DANSKE INVEST ALLOCATION, SICAV (formerly DANSKE ALLOCATION FUND) Audited Annual Report. as at December 31, 2008

Transcription

1 DANSKE INVEST ALLOCATION, SICAV Audited Annual Report 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 and the most recent semi-annual report if published thereafter.

2 Table of contents Page Management and Administration 3 Information to Shareholders 4 Directors' Report 5 Report of the réviseur d'entreprises 7 Combined Statement of Net Assets 8 Combined Statement of Operations and Changes in Net Assets 10 Changes in the Number of Shares and Statistics 12 DANSKE INVEST ALLOCATION, SICAV - STABLE Statement of Investments 14 Geographical and Economic Portfolio Breakdowns 16 DANSKE INVEST ALLOCATION, SICAV - DYNAMIC Statement of Investments 17 Geographical and Economic Portfolio Breakdowns 19 DANSKE INVEST ALLOCATION, SICAV - EQUITY OPPORTUNITIES Statement of Investments 20 Geographical and Economic Portfolio Breakdowns 21 DANSKE INVEST ALLOCATION, SICAV - DANISH BOND Statement of Investments 22 Geographical and Economic Portfolio Breakdowns 23 DANSKE INVEST ALLOCATION, SICAV - DANISH MORTGAGE BOND Statement of Investments 24 Geographical and Economic Portfolio Breakdowns 25 Notes to the Financial Statements 26 2

3 Management and Administration BOARD OF DIRECTORS Torben KRAG Chairman of the Board of Directors Deputy General Manager of Danske Bank International S.A. (resigned from Danske Bank International S.A. on January 1, 2009) Luxembourg (Grand Duchy of Luxembourg) Mads JENSEN First Vice President of Danske Bank A/S Copenhagen - Denmark Klaus EBERT Head of Fund Products of Danske Bank International S.A. Luxembourg (Grand Duchy of Luxembourg) DULY AUTHORIZED OFFICERS Peter DYHR Chief Fund Administration Officer of Danske Bank International S.A. Luxembourg (Grand Duchy of Luxembourg) AUDITOR Deloitte S.A. 560, rue de Neudorf, L-2220 Luxembourg (Grand Duchy of Luxembourg) REGISTRAR AND TRANSFER AGENT Danske Bank International S.A. 13, rue Edward Steichen L Luxembourg (Grand Duchy of Luxembourg) REGISTERED OFFICE 13, rue Edward Steichen L Luxembourg (Grand Duchy of Luxembourg) DISTRIBUTOR Danske Bank International S.A. 13, rue Edward Steichen L Luxembourg (Grand Duchy of Luxembourg) Hans-Erik RIBBERHOLT Head of Danske Capital (Danske Bank International S.A.) Luxembourg (Grand Duchy of Luxembourg) John Løvig NIELSEN Senior Portfolio Manager of Danske Capital (Danske Bank International S.A.) Luxembourg (Grand Duchy of Luxembourg) CUSTODIAN BANK AND CENTRAL ADMINISTRATION AGENT RBC Dexia Investor Services Bank S.A. 14, Porte de France, L-4360 Esch-sur-Alzette (Grand Duchy of Luxembourg) INVESTMENT MANAGERS Danske Bank International S.A. 13, rue Edward Steichen L Luxembourg (Grand Duchy of Luxembourg) Danske Bank A/S (acting through its division Danske Capital) Strødamvej 46 DK-2100 Copenhagen Ø Denmark 3

4 Information to Shareholders Information about the Net Asset Value of the shares of each Sub-Fund and about the issue and redemption prices is available at all times at the registered office of the SICAV. Copies of the annual and semi-annual reports may be obtained by holders of shares from the registered office of the SICAV. A detailed schedule of portfolio changes is available free of charge upon request at the registered office of the SICAV. 4

5 Director s Report REPORT OF THE BOARD OF DIRECTORS Significant events during the year 2008 At the Annual General Meeting held on 7 April 2008, Mr. Torben Krag (Danske Bank International S.A.), Mr. Mads Jensen (Danske Bank A/S) and Mr. Klaus Ebert (Danske Bank International S.A.) were duly re-elected as Board Members. At an extraordinary general meeting held on 14 November 2008 it was resolved to change the name from Danske Allocation Fund to Danske Invest Allocation with effect from 15 November This name change was carried out to support the Danske Bank Group s decision to brand all its retail investment fund products Danske Invest and as a result the Prospectus and the Articles of Incorporation were updated to be effective as of 15 November Securities Lending Activities On 6 March 2007 Danske Allocation Fund, SICAV entered into a Securities Lending Agreement with RBC Dexia Investor Services Netherlands N.V. As a result of some reorganisations within the RBC Dexia Group, the Securities Lending Agreement with RBC Dexia Investor Services Netherlands NV was terminated and replaced by a new Securities Lending Agency Agreement between Danske Invest Allocation, SICAV and RBC Dexia Investor Services Trust, Canada with effect from 1 September Performance 2008 At the year-end the SICAV managed a total of five Sub-Funds: Danske Invest Allocation Stable; Danske Invest Allocation Dynamic; Danske Invest Allocation Equity Opportunities Class A and Diversified Global Equities Class PM; Danske Invest Allocation Danish Bond Class A and Class D; Danske Invest Allocation Danish Mortgage Bond Class A and Class D The performance for the year 2008 for each Sub-Fund is as follows: Danske Invest Allocation Stable: The net asset value per share of this Sub-Fund decreased from EUR to EUR at the year-end. The yield for 2008 is therefore %. Danske Invest Allocation Dynamic: The net asset value per share of this Sub-Fund decreased from EUR to EUR at the year-end. The yield for 2008 is therefore %. Danske Invest Allocation Equity Opportunities Class A: The net asset value per share of this Sub-Fund Class A decreased from EUR to EUR at the year-end. The yield for 2008 is therefore %. Danske Invest Allocation Equity Opportunities Diversified Global Equities - Class PM: The net asset value per share of this Sub-Fund Class PM decreased from EUR to EUR at the year-end. The yield for 2008 is therefore %. 5

