INSINGER DE BEAUFORT MANAGER SELECTION SICAV

Transcription

1 (Société d'investissement à Capital Variable) Semi-Annual Report and Unaudited Financial Statements For the period ended June 30, 2014 R.C.S. Luxembourg: B No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual report and the most recent semi-annual report, if published thereafter.

2 Table of contents Page Management, Administration and Independent Auditor 3 General Information 4 Statement of Net Assets 5 Statement of Operations and Changes in Net Assets 7 Changes in the Number of Shares 9 Statistics 9 Schedule of Investments Equity 10 Balanced 11 Defensive Balanced 13 Notes to the Financial Statements 15 2

3 Management, Administration and Independent Auditor INSINGER DE BEAUFORT MANAGER SELECTION SICAV CHAIRMAN Mr Peter George SIERADZKI Director Bank N.V. Amsterdam DIRECTORS Mr Steve GEORGALA Managing Director Maitland Advisory LLP. London Mr Marcel ERNZER Managing Director Wallberg Invest S.A. Luxembourg REGISTERED OFFICE Centre Etoile 11/13 Boulevard de la Foire L-1528 Luxembourg R.C.S. Luxembourg B AIFM MDO Management Company S.A. (as from July 16, 2014) 21st Century Building 19 rue de Bitbourg L-1273 Luxembourg PORTFOLIO MANAGER Asset Management N.V. Herengracht BV Amsterdam, The Netherlands SUB-PORTFOLIO MANAGER Bank N.V. Herengracht BV Amsterdam, The Netherlands DISTRIBUTOR Bank N.V. Herengracht BV Amsterdam, The Netherlands DEPOSITARY AND CENTRAL ADMINISTRATION RBC Investor Services Bank S.A. 14, Porte de France L-4360 Esch-sur-Alzette REGISTRAR AND TRANSFER AGENT RBC Investor Services Bank S.A. 14, Porte de France L-4360 Esch-sur-Alzette, Luxembourg INDEPENDENT AUDITOR PricewaterhouseCoopers Société coopérative 400, Route d Esch L-1471 Luxembourg 3

4 General Information The annual general meeting of shareholders of INSINGER DE BEAUFORT MANAGER SELECTION SICAV (the SICAV or the "Company") is held at the registered office of the Company or at such other place in Luxembourg on the last Wednesday of the month of April of each year at a.m. If this is not a bank business day in Luxembourg, it will be held on the next bank business day. Notifications of all general meetings will be published in the Mémorial, Recueil des Sociétés et Associations of Luxembourg (the Mémorial ) and in at least one Luxembourg newspaper as far as this is required by Luxembourg law. The notification shall be sent to the holders of registered shares by mail, in accordance with Luxembourg Law, at least eight days prior to the meeting at their addresses in the register of shareholders. The Board of Directors may decide at its sole discretion to publish the notification in any other newspaper. Such notices will include the agenda and specify the time and place of the meeting, the conditions of admission and will refer to the requirements of Luxembourg law with regard to the necessary quorum and majorities required for the meeting. The requirements as to attendance, quorum and majorities at all general meetings will be those laid down in Articles 67 and 67-1 of the law of 10th August, 1915 (as amended) of the Grand Duchy of Luxembourg and in the Company's Articles of Incorporation. Each entire share is entitled to one vote. Fractions of shares however participate in the distribution of dividends (if any) or in the distribution of the liquidation proceeds. The Annual Report and Audited Financial Statements will be published within four months after the end of the financial year and the unaudited semi-annual reports shall be published within two months after the end of the relevant period. The reports include separate information on each of the Sub-Funds as well as combined information on all of the Sub-Funds. The reports are available at the registered office of the Company during normal business hours. The financial year-end of the Company is December 31 of each year. A detailed schedule of portfolio movements for each Sub-Fund is available free of charge upon request at the registered office of the SICAV. The Net Asset Values and the issue, conversion and redemption prices of the shares in any Sub-Fund shall be made public and available at the registered office of the Company. Shares of all the Sub-Funds, as and when issued, shall be listed on the Luxembourg Stock Exchange. Under current legislation and practice, shareholders are not subject to any capital gains, income, withholding, inheritance or other taxes in Luxembourg (except for shareholders domiciled, resident or having a permanent establishment in Luxembourg and for certain former residents of Luxembourg owning more than 10% of the share capital of the Company). Potential investors should consult their professional advisers on the possible tax or other consequences of buying, holding, converting, transferring or selling any of the shares under the laws of their countries of citizenship, residence or domicile. The Company is out of the scope of the EU Savings Directive. The annual and semi-annual accounts can be obtained, free of charge, at the offices of the Investment Manager or can be downloaded, free of charge, from the website of the Investment Manager under the following link: Other The Board of Directors confirms adherence to the Association of the Luxembourg Fund Industry (ALFI) Code of Conduct in the governance of Manager Selection SICAV. 4

