Schroder Alternative Solutions Audited Annual Report. Switzerland. 30 September R.C.S Luxembourg B

Transcription

1 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Switzerland R.C.S Luxembourg B

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3 Schroder Alternative Solutions Société d Investissement à Capital Variable (SICAV) Audited Annual Report 30 September 2015 No subscriptions can be received on the basis of financial reports. Subscriptions are valid only if made on the basis of the current Prospectus accompanied by the last available Annual Report or Semi-Annual Report if published thereafter. Annual and Semi-Annual Reports, the current Prospectus, the Key Investor Information Documents and the Articles of Incorporation of the Company are available, free of charge, at the Company s registered office, 5, rue Höhenhof, L-1736 Senningerberg, Grand Duchy of Luxembourg. The Prospectus, the Key Investor Information Documents, the Articles of Association, the list of securities purchased and sold by the Management Company on behalf of the Company as well as the Annual and Semi-Annual Reports of the Company are available free of charge from Schroder Investment Management (Switzerland) AG, Central 2, CH Zurich, the Representative of the Company in Switzerland.

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5 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Page 5 Contents Schroder Alternative Solutions Information for Investors in Switzerland Board of Directors Administration Directors Report Investment Manager s Report Notes to the Financial Statements Fund Performance (Unaudited) Audit Report Statement of Net Assets Statement of Operations Statement of Changes in Net Assets Portfolio of Investments Schroder AS Agriculture Fund Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund Appendix I - Audited TER TER (without transaction fees) Appendix II- AIFM Disclosures (Unaudited) Appendix III Portfolio Turnover Ratios Appendix IV Statement of Changes in the number of shares outstanding for the period from 31/03/2015 to 30/09/

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7 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Schroder Alternative Solutions Page 7 The Company Schroder Alternative Solutions (the Company ) is an open-ended investment company organised as a société anonyme under the laws of the Grand Duchy of Luxembourg. The Company was incorporated on 6 October 2005 and exists for an indefinite period. During the year under review four funds were available for investment within Schroder Alternative Solutions. The details of investment objectives and investment restrictions for the Funds can be found in the Company s current prospectus. The Company constitutes a single legal entity, but the assets of the Funds are invested for the exclusive benefit of the shareholders of the corresponding Funds and are solely accountable for the liabilities, commitments and obligations of the Funds. The Directors may at any time resolve to set up new Funds and/or create within each Fund one or more classes of shares. The Directors may decide to make an application to list the shares on any other recognised stock exchange. This report covers the year from 1 October 2014 up to 30 September The last day on which prices were calculated was 30 September 2015, the last working day of the year under review. The financial statements are prepared in accordance with Luxembourg regulations related to undertakings for collective investment. Hereafter, Schroder Alternative Solutions will be referred to as the Company and the names of the Funds will be preceded by Schroder AS, e.g., Schroder AS Commodity Fund. Corporate Governance The Company is subject to corporate governance based on: 1. Its obligations as defined by Part II of the Luxembourg law of 17 December 2010, as amended, on undertakings for collective investment and the Alternative Investment Fund Managers Directive 2011/61/EU, as implemented in Luxembourg law, which are available for inspection at the registered office of the Company at 5, rue Hohenhof, L-1736 Senningerberg, Grand Duchy of Luxembourg. 2. Its Articles of Incorporation which are available for inspection at the registered office of the Company and at the Luxembourg corporate and trade register, Registre de Commerce et des Sociétés ( RCSL ). 3. The obligations in respect of the management of the Company, for which the Company has appointed Schroder Investment Management (Luxembourg) S.A., which is subject to the requirements of the Management Company Directive 2010/43/EC and the Alternative Investment Fund Managers Directive 2011/61/EU, as implemented in Luxembourg law. 4. The Association of the Luxembourg Fund Industry ( ALFI ) code of conduct, which the Company has voluntarily adopted. Internal Control and Risk Management Systems The Board of Directors is responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of error or fraud in achieving the Company's financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Board of Directors has contracted with the Management Company to put procedures in place to ensure all relevant accounting records are properly maintained and are readily available, including the production of annual and semi-annual reports. The annual and semiannual reports of the Company are required to be approved by the Board of Directors of the Company and filed with the Commission de Surveillance du Secteur Financier ( CSSF ) and, in the case of annual reports, with the Registre de Commerce et des Sociétés ( RCSL ). The annual statutory financial statements are required to be audited by independent auditors who report to the Board of Directors on their findings. The Board meets at least four times a year and ensures that the Company maintains high standards of integrity and control in its operations and that it possesses adequate governance and means of control as law and regulation demand.

8 Page 8 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Information for Investors in Switzerland Representative Agent and Paying agent The Swiss Federal Banking Commission has approved Schroder Investment Management (Switzerland) AG, Zurich, as representative agent of the Company in Switzerland and Schroder & Co Bank AG, Zurich, as paying agent of the Company in Switzerland. The current Prospectus, the Key Investor Information Documents, the Articles of Incorporation, Annual and Semi-Annual Reports, and the list of total purchases and sales, which took place during the year under review may be obtained free of charge at Schroder Investment Management (Switzerland) AG, Central 2, CH-8001 Zurich. Use of the Management Fee by the Company For the purpose of distribution in Switzerland, reimbursements may be paid, out of the management fee levied, to institutional investors who, from a commercial perspective, are holding fund units for third parties. In addition, trailer fees may be paid, out of the management fee levied, to sales agents and partners.

