Robeco Lux-o-rente. Société d Investissement à Capital Variable Incorporated under Luxembourg law RCS B47 779

Transcription

1 Robeco Lux-o-rente Société d Investissement à Capital Variable Incorporated under Luxembourg law RCS B Annual Report 2013

2 Contents General information 3 Report of the Board of Directors 5 General 5 General introduction 5 Risk management 6 Report on supervisory function 7 Investment results 8 Performance analysis 8 Sustainability Investing 9 Financial statements 11 Statement of net assets 11 Statement of operations and changes in net assets 12 Number of shares outstanding 12 Notes to the financial statements 13 Other data 24 Independent auditor s report 25 Exchange rates 26 Investment portfolio 27 Robeco Lux-o-rente 2

3 General information Robeco Lux-o-rente (hereafter the Company ) Undertaking for collective investment incorporated as a Société d Investissement à Capital Variable (SICAV) under Luxembourg law. Register of Companies RCS Luxembourg B Registered Office Centre Etoile 11/13, Boulevard de la Foire L-1528 Luxembourg Grand Duchy of Luxembourg Board of Directors Edith J. Siermann, Senior Executive Vice President, Robeco Group, Rotterdam, the Netherlands Stefan Gordijn, Senior Vice President, Robeco Group, Rotterdam, the Netherlands D. Rob van Bommel, Executive Vice President, Robeco Group, Rotterdam, The Netherlands Management Company Robeco Luxembourg S.A. 6-12, Place d Armes L-1136 Luxembourg Grand Duchy of Luxembourg Independent Auditor Ernst & Young S.A. 7, Rue Gabriel Lippmann, Parc d Activité Syrdall 2 L-5365 Munsbach Grand Duchy of Luxembourg Depositary, Domiciliary and Paying Agent RBC Investor Services Bank S.A. 14, Porte de France L-4360 Esch-sur-Alzette Grand Duchy of Luxembourg Administration Agent and Registrar Robeco Luxembourg S.A. Delegated to: RBC Investor Services Bank S.A. 14, Porte de France L-4360 Esch-sur-Alzette Grand Duchy of Luxembourg Robeco Lux-o-rente 3

4 Investment Adviser Robeco Luxembourg S.A. Delegated to: Robeco Institutional Asset Management B.V. ( RIAM ) Coolsingel 120, NL-3011 AG Rotterdam The Netherlands Fund Manager Appointed by RIAM: Olaf Penninga Subscriptions and publications No subscription can be accepted on the basis of financial reports such as this report. Subscriptions may only be accepted on the basis of the current prospectus, supplemented by the Company s latest annual report, and in the event that the Company s annual report has been published more than eight months previously, its latest semi-annual report. Financial reports, the prospectus and the Key Investor Information Document are available through the website and may be obtained free of charge at the Company s registered office. Representative and paying agent in Switzerland RobecoSAM A.G., Josefstrasse 218, CH-8005 Zurich, is the Company s appointed representative in Switzerland. Copies of the Key Investor Information Document and prospectus, Articles of incorporation, (semi) annual reports and a list of all purchases and sales in the investment portfolio during the reporting period are available from the above address free of charge. UBS A.G., Bahnhofstrasse 45, CH-8098 Zurich is the Company s paying agent in Switzerland. Information service in Germany Copies of the articles of incorporation, Key Investor Information Document and prospectus and the annual and semiannual reports may be obtained free of charge from the offices of the information service in Germany: Robeco Deutschland, Taunusanlage 17, D Frankfurt am Main. The prices at which shares are issued and repurchased are published in the Stock Exchange Gazette. A list of all purchases and sales in the Company s investment portfolio during the reporting period is available at the paying agent/information service in Germany free of charge. Language versions This report is also published in German. Only the English edition is binding and will be submitted to the general meeting of shareholders. Robeco Lux-o-rente 4

5 Report of the Board of Directors General Website Up-to-date information about the fund s investment policy, performance and investment portfolio can be found on ORIX Corporation acquires shares in Robeco Groep N.V On 19 February 2013, ORIX Corporation (ORIX), Coöperatieve Centrale Raiffeisen-Boerenleenbank BA (Rabobank) and Robeco Groep N.V. (Robeco) announced that Rabobank has sold approximately 90.01% of its shares in Robeco to ORIX. The transaction was finalized at 1 July 2013, once statutory approval has been received. ORIX supports Robeco's strategy for the period , its client services, investment processes and teams, based on the company's longterm commitment to give its clients added value. The sale has no impact on the investment policy of the sub-funds. Deactivation of share classes During the reporting period, the following share classes were deactivated. Deactivation of share classes Share class name Effective Class DH GBP shares 29/04/2013 Changes in management fees Several management fee percentages have been changed. Class of shares Old fee New fee Effective from Class FH EUR shares 0.40% 0.35% 02/04/2013 Class FH CHF shares 0.40% 0.35% 02/04/2013 Class FH USD shares 0.40% 0.35% 02/04/2013 Class GH EUR shares 0.40% 0.35% 02/04/2013 Changes to the prospectus Some changes (effective October 2013) have been made to the Company's prospectus. A letter to shareholders detailing these changes is available at the Company s registered office. General introduction Economy The year 2013 was an unruly one for the global economy, in which a clearer divergence is apparent between developed countries and emerging markets. While the United States, Europe and Japan showed a clear acceleration, emergingmarket growth rates slowed. It was also a year in which Western countries' continued reduction in public- and privatesector debt burden slowed. The eurozone periphery showed the first signs of recovery after the stringent austerity measures and structural reforms imposed by the Troika (ECB, IMF and EC). The key role in the current macroeconomic constellation once again turned out to be played by central banks. Japan's central bank was very assertive in 2013, with its quantitative easing aimed at weakening the yen (apparently successfully). The Fed on the other hand announced the reduction of its unconventional measures. The ECB was given a new mandate as a supranational regulator in the as yet unformed European banking union and unexpectedly cut interest rates in November in an attempt to call a halt to the disinflationary trend in the eurozone. The central banks' continued relaxed monetary policies especially the Fed's translated more starkly in 2013 than in previous years into rising house prices, stock-market prices and increasing industrial activity. Lower energy prices Robeco Lux-o-rente 5

