PROSPECTUS GENERAL CHARACTERISTICS. UCITS in compliance with European standards

Transcription

1 UCITS in compliance with European standards PROSPECTUS The shares or units of the fund mentioned herein ("the Fund") have not been registered under the US Securities Act of 1933 and may not be offered or sold directly or indirectly in the United States of America (including its territories and possessions), to US persons, as defined in Regulation S ("US persons"). 1 General Characteristics Fund type Administrators Management principles General Characteristics Special Provisions Commercial information Investment rules Regulatory ratios Method used to calculate overall risk Asset valuation and accounting rules Valuation methods Valuation methods Method used to recognise income from fixed-income securities Method used to recognise expenses...16 GENERAL CHARACTERISTICS 1.1 Fund type Name GROUPAMA ASIE Legal form and Member State in which the Fund was incorporated French-law mutual fund (Fonds Commun de Placement, FCP) Formation date 21 August Planned term Fund initially formed for a 99-year term. GROUPAMA ASIE 1/16 Prospectus/published on 14/12/2012

2 Summary of the management offer: Unit class ISIN code Appropriation of earnings Currency of expressio n Eligible subscribers Minimum initial subscription Maximum management fee Net asset value at launch I class FR * Accumulation Euro All subscribers 150, % 1,000 N class FR Accumulation Euro All subscribers % 500 M class FR Accumulation Euro Reserved for institutional investors from Europe and Canada One thousandth of a unit 1.50% 100 NAV split by 100 on 10 March 2009 S class FR Distribution Euro G class FR Distribution Euro Reserved for Groupama SA's companies and subsidiaries Reserved for Groupama SA's companies, subsidiaries and regional banks 1,000, % 10, , % 10,000 O class FR Accumulation Euro Reserved for dedicated UCITS and mandates managed exclusively by Groupama Asset Management or its subsidiaries One thousandth of a unit 0.10% 10,000 * Including all unitholders who subscribed to the Fund before unit classes were created. Place where the latest annual report and interim financial statement may be obtained Investors will be sent the Fund s latest annual and interim documents within one week of requesting them in writing from: Groupama Asset Management, 58 bis Rue La Boétie Paris - France. The documents are also available on the company s website at Contact details: For corporate and institutional investors: Groupama Asset Management s Business Development Department (sales office: ). For individual investors: Your distributor (GROUPAMA SA s distribution networks; external distributors approved by Groupama Asset Management). Any additional information, if necessary, may be obtained from the Groupama Asset Management Business Development Department: ). 1.2 Administrators Management company Groupama Asset Management, 58 bis Rue la Boétie Paris - France, a portfolio management company authorised by the Commission des operations de bourse, now superseded by the Autorité des marchés financiers (French Financial Markets Authority - AMF), under number GP on 5 January Depositary Custodian Clearing Fund Accounting CACEIS Bank France, 1-3 Place Valhubert Paris - France, a credit institution authorised by the CECEI on 1 April GROUPAMA ASIE 2/16 Prospectus/published on 14/12/2012

