PARVEST SICAV ANNUAL REPORT. at 28/02/2014. R.C.S. Luxembourg B

Transcription

1 PARVEST SICAV ANNUAL REPORT at 28/02/2014 R.C.S. Luxembourg B

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3 Table of contents Page Organisation 5 Information 8 Manager's report 9 Audit report 13 Financial statements at 28/02/ Key figures relating to the last 3 years 40 Absolute Return Balanced 69 Absolute Return Growth 70 Absolute Return Stability 71 Bond Asia ex-japan 72 Bond Best Selection World Emerging 74 Bond Euro 76 Bond Euro Corporate 78 Bond Euro Government 82 Bond Euro High Yield 84 Bond Euro Inflation-Linked 86 Bond Euro Long Term 87 Bond Euro Medium Term 88 Bond Euro Short Term 90 Bond Europe Emerging 92 Bond JPY 93 Bond Russia 94 Bond USA High Yield 95 Bond USD 98 Bond USD Government 100 Bond World 101 Bond World Corporate 104 Bond World Emerging 108 Bond World Emerging Advanced 111 Bond World Emerging Corporate 113 Bond World Emerging Local 115 Bond World High Yield 116 Bond World Inflation-Linked 120 Commodities Arbitrage 121 Convertible Bond Asia 122 Convertible Bond Europe 123 Convertible Bond Europe Small Cap 124 Page 1

4 Table of contents Page Convertible Bond World 125 Diversified Dynamic 127 Diversified Inflation 128 Enhanced Cash 6 Months 129 Enhanced Cash 18 Months 131 Environmental Opportunities 132 Equity Australia 133 Equity Best Selection Asia ex-japan 134 Equity Best Selection Euro 135 Equity Best Selection Europe 136 Equity Best Selection Europe ex-uk 137 Equity Brazil 138 Equity Bric 139 Equity China 141 Equity Europe Emerging 142 Equity Europe Growth 143 Equity Europe Mid Cap 144 Equity Europe Small Cap 145 Equity Europe Value 146 Equity Germany 147 Equity High Dividend Europe 148 Equity High Dividend Pacific 149 Equity High Dividend USA 150 Equity India 151 Equity Indonesia 152 Equity Japan 153 Equity Japan Small Cap 154 Equity Latin America 156 Equity Nordic Small Cap 158 Equity Pacific ex-japan 159 Equity Russia 161 Equity Russia Opportunities 162 Equity South Korea 163 Equity Turkey 164 Equity USA 165 Equity USA Growth 166 Equity USA Mid Cap 167 Equity USA Small Cap 168 Page 2

5 Table of contents Page Equity World Consumer Durables 170 Equity World Emerging 171 Equity World Emerging Low Volatility 172 Equity World Energy 174 Equity World Finance 175 Equity World Health Care 176 Equity World Low Volatility 177 Equity World Materials 179 Equity World Technology 180 Equity World Telecom 181 Equity World Utilities 182 Flexible Assets EUR 183 Flexible Bond Europe Corporate 184 Flexible Bond World 186 Flexible Equity Europe 188 Global Environment 189 Green Tigers 190 Money Market Euro 191 Money Market USD 192 Multi-Strategy Low Vol 194 Multi-Strategy Medium Vol 195 Multi-Strategy Medium Vol (USD) 196 Opportunities USA 197 Opportunities World 198 Real Estate Securities Europe 200 Real Estate Securities Pacific 201 Real Estate Securities World 202 Step 80 World Emerging 203 Step 90 Commodities (EUR) 204 Step 90 Euro 205 Step 90 US 206 Sustainable Bond Euro 207 Sustainable Bond Euro Corporate 210 Sustainable Equity Europe 214 V World Commodities 219 Page 3

6 Table of contents Page Notes to the financial statements 220 Unaudited appendix 279 No subscription can be received on the basis of the financial statements alone. Subscriptions are only valid if made on the basis of the current prospectus, accompanied by the latest annual report and the most recent semi-annual report, if published thereafter. Page 4

