Bank of China International (BOCI) Commerzbank

Transcription

1 Bank of China International (BOCI) Commerzbank Société d Investissement à Capital Variable Semi-Annual Report From October 29, 2015 (date of incorporation) to June 30, 2016 No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus and relevant Key Investor Information Document ("KIID") which will be accompanied by a copy of the latest available annual report and a copy of the latest available semi-annual report, if published thereafter.

2 Table of Contents Board of Directors 2 Statistics 4 Shanghai Stock Exchange 50 A Share Index UCITS ETF* Statement of Net Assets as at June 30, Statement of Operations and Changes in Net Assets for the period ended June 30, Statement of Changes in Number of Shares 5 Securities Portfolio as at June 30, Portfolio Breakdowns 7 Top Ten Holdings 7 Notes to the Financial Statements 8 1

3 Board of Directors Registered office of the Company 60, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Board of Directors of the Company Mr. Peter Corner, Chairman of the Board of Directors Commerzbank AG, London Branch, 30, Gresham Street, EC2P 2XY London, United Kingdom Mr. Mathias Turra, Member of the Board of Directors Commerz Funds Solutions S.A., 25, rue Edward Steichen, L-2540 Luxembourg, Grand Duchy of Luxembourg Mr. Jörg Geiben, Member of the Board of Directors Commerzbank AG, Mainzer Landstraße 153, D Frankfurt am Main, Germany Dr. Qi Chen, Member of the Board of Directors Commerz Funds Solutions S.A., 25, rue Edward Steichen, L-2540 Luxembourg Management Company Commerz Funds Solutions S.A. 25, rue Edward Steichen L-2540 Luxembourg, Grand Duchy of Luxembourg Board of Directors of the Management Company Mr. Thomas Timmermann, Chairman of the Board of Directors Commerzbank AG, Mainzer Landstraße 153, D Frankfurt am Main, Germany Mr. Hermann Berger Commerzbank AG, Mainzer Landstraße 153, D Frankfurt am Main, Germany Mr. Peter Corner Commerzbank AG, London Branch, 30, Gresham Street, EC2P 2XY London, United Kingdom Mr. Thomas Meyer zu Drewer Commerzbank AG, Mainzer Landstraße 153, D Frankfurt am Main, Germany Mr. Andreas Neumann Commerzbank AG, Mainzer Landstraße 153, D Frankfurt am Main, Germany Mr. Mathias Turra Commerz Funds Solutions S.A., 25, rue Edward Steichen, L-2540 Luxembourg, Grand Duchy of Luxembourg Mr. Roberto Vila Commerzbank AG, London Branch, 30, Gresham Street, EC2P 2XY London, United Kingdom Investment Manager Commerzbank AG, Mainzer Landstraße 153, D Frankfurt am Main, Germany Sub-Investment Manager of the Subfund Shanghai Stock Exchange 50 A Share Index UCITS ETF BOCI-Prudential Asset Management Limited 27/F, Bank of China Tower, 1 Garden Road, Hong Kong Custodian and Paying Agent BNP Paribas Securities Services - Luxembourg Branch 60, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg 2

4 Board of Directors (continued) Registrar and Transfer Agent BNP Paribas Securities Services - Luxembourg Branch 60, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Administrator and Domiciliary Agent BNP Paribas Securities Services - Luxembourg Branch 60, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Auditor PricewaterhouseCoopers, Société coopérative 2 rue Gerhard Mercator, B.P L-1014 Luxembourg Grand Duchy of Luxembourg Bank of China International (BOCI) Commerzbank 3

5 Statistics June 30, 2016 December 31, 2015 December 31, 2014 Shanghai Stock Exchange 50 A Share Index UCITS ETF* Net Asset Value Net asset value per share CNH 17,805, A RMB D CNH Number of shares A RMB D 210, * The Sub-Fund has been launched on November 12, 2015 The accompanying notes are an integral part of these financial statements. 4

