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Luxcellence
Audited annual report
at30109ll0
RCS Luxembourg B 64.695
O!tobole Publhhlng Sytte.n: CoRoporf€ro by CO.LJnk, 8elglum.
Luxcellence
Table of Contents
Management and Administration
Board of Directors
Audit report
Combined fi nancial statements
Luxcellence - Diversified Porfolio
Lrxcellence - Genesis Fund
Lr.rxcellence - ICON Conservative Euro
Luxcellence - ICON Dynamic Euro
Luxcellence - Polunin Emergi:rg Markets Technology Fund
Luxcellence - Senhouse European Focus Fuad
Luxcellence - Nexar Liquid Fund
Luxcellence - Virtuoso Fund
Notes to the Financial Statements
Page
J
4
5
14
22
26
30
37
49
55
10
Subscription can only be received oa the basis of the latest prospectus accompanied by the latest aanual report as *'ellas by the l3lgst ssmi-annual report, if published after the latest annual report. The details of the changes in portfoliocomposition are held at the disposal of the shareholders at the registered office of the SICAV and are available uponrequest free of charge.
Poge 2
Luxcellence
Management and Administration
REGISTERED OFFICE
MANAGEMENT COMPANY
CUSTODIAN, DOMICILIARY ANDADMINISTRATIVE AGENT
AUDITOR
P ORTFOLIO MANAGERS AND/ORII.IVESTMENTMANAGERSFor the sub-fund Luxcellence - Diversified Portfolio
For the sub-fund Luxcellence - Genesis Fund
5, Allde SchefferL - 2520 LuxembourgGrand Duchy of Luxembourg
Luxcellence Management Company S.A.5, Allde SchefferL -2520 LuxembourgGrand Duchy of Luxembourg
CACEIS Bank Luxembowg S.A.5, Allde SchefferL -2520 LuxembourgGrand Duchy of Luxembourg
PricewaterhouseCoopers S.i r.l,400, Route d'EschB.P. 1,143
L - 1014 LuxembourgGrand Duchy of Luxembourg
GDP Gestione Di Patrimoni SIM S.p.A.Via Leone XIII n.14I - 20145 MilaooItaly
BNP Paribas Asset Management S.A.5, Avenue Kl€berF - 75116 ParisFrance
BancaAlbertini Syz & C. S.p.A.Via Borgonuovo 14
I - 20121 MilanItaly
Degroof Gestion Institutionnelle Luxembourg12, Rue Eugdne RuppertL - 2453 LuxembourgGrand Duchy of Luxembourg
Poge 3
Management and Administration (continued)
For the sub-fiuds Luxcellence - ICON Conservative
Euro and Luxcellence - ICON Dynamic Euro
For the sub-fuad Luxcellence - Polunin EmergingMarkets Technology Fund
For the zub-fund Luxcellence - Senhouse EuropeanFocus Fuod
For the sub-fund Luxcellence - Nexar Liquid Fund
For the sub'fund Luxcellence - Virtuoso Fund
II.MSTMDNT ADVISORFor the sub-fund Luxcellence - Genesis Fund
PRESIDENT
Mr. Antoine Gilson de Rouvreux
DIRECTORS
Mrs Sandrine LeclercqMrs Francesca de Bartolomdo
Luxcellence
Cr6dit Agricole Asset Management90, Boulevard PasteurF-75015ParisrFrance
Merrill Lynch Bank (Suisse) S.A.18, Rue de ContaminesCH - 1211 Geneve 3Switzerland(until December 5, 2049)
Petercarn S.A.19, Place Sainte GuduleB - 1000BruxellesBelgique(nntil December 5, 2009)
Polunin Capital Partners Ltd146, Buckingham Palace RoadLondon SWI'W 9TRUnited Kingdom
Senhouse Capital LLP20/22 Bedford RowLondon WCIR 4JSUnited Kingdom
Nexar Capital LLC .
767 Fiffl Avenue. l9' FloorNew York, NY 10153USA
Old Park Capital Limited3 Queen Steet, MayfairLondonWlJ5 PAUnitedKingdom
Global Wealth Management SA.7, Rue VersonnexCEI-1207 GeneveSwizerland
Board of Directors
Managing Director, Luxcellence Management Company S.A.
General Counsel, CACEIS Bank LuxembourgBusiness Development Director, CACEIS Bank Luxembourg
Poge 4
Audit report
To the Shareholders ofLuxcellence
PrlcewaterhouscCoopcrsSocidtd i responsabilit€ limitCe
400, Route d'RchB.P. t,{43
L-1014 LuxcnrbourgTelephonc +352 494848-1
Facsimile +352 494848-2900
www.pwc.c.om/[email protected]
We have audited the accompanying financial statements of Luxcellence and of each of its sub-funds,which comprise the statement of net assets and the securities portfolio as at September 30,2010 and thestatement of operations and changes in net assets for the year then ended, and a summary of significantaccounting policies and other explanatory notes to the financial statements.
Board of Directors of the SICAV's responsibilify 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 atrd regulatory requirements relating to thepreparation of the financial statements. This responsibility includes: designing, implementing andmaintaining intemal conhol relevant to the preparation and fair presentation of financial statements thatare free from material misstatement, whether due to fraud or error; selecting and applying appflcpriateaccounting policies; and making accourting estimates that are reasonable in the circumstances.
Responsibilify of the ('R6vlseur dtentreprises agr66"
Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with International Standards on Auditing as adopted for Luxembourgby the "Conrmission de Surveillance du Secteur FinancieC'. Those standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assurance whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the judgment of the "Rdviseur d'entreprisesagrdd", including the assessment of the risks of material misstatement of the financial scatements,
rvhether due to fraud or enor. In making those risk assessmenb, the "R€viseur d'entreprises agr€6"considers internal control retevant to the entity's prep.u"tion and fair presentation of the frnancialstatements in order to design audit procedures that are appropriate in the circumstances, but not for thepu4)ose of expressing an opinion on the effectiveness of the entity's intenral control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by the Board of Directors of the SICAV, as well as evaluating the overallpresentation of the financial statements.
Cabina dc rdvisioo rgr{d
F-\pcd cornptablc (sutoriruion gowemcmentale no95992)
R.C.S. L&\embourg B 65 4?7 - Copital social EIJR 516 950 - TVA LU17564447
Poge 5
PricewaterhouseCoopersRepresented by
./7/s-4taventMarx
We believe that the audit evidence we have obtained is sufflcient and appropriate to provide a basis for our
audit opinion.
0pinion
In our opinion, these financial statements give a true and fair view of the financial position of Luxcellence
and ofeach ofits sub-firnds as of September 30, 2010, and ofthe results oftheir operations and changes intheir net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements
relating to the preparation ofthe financial statements.
Other matters
Supplementary information included in the annual report has been reviewed in the coutext of our mandate
but has not been subject to specific audit procedwes carried out in accordance with the standards described
above. Consequently, we express no opinion on such information. Holvever, we have no observation to
make conceming such information in the context of the financial statements taken as a whole.
S.A r.l. Luxembourg, January 25, 201 |
Pogo 6
Luxcellence
Combined
Poge 7
LuxcellenceCombined
Financial Statements at 30/09/10
Statement of net assets at 30/09110
ExDlessed i,t USD
Assels
Secuillies porlfolio of morket volueCost piceUnrealised apprecialion on the secnities portfolio
Cosh ol bonk ond liquiditieslnleresl receivobleFormotion expensesBrokeR receivobleSubscriben receivobleDividends receivoble
Note2.2
Unreolised net oppreciolion on forword foreign exchonge controcls Note5,2.7
Unreolised net oppreciolion on finonciol futures Note6,2.8
Receivoble on spoi exchongeOlher ossels
Liobilities
Bonk overdroftsBroken poyobleToxe d'obonnement poyoblePerformonce Jees
Equolizof ion poyoble to shoreholdersSubscriben poyobleUnreolised nel depreciotion on forword foreign exchonge conirocis Note5,2.7
Unreolised nel depreciolion on finonciol fulures Note6,2.8
Accrued monogemenl & odvisory fees Note4
Poyoble on spot exchongeOlher liobilities
Nei qsset volue
thc occoEparyilg Dot€ form atr iltc€rol pad oflhcse fEoDcicl stctcmcots
Note2.6
Note 3
Noto 4
265,960J0824
14r,129,r74.20141,009,961.25
119,212.95
123,460,888.84
3:769.74
154,798.49
sgr226.sl238,828.80
90,972.67
1132s2.80
150,128.00
96.29
27,s7t.90
top0t,72t,2l
1,718,209.09
4,824,444.76
28,04s.85
55,206.88
21,499.93
r,046,769.88
2,134,894.41
690,670.69
237,798.39
112.64
144,068.69
255,058p87.03
Poge I
LuxcellenceCombined
Statement of Operations and Changes in Net Assets from 0l/10i09 to 30/09/10
Exprcssed in USD
lncomeNet dividendsNet interest on bondsBonk interest on cosh occountBonk interest on time depositsOther income
Expenses
Amortisotion of formotion expensesMonogement & odvisory feesCustodion & sub-custodion feesToxe d'obonnementAdministrotive expensesPerformonce ond License feesDomiciliotion feesProfessionol feesEonk interest on overdrqftsLegol feesOther expenses
Net loss from inveslments
Net reolised profit / loss on:
- soles of investment securities- options- forword foreign exchonge controcis- finonciol futures- foreign exchonge
Net reolised profit
Movement in net unreolised oppreciotion / depreciqtion on:
- invesfments- forword foreign exchonge controcts- finonciol futures
Increose in net ossets os o result of operotions
Subscription copitolisotion shoresSubscription distribution shoresRedemption copitqlisotion shores
Redemption distribution shores
lncreose in net ossets
Reevoluotion difference
Net qssets of the beginning of the yeor
Net ossets of the end of the yeor
Note2,5
Note2.5
Notc2.5
Note2.5
Note2.6
Note 4
Note4
Note 3
Note4
Note2.2
Note2.3
Note2.9
Note2.7
Note2.8
Note2.4
2,226,158,26
r,336,s75.98
863,15 r.75
6,843.86
r0,55'1.94
9,028.73
3,651,041,96
46,323.r8
1,574,770,88
t56,4rr.4983,314.78
348,516.34
481,629.20
353n.23l17,345.60
s8,&9.24
56,428.56
698,325.46
-1130,883.70
8,1 14,201.12
1d436.8s
2,293,549.53
-3,884,243.8s
-t,029,785.61
4,077,274.34
685,984.31
-2,021,641.6r
-212,977.U
2,528,640.00
112,002,092.36
6,653,256.84
-33,088,3s3.?3
-2,098,480.9r
E5897,154.56
-10,557p25,58
179,619,058.05
255,058,987,03
Poge9
Luxcellence- Diversified Portfolio
Poge l0
Luxcellence - Diversified Portf olio
Manager's Report
During the reporting period (from 0913012009 to 09/30/2010) the Federal Reserve (Fed), the Bank ofEngland @oE) aud, later in the year, the European Central Bank (ECB) tried to keep the economicmechanism efficient in a "coordinated" effort in order to avoid the feared econornic double dip.
For the frst half of the period, the public fiscal policy was used as stimulus in Europe as well as inEngland and in America; in the second part of the year, however, UK and Europe (especially itsperiphery) have begun to focus on fiscal discipline to try to fix the public finances while the UnitedStates continued to use fiscal policy that rvould promote economic recovery.The high degree of liquidity in the systern, even if not transmitted to the public, supported the
beginning of a healing process in the financial sector. With the chance of a roll-over of the toxic assets
held by banla, the primary market of corporate bonds regained pace and featured spreads that were farless volatile than in 2008-2009.
Conceming sovereign debt the bigger clouds came from the European penphery because, after thebailout of Greece in May, the uncertainty about the ability to repay the debt by Ireland, Portugal, Spain
and Italy continued to strengthen (and consequentty peripheral bond spreads widened).Meanwhile the real economy siarted to regain momentum with a sharp increase in indushialproduction and a recovery in intemational hade. Some concerns still remain on high number ofunemployed in the Westem economies while a broad economic stimulus helped stabitize the privatedemand.
In this picture, US stock markets kept rising with S&P 500 np 7,96% during the period and Nasdaq
100 up 16,23%. In Europe, even the stock markets suffered the problem of the European peripherywith the core markets up @AX t9,75yo, FTSE 100 +8,08%) and the periphery down (MIB 40 -I2,64yv,IBEX 35 -10,56%). The Pan European Eurostoxx 50 index retraced by 4,34%.Differences among markets rvere driven most by the nature of the recovery, which rewarded the
industrial and consumer sector while financials continued to languish.For asset managernent, it was a very challenging year dominated by the loss of consistency of the mostcommon inter-market correlation.
Next year witl be crucial for understanding the sustainabitity of economic recovery. It will be
important to observe the reaction of the ecoromy at the end of the monetary stimulus that the Fed and
the ECB are implementing.Concerning the real economy, in the 2011 there should likety be a significant reduction ofunemployment rate while the private deuoand should remain at current level even without extemal aidin order to consider the economy into a sustainable recovery phase. Financial sectors could sufler,more than others, the reduction of liquidity in the markets.Concerning bond markets, the outlook for 2011 depend on the effectiveness of fiscal consolidationmeasures adopied, however, if the debt crisis would involve Spain and especially Italy so the
European debt markets (including core Europe) would suffer heavy falls.
Luxembourg, January, 201 I
The figures stated in this report are historical and not necessarily indicative of future perfonnance.