7 Organisation Registered office of the Company 33 Rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg Board of Directors Chairman Mr. Philippe MARCHESSAUX, Chief Executive Officer, BNP Paribas Investment Partners, Paris Members Mr. Marnix ARICKX, Managing Director, BNP Paribas Investment Partners Belgium, Brussels Mr. Vincent CAMERLYNCK, CEO Asia Pacific, BNP Paribas Investment Partners, Hong Kong Mr. Christian DARGNAT, Head of Distributors Business Line, BNP Paribas Investment Partners, Paris Mrs. Marianne DEMARCHI, Head of Group Networks, BNP Paribas Investment Partners, Paris Mr. William DE VIJLDER, Vice-Chairman, BNP Paribas Investment Partners, Paris Mr. Andrea FAVALORO, Head of External Distribution, BNP Paribas Investment Partners, Paris Mr. Anthony FINAN, Deputy- Head of Distributors Business Line, BNP Paribas Investment Partners, Paris Mr. Marc RAYNAUD, Head of Global Funds Solutions, BNP Paribas Investment Partners, Paris Mr. Christian VOLLE, Chairman of the Fondation pour l Art et la Recherche, Paris Managing Director Mr. Anthony FINAN, Deputy- Head of Distributors Business Line, BNP Paribas Investment Partners, Paris Company Secretary (non-member of the Board) Mr. Stéphane BRUNET, Chief Executive Officer, BNP Paribas Investment Partners Luxembourg, Hesperange Management Company BNP Paribas Investment Partners Luxembourg, 33 Rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg BNP Paribas Investment Partners Luxembourg is a Management Company as defined in chapter 15 of the law of 17 December 2010 concerning undertakings for collective investment, as amended. The Management Company performs the administration, portfolio management and marketing duties. Responsibility for calculating net asset values is delegated to: BNP Paribas Securities Services, Luxembourg Branch, 33 Rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg The responsibilities of transfer agent and registrar are delegated to: BNP Paribas Securities Services, Luxembourg Branch, 33 Rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg Page 5

8 Organisation Responsibility for portfolio management is delegated to: Management entities of the BNP Paribas Group Alfred Berg Kapitalforvaltning AS, Olav V gate 5, NO-0161 Oslo, Norway (since 1 November 2013) Alfred Berg Kapitalförvaltning AB Nybrokajen 5, SE Stockholm, Sweden (since 1 November 2013) BNP Paribas Asset Management S.A.S., 1 Boulevard Haussmann, F Paris, France BNP Paribas Asset Management Inc., 75 State Street, Suite 2700, Boston, Massachusetts, 02109, USA BNP Paribas Asset Management Brasil Ltda, Av. Juscelino Kubitchek Andar, Sao Paulo SP, Brazil BNP Paribas Investment Partners Asia Ltd., 30/F Three Exchange Square, 8 Connaught Place, Central Hong Kong BNP Paribas Investment Partners Australia Ltd., 60 Castlereagh Street, NSW 2000, Sydney, Australia (since 1 November 2013) BNP Paribas Investment Partners Japan Ltd., Gran Tokyo North Tower, 9-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo , Japan BNP Paribas Investment Partners Netherlands N.V., Burgerweeshuispad Tripolis 200, PO box 71770, NL-1008 DG Amsterdam, The Netherlands BNP Paribas Investment Partners Singapore Limited, 20 Collyer Quay Tung Center #01-01, Singapore BNP Paribas Investment Partners UK Ltd., 5 Aldermanbury Square, London EC2V 7BP, United Kingdom CamGestion S.A., 1, Boulevard Haussmann, F Paris, France Fischer Francis Trees & Watts, Inc., 200 Park Avenue, 11 th floor, New York, NY 10166, USA Fischer Francis Trees & Watts UK Ltd., 5 Aldermanbury Square, London EC2V 7HR, United Kingdom FOURPOINTS Investment Managers, 13/15 rue de la Baume, Paris, France (until 1 November 2013) Shinhan BNP Paribas Asset Management Co. Ltd., 23-2, Yoido Dong Youngdeungpo, Goodmorniong Shinhan Tower 18F, Seoul, , Korea THEAM S.A.S., 1 Boulevard Haussmann, F Paris, France TEB Portföy Yönetimi A.Ş., Gayrettepe Mahallesi Yener Sokak n 1 Kat. 9 Besiktas Istanbul, Turkey (since 1 November 2013) Pzena Investment Management, 120 West 45th Street, 20th Floor, New York, NY 10036, USA (until 1 November 2013) Management entities not part of the Group: Arnhem Investment Management Pty Ltd., Royal Exchange Building, Level 13, 56 Pitt Street, Sydney NSW 2000, Australia Fairpointe Capital LLC., One North Franklin Street, Suite 3300, Chicago, IL 60606, USA Impax Asset Management Limited Plc., Norfolk House, 31 St James s Square, London, SW1Y 4JR, United Kingdom Neuflize Private Assets (NPA) S.A., 3 Avenue Hoche, F-75008, Paris, France (absorbed by Neuflize OBC Investissements on 2 January 2014) RiverRoad Asset Management, LLC, 462 South Fourth Street, Suite 1600 Louisville, Kentucky , USA Sumitomo Mitsui Asset Management Co. Ltd., Atago Green Hills, Mori Tower, 28F, Atago Minato-ku, Tokyo , Japan (since 1 November 2013) The Company may also seek advice from the following investment advisors: FundQuest Advisor, 1 Boulevard Haussmann, F Paris, France, Advisor on the selection of portfolio managers from outside the Group TKB BNP Paribas Investment Partners JSC, Marata Street, d liter A, St. Petersburg, Russian Federation Page 6

