Raiffeisen Dollar Bonds

Transcription

1 Semi-annual fund report Raiffeisen Kapitalanlage-Gesellschaft m. b. H.

2 Semi-annual fund report from October 1, 2008 to March 31, 2009 Asset management company: Raiffeisen Kapitalanlage-Gesellschaft m. b. H. Schwarzenbergplatz 3, A-1010 Vienna Tel , Fax Companies register number: w Custodian bank: Raiffeisen Zentralbank Österreich AG Fund management: Raiffeisen Kapitalanlage-Gesellschaft m. b. H. ISIN income-distributing: ISIN income-retaining: ISIN full income-retaining (outside Austria): ISIN savings fund income-distributing: ISIN savings fund income-retaining: AT AT AT AT AT The current version of the published prospectus including all amendments since its initial publication is available to potential investors at All data and information has been compiled and checked with the greatest care. No liability or guarantee can be assumed for the recentness, correctness and completeness of the information provided. We consider the sources used to be reliable. The software used performs calculations with an accuracy of fifteen decimal places, not with the displayed two decimal places. Discrepancies cannot be ruled out due to further calculations using published results. Page 2

3 Table of contents Fund details in USD... 5 Capital market... 7 Investment policy... 8 Makeup of fund assets in USD... 9 Portfolio of investments in USD Page 3

4 Dear unit holder, Raiffeisen Kapitalanlage-Gesellschaft m. b. H. is pleased to present its semi-annual fund report for Raiffeisen Dollar Bonds a jointly owned fund as per 20 of the Austrian Investment Fund Act from October 1, 2008 to March 31, The value of a unit is calculated by dividing the entire value of the investment fund inclusive of its income by the number of units. The total value of the investment fund is calculated on the basis of the current market prices of the securities, money market instruments and subscription rights in the fund plus the value of the fund s financial investments, cash holdings, credit balances, receivables and other rights net of its payables. That value will be calculated by the custodian bank. The net assets are calculated in accordance with the following principles: a) In principle, the value of assets quoted or traded on a stock market or on another regulated market will be determined on the basis of the most recently available price. b) Where an asset is not quoted or traded on a stock market or another regulated market or where the price for an asset quoted or traded on a stock market or another regulated market does not appropriately reflect its actual market value, the prices provided by reliable data providers or, alternatively, market prices for equivalent securities or other recognized valuation methods shall be used. Page 4

5 Fund details in USD 30/9/ /3/2009 Total fund assets 59,225, ,616, Net asset value per distributed unit Issue price per distributed unit Net asset value per partly reinvested unit Issue price per partly reinvested unit Net asset value per fully reinvested unit Issue price per fully reinvested unit Distribution/outpayment in USD 1/12/2008 Distribution per distributed unit 3.50 Outpayment per partly reinvested unit 1.13 Reinvestment of part reinvestment per unit 6.93 Reinvestment of full reinvestment per unit 8.83 Raiffeisen Dollar Bonds fund units in circulation: Distributed units Units in circulation on 30/9/ , Partly reinvested units 248, Fully reinvested units 73, Sales 5, , , Repurchases 47, , , Units in circulation 97, , , Total units in circulation on 31/3/ , Page 5

6 Fund details in USD for last five financial years We would like to point out that the yield may rise or fall due to currency fluctuations. Distributed units: Assumes wholesale reinvestment of distributed amounts at their net asset value on the distribution date. Date Fund assets total Net asset value per distributed unit Payouts per distributed unit Performance as % 1) 30/9/ ,841, /9/ ,179, /9/ ,775, /9/ ,429, /9/ ,225, /3/ ,616, Partly reinvested units: Assumes wholesale reinvestment of paid-out amounts at their net asset value on the payment date. Date Fund assets total Net asset value per partly reinvested unit Amount used for part reinvestment Outpayment as per 13 (3) InvFG Perform ance as % 2) 30/9/ ,841, /9/ ,179, /9/ ,775, /9/ ,429, /9/ ,225, /3/ ,616, Fully reinvested units: Date Fund assets total Net asset value per fully reinvested unit Amount used for full reinvestment Performance as % 30/9/ ,841, /9/ ,179, /9/ ,775, /9/ ,429, /9/ ,225, /3/ ,616, Page 6

