Flossbach von Storch SICAV

Transcription

1 Flossbach von Storch SICAV Flossbach von Storch R.C.S. Luxembourg B Investment fund under Luxembourg law An investment fund pursuant to Part II of the Law of 17 December 2010 concerning undertakings for collective investment in the legal form of a Société d Investissement à Capital Variable (SICAV), as currently amended MANAGEMENT COMPANY: Flossbach von Storch Invest S.A. R.C.S Luxembourg B

2 2 CONTENTS REPORT ON FLOSSBACH VON STORCH SICAV S BUSINESS OPERATIONS 3 CONSOLIDATED COMPOSITION OF NET FUND ASSETS 6 FLOSSBACH VON STORCH SICAV - STIFTUNG SUB-FUND 8 Statement of income and expenses 11 from 1 October 2016 to 29 December 2016 (date of the merger) Additions and disposals from 1 October 2016 to 29 December 2016 (date of the merger) 12 FLOSSBACH VON STORCH SICAV - MULTIPLE OPPORTUNITIES SUB-FUND 16 Geographical breakdown by country 17 Breakdown by economic sector 18 Composition of the net sub-fund assets as at 30 September Statement of income and expenses 23 Statement of assets as at 30 September Additions and disposals from 1 October 2016 to 30 September NOTES TO THE ANNUAL REPORT AS AT 30 SEPTEMBER DISCLOSURES IN ACCORDANCE WITH THE DELEGATED AIFM REGULATION (UNAUDITED) 37 AUDIT OPINION 40 CALCULATION OF DISTRIBUTION IN ACCORDANCE WITH 12 KARBV (UNAUDITED) 43 MANAGEMENT, DISTRIBUTION AND ADVISORY SERVICES 45 The sales prospectus and the Articles of Association it includes, the Key Investor Information Document and the annual and semi-annual reports on the fund are available free of charge by post, fax or from the registered offices of the investment company, the Custodian, the paying agents and sales agents for each country in which it is sold and from the representative in Switzerland. For further information, please feel free to contact the management company during normal business hours. Subscriptions for fund shares are only valid if based on the latest edition of the sales prospectus, including its annexes in conjunction with the most recently available annual report or semi-annual report if one has been published thereafter.

3 3 Report on business operations Flossbach von Storch SICAV Multiple Opportunities Share class R of the Flossbach von Storch SICAV Multiple Opportunities fund ended the past financial year from 1 October 2016 to 30 September 2017 with a value increase of 4.4%; this takes into account a distribution of ordinary income in December in the amount of 2.15 per fund share. The prospect of an economic boom in the US and a sustained turnaround in interest rates thus disappeared. The prices of shares sensitive to interest rates, such as consumer stocks, rose again. The price of gold, which was initially considered a major Trump loser, has seen significant gains since the end of last year. Donald Trump shows that in politically turbulent times in particular, hasty action seems to be a poor advisor. In comparison, the most important equity indices performed as follows in consideration of net dividends: The global leading index MSCI World was up 10.3% in euro terms, while the European leading index DJ O STOXX 50 posted gains of 19.7%. In addition, the bond index REXP fell 1.9% in the reporting period. The price of gold fell 2.7% (in US dollar terms) or 7.5% (in euro terms). The financial year began with a political surprise. Donald Trump was elected as US president on 8 November The decision shows that not only election predictions are becoming more unreliable. The consequences of the election results are even more unpredictable because the protagonists have increased in importance in comparison with their party. In the case of the US, Trump s election was followed by a short Trump rally. A strong US dollar and increasing US interest rates reflected an expected economic upswing based on the Make America Great Again policy. The election mainly boosted the shares of cyclical companies and banks, with the latter also benefiting from hopes of deregulation in the financial sector. The protectionist side of the Trump programme and rising government deficits, on the other hand, were generally ignored. The botched healthcare reform gave an initial insight into how difficult it will be for the new president to keep his campaign promises. No major reforms, including a tax reform, were made by the end of the financial year. This also applies in retrospect to the highly anticipated elections in Europe. Populist parties in the Netherlands and France experienced significant defeats. Following Emmanuel Macron s election as the French president, the French leading index CAC 40 initially saw significant gains. As a result of improved economic data for countries in the eurozone, the prices in other European countries also rose towards the end of the financial year. The positive development on the European markets did little to slow an increasingly strong euro. The currency almost reached USD 1.21 on 8 September 2017, a gain of 16% on the annual low. The euro also appreciated against other important currencies, not just the US dollar. On 22 September 2017, one euro was worth 1.16 Swiss francs the highest value since the Swiss National Bank unpegged the currency in January The strong euro dampened the performance of globally oriented portfolios towards the end of the financial year. In our opinion, however, the positive economic development should not distract from the fact that the eurozone remains a fragile entity. The probable end of the grand coalition following the parliamentary elections in Germany indicates that the path to a fiscal transfer union is not as straightforward as French president Emmanuel Macron may have hoped, for example.

