Statutory Auditor's Report on the Annual Financial Statements

Transcription

1 FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF (formerly EASYETF FTSE ENVIRONMENTAL OPPORTUNITIES 100) Fonds Commun de Placement (FCP - French mutual fund) Management Company: THEAM 1, boulevard Haussmann Paris Statutory Auditor's Report on the Annual Financial Statements Financial year ended 30 September 2014

2 FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF (formerly EASYETF FTSE ENVIRONMENT AL OPPORTUNITIES 100) Fonds Commun de Placement (FCP - French mutual fund) Management Company: THEAM 1, boulevard Haussmann Paris Deloitte Accounting Services 185, avenue Charles de Gaulle Neuilly-sur-Seine Cedex France Telephone: + 33 (0) Fax: + 33 (0) STATUTORY AUDITOR'S REPORT ON THE ANNUAL FINANCIAL STATEMENTS Financial year ended 30 September 2014 Following our appointment by the management company, we hereby present our report for the financial year ended 30 September 2014 relative to: - the audit of the annual financial statements of the FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF (formerly EASYETF FTSE ENVIRONMENTAL OPPORTUNITIES 100) FCP, expressed in euro, which are attached to this report; - the justification of our evaluations; - the specific verifications and information required by law. The annual financial statements were prepared by the management company. Our role is to express an opinion on these annual financial statements based on our audit. 1. OPINION ON THE ANNUAL FINANCIAL STATEMENTS We have conducted an audit in accordance with the professional standards applicable in France; these standards require that we use procedures to obtain reasonable assurance that the annual financial statements are free of material misstatement. An audit consists in examining, on a test basis or using other selection methods, the evidence supporting the amounts and disclosures contained in the annual financial statements. It also consists in assessing the accounting principles used and the significant estimates made, as well as in evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the annual financial statements, in accordance with French accounting rules and principles, give a true and fair view of the financial position and assets and liabilities of the Fund and of the results of its operations at the end of the financial year. A société anonyme (public limited company) with share capital of EUR 1,723,040 Chartered accountants registered with the Tableau de l'ordre du Conseil Régional de Paris, Ile de France Statutory Auditors and a member of the Compagnie Régionale de Versailles RCS Nanterre VAT: FR Member of Deloitte Touche Tohmatsu Limited

3 FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF (formerly EASYETF FTSE ENVIRONMENTAL OPPORTUNITIES 100) 2/2 2. JUSTIFICATION OF EVALUATIONS In accordance with article L of the French Commercial Code regarding the justification of our evaluations, we hereby inform you that our evaluations were, inter alia, focused on compliance with the accounting principles and methods applicable to UCITS. The evaluations were made in the context of our audit of the annual financial statements, taken as a whole, and therefore contributed to the formation of the opinion expressed in the first part of this report. 3. SPECIFIC VERIFICATIONS AND DISCLOSURES We have also carried out the specific verifications required by law in accordance with the professional auditing standards applicable in France. We have no comment as to the fair presentation and conformity with the annual financial statements of the information given in the management report of the management company and in the documents sent to unitholders with respect to the financial position and annual financial statements. Neuilly-sur-Seine, 15 January 2015 The Statutory Auditor Deloitte & Associés Stéphane COLLAS

4 Annual financial statements Balance sheet Assets 30/09/ /09/2013 Net fixed assets - - Deposits - - Financial instruments 9,740, ,887, Equities and similar securities 9,116, ,632, Traded on a regulated or similar market 9,116, ,632, Not traded on a regulated or similar market - - Bonds and similar securities - - Traded on a regulated or similar market - - Not traded on a regulated or similar market - - Debt securities - - Traded on a regulated or similar market - Transferable debt securities - - Traded on a regulated or similar market - Other debt securities - - Not traded on a regulated or similar market - - Units of undertakings for collective investment - 187, Coordinated European UCITS and standard French UCITS - 187, UCITS reserved for specific investors - FCPR (French venture capital funds) - FCIMT (French futures funds) - - Listed FCCs (securitisation funds) and investment funds - - Unlisted FCCs (securitisation funds) and investment funds - - Temporary transactions on securities - - Receivables on securities received under a repurchase agreement (pension) - - Receivables on securities lent - - Securities borrowed - - Securities transferred under a repurchase agreement (pension) - - Other temporary transactions - - Forward financial instruments 624, , Transactions on a regulated or similar market - - Other transactions 624, , Other financial instruments - - Receivables Currency forwards Other Financial accounts 153, , Cash 153, , TOTAL ASSETS 9,894, ,199, FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

