FORTIS L FUND SICAV. Annual Report (audited) at 31/12/09. R.C.S. Luxembourg

Transcription

1 FORTIS L FUND SICAV Annual Report (audited) at 31/12/09 R.C.S. Luxembourg Page 1

2 FORTIS L FUND Table of Contents Page Organisation 4 Information 7 Custodian and Central Administration's report 8 Auditor's report 11 Financial Statements at 31/12/09 13 Key figures relating to the last 3 years 27 Securities portfolio at 31/12/09 49 Bond Asia exjapan 49 Bond Best Selection World Emerging 50 Bond Convertible Asia 52 Bond Convertible World 53 Bond Euro 55 Bond Europe Plus 63 Bond High Yield World 72 Bond USD 74 Bond World 77 Bond World Emerging Local 87 Commodity World 88 Equity Asia Emerging 89 Equity Asia exjapan 90 Equity Best Selection Asia exjapan 91 Equity Best Selection Europe 92 Equity Best Selection USA 93 Equity Best Selection World 94 Equity Brazil 95 Equity China 96 Equity Consumer Durables World 97 Equity Consumer Goods World 98 Equity Energy World 99 Equity Europe 100 Equity Europe Emerging 101 Equity Finance World 102 Equity Germany 103 Equity Growth Europe 104 Equity Growth USA 105 Equity Health Care World 106 Equity High Dividend Europe 107 Equity High Dividend Pacific 108 Equity High Dividend USA 110 Equity High Dividend World 111 Page 2

3 FORTIS L FUND Table of Contents Page Equity India 114 Equity Indonesia 115 Equity Industrials World 116 Equity Japan 117 Equity Latin America 118 Equity Materials World 120 Equity Russia 121 Equity Small Caps Europe 122 Equity SRI World 123 Equity Technology World 125 Equity Telecom World 126 Equity USA 127 Equity Utilities World 128 Equity World Emerging 129 Green Future 130 Green Tigers 131 Model Model Model Model Model Model OBAM Equity World 157 Opportunities Euro Plus 159 Opportunities Europe 160 Opportunities USA 161 Real Estate Securities Pacific 162 Real Estate Securities World 163 Short Term Euro 165 Short Term USD 167 V V Notes to the financial statements 172 Subscriptions can only be received on the basis of the latest prospectus accompanied by the latest annual report as well as by the latest semiannual report, if published after the latest annual report. Page 3

4 FORTIS L FUND Organisation Registered office of the Company: 46, avenue J.F. Kennedy, L1855 Luxembourg Board of Directors: Chairman Members Mr Nicolas FALLER Head of Distribution Partners, Fortis Investment Management S.A., Brussels Mr Marnix ARICKX Managing Director, Fortis Investment Management Belgium, Brussels Management company: Mr William DE VIJLDER Chief Investment Officer, Fortis Investment Management S.A., Brussels Ms Emmy LABOVITCH until 30 June 2009 Head of Marketing, Fortis Investment Management S.A., Brussels Mr Thomas LEAVITT until 27 May 2009 Head of Institutional Clients, Fortis Investment Management S.A., Brussels Mr Paul MESTAG Director, Fund Structuring, Fortis Investment Management Belgium, Brussels Mr Thierry SCHUMAN Member of the Management Board, BGL BNP Paribas, Luxembourg ASR NEDERLANDS N.V. (formerly FORTIS VERZERKERINGEN NEDERLANDS N.V.) Utrecht Represented by Mr Hans VAN DER KNAAP BNP Paribas Fortis (formerly FORTIS BANQUE S.A.), Brussels Represented by Mrs Barbara ROELS BGL BNP Paribas (trading name BGL until 20 September 2009), Luxembourg Represented by Mr. Carlo FRIOB Fortis Investment Management Luxembourg S.A., 46 avenue J.F. Kennedy, L1855 Luxembourg Fortis Investment Management Luxembourg S.A. is a management company as defined in Chapter 13 of the Law of 20 December 2002 concerning undertakings for collective investment. In this capacity, Fortis Investment Management Luxembourg S.A. is responsible for administration, portfolio management and marketing. The responsibilities for calculating net asset values, and the responsibilities of transfer agent and registrar are delegated to: Fastnet Luxembourg S.A., 31 Allée Scheffer, L2520 Luxembourg Portfolio management responsibilities are delegated to: Fortis Investment Management Belgium avenue de l Astronomie, 14, 1210 Brussels Also acting through its:fortis Investment Management Germany Branch, Ulmenstrasse 2325 D60325 Frankfurt am Main Fortis Investment Management UK Ltd, 82 Bishopsgate, London EC2N 4BN Fortis Investment Management France, 23, rue de l Amiral d Estaing, F75209 Paris Fortis Investment Management USA, Inc., 75 State Street, Boston, MA 02109, USA Fortis Investment Management Netherlands N.V., Burgerweeshuispad Tripolis 200, PO box 71770, NL1008 DG Amsterdam, The Netherlands Fortis Asset Management Japan Co Ltd., Yamato Life Building 23F, 117 Uchisaiwaicho Chiyodaku, Tokyo, Japan Fortis Investment Management Singapore Ltd., One Raffles Quay #2110 South Tower, Singapore ABN AMRO Asset Management (Asia) Ltd., 30/F Three Exchange Square, 8 Connaught Place, Central Hong Kong Neuflize OBC Asset Management (NOAM) S.A., 3 Avenue Hoche, F75008 Paris Page 4