Poge | |
Luxcellence - Diversified Porlf olio
Financial Statements at 30/09/10
Statement of net assets at30/09110
Erprcssed tu EUR
Assets
Cosh oi bonk ond liquidities
Liobilities
Toxe d'obonnement poyoblePerformonce feesAccrued monogemenl & odvisory fees
Oiher liobilities
Net osset volue
Copilolisolion shores
Toiol Net Assets
Capitnlisation shares
Number of shares
Net asset value per share
Note 3
Note 4
Note 4
Changes in number ofshares outstanding from 0l/10/09 to 30/09/10
TrpssJns9
71,!55,127.39
95,852.42
8,908.19
40,450.53
21,98r.78
24,511.92
71,259,274.97
SharesShares redeemed outstandlng at
3A109110
92,303.736 620,681.703
SharesoutstandiDg Bt
0ul0/09
712,985.439
Year endbtg al:
EUR
Shsres issued
30t09tLo
71,259,274.97
620,681:t03
114.80
30t09t09
80,976,595.91
712,98s.439
113.57
30/09i08
u,992,s22.58
770,789.769
I10.35
0.000
Key figrues relating to the last 3 years
Tbc occoopalying notcs forr! a! iDte8rol port ofthese financill stotemctrts
Pogs l2
Luxcellence - Diversified PortfolioStatement of Operations and Changes in Net Assets from 01/10/09 to 30/09i l0
Emressed in EUR
lncomeNet dividendsNet interesi on bondsBonk interest on cosh occount
Expenses
Amortisotion of formotion expensesMonogement & odvisory feesCustodion & sub-custodion feesToxe d'obonnementAdminislrolive expensesPerformonce ond License feesDomiciliotion feesProfessionol feesBonk inierest on overdroftsLegol feesOther expenses
Net income from investments
Net reolised profit / loss on:
- soles of investment securities- options- finonciol fufures- foreign exchonge
Net reolised profit
Movement in net unreolised oppreciotion / depreciotion on:
- investments
Increose in net ossets os o result of operqtions
Redemption copiiolisotion shores
Decreose in net ossets
Net ossets ot the beginning of the yeor
Net ossets qt the end of the vesr
Thc cccortparying dota fomr an idlcg.il pon oflhatc fimdcial Etrteficntg
Note2.5
Note2.5
Note2.5
Note 2.6
Note4
Note4
Note 3
Note4
Note2,2
Note 2.3
Note2,9
Note2.8
Note24
513,539.10
2,8t7.39
510,533.70
188.01
299,129,8t
156.39
89,463.97
39,570.47
26,558.78
45,194.22
40,450.53
1,875.00
8,074.57
1,80r.84
14,084.27
3r,899.79
^4f4n9.27
2,183,9t3.18
r0,578.00
-152,654.11
10,186.51
2,866132.85
-2,018,266.13
u8,166,72
-10,565,487.66
-9,7r732n.94
80.976.595.91
71,259,274,97
Poge l3
Luxcellence'Genesis Fund
Poge l4
Luxcellence - Genesis Fund
Manager's Report
During the year from September 2009 until September 2010 the sub-firnd performed + 9.52%.For the same period the US equity market was positive approximately 736% (S&P 500) and theEuropean equity markets were on average positive approximately 1.15% (DJ Eurostoxx 50 i.e. SX5PIndex). During the same period the bond market had a performance of approximatety 6.08%.
For nruch of November, most financial markets and assets were supported by sigus that the recovery wasgaining kaction, comments frorn Cenkal Banks that they would remain supportive and indications thatthe massive infirsion of liquidity that has supported asset price appreciation would not be withdrawn inthe near temr.Throughout November, economic data was supportive. Economists and the World Bank alike upgradedgrowth estimates for 2010 with China and other Asian economies expected to grow faster than previouslyestimated. Consumer confidence in the UK was beginning to show signs of improvement, consumerspending in the US and Europe is beginning to improve and home sales in the US were recovering.During November, the Bank of England (BoE) and the European Central Bank (ECB) both teft interestrates unchanged and the Federal Reserve (Fed) indicated that they would keep interest rates near zero for"an extended period'. Financial markets continue to benefit from the excess liquidity that is seekinghigher rates of rehrm. With interest rates, particularly in the US, at or near zero an ever expanding supplyof money was supporting risk assets,
Market activity in December nrirrored the major asset class performances that we saw for much of the
second half of 2009. Given the continued underlying strength in equity markets, bond markets came
under pressure during December. Bond markets have been under selling pressure as investors have
become increasingly concemed that policy makers from many economies with large fiscal deficits havegiven few prooouncements toward their plans to tackle their rising debts. In the currency markets the US
dollar was generally fimrer, appreciating against the yen as the lapanese economy sank further intorecession and also rising against the Euro as the markets become focused on the stability of the monetaryunion given rising fiscal deficits in a number of member counhies such as Greece and Portugal. TheAlternative Inves&rents posted a positive rerum of 0.64% in December, totalizing a YTD positiveperformance of. 13.7 7
o/o.
The year began on a positive note with optimism that global growth would continue to gain momentumand stimulus measures would onLy be withdrawn once the recovery was well enffenched, An increased
number of asset allocators added risk by overweighting equities, high yield credit and emerging markets.A level of complacency emerged based upon a view that any potential issues, such as higher rates orreduced stimulus measures, would not present themselves until the second half of the year.
After moving higher, most risk assets have recently retreated in rcsponse to a number of events, China'sattempts to limit lending and begin withdrawing stimulus me.rsures, the Greek budget deficit, Obama'sproposal (the Volcker Rule) to reduce the risk profile of US banks and even speculation that BenBernanke w'ould not be reappointed Fed Chainnan all combined to reversie the momentum that had drivenasset prices higher.In March the focu has shifted from balance sheet liabitities to fiscal deficits and sovereign debt. Years offiscal irresponsibility and the recently imFlemented stimulus meiuiwes have led to unsustainable fiscaldeficits and to concerns of defautt and economic decline. Thus far this focus has been timited to a
relatively small number of countries, but the reality is that these issues have become endemic to mostwestem countries. As the scope and magnitude of those considered "too big to fail" expands, both the
ability an<l willingness to provide support will be severely tested.
Poge l5
Luxcellence - Genesis Fund
Manager's Report (continued)
When Dubai faced the possibility of default, Abu Dhabi provided support, but it is unlikely that these
loans did not come with strings attached. Now that Greece was facing a fiscal crisis, the European Union(EU) has pledged "determined and coordinated action" but bas failed to provide tangible details ofsuchsupport aod how it rvill be provided.
The fiscal issues that have been highlighted by Greece are not urique. If Greece were to default focus
would immediately shift to the other little PIGS (Porhrgal, Ireland/Italy, Greece and Spain) who share
similar undesirable fiscal characteristics. Ironically, the fi.urdamental fiscal positions of Greece and the
other PIGS are not all that different those of the UK and US. The UK was running a fiscal deficit ittexcess of 12.5% of GDP and the US was expecting to run a deficit in excess of l0%. The fiscal situationin the US was expected to remain under pressure with the US Congressional Budget Office zuggesting
that the US will "never" run a balanced budget again. What is different from Greece is that neither the UKnor the US is in danger of default. For the foreseeable future they will continue to have the ability tofinance their fiscal positions, but it may increasingly come at higher costs.
In April we saw the global recovery in the early stages of development and was therefore fragile. The
fears and issues outlined above are still real and must be addressed accordingly,In the meantime, investors have begun to look beyond many of the negatives and have cbosen to focus
upon the improving outlook.
Market sentiment has risen significantly and volatility has fallen dramatically. As markets gain
momenfum an air of complacency has begun to emerge. Investors, many of whom were underinvestedand all of whom are under pressure to perform, are increasing exposure to risk assets and reducing theircash positions. Cash within US equify mutual ftnds was reduced &om 5.7o/o to 3.6Yo at a pace faster than
at any time in the past 18 years.
The last time cash was at these levels, the market was about to begin a 57%o decline. While supportiveflrndamentals and reasonable valuations would zuggest that such a market correction was extremelyunlikely, the prevailing level of complacency and consensus view that the "best of all worlds" can be
sustained may be setting the stage for a pullback. The market risks that seemed so troubling not long ago
still exist, but have been obscured by investors who, perhaps unwisely, are focusing inteutly and
exclusively upon economic recovery.
The pace at which the global economy and corporate profits were growing in May was truly remarkable.
The global recovery was not only being supported by economic activity within China and the emergingeconomies, but also from positive hends in developed counties. V/ithin Europe, Japan and the USmanufacturing and consumption has exceeded expectations and leading indioators are suggesting that the
recovery is taking hold. Even some of the more problematic areas, zuch as employment and real estate,
are showing signs of modest improvement. Likewise, corporate profits were also surprising on the upside.
During the first quarter US and European eamings are expected to grow by 45% and 50% respectivelyand of those companies that have already reported, over 70olo have exceeded analyst's estimates. Eamingsestimates are being ilcreased at a rate not seen since 2006 reflecting the growing confidence thatcompaoios will benefit from the improving economic environment.
The recent Greek crisis and broader European fiscal issues have zubjected the Euro to sipificant pressure
in June. Some have even gone so far as to suggest that this may be the "beginning of the end", whileothers contend that this is merely the "end of the beginning". The problems inherent to the Euro have
Pogs 16
Luxcellence - Genesis Fund
Managerts Report (continued)
been clearly illustrated by the crisis and it is becoming increasingLy apparent that the EU must embrace
change; change which may ultimately lead to a stronger more stable Euro . .. or to its obsolescence,
During the past 6 months the Buro has gone from being the "reserve currency in waiting" to facingpossible extinction.
As we mark the half way point of 2010 many investors are questioning whether the glass is half empty orhalf firll. The year has seen markets rise and markets fall as economic, geopolitical and corporate events
are reviewed and reassessed based upon the most recent data, development or results. As we entered the
second half of the year markets will continue to react to this ebb and flow of information as inve$tors
assess rvhether the glass is indeed halfempfy or halffirll.
There is an enonnous divergence of opinion over the strength of the gtobaL economy, the sustainability ofcorporate eamings, 0re role that financial reform will play and the impact of fiscal defrcits on gtowth and
the implementation of effective fiscal and monetary poticy. While bulls and bears may see these issues ineither a positive or negative light, some of the prevailing views and perceptions may not firlly oraccurately reflect these issues,
As we embark upon the second half of the year it will become increasingly evident as to whether furtheraction is required or whether current policies and initiatives are sufficient to address prevailing issues ineffect, whether the glass is half empty or half full.
There is little doubt that the economic and finaucial environment has shown broad improvement.Investors, keen not to repeat their mistakes of 2009, have proactively increased their exposure to riskassets in the hope that the prevailing environment of economic growth and accommodative monetarypolicy will be sustained, Many of the concems and risks that weighed so heavily upon investor sentiment
and threaten economic grorvth have faded into the background (at least temporarily).Some investors seem to believe that they have zuccessfirlly scaled the wall of worry while others appear
to be in the process of dismantling it, yet the bricks remain, and it may not be long before a new wall isunder construction. Wrile liquidiry will be suffrcient to support markets in the near term, for markets to
be sustained on a long term basis, it is critical that some of this liquidity begin to see its way into the real
economy. Until there is greater evidence of this capital flow, it will be difficult to establish the stongeconomic foundations that are necessary to support a robust financial system and higher asset prices.
Markets and investors have become "good news junkies" and require their daily fix. The events of the
past month have served as a wakeup call to the issues that persist. After flirting with economic and
financial Armageddon, it is implausible to believe we could rehrn to normal unscathed. We will continue
io face the fallout from 2008-2009 and witl be forced to content with the effects of a divergent recovery.
While this may result in greater volatility and require inoreased investor vigilance, evidence continues to
build that the global economy is on the road to recovery. There will be disappoinrnents along the way,but also sufficient positive news to provide investors with their required fx.
Globat Wealth Management SA
Luxembourg, January, 201 I
The figures stated in this report are historical and not necessarily indicative of future perfofinance.
Poge l7
Assels
Securities porifolio ol morkei volueCost price(Jntealised depreciation on the sedrities ponfolio
Cosh oi bonks ond liquiditiesBroken receivobleDividends receivobleUnreolised net oppreciotion on finonciol futures
Liobilities
Brokers poyobleToxe d'obonnement poyobleAccrued monogemenl & odvisory feesOlher liobilities
Net ossei volue
Luxcellence * Genesis Fund
Finaneial Statements rt 30109 ll0Statement of net assets at30lA9/fi
Eryressed tu EUR
Sharesoutltrnding at
01/10/09
410,627.132
Key figures relating to the last 3 years
Year ending at: 30/09/10
EUR 2r,696,525.M
392,176.132
55.32
The ac{oEpalyirg loles fom ar itltlgral palt oftb€sc iualcial sblrm.nts
Note 22
Note 6, 2.8
Note3
Note 4
Changes in number of shares outstanding from 0l/10/09 to 30/09/10
22,049,750,60
20,620,325.6522,171,621.92
-1,551,296.27
t,044,233.27
2s9404.42
15,787.26
l10,000.00
353,225.56
303,364.72
1,946.21
36,615.40
lt299.27
21,696,525.04
SharesShares issued Shares redeemed outstaDding at
30/09/10
0.000 18,451.000 392,176.132Copilolisolion shores
Tolol Net Assets
Capitalisadou shoresNumbcr ofshores
Net asset volue per share
30i09/09
20J12,',l89.95
410s27.132
50.51
30i09/08
23,787,505.99
441,728.1t2
53.8s
Po96 l8
Luxcellence - Genesis FundSecurities portfolio at 30/09/10
F,xprcssed tu EUR
qt!.ndry Dcdomh6tios QuohtiotrculrEtrcy
o/o sf.sdtltiltxea tdluc
|lESC(s
Tronsferoble securities odmitted to on officiol stock exchonge listing qnd/or deolt inon cnoiher reguloted morket
Shores
A uslnb15,855 VOESTALPINE AG
Be,gium7,550 ANHEUSER.BUSCH TNBEV Nv
15,819 D$(IA4,500 a{coRE
Denmork6,000 vEsTAs \I'IND SYSIEI{S
Finlond30"200 NFSIE OrL3?,750 NOKIAOY'I1,325 SAMPO OYr-A-22,650 IJPM KI'IUMENE CORT
Fronce5,669 AIR LIQUIDE SA
3,500 AtsToM sA6,5?5 BNP PENIBAS SA
8,()OO DANONE SA *
15,100 FRANCE TELECOM SA
I,88? UORE{L SA18,8?5 SUEZ EIMRONNEMENT COIIIPANY SA
5,662 TOTAL SA
Germony3,??5 ALLTANZ SE REO SHS
3,?75 BEIERSDORF AG4,000 DEUTSCHE BANK AC REC SHS
3!7?5 HEIDELBERCCEMEI.IT AG
4152 IJNDE .A6914 MUENCHEI.IER RUECKVERSICHERUNCS AG REG SHS
t2,835 SAP AG3,775 STEMENS AC REG SHS
7,550 NTYSSENKRUPP AG
Greece8,682 PIJBLIC POWER CORP OF GREECE
Itoly22,650 ANSALDO STS SPA
1I,?78 ASSICURJqZI OM GENERALI SPA
37,500 AUTOGRILL SPA *
26125 BENETTON GROUP SPA
?5,500 CAMPARI POST FRAZIONANIENTO
7,474 DTASORTN
151,000 EDISoN sPA '149,200 ELTCA S.P.A.
