Aberdeen Liquidity Fund (Lux)

Transcription

1 Aberdeen Liquidity Fund (Lux) Annual Report and Accounts For the period from 1 January 2012 to 31 March 2012

2 Contents Incorporation...01 Corporate Governance Statement...02 Net Asset Value History...03 Summary of Historic Information...04 Performance History...05 Aberdeen Liquidity Fund (Lux) - Combined Statements...06 Aberdeen Liquidity Fund (Lux) - Canadian Dollar Fund...07 Aberdeen Liquidity Fund (Lux) - Euro Fund...10 Aberdeen Liquidity Fund (Lux) - Sterling Fund...13 Aberdeen Liquidity Fund (Lux) - US Dollar Fund...16 Notes to the Financial Statements...20 Report of the Révieur d Entreprises agréé...24 Management and Administration...25 Risk Management...27 Further Information...28 General Information...29

3 Incorporation Aberdeen Liquidity Fund (Lux) ( the Fund ) is a mutual investment fund ( fonds commun de placement ) organised under the laws of the Grand Duchy of Luxembourg. The Fund is authorised as an undertaking for collective investment in transferable securities under part I of the law dated 17 December 2010 on undertakings for collective investment. As at 31 March 2012, the Fund has issued Units in the following sub-funds: Canadian Dollar Fund Euro Fund Sterling Fund US Dollar Fund The full name of each sub-fund is constituted by the name of the Fund, Aberdeen Liquidity Fund (Lux), followed by a hyphen and then the specific name of the sub-fund. Throughout the Financial Statements, the sub-funds are referred to by their short names as indicated above. No subscriptions can be received on the basis of this document. Subscriptions are only valid if made on the basis of the current prospectus. Please see the Notes to the Financial Statements for changes during the period. 01

4 Corporate Governance Statement The Board applies a clear and transparent corporate governance framework for the management of the Fund s affairs. 1. The Board has adopted the ALFI Code of Conduct issued in September 2009, which sets out the principles of good governance, and considers that the Fund has been in compliance with it in all material respects throughout the financial period ended 31 March Any subsequent amendment to the ALFI Code of Conduct will be considered by the Board prior to adoption and necessary disclosure will be made in the annual financial statements. 2. There are contractual arrangements in place governing the relationships with third party suppliers to the Fund. 3. The Directors take decisions in the interests of the Fund and its Unitholders and refrain from taking part in any deliberation or decision which creates conflict between their personal interests and those of the Fund and its Unitholders 4. The Directors are committed to ensuring that Unitholders are kept informed of matters relevant to their investment and that all Unitholders are treated fairly. 5. The Board and, where appropriate, its Committees meet at least four times a year. The Board requests and receives reports from the relevant Committees on various activities including compliance controls and risk management. Senior representatives of Aberdeen Asset Management attend meetings by invitation, thus enabling the Board of Directors to question the reports presented to it. 6. As part of the control framework within Aberdeen Asset Management, all employees are subject to a Code of Ethics. The Board receives regular reports on the Code of Ethics to ensure that any conflicts of interest between Aberdeen Asset Management staff and the interests of the Fund are properly managed. 7. The nomination of new Directors of the Management Company is considered by the Board and is subject to the approval of the CSSF and ultimately the approval of Shareholders at the Annual General Meeting. The level of Directors fees is put to Unitholders for approval, in accordance with the Articles of Incorporation. 02 Aberdeen Liquidity Fund (Lux)

5 Net Asset Value History Sub-Fund Base Currency Unit Class NAV per Unit NAV per Unit NAV per Unit Portfolio Turnover as at A TER % as at B Canadian Dollar Fund CAD A (5.20%) 0.25% CAD A-2 2, , , (5.20%) 0.25% CAD I (5.20%) 0.19% CAD I-2 1, , , (5.20%) 0.19% Euro Fund EUR A % 0.49% EUR A % 0.49% EUR I % 0.27% EUR I-2 1, , , % 0.27% EUR J-2 1, , , % 0.27% EUR Z % 0.07% Sterling Fund GBP A (4.90%) 0.49% GBP A-2 4, , , (4.90%) 0.49% GBP I (4.90%) 0.27% GBP I-2 1, , , (4.90%) 0.28% GBP Z (4.90%) 0.07% US Dollar Fund USD A (10.10%) 0.29% USD A-2 3, , , (10.10%) 0.28% USD I (10.10%) 0.23% USD I-2 1, , , (10.10%) 0.23% USD J-2 1, , (10.10%) 0.22% USD Z (10.10%) 0.08% USD Z-2 1, , , (10.10%) 0.07% (Purchase of securities and Sales of securities) - (Subscriptions of units and Redemptions of units) (Averaged Annualised Fund Value) x 100 = Portfolio Turnover Exchange Rates CAD - USD EUR - USD GBP - USD A Only for a three month period B Annualised 03

6 Summary of Historic Information For the period ended 31 March 2012 Sub-Fund Base Currency Net Asset Value ( 000) Net Asset Value ( 000) Net Asset Value ( 000) Canadian Dollar Fund CAD 210, , ,777 Euro Fund EUR 1,092,352 1,197,934 1,457,349 Sterling Fund GBP 305, , ,384 US Dollar Fund USD 2,414,084 2,482,1443 3,003,913 Combined Total USD 4,567,249 4,697,780 5,741, Aberdeen Liquidity Fund (Lux)

7 Performance History Fund Base Currency A B Canadian Dollar Fund CAD 0.22% 0.96% Benchmark: 7 Day CAD LIBID CAD 0.24% 0.92% Euro Fund EUR 0.13% 0.75% Benchmark: 7 Day EUR LIBID EUR 0.06% 0.86% Sterling Fund GBP 0.14% 0.46% Benchmark: 7 Day GBP LIBID GBP 0.12% 0.47% US Dollar Fund USD 0.08% 0.20% Benchmark: 7 Day USD LIBID USD 0.02% 0.07% A Performance runs from 31 December 2011 to 31 March B Performance runs from 31 December 2010 to 31 December Past performance is no indication of current or future performance. These performance data do not take account of the commissions and costs incurred on the issue and redemption of units. 05

