(LF) Fund of Funds A mutual investment fund organised under the laws of the Grand Duchy of Luxembourg

Transcription

1 (LF) Fund of Funds A mutual investment fund organised under the laws of the Grand Duchy of Luxembourg Annual Report Audited December 31, 2013 RCS Number: 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. Past performance is not necessarily an indication of future performance.

2 Table of Contents Organisation of the Fund 3 Board of Directors of the Management Company 4 Activity Report 5 Audit Report 9 Statement of Net Assets 11 Statement of Operations 12 Statement of Changes in Net Assets 13 Schedule of investments (LF) Fund of Funds - Equity Blend 14 (LF) Fund of Funds - BRIC 15 (LF) Fund of Funds - Balanced Blend 16 (LF) Fund of Funds - Real Estate 17 (LF) Fund of Funds - New Frontiers 18 (LF) Fund of Funds - Dynamic Fixed Income 19 (LF) Fund of Funds - Global Low 20 (LF) Fund of Funds - Global Medium 21 (LF) Fund of Funds - Global High 22 Notes to the financial statements 23 Further unaudited information 31 2

3 (LF) Fund of Funds Organisation of the Fund Management Company Eurobank Fund Management Company (Luxembourg) S.A. 5, rue Jean Monnet L-2180 Luxembourg Grand Duchy of Luxembourg Custodian, Administrative, Registrar, Transfer, Luxembourg Paying and Domiciliation Agent Eurobank Private Bank Luxembourg S.A. 5, rue Jean Monnet L-2180 Luxembourg Grand Duchy of Luxembourg Investment Manager Eurobank Asset Management Mutual Fund Management Company S.A. 10, Stadiou Str., GR Athens Greece Auditor PricewaterhouseCoopers, Société coopérative 400, Route d Esch B.P L-1014 Luxembourg Grand Duchy of Luxembourg Distributor Eurobank Ergasias S.A. 8, Othonos Street Athens Greece 3

4 (LF) Fund of Funds Board of Directors of the Management Company Mr. Ioannis Kontopoulos Chairman (Since 29 th November 2013) Chief Executive Officer President of the Board of Directors Eurobank Asset Management Mutual Fund Management Company S.A., Greece Mr. Konstantinos Morianos Chairman (Until 29 th November 2013) Managing Director President of the Board of Directors Eurobank Asset Management Mutual Fund Management Company S.A., Greece Mr. Georgios Vlachakis Managing Director Eurobank Fund Management Company (Luxembourg) S.A., Grand Duchy of Luxembourg Mrs. Eleni Laskari Managing Director Eurobank Private Bank Luxembourg S.A., Grand Duchy of Luxembourg Mr Fokion Karavias General Manager Capital Market & Wealth Management Eurobank Ergasias S.A., Greece Mr. Agamemnon Kotrozos General Manager Eurobank Fund Management Company (Luxembourg) S.A., Grand Duchy of Luxembourg Director Director Director Director 4

5 Activity Report (LF) Fund of Funds - Equity Blend Among the major global equity markets the winners for 2013, in euro terms, were clearly Nasdaq and US equities, NIKKEI and Japanese equities, German and Greek equities followed by European equities, all outperforming the MSCI World All Country index. On the other hand, the losers included emerging markets at large. In this bullish environment, (LF) Fund of Funds - Equity Blend / Eurobank class recorded an annual return of % for the year ending December 31, During the same period, the composite index used as the FOF s Benchmark returned %. Throughout the year we kept an overweight stance with more emphasis in the US and Europe (including Greece) and later in the year in Japan versus emerging markets and cash. During the period between March and August our exposure to emerging markets was significantly reduced to less than half compared to the beginning of the year and stayed there to year end. Also, we have raised Japan to neutral since April. During the year, our overall equity exposure ranged between 90.5% and 94.4% that is 0.5% -4.4% in excess of the benchmark. (LF) Fund of Funds - BRIC 2013 has been a bad year for emerging markets, particularly since last May. However, that came with a lot of diversity and noise from currencies that were massively affected by fears of a reversal in US/FED policy, the tapering talk. In this daunting environment, (LF) Fund of Funds - BRIC / Eurobank class recorded an annual return of -7.07% for the year ending December 31, 2013, compared to % for the Benchmark (MSCI BRIC). Strategy wise, we kept a rather bearish equity exposure (average 94.80% or -5.20% Vs Benchmark) with a neutral bias towards China (Greater China - including Singapore and Taiwan traded stocks) throughout the year. We were underweight in all the other three regions and particularly more so in Brazil. Nonetheless, most of the year s outperformance can be attributed to fund selection and tactical positioning (active management) among the funds in the portfolio. 5

