linde partners - fundsquare

LINDE PARTNERS VALUE FUND

0 8 MA12007

LINDE PARTNERS VALUE FUND Societi d'Investissement a Capital Variable

incorporatcd in Luxembourg

Audited annual report as at 31st December 2006

No subscription can be received on llic hiisis of this financial report. Subscriptions are only valid if made on the basis of the current Prospectus, thc siinplifiud Prospectus supplemented by the latest annual report and the most recent scmi-annual report, if publishcd thcrcaftur.


CONTENTS

ORGANIS.4TION ................................................................................................................................................. 2

G EN ERA L I Iv FORM AT ION ............................................................................................................................... 5

REPORT OF THE BOARD OF DIRECTORS .................................................................................................. 6

INDEPENDENT AUDITOR'S REPORT ........................................................................................................... 8

ST.4TEMEST OF NET ASSETS ...................................................................................................................... I U

STATERIEVT OF OPEKATIOSS .AS11 O ' I H K H CH,\SGES IS NET ASSETS ........................................ 1 I

STATISTIC.41. I N F O R ~ I , ~ T I O U ...................................................................................................................... 12

LI'UDE PARTNERS \'ALLE FLSD - GLOBAL ............................................................................................. 13 STATEMENT OF INVESTMENTS ,4kD 0THF.K Ut.:'l. .4SSt:'TS INDUSTRI/IL CLASSIFICATION OF INVESTMENTS ...................... GEOGRhPIIIC',4L CLASSIFICATION OF INVESTMENTS .....................

LllVDE PARTKERS \'ALUE FUXD - JAPAN ................................................................................................. 16 16 17 17

S~I~.4~lrl:M IiN.1- 0 1 ' INVl iS~I 'k I 1SN.l.S A N L) 0 . 1 - t . 1 EK N E T ASSETS .......................................... I N L) I! S-IK I A L C: LASS I F' I C AT IO h' O 1: I li V E ST M ENT S ...................................................... GEOCiRAPHICAL CLASSlFIC/\TlON OF INVESTMENTS ..........................

LINDE P.4RTSERS VA1,lJE Fl!ND - BI,I!E C l l l P VALUE ......................................................................... 18 .................................. I8

........................... .20 ....... 20

.............................................................................................. 2 1

STATEMENT O F IKVESTMENTS AND OTHER NET ASSETS IN D I; ST R I A L C L .A S S I F I C AT I ON OF IN 1; E STM EKTS C; IXKi K .A I' H I c' .4 I . C I ~ ASS 1 t: I c'41' IO h' (3 t.' I N VEST M E UTS

N0'I'E;S -1.0 '1.H E; FIh.ANCI.AI. ! Y l ' ~ \ ~ I ' E ~ k l ~ ~


ORGANISATIOI\;’

BOAHI) OF DIRECTORS

Chairman

MI.. Serge D’ORAZIO Sour;-l)irecteiir K K I ,: 1) I I-:-I’H,4N K S. A. L tixcmbourguoi su: Liixeiiibourg

Directors

hlr. Jens HANSEN Managing Direclot- I Icad 0l‘Incustmcnts Lindu Partncrs Asset Managelimit S.A. . Sirasscn

hlr. Jcspur ALSINCi Managing Dircctor c EO Liiide Partners /\ssct Miinagement S.A., Strasseii

Mr. hi1di- i . S C H M I T Preiiiier Fond6 dc PoLivoit- KRE DI ET RU ST LC X E M I 3 0 I KG S . A,. I. use 111 bourg (since 27th January 2006)

Registered Office

I I. rue Aldringen. L- 1 1 1 X Luxcmbourg

I nvestmrnt hl anager

Liiide Pnrtiiers Assc~ Muniigcmcnt L.4 131, route d’Arlnn. I.-XOO8 Strasseii

Custodian and Main PaFing Agent

KREDIETBANK S.A. Liiseinbourgeoise 4.3. boulcviirci K o y l . 1..-?955 Luxembourg

Administrative and Domiciliary Agent

Registrar and Transfer Agent

KREDIETRCST LUXEMBOI!RC’I S.A. 1 I , riic Aldringcn, L-2960 LLixuinhoLirg

7


ORGANISATION (continued)

Distributors

CFD Luxembourg S A . 22-24, boulevard Royal, L-2449 1,uxembourg (sincc 23rd March 2006)

Createrra S.A. 25, routc d’Esch, L- 1470 Luxembourg (sincc 26th Scptember 2006)

Danske Bank S.A. 2. rue du Fossd, L-20 I I Luxcmbourg (since I st March 2006)

Dexia-BIL S A . 69. route d’Esch. L-2953 Luxembourg (sincc 1 st March 2006)

Farad Investment Advisor S A . 49. boulevard Royal. L-2449 Luxeinbourg (since 2nd November 2006)

Finansbanken AIS 7. Lautrupsgade, DK-2 I00 Copenhagen (sincc 1 st March 2006)

Foyer, Patriinonium & Assoctatcs SA. 28, boulevard Joseph 1 1 . [.-I 840 I.uxeinbourg (since 1 st March 2006)

F iiiidaiiien t uiii

8. rue du Fort Rheinsheim, 1.-2419 l u e m b o u r g (sincc 1st March 2000)

Heptagon Capita I Li mi tcd P.O. Box 309GT. Ugland House. South Church Strcct, Cicorgc Ton,n. Grand Cayman. Cayman Islands (since 10th October 2006)

Heptagon Capital LLP 20, Grafton Street. L‘K-W I S 4DZ London (since 10th October 2006)

International Fund Services 2, rue Joan Monnct. L-2 I80 Luxembourg (since 1 st March 2006)

KREDl ETBAN K S. A. Luxembour_eeoisc 43. boulcv.ard Royiil: L-2955 Luxcmhourg (since I st March 2000)

Landsban ki Luxembourg S. A. 85-91. routc dc Thionvillc. L-l 01 1 Luuembourg (since 1st March 2006)

3


ORGANIS AT I ON (continued)

Liiide Parlncrs Assut Management S A 134. route d'Arlon, l_-XOOX Strassen

Lot7. Stucki turopc L A . 74. Grand Ruc. L-1660 L.uxembourg (until 28111 F c b r u q 2006)

Pri va I IIX M iiniigcmc n t S . A. 43. boulocard Prince Henri. L- 1724 Luxcmbourg

Sydbank A!S Peberlyk 4. DK-6200 Aabcnraa (sincc I SI March 2006)

C'HS S.A. 17-21. boulevard Joseph 11, L-2010 Luxembourg (cince I S t March 2006)

VI' Hank Finaiicc S.A. 36. aveii i ie de In Libcrtd, L-20 I9 Luxembourg (sincc I st March 2006)

Independent Auditors

Priccwalcrl1ouscCoopel.s S i r.1. Kd\;iscor d'entrepriscs 300. roiite d'Esch, L- I47 I Luscinhoiirg

4


GENERAL IIVFORMATION

LINDE P.4RTNERS VALLE FlJND (the 5 I C A \ ~ . ’ ) is an open-ended in\wtmcnt company registered on the official list of collective investment undertakings pursiiant to part I of the modified Luxembourg law of 20th December 2002 on collective investment undertakings (the ” I ~ I w ’ ~ ) . The SICAV was incorporated on 12th September 200 I .

