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

Transcription

1 (LF) Fund of Funds A mutual investment fund organised under the laws of the Grand Duchy of Luxembourg Annual Report (Audited) December 31, 2012 No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual report and the most recent semi-annual report, if published thereafter. Past performance is not necessarily an indication of future performance.

2 Table of Contents Organisation of the Fund 3 Board of Directors of the Management Company 4 Activity Report 5 Audit Report 8 Statement of Net Assets 10 Statement of Operations 11 Statement of Changes in Net Assets 12 Schedule of investments (LF) Fund of Funds - Equity Blend 13 (LF) Fund of Funds - BRIC 14 (LF) Fund of Funds - Balanced Blend 15 (LF) Fund of Funds - Real Estate 16 (LF) Fund of Funds - New Frontiers 17 (LF) Fund of Funds - Dynamic Fixed Income (launched as of September 10, 2012) 18 Notes to the financial statements 19 Further unaudited information 25 2

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

4 (LF) Fund of Funds Board of Directors of the Management Company Mr. Konstantinos Morianos Chairman Managing Director Eurobank Asset Management Mutual Fund Management Company S.A., Greece Mr. Georgios Vlachakis Managing Director Eurobank Fund Management Company (Luxembourg) S.A., Grand Duchy of Luxembourg Mrs. Eleni Laskari Managing Director Eurobank Private Bank Luxembourg S.A., Grand Duchy of Luxembourg Mr Fokion Karavias Director of Treasury and Capital Market Eurobank Ergasias, Greece Mr. Agamemnon Kotrozos General Manager Eurobank Fund Management Company (Luxembourg) S.A., Grand Duchy of Luxembourg Director Director Director Director 4

5 Activity Report (LF) Fund of Funds - Equity Blend Among the major global equity markets, the winners for 2012 in euro terms were clearly Asia ex. Japan, Europe and in particular the periphery including Greece along with certain emerging markets, like Turkey, Poland and India among the few. Overall, the year had four distinctively different quarters characterised by big rallies (1st and 3rd), big retracements (2nd) and a volatile ending (4th) with a rally to the year-end. In this challenging environment for equities and the Euro as a reserve currency, (LF) Fund of Funds - Equity Blend /Eurobank class recorded an annual return of +8.34% for the year ending 31/12/2012. During the same period, the composite index used as the FOF s Benchmark returned %. Our underperformance is due to our conservative stance towards European equities during the first 9 months of the year. We started the year from an overall neutral position, with a clear overweight in the US and to a lesser extend in emerging markets versus an underweight in Europe and Japan. During the first nine months we were underweight Europe and overweight US. By September and after the gradual realisation that Grexit was turning into a less and less probable outcome we reversed our stance towards Europe and the periphery going overweight versus a gradual reduction in our exposure in technology and the US in particular. During the year, our overall equity exposure ranged between 90 and 95% that is 0-5% in excess of the benchmark. (LF) Fund of Funds - BRIC 2012 has been a good year for emerging markets as an aggregate. However, that came with a lot of diversity and nowhere more evident than within the BRICs. From India s (MSCI India) over +21% in Euro terms to Brazil s (MSCI Brazil) -5.4% in Euro terms, the BRIC country indices (MSCI) gave all sorts of excitement, particularly in the second half and even more so during the fourth quarter. That gave a lot of room for active management and asset allocation to make a difference. In this stimulating environment, (LF) Fund of Funds - BRIC /Eurobank class recorded an annual return of +8.66% for the year ending 31/12/2012, roughly in-line with the sub-fund s Benchmark (MSCI BRIC). Strategy wise, the year can be divided into two periods. During the first one ending by early September we kept an underweight stance towards India and China, a neutral one regarding Brazil and an overweight one towards Russia. By September, we took a strategic call in favour of China and gradually increased exposure to neutral (from our long-standing underweight) reducing the other three accordingly. Thus by year-end we were underweight Brazil for valuation reasons, neutral on India and Russia and for the first time since the launch of this sub-fund neutral/overweight in Greater China. 5

