Flossbach von Storch SICAV

Transcription

1 Flossbach von Storch SICAV R.C.S. Luxembourg B Investment fund under Luxembourg law An investment fund pursuant to Part II of the Law of 17 December 2010 concerning undertakings for collective investment, as currently amended, in the legal form of a Société d Investissement à Capital Variable (SICAV), as currently amended MANAGEMENT COMPANY: Flossbach von Storch Invest S.A. R.C.S Luxembourg B

2 2 CONTENTS FLOSSBACH VON STORCH SICAV - MULTIPLE OPPORTUNITIES SUB-FUND 3 Geographical breakdown by country 4 Breakdown by economic sector 5 Composition of net sub-fund assets 7 Statement of income and expenses 10 Statement of assets as at 31 March Additions and disposals from 1 October 2016 to 31 March NOTES TO THE SEMI-ANNUAL REPORT AS AT 31 MARCH MANAGEMENT, DISTRIBUTION AND ADVISORY SERVICES 22 The sales prospectus and the Articles of Association it includes, the Key Investor Information Document and the annual and semi-annual reports on the fund are available free of charge by post, fax or from the registered offices of the investment company, the Custodian, the paying agents and sales agents for each country in which it is sold and from the representative in Switzerland. Additional information may be obtained from the Management Company at any time during normal business hours. Subscriptions for fund shares are only valid if based on the latest edition of the sales prospectus, including its annexes in conjunction with the most recently available annual report or semi-annual report if one has been published thereafter.

3 3 Flossbach von Storch SICAV - Multiple Opportunities Semi-annual report 1 October March 2017 The company is entitled to create share classes with different rights in relation to the shares. Details of the current share classes are as follows: Share class F Share class R Share class I Securities ID No. (WKN): A0M43Z A0M430 A1W0MN ISIN: LU LU LU Issue surcharge: up to 5.00% up to 5.00% up to 5.00% Redemption fee: none none none Management fee: 1.03% p.a. 1.53% p.a. 0.78% p.a. Minimum initial investment: 5,000,000 none 1,000,000 Minimum subsequent investment: 1,000,000 none 100,000 Income utilisation: distributing distributing distributing Currency:

4 4 Geographical breakdown by country 1) United States of America 18.11% Germany 13.55% Switzerland 10.00% Japan 5.68% United Kingdom 3.96% Netherlands 3.92% Denmark 3.22% Mexico 2.11% Virgin Islands (GB) 2.10% Canada 1.38% France 1.33% Austria 0.18% Securities holdings 65.54% Precious metals, gold 11.49% Bank balances 23.20% Balance of other receivables and payables -0.23% % 1) Due to rounding differences in individual amounts, totals may differ from the actual value.

5 5 Breakdown by economic sector 1) Foodstuffs, beverages and tobacco 11.48% Pharmaceuticals, biotechnology and life sciences 9.22% Automobiles and components 7.87% Raw materials and supplies 5.95% Software and services 5.37% Health care: equipment and services 4.40% Telecommunications services 4.30% Diversified financial services 4.17% Government bonds 2.95% Household items and body care products 2.46% Consumer goods and clothing 2.10% Wholesale and retail 1.61% Media 1.27% Real estate 0.94% Capital goods 0.63% Hardware and equipment 0.33% Food and staples retail 0.31% Energy 0.18% Securities holdings 65.54% Precious metals, gold 11.49% Bank balances 23.20% Balance of other receivables and payables -0.23% % 1) Due to rounding differences in individual amounts, totals may differ from the actual value.

6 6 Performance over the last three financial years Share class F Net share class assets Shares in circulation Net inflow of funds Share value Date millions thousands 30 September , ,351,510 81, September , ,901, , March , ,685,952-54, Share class R Net share class assets Shares in circulation Net inflow of funds Share value Date millions thousands 30 March , ,679,475 1,396, September , ,801,297 1,584, March , ,162, , Share class I Net share class assets Shares in circulation Net inflow of funds Share value Date millions thousands 30 September ,028,152 84, September ,792, , March ,865, ,