8 Aberdeen Liquidity Fund (Lux) Combined Statements Combined Statement of Net Assets As at 31 March 2012 $ 000 Assets Investments in securities at amortised cost (note 2.2) 3,472,495 Cash at bank 1,180,698 Interest and dividends receivable 2,320 Subscriptions receivable 925 Other assets 698 Total assets 4,657,136 Liabilities Payable for investments purchased (78,238) Taxes and expenses payable (3,197) Redemptions payable (4,166) Other liabilities (note 2.2) (4,286) Total liabilities (89,887) Net assets at the end of the year 4,567,249 Combined Statement of Changes in Net Assets For the period from 1 January 2012 to 31 March 2012 $ 000 Net assets at the beginning of the year 4,697,780 Exchange rate effect on opening net assets 56,943 Net gains from investments 6,751 Net unrealised losses (1,456) Distributions (425) Proceeds from shares issued (note 10) 401,550 Payments for shares redeemed (note 10) (593,894) Net assets at the end of the year 4,567,249 Combined Statement of Operations For the period from 1 January 2012 to 31 March 2012 $ 000 Income Investment income 9,485 Bank interest 1,173 Other income Total Income 10,658 Expenses Management fees (note 4.5) (3,018) Administration fees (note 4.1) (173) Custodian fees (note 4.2) (45) Domiciliary agent, registrar, paying and transfer agent fees (note 4.3) (193) Management Company fees (note 4.4) (118) Operational expenses (note 4.6) (261) Annual tax (note 4.7) (101) Total Expenses (3,907) Net gains from investments 6,751 Decrease in unrealised depreciation on investments (1,456) Net unrealised losses (1,456) Net increase in assets as a result of operations 5,295 The accompanying notes form an integral part of these financial statements. 06 Aberdeen Liquidity Fund (Lux)

9 Canadian Dollar Fund 1 January 2012 to 31 March 2012 Performance For the period ended 31 March 2012, the Aberdeen Liquidity Fund (Lux) Canadian Dollar Fund (A2 share class) returned 0.22% compared to a return of 0.24% for the benchmark, 100% 7 day CAD Libid. Source: Aberdeen Asset Management, Lipper, BNP Paribas Basis: Total Return, NAV to NAV, net of annual charges, gross income reinvested, CAD Market review Over the quarter The Bank of Canada kept rates unchanged at 1%. As the year has progressed the language did change somewhat in the interest rate statement, inflation risks were no longer roughly balanced as both headline and core CPI inflation figures have firmed up. Fund review Having been relatively short, we have been seeking out better names to push the overall maturity of the fund longer preferring the 3 month maturity term where rates have been relatively stable. We have added some quality 1-year fixed and floating rate notes which offer attractive yields relative to the curve. Outlook Provided the US recovery remains on track, the Bank of Canada will need to keep an eye on growth prospects domestically when looking at their interest rate policy over the coming months. We expect better US data to continue to filter into the Canadian data but due to the cited global uncertainty, the Bank of Canada is likely to be in wait-and-see mode for the time being. Economic data for the quarter was slightly disappointing, unemployment was up to 7.6% and GDP came down from 2.7% to 2.0%. Core CPI increased to 2.3% from 2.1% year on year and headline CPI was up from 2.5% to 2.6%, this was due to economic slack and higher oil prices. Libor rates rose significantly over the quarter as the market went from pricing out any cut in rates to moving towards guessing when a rise might now be due. The 1-year rate rose by 10 basis points to 1.92% during the period. 07

10 Statement of Net Assets As at 31 March 2012 C$'000 Assets Investments in securities at amortised cost (note 2.2) 173,548 Cash at bank 43,952 Interest receivable 237 Other assets 62 Total assets 217,799 Liabilities Payable for investments purchased (6,994) Taxes and expenses payable (135) Redemptions payable (130) Other liabilities (note 2.2) (70) Total liabilities (7,329) Net assets at the end of the period 210,470 Statement of Changes in Net Assets For the period from 1 January 2012 to 31 March 2012 C$'000 Net assets at the beginning of the period 197,704 Net gains from investments 540 Net unrealised losses (69) Proceeds from units issued (note 10) 34,828 Payments for units redeemed (note 10) (22,533) Net assets at the end of the period 210,470 Statement of Operations For the period from 1 January 2012 to 31 March 2012 C$ 000 Income Investment income 629 Bank interest 37 Total Income 666 Expenses Management fees (note 4.5) (78) Administration fees (note 4.1) (8) Custodian fees (note 4.2) (2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.3) (9) Management Company fees (note 4.4) (5) Operational expenses (note 4.6) (18) Annual tax (note 4.7) (6) Total Expenses (126) Net gains from investments 540 Decrease in unrealised depreciation on investments (69) Net unrealised losses (69) Net increase in assets as a result of operations 471 Share transactions For the period from 1 January 2012 to 31 March 2012 A-1 A-2 I-1 I-2 Shares outstanding at the beginning of the period 70,156 86,151 70,165 7,704 Shares issued during the period , Shares redeemed during the period (9,968) (573) Shares outstanding at the end of the period 70,317 91,745 70,336 7,720 Net asset value per share , , The accompanying notes form an integral part of these financial statements. 08 Aberdeen Liquidity Fund (Lux) - Canadian Dollar

