SHB SICAV SOCIETE D INVESTISSEMENT A CAPITAL VARIABLE (SICAV)

Transcription

1 SOCIETE D INVESTISSEMENT A CAPITAL VARIABLE (SICAV) AUDITED ANNUAL REPORT For the year ended 31 December 2013 RCS Luxembourg B

2 Table of Contents SHAREHOLDERS INFORMATION 2 ADMINISTRATION AND SERVICE PROVIDERS 3 INVESTMENT MANAGER S REPORT XACT Nordic XACT Nordic Bank & Insurance 6 XACT Nordic Construction & Real Estate 7 XACT Nordic Consumer 8 XACT Nordic Energy 9 XACT Nordic Health Care 10 XACT Nordic Industrials 11 XACT Nordic Materials 12 XACT Commodity 13 XACT Oil Service 14 XACT Sweden Repo 15 XACT Sweden All Bond 16 XACT Hang Seng China 17 Global Measurement Methods 18 REPORT OF THE REVISEUR D ENTREPRISES AGREE 19 STATEMENT OF NET ASSETS 21 STATEMENT OF OPERATIONS 24 STATEMENT OF CHANGES IN NET ASSETS 27 STATEMENT OF CHANGES IN NUMBER OF SHARES OUTSTANDING 30 SCHEDULE OF INVESTMENTS 33 STATISTICAL INFORMATION 38 NOTES TO THE FINANCIAL STATEMENTS 42 1

3 Shareholders Information Information to Shareholders of SHB SICAV hereafter called SHB SICAV or the Fund. Audited annual and unaudited semi-annual reports are available at the registered office of the Fund and the Custodian during ordinary office hours. The certified Articles of Incorporation were lodged at the office of the Registrar Registre de Commerce et des Sociétés of Luxembourg where they are available for inspection and where copies may be obtained upon request. The sale and repurchase prices of the shares may be obtained at the Registered Office of the Fund. Copies of portfolio changes are available from the Registered Office of the Fund. The Board of Director s meeting of 19 February 2014 has decided to propose the liquidation of the Fund but due to different steps that need to be completed before such an event can occur, no date has been set for the liquidation. No subscription or redemption can be accepted on the basis of financial reports alone. Subscriptions or redemptions are only valid if made on the basis of the current prospectus, supplemented by the latest available audited annual report or by the most recent semi-annual report, if published thereafter. 2

4 Administration and Service Providers Directors Magnus FAGERANG, Senior Vice President, Svenska Handelsbanken AB (publ), Stockholm, Sweden Jacques ELVINGER, Maître en Droit and Partner, Elvinger, Hoss & Prussen, Grand Duchy of Luxembourg Julie Elizabeth Anne KRENTZ, Head of Investment Funds, Svenska Handelsbanken AB (publ), Luxembourg Branch (until 5 April 2013) Pär NURNBERG, Head of Business Development, Handelsbanken Fonder AB, Stockholm, Sweden Christian DAHL, Chairman (appointed 5 April 2013) Head of HCA International, Stockholm, Sweden Handelsbanken Kapitalforvaltning AS, Oslo, Norway Rudy HOYLAERTS, Head of Investment Funds (appointed 5 April 2013) Svenska Handelsbanken AB (publ), Luxembourg Branch Staffan RINGVALL, Head of Investment Funds (appointed 5 April 2013 until 1 July 2013) Svenska Handelsbanken AB (publ), Luxembourg Branch Registered Office SHB SICAV Société d'investissement à capital variable 15, rue Bender L-1229 Luxembourg, Grand Duchy of Luxembourg Conducting Officers Julie Elizabeth Anne KRENTZ, Head of Investment Funds (until 1 September 2013) (dirigeants) Svenska Handelsbanken AB (publ), Luxembourg Branch Henrik BECK-NOREN, Head of XACT (until 15 July 2013) Stockholm, Sweden Rudy HOYLAERTS, Head of Investment Funds (appointed 15 July 2013) Svenska Handelsbanken AB (publ), Luxembourg Branch Staffan RINGVALL, Head of Investment Funds (appointed 15 July 2013 until 1 September 2013) Svenska Handelsbanken AB (publ), Luxembourg Branch Oliver O ROURKE (until 15 July 2013) (reappointed 6 November 2013) Svenska Handelsbanken AB (publ), Luxembourg Branch Investment Manager Handelsbanken Fonder AB, Blasieholmstorg 12 SE Stockholm, Sweden 3

