OPTIMUM INVESTMENT FUNDS

Transcription

1 Semi-Annual Report as of December 31, 2017 Société d Investissement à Capital Variable R.C.S. Luxembourg B Administrative Agent:

2 Table of Contents Organisation 3 Report of the Board of Directors 4 Derivative Exposure 4 Risk Management 4 Remuneration Policy of the Management Company 5 Fund Structure 6 Statement of Net Assets 7-9 Derivatives 10 Management Fees 11 Statistical Information 12 Notes to the Financial Statements

3 Organisation Company Depositary Bank, Paying Agent, Registrar and Transfer Agent OPTIMUM INVESTMENT FUNDS R.C.S. Lux B , rue de Flaxweiler, L Grevenmacher BROWN BROTHERS HARRIMAN (Luxembourg) S.C.A. 80, route d'esch, L Luxembourg Distributor Directors of the Company Chairman of the Board of Directors Optimum ASA, Bergen Chr Michelsens Gate 2a, NO Bergen Peter Tommerup Senior Manager at Universal-Investment-Luxembourg S.A. Portfolio Manager Members of the Board Rolf Tore Spjelkavik Vice President of Optimum ASA, Bergen Franklin Templeton Investment Management Limited The Adelphi 1-11 John Adam Street, London WC2N 6HT, United Kingdom Armin Clemens Head of Portfolio Management at Universal-Investment-Luxembourg S.A. Management Company, Domiciliary and Corporate Agent Réviseur d Entreprises agréé KPMG Luxembourg, Société coopérative Cabinet de révision agréé 39, avenue John F. Kennedy, L Luxembourg Universal-Investment-Luxembourg S.A. R.C.S. Lux B , rue de Flaxweiler, L Grevenmacher 3

4 Report of the Board of Directors Dear Shareholders, With this report, we would like to give you an overview of the general economic environment and the performance of the OPTIMUM INVESTMENT FUNDS and its respective sub-fund Optimum Balanced Fund. OPTIMUM INVESTMENT FUNDS is organised in Luxembourg as a société d investissement à capital variable ("SICAV") and qualifies as a collective investment undertaking under Part I of the Luxembourg law of December 17, The Company was established on November 7, 2014 for an indefinite duration. OPTIMUM INVESTMENT FUNDS has the structure of an umbrella fund. The reference currency is the Norwegian Krone (NOK). As at December 31, 2017, the net asset value and the performance of the share price of the sub-fund during the reporting period were as follows: Sub-fund ISIN Net asset value of the share class in NOK Performance of the share price in % Optimum Balanced Fund LU ,907, Derivative Exposure The table below shows the derivative exposure as per December 31, 2017: Sub-fund Derivative exposure in % Optimum Balanced Fund Risk Management The global risk on derivatives has been determined according to the commitment approach during the reporting period from July 1, 2017 until December 31, The sum of these underlying equivalents must not exceed the net asset value of the fund. 4

5 Remuneration Policy of the Management Company The fees of the employees are specified as follows (as of September 30, 2017): Total of paid remuneration 4.20 Mio. EUR - thereof fixed fee 3.89 Mio. EUR - thereof variable fee 0.31 Mio. EUR Number of employees Amount of paid carried Interest FTE n/a Total of paid fee to Risktaker 1.16 Mio. EUR - thereof Executive Managers 1.07 Mio. EUR - thereof other Risktaker 0.09 Mio. EUR The remuneration policy is compliant with the requirements of the Management Company. Details with regard to the remuneration system of the Management Company are availabe on the website of Universal-Investment-Gesellschaft mbh ( and in the Prospectus. There were no changes in the remuneration system during the reporting period compared to the prior period. 5

6 Optimum Balanced Fund As the Company has only one active compartment as at December 31, 2017 and as the reference currency of the sole compartment is NOK, the accounts of the Company are the same as the accounts of the sole compartment. Fund structure as at 31/12/2017 Investment Focus Market Value in NOK % of fund assets *) I. Assets 112,679, Bonds 17,474, Investment funds 91,063, Derivatives 588, Bank balances 3,228, Other Assets 324, II. Liabilities -771, III. Fund Assets 111,907, *) There might be differences due to rounding. The accompanying notes form an integral part of the semi-annual report. 6

