82,189,704) 168,583 - Increase/(decrease) in investment advisory fees payable 233,774,119 245,275,490 (8,150,031) 511,944 16,918 (50,336) (Decrease)/increase in administration fees payable (9,327,808) (5,170,318) (2,294,842) (747,387) 417 (10,238) (Decrease)/increase in depositary fees payable (2,058,403) (938,751) (435,494) (232,462) 212 (4,195) Increase in redemption payable 663,418 - - - - 6,126 Increase/(decrease)in other payables and accrued expenses 16,493,431 37,438,194 (10,433,940) (13,562,263) 944 27,965 Net cash provided/(used in) by operating activities 11,647,847,058 (18,627,584,065) 11,952,286,203 9,337,667,657 (4,828,156) 86,838,670



SPARX Funds Plc

43

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2019 (CONTINUED)


TOTAL SPARX


FUND EQUITY

FUND EQUITY

FUND* ALL CAP

FUND** 2019 2019 2019 2019 2019 2019

JPY JPY JPY JPY USD USD Cash flows from financing activities Proceeds from issuance of redeemable participating shares 97,621,546,590 93,618,170,107 455,292,573 3,000,252,445 5,000,000 - Payment on redemption of redeemable participating shares (110,569,330,886) (73,531,943,728) (13,525,393,679) (12,599,028,981) - (99,601,476) Distributions to redeemable participating shareholders (21,583,372) (21,583,372) - - - - Net cash (used in)/ provided by financing activities (12,969,367,668) 20,064,643,007 (13,070,101,106) (9,598,776,536) 5,000,000 (99,601,476) Net increase/(decrease) in cash and cash equivalents (1,321,520,610) 1,437,058,942 (1,117,814,903) (261,108,879) 171,844 (12,762,806) Cash at beginning of the year 7,093,041,529 4,156,061,454 1,166,172,654 320,971,146 - 12,813,653 Foreign exchange movement arising on aggregation (46,064,087) - - - - - Cash and bank overdraft at end of the year 5,725,456,832 5,593,120,396 48,357,751 59,862,267 171,844 50,847 Cash and cash equivalents 5,725,456,832 5,593,120,396 48,357,751 59,862,267 171,844 50,847 Bank overdraft - - - - - - 5,725,456,832 5,593,120,396 48,357,751 59,862,267 171,844 50,847 Supplemental disclosure of cash flow information Interest received 2,693,725 6,180 2,157 3,221 54,562 Interest paid 2,319,340 29,205 30,812 - - Dividend received 1,524,489,560 186,295,800 148,292,411 119,011 712,135



SPARX Funds Plc

44

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

1. General

SPARX Funds Plc (the “Company”) is an open ended investment company with variable capital and limited liability incorporated in Ireland on 16 September 2003 under the Companies Act 2014. The Company is authorised by the Central Bank of Ireland pursuant to the provisions of the European Communities (Undertakings for Collective Investment in Transferable Securities) (“UCITS”) (Amendment) Regulations, 2016 and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertaking for Collective Investments in Transferable Securities) Regulations 2019 (the “Central Bank UCITS Regulations”). The Company is an umbrella fund. As of the date of this report the Company comprised four Sub-Funds, SPARX Japan Fund, SPARX Japan Smaller Companies Fund, SPARX Japan Sustainable Equity Fund and SPARX OneAsia Growth Equity Fund (which commenced trading on 27 June 2005, 28 September 2007, 25 April 2018 and 16 November 2018 respectively), in respect of which twenty classes of shares have been offered for investment by SPARX Japan Fund , eighteen classes of shares have been offered for investment by SPARX Japan Smaller Companies Fund, seventeen classes of shares have been offered for investment by SPARX Japan Sustainable Equity Fund and three classes of shares have been offered for investment by SPARX OneAsia Growth Equity Fund. SPARX OneAsia All Cap Fund terminated on 30 June 2019. Financial statements presented for this fund as of 31 October 2020, contains the remaining balances post termination.

All the share classes in the Sub-Funds have been delisted from the Euronext Dublin as of 20 March 2019.

As of 31 October 2020, following share classes of each Sub-Funds are on offer for subscription.

SPARX Japan Fund SPARX Japan Smaller Companies Fund* JPY Institutional A Class Shares JPY Institutional A Class Shares JPY Institutional B Class Shares JPY Institutional B Class Shares JPY Institutional C Class Shares JPY Institutional C Class Shares JPY Institutional D Class Shares JPY Institutional D Class Shares USD Hedged Class A Shares USD Hedged Class A Shares USD Hedged Class B Shares USD Hedged Class B Shares USD Hedged Class C Shares USD Hedged Class D Shares USD Hedged Class D Shares EUR Hedged Class A Shares USD Institutional E Class Shares EUR Hedged Class B Shares EUR Hedged Class A Shares EUR Hedged Class D Shares EUR Hedged Class B Shares CHF Hedged Class A Shares EUR Hedged Class C Shares CHF Hedged Class B Shares CHF Hedged Class A Shares GBP Hedged Class A Shares CHF Hedged Class B Shares GBP Hedged Class B Shares GBP Hedged Class A Shares GBP Hedged Class F Shares GBP Hedged Class B Shares GBP Hedged Class G Shares GBP Institutional C Class Shares GBP Institutional D Class Shares GBP Institutional D Class Shares GBP Institutional E Class Shares GBP Institutional E Class Shares GBP Institutional F Class Shares

*The fund is no longer on offer for subscription as the Board of Directors agreed to liquidate the fund.

SPARX Funds Plc

45

NOTES TO THE FINANCIAL STATEMENTS


1. General (continued) SPARX Japan Sustainable Equity Fund SPARX OneAsia Growth Equity Fund JPY Institutional A Class Shares USD B Class Shares JPY Institutional B Class Shares JPY Institutional C Class Shares JPY Institutional D Class Shares JPY Institutional E Class Shares USD Hedged Class A Shares USD Hedged Class B Shares USD Hedged Class C Shares USD Hedged Class D Shares EUR Hedged Class D Shares GBP Hedged Class H Shares* GBP Hedged Class C Shares GBP Hedged Class F Shares GBP Hedged Class G Shares GBP Institutional D Class Shares GBP Institutional E Class Shares GBP Institutional F Class Shares *launched on 14 May 2020 The investment objective of the SPARX Japan Fund is to provide long-term capital growth by identifying and acquiring undervalued Japanese equities. The Fund will normally invest at least 80% of its assets in equity securities of Japanese companies and the rest of its assets in ancillary liquid assets such as money market instruments or cash deposits. The investment objective of the SPARX Japan Smaller Companies Fund is to provide long term capital appreciation by carefully selecting and investing in Japanese smaller capitalisation companies listed and traded on recognised Japanese stock exchanges and markets. The Fund will invest two-thirds of its assets in the equity securities of smaller capitalisation companies domiciled in or exercising a predominant part of their economic activity in Japan.

The investment objective of the SPARX Japan Sustainable Equity Fund is to to achieve sustainable capital growth by investing in shares of Japanese equities. The Fund will normally invest at least 80% of its assets in equity securities of Japanese companies and the rest of its assets in ancillary liquid assets such as money market instruments or cash deposits.

The investment objective of the SPARX OneAsia Growth Equity Fund is to provide long-term capital appreciation by identifying high growth companies which are benefitting from the fast-growing economies in Asia (ex-Japan). The Investment Advisor will identify these companies by conducting cross-border and bottom-up research across Asia.

2. Significant Accounting Policies The significant accounting policies adopted by the Company are as follows:

(a) Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (IASB), as adopted for use in the European Union and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB.

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FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) 2. Significant Accounting Policies (continued)

(b) Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost basis convention, except for financial instruments classified at fair value through profit or loss that have been measured at fair value. The financial statements and notes other than SPARX OneAsia Growth Equity Sub-Fund are presented in Japanese Yen. The financial statements and notes of SPARX OneAsia Growth Equity Sub-Fund are presented in USD. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management believes that the estimates utilised in preparing its financial statements are reasonable and prudent. Actual results could differ from these estimates.

After reviewing the future financial operational budgets and strategy for the business, along with making other appropriate enquiries, the Directors consider that the Company has adequate resources to continue in business for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

(c) Financial assets at fair value through profit or loss

(i) Classification The Company classifies and measures financial assets and liabilities in accordance with IFRS 9, Financial Instruments (“IFRS 9”). Upon initial recognition, financial assets and liabilities are classified as fair value through profit or loss (“FVTPL”). Financial assets and liabilities include equities and derivatives. All derivatives in a net receivable position (positive fair value) and all derivatives in a net payable position (negative fair value) will continue to be measured at fair value with all changes being recognised in profit or loss. These instruments are acquired principally for the purpose of generating profit from short-term fluctuation in price. (ii) Recognition All regular way purchases and sales of financial instruments are recognised on the trade date, which is the date that the Company commits to purchase or sell an asset. Regular way purchases or sales are purchases or sales of financial instruments that require delivery of assets within the year generally established by regulation or convention in the market place. Realised gains and losses on disposals of financial instruments are calculated using the weighted average cost method. (iii) Derecognition The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition in accordance with IFRS 9.

The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expires. (iv) Initial Measurement Financial instruments categorised at fair value through profit or loss is recognised initially at fair value, with transaction costs for such instruments being recognised directly in the Statement of Comprehensive Income. Financial instruments, other than those as at fair value through the profit or loss, are recognised initially at cost

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(c) Financial assets at fair value through profit or loss (continued)

(v) Subsequent Measurement After initial measurement, the Company measures financial instruments which are classified as fair value through profit or loss at their fair values. Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction. The fair value of financial instruments is based on their quoted market prices on a recognised exchange, or sourced from a reputable broker/counterparty in the case of non-exchange traded instruments, at the Statement of Financial Position date without any deduction for estimated future selling costs. Financial assets and financial liabilities are priced at their last traded price. Subsequent changes in the fair value of financial instruments at fair value through profit or loss are recognised in the Statement of Comprehensive Income.

(d) Impairment of financial assets The Company assesses at each Statement of Financial Position date whether there is any objective evidence that a financial asset or group of financial assets is impaired. A financial asset or group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial assets that can be reliably estimated.

(e) Offsetting financial instruments Financial assets and liabilities are offset and the net amount is reported in the Statement of Financial Position when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

f) Cash and cash equivalents Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value and are held for the purpose of the meeting of short-term cash commitments rather than for investments or other purposes.

(g) Forward currency contracts A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, at a price set at the time the contract is made. Forward currency contracts are valued by reference to the forward price at which a new forward contract of the same size and maturity could be undertaken at the valuation date. The unrealised gain or loss on open forward currency contracts is calculated as the difference between the contract rate and this forward price. Forward currency contracts are entered into where applicable to hedge the Company’s overall currency risk. Realised gains/(losses) and changes in unrealised gains/(losses) on forward currency contracts are recognised in the Statement of Comprehensive Income.

(h) Foreign Currency Translation (i) Functional and Presentation Currency Items included in the Sub-Fund’s financial statements other than SPARX OneAsia Growth Equity Fund and One Asia All Cap Fund are measured and presented using Japanese Yen. Items included in the financial statements of the Sub-Funds SPARX OneAsia Growth Equity and One Asia All Cap are measured and presented using US Dollar.

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2. Significant Accounting Policies (continued)

(h) Foreign Currency Translation (continued) (ii) Foreign Currency Transactions Monetary assets and liabilities denominated in currencies other than the Presentation Currency are translated into the Presentation Currency at the closing rates of exchange at each year end. Transactions during the year, including purchases and sales of securities, income and expenses, are translated at the rate of exchange prevailing on the date of the transaction. Foreign currency transaction gains and losses are included in the Statement of Comprehensive Income.

(i) Investments sold and purchased not yet settled Investments sold and purchased not yet settled represents receivables for securities sold and payables for securities purchased that have been contracted for but not yet settled or delivered on the Statement of Financial Position date, respectively. These amounts are recognised initially at fair value and subsequently measured at amortised cost, less provision for impairment for amount due from depositary, if any.

(j) Interest income and interest expense Interest income and interest expense are recognised on an accruals basis in line with the contractual terms. Interest is accrued on a daily basis.

(k) Expenses All expenses, including management fees, are recognised in the Statement of Comprehensive Income on an accruals basis.

(l) Dividend Income Dividends are credited to the Statement of Comprehensive Income on the dates on which the relevant securities are listed as “ex-dividend”. Income is shown gross of any non-recoverable withholding taxes, which are disclosed separately in the Statement of Comprehensive Income, and net of any tax credits.

(m) Redeemable Participating Shares Redeemable participating shares are redeemable at the shareholder’s option and are classified as financial liabilities. The participating shares can be put back to the Company on any dealing day for cash equal to a proportionate share of the Company’s Net Asset Value.

(n) Share Capital The Company’s subscriber shares are classified as equity in accordance with the Company’s articles of association. These shares do not participate in the profits of the Company.

(o) Transaction costs Transaction costs are incremental costs, which are separately identifiable and directly attributable to the acquisition, issue or disposal of a financial asset or financial liability. Transaction costs include fees and commissions paid to brokers and counterparties and fees paid to the Depository on trade settlement.

(p) Use of accounting judgements and estimates The Directors make estimates and judgements that affect the reported amount of assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. No significant estimates or judgements were made for either year ended 31 October 2020 or 31 October 2019.

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2. Significant Accounting Policies (continued)

(q) Distributions to holders of redeemable participating shares Distributions to holders of redeemable participating shares are recorded in the Statement of Comprehensive Income as finance costs when authorised. New Accounting Standards Adopted IFRS 9 - Prepayment Features with Negative Compensation The amendments to IFRS 9 clarify that a financial asset passes the Solely Payments of Principal and Interest (SPPI) criterion regardless of the event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract. The amendments are intended to apply where the prepayment amount approximates to unpaid amounts of principal and interest plus or minus an amount that reflects the change in a benchmark interest rate. This implies that prepayments at current fair value or at an amount that includes the fair value of the cost to terminate an associated hedging instrument, will normally satisfy the SPPI criterion only if other elements of the change in fair value, such as the effects of credit risk or liquidity, are small. The amendment applies to businesses acquired in annual reporting periods beginning on or after 1 January 2019. The standard did not have a significant impact on the Company’s financial statements IFRIC 23 Uncertainty over Income Tax Treatments The interpretation explains how to recognise and measure deferred and current income tax assets and liabilities where there is uncertainty over a tax treatment. In particular, it discusses: (a) how to determine the appropriate unit of account, and that each uncertain tax treatment should be considered separately or together as a group, depending on which approach better predicts the resolution of the uncertainty. (b) That the entity should assume a tax authority will examine the uncertain tax treatments and have full knowledge of all related information (c) that the entity should reflect the effect of the uncertainty in its income tax accounting when it is not probable that the tax authorities will accept the treatment. (d) that the impact of the uncertainty should be measured using either the most likely amount or the expected value method, depending on which method better predicts the resolution of the uncertainty (e) that the judgements and estimates made must be reassessed whenever circumstances have changed or there is new information that affects the judgements. While there are no new disclosure requirements, entities are reminded of the general requirement to provide information about judgements and estimates made in preparing the financial statements. The application of the Interpretation 23 did not have a significant impact on the Company’s financial statements.

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Accounting Standards not yet effective and not early adopted Amendment to IFRS 3: Definition of Business On 22 October 2018, the IFRS Interpretations Committee of the International Accounting Standards Board (“IASB”) issued a narrow-scope amendments to the definition of business in IFRS 3 Business combinations. The amendments are intended to assist entities to determine whether a transaction should be accounted for as a business combination or as an asset acquisition. The IASB provided guidance on option to use a concentration test which is a simplified assessments that results in an asset acquisition of substantially all of the fair value of the gross assets is concentrated in a single identifiable asset or a group of similar identifiable assets. The amendment applies to businesses acquired in annual reporting periods beginning on or after 1 January 2020. Earlier application is permitted. The standard is not expected to have a significant impact on the Company’s financial statements. Amendments to IAS 1 and IAS 8: Definition of Material On 31 October 2018, the International Accounting Standards Board (“IASB”) issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new definition states that, ’Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.’ This amendment is effective for annual periods beginning on or after 1 January 2020. Early application of the amendments is permitted and must be disclosed. The standard is not expected to have a significant impact on the Company’s financial statements.

3. Financial Assets and Liabilities at Fair Value through Profit or Loss

SPARX SPARX Japan SPARX OneAsia SPARX Smaller Japan Growth Japan Companies Sustainable Equity Total Fund Fund Equity Fund Fund 2020 2020 2020 2020 2020 JPY JPY JPY JPY USD Financial Assets - listed equity securities held for trading 174,710,275,984

160,943,286,010 112,290,000 12,965,385,300 6,600,188

- forward currency contracts 520,306 517,937 - 2,369 -

174,710,796,290 160,943,803,947 112,290,000 12,965,387,669 6,600,188

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3. Financial Assets and Liabilities at Fair Value through Profit or Loss (Continued)

SPARX SPARX Japan SPARX OneAsia SPARX Smaller Japan Growth Japan Companies Sustainable Equity Total Fund Fund Equity Fund Fund 2020 2020 2020 2020 2020 JPY JPY JPY JPY USD

Financial Liabilities

- forward currency contracts (167,082,039) (165,077,331) - (2,004,708) -

(167,082,039) (165,077,331) - (2,004,708) - Sparx One Asia All Cap fund terminated on 3 June 2019 and did not hold any assets and liabilities at fair

value through profit or loss at year end

SPARX SPARX Japan SPARX OneAsia SPARX Smaller Japan Growth Japan Companies Sustainable Equity Total Fund Fund Equity Fund Fund 2019 2019 2019 2019 2019 JPY JPY JPY JPY USD Financial Assets - listed equity securities held for trading

132,245,681,994

129,352,487,740 845,941,500 1,458,844,480 5,433,362

- forward currency contracts 630,211 614,585 - 15,626 -

132,246,312,205 129,353,102,325 845,941,500 1,458,860,106 5,433,362

SPARX SPARX Japan SPARX OneAsia SPARX Smaller Japan Growth Japan Companies Sustainable Equity Total Fund Fund Equity Fund Fund 2019 2019 2019 2019 2019 JPY JPY JPY JPY USD

Financial Liabilities

- forward currency contracts (53,349,965) (52,780,951) (569,011) (3) -

(53,349,965) (52,780,951) (569,011) (3) -

Sparx One Asia All Cap fund terminated on 30 June 2019 and did not hold any assets and liabilities at fair value through profit or loss at year end.