4 4 Report on business operations The US Federal Reserve (Fed) moved further towards a normal monetary policy in the course of the financial year than the ECB. However, it is also easier for the Fed. After all, the Fed does not have to deal with the complexity and the pitfalls of a currency shared by very different economies. After discontinuing its bond purchases and hiking interest rates for the first time, the Fed announced that it would slowly be disposing of the accrued bond holdings from October held exclusively in the form of physical gold and serve diversification and portfolio hedging purposes. Existing exchange rate risks relating to the yen and the British pound were largely hedged at the end of the financial year. The currency development of share positions in US dollars was partially hedged. Flossbach von Storch SICAV - Stiftung However, we consider a return to prior interest rate levels of more than four percent to be unlikely in the US. Dependence on European and Japanese central banks appears to have become too great. And without the low interest rates of the ECB and the Bank of Japan (BoJ), the central banks inflation targets are unlikely to be achieved and the financing of excessive government spending is unlikely to be guaranteed, in our opinion. Report for the period from 1 October 2016 to 29 December 2016 The Flossbach von Storch SICAV Stiftung fund ended the period from 1 October 2016 to 29 December 2016 with a value increase of 0.35%. While shares, bonds and convertible bonds provided positive contributions to performance, precious metals recorded losses. The market environment with low yields for safe bonds continues to speak for equities, in our opinion. We continue to recommend a robust portfolio as setbacks on the equity market (and also on the bond market) are always possible. Face the crisis and use opportunities offered by the markets. The fund s equity holdings focus on globally oriented companies with a strong market position, high pricing power, stable margins and a solid balance sheet structure. Ongoing income is also received in the form of dividend payments that make the shares of financially sound companies even more attractive. These quality criteria in stock selection ensure that companies from the consumer and pharmaceutical sectors are relatively heavily weighted in the fund. The fund volume was around 12.2 billion on 30 September The five largest share positions in the fund were the investments held in Berkshire Hathaway, Daimler, Nestlé, Novo Nordisk and Abbott Labs, which together made up approx. 20.5% of the fund s assets. The equity allocation was approx % at the end of the financial year. Approx. 8.6% of fund assets were invested in bonds, with tactical foreign currency positions in the Mexican peso and Norwegian krone also being represented by bonds during the financial year. The precious metals allocation fell slightly year-on-year due to currency-related price declines and was some 10.3% at the end of the financial year. Precious metals are In comparison, the most important equity indices performed as follows: The global leading index MSCI World Index was up 9.68% in euro terms in the reporting period, while the European leading index DJ O STOXX 50 posted gains of 9.21%. In addition, the bond index REX Performance Index fell 1.31% in the reporting period. The price of gold fell 12.0% (in US dollar terms) or 5.7% (in euro terms). The reporting period began with a political surprise. Donald Trump was elected as US president on 8 November The decision shows that not only election predictions are becoming more unreliable. The consequences of the election results are even more unpredictable because the protagonists have increased in importance in comparison with their party. In the case of the US, Trump s election was followed by a Trump rally. A strong US dollar and increasing US interest rates reflected an expected economic upswing based on the Make America Great Again policy. The election mainly boosted the shares of cyclical companies and banks, with the latter also benefiting from hopes of deregulation in the financial sector. The protectionist side of the Trump programme and rising government deficits, on the other hand, were generally ignored. The increase in interest rates for US government bonds and the sharp rise of the US dollar stopped at the end of the year.

5 5 Report on business operations Central bank policy in Europe remains expansive. In December 2016 Mario Draghi, President of the European Central Bank (ECB), extended the purchase programme for government bonds for an additional nine months. For strategic reasons, bonds also had the highest weighting in the three-month reporting period. Bonds issued by companies were preferred to government issuers in the selection of stocks as they often offered an attractive yield premium in our view. Bonds denominated in euros and US dollars were predominantly allocated again within the group of corporate bonds, where the currency risk of US dollar bonds was hedged against the euro during the entire period by forward exchange transactions with a term of a few months. The duration of the bond portfolio was 6.2 years at the end of the reporting period, with a credit rating of BBB on average. In addition to bonds, shares also had a significant weighting throughout the entire reporting period. This is because this asset class remained attractive to longterm investors due to the ongoing dividend income which in some cases was considerably higher than the interest income from government and corporate bonds, at least in the eurozone and Japan. The equity allocation was therefore always in the top third of the maximum possible allocation of 35% in the reporting period. Shares in companies with robust business models that are characterised by high cash flow generation, a significant barrier of entry and a sound balance sheet in particular were preferred in this fragile market environment. In the equity segment, we also used derivatives for the purchase and sales of individual stocks. Taking into account the outstanding contract volume, however, the maximum permitted equity allocation of 35% was not exceeded at any time. The precious metals allocation was between 5.74% and 6.95% in the reporting period. The only precious metal allocated was gold. The allocation was 6.95% on 29 December 2016, where the stocks were held exclusively in the form of gold certificates. In the case of convertible bonds, only selective stocks were held that had an attractive risk/reward profile for this multi-asset fund. The allocation was 4.05% on 29 December The liquidity ratio fluctuated in the reporting period between 6.41% and 13.39%. The liquidity ratio was 13.39% on 29 December Exchange rate risks were largely hedged. Therefore, at the end of the reporting period the exchange rate risks of positions in British pounds and yen were largely hedged in addition to the currency risk of US dollar bonds. The Flossbach von Storch SICAV Stiftung fund was merged with the Flossbach von Storch Stiftung SI subfund on 30 December The Flossbach von Storch SICAV Stiftung no longer exists following the merger. Luxembourg, October 2017 The fund management on behalf of the board of directors of Flossbach von Storch SICAV The data and figures contained in this report are based on past performance and are no indication of future performance.