6 provided a tailwind, partly as a result of an oil rush in the US driven by the extraction of shale gas and of oil from tar sands. Favorable inflation numbers also support a strategy of relaxed monetary policy. In the spring of 2013, the recovery in the US became more visible, translating into gradually rising real capital-market rates. However, capital-market rates only started to increased markedly in response to Fed chairman Bernanke's announcement on 22 May that for the first time intimated a start in the reduction in quantitative easing, possibly in autumn In the end though, the actual announcement of tapering took longer than markets had expected on the basis of Bernanke s statement in May. A decision to start tapering in September was postponed unexpectedly, partly due to a worrying political power struggle in Washington over the budget, automatic austerity measures and an increase in the debt ceiling. Republicans and Democrats never managed to reach a compromise on Obamacare, leading in October to a 16-day partial government shutdown. However, the economic fallout of the political incapacity remained limited, eventually leading in December to the Fed's decision to start tapering its monthly bond-buying program in January 2014 from USD 85 billion to USD 75 billion. Rising capital-market rates in the US were not without consequences for emerging markets. The improved growth outlook in developed markets led to strong capital outflows from the more liquid emerging markets towards developed markets. This resulted in emerging-market currencies depreciating strongly versus the dollar. In addition to their susceptibility to capital outflows, it also turned out that the underlying recovery in emerging markets was fragile. Supply-side problems in these economies (inflexible labor market (South Africa), poorly maintained infrastructure (India and Brazil)) and political instability obstructed faster growth. During its annual council, China showed a willingness to implement reforms. Xi Jinping, the president of China elected in 2012, announced measures to combat overinvestment and to guide the transition from an export-driven economy to a more consumption-driven infrastructure. At the same time, Chinese monetary authorities gave off more tightening signals to money markets to combat the excessive credit lending of Chinese banks. The Chinese policy is gradually giving increasing attention to the quality of the economic structure instead of quantity driven growth. Outlook for bond markets Central banks will also put their mark on the bond market over the coming period. In the US, investors are focusing on the reduction in the Fed's bond-buying program. The central bank is trying to stabilize capital-market rates by expressly announcing its intention to keep interest rates low for a long time yet. With the US economic recovery, we think upward pressure on US capital-market rates is unavoidable. But eurozone bonds appear to be better protected. The economic outlook has moderated and there is no sign of price pressure. On the contrary, there is a small risk of deflation. And if the chance of this increases, we expect the ECB to relax its policies even further. Bonds from the eurozone periphery performed well in And these markets will remain attractive for the coming period. Capitalmarket rates in countries like Spain and Italy are still relatively high, the economic deterioration in these countries has been halted, and very importantly the ECB is supporting these markets. Emerging-market bonds had a difficult year and we do not expect any recovery over the short term. Many countries in this universe will be holding elections over the coming year, which can lead to increased political risk. Moreover, some countries have become very dependent on foreign capital. These markets find support from the fact that, over the long term, the growth differential with developed markets persists. The interest premium recently increased, too. For corporate bonds, the outlook remains favorable, although the upwards potential is reduced by the strong performance of recent years. The credit premium has declined to an average level. Demand for corporates will remain high for some time, partly driven by the still relaxed policies of central banks worldwide. Most companies in the investment universe are conservatively funded, have a surplus of cash and are still cautious with investments and acquisitions. But it is notable that the underlying characteristics of businesses are no longer improving. Risk management The fund uses financial instruments, the associated risks of which are specified in the financial statements. Risk management is an integral part of the investment process. The most significant risks such as price risk, credit risk and liquidity risk, are monitored. In addition, an independent risk-management department reporting directly to senior management carries out control checks. Robeco Lux-o-rente 6

7 Financial and operational risks are inherent in asset management. It is therefore very important to have a procedure for controlling these risks embedded in the company's day-to-day operations. The Robeco Group uses a riskmanagement framework (Robeco Control Framework) that guarantees the effective control of all types of risk. Within this framework, risks are periodically identified and assessed as to their significance and materiality. Internal procedures and measures are focused on providing a structure to control both financial and operational risks. The risks, procedures and measures are all actively monitored. Specific attention is paid to the continuity of critical operational processes. To this end, the Robeco Group has taken measures to minimize as far as possible any damage that would result from an interruption of its services. The Business Continuity Management (BCM) process has established a solid crisis organization with an extensive system of BCM policies and guidelines based on ISO (the internationally accepted standard for business continuity) to ensure that critical processes and services are maintained in a crisis. The BCM provisions and plans are tested extensively by performing, among other things, crisis simulations and technical relocation tests. In 2013, the risk-management framework was anchored more securely within the Robeco Group, and measures were taken to strengthen its efficiency by having first-line management perform more risk assessments, and second-line risk management execute testing tasks. Partly as a result of this, internal reporting of risks to the risk committees has been further improved. This makes it possible to respond more rapidly to risk alerts, and helps structure the riskmanagement process further. In the field of market risk, the methodology of applying the principal risk criteria (tracking error and value at risk) has been improved. These risk criteria now have increased predictive value. As a result, the Robeco Group is better able to make an accurate assessment of the relative market risk in the investment portfolio. This adjustment improves the link between relative market risk in portfolio and a client's risk profile. In addition, measures were taken in 2013 to further limit possible losses resulting from a possible bankruptcy of a counterparty: outstanding cash receivables have been distributed over more counterparties, thereby reducing the concentration risks. Moreover, contractual agreements on the exchange of collateral have been made with virtually all parties involved in forward exchange contracts. Report on supervisory function The Supervisory Board of Robeco Groep N.V. has set up a number of committees (Audit & Risk Committee, Investment Committee and Nomination, Remuneration & Corporate Governance Committee). These committees consist mainly of independent supervisory members as specified by the Corporate Governance Code. In the reporting period, the members of the Audit & Risk Committee were: A. Bruggink, A.C. Dorland S.E. Eisma, M. Inoue (from 24 July) G. Izeboud RA (chairman until 28 June), J.J. Nooitgedagt (chairman from 7 November) and D.P.M. Verbeek. They convened six times. The meetings of the Audit & Risk Committee were also attended by the members of the Management Board of Robeco Groep N.V., the heads of department of Group Internal Audit, Group Compliance and Group Risk Management, as well as representatives from Ernst & Young Accountants LLP. Compliance, audit and risk-management matters are discussed by the Audit & Risk Committee. Robeco has its own Principles on Fund Governance', and compliance with these is monitored constantly by the Group Compliance department. These principles largely correspond to the principles of the Dutch Fund and Asset Management Association (DUFAS). In the reporting period, the members of the Investment Committee were: A. Bruggink, A.C. Dorland, M. Inoue (from 24 July), G. Izeboud (until 28 June) Ph. Lambert (chairman) and D.P.M. Verbeek. They convened four times. These meetings were attended by the members of the Management Board of Robeco Groep N.V. and representatives from the investment departments. Topics discussed include the Robeco Group product range, the investment capability/profitability analysis, the investment policy and developments relating to performance. During these discussions, comparisons were also made between the performance and the set performance targets and ratings, such as those of Morningstar. Developments in the financial markets are another fixed item on the agenda. In the reporting period, the members of the Nomination, Remuneration & Corporate Governance Committee were S.E. Eisma (chairman), M. Inoue (from 24 July), Ph. Lambert (until 28 June), P.J.A. van Schijndel (until 1 July) and D.P.M. Robeco Lux-o-rente 7

