Semi-annual report as at 30th September Global Partners Open-ended investment company under Luxembourg law (SICAV) R.C.S. Luxembourg B

Transcription

1 Semi-annual report 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 Statement of net assets Statistical information Global Partners KBC Rastovy Statement of investments and other net assets 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 Variable Growth 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 PL KBC Kupon 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

4 Contents (continued) Global Partners CSOB Duo Coupon 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 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 PL KBC Super Dyskontowy Statement of investments and other net assets Global Partners CSOB Digitalni Reverzni 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

5 Contents (continued) 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 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 CSOB Portfolio Pro Kveten 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 Aktywow 90 Sierpien 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 Notes to the financial statements

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

7 Organisation (continued) Directors Ivo BAUWENS Jürgen VERSCHAEVE 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 Karel DE CUYPER Lazlo BELGRADO (since 15th April 2014) Wouter VANDEN EYNDE (until 30th April 2014) 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 Paying agents in Czech Republic ČESKOSLOVENSKÁ OBCHODNÍ BANKA, A.S. Radlická 333/150 CZ PRAGUE 5 5

8 Organisation (continued) in Poland KREDYT BANK S.A. UI Kasprzaka 2/8 PL WARSAW 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, 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 KBC Rastovy 6 in EUR - 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-funds with a "Best of Variable Participation" structure - Global Partners CSOB Variable Growth 2 in CZK - 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 PL KBC Kupon 2* in PLN - 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 5 in CZK - 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 7

10 General information (continued) - 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 - Global Partners CSOB Fixovany Click USD 3 in USD Sub-fund with a "Jumpstart" structure - Global Partners PL KBC Super Dyskontowy 1 in PLN Sub-fund with a "Digital Reverse Cliquet" structure - Global Partners CSOB Digitalni Reverzni 5 in CZK Sub-funds with a "Fix Upside Memory Click" structure - Global Partners CSOB Click S Pameti 1 in CZK - 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 in PLN (initial subscription NAV date : 3rd September 2014) 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) The following sub-funds matured during the period in reference to the report: in CZK Sub-funds with a "Best of Maximum Capitalisation" structure - 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-fund with a "Tree" structure - Global Partners CSOB World Tree 14 (terminated on 10th September 2014) Sub-fund with a "Fix Upside Coupon" structure - Global Partners PL KBC Kupon 1* (terminated on 29th August 2014) in PLN in PLN in PLN in EUR in CZK in PLN 8

11 General information (continued) Sub-fund with a "Fix Upside Click" structure - Global Partners CSOB Fixovany Click 2 (terminated on 11th June 2014) Sub-fund with a "Jumpstart" structure - Global Partners KBC Meny 2 (terminated on 30th April 2014) Sub-fund with a "Best Timing" structure - Global Partners PL KBC Start 1 (terminated on 30th June 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-funds with a "Point Capped" structure - Global Partners PL KBC Point Capped 3 (terminated on 31st July 2014) in CZK in EUR in PLN 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-funds have 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-funds have 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 have 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 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 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-funds have 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 11

14 General information (continued) Reverse Cliquet" 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 predefined 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-funds have 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-funds seek 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 seeks 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. "Extra Premium Jumper" structure The investment objective of the sub-fund is to obtain a premium payment per Reference Period that is based on the evolution of an index or a basket of indices or shares calculated via the "Extra Premium Jumper" structure as defined hereafter. The Extra Premium Jumper provides a fixed premium of a predefined percentage every time an Observation Value is calculated. Additionally an early termination happens when one of the Observation Values is not lower than a pre-defined percentage of the Starting Value. In the case of an early termination, an extra premium of a pre-defined percentage will be paid, in addition to the fixed premium and 100% of the initial value on subscription. If an early termination happens, the Board of Directors of the SICAV will decide to close the sub-fund on the Early Termination Day. If the structure has not been terminated on one of the Early Termination Days there are 3 possibilities at Maturity: Scenario 1: If the End Value of the index or the basket of shares/indices is not lower than a pre-defined percentage of the Starting Value, the payment at Maturity is equal to: the fixed premium of a pre-defined percentage plus an extra premium of pre-defined percentage in addition to 100% of the initial value on subscription. Scenario 2: If the End Value of the index or basket or shares/indices is lower than a pre-defined percentage of the Starting Value but not lower than a pre-defined percentage of the Starting Value, the payment at Maturity is equal to: the fixed premium of a pre-defined percentage in addition to 100% of the initial value on subscription. Scenario 3: If the End Value of the index or the basket of shares/indices is lower than a pre-defined percentage of the Starting Value, the payment at Maturity is equal to: the initial value on subscription reduced 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. 13