6 Director s Report (continued) Danske Invest Allocation Danish Bond Class A: The net asset value per share of this Sub-Fund Class A increased from DKK to DKK at the year-end. The yield for 2008 is therefore 4.73%. Danske Invest Allocation Danish Bond Class D: The net asset value per share of this Sub-Fund Class D increased from DKK to DKK at the year-end. The yield for 2008 is 4.75% taking into account the dividend of DKK 2.00 per share paid on April 16, The Board of Directors proposes a dividend for 2009 of DKK 3.00 per share. This dividend will be paid out in April Danske Invest Allocation Danish Mortgage Bond Class A: The net asset value per share of this Sub-Fund Class A increased from DKK to DKK at the year-end. The yield for 2008 is therefore 7.87%. Danske Invest Allocation Danish Mortgage Bond Class D: The net asset value per share of this Sub-Fund Class D increased from DKK to DKK at the year-end. The yield for 2008 is 7.91% taking into account the dividend of DKK 3.00 per share paid on April 16, 2008 and the dividend of DKK 3.00 per share paid on August 19, The Board of Directors proposes a dividend for 2009 of DKK 6.00 per share to be paid out with DKK 3.00 per share in April 2009 and DKK 3.00 per share in August At the year-end aggregate net assets amounted to EUR million, a decrease of EUR million. The decrease is due to total net redemptions of EUR million and the total net loss for the year amounted to EUR 69,865,398. Due to the prevailing market conditions during the year, the Board of Directors considers the performance to be satisfactory. Luxembourg, January 31, 2009 The Board of Directors 6

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8 Combined Statement of Net Assets Note Stable Dynamic Equity Opportunities Danish Bond EUR EUR EUR DKK ASSETS Investment portfolio at market value (2) 93,905,893 25,617,028 30,636,635 50,063,896 Cash at bank 796, ,770 2,254, ,474 Amounts receivable on sale of investments 5,334 Interest and dividends receivable 219,193 61,492 61, ,141 Net unrealised profit on forward foreign exchange contracts (9) 44,935 26,400 32,578 Other assets TOTAL ASSETS 94,966,606 26,183,282 32,986,029 51,324,511 LIABILITIES Bank overdraft 231, ,995 Interest Payable 343 Amounts payable on redemptions 484,070 32, ,215 Net unrealised loss on futures contracts (8) 11,520 Management commission payable (3) 133, ,594 28, ,115 Taxes and expenses payable (7) 81,504 23,365 27,662 39,096 TOTAL LIABILITIES 930, , , ,206 TOTAL NET ASSETS 94,035,749 26,002,737 32,793,164 50,917,305 Net asset value per share Accumulation Class A Accumulation Class PM Distribution Class D Number of shares outstanding Accumulation Class A 4,714, ,489, , , Accumulation Class PM 1,550, Distribution Class D 75,

9 Combined Statement of Net Assets (continued) Danish Mortgage Bond Combined DKK EUR 51,021, ,723, ,702 3,692,073 5, , , ,913 1,227 52,356, ,048, , ,871 11, , ,217 40, , ,685 1,380,065 52,198, ,667, , ,

10 Combined Statement of Operations and Changes in Net Assets for the Year ended December 31, 2008 Note Stable Dynamic Equity Opportunities Danish Bond EUR EUR EUR DKK NET ASSETS AT THE BEGINNING OF THE YEAR 188,865,181 58,533,706 77,491,334 67,732,911 INCOME Dividends, net (2) 486,401 97,560 64,216 Interest on bonds, net (2) 517, ,648 2,889,099 Bank interest, net (2) 106,610 32,413 69,625 60,159 Income on Securites Lendings 79 Other income 13,999 8,128 9,605 TOTAL INCOME 1,124, , ,446 2,949,258 EXPENSES Investment management fees (3) 717, , , ,165 Distributor fees (4) 249,033 73,339 93,006 Central administration, custodian fees and compliance fees (5) 1,000 1, ,109 Audit, printing and publication expenses 14,095 9,155 8,896 51,855 Subscription tax (6) 17,914 5,724 6,419 26,648 Bank charges 4,406 2,726 4,208 5,978 Bank interest 24,028 7,789 10, Other charges 3,770 3,770 3,770 20,059 TOTAL EXPENSES 1,032, , , ,278 NET INCOME PROFIT/(LOSS) FROM INVESTMENTS 92,674 (255,984) (160,667) 2,298,980 Net realised (loss) on sale of investments (2) (3,955,388) (1,019,482) (355,764) (1,286,937) Net realised (loss) on forward foreign exchange contracts (2) (1,190,576) (692,169) (721,164) Net realised profit/(loss) on futures (2) (1,055,520) (64,520) (5,451,048) (148,281) Net realised profit/(loss) on foreign exchange (2) 171,199 65,985 18,542 (690) NET REALISED PROFIT/(LOSS) (5,937,611) (1,966,170) (6,670,101) 863,072 Change in net unrealised appreciation/(depreciation) on: - investments (23,756,580) (12,626,464) (19,836,458) 1,685,015 - forward foreign exchange contracts 44,935 26,400 32,578 - futures 65,660 11,540 (162,251) (56,152) NET INCREASE/DECREASE IN NET ASSETS AS A RESULT OF OPERATIONS (29,583,596) (14,554,694) (26,636,232) 2,491,935 MOVEMENTS IN CAPITAL Subscriptions of shares 693,791 5,498, ,571 Redemption of shares (65,245,836) (18,670,066) (23,560,295) (19,693,638) Dividend paid (212,474) Currency translation NET ASSETS AT THE END OF THE YEAR 94,035,749 26,002,737 32,793,164 50,917,305 10

11 Combined Statement of Operations and Changes in Net Assets (continued) for the Year ended December 31, 2008 Danish Mortgage Bond Combined DKK EUR 71,606, ,574, ,177 2,898,006 1,414,937 22, , ,732 2,920,524 2,314, ,178 1,443, ,378 44,207 14,082 51,855 46,062 27,936 37,381 6,664 13,036 42,746 20,059 16, ,899 2,029,107 2,243, ,560 (1,449,642) (5,697,834) (2,603,909) 434,540 (6,532,677) (2,330) 255,321 1,226,193 (14,293,540) 3,057,165 (55,583,186) 103,913 (92,586) 4,283,358 (69,865,398) 1,254,123 6,440,747 (22,951,730) (113,198,448) (1,993,710) (296,031) 12,295 52,198, ,667,975 11