9 Board of Directors Schroder Alternative Solutions Audited Annual Report 30 September 2015 Page 9 Chairman Directors Carlo Trabattoni Head of Pan European Intermediary Distribution and GFIG Schroder Investment Management Limited 31, Gresham Street London EC2V 7QA, United Kingdom Mike Champion Head of Product Development Schroder Investment Management Limited 31, Gresham Street London EC2V 7QA, United Kingdom Marie-Jeanne Chevremont-Lorenzini Independent Director 19, rue de Bitbourg 1273 Luxembourg, Grand Duchy of Luxembourg Jacques Elvinger Avocat Elvinger, Hoss & Prussen 2, place Winston Churchill 2014 Luxembourg, Grand Duchy of Luxembourg Daniel De Fernando Garcia Independent Director Serrano Madrid, Spain Achim Kuessner Country Head Germany, Austria & CEE Schroder Investment Management GmbH Taunustor 1 (Taunus Turm) Frankfurt am Main, Germany Ketil Petersen Country Head Nordic Region Schroders Denmark Filial af Schroder Investment Management ( Luxembourg) S.A. Store Strandstraede Copenhagen K, Denmark Georges-Arnaud Saier ( a ) Independent Director 6, rue Paul Baudry 75008, Paris France Neil Walton Head of UK Institutional Business Development Group Schroder Investment Management Limited 31, Gresham Street London EC2V 7QA, United Kingdom ( a ) Georges-Arnaud Saier changed his address with effect 3 December 2014.

10 Page 10 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Administration Registered Office Alternative Investment Fund Manager, Principal Paying Agent, Domiciliary Agent, Registrar and Transfer Agent Investment Manager Depositary bank and Fund Administrator Auditor Legal Advisers 5, rue Höhenhof, 1736 Senningerberg, Grand Duchy of Luxembourg Schroder Investment Management (Luxembourg) S.A. 5, rue Höhenhof, 1736 Senningerberg, Grand Duchy of Luxembourg Schroder Investment Management Limited 31, Gresham Street, London EC2V 7QA, United Kingdom J.P. Morgan Bank Luxembourg S.A. European Bank & Business Centre, 6, route de Trèves, 2633 Senningerberg, Grand Duchy of Luxembourg PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator, 2182 Luxembourg, Grand Duchy of Luxembourg Elvinger, Hoss & Prussen 2, place Winston Churchill, B.P Luxembourg, Grand Duchy of Luxembourg Simmons & Simmons CityPoint, One Ropemaker Street, London EC2Y 9SS, United Kingdom

11 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Directors Report Page 11 The Directors report contains information in relation to the Company in general and not only funds registered inswitzerland. Introduction The directors of the company submit their report and the audited financial statements for the year ended 30 September Activities during the year On 30 September 2015, the total net assets of the company were USD 1,184,698,326 compared with USD 2,473,392,294 on 30 September 2014, representing a decrease of 52.10%. During the year under review, the following change took place: 1 January 2015 There was a reduction in the transfer agency fee from 40 bps to 30 bps for the following classes: Schroder AS Agriculture Fund A Acc, D Acc and A Dis. Schroder AS Agriculture Fund CHF Hedged A Acc. Schroder AS Agriculture Fund EUR Hedged A Acc. Schroder AS Agriculture Fund GBP Hedged A Acc and A Dis. Schroder AS Agriculture Fund SGD Hedged A Acc. Schroder AS Commodity Fund A Acc, D Acc and A Dis. Schroder AS Commodity Fund CAD Hedged A Acc. Schroder AS Commodity Fund CHF Hedged A Acc. Schroder AS Commodity Fund EUR Hedged A Acc. Schroder AS Commodity Fund GBP Hedged A Acc and A Dis. Schroder AS Commodity Fund SGD Hedged A Acc. The Board of Directors Schroder Alternative Solutions 30 September 2015

