KITE FUND SICAV - Pharus Management Lux S.A.
Transcription
KITE FUND SICAV - Pharus Management Lux S.A.
KITE FUND SICAV Société d'Investissement à Capital Variable Unaudited Semi-Annual Report as at June 30, 2014 RCS Luxembourg B 171 354 KITE FUND SICAV TABLE OF CONTENTS DIRECTORS .................................................................................................................................................................................................................... AND ADMINISTRATION ....................................................................................................................................... 4 GENERAL .................................................................................................................................................................................................................... INFORMATION ............................................................................................................................................................... 5 KITE FUND SICAV - TOTAL RETURN .................................................................................................................................................................................................................... 6 ........................................................................................................................................................................................................................................................... STATEMENT OF NET ASSETS ............................................................................................................................................................................... 6 STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS ........................................................................................................ ........................................................................................................................................................................................................................................................... 7 STATISTICAL INFORMATION ............................................................................................................................................................................... ........................................................................................................................................................................................................................................................... 8 CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE .............................. ........................................................................................................................................................................................................................................................... 9 STATEMENT OF INVESTMENTS IN SECURITIES AND OTHER NET ASSETS ................................................................................ ........................................................................................................................................................................................................................................................... 10 GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS IN SECURITIES .............................................................................. ........................................................................................................................................................................................................................................................... 16 ECONOMIC CLASSIFICATION OF THE INVESTMENTS IN SECURITIES ......................................................................................... ........................................................................................................................................................................................................................................................... 