5 Statement of Net Assets as at June 30, 2014 Equity Balanced Defensive Balanced Note EUR EUR EUR ASSETS Investments in securities at market value (2) 30,588,008 60,122,576 18,576,089 Cash at bank 1,644,488 3,478, ,310 Amounts receivable on subscriptions 5, Interest and dividends receivable 12,823 26,076 4,235 Unrealised profit on forward foreign exchange contracts (7) TOTAL ASSETS 32,251,059 63,628,019 19,476,634 LIABILITIES Amounts payable on redemptions 257, , ,142 Management fees payable (5) 102, ,831 61,960 Taxes and expenses payable (3) 34,575 46,636 25,782 TOTAL LIABILITIES 394, , ,884 TOTAL NET ASSETS 31,857,034 63,219,686 19,184,750 Net Asset Value per share USD Share Class GBP Share Class EUR Share Class Number of shares outstanding USD Share Class - 8, GBP Share Class - 2, EUR Share Class 328, , ,

6 Statement of Net Assets as at June 30, 2014 (continued) Total Note USD ASSETS Investments in securities at market value (2) 149,088,879 Cash at bank 8,210,951 Amounts receivable on subscriptions 8,264 Interest and dividends receivable 58,843 Unrealised profit on forward foreign exchange contracts (7) 1,326 TOTAL ASSETS 157,368,263 LIABILITIES Amounts payable on redemptions 941,917 Management fees payable (5) 404,888 Taxes and expenses payable (3) 145,961 TOTAL LIABILITIES 1,492,766 TOTAL NET ASSETS 155,875,497 6

7 Statement of Operations and Changes in Net Assets for the period ended June 30, 2014 INSINGER DE BEAUFORT MANAGER SELECTION SICAV Equity Balanced Defensive Balanced Note EUR EUR EUR NET ASSETS AT THE BEGINNING OF THE PERIOD 33,743,562 38,847,466 20,556,187 INCOME Dividends, net (2) 177, ,756 62,522 TOTAL INCOME 177, ,756 62,522 EXPENSES Management fees (5) 185, , ,766 Depositary bank commission (8) 15,184 18,365 9,259 Domiciliation, administration and transfer agent fees (8) 31,609 45,173 29,344 Audit fees, printing and publishing expenses 11,496 17,102 8,582 Taxe d'abonnement (6) 5,352 5,457 1,295 Bank charges and correspondent fees 5,284 5,844 5,849 Bank interest Other charges 8,817 8,939 5,019 TOTAL EXPENSES 263, , ,114 NET LOSS FROM INVESTMENTS (85,830) (129,292) (109,592) Net realised gain on sale of investments (2) 2,464,369 1,169, ,000 Net realised gain on forward foreign exchange contracts (2) - 3,741 - Net realised loss on foreign exchange (2) (33,606) (35,866) (9,137) NET REALISED PROFIT 2,344,933 1,008, ,271 Change in net unrealised appreciation / (depreciation) on: - investments (592,074) 485, ,194 - forward foreign exchange contracts - 6,604 - NET INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 1,752,859 1,500, ,465 EVOLUTION OF THE CAPITAL Issue of shares (53,087,568) 28,906, ,291 Redemption of shares 49,448,181 (6,034,780) (2,805,193) Currency translation NET ASSETS AT THE END OF THE PERIOD 31,857,034 63,219,686 19,184,750 7