12 Page 12 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Investment Manager s Report Overview Central bank activity remained a primary focus for investors over the 12-months. The start of the period saw the US Federal Reserve bring its quantitative easing (QE) programme to an end, leading to heightened speculation as to when the first interest rate hike would take place. By contrast, other developed economies continued to loosen monetary policy. Japan was in particular focus at the end of 2014 as the central bank eased monetary policy and Prime Minister Abe delayed a planned increase in the consumption tax, also calling a snap election which his party won comfortably. In the eurozone, the European Central Bank announced a long-awaited QE programme, buying 60 billion of bonds per month from March 2015 until at least September Falling crude oil prices were an important feature of the period, particularly at the end of 2014 after oil cartel Opec elected not to reduce its output in the face of increasing supply from US producers. In emerging economies, slowing growth in China was a key concern over the period. The Chinese authorities moved to cut interest rates and bank reserve requirement ratios several time over the 12-month period in an effort to boost growth. In August, the Chinese central bank also moved to alter the way it fixes the yuan, although this was not necessarily aimed at boosting exporters. Brazil saw its economic situation deteriorate, resulting in ratings agency Standard & Poor s cutting the country s credit rating to below investment grade in September. UK equity market review and outlook The FTSE All-Share index returned -2.3% 1 over the period with the large cap FTSE 100 weighing on returns due to the heavy weighting of resource firms in the index. These stocks came under significant pressure over the year with weaker demand from China affecting metals prices and hence impacting the mining firms, while the fall in the oil price was a drag on oil & gas firms. By contrast, the midcap FTSE 250 index, which has greater exposure to the domestic UK economy, delivered positive returns for the 12 months. At the All-Share level, the best performing sector was consumer services while the weakest was basic materials. Schroders economists expect the UK recovery to continue, but to moderate in 2016 with the resumption of austerity. Interest rate normalisation will likely begin with the first rate rise in May 2016 after the trough in CPI inflation. The Bank of England is expected to move cautiously with rates at 1.5% by end 2016 and peaking at around 2.5% in Commodity market review and outlook Commodities had a difficult year with the Bloomberg Commodity Index falling 26.0% 2. Brent crude fell from over $94/barrel at the end of September 2014 to around $47.00/barrel one year later 3. The oil price drop triggered mixed views from markets, with some investors fearing that it implied weak levels of global demand and hence weak economic growth, while others concluded that the price fall would be good news for consumers and lead to a pick-up in spending. Among other commodities, corn and wheat registered positive returns for the year, supported by weather-related fears in the early summer. Cyclical commodities such as industrial metals and energy have been particularly hard hit by the China slowdown. However future supply is likely to shrink, providing some support for prices. Energy prices have reached levels where capital discipline is being forced on the oil majors and as a result prices are likely to be higher in future. Regarding agriculture, predictions of the strongest El Niño on record may have a disruptive effect on markets. The Investment Manager Schroder Alternative Solutions 30 September Source: Datastream, total return. 2 Source: Factset 3 Source: FactSet

13 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 Page 13 The Company The Company is an umbrella structured open-ended investment company with limited liability and qualifies as an undertaking for collective investment ( UCI ) regulated by the provisions of Part II of the Luxembourg law of 17 December 2010, as amended, regarding undertaking for collective investment (the 2010 law ). The Company has been established for an undetermined period and may further issue several classes of shares in each sub-fund. The financial statements are prepared in accordance with Luxembourg regulations relating to undertakings for collective investments. Classes of Shares During the year under review, the following classes of shares were available for investment: Fund Schroder AS Agriculture Fund Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund Classes of Shares A, C, D & I Acc share classes A & C Dis share classes A, C & I Acc CHF Hedged share classes A, C & I Acc EUR Hedged share classes A, C & I Acc GBP Hedged share classes A & C Dis GBP Hedged share classes A Acc SGD Hedged share class A, C, D, I & X Acc share classes A, C, I & J Dis share classes A, C & I Acc CAD Hedged share classes A, C & I Acc CHF Hedged share classes A, C & I Acc EUR Hedged share classes A, C & I Acc GBP Hedged share classes A & C Dis GBP Hedged share classes A Acc SGD Hedged share class I Acc JPY Hedged share class A, C, D & I Acc share classes A & C Dis share classes A, C & I Acc CHF Hedged share classes A, C & I Acc EUR Hedged share classes A & C Dis GBP Hedged share classes A, C & I Acc RMB Hedged share classes A Acc PLN Hedged share class A Acc SGD Hedged share class Initial Charges The Management Company and Distributors are entitled to an initial charge, which can be partly or fully waived at the discretion of the Management Company or of the relevant Distributor. The initial charge attributed to each class of share is shown below: Initial Charge A Shares C Shares D Shares I Shares J Shares R Shares X Shares Up to % of the Net Asset Value per share Up to % of the Net Asset Value per share None None None None None Minimum Subscription Amount, Minimum Additional Subscription Amount and Minimum Holding Amount The minimum subscription amount, minimum additional subscription amount and minimum holding amount for each class shown below are stated in the relevant currency although near equivalent amounts in any other freely convertible currency are acceptable. These minima may be waived at the Directors discretion from time to time.