7 Capital market (Reporting period: 12 months) The EUR government bond market was one of the major beneficiaries of the historic financial market year The almost 4.7 % yield in July on 10-year German Bund bonds had dwindled to just 2.9 % as of the fourth quarter. The high level of risk aversion due to the crisis, the poor economic outlook, low inflation predictions (and even deflation fears) and key interest rates falling toward zero around the world were the key factors behind narrowing yields. The 3 rd quarter of 2008 saw the beginnings of a trend which some analysts (over)interpreted as a sign of the collapse of monetary union: Spreads of weaker European states on German bonds spiraled upward. Austria joined this group of countries in late February as media interest focused on the Austrian banking sector s exposure. The markups of Austrian government bonds suddenly exceeded those of Italy and Spain, a development which had long been unthinkable. In March year EUR government bonds moved sideways between 2.90 and Unwarranted economic optimism weakened US government bonds in the first quarter of This phase already came to an end in June, however, and with Lehman Brothers bankruptcy and the resulting state of emergency on the financial markets in the autumn yields on 10-year government bonds crashed to a low of 2.0 % in the period to mid- December. This trend had been encouraged by key interest rate cuts of more than 4 % in the space of a year and the Fed s announcement that it would purchase US Treasuries directly. The firming-up of several upstream economic indicators led to a consolidation trend in February 2009; the yield moved sideways at slightly short of 3 %. As the Fed made good on its earlier promises to purchase government bonds, this caused yields to fall strongly on March 18. However, 10-year securities have since returned to their old level and are now in a volatile sideways corridor between 2.50 % and 3.00 %. In September Lehman Brothers' insolvency triggered a shockwave on the financial markets. Financial institutions suddenly lost confidence in one another. Banks in the USA were forced to make emergency mergers or were taken over. Lehman's bankruptcy caused a great deal of insecurity on the largely illiquid credit market. Bond spreads exploded, both for financial and non-financial securities. Since November the primary market has provided some initial positive signs. In the present year EUR non-financial corporate bonds with a volume in excess of EUR 110 billion have already been issued. These are returning some liquidity to the market. State-guaranteed financial bonds are also meeting with a lively response from investors. Since the start of the year the spread performance of nonfinancial corporate bonds has been marginally positive. In March, during the equity bear market rally even financial bonds were able to make up for some of their losses in previous months. Effective US default rates are rising steadily and in March they are already at 5.5 %. In the first half of 2008 the prevailing view seemed to be that the US economy had fallen behind that of the Eurozone. In addition, interest-rate cuts were predicted while a rise was priced in for the Eurozone. This helped EUR/USD, which was pricing at 1.6 in mid-july. The market recognized its misjudgment in the middle of the year, and there was serious turbulence on the financial markets at this time. The dollar strengthened during the crisis partly due to its reputation as a safe haven and tested levels just short of Page 7

8 Levels around the 1.25 mark were also reached in March The dollar weakened to 1.36 during the stock market rally in March. The yen and the franc also proved themselves as crisis currencies; while in July last year EUR/JPY reached a level of , by the end of the year it had fallen back to 126 due to the crisis and in the new year in strong correlation with the stock markets it has been volatile and weakening (from a February low of 115 to 135). The Swiss franc realized strong gains during the crisis (1.43 in October) and in March once again reached strong levels (1.46 in March). The SNB finally responded with an intervention on the foreign exchange market. EUR/CHF has since fluctuated between 1.51 and Investment policy During the period under review, the interest rate risk for Raiffeisen Dollar Bonds was kept above the level of the market, with the duration deviating by up to 0.5 years. On multiple occasions the fund had tactical duration positions involving so-called derivatives, which led to short-term increases or reductions in the interest rate risk. In contrast, yield curve strategies were largely waived. The fund s holdings of corporate bonds were steadily decreased during the period under review and amounted to just short of one-third of its assets at the end of the period. The focus was on products with premium credit worthiness (AA to AAA ratings). The fund was nonetheless unable to remain wholly immune to the negative trend for corporate bonds associated with the financial crisis. The US dollar currency risk was hedged slightly in the period under review on a selective basis, and the fund recurrently added Canadian dollar holdings and, later in the period, Australian dollar holdings. Securities lending transactions were entered into in order to generate additional income. Page 8

9 Makeup of fund assets in USD 1. Securities thou. % Bonds: US dollar 33, Derivative products Valuation of financial futures Valuation of forward exchange transactions Total derivative products Bank balances USD-denominated bank balances Foreign exchange balances Total bank balances Accruals and deferrals Pro rata interest (on securities and bank balances) Debt interest Total accruals and deferrals Other items Various fees Fund assets 33, Page 9