8 Statement of Operations and Changes in Net Assets for the period ended June 30, 2014 (continued) INSINGER DE BEAUFORT MANAGER SELECTION SICAV Total Note USD NET ASSETS AT THE BEGINNING OF THE PERIOD 128,356,862 INCOME Dividends, net (2) 601,042 TOTAL INCOME 601,042 EXPENSES Management fees (5) 718,730 Depositary bank commission (8) 58,399 Domiciliation, administration and transfer agent fees (8) 144,777 Audit fees, printing and publishing expenses 50,721 Taxe d'abonnement (6) 16,512 Bank charges and correspondent fees 23,160 Bank interest 648 Other charges 31,070 TOTAL EXPENSES 1,044,017 NET LOSS FROM INVESTMENTS (442,975) Net realised gain on sale of investments (2) 5,495,307 Net realised gain on forward foreign exchange contracts (2) 5,103 Net realised loss on foreign exchange (2) (107,238) NET REALISED PROFIT 4,950,198 Change in net unrealised appreciation / (depreciation) on: - investments 559,325 - forward foreign exchange contracts 9,009 NET INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 5,518,531 EVOLUTION OF THE CAPITAL Issue of shares (32,112,182) Redemption of shares 55,397,717 Currency translation (1,285,431) NET ASSETS AT THE END OF THE PERIOD 155,875,497 8

9 Changes in the Number of Shares for the period ended June 30, 2014 Equity Balanced Defensive Balanced USD Share Class Number of shares outstanding at the beginning of the period - 8, Number of shares issued Number of shares redeemed - (504.47) - Number of shares outstanding at the end of the period - 8, GBP Share Class Number of shares outstanding at the beginning of the period - 3, Number of shares issued Number of shares redeemed - (1,028.77) - Number of shares outstanding at the end of the period - 2, EUR Share Class Number of shares outstanding at the beginning of the period 366, , , Number of shares issued 10, , , Number of shares redeemed (49,041.68) (56,430.93) (24,291.37) Number of shares outstanding at the end of the period 328, , , Statistics Equity Balanced Defensive Balanced EUR EUR EUR Total Net Asset Value June 30, ,857,034 63,219,686 19,184,750 December 31, ,743,562 38,847,466 20,556,187 December 31, ,117,503 43,447,803 25,380,712 Net asset value per share at the end of the period June 30, 2014 USD Share Class GBP Share Class EUR Share Class December 31, 2013 USD Share Class GBP Share Class EUR Share Class December 31, 2012 USD Share Class GBP Share Class EUR Share Class