12 Changes in the Number of Shares for the Year ended December 31, 2008 Stable Dynamic Equity Opportunities Accumulation Class A Number of units outstanding at the beginning of the year 7,607, ,328, ,254, Number of units issued 31, , Number of units redeemed (2,893, ) (870, ) (654, ) Number of units outstanding at the end of the year 4,714, ,489, , Accumulation Class PM Number of units outstanding at the beginning of the year 1,822, Number of units issued 208, Number of units redeemed (480, ) Number of units outstanding at the end of the year 1,550, Accumulation Class D Number of units outstanding at the beginning of the year Number of units issued Number of units redeemed Number of units outstanding at the end of the year Statistics Stable Dynamic Equity Opportunities EUR EUR EUR Total Net Asset Value December 31, ,035,749 26,002,737 32,793,164 December 31, ,865,181 58,533,706 77,491,334 December 31, ,251,188 79,312,006 87,270,194 NAV per unit at the end of the year December 31, 2008 Accumulation Class A Accumulation Class PM Distribution D December 31, 2007 Accumulation Class A Accumulation Class PM Distribution D December 31, 2006 Accumulation Class A Accumulation Class PM Distribution D 12

13 Changes in the Number of Shares for the Year ended December 31, 2008 (continued) Danish Bond Danish Mortgage Bond 492, , (90, ) (154, ) 407, , , , , (105, ) (88, ) 75, , Statistics (continued) Danish Bond Danish Mortgage Bond DKK DKK 50,917,305 52,198,613 67,732,911 71,606, ,974, ,297,

14 Stable Statement of Investments (expressed in EUR) Description Quantity / Face value Currency Cost Evaluation % net assets Transferable Securities Admitted To An Official Stock Exchange Listing Bonds Denmark Nykred.realkr.tv d/rbt 79,688 DKK 10,550 10, Nykredit Tv S.33d 19,201,808 DKK 2,542,160 2,482, Realkr.danmark 5% Oa 19,901,793 DKK 2,620,339 2,551, Realkr.danmark 5% 04-38/rbt 10,579 DKK 1,393 1, Realkredit 7% /rbt 14,257 DKK 1,901 1, Realkredit Dnmrk 7% ,985,744 DKK 931, , ,108,080 5,995, Sweden Spintab 4% N ,000,000 SEK 4,259,502 3,735, ,259,502 3,735, Total - Bonds 10,367,582 9,730, Total - Transferable Securities Admitted To An Official Stock Exchange Listing 10,367,582 9,730, Other Investments Investments Funds Bermuda Islands Green Way Special Opport.-b-* 800 EUR 1,158,472 1,183, ,158,472 1,183, Cayman Islands Occam Cirrus Fund -a- 1,000 EUR 1,000, , Occam Sorbus Fund -a- 1,000 EUR 1,000, , Thames Riv.gl/-a-eu Kings.seg. 683 EUR 2,255,267 2,043, ,255,267 3,676, Finland Evli Greater Russia -b-/cap 1,331 EUR 400,000 94, ,000 94, Ireland Gavekal As.abs.return Ucits-a- 11,013 EUR 1,500,000 1,006, Sgam A.i.premium Fd/cl.-c-* 3,211 EUR 3,999,999 4,112, Thames River/high Inc/euro Dist 480,989 EUR 5,575,689 4,290, Tradit./tha.ri.h.inc/cap N.eur 139,785 EUR 1,690,000 1,167, Traditional Fd-gl Emmk Usd 67,651 USD 712, , ,477,731 10,948, Luxembourg Aberdeen Global - Asia Pacific Fund A2 35,552 USD 1,052, , Danske /gl.high In/reg/acc 50,000 EUR 1,067,125 1,082, Danske Fd/europe -i-/cap 233,475 EUR 2,250,000 1,338, Danske Fund/dan.mortg.bd A Acc 78,532 DKK 1,543,500 1,777, Danske Fund/high Div. A Cap 122,287 EUR 2,293,368 1,590, * see note 10 - Other matters 14

15 Stable Statement of Investments (continued) (expressed in EUR) Quantity / Face value Currency Cost Evaluation % net assets Description Danske Fund/swedish Bd A /acc. 186,004 SEK 3,798,305 3,658, Fast Europe Fd -a- Cap 24,966 EUR 3,755,000 3,441, Fid Japan Div Grwth-a-jpy/cap 153,106 JPY 1,067, , Fidelity Funds./amer.gwth/c.glob-a 169,418 USD 3,655,653 2,018, Fidelity/eur.dyn.gr./a-eur.dis 90,590 EUR 2,844,526 1,453, Frank.temp/japan Fund -a-/cap 42,998 JPY 337, , Ing Itl Ii Sbl Euro -dske-/cap* 198 EUR 9,964,400 7,511, J.b.multibd.absol.ret.-b-/cap 63,837 EUR 6,855,787 7,192, Jpm Fleming./euro.dynamic-a-eur Dis 142,490 EUR 1,555,268 1,211, Jpm Fleming./us Dynamic/gl.cert.-a- 366,036 USD 4,872,151 2,484, Jpm Fleming/eur Dyn.lg-a eur/c 22,928 EUR 4,295,400 6,389, Jpm Fleming/gl.cv Bd Fd/ A Eur Dist 282,780 EUR 2,766,865 2,253, Linde Partners Val.gl.reg/cap 3,000 EUR 311, , Ocean Fd/equit.jap.targ.ii-a- 19,200 JPY 1,423, , Robeco Int/fl.-o-ren.eur-i-cap 19,407 EUR 1,976,965 2,170, Robeco Lux O Rente -i Eur-/cap 83,137 EUR 8,379,640 10,065, Sgam Ai Eq Caxton Eq A1/cap 3,220 USD 2,844,418 1,641, Sgam Fd/eq Us Rel.val.-a-/cap 171,626 USD 3,435,893 1,805, Sisf/euro Corp.bond-c-/reg/cap 109,729 EUR 1,500,000 1,519, ,846,466 63,398, United States Of America Nevsky Fund Ltd/red.pr. -a-usd 268 USD 1,349,484 1,250, Thames River Nevsky Fund Ltd -b- 1,569 EUR 1,205,609 3,625, ,555,093 4,875, Total - Investments Funds 95,693,029 84,175, Total - Other Investments 95,693,029 84,175, Total Investment Portfolio 106,060,611 93,905, * see note 10 - Other matters 15