9 Organisation Depositary/Paying agent BNP Paribas Securities Services, Luxembourg Branch, 33 Rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg Guarantor BNP Paribas, 16 Boulevard des Italiens, F Paris, France The sub-funds which benefit from a guarantee are Step 80 World Emerging, Step 90 Commodities (EUR), Step 90 Euro and Step 90 US, together the Step sub-funds. Auditor PricewaterhouseCoopers, Société coopérative, 400 Route d Esch, B.P. 1443, L-1014 Luxembourg, Grand Duchy of Luxembourg Page 7

10 Information Establishment PARVEST (the Fund, the Company ) is an open-ended investment company (Société d Investissement à Capital Variable SICAV) incorporated under Luxembourg law on 27 March 1990 for an indefinite period. The Company is currently governed by the provisions of Part I of the law of 17 December 2010 governing undertakings for collective investment, as amended, as well as by Directive 2009/65. The Articles of Association have been modified at various times, most recently at the Extraordinary General Meeting on 26 October 2011, with publication in the Mémorial, Recueil Spécial des Sociétés et Associations on 5 January The latest version of the Articles of Association has been filed with the Registrar of the District Court of Luxembourg, where any interested party may consult it and obtain a copy. The Company is registered in the Luxembourg Trade and Companies Register under the number B The minimum capital amounts to EUR It is at all times equal to the total net of the various sub-funds. It is represented by fully paid-up shares issued without a designated par value. The capital varies automatically without the notification and specific recording measures required for increases and decreases in the capital of limited companies. Listing The shares of the Company s are not listed on a Stock Exchange. Information to the Shareholders Net Asset Values and Dividends The Company publishes the legally required information in the Grand Duchy of Luxembourg and in all other countries where the shares are publicly offered. This information is also available on the website: Financial Year The Company s financial year starts on 1 March and ends on the last day of February. Financial Reports The Company publishes an annual report closed on the last day of the financial year, certified by the auditors, as well as a non-certified, semi-annual interim report closed on the last day of the sixth month of the financial year. The Company is authorised to publish a simplified version of the financial report when required. The financial reports of each sub-fund are published in the accounting of the sub-fund, although the consolidated accounts of the Company are expressed in euro. The annual report is made public within four months of the end of the financial year and the interim report within two months of the end of the half-year. Documents for Consultation The Articles of Association, the Prospectus, the KIID and periodic reports may be consulted at the Company s registered office and at the establishments responsible for the Company s financial service. Copies of the Articles of Association and the annual and interim reports are available upon request. Information on changes to the Company will be published in the Luxemburger Wort newspaper and in any other newspapers deemed appropriate by the Board of Directors in countries in which the Company publicly markets its shares. Documents and information are also available on the website: Page 8