5 FORTIS L FUND Organisation Neuflize Private Assets (NPA) S.A., 3 Avenue Hoche, F75008 Paris (since 1 August 2009) RIVER ROAD ASSET MANAGEMENT LLC, 462 South Fourth Street, Suite 1600, Louisville, Kentucky It may also seek advice from the following investment adviser: (until 30 June 2009) KIT FORTIS INVESTMENT CONSULTING, Ltd. 1/25 Kazanskaya U1, Litera A, St. Petersburg, Russian Federation A limited liability company constituted in Russia on 20 February 2007 with capital of RUR 10,00. It is a 50% owned subsidiary of FIM S.A. (since 1 July 2009) KIT FORTIS INVESTMENT MANAGEMENT, Marata Street, d 6971 liter A, St. Petersburg, Russian Federation Limited jointstock company under Russian law formed 26 March Investment adviser for the subfund Equity Russia Sustainable and Responsible Investment (SRI) Advisory Committee Chairman Mr. KarlHendrik ROBERT, founder and director, "The Natural Step", Stockholm (Sweden) Members Dr. Mariitta R.v.B. KochWeser, director, "Global Exchange for Social Investment", London (UK) Mr Cyril LIN, Managing Director, IFG Development Initiatives, Oxford (UK) (from 7 October 2008) Mr. Robert Rubinstein, founder and director, "Brooklin Bridge", Amsterdam (Netherlands) Mr. Raymond Van Ermen, executive director, "European Partners for the Environment", Brussels (Belgium) Depository Bank: BGL BNP Paribas, 50, avenue J.F. Kennedy, L2951 Luxembourg Principal Paying Agent: CACEIS BANK LUXEMBOURG, 5 allée Scheffer, L2520 Luxembourg Auditor: PricewaterhouseCoopers S.à.r.l., Réviseur d entreprises, 400, route d Esch, B.P. 1443, L1014 Luxembourg Local Agents: In Austria: Erste Bank der oesterreichischen Sparkassen AG (paying agent) In Belgium: BNP Paribas Fortis (paying agent) In the Czech Republic: Česká spořitelna, a.s. (paying agent) In Denmark: Alfred Berg Fondsmæglerselskab A/S (information agent) In Finland: Alfred Berg Asset Management Finland Ltd (information agent) In France: Fortis Banque France S.A. (paying agent) In Germany (paying and information agent): Marcard, Stein & Co GmbH & Co. KG Ballindamm 36, D20095 Hamburg In Greece: Aspis International MFMC S.A. (paying agent) In Hong Kong: ABN AMRO Asset Management (Asia) Ltd (representative) In Ireland: Fastnet Ireland Limited (facilities agent) Page 5

6 FORTIS L FUND Organisation In Italy: BNP PARIBAS Securities Services Milan Branch. (correspondent bank) Banca Intesa (correspondent bank) Banca Monte dei Paschi di Siena S.p.A. (correspondent bank) Allfunds Bank S.A. Milan Branch (correspondent bank) Société Générale Securities Services S.p.A. Milan Branch (correspondent bank) In Liechtenstein: LGT Bank in Liechtenstein AG (paying agent + representative) In Luxembourg: CACEIS BANK, Luxembourg (principal paying agent) BGL BNP Paribas (paying agent) In Macao: China Construction Bank (distributor) Banco Weng Hang S.A. (distributor) In Norway: Alfred Berg Kapitalforvaltning AS (information agent) In the Netherlands: Fortis Bank (Nederland) N.V. (paying agent) In Poland: Fortis Bank Polska S.A. (paying agent and legal representative) In Portugal: BEST Banco Electrónico de Serviço Total S.A. (paying agent) In Singapore: Fortis Investment Management Singapore Ltd. (representative) In Slovakia: Across Wealth Management o.c.p. (paying agent + representative) In Sweden: Alfred Berg Kapitalförvaltning AB (information agent) In Spain: Beta Capital Sociedad de Valores S.A. (information agent) In Switzerland: Fortis Foreign Fund Services AG (legal representative) Fortis Banque (Suisse) S.A. (paying agent) In the United Kingdom: Fortis Investment Management UK Branch (facilities agent) In Taiwan: Fortis Securities Investment Consultant Co., Ltd (master agent) Page 6

7 FORTIS L FUND Information FORTIS L FUND is an openended investment company (société d investissement à capital variable SICAV) subject to the laws of Luxembourg and registered on 29 November 1989 under the name "INTERSELEX WORLD" for an indefinite period in accordance with the provisions of Section I of the law of 30 March 1988 governing collective investment undertakings, renamed "INTERSELEX EQUITY" by the Extraordinary Shareholders' Meeting of 4 November 1996, renamed "INTERSELEX" by the Extraordinary Shareholders' Meeting of 4 May 1998, and renamed "FORTIS L FUND" by the Extraordinary Shareholders' Meeting held on 30 September The Company is subject to the provisions of Section I of the Law of 20 December 2002 governing collective investment undertakings (organisme de placement collectif OPC) following the Shareholders Meeting of 21 June The Company is subject to European Directive 85/611/EEC as amended by Directives 2001/107/EC and 2001/108/EC (UCITS III). The Articles of Association of the Company have been filed with the registrar of the District Court of Luxembourg, where any interested party may consult them and obtain a copy. They were last modified on 18 December 2006 and were published in the Mémorial, Recueil des Sociétés et Associations on 9 February The Company is registered in the Luxembourg Trade Register under the number B The Articles of Association, Prospectus and periodic reports may be obtained free of charge from the registered offices of the Company and from the local agents. They are also available on the web at the following address: The net asset values are calculated every day except Saturdays, Sundays and the following holidays in Luxembourg: 1 January, Good Friday, Easter Monday, 1 May, Whit Monday, 25 and 26 December. The net asset values and all notices for shareholders are published at the registered offices of the Company, at the local agents and in any other newspaper named by the Board of Directors. This information is also available on the web at the following address: Page 7