The investment objective of the SICAV is to manage the assets of each Sub-k-und for the benefit of its Shareholders and to achieve B long-term capital gt-owth by investing in a broad range of ti-iinsfcrable securities.

Thc “umbrclla” sit-ucturc ollkrs investors iiot only the advantage nf bcing ablu lo choose bet\veen different Sub-Funds but also of‘ bcing able to switch bet\veen these Sub-Funds: fiirthct-morc. within each Sub-Fund, each investor can choose between capitalisation of the Sub-tund‘s earnings and distribution thereof in the form of dividends. b>/ selecting either capitalisation shares or distribution shai-us.

On 1 st February 2006. the Board 01’ Directors dccided to create. within each class of shares of each individual Sub-Fund. Suh-C.’lasscs dcdicritcd to institutional sharcholders (I-class of shares). On 8th December 2006. the Hoard o f rlircctors decided to rcnamc the cxisting I-cliiss 01‘ shares within each Sub-Fund dcdioatcd to institutional shareholders into I 1 -class of shares. It w a s also ~ r c ~ o I ~ e d to create, within each Sub-Fund. ncw classes of shares dedicated to potential new institutional sharcholdct-s. Those new classcs of shares are named I2 and 13 classes ofshares.

At the datc of the report. three Sub-Funds arc activated:

- 1,INDE PAKTNEIiS VALUE FUND - GLOBAL - LINDE PARTNERS VALUE FUND -JAPAN - LINDE PARTNERS VAL1:E FlJND - BLUE CIlIP VALUE

in EUR i n EUR i n FUR.

Tlic annual general mccting o f Shut-choldcrs of‘ tho SIC:,\\; is held at the registered office of the SlCAV or at such othcr plucc in Luxembourg on the second \\ccdncsday of the month ol‘Maq i n each year at 1 1.30 a.m.. or if any such day is not a bank Business Duy i n Luxombourg. on the next following bank Business Dity i n Luxembourg.

Notices of all general iiieetiiigs are sent to the holders of registered shares by post :it least 8 days prior to the meeting a t their addresses shown on tho rogistcr ol’ Sharcholdcrs. Such notices include the agenda and specify the timo and place of the mccting and thc conditions of admission. They also rcikr to the rules of quorum and mri.jority required by I.uxembourg law and Inid down iii Articles 67 and 67-1 of the Law of 10th August 1915 on coinmetrial companies (as amended) and in the Articles of Incorporation of the SICAV.

Audited annual reports are published within 4 months following the end of the accounting year and unaudited semi-annunl reports arc puhlished within 2 months following thc pel-iod to which they rc1i.r.

The Articles of‘ Incorporation. the f d I prospectus, tho siniplilicd prospcclus. Ihc most recent audited annual and unaudited semi-annual reports arc miidc aviiilahlc at the I-cgistcrcd oflicc ol‘ llic SICAV during noririal business hours.

The SIC‘ 4V‘s accounting year ends oil 3 1 st December each year. The accounts of the SICAV arc held in EUR. The Net Asset Value per sharc ol’caoh Sub-Fund i s dcmminccl Ibr cacli class on a daily basis.


REPORT OF 'THE BOARD OF DIRECTORS

The year 2001, produced :i return within the Fund's long-term expectations of 10-1 S o b to the investors of LPVF Global and LPVF Rluc Chip \:slue. C'onsequcntly, inccstors could iidd 14.09.; and 13.3",;). respectively 10 [heir assots compurcd to tlie return of 7 . 9 h gcnoriitcd by 41SCI World. On the other hand, iiivestors 01' LPVF Japan had to experience the truth of thc over normal retorn of 2 1 .Y!+ in 2005 being rcpliiccd by a sinall negative return of.l.O'!,b in 2006 as agitinst the ncgntivc return of4.8Sb recorded by hlSCl Japan.

2006 saw sigiiificant curt-cncy tluctuaticms n.hich greatly iiiipacted the reluriis p c r a t c d by LINDE PARTNItKS \?ALIJE FULD. Contrary to 2005, when USD rose by 15.3')% towards FUR, 2006 saw a fall of 10.4')/0. Due to thc high pricing of LIS stocks. tlic sharo o f bS stocks i n our global portfolios is very small. nicaniiig i l i ~ our investors were not badly al'l2ctcd by the dollar fall. On the other hand. however. the same Flobal portfolios contain 18- I 0')~~i) in Jnpancsc stocks and therefore recorded a loss due to JPY having Ihllcn by 1 1 .2?,1 towards ELR. I n LPVF Japiin. this fall rcsulted i n a negative retiirii of 4.0'!h in EUR terms. whereas the return was a positive X . l " i , in terms of Jt'y,

Although very wlatilc. tho Get-man stock inarltet \vas one of the best performers in 2006. Thu DAX and MDAX indices I-osc by 2.3"; and 28(?0. respectiLcly during tlio your. bul n i i h hca\.-y fluctuations in May and June. One of 1hc rciilly big winners turned out to be Schcring ACi tha t \viis cxposcd to tukc-ovcr attempts from German Merck and Bayer with Baycr as thc ~ innc t - . Schcritig A G w s tlic largest position i n LPVF Global and Blue Chip Value w.Iieii tlic bidding stat-tcd.

During ihc lirst sc\cti years of this century, tlie general stock iiiarkct lias sccn a total ncgiitivc rctitrn in tcrins o f MSCI L\:orld .I'here is E U R 88.7 left of' an invcstiiicnt 01' EUR 100 miidc on 3 I st Ilcccmber 1999. By way of comparison. the risk-free return in ternis ol' MSCl's 7-1 0-yciir bond index arri\;ed at 26.74i) during the saiiie pcriod, corresponding to 3.0"" pa. .4ssuming this unnuiil return continucs during the remainder of the decade. bonds will haw yielded a return o f 3 8 . 5 0 i I n order jus1 to reach tho same Icvcl of return. stock markets iiiitst rise by 5hn.u over tlic next three years. corresponding to an annual return o f th.0l.b. Uy \viiy of comparison. M S C I World produced an atiniial return of 12.7u,;) over the past three preceding good years. Conscqucntly. stock market returns might be oiitperfbrinxl by bond rcturns at the end ol' this dccadc. Thc csplanation is naturally the fact that the stock iiiarltct cnict-cd this dccadc by losing 44.S"i of its ~ a l u e in three years. This iiieans that even subscqiicnt vet-y hundsomc returns tire spent on re-establishing investinents instead of adding to tlioni. During the same scvcn-year period. ILiiide Partners Global Coiiiposite lias returned I25.0'! 0. corresponding to ;in annual t-ctwi of 12.3?0 before administrative costs and iiiaiiagcineiit fees.

