Pictet Strategy Fund. Fonds Commun de Placement Mutual Fund under Luxembourg Law. Unaudited semi-annual report as at December 31, 2016

Transcription

1 Pictet Strategy Fund Fonds Commun de Placement Mutual Fund under Luxembourg Law Unaudited semi-annual report as at December 31, 2016 R.C.S. Luxembourg K960

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3 Fonds Commun de Placement Mutual Fund under Luxembourg Law Unaudited semi-annual report as at December 31,

4 Unaudited semi-annual report as at December 31, 2016 No subscription can be received on the basis of this report. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual report, including audited financial statements, and the most recent semi-annual report, if published thereafter. 2

5 TABLE OF CONTENTS ORGANISATION OF THE FUND 4 GENERAL INFORMATION 6 DISTRIBUTION ABROAD 7 FINANCIAL STATEMENTS STATEMENT OF NET ASSETS 8 STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS 9 NUMBER OF UNITS OUTSTANDING AND NET ASSET VALUE PER UNIT 10 Sub-fund : Pictet Strategy Fund - Pictet Mandat Ausgewogen - Statement of investments and other net assets 11 - Geographical and industrial classification of investments 14 NOTES TO THE FINANCIAL STATEMENTS 15 3

6 ORGANISATION OF THE FUND Management Company FundPartner Solutions (Europe) S.A., 15, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg Board of Directors of the Management Company Chairmen Mr Marc BRIOL, Executive Vice President, Banque Pictet & Cie SA, 60, route des Acacias, CH-1211 Geneva 73, Switzerland (until December 1, 2016) Mr Christian SCHRÖDER, Group Corporate Secretary and Head of Organisation, Banque Pictet & Cie SA, 60, route des Acacias, CH-1211 Geneva 73, Switzerland (since December 1, 2016) Members Mr Pierre ETIENNE, Managing Director, Pictet & Cie (Europe) S.A., 15A, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg (until December 1, 2016) Mrs Michèle BERGER, CEO and Managing Director, FundPartner Solutions (Europe) S.A., 15, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg Me. Claude KREMER, Partner, Arendt & Medernach - Avocats, 14, rue Erasme, L-2082 Luxembourg, Grand Duchy of Luxembourg Mr Geoffroy LINARD DE GUERTECHIN, Independant Director, 2, rue Jean-Pierre Beicht, L-1226 Luxembourg, Grand Duchy of Luxembourg Members of the Management Committee Mrs Michèle BERGER, CEO and Managing Director, FundPartner Solutions (Europe) S.A., 15, Avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg Mr Pascal CHAUVAUX, Head of Central Administration, FundPartner Solutions (Europe) S.A., 15, Avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg Mr Cédric HAENNI, Head of Risk & Compliance, FundPartner Solutions (Suisse) SA, 60, route des Acacias, CH-1211 Geneva 73, Switzerland Mr Dorian JACOB, Head of Investment Management Oversight, FundPartner Solutions (Europe) S.A., 15, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg Depositary Bank Pictet & Cie (Europe) S.A., 15A, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg Transfer Agent, Central Administration and Paying Agent FundPartner Solutions (Europe) S.A., 15, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg 4

7 ORGANISATION OF THE FUND (continued) Paying and Information Agent in Germany Deutsche Bank Aktiengesellschaft, Taunusanlage 12, D Frankfurt am Main, Germany Portfolio Manager Banque Pictet & Cie SA, Genève, 60, route des Acacias, CH-1211 Geneva 73, Switzerland Cabinet de revision agréé/auditor of the Fund Deloitte Audit, Société à responsabilité limitée, 560, rue de Neudorf, L-2220 Luxembourg, Grand Duchy of Luxembourg 5

8 GENERAL INFORMATION The combined financial statements of Pictet Strategy Fund (the "Fund") in CHF and the accounts of the sub-funds are closed each year on June 30. Annual reports, including audited financial statements, are established as of June 30. Unaudited semi-annual reports are established as of December 31. Annual reports, including audited financial statements, are available to the Unitholders at no cost to them at the offices of the Management Company and the Depositary Bank. Such reports form an integral part of this Issue Document. The reports contain individual information on each sub-fund and consolidated information on the Fund. Any other financial information published concerning the Fund or the Management Company, including the Net Asset Value ("NAV") of the Units of each Class and any suspension of such valuation, are available to the public at the offices of the Management Company and the Depositary Bank. The NAV per Unit and the dealing prices are available to the public at the offices of the Management Company and the Depositary Bank. All notices to Unitholders are sent to Unitholders at their address indicated in the register of Unitholders. If deemed necessary or required by law, notices are published in a newspaper and in the "Recueil électronique des sociétés et associations" (formerly "Mémorial C, Recueil Spécial des Sociétés et Associations du Grand-Duché de Luxembourg"). 6