16 Stable Geographical and economic portfolio Breakdowns (expressed as a percentage of net assets) Geographical breakdown % Luxembourg Ireland Denmark 6.38 United States Of America 5.18 Sweden 3.97 Cayman Islands 3.91 Bermuda Islands 1.26 Finland Economic breakdown % Investment Funds Mortgage & Funding Institutions

17 Dynamic Statement of Investments (expressed in EUR) Description Quantity / Face value Currency Cost Evaluation % net assets Transferable Securities Admitted To An Official Stock Exchange Listing Bonds Denmark Realkr.danmark 5% Oa 4,975,448 DKK 655, , Realkr.danmark 5% 04-38/rbt 2,645 DKK , , Germany Germany 3.25% Sr ,000 EUR 205, , , , Sweden Spintab 4% N.175 7,000,000 SEK 745, , , , Total - Bonds 1,606,416 1,499, Total - Transferable Securities Admitted To An Official Stock Exchange Listing 1,606,416 1,499, Other Investments Investments Funds Bermuda Islands Green Way Special Opport.-b-* 200 EUR 289, , , , Cayman Islands Fidelity Eur.eq.mkt Neutral-a- 3,895 EUR 500, , Occam Cirrus Fund -a- 500 EUR 500, , Occam Sorbus Fund -a- 500 EUR 500, , ,500,000 1,290, Ireland Gavekal As.abs.return Ucits-a- 7,342 EUR 1,000, , Sgam A.i.premium Fd/cl.-c-* 293 EUR 367, , Thames River/high Inc/euro Dist 67,239 EUR 731, , Traditional Fd-gl Emmk Usd 141,452 USD 1,488, , ,588,417 2,423, Luxembourg Aberdeen Global - Asia Pacific Fund A2 23,700 USD 600, , Danske Fd/europe -i-/cap 124,520 EUR 1,200, , Danske Fund/high Div. A Cap 84,972 EUR 1,593,571 1,105, Fast Europe Fd -a- Cap 12,259 EUR 1,634,481 1,689, Fid Japan Div Grwth-a-jpy/cap 134,311 JPY 922, , Fidelity Funds./amer.gwth/c.glob-a 114,241 USD 2,441,822 1,360, Fidelity/eur.dyn.gr./a-eur.dis 5,980 EUR 188,680 95, Ing Itl Ii Sbl Euro -dske-/cap* 25 EUR 1,264, , J.b.multibd.absol.ret.-b-/cap 5,605 EUR 602, , Jpm Fleming./euro.dynamic-a-eur Dis 131,478 EUR 1,482,823 1,117, * see note 10 - Other matters 17

18 Dynamic Statement of Investments (continued) (expressed in EUR) Quantity / Face value Currency Cost Evaluation % net assets Description Jpm Fleming./us Dynamic/gl.cert.-a- 215,225 USD 2,729,032 1,460, Jpm Fleming/eur Dyn.lg-a eur/c 14,359 EUR 2,690,100 4,001, Ocean Fd/equit.jap.targ.ii-a- 12,300 JPY 911, , Robeco Lux O Rente -i Eur-/cap 3,620 EUR 364, , Sgam Ai Eq Caxton Eq A1/cap 1,784 USD 1,602, , Sgam Fd/eq Us Rel.val.-a-/cap 101,086 USD 2,170,882 1,063, Socgen Int.-reg-a- /cap. 218 USD 477, , ,878,866 17,760, Sweden Danske Fd/sverige Fokus 65,268 SEK 1,017, , ,017, , United States Of America Thames River Nevsky Fund Ltd -b- 805 EUR 671,143 1,860, ,143 1,860, Total - Investments Funds 29,945,916 24,117, Total - Other Investments 29,945,916 24,117, Total Investment Portfolio 31,552,332 25,617,

19 Dynamic Geographical and economic portfolio Breakdowns (expressed as a percentage of net assets) Geographical breakdown % Luxembourg Ireland 9.32 United States Of America 7.16 Cayman Islands 4.96 Sweden 4.38 Denmark 2.46 Bermuda Islands 1.14 Germany Economic breakdown % Investment Funds Mortgage & Funding Institutions 4.97 States,provinces And Municipalities

20 Equity Opportunities Statement of Investments (expressed in EUR) Description Quantity / Face value Currency Cost Evaluation % net assets Investments Funds Cayman Islands Fairfield Redstone /-a- 1,292 USD 1,566,895 1,124, Fidelity Eur.eq.mkt Neutral-a- 4,226 EUR 502, , Hamton European Equities Ltd EUR Occam Cirrus Fund -a- 500 EUR 500, , Occam Sorbus Fund -a- 500 EUR 500, , ,068,961 2,455, Finland Danske Financials&invest.kasvu 30,328 EUR 405, , Evli Greater Russia -b-/cap 1,531 EUR 460, , , , Guernsey Liontrust Eur Long-short -a- 7,725 EUR 1,000,000 1,143, ,000,000 1,143, Ireland Gavekal As.abs.return Ucits-a- 7,342 EUR 1,000, , Traditional Fd-gl Emmk Usd 206,027 USD 2,168,495 1,131, Traditional/tha.riv.japan/eur 1 EUR ,168,511 1,802, Luxembourg Aberdeen Global - Asia Pacific Fund A2 31,097 USD 868, , Danske Fd/europe -i-/cap 305,541 EUR 3,055,409 1,751, Danske Fd/high Dividend-i-/cap 196,734 EUR 2,000,000 1,240, Fast Europe Fd -a- Cap 19,636 EUR 2,866,017 2,706, Fid Japan Div Grwth-a-jpy/cap 87,593 JPY 601, , Fid.act.str./japan-a-jpy/cap 5,698 JPY 529, , Fidelity Funds./amer.gwth/c.glob-a 129,870 USD 2,738,003 1,547, Fidelity/eur.dyn.gr./a-eur.dis 44,388 EUR 1,400, , Fidelity/european Aggr.-a-dis EUR Jpm Fleming Iny./eur.recovery-a- 5,055 EUR 976, , Jpm Fleming./euro.dynamic-a-eur Dis 131,213 EUR 1,462,267 1,115, Jpm Fleming./us Dynamic/gl.cert.-a- 394,428 USD 5,086,016 2,677, Jpm Fleming/eur Dyn.lg-a eur/c 11,755 EUR 2,202,203 3,275, Linde Partners Val.gl.reg/cap 5,619 EUR 600, , Ocean Fd/equit.jap.targ.ii-a- 16,400 JPY 1,215, , Sgam Ai Eq Caxton Eq A1/cap 4,201 USD 3,430,327 2,142, Sgam Fd/eq Us Rel.val.-a-/cap 118,815 USD 2,217,542 1,249, Sparinvest/glob.val.-eur R-cap 4,869 EUR 786, , ,036,445 22,438, United States Of America Thames River Nevsky Fund Ltd -b- 1,103 EUR 1,399,043 2,548, ,399,043 2,548, Total - Investments Funds 41,538,689 30,636, Total Investment Portfolio 41,538,689 30,636,