5 Administration and Service Providers (continued) Corporate and Domiciliary Agent Svenska Handelsbanken AB (publ), Luxembourg Branch 15, rue Bender L-1229 Luxembourg, Grand Duchy of Luxembourg Administrative Agent, Paying Agent Brown Brothers Harriman (Luxembourg) S.C.A. Registrar and Transfer Agent 2-8, Avenue Charles de Gaulle, B.P. 403 L-1653 Luxembourg, Grand Duchy of Luxembourg Custodian Brown Brothers Harriman (Luxembourg) S.C.A. 2-8, Avenue Charles de Gaulle, B.P. 403 L-1653 Luxembourg, Grand Duchy of Luxembourg Cabinet de KPMG Luxembourg S.à r.l. révision agréé 9, Allée Scheffer L-2520 Luxembourg, Grand Duchy of Luxembourg Legal Advisors Elvinger, Hoss & Prussen 2, Place Winston Churchill L-2014 Luxembourg, Grand Duchy of Luxembourg 4

6 Investment Manager s Report SHB SICAV XACT NORDIC 120 Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the NASDAQ OMX Nordic 120 Index (net version). International activities The sub-fund is exposed to an index tracking international, particularly Nordic, equities. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: EUR December 2013: EUR Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund 21.52%. Performance of the NASDAQ OMX Nordic 120 Index (net version): 21.69%. Tracking error 0.14%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 5

7 Investment Manager s Report (continued) SHB SICAV XACT NORDIC BANK & INSURANCE Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the NASDAQ OMX Nordic Bank & Insurance Index (net version). International activities The sub-fund is exposed to an index tracking international, particularly Nordic, equities. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: EUR December 2013: EUR Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund 41.87%. Performance of the NASDAQ OMX Nordic Bank & Insurance Index (net version): 42.09%. Tracking error 0.21%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 6

8 Investment Manager s Report (continued) SHB SICAV XACT NORDIC CONSTRUCTION & REAL ESTATE Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the NASDAQ OMX Nordic Construction & Real Estate Index (net version). International activities The sub-fund is exposed to an index tracking international, particularly Nordic, equities. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: EUR December 2013: EUR Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund 26.27%. Performance of the NASDAQ OMX Nordic Construction & Real Estate Index (net version): 26.44%. Tracking error 0.18%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 7

9 Investment Manager s Report (continued) SHB SICAV XACT NORDIC CONSUMER Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the NASDAQ OMX Nordic Consumer Index (net version). International activities The sub-fund is exposed to an index tracking international, particularly Nordic, equities. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: EUR December 2013: EUR Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund 26.98%. Performance of the NASDAQ OMX Nordic Consumer Index (net version): 27.19%. Tracking error 0.15%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 8

10 Investment Manager s Report (continued) SHB SICAV XACT NORDIC ENERGY Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the NASDAQ OMX Nordic Energy Index (net version). International activities The sub-fund is exposed to an index tracking international, particularly Nordic, equities. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: EUR December 2013: EUR Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund 4.21%. Performance of the NASDAQ OMX Nordic Energy Index (net version): 4.32%. Tracking error 0.14%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 9

11 Investment Manager s Report (continued) SHB SICAV XACT NORDIC HEALTH CARE Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the NASDAQ OMX Nordic Health Care Index (net version). International activities The sub-fund is exposed to an index tracking international, particularly Nordic, equities. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: EUR December 2013: EUR Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund 16.06%. Performance of the NASDAQ OMX Nordic Health Care Index (net version): 16.30%. Tracking error 0.09%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 10