3 Institutions appointed to receive subscriptions and make redemptions, and responsible for respecting the clearing deadlines indicated in the prospectus: - CACEIS Bank France - Groupama Banque on behalf of clients in relation to whom it provides custody-account keeping services. Groupama Banque, 67 Rue Robespierre Montreuil Cedex France, a credit establishment authorised by the CECEI on 23 July Statutory Auditor Ernst & Young et Autres, Tour First, 1-2 Place des Saisons Paris La Défense 1, France Distributors GROUPAMA SA's distribution networks (8-10 Rue d Astorg, Paris, France), and external distributors approved by Groupama Asset Management. Advisor A partnership agreement has been signed with NOMURA ASSET MANAGEMENT, a Japanese company, established at Nihonbashi, Chuo-ku, Tokyo, Japan. The Singapore-based subsidiary of Nomura Asset Management provides stock selection advice to Groupama Asset Management, but does not take any decisions on behalf of the Fund. Accounting representative: CACEIS Fund Administration France, 1-3 place Valhubert Paris 2 MANAGEMENT PRINCIPLES 2.1 General Characteristics Characteristics of units Type of right attached to the unit class: Each unitholder has a shared ownership right in the assets of the Fund in proportion to the number of units held. Unitholder Register and Fund Accounting: Fund accounting is provided by the custodian, CACEIS Bank France. Unit administration is performed by Euroclear France. Voting rights: No voting rights are attached to the units, as decisions are made by the management company. Types of units: Units are registered and/or bearer units. Fractioning: Units may be subscribed in exact amounts or in ten-thousandths of a unit for I and N classes. Units may be subscribed in exact amounts or in thousandths of a unit for M, S, O and G classes. Units may be redeemed in ten-thousandths of a unit for I and N classes and in thousandths of a unit for M, S, O and G classes. Financial year end The last Paris Stock Exchange trading day in June. GROUPAMA ASIE 3/16 Prospectus/published on 14/12/2012

4 The first financial year end was the last Paris Stock Exchange trading day in June Tax system The Fund is not subject to corporation tax. In accordance with the principle of transparency, the tax authorities consider the unitholder to be the direct owner of a share of the financial instruments and cash held in the Fund. The tax treatment of any capital gain or income from holding Fund units depends on tax provisions specific to the investor s own particular circumstances and/or on the tax provisions in the country where the investor resides. Investors should seek professional financial advice. The French tax system considers a switch from one unit class to another unit class to be a sale subject to capital gains tax. 2.2 Special Provisions ISIN codes of the unit classes: I class accumulation : FR N class accumulation : FR M class accumulation : FR S class distribution : FR O class accumulation": FR G class distribution : FR Classification "International Equities" UCITS Investment objective The Fund's investment objective is to outperform its benchmark, the Morgan Stanley Capital International All Country Asia Pacific ex- Japan index (MSCI AC Asia Pacific ex- Japan), closing price, net dividends reinvested, expressed in euros. Benchmark index The benchmark is the MSCI AC Asia Pacific ex-japan index, closing price, net dividends reinvested, expressed in euros (but not hedged against exchange rate risk of the different underlying Asian currencies). The index is composed of approximately 640 securities from 13 different countries. The principal stock markets represented are: Australia (29%) China + Hong-Kong (25%), South Korea (15%), Taiwan (12%), India (7%), and to a lesser extent, Singapore, Malaysia, Indonesia, Thailand, New Zealand, the Philippines and Pakistan. These percentages are indicative and subject to change based on revisions of the index. This index is only a point of reference, although the Fund manager seeks to follow it to some extent. The behavioural profiles of the portfolio and index are generally similar. Investment Strategy Description of the strategies used: Portfolio composition strategy: In selecting securities for the portfolio, a dual top-down and bottom-up approach is applied. Top-down: fund managers start from the macroeconomic fundamentals of each country (i.e. unemployment rate, inflation level, GDP growth and interest rates) and progressively work down to the level of individual securities, having studied the potential of each economic sector beforehand. Bottom-up: this is a progressively upward approach that starts by examining the intrinsic qualities of a company and its valuation. It then analyses the economic outlook of the sector in which each company operates as well as the fundamentals of the country or economic region in which the company operates. GROUPAMA ASIE 4/16 Prospectus/published on 14/12/2012