6 Activity Report (continued) (LF) Fund of Funds - Balanced Blend 2012 has been a good year for most risky assets except for commodities in aggregate. In this highly stimulating environment, (LF) Fund of Funds - Balanced Blend /Eurobank class recorded a % annual return, witch marks a significant total return in excess of its composite benchmark. This can be attributed to Q4 outperformance. Throughout the year we had an overweight position in equities, corporate bonds and real estate while at the same time an underweight one in sovereign debt and commodities but wit h a notable exception that paid-off. By mid September, we added a small position in peripheral European debt. This has contributing more than three hundred basis points in gross return, by year-end. (LF) Fund of Funds - Real Estate 2012 has been a year of spectacular returns for the real estate as an asset class. Global R/E securities and companies outperformed both the global equities (MSCI ACWI) and the global emerging markets (MSCI EM) aggregates. Amongst the developed world, North America/US underperformed, particularly in the second half. In this stimulating environment, (LF) Fund of Funds - Real Estate /Eurobank class recorded an annual return of % for the year ending 31/12/2012. During the year, we were neutral to underweight in US/North America (more so in the second half) and neutral to positive in Europe and Asia. Overall, we kept the fund invested with an average 93.7% exposure to equities (between %). (LF) Fund of Funds - New Frontiers Although 2012 has been a good year for equities and emerging markets as an aggregate, Frontier Markets were the exception as a group. But with such a diverse and sensitive group of markets, some times this may be expected to happen. In such a daunting international environment, (LF) Fund of Funds - New Frontiers /Eurobank class recorded a +8.83% annual return, witch marks a significant total return in excess of its benchmark (MSCI Frontier Markets). The sub-fund completed its first year during Throughout the year we kept the fund invested with an average 85.5% exposure to equities (between 76-94%). 6

7 Activity Report (continued) (LF) Fund of Funds - Dynamic Fixed Income The sub-fund was officially launched in September 2012 but had not been invested until December 12th (original investment into the sub-fund). The sub-fund had been running for much less than a year thus no comments on performance is available as of December 31st. The sub-fund invests in 10 of the top ranked fixed income funds according to our selection process and unless required, each of the selected investment carries an equal weight (at rebalancing). Rebalancing will be taking place at least four times a year, within the first month of each calendar quarter, or more often if so is deemed necessary. It is our intention to keep the sub-fund fully invested 95% in funds according to its investment objective. [Benchmark (only for evaluating return) BofAML Global Broad Market Index <GBMI Index>]. The figures stated in this report are historical and not necessarily indicative of future performance. Luxembourg, February 15,

8 Audit Report To the Unitholders of (LF) Fund of Funds We have audited the accompanying financial statements of (LF) Fund of Funds and of each of its subfunds, which comprise the Statement of Net Assets and the Schedule of investments as at December 31, 2012 and the Statement of Operations and the Statement of Changes in Net Assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the Management Company for the financial statements The Board of Directors of the Management Company is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the Management Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the Réviseur d entreprises agréé Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the Réviseur d entreprises agréé, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Réviseur d entreprises agréé considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the Management Company, as well as evaluating the overall presentation of the financial statements. PricewaterhouseCoopers, Société coopérative, 400 Route d Esch, B.P. 1443, L-1014 Luxembourg T: , F: , 8 Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) R.C.S. Luxembourg B TVA LU

9 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of (LF) Fund of Funds and of each of its sub-funds as of December 31, 2012, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other matters Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. PricewaterhouseCoopers, Societe cooperative Luxembourg, 29 April 2013 Represented by G ) Thierry Blondeau 9

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

11 Statement of Operations for the year ended December 31, (LF) Fund of Funds (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - Consolidated Equity Blend BRIC Balanced Blend Real Estate New Frontiers Dynamic Fixed Income Currency Notes EUR EUR EUR EUR EUR EUR EUR Income Income on portfolio / dividends Bank interest Other income Expenses Management fees Custodian fees Subscription tax Other expenses Other taxes Brokerage and transaction fees Net investment gains/(losses) ( ) ( ) ( ) ( ) ( ) ( ) (533.06) Net realised gains/(losses) ( ) (504.56) - on portfolio ( ) ( ) on currencies ( ) (504.56) Net realised gains/(losses) for the year ( ) ( ) ( ) ( ) Change in net unrealised appreciation / (depreciation) ( ) - on portfolio ( ) - on currencies ( ) ( ) (534.82) ( ) (656.14) Result of operations for the year ( ) The accompanying notes form an integral part of these financial statements. 11

