Global Partners Open-ended investment company under Luxembourg law (SICAV) Annual report including audited financial statements as at 31st March 2015

Transcription

1 Annual report including audited financial statements Global Partners Open-ended investment company under Luxembourg law (SICAV) R.C.S. Luxembourg B

2 No subscription can be received on the basis of this financial report. Subscriptions are only valid if made on the basis of the current issue prospectus and the key investor information document ("KIID") accompanied by the subscription form, the latest annual report and the most recent semi-annual report, if published thereafter.

3 Contents Organisation... 4 General information... 7 Financial climate Report of the réviseur d'entreprises agréé Statement of net assets Statement of operations and other changes in net assets Statistical information Global Partners CSOB US Growth Plus USD Statement of investments and other net assets Global Partners CSOB Energie A Distribuce Statement of investments and other net assets Global Partners CSOB Svetoveho Rustu Plus Statement of investments and other net assets Global Partners CSOB Svetoveho Rustu Plus Statement of investments and other net assets Global Partners CSOB Svetoveho Rustu Plus Statement of investments and other net assets Global Partners CSOB Svetovych Firem Statement of investments and other net assets Global Partners CSOB Evropsky Click Statement of investments and other net assets Global Partners CSOB Variabilniho Rustu Statement of investments and other net assets Global Partners CSOB World Tree Statement of investments and other net assets Global Partners CSOB Svetovy Strom Statement of investments and other net assets Global Partners CSOB World Tree EUR Statement of investments and other net assets Global Partners CSOB Svetovy Strom Statement of investments and other net assets Global Partners KBC Kuponovy Statement of investments and other net assets Global Partners PL KBC Kupon Statement of investments and other net assets Global Partners PL KBC Kupon Statement of investments and other net assets Global Partners PL KBC Kupon Statement of investments and other net assets Global Partners CSOB Duo Coupon Statement of investments and other net assets Global Partners CSOB Fixovany Click Statement of investments and other net assets

4 Contents (continued) Global Partners CSOB Fixovany Click Statement of investments and other net assets Global Partners PS Fixovany Click Statement of investments and other net assets Global Partners CSOB Fixovany Click Statement of investments and other net assets Global Partners CSOB Fixovany Click USD Statement of investments and other net assets Global Partners CSOB Fixovany Click Statement of investments and other net assets Global Partners CSOB Fixovany Click Statement of investments and other net assets Global Partners CSOB Fixovany Click Statement of investments and other net assets Global Partners CSOB Fixovany Click USD Statement of investments and other net assets Global Partners CSOB Fixovany Click Statement of investments and other net assets Global Partners CSOB Fixovany Click Statement of investments and other net assets Global Partners CSOB Fixovany Click EUR Statement of investments and other net assets Global Partners CSOB Fixovany Click Statement of investments and other net assets Global Partners CSOB Fixovany Click Statement of investments and other net assets Global Partners CSOB Fixovany Click Statement of investments and other net assets Global Partners CSOB Fixovany Click USD Statement of investments and other net assets Global Partners CSOB Fixovany Click USD Statement of investments and other net assets Global Partners CSOB Click S Pameti Statement of investments and other net assets Global Partners CSOB Click S Pameti Statement of investments and other net assets Global Partners CSOB Click S Pameti Statement of investments and other net assets Global Partners CSOB Click S Pameti Statement of investments and other net assets Global Partners CSOB Click S Pameti Statement of investments and other net assets Global Partners CSOB Sport Event Winners Statement of investments and other net assets

5 Contents (continued) Global Partners CSOB BRIC Sampioni Statement of investments and other net assets Global Partners CSOB Vitalnich Firem Statement of investments and other net assets Global Partners ČSOB Portfolio Pro Květen Statement of investments and other net assets Global Partners CSOB Portfolio Pro Listopad Statement of investments and other net assets Global Partners CSOB Portfolio Pro Unor Statement of investments and other net assets Global Partners Zabezpieczenia Aktywów 90 Sierpień Statement of investments and other net assets Global Partners PL KBC Point Capped Statement of investments and other net assets Global Partners CSOB Duo Bonus Statement of investments and other net assets Global Partners CSOB Duo Bonus Statement of investments and other net assets Global Partners CSOB Dobyvatele Novych Trhu Statement of investments and other net assets Global Partners CSOB Svetovych Prilezitosti Statement of investments and other net assets Notes to the financial statements

6 Organisation Registered office 11, rue Aldringen L-1118 LUXEMBOURG Board of Directors Chairman Wouter VANDEN EYNDE Director KBC FUNDS 2, avenue du Port B-1080 BRUSSELS Directors Lazlo BELGRADO Karel DE CUYPER Jos LENAERTS Conducting Officer - Head of Specialized Investment Management KBC ASSET MANAGEMENT S.A. 5, place de la Gare L-1616 LUXEMBOURG Conducting Officer KBC ASSET MANAGEMENT S.A. 5, place de la Gare L-1616 LUXEMBOURG Senior Legal Advisor KBC ASSET MANAGEMENT S.A. 5, place de la Gare L-1616 LUXEMBOURG (since 15th April 2014) Management Company KBC ASSET MANAGEMENT S.A. 5, place de la Gare L-1616 LUXEMBOURG Board of Directors of the Management Company Chairman Dirk MAMPAEY President of the Executive Committee KBC ASSET MANAGEMENT S.A. 2, avenue du Port B-1080 BRUSSELS (since 30th April 2014) 4