6 6 Flossbach von Storch SICAV Consolidated annual report on Flossbach von Storch SICAV with the following sub-funds Flossbach von Storch SICAV - Stiftung and Flossbach von Storch SICAV - Multiple Opportunities Consolidated composition of net fund assets as at 30 September September September 2017 Securities holdings (cost of acquisition of securities as at 30 September 2016: 7,166,695,742.78) (cost of acquisition of securities as at 30 September 2017: 8,846,956,037.73) 7,771,141, ,443,482, Precious metals, gold 1,349,540, ,260,798, Bank balances 1) 1,372,884, ,526,678, Unrealised profits from forward exchange transactions 2,733, Interest receivables 18,775, ,734, Dividend receivables 7,630, ,359, Receivables from the sale of shares 39,273, ,311, Receivables from securities transactions 2,638, , Receivables from currency transactions 22,983, ,587,601, ,267,449, Options -696, Payables from the redemption of shares -6,316, ,479, Unrealised losses on futures contracts ,076, Unrealised losses from forward exchange transactions ,398, Payables from securities transactions -23,235, ,311, Payables from currency transactions -22,981, Management fee/fund management fee 2) -12,007, ,604, Depositary fee 2) -301, , Performance fee -14,679, , Central administration agent fee 2) -132, , Taxe d abonnement 3) -1,321, ,521, Publication and auditing costs -26, , ,699, ,846, Net fund assets 10,505,901, ,193,603, ) The bank balances held are not protected by a deposit guarantee scheme. 2) Provisions for the period from 01 September 2017 to 30 September ) Provisions for the third quarter of The notes constitute an integral part of this annual report.

7 7 Flossbach von Storch SICAV Change in net fund assets in the reporting period from 01 October 2016 to 30 September 2017 Net fund assets at the start of the reporting period 10,505,901, Ordinary net expenditure -49,357, Income and expense equalisation 5,428, Cash inflows from share sales 2,671,767, Cash outflows from share redemptions -1,111,867, Realised profits 769,689, Realised losses -92,255, Net change in unrealised gains -42,039, Net change in unrealised losses -87,477, Distribution -112,033, Outflow of funds from Flossbach von Storch SICAV - Stiftung 1) -264,153, Net fund assets at the end of the reporting period 12,193,603, ) The sub-fund was merged with the Flossbach von Storch Stiftung fund on 29 December Statement of income and expenses in the reporting period from 01 October 2016 to 30 September 2017 Income Dividends 144,858, Income from investment shares 20, Interest on loans 34,799, Income from withholding tax reimbursement 5,639, Bank interest -8,257, Other income 360, Income equalisation 7,333, Total income 184,754, Expenses Interest payable -992, Performance fee -45,711, Management fee/ Fund management fee -161,475, Custodian fee -3,727, Central administration agent fee -1,619, Taxe d abonnement -5,875, Publication and auditing costs -89, Typesetting, printing and dispatch costs for the annual and semi-annual reports -23, Registrar and transfer agent fee -50, State fees -12, Depositary fees -1,706, Other expenses 1) -67, Expense equalisation -12,761, Total expenses -234,112, Ordinary net expenditure -49,357, ) This item mainly consists of delivery charges and membership fees. The notes constitute an integral part of this annual report.

8 8 Flossbach von Storch SICAV - Stiftung Reporting period 1 October December 2016 (date of the merger) The company was entitled to create share classes with different rights in relation to the shares. Details of the share class are as follows as at 29 December 2016: Securities ID No. (WKN): A0M43S ISIN: LU Subscription fee: up to 3.00% Redemption fee: none Management fee: 0.43% p.a. Minimum initial investment: none Minimum subsequent investment: none Income utilisation: Distribution Currency: The notes constitute an integral part of this merger report.

9 9 Flossbach von Storch SICAV - Stiftung Performance over the last three financial years Date Net sub-fund assets millions Outstanding Equities Net inflow of funds 000 Share value 30/09/ ,204,577 34, /09/ ,298, , /12/2016 1) ,330,632 4, ) The sub-fund was merged with the Flossbach von Storch Stiftung fund on 29 December Past performance is no guarantee of future results. The notes constitute an integral part of this merger report.

10 10 Flossbach von Storch SICAV - Stiftung Change in net sub-fund assets in the reporting period from 1 October 2016 to 29 December 2016 (date of the merger) Net sub-fund assets at the start of the reporting period 268,174, Ordinary net income 1,208, Income and expense equalisation 61, Cash inflows from share sales 45,601, Cash outflows from share redemptions -41,366, Realised profits 8,325, Realised losses -2,721, Net change in unrealised gains -3,340, Net change in unrealised losses -2,540, Distribution -9,250, Net sub-fund assets at the end of the reporting period 1) 264,153, ) The sub-fund was merged with the Flossbach von Storch Stiftung fund on 29 December Changes in number of shares in circulation No. of shares No. of shares 30 September December 2016 Shares in circulation at start of reporting period 1,204, ,298, Shares issued 1,203, , Shares redeemed -108, , Outstanding shares at the end of the reporting period 1) 2,298, ,330, ) The sub-fund was merged with the Flossbach von Storch Stiftung fund on 29 December The notes constitute an integral part of this merger report.

