PRIVÉE SELECT. Annual Report and Audited Financial Statements as at December 31, Société d'investissement à Capital Variable

Transcription

1 Société d'investissement à Capital Variable Annual Report and Audited Financial Statements as at December 31, 2015 R.C.S. Luxembourg B

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3 TABLE OF CONTENTS ADMINISTRATION OF THE COMPANY INFORMATION TO THE SHAREHOLDERS, NET ASSET VALUE PER SHARE AND RISK MANAGEMENT REPORT ON THE ACTIVITIES OF THE COMPANY REPORT OF THE REVISEUR D'ENTREPRISES AGREE COMBINED STATEMENT OF NET ASSETS COMBINED STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS CAUTIOUS PRIVÉE SELECT EUR... - CAUTIOUS EUR 12 STATEMENT OF NET ASSETS STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS STATISTICAL INFORMATION CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE STATEMENT OF INVESTMENTS AND OTHER NET ASSETS GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS ECONOMIC CLASSIFICATION OF THE INVESTMENTS BALANCED PRIVÉE SELECT EUR... - BALANCED 19 STATEMENT OF NET ASSETS STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS STATISTICAL INFORMATION CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE STATEMENT OF INVESTMENTS AND OTHER NET ASSETS GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS ECONOMIC CLASSIFICATION OF THE INVESTMENTS DYNAMIC PRIVÉE SELECT EUR... - DYNAMIC EUR 26 STATEMENT OF NET ASSETS STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS STATISTICAL INFORMATION AND CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE STATEMENT OF INVESTMENTS AND OTHER NET ASSETS GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS ECONOMIC CLASSIFICATION OF THE INVESTMENTS CAUTIOUS PRIVÉE SELECT GBP... - CAUTIOUS GBP 32 STATEMENT OF NET ASSETS STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS STATISTICAL INFORMATION CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE STATEMENT OF INVESTMENTS AND OTHER NET ASSETS GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS ECONOMIC CLASSIFICATION OF THE INVESTMENTS

4 TABLE OF CONTENTS (continued) BALANCED PRIVÉE SELECT GBP... - BALANCED 40 STATEMENT OF NET ASSETS STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS STATISTICAL INFORMATION CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE STATEMENT OF INVESTMENTS AND OTHER NET ASSETS GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS ECONOMIC CLASSIFICATION OF THE INVESTMENTS DYNAMIC PRIVÉE SELECT GBP... - DYNAMIC 48 STATEMENT OF NET ASSETS STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS STATISTICAL INFORMATION CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE STATEMENT OF INVESTMENTS AND OTHER NET ASSETS GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS ECONOMIC CLASSIFICATION OF THE INVESTMENTS PRIVÉE BALANCED SELECT USD... - BALANCED 55 STATEMENT OF NET ASSETS STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS STATISTICAL INFORMATION AND CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE STATEMENT OF INVESTMENTS AND OTHER NET ASSETS GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS ECONOMIC CLASSIFICATION OF THE INVESTMENTS NOTES TO THE FINANCIAL STATEMENTS

5 ADMINISTRATION OF THE COMPANY REGISTERED OFFICE 20, Boulevard Emmanuel Servais L Luxembourg BOARD OF DIRECTORS OF THE COMPANY Mr Edward DE BURLET Director Edmond de Rothschild (Europe) 20, Boulevard Emmanuel Servais L Luxembourg Mr Raymond GLODE Director Edmond de Rothschild Asset Management (Luxembourg) 20, Boulevard Emmanuel Servais L Luxembourg Mr Richard GODDARD Independent Director The Directors Office 19, Rue de Bitbourg L Luxembourg MANAGEMENT COMPANY Edmond de Rothschild Asset Management (Luxembourg) 20, Boulevard Emmanuel Servais L Luxembourg STATUTORY AUDITORS, Cabinet de révision agréé Deloitte Audit, Société à responsabilité limitée 560, Rue de Neudorf L Luxembourg DEPOSITARY AND DOMICILIARY AGENT Edmond de Rothschild (Europe) 20, Boulevard Emmanuel Servais L Luxembourg LEGAL ADVISER Allen & Overy, Société en commandite simple 33, Avenue J.F. Kennedy L Luxembourg 5

6 INFORMATION TO THE SHAREHOLDERS All information concerning the Company is published in newspapers designated by the Board of Directors of the Company (thereafter the Board ) and, if required by law, in the Memorial, the official gazette of Luxembourg, and deposited with the Registrar of the Luxembourg District Court. The articles of incorporation have been deposited with the Registrar of the Luxembourg District Court, where they are available for inspection and where copies may be obtained. The issue and redemption prices of shares of each Sub- Fund are made public at the registered office of the Company at 20, Boulevard Emmanuel Servais, L-2535 Luxembourg, where the annual, the Key Investor Information Document (KIID) and semi-annual reports may be obtained. Subscriptions cannot be received on the basis of this financial report. Subscriptions are valid only if made on the basis of the current prospectus, supplemented by the latest annual report and the most recent semi-annual report if published thereafter. NET ASSET VALUE PER SHARE The Net Asset Value per Share of each active Sub-Fund, Class or Sub-Class is determined in Luxembourg by the Management Company or its sub-contractors under the responsibility of the Board by dividing the net value of the assets of the Sub-Fund (or allocated to the relevant Class or Sub-Class), which corresponds to the value of the assets of the Sub-Fund (or allocated to the relevant Class or Sub- Class) less its liabilities, by the number of Shares in circulation in that Sub-Fund (or Class or Sub-Class) on the same date, and rounding up or down to the nearest higher or lower unit of the Valuation Currency of the Sub-Fund. The net asset value of the shares of each Sub-Fund is calculated each Business Day in Luxembourg with the exception of Good Friday and 24 December afternoon only (Christmas Eve) which are not Valuation Days. The total net assets of the Company are expressed in Euros and the consolidation of the various different Sub-Funds is obtained by converting the net assets of the various different Sub-Funds into Euros and adding them together. The Net Asset Value per Share of each Class or Sub-Class is available at the registered offices of the Company, the Depositary Bank, the Management Company and the Administrative Agent and other establishments appointed by them. The Board decides the terms and conditions for the publication of the Net Asset Value of each Sub-Fund in the press on a case-by-case basis. RISK MANAGEMENT The global risk exposure is determined by using the Commitment Approach. 6