21 Equity Opportunities Geographical and economic portfolio Breakdowns (expressed as a percentage of net assets) Geographical breakdown % Luxembourg United States Of America 7.77 Cayman Islands 7.49 Ireland 5.50 Guernsey 3.49 Finland Economic breakdown % Investment Funds

22 Danish Bond Statement of Investments (expressed in DKK) Description Quantity / Face value Currency Cost Evaluation % net assets Transferable Securities Admitted To An Official Stock Exchange Listing Bonds Denmark Brfkredit 4% ,169,943 DKK 6,026,533 5,720, Brfkredit 4% / Rbt 34,536 DKK 33,733 34, Brfkredit 5% ,174 DKK 21,981 23, Brfkredit 5% ,953,784 DKK 1,853,164 1,959, Brfkredit 5% ,909 DKK 20,295 19, Brfkredit 5% ,728,268 DKK 3,800,545 3,672, Brfkredit 6% ,024,847 DKK 1,062,766 1,028, Brfkredit 6% /rbt 11,415 DKK 11,837 11, Denmark 4% ,000 DKK 101, , Denmark 6% ,000 DKK 654, , Kommunekredit 3% ,000 DKK 291, , Kommunekredit 4% /rbt 18,437 DKK 16,197 18, Kommunekredit 4% S ,563 DKK 862, , Landsbk Realkredit 4% ,564 DKK 442, , Landsbk Realkredit 4%05-35/rbt 2,732 DKK 2,445 2, Nordea Kred.realk.5% ,438 DKK 22,954 22, Nordea Kred.realk.5% ,063,167 DKK 1,087,619 1,063, Nordea Kredit 6% ,562 DKK 15,179 15, Nordea Kredit 6% ,969,156 DKK 4,846,915 4,854, Nykred.tv d Cf 0a 198,160 DKK 195, , Nykred.tv d Cf Oa/rbt 13 DKK Nykredit 6% S.1e 112 DKK Nykredit 6% S.1e 5,999,768 DKK 5,804,775 5,885, Nykredit 6% S.3 C 59,203 DKK 62,105 59, Nykredit 6% S.3 C 2,560,087 DKK 2,685,590 2,581, Realkr.danmark 6% Oa 3,489 DKK 3,478 3, Realkr.danmark 6% Oa 4,937,237 DKK 4,921,191 4,913, Realkredit 5% ,036 DKK 21,839 23, Realkredit 5% ,953,789 DKK 1,852,192 1,958, Realkredit Dan.4% ,700,000 DKK 1,697,145 1,690, Realkredit Dk 5% ,868,352 DKK 3,791,952 3,847, Realkredit Dk 5% /rbt 33,740 DKK 33,074 33, Totalkredit 5% c 28,068 DKK 28,657 28, Totalkredit 5% c 1,121,571 DKK 1,145,124 1,119, Totalkredit 6% S ,120 DKK 534, , Totalkredit 6% s111/rbt 5,389 DKK 5,599 5, Unikredit Real.5% ,754 DKK 33,936 33, Unikredit Real.5% ,450,980 DKK 6,485,652 6,327, ,477,929 50,063, Total - Bonds 50,477,929 50,063, Total - Transferable Securities Admitted To An Official Stock Exchange Listing 50,477,929 50,063, Total Investment Portfolio 50,477,929 50,063,

23 Danish Bond Geographical and economic portfolio Breakdowns (expressed as a percentage of net assets) Geographical breakdown % Denmark Economic breakdown % Mortgage & Funding Institutions States,provinces And Municipalities

24 Danish Mortgage Bond Statement of Investments (expressed in DKK) Description Quantity / Face value Currency Cost Evaluation % net assets Transferable Securities Admitted To An Official Stock Exchange Listing Bonds Denmark Brfkredit 4% ,051,546 DKK 2,889,641 2,818, Brfkredit 4% /rbt 16,193 DKK 15,333 16, Brfkredit 5% ,780 DKK 52,603 52, Brfkredit 5% ,383,645 DKK 9,352,174 9,242, Dansk Ldb Realkr.4% ,763,279 DKK 10,576,117 9,916, Dansk Ldb Realkr.4%03-35/rbt 63,358 DKK 62,256 63, Denmark 4.5% ,500,000 DKK 2,452,500 2,912, Kommkredit 4% (rbg) 500,000 DKK 499, , Kommunekredit 4% /rbt 18,437 DKK 16,197 18, Kommunekredit 4% S ,563 DKK 862, , Landsbk Realkredit 4% ,809,805 DKK 2,707,150 2,402, Landsbk Realkredit 4%05-35/rbt 15,520 DKK 14,953 15, Ldbk Reallane 5% ,732,266 DKK 1,756,517 1,611, Ldbk Reallane 5% /rbt 9,007 DKK 9,134 9, Nykredit Realkr.5% Oa 11,843,624 DKK 11,559,375 11,322, Realkredit Dk 5% ,477,316 DKK 6,412,168 6,442, Realkredit Dk 5% /rbt 75,685 DKK 74,924 75, Unikredit Real.5% ,345 DKK 14,177 14, Unikredit Real.5% ,741,562 DKK 2,709,349 2,689, ,035,946 51,021, Total - Bonds 52,035,946 51,021, Total - Transferable Securities Admitted To An Official Stock Exchange Listing 52,035,946 51,021, Total Investment Portfolio 52,035,946 51,021,