7 7 Composition of net sub-fund assets as at 31 March September March 2017 Securities holdings (cost of acquisition of securities as at 30 September 2016: 6,953,674,105.35) (cost of acquisition of securities as at 31 March 2017: 6,938,525,796.47) 7,546,963, ,702,577, Precious metal, gold 1,335,415, ,346,869, Bank balances 1) 1,343,917, ,727,512, Unrealised profits from forward exchange transactions 2,330, Interest receivables 17,361, ,967, Dividend receivables 7,566, ,762, Receivables from the sale of shares 38,100, ,451, Receivables from securities transactions 2,638, , Receivables from currency transactions 22,983, ,839, ,317,276, ,993,485, Payables from the redemption of shares -6,270, ,463, Unrealised losses from forward exchange transactions ,155, Payables from securities transactions -21,978, ,481, Payables from currency transactions -22,981, ,778, Management fee/ Fund management fee 2) -11,912, ,962, Custodian fee 2) -293, , Performance fee -14,679, ,565, Central administration agent fee 2) -129, , Taxe d abonnement 3) -1,288, ,450, Publication and auditing costs -13, , ,549, ,320, Net sub-fund assets 10,237,727, ,750,164, Shares in circulation 46,495, ,714, ) The bank balances held are not protected by a deposit guarantee scheme. 2) Provisions for the period from 1 March 2017 to 31 March ) Provisions for the first quarter of 2017.

8 8 Allocation to the share classes 30 September March 2017 Share class F Proportion of net sub-fund assets 1,481,854, ,491,067, Shares in circulation 5,901, ,685, Share value Share class R Proportion of net sub-fund assets 8,130,243, ,461,987, Shares in circulation 35,801, ,162, Share value Share class I Proportion of net sub-fund assets 625,629, ,109, Shares in circulation 4,792, ,865, Share value

9 9 Change in net sub-fund assets in the reporting period from 1 October 2016 to 31 March 2017 Total Share class F Share class R Share class I Net sub-fund assets at the start of the reporting period 10,237,727, ,481,854, ,130,243, ,629, Ordinary net income/expense -51,618, ,211, ,943, ,885, Income and expense equalisation 2,901, , ,969, , Cash inflows from share sales 1,629,688, ,685, ,329,886, ,116, Cash outflows from share redemptions -550,333, ,460, ,029, ,842, Realised profits 498,182, ,305, ,293, ,584, Realised losses -46,878, ,406, ,304, ,167, Net change in unrealised profits 159,494, ,272, ,014, ,208, Net change in unrealised losses -26,217, ,656, ,153, ,407, Distribution -102,783, ,714, ,988, ,080, Net sub-fund assets at the end of the reporting period 11,750,164, ,491,067, ,461,987, ,109, Changes in number of shares in circulation for share class F No. of shares No. of shares 30 September March 2017 Shares in circulation at start of reporting period 5,351, ,901, Shares issued 1,107, , Shares redeemed -557, , Shares in circulation at end of reporting period 5,901, ,685, Changes in number of shares in circulation for share class R No. of shares No. of shares 30 September March 2017 Shares in circulation at start of reporting period 28,679, ,801, Shares issued 9,824, ,821, Shares redeemed -2,703, ,459, Shares in circulation at end of reporting period 35,801, ,162, Changes in number of shares in circulation for share class I No. of shares No. of shares 30 September March 2017 Shares in circulation at start of reporting period 1,028, ,792, Shares issued 4,389, ,095, Shares redeemed -624, ,022, Shares in circulation at end of reporting period 4,792, ,865,

10 10 Statement of income and expenses in the reporting period from 1 October 2016 to 31 March 2017 Total Share class F Share class R Share class I Income Dividends 63,331, ,364, ,675, ,291, Interest on loans 18,859, ,560, ,026, ,272, Income from withholding tax reimbursement 1,311, , ,042, , Bank interest -2,587, , ,049, , Other income 189, , , , Income equalisation 2,484, , ,497, , Total income 83,588, ,580, ,342, ,666, Expenses Interest payable -944, , , , Performance fee -45,690, ,663, ,026, Management fee/ Fund management fee -76,520, ,575, ,076, ,868, Custodian fee -1,837, , ,463, , Central administration agent fee -799, , , , Taxe d abonnement -2,806, , ,235, , Publication and auditing costs -47, , , , Typesetting, printing and dispatch costs for the annual and semi-annual reports -19, , , , Registrar and transfer agent fee -26, , , , State fees -10, , , Depositary fees -1,093, , , , Other expenses 1) -22, , , , Expense equalisation -5,386, , ,467, , Total expenses -135,206, ,369, ,286, ,551, Ordinary net income/expense -51,618, ,211, ,943, ,885, Total expense ratio not including performance fee in per cent (for the period from 1 April 2016 to 31 March 2017) Total expense ratio including performance fee in per cent (for the period from 1 April 2016 to 31 March 2017) Performance fee in per cent (for the period from 1 April 2016 to 31 March 2017) ) This item mainly consists of delivery charges and general administrative expenses.