10 Portfolio of investments in USD ISIN SECURITY TITLE VOLUME PURCHASES SALES PRICE MARKET VALUE % SHARE 31/3/2009 ADDITIONS DISPOSALS IN USD OF FUND UNITS/NOM. IN PERIOD UNDER REVIEW ASSETS BONDS IN US DOLLARS US912828JU US TREASURY ,000,000 2,500,000 1,500, ,018, US912828HV US TREASURY ,400, ,000, ,544, US912828HR US TREASURY ,100, ,900, ,460, XS BP CAPITAL MARK. MTN , , , US912828BA US TREASURY ,800, ,000, ,042, US912828HZ US TREASURY , , , US931142BZ WAL-MART STRS , ,200, , US514890AF LDKRBK.BAD.W.ANL R , , , US912828DC US TREASURY ,900, ,284, XS STD.CHART.BK (HK) FRN , , , XS SWED. EXP. CRED , , , , US912810PW US TREASURY ,000, , ,128, XS GREECE , , , XS EUROP. HYPO BANK , , , DE000HBE0FC HYP.BK.ESSEN OPF , , US377372AC GLAXOSMITHKLINE CAP , , , FR CIE F.FONCIER MTN , , DE000A0JRFV DG HYP OE.PF.R.1041 DL ,400, , , ,428, US822582AB SHELL INTL FIN , , , US369604AY GENL EL , , , XS HYPO PFAND.BK , , US683234YS ONTARIO PROV , , , US92857WAF VODAFONE GRP , , , XS NATL AUSTR. BK , , , US40429CCX HSBC FINANCE , , , US92857WAR VODAFONE GRP , , , USL0302DAM ARCELORMITTAL REGS , , US25156PAG DT.TELEK.INTL F , , , US225434CH CS (USA) , , , US912810FE USA TREASURY ,950, ,550, ,451, USL2967VCX ENEL FIN.INTL REGS , , , US23383FBU DAIMLERCHRYS.N.A. MTN , , USG8227UAA SMFG P.CAP.USD FRN 06-UND. 200, , , US87927VAS TELECOM ITAL.CAP , , , US912810EQ USA-TREASURY ,500, , ,967, XS TRANSCAPITALINVEST , , , TOTAL SECURITIES PORTFOLIO USD 33,064, FINANCIAL FUTURES NOT FOR HEDGING PURPOSES IN US DOLLARS CBT 10-YR TREASURY NOTES FUT. AS OF 19/6/2009 CBT , CBT 2-YR TREASURY BONDS FUT. AS OF 30/6/2009 CBT , TOTAL FINANCIAL FUTURES 1) USD 38, FORWARD EXCHANGE TRANSACTIONS RECEIVABLES/LIABILITIES OPEN POSITIONS PURCH ASES AUD 230, USD 5, CAD 374, USD -5, EUR 525, USD 3, CLOSED POSITIONS SALES AUD -300, USD -3, CAD -486, USD -16, EUR -625, USD -12, TOTAL FORWARD EXCHANGE TRANSACTIONS 1) USD -27, BANK BALANCES USD BALANCES USD 203, EUR BALANCES USD 20, BALANCES IN NON-EU CURRENCIES AUD USD 1, CAD USD 6, NZD USD USD 232, ) Price gains and losses as of cut-off date. Page 10

11 CURRENCY MARKET VALUE % SHARE IN USD OF FUND ASSETS ACCRUALS AND DEFERRALS PRO RATA INTEREST USD 339, DEBT INTEREST USD USD 339, OTHER ITEMS VARIOUS FEES USD -30, FUND ASSETS USD 33,616, NET ASSET VALUE PER DISTRIBUTED UNIT USD NET ASSET VALUE PER PARTLY REINVESTED UNIT USD NET ASSET VALUE PER FULLY REINVESTED UNIT USD DISTRIBUTED UNITS IN CIRCULATION UNITS 97, PARTLY REINVESTED UNITS IN CIRCULATION UNITS 115, FULLY REINVESTED UNITS IN CIRCULATION UNITS 44, EXCHANGE RATES FOREIGN CURRENCY ASSETS WERE CONVERTED INTO USD ON THE BASIS OF THE EXCHANGE RATES APPLICABLE ON 30/3/2009: CURRENCY UNITS PRICE AUSTRALIAN DOLLAR 1 USD = AUD CANADIAN DOLLAR 1 USD = CAD EURO 1 USD = EUR NEW ZEALAND DOLLAR 1 USD = NZD FUTURES EXCHANGE KEY: CODE CBT STOCK EXCHANGE CHICAGO BOARD OF TRADE SECURITIES PURCHASES AND SALES DURING THE PERIOD UNDER REVIEW NOT LISTED UNDER THE PORTFOLIO OF ASSETS: ISIN SECURITY TITLE PURCHASES SALES ADDITIONS DISPOSALS BONDS IN US DOLLARS XS OEKB NOTES ,050,000 US912828DL US TREASURY ,000,000 DE DEPFA ACS BK ,100,000 US4041A1AA BK SCOTLAND ,730,000 XS B.N.G , ,000 DE000HBE0EZ HYP.BK.ESSEN OPF.E ,200,000 DE000LBW5X LBBW OPF ,160,000 US L US TREASURY ,000,000 XS WORLD BK ,000 Vienna, May 7, 2009 Page 11