8 Verbeek. They convened four times. These meetings were also attended by the CEO and the head of the Group Human Resources department. Topics discussed in these meetings include the succession and continuity policies, and the remuneration policy for the members of the Management Board of Robeco Group N.V. and senior management. Investment results Investment results Share classes Price in currency x 1 31/12/2013 Price in currency x 1 31/12/2012 Investment result reporting period in % Investment result 3 Years Average DH EUR EH EUR FH EUR GH EUR IH EUR IEH EUR ZH EUR J.P. Morgan GBI Global (hedged into EUR) DH CHF EH CHF FH CHF IEH CHF J.P. Morgan GBI Global (hedged into CHF) DH GBP J.P. Morgan GBI Global (hedged into GBP) 2, DH USD FH USD J.P. Morgan GBI Global (hedged into USD) Assuming reinvestment of the distributed dividend. See Notes on page Benchmark, see the performance analysis for further explanation. 3 Period 1 January 2013 until 29 April Since inception/until deactivation. Performance analysis Government bond yields rose in 2013, especially in the US but also in Germany. The fund s active duration overlay could not prevent a negative total return for the fund over the reporting period. The active duration positioning of the fund is fully driven by our quantitative model. US 10-year yields rose by almost 1% between early May and late June. The model correctly signaled higher yields in Germany and the US in these months, although it closed the underweight in the US early. This resulted in a strong model performance in the second quarter. However, the active duration overlay underperformed when yields declined globally in February and in Japan also in other months. Towards the end of the year the duration overlay also underperformed as it predicted lower yields in Germany and the US. The duration overlay did not add value over the year as a whole. In the last months of 2012 the fund had anticipated lower yields. Around the turn of the year it switched to underweight duration positions (anticipating higher yields). This switch was made for all of the three main government bond markets in which the fund takes active positions: the US, Germany and Japan. In Germany and Japan the underweight positions were opened in January, in the US in early February. The model uses financial market data to capture expectations on macro-economic variables like growth, inflation and monetary policy. Rising equity markets signaled an improving outlook for economic growth in January. Technical indicators in the model, like the trend in global bond markets and the seasonal indicator also pointed to higher yields. As the model forecasted rising yields in all regions, the fund s duration (interest-rate sensitivity) was reduced to 4.5 year below the benchmark duration. German yields indeed rose in January. Banks repaid the 3-year LTRO loans early, which pushed up money market yields and bond yields. However, the ECB pushed these yields down Robeco Lux-o-rente 8

9 again by stating that it will not allow higher money market yields until it deems monetary tightening to be justified. German and US yields fell more strongly after the Italian elections in late February, which produced a hung parliament. Japanese yields declined gradually in the first months of the year as markets anticipated an increase in bond buying by the Bank of Japan. Japan s new government pushed for more stimulus as part of its Abenomics strategy to beat deflation and economic stagnation. The fund did not benefit fully from this decline in yields due to its underweight positions. In March the fund switched to an overweight position in the US and closed the underweight in Germany. In April it added an overweight position in Germany. The model turned more positive on bonds as declining commodity prices signaled lower inflation pressure and the trend in bond markets turned positive. The valuation factor strongly favored US and German bonds over Japanese bonds as 10-year yields fell to 0.45% in Japan. This contributed to the underweight position in Japan and the overweight positions in the US and Germany. US and German yields did indeed decline. Disappointing US labor market data made the FED more cautious; it even mentioned the possibility of further increasing its monetary stimulus. Japanese yields started to rise after the Bank of Japan finally announced its increased bond buying in April. The fund thus benefited from falling yields in Germany and the US with overweight positions in these markets, while being less exposed to rising yields in Japan. In May the model forecasted rising yields in the US and Germany as well. Stronger equity markets and the negative seasonal indicator, joined later by a turn in the trend indicator, pointed to underweight positions in all markets. The fund s duration was again reduced to 4.5 year below the benchmark duration. Yields rose as US labor market data improved and Bernanke announced the FED s plan to start tapering its asset purchases later in the year. German yields followed the rise of US yields at a more modest pace. Japanese 10-year yields almost doubled from their early-april lows to 0.85% by the end of June. Due to its underweight positions, the fund was less exposed to these increases in yields. The model turned neutral on German bonds and even positive on US bonds in July as valuations improved and the trend became less negative. Low inflation pressure remained positive for bonds and the seasonal indicator became more positive as well. US yields initially rose further as markets expected the FED to start tapering in September, but bonds rallied in September as the FED decided to maintain the pace of its bond buying. In Japan the model remained negative as the valuation factor was very negative for Japanese bonds. However, the Bank of Japan managed to push yields down again in the third quarter, even below the 2012 year-end levels. Overall the model s performance was flat over the third quarter. Late September the model turned more positive on bonds. The underweight in Japan was closed and an overweight in Germany was added next to the overweight in the US. The trend in bond markets became positive after the FED s decision not to taper. The seasonal indicator was positive and lower commodity prices signaled low inflation. EMU inflation surprisingly fell to 0.7% in October and the ECB reacted with a rate cut in November. However, US data improved in the last months of the year and the FED finally decided to start tapering. The model remained positive on US and German government bonds until late December. As yields rose towards year-end the fund was thus impacted more than the benchmark. In December the model turned negative on Japanese bonds and late in the month on German bonds, supported by a more bearish global trend. At the end of December the portfolio duration was 5.5 year versus 7 year for the benchmark, with an overweight position in the US and underweight positions in Germany and Japan. Sustainability Investing The sustainability investing carried out by funds at Robeco is implemented with minimum restrictions to the investment universe, and consists of a combination of effective instruments: exercising voting rights engagement exclusions integrating ESG factors 1 into the investment processes. 1 ESG stands for Environmental, Social and Governance. Robeco Lux-o-rente 9