11 11 Statement of assets as at 31 March 2017 ISIN Securities Additions in the reporting period Disposals in the reporting period Quantity Price Market value % share of NSFA 1) Equities, rights and participation certificates Exchange-traded securities Denmark DK Novo-Nordisk AS DKK 2,682, ,900, ,265, ,265, Germany DE Bayerische Motoren Werke AG 312, ,000 2,519, ,586, DE Bayerische Motorenwerke AG pref , ,012, DE Bechtle AG 0 0 1,066, ,232, DE Daimler AG 0 1,608,067 3,928, ,333, DE000A0Z2ZZ5 Freenet AG 850, ,996, ,839, DE SAP SE , ,442, DE TAG Immobilien AG 0 0 8,788, ,982, DE United Internet AG 3,327, ,841, ,746, ,345,176, France FR L Air Liquide S.A. 467,875 1,311,137 1,307, ,666, ,666, United Kingdom GB Imperial Brands Plc. GBP 2,657,941 1,001,000 7,157, ,070, GB00B24CGK77 Reckitt Benckiser Group Plc. GBP 985, ,705, ,737, ,807, Japan JP Japan Tobacco Inc. JPY 2,732, ,213,000 3, ,832, JP KDDI Corporation JPY 2,071, ,295,468 2, ,592, JP Makita Corporation JPY 240, , ,800 3, ,778, JP Seven & I Holding Co. Ltd. JPY 1,000, ,000,000 4, ,517, JP Toyota Motor Corporation JPY 0 2,702,000 1,998,483 6, ,243, ,964, Virgin Islands (GB) VGG Michael Kors Holdings Ltd. USD 247, ,939, ,526, ,526, Canada CA Barrick Gold Corporation USD 10,644,828 1,405,692 9,239, ,162, ,162, Netherlands NL Unilever NV 2,778,006 9,921,706 3,078, ,848, ,848, ) NSFA = net sub-fund assets. Due to rounding differences in individual amounts, totals may differ from the actual value.

12 12 Statement of assets as at 31 March 2017 (continued) ISIN Securities Additions in the reporting period Disposals in the reporting period Quantity Price Market value % share of NSFA 1) Switzerland CH Nestlé S.A. CHF 2,991,615 2,834,568 8,537, ,241, CH Novartis AG CHF 0 0 4,000, ,770, CH Roche Holding AG participation certificates CHF 50, ,150, ,389, ,175,401, United States of America US Abbott Laboratories USD 900,000 1,368,696 8,000, ,029, US02079K3059 Alphabet Inc. USD 124, , ,685, US Amazon.com Inc. USD 101, , ,528, US Amgen Inc. USD , ,540, US Berkshire Hathaway Inc. USD 708, ,604 3,139, ,474, US Coca-Cola Co, USD 1,180,699 2,738,096 3,296, ,832, US Danaher Corporation USD 0 0 2,306, ,210, US30303M1027 Facebook Inc. USD 100, , ,267, US34959J1088 Fortive Corporation USD , ,015, US Johnson & Johnson USD 0 500, , ,454, US Lowe's Companies Inc. USD 1,399, ,399, ,264, US57636Q1040 Mastercard Inc. USD 0 547, , ,496, US Microsoft Corporation USD 0 2,099, , ,405, US61166W1018 Monsanto Co. USD 1,094, ,862, ,224, US Newmont Mining Corporation USD 3,091, ,091, ,849, US United Technologies Corporation USD 301,000 1,490, , ,323, ,126,601, Exchange-traded securities 6,851,421, Equities, rights and participation certificates 6,851,421, Bonds Exchange-traded securities XS % Bertelsmann SE & Co. KGaA Reg.S. Fix-to-Float v.15(2075) XS % Bertelsmann SE & Co. KGaA Reg.S. Fix-to-Float v.15(2075) DE % Federal Republic of Germany v.17(2027) XS % OMV AG Fix-to-Float Reg.S. Perp ,000, ,720, ,000, ,750, ,000, ,000, ,000, ,190, ,000,000 18,500, ,367, XS % Orange S.A. Fix-to-Float Perp. 15,000, ,000, ,087, ) NSFA = net sub-fund assets. Due to rounding differences in individual amounts, totals may differ from the actual value.