6 Activity Report (continued) (LF) Fund of Funds - Balanced Blend 2013 has been a very successful year for the Fund. Both our major investment themes for the year, namely preference to risk and Euro periphery reversal paid-off. In this highly stimulating environment, (LF) Fund of Funds Balanced Blend / Eurobank class recorded a +8.41% annual return, compared to +3.82% of the composite index used as the FOF s Benchmark. Furthermore, in September we updated the FOF s benchmark index in the prospectus by allocating more to the equity component and less to the fixed income one, a strategy proposition we feel more comfortable with in order to achieve the Fund s long term investment objectives. Additionally, we have substituted the real estate component with a more suitable index. Since September 16, 2013 the new benchmark for risk and performance comparisons is as follows: 40% MSCI ACWI (previously 25%) 45% BofAML EMU Broad Mkt (previously 60%) 10% DJUBS Commodities (unchanged) 5% FTSE EPRA/NAREIT Developed (substituting the formerly used DJ Global Select Real Estate Securities Total Return ) In terms of strategy, throughout 2013 we kept an overweight position in equities and REITS and an underweight one in fixed income and commodities. Within fixed income, we were overweight corporate bonds and high yields versus sovereigns (as -Gov yields have reached record lows, particularly in the -core). Furthermore, we kept an active preference for Euro periphery and especially Greek Government Bonds an investment position we had initiated - against all odds - back in the fall of 2012 and since last March we added Greek equities. Both investments (approximately 6.58% of total assets) have contributed to the solid outperformance of the Fund, while at the same time we have managed to keep the overall risk profile virtually unchanged. 6

7 Activity Report (continued) (LF) Fund of Funds - Real Estate 2013 has been a reversal year for the real estate as an asset class, particularly in US/North America. Global R/E securities and companies massively underperformed global equities (MSCI ACWI). The fear of a US/FED tapering and rise in longer term rates and yields put a sharp pause in the sector s recovery rally. Amongst the developed world, US/North America suffered the most. In this daunting environment, (LF) Fund of Funds - Real Estate / Eurobank class recorded an annual return of -3.55% for the year ending December 31, 2013, compared to -5.20% of the composite index used as the FOF s Benchmark (50% FTSE EPRA/NAREIT Developed Index + 50% FTSE EPRA/NAREIT N America Index). During the year, we were underweight in US/North America (more so in the first half) and neutral to positive in Europe and Asia. Overall, we kept the fund invested with an average 92.10% exposure to equities (between 85%-95.70%). (LF) Fund of Funds - New Frontiers Although 2013 has been a bad year for emerging markets at large, Frontier Markets were an outstanding exception with stellar returns, particularly in the MENA region on the back of the forthcoming emerging market status upgrade of UAE and Qatar. As MENA represents between 69% and 78% of the benchmark, our more cautious stance to the region has cost us some points. In such an overwhelming investment environment, (LF) Fund of Funds New Frontiers / Eurobank class recorded a % annual return, compared to % of the benchmark (MSCI Frontier Markets). Throughout the year we kept the fund invested with an average 88.2% exposure to equities (between 83% - 92%). (LF) Fund of Funds - Dynamic Fixed Income The Fund invests in at least 10 of the top ranked fixed income funds according to our selection process and unless required, each of the selected investment carries an equal weight (at rebalancing). Rebalancing takes place at least four times a year, within the first month of each calendar quarter, or more often if so is deemed necessary. It has been our intention to keep the Fund fully invested. So, during 2013, at least 95% of the Fund s total assets were invested in funds and/or ETFs according to its investment objective. 7