5 Each approach produces an identifiable source of profit or return, to which must be added the ideal time to invest, referred to as market timing. To profit from market movements, the Fund balances the two approaches as much as possible and does not structurally favour either one in principle. These two approaches combine to construct the portfolio. These approaches activate various other value-adding services such as economic analyses, financial planning, financial analysis, and management. We are assisted by a partner, NOMURA ASSET MANAGEMENT, through its subsidiary based in Singapore. This assistance is particularly helpful for the bottom-up section of our strategy, specifically in terms of their financial analysis skills. The Fund's performance is driven by both sector and geographical allocation, as well as by stock picking. To a lesser degree, liquidity management may also contribute to this added value. Lastly, in managing the Fund, although equities are the preferred financial instruments, we may also use, on a marginal basis, derivatives whose underlying assets are closely tied to the assets in the portfolio or to assets that the manager wishes to bring into the portfolio. Although the portfolio does not exclude investments outside the Asian markets, the vast majority of investments are normally in Asian stocks. Investments outside of Asia are clearly exceptional, even marginal. Management style: The Fund adopts a risk-controlled active management style aimed at outperforming its benchmark. Assets, excluding embedded derivatives: Equity Markets: In terms of portfolio management, Asian equities from the thirteen countries included in the benchmark index (over 60% of the assets) constitute the preferred investment universe. However, the manager may also invest in equity markets other than those of these thirteen countries on an ancillary basis. The minimum equity risk exposure is 60% of the Fund's net asset value. Company size is not a primary stock selection principle. In line with the securities represented in the benchmark index, the manager is not interested solely in large-cap companies, although they remain preponderant in the portfolio, but also in medium-sized companies. The relative weighting of large-cap companies versus smaller companies is not fixed, but varies according to market opportunities and the relative valuations of the various securities. Moreover, stock selection is not dependent on a particular stock market. Up to a maximum of 30% of the Fund s net assets may be invested in bonds and other negotiable debt securities to compensate for reverse repurchase s; the majority of bonds used will be government bonds and, to a lesser degree, investment-grade bonds. UCITS units or shares: Up to 10% of the Fund s net assets may be invested in units or shares of a UCITS The following UCITS may be used: International Equities, Money Market and Short-term Money Market, French or European coordinated UCITS. "Money Market and Short-term Money Market UCITS will be used to optimise the fund's cash management. Trackers (listed index entities) may be used. Derivative instruments: GROUPAMA ASIE 5/16 Prospectus/published on 14/12/2012

6 Derivatives are used to a limited extent and have only a slight impact on performance and investment risk. However, they may be used from time to time to support the Fund's investment strategy while slightly improving performance. Therefore derivative products are occasionally used to maximise performance. Types of markets targeted: The Fund may trade in all types of derivatives markets: Regulated markets Organised markets Over-the-counter markets Risks in which the manager intends to trade: The manager will trade in: Equity risk (specific to a stock or globally to a stock market index) Exchange rate risk Types of trades: The manager will buy or sell derivatives for the purpose of: Hedging Exposure Types of derivatives used: The manager may trade in particular in: Options: agreement between two parties by which one gives the other the right to purchase from him/her (i.e. a buy or call option) or sell to him/her (i.e. a sell or put option) a financial asset subject to the payment or receipt of a sum of money (the option price): - Purchases of calls and puts. - Sales of calls on equities held, principally to protect/capitalise positions. - Sales of puts covered by cash or cash-equivalents corresponding to the securities that the manager wishes to acquire. Swaps (a financial flow exchange agreement between two entities over a given period). Can be used occasionally for the same purpose as options. Purchases or sales of index futures to temporarily manage the overall exposure of the portfolio. Currency futures (sales or purchases). Derivatives s are subject to a maximum commitment of 100% of the Fund s net asset value. Deposits: Up to 10% of the Fund's net assets may be in the form of deposits at a credit establishment based in a Member State of the European Union or European Economic Area, with a term of less than 12 months, as a store of cash to be used as needed. Cash borrowings: On an exceptional basis, with the aim of investing in anticipation of a market rise or on a temporary basis as part of managing large redemptions, the Manager may borrow cash up to the value of 10% of the net assets of the Fund from the custodian, CACEIS Bank France. Temporary purchases and sales of securities: The Fund does not anticipate using leveraging as a structural approach. The Fund will only occasionally undertake repurchase and reverse repurchase agreements and securities lending. However, the Fund may lend up to 40% of its net assets to optimise existing lines. GROUPAMA ASIE 6/16 Prospectus/published on 14/12/2012