10 Equity Schedule of Investments as at June 30, 2014 (Expressed in EUR) Description Quantity Currency Average Cost Fair Value % net assets Transferable securities admitted to an official stock exchange listing Investments Funds Equities - Asia Pacific Ex Japan First State As Pac Lead -B-Acc 155,265 GBP 784, , First State Inv.As.Pac/-B-/Acc 67,277 GBP 691, , ,475,161 1,670, Equities - Emerging Market First State Gl Em Mk L-B-Eur 443,198 EUR 575, , JP Morgan Funds Emerging Market Opportunities Bond 7,725 EUR 620, , ,195,670 1,266, Equities - Europe Blackrock Gf Euro Mkt -D2-/Cap 136,506 EUR 3,101,414 3,383, Hend Hor P Europ Eq-H2 Eur/Cap 179,021 EUR 2,035,000 2,133, Insinger De Beaufort Equity Income Fund - Class D* 81,744 EUR 3,332,373 3,994, Insinger De Beaufort European Mid Cap /Dis * 36,584 EUR 1,066,080 1,531, Jo Hambro/Cont.Europ.-Inst- 662,736 EUR 1,682,024 1,873, Odey Pan European -I- Gbp/Cap 14,652 GBP 1,855,309 1,933, Ubs Etf Msci Emu A Dis 9,350 EUR 1,000,408 1,009, ,072,608 15,860, Equities - UK Threadn Cl -Z- Net Income 1,588,856 GBP 2,165,593 2,507, ,165,593 2,507, Equities - US Axa Rosenb. Us Eq Alpha Tr -A- 62,802 USD 952,146 1,054, JP Morgan Funds Us Val Bd-B USD-Dis 19,251 USD 1,496,506 1,689, Robeco US Select Opportunities Equities Fund USD 16,145 USD 1,242,692 1,422, Spdr S&P500 Etf Trust S.1 26,680 USD 3,604,942 3,829, Wmpl Us Res Eq Sc -S- Capi 26,789 USD 1,141,562 1,286, ,437,848 9,282, Total - Investments Funds 27,346,880 30,588, Total - Transferable securities admitted to an official stock exchange listing 27,346,880 30,588, Total Investment Portfolio 27,346,880 30,588, * Related party funds 10

11 Balanced Schedule of Investments as at June 30, 2014 (Expressed in EUR) Description Quantity Currency Average Cost Fair Value % net assets Transferable securities admitted to an official stock exchange listing Investments Funds Alternatives Insinger De Beaufort Global Convertible Fund* 9,474 EUR 367, , Insinger De Beaufort Real Estate Equity Fund - Class C* 13,194 EUR 1,673,252 1,798, ,040,425 2,203, Equities - Asia Pacific Ex Japan First State As Pac Lead -B-Acc 264,473 GBP 1,436,199 1,490, First State Inv.As.Pac/-B-/Acc 37,087 GBP 380, , ,817,191 1,929, Equities - Emerging Market First State Gl Em Mk L-B-Eur 299,466 EUR 388, , JP Morgan Funds Emerging Market Opportunities Bond 5,046 EUR 405, , , , Equities - Europe Blackrock Gf Euro Mkt -D2-/Cap 66,819 EUR 1,518,120 1,656, Hend Hor P Europ Eq-H2 Eur/Cap 130,676 EUR 1,490,000 1,557, Insinger De Beaufort Equity Income Fund - Class D* 132,356 EUR 5,929,320 6,466, Insinger De Beaufort European Mid Cap /Dis * 46,548 EUR 1,605,312 1,948, Jo Hambro/Cont.Europ.-Inst- 261,769 EUR 664, , Odey Pan European -I- Gbp/Cap 9,507 GBP 1,203,843 1,254, Ubs Etf Msci Emu A Dis 30,167 EUR 3,303,514 3,256, ,714,478 16,881, Equities - UK Threadn Cl -Z- Net Income 1,212,142 GBP 1,652,135 1,913, ,652,135 1,913, Equities - US Axa Rosenb. Us Eq Alpha Tr -A- 43,113 USD 645, , JP Morgan Funds Us Val Bd-B USD-Dis 12,473 USD 939,033 1,094, Robeco US Select Opportunities Equities Fund USD 9,771 USD 743, , Spdr S&P500 Etf Trust S.1 43,339 USD 6,085,541 6,220, Wmpl Us Res Eq Sc -S- Capi 13,725 USD 584, , ,999,177 9,558, Fixed Income Bluebay Invest Grade BD-S-EUR 29,133 EUR 3,035,917 3,098, Henderson Horiz EUR Corp Bd I1D 20,620 EUR 2,673,951 2,776, Multiple Managers Sicav / European Bond "A"* 39,524 EUR 6,141,476 6,563, Pimco Gis Low Av Dur-Inst- 193,368 USD 1,593,550 1,525, Robeco Cap Eu Gv Bd-Fh Eur-Cap 54,900 EUR 5,985,310 6,200, * Related party funds 11

