SEB Lux Asia Fund A LUXEMBOURG MUTUAL FUND AUDITED ANNUAL REPORT. December 31, 2004

Transcription

1 SEB Lux Asia Fund A LUXEMBOURG MUTUAL FUND AUDITED ANNUAL REPORT December 31, 2004 Subscriptions cannot be received on the basis of financial reports. Subscriptions are valid only if made on the basis of the current prospectus, supplemented by the latest annual report and the most recent semi-annual report if published thereafter. SEB Lux Asia Fund Management Company S.A. Promoted by: SEB AB (publ), STOCKHOLM

2 SEB Lux Asia Fund TABLE OF CONTENTS Page(s) Organisation and General Information 3 4 Independent Auditor s Report 5 Report of the Board of Directors 6 Schedule of Investments 7 9 Statement of Operations 10 Statement of Changes in Net Assets 10 Statement of Net Assets 11 Statistical Information 11 Notes to the Financial Statements Additional Information for Investors in Germany 13 2

3 ORGANISATION AND GENERAL INFORMATION ORGANISATION SEB Lux Asia Fund ("the Fund") is a Luxembourg Mutual Umbrella Fund with a portfolio investing in variable yield securities of the Far East Countries and the Pacific Area. Currently the Fund has one active Sub-Fund: "SEB Lux Asia Fund - ex Japan". The Fund is sponsored by: The Fund is managed by: The Board of Directors of the Management Company is: SEB AB (publ), Kungsträdgårdsgatan 8, S STOCKHOLM SEB Lux Asia Fund Management Company S.A. 6a, Circuit de la Foire Internationale, L-1347 LUXEMBOURG Cecilia LAGER, Chief Operating Officer at SEB Asset Management, Chairwoman of the Board Barbro LILIEHOLM, Head of Corporate Law at SEB Asset Management, Director Peder HASSLEV, Head of Equities at SEB Asset Management, Director Rudolf KÖMEN, Head of SEB Asset Management Luxembourg, Director (Since May 12, 2004) The Independent Auditor of the Fund and the Management Company is: The Custodian Bank is: The Central Administration is: The Investment Adviser is: PricewaterhouseCoopers S.à r.l. Réviseur d entreprises 400, route d Esch, L-1014 LUXEMBOURG SEB Private Bank S.A. 6a, Circuit de la Foire Internationale, L-1347 LUXEMBOURG SEB Invest Luxembourg S.A. 6a, Circuit de la Foire Internationale, L-1347 LUXEMBOURG SEB AB (publ), - SEB Asset Management - Sergels Torg S STOCKHOLM 3

4 The Listing Agent is: BANQUE GÉNÉRALE du LUXEMBOURG S.A. 50, Avenue J. F. Kennedy, L-2951 Luxembourg German Transfer, Paying SEB AG Agent and Information Ulmenstrasse 30 Place is: D Frankfurt am Main GENERAL INFORMATION The Fund is set up in accordance with the Management Regulations signed initially in Luxembourg on April 21, A restated version was deposited with the Chief Registrar of the District Court of and in Luxembourg on July 1, 1991 and published in the Mémorial C as of August 5, Amendments hereto were deposited with the Chief Registrar of the District Court of and in Luxembourg on March 17, 1992, on March 17, 1993, on December 21, 1993, on September 2, 1994, on April 11, 1997, on July 27, 1998, on February 11, 1999, on July 1, 1999 and on November 17, 2003 and published in the Mémorial C as of August 11, 1992, of April 30, 1993, of February 8, 1994, of October 13, 1994, of May 7, 1997, of October 3, 1998, of February 26, 1999, of August 5, 1999 and of November 28, SEB Lux Asia Fund as a mutual Fund governed by the law of March 30, 1988 does not have a legal personality. Its assets are the undivided joint property of the unitholders and are separate from the assets of the Management Company SEB Lux Asia Fund Management Company S.A.. There is no restriction on the amount of the Fund s assets nor to the number of its units. The net asset value per unit, computed on each day, which is a Bank Business day in Luxembourg and in Sweden, is published daily at the office of the Custodian Bank, the Central Administration and the Management Company. Subscription and redemption prices are: -published daily at the registered office of the Custodian Bank, the Central Administration and of the Management Company -published daily in at least one international circulating newspaper. Currently, publication is made in the International Herald Tribune and the German newspaper Börsen-Zeitung. FINANCIAL REPORTS of the Fund are published annually and semi-annually. These reports, as well as the OFFERING PROSPECTUS, the MANAGEMENT REGULATIONS and all information concerning the Fund can be obtained at the offices of the agents responsible for FINANCIAL SERVICES listed below: SEB Private Bank S.A. and SEB Invest Luxembourg S.A. 6a, Circuit de la Foire Internationale, L-1347 LUXEMBOURG SEB AB (publ) Kungsträdgårdsgatan 8 S STOCKHOLM and by all branches, subsidiaries and affiliates of the SEB Group. Financial information regarding SEB Lux Asia Fund Management Company S.A. can be received, free of charge, upon request in writing at the registered office of the Management Company. 4