9 DISTRIBUTION ABROAD Additional information for German investors Paying and Information Agent: Deutsche Bank Aktiengesellschaft Taunusanlage 12 D Frankfurt am Main Applications for the redemption and conversion of units may be addressed to the Paying and Information Agent in Germany. Unitholders may request that redemption proceeds, any dividends distributed and any other payments to be made to them pass through the Paying and Information Agent in Germany. Copies of the most recent prospectus, the Key Investor Information Documents, the Articles of Association of the Fund and the most recent annual and semi-annual reports may be obtained free of charge from the Paying and Information Agent in Germany. Subscription, redemption and conversion prices of units as well as all other notices to unitholders may also be obtained free of charges from the Paying and Information Agent in Germany. Furthermore, the following documents are available free of charge for consultation at the offices of the Paying and Information Agent in Germany: the management regulations; the depositary agreement concluded between Pictet & Cie (Europe) S.A. and the Management Company. Moreover, the issue and redemption prices shall be published each trading day in the "Börsen-Zeitung". Notices to the Unitholders are available free of charge at the German Paying and Information Agent, and Unitholders registered in the Fund s Register will be informed by mail. Moreover notices will also be published in the "Börsen-Zeitung" in cases prescribed by law, especially in the case of a merger, switch or suspension of the redemption of units and contractual changes with an impact on the Unitholders rights. 7

10 STATEMENT OF NET ASSETS AS AT DECEMBER 31, 2016 Combined Pictet Mandat Ausgewogen CHF EUR ASSETS Investments in securities at acquisition cost 37,852, ,309, Net unrealised gain on investments 1,755, ,637, Investments in securities at market value (note 2.d) 39,607, ,947, Cash at banks (note 2.d) 5,603, ,226, Bank deposits (note 2.d) 19,403, ,100, Interest receivable, net 111, , ,724, ,377, LIABILITIES Management fee payable (note 4) 203, , "Taxe d abonnement" payable (note 3) 8, , Other fees payable (note 5) 77, , , , TOTAL NET ASSETS AS AT DECEMBER 31, ,435, ,107, TOTAL NET ASSETS AS AT JUNE 30, ,516, ,459, TOTAL NET ASSETS AS AT JUNE 30, ,434,256.86* 32,139, * Includes the total net asset from the sub-fund Enhanced Equity merged into Pictet Mandat Ausgewogen as at May 18, 2016 The accompanying notes form an integral part of these financial statements. 8

11 STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS FOR THE PERIOD ENDED DECEMBER 31, 2016 Combined Pictet Mandat Ausgewogen NET ASSETS AT THE BEGINNING OF THE PERIOD 66,516, ,459, INCOME Dividends, net (note 2.h) 101, , Interest on bonds, net (note 2.h) 94, , Bank interest -29, , EXPENSES CHF EUR 167, , Management fees (note 4) 412, , Depositary fees, bank charges and interest (note 4) 54, , Professional fees, audit fees and other expenses 87, , Administration fees (note 4) 66, , "Taxe d abonnement" (note 3) 15, , Transaction fees (note 2.i) 41, , , , NET INVESTMENT LOSS -510, , Net realised gain on sales of investments 257, , Net realised gain on foreign exchange 175, , Net realised loss on options -35, , Net realised gain on forward contracts 1,732, ,616, NET REALISED GAIN 1,620, ,511, Change in net unrealised appreciation: - on investments 411, , INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 2,031, ,895, Proceeds from subscriptions of units 2,742, ,557, Cost of units redeemed -6,143, ,731, Dividend distributed (note 8) -78, , Revaluation difference on the net assets at the beginning of the period* -632, NET ASSETS AT THE END OF THE PERIOD 64,435, ,107, * The difference mentioned above results from the conversion of the net assets at the beginning of the period (for the sub-funds denominated in currencies other than CHF) at exchange rates applicable on June 30, 2016 and exchange rates applicable on December 31, The accompanying notes form an integral part of these financial statements. 9

12 NUMBER OF UNITS OUTSTANDING AND NET ASSET VALUE PER UNIT Sub-fund Unit Class Currency Number of units outstanding Net asset value per unit Net asset value per unit Net asset value per unit Pictet Mandat Ausgewogen P EUR 391,