12 Balanced Schedule of Investments (continued) as at June 30, 2014 (Expressed in EUR) Description Quantity Currency Average Cost Fair Value % net assets Standard Life Eu Corp Bd-D-Cap 243,281 EUR 4,040,859 4,131, ,471,063 24,295, Total - Investments Funds 54,488,445 57,622, Total - Transferable securities admitted to an official stock exchange listing 54,488,445 57,622, Other transferable securities Investments Funds Alternatives Absolute Return Strategy Sicav - Multi Manager Hedge - Class B* 20,821 EUR 2,426,931 2,499, ,426,931 2,499, Total - Investments Funds 2,426,931 2,499, Total - Other transferable securities 2,426,931 2,499, Total Investment Portfolio 56,915,376 60,122, * Related party funds 12

13 Defensive Balanced Schedule of Investments as at June 30, 2014 (Expressed in EUR) Description Quantity Currency Average Cost Fair Value % net assets Transferable securities admitted to an official stock exchange listing Investments Funds Alternatives Insinger De Beaufort Global Convertible Fund* 3,157 EUR 128, , Insinger De Beaufort Real Estate Equity Fund - Class C* 2,546 EUR 312, , , , Equities - Asia Pacific Ex Japan First State As Pac Lead -B-Acc 44,817 GBP 223, , , , Equities - Emerging Market First State Gl Em Mk L-B-Eur 84,271 EUR 109, , JP Morgan Funds Emerging Market Opportunities Bond 1,433 EUR 115, , , , Equities - Europe Blackrock Gf Euro Mkt -D2-/Cap 17,070 EUR 387, , Hend Hor P Europ Eq-H2 Eur/Cap 30,719 EUR 349, , Insinger De Beaufort Equity Income Fund - Class D* 12,088 EUR 468, , Insinger De Beaufort European Mid Cap /Dis * 4,628 EUR 136, , Jo Hambro/Cont.Europ.-Inst- 61,086 EUR 155, , Odey Pan European -I- Gbp/Cap 2,642 GBP 334, , ,832,379 2,095, Equities - UK Threadn Cl -Z- Net Income 260,797 GBP 355, , , , Equities - US Axa Rosenb. Us Eq Alpha Tr -A- 13,820 USD 207, , JP Morgan Funds Us Val Bd-B USD-Dis 2,849 USD 214, , Robeco US Select Opportunities Equities Fund USD 1,524 USD 116, , Spdr S&P500 Etf Trust S.1 4,272 USD 573, , Wmpl Us Res Eq Sc -S- Capi 3,904 USD 166, , ,277,710 1,417, Fixed Income Bluebay Invest Grade BD-S-EUR 13,669 EUR 1,397,680 1,453, Henderson Horiz EUR Corp Bd I1D 14,339 EUR 1,818,933 1,930, Multiple Managers Sicav / European Bond "A"* 17,645 EUR 2,684,443 2,930, Pimco Gis Low Av Dur-Inst- 76,522 USD 632, , Robeco Cap Eu Gv Bd-Fh Eur-Cap 32,907 EUR 3,500,546 3,716, Standard Life Eu Corp Bd-D-Cap 128,619 EUR 2,093,696 2,184, ,127,313 12,818, Total - Investments Funds 16,481,146 17,715, Total - Transferable securities admitted to an official stock exchange listing 16,481,146 17,715, * Related party funds 13