7 REPORT ON THE ACTIVITIES OF THE COMPANY * 2015 can be divided in two phases: the first one being favourable to risky assets from January to April and the second one being more volatile for the rest of the year. In terms of main asset classes, their performances for the year were quite dispersed. For equities, European and Japanese equites had positive performances, whereas US and especially emerging markets equities had negative performances. For the fixed income space, there was a very low divergence between the different bonds asset classes and underperformance came from the global high yield bonds and again from emerging currencies, namely the emerging debt local currencies. European sovereigns and US treasuries were slightly positive. Commodities and especially oil prices continued to suffer. Gold also has a negative performance for On the contrary, the US dollar index was positive. In this environment, the PRIVEE SELECT Sub-Funds behaved in absolute terms: Sub-Fund 2015 Performance PRIVEE SELECT - CAUTIOUS EUR +0.83% PRIVEE SELECT - BALANCED EUR +2.81% PRIVEE SELECT - DYNAMIC EUR +4.77% PRIVEE SELECT - CAUTIOUS GBP -1.44% PRIVEE SELECT - BALANCED GBP -1.06% PRIVEE SELECT - DYNAMIC GBP -1.52% PRIVEE SELECT - BALANCED USD -4.72% The major market events and our portfolio actions in 2015 were: the good first half of the year with positive performances, the massive sell-off in August, the second leg correction at the end of September, the rebound in October and the end of year correction in December. (Please note that the below figures are based on the balanced profile, but the portfolio movements were applied in the same manner as well for the conservative and dynamic profiles). In August we acknowledged the market risks (massive China driven sell-off, macro economic soft-patch) by reducing our equity exposure in the very first days of the market correction (with a clear focus towards emerging exposure and to a lesser extent European exposure). The total equity weight was reduced from 55% to 44%, thus successfully protecting the portfolios during the sell-off, and especially in case the markets were pushing further down. Towards the end of September, after analysing the market environment and acknowledging the excessive characteristics of the sell-off, we decided to increase our equity allocation. Indeed, we had the conviction that after the risk-aversion driven market correction in August, interesting opportunities had arisen in those regions with sound fundamentals. We were already favouring regions such as Japan and Europe in the portfolios. In order to reinforce our already positive stance towards these regions, we increased their respective weight alongside the US. As a result, we increased the net equity exposure by 5%, back to the Neutral weight of 50%. In October, risk assets and equity markets in particular enjoyed their biggest monthly bounce since October The trend reversal was due to a number of factors: (i) markets had over done the correction during the summer and investors were relieved to see signs that the Chinese economy and commodities prices were stabilizing, (ii) Mario Draghi delivered very pro-active statements suggesting imminent ECB action to extend monetary easing, and (iii) the FED made its intentions clearer after a period of hazardous communication. We continued to progressively increase our allocation to European, Japanese and US equities up to 54%, with confirmation of the vigour of the rebound and profiting from the upwards markets movements. 7

8 Finally, the month of December was marked by central bank actions. First European Central Bank delivered a smallerthan-expected stimulus package while the US Federal Reserve raised as expected its interest rates by 25 bps for the first time since The markets were relieved as the uncertainty about the FED s policy was removed and the faith in the US economy confirmed but did not succeed to finish the month on a positive note. In Europe and Japan, we experienced less accommodative than expected central bank policy actions. Oil prices closed again lower on confirmation that OPEC will not cut output and recorded a second year of steep decline losing more than 30% in While we anticipate some kind of stabilization in the oil price and other commodities in 2016, we believe the financial markets should remain quite volatile. Indeed, equity valuations, declining margins and earnings growth should limit any gains even though global growth will not, according to us, be an issue. Very low yields offered by Sovereign treasuries around the world will also limit risk-free asset gains. All those factors are leading us to use all the opportunities that the markets will offer us and look for innovative portfolio management techniques in order to better navigate in the current environment. Active management of the exposure of the different sub-asset classes will certainly be key in Luxembourg, April 4, 2016 * Indications and comparisons are historical and are not necessarily an indication of future results 8

9 Deloitte. Deloitte Audit Societe a responsabilite limitee 560, rue de Neudorf L-2220 Luxembourg BP.1173 L- I 0 I I Luxembourg Tel: Fax: To the shareholders of PRIVEE SELECT (Societe d'investissement a Capital Variable) 20, Boulevard Emmanuel Servais L-2535 Luxembourg REPORT OF THE REVISEUR D'ENTREPRISES AGREE We have audited the accompanying financial statements of PRIVEE SELECT (the ''Company") and of each of its subfunds, which comprise the statement of net assets and the statement of investments and other net assets as at December 3 I, 2015 and the statement of operations and 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 Company for the financial statements The Board of Directors of the 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 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 reviseur d'entreprises agree 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 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 Reviseur d'entreprises agree 's judgement, 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 Reviseur d'entreprises agree considers internal control relevant to the entity's preparation and fai r 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 Company, as well as evaluating the overall presentation of the financial statements. 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 PRIVEE SELECT and of each of its sub-funds as at December 31, 2015, 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 matter 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. Eric Decoster, Reviseur d'entreprises agree Directeur Luxembourg, April 4,