16 General information (continued) The premiums of each Reference Period will be payable, except for the last Reference Period, on the last Luxembourg banking day of the month following the end of the Reference Period. The premium of the last Reference Period will be paid out at Maturity. "Coupon Driver" structure The sub-fund has 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 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 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). "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. "Performance Smoother" 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 30 quality shares of companies that are characterised by a high market capitalisation and a low price/earnings ratio (as defined below). 14

17 General information (continued) At Maturity the investor receives 100% of the evolution in the value of the basket calculated as the weighted average of the evolution of the shares in the Basket (as described below). The evolution of each share ((End Value of each Share minus Starting Value of each Share) divided by the Starting Value of each Share) is taken into account for 50% if negative, and for 100% with a maximum of 50% if positive. The possible capital gain will be paid out at Maturity in addition to 100% of the initial value on subscription. "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-funds have 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-fund has 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. "Participation Up- Participation Down" structure The sub-fund has 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 th September 2014 In the summer months of 2013 doubts about the sustainability of the economic recovery began to dissolve. Europe shook off the recession, the euro crisis lost its stranglehold, the US easily digested a severe austerity programme and Japan broke out of its negative deflation spiral. The stock markets responded warmly to the economic optimism. And the bond markets were mesmerised by the prospect of the European Central bank (ECB) following the US example and would start to purchase government paper on a large scale. The economic tightrope Although more jobs have been created than lost in the US since 2010, employment growth remained on the thin side for some considerable time. The unemployment rate declined, but for the wrong reasons. Not because employment was growing strongly but because many Americans dropped out of the labour market in disillusionment. Pay rises barely outstripped inflation. Taken together, these two factors ensured that household purchasing power in the US grew to only a limited extent, so that economic growth remained on the weak side for a long time. However, the US economy was fundamentally much stronger than the stark growth figures might suggest. On 1st January 2013 a number of temporary tax cuts and other budgetary stimuli came to an end. This was to hold back the already weak growth to such an extent as to generate fears of a new recession. This did not eventuate but the opposite did. The easing of uncertainty concerning the fiscal future rekindled confidence among consumers and producers. Borrowing got back into gear and the savings ratio came down. Growth picked up, which was translated into better labour market figures. In the first eight months of 2014 an average of new jobs were created each month and the unemployment rate fell by 0.9 percentage points to 6.1%. The recession in the EMU, precipitated by the euro crisis and going back as far as the fourth quarter of 2011, came to an end. From the second quarter of 2013 onwards positive growth figures were at last recorded again and the overall unemployment rate stopped rising. But the growth figures remained disappointingly feeble. Warnings were often to be heard concerning deflation. Japan managed to break out of the negative deflation spiral. The Bank of Japan announced in April 2013 its explicit intention to pursue an inflation target of +2%, doubling the monetary base to this end over a period of two years. The yen had already depreciated sharply since August 2012 in anticipation of this policy shift, which was also the theme of the Parliamentary elections in December This ensured that exports recovered in 2013 and that inflation moved into positive territory. The recovery failed to gain further strength in VAT was increased by 5% on 1st April. This encouraged consumers to bring forward purchases to the first quarter, but the growth recorded in the first three months was matched by the strength of the downturn in the second quarter. The weak growth in the West also had an impact on the export performance of the emerging countries. This was translated in the year under review into a marked cooling in growth, especially in countries such as Brazil and South Africa with their large commodity industries. The slowdown in growth in China brought the problems of the excessive debt burden of Chinese banks to the foreground from time to time. Talking down the euro crisis The euro crisis broke out in October 2009 when bond investors began to question Greece s creditworthiness. It peaked in the summer of 2012, when Greece descended not only into financial and economic chaos, but also into a political vacuum. The crisis resulted in the bankruptcy of Greece and Cyprus. Portugal and Ireland forfeited the confidence of international bond investors and had to be rescued by the IMF, the ECB and their EMU partner countries. Spain and Italy narrowly managed to escape this fate. 16