12 Statement of Changes in Net Assets For the year ended December 31, (LF) Fund of Funds (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - (LF) Fund of Funds - Consolidated Equity Blend BRIC Balanced Blend Real Estate New Frontiers Dynamic Fixed Income Currency EUR EUR EUR EUR EUR EUR EUR Total net assets at the beginning of the year Net investment loss ( ) ( ) ( ) ( ) ( ) ( ) (533.06) Net realised gain/(loss) ( ) (504.56) Change in net unrealised appreciation / (depreciation) ( ) Movement on capital account ( ) ( ) ( ) ( ) Subscriptions Redemptions ( ) ( ) ( ) ( ) ( ) ( ) - Total changes in net assets ( ) ( ) Total net assets at the end of the year Units in issue Units outstanding at the beginning of year 2010 Eurobank Units outstanding at the beginning of year 2010 Eurobank USD Units outstanding at the beginning of year 2010 Eurobank I Units outstanding at the beginning of year 2010 Interamerican Units outstanding at the beginning of year 2010 Postbank Units outstanding at the beginning of year 2010 Postbank BGN Units outstanding at the beginning of year 2010 Postbank USD Units outstanding at the beginning of year 2010 Polbank EUR Units outstanding at the beginning of year 2010 Polbank PLN Units outstanding at the beginning of year 2010 Bancpost Units outstanding at the end of year 2010 Eurobank EFG Units outstanding at the end of year 2010 Eurobank EFG USD Units outstanding at the end of year 2010 Eurobank EFG I Units outstanding at the end of year 2010 Interamerican Units outstanding at the end of year 2010 Postbank Units outstanding at the end of year 2010 Postbank BGN Units outstanding at the end of year 2010 Postbank USD Units outstanding at the end of year 2010 Polbank EUR Units outstanding at the end of year 2010 Polbank PLN Units outstanding at the end of year 2010 Bancpost Units outstanding at the beginning of year 2011 Eurobank Units outstanding at the beginning of year 2011 Eurobank USD Units outstanding at the beginning of year 2011 Eurobank I Units outstanding at the beginning of year 2011 Interamerican Units outstanding at the beginning of year 2011 Postbank Units outstanding at the beginning of year 2011 Postbank BGN Units outstanding at the beginning of year 2011 Postbank USD Units outstanding at the beginning of year 2011 Polbank EUR Units outstanding at the beginning of year 2011 Polbank PLN Units outstanding at the beginning of year 2011 Bancpost Units outstanding at the end of year 2011 Eurobank Units outstanding at the end of year 2011 Eurobank USD Units outstanding at the end of year 2011 Eurobank I Units outstanding at the end of year 2011 Interamerican Units outstanding at the end of year 2011 Postbank Units outstanding at the end of year 2011 Postbank BGN Units outstanding at the end of year 2011 Postbank USD Units outstanding at the end of year 2011 Polbank EUR Units outstanding at the end of year 2011 Polbank PLN Units outstanding at the end of year 2011 Bancpost Units outstanding at the beginning of year 2012 Eurobank Units outstanding at the beginning of year 2012 Eurobank USD Units outstanding at the beginning of year 2012 Eurobank I Units outstanding at the beginning of year 2012 Interamerican Units outstanding at the beginning of year 2012 Postbank Units outstanding at the beginning of year 2012 Postbank BGN Units outstanding at the beginning of year 2012 Postbank USD Units outstanding at the beginning of year 2012 Polbank EUR Units outstanding at the beginning of year 2012 Polbank PLN Units outstanding at the beginning of year 2012 Bancpost Units outstanding at the end of year 2012 Eurobank Units outstanding at the end of year 2012 Eurobank USD Units outstanding at the end of year 2012 Eurobank I Units outstanding at the end of year 2012 Interamerican Units outstanding at the end of year 2012 Postbank Units outstanding at the end of year 2012 Postbank BGN Units outstanding at the end of year 2012 Postbank USD Units outstanding at the end of year 2012 Polbank EUR Units outstanding at the end of year 2012 Polbank PLN Units outstanding at the end of year 2012 Bancpost The accompanying notes form an integral part of these financial statements. 12