14 Page 14 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Minimum Subscription Amount, Minimum Additional Subscription Amount and Minimum Holding Amount (cont) Share Class Minimum Subscription Amount Minimum Additional Subscription Amount Minimum Holding Amount A Shares USD 10,000 USD 5,000 USD 10,000 C Shares USD 250,000 USD 125,000 USD 250,000 D Shares USD 10,000 USD 5,000 USD 10,000 I Shares USD 5,000,000 USD 2,500,000 USD 5,000,000 J Shares USD 5,000,000 USD 2,500,000 USD 5,000,000 X Shares USD 25,000,000 USD 12,500,000 USD 25,000,000 R Shares none none none Net Asset Value Calculation of Net Asset Value per Share The Net Asset Value per Share of each Class is calculated on each Dealing Day in the currency of the relevant class. It is calculated by dividing the net asset value attributable to each class, being the proportionate value of its assets less its liabilities, by the number of shares of such class then in issue. The resulting sum is rounded to the nearest two decimal places. Further details on rules that apply in valuing total assets can be found in the current prospectus. Valuation of the Assets of the Fund The value of securities, assets (including shares or units in closed-ended undertakings for collective investment) and financial derivative instruments is determined on the basis of the last available price on the stock exchange or any other Regulated Market on which these securities, assets or derivative instruments are traded or admitted for trading. Where such securities, assets or derivative instruments are quoted or dealt in one or by more than one stock exchange or any other Regulated Market, the Directors shall make regulations for the order of priority in which stock exchanges or other Regulated Markets shall be used for the provision of prices of securities, assets or derivative instruments. If a security or derivative instrument is not traded or admitted on any official stock exchange or any Regulated Market, or in the case of securities and derivative instruments so traded or admitted the last available price of which does not reflect their true value, the Directors are required to proceed on the basis of their expected sales price, which shall be valued with prudence and in good faith. Swaps contracts are valued at the market value fixed in good faith by the Directors and according to generally accepted valuation rules. Asset based swap contracts will be valued by reference to the market value of the underlying assets. Cash flow based swap contracts will be valued by reference to the net present value of the underlying future cash flows. Liquid assets and money market instruments held within the liquidity Funds are usually valued on an amortised cost basis. Each share or unit in an open-ended undertaking for collective investment is valued at the last available Net Asset Value (or bid price for dual priced undertakings for collective investment) whether estimated or final, which is computed for such units or shares on the same Dealing Day, failing which, it is the last Net Asset Value (or bid price for dual priced undertakings for collective investment) computed prior to the Dealing Day on which the Net Asset Value of the shares in the Company is determined. The value of any cash in hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued as aforesaid and not yet received are deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof is arrived at after making such discount as the Company may consider appropriate in such case to reflect the true value thereof. Any assets or liabilities in currencies other than the base currency of the Funds are converted using the relevant spot rate quoted by a bank or other responsible financial institution. Exchange Rate The exchange rate used for the calculation of the combined total in USD of the financial Statement as at 30 September 2015 is: 1 US Dollar = British Pound.

15 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Page 15 Realised gains and losses on sales of Investments Realised gains and losses on sales of investments in securities are determined on the average cost basis and include transaction costs. Taxation The Company is not subject to any taxes in Luxembourg on income or capital gains. The only tax to which the Company is subject in Luxembourg is the taxe d abonnement at a rate of up to 0.05% per annum based on the net asset value of each Fund at the end of the relevant quarter, calculated and paid quarterly. In respect of I, J, R and X shares, which comprise only institutional investors, the tax levied is at 0.01% per annum. Changes in the Funds A list, specifying the total purchases and sales for each Fund, which took place during the year under review may be obtained free of charge upon request at the registered office of the Company. Cash Collateral Reinvestment For the purpose of counterparty risk mitigation, Funds with currency hedging transactions related to hedged share classes will pay or receive cash collateral on a daily basis from the counterparty, thus reducing their exposure over the duration of the forward contract. Investment Manager may reinvest the cash collateral received from the counterparty in connection with currency hedging, in line with the investment objectives of the fund. Collateral receivable or payable at the maturity date of the forward contracts are shown in the Statement of Net Assets as Hedged Currency Class Forward Contract Collateral Receivable/Payable. Collateral calls receivable or payable are shown in the Statement of Net Assets as Net Hedged Currency Class Forward Contract Collateral Calls Receivable/Payable. Forward Foreign Exchange Contracts Outstanding forward foreign exchange contracts were valued at the last available price at NAV calculation day by reference to the forward rate of exchange applicable to the maturity of the contracts. The unrealised appreciations/(depreciations) are shown in the Statement of Net Assets under Net unrealised appreciation/(depreciation) on forward foreign exchange contracts. On 30 September 2015, the following funds were committed to forward foreign exchange contracts: Unrealised Appreciation/ Currency Bought Currency Sold Maturity Date (Depreciation) Schroder AS Agriculture Fund Share Class Hedging CHF 28,400 USD 29, Oct EUR 367,700 USD 416, Oct-2015 ( 5,303 ) EUR 124,600 USD 138, Oct EUR 536,400 USD 600, Oct EUR 199,600 USD 220, Dec ,068 EUR 120,000 USD 132, Jan ,727 EUR 9,377,900 USD 10,523, Feb ,028 GBP 5,345,800 USD 8,223, Oct-2015 ( 112,143 ) GBP 133,900 USD 206, Oct-2015 ( 3,561 ) SGD 2,864,400 USD 2,133, Oct-2015 ( 122,058 ) SGD 3,004,700 USD 2,230, Oct-2015 ( 120,870 ) SGD 77,500 USD 54, Dec-2015 ( 291 ) USD 118,036 SGD 166, Oct USD ( 353,020 ) Schroder AS Commodity Fund Share Class Hedging CAD 368,000 USD 276, Oct-2015 ( 1,698 ) CHF 97,870,300 USD 100,086, Oct ,343 EUR 8,253,700 USD 9,304, Oct-2015 ( 63,776 ) EUR 2,595,900 USD 2,891, Oct ,974 EUR 33,788,500 USD 38,201, Nov-2015 ( 355,308 ) EUR 2,170,800 USD 2,450, Nov-2015 ( 18,590 ) EUR 8,392 USD 9, Nov EUR 32,989,208 USD 36,926, Nov ,253 EUR 17,212,800 USD 19,024, Dec ,551 EUR 28,067,100 USD 30,530, Dec ,111 EUR 1,063,100 USD 1,192, Feb