7 Organisation (continued) Luc GIJSENS Directors Ivo BAUWENS Jürgen VERSCHAEVE Managing Director KBC GROUP S.A. 2, avenue du Port B-1080 BRUSSELS (until 30th April 2014) General Manager KBC GROUP RE S.A. 5, place de la Gare L-1616 LUXEMBOURG Managing Director KBC ASSET MANAGEMENT S.A. 2, avenue du Port B-1080 BRUSSELS (since 15th April 2014) Conducting officers of the Management Company Lazlo BELGRADO (since 15th April 2014) Karel DE CUYPER (until 31st October 2014 and reappointed since 1st February 2015) Wouter VANDEN EYNDE (until 30th April 2014 and reappointed since 1st November 2014 until 31st January 2015) Central Administration KBC ASSET MANAGEMENT S.A. 5, place de la Gare L-1616 LUXEMBOURG Delegated central administration KREDIETRUST LUXEMBOURG S.A. 11, rue Aldringen L-2960 LUXEMBOURG Custodian and principal paying agent KBL EUROPEAN PRIVATE BANKERS S.A. 43, boulevard Royal L-2955 LUXEMBOURG Cabinet de révision agréé DELOITTE Audit Société à responsabilité limitée 560, rue de Neudorf L-2220 LUXEMBOURG 5

8 Organisation (continued) Paying agents in Czech Republic ČESKOSLOVENSKÁ OBCHODNÍ BANKA, A.S. Radlická 333/150 CZ PRAGUE 5 in Poland BANKIEM ZACHODNIM WBK S.A. Rynek 9/11 PL WROCLAW in Slovakia ČESKOSLOVENSKÁ OBCHODNÍ BANKA, A.S. Medená 22 SK BRATISLAVA Legal representatives in Czech Republic ČESKOSLOVENSKÁ OBCHODNÍ BANKA, A.S. Radlická 333/150 CZ PRAGUE 5 in Poland KBC TFI S.A. Chmielna 85/87 PL WARSAW in Slovakia KBC ASSET MANAGEMENT NV, poboèka zahraniènej správcovskej spoloènosti (branch of foreign management company) Medená 22 SK BRATISLAVA 6

9 General information Global Partners (the "SICAV") is an open-ended investment company incorporated on 13th July 2007 under Luxembourg law. It qualifies as an Undertaking for Collective Investment in Transferable Securities under the Council Directive 2009/65/EC, as amended, and is governed by Part I of the amended law of 17th December 2010 relating to Undertakings for Collective Investment. The SICAV s shares are divided up into different categories, each corresponding to a separate pool of assets (the sub-funds). The sub-funds may offer capitalisation shares or distribution shares. At the date of the report only capitalisation shares are issued, except for the sub-funds Global Partners PL KBC Kupon 1 (came to maturity on 29th August 2014), Global Partners PL KBC Kupon 2 (came to maturity on 31st October 2014), Global Partners KBC Kuponovy 4, Global Partners PL KBC Kupon 4, Global Partners PL KBC Kupon 5, Global Partners PL KBC Kupon 6, Global Partners CSOB Duo Coupon 8, Global Partners PL KBC Kuponowy 1 (came to maturity on 31st July 2014), Global Partners PL KBC Kuponowy Plus 1 (came to maturity on 7th July 2014), Global Partners CSOB Duo Bonus 2 and Global Partners CSOB Duo Bonus 3, for which distribution shares are issued. At the date of the report, the SICAV offers the following sub-funds: Sub-funds with a "Best of Maximum Capitalisation" structure - Global Partners CSOB US Growth Plus USD 2 in USD - Global Partners CSOB Energie A Distribuce 4 in CZK - Global Partners CSOB Svetoveho Rustu Plus 25 in CZK - Global Partners CSOB Svetoveho Rustu Plus 26 in CZK - Global Partners CSOB Svetoveho Rustu Plus 27 in CZK - Global Partners CSOB Svetovych Firem 1 in CZK Sub-fund with a "Best of Cap Cliquet" structure - Global Partners CSOB Evropsky Click 1 in CZK Sub-fund with a "Best of Variable Participation" structure - Global Partners CSOB Variabilniho Rustu 3 in CZK Sub-funds with a "Tree" structure - Global Partners CSOB World Tree 13 in CZK - Global Partners CSOB Svetovy Strom 15 in CZK - Global Partners CSOB World Tree EUR 2 in EUR - Global Partners CSOB Svetovy Strom 16 in CZK Sub-funds with a "Fix Upside Coupon" structure - Global Partners KBC Kuponovy 4 in EUR - Global Partners PL KBC Kupon 4 in PLN - Global Partners PL KBC Kupon 5 in PLN - Global Partners PL KBC Kupon 6 in PLN - Global Partners CSOB Duo Coupon 8 in EUR Sub-funds with a "Fix Upside Click" structure - Global Partners CSOB Fixovany Click 12 in CZK - Global Partners CSOB Fixovany Click 13 in CZK - Global Partners PS Fixovany Click 2 in EUR - Global Partners CSOB Fixovany Click 14 in CZK - Global Partners CSOB Fixovany Click USD 1 in USD - Global Partners CSOB Fixovany Click 15 in CZK - Global Partners CSOB Fixovany Click 16 in CZK - Global Partners CSOB Fixovany Click 17 in CZK - Global Partners CSOB Fixovany Click USD 2 in USD - Global Partners CSOB Fixovany Click 18 in CZK - Global Partners CSOB Fixovany Click 19 in CZK - Global Partners CSOB Fixovany Click EUR 1 in EUR - Global Partners CSOB Fixovany Click 20 in CZK - Global Partners CSOB Fixovany Click 21 in CZK - Global Partners CSOB Fixovany Click 22 in CZK 7