8 FORTIS L FUND Manager s Report ECONOMIC CONTEXT In the autumn of 2008, the American investment bank Lehman Brothers went bankrupt, prompting the greatest financial crisis for generations, now referred to as the Great Recession. Although the world seemed to be plummeting further into depression in 2009, massive monetary and fiscal stimuli helped prevent total meltdown. Leading indicators started to steady at the end of the winter. This was followed by a stabilisation of the economy, and even signs of an upturn. Germany, France, Japan and China were able to post a return to growth in the second quarter, soon followed by the United States in the third quarter. By the summer, the global recession was just a bad memory. Equity markets reacted to this economic turnaround with euphoria, while longterm rates remained weak. UNITED STATES The economic recession began in the United States at the beginning of The crisis was most marked in the fourth quarter of 2008 and the first quarter of The second quarter of 2009 saw a further slight contraction. In the third quarter, growth was initially forecast at a high annualised level of 3.5%, but this was revised downwards to 2.2%, in two stages. At the time there was talk of considerable improvement. The confidence of producers, consumers and construction companies increased, the property market stabilised and consumer spending started to pick up. Monthly job losses decreased and the pace of increase in the unemployment rate slowed. However, uncertainty remained as to whether the recovery could be sustained. Confidence among small businesses and small consumers lagged behind the confidence shown by large companies. Basically, small businesses and small consumers had taken the brunt of the credit crunch. High unemployment continued to exert downward pressure on household incomes, hampering their growth. Support from the fiscal and monetary authorities played a considerable role in the recovery. It remains to be seen whether the economy is sufficiently solid to avoid a new collapse. OPE In the eurozone, the economy showed the first signs of weakness in the second quarter of This region bottomed out in the first quarter of the following year. In the second quarter, Germany and France surprised markets by posting positive growth, but this was not enough to boost the eurozone s economy as a whole. However, further signs of growth emerged in the third quarter and leading indicators pointed to continued recovery. It is worth noting that the unemployment rate in the eurozone did not nosedive in the same way as in the United States because of the rigidity of the employment market which makes dismissing employees more complicated, but also thanks to various government programmes for safeguarding employment. Nevertheless, European consumers remained cautious on spending and banks were reticent about granting credit. JAPAN Considerable public incentives and strong export growth helped Japan come out of recession in the second quarter. The economy also continued to grow in the third quarter. However, the high initial figures were revised sharply downwards. In Japan, exports and industry picked up strongly from extremely low levels. But the national situation was less happy. Although unemployment rates recently fell slightly, they remain high in Japanese terms and wages have declined, while the country is again facing deflation. EMERGING MARKETS Emerging markets began a steady rise after the through in early Asia was notable for producing a V shaped recovery, the result of a pronounced contraction due to lower demand, the stagnation of international trade finance and exports, and accumulation of stocks. However, a massive programme to stimulate the economy launched by the Chinese government generated positive results for other countries in the region and for exporters of raw materials. Bank credit exploded at the start of the year but when this fell back sharply in the summer, the financial markets feared that credit was drying up. China s central bank has, however, announced its intention of maintaining an accommodating monetary policy for the time being. Page 8