5 INDEPENDENT AUDITOR S REPORT We have audited the financial statements which consist of the statement of net assets, the statement of operations, the statement of changes in net assets, the schedule of investments and the notes to the financial statements of SEB Lux Asia Fund and of its Sub-Fund SEB Lux Asia Fund ex Japan for the year ended December 31, These financial statements are the responsibility of the Board of Directors of the management company. 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. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Board of Directors of the management company, in preparing the financial statements, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the attached financial statements give, in conformity with the Luxembourg legal and regulatory requirements, a true and fair view of the financial position of SEB Lux Asia Fund and of its Sub-Fund SEB Lux Asia Fund ex Japan at December 31, 2004 and of the results of its operations and changes in its net assets for the year then ended. Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. We have no observation to make concerning such information in the context of the financial statements taken as a whole. PricewaterhouseCoopers S.à r.l. Luxembourg, April 1, 2005 Réviseur d entreprises Represented by Jean-Robert Lentz 5

6 REPORT OF THE BOARD OF DIRECTORS OF SEB Lux Asia Fund Management Company S.A. to THE UNITHOLDERS OF SEB Lux Asia Fund - ex Japan The Sub-Fund s performance The Sub-Fund s net assets amounted to USD million at December 31, 2004, compared with USD million at December 31, The net asset value rose by 4.7 percent if expressed in SEK, whereas the Sub-Fund s benchmark index without dividend rose by 5.5 percent, while the index including dividend rose by 8.2 percent. The selection of shares in Hong Kong and Korea and the distribution in Indonesia made a positive contribution to the Sub-Fund s performance. The holdings in Singapore and Taiwan had a negative effect on the Sub-Fund. Among the strongest sectors were durable goods and services (Li & Fung Ltd, Esprit Holdings Ltd, Hyundai Motor and Hankook Tire Co Ltd) and energy (CNOOC, China Petroleum & Chemical). The sectors which checked the Sub- Fund s performance were IT (Taiwan Semiconductor Mfg Co Ltd, Mediatek Inc, Venture Corporation Limited), industry (Sembcorp Industries Limited) and natural resources (Asia Aluminum Holdings Limited). Currency movements did not have any appreciable effect on the Sub-Fund s performance. Changes during the period We increased our technology holdings by adding United Microelectronics, which is trailing its competitors and is expected to benefit from a recovery in the economy in the semi-conductors sector, and ASM Pacific Technology, which has a good backlog of orders. We took profits in the financial shares Koram Bank and Kookmin Bank, and reinvested the proceeds from Shinhan Financial Group. We took profits in Keppel Corp and sold Cheung Kong as a result of increasing losses for the company s 3G operations. We reduced the Sub-Fund s holdings in China by taking profits in the industrial share Zhejiang Expressway. Finally we also took profits in Denway Motors, reinvesting in Li & Fung instead. In the second half of the year, we established a new holding in South Korea by purchasing Ping An Insurance, Shinhan Financial Group, Kookmin Bank and Samsung Fire & Marine Insurance. We also increased the holdings in Hyundai Motor, pending the launch of new models, and LG Chemical, which, despite the fact that its share has plummeted, is expected to benefit from favourable market conditions until We reduced the Sub-Fund s holdings in the technology shares Asia Optical, Taiwan Semiconductor Mfg and Mediatek. Other The Sub-Fund is permitted to trade in options and futures contracts. This facility was not exercised during the period. March 7, 2005 THE BOARD OF DIRECTORS Note: Performances mentioned in this report are historical and are not indicative of future results. 6