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3. Financial Assets and Liabilities at Fair Value through Profit or Loss (continued) The following table presents the financial instruments carried on the Statement of Financial Position by caption and by Level within the valuation hierarchy as at 31 October 2020: SPARX Japan Fund Level 1 Level 2 Level 3 Total JPY JPY JPY JPY Financial assets at fair value through profit or loss

- listed equity securities held for trading 160,943,286,010 - - 160,943,286,010 - forward currency contracts - 517,937 - 517,937 160,943,286,010 517,937 - 160,943,803,947

Level 1 Level 2 Level 3 Total JPY JPY JPY JPY Financial liabilities at fair value through profit or loss - - - -

- forward currency contracts - (165,077,331) - (165,077,331) - (165,077,331) - (165,077,331)

SPARX Japan Smaller Companies Fund Level 1 Level 2 Level 3 Total JPY JPY JPY JPY Financial assets at fair value through profit or loss

- listed equity securities held for trading 112,290,000 - - 112,290,000 - forward currency contracts - - - - 112,290,000 - - 112,290,000

SPARX Japan Sustainable Equity Fund Level 1 Level 2 Level 3 Total JPY JPY JPY JPY Financial assets at fair value through profit or loss


Level 1 Level 2 Level 3 Total JPY JPY JPY JPY Financial liabilities at fair value through profit or loss


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FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) 3. Financial Assets and Liabilities at Fair Value through Profit or Loss (continued)

SPARX OneAsia Growth Equity Fund Level 1 Level 2 Level 3 Total USD USD USD USD Financial assets at fair value through profit or loss

- listed equity securities held for trading 6,600,188 - - 6,600,188 6,600,188 - - 6,600,188

Sparx One Asia All Cap fund terminated on 30 June 2019 and did not hold any assets and liabilities at fair value through profit or loss at year end. The following table presents the financial instruments carried on the Statement of Financial Position by caption and by Level within the valuation hierarchy as at 31 October 2019:

SPARX Japan Fund Level 1 Level 2 Level 3 Total JPY JPY JPY JPY Financial assets at fair value through profit or loss

- listed equity securities held for trading 129,352,487,740 - -

129,352,487,740

- forward currency contracts - 614,585 - 614,585 129,352,487,740 614,585 - 129,353,102,325



SPARX Japan Smaller Companies Fund Level 1 Level 2 Level 3 Total JPY JPY JPY JPY Financial assets at fair value through profit or loss

- listed equity securities held for trading 845,941,500 - - 845,941,500 - forward currency contracts - - - - 845,941,500 - - 845,941,500


- forward currency contracts - (569,011) - (569,011) - (569,011) - (569,011)

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3. Financial Assets and Liabilities at Fair Value through Profit or Loss (continued)

SPARX Japan Sustainable Equity Fund Level 1 Level 2 Level 3 Total JPY JPY JPY JPY Financial assets at fair value through profit or loss



- forward currency contracts - (3) - (3) - (3) - (3)

SPARX OneAsia Growth Equity Fund Level 1 Level 2 Level 3 Total USD USD USD USD Financial assets at fair value through profit or loss

- listed equity securities held for trading 5,433,362 - - 5,433,362 5,433,362 - - 5,433,362

Sparx One Asia All Cap fund terminated on 30 June 2019 and did not hold any assets and liabilities at fair value through profit or loss at year end.

Investments Investments whose values are based on quoted market prices in active markets are classified within Level 1. These include active listed equities. The Directors do not adjust the quoted price for such instruments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

Investments that trade in markets that are not considered to be active, but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. At the year end, the Company held Forward currency contracts categorised as Level 2 securities.

Investments classified within Level 3 have significant unobservable inputs, as they trade infrequently or not at all. At the year end, the Company did not hold any Level 3 securities (2019: Nil).

There were no transfers between Level 1 and Level 2 during the year. Assets and liabilities not carried at fair value but for which fair value was disclosed The Sub-Funds did not disclose the fair value for cash balances, other receivables and, other payables and accrued expenses, because their carrying amounts were in a reasonable approximation of fair value. Cash balances have been classified within Level 1 and the rest of the assets and liabilities have been classified within Level 2.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

3. Financial Assets at Fair Value through Profit or Loss (continued)

Offsetting Financial Assets and Financial Liabilities

As at 31 October 2020, the Sub-Funds are subject to an enforceable master netting arrangement in the form of an ISDA agreement with the derivative counterparties. Under the terms of this agreement, offsetting of derivative contracts is permitted only in the event of bankruptcy or default of either party to the agreement. No financial assets or liabilities, subject to enforceable master netting arrangements or similar arrangements, are presented on a net basis in the Statement of Financial Position of the Sub-Funds as at 31 October 2020. The gross amounts of unrealised gains and losses on forwards, by contract, are disclosed in the Schedule of Investments of the Sub-Funds. As at 31 October 2020, the amount of unrealised gains on open forwards offset against unrealised losses was JPY 166,561,733 (2019: JPY 52,719,754).

The following table summarises the net financial assets as at 31 October 2020:

SPARX Japan Fund

Offsetting of Financial Assets, Derivative Assets and Collateral received: (i) (ii) (iii)=(ii)+(i)

Gross assets not offset in the

statement of financial position

Gross amounts of Cash

collateral received

Financial instruments Net amount

assets in the statement of financial position

Financial Assets JPY JPY JPY JPY

Forward currency contracts 517,937 - (517,937) - Total 517,937 - (517,937) -

Offsetting of Financial Liabilities, Derivative Liabilities and Collateral pledged: (i) (ii) (iii)=(ii)+(i)




collateral pledged


liabilities in the statement of financial position


Forward currency contracts 165,077,331 - (517,937) 164,559,394 Total 165,077,331 - (517,937) 164,559,394

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FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) 3. Financial Assets at Fair Value through Profit or Loss (continued)

SPARX Japan Smaller Companies Fund

As at 31 October 2020, SPARX Japan Smaller Companies Fund did not hold any forward contracts.

SPARX Japan Sustainable Equity Fund





collateral received




Forward currency contracts 2,369 - (2,369) - Total 2,369 - (2,369) -





collateral pledged




Forward currency contracts 2,004,708 - (2,369) 2,002,339 Total 2,004,708 - (2,369) 2,002,339

SPARX OneAsia Growth Equity Fund As at 31 October 2020, SPARX OneAsia Growth Equity Fund did not hold any forward contracts.

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3. Financial Assets at Fair Value through Profit or Loss (continued)

The following table summarises the net financial assets as at 31 October 2019: SPARX Japan Fund





collateral received




Forward currency contracts 614,585 (614,585) - Total 614,585 - (614,585) -





collateral pledged




Forward currency contracts 52,780,951 (614,585) 52,166,366 Total 52,780,951 - (614,585) 52,166,366

SPARX Japan Smaller Companies Fund Offsetting of Financial Liabilities, Derivative Liabilities and Collateral pledged:

(i) (ii) (iii)=(ii)+(i)




collateral pledged




Forward currency contracts 569,011 - - 569,011

Total 569,011 - - 569,011

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FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) 3. Financial Assets at Fair Value through Profit or Loss (continued)






collateral received




Forward currency contracts 15,626 (3) 15,623 Total 15,626 (3) 15,623

Offsetting of Financial Liabilities, Derivative Liabilities and Collateral pledged:

(i) (ii) (iii)=(ii)+(i)




collateral pledged




Forward currency contracts 3 - (3) - Total 3 - (3) -

SPARX OneAsia Growth Equity Fund As at 31 October 2019, SPARX OneAsia Growth Equity Fund did not hold any forward contracts. SPARX OneAsia All Cap Fund SPARX OneAsia All Cap Fund terminated on 30 June 2019 and did not hold any forward contracts at year end.

.

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FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) 4. Investments sold not yet settled and Investments purchased not yet settled

Investments sold not yet settled represent receivables for securities sold and Investments purchased not yet settled represent payables for securities purchased.

SPARX Japan

SPARX Japan

SPARX OneAsia

SPARX Smaller Sustainable Growth Total Japan Fund Companies

Fund Equity

Fund Equity

Fund 2020 2020 2020 2020 2020 JPY JPY JPY JPY USD Investments sold not yet settled

Receivables for securities sold 1,325,636,794 1,263,753,078 4,956,027 54,298,759 25,172

SPARX SPARX

Japan SPARX

Japan OneAsia

SPARX Smaller Sustainable Growth

Total Japan Fund

CompaniesFund

Equity Fund

Equity Fund

2020 2020 2020 2020 2020 JPY JPY JPY JPY USD Investments purchased not yet settled

Payables for securities purchased 1,435,465,837 1,375,620,525 - 59,845,312 -

SPARX OneAsia All Cap Fund terminated on 30 June 2019 and did not hold any balances on these accounts at year end.

SPARX

Japan SPARX

Japan SPARX

OneAsia SPARX Smaller Sustainable Growth Total Japan Fund Companies

Fund Equity

Fund Equity

Fund 2019 2019 2019 2019 2019 JPY JPY JPY JPY USD Investments sold not yet settled

Receivables for securities sold 125,666,777 103,987,967 - 357,714 196,879

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FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) 4. Investments sold not yet settled and Investments purchased not yet settled (continued)

SPARX SPARX

Japan SPARX

Japan OneAsia

SPARX Smaller Sustainable Growth

Total Japan Fund

CompaniesFund

Equity Fund

Equity Fund

2019 2019 2019 2019 2019 JPY JPY JPY JPY USD Investments purchased not yet settled

Payables for securities purchased 125,785,640 103,975,096 3,195,916 357,860 168,583

SPARX OneAsia All Cap Fund terminated on 30 June 2019 and did not hold any balances on these accounts at year end.

5. Other Receivables

SPARX

Japan SPARX

Japan SPARX

OneAsia SPARX Smaller Sustainable Growth

Total Japan Fund

Companies Fund

Equity Fund

Equity Fund

2020 2020 2020 2020 2020 JPY JPY JPY JPY USD

Other Receivable 22,309,192 184,996 6,168,078 15,206,040 7,182 22,309,192 184,996 6,168,078 15,206,040 7,182

Sparx One Asia All Cap fund terminated on 30 June 2019 and did not hold any balances on these accounts at year end. SPARX

Japan SPARX

Japan SPARX

OneAsia SPARX Smaller Sustainable Growth

Total Japan Fund

Companies Fund

Equity Fund

Equity Fund

2019 2019 2019 2019 2019 JPY JPY JPY JPY USD

Other Receivable 1,659,952 - - - 15,328 1,659,952 - - - 15,328

6. Cash and Cash Equivalents

All cash and cash equivalents are deposited with HSBC Bank plc. Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value and are held for the purpose of the meeting short-term cash commitments rather than for investments or other purposes. Details of the overdraft facility are disclosed in Note 18.

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7. Other Payables and Accrued Expenses

SPARX SPARX

Japan SPARX

Japan OneAsia SPARX

SPARX Smaller Sustainable Growth OneAsia Japan Companies Equity Equity All Cap Total Fund Fund Fund Fund Fund* 2020 2020 2020 2020 2020 2020 JPY JPY JPY JPY USD USD Audit fees accrued 4,706,674 4,310,601 34,281 337,353 234 - Directors’ fees payable 851,919 53,002 - 798,917 - - Withholding tax payable 94,842,556 81,611,784 183,178 13,017,620 287 - Other payables 2,541,611 71,045 1,783,221 583,638 993 -

Total 102,942,760 86,046,432 2,000,680 14,737,528 1,514 - *Terminated Sub-Fund SPARX SPARX

Japan SPARX

Japan OneAsia SPARX

SPARX Smaller Sustainable Growth OneAsia Japan Compani Equity Equity All Cap Total Fund Fund Fund Fund Fund* 2019 2019 2019 2019 2019 2019 JPY JPY JPY JPY USD USD Audit fees accrued 6,982,325 5,193,123 38,375 59,902 219 15,395 Corporate Secretarial Fees 25,486 - - 25,486 - - Directors’ fees payable 8,477,866 4,816,464 1,341,464 832,609 201 13,533 Withholding tax payable 112,930,318 110,051,328 953,310 1,925,680 - - Legal fees payables 416,613 - - - - 3,847 Other payables 4,809,385 2,957,367 339,337 207,613 524 11,527

Total 133,641,993 123,018,282 2,672,486 3,051,290 944 44,302 *Terminated Sub-Fund

The carrying amounts of other payables and accrued expenses approximate their fair values.

8. Fees and Expenses

Investment Advisory fees

SPARX Asset Management Co., Ltd (the “Investment Advisor”) is entitled to a fee as follows on the Net Asset Value of each class of SPARX Japan Fund, SPARX Japan Smaller Companies Fund, SPARX Japan Sustainable Equity fund and SPARX Asia Investment Advisors Limited (the “Investment Advisor”) is entitled to a fee as follows on the Net Asset Value of each class of SPARX OneAsia Growth Equity Fund. The Investment Advisor is also entitled to be reimbursed its out-of-pocket expenses out of the assets of the Company.

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8. Fees and Expenses (continued)

Investment Advisory fees (continued)

SPARX Japan Fund %

JPY Institutional A Class Shares 1.50 JPY Institutional B Class Shares 0.90 JPY Institutional C Class Shares 0.75 JPY Institutional D Class Shares 0.65 USD Hedged Class A Shares 1.50 USD Hedged Class B Shares 0.75 USD Hedged Class C Shares 0.90 USD Hedged Class D Shares 0.75 USD Institutional E Class Shares 0.90 EUR Hedged Class A Shares 1.50 EUR Hedged Class B Shares 0.90 EUR Hedged Class C Shares 0.75 CHF Hedged Class A Shares 1.50 CHF Hedged Class B Shares 0.90 GBP Hedged Class A Shares 1.50 GBP Hedged Class B Shares 0.90 GBP Institutional C Class Shares 0.90 GBP Institutional D Class Shares 0.90 GBP Institutional E Class Shares 0.75 GBP Institutional F Class Shares 0.75

SPARX Japan Smaller Companies

Fund %

JPY Institutional A Class Shares 1.75 JPY Institutional B Class Shares 1.00 JPY Institutional C Class Shares 0.80 JPY Institutional D Class Shares 0.35 USD Hedged Class A Shares 1.75 USD Hedged Class B Shares 1.00 USD Hedged Class D Shares 0.35 EUR Hedged Class A Shares 1.75 EUR Hedged Class B Shares 1.00 EUR Hedged Class D Shares 0.35 CHF Hedged Class A Shares 1.75 CHF Hedged Class B Shares 1.00 GBP Hedged Class A Shares 1.75 GBP Hedged Class B Shares 1.00 GBP Hedged Class F Shares 0.35 GBP Hedged Class G Shares 0.35 GBP Institutional D Class Shares 0.35 GBP Institutional E Class Shares 0.35

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8. Fees and Expenses (continued)

Investment Advisory fees (continued)


% JPY Institutional A Class Shares 1.50 JPY Institutional B Class Shares 0.90 JPY Institutional C Class Shares 0.75 JPY Institutional D Class Shares 0.65 JPY Institutional E Class Shares 0.35 USD Hedged Class A Shares 1.50 USD Hedged Class B Shares 0.90 USD Hedged Class C Shares 0.75 USD Hedged Class D Shares 0.35 USD Institutional F Class Shares 0.35 EUR Hedged Class C Shares 0.75 EUR Hedged Class D Shares 0.35 EUR Hedged Class E Shares 0.35 GBP Hedged Class C Shares 0.75 GBP Hedged Class G Shares 0.35 GBP Hedged Class H Shares 0.35 GBP Institutional D Class Shares 0.75 GBP Institutional E Class Shares 0.35 GBP Institutional F Class Shares 0.35 GBP C Class Shares 0.75

SPARX OneAsia Growth Equity Fund*

% USD Class A Shares 1.50 USD Class B Shares 0.90 USD Class C Shares 0.75 * Terminated Sub-Fund Total Investment advisory fees charged for the year ended 31 October 2020 were JPY 1,194,570,890 (2019: JPY 1,109,902,205). Total Investment Advisory fees payable at 31 October 2020 were JPY 112,184,635 (2019: JPY 345,393,162).

Management fees Bridge Fund Management Limited (the “Manager”) is entitled to a fee of 0.0275% on total Net Asset Value of SPARX Japan Fund and SPARX Japan Sustainable Equity fund. Total Management fees charged for the year ended 31 October 2020 were JPY 22,882,504 (2019: JPY Nil). Total Investment Advisory fees payable at 31 October 2020 were JPY 3,746,231 (2019: JPY Nil).

Administration and Depositary fees

The Company pays HSBC Securities Services (Ireland) DAC (the “Administrator”) and HSBC France (the “Depositary”) out of the assets of each Fund an annual fee, accrued at each Valuation Point and payable monthly in arrears.

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8. Fees and Expenses (continued) Administration and Depositary fees (continued) The Administrator is entitled to a fee of 0.06% per annum of the Net Asset Value of each Fund up to US$500 million, a fee of 0.05% per annum of the Net Asset Value over US$500 million. (The Administrators fee is subject to a minimum monthly fee for the first share class of US$5,833 and a minimum monthly fee of US$500 for every additional share class. Company paid annual fees of US$15,000 per set of annual and interim financial statements for the Company and initial Fund, plus an additional fee of US$2,500 for each additional Fund created thereafter. The Administrator is also entitled to any reasonable out-of-pocket expenses incurred on behalf of the Fund.

The Depositary is entitled to a fee of 0.04% per annum in respect to the first US $500 million of the Net Asset Value of each Fund and a fee of 0.03% per annum of the Net Asset Value above US$500 million. Also, subject to a minimum annual fee of US$25,000. The Depositary is also entitled to any reasonable out-of-pocket expenses incurred on behalf of the Fund. Administration fees charged for the year ended 31 October 2020 were JPY 184,318,541 (2019: JPY 196,665,617) and depositary fees charged were JPY 56,293,350 (2019: JPY 63,150,137). Administration fees payable at 31 October 2020 were JPY 23,775,781 (2019: JPY 15,065,454) and depositary fees payable were JPY 9,578,756 (2019: JPY 3,556,164). The Administrator has received a fee for hedging services. Hedging service fees for the year ended 31 October 2020 were JPY 37,290,187 (2019: JPY 39,880,697).

Directors’ fees and expenses The Directors are entitled to a fee and remuneration for their services at a rate to be determined by the Directors up to a maximum in aggregate of EUR 75,000 per annum. Mr. Alan Ng has waived his entitlement to receive remuneration. Directors may be entitled to special remuneration if called upon to perform any special or extra services to the Company. All Directors are entitled to reimbursement by the Company of expenses properly incurred in connection with the business of the Company or the discharge of their duties. Directors’ fees charged for the year amounted to JPY 10,641,551 (2019: JPY 10,609,239), of which JPY 851,919 (2019: JPY 8,477,866) was payable at the year end. Auditors’ remuneration

Audit fees charged by the statutary auditors, Grant Thornton, for the year amounted to JPY 5,305,364 (2019:JPY 5,272,398) of which 4,706,674 (2019:JPY 6,982,325) was payable at the year end. Fees accrued to the statutory auditors, Grant Thornton, in respect of the year ended 31 October 2020, and the year ended 31 October 2019, related entirely to the audit of the financial statements of the Company.

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9. Share Capital and Redeemable Participating Shares

Authorised The authorised share capital of the Company is 5,000,000,000 shares of no par value and EUR 40,000 divided into 40,000 redeemable non-participating subscriber shares of EUR 1.00 each.

Share Capital (“Non Participating Subscriber Shares”) Two non-participating subscriber shares amount to EUR 2.00 being subscriber shares of EUR 1.00 each, are held by SPARX Asset Management Co., Ltd. The non-participating subscriber shares do not form part of the Net Asset Value of the Company and are thus disclosed in the financial statements by way of this note only. In the opinion of the Directors, this disclosure reflects the nature of the Company’s business as an investment fund.