13 - Pictet Mandat Ausgewogen STATEMENT OF INVESTMENTS AND OTHER NET ASSETS AS AT DECEMBER 31, 2016 (EXPRESSED IN EUR) Description Currency Quantity/Nominal Market value (note 2) % of net assets I. TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING OR DEALT IN ON ANOTHER REGULATED MARKET SHARES SPAIN INDITEX INDUSTRIA DE DISENO TEXTIL 18, , , SWEDEN ASSA ABLOY 'B' 40, , , SWITZERLAND LINDT & SPRUENGLI 'C' , NESTLE 10, , ROCHE HOLDING D.RIGHT 2, , S.G.S , ,457, UNITED KINGDOM COMPASS GROUP 37, , NATIONAL GRID 53, , RECKITT BENCKISER GROUP 7, , ,818, UNITED STATES ALPHABET 'A' , APPLE 5, , CELGENE 5, , MERCK & CO 10, , NIKE 'B' 12, , PEPSICO 6, , STARBUCKS 10, , THERMO FISHER SCIENTIFIC 4, , TJX COS 7, , WALT DISNEY 6, , ,764, TOTAL SHARES 11,329, BONDS BELGIUM 1.00% KBC GROEP 16/21 -SR- EUR 1,000, ,026, ,026, CANADA FRN TORONTO-DOMINION BANK 15/20 EUR 650, , , The accompanying notes form an integral part of these financial statements. 11

14 - Pictet Mandat Ausgewogen STATEMENT OF INVESTMENTS AND OTHER NET ASSETS AS AT DECEMBER 31, 2016 (EXPRESSED IN EUR) Description Currency Nominal Market value (note 2) % of net assets DENMARK 1.125% ISS GLOBAL (FR/RAT) 15/21 -SR- EUR 500, , , FRANCE 1.125% PUBLICIS GROUPE 14/21 -SR- EUR 400, , % RCI BANQUE 15/22 EUR 600, , % CAP GEMINI 15/20 EUR 400, , % ILIAD 15/22 -SR- EUR 400, , ,865, IRELAND 0.80% G.E. CAPITAL EUROPEAN FUNDING 15/22 -SR- EUR 400, , % FCA CAPITAL IRELAND 16/21 -SR- EUR 300, , , LUXEMBOURG 4.625% GLENCORE FINANCE EUROPE (FR/RAT) 12/18 -SR- EUR 300, , , NETHERLANDS 1.168% GENERAL MOTORS FINANCE 16/20 -SR- EUR 700, , % TEVA PHARMA FINANCE II 15/23 -SR-S EUR 600, , % HEINEKEN 12/20 S.6 -SR-S EUR 400, , ,740, SPAIN 1.00% SANTANDER CONSUMER FINANCE 16/21 -SR- EUR 1,000, ,014, % TELEFONICA 13/19 '39' EUR 300, , ,333, UNITED ARAB EMIRATES 1.75% EMIRATES TELECOM 14/21 EUR 300, , , UNITED KINGDOM 1.00% BAT INTERNATIONAL FINANCE 15/22 -SR- EUR 500, , % BP CAPITAL MARKETS 15/23 EUR 400, , % FCE BANK 15/22 -SR-S EUR 600, , ,528, UNITED STATES 0.50% IBM CORP. 16/21 -SR- EUR 1,000, ,016, % MCDONALD'S 16/21 -SR- EUR 1,000, ,010, % BERKSHIRE HATHAWAY 15/23 -SR- EUR 1,000, ,009, % COCA-COLA 15/23 EUR 1,000, ,021, The accompanying notes form an integral part of these financial statements. 12

15 - Pictet Mandat Ausgewogen STATEMENT OF INVESTMENTS AND OTHER NET ASSETS AS AT DECEMBER 31, 2016 (EXPRESSED IN EUR) Description Currency Quantity/Nominal Market value (note 2) % of net assets 1.00% GENERAL MILLS 15/23 EUR 400, , % MASTERCARD 15/22 SR EUR 500, , % MORGAN STANLEY 14/21 -SR-S EUR 350, , ,359, TOTAL BONDS 15,369, TOTAL I. 26,699, II. UNITS OF INVESTMENT FUNDS IRELAND ARTISAN PARTNERS - ARTISAN GLOBAL VALUE FUND I-USD 220, ,604, ISHARES VII - MSCI JAPAN B USD -ACC- 9, ,161, SOURCE MARKET - ENERGY S&P US SELECT SECTOR A 3, ,079, SOURCE MARKET - FINANCIALS S&P US SELECT SECTOR A 12, ,808, ,654, LUXEMBOURG PICTET - EMERGING CORPORATE BONDS HI EUR 14, ,296, PICTET - EUR HIGH YIELD I 5, ,297, ,593, TOTAL II. 10,248, TOTAL INVESTMENTS 36,947, CASH AT BANKS 5,226, BANK DEPOSITS 18,100, OTHER NET LIABILITIES -166, TOTAL NET ASSETS 60,107, The accompanying notes form an integral part of these financial statements. 13