7 SEB Lux Asia Fund - ex Japan SCHEDULE OF INVESTMENTS TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE SHARES NUMBER DESCRIPTION MARKET VALUE % OF USD NAV CHINA 3,174,000 China Petroleum & Chemical (Sinopec) 1,306, ,832,000 CNOOC 3,669, ,258,000 Cosco Pacific 2,605, ,790,000 Datang International Power Generation 1,347, TOTAL CHINA 8,929, HONG KONG 9,099,000 Asia Aluminium 936, ,000 ASM Pacific Technology 933, ,000 China Netcom Group 420, ,468,000 China Oilfield Services 1,670, ,193,000 China Power International 1,181, ,278,000 China Telecom 2,301, ,000 Dah Sing Banking Group 501, ,200 Dah Sing Financial 1,342, ,000 Esprit Holding 858, ,000 Hang Lung Group 1,964, ,034,000 HK Exchange and Clearing 2,767, ,200 HSBC Holding (HKD) 3,819, ,838,000 Jiangsu Express class H 1,250, ,000 Kerry Properties 1,458, ,256,000 Li & Fung 2,116, ,019,000 Ping An Insurance H 1,730, ,000 Shangri La Asia 1,230, ,500 Swire Pacific A 4,921, ,000 ZTE Corporation 155, TOTAL HONG KONG 31,561, INDONESIA 1,032,000 Astra Intl (f) 1,067, ,184,500 Bank Central Asia 2,622, ,495,500 Bank Rakyat Indonesia 772, ,403,500 Telekomunikasi Indonesia 2,288, ,737,000 United Tractors 915, TOTAL INDONESIA 7,666, MALAYSIA 1,254,700 Astro All Asia Networks 1,782, ,179,000 Commerce Asset Holding 1,458, ,000 Kuala Lumpur Kepong 1,064, ,388,000 Media Prima 624, ,000 Proton Holdings 1,612, ,062 Public Bank (F) MYR 1,872, ,000 Shell Refining (FoM) 1,396, TOTAL MALAYSIA 9,811,

8 SEB Lux Asia Fund - ex Japan SCHEDULE OF INVESTMENTS SINGAPORE 482,000 Development Bank of Singapore 4,753, ,000 Oversea-Chinese Banking Corp 603, ,905,000 Sembcorp Industries 1,890, ,070,000 Sembcorp Logistics 1,133, ,000 Singapore Press 1,090, ,270,000 SMRT Corp 684, ,000 Suntec Reit 285, ,000 United Overseas Bank 693, ,663,000 United Test and Assembly Center 848, ,000 Venture Corp 1,207, TOTAL SINGAPORE 13,192, SOUTH KOREA 6,740 Cheil Communication 979, ,730 Hankook Tire 1,327, ,600 Hyundai Mobis 1,746, ,230 Hyundai Motor 3,550, ,443 Kookmin Bank 838, ,330 KT Corp ADR 1,272, ,680 LG Chemical LTD 2,019, ,850 LG Engineering & Construction 821, ,050 LG Petrochemical 1,256, ,010 Samsung Electronics 10,012, ,480 Samsung Fire and Marine Insurance 2,163, ,220 Shinhan Financial 4,683, ,650 Shinsegae Company 1,552, ,520 You Eal Electronics 968, TOTAL SOUTH KOREA 33,192, TAIWAN 109,688 Asia Optical 612, ,490,896 Chinatrust Financial Holding 2,979, ,433,000 E.Sun Financial Holding 1,193, ,400 Far EasTone Telecommunications 1,087, ,000 Fubon Financial GDR 1,025, ,271,000 Fubon Financial Holding 1,303, ,459 Hon Hai Precision Industry 3,471, ,579 MediaTek 2,110, ,000 Novatek Microelectronics 2,581, ,873,000 Taishin Financial Holdings 1,761, ,459,000 Taiwan Cellular 1,634, ,831,462 Taiwan Semiconductor Manufactoring 6,105, ,495 Tong Yang Industry 1,039, TOTAL TAIWAN 26,905,