10 Exercising of voting rights When exercising voting rights, Robeco complies with internationally accepted principles such as those of the International Corporate Governance Network (ICGN). The exercise of voting rights is structured in an efficient manner. Given the nature of the investments, exercising voting rights is not relevant for this Company. Engagement Engagement means making active use of the rights of investors to influence how companies are managed. Robeco enters into active dialogue with companies about corporate social responsibility. In our opinion this will increase shareholder value for our clients in the longer term. We use an integral approach, which combines the expertise of our investment analysts, our sustainability-investing research analysts and our engagement specialists. By using financially material information as the basis for our talks, we strive to ensure that our dialogue introduces added value and improves the risk/return profile of the company's stock. This way we generate value for our clients as well as the company. Exclusions Robeco's exclusion policy is subdivided into two parts. Firstly, it excludes companies that are involved in the production of controversial weapons or essential components for such weapons, or that gain significant revenues from the sale or transport of these weapons. We base our policy of not investing in such companies on a legislative amendment in the Netherlands governing investments in cluster-munition companies effective since 1 January Besides the exclusion policy for companies, Robeco also has an exclusion policy for countries. Robeco considers any country that systematically violates the human rights of its own citizens as controversial. These exclusions apply to country-related investments (such as government bonds). Secondly, an unsuccessful dialogue may in time lead to a company's exclusion from the investment universe. Such a dialogue with a company concerns serious and systematic violations of widely accepted international directives on good corporate governance. Robeco focuses in particular on the United Nations Global Compact. Robeco Group s Management Board has the final authority to exclude companies and countries. Integrating ESG factors into the investment processes With respect to sustainability investing, the investment universe and the type of investments of the fund are such that it is not feasible to implement the ESG factors into the investment processes. Luxembourg, 22 April 2014 The Board of Directors Past performance is no indication of current or future performance. These performance data do not take account of the commissions and costs incurred on the issue and redemption of units. Robeco Lux-o-rente 10

11 Financial statements Statement of net assets In EUR x thousand Notes 31/12/ /12/2012 Investment portfolio at market value 6 1,487,746 2,551,825 Deposits and other cash 4 107,727 85,568 Unrealized gains on open forward exchange transactions 3 23,884 61,930 Unrealized gains on financial futures ,532 Other assets 73, ,773 Total assets 1,693,171 2,999,628 Bank overdrafts 5 11,800 32,110 Unrealized losses on open forward exchange transactions 3 2, Unrealized losses on financial futures 4 6,823 2,600 Other liabilities 53, ,582 Total liabilities 75, ,245 Total net assets 1,617,740 2,726,383 Net asset value class DH EUR share Net asset value class EH EUR share Net asset value class FH EUR share Net asset value class GH EUR share Net asset value class IH EUR share Net asset value class IEH EUR share Net asset value class ZH EUR share Net asset value class DH CHF share Net asset value class EH CHF share Net asset value class FH CHF share Net asset value class IEH CHF share Net asset value class DH GBP share Net asset value class DH USD share Net asset value class FH USD share This class of shares is denominated in Swiss francs (CHF). The reference currency of the Company is the euro (EUR). 2 This class of shares is denominated in British pound (GBP). The reference currency of the Company is the euro (EUR). 3 This class of shares is denominated in US dollars (USD). The reference currency of the Company is the euro (EUR). The accompanying notes set out on pages 13 to 21 inclusive form an integral part of the financial statements set out on page 11 and 12. Robeco Lux-o-rente 11

12 Statement of operations and changes in net assets EUR x thousand Notes 01/01-31/12/ /01-31/12/2012 Net assets at the beginning of the reporting period 2,726,383 2,938,539 Interest on bonds 61,119 86,868 Bank and other interest 4 93 Other income 7 1,093 1,843 Total income 62,208 88,804 Management fee 10 11,199 16,064 Service fee 10 2,019 2,746 Depositary fee Interest on bankoverdrafts Taxes ,131 Other fees and expenses Transaction costs Total expenses 14,397 20,547 Total net income on investments 47,811 68,257 Net realized and changes in unrealized result on investments and other financial instruments 95,952 1,945 Net increase (+)/decrease (-) from operations 48,141 70,202 Distributed dividends 13 13,438 22,035 Subscriptions, redemptions (net) 1,047, ,323 Net assets at the end of the period 1,617,740 2,726,383 The accompanying notes set out on pages 13 to 21 inclusive form an integral part of the financial statements set out on page 11 and 12. Number of shares outstanding Movement in the reporting period 01/01/2013 through 31/12/2013 Class of shares Shares at the beginning of the period Shares subscribed Shares redeemed Shares at the end of the period DH EUR 9,731, ,074 7,542,794 3,007,401 EH EUR 2,936, ,743 2,750, ,943 FH EUR 500 5,427, ,291 5,229,180 GH EUR 500 2,080,227 42,550 2,038,177 IH EUR 2,110, ,682 1,688, ,995 IEH EUR 84, ,968 66, ,433 ZH EUR 5,286,424 44,144 4,030,326 1,300,242 DH CHF 768, , , ,077 EH CHF 49,817 1,876 21,588 30,105 FH CHF 6, ,014 IEH CHF 781, , , ,076 DH GBP 9,737 9,737 DH USD 889, , , ,401 FH USD 6,450 2, ,692 Robeco Lux-o-rente 12