8 Activity Report (continued) (LF) Fund of Funds - Dynamic Fixed Income (continued) [Benchmark (only for risk and performance comparison) is BofAML Global Broad Market Index <GBMI Index>]. In an increasingly unfriendly environment for fixed income investors, (LF) Fund of Funds Dynamic Fixed Income / Eurobank I class (its only active class) recorded a +0.49% annual return, compared to -6.86% of its benchmark. In all cases, returns are in Euro ( ) unless otherwise specified or required by Sub-fund s primary currency. All currency translations into Euro have been done by applying the relevant ECB Ref Rate. All market, index, and Sub-fund (Eurobank Class) return data is from Bloomberg. All return calculations for the benchmark and/or composite benchmark have been provided by Eurobank Asset Management M.F.M.C. internal system which again uses Bloomberg as source of raw data. (LF) Fund of Funds - Global Low The Fund was launched in September 16, 2013; therefore, there is a very short period of time during which the portfolio was building positions according to its investment objective. Since the Fund had been running for much less than a year no comments on performance is disclosed as of December 31 st. (LF) Fund of Funds - Global Medium The Fund was launched in September 16, 2013; therefore, there is a very short period of time during which the portfolio was building positions according to its investment objective. Since the Fund had been running for much less than a year no comments on performance is disclosed as of December 31 st. (LF) Fund of Funds - Global High The Fund was launched in September 16, 2013; therefore, there is a very short period of time during which the portfolio was building positions according to its investment objective. Since the Fund had been running for much less than a year no comments on performance is disclosed as of December 31 st. The figures stated in this report are historical and not necessarily indicative of future performance. Luxembourg, February 15,

9 Audit report To the Unitholders of (LF) Fund of Funds We have audited the accompanying financial statements of (LF) Fund of Funds and of each of its subfunds, which comprise the statement of net assets and the statement of investments as at 31 December 2013 and the statement of operations and the statement of changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the Management Company for the financial statements The Board of Directors of the Management Company is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the Management Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the Réviseur d entreprises agréé Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the Réviseur d entreprises agréé, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Réviseur d entreprises agréé considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the Management Company, as well as evaluating the overall presentation of the financial statements. PricewaterhouseCoopers, Société coopérative, 400 Route d Esch, B.P. 1443, L-1014 Luxembourg T: , F: , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) R.C.S. Luxembourg B TVA LU

10 pwc We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of (LF) Fund of Funds and of each of its sub-funds as of 31 December 2013, and of the results of their operations and changes in their net assets4 for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other matters Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. PricewaterhouseCoopers, Société coopérative Luxembourg, April 29, 2014 Represented by Thierry Blondeau 10