7 Optimum Balanced Fund Statement of Net Assets as at 31/12/2017 Description ISIN Shares / Holdings Currency Price Market Value % % in /12/2017 in NOK of the Fundassets *) Portfolio holdings NOK 108,537, Exchange-traded securities NOK 16,142, Interest-bearing securities NOK 16,142, ,5000 % Australia, Commonwealth of... AD-Loan 2009(20) Ser. 126 AU3TB % 193 AUD ,302, ,2500 % Australia, Commonwealth of... AD-Loans 2014(26) AU000XCLWAI8 % 200 AUD ,438, ,5000 % Norwegen, Königreich NK-Anl. 2008(19) NO % 684 NOK , ,7500 % Norwegen, Königreich NK-Anl. 2010(21) NO % 662 NOK , ,0000 % Norwegen, Königreich NK-Anl. 2012(23) NO % 728 NOK , ,0000 % Norwegen, Königreich NK-Anl. 2014(24) NO % 754 NOK , ,7500 % Norwegen, Königreich NK-Anl. 2015(25) NO % 247 NOK , ,5000 % Norwegen, Königreich NK-Anl. 2016(26) NO % 668 NOK , ,0000 % New Zealand, Government of... ND-Bonds 2010(19) NZGOVDT319C0 % 305 NZD ,841, ,3750 % United States of America DL-Bonds 1997(27) US912810FA17 % 692 USD ,601, Securities admitted to or included in organised markets NOK 1,332, Interest-bearing securities NOK 1,332, ,5000 % New Zealand, Government of... ND-Bonds 2014(27) NZGOVDT427C1 % 200 NZD ,332, Investment units NOK 91,063, db x-tr.nikkei 225 U.ETF (DR) Inhaber-Anteile 1D o.n. LU Shares 13,588 EUR ,317, Frank.Temp.I.Fds-Fr.Europ.Div. Namens-Anteile I Acc. EUR o.n. LU Shares 20,488 EUR ,675, FTIF-F.European Corporate Bond Namens-Ant. I (acc.) EUR o.n. LU Shares 6,182 EUR , Invesco Pan Europ.Structur.Eq. Act. Nom. C o.n. LU Shares 30,177 EUR ,216, UBS-ETF-UBS-ETF MSCI EMU SC.UE Inhaber-Anteile (EUR) A-dis on LU Shares 3,807 EUR ,829, DNB Kredittobligasjon Registered Units o.n. NO Shares 5,468 NOK 1, ,954, Pareto Investment Fund Registered Units C o.n. NO Shares 524 NOK 18, ,941, Concept-db-x-t.MSCI UI ETF(DR) Registered Shares 1C o.n. IE00BJ0KDR00 Shares 13,153 USD ,675, F.T.I.F.-Franklin GCC Bond Fd Namens-Anteile I Acc. USD o.n. LU Shares 16,858 USD ,812, Fr.Temp.Inv.Fds-F.U.S.Governm. Namens-Ant. I USD (acc.) o.n. LU Shares 34,427 USD ,924, The accompanying notes form an integral part of the semi-annual report. 7

8 Optimum Balanced Fund Statement of Net Assets as at 31/12/2017 Description ISIN Shares / Holdings Currency Price Market Value % % in /12/2017 in NOK of the Fundassets *) Fr.Temp.Inv.Fds-F.U.S.Oppor.Fd Namens-Anteile I (acc.) o.n. LU Shares 20,306 USD ,405, Fr.Temp.Inv.Fds-Fr.Stra.Inc.FD Namens-Ant. I Cap.(USD) o.n. LU Shares 35,565 USD ,703, Fr.Temp.Inv.Fds-T.Asian Sm.Cos Namens-Ant. I (acc.) USD o.n. LU Shares 7,549 USD ,406, Fr.Temp.Inv.Fds-T.Em.Mkt.BdFd Namens-Anteile I (acc.) o.n. LU Shares 7,885 USD ,790, Frank.Temp.IF-Fr.K2 L.S.Cr.Fd Namens-Anteile I Acc. USD o.n. LU Shares 27,808 USD ,387, ishs VII-Core S&P 500 U.ETF Reg. Shares USD (Acc) o.n. IE00B5BMR087 Shares 7,489 USD ,893, ishs VII-MSCI EM Asia U.ETF Reg. Shares USD (Acc) o.n. IE00B5L8K969 Shares 3,686 USD ,751, Man Funds-M.GLG Jap.CoreAl.Eq. Reg. Shares I USD o.n. IE00B3QXQG18 Shares 2,593 USD ,537, Robeco High Yield Bonds Act. Nom. Class IH DL o.n. LU Shares 894 USD ,999, Total securities NOK 108,537, Derivatives NOK 588, Bank balances, non-securitised money market instruments and money market funds NOK 3,228, Bank balances NOK 3,228, Balances with Brown Brothers Harriman Trust Co. [Cayman] Ltd. deposits callable prior to maturity 6.82 AUD JPY , NOK 675, NZD USD Balances with Brown Brothers Harriman (Luxembourg) S.C.A. deposits callable prior to maturity 260, EUR 2,553, Other Assets NOK 324, Interest receivables 265, NOK 265, Incorporation cost, net 58, NOK 58, The accompanying notes form an integral part of the semi-annual report. 8