11,300 EMSPA.1,550 ERC SPA
34,000 IrAI-TCEMENTI SPA I40,000 MEDIOBANCA SPA *
I I ,325 SAES CETTERS
60100 srAs sPA75,500 SNAM RETE CAS SPA
70,000 sor.I I3J5O TERNA SP.{ '
Luxembourg2,265 ARCELORTTfiTTAL SA REG SHS
SPoinr5,r00 ENAGAS
Sweden25,500 BOLIDEN AB
Swkedond3,246 HOLCIM LTD REC SHS
4,983 NESTLE SA R-EG SHS
8,305 NOVARIIS AG REG SITS
2,265 ROCHE HOLDING AG GBNUSSSCHEIN
Thc accomo! ying notls form ao intcgrrl ps.t ofthcsc finlocial Etatcmcots
EUR
EUR
EUR
EUR
EUR
EUR
E1JR
EI,JR
EUR
EIjREIJR
ETJR
EIJR
HMEUR
ETJR
ETJR
EUR
ETJR
E{mET'REIID
Et,RET.IR
EUR
EUR
EIJR
EIIR
EUR
ETJR
ETJR
ETIR
ETJR
ET'R
EUR
EI'RFt tp
EUR
EUR
EUR
EUR
EUR
ETJR
FIID
ETJR
SEK
CHF
CHF
CHF
CI{F
14191,359.41 66,79%
L119L359.11 66.79v.
431.t76,73 1.99%41r,t16.13 1.99%
523,102,17 2.41%329,029,00 t.st%.t9,845.67 0.21%
a444X7.50 0.61%
162,840.00 0.75%162"840.00 0.75%
1,r18.04r.75 5.15%339,?50.00 1.51%
212,L71.50 t.25r/o
n3,668.75 1.03%
282,445.50 t.N%
2,215,898.40 10.21%
5t2,024.08 2.36%
131,250.00 0.(t1%
34qr98,25 r.6r%
35r,480.00 t.62%
2A\r28j0 t.t2%155,015.92 O.1t%
259,908.75 t.20%
211,87290 0.99%
2,214,278.49 10.2r%315,892.00 1.46%
t67,98',t.5s 0;1',1%
157,040.00 0.12%
f33,880.38 0.62%
40/32t.76 t.86%
96,004.80 0.44%
468,220.80 LL1%292,86.1.50 1.35%
418566.75 O.82%
99,843.M 0,16%99,843.00 0,46v"
3,989,689.19 18.39%214,495.50 0.9v4l72t90l.M O.K%
3.15,562.50 1.59%
148,112.13 0.68%
129,557.50 1,52%
,817 ,92 | .04%
140,883.00 0.65%
225,739.60 | .U./.179,557.00 0.83%
73J2s.75 0.34%
22t,1',10.00 t.02%269,000.00 l.u%70,X28,25 0.32%
4n,9y..o$ 1.97%
2??A62s0 1.28%
318,500.00 r,4'l%349,942.59 l.6L%
55,096,t3 0.25%55,096.13 o.25Yr
223,25i,50 1.03%223,253.50 t,OrL
285,422.85 L32%28542,.85 t32%
930,251.37 4,29%155pr2.10 0.72%
r96,96t;12 091%353,61',1.32 r.63%
224460.23 t.03%
Pqge l9
Luxcellence - Genesis FundSecurities portfolio at 30/09/10
Expressed in EUR
Qutltity DcoomiagtioaQuolatiJDcDrrlrrcy
Morket volucY. oI Del
8SSCI5
Ihe Nethertonds9,060 AATBERTS INDUSTRIES NV
IO,OOO HEINEKEN}TVI2,5OO KONINKIIJKE PHILIPS ELECTRONICS }W22,650 STMICROELECIRONICS NV
I5,IOO UNILEVER}w
United Kngdom22,650 BHP BILLITON PLC
24,915 DIAGEO PLC
4'OOO MEGGITT PLC
United Slotes of Arnen'co45,OOO LEIIMAN BROT}TERS HOLDINGS INC
Shores of Ucis
Shores/Unlts In Investmenl funds
Luxernbo urg37.650 GWM SICAV GLOBAL OPPORTUMIES -G CAP
4q000 7Ir slcAv ABSoLUTE -A- EUR DIS
Froclions
Total securities porffolio (* Note 8)
ET'R
EUR
ELIR
EI,]R
EUR
GBP
CBIIGBP
USD
1,23t,315.85 5.69%
I ,0?5.60 0.519',0
376850.00 t.73%
288,3t2.50 t.33%
127,t79.75 O.'f/o331,898.00 1.53o/o
1,005,t13.4553\074.35
3t7 244,73
t55,7 .37
1.836.531,836.53
6128,93.00
612&e34.00
6,128,9t1.00 28.25%
a016,534.00 9.29%
4l12J00.0S 18.960/o
32.24 0.00q,6
70,620)2s,65 95,04V.
4,63962.45%
t.46%0.72%
0.01%0.01%
28.25%
zE.E h
IiTTP
EI'R
Tha occomp{|ying lotca forDo an iDtrgral p8rl ofthesc firlDcial stltemclts
Poge 20
Luxcellence - Genesis Fund
Statement of Operations and Changes in Net Assets from 01/10/09 to 30/09/10
Exoressed in EUR
lncomeNet dividendsNet interest on bondsBonk interest on cosh occountBonk interest on time deoosits
Expenses
Monogement & odvisory feesCustodion & sub-custodion feesToxe d'obonnementAdminislrolive expensesDomiciliotion feesProfessionol feesBonk interest on overdroftsLegol feesOther expenses
Net income from investments
Net reqlised profit / loss on:
- soles of investment securifies- finonciol fufures- foreign exchange
Net reolised profit
Movement in net unreolised oppreciotion / depreciotion on:
- investments- finqnciol futures
Increose in net ossets os o result of operotions
Redemption copitolisotion shqres
lncreqse in net ossets
Net ossets ot the beginning of the yeor
Net ossets ot the end of the yeqr
Note2.5
Note2.5
Note2.5
Note2.5
Note4Note4
Note 3
38&993.09
386,004.85
2,581.72
329.52
77.00
254,942.95
156Jr0.16
17,429.52
9,300.26
23,367.02
2,000.00
r0,304.00
12,345.t'7
826.96
22,659.86Note2.2
Note2.3
Note 2.8
Note2.4
134,050.14
88,043.00
290,002.00
60,424.14
572,519.28
1,033,08r.19
351,500.00
1,957,L80,47
- t,003,365.38
953,735.09
2A,742,789.95
21,696,525.04
Pog€ 2l
Luxcellence- ICON Conservative Euro
Poga22
Luxcellence - ICON Conservotive Euro
Manager's Report
Equiry markets rose strongly in March 2010, surging to their highest level since September 2008, as
market focus shifted from sovereign risk to the global recovery story.Robust business surveys across the globe confirmed the improvement in manufacturing activity.
Fears of a sovereign default in the Euro zone receded with the announcement that European leadershad finally agreed on a rescue package for Greece,Equity markets are now in positive t€rritory year to date, having effaced all the losses incurredbetween mid-Ianuary and mid-February.The euro remained under pressure, edging down to 1.35 against the dollar. Commodity prices wereunderpinned by solid data from China confirming that Chinese demand would continue to be a driverfor the sector.
Regarding our invesftnent policy, we remain overweight on equities by 3% and slightly on bonds. Theeamings cycle is improving and though earnings revisions decelerate, they remain on a positive tend.Nevertheless, investors are more and more focused on the exit strategies ancl their impact on themonetary and fiscal policies which still remain loose.
In response to the request by the board to liquidate the Fund, we reduced in Aprit our exposure to midcap stocks in order to increase the liquidify of ihe portfolio and reduce the tracking error with the
benchmark.
Luxernbourg, January, 20 I I
The {igures stated in this report are historical and not necessarily indicative of funre perfolrnance.
Pqge 23
Assels
Cosh ot bonks ond liquidities
Liqbilities
Toxe d'obonnemenf poyobleOther liobilities
Nel ossef volue
Closs ACopilolisotion shores
Closs B
Copilolisolion shores
Tolol Net Assets
Closs A
Capitalisation sharesNumber of shares
Net asset value per share
Closs B
Capitalisation shores
Nurnber ofshares
Net asset value p€r sharc
Luxcellence - ICON Conservotive Euro
Financial Statements it 23 I 04110
Statement ofnet assets at23/04/10
Expresscd in EUR
Note 3
Changes in nurnber ofshares oulstanding &om 0lil0l09 to23/04/10
5,840.58
5,840.58
5,840.58
33.26
s,807.32
Key figures relating to the last 3 years
Period ending at: 23104110
TIlo ac{oDrpaD}ing Do&s foro .r int.gral pon of lhasc finamiol 6tatcnEnt8
SbaresShores redeemed outstandiing at
23104110
2,572.?tO
9,15.{.000
30/09i09
r,076,600.41
EUR
2,572.230
92.44
EUR
9,154.000
91.64
30/09/08
7,575,32t.43
EUR
4,572.230
92.M
EI.JR
12,s69.000
91.85
Sharesoutstanding at
0ut0t09
2,5',12.230
9,1s4.000
Sbares issued
0.000
0.000
0.000
0.000
Poge 24
Luxcellence - ICON Conservotive Euro
Statement of Operations aod Changes in Net Assets from 01/10/09 to 23/04110
Expressed in EUR
rncome
Net dividendsNet interest on bondsBonk interest on cosh occount
Erpenses
Amortisotion of formotion expensesMqnogement & odvisory feesCustodion & sub-custodion teesToxe d'obonnementAdminisfroiive expensesDomiciliotion feesProfessionol feesBonk interest on overdroftsLegol feesOther expenses
Net loss from investments
Net reolised profit / loss on:
- soles of investment securities- finonciol futures
Net reolised loss
Movement in net unreolised oppreciotion / depreciqtion on:- investments- finonciol futures
Decreose in net ossets os o result of operotions
Redemption copitolisotion shoresClass A
Class B
Decreqse in net ossets
Net ossets ot the beginning of the period
Net ossets ot the end of the period
Thc occoopsnyi.rg ootes fomr an iatcgml part ofthcsc fittidcial 6tat.mcn$
Noie2.5
Note2.5
Note2.5
Note2.6
Note4Note4
Note 3
Nore2.2
No!e?.3
Note2.8
19,668.61
t,826.77
t7,837.71
+.tJ
78,44439
8,478.05
33,645.s0
505.71
299.2r
19,426.42
1,404.08
6,r50.16
6.05
5,175.24? 14? (l7
-58,775.78
45187.94
t0298.96
-2,988,88
-26469.21
-620.00
-30,078.09
-t946,522.32-231,827.82
-814,694.50
-1,076600.,11
1,076,600.41
Poge25
Luxcellence- ICON Dynamic Euro
Poge26
Luxcellence - ICON Dynomic Euro
Manager's Report
. Equify markets rose strongly in March 2010, surging to their highest level since September 2008, as
market focus shifted from sovereign risk to the gLobal recovery story,Robust business surveys cross the globe confirmed the improvement in manufacturing activity.
Fears of a sovereign default in the Euro zone receded with the announcement thai European leadershad finally agreed on a rescue package for Greece.Equity markets are now in positive territory year to date, having effaced all the losses incurredbetween mid-Ianuary and mid-February.The euro remained under pressure, edging down to 1.35 against the dollar. Cornmodity prices wereunderpinned by sotid data from Qhins seafirming that Chinese demand would continue to be adriver for the sector,
Regarding our investoent policy, rve remain overweight on equitiesby 7% and on bonds by 70 bpof dwation. The earnings cycle is improving and though earnings revisions decelerate, they remainon a positive heud.Nevertheless, investors are more and more focused on the crisis exit strategies and their irnpact onthe monetary and fiscal policies which still remain loose.
In response to the request by the board to liquidate the Fund, we reduced in April our exposure tomid cap stocks in order to increase the liquidity of the portfolio and reduce the tracking eror withthe benchmark.
Lrxembourg, Ianuary, 201 1
The figures stated in this report are historical and not necessarily indicative of future performance.