9 FORTIS L FUND Manager s Report MONETARY POLICY The central banks have done their utmost to avoid a recession. Interest rates fell to zero in the United States and to 1% in the eurozone. Since the spring of 2009, interest rates have remained unchanged in the principal economic regions and have been cut in the majority of the emerging markets. Apart from lowering interest rates, the central banks have taken various extraordinary measures, from massive injections of cash into the banking sector to buying up government bonds, shortterm corporate bonds and mortgagebacked securities. Interest rates also fell in a number of emerging countries. In the year under review, there was lively debate between those who considered that the world economy was heading for a period of inflation and those who took the opposing view and pointed to the risk of deflation. The inflation camp marshalled their arguments based on the enormous amounts of cash generated by the banks, low interest rates and huge public deficits, while the deflation camp focused on the underutilisation of industry worldwide and high unemployment. Inflation peaked in the summer of 2008, but one year later was generally negative. At the end of the year under review, inflation started to climb back up. These major fluctuations are almost entirely due to significant changes in the price of oil. Looking at underlying inflation, in other words excluding the price of oil and food, a steady downward trend can be seen over the past year. Low inflation and a reduction in bank credit was the reason for the central banks policy of keeping official interest rates low. Since autumn 2009, there has been much discussion about the end of the unconventional monetary policy. The first signs of interest rate rises introduced by the lesser central banks sent a whiff of fear into the markets. Similarly, changes in attitude at the Fed and the ECB were evident, both these central banks being likely to reduce their injections of cash into the banking sector. In addition, the Fed has stopped buying up government bonds and intends to put an end to buying mortgagebacked securities at the end of the first quarter of As regards the interest rate weapon, the major central banks have all made it known that they will not be increasing rates for the time being. CURRENCY MARKETS During the year under review, the value of the US dollar was closely linked to investors perception of risk. At the start of the year, the world economy still seemed to be in the grip of depression, while the dollar was benefitting from its status as safe haven in a stormy period. The dollar appreciated against the euro from 1.39 on 1 January to 1.25 at the beginning of March. At that point, the dollar was at its strongest. But from the beginning of March, investors turned to more risky positions and the dollar began a downward slide. At the beginning of December it crossed the 1.50 threshold. In December, the dollar managed to regain a bit of ground and was back under This time due to better prospects for the American economy rather than a flight to safety. At the beginning of the year under review, the Japanese yen was trading at around 90 to the dollar. This strength was due to the fact that many Japanese investors were repatriating funds. However, the yen had to give up ground to the dollar (100 yen to the dollar) in April 2009 when the country was hit hard by recession. There followed a long period of appreciation and the recovered to its rate of 90 yen at the end of the year under review. BOND MARKETS US longterm bonds climbed around 1.5% during the past year. At the beginning of the year, many investors in government bonds had fled the market and the US interest rate was around 2.25%. Rates increased rapidly in the first half of the year in particular. But in March, the Fed s promise to buy some 300 billion dollars of government bonds prompted a fall of 50 basis points in a single day, to 2.5%. However, this was only temporary. The rate rapidly crossed the 3% mark when the recovery began to take shape in the spring. In June, the rate was fully set to reach 4%, in a context of economic recovery, sharp upturn in equity markets and fears of inflation. However, the Fed s repeated promises to keep the rate low for a long period and the downward trend of inflation once again sent the longterm rate tumbling. In the autumn, the rate hovered beteween 3.2% and 3.6%. By the end of the year, it was back up over 3.8%. US bonds suffered principally from colossal public deficits and questions over how they could be financed. The German longterm rate was much more stable than the US rate. At the deepest point of the crisis, investors sought safety in US securities and, to a lesser extent, in German. This, plus the fact that the ECB was not buying government bonds, was the reason that German bonds did not suffer as great a fall as US bonds when the Fed announced its measures. Overall, the German bond rate fluctuated in a narrow range between 3.0% and 3.5% in 2009, with a shortlived peak in June. At the end of the year, the German interest rate also remained fairly stable. Uncertainties about public deficits centred principally on Greece, Ireland and Spain. Total risk accumulation for longterm rates was running much higher in these countries than in Germany. Page 9

10 FORTIS L FUND Manager s Report EQUITY MARKETS In 2009, equities in industrialised countries climbed 28% and in emerging markets 73%. Throughout the credit crisis, equity markets have been subject to periods of panic. The first came with the peak of the crisis in autumn In barely three months, equities in industrialised countries lost 34%. But emerging markets, falling 45%, were more heavily impacted. The markets were able to regain some ground in December 2008, when the situation in the financial sector stabilised following massive government interventions. However, the start of 2009 saw a new setback. In industrialised countries, equities reached new thresholds for this cycle, having fallen 59% against their record levels in A number of indices fell below the point reached after the internet bubble burst, dropping to mid90s levels. Equities suffered enormously from forecasts of depression, deflation and corporate profits collapsing. Investors looking for dividend yields were faced with reduced dividend payments, even from the strongest companies. Similarly, in the emerging markets, equities suffered heavily but did not fall below the catastrophic levels of November Nevertheless, in March, equity investors sensed opportunities when the first green shoots were spied. There followed one of the alltime sharpest recoveries. As well as general economic recovery, we saw an upturn boosted by betterthanexpected corporate profits. But a setback came in June. Valuations declined, leading to profit taking. Longterm interest rates and US mortgage rates rose, which raised demands for a revival in the property market. In addition, the job market remained weak in the United States. Equity markets continued to experience weaknesses through to midjuly, before the recovery got back on track. After midoctober, equity markets stalled again, with the markets being affected by uncertainties over monetary policy. Nevertheless, higher valuations and concerns over the sustainability of the economic recovery also played their part. Towards the end of the year, equity markets could ultimately only glean occasional opportunities for additional profits. The economic recovery had already been factored in. There were no more profit figures of a kind that could boost share values, and many investors had already taken the profits they made in The Board of Dirctors Luxembourg, 12 April 2010 Note: The information stated in this report is historical and not necessarily indicative of future performance. Page 10