10 COMBINED STATEMENT OF NET ASSETS December 31, 2015 (in EUR) ASSETS Portfolio: - Cost (see notes) - Net unrealised result Cash: - Cash at sight - Margin deposits Other assets: - Cash receivable on subscriptions prepaid - Dividend receivable - Formation/reorganisation expenses, net (see notes) - Receivable for investments sold - Unrealised gain on forward foreign exchange contracts (see notes) on currencies 581,438, ,778, ,216, ,046, , , , , ,239, , ,853, LIABILITIES Bank overdraft: - Cash at sight Other liabilities: - Subscriptions prepaid - Taxes and expenses payable - Payable for investments purchased - Unrealised loss on forward foreign exchange contracts on currencies - Other (see notes) , ,562, ,500, , ,809, NET ASSETS 628,044, The notes are an integral part of these financial statements. 10

11 COMBINED STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS Year ended December 31, 2015 (in EUR) INCOME Income from investments: - Dividends, net (see notes) 975, Bank interest, net (see notes) 7, Other income 107, ,089, EXPENSES Bank interest, net (see notes) 2, Global fee: - Management fee (see notes) 7,672, Depositary fee and safekeeping charges (see notes) 827, Other expenses: - Annual tax (see notes) 25, Amortisation of formation/reorganisation expenses (see notes) 14, Audit and legal fees 58, Transaction fees (see notes) 775, Administration and other expenses (see notes) 297, ,673, NET OPERATING RESULT (8,583,321.42) Net realised result on: - Sales of investments (see notes) (2,013,556.90) - Foreign exchange 5,252, NET REALISED RESULT (5,344,106.68) Change in net unrealised appreciation/(depreciation) on: - Investments 2,224, Forward foreign exchange contracts on currencies (653,703.77) NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS (3,772,837.00) The notes are an integral part of these financial statements. 11

12 CAUTIOUS EUR STATEMENT OF NET ASSETS December 31, 2015 (in EUR) ASSETS Portfolio: - Cost (see notes) 22,410, Net unrealised result 495, ,905, Cash: - Cash at sight 1,585, Other assets: - Dividend receivable 3, Formation/reorganisation expenses, net (see notes) 1, Unrealised gain on forward foreign exchange contracts (see notes) 7, on currencies 24,503, LIABILITIES Other liabilities: - Subscriptions prepaid 6, Taxes and expenses payable 102, Unrealised loss on forward foreign exchange contracts (see notes) 25, on currencies - Other , NET ASSETS 24,368, Class A Net asset value per share Shares outstanding Class B Net asset value per share Shares outstanding Class C Net asset value per share Shares outstanding , , The notes are an integral part of these financial statements. 12

13 CAUTIOUS EUR STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS Year ended December 31, 2015 (in EUR) NET ASSETS AT THE BEGINNING OF THE YEAR 10,379, INCOME Income from investments: - Dividends, net (see notes) 30, Other income 29, , EXPENSES Bank interest, net (see notes) Global fee: - Management fee (see notes) 269, Depositary fee and safekeeping charges (see notes) 29, Other expenses: - Annual tax (see notes) Amortisation of formation/reorganisation expenses (see notes) Audit and legal fees 2, Transaction fees (see notes) 68, Administration and other expenses (see notes) 23, , NET OPERATING RESULT (333,894.12) Net realised result on: - Sales of investments (see notes) (63,791.25) - Foreign exchange 125, NET REALISED RESULT (272,034.57) Change in net unrealised appreciation/(depreciation) on: - Investments 182, Forward foreign exchange contracts on currencies (18,289.14) NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS (108,227.26) MOVEMENTS IN CAPITAL Subscriptions of shares 17,097, Redemptions of shares (2,999,961.76) 14,097, NET ASSETS AT THE END OF THE YEAR 24,368, The notes are an integral part of these financial statements. 13

14 CAUTIOUS EUR STATISTICAL INFORMATION Year ended December 31, 2015 SHARES Class A Shares outstanding at the beginning of the year 100, Subscriptions of shares 147, Redemptions of shares (27, ) Shares outstanding at the end of the year 220, Class B , (1, ) 14, Class C NET ASSET VALUE PER SHARE EUR Highest Lowest At the end of the year EUR EUR

15 CAUTIOUS EUR CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE Date Share Class Number of shares outstanding Net Assets Ccy Net asset value per share * Class A 2, , EUR Class A 100, ,379, EUR * Class C , EUR * Class B 1, , EUR Class A 220, ,859, EUR Class B 14, ,420, EUR Class C , EUR * first valuation 15