25 Danish Mortgage Bond Geographical and economic portfolio Breakdowns (expressed as a percentage of net assets) Geographical breakdown % Denmark Economic breakdown % Mortgage & Funding Institutions States,provinces And Municipalities

26 Notes to the Financial Statements NOTE 1 GENERAL The SICAV is an open-ended investment company incorporated under the laws of the Grand Duchy of Luxembourg as a Société d'investissement à Capital Variable ("SICAV"); it is subject to Part II of the amended Law of December 20, The SICAV has been incorporated under the name of Firstnordic Allocation Fund on July 6, 2001, for an unlimited period and changed its name into Danske Allocation Fund on October 24, The Articles were published on August 10, 2001 in the Mémorial C, Recueil des Sociétés et Associations (the "Mémorial C"). They were amended on September 6, 2005 and October 24, 2005; these amendments were published respectively in the Memorial of November 25, 2005 and November 16, Notice of the deposit of the Restated Articles of Incorporation with the Chancery of the District Court of Luxembourg was published in the Mémorial. At an extraordinary general meeting held on 14 November 2008 it was resolved to change the name from Danske Allocation Fund to Danske Invest Allocation with effect from 15 November The SICAV is an umbrella Fund and as such provides investors with the choice of investment in a range of several separate Sub-Funds each of which relates to a separate portfolio of liquid assets and other securities and assets permitted by law with specific investment objectives. On December 31, 2008, five Sub-Funds were operational: Danske Invest Allocation - Stable Danske Invest Allocation - Dynamic Danske Invest Allocation - Equity Opportunities Danske Invest Allocation - Danish Bond Danske Invest Allocation - Danish Mortgage Bond The SICAV s purpose is to invest in all kinds of transferable securities, units or shares of other open-ended UCI including up to 25% in hedge funds or UCIs investing themselves in hedge funds, as well as derivatives on transferable securities and other financial instruments authorised by law. Investments are made with consideration of the principle of risk diversification and capital growth. Each Sub-Fund of the SICAV has a separate investment objective, which it pursues through separate investment policies as described below. The Sub-Funds are actively managed. The investment objectives of each relevant Sub-Fund are as follows: Danske Invest Allocation - Stable Sub-Fund (denominated in EUR) The investment objective of the Sub-Fund is to obtain, through a conservative long-term investment policy, the highest possible return by way of investment primarily in units or shares of other open-ended UCIs with the possibility of investing a portion of the portfolio directly in other transferable securities and money market instruments in accordance with the following objective: Between 40% and 100% of the portfolio of the Sub-Fund must be invested, through units or shares of open-ended UCIs or directly in transferable securities, in money market instruments, government bonds, mortgage bonds, corporate bonds and other debt instruments denominated in OECD currencies. With a view to improving the performance of the Sub-Fund, up to 20% of the portfolio may, for periods, be invested in bonds denominated in high yielding currencies. The total portfolio of bonds shall be invested in accordance with the following rules: - At least 50% of the bond portfolio must be invested in units or shares of other open-ended UCIs investing in debt instruments; - Up to 50% of the bond portfolio may be invested directly in money market instruments, government bonds, mortgage bonds, corporate bonds and other debt instruments denominated in OECD currencies, provided that they are listed on an Official Stock Exchange. At any time, up to 40% of the total assets may be invested in UCIs investing in international equities. 26

27 Notes to the Financial Statements (continued) NOTE 1 GENERAL (continued) To stabilise the return, the Sub-Fund may at any time invest up to 25% of its net assets in Hedge Funds or in UCIs investing themselves in Hedge Funds. Danske Invest Allocation - Dynamic Sub-Fund (denominated in EUR) The investment objective of the Sub-Fund is to obtain, through an active investment policy, the highest possible longterm return by way of investment primarily in units or shares of other open-ended UCIs with the possibility of investing a portion of the portfolio directly in other transferable securities and money market instruments in accordance with the following objective: Up to 80% of the portfolio of the Sub-Fund can be invested, through UCIs, in international equities. With a view to improve the performance of the portfolio, a minor part up to 20% of the portfolio may, for periods, be invested in UCIs investing in emerging markets and sector funds. Up to 10% of the net assets of the Sub-Fund, including investments in other Russian and non Russian non listed securities, may be invested, through such UCIs, in Russia. Sector funds consist of UCIs investing in international equities related to specific sectors, e.g. IT, Media, pharmaceutical and energy. At any time, up to 50% of the total assets may be invested in international bonds either: - through UCIs investing in international bonds or - direct investment in international bonds, mortgage bonds, money market instruments and corporate bonds, provided that they are listed on an Official Stock Exchange. To stabilise the return, the Sub-Fund may at any time invest up to 25% of its net assets in Hedge Funds or in UCIs investing themselves in Hedge Funds. Danske Invest Allocation - Equity Opportunities Sub-Fund (denominated in EUR) The investment objective of the Sub-Fund is to obtain, through an active investment policy, the highest possible longterm return within the various equities markets by way of investment primarily in units or shares of other open-ended UCIs with the possibility of investing a portion of the portfolio directly in other transferable securities in accordance with the following objective: At any time up to 100% of the portfolio of the Sub-Fund can be invested in international equities. The total portfolio of equities shall be invested in accordance with the following rules: - At least 75% of the portfolio must be invested in units or shares of other open-ended UCIs investing in international equities; - Up to 25% of the portfolio may be invested directly in transferable securities, consisting of international equities and related equity-based instruments. With a view to improve the performance of the Sub-Fund, at any time, the Sub-Fund may have significant positions in UCIs involving a risk exceeding the market risk, e.g. emerging markets funds or sector funds. Up to 10% of the net assets of the Sub- Fund, including investments in other Russian and non Russian non listed securities, may be invested, through such UCIs, in Russia. Sector funds consist of equities related to specific sectors, e.g. IT, media, pharmaceutical and energy. Should the opportunity arise, and on ancillary basis only, the Sub-Fund may take positions up to 20% of the net assets of the Sub-Fund in open-ended UCIs which specialize in IPOs (Initial Public Offers), OTCs (Over The Counter) or make placements through UCIs which invest in private equity. To stabilise the return, the Sub-Fund may at any time invest up to 25% of its net assets in Hedge Funds or in UCIs investing themselves in Hedge Funds. 27