11 Statement of Net Assets (LF) Fund of Funds (LF) Fund of Funds - Equity Blend (LF) Fund of Funds - BRIC (LF) Fund of Funds - Balanced Blend (LF) Fund of Funds - Real Estate (LF) Fund of Funds - New Frontiers (LF) Fund of Funds - Dynamic Fixed Income (LF) Fund of Funds - Global Low (LF) Fund of Funds - Global Medium (LF) Fund of Funds - Global High Consolidated Currency Notes EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Assets Securities portfolio at market value Cash at bank Formation expenses Receivable on interest and dividends Receivable on subscriptions Other assets Total assets Liabilities Subscription in advance Other payable and accrued expenses Total liabilities Total net assets at the end of the year Information summary Units outstanding Eurobank Units outstanding Eurobank USD Units outstanding Eurobank I Units outstanding Interamerican Units outstanding Postbank Units outstanding Postbank BGN Units outstanding Postbank USD Units outstanding Polbank EUR Units outstanding Polbank PLN Units outstanding Bancpost Net asset value per unit : Eurobank EUR EUR EUR EUR EUR EUR EUR EUR Net asset value per unit : Eurobank USD USD USD USD USD USD Net asset value per unit : Eurobank I EUR EUR EUR EUR Net asset value per unit : Interamerican - EUR EUR EUR Net asset value per unit : Postbank EUR EUR EUR EUR Net asset value per unit : Postbank BGN BGN BGN Net asset value per unit : Postbank USD USD Net asset value per unit : Polbank EUR Net asset value per unit : Polbank PLN Net asset value per unit : Bancpost EUR EUR EUR EUR Cost of securities portfolio PCS Total net assets at year ended: /12/ /12/ /12/ N.A.V. per unit at year ended "Eurobank" unit : N.A.V. per unit at year ended "Eurobank USD" unit : N.A.V. per unit at year ended "Eurobank I" unit : N.A.V. per unit at year ended "Interamerican" unit : N.A.V. per unit at year ended "Postbank" unit : N.A.V. per unit at year ended "Postbank BGN" unit : N.A.V. per unit at year ended "Postbank USD" unit : N.A.V. per unit at year ended "Polbank EUR" unit : N.A.V. per unit at year ended "Polbank PLN" unit : N.A.V. per unit at year ended "Bancpost" unit : 31/12/2011 EUR EUR EUR EUR EUR /12/2012 EUR EUR EUR EUR EUR /12/2013 EUR EUR EUR EUR EUR EUR EUR EUR /12/2011 USD USD USD USD USD /12/2012 USD USD USD USD USD /12/2013 USD USD USD USD USD /12/2011 EUR EUR EUR /12/2012 EUR EUR EUR EUR /12/2013 EUR EUR EUR EUR /12/ EUR EUR EUR /12/ EUR EUR EUR /12/ EUR EUR EUR /12/2011 EUR EUR EUR EUR /12/2012 EUR EUR EUR EUR /12/2013 EUR EUR EUR EUR /12/2011 BGN BGN /12/2012 BGN BGN /12/2013 BGN BGN /12/ USD /12/ USD /12/ USD /12/ EUR /12/ EUR /12/ /12/ PLN PLN PLN /12/ PLN PLN PLN /12/ /12/2011 EUR EUR EUR EUR /12/2012 EUR EUR EUR EUR /12/2013 EUR EUR EUR EUR The accompanying notes form an integral part of these financial statements. 11

12 Statement of Operations for the year ended December 31, (LF) Fund of Funds (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - Consolidated Equity Blend BRIC Balanced Blend Real Estate New Frontiers Dynamic Fixed Income Global Low Global Medium Global High Currency Notes EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Income Income on portfolio / dividends Bank interest Other income Expenses Management fees Custodian fees Subscription tax Other expenses Other taxes Brokerage and transaction fees Net investment gains/(losses) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) Net realised gains/(losses) ( ) on portfolio ( ) on currencies ( ) ( ) ( ) Net realised gains/(losses) for the year ( ) ( ) ( ) ( ) ( ) ( ) Change in net unrealised appreciation / (depreciation) ( ) ( ) on portfolio ( ) ( ) on currencies 2 ( ) ( ) ( ) (252.27) ( ) Result of operations for the year ( ) ( ) The accompanying notes form an integral part of these financial statements 12

