luce lhnce

1 4 MARS 2003

L u c e Lhnce SICAV

\

CREDIT AGRICOLE INDOSUEZ LUXEMBOURG

.. . . .. .. . -

Audited annual report at 3 0/09/02

Dolabase Publishing System: CO-Rewter@ by CO-Link. Belgium.

.-

Luxc el le n c e Societe d'Investissement a Capital Variable

Table of Con tents

Management and Administration

Board of Directors

Independent Auditors' Report

Consolidated

Prime International Technologies

Prime France Up

Genesis Fund

GT Valeurs

Global Wealth Management Fund

Notes to the financial statements

Page

3

3

4

5

8

13

18

25

30

35

Subscriptions can only be received on the basis of the latest prospectus accompanied by the latest annual report as well as by the latest semi-annual report, if published after the latest annual report. The details of the changes in portfolio composition are held at the disposal of the shareholders at the registered office of the SICAV and are available upon request free of charge.

Poge 2

Luxcellence Societe d’Investissement a Capital Variable

Management and Administration

REGISTERED OFFICE

Crédit Agricole Indosuez S.A. 39. Allée Scheffer L-2520 Luxembourg Grand Duchy of Luxembourg

CUSTODIAN. DOMICILIARY AND ADMINISTRATIVE AGENT

Crédit Agricole Indosuez Luxembourg S.A. 39. Allée Scheffer L-2520 Luxembourg Grand Duchy of Luxembourg

ADVISOR Luxcellence Advisory Company S.A. 39. Allée Scheffer L-2520 Luxembourg Grand Duchy of Luxembourg

LEGAL ADVISOR In Luxembourg Mr Pierre Delandmeter 7, rue du St Esprit L- 1475 Luxembourg Grand Duchy of Luxembourg

INDEPENDENT AUDITOR PricewaterhouseCoopers S.à r.1. Revi seur d’entreprises BP 1443 400, route d’Esch L- 1 O 14 Luxembourg Grand Duchy of Luxembourg

Board of Directors

DIRECTORS

Mr. Antoine Gilson de Rouvreux, Senior Banker. Crédit Agricole Indosuez Luxembourg S.A. Mr. Pierre Delandmeter, Member of Luxembourg Bar, Luxembourg Mr. Vincent Marc, Senior Sales Manager, Crédit Agricole Indosuez Luxembourg S.A. (as from 30 September 2001 until 26 October 2001) Mr. Roland Dillien, Vice-president. Crédit Agricole Jndosuez Luxembourg S.A. (as from 28 October 2001)

Page 3

Luxcellence

Independent Auditors’ Report

To the Shareholders of Luxcellence

We have audited the fmancial statements which consist of the statement of net assets, the statement of operations and changes in net assets, the securities portfolio and the notes to the financial statements of Luxcellence (“the SICAV”) and of each of its s u b h d s for the year ended September 30, 2002. These financial statements are the responsibility of the Board of Directors of the SICAV. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining. on a test basis, evidence supporting the ,amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Board of Directors of the SICAV, in preparing the financial statements, as well 3s evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the attached financial statements give. in conformity with the Luxembourg legal and regulatory requirements, a true and fair view of the financial position of Luxcellence and of each of its subfunds at September 30, 2002 and of the results of their operations and changes in their net assets for the year then ended.

Supplementary infomation included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. We have no observation to make concerning such information in the context of the financial statements taken as a whole.

PricewaterhouseCoopers S i r.1. Réviseur d‘entreprises rep esented by

Luxeinbourg. October 22.2002

3 ($j@ Christophe Pittie Claude Jacoby

Page 4

. .. .-

Luxcellence Consolidated

Page 5

Luxcellence Consolidated Financial Statements at 30/09/02

Statement of net assets at 30/09/02 Expressed in Us11

Note 2

Assets

Securities portfolio at market value Cost price liïirealised depreciation on the secirrities porifolio

Cash at banks and liquidities Time Deposits Interest receivable Formation expenses Note 2 Unrealised appreciation on forward foreign exchange contracts Note 5 Other assets

Liabilities Bank overdrafts Unrealised net depreciation on financial futures Other liabilities

Net asset value

Note 6

Note 7

42,987,966.51

37,296. I 18.97 5-1,626.704.61 -I 7.330,555.64

3.507184.15 1.922.551.40

136.653.46 37.128.77

175.96 138.033.80

186,387.48

1.563.37 74.358.88

160.165.22

42,801,579.04

Luxcellence Consolidated

Statement of Operations and Changes in Net Assets from 01/10/01 to 30/09/02

Income Net dividends Net interest on bonds Bank interest on cash accouni Bank interest on time deposits

Expenses Amortisation of formation expenses Management & advisory fees Custodiun & sub-custodian fees Taxe d'abonnement Administrative expenses Incentive and performance fees Domiciliation fees Professional fees Bank interest on overdrafts Legal fees Other expenses

Note 2

Note 2

Note 2 Note 4

Note 3

Note 4

Net income from investments Net realised loss on sales of investment securities Net realised loss on financial futures Net realised loss on foreign exchange Net realised profit on forward foreign exchange contracts

Net realised loss Movement in net unrealised appreciation / depreciation on forward foreign exchange contracts Movement in net unrealised appreciation / depreciation on futures Movement in net unrealised appreciation / depreciation on investments

Note5

Note 6

Decrease in net assets as a result of operations

Increase in net assets

Reevaluation of opening consolidated NAV

Net assets at the beginning of the year

Net assets at the end of the year

Subscription capitalisation shares

1,025,653.59 304.66 1 .O9 309,393.18 105.083.30 306.5 16.02

495,203.66 7.947.36

175.932.96 39A99.33 24.610.6s 85.497.03 15348.29 8.621 3 2

65 .806. 53 5.4 10.58

54338.46 11.790.64

530,449.92 -2.671.7 13.61

-27.512.64 -192A88.62 XOS._SS6.51

-1,558,708.44 175.96

-24.358.88 -l6,73X.I 17.52

-18,321.008.88 56,128.553.32

37,807,544.44

330,926.93

4,663,107.67

Note 7 42,801,579.04

The accoiiiy,ulyiiig notes fomi an integral part of tlicse financial statenletits

Page 7

. . . . . .... . . . . . .

L uxcellence Prime International Technologies

Page 8

Luxcellence Prime International Technologies

Manager's Report

Prime International Technoloqies - 2002

ARer suffering from the depletion of the Technology Bubble in late 2000 and for the most part of 2001. the fund has faced another tough year in 2002.

After a quick rebound following the panic caused by the tragic events of September ll'h, 2001, the world markets have been very severely hit by the deterioration of the economic outlook in a number of region and particularly across all areas of the Technology sector.

The rebound that everybody was looking for in enterprise spending didn't not materialize and the prolonged crisis of the Telecom industry deepened furthermore.

The price dislocation in the Technology sector, that had been already very acute in 2001, was accentuated in 2002 and reached every sub-sector of the group, some of thein being literally decimated.