13 13 Statement of assets as at 31 March 2017 (continued) Additions Disposals % in the in the share reporting reporting Market value of ISIN Securities period period Quantity Price NSFA 1) XS % Telefónica Europe BV Reg.S. Fix-to-Float Perp. XS % Volkswagen International Finance NV FRN Perp. XS % Volkswagen International Finance NV Reg.S. Fix-to- Float Perp ,700, ,781, ,100, ,100, ,950, ,600, ,600, ,181, ,028, MXN MX0MGO0000G % Mexico v.09(2018) 3,000,000,000 1,000,000,000 2,000,000, ,731, MX0MGO0000T % Mexico v.13(2018) 3,000,000,000 1,000,000,000 2,000,000, ,672, MX0MGO0000V % Mexico v.14(2019) 1,000,000, ,000,000, ,723, ,127, Exchange-traded securities 851,155, Bonds 851,155, Securities holdings 7,702,577, Additions Disposals % in the in the share reporting reporting Total market of ISIN Securities period period Quantity Total price value in NSFA 1) Precious metal, gold 2) Gold (bars) , , , USD Gold (bars) ,898 1,444,711, ,345,921, ,345,921, Precious metal, gold 1,346,869, ) NSFA = net sub-fund assets. Due to rounding differences in individual amounts, totals may differ from the actual value. 2) A detailed statement of gold holdings as at 31 March 2017 is available free of charge by post, fax or from the registered offices of the investment company, the custodian bank, the paying agents and sales agents for each country of distribution and from the representative in Switzerland.

14 14 % share Interest rate Foreign currency Market value of Bank balances current account Currency in % Maturity holdings NSFA 1) DZ PRIVATBANK S.A. 2) CHF daily 13,710, ,823, DZ PRIVATBANK S.A. 2) DKK daily 542, , DZ PRIVATBANK S.A. 2) daily 2,121,490, ,121,490, DZ PRIVATBANK S.A. 2) GBP daily 67,416, ,473, DZ PRIVATBANK S.A. 2) JPY daily 446,221, ,735, DZ PRIVATBANK S.A. 2) MXN daily 102,427, ,115, DZ PRIVATBANK S.A. 2) NOK daily 5, DZ PRIVATBANK S.A. 2) USD daily 45,834, ,700, DZ PRIVATBANK S.A. (initial margin) USD daily DZ PRIVATBANK S.A. (variation margin) daily 13,100, ,100, Landesbank Baden-Württemberg (London) (call money) Nord/LB Luxembourg Covered Bond Bank (call money) daily 250,000, ,000, daily 200,000, ,000, Total bank balances current account 2,727,512, Balance of other receivables and payables -26,794, Net sub-fund assets in 11,750,164, Forward exchange transactions As at 31 March 2017, the following forward exchange transactions were outstanding: Market value % share Currency Currency amount of NSFA 1) /GBP Currency sales 270,000, ,728, /JPY Currency sales 62,000,000, ,869, ) NSFA = net sub-fund assets. Due to rounding differences in individual amounts, totals may differ from the actual value. 2) The bank balances held are not protected by a deposit guarantee scheme. The interest rates given are valid as at 31 March The stated bank credit balances are payable on sight.