11 Manager's report Context From the start of the period under review, investors' attention turned to the actions of central banks, which remained resolutely in easing mode despite an improving economic situation (better manufacturing data, the eurozone's emergence from recession and stronger world trade). The combination of somewhat stronger global growth and the continuation of highly accommodative monetary policy in the G3 countries resulted in healthy growth for risky and relatively moderate pressure on long-dated yields, albeit with some spikes in volatility. In early 2014, meteorological conditions in the United States and political tensions in several emerging countries (particularly Ukraine) weighed on confidence without actually affecting global growth. United States After a lacklustre start to the year, the US economy returned to the modest growth (just above 2%) witnessed since the end of the recession in mid The dramatic events surrounding budgetary policy hampered growth in early 2013 and led to a temporary government shutdown in October following the deadlock in Congress. The compromise reached in Washington in December staved off the risk of a further incident of this kind, with the budget for the current fiscal year being passed and Congress voting in February 2014 for an agreement on the debt ceiling. After months of budgetary uncertainty, attention shifted to the extreme weather conditions. Large areas of the country were hit by an Arctic cold front, which impacted on growth in late 2013 and early 2014, causing domestic heating bills to rise and output to fall (halting construction, preventing employees from going to work, reducing footfall at retail outlets, deterring theatre audiences and disrupting transport). Although GDP had gathered pace in the second half to stand at 2.5% year-on-year at the end of 2013 (against 1.3% in the first quarter), it levelled off in early Several indicators confirm that the dip was caused by the severe weather. In addition, the inventory cycle, a familiar aspect of the US economy, has also contributed to the sudden slowdown in recent months after the restocking witnessed at the end of The labour market has not yet fully recovered and inflation shows no sign of picking up. In this context, the US Federal Reserve began very cautiously and gradually to adjust its monetary policy in early 2014 and says that it will keep interest rates at close to zero for the foreseeable future. Europe The beginning of the period marked a low point for most economic surveys in the eurozone. Purchasing Managers' Indexes (PMI) climbed above 50 from July. The composite index (which includes both manufacturing and services) rose from 46.5 in March 2013 to 53.3 in February 2014, its highest since June This improvement is also visible in the national accounts: after six consecutive quarters of contraction, eurozone GDP grew by 0.3% in the second quarter compared with the first quarter, 0.1% in the third quarter, and 0.3% in the fourth quarter. As a result, GDP became positive at the end of 2013 (+0.5% year-on-year) for the first time since the end of The recovery continued to take hold in early 2014: growth could eventually outstrip forecasts (estimated at just over 1%), particularly if there is a significant increase in business investment, which already seems to be the case in Germany. In France, however, average GDP growth of 0.3% in 2013 was mainly driven by consumer and public spending, while investment has been contracting for two years. Peripheral countries have also returned to growth, with structural reforms and a competitiveness drive finally paying off and smoothing imbalances. In this respect, Spain and Portugal now seem better positioned than Italy, which has almost seen a lost year for reforms because of the political situation: the formation of a government after the February 2013 elections was slow due to the balance of power in Parliament. As a result, politics has come before economic concerns in Rome in recent months. In February 2014, the appointment of a new centre-left Prime Minister (Matteo Renzi), who has declared his willingness to pursue reforms while supporting the economy, seemed to mark a turning point. Beyond the cyclical improvement in the euro area, low inflation (0.7% in February 2014, versus 1.8% a year earlier) and the continued contraction in lending to businesses are undermining the recovery, which explains why the European Central Bank is maintaining a downward bias for its monetary policy. Page 9