12 Investment Manager s Report (continued) SHB SICAV XACT NORDIC INDUSTRIALS Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the NASDAQ OMX Nordic Industrials Index (net version). International activities The sub-fund is exposed to an index tracking international, particularly Nordic, equities. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: EUR December 2013: EUR Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund: 6.40%. Performance of the NASDAQ OMX Nordic Industrials Index (net version): 6.52%. Tracking error: 0.17%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 11

13 Investment Manager s Report (continued) SHB SICAV XACT NORDIC MATERIALS Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the NASDAQ OMX Nordic Materials Index (net version). International activities The sub-fund is exposed to an index tracking international, particularly Nordic, equities. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: EUR December 2013: EUR Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund: 7.33%. Performance of the NASDAQ OMX Nordic Materials Index (net version): 7.35%. Tracking error: 0.26%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 12

14 Investment Manager s Report (continued) SHB SICAV XACT COMMODITY Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the SHB Commodity Index Excess Return. International activities The sub-fund is exposed to an index tracking internationally traded commodities. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: USD December 2013: USD Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund: -8.88%. Performance of the SHB Commodity Index Excess Return: -8.40%. Tracking error: 0.21%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 13

15 Investment Manager s Report (continued) SHB SICAV XACT OIL SERVICE Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the Oslo Børs OBX Oil Service Index. International activities The sub-fund is exposed to an index tracking the largest and most traded shares within the oil service sector on the exchange in Oslo, Norway. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: NOK December 2013: NOK Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund: -1.20%. Performance of the Oslo Børs OBX Oil Service Index: -0.70%. Tracking error: 0.02%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 14

16 Investment Manager s Report (continued) SHB SICAV XACT SWEDEN REPO Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the Handelsbanken Sweden Repo Tradable Index. International activities The sub-fund is exposed to an index tracking the Swedish one week rate, generally referred to as the repo rate, determined by Riksbanken, the Swedish central bank. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: SEK December 2013: SEK Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund: 0.88%. Performance of the Handelsbanken Sweden Repo Tradable Index: 1.01%. Tracking error: 0.00%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 15

17 Investment Manager s Report (continued) SHB SICAV XACT SWEDEN ALL BOND Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the Handelsbanken Sweden All Bond Tradable Index. International activities The sub-fund is exposed to an index tracking the Swedish government and mortgage bond market. The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: SEK December 2013: SEK Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund: -0.14%. Performance of the Handelsbanken Sweden All Bond Tradable Index: 0.05%. Tracking error: 0.00%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 16

18 Investment Manager s Report (continued) SHB SICAV XACT HANG SENG CHINA Fund s environment The investment objective of the sub-fund is to generate a return corresponding to a long exposure to the Hang Seng China Enterprises Index (HSCEI) Total Return Index. International activities The sub-fund is exposed to an index tracking the 40 largest and most traded shares of companies incorporated in the Chinese mainland that are listed on the Hong Kong stock exchange (H shares). The exposure is obtained by way of total return swaps (derivatives) entered into with Svenska Handelsbanken AB (publ), a bank based in Sweden. Changes in the financial situation No significant changes to be reported. The substantial part of the sub-fund s assets has consisted of a claim under the total return swaps (referred to above) against Svenska Handelsbanken AB (publ). The sub-fund has received collateral from the bank as security for the claim. NAV per share 31 December 2012: EUR December 2013: EUR Changes in revenue Not applicable as the sub-fund is a swap-based index fund. Significant investments and disinvestments The sub-fund invests and disinvests by increasing or decreasing its swaps as required by creations and redemptions in the sub-fund. Justification of positions involving a value judgment Not applicable as the sub-fund is a swap-based index fund. Performance information Performance of the sub-fund: -7.72%. Performance of the Hang Seng China Enterprises Index (HSCEI) Total Return Index: -5.42%. Tracking error: 2.19%. Please note: The figures stated in this report are historical and not necessarily indicative of future performance. 17

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20 Report of the Réviseur d Entreprises agréé To the Shareholders of SHB SICAV 15, rue Bender L-1229 Luxembourg We have audited the accompanying financial statements of SHB SICAV (the SICAV ) and each of its sub-funds, which comprise the Statement of Net Assets and the Schedule of Investments as at 31 December 2013 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 information. Board of Directors of the SICAV responsibility for the financial statements The Board of Directors of the SICAV 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 SICAV 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 judgement 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 SICAV, 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. 19