Our portfolio was positioned in the three main sectors of Technology to take advantage of the expected turn in technology spending and of the bottoming of the telecom crisis : Semiconductors. Software, Telecom Services & Equipment. All three have suffered from disappointing results, continuous downward estimates revisions and P/E contraction.

As a result the performance for the year has been a dismal - 42,26%, to be compared with -28.75% for the Nasdaq 100 index and -52.66% for the ITCACSO index.

The 8% drop of the US dollar relative to the Euro has also accentuated the poor performance.

Now that the valuation have come back to a much more reasonable level in the different technology sectors. we remain of the view that value and opportunities are emerging in the market and might provide a good returns for long term investors. The fund will make every effort to pursue such opportunities while balancing the volatility of the financial markets with cautionary instruments andor company stocks. Cash and related instruments may also be of practical use to protect client's assets.

At the time of this report the 5 main positions of the fund were : Audika, Accenture, Amgen. Nokia and Advanced Micro Devices.

Lwembourg. October 22.2002 'lhe figurcs statcd in this report are historical and not necessarily indicative of future performance.

Page 9

Luxcellence Prime International Technologies Financial Statements at 30/09/02

Statement of net assets at 30/09/02 Expre.wtd in 61 IR

Assets Securities portfolio at market value

Cost price Unrealised depreciation or1 /he secirrities porrfolin

Cash at banks and liquidities Formation expenses

Liabilities Other liabilities

Net asset value

Note 2

Note 2

Note 7

Capitalisation shares

Total Net Assets

231,436.0

1496 17.00 413.446-17

-263,829.47

75.607.51 6.2 I 1.49

2,451.59

2.451.59

228,984.41

Changes in the Number of Shares Outstanding from 01/10/01 to 30/09/02

Shares Shares outstanding at Shares issued Shares redeemed outstanding at

O1110101 30109/02

Chpitalisation shares

Number of sliarcs Net asset value per share

1.I44.1.50 0.000 0.000 I .144. 150

Key figures relating to the last 3 years

)ear ending at: 30109102 30109101 30109100

EUR 228,984.41 396.576.10

1.144.150 I .114.150 200.13 346.61

'The accoiiipmyinp uotes forni an intcgral pait of these financial statements

Page IO

Luxcellence Prime International Technologies Securities portfolio at 30/09/02

Expresscd in E UR

Qimitity Denominatim Quotation cwencv

Transferable securities admitted to an official stock exchange listing Shares

Bermuda

Finland

France 1.000 ARCHOS NOM

800 A U D I M SA

1,000 ACCENTIJRRE LTD -A.

1.000 NOK14

Israel

The Netherlands

United Kingdom

United Stotes of America

500 TIIEECK POINT SOFTWARE TECHNOLOGIES

500 STMICROELECTRONICS NV

700 VODAFONE GROUP SP.ADR REPR.10 SHS

2.000 ADVANCED MICRO DEVICES INC 300 AMCiEN 100 CITIGROLP rNC

500 GENZYMF COW. COM. 900 JUNIPER NETWORKS INC 500 SIEBEL SYSTEMS INC 3.51 SKYWORKS SOLUTIONS INC

I .om CONESANT SYSTEMS

1.000 SOLECTRON 1.000 'IELLhBS INC

700 TEXAS INSTRIJhlENTS INC 27 TR4.4VELERS PROPERTY 43- 13 TRAVELERS PROPERTY CASUALTY COW -A-

Total securities portfolio

USD

EUR

EUR EUR

IJSD

EUR

USD

USD USD IJSD USD LJSD USD U SD USD USD USD USD IJSD usn

119.617.00

149,617.00

I-i.46Y. 78 14469.78

I-I. 5 I o. ou 14.5 10.00

173.38u.o(1 5.100.00

I x.2xn.w ?, 2h0.46 7.260.46

7.fYS.UO 7.495.00

9,32 7. j h 9.527.50

7?,974.?0 11.739.44 12.884.75 8.902.75 I .ox3.96

10.57358 4.316.39 3 3 2 . 7 7 1.712.1 1 2.308.81 4.560.79

I 1.1 52.47

175.4s 370.80

149,617.00

65.34°,b

65.34%

6.32% 6.32".

h,34% 6.34%

I0._71'%; 1710,&

7.98%

3. I?& 3 . I79,b

3.27% 3.17%

-1./h?& 4.16%

31.8?% 5.13% 5.6396 1.X94i

4,629.b 1 . 89X 1.44% 0.75?,0 0.96'0 1.9906 4.87% o. 169b 0.08OO

o.470,b

65.34%

The accotnpruiying notes form ail ititegal part of these tiniincial statements

Page 1 1

Luxcellence Prime International Technologies Statement of Operations and Changes in Net Assets from 01/10/01 to 30/09/02

Expressed in EI X

Income Net dividends Bank interest on cash account

Expenses Amortisation of formation expenses Management & advisory fees Custodian & sub-custodian fees Taxe d'abonnement Administrative expenses Domiciliation fees Professional fees Bank interest on overdrafts Legal fees Other expenses

Net loss from investments Net realised loss on sales of investment securities Net realised loss on foreign exchange

Net realised loss Movement in net unrealised appreciation / depreciation on investments


Decrease in net assets


Net assets at the end of the yea r

Note 2 Note 2

Note 2 Note 4

Note 3

753.07 748.75

4.32

41 , I 93.91 1.999.80 5.933.49

395.56 I (1 5 .os

24.000.00 1.500.00 1.526.18

664.78 2.476.00 2.503.02

-40,440.84 -727.852.75

-5.365.77

-2737659.36 106.067.67

-167.591.69

Note 7

-167391.69

396,576.10

228.981.41

. ... -. ... . . .. .

Luxcellence Prime France Up

Page 13

....

Luxcellence Prime France Up

Manager's Report

Prime France UP - 2002

After a quick rebound following the panic caused by the tragic events of September Il lh, 2001. the world markets have been very severely hit by the deterioration of the economic outlook in a number of regions and in several industries over the past year.

The rebound that everybody was looking for in enterprise spending didn't not materialize and the prolonged crisis of the Telecom industry deepened furthermore. The bankruptcies of several formerly highly regarded company like Enron or Worldcom, followed by a series of scandals and the uncovering of accounting irregularities, has put a tremendous pressure on the equity markets around the world.

The price dislocation that had been already very acute in the Technology sectors reached almost every sub- sectors of the market. even the most defensive ones, some of them being literally decimated. The loss of confidence in the market from investors has sparked very severe sell-off on companies that were formerly considered as defensive "blue-chips"

Our portfolio particularly suffered from it's exposure to technology and to some special situations like France Telecom and Vivendi Universal.

As a result the performance for the year has been a dismal - 41,56%. to be compared with -31.91% for the CAC40 index and -52.66% for the ITCACSO index.

The 8% drop of the US dollar relative to the Euro has also accentuated the poor performance.