11 11 Flossbach von Storch SICAV - Stiftung Statement of income and expenses in the reporting period from 1 October 2016 to 29 December 2016 (date of the merger) Income Dividends 240, Income from investment shares 20, Interest on loans 1,395, Income from withholding tax reimbursement 11, Bank interest -17, Other income 17, Income equalisation -77, Total income 1,589, Expenses Interest payable Management fee/ Fund management fee -295, Custodian fee -24, Central administration agent fee -10, Taxe d abonnement -32, Publication and auditing costs -19, Registrar and transfer agent fee -1, State fees Depositary fees -6, Other expenses 1) -7, Expense equalisation 16, Total expenses -381, Ordinary net income 1,208, Total transaction costs during the financial year 2) 62, Ongoing costs in percent 2) 3) 0.60 Total expense ratio excluding performance fee in percent 2) (For the period from 1 October 2016 to 29 December 2016) 0.59 Total expense ratio including performance fee in percent 2) (For the period from 1 October 2016 to 29 December 2016) 0.59 Performance fee in percent 2) (For the period from 1 October 2016 to 29 December 2016) - 1) This item mainly consists of paying agent fees and general administrative expenses. 2) See the Notes to the report. 3) For the period from 1 October 2016 to 29 December The notes constitute an integral part of this merger report.

12 12 Flossbach von Storch SICAV - Stiftung Additions and disposals from 1 October 2016 to 29 December 2016 (date of the merger) Purchases and sales of securities, note loans and derivatives during the reporting period, including changes not involving monetary transactions and not disclosed in the statement of assets. Additions Disposals in the in the ISIN Securities reporting period reporting period Equities, rights and participation certificates Exchange-traded securities Belgium BE Anheuser-Busch InBev NV/S.A. 0 9,900 Germany DE Bayerische Motoren Werke AG 0 21,800 DE Daimler AG 0 38,000 DE000A1X3XX4 DIC Asset AG 43, ,993 DE Dte. Post AG 0 80,000 DE SAP SE 0 30,000 France FR Air Liquide S.A. BZR 28/09/ ,000 FR Sanofi S.A. 0 34,200 United Kingdom GB GlaxoSmithKline Plc. GBP 0 60,000 Switzerland CH Roche Holding AG participation certificates CHF 0 16,500 United States of America US Coca-Cola Co, USD 0 14,283 US57636Q1040 Mastercard Inc. USD 0 21,000 Bonds Exchange-traded securities BE % Anheuser-Busch InBev S.A./NV EMTN FRN Reg.S. v.16(2020) 0 1,500,000 XS % Davide Campari-Milano S.p.A. v.12(2019) 0 950,000 XS % Discovery Communications Reg.S. LLC v.14(2022) 0 2,000,000 XS % Dte. Telekom International Finance BV EMTN Reg.S. FRN v.16(2020) 0 2,000,000 XS % Nasdaq Inc. v.13(2021) 0 810,000 XS % Stichting AK Rabobank FRN Perp. 1,500,000 4,500,000 USD US02364WAV % América Movil S.A.B. de CV v.10(2020) 0 1,150,000 US172967KB % Citigroup Inc. v.15(2020) 0 1,600,000 US532716AU % L Brands Inc. v.12(2022) 0 2,600,000 US651639AN % Newmont Mining Corporation v.12(2022) 0 2,000,000 US654902AB % Nokia Oyi v.09(2019) 0 2,170,000 US857524AA % Polen v.11(2021) 0 1,600,000 US92857WBC % Vodafone Group Plc. v.13(2023) 0 1,800,000 The notes constitute an integral part of this merger report.

13 13 Flossbach von Storch SICAV - Stiftung Additions and disposals from 1 October 2016 to 29 December 2016 (date of the merger) (continued) Purchases and sales of securities, note loans and derivatives during the reporting period, including changes not involving monetary transactions and not disclosed in the statement of assets. Additions Disposals in the in the ISIN Securities reporting period reporting period Securities admitted to trading or included in organised markets CAD US500769GM % Kreditanstalt für Wiederaufbau v.15(2020) 0 2,800,000 CA68323ABN % Ontario v.12(2023) 0 5,000,000 DE000A169GZ % Daimler AG EMTN FRN Reg.S. v.16(2019) 0 5,000,000 XS % General Mills Inc. FRN v.16(2020) 0 2,500,000 DE000A1Z6C % JAB Holdings BV Reg.S. v.15(2022) 0 800,000 DE000A2BN5K % SAP SE EMTN FRN v.16(2018) 0 4,500,000 DE000A14J7F % ZF North America Capital Inc. Reg.S. v.15(2019) 0 1,200,000 USD US06051GFT % Bank of America Corporation v.15(2020) 0 1,600,000 US20826FAD % ConocoPhillips Co. v.14(2024) 0 1,000,000 US278642AE % ebay Inc. v.12(2022) 0 2,350,000 US46625HKC % JPMorgan Chase & Co. v.15(2025) 0 1,500,000 USU97146AF % WM Wrigley Jr Co. Reg.S. v.13(2020) 0 1,000,000 Unlisted securities USD US88032WAD % Tencent Holdings Ltd. 144A v.15(2025) 0 1,450,000 Convertible bonds Securities admitted to trading or included in organised markets XS % América Móvil S.A.B. de C.V. Zero CV v.15(2020) 2,800,000 2,800,000 XS % Azimut Holding S.p.A. CV v.13(2020) 0 2,000,000 XS % Steinhoff Finance Holdings CV v.16(2023) 2,600,000 5,100,000 USD XS % Telenor East Holding II AS CV v.16(2019) 0 800,000 Certificates Exchange-traded securities United Kingdom DE000A1MECS1 Source Physical Markets Plc./Gold Unze 999 v.11(2100) 171, ,000 Options Call on Anheuser-Busch InBev S.A./NV December 2016/ Call on Daimler AG December 2016/ Call on Nokia Corporation December 2016/5.49 2,892 0 Call on SAP SE December 2016/ Put on Bayer AG October 2016/ Put on Dte. Post AG December 2016/ ,000 1,000 Put on LVMH Moet Hennessy Louis Vuitton SE October 2016/ The notes constitute an integral part of this merger report.