19 Financial climate (continued) Government finances were in fact dislocated throughout Europe. The fates of the European banks and European governments are closely intertwined. The banks, which traditionally hold an extensive portfolio of government bonds, emerged weakened from the credit crisis. Their buffers for coping with impairments on the bond portfolio were used up. The weaker a government's credit rating, the greater the impairment charges and the more difficult it became for those governments to spring into the breach for their banks. The mutual confidence among the European banks was also totally undermined and the monetary transmission channel became clogged up. These interconnections caused the euro system to totter and even threatened the continuing existence of the single currency. 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 basically stood alone in defending the euro. The central bank saw its key task as unblocking the monetary flow. This prompted various programmes of extremely cheap liquidity provision to the banking sector (under the acronyms LTRO and TLTRO) and the new framework of more stringent banking supervision (including the Banking Union, regular stress tests and the ongoing, large-scale scrutiny of the quality of bank assets). The latter is designed to restore mutual confidence within the European banking sector and to restore the interbank market as the banks will once again be positively disposed towards lending. 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. In the course of 2014, Ireland and Portugal were able to fund themselves once more in the traditional way. Greece even successfully concluded a new bond loan in March 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 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. In addition to higher revenues, the increase in earnings was due to a sharp reduction in (wage) cost pressures. The spectacular recovery in profits experienced by the companies in the MSCI Europe until 2011 failed to hold up. The euro crisis, the accompanying recession in Europe, the devaluation of government bond portfolios held by banks and the strong euro all left their mark. Earnings per share were down by an average of 25% in the first quarter of 2014 compared with mid Positive earnings growth was finally recorded again in the second three months of the year after nine quarters. Commodity market correction: the worst is now over 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 and rising supplies) 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, and in 2014, the threat to Iraqi oilfields by Islamic extremists). At the end of September 2014 the price of a barrel of crude oil was 95 USD. 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 40% (copper, nickel) since the peak levels of early The easing of economic doubts appears to have placed a floor beneath this price correction in recent months. Inflation cooled. 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 0.9% in October The disinflationary effect of the falling oil and commodity prices has since run its course. Unemployment is falling. Pay rises are gaining pace (a little). The result is that inflation 2.1% in July 2014 is picking up. That is not the case (for the time 17

20 Financial climate (continued) being) in Europe, where inflation remains low (0.3% in August 2014). The strength of the euro (at least until spring 2014) and the lack of economic growth are making themselves felt. 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 4 September the rate has been 0.05%. For deposits it now has a negative rate of interest of -0.20%. ECB President M. Draghi has emphasised that this must be the end of the line. The policy of (virtually) free money was not sufficient to guarantee 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 This programme has been scaled back incrementally since January 2014 with the intention of phasing it out entirely in October. This ushered in a new trend of tapering that is designed to get the economy off the monetary drip. 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 could persist with it for a while. The ECB is very wary of a similarly unorthodox policy. In December 2011 and in February 2012 it had set up its LTRO programmes under which the banks were provided three-year loans on extremely favourable terms. These were eagerly taken up (for a total billion EUR). The fresh money was not however converted into loans to households and SMEs, as hoped, but was invested in government paper. In the course of 2013 and 2014 the loans were repaid before time on a large scale and the ECB found itself unintentionally confronted by a situation of liquidity tightening. With the intention of reducing its balance sheet total back to the level at the end of 2012, the ECB launched new programmes of liquidity injections in September. Packaged loans (in the form of Asset Backed Securities and Covered Bonds) are being bought up and new LTROs launched (but this time on the express condition that the money borrowed makes its way to the real economy). It is doubtful whether the intended billion EUR can be added to the ECB's balance sheet in this way. In any event the door to the easiest option (the large-scale purchase of government bonds along US lines) remains shut: the Bundesbank continues to be opposed. Seeking a floor for bond rates Intense economic doubts, realisation that inflation is as good as dead, and central bank intervention are keeping bond yields historically low. The announcement of tapering in the United States (end of May 2013) caused US ten-year rates to jump to just above 3% at the end of A lengthy, transparent and reassuring communication from the US central bank had the desired effect, and US bond yields declined again in At the end of the period under review, US ten-year rates stood at 2.51%. German yields fell even more sharply. The lower the inflation figures and the weaker the published growth figures, the stronger the conviction became that a large-scale ECB government bond purchasing programme could not be delayed for much further. German ten-year rates dipped below 1% on 15 August for the first time. Bond portfolios were restructured substantially during the euro crisis. Debt paper issued by under-fire European governments was dumped, in spite of the international guarantees, and replaced by German paper. When the ECB president managed to restore confidence in the euro in September 2012, intra-emu rate spreads began to narrow. This trend continued virtually uninterrupted during the period under review. The same is true of the spread between Belgian and German yields. The Belgian risk premium had narrowed to just 35 basis points by 30 September