13 Notes to the financial statements 1 General Robeco Lux-o-rente, ( the Company ) was incorporated on 2 June 1994 for an undetermined period of time as an open ended investment company based in Luxembourg, issuing and redeeming its shares on a daily basis at prices based on the respective net asset value. Its Articles of Incorporation were published in the Mémorial, Recueil des Sociétés et Associations, of the Grand Duchy of Luxembourg (the Mémorial ) on 11 July The Articles of Incorporation were last amended on 9 July 2007 and such amendments were published on 21 November 2007 in the Mémorial. Robeco Lux-o-rente is a Société d Investissement à Capital Variable (Investment Company with variable capital) pursuant to the law of 10 August 1915, as amended, on commercial companies and to part I of the law of 17 December 2010 on undertakings for collective investment of the Grand Duchy of Luxembourg. The Board of Directors has the authority to issue different classes of shares in the Company. Details on the characteristics of such share classes offered by the Company will be determined by the Board of Directors. The Directors of the Company may at any time decide upon the issue of class DH, DHHI, FH, FHHI, IH, IHHI, and ZH shares (accumulating) and class BH, CH, EH, GH and IEH shares (distribution). The reference currency of the classes of shares may be the euro (EUR), the US dollar (USD), the Swiss franc (CHF), the Japanese yen (JPY) or the British pound (GBP). Share capital The capital of the Company will automatically be adjusted in case additional shares are issued or outstanding shares are redeemed without special announcements or measure of publicity being necessary in relation thereto. Class BH, CH, DHHI, FH, FHHI and GH shares are available in certain countries, subject to the relevant regulatory approval, through specific distributors, selected by the Board of Directors. Class DH and EH shares are available to all investors. Class ZH shares are only available for institutional investors: who are (in)directly wholly or partly owned by Robeco Groep N.V. ( Members of the Robeco Group ) which consist of Investment fund(s) and/or investment structure(s) which are (co-)managed and/or (sub) advised by Members of the Robeco Group who are institutional clients of Members of the Robeco Group and are as such subject to separate (management, advisory or other) fees payable to such Members of the Robeco Group. The ultimate decision whether an institutional investor qualifies for the ZH class is at the discretion of the Board of Directors of the Company. Class IH, IEH and IHHI shares are available to institutional investors within the meaning of article 174 (2) of the law of 17 December 2010 on collective investment undertakings and may only be subscribed directly with the Registrar. Class IH, IEH and IHHI shares have a minimum subscription amount of EUR 500,000. The Board of Directors can waive this minimum subscription amount at its discretion. Additional subscriptions must be for a minimum of EUR 10,000. The class BH, CH, DHHI, FH, FHHI, GH and IHHI shares had not yet been introduced at the end of the reporting period. The Company, for the account of classes of shares for which the currency of expression is USD or CHF (collectively or individually hedged class(es) ), engages in currency hedging transactions to preserve, to the extent possible, the value of the assets attributable to the Hedged classes. The attention of the investors is drawn to the fact that the Company has several classes of shares which distinguish themselves by, inter alia, their reference currency and that they are exposed to the risk that the net asset value of a class denominated in one currency can move unfavourable vis-à-vis another class denominated in another currency. Sales commissions The maximum sales commission is 3%, except for shares that are only available to institutional Investors for which the maximum sales commission is 0.50%. For class ZH shares, no sales commission is applicable. The percentages represent a percentage of the total subscription amount. This commission rate has to be considered as a maximum rate and the sales agents may decide at their discretion to waive this sales commission in whole or in part. The Company reserves the right to refuse any subscription request at any time. Robeco Lux-o-rente 13

14 Dividend policy The general policy regarding the appropriation of net income and capital gains is as follows: Class DH, IH and ZH shares Income is automatically reinvested and added to the relevant class of shares and will thus contribute to a further increase in value of the total net assets. Class EH, GH and IEH shares After the end of the reporting period, the Company proposes what distribution shall be made from the net proceeds attributable to the relevant class of shares. The annual general meeting of shareholders will determine the dividend payment. The Board of Directors of the Company may decide to distribute interim dividends in accordance with Luxembourg law. General remarks As provided by the 2010 law, the Company may decide to distribute dividends with no other limit than the obligation that any such dividend distribution does not reduce the net asset value of the Company below the legal minimum amount. Similarly, the Company may decide to distribute interim dividends and may decide to pay dividends in shares. If dividends are distributed, payments of cash dividends to registered shareholders are made in the currency of the relevant class to such shareholders at the addresses they have given to the Registrar. Dividend announcements (including names of paying agents) shall be published in the d Wort, and in a leading newspaper circulating in the countries where the Company s shares have been sold as determined by the Board of Directors. Dividends not collected within five years will lapse and accrue for the benefit of the Company in accordance with Luxembourg law. Open-end fund Robeco Lux-o-rente is an open-end investment Company, meaning that, barring exceptional circumstances, Robeco Lux-o-rente issues and purchases its shares on a daily basis at prices at net asset value. The Company reserves the right to refuse any subscription request at any time. Swing pricing Shares are issued and redeemed on the basis of the net asset value per share. However, the actual costs of purchasing or selling assets and investments for a sub-fund may deviate from the latest available prices, as appropriate, in calculating the net asset value per share. This deviation can be caused by duties and charges and spread from buying and selling prices of the underlying investments ( spreads ). These costs have an adverse effect on the value of a subfund and its underlying share classes and are known as dilution. To mitigate the effects of dilution, the Directors may, at their discretion, make a dilution adjustment to the net asset value per share. The Directors will retain the discretion in relation to the circumstances under which to make such a dilution adjustment. At the end of the reporting period, no swing adjustment was made. Pooling and co-management For the purpose of efficient management and to reduce administrative costs, the Board of Directors may decide to comanage some or all of the assets of the Company and other Luxembourg UCIs of the Robeco Group ( co-managed units ). In this case, the assets from different co-managed units will be jointly managed using the technique of pooling. Assets that are co-managed will be referred to using the term pool. Such pools will only be used for the purposes of internal management. They will not constitute distinct legal entities and will not be directly accessible to investors. Each co-managed unit will have its own assets allocated to it. During the reporting period no pooling or co-management took place. Affiliated parties Robeco Lux-o-rente is affiliated to the entities belonging to Robeco Groep N.V. The affiliation with Robeco Groep N.V. is the result of the possibility of having decisive control or a substantial influence on the Company s business policy. Robeco Groep N.V. was a 100% daughter of the Rabobank Group until 1 July At 1 July 2013, ORIX has aquired just over 90% of the shares in Robeco Groep N.V. from Rabobank. The management structure of Robeco Groep N.V., in which significant authority is allocated to its independent supervisory board, is such that nor Rabobank (until 1 July) nor ORIX Corporation (as of 1 July) have any meaningful say in or influence on the Company s business policy. Robeco Groep N.V. pursues an independent investment policy on behalf of its affiliated investment companies, taking into account the interest of the investors involved. Besides services of other market parties, Robeco Lux-o-rente also utilizes the services of one or more of these affiliated entities including transactions relating to securities, treasury, derivatives, securities lending, and subscriptions and redemptions of its own shares, as well as management activities. Transactions are executed at market rates. Robeco Lux-o-rente 14