12 Manager's report Japan Growth was buoyed in the first half of 2013 by the short-term effects of Abenomics (the economic policies of Prime Minister Shinzo Abe). However, it ran out of steam in the second half, with GDP growth of just 0.2% in the third and fourth quarters, compared with more than 1% previously. In early 2014, the pace of economic activity began to pick up, with growth in consumer spending ahead of the April VAT increase triggering a rise in output to meet demand. At the same time, the Bank of Japan maintained its highly ambitious monetary policy (to double the monetary base in two years) introduced in April. At year-end, it decided to extend the bank lending facility to allow unconventional monetary measures to feed through to the real economy, however contrary to expectations it did not raise its quantitative easing target. In this context, the fall in the yen was much less pronounced than in the autumn of Due to the rising cost of imports, inflation stood at 1.4% in January 2014 against -0.9% in March Emerging markets While growth in emerging regions remained below its potential, the last few months have seen significant and asset shocks triggered by the normalisation of the Fed's monetary policy. Investor reactions have highlighted the poor fundamentals in several key or emblematic countries such as Brazil, India or even Argentina. The central banks concerned were quick to raise key interest rates, although at the same time the authorities have questioned the Fed's attitude. Janet Yellen disclosed that the Fed would address concerns over the impact of tapering its asset purchases. The slowdown in activity in China is another source of concern, although it is likely that every effort will be made to meet the GDP growth target of 7.5% (after averaging 7.7% in 2013). Finally, the perception of political risk has soared following the violent protests in Thailand, Turkey and Venezuela and, of course, the crisis between Russia and Ukraine. The economic recovery is long overdue and significant differences have emerged between regions, with problems mounting in Latin America (inflation, current account deficit), while Asia and emerging Europe seem more able to benefit from the upturn in developed economies. Monetary policy Faced with still-modest growth and very low inflation, the ECB lowered its key interest rates in May and November. The refi rate is now 0.25% and the marginal lending facility 0.75%. The deposit rate has been 0% since July Since July 2013, the ECB has provided forward guidance on interest rates, confirming that they will remain at present or lower levels for an extended period. In addition, fixed rate tender procedures with full allotment will continue at least until mid Despite the reminder that the arsenal of unconventional measures at its disposal was broad and that it would act if necessary, the ECB has still not taken the plunge: no new LTROs (long-term refinancing operations), no asset purchases and no negative deposit rate have been announced. The ECB has endeavoured in recent months to avoid any pressure on money market rates. In the spring of 2013, the Fed raised the prospect of an end to the third round of quantitative easing (QE) in place since late 2012 and consisting of the purchase of USD 85 billion of securities each month. The markets are poised for a decision, even though Ben Bernanke and Janet Yellen, who succeeded him as Fed chair in February 2014, have confirmed that the target rate for federal funds (0% to 0.25% since December 2008) would remain unchanged for a considerable time. The Fed waited until its last meeting of 2013 before announcing a modest tapering of purchases (a reduction of USD 10 billion) in view of the improvement in economic activity, and reiterated its accommodative message on key interest rates. These purchases were reduced to USD 65 billion in February and it is likely that each monetary policy meeting in 2014 will result in a further reduction of USD 10 billion. Janet Yellen also confirmed that the unemployment rate (which fell from 7.7% in February 2013 to 6.7% a year later) was not the only measure used to assess the labour market and reiterated the highly accommodative message on key interest rates. Currency markets The euro, which stood at nearly USD 1.31 at the beginning of the period, hovered between USD 1.28 and USD 1.34 until August. The ECB's commitment to maintain very low key interest rates for an extended period evidently weighed on the, although the markets seemed more sensitive to comments from the US. The Fed's decision not to change its monetary policy in September (when QE tapering was expected to begin) forced the euro above USD 1.35 on 18 September. Thereafter, the fluctuation band of the EUR/USD exchange rate shifted upwards to settle at between 1.34 and In the absence of unconventional measures, the downward bias confirmed by the ECB had no lasting impact on exchange rates. The same can be said for hints from several members of the Executive Board that the deposit rate could become negative and the explicit statement that the risk of deflation could increase if the euro was too strong. Page 10