9 Optimum Balanced Fund Statement of Net Assets as at 31/12/2017 Description ISIN Shares / Holdings Currency Price Market Value % % in /12/2017 in NOK of the Fundassets *) Liabilities NOK -771, Management fee payable -423, NOK -423, Depositary Bank fee payable -10, NOK -10, Custody service expenses -19, NOK -19, Audit fee payable -39, NOK -39, Taxe d'abonnement -8, NOK -8, Other payables -269, NOK -269, Total net assets NOK 111,907, Optimum Balanced Fund Net Asset Value per share NOK 1, Redemption price NOK 1, Subscription price NOK 1, Number of shares in circulation Shares 94, *) There might be differences due to rounding. The accompanying notes form an integral part of the semi-annual report. 9

10 Optimum Balanced Fund Derivatives as at 31/12/2017 Statement of Forward Transactions as of December 31, 2017 Ccy Amount Ccy Amount Commitment Maturity Unrealised Counterparty in NOK Profit/ Loss in NOK Sell AUD -411, Buy NOK 2,582, ,629, /12/ , JP Morgan Securities plc (OTC) London Sell JPY -77,900, Buy NOK 5,761, ,656, /12/ , Barclays Bank PLC London Sell NZD -518, Buy NOK 2,988, ,013, /12/ , JP Morgan Securities plc (OTC) London Sell USD -2,910, Buy NOK 24,308, ,798, /12/ , JP Morgan Securities plc (OTC) London Total Forward Transactions 588, Total Derivatives 588, The accompanying notes form an integral part of the semi-annual report. 10

11 Optimum Balanced Fund Management Fees as at 31/12/2017 Investment units ISIN Management Fees in % Issuing Premiums Management Fees Concept-db-x-t.MSCI UI ETF(DR) Registered Shares 1C o.n. LU ohne db x-tr.nikkei 225 U.ETF (DR) Inhaber-Anteile 1D o.n. LU ohne DNB Kredittobligasjon Registered Units o.n. LU ohne F.T.I.F.-Franklin GCC Bond Fd Namens-Anteile I Acc. USD o.n. LU ohne Fr.Temp.Inv.Fds-F.U.S.Governm. Namens-Ant. I USD (acc.) o.n. LU ohne Fr.Temp.Inv.Fds-F.U.S.Oppor.Fd Namens-Anteile I (acc.) o.n. NO ohne Fr.Temp.Inv.Fds-Fr.Stra.Inc.FD Namens-Ant. I Cap.(USD) o.n. NO ohne Fr.Temp.Inv.Fds-T.Asian Sm.Cos Namens-Ant. I (acc.) USD o.n. IE00BJ0KDR ohne Fr.Temp.Inv.Fds-T.Em.Mkt.BdFd Namens-Anteile I (acc.) o.n. LU ohne Frank.Temp.I.Fds-Fr.Europ.Div. Namens-Anteile I Acc. EUR o.n. LU ohne Frank.Temp.IF-Fr.K2 L.S.Cr.Fd Namens-Anteile I Acc. USD o.n. LU ohne FTIF-F.European Corporate Bond Namens-Ant. I (acc.) EUR o.n. LU ohne Invesco Pan Europ.Structur.Eq. Act. Nom. C o.n. LU ohne ishs VII-Core S&P 500 U.ETF Reg. Shares USD (Acc) o.n. LU ohne ishs VII-MSCI EM Asia U.ETF Reg. Shares USD (Acc) o.n. LU ohne Man Funds-M.GLG Jap.CoreAl.Eq. Reg. Shares I USD o.n. IE00B5BMR ohne Pareto Investment Fund Registered Units C o.n. IE00B5L8K ohne Robeco High Yield Bonds Act. Nom. Class IH DL o.n. IE00B3QXQG ohne UBS-ETF-UBS-ETF MSCI EMU SC.UE Inhaber-Anteile (EUR) A-dis on LU ohne The accompanying notes form an integral part of the semi-annual report. 11