17 NOTES .................................................................................................................................................................................................................... TO THE FINANCIAL STATEMENTS ........................................................................................................................... 18 3 KITE FUND SICAV DIRECTORS AND ADMINISTRATION CUSTODIAN, REGISTRAR, TRANSFER, DOMICILIARY, ADMINISTRATIVE AND PAYING AGENT BOARD OF DIRECTORS Lidia PALUMBO (Chairman) PHARUS MANAGEMENT LUX S.A. - Conducting Person Stefano FORMENTINI WISE CONSULTANTS S.A. - Director EDMOND DE ROTHSCHILD (Europe) 20 Boulevard Emmanuel Servais L - 2535 Luxembourg Roberto FACCHINI WISE CONSULTANTS S.A. - Director INVESTMENT MANAGER Tesfamicael MEHRETAB TMF Compliance (Luxembourg) S.A. PHARUS MANAGEMENT S.A. Via Pollini 7 CH - 6850 Mendrisio MANAGEMENT COMPANY PHARUS MANAGEMENT LUX S.A. 32-36, Boulevard d’Avranches L - 1160 Luxembourg AUDITOR PRICEWATERHOUSECOOPERS, Société coopérative 400 Route d’Esch L-1471 Luxembourg Board of Directors of the Management Company Davide BERRA (Chairman) Davide PASQUALI Sante JANNONI LEGAL ADVISOR TMF Compliance (Luxembourg) S.A. 11 Boulevard Joseph II L-1840 Luxembourg Conducting Persons of the Management Company Lidia PALUMBO Davide PASQUALI Vito Luciano MANCINI 4 KITE FUND SICAV GENERAL INFORMATION INFORMATION TO THE SHAREHOLDERS The issue price and the redemption price of the SICAV's shares are made public at the registered office of the SICAV, where annual and semi-annual reports may be obtained. Notices concerning the SICAV are published in the Mémorial, Recueil des Sociétés et Associations of the Grand-Duchy of Luxembourg”, in a Luxembourg newspaper and in any newspaper that the Board of Directors deems appropriate. Subscriptions cannot be received on the basis of financial reports. Subscriptions are valid only if made on the basis of the current prospectus, supplemented by the last annual report and the most recent semi-annual report if published thereafter. The current Articles of Incorporation of the SICAV are lodged with the Registrar of the Luxembourg District Court, from whom copies may be obtained. NET ASSET VALUE PER SHARE The Net Asset Value of each Class of Shares is calculated, under the overall responsibility of the Board of Directors, on a weekly basis, every Tuesday in Luxembourg (“Valuation day”). In case of legal or bank holiday, the Net Asset Value per Share is calculated the next following bank business day. RISK MANAGEMENT The Sub-Fund employs a “Commitment approach” method to calculate and monitor the global exposure of the Sub-Fund. 5 KITE FUND SICAV TOTAL RETURN STATEMENT OF NET ASSETS June 30, 2014 (in EUR) ASSETS Portfolio: - Cost - Net unrealised result (see notes) 62,654,761.68 1,098,986.59 63,753,748.27 Cash: - Cash at sight - Cash at broker 5,040,029.25 307,558.45 Other assets: - Interest receivable - Dividend receivable - Formation/reorganisation expenses, net - Other 655,995.87 10,617.67 45,572.72 2,129.85 69,815,652.08 (see notes) LIABILITIES Other liabilities: - Taxes and expenses payable - Unrealised loss on futures - Other 124,614.52 155,294.36 19,391.75 299,300.63 NET ASSETS 69,516,351.45 Represented by: 641,047.580 Shares of category Class A with a value of EUR The notes are an integral part of these financial statements. 6 108.44 per share KITE FUND SICAV TOTAL RETURN STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS Period from January 1, 2014 to June 30, 2014 (in EUR) NET ASSETS AT THE BEGINNING OF THE PERIOD 52,230,956.95 INCOME Income from investments: - Dividends, net - Bond interest, net Commissions on issue and repurchase of shares (see notes) (see notes) 80,919.90 774,134.39 (0.03) 855,054.26 EXPENSES Bank interest, net 650.27 Fees: - Management fee - Performance fee - Custodian fee and safekeeping charges Other expenses: - Annual tax - Amortisation of formation/reorganisation expenses - Audit and legal fees - Transaction fees - Administration and other expenses (see notes) (see notes) (see notes) 461,475.00 86,456.00 58,747.28 (see notes) (see notes) 16,187.48 7,214.28 10,668.38 167,412.65 37,191.91 846,003.25 (see notes) NET OPERATING RESULT 9,051.01 Net realised result on: - Sales of investments - Foreign exchange (see notes) NET REALISED RESULT 749,720.09 (21,886.14) 736,884.96 Change in net unrealised appreciation/(depreciation) on: - Investments - Forward foreign exchange contracts on currencies - Futures NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS 861,864.83 841.93 (235,693.54) 1,363,898.18 MOVEMENTS IN CAPITAL Subscriptions of shares Redemptions of shares 16,716,498.92 (795,002.60) 15,921,496.32 NET ASSETS AT THE END OF THE PERIOD 69,516,351.45 The notes are an integral part of these financial statements. 