13 Manager's report At the end of 2013, the euro had returned to its highest level in real terms since mid-2011, before falling back slightly. It rose by 3.3% in a year against a basket of currencies. Towards the latter part of the year, the EUR/USD exchange rate was mainly influenced by changes in risk appetite and expectations surrounding US monetary policy. It closed at (+5.5% in 12 months). The pledge made by Prime Minister Shinzo Abe, elected at the end of 2012, that he would require the new governor of the Bank of Japan (BoJ) to introduce a much more aggressive asset purchasing policy was deemed credible. The BoJ, which increased its inflation target from 1% to 2% in January 2013, announced a special monetary expansion programme on 4 April (doubling the monetary base in two years). International summits were held with no specific comments on the yen, which led investors to conclude that it could be allowed to fall further. As a result, the USD/JPY exchange rate broke through the 100 mark on 9 May (against at the end of February). The unwinding of carry trade positions linked to increasing jitters in the financial markets disrupted this trend and drove the exchange rate below 95 on occasions in June. Subsequently the USD/JPY rate drifted sideways until the start of November when it resumed its rise to end 2013 at , its highest since October It has since levelled off, returning to 102 in late January and closing at at the end of February 2014 (+10.5% in 12 months). The EUR/JPY rate climbed 16.6% to after reaching 145 at the end of 2013, an all-time high. While many had hoped for further quantitative easing before the VAT increase on 1 April, the BoJ only made minor adjustments to its monetary policy in the first quarter of Bond markets Heavy pressure on US long-dated yields was evident from May on owing to expectations regarding the Fed s quantitative easing policy. A sharp correction occurred in the spring of 2013 when Ben Bernanke first mentioned the tapering of asset purchases. The 10-year rate reached 3% in early September (compared with 1.88% at the beginning of the period). It has since fluctuated within a broad range, depending on economic indicators, expectations and decisions on QE and changes in risk appetite. Between September and February, the yield on the 10-year T-note ranged between 2.50% and 3% to finish the period at 2.65%, i.e. a 12-month rise of 77 bps. An announcement that key interest rates will remain at their current level for a considerable time also seems credible. Over 12 months, the 2-year rate climbed 9 bps to close at 0.32%. European markets outperformed their US counterparts as a result of the ECB's two rate cuts in May and November, the continuing downward bias in monetary policy, very low inflation and modest economic growth. The 10-year Bund yield rose just 17 bps over 12 months, regaining its status as a safe haven at the end of the period following events in Ukraine. It closed at 1.62%. The outperformance was even more pronounced for Spanish and Italian yields, which have returned to their lowest level since early 2006, at around 3.50%. Over the year they fell sharply (by 159 bps and 125 bps respectively for 10-year bonds) in response to the ECB's undertaking in the summer of 2012, which encouraged investors to take advantage of the carry trade in an interest rate environment deemed calm as a result of the Outright Monetary Transactions (which are in fact yet to be activated) and the prospect of key interest rates being kept low for a long time. The fall was accentuated in early 2014 as the outlook for these economies brightened. Equity markets The last 12 months have seen several spikes in equity market volatility (over 20% for the VIX index, calculated on S&P 500 options in June, October and January). The first share sell-off occurred in the spring, when investors were unnerved by Ben Bernanke's statements about a possible tapering of the asset purchases that the Fed makes each month as part of its quantitative easing programme. There was widespread selling of shares and some emerging currencies. The markets rallied on the back of improved economic data and the Fed's assurance that the normalisation of its monetary policy would remain moderate. The drama surrounding the budget before the US Congress, which led to the temporary closure of federal agencies during the first half of October, briefly spooked investors in the autumn. Lastly, while the tapering announcement (postponed until December) did not prevent the S&P 500 Index from posting a new record in late 2013, the geopolitical situation and concerns over emerging economies sowed doubt in early Equities have undergone a sharp correction since 23 January. The publication of disappointing PMI data in China and the sharp depreciation of several emerging currencies (e.g. the Argentine peso, Turkish lira, rouble, Indian rupee, South African rand) explain this reaction. Investors are starting to focus on weaknesses (inflation, external deficits) in some emerging economies, at a time when the normalisation of US monetary policy is eventually expected to reduce available liquidity. The fall in shares was widespread, despite the satisfactory results of companies in the United States and upbeat economic indicators in the eurozone. Page 11

14 Manager's report These factors may explain why investors switched to equities in February, even as geopolitical risks increased with the events in Ukraine. Despite the insistence of central banks in major developed countries that their highly accommodative monetary policy would continue, risk appetite continued to fluctuate at the end of the period. Emerging markets recorded an annual fall of 8.4% (MSCI Emerging Markets Index in US dollars), a significant underperformance relative to the MSCI AC World (in dollars), up 15.7%. European and US indices (in local currencies) were evenly matched, with a rise of 19.6% in the Eurostoxx 50 and 22.8% in the S&P 500 (which closed at a new record of nearly 1,860 points), while the Nikkei 225 outperformed forecasts (+28.4%). The Board of Directors Luxembourg, 10 April 2014 Note: The information stated in this report is historical and not necessarily indicative of future performance. Page 12