5 Annual financial statements Balance sheet Liabilities 30/09/ /09/2013 Equity capital Share capital 8,104, ,040, Previous net capital gains and losses not distributed (a) - - Retained earnings (a) - - Net capital gains and losses for the financial year (a,b) 1,164, ,007, Profit/(loss) for the financial year (a,b) 6, , Total equity capital 9,276, ,041, (= Amount corresponding to the net assets) Financial instruments 615, , Sales of financial instruments - - Temporary transactions on securities - - Payables on securities transferred under a repurchase agreement (pension) - - Payables on securities borrowed - - Other temporary transactions - - Forward financial instruments 615, , Transactions on a regulated or similar market - - Other transactions 615, , Payables 2, , Currency forwards - - Other 2, , Financial accounts - - Short-term bank loans - - Borrowings - - TOTAL LIABILITIES 9,894, ,199, (a) Including accruals accounts (b) Less interim dividends paid for the financial year FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

6 Annual financial statements Off-balance sheet items 30/09/ /09/2013 HEDGING TRANSACTIONS Commitments on regulated or similar markets OTC commitments Equity swaps EQSH2J01-8,194, EQSI7206 8,500, Other commitments OTHER TRANSACTIONS Commitments on regulated or similar markets - - OTC commitments Equity swaps EQSH7103-7,700, EQSI2K01 8,680, Other commitments FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

7 Annual financial statements Income statement 30/09/ /09/2013 Income from financial transactions Income from equities and similar securities 73, , Income from bonds and similar securities - - Income from debt securities - - Income from temporary purchases and sales of securities - - Income from forward financial instruments 8, Income from deposits and financial accounts Other financial income - - Total I 81, , Payables on financial transactions Payables on temporary purchases and sales of securities - - Payables on forward financial instruments -35, , Payables on financial debts Other payables - - Total II -35, , Profit/(loss) on financial transactions (I+II) 46, , Other income (III) - - Management fees and depreciation allowance (IV) -38, , Net profit/(loss) for the financial year (I+II+III+IV) 7, , Income equalisation for the year (V) , Interim dividends paid for the financial year (VI) - - Profit/(loss) (I+II+III+IV+V+VI) 6, , FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

8 Accounting methods and rules The undertaking complies with Accounting Regulatory Committee (CRC) regulation no of 2 October The accounting currency is the euro. All the transferable securities comprising the portfolio are recorded using the historical cost method, excluding fees. Securities and financial futures and options held in the portfolio denominated in foreign currencies are converted into the accounting currency on the basis of exchange rates observed in Paris on the valuation day. The portfolio is valued at the time of each net asset value and when the accounts are closed, using the following methods: Transferable securities - listed securities: at the market value - including accrued interest (closing price). However, transferable securities whose prices have not been determined on the valuation day or quoted by contributors and whose prices have been adjusted, as well as securities that are not admitted for trading on a regulated market, are valued under the Management Company s responsibility (or that of the Board of Directors for a SICAV) at their foreseeable sale prices. Prices are adjusted by the Management Company on the basis of its knowledge of the issuers and/or markets. - undertakings for collective investment: at the last-known net asset value, failing which at the last estimated value. The net asset values of securities of foreign undertakings for collective investment valued on a monthly basis are confirmed by the fund administrators. Valuations are updated weekly on the basis of estimates provided by the administrators of these undertakings for collective investment and validated by the fund manager. - debt securities and similar transferable securities that are not traded in high volumes are valued by applying an actuarial method, the rate used being that applicable to the issuance of similar securities to which is added, where appropriate, a spread consistent with the intrinsic characteristics of the issuer. In the absence of sensitivity, securities with a residual maturity of three months are valued at the most recent rate until they mature; for those with maturities of less than three months, interest is calculated on a straight-line basis - temporary purchases and sales of securities:. securities lending: the claim represented by loaned securities is valued at the market value of the said securities.. securities borrowing: securities borrowed as well as the claim represented by such securities are valued at their market value. Financial futures and options FUTURES: daily settlement price. Off-balance sheet valuations are calculated on the basis of the nominal amount, the settlement price and, where appropriate, the exchange rate. OPTIONS: closing price of the day or, if unavailable, the last known price. Structured swaps (swaps with an option-related component): these swaps are valued at their market value, on the basis of prices communicated by the counterparties. These valuations are checked by the Management Company. Off-balance sheet commitments relating to these swaps correspond to the nominal amount. Management fees - Maximum 0.45% inclusive of tax for Classic EUR units. - Maximum 0.45% inclusive of tax for C USD units. FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

9 Accounting methods and rules The allowance is calculated on the basis of net assets. These fees, which do not include transaction costs, are recorded directly in the Fund s income statement. These fees cover all the costs invoiced directly to the UCITS, except transaction costs. Transaction costs include intermediary fees (brokerage, stock market taxes, etc.) as well as transaction fees, if any, that may be charged by the depositary and the Management Company, in particular. Indirect management fees None for Classic EUR and C USD units. Performance fees: None for Classic EUR and C USD units. Refund of management fees None Method for recording interest Interest received method Dividend policy Accumulation for Classic EUR and C USD units. Allocation of net capital gains realised: Accumulation for Classic EUR and C USD units. Changes concerning the Fund during the year: None FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