Following sc\.cn ycars with a total negative retorn on the gentral stock market. the general stock market is priccd rcasond>ly rclati\ c to fair value according to our pricing model. Hou,ever. this covers wine regional difl'erences wi th the [!SA k i n g priccd somc\\:hat above fair value notably i n the light of declining growth expectations. whcrcas I :LII .O~C and Japan are more attractkely priced. IMF expects to see a sagging economic growth trend in 2007 based B I S O on the cooling of the US housing market. lherefore. we cannot rule out the possibility of declining corporate earnings gron-th in 2007. This docs not support the albrcincntinnod siock niarkot rctLirn 01' 56'),i over tho next throe yciit-s- which also makes i t hai-d to belie\ c that thc stock market can outperforiii - or he on par with - the bond miit-kct in the first IO-ycar pcriod of this century.

In spite of intcrcst rate increases i n the L!SA. Furope and Japan. money supply remains abundant which helps to support the stock iiiarkct. M k A aclivitics remain high a s wcll. Privatc cqitity fitnds haw had to pay higher multiples to have coinpanies delisted or to acqLiirc thein koin their pre\ious o\\ticrs. I n the s ~ n i c way: Ihc corporate bond market is including a risk preinium (additional yield) which is currently at ils lowcsl For a very long time. In other \vords. the safety margin required by tlie capital niarket for acquiring a n asset is narrowing. This is taking plact wliilc growth expectations arc also trending downwards. altogelher malting a cocktail lhat may lead to higher volatility on the stock markct in 2007.

Our investment process is designed to exploit tlie possibilities at rising insecurity or when in\-estors suddenly leave or enter certain sectors u:ith large price fluctuations as a result.

h

LlNDE PARTNERS VALUE FUND

REPORT OF THE BOARD OF DIRECTORS (continued)

The tables below s l i o ~ risk I q figiircs for Linde Partners Value Fund : I.inde Partners Global. Blue Chip Value and .lapail Composites.

' Composite figures are calculated gross of all cobk except tradiriy costs

Linde Panners Value Fund Global fiyures are calculatcd with a11 costs included

* LPVF. Japan was launched in 2002 for which reason a 5- and 0-year traLk record IS riul available

Irislead Linee Partners A M Japan Composite 1s shown

' Composite figures are calculaled gross of a11 costs nxcppt trading costs '* Linde Partners Value Fund Japan figures are calculated with all cosls included

. LPVF Blue Chip Value was launched in 2002 for which reason a 5- arid 7-year track rrcnrd is nnt available

Instead Liride Partners AM Blue Chip Value Cornposite is shown

* Composite figures are calculated gross of all costs except trading costs Lmde Partners Value Fund Blur Chip figures are calculated with all costs iricluded

Luxembourg. 5th April 2007 The Hoard of Directors

Notc: Thc i n f h d o n in this I-cpurt rcprcscnts Iiistoricd data mid is not an indication ottiiturc rcsults.

7


INDEPENDENT AUDITOR'S REPORT

To thc Sliarcholdcrs 01' LISDE PARTNERS I'ALUE FUND

We have audited the accompanying tinancia1 Statcnictits 01' LINDE P A R T Y E R S VALUE F L N U and of c a d i of its Sub-Funds. uhicli coiiiprisc the stutcnicnt 01' net assets iind the statement of invcstments and other net assets ;IS at 3 1 st December 1006 and tlic statcnicnt o f operations and other changes i n net assets for the year tlieii ended. and n siiinmary of significant accounting policics and othct- cxpluniitory notcs t o thc financial statcmcnts.

Board ol' Directors of thc SIC:,\V's rcspunsibility for tlic titiancial statements

The Boiit-d of Directors of tlic SIC'AV is responsible for the piqxtration and fair presentation ut' tlicsc financial statomcnts i n :iccorci;iiice nit11 I .~r.iembourg legal and regulator!; requireiiients relating to the preparation ol' thc financial stateiiients. This responsibility includes: designing. impleiiieiiting and ~iiaintaining internal control rclcwnt to tlic preparation ;uid fair prcsentation of tlnancial stnreinents that are free froiii inaterial niisstntenieiit, whcthcr (hie to fraud or crroi.: selccting mid applying appiqr ia te accounting policies; and iiiakiiig accounting cstim:itcs t1i:it are reasonable i n the circ~~~iistaiices.

.4uditor's responsibilit!

Our responsibility is to exprrss an opinion on these financial statciiicnts based on oiir audit. We condiictcd oiir audit in acuordancc with International Standards on Auditing as adopted by the "lnstitut des Iteviseurs d'Entreprises''. Those standards require that we comply w-ith ethical requirements and plan and perform the audit to obtain reasonable nssiiraiicc whether the financial statements arc free froiii inaterial tiiisstatciiicnt.

An audit invokes performing procedures to obtain audit e\;idence about the amounts and disclosures i n the tlnancial st:iteiiieiit.j. Tlic procedures selected depend 011 the Auditor's judgment, including the assessiiient of the risks of matorial iiiisjtateiiiciit of thc tln:uicial st:itciiic'iits. whotlicr duc to fraud or error. I n malting those risk assc'swiciits. the Auditor considers internal control relewnt to thc cntity's preparation and fair presentation of the financial statrments in order to design audit procedures that are appropriate iii the circwristances. but not for the purpose of expressing an opinion on thc tffccriveness of tlie entity's internal control. ,411 audit also includes c\.aluaring tlic appropriateness 01' accounting policics iiscd and tlie rcasonablciicss of' accounting estiiiiates made by tlic Board 01'Dircctoi-s of.tlic SICAV. as we11 as c\.aliiatiiig tlic overall presentation ol'tlic Iinaiicial statements.

\+c bclic\.c that the audit cvidcncc we l i n e obtiiincd is sufficient and appropi-iiitc to p t - o ~ idc ii hiisis for oi i t - iiiidit op i n i o 11.

Opinion

In oiir opinion. tlicsc l inanuial statctiicnts give a true niid fair view of the tinancial position of I.IUI)E P A R T N E R S VALI!E FUND iind ol'cacli 01' its Sub-Fuiids as of 3 I st Deceiiiber 2006. aiid of the results of their operations ;uid changes i n their net asscts for the ycar thcn ended i n iiccot-diincc \vi111 Luxcniboiirg legal and regulatory rcquircmcnts rc1:iting to tlic preparation of thc finiinciul htutctiicnts.