15 Audit report To the Shareholders of PARVEST We have audited the accompanying financial statements of PARVEST and of each of its sub-funds, which comprise the statement of net and the securities portfolio as at 28 February 2014 and the statement of operations and changes in net for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the SICAV 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 judgment 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. PricewaterhouseCoopers, Société coopérative, 400 Route d Esch, B.P. 1443, L-1014 Luxembourg T: , F: , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) R.C.S. Luxembourg B TVA LU Page 13

16 Opinion In our opinion, the financial statements give a true and fair view of the financial position of PARVEST and of each of its sub-funds as of 28 February 2014, and of the results of their operations and changes in their net for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other matters Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. PricewaterhouseCoopers, Société coopérative Luxembourg, 4 June 2014 Represented by Thierry Blondeau Page 14

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18 Financial statements at 28/02/2014 Absolute Return Balanced Absolute Return Growth Absolute Return Stability Bond Asia ex- Japan Expressed in EUR EUR EUR USD Notes Statement of net Assets Securities portfolio at cost price Unrealised gain/(loss) on securities portfolio ( ) Securities portfolio at market value Net Unrealised gain on financial instruments 2,9,10, Cash at banks and time deposits Other Liabilities Bank overdrafts Net Unrealised loss on financial instruments 2,9,10, Other liabilities Net asset value Statement of operations and changes in net Income on investments and Management and advisory fees Bank interest Interest on swaps Other fees Taxes Performance fees Distribution fees Transaction fees Total expenses Net result from investments ( ) ( ) ( ) Net realised result on: Investments securities 2 (60 106) ( ) Financial instruments ( ) ( ) ( ) Net realised result ( ) ( ) ( ) ( ) Movement on net unrealised gain/loss on: Investments securities ( ) Financial instruments ( ) (14 816) Change in net due to operations ( ) ( ) ( ) ( ) Net subscriptions/(redemptions) Dividends paid ( ) Increase/(Decrease) in net during the year/period Net at the beginning of the financial year/period Reevaluation of opening consolidated NAV Net at the end of the financial year/period Page 16

19 Bond Best Selection World Emerging Bond Euro Bond Euro Corporate Bond Euro Government Bond Euro High Yield Bond Euro Inflation-Linked USD EUR EUR EUR EUR EUR ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) (9 260) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) Page 17

20 Financial statements at 28/02/2014 Bond Euro Long Term Bond Euro Medium Term Bond Euro Short Term Bond Europe Emerging Statement of net Expressed in EUR EUR EUR EUR Notes Assets Securities portfolio at cost price Unrealised gain/(loss) on securities portfolio ( ) Securities portfolio at market value Net Unrealised gain on financial instruments 2,9,10, Cash at banks and time deposits Other Liabilities Bank overdrafts Net Unrealised loss on financial instruments 2,9,10, Other liabilities Net asset value Statement of operations and changes in net Income on investments and Management and advisory fees Bank interest Interest on swaps Other fees Taxes Performance fees Distribution fees Transaction fees Total expenses Net result from investments Net realised result on: Investments securities 2 ( ) ( ) ( ) Financial instruments Net realised result ( ) Movement on net unrealised gain/loss on: Investments securities ( ) ( ) Financial instruments 0 ( ) Change in net due to operations ( ) Net subscriptions/(redemptions) ( ) ( ) Dividends paid 7 ( ) ( ) ( ) 0 Increase/(Decrease) in net during the year/period ( ) Net at the beginning of the financial year/period Reevaluation of opening consolidated NAV Net at the end of the financial year/period Page 18

21 Bond JPY Bond Russia Bond USA High Yield Bond USD Bond USD Government Bond World JPY USD USD USD USD EUR (59 327) ( ) ( ) (13 108) ( ) ( ) ( ) ( ) 0 ( ) (72 187) ( ) ( ) ( ) (59 327) ( ) ( ) ( ) ( ) (15 169) ( ) ( ) ( ) ( ) ( ) ( ) ( ) 0 ( ) (29 552) (57 159) 0 ( ) ( ) ( ) Page 19