15 15 Additions and disposals from 1 October 2016 to 31 March 2017 Purchases and sales of securities, note loans and derivatives during the reporting period, including changes not involving monetary transactions and not disclosed in the statement of assets. Additions Disposals in the in the ISIN Securities reporting period reporting period Equities, rights and participation certificates Exchange-traded securities Germany DE Biotest AG pref ,768 France FR Air Liquide S.A. BZR 28/09/16 0 2,151,000 FR Danone S.A. 619, ,030 United Kingdom GB British American Tobacco Plc. GBP 444, ,531 Japan JP Fanuc Corporation JPY 0 513,170 Switzerland CH Swatch Group CHF 0 457,000 United States of America US The Procter & Gamble Co. USD 0 1,201,026 US88579Y1010 3M Co, USD 75, ,000 Bonds Exchange-traded securities XS % BHP Billiton Finance Ltd. Fix-to-Float v.15(2076) 0 104,800,000 XS % OMV AG Fix-to-Float Reg.S. Perp. 0 59,000,000 XS % Total S.A. EMTN Reg.S. Fix-to-Float Perp. 0 33,500,000 Securities admitted to trading or included in organised markets USD US380956AD % GoldCorporation Inc. v.13(2023) 0 75,800,000 US595112BC % Micron Technology Inc. v.14(2025) 0 96,400,000 US87264AAL % T-Mobile USA Inc. v.14(2023) 0 80,000,000 Futures contracts EUX 10YR Euro Bund Future December ,000 7,000 EUX 10YR Euro Bund Future March ,000 8,000 USD CBT 10YR US T-Bond Note Future March ,000 8,000

16 16 Exchange rates The values of assets denominated in foreign currencies are given in euro, applying the exchange rates prevailing on 31 March 2017 as stated below. British pound GBP Danish krone DKK Japanese yen JPY Mexican peso MXN Norwegian krone NOK Swiss franc CHF US dollar USD

17 17 Notes to the semi-annual report as at 31 March ) Introduction The investment company Flossbach von Storch SICAV is a limited company with variable capital (société d investissement à capital variable) under Luxembourg law with its registered office at 6, Avenue Marie-Thérèse, L-2132 Luxembourg, Grand Duchy of Luxembourg (Tel.: , Fax: , info@fvsinvest.lu). It was founded on 19 October 2007 for an indefinite period in the form of an umbrella fund with multiple sub-funds. Its Articles of Association were published on 29 November 2007 in Mémorial, Recueil des Sociétés et Associations, the official journal of the Grand Duchy of Luxembourg ( Mémorial ). Mémorial was replaced on 1 June 2016 by the new information platform Recueil électronique des sociétés et associations ( RESA ) of the Luxembourg trade and companies register. The investment company is registered in the trade and companies register of Luxembourg under registration number R.C.S. Luxembourg B Its articles of association were last amended and published in RESA on 30 December The Flossbach von Storch SICAV is an alternative investment fund ('AIF') established for an indefinite period in the form of an umbrella fund ('investment company') with one or more sub-funds ('sub-funds') and governed by the provisions of Part II of the Luxembourg law of 17 December 2010 concerning undertakings for collective investment ( Law of 17 December 2010 ). The management company of the Flossbach von Storch SICAV is Flossbach von Storch Invest S.A. (the management company ), a public limited company (Aktiengesellschaft) under the law of the Grand Duchy of Luxembourg with its registered office located at 6, Avenue Marie-Thérèse, L-2132 Luxembourg. The management company was incorporated for an indefinite period on 13 September Its Articles of Association were published in Mémorial on 5 October The most recent amendment of the Articles of Association entered into force on 6 May 2015 and was published in Mémorial on 3 June The management company has been entered in the commercial register kept by the Luxembourg District Court under registration number R.C.S. Luxembourg B ) Key accounting and valuation principles This report has been prepared under the responsibility of the board of directors of the investment company in conformity with the legal provisions and regulations prevailing in Luxembourg for the preparation and presentation of reports. 1. The net company assets of the investment company are denominated in euro () ( reference currency ). 2. The value of a share ( net asset value per share ) is denominated in the currency laid down in the annex to the sales prospectus ( sub-fund currency ) unless a currency other than the sub-fund currency has been specified in the relevant annex to the sales prospectus in relation to any other share classes which may exist ( share class currency ). 3. The net asset value per share is calculated and rounded to two decimal places by the management company or its appointee, under the supervision of the custodian, on each valuation day that is a banking day in Luxembourg with the exception of 24 and 31 December of each year ( valuation day ). The board of directors may decide to apply different rules to individual funds, but the net asset value per share must be calculated at least twice per month.