The rights attaching to the participating shares are as follows:

Redeemable Participating Shares

The net assets attributable to holders of redeemable participating shares are at all times equal to the Net Asset Value of the Company. The participating shares are in substance a liability of the Company to shareholders under IAS 32 as they can be redeemed at the option of the shareholder.

The movement in the number of participating shares is as follows:

SPARX Japan Fund 2020 2019 JPY Institutional A Class Shares At beginning of year 116,168 136,644 Issued 3,120 9,228 Redeemed (5,220) (29,704) At end of year 114,068 116,168 JPY Institutional B Class Shares At beginning of year 1,495,090 2,345,537 Issued 212,751 429,231 Redeemed (1,181,786) (1,279,678) At end of year 526,055 1,495,090 JPY Institutional C Class Shares At beginning of year 3,341,676 2,357,218 Issued 2,354,680 3,305,389 Redeemed (679,676) (2,320,931) At end of year 5,016,680 3,341,676 JPY Institutional D Class Shares At beginning of year 2,703,598 - Issued 2,023,837 2,703,598 Redeemed (674,076) - At end of year 4,053,359 2,703,598

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FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) 9. Share Capital and Redeemable Participating Shares (continued)

SPARX Japan Fund (continued) 2020 2019 USD Hedged Class A Shares At beginning of year 28,224 55,057 Issued 3,294 9,444 Redeemed (12,165) (36,277) At end of year 19,353 28,224 USD Hedged Class B Shares At beginning of year 164,379 509,536 Issued 73,180 61,161 Redeemed (10,615) (406,318) At end of year 226,944 164,379 USD Hedged Class C Shares At beginning of year 76,239 91,021 Issued 12,432 32,806 Redeemed (67,574) (47,588) At end of year 21,097 76,239 USD Hedged Class D Shares At beginning of year 581,317 581,317 Issued - - Redeemed - - At end of year 581,317 581,317 USD Institutional E Class Shares At beginning of year 1,800 - Issued 4,397 1,800 Redeemed - - At end of year 6,197 1,800 EUR Hedged Class A Shares At beginning of year 23,178 14,640 Issued 740 10,435 Redeemed (15,785) (1,897) At end of year 8,133 23,178 EUR Hedged Class B Shares At beginning of year 69,683 122,118 Issued 25,994 24,221 Redeemed (45,374) (76,656) At end of year 50,303 69,683 EUR Hedged Class C Shares At beginning of year 734,289 774,939 Issued 45,000 343,181 Redeemed (474,289) (383,831) At end of year 305,000 734,289

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SPARX Japan Fund (continued) 2020 2019 GBP Hedged Class B Shares At beginning of year 92,584 99,684 Issued 206,593 36,358 Redeemed (17,471) (43,458) At end of year 281,706 92,584 GBP Institutional C Class Shares At beginning of year 269,573 589,952 Issued 71,927 360,107 Redeemed (224,210) (680,486) At end of year 117,290 269,573 GBP Institutional D Class Shares At beginning of year 1,279 - Issued 8,595 70,996 Redeemed (5,731) (69,717) At end of year 4,143 1,279 GBP Institutional E Class Shares At beginning of year 808,639 - Issued 447,422 818,964 Redeemed (210,065) (10,325) At end of year 1,045,996 808,639 GBP Institutional F Class Shares At beginning of year 68,482 - Issued 166,138 69,616 Redeemed (22,483) (1,134) At end of year 212,137 68,482

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The movement in the number of participating shares is as follows:

SPARX Japan Smaller Companies Fund 2020 2019 JPY Institutional A Class Shares At beginning of year 18,316 21,908 Issued - - Redeemed (14,452) (3,592) At end of year 3,864 18,316 JPY Institutional B Class Shares At beginning of year 18,286 152,036 Issued 2,000 18,933 Redeemed (18,797) (152,683) At end of year 1,489 18,286 JPY Institutional C Class Shares At beginning of year - 1,253,515 Issued - 18,849 Redeemed - (1,272,364) At end of year - - USD Hedged Class B Shares At beginning of year 9,078 11,542 Issued - - Redeemed (9,078) (2,464) At end of year - 9,078

SPARX Japan Sustainable Equity Fund 2020 2019 JPY Institutional A Class Shares At beginning of year - - Issued - 2,238 Redeemed - (2,238) At end of year - -

JPY Institutional B Class Shares At beginning of year 11,145 - Issued 105,273 145,369 Redeemed (116,415) (134,224) At end of year 3 11,145 JPY Institutional C Class Shares At beginning of year 106,236 1,166,520 Issued - 130,596 Redeemed (106,236) (1,190,880) At end of year - 106,236

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SPARX Japan Sustainable Equity Fund (continued) 2020 2019 GBP Institutional F Class Shares* At beginning of year 11,097 - Issued 488 12,404 Redeemed (11,371) (1,307) At end of year 214 11,097

GBP Institutional E Class Shares At beginning of year 6,533 - Issued 853,570 6,844 Redeemed (25,205) (311) At end of year 834,898 6,533

GBP Hedged Class C Shares** At beginning of year 2,515 - Issued 7,066 2,547 Redeemed (9,238) (32) At end of year 343 2,515

JPY Institutional E Class Shares At beginning of year - - Issued 32,200 - Redeemed (500) - At end of year 31,700 -

GBP Institutional D Class Shares At beginning of year - - Issued 833 - Redeemed - - At end of year 833 -

GBP Hedged Class H Shares At beginning of year - - Issued 11,798 - Redeemed (1,664) - At end of year 10,134 -

* Name of GBP C Class Shares was changed to GBP Institutional F Class Shares with effect from 29 January 2020. ** Name of GBP Hedged Class B Shares was changed to GBP Hedged Class C Shares with effect from 29 January 2020.

SPARX OneAsia Growth Equity Fund 2020 2019 USD B Class Shares At beginning of year 50,000 - Issued - 50,000 Redeemed - - At end of year 50,000 50,000

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SPARX OneAsia All Cap Fund* 2019 USD Class C Shares At beginning of year 1,086,677 Issued - Redeemed (1,086,677) At end of year -


Participating shares may be redeemed on each dealing date or such other date or dates as the Board of Directors shall from time to time determine (Valuation Day) at the Net Asset Value per share based on last traded prices. The shareholder must request such redemption with 2 business days’ notice prior to the dealing date or such other day as the Directors may determine.

Participating Shares carry no right to receive notice of, attend or vote at any general meeting of the Company. The holders are entitled to receive all dividends declared and paid by the Company. Upon winding up, the holders are entitled to a return of capital based on the Net Asset Value per share of the Company.

10. Dividends to shareholders

The Directors are empowered to declare and pay dividends for Shares of any Sub-Fund in the Company. It is the Directors current intention to declare and pay a dividend to the Shareholders. Shareholders may however decide to have this dividend re-invested in Shares upon request.

Sub-Funds may declare dividends in respect of each Class of Shares, payable out of the net income and net realised and unrealised gains less accrued expenses of the Sub-Funds, subject to certain adjustments, attributable to the Shares. Dividends are usually declared annually and paid to Shareholders within 2 months of the date of declaration. SPARX Japan Fund declared dividends of JPY 96,293,728 (2019: JPY 21,583,372) for the shareholders of EUR Hedged Class C Shares, GBP Institutional Class D Shares, GBP Institutional Class F Shares, JPY Institutional Class D Shares and USD Unhedged Class E Shares and SPARX Japan Sustainable Equity Fund declared dividend of JPY 50,825,976 (2019: Nil) for shareholders of GBP Institutional E Class Shares during the year ended 31 October 2020. No other Sub-Fund has declared dividends for the year.

11. Taxation The Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. It is not chargeable to Irish tax on its income or gains. However, Irish tax may arise on the happening of a “chargeable event”. A chargeable event includes any distribution payments to shareholders or any encashment, redemption or transfer of shares. Following legislative changes in the Finance Act 2006, the holding of shares at the end of a Relevant Year will, in respect of Irish Resident investors, also constitute a chargeable event. To the extent that any tax issues arise on such a chargeable event, such tax will be allowed as a credit against any tax payable on the subsequent encashment, redemption, cancellation or transfer of the relevant Shares.

Relevant Year is defined as a period of 8 years beginning with the acquisition of a Share by a shareholder and each subsequent period of 8 years beginning immediately after the preceding relevant period. No Irish tax will arise on the Company in respect of chargeable events in respect of:

(a) a shareholder who is neither Irish resident nor ordinarily resident in Ireland for tax purposes at the time of the chargeable event, provided appropriate valid declarations in accordance with the provisions of the Taxes Consolidation Act, 1997, as amended are held by the Company; and (b) certain exempted Irish tax resident shareholders who have provided the Company with the necessary signed statutory declarations.

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11. Taxation (continued)

No liability in respect of Irish capital duty or stamp duty will arise in respect of the issue, reissue, transfer, repurchase or redemption of Shares in the Company. Dividends and interest on securities issued in countries other than the Republic of Ireland may be subject to taxes including withholding taxes imposed by such countries. The Company may not be able to benefit from a reduction in the rate of withholding taxes by virtue of the double taxation agreements in operation between Ireland and other countries. The Company may not therefore be able to reclaim withholding tax suffered by it in various countries. Dividends received from investment in Irish equities may be subject to Irish dividend withholding tax. The Company can however, make a declaration to the payer that it is a collective investment undertaking beneficially entitled to the dividends to avoid this withholding tax.

Capital gains which the Company receives with respect to its investments (other than securities of Irish issuers) may be subject to taxes, including withholding taxes, in the countries in which the issuers of investments are located. No Capital Gain tax provision was required in relation to IFRIC 23.

12. Soft Commissions

There were no soft commission arrangements affecting the Company during the years ended 31 October 2020 and 31 October 2019.

13. Risks Associated with Financial Instruments

The Company’s risks are those set out in the Prospectus and Fund Information Card and any consideration of risk here should be viewed in the context of the Prospectus which is the primary documentation governing the operation of the Company.

The Company’s activities expose it to a variety of financial risks: market risk (including other price risk, currency risk and interest rate risk), credit risk and liquidity risk. The Company’s overall risk management process focuses on the unpredictability of financial markets and seeks to mitigate potential adverse effects on the Company’s financial performance.

The Manager and Investment Advisor seeks to mitigate the financial risk in the Company through the Investment Advisor’s daily investment process. The investment process is designed to take an adaptive and flexible approach. Market risk is the most significant to the Company but must be viewed in the context of the Company being structured as a UCITS.

The investment objective of the SPARX Japan Fund is to provide long-term capital growth by identifying and acquiring undervalued Japanese equities. The Fund will normally invest at least 80% of its assets in equity securities of Japanese companies and the rest of its assets in ancillary liquid assets such as money market instruments or cash deposits. The investment objective of the SPARX Japan Smaller Companies Fund is to provide long-term capital appreciation by carefully selecting and investing in Japanese smaller capitalisation companies listed and traded on recognised Japanese stock exchanges and markets. The Fund will invest two-thirds of its assets in the equity securities of smaller capitalisation companies domiciled in or exercising a predominant part of their economic activity in Japan.

The investment objective of the SPARX Japan Sustainable Equity Fund is to achieve sustainable capital growth by investing in shares of Japanese equities. The Fund will normally invest at least 80% of its assets in equity securities of Japanese companies and the rest of its assets in ancillary liquid assets such as money market instruments or cash deposits.

The investment objective of the SPARX OneAsia Growth Equity Fund is to provide long-term capital appreciation by identifying high growth companies which are benefitting from the fast-growing economies in Asia (ex-Japan). The Investment Advisor will identify these companies by conducting cross-border and bottom-up research across Asia.

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13. Risks Associated with Financial Instruments (continued) From year to year the Company’s exposure to risk alters as market conditions change and as the components of the portfolio change and are adjusted through trading, subscriptions and redemptions. With regard to the objectives, policies and processes for managing the risk, whilst adapting to the current market conditions, the approach remains consistent from year to year. Under the terms of the Investment Advisor Agreement the Manager is delegated with responsibility for advising the Directors on the management of the assets and investments of the Company, including the risk management. The Directors exercise oversight over the Manager and Investment Advisor and at regularly held Board meetings both the Manager and Investment Advisor report to the Board on the performance of the Company, strategies being utilised and the risk management process. The sensitivity analysis in the notes below, of the risk factors, represent sensitivity analysis of the effect of movements in various risk variables on the Company’s performance. In certain cases a linear relationship between movements in the risk variable and the Company’s performance is assumed to create the sensitivity analysis. In reality a linear relationship is unlikely. The various analyses shown are static scenarios and represent the effect on the Company of movements in a single risk variable. In reality the Company is affected by dynamic movements in these risk variables and in a global context the risk variables have certain inter-relationships which cause dynamic movements in the variables. As a result it should be noted that movements to the Company may be greater than that shown in the sensitivity analysis. The analysis as that of a reasonably possible change in the relevant risk variable and not a worst case or best case analysis has been presented. IFRS 7 Financial Instruments: Disclosure does not require a sensitivity analysis of the worst case scenario, but states that analysis should be of reasonably possible changes. The analysis should not be taken to rule out a worst case scenario occurring in the future the impact of which is greater than the represented adverse movements in Fund performance. The sensitivity analysis is carried out continuously by the Investment Advisor however, what is shown in the notes is calculated at the Statement of Financial Position date. As such it should be noted that future exposures may differ from exposures at the Statement of Financial Position date. The Sub-Funds use various techniques and instruments for the purposes of efficient portfolio management. These are set out in the Prospectus and Fund Information Cards. Market Risk The potential for changes in the fair value or cash flows of the Company’s investment portfolio is referred to as market risk. Categories of market risk include other price risk, currency risk and interest rate risk.

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13. Risks Associated with Financial Instruments (continued) Marker Risk (continued)

The table below analyses the Company’s concentration of price risk by industrial distribution. SPARX Japan Fund

Financial assets at fair value through

profit or loss


profit or loss 2020 2019 JPY JPY Basic Materials 6,924,840,000 4,971,008,000 Consumer Goods 53,883,626,700 34,953,542,200 Consumer Services 8,283,405,000 9,707,883,600 Financial - 11,415,270,640 Healthcare 29,025,239,800 19,307,282,400 Industrials 46,365,549,900 42,909,849,900 Telecommunication 16,460,624,610 6,087,651,000 Total 160,943,286,010 129,352,487,740



profit or loss


profit or loss 2020 2019 JPY JPY Basic Materials 4,600,500 45,851,000 Consumer Goods 20,413,300 189,959,000 Consumer Services 12,457,600 37,914,400 Financial 4,929,400 50,815,300 Healthcare 5,044,000 39,930,000 Industrial 36,927,200 260,775,900 Technology 17,084,000 114,178,800 Telecommunication 7,021,000 79,185,900 Transportation 3,813,000 27,331,200 Total 112,290,000 845,941,500



profit or loss


profit or loss 2020 2019 JPY JPY Basic Materials 688,310,800 110,705,660 Consumer Goods 3,733,109,550 339,654,300 Commercial Services 89,861,500 15,257,000 Consumer Services 664,805,600 163,294,900 Financial 544,567,300 134,676,520 Healthcare 997,574,200 82,131,000 Industrials 3,734,032,200 375,382,000 Technology 1,672,590,000 147,066,900 Telecommunication 553,271,150 57,870,400 Transportation 287,263,000 32,805,800 Total 12,965,385,300 1,458,844,480

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13. Risks Associated with Financial Instruments (continued)

Market Risk (continued)

SPARX OneAsia Growth Equity Fund


profit or loss


profit or loss 2020 2019 USD USD Consumer Goods 279,303 1,184,074 Consumer Services 367,583 402,398 Financial 1,255,611 945,751 Healthcare 1,620,752 684,767 Industrials 1,143,349 1,214,836 Technology 1,511,644 638,982 Telecommunication 335,070 88,705 Transportation 86,876 150,658 Total 6,600,188 5,310,171

(a) Price Risk Price risk is the risk that the value of a financial investment will fluctuate as a result of changes in market prices, whether caused by factors specific to an individual investment, its issuer or any factor affecting financial investments traded in the market. It represents the potential loss the Company might suffer through holding market positions in the face of price movements. The Investment Advisor considers the asset allocation of the portfolio in order to spread the risk associated with particular market sectors whilst continuing to follow the Company’s investment objective. As the majority of Company financial investments are carried at fair value with fair value changes recognised in the Statement of Comprehensive Income, all changes in market conditions will directly affect net assets attributable to holders of redeemable participating shares

The portfolio is managed by a team of portfolio managers and its risk is managed by a risk management team. The risk management team monitors its risk level and risk decomposition. Risk management team reports to portfolio managers. Management’s best estimate of the effect on the net assets attributable to holders of redeemable participating shares and on the change in net assets attributable to holders redeemable participating shares from operations due to a reasonably possible change in equity indices, with all other variables held constant is indicated in the following table. In practice, the actual trading results may differ from the sensitivity analysis below and the difference could be material. An equivalent increase in each of the indices shown below would have resulted in an equivalent, but opposite, impact.

SPARX Japan Fund

Change in equity price

%

Effect on the net assets attributable to holders of

redeemable participating shares and on the change in net assets

JPY At 31 October 2020 TOPIX Index 5 4,232,241,982 At 31 October 2019 TOPIX Index 5 2,478,393,706

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FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED) 13. Risks Associated with Financial Instruments (continued)

Market Risk (continued) (a) Price Risk (continued)



%



JPY At 31 October 2020 TOPIX Index 5 3,206,026 At 31 October 2019 TOPIX Index 5 14,869,327



%



JPY At 31 October 2020 TOPIX Index 5 315,221,548 At 31 October 2019 TOPIX Index 5 22,343,453

SPARX OneAsia Growth Equity Fund Change

in equity price

%



USD At 31 October 2020 MSCI AC Asia excluding Japan net Total Return USD Index 5 160,645 At 31 October 2019 MSCI AC Asia excluding Japan net Total Return USD Index 5 99,864

The above disclosure is provided for compliance with the requirement on IFRS 7 Financial Instruments: Disclosures only. The Company does not monitor the equity price risk sensitivity with market indices actively since the equities held by the Company may not have a material direct relationship with the local market indices. (b) Currency Risk

Currency risks may result from exposures to changes in spot prices and volatilities of currency rates.

The primary purpose of the Company’s foreign currency economic hedging activities is to protect against the volatility associated with investments denominated in foreign currencies and other assets and liabilities created in the normal course of business.

The Company primarily utilises forward exchange contracts with maturities of less than twelve months to hedge foreign-currency-denominated financial assets, liabilities, and firm commitments. Increases or decreases in the Company’s foreign-currency-denominated financial assets and liabilities are partially offset by gains and losses on the economic hedging instruments. The Company does not use foreign currency forward exchange contracts or purchased currency options for trading purposes.