Now that the valuations have come back to very reasonable levels across a lot of sectors and that some areas of the market are appearing as cheaply valued in the face of a possible recovery of the world economies. we remain of the view that value and opportunities are emerging in the market and might provide a good returns for long term investors. The fund will make every effort to pursue such opportunities while balancing the volatility of the financial markets with cautionary instruments andlor company stocks. Cash and related instruments may also be of practical use to protect client's assets.

At the time of this report the 6 main positions of the fund were : LVMH, Pinault Primptemps Redoute. L'Oreal, Hemes International, Vivendi Universal et Walt Disney .

Luxcmbourg. October 22.2002 The figures statcd in this report are historical and riot necessarily indicative of future perfomiance.

Page 14

. ..

Luxcellence Prime France U p Financial Statements at 30/09/02

Statement of net assets at 30/09/02 Expruwri in E l iR

Assets

Securities portfolio at market value Closr price Unrealised depreciation on the seciirities portfolio

Cash at banks and liquidities Formation expenses

Liabilities Bank overdrafts Other liabilities

Net asset value


Total Net Assets

Note 2

Note 2

Note 7

483,632.07

436.852.80 889,733.38

-452.379.68 40,567.78 6.2 I I .49

4,523.69

1.598.70 7,924.99

479,108.38



0 I! I 0101 30109102


Number of shares Net asset value per share

I .360.434 0.000 0.000 I .360.134


Year ending at: 3O/OYlO2

FLJR 479.108.38

I .360.434 352.17

30/09/01

8 19.874.06

1.360.434 602.66

30/09/00

Luxcellence Prime France U p Securities portfolio at 30/09/02

L.rpressed in I: I 'K

Market value O 0 uf net Qtwtation currency a s w s

Quantity Denommiition


France 1.028 AKCHOS NOM. 1.800 AKA

500 BNP P.4RIBAS 700 BOUYGIJES

1.500 FRANCE TELECOM 200 H E W S INTERNATIONAL SA 500 I.'OKEAL SA

1,000 L V MOET HENN.LOUIS V U I I . 4.000 ORANGE

550 PINAUI.T-PRINTEMI'S REDOUTE SA 1.000 THOMSON MULTIMEDIA 1.000 VIVENDI ENVIRONNEMENT 2.000 VIVENDI UNIVERSAL

1.500 FLEXTRONICS INTERNATIONAL LTD Singapore

The Netherlands

United States of America 600 STMICROELECTRONICS Nv

1,000 AOI. TJME WARNER 700 BEST BUY CO IN(- 300 GDLDMAN SACHS GROUP 500 INTEL C O W 500 (2 LOGIC 800 SIEBEL SYSTEMS MC

1.300 'TEXAS INSTRUMENTS PIC 1.500 WALT DISNEY CO (HO1,DrNG CO)


Em EIJR EUR EUR FUR EUR EIJR EUR EUR EUR EUR Em EUR

USD

EUR

USD USD USD llSD liSD USD USD USD

436.852.XO

436,852.80

196.533.30 5.242.80

19.782.00 18.450.00 18,081.W 11.835.00 26.200.00 38.000.00 .38.400.00 20,040.00 37.152.50 16,860.00 20.460.00 26.020.00

I I. 044.0: 1 1 .044.07

s, 994.00 8,991.00

1-70.-7Y1.43 12.393.90 16.993.56 20.287.35

7.475.20 13.784.64 5.268.43

20,711.73 23,376.62

436,852.80

91 ,1 8O,b

91.18%

h1.89% I .09% 4.13% 3.85% 3.774i

5.47% 7.930; 8.0100 1.1 89," 7.75O,b 3.52O.o 4.27% 5.430.

2.31?4 2.3 1'0

l.S8% I .88?0

.?J.II!% 1,5990 3.55% 4.2396 I .56% Z.XX% 1 , I 0"b 1.320k J.88~0

?.47?'0

91.18%

The xcompmying nutes hrni im integral part uf these fiiiancial statements

Page 16

Luxcellence Prime France U p Statement of Operations and Changes in Net Assets from 01/10/01 to 30/09/02

Expressed in EIJR



Net loss from investments Net realised loss on sales of investment Net realised loss on foreign exchange

Net realised loss

ecuritif

Movement in net unrealised appreciation / depreciation on investments


Decrease in net assets



Note 2 Note 2

Note 2 Note 4

Note 3

6,253.00 6.1 11.76

141.24

49,495 19 I .999.80

12. I 84.24 81 2.27 104.72

24.000.00 1.500.00 3.122.22

363.97 2.5 15.20 2.592.77

-43,212.19 -333.798.40

-4.006.20

-1 81,046.79 -159.71 8.89

Note 7

-340,765.68

-340.76S.68

819,874.06

479,108.38

The nccolupauying iiotcs form mi integral part of these financial statements

Page 17

Luxcellence Genesis Fund

Luxcellence Genesis Fund

Manager's Report

We started the management of the Fund in November 2001 during one of the most terrible bear markets of the last sixty years and after the horrible events of September 1 1. The Fund declined -34.89% during the 1 1 months ended September 30,2002.

The major market indices experienced a free fall immediately following the terrorist attacks and bounced back strongly at year-end on hopes for a turn-around in the economy and company profits in 2002. Despite rising unemployment, consumers continued to spend, particularly on homes and cars as the Federal Reserve kept interest rates at a 40-years low of 1.75%. The housing market helped the economy to avoid a worst slowdown.

By April, however, lackluster corporate earnings and mixed economic data led many to question the strength of the rebound. That negative sentiment was magnified as one high-profile company after another found itself the target of government accounting probes and consumer confidence stumbled. All major equity benchmarks ended the period deep in the red dropping to new lows not seen since 1998.

The real issue is whether we are in a period heading towards a deflationary environment or whether we are at a close to the bottom of a bear market within the context of a normal investment cycle. We believe this is a once-in-30 year phenomenon. The issue is to isolate the structural from the cyclical.

We believe markets are ignoring basic economics. We have very stimulatory monetary policies in the US and the UK and historic low interest rates worldwide. And regardless of reported earnings, operating profits are showing signs of broadly recovering. The corporate sector has slashed capital spending, reduced inventory and the free cash flow position around the world is rising. Despite the economic slowdown employment in the US and UK remains high.

More and more, our conviction may set us apart from much of the investing community in that the market has become so focused on the short term that few long-term shareholders exist. For these reasons last summer we increased our equity allocation to play a rebound in the 4'h quarter and beginning of 2003. We have diversified into different industries in what we believe are good companies that we want to own for the long haul. Our goal remains to build a portfolio of the best businesses and best management teams, because those are the companies that we believe will thrive in the long run.

Thank you for your investment in the Luxcellence Genesis Fund.

Luxenibonrg. October 22.2002 'Ihe figures statcd in this report are historical and not necessarily indicative of futiire perfornimice.