16 Page 16 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Forward Foreign Exchange Contracts (cont) Unrealised Appreciation/ Currency Bought Currency Sold Maturity Date (Depreciation) Schroder AS Commodity Fund (cont) GBP 37,291,400 USD 58,131, Oct-2015 ( 1,549,236 ) GBP 370,000 USD 571, Oct-2015 ( 9,841 ) GBP 13,636,000 USD 21,050, Oct-2015 ( 362,274 ) JPY 813,700 USD 6, Oct-2015 ( 5 ) SGD 158,378 USD 115, Oct-2015 ( 4,338 ) SGD 2,773,200 USD 2,040, Oct-2015 ( 94,117 ) SGD 8,088,600 USD 5,917, Oct-2015 ( 242,061 ) SGD 6,508,670 USD 4,746, Nov-2015 ( 181,261 ) SGD 11,893,161 USD 8,663, Nov-2015 ( 323,460 ) SGD 1,559,100 USD 1,111, Nov-2015 ( 18,870 ) SGD 244,000 USD 170, Dec SGD 346,600 USD 241, Jan USD 9,368,593 EUR 8,253, Oct ,751 USD 2,947,229 EUR 2,595, Oct ,212 USD 35,721,615 EUR 31,577, Nov ,505 USD 2,007,522 GBP 1,311, Oct ,725 USD 112,993 SGD 158, Oct ,789 USD 404,861 SGD 567, Oct ,446 USD ( 1,123,606 ) Schroder AS Gold and Precious Metals Fund Share Class Hedging CHF 1,608,400 USD 1,644, Oct ,100 CNH 110,800 USD 17, Oct CNH 3,800 USD Oct EUR 3,710,500 USD 4,147, Oct ,071 EUR 35,700 USD 40, Oct-2015 ( 106 ) EUR 47,900 USD 53, Oct EUR 63,000 USD 70, Nov-2015 ( 409 ) EUR 101,000 USD 111, Jan ,618 EUR 118,100 USD 131, Jan ,422 GBP 648,700 USD 996, Oct-2015 ( 12,152 ) PLN 9,807,100 USD 2,587, Oct-2015 ( 4,431 ) SGD 1,471,694 USD 1,054, Oct-2015 ( 20,666 ) SGD 6,437,652 USD 4,779, Oct-2015 ( 258,968 ) SGD 4,709,830 USD 3,465, Oct-2015 ( 159,843 ) SGD 5,684,110 USD 4,167, Oct-2015 ( 178,586 ) SGD 5,065,078 USD 3,694, Nov-2015 ( 141,058 ) SGD 1,089,800 USD 777, Nov-2015 ( 14,005 ) SGD 2,351,100 USD 1,672, Nov-2015 ( 24,596 ) USD 44,340 CHF 43, Oct USD 875 CNH 5, Oct-2015 ( 3 ) USD 123,032 EUR 109, Oct USD 26,405 GBP 17, Oct USD 69,709 PLN 263, Oct USD 694,070 SGD 989, Oct-2015 ( 640 ) USD ( 798,624 ) Portfolio Hedging CAD 2,975,000 USD 2,291, Oct-2015 ( 73,442 ) USD 6,922,739 CAD 8,900, Oct , ,618 USD ( 586,006 ) Futures Contracts Futures contracts were valued at the last available price at NAV calculation day. The unrealised appreciation/(depreciation) is shown in the Statement of Net Assets under Net unrealised appreciation/(depreciation) on futures contracts. On 30 September 2015, the following funds held open futures contracts:

17 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Page 17 Futures Contracts (cont) Maturity Date Quantity Contract Currency Long Position Market Price Unrealised Appreciation/ (Depreciation) Schroder AS Agriculture Fund Oct Rapeseed Euro Future EUR 2,465, ( 40,680 ) Oct SGX Technically Specified Rubber 20 Future USD 688, ( 189,187 ) Nov Canola Future (WCE) CAD 3,127, ( 44,033 ) Nov Coffee Robusta Future (10-Tonne) USD 5,576,385 1,563 ( 559,155 ) Nov Lumber Future USD 3,707, ( 465,630 ) Nov Rough Rice Future (CBOT) USD 3,466, ,630 Nov SGX Technically Specified Rubber 20 Future USD 264, ( 8,582 ) Nov Soybean Future USD 3,773, ( 268,636 ) Dec Cocoa Future (ICE) GBP 2,093,190 2, ,017 Dec Coffee 'C' Future USD 2,914, ( 263,702 ) Dec Corn Future USD 14,900, ,089 Dec Cotton No.2 Future USD 4,782, ( 221,182 ) Dec Crude Palm Oil Future MYR 5,067,773 2, ,737 Dec Hard Red Winter Wheat Future (KCB) USD 1,090, ,200 Dec Live Cattle Future USD 3,709, ( 292,042 ) Dec Mill Wheat Euro Future EUR 4,701, ( 436,616 ) Dec Oat Future USD 1,978, ( 320,012 ) Dec SGX Technically Specified Rubber 20 Future USD 266, ( 10,030 ) Dec Soybean Meal Future USD 2,468, ( 9,173 ) Dec Soybean Oil Future USD 1,528, ( 243,467 ) Dec Wheat Future (CBT) USD 10,700, ( 247,350 ) Jan Crude Palm Oil Future MYR 7,752,502 2, ,927 Jan Rapeseed Euro Future EUR 1,811, ,117 Feb Rubber Future JPY 575,597, ( 106,673 ) Feb SUGAR NO.11 (WORLD) Future USD 943, ,515 Feb White Sugar Future (ICE) USD 3,176, ,505 Mar Cocoa Future USD 1,187,336 3,155 ( 51,536 ) Mar Cotton No.2 Future USD 5,273, ( 373,567 ) Mar Mill Wheat Euro Future EUR 1,224, ,878 Mar Soybean Future USD 3,290, ( 339,901 ) Apr Rapeseed Euro Future EUR 613, ,447 Apr SUGAR NO.11 (WORLD) Future USD 2,653, ,797 Jun Lean Hogs Future USD 1,245, ( 26,115 ) USD ( 2,928,410 ) Schroder AS Commodity Fund Oct Brent Crude Future USD 45,786, ( 302,553 ) Oct ,583 Crude Oil Future USD 70,927, ,286 Oct Gasoline RBOB Future USD 8,875, ( 27,276 ) Oct LME LEAD Future USD 5,667,751 1,650.5 ( 674,989 ) Oct LME ZINC Future USD 2,517,000 1,662 ( 522,600 ) Oct Low Sulphur Gas Oil Future (ICE) USD 7,890, ,298 Oct ,670 Natural Gas Future USD 47,566, ( 4,680,624 ) Oct NY Harb ULSD Future USD 6,202, ( 255,851 ) Oct Rapeseed Euro Future EUR 3,947, ( 361,708 ) Oct SGX Technically Specified Rubber 20 Future USD 2,546, ( 427,034 ) Nov ,659 Canola Future (WCE) CAD 16,608, ( 558,469 ) Nov Coffee Robusta Future (10-Tonne) USD 10,336,853 1,563 ( 1,037,002 ) Nov Crude Oil Future USD 43,868, ( 1,273,604 ) Nov Gasoline RBOB Future USD 12,948, ,167 Nov LME COPPER Future USD 10,743,171 5,068 26,329 Nov LME NICKEL Future USD 10,604,592 10, ,588 Nov LME PRI ALUM Future USD 22,020,704 1,561 ( 10,604 ) Nov LME ZINC Future USD 4,944,343 1, ( 219,107 ) Nov Low Sulphur Gas Oil Future (ICE) USD 9,798, ( 348,649 ) Nov NY Harb ULSD Future USD 14,229, ( 94,928 ) Nov SGX Technically Specified Rubber 20 Future USD 1,331, ( 43,110 ) Dec Cocoa Future USD 9,359,844 3, ,866 Dec Coffee 'C' Future USD 17,615, ( 1,622,585 )