10 General information (continued) - Global Partners CSOB Fixovany Click USD 3 in USD - Global Partners CSOB Fixovany Click USD 4 (initial subscription NAV date : 28th November 2014) in USD Sub-funds with a "Fix Upside Memory Click" structure - Global Partners CSOB Click S Pameti 2 in CZK - Global Partners CSOB Click S Pameti 3 in CZK - Global Partners CSOB Click S Pameti 4 in CZK - Global Partners CSOB Click S Pameti 5 in CZK - Global Partners CSOB Click S Pameti 6 in CZK Sub-funds with an "Airbag" structure - Global Partners CSOB Sport Event Winners 1 in CZK - Global Partners CSOB BRIC Sampioni 1 in CZK - Global Partners CSOB Vitalnich Firem 1 in CZK Sub-funds with a "CPPI" structure - Global Partners ČSOB Portfolio Pro Květen 95 in CZK - Global Partners CSOB Portfolio Pro Listopad 95 in CZK - Global Partners CSOB Portfolio Pro Unor 90 in CZK - Global Partners Zabezpieczenia Aktywów 90 Sierpień (initial subscription NAV date : 3rd September 2014) in PLN Sub-fund with a "Point Capped" structure - Global Partners PL KBC Point Capped 4 in PLN Sub-funds with a "Duo Coupon" structure - Global Partners CSOB Duo Bonus 2 in EUR - Global Partners CSOB Duo Bonus 3 in EUR Sub-funds with a "Participation Up- Participation Down" structure - Global Partners CSOB Dobyvatele Novych Trhu 2 in CZK - Global Partners CSOB Svetovych Prilezitosti 3 (initial subscription NAV date : 30th September 2014) in CZK The following sub-funds matured during the period in reference to the report: Sub-funds with a "Best of Maximum Capitalisation" structure - Global Partners KBC Rastovy 6 (terminated on 31st March 2015) - Global Partners Kredyt Bank Polish Winners 1* (terminated on 30th May 2014) - Global Partners PL KBC Kapital 2 (terminated on 29th August 2014) - Global Partners PL KBC Kapital 4 (terminated on 30th September 2014) Sub-fund with a "Best of Cap Cliquet" structure - Global Partners CSOB World Click EUR Plus 5 (terminated on 30th June 2014) Sub-funds with a "Best of Variable Participation" structure - Global Partners CSOB Variable Growth 2 (terminated on 30th January 2015) Sub-fund with a "Tree" structure - Global Partners CSOB World Tree 14 (terminated on 10th September 2014) Sub-funds with a "Fix Upside Coupon" structure - Global Partners PL KBC Kupon 1* (terminated on 29th August 2014) - Global Partners PL KBC Kupon 2* (terminated on 31st October 2014) in EUR in PLN in PLN in PLN in EUR in CZK in CZK in PLN in PLN 8

11 General information (continued) Sub-funds with a "Fix Upside Click" structure - Global Partners CSOB Fixovany Click 2 (terminated on 11th June 2014) - Global Partners CSOB Fixovany Click 5 (terminated on 31st October 2014) Sub-funds with a "Jumpstart" structure - Global Partners KBC Meny 2 (terminated on 30th April 2014) - Global Partners PL KBC Super Dyskontowy 1 (terminated on 30th January 2015) Sub-fund with a "Best Timing" structure - Global Partners PL KBC Start 1 (terminated on 30th June 2014) Sub-fund with a "Digital Reverse Cliquet" structure - Global Partners CSOB Digitalni Reverzni 5 (terminated on 28th November 2014) Sub-fund with a "Fix Upside Memory Click" structure - Global Partners CSOB Click S Pameti 1 (terminated on 28th November 2014) Sub-fund with an "Asian Himalaja" structure - Global Partners PL KBC Himalaja 3 (terminated on 31st July 2014) Sub-fund with an "Index Jumper" structure - Global Partners PL KBC Jumper 1 (terminated on 29th August 2014) Sub-fund with a "Couponator" structure - Global Partners PL KBC Kuponowy 1 (terminated on 31st July 2014) Sub-fund with a "Coupon Driver" structure - Global Partners PL KBC Kuponowy Plus 1 (terminated on 7th July 2014) Sub-fund with an "Escalator" structure - Global Partners Kredyt Bank Escalator 1 (terminated on 29th August 2014) Sub-fund with a "Point Capped" structure - Global Partners PL KBC Point Capped 3 (terminated on 31st July 2014) in CZK in CZK in EUR in PLN in PLN in CZK in CZK in PLN in PLN in PLN in PLN in PLN in PLN * The objective of preserving the initial subscription value at maturity is formally guaranteed to shareholders by KBC Bank S.A.. The latest annual and semi-annual reports, the prospectus, the KIID and the articles of incorporation of the SICAV are available for inspection from the SICAV s registered office as well as at the paying agents in the countries where the distribution of the shares is authorised. 9