16 CAUTIOUS EUR STATEMENT OF INVESTMENTS AND OTHER NET ASSETS December 31, 2015 (in EUR) Quantity Description Ccy Cost Value per security Market value (see notes) % of net assets INVESTMENT FUNDS OPEN-ENDED INVESTMENT FUNDS FRANCE 3, ED ROTHSCHILD SIGN FIN BD FCR -I- CAP EUR 509, , , ED ROTHSCHILD US VALUE & YIELD -J- CAP USD 275, , EDR QUADRIM 4 (S) EUR 314, , , , EDR US GROWTH - PARTS -R- 3 DEC USD 404, , TOTAL FRANCE IRELAND 1,503, ,511, , ISHARES II PLC MSCI EUROPE EUR 1,488, ,478, , ISHARES TRUST S P 500 USD 706, , , ISHS CR EUR GOV EUR EUR 2,006, ,007, , MW GAVEKAL CHINA FI -A- CAP USD 469, , TOTAL IRELAND LUXEMBOURG 4,672, ,717, , ADELPHI EUROPEAN SELECT EQUITY -B- EUR EUR 360, , , BRGF EUROPEAN VALUE FUND -A2- EUR CAP EUR 579, , , DB X TRACKERS II IESE YP -1C- CAP EUR 2,157, ,165, , EPSILON FD FCP EME BD TTL RET -I- EUR 613, , , GS JAP PRTF-OTHER CCY-ACC-EUR-HDG EUR 772, , , INVESTEC GLB STR FD ASIAN EQ FD -I- CAP USD 373, , , JPMF H US STEEP -JPM I USD CAP USD 876, , , MFS MERIDIAN SICAV EUR RESEARCH -I1- EUR 624, , , NORDEA 1 VAR EUE HY BD -BI BASE CUR- CAP EUR 785, , , PIONEER FUNDS - EURO BOND EUR 2,616, ,646, , R CAP US L C EQ SHS I USD CAP USD 486, , , REYL (LUX) GLOBAL FDS EME MKTS EQ -IP- USD 272, , , ROBECO EURO GOVERNMENT BONDS EUR 2,680, ,726, , SCHRODER INT SEL EURO CORP BOND -C- CAP EUR 1,615, ,614, , SWC(LU)EQ SMC JAP- UNITS -P- CAP JPY 271, , , , WELLINGTON MGT PTF US RSH EQ -S- USD CAP USD 680, , TOTAL LUXEMBOURG UNITED STATES OF AMERICA 15,767, ,212, , ISHARES TRUST BARCLAYS TIPS BOND FUND USD 466, , TOTAL UNITED STATES OF AMERICA 466, , TOTAL OPEN-ENDED INVESTMENT FUNDS 22,410, ,905, TOTAL INVESTMENT FUNDS 22,410, ,905, TOTAL INVESTMENTS 22,410, ,905, Cash/(bank overdraft) 1,585, Other assets and liabilities (122,484.52) (0.51) TOTAL NET ASSETS 24,368, The notes are an integral part of these financial statements. 16

17 CAUTIOUS EUR GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS December 31, 2015 (in %) COUNTRIES % of net assets Luxembourg Ireland France 6.20 United States of America 1.91 TOTAL INVESTMENTS Other assets/(liabilities) and liquid assets 6.00 NET ASSETS

18 CAUTIOUS EUR ECONOMIC CLASSIFICATION OF THE INVESTMENTS December 31, 2015 (in %) ECONOMIC SECTORS % of net assets Investment funds TOTAL INVESTMENTS Other assets/(liabilities) and liquid assets 6.00 NET ASSETS

19 BALANCED EUR STATEMENT OF NET ASSETS December 31, 2015 (in EUR) ASSETS Portfolio: - Cost (see notes) 180,391, Net unrealised result 6,498, ,889, Cash: - Cash at sight 9,943, Other assets: - Cash receivable on subscriptions prepaid 447, Dividend receivable 35, Formation/reorganisation expenses, net (see notes) 14, Unrealised gain on forward foreign exchange contracts (see notes) 32, on currencies 197,363, LIABILITIES Other liabilities: - Taxes and expenses payable 788, Unrealised loss on forward foreign exchange contracts (see notes) 83, on currencies - Other , NET ASSETS 196,491, Class A Net asset value per share Shares outstanding Class B Net asset value per share Shares outstanding Class C Net asset value per share Shares outstanding ,718, , , The notes are an integral part of these financial statements. 19

20 BALANCED EUR STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS Year ended December 31, 2015 (in EUR) NET ASSETS AT THE BEGINNING OF THE YEAR 94,263, INCOME Income from investments: - Dividends, net (see notes) 318, Other income 28, , EXPENSES Bank interest, net (see notes) Global fee: - Management fee (see notes) 2,306, Depositary fee and safekeeping charges (see notes) 249, Other expenses: - Annual tax (see notes) 5, Amortisation of formation/reorganisation expenses (see notes) 3, Audit and legal fees 18, Transaction fees (see notes) 200, Administration and other expenses (see notes) 81, ,865, NET OPERATING RESULT (2,518,055.08) Net realised result on: - Sales of investments (see notes) (632,946.85) - Foreign exchange 1,751, NET REALISED RESULT (1,399,551.29) Change in net unrealised appreciation/(depreciation) on: - Investments 1,915, Forward foreign exchange contracts on currencies (50,470.47) NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS 465, MOVEMENTS IN CAPITAL Subscriptions of shares 110,343, Redemptions of shares (8,580,872.98) 101,762, NET ASSETS AT THE END OF THE YEAR 196,491, The notes are an integral part of these financial statements. 20

21 BALANCED EUR STATISTICAL INFORMATION Year ended December 31, 2015 SHARES Class A Shares outstanding at the beginning of the year 889, Subscriptions of shares 906, Redemptions of shares (77, ) Shares outstanding at the end of the year 1,718, Class B , ( ) 90, Class C , , NET ASSET VALUE PER SHARE EUR Highest Lowest At the end of the year EUR EUR

22 BALANCED EUR CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE Date Share Class Number of shares outstanding Net Assets Ccy Net asset value per share * Class A 121, ,166, EUR Class A 889, ,263, EUR * Class B 2, , EUR * Class C , EUR Class A 1,718, ,067, EUR Class B 90, ,855, EUR Class C 5, , EUR * first valuation 22