10 Annual financial statements - Notes Change in net assets 30/09/ /09/2013 Net assets at the beginning of the financial year 8,041, ,516, Subscriptions (including subscription fees paid to the Fund) 1,034, ,531, Redemptions (after deduction of fees paid to the Fund) -963, ,199, Gains realised on deposits and financial instruments 1,049, , Losses realised on deposits and financial instruments -225, , Gains realised on forward financial instruments 1,277, ,639, Losses realised on forward financial instruments -969, ,919, Transaction costs - - Foreign exchange differences Changes in the valuation differential of deposits and financial instruments -72, , Valuation differential for the financial year N 679, , Valuation differential for the financial year N-1-751, , Changes in the valuation differential of forward financial instruments 96, , Valuation differential for the financial year N 8, , Valuation differential for the financial year N-1 87, , Dividend for the previous financial year on net capital gains and losses - - Dividend paid in the previous financial year on profit/(loss) - - Net profit/(loss) for the financial year excluding the income equalisation account 7, , Interim dividend(s) paid during the financial year on net capital gains or losses - - Interim dividend(s) paid during the financial year paid on profit/(loss) - - Other items - - Net assets at the end of the financial year 9,276, ,041, FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

11 Annual financial statements - Notes Additional information 1 30/09/2014 Commitments received or given Commitments received or given (capital guarantee or other commitments) (*) - Current value of financial instruments held in the portfolio used as guarantees None Financial instruments received as a guarantee and not recorded on the balance sheet - Financial instruments given as a guarantee and kept as original entry - Financial instruments issued by the service provider or entities belonging to its group held in the portfolio Deposits - Equities - Interest rate securities - UCITS - Temporary purchases and sales of securities - Swaps (in nominal) 17,180, Current value of financial instruments subject to a temporary purchase transaction None Securities purchased à réméré (with option of repurchase) - Securities received under a repurchase agreement - Securities borrowed - (*) For guaranteed funds, the information is provided in the accounting methods and rules FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

12 Annual financial statements - Notes Additional information 2 30/09/2014 Subscriptions and redemptions during the accounting year Number of securities Class C (Currency: USD) Number of units subscribed - Number of units redeemed - CLASSIC Class (Currency: EUR) Number of units subscribed 6,500 Number of units redeemed 6,000 Subscription and/or redemption fees Amount (EUR) Subscription fees payable to the fund - Redemption fees payable to the fund - Subscription fees received and shared - Redemption fees received and shared - Management fees Amount (EUR) % of average net assets Class C (Currency: USD) Management and administration fees (*) Performance fees - - Other fees - - CLASSIC Class (Currency: EUR) Management and administration fees (*) 38, Performance fees - - Other fees - - Refund of management fees (all units taken together) - - (*) For UCITS with a financial year that is shorter or longer than 12 months, the percentage of the average net assets corresponds to the annualised average rate. FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

13 Annual financial statements - Notes Breakdown by type of receivables and payables 30/09/2014 Breakdown by type of claims None Deposits in euro - Deposits in other currencies - Cash collateral - Valuation of forward currency purchases - Counter-value of forward sales - Other sundry debtors - Receivable interest - TOTAL CLAIMS - Breakdown by type of debts Deposits in euro - Deposits in other currencies - Cash collateral - Provision for interest expense - Valuation of forward currency sales - Counter-value of forward purchases - Fees and charges not yet paid 2, Other sundry creditors - Provisions for market liquidity risk - TOTAL DEBTS 2, FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

14 Annual financial statements - Notes Breakdown by the legal or economic structure of the instrument 30/09/2014 Assets None Bonds and similar securities - Indexed bonds - Convertible bonds - Participation certificates - Other bonds and similar securities - Debt securities - Traded on a regulated market - Treasury bonds - Other transferable debt securities - Other debt securities - Not traded on a regulated market - Liabilities None Sales of financial instruments - Equities - Bonds - Other - Off-balance sheet items Hedging transactions Interest rates - Equities 8,500, Other - Other transactions Interest rates - Equities 8,680, Other - FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

15 Annual financial statements - Notes Breakdown by type of interest rate for assets, liabilities and off-balance sheet items Fixed interest rate Floating interest rate Revisable interest rate Other Assets None None None Deposits Bonds and similar securities Debt securities Temporary transactions on securities Financial accounts , Liabilities None None None None Temporary transactions on securities Financial accounts Off-balance sheet items None None None None Hedging transactions Other transactions FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

16 Annual financial statements - Notes Breakdown by residual maturity [0-3 months] ]3 months - 1 year] ]1-3 years] ]3-5 years] > 5 years Assets None None None None Deposits Bonds and similar securities Debt securities Temporary transactions on securities Financial accounts 153, Liabilities None None None None None Temporary transactions on securities Financial accounts Off-balance sheet items None None None None None Hedging transactions Other transactions FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