12 General information (continued) INVESTMENT OBJECTIVES AND STRATEGY "Best of Maximum Capitalisation" structure The sub-funds have two investment objectives: firstly it seeks to preserve at a pre-defined percentage Maturity of the initial value on subscription and secondly a possible capital gain that is contingent on the possible increase of a basket of shares/indices or an index. A pre-defined percentage of any increase in the value of the basket of shares/indices or an index (= (End Value minus Starting Value) divided by the Starting Value), will be paid out at Maturity in addition to a pre-defined percentage of the initial value on subscription. The minimal capital gain is a pre-defined percentage. The maximal capital gain is capped at a pre-defined percentage (yield to maturity: a pre-defined percentage before charges and taxes). "Best of Cap Cliquet" structure The sub-fund has two investment objectives: firstly it seeks to preserve at maturity 100% of the Initial Subscription Value and secondly the best of a fixed gain of a pre-defined percentage at maturity or a possible surplus value depending on the evolution of the basket (of shares or indices) for each Reference Period, via a "Cap Cliquet" structure as defined hereafter. The eventual increase of the basket (shares or indices) for each Reference Period (= (End Value Period minus Starting Value Period) divided by Starting Value Period) is paid out at maturity with a maximum of a pre-defined percentage per Reference Period. The eventual decrease of the basket of (shares or indices) per Reference Period (= (End Value Period minus Starting Value Period) divided by Starting Value Period) is taken into account at maturity with a maximum decrease of a pre-defined percentage. The sum of the evolutions (increases and/or decreases) of the basket of indices per Reference Period is paid out at maturity on top of 100% of the Initial Subscription Value. "Best of Variable Participation" structure The sub-fund has two investment objectives: firstly it seeks to preserve at Maturity 100% of the initial value on subscription and secondly the best of a fixed capital gain of a pre-defined percentage at Maturity (a pre-defined percentage internal rate of return, before charges and taxes) and a possible capital gain that is contingent on the possible increase of a basket (of shares or indices), via a "Variable Participation" structure as defined hereafter. At Maturity the capital gain equals to the greater of the fixed gain of a pre-defined percentage and the sum of two returns: Return 1: a pre-defined percentage of any increase in the value of the basket (= (End Value minus Starting Value) divided by the Starting Value), up to the Barrier Level of a pre-defined percentage Return 2: a pre-defined percentage of any increase in the value of the basket above the Barrier Level (= (End Value minus (sum of Starting Value and Barrier Level) divided by the Starting Value). The capital gain will be paid out at Maturity in addition to 100% of the initial value on subscription. "Tree" structure The sub-funds have two investment objectives: firstly it seeks to preserve at maturity 100% of the initial value on subscription and secondly a capital gain that is contingent on the individual performance of a basket of shares, via a "Tree" structure as defined hereafter. This capital gain will be paid out at maturity in addition to 100% of the initial value on subscription and depends on the capital gain for the First Reference Period and whether Scenario 1 or 2 occurs in each subsequent Reference Period. The capital gain for the first Reference Period is fixed and equal to a pre-defined percentage. Scenario 1: During the Reference Period, the Value of none of the shares in the basket is ever below the Barrier on any of the Observation Dates of the Reference Period. In this case, a capital gain will accrue to the sub-fund and be paid to the investor at Maturity that is equal to the capital gain realised during the previous Reference Period, multiplied by the Multiplier. Scenario 2: During the Reference Period, the Value of at least one of the shares in the basket is below the Barrier on at least one of the Observation Dates of the Reference Period. In this case, a capital gain will accrue to the sub-fund and be paid to the investor at Maturity that is equal to the capital gain realised during the previous Reference Period, divided by the Divisor. At the outset, the basket contains different shares. Each time Scenario 2 occurs during a Reference Period, the 10

13 General information (continued) Worst Performing Share at the end of the Reference Period will be removed from the basket at the end of the Reference Period. "Fix Upside Coupon" structure The sub-funds have two investment objectives: firstly it seeks to preserve at Maturity 100% of the initial value on subscription and secondly, after approval of the general meeting of shareholders, a dividend payment per reference period. The dividend payment for the first reference period is fixed and equal to a pre-defined percentage. For the next reference periods, starting from reference period 2, a variable dividend is determined dependent on the possible increase of a basket (of shares and indices), calculated via a "Fix Upside Coupon" structure as defined hereafter. The possible increase of the basket (of shares or indices) per reference period (= (End Value Reference Period basket minus Starting Value Basket) divided by the Starting Value Basket) is determined for each reference period and will be paid out for 100% as a dividend, taken into account the calculation method as described under "End Value Reference Period of a share/indice" in determining the End Value of the shares. Possible decreases of the basket are not taken into account. The minimum dividend of each Reference Period is a pre-defined percentage. "Fix Upside Click" structure The sub-funds have two investment objectives: firstly it seeks to preserve at Maturity 100% of the initial value on subscription and secondly the sum of the clicks per Reference Period that will be paid out at Maturity. The click for the first Reference Period is fixed and equal to a pre-defined percentage. For the next Reference Periods, starting from Reference Period 2, a variable click is determined dependent on the possible increase of a basket (of shares or indices), calculated via a "Fix Upside Click" structure as defined hereafter. The possible increase of the basket (of shares or indices) per Reference Period (= (End Value Reference Period basket minus Starting Value Basket) divided by the Starting Value Basket) is determined for each Reference Period and the sum of the clicks will be paid out for 100% at Maturity, taken into account the calculation method as described under "End Value Reference Period of a share" in determining the End Value of the shares. Possible decreases of the basket are not taken into account. The minimum click of each Reference Period is a pre-defined percentage. "Jumpstart" structure The sub-funds had two investment objectives: firstly it seeks to preserve at Maturity 100% of the initial value on subscription and secondly a possible capital gain that is contingent on the possible increase of a Relevant Basket of exchange rates as defined hereafter. If at Maturity the value of the basket has not decreased (End Value >= Starting Value), the greater of a pre-defined percentage and 100% of any increase in the value of the basket of 4 exchange rates (= (End Value minus Starting Value) divided by the Starting Value), will be paid out at Maturity in addition to 100% of the initial value on subscription. If at Maturity value of the basket has decreased (End Value < Starting Value) 100% of the initial value on subscription will be paid out. "Best Timing" structure The sub-fund had two investment objectives: firstly it seeks to preserve at Maturity 100% of the initial value on subscription and secondly a possible capital gain that is contingent on the possible increase of a basket of 30 quality shares (as defined below), calculated via a 'Best Timing' structure as defined hereafter. The structure Best Timing implies 70% of any increase in the value of the basket (= (End Value minus Minimal Starting Value) divided by Starting Value), is paid out at Maturity in addition to 100% of the initial value on subscription. The maximal capital gain is 40% (yield to maturity: 17.60% before charges and taxes). The Minimal Starting Value is the lowest value of the Starting Value and the Values of the basket on the Initial Observation Dates as defined below. The Minimal Starting Value can only be equal to or lower than the Starting Value. "Digital Reverse Cliquet" structure The sub-fund had two investment objectives: firstly it seeks to preserve at Maturity 100% of the Initial Subscription Value and secondly a possible capital gain that is contingent on the possible increase of the index or a basket of shares/indices per Reference Period by means of a "Digital Reverse Cliquet" 11