22 Financial statements at 28/02/2014 Bond World Corporate Bond World Emerging Bond World Emerging Advanced Bond World Emerging Corporate Statement of net Expressed in USD USD USD USD Notes Assets Securities portfolio at cost price Unrealised gain/(loss) on securities portfolio ( ) ( ) ( ) Securities portfolio at market value Net Unrealised gain on financial instruments 2,9,10, Cash at banks and time deposits Other Liabilities Bank overdrafts Net Unrealised loss on financial instruments 2,9,10, Other liabilities Net asset value Statement of operations and changes in net Income on investments and Management and advisory fees Bank interest Interest on swaps Other fees Taxes Performance fees Distribution fees Transaction fees Total expenses Net result from investments Net realised result on: Investments securities ( ) ( ) ( ) Financial instruments (55 857) ( ) ( ) Net realised result ( ) ( ) Movement on net unrealised gain/loss on: Investments securities ( ) ( ) ( ) Financial instruments ( ) (47 813) Change in net due to operations ( ) ( ) ( ) Net subscriptions/(redemptions) ( ) ( ) Dividends paid 7 ( ) ( ) 0 (1) Increase/(Decrease) in net during the year/period ( ) ( ) Net at the beginning of the financial year/period Reevaluation of opening consolidated NAV Net at the end of the financial year/period Page 20

23 Bond World Emerging Local Bond World High Yield Bond World Inflation-Linked Commodities Arbitrage Convertible Bond Asia Convertible Bond Europe USD EUR EUR USD USD EUR ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) (29 829) ( ) ( ) ( ) (25 082) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) 0 0 ( ) ( ) ( ) ( ) ( ) Page 21

24 Financial statements at 28/02/2014 Convertible Bond Europe Small Cap Convertible Bond World Diversified Dynamic Diversified Inflation Statement of net Expressed in EUR EUR EUR EUR Notes Assets Securities portfolio at cost price Unrealised gain/(loss) on securities portfolio Securities portfolio at market value Net Unrealised gain on financial instruments 2,9,10, Cash at banks and time deposits Other Liabilities Bank overdrafts Net Unrealised loss on financial instruments 2,9,10, Other liabilities Net asset value Statement of operations and changes in net Income on investments and Management and advisory fees Bank interest Interest on swaps Other fees Taxes Performance fees Distribution fees Transaction fees Total expenses Net result from investments ( ) (1 921) Net realised result on: Investments securities ( ) Financial instruments ( ) Net realised result ( ) Movement on net unrealised gain/loss on: Investments securities ( ) (14 347) Financial instruments Change in net due to operations ( ) Net subscriptions/(redemptions) (61 609) Dividends paid 7 ( ) 0 ( ) 0 Increase/(Decrease) in net during the year/period ( ) Net at the beginning of the financial year/period Reevaluation of opening consolidated NAV Net at the end of the financial year/period Page 22

25 Enhanced Cash 6 Months Enhanced Cash 18 Months Environmental Opportunities Equity Australia Equity Best Selection Asia ex- Japan Equity Best Selection Euro EUR EUR EUR AUD EUR EUR ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) (64 160) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) (65 907) ( ) ( ) ( ) ( ) ( ) (84 323) ( ) 0 0 ( ) ( ) ( ) Page 23

26 Financial statements at 28/02/2014 Equity Best Selection Europe Equity Best Selection Europe ex-uk Equity Brazil Equity Bric Statement of net Expressed in EUR EUR USD USD Notes Assets Securities portfolio at cost price Unrealised gain/(loss) on securities portfolio ( ) ( ) Securities portfolio at market value Net Unrealised gain on financial instruments 2,9,10, Cash at banks and time deposits Other Liabilities Bank overdrafts Net Unrealised loss on financial instruments 2,9,10, Other liabilities Net asset value Statement of operations and changes in net Income on investments and Management and advisory fees Bank interest Interest on swaps Other fees Taxes Performance fees Distribution fees Transaction fees Total expenses Net result from investments ( ) Net realised result on: Investments securities 2 ( ) ( ) ( ) Financial instruments ( ) ( ) Net realised result ( ) ( ) ( ) Movement on net unrealised gain/loss on: Investments securities ( ) ( ) Financial instruments Change in net due to operations ( ) ( ) Net subscriptions/(redemptions) ( ) ( ) Dividends paid 7 0 (57 857) ( ) ( ) Increase/(Decrease) in net during the year/period ( ) ( ) Net at the beginning of the financial year/period Reevaluation of opening consolidated NAV Net at the end of the financial year/period Page 24