23 BALANCED EUR STATEMENT OF INVESTMENTS AND OTHER NET ASSETS December 31, 2015 (in EUR) Quantity Description Ccy Cost Value per security Market value (see notes) % of net assets INVESTMENT FUNDS OPEN-ENDED INVESTMENT FUNDS FRANCE 17, ED ROTHSCHILD SIGN FIN BD FCR -I- CAP EUR 2,780, ,790, , ED ROTHSCHILD US VALUE & YIELD -J- CAP USD 4,089, ,132, , EDR QUADRIM 4 (S) EUR 2,853, , ,848, , EDR US GROWTH - PARTS -R- 3 DEC USD 5,900, ,068, TOTAL FRANCE IRELAND 15,624, ,839, , ISHARES II PLC MSCI EUROPE EUR 16,634, ,239, , ISHARES TRUST S P 500 USD 7,064, ,643, , ISHS CR EUR GOV EUR EUR 10,112, ,119, , MW GAVEKAL CHINA FI -A- CAP USD 1,761, ,718, TOTAL IRELAND LUXEMBOURG 35,573, ,720, , ADELPHI EUROPEAN SELECT EQUITY -B- EUR EUR 5,970, ,954, , BRGF EUROPEAN VALUE FUND -A2- EUR CAP EUR 7,993, ,497, , DB X TRACKERS II IESE YP -1C- CAP EUR 9,830, ,862, , EPSILON FD FCP EME BD TTL RET -I- EUR 3,813, ,810, , GS JAP PRTF-OTHER CCY-ACC-EUR-HDG EUR 9,465, ,239, , INVESTEC GLB STR FD ASIAN EQ FD -I- CAP USD 4,741, ,722, , JPMF H US STEEP -JPM I USD CAP USD 10,419, ,713, , MFS MERIDIAN SICAV EUR RESEARCH -I1- EUR 8,285, ,029, , NORDEA 1 VAR EUE HY BD -BI BASE CUR- CAP EUR 4,087, ,176, ,241, PIONEER FUNDS - EURO BOND EUR 13,668, ,847, , R CAP US L C EQ SHS I USD CAP USD 5,515, ,156, , REYL (LUX) GLOBAL FDS EME MKTS EQ -IP- USD 3,402, ,402, , ROBECO EURO GOVERNMENT BONDS EUR 15,242, ,561, , SCHRODER INT SEL EURO CORP BOND -C- CAP EUR 9,844, ,836, , SWC(LU)EQ SMC JAP- UNITS -P- CAP JPY 3,849, , ,812, , WELLINGTON MGT PTF US RSH EQ -S- USD CAP USD 9,204, ,870, TOTAL LUXEMBOURG UNITED STATES OF AMERICA 125,336, ,493, , ISHARES TRUST BARCLAYS TIPS BOND FUND USD 3,856, ,836, TOTAL UNITED STATES OF AMERICA 3,856, ,836, TOTAL OPEN-ENDED INVESTMENT FUNDS 180,391, ,889, TOTAL INVESTMENT FUNDS 180,391, ,889, TOTAL INVESTMENTS 180,391, ,889, Cash/(bank overdraft) 9,943, Other assets and liabilities (341,511.10) (0.17) TOTAL NET ASSETS 196,491, The notes are an integral part of these financial statements. 23

24 BALANCED EUR GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS December 31, 2015 (in %) COUNTRIES % of net assets Luxembourg Ireland France 8.06 United States of America 1.95 TOTAL INVESTMENTS Other assets/(liabilities) and liquid assets 4.89 NET ASSETS

25 BALANCED EUR ECONOMIC CLASSIFICATION OF THE INVESTMENTS December 31, 2015 (in %) ECONOMIC SECTORS % of net assets Investment funds TOTAL INVESTMENTS Other assets/(liabilities) and liquid assets 4.89 NET ASSETS

26 DYNAMIC EUR STATEMENT OF NET ASSETS December 31, 2015 (in EUR) ASSETS Portfolio: - Cost (see notes) 96,113, Net unrealised result 5,363, ,476, Cash: - Cash at sight 2,520, Other assets: - Cash receivable on subscriptions prepaid 138, Dividend receivable 21, Formation/reorganisation expenses, net (see notes) 8, ,164, LIABILITIES Other liabilities: - Taxes and expenses payable 429, Unrealised loss on forward foreign exchange contracts (see notes) 14, on currencies - Other , NET ASSETS 103,721, Class A Net asset value per share Shares outstanding Class B Net asset value per share Shares outstanding , , The notes are an integral part of these financial statements. 26

27 DYNAMIC EUR STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS Year ended December 31, 2015 (in EUR) NET ASSETS AT THE BEGINNING OF THE YEAR 57,822, INCOME Income from investments: - Dividends, net (see notes) 199, , EXPENSES Bank interest, net (see notes) 1, Global fee: - Management fee (see notes) 1,332, Depositary fee and safekeeping charges (see notes) 143, Other expenses: - Annual tax (see notes) 2, Amortisation of formation/reorganisation expenses (see notes) 2, Audit and legal fees 10, Transaction fees (see notes) 86, Administration and other expenses (see notes) 40, ,619, NET OPERATING RESULT (1,420,768.65) Net realised result on: - Sales of investments (see notes) (945,944.48) - Foreign exchange 1,833, NET REALISED RESULT (533,289.16) Change in net unrealised appreciation/(depreciation) on: - Investments 2,070, Forward foreign exchange contracts on currencies (14,518.09) NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS 1,522, MOVEMENTS IN CAPITAL Subscriptions of shares 50,715, Redemptions of shares (6,339,592.94) 44,375, NET ASSETS AT THE END OF THE YEAR 103,721, The notes are an integral part of these financial statements. 27