Y


INDEPENDENT AUDITOR'S REPORT (continued)

Other matters

Suppletnentary inforination included in the annual report has bten reviewed i n the context of our rnandatc hut has not heen subject to specific audit proccdurcs carried out in accordance with the standards described ahovc. Consequently, we express no opinion on such iiifbniiation. However, we 1iak-e no observation to makc concerning such iiilbriiintioii in thc contcxt oL' thc f i n e n u i a l statumcnts taltcn as a whole.

Price~~aterhouseCoopers Si r.1. Reviseur d'cntropriscs Represented by

Pierre Krier

Luxembourg. 5th April 2007


ASSETS Sccurit ius poi-tli)lio ;ir mai-lict valiic Cash at banks Rcccivablc oil issues of sharcs Income I-cccikablc oii portfolio Inrcrcst rcccivablc on bank accounts 1'1-epiiid uxpui iws

'l.otal assets

'To tit I I i ab i I it i cs

N E T ASSETS at thc cnd of thc year

C'apitalisarion I I sharcs oursrailding hot usset v ~ i l u c per capi td isat io i i 1 I sli;ii-c

Dis t r ibut ion sharcs outstanding Net asset value per dis t r ibut ion s l i m

STATEMENT OF NET ASSETS as ut 3 1 sl Dcccmhci- 2006

Consolidated GLOBAL JAPAN BLUE CHIP VALUE

(in FI!K) (in ELR) ( in FUR) ( in E U R )

65.5 19.195.72 46.993.654.54 2,H'?.XXl.h3 2.003.3Xi.h-1

251,74430 22'44.30 5 1.300.33

6.946.43 4.855.0 1 6.662.98 4,555.23

(78.67 1.91h.05 49.309.993.05

64.0 I I .99

I .334.246.96 17.191.294.22 54.799.07 703.70 1 -92

911.57 I I .734.09 1h2.73 1.02X.09 160.20 I .937.55

I .390.336.53 I 7.07 I .m) .47

h I .3hh.20 h I .3hh.20 5X1.220.90 3x2.x2x.:4 X.904.h I I90.404.0 I

643,593.16 411.194.51 8.903.6 I 190.493.0 I

6X.02X.352.89 48.865.79X.S I I .3x I A4 I .92 l7.7X I. I 12.46 .--

I 15.622.707 I l h . 5 l

17.664.153 IOO.OOO I.838.000 145.56 138.45 152.sx


STATEMEKT OF OPERATIONS AND OTHER CHANGES IN NET ASSETS froin I st Jaiiiiary 2006 to 3 I st December 2006

Consolidated GLOBAL JAPAN BLUE CHIP VALUE

( i n EUR) ( i n EL'R) (in E U R ) ( i n EUR)

INCOME Dividends. nc l Interest on bank acc'oLinis Rcccivcd commissiotis

Total income

EXPENSES Ad\ isory fees Pcrformancc fees Custodian fees Banking chargc.; nnd other fccs Central adininistrarioii cosis Audit arid supervisory fees Othcr aciministrarion costs Subscription duty ("tiixc d'abonncmcnt") Other expenses

Total expenses

NET INVESTMENT INCOME

NE?' REALISED GAIK/(LOSSl - 011 portfolio - 011 forcign exctiniige

REALISED RESl!LT

h74.383.93 43 1.796.60 17.832.57 724.754.76 3 j.08 7.34 2 I, 194.42 490.46 I I .402.46

700.097.';2 452.99 I .02 10.049.28 236.157.22 I.026.2'; I .62h.25

337.056.62 2i9.X I x.75

24.4 16.45

12.i.OW53 47.265.01

420.1.33. I4 21.1 13.81

2.3 9 i .8 6

I I .759.60

222.227.00 I w . 3 12.03 16.192.78 5.93 8.99

5 1 S36.93 29.588.99 2 5 5 .98 2.3 0

13.064.25 2.397.86

11,415.12

807.3 I ?,8 I I .78

34,8 14.25 I .8 10.05

17,773.72 746.36

103,414.50 89,506.12 7:41 h.3h 3.008.83

39,(i47 35 15.86597

15.377.06 7.303.20

I .238,059.77 7 4 7 3 1.79 70, 178.59

-529.86225 -294,250.77 -50.229.3 I - 1 Xj.3X2. I7

2.977.158.04 2.305.350.07 157.062.jj 5 14,746.32 - I 8. I 53.35 - -3.235.40 -7,946.68 -6.97 I .48

2.429.14.;. 13 2.007.XOi.90 08.886.56 322.392.67

NET \'ARIATIOZI OF TllE USREAIdISEI) CAlIu/(LOSS) - on portfolio 3.990.3 13.57 2.725.082.3 7 - 146, I 19.97 1,420.35 I , I7

RESULT O F OPEKATIONS 6.42X.456.70 4,732,94627 -47233.4 I 1,742.743.84

Subscriptions 44.287.62 1.32 36.803,041 .67 I .? I 1.403.00 6,273.176.65

Rcdciiipt i o n s -I?.X53,731.84 -10.433.813.79 - I ,456.086.59 -963:830.46

TOTAL CIIANGES IN N F T ASSETS .37.X6?.346. I8 3 I . 102.173. I5 -291.917.00 7.052,090.03 - - ~

TOTAL VI-Cl' ASSETS at the beginning of 30.1 66.006.71 11.703.625.36 1.673.358.92 I0.729,022.43 thc yciir

TOTAI. NET ASSETS at thc cnd ofthe year hX.02X..52.X9 18.865.798.5 I 1.38 I .44 I .92 17.78 I . I 12.46


STATISTICAL INFORMATION as at 3 1 s t Deceiiiber 2006

Total llrt assets -~1~~1t31.12.2006 - 2, at i I . 12.2005 - as 211 3 I . 12.2004

Portfolio 'Iurnovcr Itate (in %I)

(siihsci-iptioiis and rcdcmptions of shai-cs arc ncttcd by N h V calciilatioii) - as at 3 I . 12.2006

Kumber of capitalisation shares - outstanding at tlic bcgintiing of thc ycar - issucd - redeemed - otihtaiiding a1 thc end o r thc year

Net asset value per capitalisation share - ;IS at 3 I . 12.2006 - a s at 3 1 . 12.2005 - a5 a t 3 I .1?.?001

TER per capitalisation share (in '%j - i j s ;It 3 I , I2.2000

ii illiotit p z ~ - l i ) ~ - m m c rt.c ivith pcrformancc li.c

Number of capitalisation I I shares - outstanding at thc beginning ofthc ycar - issucd - redc.einct-l - outstanding at thc cnd of thc ycar

Net asset value per capitalisation I 1 share - as at 3 I . 12.2006 - a s at 3 1 .12.2005 - 215 at 3 I . 12.2004

TER per capitalisation I I share (in %I)

- as at 3 I . 12.2006

, . .-. . . . .