16 - Pictet Mandat Ausgewogen GEOGRAPHICAL AND INDUSTRIAL CLASSIFICATION OF INVESTMENTS AS AT DECEMBER 31, 2016 Geographical classification (in % of net assets) United States Ireland United Kingdom 5.56 Luxembourg 4.85 Switzerland 4.09 Spain 3.19 France 3.11 Netherlands 2.89 Belgium 1.71 Sweden 1.17 Canada 1.09 Denmark 0.86 United Arab Emirates Industrial classification (in % of net assets) Bonds issued by companies Units of investment funds Food and soft drinks 3.11 Gastronomy 1.96 Pharmaceuticals and cosmetics 1.89 Retail and supermarkets 1.86 Construction of machines and appliances 1.17 Utilities 1.03 Electronics and electrical equipment 1.02 Internet, software and IT services 1.00 Computer and office equipment 1.00 Public utilities 0.99 Leisure 0.99 Textiles and clothing 0.96 Miscellaneous trade 0.95 Biotechnology The accompanying notes form an integral part of these financial statements. 14

17 NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2016 NOTE 1 GENERAL Pictet Strategy Fund (the "Fund") was incorporated as a mutual investment fund (fonds commun de placement) with multiple sub-funds organized under the laws of the Grand Duchy of Luxembourg. The assets of the Fund are the undivided co-proprietorship of the unitholders, managed by FundPartner Solutions (Europe) S.A. (the "Management Company"). The Fund is subject to Part I of the Luxembourg law of December 17, 2010, as amended (the "Law") on undertakings for collective investment. The Fund was incorporated for an indefinite period. In accordance with the Luxembourg Law of May 27, 2016, the Fund is registered at the Trade and Companies Register of Luxembourg under the number K960. FundPartner Solutions (Europe) S.A., a public limited company (société anonyme) with registered office at 15, avenue J.F. Kennedy, L-1855 Luxembourg, was appointed management company of the Fund. It is a management company within the meaning of Chapter 15 of the 2010 Law. As at December 31, 2016, Pictet Strategy Fund comprises one active sub-fund: Pictet Strategy Fund - Pictet Mandat Ausgewogen denominated in Euro (EUR) NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) General The financial statements are prepared in accordance with generally accepted accounting principles and presented in accordance with the legal reporting requirements applicable in Luxembourg relating to undertakings for collective investment. b) Conversion of foreign currencies for each sub-fund Cash at banks, other net assets and the market value of the investment portfolio expressed in currencies other than the currency of the sub-funds are converted into the currency of the sub-funds at the exchange rate prevailing at the end of the period. Income and expenses expressed in currencies other than the base currency of the sub-fund are converted into the currency of the sub-funds at the exchange rate applicable on the transaction date. Resulting foreign exchange gains and losses are recorded in the statement of operations and changes in net assets. 15

18 NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2016 (continued) c) Combined financial statements of the Fund The combined financial statements of the Fund are expressed in CHF and correspond to the sum of items in the financial statements of each sub-fund, converted into CHF at the exchange rate prevailing at the end of the period. d) Valuation of investment The assets of each sub-fund are valued as follows: (1) The value of any cash in 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 shall be 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 shall be arrived at after making such discount as the Management Company may consider appropriate in such case to reflect the true value thereof. (2) Securities are valued at the most representative price on the markets and / or of trades made on these markets by the managers or other market intermediaries. This may involve the last available price or the price at any other time on markets deemed by the Management Company to be most representative, taking into account liquidity criteria and trades that have been made on the markets in question. If no price is available, securities are valued, prudently and in good faith by the Board of Directors of the Management Company, on the basis of their estimated sale price. (3) For each sub-fund, securities whose value is expressed in a currency other than the currency of the sub-fund in question are converted to the relevant currency based on the average price between the last available bid / ask price in Luxembourg or, failing that, on the market that is most representative for these securities. (4) Each share or unit in an open-ended undertaking for collective investment is valued at the last available Net Asset Value ("NAV") (or bid price for dual priced undertakings for collective investment) whether estimated or final, which is computed for such unit or shares on the same Dealing Day, failing which, it s the last NAV (or bid price for dual priced undertakings for collective investment) computed prior to the Dealing Day on which the NAV of the Units in the Fund is determined. (5) In respect of shares or units of an undertaking for collective investment held by the Fund, for which issues and redemptions are restricted and a secondary market trading is effected between dealers who, as main market makers, offer prices in response to market conditions, the Board of Directors of the Management Company may decide to value such shares or units in line with the prices so established. (6) If, since the day on which the latest NAV was calculated, events have occurred which may have resulted in a material change of the NAV of shares or units in other undertaking for collective investment held by the Fund, the value of such shares or units may be adjusted in order to reflect, in the reasonable opinion of the Board of Directors of the Management Company, such change of value. (7) In circumstances where the interests of the Management Company or its Unitholders so justify (avoidance of market timing practices, for example), the Board of Directors of the Management Company may take any appropriate measures, such as applying a fair value pricing methodology to adjust the value of the Fund s assets. 16