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34 Schedule of Investments As at 31 December 2013 XACT Nordic 120 (expressed in EUR) Number of Market Value % of Net Shares Denomination Cost (note 2) Assets Transferable securities admitted to an official exchange listing. Equities EUR - Finland 1 Sampo OYJ Total Investments XACT Nordic Bank & Insurance (expressed in EUR) Number of Market Value % of Net Shares Denomination Cost (note 2) Assets Transferable securities admitted to an official exchange listing. Equities EUR - Finland 1 Sampo OYJ Total Investments The accompanying notes form an integral part of these financial statements. 33

35 Schedule of Investments (continued) As at 31 December 2013 XACT Nordic Construction & Real Estate (expressed in EUR) Number of Market Value % of Net Shares Denomination Cost (note 2) Assets Transferable securities admitted to an official exchange listing. Equities EUR - Finland 1 Sampo OYJ Total Investments XACT Nordic Consumer (expressed in EUR) Number of Market Value % of Net Shares Denomination Cost (note 2) Assets Transferable securities admitted to an official exchange listing. Equities EUR - Finland 1 Sampo OYJ Total Investments The accompanying notes form an integral part of these financial statements. 34

36 Schedule of Investments (continued) As at 31 December 2013 XACT Nordic Energy (expressed in EUR) Number of Market Value % of Net Shares Denomination Cost (note 2) Assets Transferable securities admitted to an official exchange listing. Equities EUR - Finland 1 Sampo OYJ Total Investments XACT Nordic Health Care (expressed in EUR) Number of Market Value % of Net Shares Denomination Cost (note 2) Assets Transferable securities admitted to an official exchange listing. Equities EUR - Finland 1 Sampo OYJ Total Investments The accompanying notes form an integral part of these financial statements. 35

37 Schedule of Investments (continued) As at 31 December 2013 XACT Nordic Industrials (expressed in EUR) Number of Market Value % of Net Shares Denomination Cost (note 2) Assets Transferable securities admitted to an official exchange listing. Equities EUR - Finland 1 Sampo OYJ Total Investments XACT Nordic Materials (expressed in EUR) Number of Market Value % of Net Shares Denomination Cost (note 2) Assets Transferable securities admitted to an official exchange listing. Equities EUR - Finland 1 Sampo OYJ Total Investments The accompanying notes form an integral part of these financial statements. 36

38 Schedule of Investments (continued) As at 31 December 2013 XACT Oil Service (expressed in NOK) Number of Market Value % of Net Shares Denomination Cost (note 2) Assets Transferable securities admitted to an official exchange listing. Equities NOK - Norway 1 Statoil ASA Total Investments The accompanying notes form an integral part of these financial statements. 37

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43 Notes to the Financial Statements Note 1 GENERAL INFORMATION SHB SICAV (the Fund ), an open-ended collective investment company (société d'investissement à capital variable) was incorporated in Luxembourg on 1 June 2010, and is subject to Part I of the Law of 17 December 2010 relating to undertakings for collective investments (the Law of 2010 ), with an umbrella structure comprising different sub-funds and Classes. As at 31 December 2013 there are thirteen sub-funds: XACT Nordic 120 The shares are offered at offering price expressed in Euro (EUR). XACT Nordic Bank & Insurance The shares are offered at offering price expressed in Euro (EUR). XACT Nordic Construction & Real Estate The shares are offered at offering price expressed in Euro (EUR). XACT Nordic Consumer The shares are offered at offering price expressed in Euro (EUR). XACT Nordic Energy The shares are offered at offering price expressed in Euro (EUR). XACT Nordic Health Care The shares are offered at offering price expressed in Euro (EUR). XACT Nordic Industrials The shares are offered at offering price expressed in Euro (EUR). XACT Nordic Materials The shares are offered at offering price expressed in Euro (EUR). XACT Commodity The shares are offered at offering price expressed in United States Dollar (USD). XACT Oil Service The shares are offered at offering price expressed in Norwegian Krona (NOK). XACT Sweden Repo The shares are offered at offering price expressed in Swedish Krona (SEK). XACT Sweden All Bond The shares are offered at offering price expressed in Swedish Krona (SEK). XACT Hang Seng China The shares are offered at offering price expressed in Euro (EUR). 42