13 (LF) Fund of Funds - Equity Blend Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR (LF) EQUITY - DYNAMIC ROMANIAN FUND % EUR (LF) I EQUITY- GLOBAL EQUTIES FUND % EUR (LF) I EQUITY FLEXI STYLE FUND % EUR (LF)I EQUITY - GREEK EQUITIES % EUR (LF)I EQUITY- EMERGING EUROPE FUND % EUR BGF EUROPEAN FOCUS FD % EUR EUROBANK GLOBAL EQUITIES FUND % EUR FIDELITY FDS-EURO SM-Y ACC % EUR INVESCO PAN EUROPEAN EQUITY C % EUR PIONEER FDS US PIONEER (I-Acc- ) % EUR SCHRODER INTL EUROPEAN EQ ALPHA (C-Acc) % EUR SCHRODER INTL JAPANESE EQ ALPHA (C -Acc) % EUR SILK-ROAD FRONTIERS FUND % EUR TEMPLETON ASIAN GROWTH FUND (I ) % % USD FF GLOBAL OPPORTUNITIES FUND (Y$-ACC) % USD FIDELITY FNDS-LATIN AM-Y AC$ % USD FIDELITY FUNDS-AMERICA-Y ACC % USD FRANKLIN U.S. OPPORTUNITIES FUND (I$) % USD M&G GLOBAL BASICS FD (C$-ACC) % USD MORGAN STANLEY US EQUITY GROWTH (Z$-Acc) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Greece 3.41% Luxembourg 93.33% United Kingdom 3.27% Total % By type of investments Investment Funds % Total % The accompanying notes form an integral part of these financial statements. 13

14 (LF) Fund of Funds - BRIC Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR BGF INDIA FUND % EUR DWS INVEST BRAZILIAN EQS-LC % EUR DWS RUSSIA EQTY FUND ACC % EUR TEMPLETON ASIAN GROWTH FUND (I ) % % USD BNY MELLON GL-BRAZIL EQUITY % USD FIDELITY- INDIA FOCUS FUND (Y$-ACC) % USD FIDELITY-CHINA FOCUS FUND (Y$-Acc) % USD FRANKLIN TEMP INV CHINA FD(I$) % USD HSBC GIF- BRAZIL EQUITY I-C % USD INVESCO GRTER CHINE EQTY - C % USD ishares MSCI Brazil Index Fund % USD JPMORGAN INDIA FUND-A-AC$ % USD JPMORGAN RUSSIA FUND-A$-ACC % USD JPMORGAN GR CHINA-A-A$ % USD MORGAN STANLEY INVEST F-INDIAN EQUITY Z$ % USD PARVEST EQUITY BRAZIL-I % USD PF (LUX) GREATER CHINA - I$ % USD PF RUSSIAN EQUITIES (I$-ACC) % USD SCHRODER INTL GREATER CHINA (C$-Acc) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Ireland 4.69% Luxembourg 91.50% United States 3.82% Total % By type of investments Investment Funds % Total % The accompanying notes form an integral part of these financial statements. 14

15 (LF) Fund of Funds - Balanced Blend Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR (LF)I EQUITY- EMERGING EUROPE FUND % EUR BGF EUROPEAN FOCUS FD % EUR BNY MELLON GL-EUROLAND BF (C -Acc) % EUR EUROBANK EFG I (LF) GREEK GOVMNT BOND % EUR FIDELITY FDS-EURO SM-Y ACC % EUR INVESCO EURO CORPORATE BOND (C-Acc) % EUR INVESCO PAN EUR STRUC EQTY - C % EUR M&G European Corporate Bond (C -Acc) % EUR M&G GLOBAL CONVERTIBLE (C -Acc) % EUR NEW CAPITAL US GROWTH-B EUR % EUR PIMCO TOTAL RETURN INSTIT EUR MF HEDGED % EUR PIONEER SF -EURO CURVE 3-5 (I-E) % EUR PIONEER FDS EURO BOND (I-Acc- ) % EUR PIONEER FDS EURO HIGH YLD-I % EUR PIONEER FDS US PIONEER (I-Acc- ) % EUR SCHRODER INTL JAPANESE EQ ALPHA (C -Acc) % EUR TEMPLETON ASIAN GROWTH FUND (I ) % % USD BNPP L1 - COMMODITY WORLD (I$) % USD BNPP L1 - CONV BOND WORLD (I$H) % USD FF GLOBAL OPPORTUNITIES FUND (Y$-ACC) % USD FIDELITY FNDS-LATIN AM-Y AC$ % USD FRANKLIN U.S. OPPORTUNITIES FUND (I$) % USD ING (L) INV - GLOBAL RE (I$) % USD JPM INV-GLB CONV/BLE (USD) (C$-ACC) % USD M&G GLOBAL BASICS FD (C$-ACC) % USD MORGAN STANLEY GLOBAL PROPERTY (Z$-Acc) % USD MORGAN STANLEY US EQUITY GROWTH (Z$-Acc) % USD PF (LUX) EMERGING LCL CRY DEBT (I-Acc-$) % USD SCHRODER ALT SOL COMMODITY (C-Acc-$) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Ireland 11.89% Luxembourg 65.27% United Kingdom 22.84% Total % By type of investments Investment Funds % Total % The accompanying notes form an integral part of these financial statements. 15