Poge 27
Assets
Cosh oi bonks qnd liquidities
Liobilities
Toxe d'obonnement poyobleOiher liobilities
Net ossei volue
Closs ACopiiolisofion shores
Clqss BCopitolisolion shores
Totol Net Asseis
Closs A
Cnpitalisation sharesNumber ofshares
Net asset value per share
Closs B
Capitalisation sharesNumber of shares
Net asset value per shore
Luxcellence - ICON Dynomic Euro
Financial Statements * 23 / 04 I l0Statement of net assets at23lM/10
Expressed in EUR
Note 3
Changes in nrunber ofshares outstanding from 0l/10/09 to 23/04110
s,321.02
5,527.02
5,521,02
23.96
s497.06
Sharesoutstanding at
01/10/09
2,500.674
13,124.374
SlraresShares issued Shares redeemeil outstsnaling at
23104/l0
0.000
0.000
2,500.674
13,t24.374
0.000
0.000
Key figures relating to the last 3 years
Peiod ending at: 23l04ll0
Tbe ocaoEpatryirg Dotw fono a! irrlegml p{i of fte$€ fi.Dorcicl srtes|cnts
3U09tng
1,26't,912.79
EUR
2,s00.674
81.95
EUR
13,124.374
80.99
30/09/08
2,424;748.20
EUR
5,680.60s
86.25
EI.JR
2249s.351
86.01
Poge28
Luxcellence - ICON Dynomic Euro
Statement of Operations and Changes in Net Assets from 0l/10i09 to 23/04/10Emressed in EUR
lncomeNet dividendsNet interesi on bonds
Expenses
Amortisoiion of formotion expensesMonogement & odvisory feesCustodion & sub-custodion feesToxe d'obonnementAdminishotive expensesDomiciliotion feesProfessionol feesBonk interest on overdroftsLegol feesOf her exoenses
Net loss from investments
Net reolised profit / loss on:
- soles of investment securiiies- finonciol futures
Net reolised loss
Movement in net unreolised oppreciotion / depreciotion on:
- investments- finonciol futures
Decreose in net ossets os o result of operotions
Redemption copitolisotion shoresClass A
Clu;s B
Decreose in net qssets
Net qssets of the beginning of the period
Net ossets ot the end of the period
Nots2.5
Note2,5
Note2.6
Note4
Note4
Note3
Note2.2
Note 2.3
Note2.8
14,614,03
7,123.U
?,490.39
82,598.99
8,478.05
34,85t.72
553.09
276.63
t9,464.43
1,404.08
6,150.16
57.27
4,008.33
7,355.23
-67,984.96
-5,971.40
9,249.39
-64,706,97
58,368.15
-870.00
-7,2t8,82
-1,260,701.97-203,077.41
-1,057,626.56
-1,267,912,79
1,261,912.79
Poge29
Luxcellence- Polunin Emerging Markets Technology Fund
Poge 30
Luxcellence - Polunin Emerging Morkets Technology Fund
Managerts Report
The fourth full year of performance history for the Fund was characterised by a good perfomrancerelative to both the MSCI EM Information Technology index, and also compared to the much broaderMSCI EMF index of alt emerging counffies and sectors. Over the year the Fund NAV rose *26.0Yo,whereas the MSCI EMF m Index rose +9.5% and the broader MSCI EMF index rose +17.7%.
In contast to last year, the Fund's lack of exposwe to the largest companies in the sector benefitted itsperformance significantly as most such stocks were poor performers. The exception was Infosys inIndia which rose t4Lo/o. Elsewhere Samsung Electronics fell -0.7Vo, TSMC fell by -15% and Hon HaiPrecision rose only +4.7%. Most of the action occurred in specific sectors such as Photovoltaic cellmanufacturers, where the Fund maintained a good allocation throughout the year. These sectors arenot well represented in the benchmarks and are poorly analysed by the principal inveshent banks.This lack of information has created a great deal of ineffrciency in valuations which the Fund was ableto successfirlly exploit during the year.
The overall attitude of gtobal investors to the technology sector has continued to improve from thevery low levels of interest witnessed at the top of the comrnodities boom 1n2007 and 2008. Potentialinvestors are at least wilting to hear the investment case
for a larger allocation to the Technology sector, but feware witling to commit capital to the idea at this stage.The NASDAQ index continues to outperforrn both theS&P500 (which has a significant Technology weighting)and more particularly the MSCI World index of gtobalequities, Within emerging markets, Tecbnology sectorshares performed exceptionally well between the top ofthe commodity boom in 2007/2008 and mid 2010, sincewhen the perforrnance has come off the boil as higherbeta sectors have taken a lead in the emerging marketsrally that started in September.
The following perfomrance charts of the DatasheamEmerging Markets Technology index highlight itsperfonnance in relation to some currently popular assets
classes. The first chart shows that emerging marketTechnology shares have fallen by over 90% compared withthe gold price since their peak in 1999. HoweverTechnology staged a very strong rebound in 2009 and thejudgement of the market for the future is still uncertain.
ou@erforming hanGomely since the mid
Compared rvithgtobal equities(Chart 2),
Technologyshares have been1990s. However
this likely has had more to do rvith their emerging marketcharacteristics than with their Technology sector status.Lastly, rvhen compared to the best performing asset class,global emerging market equities (which of course includesthe best sectors of the last decade such as raw materials andbanking), the picture is less clear (see Chart 3). TheTeclmology sector within emerging markets suffered terribly following the tech bust in 2000,
deslining by -75% up to 2007, Since then tech has started to perform much better, but has barelyrecovered any of its previous losses.
rrEsNOat</ilJwf,ll)5FRCt\r i7,,l t /64 TO r 7/t rn O MOt.tlr-Y
oz*or-d-oi-os-o7oi-iii-iii
Pqge 3l
Luxcellence - Polunin Emerging Mqrkets Technology Fund
Manager's Report (continued)
Market participants put forward many theories and reasons for this chronic underperformance. The
technology investment glut of 1995 to 2002 is still being worked off, with excess capacity in many
sectors. Companies have little pricing power and consolidation among ildustry players has been
virtually non-existent. Tecbnology sector balance sheets in Asia are so strong that refum on equity
appears to be permanently depressed. The list of reasons continues. The key question is how much ofthis bad news has been discounted by the markets. We believe the Fund is well positioned to benefitfrom any change of investor sentiment to this asset class, and that any such change is much rnore
likely to be positive than negative at this stage ofthe cycle.
Luxembourg, January, 20 1 1
The figures stated in this report are historical and not necessarily indicative of future performance.
Poge 32
Luxcellence - Polunin Emerging Morkets Technology Fund
F inancial Statements at 30109 I L0
Statement ofnet assets at 30/09/10
Expressed in USD
Assets
Securities portfolio of morket volueCosl priccUnrealised apprecialion on the sccltrities poflfolio
Cosh ot bonk ond liquiditiesFormotion exoensesBrokers receivobleDividends receivobleOther ossets
Liobilities
Toxe d'obonnement poyobleEquolizotion poyoble to shoreholdenSubscriben poyobleAccrued monogement & odvisory feesPoyoble on spot exchongeOther liobilities
Net osset volue
Closs ACopitolisotion shores
Totol Net Assets
Closs A
Capitalisation shares
Number ofohares
Net a-sset value per sh8re
Note2.2
Note2.6
Note 3
Note4
Changes in number ofshares outstanding from 01/10i09 to 30/09i l0
14,U0,186.8r
ShoresShares redeemed outsttnding st
30/09/t0
8,510.477 12,7&5.929
11,264,203.06
13,975,227.7313,838,753.00
136,474.7j
17,032.46
1,32L34
237,19r.36
rr,930.u21,499.93
94,016.25
354.32
2t,499.93
r3,786.55
s2,304.96
tL2.&5,95?.85
Sharesoutstanillng et
0r/r0/09
15,026.078
Shsres Issued
6,270.328
Key figures relating to the last 3 years
Yearendingat: 30109110
usD 14,170,186.81
USD
r2,785.929
1,108.26
30/09/09
13,2r 1,668.43
USD
rsg26.0'18
879.25
30/09i08
22,046,s48.40
USD
32,t78.468
685.13
Poge 33
Luxcellence - Polunin Emerging Morkets Technology FundSecurities portfolio at 30/09/10
Erprxsed in USD
Qu@tity Dt!omiDsliooQ!olalion Morket Yoluc
Y.of NIoseE
Tronsferoble securities odmitted fo on officiol slock exchonge lisling ond/or deoll inon onoiher reguloted morkel
Shares
Bermudo7,361900 CHINA SOI.AR TNERGY
&ithh Vkgin lslonds33JOO RENESOLA
9,400 RENESOI,,A . ADR REPR 2 SHS
coyrnon ls,onds7O2OO CIIINA SUNERGY ADR RTPR"SIIS
5I,OOO JA SOLAR HOLDINGS CO LTD.ADR REPR I SIIS
39,IOO I,DK SOLAR- ADRRECEIPTREPR I SII
I 3OO NEW ORIENIAL EDUCATION & TECH.GR ADR RBI29.600 SOI.ARFUN PO\VER HLDGS -ADR. F.ECPR 5 SHS
395.OOO SOLARGIGA ENERGY
I83,IOO TI{E I.NITED I.ABOMTORIES INTL HLDG LTD
Chino6t 4200 BEDING DONGFANG ELECTROMCS GROIIP -B-
Hong Kong295,OOO TMUSON HOLDINGS COMPA}IY LlD
Maloysio258,960 UMSEI'I (M)
Singopore43OO,OOO GUANGZiAO INDUSTRIAL FORNST BIOT.GP.LTD
South Koreo2E7OO CRYSTALGENOMICS
I 6600 DISPLAY MANTJFACTT'RING SERVICE CO LTD
9O,OOO HANDYSOFT - SUSPENDED -
203 HANMI HOLDINGS
609 HANMI PHARM
27,300 }iANMI SEMICONDUCTOR CO LTD
4J93 I'ANSOL r,cD rNC
176.39 INNOCELL CORPgJOO ruSUNO EI'IGINEERING CO
4500 Ivrlt CO LTD32,860 K C TECH CO LTD
9 300 L,C DISPLq.Y
2,OOO LG ELECTROMCS INC
5.050 I,G LJFE SCIENCES LTD
I,480 SAI'SIiNG SDI CO LTD
2.1.495 gNU PRECI$ON CO LTD
8-2OO TECHNOSEMIC'}IAM CO LTD
28,100 ZALMAN TECE CO
Toiwon54,900 ABNOVA (TW)
I 14,635 ALTEK CORPORA]]ON
9I,OOO APCB INCr73-t00 ARDENTTC -SH$I t5.800 ASIA OPnCA!9I,9IO BRIGTIT LED ELECTROMCS CORP
I 8O,OOO CHIN-POON INDUSTRIAL
3,9?6 COMPAT ET ECiROMCS606,800 coMPEQ T4ANUFACRURTNG CO
I14,700 D LINK CORP
305J00 EPISIL TTCHNOLOGTES
295.728 ETRON TECTTNOLOGY
64,000 FORMOSA EPITAXY INC
99,700 GENESYS LOCIC
283.173 GIANTPLUS TECHNOLOGY
69.400 TIANNSTAR DISPLAY CORP
32q58 HUGA OPTOTECH INC48,3I I INSIDE SOFTWARE
16.442 JENTNCH PRECISION
248,133 KING CORE EI,ECIROMCS INC
32I,9OO KING YU.AN ELECIRICS320 OOO MOSEL VI'IELIC INC
3O.OOO NAN YA PRINTED C'IRCI,IT BOARD
Ths ocroEpaoying ootc! forD ao intcSral pan oftbcsc fiodlciol stalcmanls
HKD
GBP
USD
USD
USD
USD
USD
USD
HKDHKD
HKD
HKD
IVIYR
SGD
KRWKR1V
I(R\YKRWKRWXRW
KRWKRWXRWl(RWKRWKRWKRWKRWKR\YKRWKRW
KRW
TWDTWDTWDlWDTWDTWDTWDTWDTWDTWDTWDTWD
TWDTWDT\I'DTWD
TWDTWDTWDTWDTWDTWDlWD
t1,i22,729.2t 94,920/"
1321190221 93,4V.
187,765.23 r.i3%t87J65.23 r.33%
321,t56.15 2J7%203,656.45 1.44%
7,500.00 0.83%
2,162,348.59 15.26%316,602.00 2.23%
475,830.00 3,35./?,
40t ,948.00 2.9%| 26,8!r,00 0.9v/.389240.00 2.75%
,674,24 0.68%
355100.35 2,5t%
152,695.4 L08%152,695.V t.03%
137,939.52 0.97%137,939.52 0.910h
t66,095.71 t.t?%166,(D5.?l r.t't%
457,664.t5 3.2396457 ,{A.r5 321%
2,834,920.23 20.0r%168,819.13 t.lv/o157856.60 r.lt%
0.00 0.0CPti
7,1v2.46 0.05%
61420,74 0.43%
188,663.90 r.3t%t95,025.'t4 t.3\vo
160,1t6.62 t,13%189898.50 l.ZV/o
92,545.50 0.6Svo
162,U6.7t l.t4%321,350.60 2.28%
r68,559.s3 r.ty/o25r,116.00 1.78%
202A8t.n r,43%u3,82220 1.72%
189,133.97 t.33%
81,5?0.71 0.580/o
6,259,227,26 11.1696t87,t50.tD Lrz%t102s6.34 t.2@/o
91228.82 0.66%
138,fi4.57 0.97%
188,295.68 1.3!%
107,968.46 0,76%
t4?196.r0 r.u%4,693.63 O.O1y.