44 Notes to the Financial Statements (continued) Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of Financial Statements The financial statements are prepared in accordance with Luxembourg legal and regulatory requirements relating to undertakings for collective investment. Following the resolution of the Board of Directors as at 19 February 2014 to liquidate the Fund, the use of the going concern assumption is no longer appropriate for the preparation of these financial statements and the basis of accounting has been changed from the going concern basis to a liquidation basis. This change in accounting basis requires that the assets are valued on their liquidating value and provisions are included in the net asset value calculation to cover all the liquidation costs. As at 31 December 2013, the liquidation costs have been estimated at EUR 172,680, representing a potential negative impact on the consolidated net assets of the Fund of 0.04%. However, as the Fund is an ETF, several procedures need to be completed before any formal decision can be voted by the shareholders. As at the date of this report, the Board of Directors has not enough assurance on the time required to complete these procedures and as a consequence, no extraordinary meeting of shareholders has been currently convened. Therefore, the Board of Directors has decided not to include the liquidation costs in the financial statements of the Fund as at 31 December a) Combined Financial Statements The combined Statement of Net Assets, the combined Statement of Operations and the combined Statement of Changes in Net Assets have been prepared in Euro. For the purpose of preparing these combined statements, the assets, liabilities, income and expenses of the sub-funds XACT Commodity, XACT Oil Service, XACT Sweden Repo and XACT Sweden All Bond have been translated into Euro at the applicable exchange rates prevailing at year end. b) Swaps The Fund may enter into swap contracts in which the Fund and the counterparty agree to exchange payments (periodically throughout the life of the contract) where one or both parties pay the returns generated by a security, index, commodities, or instruments on an agreed upon notional amount. The relevant indices include, but are not limited to, currencies, interest rates, prices and total return on interest rates indices, fixed income indices and stock indices. All swap transactions are valued based on a calculation of the net present value of their expected cash flows. Unrealised gains or losses on swaps are recorded under Unrealised net gain/(loss) on swaps in the Statement of Net Assets. Realised gains or losses and change in unrealised gains or losses on swaps are recorded under Net realised gain/(loss) on swaps and other investments, and under Change in unrealised appreciation/(depreciation) on investments, swaps and foreign exchange in the Statement of Operations. The change in the value of the swap is reported as Change in unrealised appreciation/(depreciation) on investments, swaps and foreign exchange, until termination of the contract when it is realised. 43

45 Notes to the Financial Statements (continued) Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) c) Security Valuation Investments in securities which are quoted or dealt in on a Stock Exchange are valued based on the last available closing price on the exchange at the time when the valuation is carried out. Security transactions are accounted for on the date the securities are purchased or sold. The movement in the balance of unrealised appreciation/(depreciation) of investments at the beginning and at the end of the year is recorded as Change in unrealised appreciation/(depreciation) on investments, swaps and foreign exchange in the Statement of Operations. d) Foreign Exchange Translation The financial statements of each sub-fund are expressed in Euro (EUR) except for the following subfunds: Sub-fund XACT Commodity XACT Oil Service XACT Sweden Repo XACT Sweden All Bond Currency United States Dollar (USD) Norwegian Krona (NOK) Swedish Krona (SEK) Swedish Krona (SEK) Bank accounts, other net assets or other net liabilities and the market value of the investments in currencies other than the sub-fund s currency are translated into the sub-fund s currency at the applicable exchange rates prevailing at year end. Transactions in foreign currencies are translated into the sub-fund s currency at exchange rates prevailing on payment date. Resulting realised and unrealised foreign exchange gains or losses are included in the Statement of Operations. Foreign exchange rates used at year end are as follows: USD 1 = EUR NOK 1 = EUR SEK 1 = EUR GBP 1 = EUR e) Cost of Swaps The cost of Swaps denominated in currencies other than the sub-fund s currency is translated into the sub-fund s currency at the exchange rate prevailing at the date of purchase. f) Dividends The ETF class shares are capitalisation shares and will hence not distribute any dividends. g) Valuation Date The financial statements reflect the Net Asset Values as calculated on 30 December 2013, based on market prices of the investments as at 30 December 2013 as most of Nordic stock exchanges were closed on 31 December 2013, including Nasdaq OMX Stockholm, Nasdaq OMX Helsinki and Oslo Børs. 44