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Market Risk (continued) (b) Currency Risk (continued) Company may from time to time utilise techniques and instruments to seek to protect (hedge) currency exchange transactions either on a spot basis or by buying currency exchange forward contracts. The forward contracts held as at 31 October 2020 are disclosed in Schedule of Investment. The table below outlines the Company’s foreign currency risk exposure: SPARX Japan Fund (Amounts are expressed in their JPY equivalents)

2020 CHF EUR GBP US$ Total

Cash and cash equivalents - 4,326,504 - 5,378,533 9,705,037Due from shareholders - 8,458,357 148,959,764 - 157,418,121Investments sold not yet settled

- - 6,991,656 - 6,991,656 Other receivables 55,628 - - 129,368 184,996 55,628 12,784,861 155,951,420 5,507,901 174,299,810 Bank overdraft - - (24,162,105) - (24,162,105)Financial liabilities at fair value through profit or loss - financial derivative instruments - (81,917,310) (63,060,091) (20,097,662) (165,075,063)Due to shareholders - (4,314,713) (27,870,482) - (32,185,195)Investments purchased not yet settled

- (4,973,513) (103,024,240) - (107,997,753)Administration fees payable - (1,279,968) (1,172,280) (17,860,585) (20,312,833)Depositary fees payable - - - (8,134,056) (8,134,056)Other payables and accrued expenses - (4,363,603) - (71,045) (4,434,648) - (96,849,107) (219,289,198) (46,163,348) (362,301,653) Total 55,628 (84,064,246) (63,337,778) (40,655,447) (188,001,843)

2020 JPY JPY JPY JPY Total Effect on net assets on movement in CHF against JPY rate of 5%* 2,781 - - - 2,781 Effect on net assets on movement in EUR against JPY rate of 5%* - (4,203,212) - - (4,203,212) Effect on net assets on movement in GBP against JPY rate of 5%* - - (3,166,889) - (3,166,889) Effect on net assets on movement in US$ against JPY rate of 5%* - - - (2,032,772) (2,032,772) Total effect on net assets 2,781 (4,203,212) (3,166,889) (2,032,772) (9,400,092)

* The estimated movement is based on the director’s determination of a reasonably possible change in foreign exchange rates. In practice, the actual results may differ from the sensitivity analysis above and the difference could be material.

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Market Risk (continued) (b) Currency Risk (continued) SPARX Japan Fund (continued) (Amounts are expressed in their JPY equivalents)

2019 EUR GBP US$ Total

Cash and cash equivalents 12,400,735 24,451,836 9,522,776 46,375,347 Financial assets at fair value through profit or loss - financial derivative instruments 235 614,350 - 614,585 Due from shareholders - 132,915,946 - 132,915,946 Investments sold not yet settled 804,082 206,887 - 1,010,969 13,205,052 158,189,019 9,522,776 180,916,847 Financial liabilities at fair value through profit or loss - financial derivative instruments (10,810,988) (33,925) (41,936,038) (52,780,951)Due to shareholders (157,324,343) (45,323,531) - (202,647,874)Investments purchased not yet settled - (102,963,898) (1,011,198) (103,975,096)Administration fees payable (3,050,341) (40,970) (9,145,246) (12,236,557)Depositary fees payable - - (2,946,718) (2,946,718)Other payables and accrued expenses (10,009,811) - (2,957,143) (12,966,954) (181,195,483) (148,362,324) (57,996,343) (387,554,150) Total (167,990,431) 9,826,695 (48,473,567) (206,637,303)

2019 JPY JPY JPY Total

Effect on net assets on movement in EUR against JPY rate of 5%* (8,399,522) - - (8,399,522)

Effect on net assets on movement in GBP against JPY rate of 5%* - 491,335 - 491,335

Effect on net assets on movement in US$ against JPY rate of 5%* - - (2,423,678) (2,423,678) Total effect on net assets (8,399,522) 491,335 (2,423,678) (10,331,865)


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13. Risks Associated with Financial Instruments (continued) Market Risk (continued) (b) Currency Risk (continued) SPARX Japan Smaller Companies Fund (Amounts are expressed in their JPY equivalents)

2020 CHF EUR US$ Total Cash at bank - 5,502 240,178 245,680 Other receivables 315 16,227 - 16,542

315 21,729 240,178 262,222

Administration fees payable - (14,201) (2,160,495) (2,174,696) Depositary fees payable - - (498,136) (498,136) Other payables and accrued expenses - (1,431,546) (385,956) (1,817,502) - (1,445,747) (3,044,587) (4,490,334) Total 315 (1,424,018) (2,804,409) (4,228,112)

2020 JPY JPY JPY Total Effect on net assets on movement in CHF against JPY rate of 5%* 16 - - 16 Effect on net assets on movement in EUR against JPY rate of 5%* - (71,201) - (71,201) Effect on net assets on movement in US$ against JPY rate of 5%* - - (140,220) (140,220) Total effect on net assets 16 (71,201) (140,220) (211,405)


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13. Risks Associated with Financial Instruments (continued) Market Risk (continued) (b) Currency Risk (continued) SPARX Japan Smaller Companies Fund (continued) (Amounts are expressed in their JPY equivalents)

2019 EUR US$ Total Cash at bank - 478,773 478,773 Financial assets at fair value through profit or loss - - - - financial derivative instruments - - -

- 478,773 478,773

Financial liabilities at fair value through profit or loss - financial derivative instruments - (569,011) (569,011) Administration fees payable (15,683) (2,178,213) (2,193,896) Depositary fees payable - (302,670) (302,670) Other payables and accrued expenses (1,380,041) (339,135) (1,719,176) (1,395,724) (3,389,029) (4,784,753) Total (1,395,724) (2,910,256) (4,305,980)

2019 JPY JPY Total

Effect on net assets on movement in EUR against JPY rate of 5%* (69,786) - (69,786)

Effect on net assets on movement in US$ against JPY rate of 5%* - (145,513) (145,513)

Total effect on net assets (69,786) (145,513) (215,299)


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13. Risks Associated with Financial Instruments (continued) Market Risk (continued) (b) Currency Risk (continued) SPARX Japan Sustainable Equity Fund (Amounts are expressed in their JPY equivalents)

2020 CHF EUR GBP US$ Total Cash at bank - - 496,514 - 496,514 Due from shareholders - - 8,744,858 - 8,744,858 Other receivables 1,057 28,096 - - 29,153

1,057 28,096 9,241,372 - 9,270,525

Financial derivative instruments liability - - (2,004,708) - (2,004,708)

Due to shareholders - - (1,166,962) - (1,166,962) Investments purchased not yet settled - - (4,602,618) - (4,602,618) Administration fees payable

- - (48,838) (1,164,218) (1,213,056) Depositary fees payable

- - - (898,000) (898,000) Other payables and accrued expenses - (1,175,108) - (544,800) (1,719,908) - (1,175,108) (7,823,126)

(2,607,018) (11,605,252)

Total 1,057 (1,147,012) 1,418,246 (2,607,018) (2,334,727)

2020 JPY JPY JPY JPY Total Effect on net assets on movement in CHF against JPY rate of 5%* 53 - - - 53 Effect on net assets on movement in EUR against JPY rate of 5%* - (57,351) - - (57,351) Effect on net assets on movement in GBP against JPY rate of 5%* - - 70,912 - 70,912 Effect on net assets on movement in US$ against JPY rate of 5%* - - (130,351) (130,351) Total effect on net assets 53 (57,351) 70,912 (130,351) (116,737)


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13. Risks Associated with Financial Instruments (continued) Market Risk (continued) (b) Currency Risk (continued) SPARX Japan Sustainable Equity Fund (continued) (Amounts are expressed in their JPY equivalents)

2019 EUR GBP US$ Total Cash at bank - 1,019,808 - 1,019,808 Financial assets at fair value through profit or loss - - - - - financial derivative instruments

- 15,626 - 15,626 Due from shareholders - 347,381 - 347,381 Investments sold not yet settled - 10,483 - 10,483

- 1,393,298 - 1,393,298

Financial derivative instruments liability - (3) - (3)

Due to shareholders - (554,573) - (554,573) Investments purchased not yet settled - (347,381) - (347,381) Administration fees payable - (2,752) (542,147) (544,899) Depositary fees payable - - (283,817) (283,817) Other payables and accrued expenses

(918,056) - (207,554) (1,125,610) (918,056) (904,709) (1,033,518) (2,856,283) Total (918,056) 488,589 (1,033,518) (1,462,985)

2019 JPY JPY JPY Total Effect on net assets on movement in EUR against JPY rate of 5%* (45,903) - - (45,903) Effect on net assets on movement in GBP against JPY rate of 5%* - 24,429 - 24,429 Effect on net assets on movement in US$ against JPY rate of 5%* - - (51,676) (51,676) Total effect on net assets (45,903) 24,429 (51,676) (73,150)

* The estimated movement is based on director’s determination of a reasonably possible change in foreign exchange rates. In practice, the actual results may differ from the sensitivity analysis above and the difference could be material.

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Market Risk (continued) (b) Currency Risk (continued)

SPARX OneAsia All Cap Fund** (Amounts are expressed in their USD equivalents)

2019 EUR Total

Cash at bank 20,399 20,399

20,399 20,399

Administration fees payable (480) (480)

Other payables and accrued expenses (36,413) (36,413)

(36,893) (36,893) Total (16,494) (16,494)

2019 JPY Total

Effect on net assets on movement in EUR against US$ rate of 5%* (825) (825)

Total effect on net assets (825) (825)

* The estimated movement is based on director’s determination of a reasonably possible change in foreign exchange rates. In practice, the actual results may differ from the sensitivity analysis above and the difference could be material. **Terminated Sub-Fund

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13. Risks Associated with Financial Instruments (continued) Market Risk (continued)

(b) Currency Risk (continued)

SPARX OneAsia Growth Equity Fund (Amounts are expressed in their USD equivalents)

2020 CNY EUR HKD MYR PHP TWD Total

Cash and cash equivalents - - 77,098 - 62,525 50,731 190,354

Investments sold not yet settled - - - - 25,172 - 25,172

Dividends receivable 1,929 - - 1,369 - 453 3,751

Other receivables - 82 - - - - 82

1,929 82 77,098 1,369 87,697 51,184 219,359

Investments purchased not yet settled

Administration fees payable - (12) - - - - (12)

Other payables and accrued expenses (192) (234) - - - (95) (521)

(192) (246) - - - (95) (533) Total 1,737 (164) 77,098 1,369 87,697 51,089 218,826

2020 USD USD USD USD USD USD Total

Effect on net assets on movement in CNY against US$ rate of 5%* 87 - - - - - 87 Effect on net assets on movement in EUR against US$ rate of 5%* - (8) - - - - (8) Effect on net assets on movement in HKD against US$ rate of 5%* - - 3,855 - - - 3,855 Effect on net assets on movement in MYR against US$ rate of 5% - - - 68 - - 68 Effect on net assets on movement in PHP against US$ rate of 5%* - - - - 4,385 - 4,385 Effect on net assets on movement in TWD against US$ rate of 5%* - - - - - 2,554 2,554 Total effect on net assets 87 (8) 3,855 68 4,385 2,554 10,941


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(b) Currency Risk (continued)

SPARX OneAsia Growth Equity Fund (Amounts are expressed in their USD equivalents)

2019 CNY EUR HKD INR MYR PHP THB VND Total

Cash and cash equivalents 355 - 4,570 6,366 958 3,407 1,422 4,684 21,762

Financial assets at fair value through profit or loss - - - - - - - - -

Investments sold not yet settled - - - - 84,568 - - 112,311 196,879

Dividends receivable - - - 325 - - - - 325

355 4,570 6,691 85,526 3,407 1,422 116,995 218,966

Investments purchased not yet settled - - - - - - - (56,083) (56,083)

Administration fees payable - (94) - - - - - - (94)

Other payables and accrued expenses - (421) - - - - - - (421)

(515) (56,083) (56,598) Total 355 (515) 4,570 6,691 85,526 3,407 1,422 60,912 162,368

2019 USD USD USD USD USD USD USD USD Total

Effect on net assets on movement in CNY against US$ rate of 5%* 18 18 Effect on net assets on movement in EUR against US$ rate of 5%* (26) (26) Effect on net assets on movement in HKD against US$ rate of 5%* 229 229 Effect on net assets on movement in INR against US$ rate of 5%* 335 335 Effect on net assets on movement in MYR against US$ rate of 5% 4,276 4,276 Effect on net assets on movement in PHP against US$ rate of 5%* 170 170 Effect on net assets on movement in THB against US$ rate of 5%* 71 71 Effect on net assets on movement in VND against US$ rate of 5%* 3,046 3,046 Total effect on net assets 18 (26) 229 335 4,276 170 71 3,046 8,119


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(c) Interest Rate Risk The majority of the Company’s financial assets and liabilities are non-interest bearing. As a result, the Company is not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates. Any excess cash and cash equivalents are invested at short-term market interest rates. Credit Risk Counterparty credit risk is the risk that a counterparty to a financial asset will fail on a commitment that it has entered into with the Company. The Company will be subject to the possibility of insolvency, bankruptcy or default of a counterparty with which the Company trades, which could result in substantial losses to the Company. The Investment Advisor to the Company has adopted procedures to reduce credit risk related to their dealings with counterparties. Before transacting with any counterparty, the Investment Advisor will evaluate both credit-worthiness and reputation by conducting a credit analysis of the party, their business and reputation. The reputational risk of approved counterparties is then monitored on an ongoing basis, including periodic reviews of financial statements and interim financial reports as needed. The Investment Advisor is required to file a Risk Management Process with the Board of Directors. The Company is exposed to Credit Risk on the cash balance held with HSBC Bank plc as at 31 October 2020: JPY 1,095,545,683 (2019: JPY 5,725,456,832). The Company’s listed equity securities are held with HSBC France as Depositary. These balances are held in the normal course of the Company’s operations. HSBC France was rated as A+ by Standard and Poor’s as at 31 December 2020. (HSBC Holdings plc, of which the Depositary was an indirect wholly-owned subsidiary as at 31 December 2019, was rated as AA- by Standard and Poor’s at 31 December 2019). Liquidity Risk The main Liquidity Risk of the Company is the redeemable participating shares. The Company is exposed to the liquidity risk of meeting the shareholder redemption requests at any time. The majority of the assets of the Company are held in readily realisable securities and should be convertible to cash in the short-term. The Liquidity Risk associated with the redeemable participating shares is mitigated by a notice to the Company of redemptions which allows for assets to be sold providing cash to finance the redemption proceeds. The Manager monitors each fund’s liquidity and implements necessary measures to prevent excessive increase of such liquidity mismatches. The Manager monitors the liquidity risk on a daily basis. When the Manager finds an excessive liquidity risk, it may recommend the Investment Advisor to increase the liquidity of the Fund.

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Liquidity Risk (continued)

The table below outlines the Company’s liquidity risk:

SPARX Japan Fund

Due on demand Due within 3

months

Total 2020 JPY JPY JPY Bank overdraft (24,162,105) - (24,162,105) Financial liabilities at fair value through profit or loss -financial derivative instruments - (165,077,331) (165,077,331) Due to shareholders (34,873,664) - (34,873,664) Investments purchased not yet settled (1,375,620,525) - (1,375,620,525) Investment advisory fees payable - (103,618,615) (103,618,615) Management fees payable - (3,268,668) (3,268,668) Administration fees payable - (20,312,833) (20,312,833) Depositary fees payable - (8,134,056) (8,134,056) Other payables and accrued expenses - (86,046,432) (86,046,432) Redeemable Participating Shareholders (163,112,837,141) - (163,112,837,141)

(164,547,493,435) (386,457,935) (164,933,951,370)


months

Total 2019 JPY JPY JPY Financial liabilities at fair value through profit or loss -financial derivative instruments - (52,780,951) (52,780,951) Due to shareholders (202,647,874) - (202,647,874) Investments purchased not yet settled (103,975,096) - (103,975,096) Investment advisory fees payable - (332,853,205) (332,853,205) Administration fees payable - (12,236,557) (12,236,557) Depositary fees payable - (2,946,718) (2,946,718) Other payables and accrued expenses - (123,018,282) (123,018,282) Redeemable Participating Shareholders (136,355,285,218) - (136,355,285,218)

(136,661,908,188) (523,835,713) (137,185,743,901)

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The table below outlines the Company’s liquidity risk: SPARX Japan Smaller Companies Fund


months

Total 2020 JPY JPY JPY Financial liabilities at fair value through profit or loss -financial derivative instrument Due to shareholders (5,659,046) - (5,659,046) Investments purchased not yet settled - - - Investment advisory fees payable - (386,849) (386,849) Administration fees payable - (2,174,696) (2,174,696) Depositary fees payable - (498,136) (498,136) Other payables and accrued expenses - (2,000,680) (2,000,680) Redeemable Participating Shareholders (117,332,812) - (117,332,812) (122,991,858) (5,060,361) (128,052,219)


months

Total 2019 JPY JPY JPY Financial liabilities at fair value through profit or loss -financial derivative instrument - (569,011) (569,011) Investments purchased not yet settled - (3,195,916) (3,195,916) Investment advisory fees payable - (4,015,915) (4,015,915) Administration fees payable - (2,193,896) (2,193,896) Depositary fees payable - (302,670) (302,670) Other payables and accrued expenses - (2,672,486) (2,672,486) Redeemable Participating Shareholders (887,574,057) - (887,574,057) (887,574,057) (12,949,894) (900,523,951)



months

Total 2020 JPY JPY JPY Financial derivative instruments liability - (2,004,708) (2,004,708) Due to shareholders (1,166,962) - (1,166,962) Investments purchased not yet settled (59,845,312) - (59,845,312) Investment advisory fees payable - (4,373,584) (4,373,584) Administration fees payable - (1,213,056) (1,213,056) Depositary fees payable - (898,000) (898,000) Other payables and accrued expenses - (14,737,528) (14,737,528) Redeemable Participating Shareholders (13,349,666,939) - (13,349,666,939) (13,410,679,213) (23,226,876) (13,433,906,089)

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The table below outlines the Company’s liquidity risk. SPARX Japan Sustainable Equity Fund (continued)


months

Total 2019 JPY JPY JPY Financial derivative instruments liability - (3) (3) Due to shareholders (554,573) - (554,573) Investments purchased not yet settled (357,860) - (357,860) Investment advisory fees payable - (6,691,467) (6,691,467) Administration fees payable - (544,899) (544,899) Depositary fees payable - (283,817) (283,817) Other payables and accrued expenses - (3,051,290) (3,051,290) Redeemable Participating Shareholders (1,520,517,400) - (1,520,517,400) (1,521,429,833) (10,571,476) (1,532,001,309) SPARX OneAsia All Cap Fund*

Due on

demand Due within 3

months

Total 2019 USD USD USD Investment advisory fees payable - (4) (4)

Administration fees payable - (415) (415)

Redemptions payable (6,126) - (6,126)

Other payables and accrued expenses - (44,302) (44,302)

(6,126) (44,721) (50,847)

*Terminated Sub-Fund. SPARX OneAsia Growth Equity Fund

Due on

demand Due within 3

months

Total 2020 USD USD USD Investment advisory fees payable - (5,141) (5,141) Administration fees payable - (720) (720) Depositary fees payable - (465) (465) Other payables and accrued expenses - (1,514) (1,514) Redeemable Participating Shareholders (6,924,540) - (6,924,540) (6,924,540) (7,840) (6,932,380)

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Liquidity Risk (continued) The table below outlines the Company’s liquidity risk: SPARX OneAsia Growth Equity Fund (continued)

Due on

demand Due within 3

months

Total 2019 USD USD USD Investments purchased not yet settled - (168,583) (168,583) Investment advisory fees payable - (16,918) (16,918) Administration fees payable - (417) (417) Depositary fees payable - (212) (212) Other payables and accrued expenses - (944) (944) Redeemable Participating Shareholders (5,630,664) - (5,630,664) (5,630,664) (187,074) (5,817,738)

14. Dealing NAV reconciliation

In accordance with IFRS, unamortised Establishment expenses have been written off in full in the Statement of Comprehensive Income. The following table sets out a reconciliation between the Dealing Net Asset Value and the Net Asset Value presented in the Financial Statements at 31 October 2020;

SPARX SPARX Japan Japan Sustainable

Equity Fund One Aisa Growth

Equity Fund 2020 2020 JPY JPY

Net assets attributable to holders of redeemable participating shares per Dealing Net Asset Value 13,347,488,655 6,947,798 Adjustment for Establishment expenses (800,540) (23,258) 30 October 2020 share dealing 2,978,824 - Net assets attributable to holders of redeemable participating shares per Financial Statements 13,349,666,939 6,924,540 The following table sets out a reconciliation between the Dealing Net Asset Value and the Net Asset Value presented in the Financial Statements at 31 October 2019;

SPARX SPARX Japan Japan Sustainable

Equity Fund One Aisa Growth

Equity Fund 2019 2019 JPY JPY

Net assets attributable to holders of redeemable participating shares per Dealing Net Asset Value 1,522,428,051 5,663,900 Adjustment for Establishment expenses (1,910,651) (33,236) Net assets attributable to holders of redeemable participating shares per Financial Statements 1,520,517,400 5,630,664

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15. Comparative Net Asset Value Table

The Net Asset Value and Net Asset Value per Share are detailed below.