28 DYNAMIC EUR STATISTICAL INFORMATION Year ended December 31, 2015 SHARES Class A Shares outstanding at the beginning of the year 536, Subscriptions of shares 410, Redemptions of shares (55, ) Shares outstanding at the end of the year 891, Class B , (1, ) 33, NET ASSET VALUE PER SHARE EUR Highest Lowest At the end of the year EUR CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE Date Share Class Number of shares outstanding Net Assets Ccy Net asset value per share * Class A 48, ,893, EUR Class A 536, ,822, EUR * Class B , EUR Class A 891, ,519, EUR Class B 33, ,201, EUR * first valuation 28

29 DYNAMIC EUR STATEMENT OF INVESTMENTS AND OTHER NET ASSETS December 31, 2015 (in EUR) Quantity Description Ccy Cost Value per security Market value (see notes) % of net assets INVESTMENT FUNDS OPEN-ENDED INVESTMENT FUNDS FRANCE 20, ED ROTHSCHILD US VALUE & YIELD -J- CAP USD 2,995, ,046, , EDR QUADRIM 4 (S) EUR 1,729, , ,725, , EDR US GROWTH - PARTS -R- 3 DEC USD 4,735, ,793, TOTAL FRANCE IRELAND 9,459, ,565, , CON DBX S&P 500 ACC ETF CL-1C-HEDGED EUR EUR 4,482, ,594, , ISHARES II PLC MSCI EUROPE EUR 10,318, ,772, , ISHARES TRUST S P 500 USD 4,127, ,529, TOTAL IRELAND LUXEMBOURG 18,928, ,897, , ADELPHI EUROPEAN SELECT EQUITY -B- EUR EUR 5,576, ,478, , BRGF EUROPEAN VALUE FUND -A2- EUR CAP EUR 7,273, ,793, , DB X TRACKERS II IESE YP -1C- CAP EUR 2,016, ,999, , EPSILON FD FCP EME BD TTL RET -I- EUR 1,541, ,538, , GS JAP PRTF-OTHER CCY-ACC-EUR-HDG EUR 7,706, ,481, , INVESTEC GLB STR FD ASIAN EQ FD -I- CAP USD 3,981, ,980, , JPMF H US STEEP -JPM I USD CAP USD 5,724, ,039, , MFS MERIDIAN SICAV EUR RESEARCH -I1- EUR 8,446, ,178, , PIONEER FUNDS - EURO BOND EUR 1,681, ,706, , R CAP US L C EQ SHS I USD CAP USD 4,819, ,346, , REYL (LUX) GLOBAL FDS EME MKTS EQ -IP- USD 2,865, ,865, , ROBECO EURO GOVERNMENT BONDS EUR 2,986, ,037, , SCHRODER INT SEL EURO CORP BOND -C- CAP EUR 2,593, ,592, , SWC(LU)EQ SMC JAP- UNITS -P- CAP JPY 3,109, , ,081, , WELLINGTON MGT PTF US RSH EQ -S- USD CAP USD 7,401, ,894, TOTAL LUXEMBOURG 67,724, ,014, TOTAL OPEN-ENDED INVESTMENT FUNDS 96,113, ,476, TOTAL INVESTMENT FUNDS 96,113, ,476, TOTAL INVESTMENTS 96,113, ,476, Cash/(bank overdraft) 2,520, Other assets and liabilities (275,667.20) (0.27) TOTAL NET ASSETS 103,721, The notes are an integral part of these financial statements. 29

30 DYNAMIC EUR GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS December 31, 2015 (in %) COUNTRIES % of net assets Luxembourg Ireland France 9.22 TOTAL INVESTMENTS Other assets/(liabilities) and liquid assets 2.16 NET ASSETS

31 DYNAMIC EUR ECONOMIC CLASSIFICATION OF THE INVESTMENTS December 31, 2015 (in %) ECONOMIC SECTORS % of net assets Investment funds TOTAL INVESTMENTS Other assets/(liabilities) and liquid assets 2.16 NET ASSETS

32 CAUTIOUS GBP STATEMENT OF NET ASSETS December 31, 2015 (in GBP) ASSETS Portfolio: - Cost (see notes) 12,458, Net unrealised result 173, ,632, Cash: - Cash at sight 826, Margin deposits 40, Other assets: - Formation/reorganisation expenses, net (see notes) 1, ,499, LIABILITIES Bank overdraft: - Cash at sight Other liabilities: - Taxes and expenses payable 53, Unrealised loss on forward foreign exchange contracts (see notes) 39, on currencies 94, NET ASSETS 13,405, Class A Net asset value per share Shares outstanding Class B Net asset value per share Shares outstanding Class C Net asset value per share Shares outstanding , , , The notes are an integral part of these financial statements. 32

33 CAUTIOUS GBP STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS Year ended December 31, 2015 (in GBP) NET ASSETS AT THE BEGINNING OF THE YEAR 6,354, INCOME Income from investments: - Dividends, net (see notes) 18, Bank interest, net (see notes) Other income 20, , EXPENSES Global fee: - Management fee (see notes) 147, Depositary fee and safekeeping charges (see notes) 15, Other expenses: - Annual tax (see notes) Amortisation of formation/reorganisation expenses (see notes) Audit and legal fees 1, Transaction fees (see notes) 54, Administration and other expenses (see notes) 14, , NET OPERATING RESULT (196,281.26) Net realised result on: - Sales of investments (see notes) 45, Foreign exchange 43, NET REALISED RESULT (107,567.90) Change in net unrealised appreciation/(depreciation) on: - Investments (74,179.00) - Forward foreign exchange contracts on currencies (39,658.07) NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS (221,404.97) MOVEMENTS IN CAPITAL Subscriptions of shares 9,747, Redemptions of shares (2,475,198.09) 7,272, NET ASSETS AT THE END OF THE YEAR 13,405, The notes are an integral part of these financial statements. 33