15 Financial instruments Risks Transactions in financial instruments may lead the Company to be subject to the risks described below or to the Company transferring these risks to another party. General investment risk The value of your investments may fluctuate. Past performance is no guarantee of future results. The net asset value of the Company is affected by developments in the financial markets and may both rise and fall. Shareholders run the risk that their investments may end up being worth less than the amount invested or even worth nothing. General investment risk can be broken down into market risk, concentration risk and currency risk. Bonds or other debt securities involve credit risk to the issuer which may be evidenced by the issuer's credit rating. Securities which are subordinated and/or have a lower credit rating are generally considered to have a higher credit risk and a greater possibility of default than more highly rated securities. In the event that any issuer of bonds or other debt securities experiences financial or economic difficulties, this may affect the value of the relevant securities and any amounts paid on such securities. This may in turn affect the NAV per share. Market risk The net asset value of the Company is sensitive to market movements. In addition, investors should be aware of the possibility that the value of investments may vary as a result of changes in political, economic or market circumstances. No assurance can, therefore, be given that the Sub-fund s investment objective will be achieved. It cannot be guaranteed either that the value of a Share in a Sub-fund will not fall below its value at the time of acquisition. Concentration risk Based on its investment policy, the Company may invest in financial instruments from issuing institutions that (mainly) operate within the same sector or region, or in the same market. If this is the case, the concentration of the investment portfolio of the Company may cause events that have an effect on these issuing institutions to have a greater effect on the Company assets than would occur with a less concentrated investment portfolio. Currency risk All or part of the Company s investments may be invested in currencies other than the euro. As a result, fluctuations in exchange rates may have both a negative and a positive effect on the investment result of the Company. The Company limits the general investment risk by investing in bonds and other marketable debt securities and instruments (which may include certificates of deposit, money-market instruments and commercial papers) of issuers from any member state of the OECD or supranational issuers guaranteed by one or more member states of the OECD and with a minimum rating of A in the Standard & Poor s or other recognized credit rating agencies lists. Counterparty risk A counterparty of the Company may fail to fulfil its obligations towards the Company. This risk is limited as much as possible by taking every possible care in the selection of counter parties. Wherever it is customary in the market, the Company will demand and obtain collateral. Risk of lending financial instruments In the case of financial instrument lending transactions, the Company and its respective sub-funds concerned run the risk that the borrower cannot comply with its obligation to return the financial instruments on the agreed date or furnish the requested collateral. The lending policy of the Company is designed to control these risks as much as possible. The credit worthiness of counterparties in securities-lending transactions is assessed on the basis of how independent rating agencies regard their short-term credit worthiness and on the basis of their net assets. Guarantees given by parent companies are also taken into account. The fund only accepts collateral from OECD countries in the form of: government bonds with a minimum credit rating of BBB ; the bonds of supranational bodies with a minimum credit rating of BBB ; stocks listed on the main indexes of stock markets in OECD countries; and to a limited extent in the form of index trackers; Robeco Lux-o-rente 15

16 stocks issued by financial institutions; cash. As of balance-sheet date, the fund had received collateral ensuing from securities-lending transactions. More information can be found under note 6 on page 20. Liquidity risk The actual buying and selling prices of financial instruments in which the Company invests partly depend upon the liquidity of the financial instruments in question. It is possible that a position taken on behalf of the Company cannot be quickly liquidated in good time and at a reasonable price due to a lack of liquidity in the market in terms of supply and demand. The Company minimizes this risk by mainly investing in financial instruments that are tradable on a daily basis. Euro currency risk All or part of the assets of the Company may be invested in securities denominated in Euro. In the event of any adjustments, including a full break-up, an exit of individual countries or other circumstances that may result in the emergence or re-introduction of national currencies, the Company runs the risks that value of its investments is reduced and/or the liquidity of its investments is (temporarily) reduced, regardless of the measures the Company may seek to reduce this risk. Operational risk The operational risk is the non inherent risk remaining after determining the risks as detailed above (general investment risk, counterparty, liquidity or risk of lending financial instruments). It mainly includes risks resulting from breakdowns in internal procedures, people and systems. Insight into actual risks The report of the Board of Directors, the statement of net assets, the Notes to the financial statements and the Investments portfolio, which include currency classification of the investments, give an insight into the actual risks at the end of the reporting period. Risk management Managing risk is a part of the investment process as a whole and with the help of advanced systems, the risks outlined above are limited, measured and monitored on the basis of fixed risk measures. Policy regarding the use of derivatives Investing implies that positions are taken. As it is possible to use various instruments, including derivative instruments, to construct an identical position, the selection of derivatives is subordinate to the positioning of an investment portfolio. In our published information, attention is given primarily to the overall position, and secondarily to the nature and volume of the financial instruments employed. Derivative instruments The unrealized results of derivative instruments are reported in the statement of net assets and are disclosed by contract. Commitments to derivatives are not included in the statement of net assets. They are, however, explained in the notes. The derivatives instruments listed in the notes are transacted through third party brokers. Those brokers hold collateral described under the note of the instrument involved. The company is exposed to counterparty risk in respect of all amounts including collateral due to it from such brokers. Robeco Lux-o-rente 16