28 Notes to the Financial Statements (continued) NOTE 1 GENERAL (continued) Danske Invest Allocation - Danish Bond Sub-Fund (denominated in DKK) This Sub-Fund will invest in transferable securities, mainly bonds denominated in Danish Kroner. The bonds must be listed on an Official Stock Exchange. The total duration of the Sub-Fund, including cash holdings and adjusted for estimated premature redemption risk, must be between two and five years. For the purpose of hedging and/or efficient portfolio management, the Sub-Fund may use all the techniques and instruments described in Part A of the Prospectus. For the purpose of efficient portfolio management, the Sub-Fund may use options on portfolio securities, financial futures as well as options on such futures which are denominated in other currencies than the underlying assets and/or in other currencies than the reference currency of the Sub-Fund. The Sub-Fund may invest up to 10% of its net assets in shares / units of other UCI, including units or shares in hedge funds provided such UCIs and/or hedge funds invest primarily in bonds or interest rate instruments. Danske Invest Allocation - Danish Mortgage Bond Sub-Fund (denominated in DKK) This Sub-Fund will invest in bonds issued by Danish mortgage credit institutions and listed on the Copenhagen Stock Exchange. The bonds are denominated in Danish Kroner. The total duration of the Sub-Fund, including cash holdings and adjusted for estimated premature redemption risk, must be between three and nine years. For the purpose of hedging and/or efficient portfolio management, the Sub-Fund may use all the techniques and instruments described in Part A of the Prospectus. For the purpose of efficient portfolio management, the Sub-Fund may use options on portfolio securities, financial futures as well as options on such futures which are denominated in other currencies than the underlying assets and/or in other currencies than the reference currency of the Sub-Fund. The Sub-Fund may invest up to 10% of its net assets in shares / units of other UCI, including units or shares in hedge funds provided such UCIs and/or hedge funds invest primarily in bonds or interest rate instruments. NOTE 2 SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared in accordance with generally accepted accounting principles and in accordance with laws and regulations in force in the Grand Duchy of Luxembourg. a) Valuation of investments (i) The value of any cash on hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued as aforesaid and not yet received is deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof is arrived at after making such discount as may be considered appropriate in such case to reflect the true value thereof. (ii) The value of assets which are listed or dealt in on any stock exchange is based on the last available price on the stock exchange which is normally the principal market for such assets. (iii) The value of assets dealt in on any other Regulated Market is based on the last available price. (iv) In the event that any assets are not listed or dealt in on any stock exchange or on any other Regulated Market, or if, with respect to assets listed or dealt in on any stock exchange, or other Regulated Market as aforesaid, the price as determined pursuant to sub-paragraph (b) or (c) is not representative of the fair market value of the relevant assets, the value of such assets will be based on the reasonably foreseeable sales price determined prudently and in good faith by the Board of Directors. 28

29 Notes to the Financial Statements (continued) NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (continued) (v) The liquidating value of option contracts not traded on exchanges or on other Regulated Markets shall mean their net liquidating value determined, pursuant to the policies established by the Board of Directors, on a basis consistently applied for each different variety of contracts. The liquidating value of futures, forward or options contracts traded on exchanges or on other Regulated Markets shall be based upon the last available settlement prices of these contracts on exchanges and Regulated Markets on which the particular futures, forward or option contracts are traded by the SICAV; provided that if a futures, forward or options contract could not be liquidated on the day with respect to which net assets are being determined, the basis for determining the liquidating value of such contract shall be such value as the Board of Directors may deem fair and reasonable. Swaps will be valued at their market value established by reference to the applicable interest rates' curve. (vi) Units or shares of open-ended UCIs will be valued at their last determined and available net asset value or, if such price is not representative of the fair market value of such assets, then the price shall be determined by the Board of Directors on a fair and equitable basis. (vii) Considering that the net asset value of the Sub-Funds Stable, Dynamic and Equity Opportunities is calculated weekly, the Board of Directors decided by circular resolution to authorise RBC Dexia Investor Services Bank S.A. to use estimated prices for the target funds having a net asset value calculated monthly. The estimated prices will be those provided by the Central Administration of the target funds. (viii) All other securities and other assets will be valued at fair market value as determined in good faith pursuant to the procedures established by the Board of Directors. b) Realised gains/(losses) on sale of securities Gains and losses on investment securities sold are computed on the basis of average cost. c) Foreign exchange conversion The net asset values of the Sub-Funds in operation are expressed as follows: Danske Invest Allocation - Stable Sub-Fund in euro Danske Invest Allocation - Dynamic Sub-Fund in euro Danske Invest Allocation - Equity Opportunities Sub-Fund in euro Danske Invest Allocation - Danish Bond Sub-Fund in Danish Kroner Danske Invest Allocation - Danish Mortgage Bond Sub-Fund in Danish Kroner All assets valued in a currency other than the base currency of the Sub-Fund are converted to the base currency at the exchange rates prevailing at December 31, The exchange rates used, are the following: 1 AUD = EUR 1 DKK = EUR 1 GBP = EUR 1 JPY = EUR 1 SEK = EUR 1 USD = EUR 1 NOK = EUR Income and expenses deriving in a currency other than the base currency of the Sub-Fund are converted at the applicable exchange rate prevailing at the transaction date. 29