46 Notes to the Financial Statements (continued) Note 3 FEES AND EXPENSES All-in Fee The Fund pays out of the assets of each sub-fund a fee (the All-in Fee ) which covers the following fees: - Investment Manager fee; - Administrative and Paying Agent fee; - Registrar and Transfer Agent fee; - Corporate and Domiciliary Agent fee; - Custodian fee; - Audit fee and - Other administrative expenses. The Investment Manager distributes the relevant fee to each service provider to the Fund out of the proceeds received from the Fund as the All-in Fee. The All-in Fee is calculated on the Net Asset Value as determined on each Valuation Day and is payable monthly in arrears. Note 4 TAXE D ABONNEMENT Under current law and practice, the Fund is not liable to any Luxembourg income tax. Dividends, interest and capital gains on investments held by the Fund may be subject to non-recoverable tax and withholding and capital gains taxes in the countries of origin. Investors should consult their professional advisers on the taxation applicable under the laws of their countries of citizenship, residence or domicile. Note 5 SWAPS Swaps were entered into between Svenska Handelsbanken AB (publ) ("Handelsbanken") and SHB SICAV (the "SICAV") acting separately for the account of its various sub-funds. Each swap is fully funded, i.e. the notional amount (referred to as Cost of swaps in the Statement of Net Assets) is paid to Handelsbanken on inception of the swap and to the SICAV upon termination. Each swap has three legs: 1. an equity leg paid by Handelsbanken to the SICAV (referred to as "Equity Amounts"). 2. an interest leg paid by the SICAV to Handelsbanken (referred to as "Floating Amount I"). 3. an interest leg paid by Handelsbanken to the SICAV (referred to as "Floating Amount II"). The interest rate is generally a short-term interest rate like e.g. EONIA, plus a spread of 0 basis points, for both interest legs, adjusted for yield enhancement-related compensation to the SICAV. The only exceptions refer to swaps entered into for the XACT Commodity and XACT Hang Seng China sub-funds. For those swaps - instead of the foregoing - the following applies. In the XACT Commodity swaps, the XACT Commodity sub-fund pays 32 basis points to Handelsbanken, and Handelsbanken pays a USD T-bill rate to the XACT Commodity sub-fund. In the XACT Hang Seng China swaps, the XACT Hang Seng China subfund pays 5 basis points to Handelsbanken, whereas Handelsbanken pays 0 basis points to the XACT Hang Seng China sub-fund. In cases where the two interest legs are equal to each other, so that Floating Amount I equals Floating Amount II, the net interest is 0 and no interest amounts need to be exchanged between Handelsbanken and the SICAV. 45

47 Notes to the Financial Statements (continued) Note 5 SWAPS (continued) As at 31 December 2013, the XACT Nordic 120 sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in EUR EUR 285,668, ,073 NASDAQ OMX Nordic 120 Index (net version) 1 19/12/2014 9,272,508 Total 9,272,508 As at 31 December 2013, the XACT Nordic Bank & Insurance sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in EUR EUR 6,381,148 6,400 NASDAQ OMX Nordic Bank & Insurance Index (net version) 2 19/12/ ,204 Total 286,204 As at 31 December 2013, the XACT Nordic Construction & Real Estate sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in EUR EUR 5,333,078 5,360 NASDAQ OMX Nordic Construction & Real Estate Index (net version) 3 19/12/ ,310 Total 195,310 1 Please refer to: 2 Please refer to: 3 Please refer to: 46