7 Similarly, up to 30% of the Fund s net assets may consist of reverse repurchase agreements to back uninvested cash. (see embedded non-derivative assets). From time to time, equity exposure may slightly exceed 100% and create a negative cash position. This type of unusual situation would be short-lived, and direct equity exposure will not exceed 110% of net assets. Additional information is available in the fees and charges section. Risk profile Capital risk: Investors will be exposed to the risk of losing their invested capital, since the Fund does not offer a capital guarantee. Equity risk: The principal risk to which investors are exposed is equity risk, as more than 60% of the Fund is invested in equities. The Fund's net asset value is highly likely to experience fluctuations comparable to those seen in its preferred investment universe, the Asia stock markets. The value of an investment and the income from it may go up as well as down and investors may not recover the capital initially invested in the company. The value of the portfolio may be impacted by external factors such as political and economic developments or political changes in certain governments. Exchange rate risk: Exchange rate risk exists because at least 60% of the Fund's net assets will be invested in securities or UCITS denominated in various Asian currencies. Use of derivative markets: Using derivatives may increase or decrease the volatility of the Fund by respectively increasing or decreasing its exposure. Credit risk: Credit risk shall not exceed 20% of the net assets (cash and reverse repurchase agreements). Counterparty risk: Counterparty risk consists of assessing the risks for an entity in terms of the commitments linking it to a counterparty. This therefore refers to the default risk of a counterparty, causing it to default on payment. In accordance with regulations, this risk may not exceed 10% of net assets by counterparty. Eligible subscribers and typical investor profile I and N classes: open to all subscribers. M class: reserved for institutional investors from Europe and Canada S class: reserved for Groupama SA's companies and subsidiaries. O class: reserved for dedicated UCITS and mandates managed exclusively by Groupama Asset Management or its subsidiaries G class: reserved for Groupama SA's companies, subsidiaries and regional banks. The recommended investment term is more than five years. FCP GROUPAMA ASIE is aimed at investors seeking to enhance their savings by investing in Asian equity markets. Investors should have an aggressive approach to equity investment. Proportion suitable for investment in the Fund: all equity investments may be subject to significant fluctuations. The amount that might reasonably be invested in FCP GROUPAMA ASIE should be determined with reference to the investor's personal situation. To determine this, investors should take into consideration their personal wealth, their needs at the present time and over the next five years, and the level of risk they are willing to accept. Investors are also advised to diversify their investments sufficiently to avoid being exposed exclusively to the risks of this Fund. Investors accepting only moderate risk will have less than 30% of their total portfolio exposed to equities, investors seeking a compromise between risk and performance will have approximately 50% of their total portfolio exposed to equities, and investors seeking maximum performance combined with risk will have up to 70% or more of their total portfolio exposed to equities. GROUPAMA ASIE 7/16 Prospectus/published on 14/12/2012