9 SEB Lux Asia Fund - ex Japan SCHEDULE OF INVESTMENTS THAILAND 1,252,000 Aromatics Thailand (F) 2,014, ,200 Bangkok Bank (F) 1,552, ,607,700 Land & Houses - NVDR 1,197, ,300 Siam Cement (F) 1,522, ,000 Thai Oil Public Company (F) 325, ,105 True Rights TOTAL THAILAND 6,612, TOTAL SHARES 137,871, TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE 137,871, TOTAL PORTFOLIO 137,871, (PORTFOLIO AT COST USD: 107,906,074.42) CASH IN BANKS Cash in banks 1,042, TOTAL CASH IN BANKS 1,042, OTHER ASSETS Dividends receivable 726, Other receivables 4, TOTAL OTHER ASSETS 731, OTHER LIABILITIES Taxe d'abonnement -17, Other payables -14, TOTAL OTHER LIABILITIES -31, TOTAL NET ASSET AS AT DECEMBER 31, ,613, The accompanying notes are an integral part of these financial statements. 9

10 SEB Lux Asia Fund - ex Japan STATEMENT OF OPERATIONS For the year ended December 31, 2004 INCOME USD Dividends 3,727, Bank Interest 13, Total Income 3,741, EXPENSES Management Fee (Note 3) 2,330, Taxe d'abonnement (Note 4) 66, Total Expenses 2,397, NET INCOME FOR THE YEAR 1,343, SEB Lux Asia Fund - ex Japan STATEMENT OF CHANGES IN NET ASSETS For the year ended December 31, 2004 NET ASSETS AT THE BEGINNING OF THE YEAR 131,441, Net Income for the Year 1,343, Net realised Gain / Loss on: - Sales of Securities 19,142, Exchange -220, Net realised Gain / Loss 20,266, Change in Net unrealised Appreciation / Depreciation on: - Securities -4,686, Change in Net unrealised Appreciation / Depreciation -4,686, Increase / Decrease in Net Assets as a Result of Operations 15,580, Proceeds on Issue of Units 17,459, Payment on Redemptions of Units -24,867, TOTAL NET ASSETS AT THE END OF THE YEAR 139,613, USD The accompanying notes are an integral part of these financial statements. 10

11 SEB Lux Asia Fund - ex Japan STATEMENT OF NET ASSETS Assets USD Portfolio at Cost 107,906, Unrealised Appreciation 29,965, Portfolio at Market Value (note 2) 137,871, Cash at Banks 1,042, Other Assets 731, Total Assets 139,644, Total Liabilities -31, TOTAL NET ASSETS 139,613, SEB Lux Asia Fund - ex Japan STATISTICAL INFORMATION USD Number of "A" Units Outstanding as at December 31, ,597, Total Net Assets as at December 31, ,613, as at December 31, ,441, as at December 31, ,954, Net Asset Value per "A" Units as at December 31, as at December 31, as at December 31, Dividend paid 2004 NIL Total Expense Ratio *) (TER) in % Portfolio Turnover Rate **) (PTR) in % *) TER is calculated by the following formula: (Total expenses / average TNA) * 100 **) PTR is calculated by the following formula: ((Total 1 - Total 2) / average TNA) * 100 TNA = Total Net Assets Total 1 = Total of securities transactions for the period under review (purchases + sales) Total 2 = Total of subscribed and redeemed units for the period under review (purchases + sales) The accompanying notes are an integral part of these financial statements. 11