14 Defensive Balanced Schedule of Investments (continued) as at June 30, 2014 (Expressed in EUR) Description Quantity Currency Average Cost Other transferable securities Investments Funds Fair Value % net assets Alternatives Absolute Return Strategy Sicav - Multi Manager Hedge - Class B* 7,171 EUR 761, , , , Total - Investments Funds 761, , Total - Other transferable securities 761, , Total Investment Portfolio 17,242,198 18,576, * Related party funds 14

15 Notes to the Financial Statements For the period ended June 30, Organisation INSINGER DE BEAUFORT MANAGER SELECTION SICAV (the "Company" or the "SICAV") is an investment company organised as a Société Anonyme under the laws of the Grand Duchy of Luxembourg and qualifies as a Société d'investissement à Capital Variable (SICAV) pursuant to Part II of the Luxembourg Law of December 17, 2010 on Collective Investment Undertakings. Accordingly the Company does not comply with the European Community Council Directive in Undertakings for Collective Investment in Transferable Securities. The SICAV was incorporated on May 17, 2000 for an unlimited period. The Articles of Incorporation of the SICAV, as lastly amended on September 1, 2005, were published in the Mémorial, Recueil des Sociétés et Associations, of Luxembourg. The SICAV is registered with the "Registre de Commerce et des Sociétés", Luxembourg under number B The Articles of Incorporation of the SICAV and a notice required by Luxembourg law in respect of the issue and sale of shares by the SICAV are on file with the Registre de Commerce et des Sociétés of Luxembourg. The objective of the SICAV is to provide investors with a choice of sub-funds investing in a wide range of securities or other legally acceptable assets on a world-wide basis and featuring a diverse array of investment objectives, including capital growth and income, whilst retaining the administrative advantages of one single corporate entity. The Board of Directors may create at any moment additional sub-funds and/or classes provided that the rights and duties of the shareholders of the existing sub-funds and/or classes will not be modified by such creation. In such case, the prospectus will be updated and if different classes are issued within a sub-fund, the details of each class will be described in the Appendix of the prospectus relating to the relevant sub-fund. Any shareholder may request the conversion of all or part of his/her shares of any sub-fund and/or class into shares of any other existing sub-fund and/or class. At June 30, 2014 the SICAV comprised three active sub-funds (each a Sub-Fund or collectively the Sub-Funds ). Manager Selection SICAV- Equity (expressed in EUR) The aim of the Sub-Fund is to achieve long-term capital gains from investments in global equity markets. As at June 30, 2014, only the EUR Share class (denominated in EUR) is available to investors. These shares aim to achieve the investment objective of long-term capital growth. Manager Selection SICAV- Balanced (expressed in EUR) The Net Asset Value per share is expressed for each class in the reference currency of each class and the subscription and redemption may be paid in USD, EUR and GBP, based on the exchange rates applicable on the relevant Valuation Day. The aim of the Sub-Fund is to achieve absolute returns from investment opportunities offered in equity, bond markets and alternative investments. The term absolute shall express the aim of the Sub-Fund to achieve portfolio performance with a reduced dependency on the fluctuations in the financial markets. Under no circumstances absolute shall be considered as a guarantee for the future performance of the Sub-Fund's investments. Three classes of shares have been created in the Sub-Fund to enable investors with different currency profiles to access the same underlying portfolio. The USD Share Class, the GBP Share Class and the EUR Share Class aim to achieve the investment objective of long term capital growth. All share classes are invested in the same underlying portfolio of securities, the only difference being the application of hedging techniques on the GBP Share Class and the USD Shares Class in order to reduce the impact of fluctuations in the foreign currencies compared to the base currency of the relevant share class. The shares are fully exposed to fluctuations in the EUR exchange rate (USD Share Class and GBP Share Class) relative to the major currencies in which the Sub-Fund is invested. As at June 30, 2014, these three Share classes are active. 15