Page 19

Luxcellence Genesis Fund Financial Statements at 30/09/02

Statement of net assets at 30/09/02 Exprcsscd inLUl<


C’mt price linrealised depreciation on the seciirities por@io

Cash at banks and liquidities Time Deposits Interest receivable Formation expenses Other assets


Net asset value

Note 2

Note 2

Note 7


32,805,422.55

31.795.484.35 47.897.330.41

-1 6,101 I 746.06

5 1 1.989.7 1 366.000.00 66.68 I .os

8.205.73 57.061.71

54431.39

54.431.39

32,7SOi0.992.16



os/ 1 110 1 30/09102

Total Net Assets



0.000 503,028.132 0.000 303.028.132


Year- eliding at: 30/09/02 30109/01

Em 32.750.991.16

503.028.132 65.11

30/09/00

The accompanying notes form BU integral pat of these finmicia1 statemetits

Page 20

Luxcellence Genesis Fund Securities portfolio at 30/09/02

Expressed in EI Ut 9.0 of net

Market value assets Quotation curreiicv Vumtitv Denomination


Belgium

Finland 15.000 FORTIS

80.000 NOKIA 6.000 UPhl 6tMENNE COW'

France 3.000 AVENTIS

20.000 A . U 5.000 CARREFOlJR 5.000 CIE SAINT WBAIN 2.000 DASSAULT SYSTEMES 3.500 PWAULT-PIUNTEMPS REDOIJTE SA 2.000 SANOFI SY"LAJ3O

1.500 VrNCI 6.000 VIVENDI ENVIRONNEhlENT

16.000 SUEZ (EX SUEZ LYONN4ISE DES EAUN)

33.000 VIVENDI UNIVERSAL

Germany 6.600 ALLIANZ .AG NAMEN VlNKULlERT

25.000 BAYER AG 15.000 DEUTSCHE TELEKOM NAbEN

11.082 DYCKERHOFF AG VORZIJG OHNE STIMMRECHT . 1.500 MIENCHENER RUECKVERSICHERUNGS N , W N

3,000 DYCERHOFF AG

5.000 S A P AG

Ireland

Italy 150.000 ELAN CORP PLC ADR

50,000 ALLEANZA ASSICIJRAZ.AZ. 70.000 ASSICURAZIONI GENERUI 20.000 !\STALDI SPA

I20.000 BANCA NAZIONALE DEI. LAVORO SPA 2.000 DATA SERVICE SPA

20.000 ERG

50.000 GEWISS 3.000 EUPHON SPA

100.000 Glh4 GENERAM LNDUSTRLE hETALLl.RGICHE 60.000 GRUPPU CERAMICHE RICCHEITI

8.000 GRIJPPO COIN 105.000 INTESABCI SP.4. MILAN0 11 .000 I'IALCEMENTI AZ DI RISP NON CONV ' 6.000 LOTTOtvLATlCA

5.000 LUSOTTICA G R O W 20.000 hlEDlOBiZNCA 40.000 MILANO ASSICUMZIONI 75.000 OLCESE SPA 10.000 PlRELLl C AZ

1 X0.000 I'IKELLI SPA (ORD) 10.000 SAES GETTERS

' 250.000 SlRTT 200.000 SMI METALI.URGICA ITALLIANA SPA 27.000 SNIA AZlONE DI RISP. / NON C O W

300.000 TELECOM I'fhLIA A.TDI RISP.NON CONV. 135.000 TELECOh4 ITALIA MOBILE SPA

Singapore

Spain

Switzerland

25,000 FLESTRONICS INrERNATIONAL 1.m

30,000 TELEFONICA SA

2.500 ClE SIJISSE REXSSUFLZNCE REG 30.000 CS GROlJP NAMEN-AKI 3,500 ROCHE HOLDING GENIJSSSCHEM 1.300 ZIJRICH FINANCIAL SERVICES NAMEN-NCT

The Netherlands 30,000 .AEGON NV

EUR

EUR E m

EUR EUR EUR EUR EUR EUR EUR EIJR EUR EUR EUR

EUR EUR EUR EUR EUR EUR E m

USD

EIJR EUR EUR El JR EUR EUR EUR EUR EUR EUR EUR EUR ElJR EUR EIJR EUR EUR EUR EUR EIJR EUR EUR EUR EIJR EUR Em

USD

EUR

CHF CHF CHF CHF

ElJR 10.000 MG CROEP NV CERT OF SFIS EUR

The accoinpnuying notes fonn an integral part of these financial statetnetits

Page 21

3 1.795,484.35

28,535,356.45

235,fi.W. 00 235.650.00

1.331i.l(i0.111~ 1.160.000.00

176.160.00 103- ~. - -, '.,8.).Ol~

167.550.00 2 19.800.00 112.600.00 119,350.00 34000.00

136,425.00 118.000.00 284.320.00 93.450.00

122.760.00 429.330.00

I . 7.53.3?3.3 602.250.00 388.250.00 1J0.250.00 27,300.00 84.21 0.36

174.765.00 235.300.00

31 1,3(YI.j: 311.381.52

J, 4'4. <x95. 00 321 .000.00

1.090.600.00 45.500.00

145.200.00 57,400.00 71,200.00 19.770.00

100.500.00 82.900.00 31 .000.00 49.600.00

193.200.00 5?.800.00 42 .600 .W 69.900.00

141 ,600.00 77,600.00 21.075.00. 56.040.00

161.160.00 77.900.00

151.250.00 92.600.00 70,?00.00

1.545.000.00 567 .000 .OO

184, n(r 7. SY 184.067.89

2.Z!1.400. 00 239.400.00

I , 133,864. os 149.1 54.5 1 61 8.778.1 5 239.840.36 176,090.96

906.1110.00 31 1.100.00 154,300 00

97.080/0

87.13%

0.7_7!% 0.71% 4. ofwo 3.5446 0.54%

6.22% 0.51% 0.679." 0.659.b 0.36% 0.1 09,b 0.7200 0.3696 0.87Ob 0.29"i 0.37'0 1.31%

j.3.W; I .84?/. 1.49% 0.439,b 0.084b

. 0.264.b 0.53';" 0.7200

0. Yj'% 0.95%

16.56% 0,9896 3.33% 0.14% 0.44% 0.1 846 0.2290 0.0640 0.319.b 0.25% 0.06% 0.15% 0.59% 0.161 0.13'6 0.21% 0.43% 0.2490 0.069b 0.1 7% 0.499,b 0.24% 0.77% 0.28% 0.21% 1.72"" 1.739.0

O . j l r % 0.5606

0.73'4 0.73"o

3..ilr% 0.46% 1.89% 0.73% 0.38%

I. 7 T!J&

0.9S40 0.479'"

... ..