18 18 NOTES 4. In order to calculate the net asset value per share, the value of the assets of each sub-fund less the liabilities of each sub-fund ( net sub-fund assets ) is determined on each valuation day and divided by the number of shares in circulation on the valuation day. 5. To the extent that information on the situation of the net assets of the company must be provided in the annual or semi-annual reports and/or other financial statistics in accordance with the applicable legislative provisions or in accordance with the conditions of the Articles of Association, the value of the assets of each sub-fund will be converted to the reference currency. Values of the various net subfund assets are measured in accordance with the following principles: a) Securities, money market instruments, derivative financial instruments (derivatives) and other investments officially listed on a stock exchange are valued at the latest available trade price which provides a reliable valuation on the trading day preceding the valuation day. If securities, money market instruments, derivative financial instruments or other assets are officially listed on more than one securities exchange, the price registered on the exchange with the greatest liquidity shall be authoritative in this respect. b) Securities, money market instruments, derivative financial instruments (derivatives) and other investments not officially listed on a securities exchange (or whose stock exchange rates are not deemed representative, e.g. due to lack of liquidity) but traded on a regulated market, shall be valued at a price no less than the bid price and not more than the offer price of the trading day preceding the valuation day, which the management company considers, to the best of its knowledge, to be the best possible price at which the securities, money market instruments, derivative financial instruments (derivatives) and other investments can be sold. c) OTC derivatives are valued on a daily basis using a method to be determined and validated by the Management Company in good faith on the basis of the sale value that is likely to be attainable and using generally accepted and verifiable valuation models. d) Shares in UCI/UCITS are generally valued at the last redemption price fixed before the valuation day or at the latest available price that affords a reliable valuation. If the redemption of investment shares has been suspended or if no redemption price has been set, these shares and all other assets are valued at their appropriate market values as determined in good faith by the management company in line with generally accepted and verifiable valuation models. e) If the relevant prices are not market prices and if no prices have been set in respect of financial instruments other than those mentioned in subsections a) to d), the values of these financial instruments and of any other legally permissible assets are valued at their market prices as determined in good faith by the investment company in line with generally accepted and verifiable valuation models (e.g. using suitable valuation models and taking current market conditions into account). f) The liquid funds are valued at nominal value plus interest. g) Amounts due, for example, deferred interest claims and liabilities, shall in principle be rated at the nominal value. h) The market values of securities, money market instruments, derivatives and other assets denominated in a currency other than the relevant sub-fund currency are converted into the relevant sub-fund currency at the exchange rate prevailing at 5 p.m. CET/CEST (4 p.m. GMT/BST)

19 19 NOTES on the trading day preceding the valuation day, as determined via WM/Reuters fixing. Profits and losses from currency transactions will be added or deducted as applicable. 6. The various net sub-fund assets will be reduced by the amount of any distributions paid out to shareholders in the relevant sub-fund. The net asset value per share is calculated separately for each sub-fund according to the criteria listed above. If share classes were created within a given sub-fund, the resulting net asset value per sub-fund is calculated separately for each share class within the sub-fund according to the above criteria. a) The composition and allocation of assets always occurs separately for each sub-fund. b) Cash inflows from share issues increase the share of the respective share class as a percentage of the total value of the sub-fund assets. Cash outflows from share redemptions decrease the share of the respective share class as a percentage of the total value of the sub-fund assets. c) If a distribution is carried out, the value of the shares entitled to distributions is reduced by the amount of the distribution. At the same time it reduces this share class as a percentage of total sub-fund assets, whereas the share class not entitled to distributions increases as a percentage of total sub-fund assets. Sub-fund assets are generally valued by the management company. The management company may delegate the valuation of assets and make use of an external valuation agent that meets the statutory regulations. The latter may not delegate its valuation function to a third party. The management company notifies the relevant supervisory authority if an external valuation agent is appointed. Even if it has appointed an external valuation agent, the management company remains responsible for the proper valuation of sub-fund assets and for calculating and publishing the net asset value. Notwithstanding the preceding sentence, the external valuation agent is liable to the management company for any losses incurred by the management company that can be attributed to the external valuation agent s negligence or intentional non-performance of its duties. For arithmetical reasons the tables included in this report may contain rounding differences of up to plus or minus one unit (of currency, per cent, etc.). 3.) Taxation Taxation of the investment company and its sub-funds In the Grand Duchy of Luxembourg, the company s and sub-funds assets are subject to a tax known as the taxe d abonnement, which is currently levied at a rate of 0.05 % p.a. and is payable quarterly on the net assets of the company reported at the end of each quarter. If all or part of a sub-fund s assets are invested in other Luxembourg investment funds that are already subject to the taxe d abonnement, then that part of the sub-fund s assets invested in Luxembourg investment funds is exempt from this tax. The income of the investment company or its sub-funds from investing its assets is not taxed in the Grand Duchy of Luxembourg. However, such income may be subject to taxation at source in countries in which sub-fund assets are invested. In such cases, neither the custodian nor the investment company is obliged to obtain tax certificates. Taxation of earnings from shares in the investment company held by the shareholder Shareholders who are not resident in and/or do not maintain a business establishment in the Grand Duchy of Luxembourg are not required to pay any further income, inheritance or wealth tax in the Grand Duchy of Luxembourg in respect of their shares or of income deriving from their shares. These parties are subject to their own countries tax regulations. Natural persons who are resident in the Grand Duchy of Luxembourg and are not resident in another state for tax purposes are required to pay a withholding tax of 10% on interest income accrued in Luxembourg, in accordance with the Luxembourg law implementing the Directive. Under certain circumstances, investment fund interest income may also be subject to the withholding tax.