14 General information (continued) structure. The "Digital Reverse Cliquet" is structured in such a way that, if - for every predetermined Reference Period - the relevant value of the relevant index is higher at the end of the period (end value) compared to its value at the start of the period (starting value), a capital gain of a pre-defined percentage (yield to maturity of a pre-defined percentage) will be acquired at Maturity. However, if -for every predetermined Reference Period- the relevant value of the relevant index is lower at the end of the period (end value) compared to its value at the start of the period (starting value), a pre-defined percentage will be deducted from the capital gain. At Maturity, therefore, a pre-defined percentage x multiplied by the number of Reference Periods during which the relevant value of the index or the basket of shares/indices declined will be deducted from the maximum capital gain to arrive at the actual return accruing to the investor. If the final result is negative, it will be raised to zero. "Asian Himalaja" structure The sub-fund had two investment objectives: firstly it seeks to preserve at Maturity 100% of the initial value on subscription and secondly a possible capital gain (a pre-defined percentage of the increase) that is contingent on the performance of the relevant Underlying Instruments in each Reference Period calculated via an "Asian Himalaja" structure as defined hereafter. The capital gain cannot be negative. The "Asian Himalaja" structure entails that the possible capital gain at Maturity is equal to 100% multiplied by the arithmetic mean of the performances of the "Best Performing Underlying Instrument per Reference Period" as defined hereafter. The Underlying Instrument with the highest percentage change in the relevant Reference Period (= (End Value Reference Period minus Starting Value) divided by Starting Value). This Underlying Instrument is removed from the Basket and will not be used in order to determine the Best Performing Underlying Instrument in the following Reference Periods. "Index Jumper" structure The sub-fund sought a possible capital gain that is contingent on the evolution of the WIG20-index calculated via the "Index Jumper" structure (as defined hereafter). The "Index Jumper" structure entails an early termination when one of the Observation Values is not lower than 100% of the Starting Value. In the case of such an early termination the surplus value, paid on top of the initial value on subscription, corresponds to 14% multiplied with the number of the Observation Value which causes the early termination. In total, there are 2 Observation Values. If the structure has not been early terminated on one of the Early Termination Days then there are 3 possibilities at Maturity: Scenario 1: If the End Value of the index is not lower than 100% of the Starting Value, the payment at Maturity equals 100% of the initial value on subscription and, additionally, a fixed capital gain of 3*14% (yield to maturity = 11.90% before charges and taxes). Scenario 2: If the End Value of the index is lower than 100% of the Starting Value but not lower than 70% of the Starting Value, the payment at Maturity equals 100% of the initial value on subscription. Scenario 3: If the End Value of the index is lower than 70% of the Starting Value, the payment at Maturity equals to the initial value on subscription diminished by 100% of the actual decrease of the index ((End Value minus Starting Value) divided by Starting Value). In such a scenario, the payment at Maturity will be lower than the initial value on subscription. If the early termination condition is fulfilled, the Board of Directors of the SICAV will decide to close the compartment on the Early Termination Day. "Couponator" structure The sub-fund sought a possible capital gain that is contingent on the evolution of the WIG20-index calculated via the "Couponator" structure (as defined hereafter). The "Couponator" structure entails a variable coupon dependent on the Observation Value of the WIG20-index in relation to its Starting Value. If at any Observation Date the Observation Value of the WIG20-index is not lower than AA% of the Starting Value, the coupon equals BB%. Otherwise the coupon equals CC%. In total, there are two Observation Values. The coupon calculated on each Observation Date will be payable on the last 12