klxnressrd in E l IR

Market valw "22;' Quotation curreucy Quantity Dcnoniination

5.000 ROYAL DIJTCH PETRO1,EIJM CO 5.000 STMICROELECTRONICS NV

10.000 STMlCROELECTRONICS NV

United Kingdom 8.000 GLA?(OShllTHI(LINE PLC

200.000 VODAFONE GROW' PLT

United States of America 13,228 AGERE SYSTEMS INC -B- WHEN ISSUED

539 AGERE SYSTIJME -A- 2.000 ALCOA 4.000 AMERICAN INTEKN.VI'L GKOUP

10.000 AMGEN 20.000 AOL TIME WARNER 10.000 APPLIED MATERIALS INC 15.000 AT T CORPORATION 4.000 AIJTOMATIC DATA PROCESSING INC

15.000 BIOGEN WC 24.000 BRISTOL MYERS SQUIBB CO 48.000 CISCO SYSTEMS 15.000 CITIGROIP INC 14.500 DELL COMPUTER CORP 30.000 EMC CORP 8.000 FORD MOTOR WI

25,000 GENENTECH TNC 14.000 GENER4L ELECTRIC CO 10.000 GOLDMAN SACHS GROUP 9.000 IRM CORP

54.000 INTEL CORP 5.000 LEHMAN BROTHERS HOLDINCiS INC 5.000 I JNEAR TECHNOLOGY CORL'

100,000 LIJCENT TECFINOLOGIES INC 6.000 MhYlM lNTEGR4TED PRODUCTS 1NC

10,000 MERCK AND CO INC. 10.000 MERRILL LYNCH CO INC 24.000 MICROSOFT CORP 15,000 MORGAN STANLEY 20.000 MOTOROLA 4.000 NVIDIA

79.000 ORACLE CORP 12.000 PFIZER INC 20.000 QUIZLCO~IM 1NC 10,000 SRC COhVWNICATIONS INC 10.000 SEMICONDUCTOR IIOLDRS BK LKD 31.12.40 WAR

132.500 SUN MICROSYSTEM 35,000 TEXAS INSTRUMENTS INC

1.331 TR4VELERS PROPERTY -8- 638 TRA\:ELEKS PROPERTY CASUALTY C O W -A-

I 5.000 TWO n"T\"mu 10.000 VFECO INSTRUMEN'I'S 10.000 VERITAS SOFTWARE CORPORATION (DE) 5.000 VERIZON COMhlIJNIC,4TIONS INT

100.000 WORLDCOM 4.000 Y.41100 I".-

Bonds

France 250.000 ALCATEL EMTN 7.00 01-06 07!12A 250.000 RHODIA 6.25 00-05 31105A

Luxembourg

Sweden

The Netherlands Antilles

United States of America

750.000 FIAT FINANCE TRADE 6.75 01-11 25/05A

250.000 TELEFON EIUCSSON 6 . m 01-06 3 ~ 0 5 ~

400.000 KEPSOL lNTL FINANCE 6.00 00-10 05/05A

5oo.000 AT & T REGD 6.00 01-06 2111 1 A

Units In Investment Funds United States of America

74.000 NASDAQ-IO0 TRIJST SERIES I

EUR EUR EUR

GBP GBP

USD IJSD USD U SD U SD USD IJSD IJSD USL) IJSD IJSD USD IJSD IJSD U SD USD USL) IJSD IJSD USD IJSD USD U SD USD USD USD USD IJSD USD IJSD IJSD LISD USD USD USD USD USD IJSD IJSD USD USD USD USD IJSD USD LJSD

EIJR EUR

FUR

EUR

EIJR

EIJR

IISD

216.250.00 74,950.00

119.500.00

44-1.3Jn'. 93 163.387.45 280.961.17

1.1, .i_7Y. 5 X hS 14.87!).cN

606.30 39.472.3.1

325.9 17.66 858.983.50 147.878.09 120.871 2 5 192,81 1.12 144.186.52 150,812.95 601.043.02 551.271.07 145.137.52 360,312.90 153.389.91 78.781.06

818.335.17 350.322.10 676.244.98 555.516.90 657.81 7.74 251201.51 110.338.48

156.764.49 473.053.48 338.480.40

1.156.815.57 5 19,37824 2 10.450.96 35.013.80

678.596.96 350.710.69 5X5.131.38 206.053.78 20451 9.88 361.770.10 557,623.45

18.279.30 8.746.9 I

221 .351.64 110.236.22 154.61 7.0.3 143.624.09 10.225.99 13.276.41

1,647,550.00

404.42.5.00 167.600.00 236,825.00

_7_7<YV.Y-'S. 00 228.825.00

I A?, 000.00 182.000.00

78.740.15

w , f i o o , no 364,600.00

46?.~00.00 ~(i7.7n0.00

1.6117.iT !IO i ,61 2.577.90

1,612,577.90

0.66Oi 0.230'0 0.46%

1.36?4

0.86% J4.36?4 0.05% 0.00% 0.1296 0.69%

0.50%

2.62% 0.760'0 0.37% 0.5906 0.44?" 1.389,b 1.84"i 1.68"~ 1.36% 1.10"b 0.47'0 0.24Ob 2.509~0 I .07% 2.069.b I. 709.; 2.014c 0.77% 0.34% 0,2496 0.489b

1.4406 1.03% 3.5340 1 .59% 0.6406 0.11% 1.07'6 1.07?/0 I . 79% 0.639.0 0.62O6 1 ,IO% 1.70% O.O6?b

0.03% 0.689b 0.33O.b o.47°0 0.44% 0.03'~ 0.13%

5.03%

123!% 0.5190 0.72%

0.70% 0.709a

O.j6?4 0 56%

1.11% I . l l ? b

I. 431% 1.430,o

4.92%

4. V-'% 4.929,0

The accotnpatiyinp iiotes fonn an integral pan of these fm.lticiaI slatenients

Page 22


Expressed in E l i R

Market valite '0 Of Quotation currency assets

Qilantity Denomination

Fractions 0.00 0.00".

Total securities portfolio 31,795,484.35 97.08%

Ttic accotnpaiiying notes funii an integral pan ofthesc titiaticial staternmts

Page 23

. . .. .. . . ~-

Luxcellence Genesis Fund Statement of Operations and Changes in Net Assets from 08/11/01 to 30/09/02

Expressed in E l J K

Income Net dividends Net interest on bonds Bank interest on cash account Bank interest on time deposits


Net income from investments Net realised loss on sales of investment securities Net realised loss on foreign exchange Net realised profit on forward foreign exchange contracts







Note 2

Note 2

Note 2 Note 4

Note 3

882,065.86 241 -658.61 31 1.847.17 28.358.13

300.20 I .95

265,176.79 1.79427

120.492.46 2Y .870.44 21.334.27 19.758.89 2.28S.89

39.252.72 1.6S8.28

24.830.94 3.S65.63

61 6,889.07 -2.206.887.33

- 1 S 1.025.92 823.761.64

~

-947,262.54 -16.101.746.06

-1 7,0~9,008.60 49.799.999.76

Note 7

. . . . .. . .. . . . . . - . . -. . . ..