12 SEB Lux Asia Fund NOTES TO THE FINANCIAL STATEMENTS Note 1. GENERAL SEB Lux Asia Fund ("the Fund") was established on April 21, 1986 as a Luxembourg mutual fund ("Fonds Commun de Placement à Compartiments Multiples") under the law of March 30, 1988 relating to undertakings for collective investment. The Fund has currently one Sub-Fund in operation: "SEB Lux Asia Fund - ex Japan". SEB Lux Asia Fund Management Company S.A. ("the Management Company") manages the assets of the Fund and issues registered unit certificates of joint ownership in accordance with the management regulations. Each Sub-Fund may be divided in two classes of units: accumulation units ("A" units) and dividend units ("B" units). The "B" units may pay a dividend. The "A" units will capitalise income, with the result that their value will become greater than that of "B" units, in the proportion of the dividends paid to the "B" units. Only "A" units are issued for the Sub-Fund SEB Lux Asia Fund - ex Japan. Note 2. SIGNIFICANT ACCOUNTING POLICIES The financial statements are presented in accordance with Luxembourg regulations relating to undertakings for collective investment. Currency translation: Separate accounts are maintained for each Sub-Fund in the currency in which the net asset value of the units to which it relates is expressed (the accounting currency). Transactions denominated in a currency other than the accounting currency are recorded on the basis of exchange rates prevailing on the date they occur or accrue to the Sub-Fund. Assets and liabilities, expressed in a currency other than the accounting currency, are translated on the basis of exchange rates ruling at the balance sheet date. the exchange rates were as follows: Investments: 1 HKD = USD 1 IDR = USD 1 KRW = USD 1 MYR = USD 1 SGD = USD 1 THB = USD 1 TWD = USD Securities quoted on an official Stock Exchange or any other organised market, are valued on the basis of the last known price, and, if there are several markets, the last known price of the Stock Exchange which is the principal market for the security in question, unless these prices are not representative. For unquoted securities, and for quoted securities for which the last known price is not representative, valuation is based on the probable sales value estimated prudently and in good faith. Results on sales of securities are determined by the average cost method. Income: Dividends are recorded on the ex-dividend date. Interest income is recognised on an accrual basis. 12

13 SEB Lux Asia Fund NOTES TO THE FINANCIAL STATEMENTS Note 3. MANAGEMENT FEE In payment of its services, the Management Company receives a commission at an annual rate of 1.75%, a twelfth of this rate being payable at the end of each month and based on the net assets of each Sub-Fund of the last valuation of the respective month. The Management Company pays accounting, administration, custodian and all other charges and fees on behalf of the Fund, except for taxes, bank and brokerage handling as well as transaction fees. Note 4. TAXES The Fund is not subject to any Luxembourg taxes on income or capital gains under existing legislation. The Fund is, however, subject to the "taxe d'abonnement" which is charged at the rate of 0.05% per annum, based on the net assets of the Fund at the end of each calendar quarter. The tax is calculated and paid quarterly. Note 5. CHANGES IN PORTFOLIO COMPOSITION Details of purchases and sales of investments are available, free of charge, from the registered office of the Management Company of the Fund as well as at the Transfer Agent, Paying Agent and Information Agent in Germany. Additional Information for Investors in Germany The Transfer Agent, Paying Agent and Information Agent for investors in Germany is: SEB AG Ulmenstrasse 30 D Frankfurt am Main (Hereafter: SEB AG) The following documents are available at SEB AG upon request: - Detailed information relating to the purchases and sales of investments, - Latest annual and semi-annual reports, - Issue and redemption prices, - Sales Prospectus, - Agreement with the Depositary Bank (dated October 1, 2002) - Administration Agreement with SEB Invest Luxembourg S.A. (dated October 1, 2002) - Investment Adviser Agreement (dated March 1, 1993). 13