16 (LF) Fund of Funds - Real Estate Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR ING L INV-EUROPE RE EST-I % EUR ishares FTSE EPRA/NAREIT Devel % EUR ishares FTSE EPRA/NAREIT US Pr % EUR LYXOR ETF FTSE EPRA/NAREIT Glo % EUR LYXOR ETF FTSE EPRA/NAREIT Uni % % USD ING (L) INV - GLOBAL RE (I$) % USD JANUS CAPITAL GLOBAL RE-I$IN % USD MORGAN STANLEY GLOBAL PROPERTY (Z$-Acc) % USD MORGAN STANLEY SICAV - US PROPERTY FUND % USD NEUBERGER BERMAN US REAL ESTATE % USD SCHRODER ISF-ASIA PACIFIC PROPERTY (C$) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries France 8.23% Ireland 26.51% Luxembourg 47.90% United-States 17.36% Total % By type of investments Investment Funds % Total % The accompanying notes form an integral part of these financial statements. 16

17 (LF) Fund of Funds - New Frontiers Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR (LF) EQUITY - DYNAMIC ROMANIAN FUND % EUR BARING ASEAN FRONTIER-I % EUR DB X-TRACKERS - S&P SELECT FRO % EUR FRANKLIN TEMP INV FRONTIER MKTS FND (I ) % EUR RBS Market Access MSCI Frontier % EUR SILK-ROAD FRONTIERS FUND % % USD FTIF-TEMPLETON AFRICA FUND % USD Guggenheim Frontier Markets ET % USD ING (L) INV - MID EAST & NOR AFRICA (I$) % USD PowerShares MENA Frontier Countries % USD SCHRODER INTL FRONTIER MKT (C$) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Germany 0.89% Ireland 18.01% Luxembourg 72.12% United-States 8.98% Total % By type of investments Investment Funds % Total % The accompanying notes form an integral part of these financial statements. 17

18 (LF) Fund of Funds - Dynamic Fixed Income Schedule of investments (All figures in Euros) Cost Market % of Net Currency Shares Name Price Price Assets Transferable securities admitted to an official exchange listing Investment Funds EUR FRANK - TP GLB TOT RT (I H1) % EUR PIMCO - LNG AVG DUR - INS AC % EUR PIONEER FDS EUR STRATEGIC BOND (I-I ) % % USD AMUNDI FDS - BOND GLOBAL AGGR (IUC) % USD BNP PA L1 BOND WO HY-CC IH$ % USD FT- STRATEGIC INCOME (I ACC$) % USD PIMCO GIS Diversified Income Inst USD % USD PIONEER FDS STRATEGIC INCOME (I ) % USD SCHRODER ISF-ASIA CONVERT BOND (C$) % USD SCHRODER ISF-STRATEGIC BOND (C$) % % Total Investments in Investment Funds % Total Investments % Portfolio breakdown By countries Ireland 20.08% Luxembourg 79.92% Total % By type of investments Investment Funds % Total % The accompanying notes form an integral part of these financial statements. 18