* annualised

humher of distribution shares - outstaiidiiig 31 rhc bcgiiinin? of tlic "car - issi icd - redeellied - outstailding at the elid of'the !car

Net asset valuc pcr distribution share - as at 3 1.12.2006 - 21s at 3 I . 12.2005 - as at 3 I . 12.2004

TER per distribution share (in "/") - a s at 3 1.12.100h

..-- --

ivitlinut pcrtbrmancc fer M i th petronilnnce fee

GLOBAL

(in EIJR)

48.865.798.51 17.763.625.36 12.4 17,320.40

-7.0 I

136.h54. I85 92.379.969

JAPAX BLUE CHIP VALUE

(in E U K ) ( in E U R )

I .381.441.92 17,781.1 12.46 I h73JS8.92 I0.729.012.43 I .332,825. I5 4.IO5.?33.18

49.04 2.91

I 1.506.932 79.155.966 8.270.8 I4 42.366.9SO

-27.367.X7 I -0.900.185 -6.82 1.427 20 1.666.283 9.877.561 I14.701.4Y9

145.56 127.60 I09.5X

138.35 143.17 I IX.66

4.62 4.6'

I j 2 , i X 131.66 I IX.39

2.42 3.07

146.5 I

* 1.16

2.402.059 100.000 5 IX.000 15.93 I, I94 I .350.000

-760.000 -30.000 17.664. IS3 I00.000- 1,838.000

141.56 127.66 109.58

2.13 2.80

I jX.45 144.17

4-06 4.66

152.58 133.66 11X.39

2.33 3.13


GLOBAL

STATEMENT OF IIVVESTMENTS AND OTHER NET ASSETS as at 3 I st Uccumhcr 2006

(in E U R )

INVESTMENTS IN SECURITIES TRANSFEHABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHGhGE LISTING

Sharcs c a r )

C'HF CHF CHI; ('HF C'HF CIIF

DKK

E L R F I R ELR F l... R ELK LLK F I; R F L1 R E U I< LLIR E U R ECIR EUR EI!R EUR Ll!R F.UR F.UR LCIR

GDP CiUP GUP GBP GBP (iBP CJRP

.IPY JPY JPY JPY SPY J PY JI'Y J P Y J r'y J PY J PY JPY J P Y JPY J PY

10.500

13.900 95.000

I .x00 6.970 9. IO0

36.600

'X.300

.io.Jiio '34.X00

2 ~ , 4 0 0 X.000

12.600 27. IO0 I4.000 59.000 32.300

I .450 I70.700

7.000 12.500 52.100

900

I2.000 14.500

I 00.500

4.ooo

9.500 107. IO0 IOS.fi00 I85.400 4 1.200 17.000 99.520

35 .000 5x.000 73.000 I5.000 8.000

36.000 I I.000 I3.000 7,000 3.500 9.000 .YO00

I0.000 I2.000 Il.000

Novo Noi-disk A S U

!\jiiioiiioro c'o Inc As;ihi Urclvcrics Ltd Asnhi Kasci Corp ,\stellas Phariiia Inc Ri- i t lywmic Corp c'hiipai Ph ;~~- t i i i i c c~~ t~c~ i I C'O Ltd Cii-clc K Sunkus Co Ltd C-itizcn Watch C o Lrd h i i c l i i Sankyo Co Ltd Lisai ('0 Ltd Familymiirt Co Ltd Fast Rct;iiling I loldings C o Ltd It0 t.:n Ltd Kilo Coi-p Kikkoman Corp

685.1 10.83 I .330,134.X2

375.67 I .49 I,706.436.31

929.508.99 XY5.7YX.63

5.922.73 I. 10

I .J I i.XJ I .7S

I .8 62.096. 00 I .700,474.47 I .X60.306. I I

396.OYh.X') 234.6XX. Xh

I .i?0.892.78 393.096.29 I78.092.55

I .554.X29.X9 137.284.30 317.966. I9 IX7.02 1.20 976.743.02 XXO.302.07 78.777.99

620.432.44 320.f;l5.30 228.750.34

I .026.3 16.09

14.7 I5.392.XX

92.406.00 h46.556.60 722.2 19. I x 1X7.306.20 242.166.22 185.969.70

3.016.17X.52

4.392.902.42

3 11. 196.34 600.95 5.77 356. I 2 I .93 4s 1.7 10.38 123.380. I 2 613.360. I 6 I97.4XX. I 2 88.259.07

106.637. I 2 98.343.93

I x4.059.33 208.726.72 2 12.493.34 225. 104.x7 182.767.86

5 17,376.14

700.024. I I I .077.287.58

4 12.709.1 I I .X7i727X.XS I .235.4Xh.S3 1.239.432. I8 6,540.2 I X.36

I .7Xh.233.03

I .90 I s92.00 I .X92.488.00 2.097.330.00

599.600.00 3 67.542.00

I .907.x40.00 56X.900.00 443.090.00

2.039.745.00 230.350.00 505.272.00 273.X28.00

I .303.500.00 986.253.00 I2:.x00.00 X00.400.00 5xx.000.00 265,785.00

1,030.125.00 I x.02s.s 10.00

I 10.472.39 XhO.62') .A 857.109.63 5X3.175.08 4 15.479.20 253.1 13.67

I,980.5 15.30 5.072.494.87

350.4 16.38 703.2s I .30 36 I .949.47 5 10.500.93 135.IX9.25 Sh2.523.74 I4X.07X.05 lS.37X.X2

165.730.49 145.691.23 I xs.59x.79 216.913.82 23 I .hX0.'5 245.1 73.72 I55.4Xh.73

I .06

I .43 2.2 I 0.85 3.84 2.53 2-53

13.40

3.00

3 .W 3.x7 4.29 I .23 0.75 ?.YO 1.16 0.91 4.17 0.4X I .0; 0 .56 2.85 2.02 0.26 1.04 1.20 0.54 2.1 I

3f>.X6

0.24 I .76 I .75 1.19 0.x5 0 . 5 2 4.07

10.38

0.72 I .14 0.74 I .06 0.28 1.15 0.30 0.15 0.34 0.30 0.3X 0.44 0.47 0.50 0.32


GLOBAL

STATEMENT OF INVESTMENTS AND OTHER NET ASSETS (continued) as at 3 1 st December 2006

(in EUR)