14 14 Flossbach von Storch SICAV - Stiftung Additions and disposals from 1 October 2016 to 29 December 2016 (date of the merger) (continued) Purchases and sales of securities, note loans and derivatives during the reporting period, including changes not involving monetary transactions and not disclosed in the statement of assets. Additions Disposals in the in the ISIN Securities reporting period reporting period Put on Nike Inc. October 2016/ Put on Unilever NV December 2016/ Put on United Internet AG December 2016/ USD Call on Alphabet Inc. December 2016/ Call on Amgen Inc. October 2016/ Put on PayPal Holdings Inc. October 2016/ Precious metals, gold USD Gold (bars) 0 30 The notes constitute an integral part of this merger report.

15 15 Flossbach von Storch SICAV - Stiftung Issue surcharges, redemption fees and management fees Details of issue surcharges, redemption fees and the maximum amount of the management fee for target fund shares are available on request at the registered offices of the management company, the custodian or the paying agents. Issue surcharge Redemption fee Management fee in in in ISIN Securities Currency % 1) % 1) % LU Flossbach von Storch - Global Emerging Markets Equities I Up to ) Subscription and redemption fees were not paid during the reporting period from 01 October 2016 to 29 December Exchange rates The values of assets denominated in foreign currencies are converted into euros using the exchange rates prevailing on 29 December 2016 (date of the merger) as stated below. British pound GBP Danish krone DKK Japanese yen JPY Canadian dollar CAD Swiss franc CHF US dollar USD The notes constitute an integral part of this merger report.

16 16 Flossbach von Storch SICAV - Multiple Opportunities Annual report 01 October September 2017 The company is entitled to create share classes with different rights in relation to the shares. Details of the current share classes are as follows: Share class F Share class R Share class I Securities ID No. (WKN): A0M43Z A0M430 A1W0MN ISIN: LU LU LU Subscription fee: up to 5.00% up to 5.00% up to 5.00% Redemption fee: none none none Management fee: 1.03% p.a. 1.53% p.a. 0.78% p.a. Minimum initial investment 5,000,000 none 1,000,000 Minimum subsequent investment: 1,000,000 none 100,000 Income utilisation: Distribution distributing distributing Currency: The notes constitute an integral part of this annual report.

17 17 Flossbach von Storch SICAV - Multiple Opportunities Geographical breakdown by country 1) United States of America 26.91% Germany 15.76% Switzerland 9.75% United Kingdom 6.10% Norway 3.74% Japan 3.21% Netherlands 2.94% Denmark 2.68% Virgin Islands (GB) 2.45% Canada 1.87% France 1.34% South Africa 0.53% Austria 0.18% Securities holdings 77.46% Precious metals, gold 10.34% Futures contracts -0.07% Bank balances 12.51% Balance of other receivables and payables -0.24% % 1) Due to rounding differences in individual amounts, totals may differ from the actual value. The notes constitute an integral part of this annual report.

18 18 Flossbach von Storch SICAV - Multiple Opportunities Breakdown by economic sector 1) Foodstuffs, beverages and tobacco 11.55% Automobiles and components 11.13% Software and services 8.53% Pharmaceuticals, biotechnology and life sciences 7.62% Raw materials and supplies 6.32% Diversified financial services 5.13% Wholesale and retail 5.03% Health care: equipment and services 4.65% Telecommunications services 4.24% Government bonds 3.74% Consumer goods and clothing 2.45% Household items and body care products 2.28% Media 1.51% Capital goods 1.24% Real estate 0.84% Semi-conductors and semi-conductor production equipment 0.42% Hardware and equipment 0.33% Food and staples retail 0.27% Energy 0.18% Securities holdings 77.46% Precious metals, gold 10.34% Futures contracts -0.07% Bank balances 12.51% Balance of other receivables and payables -0.24% % 1) Due to rounding differences in individual amounts, totals may differ from the actual value. The notes constitute an integral part of this annual report.

19 19 Flossbach von Storch SICAV - Multiple Opportunities Performance over the last three financial years Share class F Net Net sub-fund assets Outstanding inflow of funds Share value Date millions Equities /09/2015 1, ,351,510 81, /09/2016 1, ,901, , /09/2017 1, ,509, , Share class R Net Net sub-fund assets Outstanding inflow of funds Share value Date millions Equities /09/2015 5, ,679,475 1,396, /09/2016 8, ,801,297 1,584, /09/2017 9, ,989,110 1,425, Share class I Net Net sub-fund assets Outstanding inflow of funds Share value Date millions Equities /09/ ,028,152 84, /09/ ,792, , /09/ ,548, , Past performance is no guarantee of future results. The notes constitute an integral part of this annual report.

20 20 Flossbach von Storch SICAV - Multiple Opportunities Composition of net sub-fund assets as at 30 September September September 2017 Securities holdings (cost of acquisition of securities as at 30 September 2016: 6,953,674,105.35) (cost of acquisition of securities as at 30 September 2017: 8,846,956,037.73) 7,546,963, ,443,482, Precious metals, gold 1,335,415, ,260,798, Bank balances 1) 1,343,917, ,526,678, Unrealised profits from forward exchange transactions 2,330, Interest receivables 17,361, ,734, Dividend receivables 7,566, ,359, Receivables from the sale of shares 38,100, ,311, Receivables from securities transactions 2,638, , Receivables from currency transactions 22,983, ,317,276, ,267,449, Payables from the redemption of shares -6,270, ,479, Unrealised losses on futures contracts ,076, Unrealised losses from forward exchange transactions ,398, Payables from securities transactions -21,978, ,311, Payables from currency transactions -22,981, Management fee/fund management fee 2) -11,912, ,604, Depositary fee 2) -293, , Performance fee -14,679, , Central administration agent fee 2) -129, , Taxe d abonnement 3) -1,288, ,521, Publication and auditing costs -13, , ,549, ,846, Net sub-fund assets 10,237,727, ,193,603, Shares in circulation 46,495, ,047, ) The bank balances held are not protected by a deposit guarantee scheme. 2) Provisions for the period from 01 September 2017 to 30 September ) Provisions for the third quarter of The notes constitute an integral part of this annual report.