6 Shanghai Stock Exchange 50 A Share Index UCITS ETF* (in CNH) Statement of Operations Net Assets and as at Changes June 30, in Net 2016Assets for the Statement of Operations and Changes in Net Assets for period ended June 30, 2016 the period ended June 30, 2016 Notes CNH Notes CNH Assets Investment in securities at cost ,023, Unrealised appreciation / (depreciation) on securities (1,507,876.41) Investment in securities at market value ,515, Cash at bank 399, Total assets 17,915, Liabilities Accrued expenses 106, Other liabilities 4, Total liabilities 110, Net assets at the end of the period 17,805, * The Sub-Fund has been launched on November 12, 2015 Income Dividends (net of withholding taxes) 127, Bank interest Other income 10, Total income 138, Expenses All in fees 5 59, Transaction costs 7 21, Other expenses 6 124, Total expenses 205, Net investment income / (loss) (67,130.62) Net realised gain / (loss) on: Investments (448,829.80) Net realised gain / (loss) for the period (515,960.42) Net change in unrealised appreciation / (depreciation) on: Investments (1,507,876.41) Increase / (Decrease) in net assets as a result of operations (2,023,836.83) Proceeds received on subscription of shares 19,828, Net amount paid on redemption of shares - Net assets at the beginning of the period - Net assets at the end of the period 17,805, Statement of Changes in Number of Shares Number of shares in issue at the beginning of the period Number of shares subscribed Number of shares redeemed Number of shares in issue at the end of the period A RMB D - 210, , The accompanying notes are an integral part of these financial statements. 5

7 Securities Portfolio as at June 30, 2016 Bank of China International (BOCI) Commerzbank Shanghai Stock Exchange 50 A Share Index UCITS ETF* (in CNH) Quantity/ Nominal Name Currency Market value % in CNH NAV Quantity/ Nominal Name Currency Market value % in CNH NAV Banks Other transferable securities Shares 170, AGRICULTURAL BANK OF CHINA-A CNH 542, , BANK OF BEIJING CO LTD -A CNH 467, , BANK OF CHINA LTD-A CNH 574, , BANK OF COMMUNICATIONS CO-A CNH 580, , CHINA CITIC BANK CORP LTD-A CNH 92, , CHINA EVERBRIGHT BANK CO-A CNH 264, , CHINA MERCHANTS BANK-A CNH 811, , CHINA MINSHENG BANKING-A CNH 918, , IND + COMM BK OF CHINA - A CNH 477, , INDUSTRIAL BANK CO LTD -A CNH 909, , SHANGHAI PUDONG DEVEL BANK-A CNH 572, Insurance 6,211, , CHINA LIFE INSURANCE CO-A CNH 150, , CHINA PACIFIC INSURANCE GR-A CNH 371, , NEW CHINA LIFE INSURANCE C-A CNH 109, , PING AN INSURANCE GROUP CO-A CNH 1,505, Financial services 2,136, , CHINA MERCHANTS SECURITIES-A CNH 187, , CITIC SECURITIES CO-A CNH 528, , GUOTAI JUNAN SECURITIES CO-A CNH 109, , HAITONG SECURITIES CO LTD-A CNH 528, , HUATAI SECURITIES CO LTD-A CNH 250, , INDUSTRIAL SECURITIES CO-A CNH 154, , ORIENT SECURITIES CO LTD-A CNH 201, , SINOLINK SECURITIES CO LTD-A CNH 101, Energy 2,061, , CHINA NATIONAL NUCLEAR POW-A CNH 295, , CHINA PETROLEUM + CHEMICAL-A CNH 324, , GD POWER DEVELOPMENT CO -A CNH 846, , PETROCHINA CO LTD-A CNH 340, Food services 1,806, , INNER MONGOLIA YILI INDUS-A CNH 370, , KWEICHOW MOUTAI CO LTD-A CNH 691, Transportation 1,061, , DAQIN RAILWAY CO LTD -A CNH 859, Building materials 859, , CHINA COMMUNICATIONS CONST-A CNH 71, , CHINA RAILWAY CONSTRUCTION-A CNH 150, , CHINA RAILWAY GROUP LTD-A CNH 390, , POWER CONSTRUCTION CORP OF-A CNH 104, Real estate 717, , CHINA STATE CONSTRUCTION -A CNH 348, , POLY REAL ESTATE GROUP CO -A CNH 266, Auto Parts & Equipment 615, , CHINA SHIPBUILDING INDUSTR-A CNH 169, , SAIC MOTOR CORP LTD-A CNH 314, Metal 484, , CHINA NORTHERN RARE EARTH -A CNH 130, , CHINA SHENHUA ENERGY CO-A CNH 144, , INNER MONGOLIA BAOTOU STE-A CNH 127, , Diversified machinery 40, CRRC CORP LTD-A CNH 374, Telecommunication 374, , CHINA UNITED NETWORK-A CNH 239, Cosmetics 239, , KANGMEI PHARMACEUTICAL CO-A CNH 231, Distribution & Wholesale 231, , SHANGHAI ORIENTAL PEARL ME-A CNH 201, Aerospace & Defense 201, , AVIC AVIATION ENGINE CORP-A CNH 114, , ,515, Total securities portfolio 17,515, Summary of net assets Total securities portfolio Cash at bank Other assets and liabilities Total net assets % NAV 17,515, , (110,588.02) (0.63) 17,805, The accompanying notes are an integral part of these financial statements. 6