198,113.39 1.4V/o
125,378.25 0.880/,
i80,786.76 t.28r/o
227,180.87 1,6V/"
86,858.82 0.6176
193,071.70 1.366/"
208p5.2t 7.47%
1J8396.03 O.98%
318,537.64 2.25%
134534.40 0.95%
96,3 r 0.54 0.8%ut449.43 t,IV/"t45,795.96 1.03V"
178221.46 126%6,19r.59 0.9yo
Poge 34
Luxcellence - Polunin Emerging Morkets Technology FundSecurities portfolio at 30i09/I0
Exorcssed in USD
Qulotity DcBomid{tioo Quobtiooc1rlTeEcy
% ofdett\l]ul(et vuut
INSCG
13I,3I7 PAN INTERNATIONAL INDUSTRIAL CORP
I5O,OOO PAN IIT INTERNATIONAL195,000 QISDA CORF
439,398 RITEK CORPORATION
81,514 STNG,AMERTCAN STLICON PRODUCTS rNC
133,800 SPRINCSOF| INC2 16,000 SIjNPLUS TECHNOLOGY
I 7q240 TArr TECHNOT,OCY CO Lm168,600 TAIWAN SEMICONDUCTOR CO LTD117,480 TOPCO SCIEIITIFIC CO LTD67,000 Txc coRP
244,852 TYNTEK CORI118,745 TINIMCRON TECHNOLOGY CORP
306800 wn6IN IECHNOLOGY CORPORATION
489,500 YACEO CORPORATTON
Thoitond1.{O,OOO DELTA ELECTROMC.F- REC
I,187,500 SOLARTRON. POREIGN RECTSTERED
I,600,000 SVI FOREIGN REGTSTERED
Uniled Sloles of Amedco8,500 IG.ATE
Opllons, Woronls, Rlghlr
Ihe Nethedonds30,700 n MoRGAN (POI,ARIS SOFT\4 16.02.15 WAR
Other tronsferoble securitiesOptlons, Wononb, Rlghls
Unifed Kingdoms0,499 UBS LONDON OTOTECH IND) $.0?.13 WAR
86,000 uBs LoNDoN ovAFER WOnKS) 09.07.13 WAR
Unifed Slofes of Amenbo4,900 crrlcRoup (INTosYs TEcHNo) 24.10.12 wAR
Total securities porffolio
TWDTWDTWDTWDTWD
TWD
TWDTWI}TNDT\IDTWDTWD
T\vDT'wx)
THB
T1IB
T}IB
USD
USD
205,t20,40 t.45%184,3?0.13 130%138153.59 0.98%
123,908.?8 0.81%
244,5X8.U l.1r%167,t27.82 l.l8%t66,6u,5r t.t8%r91,'1vt;10 t.37%135,996.02 0.96%
150,979.35 r.m%u9,667.74 0.81%
202,988.53 |43%20838?.87 t.4't%
179,219.93 r,26v.
210,?38.10 1,49%
377,899.23 2.67%125,?00.07 0.89%
105,642.43 0.75%
116,556,13 t.gt%
154,190.00 L09%154,190.00 1.099'.
110,827.00 0.18y.
fi0,827.00 0.78%110 827.00 0;18%
6s\498.52 4.601/.
652A98.52 1.60%
318,730.t2 2.25%
187,869.51 1.31%
t3q860.6r 0.9Y/.
333,768.10 2,35%333,768.10 2.35%
13p75,227JX 98,62Y.
USD
USD
USD
Tha lccotlvrallyina ootcs fonr e! idcErd Dad ofthcsc f(rltrcial statemsnts
Poge 35
Luxcellence - Polunin Emerging Morkets Technology Fund
Statement of Operations and Changes inNet Assets from 01/10/09 to 30i09/10
ExDressed in ASD
lncomeNet dividendsOlher income
Expenses
Amortisolion of formotion expensesMonogement & odvisory feesCuslodion & sub-custodion fees
Toxe d'obonnementAdminislrotive expensesDomiciliotion feesProfessionol feesBonk inleresl on overdroftsLegol feesOlher exoenses
Net loss from invesfments
Net reolised profit / loss on:
- soles of investment securilies- foreign exchonge
Net reolised profil
Movement in net unreolised opprecioiion / deprecioiion on:
- invesfments
Increose in nel ossets os o result of operqtions
Subscriplion copilolisolion shoresCIasA
Redemplion copitolisolion shoresClass A
lncreqse in nel ossets
Nei ossets ot the beginning of the yeor
Nei ossels of fhe end of ihe yeor
Th9 ocroopaoyiu-q lotrs form c! idrgtol pd ofthcsc finorcill shtcmcnts
Note 2.5
Noie 2.6
Note4
Note4
Note 3
Note2.2
Note2.3
Note2.4
149287.74
140,867.73
8lL9.4t
438,783.57
2,034.59
222,653.71
16220.06
1,487.34
42,572.36
3,025.06
I1,084.48
1,290.15
7,727.49
130,694.33
-289'396.43
r,465,817.94
44,606.16
1,131,71535
2,M5,419.16
3,177,1345t
5,999,544.725,999,544.72
-8,2r8,160.85-8,218,160.85
9s&st838
t3prr,66E.4!
14,170,186.8t
Poge 36
Luxcellence- Senhouse European Focus Fund
Poge 37
Luxcellence - Senhouse Europeon Focus Fund
Manager's Report
Over the course ofthe reporting year the Senhouse European Focus Fund (SEFF) generated a retum of2.70olo versus the FTSE Europe ex-IlK's -246%. During this period, SEFF held only equities, and did
not have any holdings in govemment bonds. A variable weighting of cash was held as appropriate to
the prevailing market conditions, as the manager waited for valuations in certain "target" companies to
become more attractive.
The seemingly small net change in both the index and the firnd over ttre reporting year could give a
misleading impression of calm in global markets. Indeed, nothing could be fitrther from the tuth as
global markets encountered considerable volatility over the twelve month period. A sharp fall inmmkets in November 2009 gave way to what is traditionally termed the "Santa Claus Rally" into the
year end. However, the holiday spirit rapidly gave way to reality, as markets focused on the Southem
European tates' solvency. The manager had long been concerned about the stresses that the eurozone
would face given the inherent contradictions in the make-up of the euro, which had always been a
political, rather than economic, construct. As such, markets should not bave been surprised when
Soutbem European states were rocked by national debt concerns, The fi.rnd retained a weighting in the
Spanish-listed telecoms company, Telefonica, but this was the only Southern European holding, once
the stake in Fiat had been so1d.
These fears gave way to a rebound in risk assets in lQ 10, which proved to be a 'pain trade" for the
fund, given the manager's decision to remove risk from the firnd until some clear form of political
and/or economic settlement had been reacbed. Howevet, tbe market's complacency was shortJived as
further political ructions came to dominate the markets, and the ECB was forced to rorv back on rules
and procedures that had been designed as the foundations of the euro's credibility, in order to buy
short-term confidence in the markets that the single currency union would not break up, Therefore, the
ECB started to buy government debt, and European banks moved holdings ofrislqy sovereign debt into
parts of their balance sheets which meant that suoh holdings would not have to be marked to n:arket.
Aware of the risks that these banks held and continue to bold, the manager remained zero-weighted inEuropean financials.
This view is in keeping with the philosophy and investrnent process of the fund manager; namely that
risk is viewed on an absolute basis, on a company by company case. In other words, the manager is
happy for the firnd's sectoral and stock constituents to differ uarkedly from those of the index, given
that tbe index can itself be replete with companies that bave their own risk dynamics in absolute terms.
The four main investnent themes tlat the manager has identified as being the most favourable to seek
value in are as follows: Consolidation and restructuring. One company, SSL, was bought by Reckitt
Benckiser. Anotler holding, Subsea &, merged with a competitor. Repsol benefitted from a Sinopec
"buy in'' of their Brazilian assets, and other holdings such as BASF are continuing to restucture. The
second is a shift in consumer preferences, either downwards in the West, or uprvards in emerging
markets. Such a company is Piaggio, breaking in to new markets such as the US where sales are
growing by 50Yo as consumers oshift down', and in India where consumers 'shift up'. Another theme
is the ownership of companies that offer high dividend yields, well covered by cashflow. The telecom
sector is an excellent example, where revenue growth is driven by t}te existential growth in data usage
propelled by the widespread availability of "smart phones", in an environment where fixed income
instruments (whether corporate or sovereign) have limited capital upside and are currently pricing in
an extended period ofdeflation.
Poge 38
Luxcellence - Senhouse Europeon Focus Fund
Manager's Report (continued)
Going forward, the manager will remain focussed on companies' fundamentals, especially companies
trading at athactive valuations and which gamer a large percentage of their earnings from overseas
markets which continue to shorv resilient and secular grorvth.
Julian Pendock. London. October 20. 2010.
The figures stated in this report are historical and not necessarily indicative of future perfonnance.
Poge 39
Luxcellence - Senhouse Europeon Focus Fund
Financial Statements at 34fi9 flO
Statement of net assets at 30/09110
Emresseel itr GBP
Assets
Securities portfolio ol morket volueCost price(Jnrealised appreciation on the seanities portfolio
Cosh ol bonk ond liquiditiesFormotion expensesSubscribers receivobleReceivoble on spol exchonge
Liobilities
Toxe d'obonnement poyobleAccrued monogemenl & odv'tsory feesOiher liobililies
Net osset volue
Closs ADistribulion shores
Closs BDistribufion shores
Tolol Nel Assels
Closs A
Distribution sharesNumber ofshares
Net asset value p€r sbare
Closs B
Distribution sharesNumber of shares
Net asset value per share
Note2.2
Note 2.6
Note 3
Note4
Changes in nurnber ofshares outstanding from 0l/10/09 to 30109110
11,873,742.80
SbaresShares issued Shares redeemed outstanding at
30/09/10
11p00,755.48
93s3,430.208,233,834.99
1,t 19,59s.21
2,430,259.45
5,215.72
717,769.44
60.67
25,012,68
1,4M.55
10,326.s2
13,201.61
0.000
Key figures relating to the last 3 years
Sharesoulstanding at
0l/10i09
96,628.2s7
Yeor ending at:
GBP
32,143.416
14,576.000
15,026.110
0.000
1"t3,745.563
14s76.000
30/09/10
11,875,742.80
GBP
I13,745.563
92.55
GBP
14,s76.000
92.52
30/09/09
8,7t0,241.7 |
GBP
96,628.257
90.14
GBP
30/09/08
1,868,5s6.29
GBP
24,9483U74.90
GBP
Tha lccooparying lotes form ar integral pot oflhese flloicial stoterDcDts
Poge40
Luxcellence - Senhouse Europeon Focus FundSecurities portfolio at 30/09/10
Exoressed in GBP
Qu!!tity Dcaomirstioo QuohlioncllrrCOsy
lrlarkcrvaluc %ofdctltscul
Tronsferoble securities odmitted to on officiol stock exchonge listing ond/or deolt inon onother reguloted morket
Shoret
9,333,651.20 78.59%
9J33,6srr0 7859y.
590.130.77 1.9716
590{30;t't 4.9't%
548,876.74 4.62%548,876.74 4,62%
985.378.63 8.10%405,865.14 3.42%
5'19,513.49 4.88%
t.628,J9t.00 13,70%439,095.09 J.1V/.5T2,862.05 4.40%
666,433.86 5.60%
589,898.62 4.97%589,898.62 1.97%
675,659.32 5.69%6',t5,659.32 5.69%
1,t79,882.94 9.94%662,96t.94 5.59%
516,92r.00 4.35%
559,991.81 1,72%Js9,994.81 4.72%
1,601,495.97 13.48%
588151.39 4.9s%
531212.19 4.41%
482,032.19 4,06%
973,642.40 8.20%509,930.?2 4.30%
463,7!.68 3,90%
19,779.00 0,r1%
19,79,00 O.r1y.
19,779.00 0.17%19,?79.00 0.r7%
9,353,130.20 78,16%
Belgium15,740 A}THEUSER.BUSCH INBEV NV
Coymon lslonds44,810 SUESEA T rNC
FronceI2,J?4 AISTOM SA
33,790 ITVENDI SA
Ge'.r.onyIO,98O BASF . NAMEN AKT12,675 METRO AG,{8,315 TOCi{uM AG
Itoty294,766 PIAGGTO AND C SPA
PolandI?7,OOO POLISH TELECOM SA
Spo,n,t0,?09 Rrpsol l?F sA33,088 TELEFONICA SA
Sweden26,875 A)(FOOD AB
Switzertondt?,290 NESTLE SA REG SHS
2,068 SWISSCOL{ SHS NOL{2,994 SYNCENTA NAMEN
Ihe Nelherfonds5T,990 KONINKUJKE KPN NV24,5t0 UNILEVERIW
Shores of Ucis
Shores/UnAs h lnveslmenl funds
Germony180 ISHARES EB REO( COVERNEIIIENT DE(J 5.5-10.5
Total securities portfolio
EUR
NOK
EIJR
EUR
ELIRPI IT'
EUR
Ft rp
PLN
EUR
EUR
SEK
CIIFC}TF
CHF
EUR
EUR
Thc lqoompanying dot$ forlt ao idtrgral pa* of&csc fi@scial stntcmcnts
Poge,tl
Luxcellence - Senhouse Europeon Focus Fund
Statement of Operations and Changes in Net Assets from 0l/10i09 to 30/09/10
Expr*sed in GBP
lncomeNet dividendsBonk interest on cosh occountOtherincome
Exoenses
Amoriisotion of formolion expensesMonogement & odvisory feesCustodion & sub-custodion feesToxe d'obonnemenlAdminislrolive expensesDomiciliotion feesProfessionol feesBonk inleresi on overdroftsLegol feesOlher expenses
Net income from investmenls
Net reolised profit / loss on:
- soles of inveslment securiiies- foreign exchonge
Nei reolised profit
Movemeni in net unreolised oppreciotion / depreciotion on:
- invesf menls
Increose in nei osseis os q result of operotions
Subscripiion dishibulion shoresClass A
Class B
Redemotion dislribution shoresClass A
lncreose in nel osseis
Net ossets of lhe beginning of the yeor
Net qssels ol fhe end of the yeor
The occoElrarying Dotcs fon! an hrlgral pql oflb€sc firdDci.l stlrcmcnls
Note2.5
Note2.5
Note2.6
Note4
Nole 4
Note 3
Note2.2
Note2.3
Note 2.4
309,584.21
109203.22
8.99
372.00
273?76.42
2,165.69
78,936.43
28,793.s4
5,343.47
63,883.02
2,614.07
5,582.47
58.90
9,787.65
76,71r.18
36307.79
570,5&.53
-70,943.92
535,928.40
-240,356.68
295F7r,72
4,192,166.092,913,486.35
I,278,679.74
-r,322236.72-1,322,236.72
3,16sFol.o9
8:fl0p4r,71
1r,87s,742.80
Poge42
Luxcellence- Nexar Liquid Fund
Poge 4il
Luxcellence - Nexor Liquid Fund
Manager's Report
Nexar Liquid Fund rvas launched in December of 2009. The fund provides weekly liquidify to investors
and invests in liquid UCITS III hedge funds. The objectives of the fund are: (i) to provide investors with a
vehicle to diversiff lheir investrnents in UCITS III funds; (ii) to choose the best frrnds within each
strategy in which to iDvest; (iii) to provide low volatility; (iv) to provide steady retums and; (v) to Protectinveston' capital.We believe that the Nexar Liquid Fund is a good cash substitute. Our goal is to attempt to provide
investors witb a retum of approximately Libor + 300bp (basis points).