30 Notes to the Financial Statements (continued) NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (continued) d) Cost of investment securities The acquisition cost of investment securities in each Sub-Fund deriving in currencies other than the currency of denomination is converted to the base currency at the exchange rates prevailing at the purchase date. e) Combined financial statements of the SICAV The combined financial statements of the SICAV are expressed in EUR. Each item of the combined statements of net assets and combined statements of changes in net assets equals the sum of the corresponding items in the financial statements of each Sub-Fund converted to EUR at the exchange rates prevailing at the reporting date. f) Income from investments Dividends are recognized as income on the date the securities are first quoted ex-dividend, to the extent information thereon is reasonably available to the SICAV. Interest is accrued for each net asset valuation. g) Cost of target Funds When the Sub-Funds invest in other UCIs which are not managed by the Promoter or affiliates thereof, the Sub-Funds may be liable to transaction costs such as sales charges and redemption charges as well as to investment management fees. When the Sub-Funds invest in UCIs managed by the Promoter the sales commission, redemption charges and investment management fees (in respect of such UCIs) shall nevertheless be charged to the Sub-Funds. f) Forward foreign exchange contracts. Gains or losses arising from un-matured forward foreign exchange contracts are determined on the basis of the applicable forward exchange rates at the valuation date, and are recorded in the statement of operations and changes in net assets. NOTE 3 INVESTMENT MANAGEMENT FEES The Investment Manager receives from each Sub-Fund an annual fee determined as follows: 0.50% of the Net Asset Value in Danske Invest Allocation - Stable Sub-Fund 0.85% of the Net Asset Value in Danske Invest Allocation - Dynamic Sub-Fund 1.10% of the Net Asset Value in Danske Invest Allocation - Equity Opportunities Sub-Fund 0.90% of the Net Asset Value in Danske Invest Allocation - Danish Bond and Danske Invest Allocation - Danish Mortgage Bond The fees are payable quarterly in arrears and are calculated on the net asset value of each Sub-Fund on each valuation date during the relevant quarter. NOTE 4 DISTRIBUTOR FEES The Sub-Funds Stable, Dynamic and Equity Opportunities pay the Distributor an annual fee of 0.15% payable quarterly in arrears and calculated on the net asset value of each Sub-Fund on each valuation date during the relevant quarter. The Distributor shall out of its fee pay the fees to the Custodian and the Central Administration. The Sub-Funds Danish Bond and Danish Mortgage Bond are not subject to distributor fees. 30

31 Notes to the Financial Statements (continued) NOTE 5 CENTRAL ADMINISTRATION AND CUSTODIAN FEES In accordance with the common fee schedule agreement dated January 1, 2008 RBC Dexia Investor Services Bank is entitled to a fee agreed with the SICAV. The Sub-Funds Danish Bond and Danish Mortgage Bond pay an annual central administration and custody fee. This is calculated in arrears on the average net assets calculated at the frequency of each net asset value calculation. The Sub-Funds Stable, Dynamic and Equity Opportunities are not subject to central administration and custodian fees as described in note 4. NOTE 6 SUBSCRIPTION TAX Under present Luxembourg law, the SICAV is subject only to a subscription tax (Taxe d Abonnement) at the annual rate of 0.05% calculated and payable quarterly on the net asset value of the SICAV at the end of each quarter. In case some Sub-Funds are invested in other Luxembourg investment funds, which in turn are subject to the subscription tax provided for by the law of December 20, 2002 as amended relating to undertakings for collective investment, no subscription tax is due from the Sub-Funds on the portion of assets invested therein. NOTE 7 TAXES AND EXPENSES PAYABLE For the year ended December 31, 2008, the following accrued expenses were charged to the statement of operations and charges: Stable Dynamic Equity Opportunities Danish Bond Danish Mortgage Bond (in EUR) (in EUR) (in EUR) (in DKK) (in DKK) Subscription tax 3,851 1,042 1,300 6,380 6,541 Custodian, distributor, compliance, and central administration fees 65,368 18,954 22,993 20,569 21,777 Audit fees 12,285 3,369 3,369 12,147 12,088 NOTE 8 FINANCIAL FUTURES CONTRACTS 81,504 23,365 27,662 39,096 40,406 For the year ended December 31, 2008, the following financial futures contracts were outstanding : Contracts Number of contracts Commitment (EUR) Maturity Date Currency Unrealised (loss) (EUR) Equity Opportunities (EUR) Purchase DOW JONES EURO STOXX 50/PR.IND 73 1,788,500 03/20/2009 EUR (4,380) Purchase DOW JONES EURO STOXX 50/PR.IND 102 2,499,000 03/20/2009 EUR (7,140) (11,520) 31

32 Notes to the Financial Statements (continued) NOTE 9 FORWARD FOREIGN EXCHANGE CONTRACTS For the year ended December 31, 2008, the following forward foreign exchange contracts were outstanding : Purchase Sale Maturity Unrealised Gain (EUR) Stable (EUR) EUR 2,875,836 USD 4,000,000 01/23/2009 EUR 44,935 Dynamic (EUR) EUR 1,689,554 USD 2,350,000 01/23/2009 EUR 26,400 Equity Opportunities (EUR) EUR 2,084,981 USD 2,900,000 01/23/2009 EUR 32,578 NOTES 10 - OTHER MATTERS The Board of Directors of the fund have constantly and carefully been monitoring the recent developments in global markets as well as the implications for Fund of Funds and Hedge Funds. The findings of the Boards of Directors are: ING Senior Bank Loans: Normally bi-weekly trading with a maximum redemption of 10% of the NAV of the fund. On 20 October 2008 the fund decided to restrict redemptions from November 1, From that date the amounts that shareholders can redeem from the funds may be set at a lower level than 10% of the NAV. The amount of the reduction will be determined on a case by case basis, based upon then prevailing market conditions, and the availability of cash in the funds. Any amount not redeemed on a particular redemption date will be carried over the next redemption date. Green Way Special Opportunities: On December 22, 2008, the fund announced that it is restructuring. In this connection Danske Invest Allocation has chosen to join a liquidating class in order to phase out of this position. The first partial distribution of liquidation proceeds will be made in April 2009 and approximately 40-50% of these net assets will be distributed within the first year if the restructure date. SGAM Premium: Quarterly dealing. The fund has created a side pocket (for illiquid positions) of 13.1% of all units as per 31 December 2008 and restricted liquidity for remaining portion. Dankse Invest Allocation placed a redemption for half the position in Stable as per 31 March It is expected some of this redemption to be deferred to the next redemption date. 32