11 Auditor s Report To the Shareholders of FORTIS L FUND PricewaterhouseCoopers Société à responsabilité limitéeindependent auditor 400, route d Esch B.P L1014 Luxembourg Tel.: Fax: info@lu.pwc.com In accordance with the mandate given by the Annual General Meeting of FORTIS L FUND on 17 April 2009, we conducted our audit of the attached financial statements of FORTIS L FUND and of each of its subfunds, including the statement of net and the securities portfolio at 31 December 2009, as well as the statement of operations and changes in net for the year ended on that date, and note to the financial statements containing a summary of the principal accounting policies and other explanatory notes to the financial statements. Responsibility of the SICAV Board of Directors in preparing and presenting the financial statements The SICAV Board of Directors is responsible for the preparation and for the fair presentation of these financial statements, in accordance with the legal and regulatory requirements in force in Luxembourg relating to the preparation and presentation of financial statements. The Board s responsibility includes: the design, implementation, and monitoring of an internal control relevant to the preparation and fair presentation of financial statements that do not include any material misstatements, whether these result from fraud or error; the choice and application of appropriate accounting policies; and the calculation of accounting estimates that are reasonable in the circumstances. Responsibility of the Auditor Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Accounting Standards, as adopted by the Institute of Corporate Auditors. These standards require that we comply with the rules of ethics and that we plan and perform our audit in order to obtain reasonable assurance that the financial statements are free of material misstatements. An audit involves the implementation of procedures to gather evidence supporting the amounts and disclosures supplied in the financial statements. The choice of procedures depends on the judgment of the Corporate Auditor, as does the assessment of the risk that the financial statements may contain material misstatements, whether these result from fraud or error. In making these risk assessments, the Auditor takes into account the internal control in effect in the company relevant to the preparation and fair presentation of the financial statements, so as to define appropriate auditing procedures in the circumstances, and not in order to express an opinion on the effectiveness of this internal control. An audit also includes an assessment of the appropriateness of the accounting methods used and of the reasonable nature of the accounting estimates made by the SICAV Board of Directors, as well as an assessment of the overall presentation of the financial statements. We believe that the evidence gathered is sufficient and appropriate to justify our opinion. R.C.S. Luxembourg B TVA LU Page 11

12 Opinion In our opinion, these financial statements represent a fair reflection of the holdings and financial position of FORTIS L FUND and of each of its subfunds at 31 December 2009, as well as of the results of its operations and changes in the net for the year ended on this date, in accordance with the legal and regulatory requirements in force in Luxembourg relating to the preparation and presentation of financial statements. Other topic The additional information included in the annual report was reviewed during our mission, but was not audited in accordance with the standards cited above. Therefore, we are expressing no opinion on this information. However, this information does not call for any comment on our part in the context of the financial statements considered as a whole. PricewaterhouseCoopers S.à r.l. Luxembourg, 12 April 2010 Corporate Auditor Represented by Didier Prime R.C.S. Luxembourg B TVA LU Page 12

13 FORTIS L FUND Financial Statements at 31/12/09 Bond Asia exjapan Bond Best Selection World Emerging Bond Convertible Asia Bond Convertible World Expressed in USD USD Notes Statement of net Assets Securities portfolio at cost price Unrealised profit (loss) on portfolio Securities portfolio at market value 2 Options purchased at acquisition cost Options purchased at market value 2 Unrealized gain on financial instruments 2,10,11,12 Cash at banks and time deposits Other Liabilities Options sold at acquisition cost Options sold at market value 2,13,14 Bank overdrafts Unrealised loss on financial instruments 2,10,11,12 Other liabilities Net asset value Statement of operations and changes in net Income on investments and Management fees 3 Custodian & subcustodian fees 5 Bank interest Interest on swaps General expenses Taxe d'abonnement 7 Performance fees 4 Total expenses Net result from investments Net realised result on investment securities 2 Other realised results Net realised result Movement on net unrealised loss/gain on : Investments securities Financial instruments Change in net due to operations Net subscriptions (redemptions) Dividends paid on shares 8 Increase/Decrease of net during the exercice Net at the beginning of the exercice Reevaluation of opening consolidated NAV Net at the end of the exercice 27,331, ,967, ,653, ,621, , , , , , ,207, ,415, , , , , , , ,892, ,023, (106,862.90) 4,809, ,128, (88,571.55) 7,849, (10,583,364.66) (502,562.60) (3,236,668.10) 30,444, ,207, ,918, ,882, ,872, ,755, ,376,95 4,105, ,434, ,623, ,736, ,789, ,105, ,649, ,982, ,181, ,208, ,741, , , ,804, , , ,222, ,985, ,254, (11,667,061.62) 121,573, ,113, (11,370,156.02) 261,317, (117,730,358.72) (20,464,299.28) 123,122, ,058, ,181, ,305, ,091, ,956, ,048, ,751, , ,766, , ,637, , ,539, , , , , , , ,167, (512,491.55) (14,947,547.75) 18,209, ,749, ,612, (8,163,637.29) 23,198, (15,653,670.87) 7,544, ,994, ,539, ,250,746, ,159,379, ,778, ,207,157, ,830, ,759, ,542, , ,192, ,345, ,210,204, ,885, ,580, , , ,326, , ,678, ,206, (89,269,333.23) 120,590, ,527, ,119, (72,653,037.67) 231,993, ,619, (8,330,704.48) 390,282, ,921, ,210,204, Page 13