.I PY SPY S P Y SPY J PY SPY SPY .IPL SPY J PY SPY SPY SPY SPY .I PY

SEK SEK SEK

1;su L.SD

1;su I:SD

K w

I v k;s'l- I\

33.000 4.000

:0.1)00 6.000 5.000

I I .ooo 4.000 X.200 4.000 5.000

37.000 I 6.XOO ;.ooo

12.300 2Y.000

3 I7.380.32 78.668.06

7X9.61Y.h-l 1 55.X52.96 343.539.33 i09.305.98 I12.XX7.50 305,64X.57 I X9.963.99 163.392.82 773.XX3.1 X 3X6.044.00

99.953.5 I 57 I .778.3? 2X5.lY0.il

392.984.44 I13.030.59 320.7XX.04 137.4X0.59 3 5 7,067 .64 29X.256.50 I 12.275.8 I 317.763.91 I61.771.11 I96.355.3X 7 5 5 . 9 5 2 9 39 S.63X.3X 152, I x3. i7 639.609.34 287.022.55

67.600 Constclletion Brands Inc H .I Hein/ C o X. I00

8.100 Kratt Foods Inc 4 13.500 Ilcrcl< 24 c o Inc 98.200 Pli/cr liic

CASH AT RANKS OTHER S E T ASSETS:(LIABILITIES)

TOTAL

X,X53.775.34

0.x0 0.23 0.66 0.2X 0.73 0.6 I 0.2; O . h ? 0.31 0.10 I . is 0.8 I 0.3 I I..? I 0.50

l X . l I

34 I . 2 9 1 s 1X3.732.3X 0.09 X44.3X7.9 I I . I74.9X0.76 2.11 I15.302.30 I7 I .9 I7.Xh 0.35

I .300.983.68 I .X30.6i I .oo 3.75

I .J2?.231.75 22x.452.x: 225.7 I I .6X 4')8.139.07

1.91 1.335.71 42x6. 172.08

40.X56.XO4.5 I

I .487.')2?.94 3 .05 276.522.43 0.57 227.14x.90 0.17 446.433.3 I 0.9 I

I .Y29.008.2? 3.95 4.367.395.XO x.95

16.Y93.631.54 96.17

2.003.3X3.64 4. IO

-I a I 2'9.67 -0.17

48.Xbi.798.5 I I00.00

Thc accompanying notcs arc a11 Integral part 0 1 thcw linancial dBtCiricnIs.

14


GLOBAL

INDUSTRIAL CLASSIFICATION OF INVESTMENTS as at 3 I st Deceiiiber 20Ob

( i n pcrccnlagc o f ilcl a.sscls)

Food, hcvcragc and tobacco

Pharmaceuticals and biowchnology

Food rctailing. drugstores and pharmacies

Con.;umcr durables and apparel

Materials

Household and personal products

Rctailing

Technology hardwarc and cquipmcnl

Hotels, rcslauranls and luisurc

Hcalth care equipiiieiit and serviccs

Conimcrciiil scr\,iccs and supplies

Capital goods

Autoniobilcs and componcnts

TUTAL.

26.45 %

20.24 'Yo

17.21 Yu

1 1.64 ?G

10.23 Yn

3.63 '%

2.10oi"

1.58 %

I .53 ?/"

0.5 3 (!,G 0.40 (!,;I

0.35 '!A1

0.28 oi;

96. I7

GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS (by domicile ofthe issuer) as at 3 I st Lkcember 2006

( in pcrccntagc ol'ncl B S S C ~ S )

Japan

Switzerland

Cierinan y

Lnitcd Kingdoin

L'nited States ol' Ainci-ica

France

Thc Netherlands

Belgiiiiii

Sw-cden

Deninark

Ireland

Canada

Italy

A List r i a

TOTAL

18.1 1 Yo

1 3.40 %I

12.73 94 10.3x Y"

8.95 'Yn

X.45 nin

7.29 'YO

4.17 0;"

3.75 Yn

3.66 9.6

3.05 Y U

I .06 o/;

0.91 Yo

0.26 oii

96. I7 ?4J


JAPAN

S'T'ATEMES'I OF INVESTMEKTS AND OTHER NET ASSETS as at 3 I st December 2006

(in ELIR)

INVESTMENTS 11v SECURITIES TRANSFERABLE S E C U R l ' l I ~ S ADMI'ITFI) '1'0 /i\ OFFICIAI, STOCK EXC H AlVGE LIST IN G

Shares sr\- I ,so0 J P Y 6.000 J PY 4.400 JP'I I0.000 J PY 1 .600 J PY 3.X20 JP\' 2.000 SPY 2.600 J PY 2.800 .IPY 2.200 SPY 1.200 J P Y 2.300 J 1'1' I .400 J P Y 1 .000 JPY .s.u00 SPY- 4.000 .I PY I .:oo J PY 4.500 JPY I .on4 JPY SO0 JI'Y I .so0 SPY 2.000 JW I .so0 .IPY 1 ,500 SPY 1.000 .) PY I .ooo J PY 1 .?(Jo SPY 1.120 SPY 701) SPY- I .OOI) JPY 5 .ooo

I TOT,41.. INVtSTMFNTS IN SECLRITIES ~ CASH AT BANKS

OTHER NFT ASSI; I'S~(LI.4BILITIES)

TC)-I-AL

?9.908.56 32.967.09 39.401 3 7 50.5 I X.X2 4X.446.4 I 53.223.30 3J.OXX.2 I 44.I?7.9X 57.050.63 35.5Vh.77 a4.46 I .ss 5 2 . 9 3 . 8 3 25.16'9.MO 20.749.7 I 36.270.06 3 4 3 5 . I X 30.449.6 I 40.46 I -9.3 50.136.73 46.434. I 6 55.837.78 45.416.53 54.302.06 I I .7?0.04 35.351.11 35.OXI .6X 27.64 I .93 28.532.20 30.376.85 13.I73.09 39.403.00

1.223.541.2x

33.851.59 h0.071.3X s3.;50. I I 49,583. I' 55.094.07 42.980.62 33,797.3 I 40.626.79 37.692.59 52.089.87 49.931.2s 47.43O.XO X.J35.'4 30.131 . I4 45.73 I .3v 17,634.lX 3h.737.X7 48. I I x.2 I 43.627. I7 57. I30.XI 4X.XOS.6 I 5fl.13-.91 i9.95h.X I

Y.X24. I3 41.944.3 I 39.171 .ox 26.5h0.4') 26.375.9 1 .:5.509.45 52.000.7h 49.486.65

I .331.24h.90

54.799.0-

-7.604. I I

I .3X I .14 I .92

The accompnnying notes are iin inleyal part ofthcsc financial statcinciits.