18 Page 18 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Futures Contracts (cont) Maturity Date Quantity Contract Currency Long Position Market Price Unrealised Appreciation/ (Depreciation) Schroder AS Commodity Fund (cont) Dec ,701 Corn Future USD 33,694, ( 546,736 ) Dec Crude Palm Oil Future MYR 37,524,298 2,375 1,134,069 Dec Hard Red Winter Wheat Future (KCB) USD 4,831, ,750 Dec Live Cattle Future USD 11,443, ( 870,748 ) Dec LME ZINC Future USD 6,741,875 1, ,006 Dec Mill Wheat Euro Future EUR 7,508, ( 743,029 ) Dec SGX Technically Specified Rubber 20 Future USD 1,336, ( 50,249 ) Dec Silver Future USD 19,743, ( 1,252,060 ) Jan Crude Palm Oil Future MYR 37,415,839 2, ,672 Jan Gasoline RBOB Future USD 12,616, ( 197,690 ) Jan Platinum Future USD 1,268, ( 83,136 ) Jan Rapeseed Euro Future EUR 6,409, ,289 Feb NY Harb ULSD Future USD 14,313, ( 99,569 ) Feb Rubber Future JPY 450,707, ( 81,634 ) Feb SUGAR NO.11 (WORLD) Future USD 5,526, ,731 Feb White Sugar Future (ICE) USD 10,359, ,951 Mar Cocoa Future USD 9,467,269 3,155 ( 412,419 ) Mar Cotton No.2 Future USD 3,695, ( 226,159 ) Mar Mill Wheat Euro Future EUR 3,033, ,604 Apr Rapeseed Euro Future EUR 1,334, ,031 Apr SUGAR NO.11 (WORLD) Future USD 8,054, ,931 Dec Gold 100 OZ Future USD 15,704,614 1,123 ( 768,714 ) Dec LME COPPER Future USD 5,994,200 4, ( 914,044 ) Dec LME PRI ALUM Future USD 6,775,125 1, ( 854,594 ) Nov Natural Gas Future USD 7,402, ( 1,496,018 ) Dec LME COPPER Future USD 12,227,250 4, ( 1,680,344 ) Dec LME PRI ALUM Future USD 6,166,400 1, ( 716,000 ) Nov Crude Oil Future USD 13,386, ( 2,150,700 ) USD ( 19,953,968 ) Schroder AS Gold and Precious Metals Fund Dec Gold 100 OZ Future USD 35,722,057 1,117.4 ( 2,311,797 ) USD ( 2,311,797 ) Directors Fees Each of the following directors received the remuneration shown below for the year under review: Marie-Jeanne Chevremont, Daniel de Fernando Garcia and Georges-Arnaud Saier received EUR 20,000 each. The remaining directors have waived their remuneration. Annual Management Fees The Investment Manager is entitled to receive management fees as remuneration for its services. Such fees are calculated and accrued daily by reference to the Net Asset Value of the Funds and are paid monthly. The actual rates payable as at 30 September 2015, which vary from Fund to Fund and from share class to share class, are set out in the following table. Fund Share Class Management Fee Schroder AS Agriculture Fund Schroder AS Commodity Fund A Shares 1.75% C Shares 1.25% D Shares 1.75% I Shares None A Shares 1.50% C Shares 1.00% D Shares 1.50% I, J & X Shares None

19 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Page 19 Annual Management Fees (cont) Fund Share Class Management Fee Schroder AS Gold and Precious Metals Fund A Shares 1.50% C Shares 1.00% D Shares 1.50% I Shares None Distribution fees Funds Class A, C, I, J, R and X Shares No distribution charge D Shares Distribution charge of 1.00% per annum of the net assets of Funds Performance Fees In accordance with the provisions of the current prospectus, the Investment Manager is entitled to receive performance fees in addition to management fees. The performance fee is 10% of the increase in the Net Asset Value per share over the financial year and is payable annually in October. The performance fee becomes due in the event of outperformance, that is, if the Net Asset Value per Share at the end of the relevant performance period exceeds the High Water Mark, i.e. by reference to the Net Asset Value per Share at the end of any previous performance period (the High Water Mark). In addition if a Shareholder redeems or switches all or part of their Shares before the end of a performance period, any accrued performance fee with respect to such Shares will crystallise on that Dealing Day and will then become payable to the Investment Manager. The High Water Mark is not reset on those Dealing Days at which performance fees crystallise following the redemption or switch of Shares. The Funds in relation to which performance fees were calculated during the year under review and the details of the relevant Investment Managers are set out in the table below. The performance fees payable for the year under review are shown in the Statement of Net Assets. Fund Investment Manager Share Classes Schroder AS Agriculture Fund Schroder Investment Management Limited All share classes except for the I and J classes Schroder AS Commodity Fund Schroder Investment Management Limited All share classes except for the I and J classes Dividends The Directors declared the following dividends during the year under review. Record Date Ex-Dividend Date Payment Date Fund Currency Dividend per Share 25-Feb Feb Mar-2015 Schroder AS Commodity Fund J Distribution USD Aug Aug Sep-2015 Schroder AS Commodity Fund J Distribution USD Information for Residents of the Hong Kong SAR Registration of Portfolios On 30 September 2015, Schroder AS Agriculture Fund, Schroder AS Commodity Fund and Schroder AS Gold and Precious Metals Fund were registered for sale in Hong Kong SAR. Soft Commission Arrangements Pursuant to the requirements of the Hong Kong Securities and Futures Commission regulations, the following statement is made: Soft commission arrangements have been undertaken in respect of the Company. Services which are paid for through or by soft commission were in majority limited to the following areas:

20 Page 20 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Information for Residents of the Hong Kong SAR (cont) Soft Commission Arrangements (cont) a) Research, analysis or price information including computer or other information facilities; b) Portfolio valuations; or c) Performance measurement. Transactions with Connected Persons The Company has entered into agreements and arrangements with Schroder Investment Management Limited and its affiliates, under which a management fee, performance fee, distribution fee and a transfer agency fee are payable. These agreements and arrangements have been entered into in the ordinary course of business and on normal commercial terms. Details on management fees, distribution fees and performance fees are set out in the respective sections above. In addition, the Management Company is entitled to receive the customary charges for its services as administration agent, coordinator, domiciliary agent, global distributor, principal paying agent and registrar and transfer agent. These fees are accrued daily at an annual rate of up to 0.4% by reference to the Net Asset Value of the relevant portfolio and are paid monthly in arrears. Further details on fees payable by the Company can be found in the current prospectus. No transactions of the Company were effected through a broker who is a connected person of the Management Company, the Investment Adviser or the Directors of the Company. Disclosure of Transaction Costs The transaction costs are broker commission fees and taxes related to the purchase and sale of transferable securities. Custodian transaction costs are not included in this table, please refer to the Custodian Fees shown in the Statement of Operations. The transactions costs for the year under review are as follows: Fund Currency Commissions Other expenses Total Schroder AS Agriculture Fund USD Schroder AS Commodity Fund USD 227,893 27, ,713 Schroder AS Gold and Precious Metals Fund USD 96,856 52, ,001 Subsequent Events On 5 October 2015, Schroder AS Asian Long Term Value Fund was launched. Schroder Investment Management (Hong Kong) Limited is the Investment Manager of the fund.