20 20 NOTES Prospective shareholders should enquire about the laws and regulations that apply to the purchase, possession and redemption of shares and, where necessary, seek advice. 4.) Use of income Annualised operating expenses in n months Operating expenses in UA* TER = x 12 N *UA = unit in the accounting currency of the collective capital investment The board of directors of the investment company can distribute the income generated by a sub-fund or a share class to shareholders or retain this income within the subfund or share class. This is stipulated for each sub-fund in the respective annex to the sales prospectus. The annex to the current sales prospectus states that the income from the sub-fund is to be distributed. 7.) Income and expense equalisation The ordinary net income includes an income adjustment and an expenditure adjustment. These include, during the reporting period, accrued net income which is paid by the party acquiring the equity as part of the issue price and passed on to the party selling the equity in the redemption price. 5.) Information on fees and expenses 8.) Remuneration policy disclosures Details of management and custodian fees are given in the current sales prospectus. 6.) Total expense ratio (TER) The fees and costs incurred for the administration of collective capital investments must be reported in the indicator known internationally as the Total Expense Ratio (TER). This indicator retrospectively expresses the total fees and costs (operating expenses) regularly charged to the assets of the collective investment as a percentage of the net assets. It is basically calculated using the following formula: Total operating expense in UA* TER = x 100 Average net assets in UA* The remuneration policy adopted by Flossbach von Storch Invest S.A. applies to all employees. Until further notice, the members of the supervisory board receive no remuneration for their activities in the supervisory board of Flossbach von Storch Invest S.A. The remuneration policy is aimed at promoting appropriate conduct, while at the same time ensuring sound, effective risk management. An additional objective is to avoid creating incentives to assume excessive risk and conflicts of interest. Flossbach von Storch Invest S.A. endeavours to ensure that all employees already receive adequate compensation from their fixed remuneration. The variable remuneration components therefore only represent supplementary remuneration. The remuneration policy also strives to create an appropriate balance between the fixed and variable remuneration components. *UA = unit in the accounting currency of the collective capital investment For newly established funds, the TER is to be calculated using the income statement published in the first annual or semi-annual report. If necessary, the operating expenses are to annualised. The average of the monthend values for the reporting period is deemed to be the average value for the Fund assets. The management company had 10 employees, including the executive board, who were receiving remuneration at the end of financial year The total remuneration of these employees in connection with this investment company was approximately 617,000 in This consisted of around 429,000 in fixed remuneration and 188,000 in variable remuneration. All employees were classified as risk takers.