We tend to invest in approximately twenty firnds, which we believe provide substantial diversification, Atthe outset, the fund was launcbed with approximately eleven names, but over the course of tle year, wegradually increased the n^mes in the portfolio to approximately twenfy during the third quarter of tbe
year. We have conducted extensive research on UCITS III funds and have seleoted approximately sixtypotential underlying fi.rnds for complete investment research review and risk due diligence. We divide the
construction of tbe Nexar Liquid Fund portfolio into primarily tlree main shategies: Eguity Hedge,
Relative Value and Global Macro/CTA. Given our cautious stance on the markets throughout 2010, wehave limited the allocation to directional longishort equity managers. At launch, this allocation reached
28.5% and it continued to exceed 20% until late May. Since tlen, the allocation has been reduced.
Allocation to Relative Value, primarily consisting of market neutral equity funds, bas represented to bulkof the allocation, or approximately 40Vo, while Global Macro/CTA has remained around 30%.'We have
held some cash over the course of the year, but consistently lowered it, until reaching approximately 3%
currently. Our aim is to deliver a fund that is de-correlated to the equity markets and with a fairly lowbeta. Torvard this end, we invest dynarnically in the Nexar Short Bias UCITS fund, which helps dampen
overall volatility ofthe portfolio and to reduce the beta. Consequently, we have been running tbe portfoliowith approximately 0.05 beta for most of the year.
Portfolio tumover in our diversified firnd of firnds is approximately 30o/o per annum, which allows us tobetter re-allocate assets among shategies and to bring new and better undetlying funds to the line-up. Asthe UCITS III format has become more appealing to hedge fund managers, we have seen the quality ofthe managers available for investrent improve.
The Nexar Liquid Funtl posted positive perfonuances for both the first aod tle third quarter of 98bp and
96bp, respectively, for the Euro share class. The firnd suffered its largest drawdown rnonth in May given
tle increase in volatility in the markets due to the European sovereign debt crisis. The second quarterclosed witb a loss of l80bp for the same share class. Since then, we believe that the portfolio has
performed very well, delivering positive retums for July-October montls, despite extreme up and downmoves in the markets. The beta of the fund has decreased steadily from approximately 0.10 at inception toapproximately 0.05 in July, rvhere it has since remained fairly steady.
It is worth notiag that January and February performance reflects primarily costs (fees) of running the
fund, as the ftst inveshnent made was on February 25th. Our risk aversion at the beginning of the year
made us delay investing for a couple of months.
Nexar Capital SAS
Lrxembourg, January, 201 I
The figures stated in this report are historical and not necessarily indicative offuture performance.
Pogs 44
Luxcellence - Nexor Liquid Fund
Financial Statements at 3UA9 fiO
Statement of net assets at 30/09/10
Ex4rcssed iu EUR
Assets
Securifies portfolio of market volueCost price
Unrealbed appreciation on the sccarittes portfolio
Cosh ot bonk ond liouiditiesFormoiion expenses Note2.5
Unreolised net oppreciotion on forword foreign exchonge controcts Note5,2,7
Other ossets
Liobilities
Bonk overdrottsBrokers poyoble
Note2.2
r.000
427.369
r,000.000
6,965.531
20,000.000
8,622.449
4,000.000
33,323,696.51
29,I19,31 t.l628,890,740.74
228,570.42
4,062,993.44
53,961.69
82,98t.24
4,448.98
1rs45,722.81
1,258,682.5 r
234,237.99
2,906.87
23,082.77
26,812.67
Toxe d'obonnement poyobleAccrued monogement & odvisory feesOther liobilities
Net osset volue
Closs A EURCopitolisotion shores
Closs AF EUR
Copitolisotion shores
Closs AF USDCopitolisotion shores
Closs I EURCopilolisotion shores
Closs I USDCopitolisotion shores
C|oss PF EURCopitolisotion shores
Closs PF USDCopitolisotion shores
Note 3
Note4
Changes in number ofshares outstanding from I l/01/10 to 30/09/10
31,777,971.70
SheresShares redeemed outstandlng !t
30/09/10
Shorcsoutltanding at Shores lssued
1tl01/t0
0.000 0.000
0.000
0.000
999.000
0.000
16.898
2,000.000
1.000
427.369
1,000.000
5,966.531
20,000.000
8,605.551
2,000.000
0.000
0.000
0.000
0.000
0.000
0.000
Pogo 15
Tolol Nei Assets
Closs A EUR
Crpitalisotion shares
Number of shares
Net asset value pef shue
Closs AF EUR
CspitslisatioD shares
Number ofshares
Net asset value per share
Closs AF USD
Copitalisation sbares
Number ofshares
Net asset vBlue per shar€
Closs I EUR
Capitalisation shares
Number ofshares
Net asset value per share
Gloss I USD
Capilalisation sharesNumber of sbares
Net asset value per sharc
Clqss PF EUR
Capitalisatlon sbaresNumber ofshares
Net asset value per share
Closs PF USD
Capitalisation sharesNumber of shares
Net asset value per share
Luxcellence - Nexor Liquid Fund
Key figures relatiog to the last 3 years
Periodendingat: 30109tL0
EUR tr,777,973.70
ET]R
1.000
983.64
EUR
427.369
9W.95
USD
1,000.000
986.75
EUR
5,966.531
990.99
USD
20,000.000
1,00s.90
EUR
8,605.551
997.36
USD
2,000.000
99r.79
Tfic dccoDpatryiDg trotes forlr a! idegral pEt ofthesc fllatrgiol sbtEm.lts
30/09/09 30/09i08
Poge46
Luxcellence - Nexor Liquid FundSecurities portfolio at 30/09/10
ExDressed it EUR
Quodtity Dcuomi!otion Quotrtioacrurlocy
t(orkct vduc 96 ofoctrulscu
Shores of Ucis
Shores/Unlls In lnveslment funds
France3.548 NEJGR SHORT BLAS UCITS .I. EUR 3 DEC
6pl4 RWOLI EQUTTY Fr.lND 4DEC CA.P
3,330 RWOLI US BOND FD FCP -I- CAP
IrelandI 0,079 I\{ARSRALL WACE DEVELOPED EUE TO['S .4. EUR
Luxembourg5,932 AC FCP STAT VALTJE MKT NTL ? VOL -EI'R A.6,826 BREVAN TIOWARD IIW II I{ACRO FX-B EUR- CAP
IO.O55 DB PLATTNT'M IV DBX SYSTEMATTC AI.P.TIGE.
166 EXANE FIJNDS I ARCHINIEDES .A. CAP
I48 EXANE RINDS I SICAV TEMPLIERS FD -A- CAP
509.2 I 6 GARTMORE VAR GBR ABS RET .I HDG CAP
I IOJ82 HENDERSON HORVARPAN EUE ALP+.I2. CAP
t8,429 MAN TJMB VARAHL TREND.I\{US I2O EUR- CAP
10,325 T,GRRILL LYI'ICH SOL YORK ED UCITS -B ETJR-
9,745 I{L I}W SOL BLUETREND UCITS .EU B ACc-24,9?3 ML TNV SOL VAR GLG EUE OPP UCITS .8. EIJR
I I , I& SCHRODER GAIA VAR EGERTON EUE EQ -C CAP
United Krngdom1237.945 BT"ACKROCKTJKABS AI,PHA FD.D' GBP CAP(,I 12"969 CAZENOVE ABS RET FD IJK ABS TCT FD .P2.
780,490 CF ODEY FD IJK ABSOLUTE RETURN .INS- GBP
Total securities portfolio
ETJR
Ff rp
EUR
EUR
EUR
EUR
E{JR
EIJR
EUR
EtJR
EUR
EUR
EUR
EUR
EUR
EUR
CBP
ETJR
GBP
29,119,311,16 91.630/o
29,lt93rr.r6 91.63/.
5,067,649.7? 15,95%3,354,836.39 10.56%
985,?4t.18 3.r0%
727 ,072,20 2,29%
Lt0t,15t.39 3.48%1,105,15r.39 x!8%
t8,986,M0.88 t9.71%712199.55 2.24%
687,524.?3 2,16%
1,038,102.67 3n%2A21,287 .66 'l .63%
2,522288.63 7 .94%
2,571239;t5 8,lel.1,182,189.61 3J2%1,895,401.77 596%t,t2822t.93 3,55%
t,0't2,872.t9 3.38%
2,540,2t6.03 7.99%
1208,196.86 3.8V//"
3,960,469.t2 12.46%l,%6,145.86 5.56./o
r,058,655.65 3.33%
1,t35,667.6r 1.5'l%
19,[931Lr6 9r.63y.
Thc accoarpuyinS dote.e form an istcgrrl psrt ofthcsc fioarcirl slqtements
Poge 17
Luxcellence - Nexor Liquid Fund
Statement of Operations and Changes inNet Assets from 11/01/10 to 30i09/10Expr*sed in EUR
lncomeBonk inierest on cosh occounl
Expenses
Amoriisoiion of formotion expensesMonogemenl & odvisory feesCuslodion & sub-custodion feesToxe d'obonnemenlAdminislrolive expensesDomiciliotion feesProfessionol feesBonk inJeresl on overdroftsLegol feesOlher expenses
Net loss from investmenls
Net reolised profit / loss on:
- soles of inveslment securilies- forword foreign exchonge conlrocts- foreign exchonge
Net reolised loss
Movement in net unreolised oppreciotion / depreciolion on:
- invesimenfs- forword foreign exchonge conlrocfs
Decreose in nei ossets os o result of operolions
Subscription copitolisolion shoresClass A EUR
Clast AF EUR
Class AF USD
Cltus I EUR
Class I USD
Class PF EUR
Class PF USD
Redemption copitolisolion shoresClass I EUR
Class PF EUR
Class PF USD
lncreose in net ossels
Net qssefs of lhe beginning of lhe period
Net ossels ot the end of lhe period
Thc occo8lranying lotes fonD atr iDtelml part ofthe.se liloDciol ststements
Note 2.5
Note2,6
Note 4
Note4Note 3
Note2.2
Note 2.3
Note2.7
Note2.4
4,482,U
4482.44
249,8/'4,49
6,009.39
142,630.57
3,r 35.55
3,s46.10
18,625.09
7,000.00
25,912.90
1,571.32
698.49
40,711.08
-245358.05
-170,M5.05
-t,16t,278.M-s51,910.81
-2,129,391,95
228,s70.42
82,981.24
-1,817,u0.29
36,120,987.921,000.00
426,000.00
734,9r s.8s
7,000,000.00
16,365,942.40
8,718,224.00
2,874,905.67
-2,52s,t73.93-989,074.46
-16,754.97
-I,519,344.50
37,777,973J0
31,777973.70
Poge.E
Luxcellence- Virtuoso Fund
Poge49
Luxcellence - Virtuoso Fund
Managerts Report
The Sub-Fund Luxcellence - Virtuoso Fund was launched on March 2,2010 and re-allocates on amonthly basis between Euro Equities (through Euro Stoxx 50 fuhues haded on Eurex), Euro
Government Bonds (through Euro Bund futures traded on Eurex), European real estate stocks and
Euro money market instruments (short-tenn Euro Commercial Papers), The Sub-Fund is managed in asystematic way according to the Virtuoso stategy investnent formula. It aims at producing consisteut
absolute retums over medium-term periods with a controlled volatility'
The performaoce of the USD share class between March 2, 2010 and Septenrber 30, 2010 was minus
6.63% and that of *re GBP share class rvas rninus 7.63% during tle same period. Througbout all thisperiod and despite sigrificant market shocks mainly driven by the Euro Sovereign Debt crisis, the
Sub-Fund maintained a low volatility profile at around 7%. As a comparisoq the Euro equity market(represented by the Euro Stoxx 50 Index) dropped 4.5% during the same timeframe with a volatility of27o/o.
By analyzing the behaviour oftle Sub-Fund during the period from launch to September, 30, 2010,
we can identify the following six periods:
- From launch to mid-April 2010, the Sub-Fund exhibited a very stable flat behaviour;
- From mid-April 2010 to mid-May 2010, an extemal shock, in the form of the Greek crisis,invalidated the monthly allocation, rvhich consisted in a 50% notional exposure to Euro Stoxx 50
futures and a 100%, notional expoflue to Euro Bund futures. Although the Euro Stoxx 50 Index felldown by 16%, the Sub-Fund only fell by 4.87% despite a 50% exposure to Euro Stoxx 50 futures.
This demonstrated the ability of the Virtuoso shategy to build rather balanced monthly portfolios. Inthe case of the April/lvlay portfolio, the negative impact of the 50% exposrue to Ewo Stoxx 50 futures
was strongly mitigared by tbe positive impact of the 100% exposure to Euro Bund futures, rvhichslqyrocketed during the Greek crisis.
- From mid-May 2010 to end of July 2010, tle Sub-Fund managed to exhibit a very stable flatbehaviour despite the exheme instability of the markets in the wake of the Greek crisis.
- From beginning of August 2010 to mid-August 2010, the Sub-Fund was hit by the external shock
caused by the uncertainties relating to the US motretary policy (the so-called Quantitative Easing 2program), which led to an 8.5% draw-down in Euro equities. With 50% notional exposrue to EuroStoxx 50 futures, tle Sub-Fund went down by 2.95%.