14 FORTIS L FUND Financial Statements at 31/12/09 Bond Euro Bond Europe Plus Bond High Yield World Bond USD Expressed in USD Notes Statement of net Assets 3,036,103, Securities portfolio at cost price 2,612,618, Unrealised profit (loss) on portfolio 38,095, Securities portfolio at market value 2 2,650,713, Options purchased at acquisition cost 3,814, Options purchased at market value 2 3,224, Unrealized gain on financial instruments 2,10,11,12 2,693, Cash at banks and time deposits 307,757, Other 71,714, Liabilities 18,011, Options sold at acquisition cost 3,499, Options sold at market value 2,13,14 2,187, Bank overdrafts 9,084, Unrealised loss on financial instruments 2,10,11,12 Other liabilities 6,738, Net asset value 3,018,091, Statement of operations and changes in net Income on investments and 127,510, Management fees 3 10,792, Custodian & subcustodian fees 5 749, Bank interest 790, Interest on swaps General expenses 2,321, Taxe d'abonnement 7 704, Performance fees 4 Total expenses 15,358, Net result from investments 112,151, Net realised result on investment securities 2 (97,741,684.07) Other realised results 27,526, Net realised result 41,936, Movement on net unrealised loss/gain on : Investments securities 206,328, Financial instruments (12,407,891.87) Change in net due to operations 235,857, Net subscriptions (redemptions) (142,144,798.09) Dividends paid on shares 8 (23,196,056.14) Increase/Decrease of net during the exercice 70,516, Net at the beginning of the exercice 2,947,575, Reevaluation of opening consolidated NAV Net at the end of the exercice 3,018,091, ,584, ,883, , ,357, ,113, ,784, ,459, ,981, ,006, ,893, ,421, ,275, ,896, ,412, ,577, ,711, ,804, , , , ,355, , ,681, ,029, (9,693,439.45) 24,582, ,918, ,372, (15,823,917.74) 66,467, (153,745,272.68) (7,038,466.94) (94,316,221.88) 946,893, ,577, ,558, ,879, ,230, ,110, ,589, ,858, ,351, ,772, ,579, ,207, ,331, ,273, , , , , , ,274, ,056, ,314, ,913, ,284, ,188, (15,383,828.06) 76,089, (21,116,257.06) (8,148,485.14) 46,824, ,382, ,207, ,172, ,101, ,731, ,833, , , ,948, ,363, ,095, , , , ,873, ,077, ,486, ,272, , , , , , ,085, ,400, ,759, ,003, ,163, ,279, (1,513,249.59) 15,930, (33,930,415.71) (2,644,641.27) (20,644,992.57) 177,722, ,077, Page 14

15 15 Page FORTIS L FUND Bond World 146,486, ,146, ,153, ,300, , , , ,239, ,742, ,997, , , ,614, ,489, ,112, , , , , , ,226, ,886, , (4,828,632.48) (106,938.87) 7,196, (20,653.07) 7,069, (15,851,574.07) (1,040,786.05) (9,823,106.96) 137,312, ,489, USD Bond World Emerging Local 676,918, ,783, ,006, ,789, ,813, ,801, ,835, ,491, ,199, ,390, , ,932, ,801, ,632, ,718, ,941, ,191, , , , , , ,107, ,834, ,542, (31,231,671.54) 145, ,177, (8,529,085.95) 69,793, ,286, (18,582,394.51) 234,497, ,220, ,718, USD Commodity World 475,953, ,137, (57,578.13) 379,080, ,671, ,842, ,358, ,761, ,761, ,191, ,026, ,623, , , ,539, ,879, , ,419, (10,392,116.59) (471,380.60) 82,462, ,599, , ,866, ,528, ,131, ,659, ,532, ,191, USD Equity Asia Emerging 263,652, ,764, ,526, ,291, ,982, ,378, ,831, , ,829, ,820, ,453, ,803, , , , , ,631, (178,120.83) 53,721, ,752, ,296, ,296, ,593, (26,522,774.94) (1,172.15) 73,069, ,751, ,820, Equity Asia ex Japan 62,791, ,286, ,751, ,038, ,328, ,424, ,852, , ,306, ,939, , , , , , , , (5,731.78) 1,864, (832,599.31) 1,026, ,249, ,275, (147,591.85) (1,414,781.51) 19,713, ,225, ,939, Equity Best Selection Asia ex Japan 93,876, ,542, ,028, ,570, , ,547, ,598, ,598, ,277, ,721, ,254, , , , , ,684, , ,617, (2,422,161.45) 8,232, ,635, ,868, (35,421,552.23) (1,961,076.11) 3,486, ,791, ,277,630.94

16 FORTIS L FUND Financial Statements at 31/12/09 Equity Best Selection Europe Equity Best Selection USA Equity Best Selection World Equity Brazil Expressed in USD USD Notes Statement of net Assets 101,698, Securities portfolio at cost price 89,836, Unrealised profit (loss) on portfolio 11,173, Securities portfolio at market value 2 101,010, Options purchased at acquisition cost Options purchased at market value 2 Unrealized gain on financial instruments 2,10,11,12 Cash at banks and time deposits 43, Other 644, Liabilities 1,330, Options sold at acquisition cost Options sold at market value 2,13,14 Bank overdrafts Unrealised loss on financial instruments 2,10,11,12 Other liabilities 1,330, Net asset value 100,368, Statement of operations and changes in net Income on investments and 2,281, Management fees 3 710, Custodian & subcustodian fees 5 48, Bank interest 2, Interest on swaps General expenses 106, Taxe d'abonnement 7 20, Performance fees 4 Total expenses 887, Net result from investments 1,393, Net realised result on investment securities 2 (1,919,994.33) Other realised results (832,288.63) Net realised result (1,358,752.92) Movement on net unrealised loss/gain on : Investments securities 23,237, Financial instruments Change in net due to operations 21,879, Net subscriptions (redemptions) 24,810, Dividends paid on shares 8 (41,905.02) Increase/Decrease of net during the exercice 46,648, Net at the beginning of the exercice 53,720, Reevaluation of opening consolidated NAV Net at the end of the exercice 100,368, ,913, ,230, ,594, ,824, ,407, ,681, ,844, ,844, ,068, ,860, ,977, , , , , ,437, , (2,189,197.94) (47,291.28) (1,812,964.58) 39,837, ,024, (24,547,920.97) (1,794,625.84) 11,682, ,386, ,068, ,620, ,883, ,091, ,975, , , , , ,450, , , , , , , , , (2,857,706.47) (867,516.23) (3,548,441.91) 10,363, ,814, (471,763.26) (114,028.24) 6,228, ,221, ,450, ,725, ,394, ,157, ,552, , ,036, ,917, ,527, ,389, ,808, ,868, ,759, , , , , ,937, ,931, ,556, ,920, ,408, ,447, ,855, ,293, (68,801.15) 480,080, ,728, ,808, Page 16