21 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Fund Performance as at 30 September 2015 (Unaudited) Page 21 Sub-Fund/Class * Launch Date 1 Year % 2 Years % 3 Years % Since Launch % Schroder AS Agriculture Fund A Acc 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund D Acc 31 October 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc 27 October 2006 ( ) ( ) ( ) ( 7.44 ) Benchmark: Rogers International Agriculture Index ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Benchmark: Rogers International Agriculture Index (TR) CHF Hedged ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Acc EUR Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc EUR Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc EUR Hedged 27 October 2006 ( ) ( ) ( ) ( ) Benchmark: Rogers International Agriculture Index (TR) EUR Hedged ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Acc GBP Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc GBP Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc GBP Hedged 27 October 2006 ( ) ( ) ( ) ( 9.26 ) Benchmark: Rogers International Agriculture Index (TR) GBP Hedged ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Acc SGD Hedged 15 February 2008 ( ) ( ) ( ) ( ) Benchmark: Rogers International Agriculture Index (TR) SGD Hedged ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Acc 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund D Acc 31 October 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Dis 18 December 2009 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund J Dis 7 March 2008 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund X Acc 26 February 2010 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc CAD Hedged 05 May 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Acc CAD Hedged 05 May 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc CAD Hedged 05 May 2006 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark CAD Hedged ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark CHF Hedged ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Acc EUR Hedged 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc EUR Hedged 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc EUR Hedged 31 October 2005 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark EUR Hedged ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Acc GBP Hedged 09 June 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc GBP Hedged 09 June 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc GBP Hedged 09 June 2006 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark GBP Hedged ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc JPY Hedged 14 May 2010 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark JPY Hedged ( ) ( ) ( ) ( ) * All fund performance data are on a NAV to NAV basis (Bid to Bid), adjusted for dividends, net of expenses and gross of taxes. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested.

22 Page 22 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Fund Performance as at 30 September 2015 (Unaudited) (cont) Sub-Fund/Class * Launch Date 1 Year % 2 Years % 3 Years % Since Launch % Schroder AS Commodity Fund A Acc SGD Hedged 21 September 2007 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark SGD Hedged ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Dis 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Acc 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Dis 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund D Acc 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund I Acc 07 July 2008 ( ) ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc CHF Hedged 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Acc CHF Hedged 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund I Acc CHF Hedged 07 July 2008 ( ) ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs CHF Hedged ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc EUR Hedged 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Acc EUR Hedged 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund I Acc EUR Hedged 07 July 2008 ( ) ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs EUR Hedged ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Dis GBP Hedged 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Dis GBP Hedged 07 July 2008 ( ) ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs GBP Hedged ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc SGD Hedged 29 August 2008 ( ) ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs SGD Hedged ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc RMB Hedged 31 October 2012 ( ) ( ) - ( ) Schroder AS Gold and Precious Metals Fund C Acc RMB Hedged 31 October 2012 ( ) ( ) - ( ) Schroder AS Gold and Precious Metals Fund I Acc RMB Hedged 31 October 2012 ( ) ( ) - ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs RMB Hedged ( ) ( ) - ( ) Schroder AS Gold and Precious Metals Fund A Acc PLN Hedged 03 April 2013 ( ) ( ) ( ) ( ) Benchmark:75% Spot Gold / 25% NYSE Arca Gold Bugs PLN Hedged ( ) ( ) ( ) ( ) * All fund performance data are on a NAV to NAV basis (Bid to Bid), adjusted for dividends, net of expenses and gross of taxes. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested.

23 Audit Report Schroder Alternative Solutions Audited Annual Report 30 September 2015 Page 23 Audit Report To the Shareholders of Schroder Alternative Solutions We have audited the accompanying financial statements of Schroder Alternative Solutions and of each of its subfunds, which comprise the statement of net assets and the portfolio of investments as at 30 September 2015 and the statement of operations and the statement of changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the SICAV for the financial statements The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the SICAV determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the Réviseur d entreprises agréé Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the Réviseur d entreprises agréé, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Réviseur d entreprises agréé considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the SICAV, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of Schroder Alternative Solutions and of each of its subfunds as of 30 September 2015, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other matters Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. PricewaterhouseCoopers, Société coopérative Represented by Luxembourg, 11 January 2016 Valerie Piastrelli PricewaterhouseCoopers, Société coopérative, 2, rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg, Grand Duchy of Luxembourg T: , F: , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) R.C.S. Luxembourg B TVA LU