8 Investment diversification: this should be achieved by investing in different classes of assets (money market instruments, bonds and equities), and in different sectors and geographical regions so as to spread the risks more effectively and optimise portfolio management by taking market trends into account. Income calculation and appropriation methods The Fund has three unit classes: I class: Accumulation N class: Accumulation M class: Accumulation S class: Distribution. O class: Accumulation. G class: Distribution. Characteristics of units Net asset value at launch of the units: I class: 1,000 euros. N class: 500 euros. M class: 100 euros (NAV split by 100 on 10 March 2009) S class: 10,000 euros O class: 10,000 euros G class: 10,000 euros Currency of units: Euro. Fractioning: I and N classes: split into ten-thousandths of a unit. M, S, O and G classes: split into thousandths of a unit. Subscription and redemption procedures Subscription and redemption requests are cleared by CACEIS Bank France and may be received every bank business day up to 11:00 am at CACEIS Bank France and Groupama Banque, for those clients for whom it provides custody-account keeping services. Subscriptions and redemptions are executed on a known net asset value basis, with settlement on D+3 Euronext Paris. Orders that are to be executed at a net asset value dated the day following an official public holiday must be received by the deadline on the day preceding the holiday. Investors are reminded that when sending instructions to marketing agents other than the organisations indicated above, they must take into account that the cut-off time for clearing imposed by CACEIS Bank France applies to these marketing agents. Consequently, these marketing agents may stipulate an earlier cut-off time of their own, which may precede the time mentioned above, so that instructions can be sent to CACEIS Bank France on time. The Fund s net asset value is calculated on every trading day except for official French public holidays. The reference calendar is that of the Hong Kong Stock Exchange. Fractioning: Units may be subscribed in exact amounts or in ten-thousandths of a unit for I and N classes. Units may be subscribed in exact amounts or in thousandths of a unit for M, S, O and G classes. Units may be redeemed in ten-thousandths of a unit for I and N classes and in thousandths of a unit for M, S, O and G classes. The net asset value may be obtained from: the offices of Groupama Asset Management. GROUPAMA ASIE 8/16 Prospectus/published on 14/12/2012

9 The minimum initial subscription is I class: 150,000 N class: 500 M class: One thousandth of a unit S class: 1,000,000 O class: One thousandth of a unit G class: 300,000 Fees and charges Subscription and redemption fees Subscription fees increase the subscription price paid by the investor, while redemption fees decrease the redemption price. The fees accruing to the Fund compensate it for the costs it has to pay to invest or divest the holdings of the Fund. The remaining fees accrue to the management company, distributor, etc. I and N classes: Charges borne by the investor, collected at the time of subscription or redemption Base Rate Subscription fees not accruing to the Fund* 2.75% Subscription fees accruing to the Fund Redemption fees not accruing to the Fund* Redemption fees accruing to the Fund (*) Bank charges of up to 50 euros per are added to these fees in Italy. M class: Charges borne by the investor, collected at the time of subscription or redemption Base Rate Subscription fees not accruing to the Fund* 4% Subscription fees accruing to the Fund Redemption fees not accruing to the Fund* Redemption fees accruing to the Fund GROUPAMA ASIE 9/16 Prospectus/published on 14/12/2012

10 G and S classes: Charges borne by the investor, collected at the time of subscription or redemption Base Rate Subscription fees not accruing to the Fund Subscription fees accruing to the Fund Redemption fees not accruing to the Fund Redemption fees accruing to the Fund O class: Charges borne by the investor, collected at the time of subscription or redemption Base Rate Subscription fees not accruing to the Fund 2.5% Subscription fees accruing to the Fund Redemption fees not accruing to the Fund 2.5% Redemption fees accruing to the Fund Exemptions: in the event of a redemption followed by a subscription on the same day, for the same amount, on the basis of the same net asset value, the subscription will not incur a subscription commission. Operating and management fees These fees include all those charged directly to the Fund, except for fees. Transaction fees include intermediary fees (e.g. brokerage fees, stock market taxes, etc.) and the fee, if any, that may be charged, notably by the custodian and the management company. The following fees may be charged in addition to the operating and management fees: Outperformance commissions. These reward the management company if the Fund's performance exceeds its objectives. They are therefore charged to the Fund; Transaction fees charged to the Fund; GROUPAMA ASIE 10/16 Prospectus/published on 14/12/2012

11 A portion of the income from s involving the temporary acquisition and sale of securities. Regarding charges actually invoiced to the Fund, please refer to the Charges Section of the Key Investor Information Document (KIID). I and M classes: Fees charged to the UCITS Base Rate Management fees including external management fees (statutory auditor, custodian, distribution, lawyers, etc.) Deducted from Fund units or shares 1.50% inc. tax Maximum indirect fees (management fees and charges) Transaction fee accruing to the custodian, CACEIS Bank France * 0 to inc. tax** Transaction fee accruing to the management company By type of instrument (taxes included): Equities and similar: max. 0.1% Bonds and similar: max. 0.03% Futures and options: max. 1 per lot Outperformance commission * Not significant, the Funds held in the portfolio are below 20%. ** In accordance with the current rate of VAT N class: Fees charged to the UCITS Base Rate Management fees including external management fees (statutory auditor, custodian, distribution, lawyers, etc.) Deducted from Fund units or shares 2% (taxes included)* Maximum indirect fees (management fees and charges) Transaction fee accruing to the custodian, CACEIS Bank France ** 0 to inc. tax*** GROUPAMA ASIE 11/16 Prospectus/published on 14/12/2012