19 Notes to the financial statements 1. General (LF) Fund of Funds ( the fund ) is an open ended investment fund and has been created on September 18, 2006 as a mutual investment fund ( Fonds Commun de Placement ) organised under Part I of the Luxembourg Law of December 17, 2010 relating to undertakings for collective investment (the 2010 Law ). The Fund is managed by Eurobank Fund Management Company (Luxembourg) S.A. (the Management Company ), a company incorporated under the laws of Luxembourg and having its registered office in Luxembourg. The Management Company may issue units in several classes (collectively Classes and each a Class ) in each Sub-Fund having: (i) a specific sales and redemption charge structure and/or (ii) a specific management or advisory fee structure and/or (iii) different distribution, unitholder servicing or other fees and/or (iv) different types of targeted investors or distribution channels and/or (v) a different hedging structure and/ or (vi) such other features as may be determined by the Board of Directors from time to time. EFG Eurobank Ergasias SA announced that the Annual General Meeting of June 29, 2012 resolved, to change its corporate name to Eurobank Ergasias S.A. and the trade name to Eurobank. Following the above, the date of change of the Bank s corporate and trade name in the Athens Stock Exchange was August 8, As at closing date, the following six Sub-Funds are active. (LF) Fund of Funds - Equity Blend - Eurobank 18/09/2006 (LF) Fund of Funds - Equity Blend - Eurobank (USD) 20/09/2011 (LF) Fund of Funds - Equity Blend - Eurobank I 18/09/2006 (LF) Fund of Funds - Equity Blend - Postbank 18/12/2007 (LF) Fund of Funds - Equity Blend - Postbank (BGN) 03/01/2011 (LF) Fund of Funds - Equity Blend - Bancpost 14/12/2009 (LF) Fund of Funds - BRIC - Eurobank 28/09/2007 (LF) Fund of Funds - BRIC - Eurobank (USD) 20/09/2011 (LF) Fund of Funds - BRIC - Eurobank I 21/09/2007 (LF) Fund of Funds - BRIC - Interamerican 26/11/2007 (LF) Fund of Funds - BRIC - Postbank 18/12/2007 (LF) Fund of Funds - BRIC - Postbank (BGN) 27/09/2007 (LF) Fund of Funds - BRIC - Polbank 07/09/2009 (LF) Fund of Funds - BRIC - Bancpost 12/10/2009 (LF) Fund of Funds - Balanced Blend - Eurobank 28/01/2008 (LF) Fund of Funds - Balanced Blend - Eurobank (USD) 20/09/2011 (LF) Fund of Funds - Balanced Blend - Eurobank I 03/03/2008 (LF) Fund of Funds - Balanced Blend - Postbank 03/03/2008 (LF) Fund of Funds - Balanced Blend - Polbank 05/03/2009 (LF) Fund of Funds - Balanced Blend - Polbank (PLN) 15/06/2009 (LF) Fund of Funds - Balanced Blend - Bancpost 01/10/2010 (LF) Fund of Funds - Real Estate - Eurobank 21/06/2010 (LF) Fund of Funds - Real Estate - Eurobank (USD) 09/07/2010 (LF) Fund of Funds - Real Estate - Interamerican 09/12/

20 Notes to the financial statements (continued) 1. General (continued) (LF) Fund of Funds - Real Estate - Class Postbank 29/09/2010 (LF) Fund of Funds - Real Estate - Class Postbank (USD) 29/09/2010 (LF) Fund of Funds - Real Estate - Class Polbank (PLN) 22/11/2010 (LF) Fund of Funds - Real Estate - Class Bancpost 30/09/2010 (LF) Fund of Funds - New Frontiers - Eurobank 12/09/2011 (LF) Fund of Funds - New Frontiers - Eurobank (USD) 20/09/2011 (LF) Fund of Funds - New Frontiers - Interamerican 13/10/2011 (LF) Fund of Funds - Dynamic Income -Eurobank I 10/09/ Summary of significant accounting policies The financial statements are prepared in accordance with Luxembourg regulations relating to undertakings for collective investments. a) Basis of presentation of the financial statements The financial statements of each sub-fund are kept in the following currencies: - (LF) Fund of Funds - Equity Blend EUR - (LF) Fund of Funds - BRIC EUR - (LF) Fund of Funds - Balanced Blend EUR - (LF) Fund of Funds - Real Estate EUR - (LF) Fund of Funds - New Frontiers EUR - (LF) Fund of Funds - Dynamic Fixed Income (launched as of September 10, 2012) EUR The consolidated financial statements of the Fund reflecting the assets and liabilities of all portfolios are expressed in Euro. b) Security Valuation Securities quoted or dealt in on any stock exchange or another regulated market are valued at the latest available price. When such prices are not representative of the fair value of the relevant securities and in the case of unquoted securities, the valuation is based on the respective reasonable foreseeable sales price as determined prudently and in good faith by the Board of Directors of the Management Company of the Fund. Cash equivalent or money market instruments with a remaining maturity of 60 days or less are stated at amortized cost, which approximates market value. Investments in open-ended UCIs are valued on the basis of the last available NAV of the units or shares of such UCIs. 20

21 Notes to the financial statements (continued) c) Realised gains and losses on sales of investments in securities Investments in securities are accounted for on a trade date basis. Realised gains and losses on sales of investments in securities are based on the average cost basis. d) Foreign currency translation The cost of investments and the transactions during the year, expressed in foreign currencies, are converted into the reporting currency of each Sub-Fund at the rate of exchange ruling at the time of the purchase or transaction. The market value of investments and other assets and other liabilities, expressed in foreign currencies, are translated into the reporting currency of each Sub-Fund at year-end exchange rates. Exchange differences arising on foreign currency translation are taken to statement of operations. The consolidated statement is calculated at year-end exchange rates. Closing exchange rates as at December 31, 2012 relating to EUR are: 1 USD = EUR 1 PLN = EUR 1 BGN = EUR e) Interest and Dividend income Interest income is recognized on an accrual basis, net of any irrecoverable withholding tax. Dividends are recorded on an ex-dividend basis and net of any irrecoverable withholding tax. f) Formation expenses Formation expenses are amortised on a straight line basis over a period of 5 years. 21