Net Asset Value 2020 2019 2018

SPARX Japan Fund JPY Institutional A Class Shares ¥3,236,879,184 ¥3,065,271,288 ¥3,413,626,631 JPY Institutional B Class Shares ¥10,609,170,034 ¥27,869,629,459 ¥41,147,152,128 JPY Institutional C Class Shares ¥57,477,300,029 ¥35,335,768,773 ¥23,422,120,681 JPY Institutional D Class Shares ¥46,574,006,806 ¥28,719,082,041 - USD Hedged Class A Shares US$3,395,102 US$4,567,659 US$8,262,653 USD Hedged Class B Shares US$46,091,666 US$30,581,520 US$87,227,621 USD Hedged Class C Shares US$3,173,257 US$10,529,008 US$11,589,654 USD Hedged Class D Shares US$71,100,946 US$65,104,040 US$59,922,790 USD Institutional E Class Shares US$728,160 US$189,243 - EUR Hedged Class A Shares €1,300,654 €3,485,357 €2,103,474 EUR Hedged Class B Shares €6,835,083 €8,849,290 €14,731,279 EUR Hedged Class C Shares €33,434,957 €75,219,101 €75,447,741 GBP Hedged Class B Shares £39,667,893 £12,133,201 £12,286,018 GBP Institutional C Class Shares £15,243,388 £31,272,771 £62,634,423 GBP Institutional D Class Shares £473,689 £130,818 - GBP Institutional E Class Shares £120,948,528 £83,340,638 - GBP Institutional F Class Shares £24,275,212 £7,023,522 -

SPARX Japan Smaller Companies Fund JPY Institutional A Class Shares ¥92,042,973 ¥424,576,095 ¥495,228,783 JPY Institutional B Class Shares ¥25,290,689 ¥301,339,886 ¥2,424,901,683 JPY Institutional C Class Shares - - ¥11,601,946,132 USD Hedged Class B Shares - $1,492,757 US$ 1,796,534

SPARX Japan Sustainable Equity Fund JPY Institutional B Class Shares ¥28,860 ¥117,033,242 - JPY Institutional C Class Shares - ¥1,105,027,122 ¥10,912,978,322 JPY Institutional E Class Shares ¥341,486,669 - - GBP C Class Shares** - £1,227,298 - GBP Hedged C Class Shares* £39,831 - - GBP Hedged Class B Shares* - £266,134 - GBP Hedged Class H Shares*** £1,226,239 - - GBP Institutional D Class Shares £103,060 - - GBP Institutional E Class Shares £94,737,373 £650,169 - GBP Institutional F Class Shares** £27,057 - - SPARX OneAsia All Cap Fund**** USD Class C Shares - - US$89,921,043 SPARX OneAsia Growth Equity Fund USD B Class Shares US$6,947,798 US$5,663,900 -

* Name of GBP Hedged Class B Shares was changed to GBP Hedged Class C Shares with effect from 29 January 2020. ** Name of GBP C Class Shares was changed to GBP Institutional F Class Shares with effect from 29 January 2020. *** launched on 14 May 2020. **** Terminated Sub-Fund.

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15. Comparative Net Asset Value Table (continued)

The Net Asset Value and Net Asset Value per Share are detailed below. (continued)

Net Asset Value per Share 2020 2019 2018 SPARX Japan Fund JPY Institutional A Class Shares ¥28,377 ¥26,387 ¥24,982 JPY Institutional B Class Shares ¥20,167 ¥18,641 ¥17,543 JPY Institutional C Class Shares ¥11,457 ¥10,574 ¥9,936 JPY Institutional D Class Shares ¥11,490 ¥10,623 - USD Hedged Class A Shares US$175 US$162 US$150 USD Hedged Class B Shares US$203 US$186 US$171 USD Hedged Class C Shares US$150 US$138 US$127 USD Hedged Class D Shares US$122 US$112 US$103 USD Institutional E Class Shares US$117 US$105 - EUR Hedged Class A Shares €160 €150 €144 EUR Hedged Class B Shares €136 €127 €121 EUR Hedged Class C Shares €110 €102 €97 GBP Hedged Class B Shares £141 £131 £123 GBP Institutional C Class Shares £130 £116 £106 GBP Institutional D Class Shares £114 £102 - GBP Institutional E Class Shares £116 £103 - GBP Institutional F Class Shares £114 £103 - SPARX Japan Smaller Companies Fund JPY Institutional A Class Shares ¥23,822 ¥23,180 ¥22,605 JPY Institutional B Class Shares ¥16,985 ¥16,479 ¥15,950 JPY Institutional C Class Shares - - ¥9,256 USD Hedged Class B Shares - $164 US$156 SPARX Japan Sustainable Equity Fund JPY Institutional B Class Shares ¥11,530 ¥10,500 - JPY Institutional C Class Shares - ¥10,402 ¥9,355 JPY Institutional E Class Shares ¥10,772 - - GBP Hedged C Class Shares £116 £111 - GBP Hedged Class B Shares - £106 - GBP Hedged Class H Shares* £121 - - GBP Institutional D Class Shares £124 - - GBP Institutional E Class Shares £113 £100 - GBP Institutional F Class Shares £127 - -

SPARX OneAsia All Cap Fund** USD Class C Shares - - US$83 SPARX OneAsia Growth Equity Fund USD B Class Shares $139 $113 -

*launched on 14 May 2020.

**Terminated Sub-Fund.

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16. Exchange Rates

The following exchange rates were used to translate assets and liabilities other than SPARX OneAsia Growth Equity Sub-Fund into their reporting currency which is Japanese Yen at 31 October 2020: Yen : Euro 1 : 0.00820 Yen : US Dollar 1 : 0.00958 Yen : Sterling Pounds 1 : 0.00739 Yen : Swiss Franc 1 : 0.00877

The following exchange rates were used to translate assets and liabilities of SPARX OneAsia Growth Equity and OneAsia All Cap Sub-Funds into their reporting currency which is US Dollar at 31 October 2020: US Dollar : Chinese Yuen 1 : 6.68660 US Dollar : Euro 1 : 0.85664 US Dollar : Hong Kong Dollar 1 : 7.75380 US Dollar : Indonesian Rupiah 1 : 14,625.00000 US Dollar : Indian Rupee 1 : 74.55320 US Dollar : Korean Won 1 : 1,132.73000 US Dollar : Malaysian Ringgit 1 : 4.15500 US Dollar : Philippine Peso 1 : 48.42400 US Dollar : Singapore Dollar 1 : 1.36445 US Dollar : Thai Baht 1 : 31.17000 US Dollar : New Taiwanese Dollar 1 : 28.57700 US Dollar : Vietnamese Dong 1 : 23,182.50000 The following exchange rates were used to translate assets and liabilities other than SPARX OneAsia Growth Equity and OneAsia All Cap Sub-Funds into their reporting currency which is Japanese Yen at 31 October 2019: Yen : Euro 1 : 0.008271 Yen : US Dollar 1 : 0.009234 Yen : Sterling Pounds 1 : 0.007137

The following exchange rates were used to translate assets and liabilities of SPARX OneAsia Growth Equity and OneAsia All Cap Sub-Funds into its reporting currency which is US Dollar at 31 October 2019:

US Dollar : Chinese Yuen 1 : 7.04430 US Dollar : Euro 1 : 0.896781 US Dollar : Hong Kong Dollar 1 : 7.83585 US Dollar : Indonesian Rupiah 1 : 14,037.00000 US Dollar : Indian Rupee 1 : 70.95500 US Dollar : Korean Won 1 : 1,168.88000 US Dollar : Malaysian Ringgit 1 : 4.17850 US Dollar : Philippine Peso 1 : 50.86500 US Dollar : Singapore Dollar 1 : 1.36110 US Dollar : Thai Baht 1 : 30.19000 US Dollar : New Taiwanese Dollar 1 : 30.48200 US Dollar : Vietnamese Dong 1 : 23,203.00000

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17. Related Parties

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. Mr. Brian Morikuni was a Director of SPARX Overseas Ltd. (“SOL”) and SPARX Asia Investment Advisors Limited (“SAIA”). SOL, SAIA and the Investment Advisor are wholly-owned subsidiaries of SPARX Group Co. Ltd. Mr. Paul McNaughton, a Director of the Company is also a Director of Bridge Fund Management Limited which is responsible on a day-to-day basis under the supervision of the Directors, for the management of the Company’s affairs and distribution of the Shares. Mr. McNaughton received Director’s fees of €20,000 during the year. Bridge Fund Management were paid €253,382 (2019: €63,806) for their services during the period. Mr Brian Morikuni resigned as a Director with effect from 30 March 2020 and Ms Satomi Fujii was appointed as a Director with effect from 26 March 2020 in the Company. Ms. Fujii is a Director of Global Business Development at SPARX Asset Management Co. Mr. Alan Ng is a Director of Sparx Asia Investment Advisors Ltd. In accordance with the requirements of the Central Bank UCITS Regulations all transactions carried out with the Company by the promoter, manager, trustee, investment adviser and associates/group companies (“connected parties”) must be carried out as if negotiated at arm’s length and be in the best interests of shareholders. The Directors are satisfied that there are arrangements (evidenced by written procedures) in place to ensure that the obligations set out in the Central Bank UCITS Regulations are applied to all transactions with connected parties and transactions with connected parties entered into during the period complied with the obligations set out in the Central Bank UCITS Regulations. The Investment Advisor is entitled to be reimbursed its out of pocket expenses out of the assets of the Company, which should not exceed 2.0% per annum of the Net Asset Value of each Sub-Fund. For further details on related party transactions fees including Investment Advisory and Directors’ Fees, please refer to note 2.

18. Credit Facility SPARX Japan Smaller Companies Fund has a multi currency overdraft facility with HSBC Bank plc of the lower of USD 166,000 and 10% of net value of assets under custody with the Depositary. Interest is charged on the loan at a rate of the bank’s Base Rate plus 2.5%, calculated on a per annum basis. A fee of EUR 5,000 is payable in advance, on a per annum basis. SPARX Japan Fund also has a multi currency overdraft facility with HSBC Bank plc of the lower of USD 10,000,000 and 10% of net value of assets under custody with the Depositary. Interest is charged on the loan at a rate of the bank’s Base Rate plus 2.5%, calculated on a per annum basis. A fee of EUR 5,000 is payable in advance, on a per annum basis. SPARX Japan Sustainable Equity Fund also has a multi currency overdraft facility with HSBC Bank plc of the lower of USD 1,000,000 and 10% of net value of assets under custody with the Depositary. Interest is charged on the loan at a rate of the bank’s Base Rate plus 2.5%, calculated on a per annum basis. A fee of EUR 5,000 is payable in advance, on a per annum basis. The facility is secured by a charge over assets in custody and security deed in relation to custody cash accounts between the Company, HSBC Bank plc and the Depositary. There were no credit facility agreements entered by SPARX One Asia Growth Equity Fund.

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19. Segregated Liability

The assets of the Sub-Funds are segregated from any claims arising from the creditors of any other Sub-Fund.

20. Significant Events during the year A revised prospectus of the Company was filed with the Central Bank of Ireland on 22 April 2020 to reflect:

Appointment of Ms. Satomi Fujii as a Director with effect from 26 March 2020. Resignation of Mr. Brian Morikuni as a Director with effect from 30 March 2020. Appointment of Bridge Fund Management Limited as Manager on 22 April 2020. Bridge Fund Management Limited was appointed as a Distributor with effect from 22 April 2020 in

addition to Sparx Overseas Ltd., the existing Distributor of the Company. The Board of directors decided to close the Sparx Japan Smaller Companies Fund fund on 30

October 2020. There were no other significant events during the year which require adjustment or disclosure in the financial statements.

21. Subsequent Events

There have been no material events subsequent to the year ended 31 October 2020 that require adjustment or disclosure in the financial statements. Sparx Japan Smaller Companies Fund was terminated on 31 December 2020.

22. Approval of the Financial Statements

The financial statements were approved by the Board of Directors on 17 February 2021.

SPARX Funds Plc

95

SPARX JAPAN FUND

SCHEDULE OF INVESTMENTS AS AT 31 OCTOBER 2020

Financial Assets at Fair Value through Fair Value % of Net

Quantity Profit or Loss JPY Asset Value Equity Securities Japan

348,800 Ariake Japan 2,333,472,000 1.43 839,300 Asahi Intecc 2,715,135,500 1.66

1,645,500 Asics Corporation 2,139,150,000 1.31 397,200 Daikin 7,737,456,000 4.74 110,800 Fast Retailing 8,056,268,000 4.94 883,300 Kao 6,554,086,000 4.02 216,400 Keyence 10,224,900,000 6.27

2,349,000 Kubota 4,252,864,500 2.61 949,800 Mercari 4,179,120,000 2.56

2,619,600 Misumi 8,094,564,000 4.96 1,853,200 Mitsubishi Corp 4,309,616,600 2.64

126,400 Murata Manufacturing 918,548,800 0.56 1,031,200 Nidec 10,827,600,000 6.64 1,254,500 Nissan Chemical Industries 6,924,840,000 4.24 1,655,600 Olympus Optical 3,292,988,400 2.02

294,500 PeptiDream 1,420,962,500 0.87 786,700 Pigeon 3,780,093,500 2.32

2,086,500 Recruit Holdings Co Ltd 8,283,405,000 5.08 2,038,500 Rohto Pharmaceutical 6,645,510,000 4.07 3,793,900 Santen Pharmaceutical 7,045,272,300 4.32

377,000 Shimano 8,959,405,000 5.49 322,900 Shiseido 2,082,705,000 1.28

1,420,800 Softbank 9,651,494,400 5.92 1,236,800 Sony 10,728,003,200 6.58

532,600 Suntory Beverage And Food Ltd NPV 1,917,360,000 1.18 2,060,300 Terumo 7,905,371,100 4.85 1,515,100 Uni Charm 7,333,084,000 4.50 3,627,100

3Z Holdings 2,630,010,210 1.61

Total equity securities 160,943,286,010 98.67 Forward foreign currency contracts-unrealised gains *

JPY 40,008,511 / EUR 323,862 30/11/2020 517,937 -

Total forward foreign exchange contracts- unrealised gains 517,937 -

Total Financial Assets at Fair Value through

Profit or Loss 160,943,803,947 98.67

*HSBC Bank Plc acts as counterparty to the forward contracts held with SPARX Japan Fund.

SPARX Funds Plc

96

SPARX JAPAN FUND

SCHEDULE OF INVESTMENTS AS AT 31 OCTOBER 2020 (CONTINUED)


Quantity Profit or Loss JPY Asset Value Forward foreign currency contracts-unrealised losses *

USD 3,436,297 / JPY 359,321,184 30/11/2020 (551,422) -

USD 46,643,235 / JPY 4,877,315,143 30/11/2020 (7,484,828) -

USD 3,211,354 / JPY 335,799,772 30/11/2020 (515,325) -

EUR 6,878,327 / JPY 852,015,980 30/11/2020 (13,297,875) (0.01)

EUR 40,085 / JPY 4,907,952 30/11/2020 (20,107) -

EUR 1,640,540 / JPY 203,213,098 30/11/2020 (3,171,657) -

GBP 40,160,194 / JPY 5,496,721,692 30/11/2020 (63,059,986) (0.04)

JPY 1,603,542 / GBP 11,869 30/11/2020 (2,268) -

GBP 824 / JPY 111,618 30/11/2020 (105) -

EUR 33,842,469 / JPY 4,192,054,811 30/11/2020 (65,427,672) (0.04)

USD 71,951,797 / JPY 7,523,740,343 30/11/2020 (11,546,086) (0.01)

Total forward foreign exchange contracts- unrealised losses (165,077,331) (0.10)

Total Financial Liabilities at Fair Value through Profit or Loss (165,077,331) (0.10) Other Net Assets 2,334,110,525 1.43 Total Net Assets Attributable to Holders of Redeemable Participating Shares 163,112,837,141 100.00

% of Total Analysis of Net Investments Assets Transferable securities admitted to an official stock exchange listing or dealt on another regulated market 160,943,286,010 97.58

Financial derivative instruments 517,937 -

SPARX Funds Plc

97





300 Aeon Delight 823,800 0.70 1,400 Aruhi 2,602,600 2.22

300 Capcom 1,725,000 1.47 1,400 CKD Corporation 2,415,000 2.06

100 Cosmos Pharmaceutical 1,774,000 1.51 100 CyberAgent 655,000 0.56 900 Daiken 1,753,200 1.49 300 Elecom 1,566,000 1.33 900 Enigmo 1,269,000 1.08

1,200 Foster Electric 1,430,400 1.22 1,100 Fuji Machine Manufacturing 2,296,800 1.96

600 Fujibo Holdings 2,172,000 1.85 500 Fujimori Kogyo 2,132,500 1.82 700 Globeride 2,390,500 2.04

1,800 H-ONE 1,024,200 0.87 48 Invincible Investment 1,596,000 1.36

200 JustSystems 1,368,000 1.17 1,500 Kufu 1,200,000 1.02

700 Kyudenko 1,991,500 1.70 1,400 Lec 2,062,200 1.76 1,100 Like 2,352,900 2.00 2,600 Macromill 1,674,400 1.43 1,400 Maeda kosen 3,879,400 3.31 1,800 Mitsubishi logisnext 1,580,400 1.35

800 Mitsubishi Pencil 1,074,400 0.91 600 Mitsubishi Research Institute 2,268,000 1.93 200 Miura 979,000 0.83 700 Morita 1,333,500 1.14

1,300 NEC System 2,353,000 2.00 1,100 NGK Spark Plug 2,007,500 1.71 1,000 Nihon Kohden 3,270,000 2.79 1,700 Nippon Aqua 1,157,700 0.99 1,100 Nippon Flour Mills 1,841,400 1.57