11 Portfolio Statement As at 31 March 2012 Security Coupon (%) Maturity Nominal Market value C$ 000 Percentage of total net assets % Bonds % General Electric Capital Canada (MTN) /08/2012 5,000,000 5, Inter-American Development Bank (MPLE) /12/2012 5,000,000 5, KFW /12/2012 5,000,000 5, Landwirtschaftliche Rentenbank (MPLE) /11/2012 2,500,000 2, Royal Bank of Canada /05/2012 3,500,000 3, , Money Market Instruments % Abbey National Treasury Services 23/04/2012 7,000,000 6, Banco Bilbao Vizcaya Argentaria 23/04/2012 7,000,000 6, Banque Federative du Credit Mutuel 22/05/2012 7,000,000 6, C.I.B.C. 09/04/2012 2,500,000 2, C.I.B.C. 04/05/2012 6,000,000 5, Caisse Amortissement de la Dette Sociale /05/2012 8,000,000 7, Caisse des Depots et Consignations 18/05/2012 6,000,000 5, Dnb NorBank 26/04/2012 7,000,000 6, DZ Privatbank /05/2012 8,000,000 7, European Investment Bank 26/04/2012 7,000,000 6, FMS Wertmanagement 16/05/2012 7,500,000 7, Fortis Bank 16/04/2012 7,000,000 6, Landesbank Hessen Thuringen 02/05/2012 7,000,000 6, Landeskreditbank Baden Wuerttemberg 11/06/2012 7,500,000 7, Lloyds TSB Bank 19/04/2012 7,000,000 6, Macquarie Bank 27/04/2012 7,000,000 6, Natixis 23/04/2012 7,000,000 6, Ontario T-Bill /04/2012 7,000,000 6, Ontario T-Bill /07/2012 2,000,000 1, Societe Generale 18/06/2012 7,000,000 6, Standard Chartered Bank 05/04/2012 7,000,000 6, Swedbank 26/06/2012 7,000,000 6, Wells Fargo /05/2012 7,000,000 7, , Transferable securities 173, Total investments 173, Other net assets 36, Total 210, All securities represent transferable securities and money market instruments admitted or dealt with on a regulated market. 09

12 Euro Fund 1 January 2012 to 31 March 2012 Performance For the period ended 31 March 2012, the Aberdeen Liquidity Fund (Lux) Euro Fund (A2 share class) returned 0.13% compared to a return of 0.06% for the benchmark, 100% 7 day EUR Libid. Source: Aberdeen Asset Management, Lipper, BNP Paribas Basis: Total Return, NAV to NAV, net of annual charges, gross income reinvest, EUR Market review The European Central Bank (ECB) left the main refinancing rate unchanged throughout the period, there have been no changes made to its non-standard measures. They did note that there were signs of stabilisation in the economy but at very low levels. The injection of liquidity by way of their 3 year long term refining operation (LTRO) programme in December and again in February has alleviated much of the funding stress for the European banks. Fund review With funding markets more liquid we have extended maturities, away from European banking names which we are keeping in the 1 month area due to market volatility. We have been also buying at issue and in the secondary market good quality floating rate notes which have offered attractive yields relative to the curve. Other maturities have been rolled, keeping quality issuers, in the 3 month maturity area. Outlook The interest rate cuts by the ECB last year have shown a degree of willingness on their part to support peripheral nations. There were calls earlier in the quarter for further cuts, however inflation is a worry for the ECB and as such market expectations are for rates to remain on hold. Greece continued to hold the headlines. The agreement between the International Monetary Fund (IMF), ECB and European Commission on the terms of the Greek bailout package was received positively by markets. Greece avoided a hard default after private investors suffered at 70+% NPV loss on their bonds. With parliamentary elections coming up in April and further support in the polls for the extreme left and right of the political spectrum, all eyes are focused on the upcoming months. Economic data disappointed throughout with fourth quarter GDP pointing to contraction. Manufacturing, Services and Composite PMIs all ticked down lower than expectations coming in at 47.7, 48.7, and 48.7 respectively. Following better funding conditions and an agreement between politicians to increase the firewall fund, rates have continued to ease. Yields fell over the three months circa 0.53% across the curve taking the 1-year rate down to 1.38%. 10 Aberdeen Liquidity Fund (Lux) - Euro Fund

13 Statement of Net Assets As at 31 March 2012 '000 Assets Investments in securities at amortised cost (note 2.2) 726,435 Cash at bank 372,342 Interest receivable 1,009 Subscriptions receivable 469 Other assets 203 Total assets 1,100,458 Liabilities Payable for investments purchased (5,031) Taxes and expenses payable (932) Redemptions payable (796) Other liabilities (note 2.2) (1,347) Total liabilities (8,106) Net assets at the end of the period 1,092,352 Statement of Changes in Net Assets For the period from 1 January 2012 to 31 March 2012 '000 Net assets at the beginning of the period 1,197,934 Net gains from investments 1,977 Net unrealised losses (486) Distributions (1) Proceeds from units issued (note 10) 66,426 Payments for units redeemed (note 10) (173,498) Net assets at the end of the period 1,092,352 Statement of Operations For the period from 1 January 2012 to 31 March Income Investment income 2,822 Bank interest 472 Total Income 3,294 Expenses Management fees (note 4.5) (1,099) Administration fees (note 4.1) (42) Custodian fees (note 4.2) (14) Domiciliary agent, registrar, paying and transfer agent fees (note 4.3) (47) Management Company fees (note 4.4) (28) Operational expenses (note 4.6) (61) Annual tax (note 4.7) (26) Total Expenses (1,317) Net gains from investments 1,977 Decrease in unrealised depreciation on investments (486) Net unrealised losses (486) Net increase in assets as a result of operations 1,491 Share transactions For the period from 1 January 2012 to 31 March 2012 A-1 A-2 I-1 I-2 J-2 Z-1 Shares outstanding at the beginning of the period 70,112 2,579,602 70,000 37,903 4,740 Shares issued during the period , , ,000 Shares redeemed during the period (385,053) (1,630) (255,000) Shares outstanding at the end of the period 70,224 2,337,990 70,134 37,785 4, ,000 Net asset value per share , , The accompanying notes form an integral part of these financial statements. 11