21 21 Flossbach von Storch SICAV - Multiple Opportunities Allocation to the share classes 30 September September 2017 Share class F Proportion of net sub-fund assets 1,481,854, ,443,715, Shares in circulation 5,901, ,509, Share value Share class R Proportion of net sub-fund assets 8,130,243, ,859,626, Shares in circulation 35,801, ,989, Share value Share class I Proportion of net sub-fund assets 625,629, ,261, Shares in circulation 4,792, ,548, Share value Change in net sub-fund assets in the reporting period from 01 October 2016 to 30 September 2017 Total Share class F Share class R Share class I Net sub-fund assets at the start of the reporting period 10,237,727, ,481,854, ,130,243, ,629, Ordinary net expenditure -50,565, ,368, ,863, , Income and expense equalisation 5,366, , ,236, , Cash inflows from share sales 2,626,166, ,991, ,170,495, ,679, Cash outflows from share redemptions -1,070,501, ,765, ,015, ,720, Realised profits 761,363, ,394, ,484, ,484, Realised losses -89,533, ,575, ,518, ,439, Net change in unrealised gains -38,699, ,192, ,802, ,704, Net change in unrealised losses -84,937, ,760, ,645, ,530, Distribution -102,783, ,714, ,988, ,080, Net sub-fund assets at the end of the reporting period 12,193,603, ,443,715, ,859,626, ,261, The notes constitute an integral part of this annual report.

22 22 Flossbach von Storch SICAV - Multiple Opportunities Changes in number of shares in circulation for share class F No. of shares No. of shares 30 September September 2017 Shares in circulation at start of reporting period 5,351, ,901, Shares issued 1,107, , Shares redeemed -557, , Shares in circulation at end of reporting period 5,901, ,509, Changes in number of shares in circulation for share class R No. of shares No. of shares 30 September September 2017 Shares in circulation at start of reporting period 28,679, ,801, Shares issued 9,824, ,405, Shares redeemed -2,703, ,217, Shares in circulation at end of reporting period 35,801, ,989, Changes in number of shares in circulation for share class I No. of shares No. of shares 30 September September 2017 Shares in circulation at start of reporting period 1,028, ,792, Shares issued 4,389, ,089, Shares redeemed -624, ,333, Shares in circulation at end of reporting period 4,792, ,548, Performance as a percentage* as at 30 September 2017 Fund ISIN WKN 6 months 1 year 3 years 10 years Flossbach von Storch SICAV - Multiple Opportunities F Since 24/10/2007 Flossbach von Storch SICAV - Multiple Opportunities I Since 30/09/2013 Flossbach von Storch SICAV - Multiple Opportunities R Since 26/10/2007 LU A0M43Z LU A1W0MN LU A0M * Based on published share values, the BVI method ultimately corresponds to the Guidelines on the calculation and publication of performance data of collective investment schemes issued by the Swiss Funds & Asset Management Association (SFAMA) on 16 May Past performance is not an indicator of current or future performance. Performance data does not take into account the commissions and costs levied on the issue and redemption of shares. The notes constitute an integral part of this annual report.

23 23 Flossbach von Storch SICAV - Multiple Opportunities Statement of income and expenses in the reporting period from 01 October 2016 to 30 September 2017 Total Share class F Share class R Share class I Income Dividends 144,618, ,333, ,297, ,986, Interest on loans 33,404, ,321, ,770, ,312, Income from withholding tax reimbursement 5,628, , ,529, , Bank interest -8,240, ,064, ,610, , Other income 342, , , , Income equalisation 7,411, , ,937, ,180, Total income 183,165, ,630, ,198, ,335, Expenses Interest payable -992, , , , Performance fee -45,711, ,663, ,047, Management fee/ Fund management fee -161,179, ,067, ,933, ,178, Custodian fee -3,703, , ,970, , Central administration agent fee -1,608, , ,290, , Taxe d abonnement -5,843, , ,687, , Publication and auditing costs -69, , , , Typesetting, printing and dispatch costs for the annual and semi-annual reports -23, , , , Registrar and transfer agent fee -48, , , , State fees -12, , , Depositary fees -1,700, , ,360, , Other expenses 1) -60, , , , Expense equalisation -12,777, , ,174, ,196, Total expenses -233,730, ,262, ,061, ,406, Ordinary net expenditure -50,565, ,368, ,863, , Total transaction costs during the financial year 3) 11,317, Ongoing costs in percent 3) Total expense ratio excluding performance fee in percent 3) (for the period from 1 October 2016 to 30 September 2017) Total expense ratio including performance fee in percent 3) (for the period from 1 October 2016 to 30 September 2017) Performance fee 2) (for the period from 1 October 2016 to 30 September 2017) ) This item mainly comprises membership fees and delivery charges. 2) The performance fee is calculated taking into account the respective share class volume. 3) See the Notes to the report. The notes constitute an integral part of this annual report.