17 Annual financial statements - Notes Breakdown by listing currency USD Assets Deposits Equities and similar securities Bonds and similar securities Debt securities Units of UCIs Temporary transactions on securities Other financial instruments Receivables Financial accounts Liabilities None Sales of financial instruments Temporary transactions on securities Payables Financial accounts Off-balance sheet items None Hedging transactions Other transactions Only the five currencies that are the most representative of net assets are included in this table FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

18 Annual financial statements - Notes Dividend policy Class: C Table of allocation of distributable income 30/09/ /09/2013 Amounts to be allocated Retained earnings Profit/(loss) TOTAL Allocation Dividend payments Retained earnings for the financial year Accumulation TOTAL Information on securities eligible to receive dividends Number of securities Dividend per unit Tax credits linked to dividend payments Total tax credits linked to dividend payments: for the financial year for financial year N-1 for financial year N-2 for financial year N-3 for financial year N-4 FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

19 Table of allocation of distributable income relating to net capital gains or losses 30/09/ /09/2014 Amounts to be allocated Previous net capital gains and losses not distributed Net capital gains and losses for the financial year 9, , Interim dividends paid on net capital gains and losses for the financial year TOTAL 9, , Allocation Dividend payments Net capital gains and losses not distributed Accumulation 9, , TOTAL 9, , Information on securities eligible to receive dividends Number of securities Dividend per unit FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

20 Class: CLASSIC Table of allocation of distributable income 30/09/ /09/2013 Amounts to be allocated Retained earnings Profit/(loss) 6, , TOTAL 6, , Allocation Dividend payments Retained earnings for the financial year Accumulation 6, , TOTAL 6, , Information on securities eligible to receive dividends Number of securities Dividend per unit Tax credits linked to dividend payments Total tax credits linked to dividend payments: for the financial year for financial year N-1 for financial year N-2 for financial year N-3 for financial year N-4 Table of allocation of distributable income relating to net capital gains or losses 30/09/ /09/2013 Amounts to be allocated Previous net capital gains and losses not distributed Net capital gains and losses for the financial year 1,155, ,992, Interim dividends paid on net capital gains and losses for the financial year TOTAL 1,155, ,992, Allocation Dividend payments Net capital gains and losses not distributed Accumulation 1,155, ,992, TOTAL 1,155, ,992, Information on securities eligible to receive dividends Number of securities Dividend per unit FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

21 Annual financial statements - Notes Table of results and other material items in the last five financial years Class: C Net asset value (in USD) 30 Sep Sep Sep Sep Sep 14 C units Net assets (in EUR thousands) Number of securities C units 3, Date of payment 30/09/ /09/ /09/ /09/ /09/2014 Dividend per unit on net capital gains and losses (including interim dividends) (in EUR) Dividend per unit on income (including interim dividends) (in EUR) Tax credit per unit (*) natural persons (EUR) Accumulation per unit on net capital gains and losses C units Accumulation per unit on income C units FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

22 Class: CLASSIC 30 Sep Sep Sep Sep Sep 14 Net asset value (in EUR) C units Net assets (in EUR thousands) 47, , , , , Number of securities C units 398, ,413 50,524 50,757 51,257 Date of payment 30/09/ /09/ /09/ /09/ /09/2014 Dividend per unit on net capital gains and losses (including interim dividends) (in EUR) Dividend per unit on income (including interim dividends) (in EUR) Tax credit per unit (*) natural persons (EUR) Accumulation per unit on net capital gains and losses C units Accumulation per unit on income C units (*) The tax credit per unit is calculated on the date of payment by applying the fiscal instruction of 04/03/1993 (Inst.4 K-1-93). Theoretical amounts, calculated in accordance with the rules applicable to natural persons, are provided here as an indication. "Instruction 4 J-2-99 of 08/11/1999 also states that beneficiaries of tax credits other than natural persons calculate the amount of the tax credits to which they are entitled under their sole responsibility." FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