34 CAUTIOUS GBP STATISTICAL INFORMATION Year ended December 31, 2015 SHARES Class A Shares outstanding at the beginning of the year 61, Subscriptions of shares 87, Redemptions of shares (23, ) Shares outstanding at the end of the year 125, Class B , , Class C , , NET ASSET VALUE PER SHARE GBP Highest Lowest At the end of the year GBP GBP

35 CAUTIOUS GBP CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE Date Share Class Number of shares outstanding Net Assets Ccy Net asset value per share * Class A 14, ,453, GBP Class A 61, ,354, GBP * Class B , GBP * Class C 1, , GBP Class A 125, ,814, GBP Class B 4, , GBP Class C 1, , GBP * first valuation 35

36 CAUTIOUS GBP STATEMENT OF INVESTMENTS AND OTHER NET ASSETS December 31, 2015 (in GBP) Quantity Description Ccy Cost Value per security Market value (see notes) % of net assets INVESTMENT FUNDS OPEN-ENDED INVESTMENT FUNDS FRANCE 2, ED ROTHSCHILD US VALUE & YIELD -J- CAP USD 283, , , EDR US GROWTH - PARTS -R- 3 DEC USD 308, , , L U E IB G (DR) GBP 911, , TOTAL FRANCE 1,503, ,516, IRELAND 4, ISHARE MSCI JAPAN - CAP ETF GBP GBP 234, , , ISHARES II PLC MSCI EUROPE EUR 420, , , JO HAMBRO K MGT FD PLC CONTL EUR -INS- EUR 213, , , MAN JAP GBP-I H-ACC ACC.PTG. -I H- GBP GBP 214, , , MW GAVEKAL CHINA FI -A- CAP USD 239, , , TRE ADR UK EQTY - ACC CLASS -C- GBP GBP 297, , , UBS US HED GBP-A-AC GBP 363, , , WELLINGTON MGT DUB GL BD-S-HDG-GBP GBP 552, , TOTAL IRELAND 2,536, ,609, LUXEMBOURG 12, BRGF EUROPEAN FOCUS FUND -A2- CAP EUR 219, , , DB X-TRACKERS II IBOXX GBP LIQUID CORP E GBP 655, , , EPSILON FD FCP EME BD TTL RET -I- EUR 310, , , INVESTEC GLB STR FD ASIAN EQ FD -I- CAP USD 238, , , JPMF H US STEEP -C- GBP HF GBP 497, , , MFS MERIDIAN SICAV EUR RESEARCH -I1- EUR 298, , , NORDEA 1 EUROP HY BD-HAI-GBP-FD/DIS GBP 653, , , REYL (LUX) GLOBAL FDS EME MKTS EQ -IP- USD 170, , , SWC(LU)EQ SMC JAP- UNITS -P- CAP JPY 131, , , , WELLINGTON MGT PTF US RSH EQ -S- USD CAP USD 511, , TOTAL LUXEMBOURG 3,687, ,740, UNITED KINGDOM 1,447, FIDELITY INSTIT FUNDS - UK GILT FD GBP 1,819, ,839, , GAM UK DIVERSIFIED ACCUM.SHS GBP 313, , ,036, INSIGHT ID UK GOV ALL MTY BD-P-FD GBP 1,870, ,912, , M&G OPTIMAL INC FD -A- GBP 465, , TOTAL UNITED KINGDOM 4,468, ,497, The notes are an integral part of these financial statements. 36

37 CAUTIOUS GBP Quantity Description Ccy Cost Value per security Market value (see notes) % of net assets UNITED STATES OF AMERICA 3, ISHARES TRUST BARCLAYS TIPS BOND FUND USD 263, , TOTAL UNITED STATES OF AMERICA 263, , TOTAL OPEN-ENDED INVESTMENT FUNDS 12,458, ,632, TOTAL INVESTMENT FUNDS 12,458, ,632, TOTAL INVESTMENTS 12,458, ,632, Cash/(bank overdraft) 865, Other assets and liabilities (92,454.72) (0.69) TOTAL NET ASSETS 13,405, The notes are an integral part of these financial statements. 37

38 CAUTIOUS GBP GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS December 31, 2015 (in %) COUNTRIES % of net assets United Kingdom Luxembourg Ireland France United States of America 2.00 TOTAL INVESTMENTS Other assets/(liabilities) and liquid assets 5.77 NET ASSETS

39 CAUTIOUS GBP ECONOMIC CLASSIFICATION OF THE INVESTMENTS December 31, 2015 (in %) ECONOMIC SECTORS % of net assets Investment funds TOTAL INVESTMENTS Other assets/(liabilities) and liquid assets 5.77 NET ASSETS

40 BALANCED GBP STATEMENT OF NET ASSETS December 31, 2015 (in GBP) ASSETS Portfolio: - Cost (see notes) 125,987, Net unrealised result 2,622, ,610, Cash: - Cash at sight 8,280, Margin deposits 210, Other assets: - Cash receivable on subscriptions prepaid 9, Formation/reorganisation expenses, net (see notes) 12, Receivable for investments sold 4,598, ,721, LIABILITIES Other liabilities: - Subscriptions prepaid 10, Taxes and expenses payable 560, Payable for investments purchased 4,791, Unrealised loss on forward foreign exchange contracts (see notes) 212, on currencies - Other ,574, NET ASSETS 136,146, Class A Net asset value per share Shares outstanding Class B Net asset value per share Shares outstanding Class C Net asset value per share Shares outstanding ,286, , , The notes are an integral part of these financial statements. 40