13 Statement of Changes in Net Assets For the year ended December 31, (LF) Fund of Funds (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - Consolidated Equity Blend BRIC Balanced Blend Real Estate New Frontiers Dynamic Fixed Income Global Low Global Medium Global High Currency EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Total net assets at the beginning of the year Net investment gains (losses) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) Net realised gains/(losses) ( ) Change in net unrealised appreciation / (depreciation) ( ) ( ) Movement on capital account ( ) ( ) ( ) Subscriptions Redemptions ( ) ( ) ( ) ( ) ( ) ( ) - ( ) ( ) ( ) Total changes in net assets ( ) ( ) Total net assets at the end of the year Units in issue Units outstanding at the beginning of year 2011 Eurobank Units outstanding at the beginning of year 2011 Eurobank USD Units outstanding at the beginning of year 2011 Eurobank I Units outstanding at the beginning of year 2011 Interamerican Units outstanding at the beginning of year 2011 Postbank Units outstanding at the beginning of year 2011 Postbank BGN Units outstanding at the beginning of year 2011 Postbank USD Units outstanding at the beginning of year 2011 Polbank EUR Units outstanding at the beginning of year 2011 Polbank PLN Units outstanding at the beginning of year 2011 Bancpost Units outstanding at the end of year 2011 Eurobank Units outstanding at the end of year 2011 Eurobank USD Units outstanding at the end of year 2011 Eurobank I Units outstanding at the end of year 2011 Interamerican Units outstanding at the end of year 2011 Postbank Units outstanding at the end of year 2011 Postbank BGN Units outstanding at the end of year 2011 Postbank USD Units outstanding at the end of year 2011 Polbank EUR Units outstanding at the end of year 2011 Polbank PLN Units outstanding at the end of year 2011 Bancpost Units outstanding at the beginning of year 2012 Eurobank Units outstanding at the beginning of year 2012 Eurobank USD Units outstanding at the beginning of year 2012 Eurobank I Units outstanding at the beginning of year 2012 Interamerican Units outstanding at the beginning of year 2012 Postbank Units outstanding at the beginning of year 2012 Postbank BGN Units outstanding at the beginning of year 2012 Postbank USD Units outstanding at the beginning of year 2012 Polbank EUR Units outstanding at the beginning of year 2012 Polbank PLN Units outstanding at the beginning of year 2012 Bancpost Units outstanding at the end of year 2012 Eurobank Units outstanding at the end of year 2012 Eurobank USD Units outstanding at the end of year 2012 Eurobank I Units outstanding at the end of year 2012 Interamerican Units outstanding at the end of year 2012 Postbank Units outstanding at the end of year 2012 Postbank BGN Units outstanding at the end of year 2012 Postbank USD Units outstanding at the end of year 2012 Polbank EUR Units outstanding at the end of year 2012 Polbank PLN Units outstanding at the end of year 2012 Bancpost Units outstanding at the beginning of year 2013 Eurobank Units outstanding at the beginning of year 2013 Eurobank USD Units outstanding at the beginning of year 2013 Eurobank I Units outstanding at the beginning of year 2013 Interamerican Units outstanding at the beginning of year 2013 Postbank Units outstanding at the beginning of year 2013 Postbank BGN Units outstanding at the beginning of year 2013 Postbank USD Units outstanding at the beginning of year 2013 Polbank EUR Units outstanding at the beginning of year 2013 Polbank PLN Units outstanding at the beginning of year 2013 Bancpost Units outstanding at the end of year 2013 Eurobank Units outstanding at the end of year 2013 Eurobank USD Units outstanding at the end of year 2013 Eurobank I Units outstanding at the end of year 2013 Interamerican Units outstanding at the end of year 2013 Postbank Units outstanding at the end of year 2013 Postbank BGN Units outstanding at the end of year 2013 Postbank USD Units outstanding at the end of year 2013 Polbank EUR Units outstanding at the end of year 2013 Polbank PLN Units outstanding at the end of year 2013 Bancpost The accompanying notes form an integral part of these financial statements 13

14 (LF) Fund of Funds - Equity Blend Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR (LF) EQUITY - DYNAMIC ROMANIAN FUND % EUR (LF) I EQUITY- GLOBAL EQUTIES FUND % EUR (LF) I EQUITY FLEXI STYLE FUND % EUR (LF)I EQUITY - GREEK EQUITIES % EUR (LF)I EQUITY- EMERGING EUROPE FUND % EUR BGF - EUROPEAN VALUE (D ) % EUR BGF EUROPEAN FOCUS FD % EUR EUROBANK GLOBAL EQUITIES FUND % EUR FIDELITY FDS-EURO SM-Y ACC % EUR INVESCO PAN EUROPEAN EQUITY C % EUR PIONEER FDS US PIONEER (I-Acc- ) % EUR SCHRODER INTL EUROPEAN EQ ALPHA (C-Acc) % EUR SCHRODER INTL JAPANESE EQ ALPHA (C -Acc) % EUR SILK-ROAD FRONTIERS FUND % EUR TEMPLETON ASIAN GROWTH FUND (I ) % % USD FF GLOBAL OPPORTUNITIES FUND (Y$-ACC) % USD FIDELITY FNDS-LATIN AM-Y AC$ % USD FIDELITY FUNDS-AMERICA-Y ACC % USD FRANKLIN U.S. OPPORTUNITIES FUND (I$) % USD INVESCO JAPANESE EQUITY CORE (C-$Acc) % USD M&G GLOBAL BASICS FD (C$-ACC) % USD MORGAN STANLEY US EQUITY GROWTH (Z$-Acc) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Greece 3.48% Ireland 3.83% Luxembourg 90.13% United Kingdom 2.56% By type of investments Investment Funds % The accompanying notes form an integral part of these financial statements 14