12 Optimum Balanced Fund Statistical information Financial year Shares in circulation at Total net assets at Net Asset Value per share at end of the financial year end of the financial year end of the financial year 2014/2015 *) Shares 523, NOK 558,245, NOK 1, /2016 Shares 697, NOK 744,335, NOK 1, /2017 Shares 395, NOK 447,489, NOK 1, /12/2017 Shares 94, NOK 111,907, NOK 1, *) Inception: 07/11/2014 Changes in the number of shares outstanding Shares Number of shares outstanding at the beginning of the period 395, Number of shares issued Number of shares redeemed -301, Number of shares outstanding at the end of the period 94, The accompanying notes form an integral part of the semi-annual report. 12

13 Notes to the Financial Statements General OPTIMUM INVESTMENT FUNDS (the "Company") is organised in Luxembourg as a société d investissement à capital variable ("SICAV") and qualifies as a collective investment undertaking under Part I of the Luxembourg law of December 17, The Company qualifies as an undertaking for collective investment in transferable securities under article 1(2) of the Directive 2009/65/EC and is presently structured as an umbrella fund. The Company has been established for an indefinite term. Significant accounting policies The reference currency of the Company is the Norwegian Krone (NOK). The net asset value per sub-fund, net asset value per share, net asset value per class, the redemption price of shares and the issue price of shares shall be determined on each valuation date, at least twice a month. The valuation dates for each sub-fund are indicated in the relevant appendix of the fund's prospectus. The net asset value of each sub-fund and the net asset value of the relevant class shall be expressed in the currency of each sub-fund as described in the relevant appendix of the fund's prospectus. Whilst the reporting currency of the Company is the Euro, the net asset value is made available in the currency of each sub-fund as described in the relevant appendix of the fund's prospectus. The net asset value shall be determined on each valuation date separately for each share of each subfund and for each class dividing the total net asset value of the relevant sub-fund and of the relevant class by the number of outstanding shares of such sub-fund and of the relevant class. The net asset value shall be determined by subtracting the total liabilities of the sub-fund or class from the total assets of such sub-fund or class in accordance with the principles laid down in the Company s articles of incorporation and in such further valuation regulations as may be adopted from time to time by the Board of Directors. Investments shall be valued as follows: 1) The value of any cash in hand or on deposit, discount notes, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued and not yet received shall be deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof shall be arrived at after making such provision as the Company may consider appropriate in such case to reflect the true value thereof. 2) 3) 4) 5) 6) 7) The value of all securities which are listed on an official stock exchange is determined on the basis of the last available prices. If there is more than one stock exchange on which the securities are listed, the Board of Directors may in its discretion select the stock exchange which shall be the principal stock exchange for such purposes. Securities traded on a regulated market are valued in the same manner as listed securities. Securities which are not listed on an official stock exchange or traded on a regulated market shall be valued by the Company in accordance with valuation principles decided by the Board of Directors, at a price no lower than the bid price and no higher than the ask price on the relevant valuation date. Derivatives and repurchase agreements which are not listed on an official stock exchange or traded on a regulated market shall be valued by the Company in accordance with valuation principles decided by the Directors on the basis of their marked-to-market price. Term deposits shall be valued at their present value. Traded options and futures contracts to which the Company is a party which are traded on a stock, financial futures or other exchange shall be valued by reference to the profit or loss which would arise on closing out the relevant contract at or immediately before the close of the relevant market. 13