23 Annual financial statements - Notes Inventory of financial instruments at 30 September 2014 Asset items and name of securities Quantity Price Listing currency Current value Rounded percentage of the net assets Equities and similar securities 9,116, Traded on a regulated or similar market ABERTIS INFRAESTRUCT.S.A ORD. 13, EUR 211, AIRBUS GROUP 6, EUR 346, AK20 NOBEL 4, EUR 257, ALLIANZ SE-REG 2, EUR 307, ANHEUSER-BUSCH INBEV 7, EUR 637, ASML HOLDING NV 4, EUR 366, BANCO SANTANDER 38, EUR 291, BAYER 7, EUR 780, BELGACOM 11, EUR 326, DAIMLER 4, EUR 299, DEUTSCHE BANK 11, EUR 310, DEUTSCHE POST NOM. 31, EUR 799, DEUTSCHE TELEKOM 61, EUR 740, EDP ENERGIAS PORTUGAL 88, EUR 304, E.ON NOM. 24, EUR 352, KON.PHILIPS ELECTRONICS 8, EUR 211, MUNCHENER RUCKVERSICHERUNGS 1, EUR 289, OCI NV 9, EUR 241, ROYAL DUTCH SHELL CL.A 7, EUR 231, RWE A 12, EUR 375, SAINT-GOBAIN 8, EUR 292, SAP 4, EUR 236, SBM OFFSHORE 16, EUR 188, SIEMENS 3, EUR 283, SOCIETE GENERALE A 10, EUR 432, Forward financial instruments 8, Margin calls Swaps 8, FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

24 Receivables Payables -2, Deposits Other financial accounts 153, TOTAL NET ASSETS 9,276, FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

25 FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF Annual report 30 September 2014 Management Company: THEAM Depositary: BNP Paribas Securities Services Registered office: 1, boulevard Haussmann Paris Publication of subscription and redemption prices: available to unitholders at the Management Company

26 Table of Contents TSEC TAIWAN THEAM EASY UCITS ETF MANAGEMENT REPORT Investment strategy... 3 Dividend policy Investment policies... 8 Results and other items Inventory ANNUAL FINANCIAL STATEMENTS Balance sheet Assets Balance sheet Liabilities Off-balance sheet items Income statement ANNUAL FINANCIAL STATEMENTS - NOTES Accounting methods and rules Change in net assets Additional information Additional information Breakdown by type of receivables and payables Breakdown by the legal or economic structure of the instrument Breakdown by type of interest rate for assets, liabilities and off-balance sheet items... Breakdown of assets, liabilities and off-balance sheet items by residual maturity... Breakdown of assets, liabilities and off-balance sheet items by listing currency FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September 2014

27 Strategy IDENTIFICATION CLASSIFICATION: International Equities INVESTMENT OBJECTIVE: The Fund's investment objective is to replicate the performance of the FTSE Environmental Opportunities 100 index, regardless of how it evolves. As the Fund is a tracker fund, its objective is to maintain the absolute tracking error between the change in the Fund s net asset value and that of the index at a level below 1%. If this tracking error exceeds 1%, it must not under any circumstances exceed 5% of the volatility of the index. BENCHMARK INDEX: The benchmark index is the FTSE Environmental Opportunities 100 index, published in USD by FTSE. Description of the Index: FTSE Environmental Opportunities 100 is an index composed of shares of the 100 biggest international companies operating in the technology and environmental industry sectors, including alternative and renewable energies, energy efficiency management, pollution control, waste and resources management. The stocks making up the index derive at least 20% of their income from technologies and the environmental industry and are subjected to an economic filter by Impax Asset Management, a specialist in the sector, and a liquidity filter by FTSE. The index was launched by FTSE in June 2008 (base 152 at 22 September 1999). It is published and calculated by FTSE and is adjusted twice a year (June and December) and includes the dividends paid by the shares that constitute the index. Its Bloomberg code is the <TEO100U> Index. A full description of the index and the publication of its stocks are available on the website Publication of the FTSE Environmental Opportunities 100 index: FTSE is responsible for calculating and publishing the value of the FTSE Environmental Opportunities 100 index. The closing amount of the FTSE Environmental Opportunities 100 index is calculated daily using the official closing price of the stock exchange on which the securities constituting the index are listed. The FTSE Environmental Opportunities 100 index is also calculated in real time on each trading day of the stock exchange on which it is listed. The FTSE Environmental Opportunities 100 index is published in real time via Reuters and Bloomberg. Disclaimer from FTSE: The FTSE Environmental Opportunities 100 index ( Index ) is calculated by FTSE International Limited ( FTSE ) in association with Impax Asset Management Ltd ( Impax ). FTSE and/or Impax reserve all rights to the Index. FTSE is a registered trademark of London Stock Exchange PLC and Financial Times Limited, used by FTSE under a licence agreement. FTSE, Impax and its Licensors shall not be held liable for any losses resulting from use of the Index. Units of the Fund are in no way sponsored, approved, marketed or promoted by FTSE International Limited ( FTSE ), the London Stock Exchange Plc ( Exchange ), The Financial Times Limited ( FT ) or Impax Asset Management Limited ( Impax ) (collectively referred to as the Licensors ). The Licensors provide no guarantee as to the results obtained by using the FTSE Environmental Opportunities 100 index ( Index ) or as to the level of the Index at any given time. The Index is put together and calculated by FTSE in association with Impax. None of the Licensors shall be held liable for any errors contained in the Index or for losses involving the Index. None of the Licensors has any responsibility to inform anyone of any error found. FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