15 (LF) Fund of Funds - BRIC Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR DWS INVEST BRAZILIAN EQS-LC % EUR DWS RUSSIA EQTY FUND ACC % EUR SCHRODER INTL BRIC (C -Acc) % % USD BNY MELLON GL-BRAZIL EQUITY % USD FIDELITY-CHINA FOCUS FUND (Y$-Acc) % USD FIDELITY- INDIA FOCUS FUND (Y$-ACC) % USD FRANKLIN INDIA FUND (I$) % USD HSBC GIF- BRAZIL EQUITY I-C % USD INVESCO GRTER CHINE EQTY - C % USD ISHARES MSCI BRAZIL CAPPED INDEX FUND % USD JPMORGAN GR CHINA-A-A$ % USD JPMORGAN RUSSIA FUND-A$-ACC % USD JPMORGAN INDIA FUND-A-AC$ % USD MORGAN STANLEY INVEST F-INDIAN EQUITY Z$ % USD PARVEST EQUITY BRAZIL-I % USD PF (LUX) GREATER CHINA - I$ % USD PF RUSSIAN EQUITIES (I$-ACC) % USD SCHRODER INTL GREATER CHINA (C$-Acc) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Ireland 4.95% Luxembourg 93.63% United States 1.42% By type of investments Investment Funds % The accompanying notes form an integral part of these financial statements. 15

16 (LF) Fund of Funds - Balanced Blend Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR (LF)I EQUITY- EMERGING EUROPE FUND % EUR (LF) I EQUITY FLEXI STYLE FUND % EUR BGF EUROPEAN FOCUS FD % EUR BGF - EUROPEAN VALUE (D ) % EUR BNY MELLON GL-EUROLAND BF (C -Acc) % EUR EUROBANK I (LF) GREEK GOVMNT BOND % EUR EUROBANK I (LF) ABSOLUTE RETURN FUND % EUR FIDELITY FDS-EURO SM-Y ACC % EUR INVESCO EURO CORPORATE BOND (C-Acc) % EUR INVESCO PAN EUR STRUC EQTY - C % EUR M&G European Corporate Bond (C -Acc) % EUR M&G GLOBAL CONVERTIBLE (C -Acc) % EUR PF EUR CORPORATE BONDS (I -Acc) % EUR PIONEER SF- EURO CURVE 1-3 (I-I ) % EUR PIONEER SF -EURO CURVE 3-5 (I-E) % EUR PIONEER FDS EURO BOND (I-Acc- ) % EUR PIONEER FDS EURO HIGH YLD-I % EUR PIONEER FDS US PIONEER (I-Acc- ) % EUR TEMPLETON ASIAN GROWTH FUND (I ) % % USD BGF - WORLD FIN. EQTY FUND (D$) % USD FF GLOBAL OPPORTUNITIES FUND (Y$-ACC) % USD FIDELITY FNDS-LATIN AM-Y AC$ % USD FIDELITY FUNDS-AMERICA-Y ACC % USD FRANKLIN U.S. OPPORTUNITIES FUND (I$) % USD ING (L) INV - GLOBAL RE (I$) % USD INVESCO JAPANESE EQUITY CORE (C-$Acc) % USD JPM INV-GLB CONV/BLE (USD) (C$-ACC) % USD MORGAN STANLEY GLOBAL PROPERTY (Z$-Acc) % USD MORGAN STANLEY US EQUITY GROWTH (Z$-Acc) % USD PARVEST CONVERTIBLE BOND WORLD % USD SCHRODER ALT SOL COMMODITY (C-Acc-$) % USD SCHRODER ISF-ASIA PACIFIC PROPERTY (C$) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Ireland 9.47% Luxembourg 73.73% United Kingdom 16.80% By type of investments Investment Funds % The accompanying notes form an integral part of these financial statements. 16