14 Portfolio Statement As at 31 March 2012 Coupon (%) Maturity Nominal Market value 000 Percentage of total net assets % Security Bonds % ABN Amro Bank (EMTN) (FRN) /04/ ,000,000 20, Bank of Nova Scotia (EMTN) (FRN) /05/ ,000,000 30, Barclays Bank (EMTN) /01/2013 7,000,000 7, Deutsche Bank /03/2013 7,000,000 7, Deutsche Bank (EMTN) /02/ ,000,000 10, HSBC Bank (EMTN) (FRN) /05/ ,000,000 30, Nordea Bank /02/ ,800,000 35, Rabobank Nederland (EMTN) /01/ ,000,000 20, Societe Generale (EMTN) (FRN) /04/ ,000,000 17, Svenska Handelsbanken (EMTN) /01/2013 4,700,000 4, UBS AG Jersey (EMTN) (FRN) /04/2012 9,000,000 9, UBS AG London (EMTN) /07/2012 7,000,000 7, , Money Market Instruments % ABN Amro Bank 20/07/ ,000,000 19, Banco Bilbao Vizcaya Argentaria 30/04/ ,000,000 19, Banque Federative du Credit Mutuel 17/05/ ,000,000 34, Barclays Bank /06/ ,000,000 10, Barclays Bank 09/05/ ,500,000 13, Barclays Bank 15/11/ ,000,000 11, BG Energy Capital 08/05/ ,000,000 12, BNP Paribas /05/ ,000,000 15, BNP Paribas /05/ ,000,000 23, BNP Paribas 05/04/ ,000,000 14, DZ Privatbank 11/06/ ,000,000 14, DZ Privatbank 30/04/ ,000,000 34, GE Capital European Funding 08/05/ ,000,000 19, ING Bank 29/06/ ,000,000 9, ING Bank 03/05/ ,000,000 24, Lloyds TSB Bank /04/ ,000,000 15, Lloyds TSB Bank 17/04/ ,000,000 14, Macquarie Bank 15/05/ ,000,000 39, Natixis 28/05/ ,000,000 34, Nykredit Bank 16/04/ ,000,000 14, Nykredit Bank 24/04/ ,500,000 20, Pohjola Bank 27/07/ ,500,000 24, Pohjola Bank 18/04/ ,000,000 14, Skandinaviska Enskilda Banken /07/ ,000,000 20, Skandinaviska Enskilda Banken /04/ ,000,000 20, Stadshypotek 13/04/ ,000,000 12, Standard Chartered Bank 19/07/ ,000,000 14, , Transferable securities 726, Total investments 726, Other net assets 365, Total 1,092, All securities represent transferable securities and money market instruments admitted or dealt with on a regulated market. 12 Aberdeen Liquidity Fund (Lux) - Euro Fund

15 Sterling Fund 1 January 2012 to 31 March 2012 Performance For the period ended 31 March 2012, the Aberdeen Liquidity Fund (Lux) Sterling Fund (A2 share class) returned 0.14% compared to a return of 0.12% for the benchmark, 100% 7 day GBP Libid. Source: Aberdeen Asset Management, Lipper, BNP Paribas Basis: Total Return, NAV to NAV, net of annual charges, gross income reinvest, GBP Market review The Monetary Policy committee (MPC) voted in favour of increasing quantitative easing (QE) measures by 50 billion, a figure widely in line with expectations. This will take the Bank of England s total Asset Purchase Facility (APF) to 325 billion. It remains to be seen whether the MPC will sanction any further QE, although the economic recovery is far from on track, inflation continues to remain a problem. Inflation data consistently fell over the quarter, with headline CPI falling from 3.6% to 3.4%. The February inflation report was less dovish than anticipated with upward revisions to inflation and growth. However, better growth depends on the situation with Europe as to whether the UK can indeed avoid a technical recession following the poor GDP data in the fourth quarter and what looks to be a poor start to the first quarter. March s budget set out a broad range of changes that, overall, were fiscally neutral but underlined the tough austerity measures the UK had to face. Fund review Markets were more liquid at the outset of the quarter and with rates in the 1 year at elevated levels we extended the maturity term by adding some 1 year paper in quality names only. We have continued to push longer on our view that yields could still soften further, although it is difficult to find quality issuers at the longer end. We have also been adding some floating rates notes at attractive yields relative to the curve. Our strategy has been to add yield and look to diversify whilst maintaining overall quality. Outlook The MPC is likely to remain cautious over the overall level of inflation, although it is higher than where they expected the level to be, they still see it falling over the longer term. This does not suggest that rates are likely to rise, the UK still faces a number of headwinds and with the situation in Europe deteriorating, any sign of economic recovery will lack any traction for now. Rates are likely to be on hold until at least The additional liquidity measures introduced by the European Central Bank (ECB) in December 2011 and again in February have seen the heightened stress levels amongst banks start to ease, although remaining elevated. Libor rates under 9 months fell 4-5 basis points, whereas the longer dates to 1 year remained underpinned by higher inflation expectations and were just 2 basis points lower with the 1 year at 1.86%. 13