28 Strategy FTSE, FT-SE and Footsie are registered trademarks of the Exchange and FT, used by FTSE under a licence agreement. INVESTMENT STRATEGY: STRATEGY USED TO ACHIEVE THE INVESTMENT OBJECTIVE To achieve the investment objective of offering investors exposure to the FTSE Environmental Opportunities 100 index, the Fund will implement synthetic replication techniques enabling gains resulting from the Fund's assets to be swapped, by using OTC forward financial instruments (swaps, etc.), against an indexation to the benchmark index. Thus, the portfolio's risk characteristics are similar to those of the benchmark index. MAIN CATEGORIES OF ASSETS USED (EXCLUDING EMBEDDED DERIVATIVES) Equities: The Fund is eligible for the French PEA share savings scheme and consequently maintains at least 75% of securities eligible for the PEA in its assets. The Fund invests in the shares of large and, where appropriate, mid-cap companies in all sectors, issued on the markets of one or more European countries, and whose performance is intended to be swapped against an indexation to the benchmark index. Debt securities and money market instruments: For cash management purposes and/or depending on market conditions, the Fund may invest in money market instruments (French Treasury bills, certificates of deposit) or in transferable debt securities. These instruments have a minimum credit rating of A-3 (Standard & Poor s) or P-3 (Moody s) at the time of their acquisition or failing that a long term investment grade rating or an internal rating of the Management Company which satisfies equivalent criteria. The issuers selected may be in either the private or the public sector (governments, local government entities, etc.), while private debt may represent up to 100% of debt instrument assets. MODIFIED DURATION RANGE Between 0 and 1 BASE CURRENCY OF SECURITIES All currencies LEVEL OF FOREIGN EXCHANGE RISK None* EXPOSURE RANGES CORRESPONDING TO THE GEOGRAPHIC REGION OF THE ISSUERS OF THE SECURITIES Eurozone countries: between 0% and 110% of the net assets Non-eurozone countries: between 0% and 110% of the net assets FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

29 Strategy * Debt securities and money market instruments denominated in currencies other than the USD are systematically hedged against the currency risk by matching them with one or more currency swaps. Foreign bonds and complex or transferable debt securities will be denominated in one of the currencies of the OECD member countries. Units or shares of undertakings for collective investment The Fund may invest up to 10% of its net assets in units or shares of UCITS, AIFs or investment funds. UCITS, AIFs and investment funds are: - French or foreign UCITS; - French AIFs or foreign AIFs established in other European Union Member States or investment funds incorporated on the basis of a foreign law complying with criteria laid down in article R of the French Monetary and Financial Code. These UCITS, AIFs and investment funds may be managed by management companies which are part of the BNP Paribas Group. Derivatives: The Fund may use instruments traded on regulated futures markets in France and/or abroad in accordance with regulations, such as futures and options. The Fund may also conclude over-the-counter swaps. Transactions in such instruments will be carried out within a limit of approximately 100% of the Fund s assets and will mainly be swap contracts. The forward financial instruments used by the Fund to generate exposure to the investment strategy with the aim of achieving its investment objective will be: - Over-the-counter options; - swaps: performance swaps on the benchmark, equity swaps; - forward contracts to hedge currency risk, currency swaps. These transactions in financial instruments may be concluded with counterparties selected by the Management Company in accordance with its best execution policy; these counterparties may be companies that are connected to the Management Company. In order to achieve its investment objective the Fund may receive or issue the guarantees referred to in article L of the French Monetary and Financial Code in accordance with the Management Company s risk policy. These guarantees may be cash (not reinvested), money market instruments, bonds issued or guaranteed by a Member State of the OECD, equities, units of UCITS whose prices are quoted on a daily basis, etc. A haircut will be applied to these guarantees according to the category of assets involved (e.g. 2% for a French government bond with a maturity of between 1 and 10 years). Instruments with embedded derivatives: The Fund shall not seek to acquire this type of asset directly. Any warrants will be held in the portfolio only as a result of securities transactions involving the allocation of this type of security. Deposits: FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