24 24 Flossbach von Storch SICAV - Multiple Opportunities Statement of assets as at 30 September 2017 ISIN Securities Additions in the Reporting period Disposals in the Reporting period Quantity Price Market value % share of NSFA 1) Equities, rights and participation certificates Exchange-traded securities Denmark DK Novo-Nordisk AS DKK 3,482,572 4,700,000 8,000, ,295, ,295, Germany DE Bayerische Motoren Werke AG 791, ,000 2,998, ,138, DE Bayerische Motoren Werke AG -VZ , ,523, DE Bechtle AG 1,066, ,133, ,317, DE000A1DAHH0 Brenntag AG 448, , ,164, DE Daimler AG 5,383,736 1,608,067 9,311, ,632, DE000A0Z2ZZ5 Freenet AG 1,251, ,397, ,351, DE Infineon Technologies AG 2,454, ,454, ,584, DE SAP SE , ,137, DE TAG Immobilien AG 0 1,556,597 7,231, ,397, DE United Internet AG 3,577,808 1,632,112 4,459, ,879, ,802,127, France FR L Air Liquide S.A. 467,875 1,311,137 1,307, ,878, ,878, Japan JP KDDI Corporation JPY 3,371, ,595,468 2, ,834, JP Makita Corporation JPY 240, , ,800 4, ,436, JP Seven & I Holding Co. Ltd. JPY 1,000, ,000,000 4, ,792, JP Toyota Motor Corporation JPY 401,000 3,002,000 2,099,483 6, ,008, ,072, Virgin Islands (GB) VGG Michael Kors Holdings Ltd. USD 678, ,371, ,453, ,453, Canada CA Barrick Gold Corporation USD 17,954,441 1,405,692 16,548, ,503, ,503, Switzerland CH Nestlé S.A. CHF 3,697,790 3,434,568 8,643, ,016, CH Novartis AG CHF 0 0 4,000, ,459, CH Roche Holding AG participation certificates CHF 150, ,250, ,721, CH Sunrise Communications Group AG CHF 267, , ,671, ,188,869, South Africa ZAE Naspers Ltd. ZAR 357, ,576 2, ,250, ,250, ) NSFA = net sub-fund assets. The notes constitute an integral part of this annual report.

25 25 Flossbach von Storch SICAV - Multiple Opportunities Statement of assets as at 30 September 2017 (continued) ISIN Securities Additions in the Reporting period Disposals in the Reporting period Quantity Price Market value % share of NSFA 1) United States of America US Abbott Laboratories USD 1,700,000 3,368,696 6,800, ,531, US02079K3059 Alphabet Inc. USD 294, , ,923, US Amazon.com Inc. USD 156,086 89,158 66, ,319, US Berkshire Hathaway Inc. USD 1,594, ,604 4,025, ,788, US Danaher Corporation USD 1,263, ,570, ,635, US30303M1027 Facebook Inc. USD 300, , ,955, US General Mills Inc. USD 2,981, ,143 2,520, ,774, US IBM Corporation USD 1,248, ,248, ,305, US Johnson & Johnson USD 0 500, , ,947, US Lowe's Companies Inc. USD 2,029, ,029, ,799, US57636Q1040 Mastercard Inc. USD 0 547, , ,897, US Microsoft Corporation USD 0 2,099, , ,231, US61166W1018 Monsanto Co. USD 1,294, ,506 2,602, ,268, US Newmont Mining Corporation USD 4,116, ,116, ,423, US Philip Morris Internat. Inc. USD 2,304, ,304, ,641, US Ross Stores Inc. USD 2,900, ,900, ,470, US The Priceline Group Inc. USD 50, ,000 1, ,870, US TJX Co. Inc. USD 1,800, ,800, ,958, US United Technologies Corporation USD 1,365,553 1,690,000 1,163, ,380, US92210H1059 Vantiv Inc. USD 1,001, ,001, ,313, ,207,437, United Kingdom GB British American Tobacco Plc. GBP 4,221, ,531 3,776, ,406, GB Imperial Brands Plc. GBP 2,857,941 1,001,000 7,357, ,340, GB00B24CGK77 Reckitt Benckiser Group Plc. GBP 2,885, ,605, ,837, ,584, Exchange-traded securities 8,397,471, Equities, rights and participation certificates 8,397,471, Bonds Exchange-traded securities XS % Bertelsmann SE & Co. KGaA Reg.S. Fix-to-Float v.15(2075) XS % Bertelsmann SE & Co. KGaA Reg.S. Fix-to-Float v.15(2075) 0 34,600,000 40,400, ,917, ,000, ,995, XS % Netflix Inc. Reg.S. v.17(2027) 71,400, ,400, ,478, XS % OMV AG Fix-to-Float Reg.S. Perp. 0 25,000,000 18,500, ,366, XS % Orange S.A. Fix-to-Float Perp. 15,000, ,000, ,175, XS % Telefónica Europe BV Reg.S. Fix-to-Float Perp. XS % Volkswagen International Finance NV FRN Perp ,700, ,893, ,100, ,100, ,637, ) NSFA = net sub-fund assets. The notes constitute an integral part of this annual report.