16 Statement of Net Assets As at 31 March 2012 '000 Assets Investments in securities at amortised cost (note 2.2) 239,795 Cash at bank 65,962 Interest receivable 264 Subscriptions receivable 52 Other assets 17 Total assets 306,090 Liabilities Taxes and expenses payable (166) Redemptions payable (238) Other liabilities (note 2.2) (323) Total liabilities (727) Net assets at the end of the period 305,363 Statement of Changes in Net Assets For the period from 1 January 2012 to 31 March 2012 '000 Net assets at the beginning of the period 300,095 Net gains from investments 529 Net unrealised gains 7 Distributions (262) Proceeds from units issued (note 10) 49,669 Payments for units redeemed (note 10) (44,675) Net assets at the end of the period 305,363 Statement of Operations For the period from 1 January 2012 to 31 March Income Investment income 665 Bank interest 107 Total Income 772 Expenses Management fees (note 4.5) (184) Administration fees (note 4.1) (11) Custodian fees (note 4.2) (4) Domiciliary agent, registrar, paying and transfer agent fees (note 4.3) (12) Management Company fees (note 4.4) (9) Operational expenses (note 4.6) (19) Annual tax (note 4.7) (4) Total Expenses (243) Net gains from investments 529 Increase in unrealised appreciation on investments 7 Net unrealised gains 7 Net increase in assets as a result of operations 536 Share transactions For the period from 1 January 2012 to 31 March 2012 A-1 A-2 I-1 I-2 Z-1 Shares outstanding at the beginning of the period 70,065 38,842 70,090 13,975 99,800,000 Shares issued during the period 103 1, ,244,678 Shares redeemed during the period (3,981) (2,700) (22,718,000) Shares outstanding at the end of the period 70,168 36,845 70,230 11, ,326,678 Net asset value per share , , The accompanying notes form an integral part of these financial statements. 14 Aberdeen Liquidity Fund (Lux) - Sterling Fund

17 Portfolio Statement As at 31 March 2012 Coupon (%) Maturity Nominal Market value 000 Percentage of total net assets % Security Bonds % Australia & New Zealand Banking (EMTN) /10/2012 5,000,000 5, BNP Paribas (EMTN) (FRN) /05/2012 3,000,000 3, Deutsche Bank (EMTN) /04/2012 1,000,000 1, Dexia Credit Local (EMTN) (FRN) /01/2013 5,000,000 5, FMS Wertmanagement (EMTN) /04/2012 5,000,000 5, FMS Wertmanagement (EMTN) (FRN) /04/2012 5,000,000 5, General Electric Capital Funding (EMTN) /01/2013 4,500,000 4, Nordea Bank (EMTN) /02/2013 5,000,000 5, Rabobank Nederland (EMTN) /01/2013 5,000,000 5, Rabobank Nederland (EMTN) (FRN) /07/2012 5,000,000 5, , Money Market Instruments % ABN Amro Bank 25/06/2012 3,000,000 2, Aviva 13/04/2012 6,000,000 5, Barclays Bank /04/2012 7,500,000 7, Barclays Bank /07/2012 2,500,000 2, BPCE 24/04/ ,000,000 9, Caisse Amortissement de la Dette Sociale 07/08/2012 7,500,000 7, Caisse des Depots et Consignation 01/06/2012 7,500,000 7, Credit Industriel et Commercial /05/2012 1,500,000 1, Danske Bank /05/ ,000,000 10, Deutsche Bank /04/ ,000,000 10, DZ Privatbank 25/06/2012 5,000,000 4, DZ Privatbank 24/05/2012 5,000,000 4, FMS Wertmanagement 16/05/2012 5,000,000 4, ING Bank 01/06/ ,000,000 9, Landesbank Hessen 21/06/ ,000,000 9, Macquarie Bank 28/05/ ,000,000 9, Nationwide Building Society 02/11/2012 2,500,000 2, Nykredit Bank 16/04/ ,000,000 9, Paccar Financial Europe 16/04/2012 4,000,000 3, Paccar Financial Europe 30/04/2012 6,000,000 5, Pohjola Bank 16/05/2012 4,500,000 4, SBAB Statens Bostadsfinansier 20/04/2012 5,000,000 4, Societe Generale 02/07/ ,000,000 9, Standard Chartered Bank /07/2012 7,000,000 7, Svenska Handelsbanken /07/ ,000,000 10, Swedbank 18/04/2012 4,000,000 3, Swedbank 30/04/2012 7,000,000 6, The Bank of Nova Scotia /06/2012 6,000,000 6, Transport for London 03/07/ ,000,000 9, , Transferable securities 239, Total investments 239, Other net assets 65, Total 305, All securities represent transferable securities and money market instruments admitted or dealt with on a regulated market. 15

18 US Dollar Fund 1 January 2012 to 31 March 2012 Performance For the period ended 31 March 2012, the Aberdeen Liquidity Fund (Lux) US Dollar Fund (A2 share class) returned 0.08% compared to a return of 0.02% for the benchmark, 100% 7 day USD Libid. Source: Aberdeen Asset Management, Lipper, BNP Paribas Basis: Total Return, NAV to NAV, net of annual charges, gross income reinvest, USD Market review The Federal Open Market Committee (FOMC) squashed any hopes of additional quantitative easing (QE) citing a softer labour market given the recent declines in the unemployment rate during the quarter. The strong GDP data surprised the markets as well, belying the suggestions from the Federal Reserve in February that growth was frustratingly slow. The FOMC remain committed to keeping the federal funds rate at historic lows, it remains to be seen though whether this will be through until 2014 or whether an earlier move is warranted. Following much improved liquidity conditions provided by the European Central Bank (ECB) in the form of 3 year loans in December last year and a second tranche in February, short term funding rates have eased from their heightened levels during the fourth quarter. Libor levels as such have fallen circa 8 basis points which has taken the 1 year level to 1.05%. Fund review With much improved funding conditions, investors have been looking to extend the maturity term of assets. We have increased the maturity profile of the fund by buying 6 month and 1 year paper in decent names only, on our view and in line with the market that yields would ease from the recent highs. We continue to diversify where possible away from European names, or restrict investment there in the 1-month area. There have also been opportunities to buy some short dated high quality floating rate notes which have been at attractive levels relative to the curve. Outlook Although having acknowledged that the outlook has improved, the Federal Reserve, are likely to be cautious whilst unemployment still remains high. Further easing in the form of QE is likely to be only considered now if the recovery fails to take hold from here. 16 Aberdeen Liquidity Fund (Lux) - US Dollar Fund