30 Strategy To achieve the investment objective, the Fund may deposit up to the equivalent of 100% of the net assets in cash at one or more banks for a maximum period of 12 months. Cash borrowing: In the normal course of operations, the Fund may occasionally become overdrawn and borrow cash, up to a limit of 10% of its assets. Temporary purchases and sales of securities: Any temporary purchases and sales of securities will be conducted with reference to the French Monetary and Financial Code. They will be conducted as part of the cash management and/or optimisation of the Fund s revenues. These operations will consist of securities lending and borrowing and repurchase and reverse repurchase agreements. Such transactions may be carried out to a value of 100% of the Fund s assets. These transactions may be carried out with companies connected to the BNP Paribas Group. All these transactions will be conducted under normal market conditions and any income will belong in full to the Fund. The guarantees received in connection with these transactions will be of the same type as those eligible under the Derivatives heading below, with the exception of units of UCITS. Additional information on temporary purchases and sales of securities is given in the Expenses and Fees section of the Prospectus. The method chosen by the Management Company to measure the global risk of the fund that it manages is: the commitment approach. RISK PROFILE: General considerations: Your portfolio will be invested primarily in financial instruments selected by the Management Company. These financial instruments will be subject to the market developments and fluctuations. The Fund is classified as an international equity fund. Investors are mainly exposed to the following risks: Risk of capital loss: Investors are advised that the Fund s performance may not meet its objectives and that their invested capital (minus subscription fees) may not be fully returned to them. Market risk: A fall in the shares making up the benchmark index will lead to a fall in the Fund s net asset value. Currency risk: This concerns eurozone holders. It is linked to a fall in the currencies in which the financial instruments used by Fund are listed, which may have a negative impact on the net asset value. Counterparty risk: The Fund will be exposed to counterparty risk resulting from the use of over-the-counter forward financial instruments and temporary purchases and sales of securities in order to achieve the investment objective. Counterparty risk is the risk of loss incurred by the Fund with respect to its commitments with a counterparty in the event of default by said counterparty. Counterparty risk is nevertheless reduced by setting up a guarantee in favour of the Fund in accordance with the regulations in force. FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

31 Strategy Credit risk: It is linked to an issuer s ability to honour its commitments and the risk of an issue or issuer being downgraded, with as a result a possible fall in the value of the debt securities held by the Fund. This risk is also associated with the use of credit derivatives. The Fund could face significant capital losses on investments involving credit derivatives if it is necessary to sell such assets when markets are illiquid. In such a case, the Fund s net asset value could fall. Liquidity risk: As a market s liquidity is reflected in particular in the form of a wide price range, unitholders run the risk of a loss due to adjustments in the forward financial instruments held by the Fund when markets are illiquid. As a consequence of such situations, the costs relating to adjustments in the instruments held by the Fund in the event of subscriptions or redemptions may prove particularly high and will be reflected in the Fund s net asset value. Risk linked to the use of derivatives: In order to achieve its investment objective, the Fund may invest in OTC or listed derivatives, for hedging purposes and/or to optimise portfolio yield. Investors should be aware that, for this reason, the Fund s return volatility is greater and using these instruments may significantly affect portfolio exposure compared with a simple direct investment. The net asset value of the Fund could fall if such risk arises. Liquidity risk on a listing market: The ETF s market price may differ from its indicative net asset value. The liquidity of the Fund s units on a listing market may be affected by a suspension which might may be due in particular to: - the calculation of the FTSE Environmental Opportunities 100 index being suspended or halted; - a suspension of the market(s) on which the components of the FTSE Environmental Opportunities 100 index are listed; - the inability of the listing market concerned to obtain or calculate the Fund s indicative net asset value; - an infringement by a market maker of the rules in force on the market in question; - a system failure affecting the market s computer or electronic systems in particular. Risk of conflict of interest: When entering into financial contracts or temporary sales or purchases of securities, the Management Company may be led to conclude this type of transaction with counterparties affiliated to the group to which the Management Company belongs. In such cases, a potential conflict of interest exists between the interests of clients and those of the group to which the Management Company belongs. The implementation of an effective conflict of interest policy enables the Management Company to prioritise the interests of its clients in such cases. Guarantee or capital protection: none MINIMUM RECOMMENDED INVESTMENT HORIZON: 5 years FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