Luxcellence GT Valeurs

Page 25

Luxcellence GT Valeurs

Manager's Report

Over the past 12 months. markets literally collapsed. For example, the French CAC 40 index declined 30%.

We started the period only 33% invested and gradually increased our exposure to 60%, as markets recovered after September 1 1.

We maintained a large cash position all through the period because we believe we are still overall in a bear market.

Performance for the past 12 months was -l0.84%, about a third of the French stock market decline, a result of a combination of under investment and active stock picking.

At the end of the period under review, the main assets are broken down as :

Stocks

Cash

52.93% (essentially French market)

37.95%

Convertible bonds 9.14% as per report

Currently main holdings are : France Telecom Total Fina Elf Air Liquide Vivendi Universal Gucci Group Suez Vivendi Environneinent B ouygue s SEB

I.uxembourg. October 22.2002 The figures statcd in this report are historical and not necessarily indicative of future perfomiance.

Page 24

Luxcellence GT Valeurs Financial Statements at 30/09/02

Statement of net assets at 30/09/02 E x p ~ e . ~ , w d in E:llR

Assets

Securities portfolio at market value Cost price Unrealised depreciation 011 the seciirities portfolio

Cash at banks and liquidities Formation expenses Other assets


Net asset value

Note 2

Note 2

Note 7

6,785,618.95

4.204.923.76 S.OW.IY9. cy8

-S94,j?d. 12 2.539. I8 1.71

7.672.45 33.841.03

94,378.05

04.378.05

6,691 ,240.90



01 I1 u101 30109102


Total Net Assets



25.3 80.000 23.5 80.000 0.000 48.960.000


Year erufirig at: 30109102 30109101

EUR 6.691 240.00 3.890.446.86

25.3 80.000 18.960.000 136.67 153.29

Tlic accoiiipaiiyitig notes fumi an integral part of these fiiiaiicial stateiiieiits

Page 27

Luxcellence GT Valeurs Securities portfolio at 30/09/02

Lxpressed in Lil lit

Quantity Denotllitiatioti Quotation CUlTellCV


France 1.400 ?\(?COR SA 2.000 AGF 1,625 .UR LIQlJIDE 5.000 BOUYGUES 1 SO0 CARREFOUR 2,500 CHRISTIAN DlOK S.4 3.000 CIE SAINT GOBAW 2,500 CLUB MEDITERRANEE CR SICOVAM 8.000 CREDIT AGRICOLE SA 3.750 CREDIT LYONNAIS

12.000 ELIOR 209 EURAZEO 500 GALERE LAFAYETTE

2.000 GRANDVISION S.4) NOM. 800 GROUPE DANONE

8,000 IIAVAS 1.500 L'OREAL SA 2.200 L A G M E R E GROUPE SCA NOM 1.000 MECATHERM 1.500 NEOPOST 3,000 NESANS

785 ORPEA 3.000 PENAUILLE POLYSERVICES 1.350 REMY COINTREAU SA 4.000 RHODIA 5.000 SCOR SA 2.000 SER SA 1,850 SCXYETE DES .4UTOROlJTES DU SUD DE L/Z FR4. 3.750 SODEXHO ALLlANCE

10.500 SIJEZ (EX SUEZ LYONNAISE DES EAUX) 2.000 THALES 3.200 TOTAL FlNA ELF 1.000 VALLOUREC 5.600 VIVENDI ENVIRONNEMENT

15,000 VIVENDI UNIVERSAL 51 WORMS ET CTE NOM.

Italy

The Netherlands 120,000 m r ~ c OLIVTTTI

4.000 EQUANT NV SHS 2.000 GUCCT GROUP Nv

Convcrtlblc bonds France

800 FRANCE TELECOM CV 2.00 98-04 01/01.4

Units In Investment Funds Luxembourg

15,000 ASIA PACIFIC PERFORMANCE REG

Options, Warrants, Rights France

5.000 FRANCE TELECOM CVG 3.000 VNENDl ENVIRONNEMENT 08.03.06 WAR

21.06.0.1 WAR


EUR E1 JR EUR EUR EUR EUR EUK EUR ELJR EUR EUR EUR EIJR EUR E m EUR EUR EUK EUR EUR EUR EUR PUR EIJR EUR EIJR EUR EUR E m EUR EUR ElJR EUR El JR EUR EUR

EUR

EUR EUR

EUR

USD

ElJR EIJR

-l.204,923.76

3,372,521.30

3.075.i(i1.30 43.876.00 56.000.00

214,825.00 129.1 50.00 63.780.00 74.775.00 71.610.00 60.000.00

135.760.00 135.525.00 59.040.00

8.819.80 57.500.00 34,760.00 98.800.00 28.480.00

I14.000.00 88.000.00 26.000.00 51.975.00 36,840.00

8,949.00 14.850.00 37.800.00 27,120.00 51.000.00

167.400.00 49.950.00 74.062.50

186.585.00 59.680.00

457.680.00 50.650.00

114.576.00 195.1 50.00

793.00

110.760.00 110,760.00

lt16.000.00 11.000.00

175,000.00

611,560.00

f i I I . 560.00 6 I 1.560.00

169.342.46

I 6 r1.342.46 169,342.46

51,500.UO

3 1.500. W 51.200.00

300.00

4,204,923.76

62.84%

W40%

43.9 7% 0.66% 0.84% 3,?1?'0 1.93% 0.95% 1 .12% I .07?'0 0.909C 2.03% 2.03"b 0.88?/0 0.13"'. 0.864b 0.524'0 1.489'0 O.43Ob I .70?/0 1.32'b 0.399,b 0.7% 0.55%

0.22'4 0.5694 0.4106 0.76% 2.50% 0.75OG 1.11% 2.79%

6.69'6 0 . 7 6 1

0.13?0

0.89%

1.71°b 2.92?0 0.01?"

1.66% 1.66%

1. 7<s'%;

0.16% 2.62%

9.14%

y.11% 9.14%

2.53%

3 3 % 2.53%

0.77%

0.7?4 0.77"6 0.00?'0

62.84%

.. ...

Luxcellence GT Valeurs Statement of Operations and Changes in Net Assets from 01/10/01 to 30/09/02

Lxprexved in EI lK


Expenses Amortisation of formation expenses Management & advisory fees Custodian & sub-custodian fees Taxe d'abonnement Administrative expenses Incentive and performance fees Domiciliation fees Professional fees Bank interest on overdrafts Legal fees Other expenses

Net income from investments Net realised loss on sales of investment securities Net realised loss on foreign exchange







Note 2 Note 2

Note 2 Note 4

Note 3

Note 4

Note 7

139,670.25 62.757.32 76.9 12.93

I 19365.79

1.999.80 35.229.25

8.779.86 1.785.49

16.003.68 15.899.67 3.527.78

21.733.45 2.815.81 7.495.32 3.095.68

20,304.46

- 161.724.62 -3.075.93

-144,496.09 -95 1.776.47

-1,096,27256 3.897.066.60

2,800,794.04

3,890,446.86

6,691,240.90

The accompanying notes fomi ;VI integral part of these fmancial statetnents

Page 29

- .- . . .. . . . .. . .. ...