41 BALANCED GBP STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS Year ended December 31, 2015 (in GBP) NET ASSETS AT THE BEGINNING OF THE YEAR 75,088, INCOME Income from investments: - Dividends, net (see notes) 200, Bank interest, net (see notes) 3, , EXPENSES Global fee: - Management fee (see notes) 1,693, Depositary fee and safekeeping charges (see notes) 182, Other expenses: - Annual tax (see notes) 7, Amortisation of formation/reorganisation expenses (see notes) 3, Audit and legal fees 12, Transaction fees (see notes) 151, Administration and other expenses (see notes) 50, ,102, NET OPERATING RESULT (1,897,886.54) Net realised result on: - Sales of investments (see notes) (47,026.38) - Foreign exchange 603, NET REALISED RESULT (1,341,612.81) Change in net unrealised appreciation/(depreciation) on: - Investments (678,896.57) - Forward foreign exchange contracts on currencies (212,800.64) NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS (2,233,310.02) MOVEMENTS IN CAPITAL Subscriptions of shares 74,888, Redemptions of shares (11,597,386.80) 63,290, NET ASSETS AT THE END OF THE YEAR 136,146, The notes are an integral part of these financial statements. 41

42 BALANCED GBP STATISTICAL INFORMATION Year ended December 31, 2015 SHARES Class A Shares outstanding at the beginning of the year 719, Subscriptions of shares 676, Redemptions of shares (109, ) Shares outstanding at the end of the year 1,286, Class B , ( ) 24, Class C , ( ) 8, NET ASSET VALUE PER SHARE GBP Highest Lowest At the end of the year GBP GBP

43 BALANCED GBP CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE Date Share Class Number of shares outstanding Net Assets Ccy Net asset value per share * Class A 63, ,338, GBP Class A 719, ,088, GBP * Class B , GBP * Class C 3, , GBP Class A 1,286, ,949, GBP Class B 24, ,370, GBP Class C 8, , GBP * first valuation 43

44 BALANCED GBP STATEMENT OF INVESTMENTS AND OTHER NET ASSETS December 31, 2015 (in GBP) Quantity Description Ccy Cost Value per security Market value (see notes) % of net assets INVESTMENT FUNDS OPEN-ENDED INVESTMENT FUNDS FRANCE 33, ED ROTHSCHILD US VALUE & YIELD -J- CAP USD 3,971, ,766, , EDR US GROWTH - PARTS -R- 3 DEC USD 4,995, ,326, , L U E IB G (DR) GBP 3,636, ,744, TOTAL FRANCE 12,603, ,837, IRELAND 64, ISHARE MSCI JAPAN - CAP ETF GBP GBP 3,194, ,423, , ISHARES II PLC MSCI EUROPE EUR 7,031, ,836, , ISHARES VII PLC - ISHARES MSCI UK UCITS GBP 1,063, ,064, ,456, JO HAMBRO K MGT FD PLC CONTL EUR -INS- EUR 3,601, ,572, , MAN JAP GBP-I H-ACC ACC.PTG. -I H- GBP GBP 3,738, ,159, , MW GAVEKAL CHINA FI -A- CAP USD 1,370, ,389, , SPDR BAR UK ETF GBP GBP 1,636, ,637, , SSGA BAR COR BD ETF GBP GBP 3,147, ,141, ,228, TRE ADR UK EQTY - ACC CLASS -C- GBP GBP 4,022, ,362, , UBS US HED GBP-A-AC GBP 7,164, ,517, , WELLINGTON MGT DUB GL BD-S-HDG-GBP GBP 4,205, ,284, TOTAL IRELAND 40,177, ,389, LUXEMBOURG 220, BRGF EUROPEAN FOCUS FUND -A2- CAP EUR 3,704, ,878, , DB X-TRACKERS II IBOXX GBP LIQUID CORP E GBP 2,176, ,189, , EPSILON FD FCP EME BD TTL RET -I- EUR 2,442, ,525, HENDERSON HRZ EURO CORP BD-A1-HGBP- GBP , , INVESTEC GLB STR FD ASIAN EQ FD -I- CAP USD 3,484, ,464, , JPMF H US STEEP -C- GBP HF GBP 6,599, ,194, , MFS MERIDIAN SICAV EUR RESEARCH -I1- EUR 3,598, ,872, , NORDEA 1 EUROP HY BD-HAI-GBP-FD/DIS GBP 4,160, ,278, , REYL (LUX) GLOBAL FDS EME MKTS EQ -IP- USD 2,654, ,697, , SWC(LU)EQ SMC JAP- UNITS -P- CAP JPY 2,265, , ,277, , WELLINGTON MGT PTF US RSH EQ -S- USD CAP USD 7,821, ,733, TOTAL LUXEMBOURG 38,905, ,129, UNITED KINGDOM 8,727, FIDELITY INSTIT FUNDS - UK GILT FD GBP 10,950, ,093, , GAM UK DIVERSIFIED ACCUM.SHS GBP 4,895, ,445, ,159, INSIGHT ID UK GOV ALL MTY BD-P-FD GBP 12,946, ,213, ,946, M&G OPTIMAL INC FD -A- GBP 2,802, ,748, TOTAL UNITED KINGDOM 31,594, ,500, The notes are an integral part of these financial statements. 44