19 Statement of Net Assets As at 31 March 2012 $ 000 Assets Investments in securities at amortised cost (note 2.2) 1,948,326 Cash at bank 535,483 Interest receivable 318 Subscriptions receivable 217 Other assets 338 Total assets 2,484,682 Liabilities Payable for investments purchased (64,540) Taxes and expenses payable (1,556) Redemptions payable (2,596) Other liabilities (note 2.2) (1,906) Total liabilities (70,598) Net assets at the end of the year 2,414,084 Statement of Changes in Net Assets For the period from 1 January 2012 to 31 March 2012 $'000 Net assets at the beginning of the year 2,482,144 Net gains from investments 2,733 Net unrealised losses (751) Distributions (5) Proceeds from units issued (note 10) 198,885 Payments for units redeemed (note 10) (268,922) Net assets at the end of the year 2,414,084 Statement of Operations For the period from 1 January 2012 to 31 March 2012 $ 000 Income Investment income 4,035 Bank interest 337 Total Income 4,372 Expenses Management fees (note 4.5) (1,182) Administration fees (note 4.1) (91) Custodian fees (note 4.2) (18) Domiciliary agent, registrar, paying and transfer agent fees (note 4.3) (102) Management Company fees (note 4.4) (61) Operational expenses (note 4.6) (131) Annual tax (note 4.7) (54) Total Expenses (1,639) Net gains from investments 2,733 Increase in unrealised depreciation on investments (751) Net unrealised losses (751) Net increase in assets as a result of operations 1,982 Share transactions For the period from 1 January 2012 to 31 March 2012 A-1 A-2 I-1 I-2 J-2 Z-1 Z-2 Shares outstanding at the beginning of the year 70, ,423 70,038 56, ,049 4,030 Shares issued during the year 57 56, ,154 22,200,000 Shares redeemed during the year (83,558) (2,980) (1,390) (8,300,000) Shares outstanding at the end of the year 70, ,996 70,104 58, ,659 13,900,000 4,030 Net asset value per unit , , , , The accompanying notes form an integral part of these financial statements. 17

20 Portfolio Statement As at 31 March 2012 Security Coupon (%) Maturity Nominal Market value 000 Percentage of total net assets % Bonds % General Electric Capital (MTN) (FRN) /04/ ,000,000 10, Nordea Bank Finland (FRN) /09/ ,000,000 25, Suncorp Metway /07/ ,000,000 10, Svensk Exportkredit (FRN) /07/2012 4,300,000 4, Svenska Handelsbanken /09/ ,000,000 21, Westpac Securities /05/2012 9,600,000 9, , Money Market Instruments % Allianz 28/08/ ,000,000 49, ASB Finance 18/04/ ,000,000 39, Aviva 23/04/ ,000,000 64, Banco Bilbao Vizcaya Argentaria 23/04/ ,000,000 79, Banque Federative du Credit Mutuel 02/05/ ,000,000 39, Barclays Bank 27/02/ ,000,000 39, BNP Paribas 14/06/ ,000,000 29, BNP Paribas /05/ ,000,000 49, BPCE 11/06/ ,000,000 44, Caisse Amortissement de la Dette Sociale 29/08/ ,000,000 24, Caisse Amortissement de la Dette Sociale 11/04/ ,000,000 49, Caisse des Depots et Consignation 08/05/ ,000,000 39, Caisse des Depots et Consignation 15/05/ ,000,000 24, Deutsche Postbank 16/04/ ,000,000 79, DZ Privatbank 29/05/ ,000,000 49, DZ Privatbank 27/04/ ,000,000 49, FMS Wertmanagement 29/05/ ,000,000 49, FMS Wertmanagement 09/07/ ,000,000 34, GDF Suez 17/04/ ,000,000 39, Landeskreditbank Baden Wuerttemberg 10/04/ ,000,000 39, Macquarie Bank 25/06/ ,000,000 24, Macquarie Bank 23/04/ ,000,000 49, Mitsubishi UFJ Trust And Banking 13/04/ ,000,000 24, Nationwide Building Society 27/06/ ,000,000 49, Natixis 09/05/ ,000,000 39, Nykredit Bank 14/05/ ,000,000 39, Nykredit Bank 29/06/ ,000,000 39, Pohjola Bank 26/07/ ,000,000 17, Pohjola Bank 19/06/ ,000,000 30, Pohjola Bank 07/06/2012 9,500,000 9, Pohjola Bank 04/09/ ,000,000 10, Pohjola Bank 18/04/ ,000,000 9, Pohjola Bank 05/04/ ,000,000 17, Pohjola Bank 10/04/ ,000,000 9, Prudential 12/06/ ,000,000 24, Prudential 04/09/ ,000,000 39, SBAB Statens Bostadsfinansier 26/06/ ,000,000 59, Aberdeen Liquidity Fund (Lux) - US Dollar Fund

21 Security Coupon (%) Maturity Nominal Market value 000 Percentage of total net assets % SBAB Statens Bostadsfinansier 23/04/ ,000,000 9, Skandinaviska Enskilda Banken 31/07/ ,000,000 79, Standard Chartered Bank 06/07/ ,000,000 24, Standard Chartered Bank 02/10/ ,000,000 54, Standard Chartered Bank 02/04/ ,000,000 45, Suncorp Metway 10/04/ ,000,000 39, Swedbank 07/05/ ,000,000 39, Swedbank 30/04/ ,000,000 12, Wells Fargo Bank 21/05/ ,000,000 40, Wells Fargo Bank /06/ ,000,000 40, Zurich Finance /05/ ,000,000 19, Zurich Finance 11/06/ ,000,000 9, Zurich Finance 25/07/ ,000,000 24, ,868, Transferable securities 1,948, Total investments 1,948, Other net assets 465, Total 2,414, All securities represent transferable securities and money market instruments admitted or dealt with on a regulated market. 19