22 Notes to the financial statements (continued) 3. Management fees Management fees are due by each Sub-Fund to the Management Company and are calculated daily based on the net assets of each class of Units during the month and are payable monthly. the following rates are applicable per annum: (LF) Fund of Funds - Equity Blend - Eurobank 1.60% (LF) Fund of Funds - Equity Blend - Eurobank (USD) 1.60% (LF) Fund of Funds - Equity Blend - Eurobank I 0.70% (LF) Fund of Funds - Equity Blend - Postbank 2.00% (LF) Fund of Funds - Equity Blend - Postbank (BGN) 2.50% (LF) Fund of Funds - Equity Blend - Bancpost 2.00% (LF) Fund of Funds - BRIC - Eurobank 2.00% (LF) Fund of Funds - BRIC - Eurobank (USD) 2.00% (LF) Fund of Funds - BRIC - Eurobank I 1.00% (LF) Fund of Funds - BRIC - Interamerican 2.00% (LF) Fund of Funds - BRIC - Postbank 2.50% (LF) Fund of Funds - BRIC - Postbank (BGN) 2.50% (LF) Fund of Funds - BRIC - Polbank (PLN) 3.00% (LF) Fund of Funds - BRIC - Bancpost 2.50% (LF) Fund of Funds - Balanced Blend - Eurobank 1.10% (LF) Fund of Funds - Balanced Blend - Eurobank (USD) 1.10% (LF) Fund of Funds - Balanced Blend - Eurobank I 0.63% (LF) Fund of Funds - Balanced Blend - Postbank 1.50% (LF) Fund of Funds - Balanced Blend - Polbank (EUR) 1.50% (LF) Fund of Funds - Balanced Blend - Polbank (PLN) 2.00% (LF) Fund of Funds - Balanced Blend - Bancpost 1.50% (LF) Fund of Funds - Real Estate - Eurobank 1.50% (LF) Fund of Funds - Real Estate - Eurobank (USD) 1.50% (LF) Fund of Funds - Real Estate - Interamerican 1.50% (LF) Fund of Funds - Real Estate - Postbank 1.50% (LF) Fund of Funds - Real Estate - Postbank (USD) 1.50% (LF) Fund of Funds - Real Estate - Polbank (PLN) 3.00% (LF) Fund of Funds - Real Estate - Bancpost 1.50% (LF) Fund of Funds - New Frontiers - Eurobank 2.00% (LF) Fund of Funds - New Frontiers - Eurobank (USD) 2.00% (LF) Fund of Funds - New Frontiers - Interamerican 2.00% (LF) Fund of Funds - Dynamic Income -Eurobank I 0.75% (A) (A) 0.00% from September 11, 2012 until December 12, 2012; 0.75% from December 13,

23 Notes to the financial statements (continued) 3. Management fees (continued) Subscription, redemption and conversion fees payable to distributors are not included in the management fee. The Management Company shall pay, out of the management fees and expenses: - the fees and expenses due to the investment manager and any granted sub-investment manager; - the fees and expenses due to the administrative and registrar agent; - the fees and expenses due to the distributors. Management fees may be charged at both levels (the Sub-Fund and target UCITS/UCIs) but the aggregate amount of management fees on the portion of assets invested in target UCITS/UCIs will not exceed 4% p.a. of the net assets. 4. Custodian fees In consideration for its services, the Custodian is entitled to receive out of the assets of the relevant Sub-Fund a fee (the Depositary Fee ) payable at the end of each month in arrears at an annual rate not exceeding the percentage amount indicated in the Appendix relevant to each Sub-Fund of the Prospectus of the Fund. This percentage amount will be calculated on a daily basis on the Net Asset Value of that day of the relevant Class over the period by reference to which the fee is calculated. The Custodian may also receive transaction-based fees. 5. Administrative fees and Registrar Agent The Management Company shall pay, out of the Management Fee, the fees and expenses due to the Administrative and Registrar Agent. The Administrative and Registrar Agent may also receive from the Fund transaction-based fees, which will be payable in addition to the Management Fee. 6. Taxation The Fund is liable in Luxembourg to an annual tax (the "taxe d'abonnement") of 0.05%, calculated and payable quarterly, on the aggregate Net Asset Value of the outstanding units of the Fund at the end of each quarter. This annual tax is however reduced to 0.01% on the aggregate Net Asset Value of the units in the Classes reserved to institutional investors as well as in Sub-Funds that invest exclusively in certain short-term transferable debt securities and other instruments pursuant to the Grand-Ducal Regulation of 14 April This rate is reduced to 0% for the portion of the assets of the Fund invested in other Luxembourg undertakings for collective investment already submitted to an annual tax. No tax is payable in Luxembourg on realised or unrealised capital appreciation of the assets of the fund. 23