15 General information (continued) Luxembourg Banking Business Day of the month following the Observation Date. At Maturity there are two possible scenarios: Scenario 1: If the End Value of the Index is not lower than AA% of the Starting Value, the payment at Maturity equals 100% of the initial value on subscription and, additionally, a coupon of BB% (yield to maturity = FF% before charges and taxes). Scenario 2: If the End Value of the Index is lower than AA% of the Starting Value, the payment at Maturity equals the initial value on subscription plus a coupon of CC% (yield to maturity = HH% before charges and taxes) diminished by II% of the actual decrease of the WIG20-index ((End Value minus Starting Value) divided by Starting Value). In such a scenario, the payment at Maturity might be lower than the initial value on subscription. "Fix Upside Memory Click" structure The sub-funds have two investment objectives: firstly it seeks to preserve at Maturity 100% of the initial value on subscription and secondly the sum of the clicks per Reference Period that will be paid out at Maturity. The click for the first Reference Period is fixed and equal to a pre-defined percentage. For the next Reference Periods, starting from Reference Period 2, a variable click is determined dependent on the possible increase of a basket of shares/indices or an index as defined hereafter, calculated via a "Fix Upside Memory Click" structure as defined hereafter. The possible increase of the basket of shares/indices or an index per Reference Period (= (End Value Reference Period minus Starting Value) divided by the Starting Value) is determined for each Reference Period and the sum of the clicks will be paid out for 100% at Maturity, taken into account the calculation method as described under "End Value Reference Period of a share" in determining the End Value of the shares. Possible decreases of the basket are not taken into account. The minimum click of the second Reference Period amounts to a pre-defined percentage. Starting from Reference Period 3, the minimum click is equal to the click of the previous Reference Period. "Coupon Driver" structure The sub-fund had two investment objectives: firstly it seeks to preserve at Maturity 100% of the initial value on subscription and secondly, after approval of the general meeting of shareholders, a dividend payment per Reference Period. The performance of the basket of shares per Reference Period ((End Value Reference Period Basket minus Starting Value Basket) divided by the Starting Value Basket) is determined for each Reference Period and will be paid out for 100% as a dividend, based on the calculation method as described under End Value Reference Period of a Share which is used to determine the End Value Reference Period Basket. Possible decreases of the basket are not taken into account. The minimum dividend for each Reference Period is XX%. The dividend for each Reference Period will be payable on the last Luxembourg Banking Business Day of the month following the end of the Reference Period. "Escalator" structure The sub-fund had two investment objectives: firstly it seeks to preserve at Maturity 100% of the initial value on subscription and secondly a possible capital gain that is contingent on the possible increase of a basket of 30 quality shares of companies that are characterised by a high market capitalisation and a low price/earnings ratio, calculated via an "Escalator" structure as defined hereafter. For the calculation of the possible capital gain at Maturity, the "Escalator" structure takes the basket value into account on each Averaging Date. From these basket values an average is calculated but only considering those basket values that exceed all preceding basket values, resulting in the Final Value. The basket value on the first Averaging Date is surely included. The basket value on following Averaging Dates is only included if such basket value exceeds the basket value on all preceding Averaging Dates. At Maturity the investor receives XX% of the evolution of the Final Value referenced to the Starting Value of the basket (=(Final Value minus Starting Value) divided by Starting Value). 13

16 General information (continued) "Airbag" structure The sub-funds seek at Maturity a possible capital gain that is contingent on the possible increase of a basket of 20 shares of companies that realize a part of their sales in the BRIC countries (Brazil, Russia, India, China) and that could benefit from the BRIC countries' expected economic expansion. The possible surplus value or capital loss at Maturity is calculated via an "Airbag" structure as defined hereafter: If the value of the Basket has not decreased (End Value >= Starting Value), XX% of the possible increase of the Basket (=(End Value minus Starting Value) divided by the Starting Value), will be paid out at Maturity, in addition to 100% of the initial subscription price. The maximal capital gain will be capped at YY% (yield to maturity: ZZ% before charges and taxes). If the value of the Basket has decreased (End Value < Starting Value), there are 2 possibilities: Scenario 1: If the End Value is not lower than AA% of the Starting Value, the payment at Maturity equals the initial subscription price. Scenario 2: If the End Value is lower than AA% of the Starting Value, the payment at Maturity equals the initial subscription price, diminished by the actual decrease of the Basket (=(End Value minus Starting Value) divided by the Starting Value). Subsequently, this decrease is reduced with BB% of the Starting Value. In such a scenario, the payment at Maturity will be lower than the initial subscription price. "CPPI" structure The sub-fund's main objective is to provide shareholders the highest performance possible by direct or indirect investments in transferable securities. This performance is achieved by the realization of capital gains and cash income. The sub-fund also sets the objective of imposing a floor on net asset value at every anniversary of the sub-fund, which is the last calendar day of April or, if this date is not a common Banking Business Day in Luxembourg and Belgium (hereafter Common Valuation Day ), the preceding Common Valuation Day. "Point Capped" structure The sub-fund has two investment objectives: firstly it seeks to preserve at Maturity 100% of the initial value on subscription and secondly a possible capital gain that is contingent on the possible increase of a basket of shares or indices. At Maturity the investor receives XX% of the evolution in the value of the basket ((End Value of the basket minus Starting Value of the basket) divided by the Starting Value of the basket) where the increase in the Value of each share/indice will count for a maximum of YY% (yield to maturity: ZZ%, before charges and taxes). "Duo Coupon" structure The sub-funds have two investment objectives: firstly it seeks to repay per share the initial subscription price of 20 EUR where the first half of the initial subscription value will be repaid on the Interim Maturity Date and the second on the Final Maturity Date. Secondly it seeks to preserve a possible capital gain that is contingent on the possible increase of a basket of shares or indices. At Maturity: reimbursement of the second half of the 20 EUR initial subscription value and a payment equal to the sum of the variable clicks which are determined each period as follows: Per period (starting from period 2): a variable click is computed on one-half of the 20 EUR initial subscription value this being a function of the possible increase in value of a basket of 30 quality stocks, that have a large market capitalisation. The variable click per period equals the possible increase in value of this basket of shares by period as against the basket's Initial Value (calculated using the formula: (basket's Final Value Reference Period minus the basket's Initial Value) divided by the basket's Initial Value) with the understanding that to determine the Final Value of the shares for the period, the computation method described under 'Final Value Reference Period of a Share' must be used. 14