17 17 Page FORTIS L FUND USD Equity China 709,025, ,148, ,242, ,390, ,333, , ,736, , ,730, ,289, ,313, ,170, , , , ,064, , ,231, (411,880.30) 75,068, ,482, ,550, (45,594,662.65) (203,709.08) 203,752, ,537, ,289, Equity Consumer Durables World 23,660, ,440, ,566, ,006, , , , , ,258, , , , , , , , , ,167, (2,041,169.82) 2,167, ,410, ,577, (11,825,283.41) (47,123.71) (4,295,187.88) 27,553, ,258, Equity Consumer Goods World 105,712, ,799, ,582, ,381, ,155, ,175, , , ,462, ,671, ,538, , , , , ,829, , (4,452,756.84) (2,680,779.66) (6,291,355.94) 17,240, ,949, (22,806,143.33) (246,683.11) (12,103,424.68) 117,565, ,462, Equity Energy World 285,095, ,285, ,776, ,061, ,817, , , , , ,458, ,201, ,654, , , ,438, , ,450, , ,222, (10,315,741.40) 1,658, ,898, ,556, ,060, (4,031,221.04) 95,586, ,872, ,458, Equity Europe 1,070,405, ,586, ,830, ,063,416, ,577, ,410, ,137, ,202, , ,068,267, ,090, ,809, , , , , ,297, ,792, (73,409,251.79) (20,875,257.24) (68,492,235.30) 342,977, ,484, (90,006,711.89) (6,576,784.32) 177,901, ,366, ,068,267, Equity Europe Emerging 286,614, ,804, ,779, ,583, ,964, ,066, ,607, , ,591, ,006, ,214, ,747, , , , , ,584, ,629, ,431, (5,964,210.16) (1,902,855.87) 131,552, ,649, (13,255,625.01) (414,700.91) 115,979, ,027, ,006,786.12

18 FORTIS L FUND Financial Statements at 31/12/09 Equity Finance World Equity Germany Equity Growth Europe Equity Growth USA Expressed in USD Notes Statement of net Assets 70,076, Securities portfolio at cost price 62,358, Unrealised profit (loss) on portfolio 7,204, Securities portfolio at market value 2 69,563, Options purchased at acquisition cost Options purchased at market value 2 Unrealized gain on financial instruments 2,10,11,12 Cash at banks and time deposits 292, Other 220, Liabilities 165, Options sold at acquisition cost Options sold at market value 2,13,14 Bank overdrafts 14, Unrealised loss on financial instruments 2,10,11,12 Other liabilities 150, Net asset value 69,910, Statement of operations and changes in net Income on investments and 1,928, Management fees 3 1,221, Custodian & subcustodian fees 5 77, Bank interest 8, Interest on swaps General expenses 105, Taxe d'abonnement 7 40, Performance fees 4 Total expenses 1,452, Net result from investments 475, Net realised result on investment securities 2 478, Other realised results (4,216,154.95) Net realised result (3,261,952.71) Movement on net unrealised loss/gain on : Investments securities 30,930, Financial instruments Change in net due to operations 27,668, Net subscriptions (redemptions) (33,933,001.53) Dividends paid on shares 8 (3,142,161.95) Increase/Decrease of net during the exercice (9,407,063.35) Net at the beginning of the exercice 79,317, Reevaluation of opening consolidated NAV Net at the end of the exercice 69,910, ,962, ,228, ,990, ,218, ,545, , , , ,722, ,210, ,330, , , , ,554, ,656, ,351, (90,894.83) 3,917, ,052, ,969, (18,775,763.42) (1,805,862.46) 97,527, ,722, ,418, ,741, ,125, ,867, , , , , , ,605, ,527, ,528, , , , , ,301, ,225, (25,415,076.68) (1,990,371.08) (21,179,483.19) 106,792, ,613, (20,392,514.70) (9,549,330.49) 55,671, ,934, ,605, ,075, ,283, ,278, ,562, ,794, ,718, ,430, ,430, ,644, ,885, ,411,44 218, , , , ,116, (231,044.23) 36,132, , ,321, ,902, ,224, ,582, (376,876.05) 159,429, ,214, ,644, Page 18