22 Notes to the Financial Statements 1 PRESENTATION OF THE FINANCIAL STATEMENTS 1.1 General Aberdeen Liquidity (Lux), ( the Fund ) is a mutual investment fund ( fonds commun de placement ) organised under the laws of the Grand Duchy of Luxembourg. It is an unincorporated co-proprietorship of its assets, managed in the interest of the unitholders by Aberdeen Global Services S.A. (the Management Company ), a company incorporated under the laws of the Grand Duchy of Luxembourg and having its registered office in Luxembourg. The Unitholders shall have equal undivided co-ownership rights to all of the Fund s assets in proportion to the number of Units held by them and the corresponding Net Asset value of such Units. The Fund is established with UCITS status (an Undertaking for Collective Investment in transferable securities) as defined in the UCITS Directive. The Fund is authorised as an undertaking for collective investment in transferable securities under part 1 of the law dated 17 December 2010 on undertakings for collective investment. On 19 March 2012, the Board of Directors of the Management Company resolved to change the financial year end to 31 March going forward. At 31 March 2012, the Fund comprises four separate active Sub-Funds. 1.2 Presentation of financial statements The accompanying financial statements present the assets and liabilities of the individual Sub-Funds and of the Fund taken as a whole. The financial statements of each individual Sub-Fund are expressed in the currency designated in the prospectus for that particular Sub-Fund and the financial statements of the Fund are expressed in US Dollars ( USD ). The financial statements have been prepared in accordance with the format prescribed by the Luxembourg authorities for Luxembourg investment companies. As the financial statements include certain accounting adjustments relating to the period ended 31 March 2012, the Net Asset Values shown throughout the report may differ from those advertised on 31 March 2012 for dealing in these Funds. 2 ACCOUNTING POLICIES 2.1 Accounting convention The financial statements have been prepared under the historical cost convention modified by the revaluation of investments. 2.2 Assets and portfolio securities valuation The valuation price of an investment is progressively adjusted to the redemption price, based on the net acquisition price and keeping the resultant yield to maturity constant (linear amortised cost basis). In the event of a significant change in market conditions, the basis for the valuation of different investments is adjusted based on the new market yields. If a valuation in accordance with the above rules is rendered impossible or incorrect due to special or changed circumstances, the Management Company is entitled to use other generally recognised valuation principles in order to value the sub-fund s assets. Security Acronyms EMTN Euro Medium Term Note FRN Floating Rate Note MTN Medium Term Note Starting from September 2007, daily comparisons were carried out between the amortized cost price and the last available market price. Based on these comparisons, the Management Company decided to create provisions within the respective sub-fund as protection against possible losses in the event of redemption-related sales. The following provisions are recorded in the other liabilities caption of the financial statements: CCY Canadian Dollar Fund CAD 69, , Euro Fund EUR 1,345, ,345, Sterling Fund GBP 228, , US Dollar Fund USD 1,900, ,900, Aberdeen Liquidity Fund (Lux)

23 2.3 Income and expenses Interest is accrued on a day-to-day basis. In the case of debt securities issued at discount or premium to maturity value, the total income arising on such securities, taking into account the amortisation of such discount or premium, is spread over the life of the security. Interest income is stated net or irrecoverable withholding taxes, if any. Expenses which do not relate to a particular Fund are allocated between Funds in proportion to the NAV s of the individual Sub-Funds. 2.4 Foreign exchange The cost of investments, income and expenses in currencies other than the sub-fund s relevant reporting currency have been recorded at the rate of exchange ruling at the time of the transaction. The market value of the investments and other assets and liabilities in currencies other than the relevant reporting currency has been converted at the rates of exchange ruling at 31 March Realised and unrealised exchange differences on the revaluation of foreign currencies are taken to the Statement of Operations. 2.5 Realised gains and losses on investments Realised gains and losses on investments is the difference between the historical average cost of the investment and the sale proceeds. 2.6 Forward currency exchange contracts Unsettled forward currency exchange contracts are valued using forward rates of exchange applicable at the balance sheet date for the remaining period until maturity. All unrealised gains and losses are recognised in the Statement of Operations. 3 UNIT CLASS INFORMATION 3.1 General The Fund is entitled to create different units within each Sub-Fund. Units are issued fully paid with respect to the sub-funds. 3.2 Class A Units Class A units are available to all investors. Class A units are subject to a rate of Taxe d Abonnement of 0.01% per annum. 3.3 Class I, J, K and Z Units Class I, J, K and Z units are only available to Institutional Investors who enter into a suitable agreement with the Investment Manager or one of its Associates. It is anticipated that these units will benefit from an exemption to pay Taxe d Abonnement. 3.4 Switches Units in one Sub-Fund may be exchanged or switched into units of the same or a different Class in another sub-fund or of a different Class in the same sub-fund, subject to the qualifications for investment being met, on any Dealing Day for the relevant sub-fund. Holders of Class A Units may only exchanged their Units for Class I, J, K or Z Units in the same or another sub-fund with the prior consent of the Global Distributor and provided they have a suitable agreement in place with the Investment Manager or one of its Associates and they qualify as an Institutional Investor and comply with the minimum investment and holding requirements of the relevant Classes. Any exchange of Units is subject to meeting the relevant Unit class qualifications and to the limitations and charges as described in the Prospectus. 4 EXPENSES 4.1 Administration fees Administration fees will not exceed 0.05% per annum (plus VAT, if any) of the net assets of the Fund as determined on the last dealing day of each month with a minimum amount payable of 32,500 per annum. 4.2 Custodian fees The Custodian Bank receives a safekeeping fee, based on the market value of the stock involved and where it is registered, which will not exceed 2% per annum (plus VAT if any) of the net assets of the Fund as determined on the last dealing day of each month. The custodian also receives transaction fees based on the number of transactions made by each fund and for reasonable out of pocket expenses. The Listing Agent is entitled to receive a fee calculated in accordance with normal banking practice in Luxembourg and payable out of the assets of the Funds. The Listing Agent s fee will not exceed 0.01% per annum (plus VAT, if any) of the net assets of the Fund as determined on the last Dealing Day of the month. 21