26 26 Flossbach von Storch SICAV - Multiple Opportunities Statement of assets as at 30 September 2017 (continued) Additions Disposals % in the in the share Reporting Reporting Market value of ISIN Securities period period Quantity Price NSFA 1) XS % Volkswagen International Finance NV Reg.S. Fix-to-Float Perp. XS % Volkswagen International Finance NV Reg.S. Fix-to-Float v.17 Perp. 37,600, ,600, ,542, ,500, ,500, ,259, ,264, NOK NO % Norwegen v.08(2019) 1,660,000, ,660,000, ,643, NO % Norwegen v.10(2021) 1,000,000, ,000,000, ,671, NO % Norwegen v.12(2023) 1,330,000, ,330,000, ,432, ,747, Exchange-traded securities 1,046,011, Bonds 1,046,011, Securities holdings 9,443,482, Futures contracts Short positions O STOXX Banks Future December ,000-30,000-12,810, EUX 10 YR Euro-OAT Future December ,000-4,000 4,734, ,076, Short positions -8,076, Futures contracts -8,076, Precious metals, gold Gold (bars) , ) 885, , USD Gold (bars) , , ) 1,259,913, ,259,913, Precious metals, gold 1,260,798, ) NSFA = net sub-fund assets. 2) The price corresponds to the average market value per bar. The notes constitute an integral part of this annual report.

27 27 Flossbach von Storch SICAV - Multiple Opportunities Statement of assets as at 30 September 2017 (continued) % Interest share rate Foreign currency Market value of Bank balances current account Currency in % Maturity holdings NSFA 1) DZ PRIVATBANK S.A. 2) CHF daily 174,588, ,519, DZ PRIVATBANK S.A. 2) DKK daily 2,366, , DZ PRIVATBANK S.A. 2) daily 1,248,032, ,248,032, DZ PRIVATBANK S.A. 2) GBP daily 3,170, ,618, DZ PRIVATBANK S.A. 2) JPY daily 319,483, ,405, DZ PRIVATBANK S.A. 2) MXN daily 169, , DZ PRIVATBANK S.A. 2) NOK daily 68,746, ,345, DZ PRIVATBANK S.A. 2) USD daily 48,116, ,831, DZ PRIVATBANK S.A. 2) ZAR daily 122,623, ,690, DZ PRIVATBANK S.A. (initial margin) daily 42,803, ,803, DZ PRIVATBANK S.A. (variation margin) daily 21,106, ,106, Total bank balances current account 1,526,678, Balance of other receivables and payables -29,280, Net sub-fund assets in 12,193,603, Forward exchange transactions As at 30 September 2017, the following forward exchange transactions were outstanding: % share Market value of Currency Currency amount NSFA 1) /GBP Currency sales 550,000, ,125, /JPY Currency sales 37,000,000, ,493, /USD Currency sales 415,000, ,810, ) NSFA = net sub-fund assets. Due to rounding differences in individual amounts, totals may differ from the actual value. The notes constitute an integral part of this annual report.

28 28 Flossbach von Storch SICAV - Multiple Opportunities Statement of assets as at 30 September 2017 (continued) Quantity Commitments % share of NSFA 1) Futures contracts Short positions O STOXX Banks Future December , ,200, EUX 10 YR Euro-OAT Future December , ,600, Short positions -824,800, Futures contracts -824,800, ) NSFA = net sub-fund assets. Due to rounding differences in individual amounts, totals may differ from the actual value. 2) The bank balances held are not protected by a deposit guarantee scheme. The interest rates given are valid as at 30 September The stated bank credit balances are payable on sight. The notes constitute an integral part of this annual report.

29 29 Flossbach von Storch SICAV - Multiple Opportunities Additions and disposals from 01 October 2016 to 30 September 2017 Purchases and sales of securities, note loans and derivatives during the reporting period, including changes not involving monetary transactions and not disclosed in the statement of assets. Additions Disposals in the in the ISIN Securities reporting period reporting period Equities, rights and participation certificates Exchange-traded securities Germany DE Biotest AG pref ,768 France FR Air Liquide S.A. BZR 28/09/16 0 2,151,000 FR Danone S.A. 619, ,030 Japan JP Fanuc Corporation JPY 0 513,170 JP Japan Tobacco Inc. JPY 2,732,500 9,213,000 Netherlands NL Unilever NV 2,778,006 13,000,335 Switzerland CH Swatch Group CHF 0 457,000 United States of America US Amgen Inc. USD 0 650,000 US Coca-Cola Co, USD 1,180,699 6,034,699 US34959J1088 Fortive Corporation USD 0 486,388 US NIKE Inc. USD 1,700,000 1,700,000 US The Procter & Gamble Co. USD 0 1,201,026 US88579Y1010 3M Co, USD 75, ,000 Bonds Exchange-traded securities XS % BHP Billiton Finance Ltd. Fix-to-Float v.15(2076) 0 104,800,000 DE % Bundesrep. Deutschland v.17(2027) 200,000, ,000,000 XS % OMV AG Fix-to-Float Reg.S. Perp. 0 59,000,000 XS % Total S.A. EMTN Reg.S. Fix-to-Float Perp. 0 33,500,000 MXN MX0MGO0000G % Mexico v.09(2018) 3,000,000,000 3,000,000,000 MX0MGO0000T % Mexico v.13(2018) 3,000,000,000 3,000,000,000 MX0MGO0000V % Mexico v.14(2019) 1,000,000,000 1,000,000,000 Securities admitted to trading or included in organised markets USD US380956AD % GoldCorporation Inc. v.13(2023) 0 75,800,000 US595112BC % Micron Technology Inc. v.14(2025) 0 96,400,000 US87264AAL % T-Mobile USA Inc. v.14(2023) 0 80,000,000 The notes constitute an integral part of this annual report.