32 Management Report STATUTORY AUDITOR Deloitte & Associés INVESTMENT POLICY EasyETF FTSE Environmental Opportunities 100 Annual Report to end September ECONOMIC AND FINANCIAL DEVELOPMENTS The budgetary shenanigans in the US Congress, which resulted in the temporary closure of federal services in the first fortnight of October, prompted fleeting investor concerns in the autumn. Similarly, the Fed s announcement at the end of 2013 that it would begin tapering its bond purchases did not halt the S&P 500 index's progress. At the start of 2014, the geopolitical situation and concerns about emerging market economies raised doubts, which manifested themselves in an initial alert on the financial markets, in particular regarding emerging market assets (equities, but also currencies). Although investor appetite for risky assets quickly returned at the beginning of February, throughout the entire period, stock market performances continued to be driven by geopolitical factors and considerations regarding liquidity provided by central banks. The events in Ukraine and a renewed flare-up in the Gaza strip crisis weighed on equities from April to mid-summer, while reassurances from the central banks led indices to bounce back strongly in May and June. In August and early September, investors decided that the geopolitical risks could be managed and hailed Mario Draghi's promise to further ease monetary conditions in the eurozone. Towards the end of the period under review, investor concerns once again centred on geopolitical events, in particular a Russian draft bill aiming to freeze foreign assets (within the context of sanctions linked to the deadlock in Ukraine), as well as the military interventions in Iraq and Syria against Islamic State. The upcoming presidential election in Brazil and wide-scale demonstrations in Hong Kong also affected equities. While investors remain confident that global liquidity will remain abundant in the coming year (and rightly so), the Fed's quantitative easing programme is coming to an end and it is likely that the key rates will be gradually raised in It was this end of an era, which, despite precautions taken by Janet Yellen, worried investors and contributed towards a sell-off in risky assets (global equities, emerging market assets, high yield bonds) and the rise of the dollar. Over the past 12 months, volatility (measured by the VIX index calculated for S&P 500 options) amounted on average to 13.7%, with a few spikes (over 20% in October 2013 and January 2014, and then upwards of 16% in early April, the end of July and in September). These fluctuations, which reflected a lack of investor confidence, took place in an economic environment where hopes for a pick-up in economic activity were dashed (with the exception of the US). This disillusionment sowed doubts with regard to global growth, which were in turn exacerbated by the decidedly cautious forecasts on the part of international bodies such as the OECD and the IMF. Growth forecasts, especially for the eurozone, were revised downwards. On a microeconomic level, corporate earnings performed strongly in the US, but were rather more disappointing in the eurozone. Financial operations (mergers and acquisitions, stock market flotations) bolstered prices. The year s balance sheet was largely positive. The MSCI AC World index gained 9.1% over 12 months, while the MSCI Emerging index recorded an increase of 1.8% due to a bumpy start and even more turbulent end to the period (variations calculated based on indices denominated in US dollars). The latter was due to a surge in mistrust of risky assets in response to the approaching end of the Fed's bond purchasing programme. The Euro Stoxx 50 index rose 11.5% in local currency, mirroring the performance of the Japanese indices (Nikkei 225: +11.9%). The US markets outperformed with gains of 17.3% by the S&P 500, which smashed one record after another (at one point, it surpassed 2,010 points at closing in September). FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

33 Management Report INVESTMENT POLICY EasyETF FTSE Environmental Opportunities 100 is mainly invested in a total return swap. We have swapped the performance of a basket of European equities against the performance of the FTSE Environmental Opportunities 100 index. This synthetic replication generates a yield very close to the benchmark index. During the year under review, the FTSE Environmental Opportunities 100 TR* USD index (dividends reinvested), calculated in EUR, gained 15.08%. Over the same period, the net asset value of the EUR unit gained 14.24%. This past performance, calculated from 30 September 2013 to 30 September 2014, is no guarantee of the Fund's future results. During the same period, the FTSE Environmental Opportunities 100 TR* USD index (dividends reinvested), calculated in USD, gained 7.39%. Over the same period, the net asset value of the USD unit gained 6.61%. This past performance, calculated from 30 September 2013 to 30 September 2014, is no guarantee of the Fund's future results. The tracking error between the Fund and its benchmark index was 0.03%. This (ex post) tracking error for the period in question is in line with expectations. The performance gap between the fund and its reference index can be explained by enhanced replication methods. FTSE Environmental Opportunities 100 TR* USD FTSE Environmental Opportunities 100 TR* converted to EUR EasyETF FTSE Environmental Opportunities 100 EUR EasyETF FTSE Environmental Opportunities 100 USD * index reinvesting dividends 30/09/2013 (based on closing prices) Past performance is not necessarily a guide to the future results of the Fund. 30/09/2014 (based on closing prices) Change (%) % % % % Tracking error: (TBC) Changes concerning the Fund during the year: 18/02/2014: Change of name, formerly EASYETF FTSE ENVIRONMENTAL OPPORTUNITIES 100. FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September

34 Management Report Information on efficient portfolio management techniques (EPMT) Type of trade Securities repurchase agreements* Securities reverse repurchase agreements* Securities lending Securities borrowing Exposure gained through EPMT Amount in ptf curr. * Securities received as a guarantee were not reused Identity of counterparties, type and amount of financial guarantees received to reduce counterparty risk Name of counterparty Type of guarantee received Valuation in ptf curr. Income from EPMT received during the financial year as well as direct and indirect operating fees and expenses Type of trade Income for the year in ptf curr. Operating fees and/or expenses in ptf curr. Information on derivatives Underlying exposure gained through derivatives Type of trade Counterparty Amount in ptf curr. As % of net assets SWAP BNP PARIBAS 624, % SWAP BNP PARIBAS -615, % Identity of counterparties, type and amount of financial guarantees received Name of counterparty Type of financial guarantee Valuation in ptf curr. CODE OF ETHICS Pursuant to the provisions of article of the General Regulation of the AMF (the French securities regulator), we hereby inform you that: - we have undertaken transactions on financial instruments issued by companies of the BNP Paribas Group. - we have not used BNP Paribas Group funds. * * * FTSE ENVIRONMENTAL OPPORTUNITIES 100 THEAM EASY UCITS ETF - Annual report for the year ended 30 September