19 19 Page FORTIS L FUND Equity Health Care World 134,188, ,797, ,635, ,432, ,131, ,624, ,352, , ,348, ,835, ,516, ,073, , , , , ,470, , (2,941,422.00) (4,439,505.71) (7,333,982.70) 21,164, ,830, (40,757,972.21) (478,247.81) (27,405,660.88) 159,241, ,835, Equity High Dividend Europe 137,353, ,026, ,177, ,204, , , ,300, , , ,052, ,520, ,868, , , , ,181, ,339, ,079, ,768, ,186, ,519, (9,402,470.14) 26,303, (16,233,850.14) (9,801,221.52) 268, ,784, ,052, Equity High Dividend Pacific 14,064, ,452, ,220, ,672, , , , , , ,760, , , , , , , , , ,711, (230,338.99) 1,660, ,222, ,882, , (84,586.89) 4,073, ,687, ,760, USD Equity High Dividend USA 32,132, ,936, ,381, ,318, , , , , , , ,029, , , , , , , , , (1,892,938.84) (1,332,764.76) (2,743,197.42) 1,941, , (179,808.30) (10,721,815.00) (393,511.29) (11,295,134.59) 43,324, ,029, Equity High Dividend World 42,031, ,242, ,248, ,490, , , ,334, , , , ,697, ,622, , , , , , , , (652,100.29) 1,781, ,035, ,267, (4,626,490.71) 3,675, (20,924,605.25) (23,786.03) (17,272,500.12) 57,969, ,697, USD Equity India 324,091, ,097, ,883, ,981, ,996, ,114, ,452, ,452, ,639, ,423, ,072, , , , ,794, (1,371,259.83) 21,323, ,283, ,236, ,957, ,193, (12,223,192.86) (24,818.29) 138,945, ,693, ,639,229.93

20 FORTIS L FUND Financial Statements at 31/12/09 Equity Indonesia Equity Industrials World Equity Japan Equity Latin America Expressed in USD JPY USD Notes Statement of net Assets 85,485, Securities portfolio at cost price 61,793, Unrealised profit (loss) on portfolio 13,618, Securities portfolio at market value 2 75,412, Options purchased at acquisition cost Options purchased at market value 2 Unrealized gain on financial instruments 2,10,11,12 Cash at banks and time deposits 7,474, Other 2,598, Liabilities 5,651, Options sold at acquisition cost Options sold at market value 2,13,14 Bank overdrafts Unrealised loss on financial instruments 2,10,11,12 Other liabilities 5,651, Net asset value 79,834, Statement of operations and changes in net Income on investments and 997, Management fees 3 589, Custodian & subcustodian fees 5 38, Bank interest 9, Interest on swaps General expenses 72, Taxe d'abonnement 7 16, Performance fees 4 Total expenses 725, Net result from investments 271, Net realised result on investment securities 2 (6,070,107.50) Other realised results (1,091,993.58) Net realised result (6,890,804.95) Movement on net unrealised loss/gain on : Investments securities 36,893, Financial instruments Change in net due to operations 30,002, Net subscriptions (redemptions) 33,118, Dividends paid on shares 8 (127,505.33) Increase/Decrease of net during the exercice 62,993, Net at the beginning of the exercice 16,840, Reevaluation of opening consolidated NAV Net at the end of the exercice 79,834, ,693, ,845, ,778, ,623, , , , , ,651, , , , , , , , ,732, (931,133.25) 1,957, ,241, ,198, (11,949,941.71) (7,751,224.59) 28,403, ,651, ,823,047,255 30,218,413, ,057,758 30,665,471, ,120,166 25,455,449 22,999, ,974, ,024,837 30,800,047, ,756, ,838,046 16,837,313 1,447, ,694,721 5,645, ,463, ,292,853 (8,038,948,805) 90,098,145 (7,602,557,807) 9,672,186, ,069,628,648 (4,669,595,946) (24,104,212) (2,624,071,510) 33,424,119, ,800,047, ,356, ,368, ,691, ,060, ,968, ,327, ,200, , ,580, ,156, ,868, ,372, , , , , ,937, ,930, ,498, ,626, ,055, ,449, ,505, (128,620,648.73) (858,181.92) 231,026, ,129, ,156, Page 20

21 21 Page FORTIS L FUND Equity Materials World 164,038, ,558, ,396, ,954, ,873, , , , ,556, ,485, ,016, , , , , ,349, , ,391, (4,297,218.27) 25,230, ,823, ,053, , (12,762.29) 60,961, ,594, ,556, Equity Russia 347,156, ,993, ,245, ,239, ,948, ,968, ,625, ,625, ,530, ,651, ,318, , , , , ,024, (1,373,187.03) (11,245,175.54) 38,985, ,367, ,977, ,344, ,075, (282,043.06) 242,138, ,392, ,530, Equity Small Caps Europe 186,662, ,759, ,489, ,249, , ,942, , , , , ,156, ,879, ,206, , , , , ,682, ,197, (14,536,411.28) (3,861,425.82) (15,200,667.26) 65,815, ,347, ,962, ,496, (672,799.54) 79,786, ,369, ,156, Equity SRI World 28,740, ,299, ,131, ,431, , ,144, , , , ,090, , , , , , , , , ,394, (623,511.00) 873, ,240, ,113, ,187, ,301, ,788, ,090, Equity Technology World 87,298, ,614, ,462, ,076, , , , , , ,072, , ,421, , , , , ,011, (1,055,268.45) 14,536, (4,539,990.53) 8,941, ,358, ,299, (37,911,721.87) (91,840.97) (2,704,036.34) 89,776, ,072, Equity Telecom World 121,318, ,502, ,403, ,905, ,042, , , , ,057, ,746, ,699, , , , , ,029, ,717, (5,725,979.31) (2,527,829.84) (5,536,630.50) 17,817, ,280, (20,307,124.39) (728,712.21) (8,755,364.36) 129,813, ,057,641.69