24 Notes to the financial statements (continued) 7. Transaction fees Transaction fees incurred by the Fund relating to purchase or sale of transferable securities, money market instruments, derivatives or other eligible assets are mainly composed of (Broker Fees, Transfer Fee, Stock Exchange Fee). For purchase or sale on bonds there are no transaction fees. The amounts of the transaction fees are reflected in the Statement of Operations in the line Brokerage and transaction fees. 8. Statement of changes in investments A list, for each Sub-Fund, specifying for each investment the total purchases and sales which occurred during the year under review, may be obtained free of charge, upon request, at the Registered Office of the Management Company. 9. Subsequent events : potential absorption of Eurobank Ergasias S.A. by National Bank of Greece S.A. Eurobank Ergasias S.A. («Eurobank») announces, pursuant to article 14 of Law 3556/2007 and based on the notification received from National Bank of Greece S.A.( NBG ) on February 22, 2013, that following the successful completion of NBG s voluntary tender offer addressed to Eurobank s ordinary shareholders, NBG acquired on February 20, 2013, 466,397,790 ordinary shares with voting rights, issued by Eurobank, representing 84.35% of its ordinary shares with voting rights. As a result of this transaction, the percentage of the voting rights held in total (directly and indirectly) in Eurobank by NBG increases as of February 20, 2013, from 0.40% to 84.75%. On April 8, 2013, following relevant decisions by the Greek Government, the Troika, the Bank of Greece (BoG) and the Hellenic Financial Stability Fund (HFSF), with the consent of the management of NBG and Eurobank, the two banks will be independently recapitalized in April. National Bank's plan to absorb Eurobank to form Greece's biggest banking group has been suspended. 24

25 Eurobank Asset Management MFMC Risk Management Dept. Further unaudited information: Value at Risk (VaR) Fund of Funds Fund Name Global Exposure Method (LF) FUND OF FUNDS-EQUITY BLEND Relative VaR 150% of Benchmark VaR 54.07% 70.31% 67.37% 90% MSCI AC World + 10% Eonia TR Index Historical Simulation 99% 21 Days 1 Year Sum of Notionals 100% 0.00% (LF) FUND OF FUNDS- BRIC Relative VaR 150% of Benchmark VaR 39.44% 61.51% 56.23% MSCI?? BRIC Historical Simulation 99% 21 Days 1 Year Sum of Notionals 100% 0.00% (LF) FUND OF FUNDS-BALANCED BLEND Relative VaR 150% of Benchmark VaR 37.06% 62.80% 49.13% (LF) FUND OF FUNDS- REAL ESTATE Relative VaR 150% of Benchmark VaR 52.14% 72.58% 61.22% 25% MSCI AC World + 60% ML EMU Broad Index+ 10% DJ UBS Commodity Index + 5% DJ Wilshire REITS TR Index 50% FTSE EPRA/NAREIT Developed Index+ 50% FTSE EPRA/NAREIT N America Index 31/12/2012 Historical Simulation 99% 21 Days 1 Year Sum of Notionals 100% 0.00% Historical Simulation 99% 21 Days 1 Year Sum of Notionals 100% 0.00% (LF) FUND OF FUNDS- NEW FRONTIERS Relative VaR 150% of Benchmark VaR 37.48% 74.26% 55.74% MSCI Frontier Markets Index Historical Simulation 99% 21 Days 1 Year Sum of Notionals 100% 0.00% (LF) FUND OF FUNDS- DYNAMIC FIXED INCOME Relative VaR 150% of Benchmark VaR 0.14% 46.32% 41.63% GBMI ML Global Broad Maket Index Historical Simulation 99% 21 Days 1 Year Sum of Notionals 100% 0.00% Parameters Lowest VaR Highest VaR Average VaR Utilization Utilization Confidence Internal VaR Limit Utilization Risk Benchmark Type of Model Holding Period Observation Leverage Method Leverage Limit Average Leverage (internal (internal Interval Period (internal limit) limit) limit) #N/A 25