17 (LF) Fund of Funds - Real Estate Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR ING L INV-EUROPE RE EST-I % EUR ISHARES EPRA US PROPTY YLD % EUR LYXOR ETF FTSE EPRA/NAREIT United States % EUR LYXOR ETF MSCI WLD REAL EST % % USD ING (L) INV - GLOBAL RE (I$) % USD JANUS CAPITAL GLOBAL RE-I$IN % USD MORGAN STANLEY GLOBAL PROPERTY (Z$-Acc) % USD MORGAN STANLEY SICAV - US PROPERTY FUND % USD NEUBERGER BERMAN US REAL ESTATE % USD SCHRODER ISF-ASIA PACIFIC PROPERTY (C$) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries France 9.62% Ireland 29.10% Luxembourg 47.83% United-States 13.45% By type of investments Investment Funds % The accompanying notes form an integral part of these financial statements. 17

18 (LF) Fund of Funds - New Frontiers Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR BARING ASEAN FRONTIER-I % EUR DB X TRACKERS S& P FRONTIER % EUR FRANKLIN TEMP INV FRONTIER MKTS FND (I ) % EUR (LF) EQUITY - DYNAMIC ROMANIAN FUND % EUR (LF) EQUITY - MENA FUND (ERB I ) % EUR (LF) EQUITY - TURKISH EQUITY FUND % EUR RBS MSCI FRONTIER MKTS % EUR SILK-ROAD FRONTIERS FUND % % USD FTIF-TEMPLETON AFRICA FUND % USD ING (L) INV - MID EAST & NOR AFRICA (I$) % USD POWERSHARES MENA FRONTIER COUNTRIES % USD SCHRODER INTL FRONTIER MKT (C$) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Germany 6.43% Ireland 15.23% Luxembourg 76.33% United-States 2.01% By type of investments Investment Funds % The accompanying notes form an integral part of these financial statements. 18

19 (LF) Fund of Funds - Dynamic Fixed Income Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR EUROBANK I (LF) GREEK GOVMNT BOND % EUR INVESCO GLOBAL TOT RET (EUR) BF (C -Acc) % EUR M&G EUROPEAN INFL/LKD CORP BF (C -Acc) % EUR (LF) MONEY MARKET - CASH FUND (EUR) % EUR PIONEER FDS - EMG MKT BD - I % % USD BNY MELLON GL-GLB DYNAMIC BF (C$-Acc) % USD FT- STRATEGIC INCOME (I ACC$) % USD JPMIF-INCOME OPPORT. (C$-Acc) % USD JPM INV-JPM US BOND-C$ % USD PIMCO GIS Diversified Income Inst USD % USD PIONEER FDS STRATEGIC INCOME (I ) % USD SCHRODER ISF-STRATEGIC BOND (C$) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Ireland 10.79% Luxembourg 79.89% United Kingdom 9.32% By type of investments Investment Funds % The accompanying notes form an integral part of these financial statements. 19

20 (LF) Fund of Funds - Global Low Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR (LF) BOND - GREEK CORP BND FND (ERB I ) % EUR (LF) I EQUITY- GLOBAL EQUTIES FUND % EUR (LF) I - MM FUND RESERVE % EUR (LF) I EQUITY FLEXI STYLE FUND % EUR (LF) MONEY MARKET - CASH FUND (EUR) % EUR EUROBANK I (LF) ABSOLUTE RETURN FUND % EUR EUROBANK I (LF) GREEK GOVMNT BOND % EUR EUROBANK GLOBAL EQUITIES FUND % EUR EUROBANK GLOBAL FOREIGN BOND FUND % EUR EUROBANK I (LF) GLOBAL BOND % EUR HELLENIC T-BILL 11/4/ ZERO COUPON % EUR HELLENIC T-BILL 9/5/ ZERO COUPON % EUR ISHARES MSCI ACWI (ETF) % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Luxembourg 70.96% Greece 29.04% By type of investments Investment Funds % The accompanying notes form an integral part of these financial statements. 20