8 Shanghai Stock Exchange 50 A Share Index UCITS ETF* (in CNH) Portfolio Breakdowns Nature allocation % of portfolio % of net assets Shares Country allocation % of portfolio % of net assets China Top Ten Holdings Top Ten Holdings Sector Market value % of net CNH assets PING AN INSURANCE GROUP CO-A Insurance 1,505, CHINA MINSHENG BANKING-A Banks 918, INDUSTRIAL BANK CO LTD -A Banks 909, DAQIN RAILWAY CO LTD -A Transportation 859, GD POWER DEVELOPMENT CO -A Energy 846, CHINA MERCHANTS BANK-A Banks 811, KWEICHOW MOUTAI CO LTD-A Food services 691, BANK OF COMMUNICATIONS CO-A Banks 580, BANK OF CHINA LTD-A Banks 574, SHANGHAI PUDONG DEVEL BANK-A Banks 572, The accompanying notes are an integral part of these financial statements. 7

9 Notes to the Financial Statements as at June 30, 2016 Note 1 - General Bank of China International (BOCI) Commerzbank, SICAV (the Company ) is registered in the Grand Duchy of Luxembourg as an undertaking for collective investments in transferable securities in accordance with Part I of the law of December 17, 2010 concerning undertakings for collective investments, as amended. The Company was established for an unlimited period on October 29, 2015 in the Grand Duchy of Luxembourg as an open-ended investment company with variable capital ( société d investissement à capital variable ). The Company is governed by the Luxembourg law of August 10, 1915 on commercial companies, as amended, as well as Part I of the 2010 Law. The original version of the Articles of Association was published on November 9, 2015 in the Mémorial, Recueil des Sociétés et Associations ( Mémorial ). The Company is registered with Luxembourg Registre de Commerce et des Sociétés (R.C.S.) under number B The Company's registered office is 60 avenue J.F. Kennedy, L-1855 Luxembourg. The Company's minimum capital, which always corresponds to the value of its net assets, is EUR 1,250, Bank of China International (BOCI) Commerzbank Shanghai Stock Exchange 50 A Share Index UCITS ETF is a distributing fund, any dividends and other income can be distributed. The intention is to determine annual distributions. As at June 30, 2016, only Bank of China International (BOCI) Commerzbank Shanghai Stock Exchange 50 A Share Index UCITS ETF Sub-Fund (launched on November 12, 2015) is open to investors and offers the share classe A (RMB) D. Note 2 - Principle Accounting Policies 1) Presentation of financial statements The financial statements are presented in accordance with the legal and regulatory requirements in force in Luxembourg relating to Undertakings for Collective Investment and they are prepared in accordance with accounting principles generally accepted. 2) Valuation of the investments in securities Securities that are listed on a recognised stock exchange or traded on any other regulated market will be valued at their last available official closing prices or, in the case of several such markets, based on their last available closing prices on the most important market for the relevant security, so long as these prices are normally the same as the prices used by the index offeror in the calculation of the index of the relevant Sub-Fund; if the last available price does not accurately reflect the fair market value of the relevant securities, the value of such securities shall be determined by the Board of Directors on the basis of their reasonable foreseeable realisation prices determined subject to due deliberations and in good faith. Securities that are not traded on a regulated market will be valued on the basis of their likely realisation price, as determined by the Board of Directors subject to due deliberations and in good faith. 3) Net realised gain or loss on sales of investments Realised gains or losses on sales of investments are calculated on the basis of average cost of the investments sold. 4) Conversion of foreign currencies Bank accounts, other net assets and liabilities as well as the valuation value of the portfolio securities that are expressed in currencies other than in CNH were converted into CNH at the exchange rates prevailing on June 30, Income and fees in currencies other than CNH are converted into CNH at the exchange rates prevailing on the transaction date. 5) Cost of investments in securities The cost of investments in securities in currencies other than in CNH is converted into CNH at the exchange rate prevailing on the purchase date. 8