17 2 Summary of significant accounting principles General Unless stated otherwise, the items shown in the financial statements are included at their nominal value and expressed in the reference currency of the Company. The reference currency of the Company is the euro. This annual report covers the period from 1 January 2013 through 31 December Preparation and presentation of financial statements The financial statements are prepared and presented in accordance with Luxembourg generally accepted accounting principles for investment funds. Foreign currencies Transactions in currencies other than the reference currency of the Company are converted into the reference currency at the exchange rates prevailing at the time of the transaction. The market value of the investments, assets and liabilities expressed in currencies other than the reference currency of the Company are converted into the Company s reference currency at the exchange rates prevailing at the end of the reporting period. Any positive or negative exchange differences arising are accounted for in the Statement of operations and changes in net assets under the heading Net realized and changes in unrealized results on investments and other financial instruments. The table on page 26 shows the exchange rates as at 31 December Valuation of investments Transferable securities, money market instruments and/or financial derivative instruments listed on an official stock exchange listing These instruments are valued at their last available price; in the event that there should be several such markets, on the basis of the last available price of the main market for the relevant security or asset. Should the last available market price for a given transferable security money market instruments and/or financial derivative instruments not truly reflect its fair market value, then that transferable security money market instruments and/or financial derivative instruments is valued on the basis of the probable sales price which the Board of Directors deems prudent to assume. Fixed income securities not traded on such markets are generally valued at the last available price or yield equivalents obtained from one or more dealers or pricing services approved by the Board of Directors, or any other price deemed appropriate by the Board of Directors. Transferable securities and/or money market instruments dealt in on another regulated market These instruments are valued on the basis of their last available market price. Should the last available market price for a given transferable security and/or money market instrument not truly reflect its fair market value, then that transferable security and/or money market instrument is valued by the Board of Directors on the basis of the probable sales price which the Board of Directors deems prudent to assume. Transferable securities and/or money market instruments not listed or dealt in on any stock exchange or on any regulated market In the event that any assets are not listed or dealt in on any stock exchange or on any regulated market, or if, with respect to assets listed or dealt in on any stock exchange, or on any regulated market as aforesaid, the above valuation methods are inappropriate or misleading, the Board of Directors may adopt any other appropriate valuation principles for the assets of the Company. Investments of the Company primarily invested in markets which are closed for business at the time the Company is valued are normally valued using the prices at the previous close of business. Market volatility may result in the latest available prices not accurately reflecting the fair value of the Company s investments. This situation could be exploited by investors who are aware of the direction of market movements, and who might deal to exploit the difference between the next published Net Asset Value and the fair value of the Company s investments. By these investors paying less than the fair value for shares on issue, or receiving more than the fair value for shares on redemption, other shareholders may suffer a dilution in the value of their investment. To prevent this, the Company may, during periods of market volatility, adjust the Net Asset Value per Share prior to publication to reflect more accurately the fair value of the Company s investments. Adjustment will be made provided that such change exceeds the threshold as determined by the Board of Directors. If an adjustment is made, it will be applied consistently to all classes of shares. At the end of the reporting period, no such adjustments were made. Robeco Lux-o-rente 17

18 Investment transactions and investment income Securities are recorded at cost, and where applicable on the basis of exchange rates prevailing on the date they are purchased. Results on sales of securities are determined on the basis of the average cost method (for futures first in first out method). Investment transactions are accounted for on the trade date. Interest income is recorded on an accrual basis. Discounts/Premiums on zero coupon bonds are accreted as adjustments to interest income. Interest and capital gains on securities may be subject to withholding or capital gains taxes in certain countries. 3 Open forward exchange transactions Open forward exchange transactions are valued with market practice valuation models using forwards rates based on exchange and interest rates applicable at 31 December The unrealized results of these transactions have been recorded gross in the Statement of net assets under the heading Unrealized gains/losses on open forward exchange transactions and changes in unrealized results are recorded in the Statement of operations and changes in net assets under the heading Net realized and changes in unrealized results on investments and other financial instruments. As at 31 December 2013, collaterals as mentioned in the following table are paid or received. Collateral In Eur x thousand Counterparty Paid/Received 31/12/2013 Barclays bank Received 11,720 Rabobank Received 80 The contracts outstanding as at 31 December 2013 are disclosed in the following table. Open forward exchange transactions Expiration Unrealized Currency Amount Currency Amount Counterparty date Gains/losses Bought bought Sold Sold EUR x 1 Robeco Lux-o-rente EUR 9,204,988 AUD 13,740,000 Deutsche Bank 09/01/ ,133 EUR 16,611,355 CAD 23,965,052 Rabobank Nederland 09/01/ ,913 EUR 15,995,092 DKK 119,267,000 HSBC 09/01/2014 7,606 EUR 63,553,086 GBP 52,582,807 Barclays Bank 09/01/ ,875 EUR 61,824,867 GBP 51,150,000 Deutsche Bank 09/01/ ,663 EUR 207,187,731 JPY 28,952,000,000 Barclays Bank 09/01/2014 7,278,301 EUR 6,000,000 JPY 850,775,400 Barclays Bank 09/01/ ,642 EUR 126,079,484 JPY 17,607,000,000 Deutsche Bank 09/01/2014 4,508,178 EUR 90,845,613 JPY 12,701,188,810 Rabobank Nederland 09/01/2014 3,147,535 EUR 266,970,220 USD 362,274,317 Barclays Bank 09/01/2014 4,060,504 EUR 123,731,109 USD 167,862,902 Deutsche Bank 09/01/2014 1,909,643 EUR 78,311,846 USD 106,281,000 Rabobank Nederland 09/01/2014 1,181,599 23,461,592 Robeco Lux-o-rente D CHF Share CHF 70,654,803 EUR 57,489,669 Rabobank Nederland 09/01/ ,468 EUR 380,000 CHF 465,150 Rabobank Nederland 09/01/ EUR 106,472 CHF 130,000 Rabobank Nederland 09/01/ EUR 147,628 CHF 180,000 Rabobank Nederland 09/01/ ,015 Robeco Lux-o-rente E CHF Share CHF 3,092,272 EUR 2,516,088 Rabobank Nederland 09/01/2014 7,329 7,329 Robeco Lux-o-rente FH CHF Share CHF 600,000 EUR 488,202 Rabobank Nederland 09/01/2014 1,422 1,422 Robeco Lux-o-rente IE CHF Share CHF 78,911,690 EUR 64,208,047 Rabobank Nederland 09/01/ ,038 EUR 440,000 CHF 538,595 Rabobank Nederland 09/01/ ,523 Robeco Lux-o-rente D USD Share EUR 693,167 USD 940,489 Deutsche Bank 09/01/ ,635 EUR 250,235 USD 340,000 Rabobank Nederland 09/01/2014 3,490 EUR 20,817,655 USD 28,630,000 Rabobank Nederland 09/01/ ,301 EUR 263,386 USD 360,000 Rabobank Nederland 09/01/2014 2,127 EUR 87,554 USD 120,000 Rabobank Nederland 09/01/ Total unrealized gains 23,883,902 57,021 Robeco Lux-o-rente 18