48 Notes to the Financial Statements (continued) Note 5 SWAPS (continued) As at 31 December 2013, the XACT Nordic Consumer sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in EUR EUR 2,198,695 2,386 NASDAQ OMX Nordic Consumer Index (net version) 4 19/12/ ,155 Total 68,155 As at 31 December 2013, the XACT Nordic Energy sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in EUR EUR 3,529,207 4,513 NASDAQ OMX Nordic Energy Index (net version) 5 19/12/ ,631 Total 125,631 As at 31 December 2013, the XACT Nordic Health Care sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in EUR EUR 6,320,465 5,070 NASDAQ OMX Nordic Health Care Index (net version) 6 12/11/ ,344 Total 390,344 4 Please refer to: 5 Please refer to: 6 Please refer to: 47

49 Notes to the Financial Statements (continued) Note 5 SWAPS (continued) As at 31 December 2013, the XACT Nordic Industrials sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in EUR EUR 4,304,767 5,112 NASDAQ OMX Nordic Industrials Index (net version) 7 EUR 613, NASDAQ OMX Nordic Industrials Index (net version) 7 14/10/2014 (46,303) 24/12/ ,940 Total (34,363) As at 31 December 2013, the XACT Nordic Materials sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in EUR EUR 2,352,599 3,472 NASDAQ OMX Nordic Materials Index (net version) 8 12/11/ ,190 Total 48,190 As at 31 December 2013, the XACT Commodity sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in USD USD 132,075, ,252 SHB Commodity Index Excess Return 9 17/12/2014 1,170,218 Total 1,170,218 7 Please refer to: 8 Please refer to: 9 Please refer to: Index/ 48

50 Notes to the Financial Statements (continued) Note 5 SWAPS (continued) Further to the announcement in the Handelsbanken Index Rules (1 January 2013), effective from 1 January 2013 the Index Calculator for the SHB Commodity Index Excess Return changed from NASDAQ OMX Group, Inc to Handelsbanken Capital Markets. The SHB Commodity Index Excess Return (the "Index") measures the performance of a basket of commodities, each such commodity represented by an index based on futures contracts in the relevant commodity. It is designed as benchmark for investment in the Nordic commodity markets. It is also designed as a "tradable" index that is readily accessible to market participants. In order to achieve its objectives the Index consists primarily of commodities that are important to the Nordic markets on a world production-weighted basis adjusted for liquidity. There is no limit to the number of contracts that may be included in the Index. The following table presents the composition (the last composition of the index has been defined on 1 December 2013) and exposure of the SHB Commodity Index Excess Return index: Underlying Asset Weight (as of 1 December 2013) SHB Commodity Index Excess Return SHB Crude Oil 18.00% 23,773,669 SHB Power 10.00% 13,207,594 SHB Gas Oil 12.00% 15,849,112 SHB Gasoline 10.00% 13,207,594 SHB Copper 11.00% 14,528,353 SHB Aluminium 7.00% 9,245,316 SHB Nickel 3.00% 3,962,278 SHB Zinc 2.00% 2,641,519 SHB Milling Wheat 3.00% 3,962,278 SHB Lean Hogs 3.00% 3,962,278 SHB Live Cattle 3.00% 3,962,278 SHB Soybeans 2.00% 2,641,519 SHB Coffee 2.00% 2,641,519 SHB Gold 12.00% 15,849,112 SHB Silver 2.00% 2,641,519 Value as at 31 December 2013 in USD 132,075,938 As at 31 December 2013, the XACT Oil Service sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in NOK NOK 32,097, ,147 Oslo Børs OBX Oil Service Index 10 12/11/2014 (932,002) Total (932,002) 10 Please refer to: 49