16 Notes to the Financial Statements (continued) For the period ended June 30, 2014 INSINGER DE BEAUFORT MANAGER SELECTION SICAV 1 - Organisation (continued) Manager Selection SICAV Defensive Balanced (expressed in EUR) The aim of the Sub-Fund is to achieve absolute returns from investment opportunities offered in equity bond markets and alternative investments. The term absolute shall express the aim of the Sub-Fund to achieve portfolio performance with a reduced dependency on the fluctuations in the financial markets. Under no circumstances absolute shall be considered as a guarantee for the future performance of the Sub-Fund s investments. As at June 30, 2014, only the EUR Share class (denominated in EUR) is available to investors. These shares aim to achieve the investment objective of long-term capital growth. 2 - Significant accounting policies The financial statements have been prepared in conformity with legal and regulatory requirements in Luxembourg applicable to investments funds, including the following significant accounting policies: a) Valuation of investments Each share or unit in an open-ended UCI is valued at the last available Net Asset Value whether estimated or final, which is computed for such units or shares at or prior to the valuation day on which the Net Asset Value of the Shares of the Sub-Fund is determined and as approved by the Central Administration of the Company. Transferable securities which are admitted to an official exchange listing or dealt in on another regulated market are valued on the basis of the last available price prevailing on the valuation date, and where appropriate at the middle market price. If securities are listed on several stock exchanges or markets, the price on the principal market will be applied. Transferable securities not admitted to an official exchange listing or dealt in on another regulated market and transferable securities admitted to an official exchange listing or dealt in on another regulated market for which the available price is not representative of the fair market value are valued on the basis of their reasonably foreseeable sales price determined with prudence and good faith by the Board of Directors. Units/shares of open-ended UCI are valued at their latest available Net Asset Value. If, since the last Valuation Day there has been a material movement in the quotations on the markets on which a substantial portion of the investments of the SICAV attributable to a particular Sub-Fund is listed or dealt in, the Board of Directors may, in order to safeguard the interests of the shareholders and the SICAV, cancel the first valuation and carry out a second valuation. The valuations at period-end for all investments were based on the latest available prices at that date. b) Net realised profit / (loss) on sales of investments The net realised profit or loss on sales of investments is determined on the basis of the average cost of investments. c) Foreign currencies Assets and liabilities expressed in currencies other than the Sub-Fund s currency are translated into the Sub-Fund s currency at the exchange rates prevailing as at each valuation date. Income and expenses in currencies other than the Sub-Fund s currency are translated into the Sub-Fund s currency at the exchange rates prevailing at the transaction date. Principal closing exchange rates used as at June 30, 2014 are: 1 EUR = USD 1 EUR = GBP d) Combined financial statements of the Company The total Net Asset Value of the Company is equal to the sum of the net assets of the various Sub-Funds translated into USD at the prevailing exchange rates in Luxembourg as at the valuation day. 16