19 Open forward exchange transactions Expiration Unrealized Currency Amount Currency Amount Counterparty date Gains/losses Bought bought Sold Sold EUR x 1 Robeco Lux-o-rente EUR 14,146,417 SEK 125,550,000 Rabobank Nederland 09/01/ ,834 JPY 749,000,000 EUR 5,182,390 Barclays Bank 09/01/ ,765 JPY 9,491,776,100 EUR 67,000,000 Deutsche Bank 09/01/2014 1,462,029 JPY 575,700,000 EUR 4,042,599 Rabobank Nederland 09/01/ ,557 USD 14,690,000 EUR 10,682,751 Deutsche Bank 09/01/ ,928 1,600,113 Robeco Lux-o-rente D CHF Share EUR 2,879,196 CHF 3,540,000 Rabobank Nederland 09/01/2014 9,585 EUR 821,780 CHF 1,010,000 Rabobank Nederland 09/01/2014 2,421 EUR 236,299 CHF 290,000 Rabobank Nederland 09/01/ ,359 Robeco Lux-o-rente E CHF Share EUR 65, CHF 80,000 Rabobank Nederland 09/01/ EUR 59, CHF 72,317 Rabobank Nederland 09/01/ Robeco Lux-o-rente IE CHF Share EUR 3,368,459 CHF 4,130,000 Rabobank Nederland 09/01/2014 1,786 1,786 Robeco Lux-o-rente DH USD Share USD 116,984,489 EUR 86,239,947 Rabobank Nederland 09/01/2014 1,341,964 USD 170,000 EUR 123,615 Rabobank Nederland 09/01/ ,342,206 Robeco Lux-o-rente FH USD Share USD 636,000 EUR 468,854 Rabobank Nederland 09/01/2014 7,296 USD 220,000 EUR 161,917 Rabobank Nederland 09/01/2014 2,258 Total unrealized losses 2,966,223 4 Financial futures Regulated futures contracts are valued at their exchange quoted settlement price. Initial margin deposits are made upon entering into futures contracts. All open futures contracts are marked to market with changes in market value recognized as unrealized gains or losses. Variation margin payments are made or received, depending on whether unrealized losses or gains are incurred. When the contract is closed, the Company records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and price at which the Company entered into the contract. The unrealized gains/losses on financial futures are recorded gross in the Statement of net assets under the heading Unrealized gains/losses on financial futures and the changes in unrealized results are recorded in the Statement of operations and changes in net assets under the heading Net realized and changes in unrealized results on investments and other financial instruments. All margin deposits are included in the Statement of net assets under the heading Deposits and other cash and amounted to EUR 15.6 million at the end of the reporting period. The contracts outstanding as at 31 December 2013 are disclosed in the following table. 9,554 Financial futures Purchases/ Quantity Currency Denomination Expiration Commitment Unrealized Sale Month EUR x1 Gains/losses EUR x 1 Sale 127 JPY JPN 10Y BONDS 03/ ,693, ,645 Total unrealized gains 579,645 Sale 153 EUR EURO BUXL 30Y BND 03/ ,669,060 73,440 Sale 593 EUR EURO-BUND FUTURE 03/ ,527, ,600 Sale 322 EUR EURO-SCHATZ FUTURE 03/ ,516,600 17,710 Sale 1,802 EUR EURO-BOBL FUTURE 03/ ,222,860 34,000 Purchase 1,010 USD US LONG BOND FUTURE 03/ ,049,585 1,936,366 Purchase 2,061 USD US 5YR NOTE FUTURE 03/ ,455,722 2,505,462 Purchase 1,699 USD US 2YR NOTE FUTURE 03/ ,026, ,215 Purchase 871 USD US 10YR NOTE FUTURE 03/ ,777,734 1,595,920 Total unrealized losses 6,822,713 Robeco Lux-o-rente 19

20 5 Overdraft The Company has access to an overdraft facility (the "Facility"), established with the Depositary, intended to provide for short-term/temporary financing if necessary, subject to certain restrictions, in connection with abnormal redemption activity. Each portfolio of the Company is limited to borrowing 10% of its respective net assets. Borrowings pursuant to the facility are subject to interest at a mutually agreed upon rate and security by the underlying assets of each portfolio. The number of days to refund in case of a temporary overdraft is set at 30 days. 6 Investment portfolio The investment portfolio is included at the end of this report. 7 Securities lending Robeco Securities Lending B.V. is the lending agent for all Robeco Lux-o-rente s securities lending transactions. Robeco Securities Lending B.V. receives a fee of 30% of the gross income resulting from these securities lending transactions. An independent third party checks periodically whether the agreement with Robeco Securities Lending B.V. is still in line with normal market practices. The income from securities lending for the Company was EUR 1,140 thousand (EUR 1,803 thousand over 2012) and for Robeco Securities Lending B.V. EUR 489 thousand (EUR 773 thousand over 2012). The income from securities lending is included in the Statement of operations and changes in net assets under the heading Other income. At 31 December 2013 the outstanding fully collateralized securities lending agreements with financial institutions involved an amount of EUR 907 million being 61.0% of the investment portfolio at market value. Pending trades at 31 December 2013 amount EUR 39.9 million. The received collateral amounted to EUR 1,013 million. Collateral received in the frame of the lending activity, primarily securities, is held in the name of the fund on an escrow account with external agents. In exceptional cases, the collateral is received in cash, which is not subject to reinvestment. More information on the quality of the collateral received, can be found in the description of the risk of lending financial instruments on page 15. Collateral received As at 31/12/2013 Counterparty In % of the lent position Deutsche Bank 111% CDC IXIS 112% ING Bank NV 110% Commerzbank 112% Nomura 113% Fortis Bank 111% 8 Taxes The classes of shares of the Company are liable in Luxembourg to an annual duty ( taxe d abonnement / subscription tax ) at the rate of 0.05% of their net assets calculated and payable at the end of each quarter. This rate is 0.01% for class IH, IEH, IHHI and ZH shares. To the extent that the assets of the Company are invested in investment funds which are established in Luxembourg, no such tax is payable, provided that the relevant investment funds have been subject to this tax. The Company will receive income from its investments after deduction of applicable withholding taxes in the country of origin. There are no Luxembourg income, withholding, capital gains, estate or inheritance taxes payable by the Company. 9 Management company The Directors of the Company have appointed Robeco Luxembourg S.A. (the Management Company ) as the Management Company of Robeco Lux-o-rente to be responsible on a day-to-day basis, under supervision of the Board of Directors of the Company, for providing administration, marketing and investment management services. The Management Company has delegated its investment management services to Robeco Institutional Asset Management B.V. (the Investment Adviser ). The Management Company has delegated the administration and registrar agent functions to RBC Investor Services Bank S.A. (acting as Administration Agent and Registrar Agent ). The Management Company was incorporated as a Société anonyme under the laws of the Grand Duchy of Luxembourg on 7 July 2005 and its Articles of Association were published in the Mémorial on 26 July The Management Company is approved as Management Company regulated by chapter 15 of the Luxembourg law of 17 December 2010, relating to undertakings for collective investment. The Management Company is part of Robeco Groep N.V. and also acts as Management Company for Robeco Capital Growth Funds, Robeco Interest Plus Funds, Rorento and Robeco All Strategies Funds. Robeco Lux-o-rente 20