17 General information (continued) "Participation Up- Participation Down" structure The sub-funds have two investment objectives: firstly it seeks to pay back at Maturity 95% of the initial value on subscription and secondly a possible capital gain that is contingent on the possible increase of a basket of 30 quality shares of companies that are characterised by a high market capitalisation or where the shares are shares of companies which realize a part of their turnover by consumers in emerging countries (as defined below). 80% of any increase in the value of the basket of 30 shares (=(End Value minus Starting Value) divided by the Starting Value), will be paid out at Maturity in addition to 100% of the initial value on subscription. The maximal capital gain is capped at 80% (yield to maturity: 10.92% before charges and taxes.) 100% of any decrease in the value of the basket will be taken into account with a maximum loss of 5% (yield to maturity: -0.91% before charges and taxes). 15

18 Financial climate General investment climate 1st April st March 2015 During the period under review, confidence in the permanence of the economic recovery worldwide began to grow. The Fed and the Bank of England managed successfully to pull the liquidity plug on the US and British economies. The labour market picked up. Japan broke out of its negative deflationary spiral. Even in the euro area the economic skies appear to be clearing. The stock markets responded warmly to the economic optimism. The bond markets were mesmerised by the prospect of the European Central bank (ECB) following the US example and starting to purchase government paper on a large scale. That prospect became a reality in January Shaking off the sense of crisis Economic growth in 2014 was more than satisfactory. Global GDP climbed by around 3% in real terms. That is comparable with the growth rate in However, the regional differences are (very) wide. Overall, the emerging markets recorded slightly slower growth. Growth accelerated in the West, thanks to the US, but the euro area fell behind. The US economy is in its seventh year of expansion. During the course of 2014, sentiment changed from economic scepticism to optimism. The driver for this was the recovery of the labour market. Jobs growth is accelerating; employment is growing on average by new jobs a month. This trend alone is enough to boost the purchasing power of US consumers by an annual 2.4%. This in turn ensures that the basis for the economic recovery is more solid than in previous years. The unemployment rate fell further to 5.8% in March This fall was accompanied by ever stronger signals of a squeeze in some segments of the labour market. Terms such as 'boom' and 'Goldilocks' are coming into favour to describe this phase of the cycle. The recovery of the housing market remains vulnerable, however. Although house prices are rising, and relatively strongly at that, sales of new homes remain sluggish. This is in sharp contrast to the euro area, where the economy has been stuck in the doldrums for a long time and has only begun showing signs of improvement very recently. The cautious recovery in 2013 was interrupted in The sanctions by and against Russia did nothing for business confidence, especially in Germany. The tide did not turn until late in The IFO barometer of business confidence in Germany began climbing again in November, while consumer confidence and retail sales have started rising throughout the euro area since December. It will be clear that the benefits of a weak euro and the low oil prices are at last percolating through to the real economy. In January, 'Abenomics' (the large-scale monetary and fiscal stimulus programme pursued by the Abe government since 2013), however, finally started to pay off. The depreciation of the yen had already been boosting the exports and profitability of large companies for some time. Domestic demand continued to lag behind and the 5-percentage-point increase in VAT in April 2014 proved a difficult pill to swallow. It was not until early 2015 that things also took a turn for the better on that front. Falling stars and delivered promises The euphoria surrounding the BRIC countries (Brazil, Russia, India and China) is making way for concerns about the Fragile Five (Brazil, India, Indonesia, Turkey and South Africa). The Russian economy is creaking under the sanctions, capital flight, the depreciation of the rouble and the fall in oil prices. An oil price of 105 USD is thought to be the minimum needed to keep the country afloat. That now appears to be a distant dream. Mexico is pulling itself up on the coat-tails of the economic strength of its northern neighbour, the US. Advantage is being taken of the favourable economic climate to push through far-reaching reforms, even in the heavily protected energy sector. Venezuela and Argentina have been struggling with recession some time. The period of double-digit growth in China now appears to be over, but the government continues to manage the economy in such a way as to hold growth at around the 7% level. Chinese policy is based around quality and sustainable growth rather than a high growth figure 16