Luxcellence Global Wealth Management Fund

Page 30

Luxcellence Global Wealth Management Fund

Manager's Report

We started the management of the Fund in August 2002 during one of the most terrible bear markets of the last sixty years. The major market indices experienced a strong rebound in August after having fall to new lows in July, levels not seen from 1998.

We started to position this conservative fund very slowly in the market not being convinced of the August rebound. This has proven to be right because in September the markets gave back all August gains retesting the July lows.

The real issue is whether we are in a period heading towards a deflationary environment or whether we are at a close to the bottom of a bear market within the context of a normal investment cycle. We believe this is a once-in-30 year phenomenon. The issue is to isolate the structural fiom the cyclical.

We believe markets are ignoring basic economics. We have very stimulatory monetary policies in the US and the UK and historic low interest rates worldwide. And regardless of reported earnings, operating profits are showing signs of broadly recovering. The corporate sector has slashed capital spending, reduced inventory and the free cash flow position around the world is rising. Despite the economic slowdown employment in the US and UK remains high.

More and more. our conviction may set us apart from much of the investing community in that the market has become so focused on the short term that few long-term shareholders exist.

For these reasons we are planning to increase slowly our equity allocation in the next months to play a rebound in the 4"' quarter and beginning of 2003.

Our goal remains to build a portfolio of the best businesses and best management teams, because those are the companies that we believe will thrive in the long run.

Thank you for your investment in the Luxcellence Global Wealth Management Fund.

I,~ixembourg. October 22.2002 The figures stated in this report are historical and not necessarily indicative of futurc performaiice.

Page 31

Luxcellence Global Wealth Management Fund Financial Statements at 30/09/02

Statement of net assets at 30/09/02 Expressed iti E l iR


Cost price Unremlised depreciation on the secirrities jiortfolio

Cash at banks and liquidities Time Deposits Interest receivable Formation expenses Unrealised appreciation on forward foreign exchange contracts Other assets

Liabilities Unrealised net depreciation on financial futures Other liabilities

Net asset value

Note 2

Note 2 Note 3

Note 0

Note 7


Total Net Assets

3,653,361.2s

1352.1 12.75 1,561 I 325.73

- 9.21 J. 98

419.200.13 1.600.000.00

2 1.930.73 9.666.70

179.94 50.271.00

34,815.01

24.909.38 9.905.63

3,618,546.21



2s107/02 30/09/02



0.000 37.009.659 0.000 37.00Y.659


Ppriod ending at: 30109102 30/09/01

EUR 3.618.546.24

37.009.659 97.77

30/09/00

Luxcellence Global Wealth Management Fund Securities portfolio at 30/09/02

Expressed in EI JI<

Qimtity Detiomitiation Quotation Market valiie o ' ~ s ~ ~ s e t currency


United States of America 1,000 ESSON MOBIL 1.200 GENERAL ELECTRIC CO

Bonds Austn'a

Noway 367,000 AUSTRIA 3.40 98-04 20/104

700.000 NORWAY S.75 93-04 3011 1.4

Floating rate bonds Germany

Units in investment Funds Germany

United States of America

867.000 KRED..ANST.WIEDER4UFB.FL.R 02-05 OliORQ

2.300 DOW JONES EURO STOXX 50 EX

4.600 ISHARES MSCI JAPAN INDEX FlTND 1.600 NASD.4Q-100 'I'RIJST SERlES I

430 SPDR TRUST [WIT SERE 1


usn USD

EUR

NOR

EUR

EUR

USD USD U SD

1.552.1 12.75

63389.32

63,589.32 33361.71 30.027.61

463.1 60.10

368,4(iN.(iO 368.468.00

94.692, IO 94.692.10

865.872.90

865. R72.W X65.872.90

159,490.43

33.4 7j. 00 53.475.00

106,(iI3.43 34.762.24 34.866.55 36.386.61

1,552,112.75

32.89%

1.76%

1.76% 0 . 9 3 O i 0.8306

12.80%

10.18% 10.18?"

3.62% 7.6796

23.Y3%

_. ?? . 9304 23.934'.

4a1%

I . 4R!% 1.48%

2, 93%

0.96% 1.019.b

0.96''o

42.89%

The accompanying notes form illl iotegial tian of thew financial stiltements

Page 33

Luxcellence Global Wealth Management Fund Statement of Operations and Changes in Net Assets froin 25/07/02 to 30/09/02

L~presserl in E[IR

Income Net dividends Net interest on bonds Bank interest on cash account Bank interest on time deposits

Expenses Amortisation of formation expenses Management & advisory fees Custodian & sub-custodian fees Taxe d'abonnement Administrative expenses Professional fees Bank interest on overdrafts Legal fees

Net loss from investments Net realised loss on sales of investment securities Net realised loss on financial futures Net realised loss on foreign exchange

Note 2

Note 2

Note 2 Note 4

Note 3

Net realised loss Movement in net unrealised appreciation / depreciation on forward foreign exchange contracts Movement in net unrealised appreciation / depreciation on futures Movement in net unrealised appreciation / depreciation on investments

Note5

Note 6

20,090.61 269.S2

4.538. I3 2.04 1 .so

13.24 1. I6

31,163.31 333.30

6.069.5 1 533.86 417.28

3.666.65 1.659. I5

0.02 18,153.54

-1 1,072.70 -4.897.56

-28.134.41 -3.364.94

-47,469.61 179.94

-24.909.38 -9.215.98

Decrease in net assets as a result of operations Subscription capitalisation shares

-81 ,41503 3,699.96 I .27


Net assets at the beginning of the period

Net assets at the end of the period Note 7

3,618,546.24

0.00

3,618,.546.24

The acconipanvitig notes fonn aii integral part of thew financial statements

Page 34

. .. .. .. .

Luxcellence Notes to the financial statements

Page 35

Luxcellence

Notes to the Financial Statements at September 30, 2002

1. General

Luxcellence is a Luxembourg Umbrella 'SociktC d'hvestissement a Capital Variable" (SICAV), created on June 12, 1998 under the law of March 30, 1988 Part I relating to Undertakings on Collective Investment and the law of August 10, 1915 on Commercial Companies. The SICAV is registered at the Luxembourg Register of Commerce under the number B 64.695.

The SICAV has several sub-funds. However as at September 30, 2002 only Luxcellence-Prime International Technologies, Luxcellence-Prime France Up, Luxcellence Genesis Fund, Luxcellence-GT Valeurs and Luxcellence Global Wealth Management Fund were active.

The sub-funds Luxcellence-Prime International Technologies, Luxcellence-Prime France Up and Luxcellence-GT Valeurs are valued in Euro but the consolidation currency is the USD. The launch date for the first and second sub-funds was respectively, November 2, 2000 and July 19, 2001. Being the dates on which shares where issued and payments made. The sub-funds Luxcellence Genesis Fund and Luxcellence Global Wealth Management Fund were launched respectively in November 8, 2001 and in July 25, 2002 and are also valued in Euro.