12 Transaction fee accruing to the management company By type of instrument (taxes included): Equities and similar: max. 0.1% Bonds and similar: max. 0.03% Futures and options: max. 1 per lot Outperformance commission * Of which 1.50% is the financial management fee. ** Not significant, the Funds held in the portfolio are below 20%. *** In accordance with the current rate of VAT S class: Fees charged to the UCITS Base Rate Management fees including external management fees (statutory auditor, custodian, distribution, lawyers, etc.) 0.95% inc. tax Maximum indirect fees (management fees and charges) Transaction fee accruing to the custodian, CACEIS Bank France * 0 to inc. tax** Transaction fee accruing to the management company By type of instrument (taxes included): Equities and similar: max. 0.1% Bonds and similar: max. 0.03% Futures and options: max. 1 per lot Outperformance commission * Not significant, the Funds held in the portfolio are below 20%. ** In accordance with the current rate of VAT G class: Fees charged to the UCITS Base Rate Management fees including external management fees (statutory auditor, custodian, distribution, lawyers, etc.) 1.05% inc. tax Maximum indirect fees (management fees and charges) * GROUPAMA ASIE 12/16 Prospectus/published on 14/12/2012

13 Transaction fee accruing to the custodian, CACEIS Bank France 0 to inc. tax** Transaction fee accruing to the management company By type of instrument (taxes included): Equities and similar: max. 0.1% Bonds and similar: max. 0.03% Futures and options: max. 1 per lot Outperformance commission * Not significant, the Funds held in the portfolio are below 20%. ** In accordance with the current rate of VAT O class: Fees charged to the UCITS Base Rate Management fees including external management fees (statutory auditor, custodian, distribution, lawyers, etc.) 0.10% inc. tax Maximum indirect fees (management fees and charges) Transaction fee accruing to the custodian, CACEIS Bank France * 0 to inc. tax** Transaction fee accruing to the management company By type of instrument (taxes included): Equities and similar: max. 0.1% Bonds and similar: max. 0.03% Futures and options: max. 1 per lot Outperformance commission * Not significant, the Funds held in the portfolio are below 20%. ** In accordance with the current rate of VAT Income from s involving the temporary acquisition and sale of securities accrues to the Fund. Selection of intermediaries: Managers have a list of authorised brokers. A Broker Committee meets every six months to assess managers evaluations of brokers and the entire value-adding chain covering analysts, middle office etc, and to justify the inclusion of new brokers and/or exclusion of others. Based on their expertise, each manager reports in terms of the following criteria: Quality of price execution Liquidity offered Quality of research Broker's longevity Quality of operations, etc. GROUPAMA ASIE 13/16 Prospectus/published on 14/12/2012