24 Notes to the Financial Statements continued 4.3 Domiciliary agent, registrar, paying and transfer agent fees The Fund will pay Domiciliary, Registrar Paying, and Transfer Agency fees not exceeding 0.1% per annum (plus VAT, if any) of the net assets of the Fund as determined on the last Dealing Day of the month. The Fund will pay Paying Agent fees not exceeding 0.1% per annum of the net assets of the Fund as determined on the last Dealing Day of the month. 4.4 Management Company fees The Management Company receives a fee which will not exceed 0.04% per annum of the net assets of the Fund. Currently the fee is 0.01% per annum of the Fund s net assets. 4.5 Management fees The Investment Manager is entitled to receive management fees calculated on the Net Asset Value of the Funds, accrued daily. The following rates are applicable according to the prospectus. Classes of shares (%) Fund A I J Canadian Dollar Fund n/a Euro Fund Sterling Fund n/a US Dollar Fund Class Z units are not subject to any management fee charge The following management fee rates were charged during the period ended 31 March 2012, as a result of management fee waivers: Classes of shares (%) Fund A I J Canadian Dollar Fund n/a Euro Fund Sterling Fund n/a US Dollar Fund Operational expenses Operational expenses represent other amounts paid by the Company relating to the operation of the Funds. They include legal fees, audit fees, Directors fees, cost of printing and distributing the prospectuses and annual and half yearly reports, fees in connection with obtaining or maintaining any registration or authorisation of the Fund with any governmental agency or stock exchange as well as the cost of publication of share prices. 4.7 Annual taxation The Fund is liable in Luxembourg to a Taxe d Abonnement of a rate of 0.01% per annum for each Class. However it is anticipated that Class I, Class J, Class K and Class Z Units will benefit from an exemption. This is accrued daily and payable quarterly on the basis of the value of the net assets of the Fund at the end of the relevant quarter. 5 DIVIDENDS Class A-1, Class I-1, Class J-1 and Class Z-1 Units will declare dividends on a daily basis and distribute on or about the second Business Day of the following month. These Units of each Fund begin earning dividends on the Dealing Day on which they were issued. If an investor redeems its entire holding of these Units within a Fund during a month, accrued but unpaid dividends are payable with the redemption proceeds. For partial redemptions of a holding, accrued but unpaid dividends are payable on the next pay date. Units do not earn dividends on the Dealing Day on which their redemption is accepted. Class A-2, Class I-2, Class J-2 and Class Z-2 Units will accumulate investment income within the Unit Price of this Class of Unit on a daily basis. 22 Aberdeen Liquidity Fund (Lux)

25 6 DIRECTORS INTERESTS None of the Directors were materially interested in any contracts of significance subsisting with the Fund either during the period or at 31 March None of the Directors have service contracts with the Fund. 7 CHANGES IN INVESTMENT PORTFOLIO The schedule of changes in the investment portfolio is available on request from the Registered Office in Luxembourg and from the local agents listed under Management and Administration and in the Prospectus. 8 TRANSACTIONS WITH CONNECTED PERSONS Transactions with connected persons outlined in the previous notes have been entered into in the ordinary course of business and on normal commercial terms. 9 SOFT COMMISSION/COMMISSION SHARING There are no soft commission arrangements for the Fund. 10 EQUALISATION Equalisation is operated in connection with the issue and redemption of units. It represents the income element included in the price for the issue and redemption of units. 11 TRANSACTION COSTS For the period ended 31 March 2012, the Fund incurred transaction costs which have been defined as costs relating to the sale or purchase of transferable securities, money market instruments, derivatives and other eligible assets of: Canadian Dollar Fund CAD 6, Euro Fund EUR 13, Sterling Fund GBP 5, US Dollar Fund USD 17, subsequent event Effective 1 April 2012 the Board of Directors of the Management Company resolved to change the Fund s structure from a fonds commun de placement to a SICAV. 23

26 Report of the Reviseur d'entreprises agree To the Unitholders of Aberdeen liquidity Fund (Lux) 2b, rue Albert Bors(hette L-1246 Luxembourg REPORT ON THE FINANCIAL STATEMENTS We haye audited the accompanying financial statements of Aberdeen Liquidity Fund (lux) and each of its sub-funds, which comprise statement of net assets and the statement of investments in securities and other net assets as at March 31, 2012 and the statement of operations and the statement of changes in net assels for the period from January 1, 2012 to March 31, 2012 and a summary of sign ificant accounting policies and other explanatory information. BOARD OF DIRECTORS OFTHE MANAGE MENT COMPANY RESPO NSIBILITY FOR THE FINANCIAL STATEMENTS The Board of Directors of the Management Company is responsible for the preparation and fa ir 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 OFTHE 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 vlith International Standards on Auditing as adopted for luxembourg by the Commission de Surveillance du Secleur 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 fi nancial statements, The procedures selected depend on the judgement of the Reviseur d'entreprises agree, 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 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 01 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 evalualing 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 fa ir view of the financial position of Aberdeen liquidity Fund (Lux) and each of its sub funds as of March 31, 2012, and of the results of their operations and changes in their net assets for the period from January 1, 2012 to March 31, 2012 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. Luxembourg, 27 July 2012 KPMG luxembourg S..!! r.l. ~';'Z~~' ~6n Partner