51 Notes to the Financial Statements (continued) Note 5 SWAPS (continued) As at 31 December 2013, the XACT Sweden Repo sub-fund had the following outstanding Fully Funded Swaps: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in SEK SEK 207,331,021 1,128,948 Handelsbanken Sweden Repo Tradable Index 11 SEK 36,225, ,256 Handelsbanken Sweden Repo Tradable Index 11 22/07/ ,900 19/12/2014 8,305 Total 916,205 As of each Calculation Date (t), the Handelsbanken Sweden Repo Tradable Index Level I t is determined by the Index Calculator (Handelsbanken Capital Markets) in accordance with the following formula: where: t Compound = the nearest preceding Compounding Date prior to t. r tcompound = the Repo Rate as of the nearest preceding Compounding Date prior to t. Act(t Compound,t) = the number of calendar days between t Compound and t. For further definitions, please refer to link as per footnote 11. As at 31 December 2013, the XACT Sweden All Bond sub-fund had the following outstanding Fully Funded Swaps: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in SEK SEK 196,056,494 1,370, Handelsbanken Sweden All Bond Tradable Index 12 SEK 33,599, , Handelsbanken Sweden All Bond Tradable Index 12 11/09/2014 4,011,369 24/10/ ,353 Total 4,142, Please refer to: 12 Please refer to: 50

52 Notes to the Financial Statements (continued) Note 5 SWAPS (continued) The following table presents the composition and exposure of the Handelsbanken Sweden All Bond Tradable Index: Handelsbanken Sweden All Bond Underlying Asset Weight Sweden All Bond 1 Sweden All Bond 2 SGB % 11,606,544 1,989,106 SGB % 9,195,050 1,575,829 SGB % 8,900,965 1,525,429 SGB % 8,391,218 1,438,070 SGB % 8,097,133 1,387,670 SGB % 6,489,470 1,112,152 SGB % 6,469,864 1,108,792 SGB % 5,764, ,833 SGB % 2,901, ,276 SGB % 1,254, ,038 Stadshypotek % 9,018,599 1,545,589 Stadshypotek % 7,548,175 1,293,591 Stadshypotek % 6,469,864 1,108,792 Stadshypotek % 6,136,568 1,051,673 Stadshypotek % 2,019, ,078 Spintab % 6,960,006 1,192,792 Spintab % 6,156,174 1,055,032 Spintab % 4,568, ,874 Spintab % 4,038, ,155 Spintab % 3,607, ,236 NB HYP % 7,881,471 1,350,710 NB HYP % 7,312,907 1,253,271 NB HYP % 4,901, ,994 NB HYP % 3,607, ,236 SEB Bolån % 6,058,146 1,038,233 SEB Bolån % 5,489, ,793 SEB Bolån % 5,430, ,713 SEB Bolån % 4,470, ,075 SCBC % 1,999, ,718 SCBC % 1,980, ,358 SCBC % 1,901, ,918 SCBC % 1,764, ,398 SCBC % 1,588, ,158 SCBC % 725, ,319 Kommuninvest % 3,293, ,476 Kommuninvest % 2,293, ,117 Kommuninvest % 1,450, ,638 Kommuninvest % 960, ,639 Kommuninvest % 470,536 80,639 51

53 Notes to the Financial Statements (continued) Note 5 SWAPS (continued) Handelsbanken Sweden All Bond Underlying Asset Weight Sweden All Bond 1 Sweden All Bond 2 LANSHYP % 2,372, ,557 LANSHYP % 1,823, ,478 LANSHYP % 1,372, ,198 LANSHYP % 823, ,119 LANSHYP % 490,141 83,999 Value as at 31 December 2013 in SEK 196,056,494 33,599,761 As at 31 December 2013, the XACT Hang Seng China sub-fund had the following outstanding Fully Funded Swap: Currency Market Value Quantity Underlying Asset Maturity Date Unrealised Gain/(Loss) in EUR EUR 4,607,894 4,588 Hang Seng China Enterprises Index (HSCEI) Future January /01/2014 (116,680) Total (116,680) Note 6 CHANGES IN INVESTMENT PORTFOLIO The schedule of changes in the investment portfolio is available upon request from the Registered Office of the Fund. Note 7 TRANSACTION COSTS Transactions costs are costs incurred to acquire financial assets or liabilities. They include the bid-ask spread, fees and commissions paid to agents, advisers, brokers and dealers. There are no such transaction costs due to the nature of the investments held by the sub-funds. 13 Please refer to: the Index is calculated in HKD but has been converted into EUR for presentation purposes of the Market Value in these financial statements. 52