900 Onoken 1,044,000 0.89 6,700 OSJB Holdings Corporation 1,601,300 1.36 1,000 Outsourcing 965,000 0.82 1,100 OYO 1,315,600 1.12

900 Piolax 1,371,600 1.17 2,200 Poletowin Pitcrew Holdings 1,991,000 1.70

SPARX Funds Plc

98




Quantity Profit or Loss JPY Asset Value Equity Securities (continued) Japan (continued)

300 Prored Partners 1,407,000 1.20 1,100 Saizeriya 1,987,700 1.69

800 Sanyo Chemical Industries 3,528,000 3.01 4,100 Senko 3,813,000 3.25 7,200 Septeni 2,764,800 2.36 1,100 SIGMAXYZ 1,672,000 1.43 2,500 SIIX Corporation 3,080,000 2.62

800 SoldOut 1,140,000 0.97 2,400 Syuppin 2,037,600 1.74

400 Takasago International 815,600 0.70 2,000 Takuma 3,190,000 2.72 3,900 Tatsuta Electric Wire and Cable 2,187,900 1.86 1,300 Teikoku Electric 1,316,900 1.12 1,400 Teikoku Piston Ring Company 1,738,800 1.48

400 Tokyo Ohka Kogyo 2,468,000 2.10 700 Tosei 730,800 0.62 800 Trans Cosmos 2,272,800 1.94 600 Ulvac 2,277,000 1.94 500 ValueCommerce 1,650,000 1.41

4,300 VT Holdings 1,569,500 1.34 300 Yamatane 407,400 0.35

2,300 Yoshimura Food Holdings 1,927,400 1.64

Total equity securities 112,290,000 95.70

Total Financial Assets at Fair Value through Profit or Loss 112,290,000 95.70

Other Net Assets 5,042,812 4.30 Total Net Assets Attributable to Holders of Redeemable

Redeemable Participating Shares

Participating Shares 117,332,812 100.00 % of Total Analysis of Net Investments Assets Transferable securities admitted to an official stock exchange listing or dealt on another regulated market 112,290,000 87.69

SPARX Funds Plc

99





65,200 Aica Kogyo 228,852,000 1.71 16,000 Asahi Intecc 51,760,000 0.39 9,200 Bengo4 127,420,000 0.95

73,200 Curves Holdings 46,921,200 0.35 29,700 Daikin 578,556,000 4.33 81,300 Daiwa House 222,396,150 1.67 4,300 Disco Corporation 120,529,000 0.90

26,000 E-Guardian 82,030,000 0.62 50,300 Fancl 164,984,000 1.24 3,500 Fast Retailing 254,485,000 1.91

80,300 Fuji Electric 252,945,000 1.90 39,400 Fuji Oil 130,020,000 0.97 34,200 Fujitsu 418,095,000 3.13 33,200 Hoya 391,760,000 2.94

126,300 Itochu 315,750,000 2.37 44,100 Japan Lifeline 59,182,200 0.44 14,900 JINS Holdings 112,495,000 0.84 22,900 Kao 169,918,000 1.27 31,300 Katitas 92,022,000 0.69

117,100 KDDI 327,001,750 2.45 4,700 Keyence 222,075,000 1.66

51,900 Kokuyo 73,386,600 0.55 76,400 Koshidaka Holdings 29,796,000 0.22 64,600 Kurita Water Industries 200,260,000 1.50 86,300 Marui 161,726,200 1.21 30,600 Misumi 94,554,000 0.71 50,300 Mitsui Chemicals 134,099,800 1.00 70,600 Nichirei 185,536,800 1.39 31,700 Nidec 332,850,000 2.49 9,700 Nintendo 552,706,000 4.14 1,500 Nitori Holdings 32,325,000 0.24

106,200 Otsuka 511,884,000 3.83 27,700 Otsuka Holdings 106,783,500 0.80 85,600 Pan Pacific International Holdings 190,203,200 1.43 38,500 Persol Holdings 60,483,500 0.45 15,600 Pigeon 74,958,000 0.56 43,600 QB Net Holdings 66,446,400 0.50 47,700 Recruit Holdings Co Ltd 189,369,000 1.42 19,700 Relo Holdings 49,210,600 0.37 14,800 Rozetta 29,378,000 0.22

SPARX Funds Plc

100





49,700 Sawai Pharmaceutical 249,991,000 1.87 22,400 Seria 90,048,000 0.67 85,800 SG Holdings 215,787,000 1.62 39,900 Shin-Etsu Chemical 554,211,000 4.15 32,200 So-Net 226,269,400 1.70 66,400 Sony 575,953,600 4.31 88,300 Sushiro Motor 248,829,400 1.86 30,400 Suzuki Motor 135,492,800 1.02 67,300 SWCC Showa Holdings 78,000,700 0.58 43,300 Sysmex Corporation 424,340,000 3.18 77,100 Taiyo Yuden 296,064,000 2.22 27,500 Terumo 105,517,500 0.79 39,700 Toho 163,961,000 1.23 76,500 Tokio Marine Holdings 356,413,500 2.67 17,800 Tokyo Electron 496,620,000 3.72 25,600 Toyota Industries 172,032,000 1.29 21,400 UPR Corporation 71,476,000 0.54

186,200 Wacom 127,360,800 0.95 124,620 West Holdings 444,270,300 3.33

88,900 Yamaha 437,388,000 3.28 32,900 Yokogawa Electric 50,205,400 0.38

Total equity securities 12,965,385,300 97.12 Forward foreign currency contracts - unrealised gain * JPY 6,719 / GBP 49 30/11/2020 43 -

GBP 12,057 / JPY 1,629,057 30/11/2020 2,326 -

Total forward foreign exchange contracts -unrealised gains 2,369 -

Total Financial Assets at Fair Value through Profit or Loss 12,965,387,669 97.12

Forward foreign currency contracts - unrealised losses * GBP 1,232,412 / JPY 168,680,070 30/11/2020 (1,932,890) (0.01)

GBP 5,124 / JPY 701,323 30/11/2020 (8,037) -

GBP 619 / JPY 83,874 30/11/2020 (78) -

GBP 40,617 / JPY 5,559,291 30/11/2020 (63,703) -

Total forward foreign exchange contracts -unrealised losses (2,004,708) (0.01)

SPARX Funds Plc

101



Financial Liabilities at Fair Value through Fair Value % of Net

Quantity Profit or Loss JPY Asset Value

Total Financial Liabilities at Fair Value through Profit or Loss (2,004,708) (0.01)

Other Net Assets 386,283,978 2.89

Total Net Assets Attributable to Holders of Redeemable Participating Shares 13,349,666,939 100.00



*HSBC Bank Plc acts as counterparty to the forwards contracts held with SPARX Japan Sustainable Equity Fund.

SPARX Funds Plc

102




Quantity Profit or Loss USD Asset Value Equity securities China

40,000 AK Medical 89,143 1.29 56,800 Guangzhou Baiyun International Airport 106,607 1.54 19,590 Hualan Biological Engineering 150,003 2.17

4,810 Hundsun Technologies 66,856 0.97 2,900 JD.com 240,816 3.48 5,227 Jiangsu Hengrui Medicine 69,447 1.00

38,000 Kangji Medical 103,407 1.49 69,000 NetDragon Websoft 147,187 2.13

880 New Oriental Education & Tech Group 145,684 2.10 9,300 Ping An Healthcare & Technology 119,941 1.73

176,000 Shandong Weigao 340,024 4.91 5,611 Shenzhen Mindray Bio-Medical Electronics 324,580 4.69

114,000 Sino Biopharmaceutical 114,973 1.66 131,000 Times Neighborhood 132,625 1.91 11,500 Wuxi Biologics Cayman Incorporation 321,249 4.64

130,000 Xiabuxiabu Catering Management 221,982 3.21 70,600 Xiaomi 200,315 2.89

2,894,839 41.81 India

1,350 Bajaj Finserv 100,924 1.46 11,000 Can Fin Homes 67,465 0.98

5,738 Care Ratings 22,966 0.33 18,216 HDFC Life 144,097 2.08

6,586 ICICI Lombard 109,188 1.58 2,240 IndiaMart 145,601 2.10 1,980 Info Edge 94,254 1.36

11,900 SBI Cards and Payment Services 127,654 1.84 10,185 Security And Intel 50,575 0.73 43,388 Zee Entertainment Enterprises 109,353 1.58

972,077 14.04 Indonesia

71,300 Bank Central Asia 141,138 2.04 1,679,700 Media Nusantara Citra 95,327 1.38 1,989,000 Sumber Alfaria Trijaya 92,480 1.33 2,844,800 Surya Citra Media 290,802 4.20

619,747 8.95 Malaysia

66,900 Top Glove 137,986 1.99 137,986 1.99 Philippines

170,200 Alliance Global 27,907 0.40 137,500 Ayala Land 93,704 1.35 824,880 Macroasia Corporation 86,876 1.26 319,600 Wilcon Depo 94,381 1.36

302,868 4.37

SPARX Funds Plc

103




Quantity Profit or Loss USD Asset Value Equity securities(Continued) Singapore

78,500 Delfi 36,821 0.53 1,500 Sea 250,530 3.62

287,351 4.15 South Korea

410 Daum Kakao 119,446 1.72 962 Douzone Bizon 84,673 1.22

5,625 FILA Korea 190,193 2.75 394,312 5.69 Taiwan

8,000 AirTAC International Group 214,998 3.11 2,000 ASPEED Technology 96,581 1.39

22,000 Chroma ATE 104,700 1.51 24,000 Elite Material 125,975 1.82

4,318 Machvision 42,761 0.62 8,000 Nien Made Enterprise 90,142 1.30

675,157 9.75 Thailand

50,200 Central Pattana 62,005 0.90 62,005 0.90 Vietnam

45,680 Joint Stock Commercial Bank for Foreign Trade 163,548 2.36 82,740 Vincom Retail 90,298 1.31

253,846 3.67 Total equity securities 6,600,188 95.32 Total Financial Assets at Fair Value through

Profit or Loss 6,600,188 95.32 Other Net Assets 324,352 4.68

Total Net Assets Attributable to Holders of Redeemable

Participating Shares 6,924,540 100.00 % of Total Analysis of Net Investments Assets Transferable securities admitted to an official stock exchange listing or dealt on another regulated market 6,600,188 95.21

SPARX Funds Plc

104

SPARX JAPAN FUND




312,200 3

Ariake Japan 2,628,724,000 1.93 2,035,400 Asics Corporation 3,802,127,200 2.78

441,700 Daikin Industries 6,727,091,000 4.93 86,900 Fast Retailing 5,826,645,000 4.27

1,166,500 Fuji Seal 3,149,550,000 2.31 1,467,200 Isuzu Motors 1,859,676,000 1.36

719,100 Kao 6,287,810,400 4.61 88,200 Keyence 6,069,924,000 4.45

3,351,800 Kubota 5,805,317,600 4.26 253,800 Mani 729,167,400 0.53

2,198,600 Misumi 6,032,958,400 4.43 2,131,100 Mitsubishi 5,890,360,400 4.32 9,779,300 Mitsubishi UFJ Financial Group 5,572,245,140 4.09

458,500 Nidec 7,374,972,500 5.41 1,109,600 Nissan Chemical Industries 4,971,008,000 3.65

521,600 Pigeon 2,774,912,000 2.04 2,072,600 Recruit Holdings Co Ltd 7,484,158,600 5.49

771,100 Relo Holdings 2,054,981,500 1.51 1,967,800 Rohto Pharmaceutical 6,444,545,000 4.73

917,000 Ryohin Keikaku 2,223,725,000 1.63 2,738,400 Santen Pharmaceutical 5,271,420,000 3.87

398,100 Shimano 7,205,610,000 5.28 1,452,900 Softbank 6,087,651,000 4.46

976,300 Sumitomo Mitsui Financial 3,788,044,000 2.78 1,933,000 Terumo 6,862,150,000 5.03 1,742,400 Uni Charm 6,427,713,600 4.71

3

Total equity securities 129,352,487,740 94.86 Forward foreign currency contracts-unrealised gains * GBP 7,869 / JPY 1,101,445 29/11/2019 253 -

GBP 15,849 / JPY 2,206,715 29/11/2019 12,248 -

GBP 11,703,105 / JPY 1,637,928,510 29/11/2019 601,849 -

JPY 804,493 / EUR 6,651 29/11/2019 235 -

Total forward foreign exchange contracts- 614,585 - unrealised gains Total Financial Assets at Fair Value through Profit or Loss 129,353,102,325 94.86

SPARX Funds Plc

105

SPARX JAPAN FUND



Quantity Profit or Loss JPY Asset Value Forward foreign currency contracts-unrealised losses *

EUR 74,269,495 / JPY 8,990,678,904 29/11/2019 (9,207,280) (0.01)

EUR 8,609,194 / JPY 1,042,184,251 29/11/2019 (1,067,293) -

EUR 3,388,964 / JPY 410,250,373 29/11/2019 (420,134) -

EUR 1,721,589 / JPY 208,293,289 29/11/2019 (100,147) -

EUR 199,286 / JPY 24,111,465 29/11/2019 (11,593) -

EUR 78,062 / JPY 9,444,680 29/11/2019 (4,541) -

GBP 271,229 / JPY 38,004,237 29/11/2019 (30,018) -

GBP 35,825 / JPY 5,019,699 29/11/2019 (3,907) -

USD 63,250,090 / JPY 6,863,513,892 29/11/2019 (24,557,353) (0.02)

USD 29,710,656 / JPY 3,224,019,192 29/11/2019 (11,535,400) (0.01)

USD 10,229,256 / JPY 1,110,016,449 29/11/2019 (3,971,591) -

USD 1,488,056 / JPY 160,984,291 29/11/2019 (87,286) -

USD 698,980 / JPY 75,618,715 29/11/2019 (41,001) -

USD 240,654 / JPY 26,035,007 29/11/2019 (14,116) -

USD 103,762 / JPY 11,225,404 29/11/2019 (6,086) -

USD 4,438,300 / JPY 481,617,217 29/11/2019 (1,723,205) -

Total forward foreign exchange contracts- unrealised losses (52,780,951) (0.04)

Total Financial Liabilities at Fair Value through Profit or Loss (52,780,951) (0.04) Other Net Assets 7,054,963,844 5.18 Total Net Assets Attributable to Holders of Redeemable Participating Shares 136,355,285,218 100.00 % of Total Analysis of Net Investments Assets Transferable securities admitted to an official stock exchange listing or dealt on another regulated market 129,352,487,740 94.29

Financial derivative instruments 614,585 0.00

*HSBC Bank Plc acts as counterparty to the forwards contracts held with SPARX Japan Fund.

SPARX Funds Plc

106





9,400 Amada Corporation 11,684,200 1.32 8,500 Aruhi 20,816,500 2.34 8,600 Capcom 22,076,200 2.49

800 Cosmos Pharmaceutical 17,864,000 2.01 4,200 Daikin 8,232,000 0.93 5,500 Eagle Industry 6,033,500 0.68 3,500 Elecom 14,770,000 1.66 6,500 Foster Electric Company 12,649,000 1.42 4,900 Fujimori Kogyo 18,914,000 2.13 5,500 Globeride 15,257,000 1.72

22,700 H-One 16,684,500 1.88 5,800 ITmedia Inc 4,158,600 0.47

25,500 Juki Corporation 25,168,500 2.84 4,700 JustSystems 21,009,000 2.37 1,000 Kakaku 2,523,000 0.28 3,200 Kasai Kogyo 2,819,200 0.32 6,500 Kufu 8,924,500 1.00 4,900 Kyudenko 17,493,000 1.97 4,000 LEC Inc 4,388,000 0.49

37,200 Lifull 24,514,800 2.76 10,700 Like Corporation 18,960,400 2.14 11,300 Maeda Kosen 20,566,000 2.32 8,600 Mitsubishi Logisnext 10,096,400 1.14 4,200 Mitsubishi Research Institute 16,170,000 1.82 3,500 Miura 11,515,000 1.30

13,900 Morita 25,423,100 2.86 11,200 NEC Networks & System Integration Corporation 38,416,000 4.33 6,800 Nihon Kohden 22,066,000 2.49 4,100 Nippon Hume Corporation 3,357,900 0.38

20,200 Nishimatsuya Chain 19,513,200 2.20 1,500 Nissei ASB Machine 5,872,500 0.66 2,500 NOF Corporation 9,225,000 1.04 6,600 Onoken 9,405,000 1.06 35,600 OSJB Holdings 9,434,000 1.06

SPARX Funds Plc

107





5,800 Pal 19,894,000 2.24 20,400 Parco 26,683,200 3.01

6,000 Piolax 12,822,000 1.44 6,400 Saizeriya 15,737,600 1.77 4,900 Sanyo Chemical Industries 25,480,000 2.87

31,200 Senko 27,331,200 3.08 4,800 Shinnittetsu Sumikin Solution 17,784,000 2.00

12,900 SIIX Corporation 21,401,100 2.41 17,700 Syuppin 16,673,400 1.88

1,900 Takasago International Corporation 5,183,200 0.58 16,500 Takuma 21,351,000 2.41 19,400 Tatsuta Electric Wire and Cable 11,581,800 1.30

2,100 Teikoko Electric 2,664,900 0.30 10,300 Teikoku Piston Ring Company 20,167,400 2.27

9,600 Tobishima 14,016,000 1.58 4,100 Tokyo Ohka Kogyo 17,712,000 2.00 4,000 Tosei 5,484,000 0.62 7,100 Toyobo 10,444,100 1.18 8,200 Trans Cosmos 22,369,600 2.52 3,800 Uchida Yoko Corporation 16,207,000 1.83 39,000 VT Holdings 18,954,000 2.14

Total equity securities 845,941,500 95.31


SPARX Funds Plc

108




Quantity Profit or Loss JPY Asset Value Forward foreign currency contracts - unrealised losses * USD 1,465,548 / JPY (159,032,349) 29/11/2019 (569,011) (0.06)

Total forward foreign exchange contracts -unrealised losses (569,011) (0.06)

Total Financial Liabilities at Fair Value through Profit or Loss (569,011) (0.06)


Total Net Assets Attributable to Holders of Redeemable Participating Shares 887,574,057 100.00

% of Total Analysis of Net Investments Assets Transferable securities admitted to an official stock exchange listing or dealt on another regulated market 845,941,500 93.94

*HSBC Bank Plc acts as counterparty to the forwards contracts held with SPARX Japan Smaller Companies Fund.