21 (LF) Fund of Funds - Global Medium Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR (LF) BOND - GREEK CORP BND FND (ERB I ) % EUR (LF) I EQUITY- GLOBAL EQUTIES FUND % EUR (LF) I - MM FUND RESERVE % EUR (LF) I EQUITY FLEXI STYLE FUND % EUR (LF) MONEY MARKET - CASH FUND (EUR) % EUR EUROBANK I (LF) ABSOLUTE RETURN FUND % EUR EUROBANK I (LF) GREEK GOVMNT BOND % EUR EUROBANK GLOBAL EQUITIES FUND % EUR EUROBANK GLOBAL FOREIGN BOND FUND % EUR EUROBANK I (LF) GLOBAL BOND % EUR ISHARES MSCI ACWI (ETF) % EUR ISHARES MCSI NORTH AMERICA % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Luxembourg 61.65% Greece 29.30% Ireland 9.05% By type of investments Investment Funds % The accompanying notes form an integral part of these financial statements 21

22 (LF) Fund of Funds - Global High Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR (LF) BOND - GREEK CORP BND FND (ERB I ) % EUR (LF) EQUITY - MENA FUND (ERB I ) % EUR (LF) I EQUITY- GLOBAL EQUTIES FUND % EUR (LF) I EQUITY FLEXI STYLE FUND % EUR (LF)I EQUITY- EMERGING EUROPE FUND % EUR EUROBANK I (LF) ABSOLUTE RETURN FUND % EUR EUROBANK I (LF) GREEK GOVMNT BOND % EUR EUROBANK GLOBAL EQUITIES FUND % EUR EUROBANK GLOBAL FOREIGN BOND FUND % EUR ISHARES MSCI ACWI (ETF) % EUR ISHARES MCSI NORTH AMERICA % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Luxembourg 49.31% Greece 30.57% Ireland 20.12% By type of investments Investment Funds % The accompanying notes form an integral part of these financial statements 22

23 Notes to the financial statements 1. General (LF) Fund of Funds ( the Fund ) is an open ended investment fund and has been created on September 18, 2006 as a mutual investment fund ( Fonds Commun de Placement ) organised under Part I of the Luxembourg Law of December 17, 2010, as amended relating to undertakings for collective investment (the 2010 Law ). The Fund is managed by Eurobank Fund Management Company (Luxembourg) S.A. (the Management Company ), a company incorporated under the laws of Luxembourg and having its registered office in Luxembourg. The Management Company may issue units in several classes (collectively Classes and each a Class ) in each Sub-Fund having: (i) a specific sales and redemption charge structure and/or (ii) a specific management or advisory fee structure and/or (iii) different distribution, unitholder servicing or other fees and/or (iv) different types of targeted investors or distribution channels and/or (v) a different hedging structure and/or (vi) such other features as may be determined by the Board of Directors from time to time. At the end of period, the following nine Sub-Funds are active. 3 new sub-funds have been launched during the period from January 1, 2013 to December 31, 2013: - (LF) Fund of Funds - Global Low has been launched as of September 16, (LF) Fund of Funds - Global Medium has been launched as of September 16, (LF) Fund of Funds - Global High has been launched as of September 16, 2013 (LF) Fund of Funds - Equity Blend - Eurobank 18/09/2006 (LF) Fund of Funds - Equity Blend - Eurobank (USD) 20/09/2011 (LF) Fund of Funds - Equity Blend - Eurobank I 18/09/2006 (LF) Fund of Funds - Equity Blend - Postbank 18/12/2007 (LF) Fund of Funds - Equity Blend - Postbank (BGN) 03/01/2011 (LF) Fund of Funds - Equity Blend - Bancpost 14/12/2009 (LF) Fund of Funds - BRIC - Eurobank 28/09/2007 (LF) Fund of Funds - BRIC - Eurobank (USD) 20/09/2011 (LF) Fund of Funds - BRIC - Eurobank I 21/09/2007 (LF) Fund of Funds - BRIC - Interamerican 26/11/2007 (LF) Fund of Funds - BRIC - Postbank 18/12/2007 (LF) Fund of Funds - BRIC - Postbank (BGN) 27/09/2007 (LF) Fund of Funds - BRIC - Bancpost 12/10/2009 (LF) Fund of Funds - Balanced Blend - Eurobank 28/01/2008 (LF) Fund of Funds - Balanced Blend - Eurobank (USD) 20/09/2011 (LF) Fund of Funds - Balanced Blend - Eurobank I 03/03/2008 (LF) Fund of Funds - Balanced Blend - Postbank 03/03/