14 Notes to the Financial Statements All securities or other assets for which the valuation in accordance with the above sub-paragraphs would not be possible or practicable, or would not be representative of their fair realisation value, will be valued at their fair realisation value as determined in good faith and prudently pursuant to the procedures established by the Board of Directors. Amounts determined in accordance with such valuation principles shall be translated into the currency of the sub-fund s accounts at the respective exchange rates, using the relevant rates quoted by a bank or another first class financial institution. The liabilities of the Company shall be deemed to include: 1) 2) 3) 4) 5) all borrowings, bills and other amounts due; all administrative expenses due or accrued including (but not limited to) the costs of its constitution and registration with regulatory authorities, as well as legal and audit fees and expenses, the costs of legal publications, the cost of listing, prospectus, financial reports and other documents made available to shareholders, translation expenses and generally any other expenses arising from the administration of the Company; all known liabilities, due or not yet due including all matured contractual obligations for payments of money or property, including the amount of all dividends declared by the Company which remain unpaid until the day these dividends revert to the Company by prescription; any appropriate amount set aside for taxes due on the date of the valuation of the net asset value and any other provision of reserves authorised and approved by the Board; and any other liabilities of the Company of whatever kind towards third parties. For the purposes of valuation of its liabilities, the Company may duly take into account all ongoing or periodic administrative and other expenses by valuing them for the entire year or any other period and by dividing the amount concerned proportionately for the relevant fractions of such period. Amounts determined in accordance with such valuation principles shall be translated into the currency of the sub-fund s accounts at the respective exchange rates, using the relevant rates quoted by a bank or another first class financial institution. Foreign exchange rate As of December 31, 2017, positions denominated in foreign currencies were valuated at the following exchange rates: NOK - AUD NOK - EUR NOK - JPY NOK - NZD NOK - USD Management Company fee The Management Company receives remuneration in the amount of up to 1.50% p.a. of the net asset value of the sub-fund, minimum up to EUR 50, p.a., currently not subject to Luxembourg VAT. The remuneration of the Management Company shall be calculated on each valuation day and paid to the Management Company monthly. The Management Company can accept a lower fee or waive the fee. 14

15 Notes to the Financial Statements Portfolio Manager fee The Portfolio Manager receives remuneration in the amount of up to 0.30% p.a. of the net asset value of the sub-fund. The remuneration of the Portfolio Manager shall be calculated and paid to the Portfolio Manager on a quarterly basis retroactively on the daily average net sub-fund assets. The Portfolio Manager fee will be paid out of the Management Company and Administration fee. The Portfolio Manager can accept a lower fee or waive the fee. Domiciliary and Corporate Agency Services fee, Registrar and Transfer Agency fee The Domiciliary Agent receives remuneration in the amount of EUR 6, p.a. The Corporate Agency Services fee amounts to EUR 12, p.a. The Transfer Agent is entitled to a minimum fee up to EUR 24, p.a. Any additional services, including collection of data elements and compilation into Board Packs, will be subject to negotiation; in addition, like the aforementioned, any further external costs will be charged on top (and be borne by the fund). The remuneration is payable monthly on a pro rata basis. Transaction costs will be charged to the sub-fund assets separately. Depositary Bank fee and Paying Agency fee The Depositary Bank is entitled to receive out of the assets of the Company a fee calculated in accordance with customary banking practice in Luxembourg and as detailed for each sub-fund in the appendix of the fund's prospectus. In addition, the Depositary bank is entitled to be reimbursed out of the assets of the relevant sub-fund for its reasonable out-of-pocket expenses and disbursements and for the charges of any correspondents. The Depositary Bank receives remuneration in the amount of up to 0.07% p.a. of the net asset value of the sub-fund, minimum up to EUR 24, p.a. plus Luxembourg VAT; depending on the transaction amount the fee can also be higher. Subscription tax ("taxe d abonnement") The Company is subject to an annual tax of 0.05% p.a. (0.01% p.a. for the institutional share classes) of the net asset value as valued at the end of each quarter, and which is payable quarterly. To the extent that parts of the company s assets are invested in other Luxembourg UCITS which are subject to the tax, such parts are not taxed. Transaction cost The following transaction cost which is limited to brokerage commission occurred during the corresponding period: Sub-fund Optimum Balanced Fund Reporting period July 1, 2017 until December 31, 2017 Transaction cost in NOK 377,

16 Notes to the Financial Statements Changes in Portfolio Composition Details of purchases and sales of investments are available free of charge from the registered office of the Company. Disclosures according to Regulation (EU) 2015/2365 of the European Parliament and of the Council of November 25, 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/ Disclosure as per Section A During the reporting period no securities financing transactions and total return swaps as defined in the above mentioned regulation occurred. 16