- From mid-August 2010 to mid-September 2010, the Sub-Fund shongly benefited from a well-balanced portfolio consisting in a 50% exposure to Europeau real estate slocks and 100% notionalexposure to Euro Bund futures. This portrolio proved highly resilient in the bear equity market period
of the last two rveeks of August 2010 and in the bull equily market period of the first two weeks ofSeptember 201 0. The Sub-Fun d rulLied by l.92Yo.
- From mid-September 2010 to end of September 2010, tbe Sub-Fund exhibited a relatively stable flatbehaviour.
Luxembourg, January, 201 I
The figures stated in this report are historical and not necessarily indicatjve of future performance.
Poge 50
Assets
Securities portfolio of market volueCost price
Unrealised apprecidtion on lhe seatities porlfolio
Cosh ot bonks ond liquiditieslnterest receivcbleFormotion expensesSubscriben receivobleDividends receivoble
Liobilities
Bonk overdroftsBrokers poyobleToxe d'obonnement poyoble
Closs A EURCopitolisotion shores
Closs A USDCopitolisotion shores
Closs A GBPCopitolisotion shores
Luxcellence - Virtuoso Fund
tr'inancial Statements Lt 30 109 ll0Statement of net assets at30/09110
Etpressed tu EW
Note 2.2
Note2.6
Note 3
Sharesoutstandlng at Shares issued
02t03trc
37,957,592,77
SheresShares redeemed outrtrnding st
30i09/r0
41,841,237.03
32,550,374.4432,542,227.01
8,147.43
11,148,549.07
2,762.12
52,403.86
45,O19.77
42,12'.1.7?
5,883,&4,26
263.r9
2,997,306.99
4,745.00
756,875.24
r,5&,254.40
506,060.00
42,224.31
I l,915.13
Subscribers poyobleUnreolised net depreciotion on fonrrord foreign exchonge conlrocts Note5,2.?Unreolised nel depreciotion on finonciol fufures Note6,2.8Accrued monogement & odvisory fees Note 4
Other liqbilities
Net osset volue
Chanses in number of shares outstandins.from02l03/10 to 30/09/10
0.000
0.000
0.000
5,003.890
34,012.550
0.000
1,055.000
964.000
3,948.890
33,048.550
20.000 20.000
Thc lc€oBpsryitrg sotcs foro on iotcgrcl part of th6c 6@rciol strt€o€ots
Poge 5l
Toiql Nef Assels
Clcss A EUR
Capitalisation sharcs
Number ofshares
Net asset value per share
Closs A USD
Capitalisrti on shqres
Number ofshares
Net asset value Per sharc
Closs A GBP
Copitalisatlon sharesNumber of sbares
Net asset value per share
Luxcellence - Virtuoso Fund
Key figures relating to the last 3 years
Periodandingat: 30/09/10
EUR 3'.t,957,592.77
USD
3848.890
933.72
GBP
33,048.5s0
vz5. t L
Thc occodllanling Dolcs fonD .n b:tegrdl p'rt of ftesc i'uoDcial statcmcnls
30/09/09 30/09i08
20.000
996.32
Poge 52
Luxcellence - Virtuoso FundSecurities portfolio at 30/09/10
LXDTCSSCA U EUI(
Qo{otity lrc'or.ltrBuon Quotstionqulency I\ftrlrct vstnc voofac'
ilasct6
Tronsferoble securities odmitted to on officiol stock exchonge listing qnd/or deolt inon onother regulqted morket
Bonds
FronceI,5OO,OOO CARREFOUR EUR
EIJR
ETJR
ETJR
EUR
EUR
EUR
ETJR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
ETJR
I,5(}O,OOO CASINO GUICHARD PERR .IOO9/ITU
-l0ll/l0u
lrelondl,500,000uMcREDttBANKIRL -101r/lou
Total securities porffolio
Thc accompauyisg ootEs forE a! iltcgral psrt of (hcsc fur^ldciol statsments
-t026/Lru
-r0 0zllu-10 2rAou
-10 12Jl0u
-10 2rt tu-10 194lU
27,05r,975,60 7t.26%
2dp8{59553 7r.08./.
20,987,2M,73 55.28%1,498,742,31 3.95%
1,498,834.24 3.95%
2,998,M1.28 ',t.90%
2,998,800.48 7.89%
1198,106,56 3,95%
r,498,323.54 3.95%
1,498,563.88 X.95%
ry'99,408.15 3.95%
1199,737.55 3,95%
2,999,125.26 1,89%
tA99,523.48 3,95%
r,199,770,87 3.95%11499,770.87 3.95%
2,998,117.50 7,90%2,998,41?.50 7.90%
1,199,200.43 3.9t%1J99,200.43 3,95%
3,000p00 coFIRouTE3,000,000 DANoNE FINANCE
1,500,000 GDF suEzI,5OO,OOO LAFARGE1,500,000 PPR FINANCE
1,500,000 PRovENcE ALPES COTE AZUR(REG) -t0 29lt0UI,SOO,OOORTEEDFTRANSPORT -IOI4/I(IU3.OOO.OOO UMON FINANCE GRAINS .IO O8/IOU
I,5OO,OOO VEOLIA ENVIRONNEMENT .IO 22,IOU
Germony1,500,000 COiI|I{ERZBANK AG
Luxembourg3,000,000ARCELORN{ITTAL -l0lrrlou
Uniled Kingdom1,500,000 TEsco
Shqres
-t0 0zltu
Itoll/9?'94 BEM STABILI SPA
Money moket insirumentsFronce
3,000,000 ExAcoMvrA cLAtREFoNT -10 ll/rou1,000,fii0 ttAvAs t0 08/t0u
673E0,07
67,380.07 0.18%6',7,180.07 0,r8%
5198,398.84 t4.49%
3,998,627.97 10,54%2,998,995.34 7.9t%
999,632,63 2,61%
1,499,770.87 3.95%1499,770.87 3.95%
32,55037111 85.75o4
Poge 53
Luxcellence - Viriuoso Fund
Statement of Operations and Changes inNet Assets from 02103/10 to 30/09/10
Eflressed in EUR
lncomeNel dividendsNel inieresl on bondsBonk inleresl on lime deposilsOfherincome
Expenses
Amortisolion of formotion expensesMonogement & odvisory feesCuslodion & sub-cuslodion fees
Toxe d'obonnementAdministrotive expensesPerformonce ond License feesDomicilioiion feesProfessionol ieesBonk inleresl on overdroftsLegolfeesOther expenses
Net loss from inveslmenls
Nei reqlised profit / loss on:
- soles of invesimenl securities- foword foreign exchonge controcls- finonciol fuf ures
- foreign exchonge
Net reolised profil
Movemenl in net unreolised oppreciofion / depreciotion on:
- investments- forword foreign exchonge conlrocls- finonciol futures
Decreose in net ossels os o resull of operofions
Subscriplion copilolisolion shoresClagsAEUR
Class A USD
Class A GBP
Redemplion copilolisolion shoresClass A USD
Class A GBP
lncreqse in net ossels
Net ossels ot the beginning of the period
Net osseis of the end of lhe period
Nole2.6
Note 4
Note 4
Note3
Note4
Note2.5
Note2.5
Note2.5
Note2.2
Note2.3
Note2.7
Note2.8
Note2.4
220,440,43
118,772.92
93,994.75
7,658.89
13.87
1,075,305,55
6,810.34
441,613.38
8,042.25
13,760.95
23,803.5s
312,443.08
6,945.11
14,7?4.97
zo, I I t.JJ
210.84
220323.7s
{54,865.12
1,467210.77
2,84r,780.33
-3,002,913.13
-158,051.07
293,t6t,78
8,147.43
-1,564,254.40
-506,060.00
-1,769,005.19
41,s47,936.2020,000.00
j,683,208.65
37,844,727.55
-r,82r,338.24-736,316.15
-1,085,022.09
37-957.59237
37957592J7
Poge 54
LuxcellenceFlotes to the Financial Statements
Poge 55
Luxcellence
Notes to the Financial Statements at September 30,2010
| 1. General
Luxcellence (the "SICAV" or the "Fund") is a Luxembourg Umbrella "Soci6t6 d'Investissement d Capital
Variable", incorporated on June 12,1998 under Part I of the Law of March 30, 1988. On November 30, 2005
the Fund is converted to Part I of the law of December 20, 2002 relating to Undertakings for Collective
Investment and the law of August 10, 1915 on Commercial Companies. The SICAV is submitted to part I ofthe law dated December2D,2002. The SICAV is registered at the Luxembourg Register of Commerce under
thenumberB 9.695.
The SICAV has several sub-fi:nds. As at September 30, 2010, six sub-firnds were active :
-Lrxcellence - Divenified Portfolio launched on Novernb er 26,2004-Luxcellence - Genesis Fund launched on November 8,2001-Luxcellence - Poluoin Emerging Markets Technology Fund launched onMay 22'2006
- Class A-Luxcellence - Senhouse European Focus Fund launched on March 5, 2008
- Class A- Class B
-Luxcellence - Nexar Liquid Fund launched on December 3 l, 2009- Class A EUR- Class AI EUR- Class AF USD- Class I EUR- Class I USD- ClassPF EUR- Class PF USD
-Luxcellence - Virtuoso Fund larmched on March 2, 2010
- Class A EUR- ClassAUSD- Class A GBP
Tbe Board of Directors of the Fund decided to put into liquidation with effect as of September 30,2010 the
Luxcellence - Diversified Portfolio sub-firnd and the sub-firnds Luxcellence - ICON Consewative Euro and
Luxcellence - ICON Dynamic Eruo with effect as of April 23,2010.
The shares available for the sub-funds are only capitalisation shares except for Luxcellence - Senhouse
European Focus Fund which has distribution shares.
1. Presentation of Financial Statements
The Financial Statements are prepared in accordance with Lrxembourg regulations relating to undertakings
for collective investment.
The Financial Statements are presented on the basis of the latest net asset value calculated duing the
financial year. In accordance with the prospectus, the net asset values were calculated using the latest pricesand exchange rates known at the time of calculation.
of2.
Poge 56
, of
Luxcellence
Notes to the Financial Statements at September 30, 2010 (continued)
2, Valuation of investments
Securities listed on an official stock exchange or traded on any other regulated market are valued at the latestavailable price.As investment principles, every time such prices ar€ not representative of the fair value of the relevantsecurities and in case of unquoted or not regularly traded securities, the used value is their respectivereasonable foreseeable sales price as determined prudentty and in good faith by the Board of Directors inaccordance with generally accepted valuation principles.ln case of a short-term money market instnrment, the value of the inskument based on the net acquisitioncost, is gradually adjusted to the repurchase price thereof. In the event of material changes in marketcondiiions, the valuation basis ofthe investment is adjusted to the new yields.In a case ofa short-term discowrt inshument its value based on the net acquisition cost, is gradually adjustedto the redemption price thereof.The transaction fees related to securities purchased are included under the caption "Other expenses" in the
statement ofoperations and changes in net assets.
3. Realised profft and loss on sales of lnvestments
The profit and loss on sales of investments have been deterrnined on the basis ofaverage cost.
4. Foreisn exchange
The Financial Statements of Luxcellence - Genesis Fun{ Lrxcellence - Diversified Portfolio, Luxcellence -ICON Conservative Euro, Luxcellence - ICON Dynamic Euro, Lrxcellence - Nexar Liquid Fund,
Lrxcellence - Virnroso Fund sub-funds are maintained in EUR; for Luxcellence - Polunin Emerging MarketsTechnology Fund, the Financial Statements are maintained in USD, and in GBP for Luxcellence - Senhouse
European Focus Fund.
The market value of inveshnents and other assets and liabilities expressed in other currencies than the
reference currrency of each sub-f,rnd, have been converted at the exchange rates ruling at the year-end date,
The costs of inveshnents expressed in other currencies than the teference curency of each sub-fund have
been converted at the exchange rates ruling on the date of acquisition.
Unrealised exchange gains/losses arising on the valuation of the securities portfolio at market value are
included in unrealised net appreciation/depreciation on inveshnent securities. Other exchange gainsAosses
are directly taken into the statement of operations and changes in net assets,
Income and expenditure in crnrencies other than the currency of the sub-fund are converted into the curencyof the sub-fund at the closing exchange rate in force on the day of the transaction.
Any resulting gain or loss made on foreign exchange is included in the statement of changes in net assets.
5. Income from investments
Dividends are recognised as income on the date which the respective securities are listed as "ex-dividend".Interest is accrued on each valuation day.
Poge 57
ofI con
Luxcellence
Notes to the Financial Statements at September 30' 2010 (continued)
6. Formation exoenses
The fomration expenses are amortised over a period of5 years.
7. Forward foreign exchange confracts
The SICAV is authorised to enter into forward foreign exchange coltracts for the purchase of a specificcrurency at a fixed price on a future date as a hedge or cross-hedge against either specific transactions orpo*folio positions, All commitrnents are marked-to-market at the applicable translation rates and any
unrealised appreciation or depreciation are recorded in the statement of operations and changes in net assets.
Realised profits or losses are recorded at the time the forward foreign exchange conhacts are offset byentering into a closing transaction or matured by delivery of the currency,
8. Futures contraets
Unexpired futures contracts are valued at their last known price on the date of valuation or on the closingdate and unrealised rezults resulting from them are recorded in the accounts.
9. Options
Options are valued at their liquidative value based upon the settlement price on the exchange on which theparticular option is tracled.
10. Combined Financial Statements
The SICAV's desigrratetl crurency is the USD. fhe combined statement of net assets and statement ofoperations and changes in net assets represent the total of the statement of net assets and the statement ofoperations and changes in net assets of the individual sub-funds translated in USD at the exchange ratesprevailing at year-end.