19 Financial climate (continued) as such. It has opted for selective measures to support growth (a relaxation of bank lending, investments in cheap housing for the average Chinese and in railways, and support for smaller businesses). Growth of at least 6% is needed in order to push down unemployment and present social unrest. We saw this, for example, in the moves to control the exchange rate (weakening in the period February-March and beyond, after the broadening of the exchange rate bandwidth from ±1% to ±2% on 8th December) and interest rates (cut on 21st November 2014 and on 28th February 2015). The euro crisis is easing, but the spectre of a 'Grexit' is rearing its head again The euro crisis reached its peak in the summer of 2012, when Greece was not only in financial and economic turmoil, but had also landed in a political vacuum. The crisis resulted in the bankruptcy of Greece and Cyprus. Portugal and Ireland lost the confidence of international bond investors and were obliged to turn for support to the IMF, the ECB and the partner countries in the euro area. As these storms raged, several of the currency union s rules were reformed. But once the sense of urgency had subsided, it proved almost impossible to get all the members of the euro orchestra playing the same tune. The ECB was in fact focused only on defending the euro. It regarded it as essential to unblock the monetary transmission channel. Hence the various programmes to provide the banking sector with extremely cheap liquidity (during the previous reporting period under the acronym TLTRO) and the new system of stricter and uniform banking supervision. The latter came into operation on 4 November 2014, having been preceded earlier in the year by a comprehensive health check of the credit portfolios of 130 European banks. When the ECB gave an assurance in September 2012 with much bravura that it was if necessary prepared to pump liquidity into the market indefinitely, confidence in government bonds recovered. Interest rate spreads between the EMU partners began to narrow, even without the need for specific action. During the course of 2014, Ireland and Portugal were able to begin raising finance via the traditional channels once again, without the need for their European stewardship. Greece initially also had these ambitions, but it became clear as the year progressed that it would not be possible to cancel the support programme at the end of 2014, as intended, but that it would have to be extended and even replaced by a new programme. The new Greek government, elected on a Eurosceptical ticket, attempted to force the troika to agree a much milder reform policy, However, its efforts fell on deaf ears. A mass flight of capital once again raised the spectre of a 'Grexit', apparently more so in Brussels than in Athens. New record for corporate earnings The economic recovery was accompanied by a spectacular revival in corporate earnings. All the businesses making up the S&P 500 Index in the United States had equalled their pre-recession profit levels by as early as the third quarter of 2012, since when their earnings have risen by around 5% a year. That was also the case in The earnings per share of firms in the S&P 500 index were an average of 5.5% higher in the fourth quarter than a year earlier. If we ignore the nosedive in oil company profits, we are looking at an increase in earnings of more than 10%. Companies in the EUROSTOXX -600 index reported earnings growth of 15% in the same quarter showed a happy reversal of the picture in the period The euro crisis, the associated recession in Europe, the write-down of government bond portfolios by banks and the strong euro all contributed to a fall in the profit mass at stock exchange level. As a result, profit levels fell behind relative to S&P companies by more than 20% in the first quarter of ISIS fails to prevent a sharp fall in oil prices The Arab Spring and the power struggle in Libya meant a barrel of Brent crude oil cost 126 US dollars at the end of April The balance of supply and demand over the last three years (weak global demand, high stocks, rising supplies and substitution by shale oil) has caused the oil price to fall since then, apart from an occasional increase due to a flare-up in geopolitical tensions (in 2013, for instance, disruption to supplies in Libya and Nigeria). In recent months the pressure from the excess supply became so great that the premium for the political risk disappeared entirely. OPEC was unable to reach a consensus in November on restricting production and so halting the free fall in the oil price. On 31st January 2015, the price of Brent crude was down to just 46.7 USD a barrel, less than half the 17

20 Financial climate (continued) price a year earlier and far below the marginal production cost of around 80 USD. These low levels were unsustainable, and the floor price for crude oil did not last long. At the end of the period under review, the price of Brent crude had risen to 57 USD a barrel. The steep price rises on most other commodity markets had already come to an end earlier. The prices of many industrial metals and agricultural products peaked around mid-february This was followed by a correction, rising to between 30% (aluminium) and 45% (copper, nickel) since the peak levels of early With the easing of the economic doubts the price correction in recent months would appear to have bottomed out. Inflation is falling further under the influence of the downturn in oil and commodity prices. In the US, the annual increase in the consumer price index fell from a peak of 3.9% in September 2011 to a cyclical low of -0.1% in February Inflation even turned negative in the euro area (-0.1% in March 2015). Plagued by persistent economic weakness, and for a long time by a strong euro, deflation remained a real concern. The fall in the oil price has only increased that risk in recent months. Learning to live with negative interest rates The US central bank (the Fed) had already cut its key rate very early on in the crisis. Since December 2008 the rate has been a symbolic 0.25%. The ECB waited much longer before starting to cut. In 2014 it cut its key rate on two occasions by 10 basis points. Since 4th September the rate has been 0.05%. For deposits the ECB now has a negative rate of interest of -0.20%. ECB President Mario Draghi has emphasised that this is the absolute end of the interest rate reductions. The policy of (virtually) free money was not sufficient to guarantee that the economic recovery would prove lasting. The central banks therefore looked for alternatives. The Federal Reserve, the Bank of England and the Bank of Japan intervened directly in the bond markets and bought up large amounts of debt paper in an attempt to keep the long-term rate low as well. The Fed, for instance, had repurchased government bonds and mortgage loans to the value of 85 billion US dollars a month to the end of The programme has been tapered since January 2014, coming to an end in October. The Bank of England had already discontinued its own large-scale liquidity injections at year-end The Bank of Japan only began its programme in April 2013 and will persist with it for a while yet. It proved difficult to achieve a consensus on a similar policy in the ECB policy committee. The prospect of large-scale purchases of government bonds was raised by ECB President Mario Draghi as long ago as September 2012, but remained a red line that the German Bundesbank would not cross. As a consequence, the ECB had to be content with granting exceptional credit facilities, under the acronyms LTRO and TLTRO, on extremely favourable terms in order to pump excessive liquidity into the European banking system. It was not until 22nd January 2015 that the ECB President was able to announce that, from March 2015 and possibly until at least September 2016, the ECB and euro area national banks would be purchase government paper to the tune of 60 billion euros a month. Seeking a floor for bond rates Economic doubts, the realisation that inflation is as good as dead, and central bank interventions are keeping bond yields historically low. Traditionally, bond rates in Germany the benchmark in the euro area closely shadow developments in the US market. In this reporting period the reverse applied. In 2014 the call for a European variant of QE became ever louder, driving not just German but also US 10-year rates ever lower. On 2 February the interest on a US 10-year government bond fell to a low of 1.67%. In this regard the fact that the Fed admittedly choosing its words cautiously began to hold out the prospect of the first rise in interest rates in seven years had little if any influence. At the end of the period under review, the yield on German bonds maturing in no more than seven years had turned negative. German ten-year rates stood at 0.25%. The continued easing of the euro crisis caused a further narrowing of interest rate spreads between the EMU partners, almost without hiccups except in the case of Greece. Belgian-German spreads also narrowed further to 25 basis points at the end of March