SPARX Funds Plc

109





5,800 Aica Kogyo Co Ltd 20,097,000 1.32 2,100 Asahi Intecc 6,279,000 0.41 2,100 Bengo4 Com Inc 10,521,000 0.69 4,600 Daikin Industries 70,058,000 4.61 8,400 Daiwa House Industry 31,374,000 2.06

800 Disco Corporation 19,104,000 1.26 3,500 East Japan Railway 34,471,500 2.27

400 Fast Retailing 26,820,000 1.76 5,800 Fuji Electric 20,126,000 1.32 5,600 Fuji Oil 18,256,000 1.20 5,100 Hoya 48,975,300 3.22 3,400 Iriso Electronics 18,394,000 1.21

14,400 Itochu 32,702,400 2.15 5,800 Japan Lifeline 9,749,800 0.64 2,700 Kao 23,608,800 1.55

700 Katitas 3,286,500 0.22 14,000 KDDI 41,986,000 2.76

400 Keyence 27,528,000 1.81 6,800 Kokuyo 10,866,400 0.71 9,800 Koshidaka Holdings 15,474,200 1.02 6,700 Kurita Water Industries 21,038,000 1.38 2,300 Litalico Inc 5,237,100 0.34 7,400 Marui 17,885,800 1.18 4,100 Misumi 11,250,400 0.74

14,100 Mitsubishi Chmemical Holdings 11,711,460 0.77 46,400 Mitsubishi UFJ Financial Group 26,438,720 1.74 9,200 Mitsui Chemicals 23,947,600 1.57 2,200 NET One Systems 6,472,400 0.43 3,000 Nichirei 7,455,000 0.49 1,900 Nidec 30,561,500 2.01

300 Nitori Holdings 4,953,000 0.33 28,400 Orix 48,464,600 3.19 14,100 Otsuka 61,899,000 4.07 3,400 Otsuka Holdings 15,429,200 1.01

14,000 Park24 35,826,000 2.36 7,300 Persol Holdings 15,257,000 1.00 2,400 Pigeon 12,768,000 0.84 3,700 QB Net Holdings 8,979,900 0.59

SPARX Funds Plc

110





7,400 Recruit Holdings 26,721,400 1.76 2,700 Relo Holdings 7,195,500 0.47 5,100 Sawai Pharmaceutical 31,161,000 2.05 3,000 Seria 8,178,000 0.54

12,200 SG Holdings 32,805,800 2.16 400 Shimano 7,240,000 0.48

5,400 Shin-Etsu Chemical 65,664,000 4.32 6,100 So-Net M3 15,884,400 1.04 9,900 Sony 65,587,500 4.31 3,000 Sushiro Global Holdings 22,290,000 1.47 5,800 Suzuki Motor 29,794,600 1.96 1,000 Sysmex 7,087,000 0.47 7,200 Takuma 9,316,800 0.61 4,300 Teijin 9,382,600 0.62 3,500 Terumo 12,425,000 0.82 7,400 Toho 32,338,000 2.13 8,400 Tokio Marine Holdings 49,291,200 3.24 2,100 Tokyo Electron 46,357,500 3.05 3,100 Toyota Industries 20,336,000 1.34

19,400 Wacom 7,857,000 0.52 13,000 West Holdings 20,800,000 1.37 11,500 Yamaha 58,305,000 3.83 8,800 Yokogawa Electric 17,573,600 1.15

Total equity securities 1,458,844,480

95.94

Forward foreign currency contracts - unrealised gain * GBP 260,207/ JPY (36,417,656) 29/11/2019 15,626 -

Total forward foreign exchange contracts -unrealised gains 15,626 -

Total Financial Assets at Fair Value through Profit or Loss 1,458,860,106 95.94

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111




Quantity Profit or Loss JPY Asset Value Forward foreign currency contracts - unrealised losses * JPY 8,159 / GBP (58) 29/11/2019 (3)

-

Total forward foreign exchange contracts -unrealised losses (3) -

Total Financial Liabilities at Fair Value through Profit or Loss (3) -


Total Net Assets Attributable to Holders of Redeemable Participating Shares 1,520,517,400 100.00



*HSBC Bank Plc acts as counterparty to the forwards contracts held with SPARX Japan Sustainable Equity Fund.

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112




Quantity Profit or Loss USD Asset Value Equity securities China

11,200 Hundsun Technologies 121,249 2.15 8,556 Jiangsu Hengrui Medicine 110,383 1.96

16,800 Niu Technologies 159,600 2.83 224,000 Shandong Weigao 257,565 4.57

5,611 Shenzhen Mindray Bio-Medical Electronics 141,782 2.52 8,600 Shenzhou International 119,191 2.12 8,000 Wuxi Biologics Cayman Incorporation 94,438 1.68

141,000 Xiabuxiabu Catering Management 188,579 3.35 1,192,787 21.18 India

20,853 Care Ratings 155,967 2.77 6,586 ICICI Lombard General Insurance 124,638 2.21 2,450 Info Edge 88,705 1.58

10,202 Security & Intelligence Services India 131,459 2.33 10,072 Thyrocare 80,599 1.43 18,000 YES Bank 17,859 0.32 32,615 Zee Entertainment Enterprises 119,787 2.13

719,014 12.77 Indonesia

1,989,000 Sumber Alfaria Trijaya 126,819 2.25 96,300 Bank Central Asia 215,761 3.83

1,020,000 JAPFA Comfeed 124,984 2.22 1,184,600 Media Nusantara Citra 110,974 1.97

920,400 PT Ultrajaya Milk Industry 99,666 1.77 954,000 Surya Citra Media 82,915 1.48

761,119 13.52 Japan

149,500 Honma Golf 134,507 2.39 134,507 2.39 Malaysia

364,000 Inari Amertron Berhad 171,612 3.05 171,612 3.05 Philippines

734,600 D & L Industries 123,191 2.19 372,000 Macroasia Corporation 150,658 2.68 75,000 Philippine Seven Corporation 219,699 3.90

858,000 Wilcon Depo 278,325 4.94 771,873 13.71

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113




Quantity Profit or Loss USD Asset Value Equity securities(Continued) Singapore

196,400 Delfi 143,573 2.55 190,000 HRnetgroup 82,360 1.46

225,933 4.01 South Korea

6,403 FILA Korea 315,526 5.60 1,187 Koh Young Technology 95,559 1.70

411,085 7.30 Taiwan

22,000 Chroma ATE 110,065 1.96 24,000 Elite Material 100,387 1.78 10,000 GlobalWafers 119,743 2.13

8,000 Machvision 79,654 1.41 409,849 7.28 Thailand

794,900 Humanica 204,057 3.62 204,057 3.62 Vietnam

56,420 Joint Stock Commercial Bank for Foreign Trade 213,250 3.79 152,550 Vincom Retail 218,276 3.88

431,526 7.67 Total equity securities 5,433,362 96.50


Other Net Assets 197,302 3.50 Total Net Assets Attributable to Holders of Redeemable

Participating Shares 5,630,664 100.00 % of Total Analysis of Net Investments Assets Transferable securities admitted to an official stock

exchange listing or dealt on another regulated market 5,433,362 96.50

SPARX Funds Plc

114

SPARX JAPAN FUND

UNAUDITED CHANGES IN COMPOSITION OF PORTFOLIO FOR THE YEAR ENDED 31 OCTOBER 2020

Number of shares Cost/Proceeds JPY Major Purchases Sony 1,584,400 11,218,467,025 Mercari 1,072,300 5,192,639,927 Olympus Optical 1,672,500 3,489,291,462 Z Holdings 3,627,100 2,690,362,275 Asahi Intecc 847,900 2,599,189,610 Santen Pharmaceutical 1,267,300 2,488,999,014 Shiseido 351,700 2,378,792,320 Suntory Beverage And Food 538,000 2,199,492,585 Misumi 720,200 1,950,804,738 Kao 220,300 1,885,261,106 Fast Retailing 33,200 1,608,870,610 Keyence 42,200 1,581,224,514 PeptiDream 294,500 1,397,509,665 Pigeon 273,100 1,077,952,186 Murata Manufacturing 126,400 929,459,077 Mitsubishi Corp 327,300 909,233,088 Nidec 88,500 884,672,825 Shimano 46,300 746,585,663 Softbank 156,600 709,884,313 Nissan Chemical Industries 157,700 691,912,979 Recruit Holdings 176,900 627,094,493 Terumo 158,300 579,711,682 Daikin Industries 37,100 534,904,398

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115

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UNAUDITED CHANGES IN COMPOSITION OF PORTFOLIO FOR THE YEAR ENDED 31 OCTOBER 2020 (CONTINUED)

Number of shares Cost/Proceeds JPY Major Sales Mitsubishi UFJ Financial Group 9,779,300 (4,623,371,035) Sumitomo Mitsui Financial Group 976,300 (3,391,788,009) Sony 347,600 (2,817,912,155) Fuji Seal 1,166,500 (2,391,673,624) Relo Holdings 842,700 (1,735,817,618) Daikin 81,600 (1,484,463,990) Kubota 1,044,700 (1,413,869,462) Ryohin Keikaku 917,000 (1,367,844,926) Mitsubishi Corp 605,200 (1,349,909,121) Uni Charm 324,000 (1,265,770,688) Shimano 67,400 (1,166,631,398) Isuzu Motors 1,467,200 (1,051,796,458) Softbank 188,700 (876,646,565) Misumi 299,200 (773,658,111) Mani 253,800 (730,630,104) Fast Retailing 9,300 (670,610,146) Mercari 122,500 (609,444,602) Recruit Holdings 163,000 (568,883,924) Asics Corporation 431,400 (547,836,315) Kao 56,100 (459,227,419) Santen Pharmaceutical 211,800 (432,166,621)

The Unaudited Changes in Composition of Portfolio reflect the aggregate purchases of a security exceeding one percent of the total value of purchases and aggregate disposals of a security greater than one percent of the total sales for the year. At a minimum the largest 20 purchases and largest 20 sales must be given.

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116



Number of shares Cost/Proceeds JPY Major Purchases NGK Spark Plug 6,300 13,770,755 Enigmo 12,800 11,639,880 Macromill 11,200 11,197,826 Nippon Flour Mills 6,200 10,523,534 CyberAgent 2,400 9,054,995 DaikyoNishikawa 10,500 8,947,386 Yoshimura Food Holdings 8,200 8,694,767 OYO 5,700 8,117,861 SoldOut 3,900 7,597,988 Lec 6,400 7,494,903 Teikoku Electric 4,600 6,313,666 Onoken 3,600 5,053,028 Piolax 2,100 4,675,667 Kufu 3,600 4,662,261 Yamatane 3,100 4,616,301 Foster Electric 2,800 4,462,393 Prored Partners 1,000 3,912,884 Mitsubishi Pencil 2,400 3,772,255 Fuji Machine Manufacturing 2,000 3,220,460 CKD Corporation 1,500 2,560,411 ValueCommerce 1,500 2,444,646 Invincible Investment 112 2,419,962 Nihon Kohden 800 2,419,292 Ulvac 700 2,262,461 Nippon Aqua 3,600 2,206,434 Poletowin Pitcrew Holdings 2,300 2,099,396 Fujibo Holdings 600 2,026,969 Septeni 9,200 1,950,575 Sigmaxyz 1,100 1,837,554

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117



Number of shares Cost/Proceeds JPY Major Sales NEC System 13,900 (49,189,734) Parco 20,400 (37,641,300) Capcom 8,300 (29,313,096) Uchida Yoko 3,800 (27,277,445) JustSystems 4,500 (27,151,676) Nihon Kohden 6,600 (23,034,569) Senko 27,100 (22,867,297) Morita 13,200 (21,961,368) Maeda kosen 9,900 (20,657,044) Cosmos Pharmaceutical 900 (20,536,946) Takuma 14,500 (18,349,186) Pal Company 8,300 (17,975,619) Sanyo Chemical Industries 4,100 (17,628,038) Trans Cosmos 7,400 (17,261,938) Lifull 37,200 (16,479,843) Tokyo Ohka Kogyo 3,700 (16,214,855) Nishimatsuya Chain 20,200 (15,372,900) Juki 25,500 (15,021,424) Shinnittetsu Sumikin Solutions Corporations 4,800 (14,832,421) Fujimori Kogyo 4,400 (14,315,384) Elecom 3,200 (13,974,757) like 9,600 (13,806,522) Miura 3,300 (13,083,488) Mitsubishi Research Institute 3,600 (12,523,668) Teikoku Piston Ring Company 8,900 (12,466,740) H-ONE 22,100 (12,154,368) Syuppin 15,300 (11,533,212) VT Holdings 34,700 (11,446,815) Kyudenko 4,200 (11,441,280) SIIX Corporation 11,500 (11,419,591) Piolax 7,200 (11,417,998) Toyobo 7,100 (11,355,835) Enigmo 11,900 (11,309,835) Saizeriya 5,800 (11,221,146) Amada 9,400 (11,137,356) Lec 9,000 (10,751,451) CyberAgent 2,300 (10,738,028) Onoken 9,300 (10,377,564)

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Number of shares Cost/Proceeds JPY Major Sales (Continued) Tobishima 9,600 (9,951,666) Foster Electric 8,100 (9,673,584) Aruhi 7,100 (9,638,308) Globeride 4,800 (9,505,410) NOF 2,500 (9,060,153) Nippon Flour Mills 5,100 (8,342,314)


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119



Number of shares Cost/Proceeds JPY Major Purchases Otsuka 117,200 556,559,498 Daikin 33,500 532,033,537 Yamaha 91,900 522,280,570 Sony 68,800 517,095,102 Shin-Etsu Chemical 41,300 513,706,688 Nintendo 9,700 425,834,938 Tokio Marine Holdings 75,400 423,241,067 Tokyo Electron 17,200 412,756,557 Hoya 39,500 409,161,689 Fujitsu 34,200 399,301,705 KDDI 117,100 368,550,887 Sysmex Corporation 43,000 353,141,229 Itochu 124,300 309,139,459 Marui 129,200 306,653,606 Sawai Pharmaceutical 49,100 306,393,844 Daiwa House 96,900 295,682,549 Fuji Electric 80,100 255,393,500 Taiyo Yuden 77,100 254,354,850 SG Holdings 94,400 252,866,787 Recruit Holdings 61,800 247,422,444 Orix 131,200 238,751,429 Nidec 19,500 233,000,806 Toho 56,900 232,539,151 Park24 90,800 227,112,251 Fast Retailing 3,500 214,234,189 Aica Kogyo 61,300 214,185,755 East Japan Railway 22,800 212,903,984 Keyence 5,200 211,394,074 West Holdings 109,500 203,516,057 Sushiro Motor 34,900 201,286,565 Kurita Water Industries 64,600 200,950,451 Nichirei 70,600 194,403,117 Kao 22,400 193,093,218 Suzuki Motor 40,600 189,057,359 Pan Pacific International Holdings 85,600 181,355,752 Yokogawa Electric 100,600 179,614,086 Fancl 50,300 175,112,412 Mitsui Chemicals 68,200 174,037,814 Mitsubishi UFJ Financial Group 289,200 162,112,300 Toyota Industries 25,300 156,873,547 So-Net 43,100 149,139,935 Disco Corporation 5,800 146,410,435

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Number of shares Cost/Proceeds JPY Major Sales SG Holdings 63,700 (295,556,444) Orix 159,600 (239,025,994) East Japan Railway 26,300 (209,635,652) Park24 104,800 (189,256,170) Mitsubishi UFJ Financial Group 335,600 (145,765,280) Daikin 8,400 (135,319,104) Yokogawa Electric 76,500 (127,176,899) Hoya 11,400 (125,005,402) Otsuka 25,100 (115,209,109) Sony 12,300 (91,267,584) Marui 50,300 (89,994,351) So-Net 17,000 (86,685,217) Shin-Etsu Chemical 6,800 (84,109,550) Toho 24,600 (82,374,952) Recruit Holdings 21,500 (77,074,404) Bengo4 6,800 (73,637,711) Yamaha 14,500 (72,248,518) Daiwa House 24,000 (67,253,295) Keyence 1,400 (64,348,148) Mitsubishi Chemical Holdings 100,100 (63,450,670) Mitsui Chemicals 27,100 (58,427,671) Disco Corporation 2,300 (54,478,040) Suzuki Motor 16,000 (53,975,801) The Pack Corporation 17,500 (52,883,656) Shimano 2,300 (45,230,172) West Holdings 19,600 (45,215,356) KDDI 14,000 (43,425,829) Tokio Marine Holdings 7,300 (41,306,047) Tokyo Electron 1,500 (34,641,710) The Unaudited Changes in Composition of Portfolio reflect the aggregate purchases of a security exceeding one percent of the total value of purchases and aggregate disposals of a security greater than one percent of the total sales for the year. At a minimum the largest 20 purchases and largest 20 sales must be given.

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121



Number of shares Cost/Proceeds USD Major Purchases NetDragon Websoft 69,000 197,924 Surya Citra Media 1,890,800 177,308 Xiaomi 115,200 158,152 Times Neighborhood 131,000 155,834 AK Medical 112,000 140,903 Top Glove 104,300 139,292

AirTAC International Group 8,000 139,007 Ping An Healthcare & Technology 9,300 134,263 Sea 2,500 121,558 Xiabuxiabu Catering Management 115,500 120,871 Sino Biopharmaceutical 76,000 119,259 Hualan Biological Engineering 22,531 118,418

HDFC Life 18,216 118,415 Guangzhou Baiyun International Airport 56,800 117,647 JD.com 2,900 116,448 New Oriental Education & Tech Group 880 112,773 Daum Kakao 410 103,034 IndiaMart 2,240 102,556

Kangji Medical 38,000 100,916 FILA Korea 2,267 100,165 Nien Made Enterprise 8,000 98,127 Bajaj Finserv 1,350 93,374 SBI Cards and Payment Services 11,900 91,338 Douzone Bizon 962 88,753

GSX Techedu 4,000 84,950 Central Pattana 50,200 77,888 ASPEED Technology 2,000 75,208 Ayala Land 137,500 64,840 Info Edge 1,980 60,803 Media Nusantara Citra 495,100 58,741

Macroasia Corporation 315,400 58,646 Wuxi Biologics Cayman Incorporation 3,500 57,457 Zee Entertainment Enterprises 23,473 57,025 Alliance Global 382,200 45,605 Joint Stock Commercial Bank for Foreign Trade 11,400 41,835 Shandong Weigao 20,000 41,283

Can Fin Homes 11,000 39,192

SPARX Funds Plc

122



Number of shares Cost/Proceeds USD Major Sales Top Glove 82,000 (269,309) Philippine Seven Corporation 75,000 (195,145) Humanica 794,900 (188,860) Wilcon Depo 538,400 (171,737) Inari Amerton Berhad 364,000 (156,255) Niu Technologies 16,800 (153,331) AK Medical 72,000 (152,545) Shandong Weigao 68,000 (147,422) Sea 1,000 (146,131) Xiabuxiabu Catering Management 126,500 (143,009) Xiaomi 44,600 (134,228) GlobalWafers 10,000 (131,352) GSX Techedu 4,000 (123,969) D & L Industries 734,600 (118,738) JAPFA Comfeed Indonesia 1,020,000 (118,434) Shenzou International Group 8,600 (117,873) Honma Golf 149,500 (116,766) Hundsun Technologies 7,500 (104,469) Ultrajaya Milk Industry & Trad 920,400 (104,466) Koh Young Technology 1,187 (101,352) Care Ratings 15,115 (91,098) Vincom Retail 80,260 (88,898) Info Edge 2,450 (86,840) HRnetGroup 190,000 (84,973) Delfi 157,100 (79,784) Thyrocare Technolgies 10,072 (75,771) FILA Korea 3,045 (75,748) Security And Intel 10,219 (64,167) Joint Stock Commercial Bank for Foreign Trade 22,140 (63,460) Hualan Biological Engineering 9,700 (63,373) Bank Central Asia 25,000 (56,932) Zee Entertainment Enterprises 12,700 (51,113) Jiangsu Hengrui Medicine 4,200 (50,734) Machvision 4,000 (42,912)

The Unaudited Changes in Composition of Portfolio reflect the aggregate purchases of a security exceeding one percent of the total value of purchases and aggregate disposals of a security greater than one percent of the total sales for the period. At a minimum the largest 20 purchases and largest 20 sales must be given.