10 Notes to the Financial Statements as at June 30, 2016 (continued) Note 2 - Principle Accounting Policies (continued) 6) Calculation of the Net Asset Value The Net Asset Value of a sub-fund and the Net Asset Value of the Share Classes issued within that sub-fund are determined in the relevant currency on every Valuation Date, subject to any event of suspension of calculation of the Net Asset Value. The NAV per Share for a Valuation Date is calculated on the relevant Calculation and Publication Day for each share class. The securities contained in the fund assets are evaluated on the basis of the last available closing prices in the relevant principal markets on the Reference Date. The NAV per Share for a share class pertaining to a Sub-Fund is determined by dividing the value of the total assets of the relevant share class of the Sub-Fund, less the liabilities of the Sub-Fund, by the total number of Shares pertaining to that class that are issued and outstanding at a certain valuation time. When calculating the NAV per Share, revenues and expenses are treated as accruing on a daily basis. Investments held in a particular Sub-Fund that are not denominated in the base currency are converted into the base currency at the exchange rate that is applicable within the principal regulated market for the relevant value on the valuation day preceding the valuation time. The Board of Directors may, in its absolute discretion, allow the use of other valuation methods if it is of the opinion that such a valuation better reflects the fair realisation value of an investment in the Company. The valuation of securities whose listing price is not representative and all other eligible assets (including securities not listed on a stock exchange or traded on a Regulated Market) is based on their probable realization price determined with care and in good faith by or, if applicable, under the supervision of the Board of Directors of the Company. All assets and liabilities in a currency other than that of the sub-fund in question are converted using the exchange rate determined at the time of valuation. The Net Asset Value determined per Share in a sub-fund is considered final and binding once it is confirmed by the Board of Directors of the Company or an authorized member of the Board of Directors/authorized representative of the Board of Directors of the Company, except in the case of a manifest error. Note 3 - Taxation The Company is subject to Luxembourg taxation. According to current Luxembourg law and practice, the Company is not liable for income tax in Luxembourg, and no withholding tax is due on the dividends paid by the Company. According to current Luxembourg law and practice, no capital gains tax is due on the capital gains realised in relation to the Company's assets. The Company must pay an annual subscription tax in Luxembourg which is calculated at a rate of 0.05% of the NAV of all its Sub-Funds. The rate of taxation is 0.01% for all Share Classes reserved for institutional investors. The aforesaid taxe d'abonnement is payable quarterly on the basis of the NAV of the Sub-Funds at the end of the quarter to which the tax relates. Sub-Funds (i) whose Shares are listed or traded on at least one stock exchange or another regulated market operating regularly, recognised and open to the public; and (ii) whose exclusive object is to replicate the performance of one or more indices, are exempt from the taxe d abonnement. If several Share Classes exist within a Sub-Fund, the exemption only applies to the share class fulfilling the condition (i) above. Without prejudice to additional or alternative criteria that may be determined by regulations, the index referred to under condition (ii) above must represent an adequate benchmark for the market to which it refers and must be published in an appropriate manner. Note 4 - Management Company The Company has appointed Commerz Funds Solutions S.A. to act as Management Company of the Company. Commerz Funds Solutions S.A. a société anonyme under Luxembourg law, has its registered office at 25, rue Edward Steichen, L-2540 Luxembourg, Grand Duchy of Luxembourg. The Management Company was established on June 5, 2008 in accordance with Chapter 15 of the 2010 Law as a société de gestion. On October 7, 2015 the Management Company obtained the license for the management of certain alternative investment funds. The Management Company s corporate objective is the establishment and management of i) undertakings for collective investments in securities in accordance with the EU Directive 2009/65/EG in their respective valid version ( OGAW ), (ii) alternative investment funds ( AIF ) in accordance with the EU Directive 2011/61/EU in their respective valid version, and other undertakings for collective investments, which are not covered by the before mentioned directives. The Management Company complies with the requirements of the EU Directive 2009/65/EG as transposed into Luxembourg law by the Law of December 17, 2010 and with the EU Directive 2011/61/EU relating to manager for alternative investment funds as transposed into the Luxembourg law of The amended articles of association of the Management Company have been deposited with the Luxembourg Trade and Companies Register and were published in the Mémorial of October 19, The Management Company is listed in the Luxembourg Trade and Companies Register under number B The issued capital of the Management Company as at June 30, 2015 is EUR 5,000,