The shares available for the sub-funds are capitalisation shares only.

2. Summary of sieificant accounting policies

1. Presentation of Financial Statements

The Financial Statements are prepared in accordance with Luxembourg regulations relating to undertakings for col I ec t ive investment.

2. Valuation of investments

Securities listed on an official stock exchange or traded on any other regulated market are valued at the latest available price.

As investment principles, every time such prices are not representative of the fair value of the relevant securities and in case of unquoted or not regularly traded securities, the used value is their respective reasonable foreseeable sales price as determined prudently and in good faith by the Board of Directors in accordance with generally accepted valuation principles.

Money market instruments are valued based on the last available official quotation. In case of a short-term discount instrument, its value based on the net acquisition cost, is gradually adjusted to the redetnption price thereof.

3. Realised Drofit and loss on sales of investments

The profit and loss on sales of investments have been determined on the basis of average cost.

Page 36

Luxcellence

Notes to the Financial Statements at September 30,2002 (continued)

4. Foreign exchanFe

The Financial Statements of each sub-fund are maintained in EUR.

The market value of investments and other assets and liabilities expressed in other currencies than EUR. have been converted at the exchange rates ruling at the year-end date. The costs of investments expressed in other currencies than EUR have been converted at the exchange rates ruling on the date of acquisition.

Transactions during the year expressed in other currencies than EUR are converted in EUR at the exchange rates ruling on the transaction date. Unrealised exchange gains/losses arising on the valuation of the securities portfolio at market value are included in unrealised net appreciatioddepreciation on investment securities. Other exchange gains/losses are directly taken into the statement of operations and 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 i s accrued on each valuation day.

6. Formation expenses

The formation expenses are amortised over a period of 5 years.

7. Forward foreipn exchanpe Contracts

The SICAV is authorised to enter into forward foreign exchange contracts for the purchase of a specific currency at a fixed price on a hture date as a hedge or cross-hedge against either specific transactions or portfolio positions. All commitments are marked-to-market at the applicable translation rates and any unrealised appreciation or depreciation are recorded in the Financial Statements. Realised profits or losses are recorded at the time the forward foreign exchange contracts are offset by entering into a closing transaction or matured by delivery of the currency.

8. Futures contracts

Unexpired futures contracts are valued at their last known price on the date of valuation or on the closing date and unrealised results resulting from them are recorded in the accounts.

9. Consolidated Financial Statements

The SICAV’s designated currency is the USD. The consolidated statement of net assets and statement of operations and changes in net assets represent the total of the statement of net assets and the statement of operations and changes in net assets of the individual sub-funds translated in USD at the exchange rates prevailing at year-end.

At September 30, 2002, the following exchange rate is used

1 EUR = 0.9779 USD

Page 37

Luxcellence

Notes to the Financial Statements at September 30, 2002 (continued)

3. Tax status 1 The STCAV is registered under Luxembourg law as a inutual investment company (Societt d’lnvestissement a Capital Variable - SICAV). Accordingly, no Luxembourg income or capital gains tax is at present payable. However, it is subject to a ”taxe dabonnement” calculated at the annual rate of 0.05Y0, based on the net asset value of the SICAV at the end of each quarter (as from January lst, 2001 until December 31, 2001 this tax was 0.060/). This tax is payable quarterly.

4. Management and Advisorv fees I The SICAV pays an Advisory fee at the end of each month, which is calculated on the average net assets during the month.

The Investment Advisers is entitled to:

- 1.5 YO per annum, calculated on the average net asset value and payable monthly for the Luxcellence- Prime Intemational Technologies, plus a “performance fee” of no more than 10 YO of the overperfonnance over a threshold of 10 ?/o, calculated monthly, payable on a yearly basis, with “high- water-mark’’ basis.

- 1.5 YO. calculated on the average net asset value during the month and payable monthly for the Luxcellence-Prime France Up, plus a “perfonnance fee” of no more than 20 TO of the overperfonnance over a threshold of 10 oh, calculated monthly, payable on a quarterly basis, with “high-water-mark” basis.

- 0.5 YO per annum, calculated on the average net asset value and payable quartely for the Luxcellence- GT Valeurs, plus a “performance fee” of no more than 0.2 YO of the sub-fund net asset value payable on the last valuation day of each calendar year when the sub-fhd’s net asset value exceeds that of previous calendar year by 6 Oh with no “high-water-mark” principle applying.

- 1% per annum, calculated on the average net asset value and payable quartely for the Luxcellence Global Wealth Management Fund.

- 0.3% per annum, calculated on the average net asset value and payable quartely for the Luxcellence Genesis.

I 5. Forward Foreign Exchange Contracts 1 All commitments are valued on the basis of the forward foreign exchange rates prevailing at the relevant situation date for the remaining period to maturity, the following contract was outstanding at September 30, 2002 :

Luxcellence Global Wealth Management Fund: Amount Maturity Unrealised result

[EUR) Purchase EUR 187,474.33 I31 1 2/02 179.94 Sale USD 182.600.00

Page 38

.....

Luxcellence

Notes to the Financial Statements at September 30, 2002 (continued)

I 6. Open position on Future Contracts I As at September 30. 2002, the sub-fund Luxcellence Global Wealth Management Fund has the following open positions:

Number of Unrealised result Contracts Description Currency Commitment (EUR)

8 DJ EURO STOXX 50 DEC 02 EUR 182.960.00 ( 12.720.00) I NIKKEI 225 (CME) DEC 02 USD 47,050.00 357.9 1 3 NASDAQ 100 E-MINI FUTURE USD 5 1,690.00 (2,116.78)

5 EMINI S&P500 FUT DEC 02 USD 206,325.00 10,430.5 1) DEC 02

TOTAL (24,909.3 8)

I 7. Presentation of the net assets values in the financial statements I The financial statements are presented on the basis of the latest net asset value calculated during the financial year (period). In accordance with the prospectus, the net asset values were calculated using the latest market prices and exchange rates known at the time of calculation.

The stock market prices and exchange rates used to value the securities portfolios at the date of the report are these as at September 27,2002.

By way of information, if the SICAV had calculated the net asset values solely with a view to publication, the inarket prices and exchange rates used to value the investment portfolio would have been those of September 30.2002 for the entire investment portfolio. However, these net asset values would not have been significantly different from those shown in these financial statements, except for the following sub- funds :

- Luxcellence Prime International Technologies : a reduction in the net asset value of about 2.46% would have been observed:

- Luxcellence Prime France Up : a reduction in the net asset value of about 5.38% would have been observed:

- Luxcellence Genesis Fund: a reduction in the net asset value of about 3.48% would have been observed:

- Luxcellence GT Valeurs : a reduction in the net asset value of about 2.97% would have been observed.

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CREDIT AGRICOLE INDOSUEZ LUXEMBOURG

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