16


JAPAN

INDUSTRIAL CLASSIFICATION OF INVESTMENTS as at 3 1 st Dccctnbct- 7006

( i n purccnlagc of net assck)

Pharmaccuticals and biotechnology

Food. hcvcwgc and tobacco

Rctailing

Houseliold and pcrsonal products

Hcallh care cquipmcnt and scr\ices

M atcri a I s

C'onsuiiier durnbles and apparel

'I'ochnology hardware and eyuipincnt

tiotcls. rcst;iiirants and leisure

Cn mmct-c i a I sei-\, i ccs and sit p p I i es

.i\utomnbi les and coiiipoiictits

22.38 94

2 2.09 9.a

14.71 ?'u

7.09 n4J

6.28 9,;

6. I 6 ?,'o

5.40 l.b

4. 14 ?,b

3.04 '?b

2.84 '%I

2.45 o,&

TOTAL 06.58 ''4,

GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS (by domicile of the issucr) as at 3 I S t I)ccrmber 2006

( i n percentagc of nct nsscts)

.I apan

TOTAL

96-58 9.b

96.58 'Yk

I

Thc accompnnyirig 1101~s iirc iiii iiiicsi-al pi i t - l or'tlicsc f inancial statcinciits

17


BLUE CHIP VALUE

STATEMENT OF INVESTMEETS AND OTHER IVET ASSETS as at 3 1 st Dcccmbcr 2006

( in EUR)

INVESTMENTS IN sEcuwriEs 'I'HANSFE;HAHI,E: SECUKlTlES ADMITTED TO AN OFFICIAL STOCK EXCH AKC E L1 STI YG

Shares C'AD 4.400 Gcolgu M CbtOll Ltd

C'IIF CI 11, i'HF CI IF C'I 11

FL.R LLIi LCK E L K ECR E L K F I R L c. K F,!..R EI:R E U R L: L,i K

SPY JPY SPY JPY J PY JPY JP)' SPY JPY JPY JPY SPY JPY JPY J I'Y SPY J P Y J P Y SPY JPY

I h.600 S 8 . I00 9,900 9.XOO 7.200

I 1.300 7.400 4. I00

I7.000 2.400

13.100 I3.XOO

2 I ,000 16.000 2 I .ooo

5.000 ;.000

IO.000 X.200 2.000 4.000

13.000 I 8.000 2s.000 2.000 3 .ooo 3 .000 3.000

12.000 7.720 5.300 5 . IO0

Scpa S a m i i p Holding\ Inc Scven k I Holiliiip C o I . td Shin-Ltsu Chumical Co I.1d Tnkcdn Pharmeccuticnl Co Ltd

214.012.14

3X0.hX3.43 '90,049.5X 57(;.002.78 '79.h24.33 3'8.lh3.03

I .X.'.4.X2?. I 5

?S0.510.02

3x7.7x3.14 298.38.5h 6 i2 .625. I 2 42o.xx0.03 5 18.123.2'3

2.207.050. I 4

5 I 7.Shri.70

i22

2.15 I .hX .:.7x 2.77 2.91 12.92

2.9 I

3.52 .:.09 4.1 I 3.xx I ,hS 4.01 I so 7 < 7

1.81 2.35 1.35 0.80

3 I . 5 i

0.39 I . 9 i 3.41 2 . 3 3.x2 0.92

12-77

1.15 1-09 0.59 0.97 0.23 0.88 I .09 0.4: 0.46 0.72 I .2 I I . i o 0.x0 0.46 0.67 0.1 I I ..3x 1-02 1.51 I ,10

3.2F7.307.26 I X.4X


BLUE Cf 1IP VALUE

STATEMENT O F INVESTMEIVTS AND OTHER NET ASSETS (continu :is at 3 1 st Lleceinber 2006

( i n E U R )

SEK SEK SFK

LSD I! s 1) USD USD USU r.:sn L SD

TOTAL INVt'STMMENTS IN SIi:C:I!KITIES CAS1 I A-I HANKS OTIIER N U ,4SSETS:(LIAHII.I~I~IES)

TOTAL

119.oxo.7 I 406.X10.8X IJ0.300.70

I .005.? 12.2')

31h.OXX.2 I 530.45 7 .73 170.h92.86 144.28 I .54 15.739.0';

3 17.463.6') 130.209.72

I .')87.9?2.80

-

__. I4.3'1.XO1.7' 17.191.294.22

7h4.701 .E

- I 74.XX3.68

17.7Xl.l 12.46

2.5.: 7 7,)

0 . N

5.66

1.95 2.98 0.96 0.8 I 0.27 I .7S 2.42

11.17

90.hX

4.30

-0.YX

100.00 __I


BLUE CHIP VALUE

INDUSTRIAL CLASSIFICATION OF JNVESTMENTS as at 3 1 st Decembur 2006

(in percentage of net assets)

Food, hcvct-iigu nnd tobacco

Pliurinace~iticals and biotechnology

Food I-etailing. drugstores and pharmacies

Materials

Consumer durablcs and apparel

Hotcls. rcstauranls and leisure

I louschold and personal products

Ret ai I ing

Capital goods

Technology hardwire and cyiiipment

Hcalth care cquipmeut and serviccs

Auloiiiobilcs and components

TOTAL

25.33 ?io

18.40 Yo

17.73 "/b

12.60 ?h

1 1.60 94

4.12?/0

3.03 04)

I .4x O/b

0.84 96

0.80 04 0.4 1 ?C

0.28 0'"

96.68 ?4

GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS (by domicile of'the issuer) as at 3 I st Dcccmber 2006

( in percentage of net assets)

Japan

Germany

Sw i tzcrland

L; tii ted Kingdom

United States o f Amcrica

The hellicrlands

Francc

Swcdcn

Bclgiuiii

Denmark

Irelalid

Canada

TOTAL

18.48 oil

13.21 Yo

12.92 :+I

12-11 Y" I 1 . I7 ?,'U

6.79 (!'l)

6.23 SO

5.66 9C)

4.01 9;O

2.91 ?/o

1.81 ?O

I .22 Yo

96.68 ?4


NOTES TO T H E FINANCIAL STATEMENTS as at 3 I st Dcccniber 2006

Nutc 1 - Significant accounting policies

Thc financial statciiionts urc prepared i n accordance with I .uxembourg regulations relating to irndertakings for collective investment.

a) Valuation of investments

The basic. accounting principles for determining the Net Asset Value of the Sub-Funds arc sct forth in the Articles of Incorporation. the mulei-ial provisions oi'\\hich provide as follows:

( I ) the value of any cash on hand 01- on deposit. bills and doiiiand notes and accounts receivable. prepaid expcnscs. cash dividends and intcrcst declared or accrued iis aforesaid and not yet received are deciiicd to bc the full aniount thcrcof. iiiiless in a n y case the siiinc is unlikely to be paid or received in firll. in wliich case thc value ttierwl'is arrived at after making such discount iis thc Directors may consider approprinto i n such case to rcllect the true wliic thereof