11 Notes to the Financial Statements as at June 30, 2016 (continued) Note 4 - Management Company (continued) The Management Company may assign its tasks in part or in full to one or several third parties. The Management Company is a wholly owned subsidiary of Commerzbank AG. In addition to the Company, the Management Company currently also renders management services for Commerzbank Aktientrend Deutschland, Commerzbank Rohstoff Strategie, CBK 12,5 Corporate Bond Fund, GET Capital Quant Global Equity Fonds, Europe SectorTrend UCITS ETF, CBK Wertsicherungsfonds plus, Europa One and Luxemburger Spezialfonds Commerzbank Renten Protect 80, as well as all sub-funds of CBK SICAV, ComStage, Anlagestruktur and Dynamic Vario Protect. Furthermore, the Management Company pursues the activities of collective portfolio management in the Federal Republic of Germany within the framework of cross-border provision of services and manages the German UCITS Directive compliant investment fund Commerzbank Stiftungsfonds, ComStage Vermögensstrategie UCITS ETF and all existing sub-funds of ComStage 1. In the United Kingdom, the Management Company pursues the activities of collective portfolio management within the framework of cross-border provision of services and manages the British UCITS Directive compliant investment company Commerzbank CCBI Investment Funds ICVC. Note 5 - All-in fees This charge includes in particular the fees for the Management Company, the Investment Manager of the Sub-Funds, the Sub-Investment Manager of the Sub-Funds, the Custodian and Paying Agent, as well as the fees for the Registrar and Transfer Agent of the Company and the Administrator. The All-In Fee is distributed by the Management Company and paid directly to the Custodian and/or the relevant service providers. The All-In Fee is calculated on the basis of the average daily NAV of the share class of the relevant Sub-Fund and is payable in arrears on a monthly or quarterly basis. The regular costs of a sub-fund included in the All-in Fee include the following: Expenses for regular legal and audit services in relation to day-to-day matters; the preparation and printing of the reports to the shareholders, the key investor information document and the Prospectus (including all adjustments and supplements), the annual reports and information brochures, all fees and reasonable costs of the members of the Board of Directors; the ongoing registration fees and other costs charged by supervisory authorities in various jurisdictions; insurance and the costs of the publication of the indicative NAV per Share within an exchange day and the daily NAV per Share; as well as the costs and cash expenses incurred by the individual service providers. The following additional costs and expenses are also included in the All-In Fee: all taxes and other tax-related expenses that may be imposed on the Company, e.g., if applicable, the annual Luxembourg tax (taxe d abonnement) and/or the costs and commissions required for maintaining the listing of the Shares in a Sub-Fund on the relevant stock exchange or any other listing ( Ongoing Listing Costs ). The Company incurs other costs that are not included in the All-In Fee and that may have to be paid by the Company out of the assets of the relevant share class or Sub-Fund ( Other Costs ). For instance, the following costs and expenses are not included in the All-In Fee: any value added tax or similar sales or service duties payable by the Company ( VAT ) ( Other Taxes and Duties ), any ongoing index license fees ( Ongoing Index License Fees ) payable by the Company to the Management Company, any translation fees, all costs and expenses incurred in connection with the purchase and sale of securities or other assets of a Sub-Fund, e.g. brokerage commissions and commissions by correspondents in relation to the transfer of securities or other investments ( Transaction Costs ), all costs and commissions incurred outside the regular business activity of a Sub-Fund (e.g. costs for legal advice in the event that a Sub-Fund enforces or defends a claim). The All-In-Fee charged to a Share Class or sub-fund may not exceed 0.80% of the NAV of the relevant sub-fund per year. Sub-Fund Share Classes Current All-in fees Shanghai Stock Exchange 50 A Share Index UCITS ETF A (RMB) D 0.80% Note 6 - Other Expenses As at June 30, 2016 the caption Other expenses includes the License Fees. Note 7 - Transaction costs For the period ended June 30, 2016, the Company incurred transaction costs which have been defined as brokerage fees, certain taxes and certain custodian fees relating to the purchase and sale of transferable securities, money market instruments or other eligible assets. All these costs are included in the caption Transaction costs. 10

12 Notes to the Financial Statements as at June 30, 2016 (continued) Note 8 - Changes in the composition of the investment portfolio The report on changes in the composition of the Securities Portfolio for the sub-funds for the period ended June 30, 2016 is available upon request and free of charge at the Custodian Bank and registered office of the Company. Note 9 - Risk Management The global exposure of the sub-funds is determined by using the commitment approach. The expected total exposure of each sub-fund compared to its underlying Index or strategy is a maximum of 110%. 11