SPARX Funds Plc

123

SPARX JAPAN FUND


Number of shares Cost/Proceeds JPY All Purchases Nissan Chemical Industries 1,109,600 5,284,320,769 Santen Pharmaceutical 2,738,400 4,701,912,123 Relo Holdings 771,100 1,997,156,267 Ariake Japan 312,200 1,967,326,936 Mitsubishi 652,300 1,914,154,385 Shimano 82,900 1,298,730,092 Mitsubishi UFJ Financial Group 2,010,400 1,190,488,986 Kao 140,600 1,144,531,235 Kubota 594,200 970,217,969 Nidec 71,100 944,552,085 Rohto Pharmaceutical 286,400 842,303,827 Misumi 333,600 821,694,604 Keyence 13,400 818,153,529 Uni Charm 237,500 795,830,983 Softbank 114,400 613,925,383 Fast Retailing 8,900 448,402,982 Terumo 110,500 357,208,048 Daikin Industries 28,600 331,253,961 Recruit Holdings 46,300 152,901,545

SPARX Funds Plc

124

SPARX JAPAN FUND


Number of shares Cost/Proceeds JPY All Sales Japan Tobacco 842,900 (2,377,989,226) Fast Retailing 23,600 (1,513,370,937) Toyota Motor 171,500 (1,216,845,433) Kao 117,600 (1,011,567,878) Keyence 12,200 (813,350,256) Uni Charm 178,500 (608,865,603) Mani 78,300 (578,876,013) Mitsubishi 130,500 (394,351,086) Kubota 137,000 (237,876,046) Misumi 77,800 (206,130,688) Shimano 12,200 (191,947,215) Terumo 55,900 (175,399,840) Daikin Industries 10,700 (134,855,807) Itochu 58,500 (117,026,594) Sumitomo Corporation 59,900 (96,462,565) Rohto Pharmaceutical 31,000 (92,910,817) Marubeni Corporation 77,600 (54,696,354)


SPARX Funds Plc

125



Number of shares Cost/Proceeds JPY Major Purchases Nihon Kohden 98,500 324,370,385 Shinnittetsu Sumikin Solutions Corporation 93,000 298,261,323 Pal 101,600 294,506,642 Kakaku 130,200 269,939,156 SIIX Corporation 174,900 267,600,239 Eagle Industry 155,000 221,454,066 H-One 225,800 217,861,882 Saizeriya 97,300 202,238,197 Parco 155,700 192,847,851 Amada Holdings 172,200 187,353,083 Fujimori Kogyo Company 58,200 185,142,195 Hitachi Capital 61,400 179,118,737 Dexerials 180,100 175,608,614 NOF 46,800 174,274,824 Teikoku Piston Ring Company 66,600 173,990,162 Juki Corporation 129,400 173,374,716 Morita 79,900 167,157,249 Trans Cosmos 65,800 161,538,703 Cosmos Pharmaceutical 7,900 160,468,400 Mitsubishi Research Institute 40,700 158,241,440 Tobishima 96,200 155,178,370 Restar Holdings Corporation 71,200 154,714,571 Foster Electric 99,100 152,712,916 Kasai Kogyo 151,600 147,737,516 Takasago International Corporation 40,100 147,661,685 Senko 168,200 147,291,178 Nippon Hume Corporation 161,300 144,766,010 Toyobo 94,500 144,214,655 Piolax 57,800 141,060,814 JustSystems 61,200 137,644,174 Capcom 59,500 133,551,360 Nec System Intg &Con 52,400 129,678,234 Maeda Kosen 55,700 126,482,716 Nishimatsuya Chain 125,400 124,466,325 Aeon Fantasy 29,600 105,302,533 Nissei ASB Machine 23,900 94,001,991 Tokyo Ohka Kogyo 27,900 93,948,261 Sanyo Chemical Industries 16,000 87,833,888 ITmedia Inc 131,700 86,563,209 Lifull 145,800 83,801,115 Onoken 47,300 78,526,815

47,300 78,526,815

SPARX Funds Plc

126



Number of shares Cost/Proceeds JPY Major Sales Maruwa 106,900 (649,963,978) Nec System Intg &Con 183,500 (495,429,741) Descente 193,000 (484,362,458) Pal 146,800 (471,372,889) Miura 169,000 (463,335,054) Senko 486,500 (440,287,783) FP Corporation 68,500 (439,095,779) Sanyo Chemical Industries 78,300 (415,880,555) Nissei ASB Machine 118,500 (412,267,821) Shinnittetsu Sumikin Solutions Corporation 129,000 (400,677,575) Ship Healthcare Holdings 97,900 (399,934,567) Keisei Electric Railway 108,900 (395,613,914) Nippon Signal 394,300 (394,737,236) Juki Corporation 363,100 (390,217,413) Fujimori Kogyo Company 130,600 (389,626,417) Nihon Kohden 115,700 (382,712,137) Takuma 279,000 (378,780,771) Nippon Electric Glass 124,400 (363,428,240) Parco 346,100 (359,984,541) Organo Corporation 116,200 (353,950,097) Mitsubishi Logistics 127,500 (351,322,440) Morita 183,800 (337,793,151) Trans Cosmos 145,100 (335,377,355) Elecom 97,600 (331,509,126) Tosei 327,200 (328,310,190) Nishimatsuya Chain 359,100 (323,953,773) ValueCommerce 186,800 (305,381,758) Asia Pile Holdings Corporation 475,000 (300,513,278)

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127



Number of shares Cost/Proceeds JPY Major Sales (Continued) Bic Camera 188,600 (281,143,210) Kakaku 129,200 (275,664,706) Hanwa Corporation 82,600 (271,122,903) Teikoku Piston Ring Company 128,000 (265,571,402) Shimamura 27,900 (256,648,621) SIIX Corporation 162,000 (253,098,517) JSP Corporation 104,500 (251,142,293) Nissin Electric 248,500 (246,964,610) Anest Iwata 204,400 (246,297,885) Sanyo Denki 59,400 (241,689,227) Tobishima 166,700 (226,445,954) Fujikura 439,000 (209,677,963) Saizeriya 90,900 (201,368,291) Ariake Japan 21,500 (195,706,365) Restar Holdings Corporation 105,000 (191,944,676)


SPARX Funds Plc

128



Number of shares Cost/Proceeds JPY Major Purchases East Japan Railway 26,700 275,721,863 SG Holdings 69,700 201,147,614 Sawai Pharmaceutical 30,600 185,272,641 Sony 27,800 149,697,243 Toho 36,500 149,172,630 Otsuka 40,000 148,469,049 Sushiro Global Holdings 22,100 146,651,543 Persol Holdings 56,800 141,953,470 Tokio Marine Holdings 25,700 140,112,742 Yamaha 24,800 120,172,910 Koshidaka Holdings 80,300 116,361,673 Wacom 201,600 102,530,038 Daikin Industries 8,000 102,355,896 Japan Lifeline 54,600 99,331,447 Orix 59,800 97,820,495 Rinnai 12,400 92,446,267 KDDI 34,200 90,895,300 Fuji Electric 25,700 87,711,858 Shin-Etsu Chemical 8,400 83,435,746 Park24 31,600 83,208,835 West Holdings 69,900 81,159,227 Daiwa House Industry 24,000 80,404,034 Musashi Seimitsu Industry 48,000 77,433,668 Kao 8,900 72,563,942 Yokogawa Electric 32,500 66,703,802 Kurita Water Industries 20,900 59,081,168 Hoya 8,000 59,003,768 Mitsubishi UFJ Financial Group 104,600 58,407,995 Itochu 28,700 58,270,752 Tokyo Electron 3,600 56,766,237 Aica Kogyo 16,300 56,180,896 Seria 14,400 56,004,792 Mitsubishi Chemical Holdings 66,200 55,247,268 Suzuki Motor 10,200 49,234,602 Keyence 800 47,880,076 Nidec 3,300 45,550,981 Mitsui Chemicals 17,700 44,247,959

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129



Number of shares Cost/Proceeds JPY Major Sales Sony 96,200 (568,396,687) Daikin Industries 38,700 (538,381,463) Otsuka 120,900 (520,058,722) Yamaha 98,300 (505,791,457) Shin-Etsu Chemical 46,100 (479,829,551) Orix 284,400 (459,262,148) Tokio Marine Holdings 73,800 (419,971,498) Hoya 45,400 (375,852,886) SG Holdings 123,700 (371,060,246) Mitsubishi UFJ Financial Group 683,400 (360,076,664) KDDI 123,000 (350,099,157) Fast Retailing 5,500 (348,863,806) Tokyo Electron 19,900 (347,502,864) Park24 136,700 (342,918,313) East Japan Railway 30,700 (308,438,668) Toho 68,200 (306,386,018) Suzuki Motor 65,800 (304,551,627) Mitsubishi Motors 432,300 (291,998,903) Itochu 135,900 (284,587,999) Sawai Pharmaceutical 45,200 (273,378,952) Fuji Oil 76,400 (261,957,733) Mitsubishi Chemical Holdings 348,200 (259,057,184) Daiwa House Industry 79,200 (248,526,606) Nidec 17,100 (247,702,941) Recruit Holdings 65,700 (237,584,177) Mitsui Chemicals 82,900 (208,331,397) Rinnai 29,000 (203,018,898) Keyence 3,100 (198,650,836) Disco Corporation 10,100 (190,790,856) Aica Kogyo 54,000 (185,006,013) Fuji Electric 49,200 (173,151,932) Trend Micro 33,300 (168,374,175) Kurita Water Industries 59,400 (166,077,165) Toyota Industries 28,100 (165,228,511) Kao 19,500 (159,409,984) Skylark 93,000 (159,402,508) Teijin 81,900 (152,709,996) Iriso Electronics 28,300 (146,697,547) The Unaudited Changes in Composition of Portfolio reflect the aggregate purchases of a security exceeding one percent of the total value of purchases and aggregate disposals of a security greater than one percent of the total sales for the year. At a minimum the largest 20 purchases and largest 20 sales must be given.

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Number of shares Cost/Proceeds USD Major Purchases Fila Korea 6,403 304,071 Matahari Department Store 1,029,700 295,102 Koh Young Technology 3,869 289,341 JAPFA Comfeed Indonesia 1,992,100 267,262 Vincom Retail 152,550 205,724 Shandong Weigao Group Medical Polymer 224,000 202,435 Charoen Pokphand Foods 263,800 200,021 Wilcon Depot 858,000 198,857 Humanica 794,900 197,201 Douzone Bizon 4,815 196,071 Xiabuxiabu Catering Management China Holdings 141,000 195,507 Care Ratings 20,853 185,699 Delfi 196,400 184,514 Sinopharm Group 40,400 183,528 Zee Entertainment Enterprises 32,615 172,616 Alibaba Group Holding 1,100 165,059 Bank Central Asia 96,300 164,305 Joint Stock Commercial Bank for Foreign Trade 56,420 160,002 Ultrajaya Milk Industry & Trading 1,989,000 157,887 President Chain Store 15,000 156,011 Philippine Seven Corporation 75,000 155,053 Inari Amertron Bhd 364,000 152,276 BGF retail 846 151,765 Jollibee Foods 28,200 150,674 AirTAC International Group 16,000 150,140 Microport Scientific 118,000 149,103 D&L Industries 734,600 148,400 Ctrip.Com International 5,021 139,930 Honma Golf 149,500 138,609 Shenzhen Mindray Bio-Medical Electronics 5,611 131,824 Hundsun Technologies 11,200 119,816 Security & Intelligence Services India 10,202 118,030 Jiangsu Hengrui Medicine 14,047 115,421 Shenzou International Group 8,600 114,689 Sumber Alfaria Trijaya 1,989,000 114,500 Media Nusantara Citra 1,184,600 109,939 Machvision 8,000 109,703 ICICI Lombard General Insurance 6,586 109,447 Geely Automobiles 67,000 109,246 Chroma ATE 22,000 108,358 Niu Technologies 16,800 106,608 Elite Material 24,000 106,055 Stella International Holdings 100,000 103,003

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Number of shares Cost/Proceeds USD Major Purchases (Continued) GlobalWafers 10,000 102,790 Gamuda 168,600 101,491 Faraday Technology 86,000 101,006 Sri Rejeki Isman 4,024,900 100,894 Ping An Healthcare & Technology 22,100 100,184 MacroAsia 372,000 98,124 MI Technovation 152,500 85,382 Number of shares Cost/Proceeds USD Major Sales Matahari Department Store 1,029,700 (264,677) Douzone Bizon 4,815 (249,832) Charoen Pokphand Foods 263,800 (237,928) AirTAC International Group 16,000 (203,412) Koh Young Technology 2,682 (198,587) Alibaba Group Holding 1,100 (190,891) Ctrip.Com International 5,021 (190,559) Jollibee Foods 28,200 (160,469) Sinopharm Group 40,400 (146,658) Stella International Holdings 100,000 (142,196) BGF retail 846 (142,142) President Chain Store 15,000 (141,150) Faraday Technology 86,000 (122,669) Gamuda 168,600 (120,379) Microport Scientific 118,000 (113,650) JAPFA Comfeed Indonesia 972,100 (111,862) Sri Rejeki Isman 4,024,900 (100,626) Ping An Healthcare & Technology 22,100 (98,009) Geely Automobiles 67,000 (94,772) Ultrajaya Milk Industry & Trading 1,068,600 (93,557) Land Mark Optoelectronics 11,000 (93,242) Jiangsu Hengrui Medicine 8,300 (91,760) 3SBio 58,500 (90,722) MI Technovation 152,500 (84,537) Jointown Pharmaceutical Group 23,000 (53,353) The Unaudited Changes in Composition of Portfolio reflect the aggregate purchases of a security exceeding one percent of the total value of purchases and aggregate disposals of a security greater than one percent of the total sales for the year. At a minimum the largest 20 purchases and largest 20 sales must be given.

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SPARX ONEASIA ALL CAP FUND


Number of shares Cost/Proceeds USD Major Purchases Zee Entertainment Enterprises 287,148 1,603,430 Genting Malaysia 933,900 795,420 HSBC Holding 23,200 198,220 Sands China 8,800 37,110

Number of shares Cost/Proceeds USD Major Sales AIA Group 807,800 (7,933,414) Tencent Holdings 141,700 (6,450,818) Taiwan Semicon Manufacturing 716,000 (5,506,913) HK Exchanges & Clearing 122,100 (4,146,301) Guangdong Investment 2,000,000 (3,841,170) Bank Central Asia 1,822,700 (3,550,196) Samsung Electronics 86,448 (3,290,245) China State Construction International 3,054,000 (3,110,792) Bangkok Dusit Medical Services 3,635,200 (2,807,435) HSBC Holding 316,800 (2,610,566) Nexteer Automotive Group 2,036,000 (2,548,120) LG Household & Healthcare 2,118 (2,484,669) Kasikornbank 391,600 (2,359,553) Jardine 36,200 (2,319,653) CK Asset Holdings 281,500 (2,306,766) Mediatek 235,000 (2,207,791) Sands China 438,800 (2,136,634) GT Capital Holdings 111,914 (2,037,006) Airports of Thailand 948,700 (2,033,192) CK Infrastructure Holdings 247,500 (2,025,437) Telekomunikasi Indonesia Persero Ser 7,022,600 (1,883,884) Advanced Info Services 322,800 (1,830,398) Zee Entertainment Enterprises 287,148 (1,609,162) Haier Electronics Group 540,000 (1,585,528) Bumi Serpong Damai 16,592,100 (1,564,722) President Chain Store 162,000 (1,549,841) Geely Automobiles 875,000 (1,548,632) Samsonite International 542,700 (1,397,515) ITC 329,957 (1,388,334) DBS Group 69,700 (1,311,151) Indiabulls Housing 118,989 (1,279,920) Singapore Post 1,364,100 (979,919) Travelsky Technology 338,000 (943,755) JD Com 32,943 (929,625)

The Unaudited Changes in Composition of Portfolio reflect the aggregate purchases of a security exceeding one percent of the total value of purchases and aggregate disposals of a security greater than one percent of the total sales for the period. At a minimum the largest 20 purchases and largest 20 sales must be given.

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UCITS V Remuneration Disclosure The below disclosure is made in respect of the remuneration policies of Bridge Fund Management Limited (“Manager”) in accordance with the European Union Directive 2014/91/EU as implemented in Ireland by S.I. No. 143/2016 - European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2016. This requires UCITS management companies to establish and apply remuneration policies and practices that promote sound and effective risk management, and do not encourage risk taking which is inconsistent with the risk profile of the UCITS. The Bridge Remuneration Policy applies to all UCITS for which it acts as manager. All remuneration paid to Identified Staff can be divided into: . • Fixed remuneration (payments or benefits without consideration of any performance criteria); and • Variable remuneration (additional payments or benefits depending on performance or, in certain cases, other contractual criteria) which is not based on the performance of the UCITS. The Manager has designated the following persons as Identified Staff: 1. Executive and Non-Executive members of the management body of the Company e.g. CEO, Directors,

Executive and Non-Executive partners 2. Senior management 3. Risk takers – staff who can exert material influence on the Manager or on the UCITS or AIFs it manages 4. Those in control functions: Operations, HR, Compliance, Finance where applicable 5. Staff whose total remuneration takes them into the bracket of senior management and risk takers, whose

professional activities have a material impact on the Company’s risk position or those of the UCITS and/or AIFs it manages and

6. Categories of staff of the entities to which portfolio management or risk management activities have been delegated whose professional activities have a material impact on the Company’s risk position or those of the UCITS and/or AIFs it manages.

The Manager has a business model, policies and procedures, which by their nature do not promote excessive risk taking and take account of the nature, scale and complexity of the Manager and the UCITS. The Remuneration Policy is designed to discourage risk taking that is inconsistent with the risk profile of the UCITS and the Manager is not incentivised or rewarded for taking excessive risk. The Manager is required under UCITS regulations to make quantitative disclosures of remuneration. Disclosures are provided in relation to Identified Staff who are employed directly by the Manager and Identified staff who have the ability to materially impact the risk profile of the UCITS including individuals who, although not directly employed by the Manager, are assigned by their employer to carry out services directly by the Manager. Remuneration details for the Manager are disclosed below:

Description Number of beneficiaries

Total remuneration paid

Fixed remuneration paid

Variable remuneration paid

Total Staff Remuneration 15 €1,163,713 €1,001,213 €162,500 Senior Management (including executives),risk takers and other identified staff 8 €840,322 €696,822 €143,500

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UCITS V Remuneration Disclosure (continued) Details of the Remuneration Policy, including, but not limited to, a description of how remuneration and benefits are calculated and the identity of persons responsible for awarding the remuneration and benefits is available at the following website: https://bridgeconsulting.ie/management-company-services/ Directors’ fees charged for the year amounted to JPY 10,641,551.

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