As at September 30,2010, the following significant exchange rates were used :
1 EUR= 1.3652 USDI GBP = 1.5758065447 USD
3. Tax status
The SICAV is registered rurder Luxembourg law as an inveslment company with variable capital (Soci6t€
d'Investissement e Capital Variable - SICA$. Accordingly, no Luxembourg income or capital gains tax is at
present payable. I{owever, it is subject to a "taxe d'abonnement" of 0.05% per annum , based on its net asset
value. This tax is payable quarterly. However, the reduced tax of 0.01% per annum is applied forLuxcellence - Polunin Emerging Markets Technology Fund and some classes of Luxcellence - Nexar LiquidFund as thev are resticted to Institutional Investors.
Poge 58
Luxcellence
Notes to the Financial Statements at September 30, 2010 (continued)
4. , performance, license rnd custodian fees
The management, advisory, performance, license and custodian fees are as lbllows:
For Lrxcellence - Diversified Portfolio: The sub-flrnd pays a Management fee to the Management Company,payable quarterly, at an annual rate of 0.07% calculated on the sub-fund's average net asset value. TheManagement Company also coordinates the payments from the sub-frrnd to the Portfotio Managers, inrelation with the lnvestrnent Management fee at respective annual rates of 03A% calculated on the basis ofthe sub-fi.rnd's average net assets allocated to BNP Paribas Asset Management and 0.20% calculated on the
basis of the sub-fund's net assets allocated to GDP SIM S.p.A..
In addition, each of the Portfolio Managers is entitled to receive from the sub-fund, a pertbrmance feecalculated accrued and payable (if any) yearly in lureaxs, on December 31, at effective rates of, respectively,20% to BIrIP Paribas Asset Management, l|Yo to GDP SIM S.p.A. of the out performance of the allocatednet assets (withoui tax) if:
1) The appreciation of the allocated net assets exceeds the performance index, i.e.
the JP Morgan Euro Cash 3 months + 2% for BNP Paribas Asset Management;the JP Morgan Euro Cash 3 months +2Yofor GDP SIM S.p.A.;
2) The cumulative excess retum (CES:appreciation of the allocated net assets g)<6ssding theperformance index) at the end of the calculation period is greater than any previous higher CES
reached at the end of any preceding calculation period (fligh Water Mark).
For the year ended September 30, 2010, an amount of EUR 40,450.53 performance fees was charged to the
sub-fund.
As a percentage of the net asset value, the Custodian fee is a variable fee between 0.04% and 0.10% perannum.
For Luxcellence - Genesis Fund: The sub-fi,rnd does not pay in practice a Management fee to the
Management Company, although the prospectus indicates that the sub-firnd shall pay a management fee tothe Managernent Company, payabte quarterly, at an annual rate of maximum 1% per annurn calculated onthe sub-frnd's average net assets.
The Management Company also coordinates the payments frorn the sub-fund to the Portfolio Managers, inrelation with the Investment Management fee at respective annual rates of 0.075% calculated on the basis ofthe sub-fund's net assets allocated to Degroof Gestion Institutionnelle Luxembourg and 0.50% calculated on
the basis of the sub-firnd's net assets allocated to Banca Albertini Syz & C. S.p.A.,
Globat Wealth Management is entitled to receive an lnveshrent Advisory feg payable quarterly, as
compensation for the services it rendered to the sub-fund, at an annual rate of 0,30%o of the sub-fund'saverage net assets allocated to Degoof Gestion Institutionnelle Luxembourg.
As a percentage of the net asset value, the Custodian fee is a variable fee between 0,04% and 0.10% per
annum and payable mouthly.
For Luxcellence - ICON Conservative Euro: The sub-frurd pays a Management fee to the ManagemeniCompany, payable quarterly, at an annual rate of 0.04% calculated on the sub-fund's average net asset valueof each Class of Shares with a minimum of EUR 35,000 per annum.
Poge 59
Notes to the Financial Statements at September 30,2010 (continued)
| 4. Management, advisory, performance. license and custodian fees (continued) |
Luxcellence
The Management Company also coordinates the payments from the sub-fuad to the Portfolio Manager and
the Global Distributor, in relation with the Investnent Managernent fee at respective annual rates of 1.85%
calculated on the average net assets value of the A Class of Shares and 2.45o/o calculated on the average net
assets value of the B Class of Shares.
As a percentage of the net asset value, the Custodian fee is a variable fee between 0.14Yo and 0.20o/o per
annum.
For Luxcellence - ICON Dynamic Euro: The sub-fund pays a Management fee to the Management
Company, payable quarterly, at ao annual rate of 0.04% calculated on the sub-firnd's average net asset value
of each Class of Shares with a minimum of EllR 35,000 per annum. The Management Company also
coordinates the payments from the sub-fund to the Portfolio Manager aod the Global Disfibutor, in relation
with the Investment Management fee at respective annual rates of 1.85% calculated on the average net assets
value of the A Class of Shares and2.45o/o calculated on the average net assets value of the B Class of Shares.
As a percentage of the net asset value, the Custodian fee is a variable fee between 0.l4To and 0.20% per
aollrun,
For Luxcellence - Polunin Emereins Markets Technolog.y Fund: The sub-fund pays a Management fee to tleManagement Company, payable quarterly, at an annual rate of 0.10% calculated on the sub-firnd's average
net assets. The Management Company also coordinates the payments from the sub-fund to the Inveshnent
Manager, in relation with the Investrnent Management fee at an annual rate of 1.50o/o calculated on the sub-
fund's average net assets value.
In addition, the Investment Manager is entitled to receive a performance fee calculated as follows: 20% ofthe net new profits of the sub-fund, payable annually (if any) on December 31, and calculated on a share
equalization basis with the High Water Mark mechaoism.
For the year ended September 30, 2010, no perforrnance fee was charged to the sub-fund.
As a percentage ofthe net asset value, the Custodian fee is a variable fee between 0.04% and 0.10% perannum.
For Luxcellence - Senhouse European Focus Fund: The zub-fund pays a Management fee to the
Management Compaay, payable quarterly, at an armual rate of 0.l4Yo calculated on the sub-fund's average
net assets. The Management Company also coordinates the payments from the sub-fund to the InvesknentManager, in relation with the Investment Management fee at respective annual rates of 0,70% calculated on
the average net assets value of the A Class of Sbares and 0.75Yo calculated on the average net assets value ofthe B Class ofShares.
In addition, the Investment Manager is entitled to receive a performance fee calculated as follows: 15Yo ofthe increase in the net asset value per share of the Class in excess of the Hurdle Rate, subject to a maximumperformance fee of l% of tle current net asset value. The use of the Hurdle Rate ensures that investors willnot be charged a performance fee until any previous losses relative to the Hurdle Rate are recovered. TheHurdle Rate is the retum of tle index FTSE All Wodd Europe ex-UK TR GBP. The performance fee, if any,
is payable annually in atrears, in respect ofeach accounting period.
For the year ended September 30, 2010, no perforrnance fee was charged to the sub-fund.
Poge 60
Luxcellence
Notes to the tr'inancial Statements at September 30,2010 (continued)
4. license and custodian fees (contin
As a percentage of the oet asset value, the Custodian fee arnounts to 0.03% of the net asset value per share
class, with a minimum fee of EUR 2,500 per month.
For Luxcellence - Nexar Liquid Fund: The sub-firnd pays a Management fee to the Managernent Company,payable monthly, at an annual rate of 0.02%, with a minimum annual amount of EUR 30,000 and calculatedon the sub-fund's average net assets. The sub-fund also pays an Inveshnent Management fee to theInveshnent Manager, payable monthly and calculated on the average net assets value of each Class of Shares
at the following effective rates:
Investrnent Management fee
Class A EUR 1.60%Class AF EUR 2.00%Ctass AF USD 2.00%Class I EUR 0.60%Class I USD 0.60%CLass PF EUR 1.00%Class PF USD 1.00%
In addition, the Inveshnent Manager is entitled to receive a perforrnance fee, calculaied on the basis of the
average net assets of each Class of Shares and payable, if any, as of December 3 L The performance fee is apercentage of the out-performance attributable to each Class of Shares, being the appreciation (includingrealised and unrealised gains and losses) in the net assets of each Class of Shares in excess of theperformance of the EURIBOR one week * 200 basis points per annum (the "trurdle rate").
Perfomtance fee
Class A EUR 20.00%Class AF EURNoneClass AF USD NoneClass I EUR 20.00%Class I USD 20.00%Class PF E{"lRNoneClass PF USD None
For the year ended September 30, 2010, no performance fee was charged to the sub-fund.
As a percentage of the net asset value, the Custodian fee 'mounts to 0.03% of the net asset value per share
class, with a minimum fee of EUR 12,000 per annum. The minimum fee has been waived during the frst 6
months following the sub-fund's inception.
For Luxcellence - Virtuoso Fund: The sub-firnd pays a Management fee to the Management Company,payabte monthly, at ao annual rate of 0.02Yo, with a minimum annual amount of EUR 30,000 and calculated
on the sub-fund's average net assets. The sub-fund also pays an Investment Management fee to the
Investment Manager, payable monthly and calculated on the sub-fund's average net assets, at an arurual rate
of2%.
fu addition, the sub-flrnd pays to the Licensor a monthly license fee, in respect of each Class A Shares,
representing to 20Yo of the difference, if positive, between the Class A Shares net assets at each monthlyValuation Day and the same Class A Shares net assets on the preceding Monthly Valuation Day.
Poge 6l
Luxcellence
Notes to the Financial Statements at September 30,2010 (continued)
4. license and custodian fees
The calculation is based on the Class A Shares net assets after deduction of all fees payable over the
corresponding month and is adjusted to take into acoount subscription proceeds received by the Class AShares and the redemption paid to investors for the same Class A Shares. No loss carried forward principle is
applied in this calculation
For the year ended September 30, 2010, an amouot of EUR 312A43.08license fee was charged to the sub-
tund.
As a percentage of the net asset value, the Custodian fee amounts to 0.03% of the sub-fund's average net
assets, with a minimum fee of EUR 12,000 per annum. The minimum fee has been waived during the first 6months following the sub-fund's inception.
As at September 30, 2010, the sub-find Luxcellence - Nexar Liquid Fund had entered into the followingforward foreign exchange contracts:
Unrealisedappreciation/(depreciation)
Purchase Amount Amount EUR
As at September 30, 2010, the sub-ftnd Luxcellence - Virtuoso Fund had entered into the following forwardforeign exchange contracts:
unrealisedappreciation/(depre ci ation)
Purchase Amount Amount
EURGBPEURUSD
GBPUSDUSDEUR
2,921,797.8957,700.00
121,109.0023,030,753.74
31,330,711.893,624,871..18
920,476.75735,272.30
2As0,6s7.9870,516.35
104,950.0316,879,148.18
29n0t201029/10t201029t10/201029110/2010
Total
93,109.24(3,915.75)
(30.32)(6,18r.93)
Sale
GBPEURGBPEUR
EURSale
EUREURET.IR
USD
37,538,894.212,819,265.94
709,013.48990,992.65
t4/101201014n0/2010r4t10/2010r4tt0l20t0
Total
8298r.24
(r,374,993.67)(163,86s.i9)
(34,718.40)9,322.86
(1,564,254.40)
6. Positions on Futures Contracts
At Septernber 30, 2010, the open positions on financial futures were as follorvs:
Luxcellence - Genesis FundCurrency Quantity Buy- Sell Description Commitment
(EUR)Unrealised
appreciation/(depreciation)
(EI'R)EUR 300 S DJEIJRO STOXX sODECEMBER IO 8.223,000.00 110.000.00
Total 110.000.00
Poge 62
Luxcellence
Notes to the F'inancial Statements at September 30, 2010 (continued)
6. Posifions on f,'utures Contracts
,, to Lehman Brothers and other investments
As at September 30, 2010 the Luxcellence - Genesis Fund (ttre "sub-fund') holds a position of 45,000 sharesin Lehman Brothers Holding INC placed into administration. Within this context and in accordance with thedispositions ofthe Fund Prospectus, the Board has adopted in the circular resolution signed on December 22,2009 to valuate the securities until funher instructions, on a daily basis, at the market price provided byBloomberg as from the net asset value dated January 5,2010.
As at September 30, 2010 the Luxcellence - Polunin Emerging Markets Technotogy Fund (the "sub-fund')holds securities issued by Guangzhao tndustrial Forest Biotechnology Group Ltd. The quotation of thesecurities at the stock exchange of Singapow has been suspended since September 15, 2008. Since Iune [,2010, the securities have been again quoted at the Singapore Stock Exchange. Therefore, the Board has
adopted in the circular resolution signed on June 6, 2010 to valuate the securities at the last value quoted onan official stock exchange as Aom the net asset value dated June 7,2010.
As at September 30, 2010 the Luxcellence - Pohurin Emerging Markets Technology Fund holds securitiesissued by HandySoft Corporation. The quotation of the securities at the KRX Korea (KOSDAQ) Exchangehas been suspended as from August 2,2010. Within this context and in accordance with the dispositions ofthe Fund Prospechrs, the Board of Directors, in the circular resolution signed on August 24,2010, haddecided to value the securities at zero.
8. Guarantee
As at September 30, 2010 Luxcellence - Genesis Fund has entered into futures ftansactions (refer to note 6).Securities which have been given as guarantee for fuflres tansactions are evidenced by "*" in the portfolioof the sub-fund. As at september 30, 2010 the market value of these securities amounts to EUR 1,695,186.
9. event
The Board of Directors of the Fund decided to put into liquidation with effect as of November 15, 2010, the
sub-fund Luxcellence - Senhouse European Focus Fund.
Luxcellence - Virtuoso f,'undCurrency Quantity Buy- Sell Ilescription Commitment
(ErrR)Unrealised
appreclafion/(depreciation)
(EUR)EURETIR
104734
S
BEIJRO BUND FUTURE DECEMBER 10
DJ EIJRO STO)O( 50 DECEMBER 10
13,668,720.0020.096.920,00
(94,680.00)(411.380.00)
Total (506,060.00)
Poge 63