(2) the value 01' securities. which arc qtiotcd or dcalt i n on any stock cschangc is in respect of each security. tlic' lust knoivn price. ant1 \vhcro uppropriate. the iiiiddle iiiarkct price on the stock exchange w-hich is normally the principle i i ydc t for such security:

( 3 ) securities dealt in on another regulaicd iniirlcct arc valued i i i a iiiaiincr as near iis possiblc to that dosci-ibed in the prccoding paragraph:

(4) i n the event tlint any of the securities held i t i any portfolio on thc rclcvant Valuation Day are not quoted or doalt i i i on a stock exchange or anotlicr I-egiilatcd market or. for a n y of thc securities. no prict quotation is available. or if the price as dcterinincd pursuant to sub-paragraphs ( 2 ) and'or (3) is not in the opinion of the Directors representatiLc of the fail- market value of thc rclcvant sccut-itics, the value of such securitics is determined based on the reasonably foreseeable sales price determined prudontly a n d in good Ihith:

I

( 5 ) all other assets are valucd ai thcir respectiw Ihir viilucs as dereriiiioed in good Ikith by the Directors in accordance with gcncriilly accepted \ aluation principles arid procetlurcs.

b) Net realiscd profit ; (loss) on sales of investinents

The net i-oiilised profit 01- loss oii sales 01' invcsttnt'nts is dctcrniincd o n the basis of the aberagc cost of invesimcnts sold.

c ) Conversion of foreign currencies

The SICAV miiintains its accounting records in EI!R and its tlrinncial statcmcnts are expressed in this cui-rcncy. Assets and liabilities expressed i n currencies othtr thun I : L K are translated into E L K at the exchange ralos prevailing at the date of the report. Income and cxpcnscs in currencies other than I ! U K are translated into E L R at the cxchange r m s prevailing at the transaction date. Thc rcsulting profits and Iosljcs on translation arc includcd in the statement of operations a n d other changes in nct assets.

d) Consolidation

The consolidaicd statements 01' the S lCAV are cxprcsscd i n E L R . Each item of the statement ol' net assets and statcmcnt of operations and other changes i t i net a s s c ~ at the date of tlie report arc equal to the sill11 of the corresponding items i n the financial statements of each Sub-Fund.

I

21


NOTES TO THE FINANCIAL STATEMENTS (continued) as at 3 I st December 2006

e ) Forninrioii cspenses

Thc costs and expenses incurred in cotiticetion with the forination of thc Sub-Funds are amortized on a straight linc basis c n er 5 ycars.

Notc 2 - \Itin;igement fees and performancr fees

As rcnitincration for its services. the Invcslmcnt Manager reccivc from the SICAV a monthly fee of inaxiniuin 0.7S'!i~ p.a. calculated on the avcrugc nct assel value of each Sub-Fund respectively payable w-ithin thc first ten Uusincss Days after the last day ofcach month. For the Sub-Classes 1 shares. such fee may be reduced.

In addition, an annual performance fee is payable to thc Investment Manager and is calculatcd as a percentage per m i t i n i 01' the increase jii the Nct A.~scl Value of the Sub-Funds over the relevant financial ycai- (cxcluding this perfortn:incc fcc) and adjusted for any proceeds froin subscriptions or amounts paid out lor redemptions. Performancc of the Sub-Funds means the variation in percentages of the Net Assct Value per share determined with referencc to thc iiinounts and prices of the last Vduation Day in each financial ycar compared to the Net Assct Value per share dctcrinincd on thc tirst Valuation day of tlic same financial year.

The perfortnancu fees iii-c cq tral to 5% of such pcrforinancc.

The perforinancc li.c (il'any) is accrued in respect ol'the Sub-Funds o n each V'duation Day but shall be piiid within 10 Husincss Days alicr the relevant financial year-aid.

B n y negative performancc fcc for a linancial year is carried over into the succeeding year to offset any positive pcr1i)iiiiaiice in that subsequent period.

The Sub-C'lasscs I Shares bear no pcrforinancc fee.

Sote 3 - Taxtition

Tlie SICAV is govcrncd by Luxembourg law.

Pursuant to thc legislation and regulations in lbrce. the S1C:AV is subject to an annual subscription duty ( ' taw d'abonncinent') of 0.050~; n.hich is payable quat-tcrly and calculated oti the basis ol'the net assets of each class on the kist day ol'each quarter.

Thc Sub-C'lusscs 1 Shares will bcnclit l'roin the reduccd taxc d'abonnement of 0.01 ?&.

Sutr 4 - Distribution fecs

'I'hc distributors receivc a clu"rtcrly fee applicable on the average net asscts of each Sub-Fund that i t has contributed to the SIC'AV iit the niaxiiiiuim annual rate of l ' ! , ~

Tlic Sub-C'lasscs I S l ims bear no distribution I'ce.

,At tlic date ofthe repod the distribution fees ainounted to:

LINDE P-ARTNEKS VALUE FUND - GLOHAL LINDE I'AKrNERS Y41,UF. FIJND -JAPAN LINDE PARTNERS VALUE F L N D - BLUE CHIP VALUE

EU K 2 10.0 13.29

12.480.85 I345 10.46

I

Thew fees are rccordcd i n the statemcnt ol' operations and other changes in nct assets under the itcm "other administiatton costs".


NOTES 1’0 T H E FINANCIAI, STATEMENTS (continued) as at 3 I st Dcccmhcr 2000

Sote 5 - Total Expense Riitio (“‘I’EH”) and Portfolio Turnover Ratio (“PTR”)

The TER atid the PTK disclosed under “STATISTICAL INFORMATION” of this rcport wurc calculalcd in accordancc w-ith the “Guidelines on the calcula~ion itnd disclosure of the TliR and PVK” issued by the Swiss Funds Association “SFA” on 25th January 2006.

The TER and thu PTK are calculated for the last 12 months prcccding the date of this report. Transaction fkcs mu not taken into account in the calculation ol‘thc TER.

‘The PTR has bccn ciilculatcd according to the follon;ing Ibrniula (Total I - Total 2)’M*I 00 with Total I = Total securitics transnclions - X + Y

X - Securities purchases Y - Securities sales

Total 2 = Total subsct-iptions and redemptions S - subscriptions T - rcdcmptions S I T: subscriptions iuid rcdeiiiptions lit-c netted per N A V calculation day.

S -. T

M - average net assets

Note 6 - Changes in the in5estmrnt portfolio

Thc stutcmcnt of changes i n thc investment portfolio for the period 01’ tlic report arc available lice of chat-gc at tlic rcgistcrcd office of the SICAV.

23

linde partners - fundsquare

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