19 NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2016 (continued) (8) The liquidating value of futures, forward and options contracts not quoted on any stock exchange or traded on other regulated markets shall be determined, consistently for each different variety of contracts, prudently and in good faith on the basis of foreseeable settlement prices. The liquidating value of futures, forward and options contracts quoted on stock exchanges or traded on other regulated markets shall be based upon the last available settlement prices of these contracts on these markets; 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 of the Management Company may deem fair and reasonable. e) Accounting of future contracts Unrealised gains and losses on future contracts are settled daily through the reception/payment of a cash amount corresponding to the daily increase/decrease of the market value of each opened futures. Such cash amount is recorded under the caption "Cash at banks" in the statement of net assets and the corresponding amount is recorded under the caption "realised gain and loss on future contracts" in the statement of operations and changes in net assets. f) Net realised gains/losses on investments Realised gains or losses on sales of securities are calculated on the basis of average cost. g) Acquisition cost of securities in portfolio The cost of securities denominated in currencies other than the base currency of the sub-fund is calculated at the exchange rate prevailing on the acquisition date. h) Income Dividends are recorded at the ex-dividend date. Interest is recorded on an accrual basis. i) Transaction fees The transaction fees represent the costs incurred by each sub-fund in connection with purchases and sales of investments. Transaction fees include brokerage fees, bank commissions, foreign tax, depositary fees and other fees. They are included in the statement of operations and changes in net assets and cover the year ended December 31, NOTE 3 "TAXE D ABONNEMENT" Under the legislation and regulations currently prevailing, the Fund is not subject to any income tax. The Fund is subject to a "taxe d abonnement" of 0.05% per annum of its net assets, payable quarterly and calculated on the basis of the net assets at the end of each quarter. The portion of the net assets invested in units of other Luxembourg undertakings for collective investment is exempt from the "taxe d abonnement", provided such units have already been subject to this tax. 17

20 NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2016 (continued) NOTE 4 FUND S EXPENSES An annual service fee, not exceeding 0.6%, calculated on the average NAV of each sub-fund, is paid quarterly or monthly, depending on the terms and conditions of the contract, to the Management Company in payment for the services provided by it to the Fund. The Management Company also receives management fees from the sub-funds to remunerate the Investment Managers, the Investment Advisors and the distributors, if any. These fees are charged to the sub-classes of units of a sub-fund in proportion to its net assets. In payment for its (depository) services, the Depositary Bank charges a fee for the deposit of assets and the safekeeping of securities. This fee are charged quarterly and do not exceed 0.3% based on the average net assets of the Fund on the relevant quarter. Transaction fees are also charged to the Fund at rates fixed by common agreement. NOTE 5 OTHER FEES PAYABLE As at December 31, 2016, the other fees payable mainly include audit, administration and depositary fees. NOTE 6 EXCHANGE RATES AS AT DECEMBER 31, 2016 The exchange rate used to convert into CHF the net assets of the Fund as at December 31, 2016, is as follows: 1 CHF = EUR NOTE 7 FUTURE CONTRACTS The Fund had the following future contracts outstanding as at December 31, 2016: Pictet Strategy Fund - Pictet Mandat Ausgewogen Maturity Currency Commitment date in EUR Purchase of Euro Stoxx 50 ESTX 50 EUR 20/03/2017 EUR 8,226, Purchase of S&P 500 Index 17/03/2017 USD 7,411, Purchase of US 10Y Treasury Bond 22/03/2017 USD 3,819, NOTE 8 DIVIDENDS DISTRIBUTED On October 26, 2016, the Board of Directors of the Management Company decided to distribute EUR 0.19 dividends per unit for the sub-fund Pictet Strategy Fund - Pictet Mandat Ausgewogen with ex-date November 25, 2016 and with payment date November 30,

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