21 21 NOTES One executive board member received approx. 41,000 in remuneration in connection with this investment company. The other two members of the executive board received no remuneration from Flossbach von Storch Invest S.A. The remuneration policy can be downloaded in detailed form from the Legal Notice section of the website 9.) Events in the reporting period Merger of the Flossbach von Storch SICAV - Stiftung sub-fund amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions as regards custodian functions. Implementation of model adjustments to the investment companies to satisfy the requirements of the management company Flossbach von Storch Invest S.A., and other editorial changes. 10.) Events after the reporting period There were no significant changes and no other significant events after the reporting period. The board of directors of Flossbach von Storch SICAV decided, in accordance with currently valid statutory, regulatory and contractual provisions, to merge the share classes that of the Flossbach von Storch SICAV - Stiftung sub-fund ( absorbed sub-fund ) (ISIN LU ) with share class SI of the newly established Flossbach von Storch - Stiftung sub-fund ( absorbing sub-fund ) effective 30 December 2016 (merger date), based on the last fund price calculation (29 December 2016). The ISIN and WKN were transferred. The conversion ratio for the merger was: 1:1. Amendment and restructuring of the articles of association of Flossbach von Storch SICAV The following amendments entered into effect on 30 December 2016: 11.) Transparency of securities financing transactions and their reuse As a management company of undertakings for collective investment in transferable securities (UCITS) and alternative investment fund manager (AIFM), Flossbach von Storch Invest S.A. falls by definition within the scope of Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012 (SFTR). No securities financing transactions or total return swaps as defined in this regulation were used during the reporting period of the investment company. Consequently, none of the disclosures specified in Article 13 of this regulation must be provided in the semi-annual report for shareholders. Adjustments to the investment company to satisfy the requirements of Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014 Detailed information on the investment company s investment strategy and the financial instruments used is available in the current sales prospectus.

22 22 Management, distribution and advisory services Investment company Flossbach von Storch SICAV Registered office 6, Avenue Marie-Thérèse L-2132 Luxembourg, Luxembourg Capital as at 30 September 2016: 10,505,901, Board of Directors of the Investment Company Management Company and Alternative Investment Fund Manager Flossbach von Storch Invest S.A. 6, Avenue Marie-Thérèse L-2132 Luxembourg, Luxembourg Equity capital (share capital or registered capital less outstanding deposits plus reserves) as at 31 December 2016: 10,312, Executive Board of the Management Company (management body) Dirk von Velsen Nikolaus Rummler Michael Borelbach Markus Müller (since 26 January 2017) Karl Kempen (since 26 January 2017) Auditor of the Management Company Chairman of the Board of Directors Dirk von Velsen Member of the Executive Board Flossbach von Storch AG Member of the Board of Directors Matthias Frisch Independent Member of the Board of Directors Member of the Board of Directors Wendelin Schmitt DZ PRIVATBANK S.A. Auditor of the Investment company PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator, B.P L-1014 Luxembourg, Luxembourg Supervisory Board of the Management Company Chairman of the Supervisory Board Kurt von Storch Member of the Executive Board Flossbach von Storch AG, Cologne Deputy Chairman of the Supervisory Board Julien Zimmer Investment Funds Chief Representative DZ PRIVATBANK S.A., Luxembourg Member of the Supervisory Board Bernd Model Managing Director Flossbach von Storch AG, Zurich Deloitte Audit S.à r.l. 560, rue de Neudorf L-2220 Luxembourg, Luxembourg Custodian DZ PRIVATBANK S.A. 4, rue Thomas Edison 1445 Strassen, Luxembourg Equity capital (share capital or registered capital less outstanding deposits plus reserves) as at 31 December 2016: 629,269,065.00

23 23 MANAGEMENT, DISTRIBUTION AND ADVISORY SERVICES Central Administration Agent, Registrar and Transfer Agent DZ PRIVATBANK S.A. 4, rue Thomas Edison L-1445 Strassen, Luxembourg Paying Agent Grand Duchy of Luxembourg DZ PRIVATBANK S.A. 4, rue Thomas Edison L-1445 Strassen, Luxembourg Federal Republic of Germany DZ BANK AG Deutsche Zentral- Genossenschaftsbank Platz der Republik D Frankfurt am Main, Germany Fund Manager Flossbach von Storch AG Ottoplatz Cologne, Germany Equity capital (share capital or registered capital less outstanding deposits plus reserves) as at 31 December 2015: 134,163, Sales Agent and Representative Federal Republic of Germany Flossbach von Storch AG Ottoplatz 1 D Cologne, Germany Additional information for Switzerland Swiss paying agent DZ PRIVATBANK (Schweiz) AG Münsterhof 12 P.O. Box CH-8022 Zurich, Switzerland Representative in Switzerland/place of jurisdiction Flossbach von Storch AG Fraumünsterstrasse 21 CH-8001 Zurich, Switzerland