17 Notes to the Financial Statements (continued) For the period ended June 30, 2014 INSINGER DE BEAUFORT MANAGER SELECTION SICAV 2 - Significant accounting policies (continued) The difference between the opening net assets stated at the rate of exchange for translation from EUR into USD as at December 31, 2013 and June 30, 2014 is shown as a currency translation adjustment in the combined statement of operations and changes in net assets. e) Cost of investment securities The cost of investment securities expressed in currencies other than the Sub-Fund s currency is translated into the Sub-Fund s currency at the exchange rate applicable at the purchase date. f) Forward foreign exchange contracts Outstanding forward foreign exchange contracts are valued on the basis of forward exchange rates prevailing at the relevant valuation date and the resulting unrealised profits or losses are included in the statement of operations and changes in net assets. Realised profits and losses on matured forward foreign exchange contracts are also included in the statement of operations and changes in net assets. g) Income Dividends are recognized on an ex-dividend basis, net of withholding taxes in the country of origin. Interest is recognized on an accrual basis. 3 - Taxes and expenses payable Insinger de Beaufort Equity Insinger de Beaufort Balanced Insinger de Beaufort Defensive Balanced EUR EUR EUR Taxe d'abonnement (Note 6) 2,542 3, Depositary bank commission, domiciliation, administration and transfer agent fees 12,949 17,630 9,721 Audit fees, printing and publication expenses 11,112 16,187 8,214 Directors fees 2,731 3,305 1,660 Miscellaneous 5,241 5,950 5,605 34,575 46,636 25, Commission on subscription and redemption of the Sub-Funds shares A sales charge with a maximum of 5% of the applicable Net Asset Value may be charged in favour of the Investment Manager who shall be responsible for rewarding intermediaries for the distribution of the Sub-Fund shares. The redemption price of the Sub-Funds shares corresponds to the Net Asset Value per share of the relevant Sub-Fund. No redemption fee is levied. 5 - Management fees Pursuant to an agreement dated May 17, 2000, INSINGER DE BEAUFORT ASSET MANAGEMENT N.V., Amsterdam has been appointed as Investment Manager. The agreement between the SICAV and the Investment Manager makes provision for it to remain in force for an unlimited period and that it may be terminated by either party at any time upon one month notice. As remuneration for its services, the Investment Manager receives from the SICAV an annual fee at the maximum annual rate of 1.50% for Equity, Balanced and Defensive Balanced applicable on the average net assets of these Sub-Funds. The management fee is payable monthly. Actual management fees during the period ended June 30, 2014 were charged at 1.25% p.a. for Multi- Manager Equity, at 1.25% p.a. for Balanced and at 1.25% p.a. for Defensive Balanced. 17

18 Notes to the Financial Statements (continued) For the period ended June 30, Management fees (continued) The Portfolio Manager did not receive any performance fee for the period ended June 30, The Portfolio Manager receives management fees and performance fees for investments in other funds managed by Insinger de Beaufort Asset Management N.V., or its affiliates. Rebates The Portfolio Manager has not received rebates for the period ended June 30, Taxation Under current law and practice, the SICAV is not liable to any Luxembourg income tax, nor are dividends paid by the SICAV liable to any Luxembourg withholding tax. However, the Sub-Funds are liable in Luxembourg to an annual tax ( taxe d abonnement ) of at present 0.05% per annum of its net assets, such tax being payable quarterly and calculated on the basis of the net assets of all Sub-Funds at the end of the relevant quarter. No such tax is paid on the assets held by the SICAV in other UCITS already subject to that tax in Luxembourg. Interest and dividend income, and gains on securities, may be subject to non-recoverable withholding taxes deducted at source in the countries of origin. 7 - Forward foreign exchange contracts As at June 30, 2014, Balanced had entered into the following outstanding forward foreign exchange contracts: Purchase Sales Maturity Date Unrealised profit/(loss) (in EUR) GBP 127,078 EUR 156,000 8/29/2014 2,428 USD 557,436 EUR 410,000 8/29/2014 (1,457) TOTAL 971 The counterparty linked to the forward foreign exchange contracts is Bank N.V. 8 - Depositary, Administration and Transfer agency fees The SICAV pays fees to RBC Investor Services Bank S.A., for its rendering of services as Depositary and Central Administrative Agent, in accordance with normal banking practices in Luxembourg. These fees are annual fees related to the average net assets of the different Sub-Funds and are payable on a quarterly basis. The actual applicable rate of Depositary fees is 0.07%. The Central Administrative Agent fees amounts to EUR 28,000 for each Sub-Fund. The SICAV pays fees to RBC Investor Services Bank S.A., for its rendering of services as Registrar and Transfer Agent, as generally charged in Luxembourg. 9 - Dividends It is not the policy of the SICAV to distribute dividends Subsequent Events With the new prospectus dated July 16, 2014 all Sub-Funds will pay the portfolio manager a performance fee of 10% on the absolute positive return yielded by the Sub-Fund (based on the Net Asset Value per share including dividend). The performance fee is payable monthly. As per the same date the actual management fees charged is 0.70% per annum for all Sub-funds. 18