14 Tax system Note: Depending on your tax system, capital gains and income resulting from ownership of the Fund s units may be subject to tax. We recommend that you seek advice on this subject from your tax advisor. Switching from one unit class to another equates to a redemption and may be subject to capital gains tax. 3 COMMERCIAL INFORMATION All information relating to the Fund may be obtained by writing to: Groupama Asset Management 58 bis Rue La Boétie Paris - France or by going to the website: http// The net asset value of the Fund is available on the website: The latest annual and interim documents are available to unitholders by writing to: Groupama Asset Management 58 bis Rue La Boétie Paris - France Subscription and redemption requests are cleared by CACEIS Bank France at the following address: Caceis Bank France,1-3 Place Valhubert Paris Cedex 13 - France Information regarding the environmental, social and governance criteria (ESG): Additional information on the management company s procedures for taking ESG criteria into account is available in the Fund s annual report and on the management company s website: Groupama Asset Management ( 4 INVESTMENT RULES 4.1 Regulatory ratios The Fund complies with the regulatory ratios applicable to coordinated UCITS, as defined by the French Monetary and Financial Code. 4.2 Method used to calculate overall risk The total risk of this Fund is determined using the commitment approach. 5 ASSET VALUATION AND ACCOUNTING RULES 5.1 Valuation methods The Fund complies with the accounting rules prescribed by current regulations, in particular those applying to UCITS. The accounting currency is the euro. GROUPAMA ASIE 14/16 Prospectus/published on 14/12/2012

15 5.2 Valuation methods Transferable securities traded on a French or foreign regulated market: Securities traded in the eurozone and Europe: => First price on valuation day. Securities traded in the Asia-Pacific region: => Last price on valuation day. Securities traded in the Americas region: => Last price on the day preceding the valuation day. Transferable securities whose price has not been calculated on the valuation day are valued at the last officially published price. Securities whose prices have been adjusted are valued at their probable market value under the sole responsibility of the Fund s manager or management company. Foreign securities denominated in currencies other than the euro are translated into euros at the exchange rate in Paris on valuation day. Securities not traded on a regulated market: Unlisted securities are valued at their probable market value under the responsibility of the Fund s manager or management company. Such valuations are communicated to the Statutory Auditor during audits. Securities traded on an unregulated market such as a free market are valued at their last traded market price. Fund shares and securities: These are valued at their last known net asset value. Negotiable debt securities: Negotiable debt securities are valued according to the following rules: Fixed-rate annual-interest treasury bills and fixed-rate treasury bills are valued on the basis of the previous day s price published by the Bank of France. Other negotiable debt securities (e.g. certificates of deposit, commercial paper, bonds issued by financial companies, bonds issued by specialist financial institutions) are valued: On the basis of the actual market traded price; In the absence of a definite market price, by applying an actuarial method to increase the reference price by a margin reflecting the intrinsic characteristics of the issuer. Unless the situation of the issuer changes significantly, this margin will remain constant over the period during which the security is held. Negotiable debt securities with a residual duration of up to three months are valued on a straight-line basis. Over-the-counter s: Interest rate swaps are valued according to the same rules as negotiable debt securities (other than fixedrate annual-interest treasury bills and fixed-rate treasury bills). Other s are valued at their market value. Futures and options contracts: Futures contracts on derivatives markets are valued at the previous day s settlement price. GROUPAMA ASIE 15/16 Prospectus/published on 14/12/2012

16 Options on derivatives markets are valued at the previous day s closing price. Temporary acquisitions and sales of securities: Reverse repurchase agreements Reverse repurchase agreements are recognised at their contractual value plus interest. Repurchase agreements The receivable representing securities given under repurchase agreements is valued at market value. The debt representing securities given under repurchase agreements is valued at the contractual value plus interest. Securities lending The debt representing the loaned securities is valued at the market value of the securities plus the contractual compensation. Valuation methods for off-balance-sheet commitments: Futures contracts are valued at nominal value x quantity x settlement price x (currency) Options contracts are valued at their underlying equivalent. Swaps Asset-backed or non-asset-backed swaps Commitment = nominal value + valuation of the fixed-rate leg (if fixed/variable rate swap) or + valuation of the variable-rate leg (if variable/fixed rate swap) at market price. Other swaps Commitment = nominal value + market value (if the Fund has adopted a synthetic valuation method). 5.3 Method used to recognise income from fixed-income securities Accrued interest method. 5.4 Method used to recognise expenses Transactions are accounted for excluding fees and expenses. * * * * * * * * * * * GROUPAMA ASIE 16/16 Prospectus/published on 14/12/2012