7 KITE FUND SICAV TOTAL RETURN STATISTICAL INFORMATION Period from January 1, 2014 to June 30, 2014 SHARES Class A Shares outstanding at the beginning of the period 493,214.624 Subscriptions of shares 155,222.956 Redemptions of shares (7,390.000) Shares outstanding at the end of the period 641,047.580 NET ASSET VALUE PER SHARE EUR Highest 109.14 06.10.14 Lowest 105.85 02.04.14 At the end of the period 108.44 The notes are an integral part of these financial statements 8 KITE FUND SICAV TOTAL RETURN CHANGES IN THE NUMBER OF SHARES, IN NET ASSETS AND IN NET ASSET VALUE PER SHARE Date Share Class Number of shares outstanding Net Assets Ccy Net asset value per share * 10.08.12 Class A 342,000.000 34,200,000.00 EUR 100.00 12.31.12 Class A 416,985.002 42,842,866.99 EUR 102.74 12.31.13 Class A 493,214.624 52,230,956.95 EUR 105.90 06.30.14 Class A 641,047.580 69,516,351.45 EUR 108.44 * first valuation The notes are an integral part of these financial statements 9 KITE FUND SICAV TOTAL RETURN STATEMENT OF INVESTMENTS IN SECURITIES AND OTHER NET ASSETS June 30, 2014 (in EUR) Quantity or Face Value Cost Value per security BANCO DO BRAZIL SA GRAND CAYMAN FRN REG-S USD - PERPETUAL 9% 06.18.14 365,873.83 98.780 TOTAL BRAZIL 365,873.83 Description Ccy Market value (see notes) % of net assets TRANSFERABLE SECURITIES AND MONEY MARKET INSTRUMENTS ADMITTED TO AN OFFICIAL STOCK EXCHANGE OR DEALT IN ON ANOTHER REGULATED MARKET BONDS BRAZIL 500,000.00 361,963.51 0.52 361,963.51 0.52 152,139.00 0.22 152,139.00 0.22 1,054,650.00 1.52 1,054,650.00 1.52 CAYMAN ISLANDS 200,000.00 HENGDELI HOLDINGS LTD EMTN 6.25% 01.29.13 - 01.29.18 USD TOTAL CAYMAN ISLANDS 149,707.61 103.797 149,707.61 FINLAND 1,000,000.00 ELENIA FINANCE OYJ EMTN 2.875% 12.17.13 - 12.17.20 EUR TOTAL FINLAND 998,422.25 105.465 998,422.25 FRANCE 500,000.00 500,000.00 1,000,000.00 1,000,000.00 500,000.00 500,000.00 1,000,000.00 100,000.00 400,000.00 500,000.00 500,000.00 250,000.00 1,000,000.00 500,000.00 400,000.00 ACCOR SA 2.625% 02.05.14 - 02.05.21 ACCOR SA FRN - PERPETUAL 4.125% 06.30.14 AIR FRANCE KLM 3.875% 06.18.14 - 06.18.21 AXA SA FRN - PERPETUAL 3.875% 05.20.14 BANQUE PSA FINANCE - REG-S 3.875% 01.14.11 - 01.14.15 BANQUE PSA FINANCE EMTN 4.25% 02.25.11 - 02.25.16 CASINO GUICHARD PERRACHON FRN PERPETUAL 4.87% 10.24.13 GROUPAMA SA FRN - PERPETUAL 6.298% 10.22.07 GROUPAMA SA FRN - PERPETUAL 6.375% 05.28.14 LAGARDERE SCA 4.125% 10.31.12 - 10.31.17 NUMERICABLE GROUP SA - REG-S 5.375% 05.08.14 - 05.15.22 NUMERICABLE GROUP SA - REG-S 5.625% 05.08.14 - 05.15.24 PEUGEOT SA 6.5% 09.18.13 - 01.18.19 RENAULT SA EMTN 3.125% 03.05.14 - 03.05.21 TEREOS FINANCE GROUPE I 4.25% 03.04.13 - 03.04.20 EUR 495,432.25 103.975 519,875.00 0.75 EUR 501,902.25 99.685 498,425.00 0.72 EUR 1,007,004.50 100.715 1,007,150.00 1.44 EUR 994,246.75 99.180 991,800.00 1.43 EUR 500,738.62 101.445 507,225.00 0.73 EUR 517,039.25 104.180 520,900.00 0.75 EUR 1,000,359.00 105.130 1,051,300.00 1.50 EUR 87,800.90 101.850 101,850.00 0.15 EUR 351,253.60 103.800 415,200.00 0.60 EUR 521,902.25 107.700 538,500.00 0.77 EUR 500,052.25 106.352 531,760.00 0.76 EUR 250,052.25 107.210 268,025.00 0.39 EUR 1,064,354.50 114.465 1,144,650.00 1.64 EUR 501,479.50 105.045 525,225.00 0.76 EUR 393,204.50 102.515 410,060.00 0.59 The notes are an integral part of these financial statements. 10 KITE FUND SICAV Quantity or Face Value 700,000.00 TOTAL RETURN Ccy Description VEOLIA ENVIRONNEMENT SA FRN PERPETUAL 4.85% 01.16.13 GBP TOTAL FRANCE Cost Value per security Market value (see notes) 883,571.36 100.675 879,472.84 1.27 9,911,417.84 14.25 9,570,393.73 % of net assets GERMANY 528,000.00 250,000.00 5,000,000.00 1,000,000.00 1,500,000.00 BAYER AG FRN 3.75% 07.01.14 - 07.01.74 HORNBACH-BAUMARKT AG 3.875% 02.15.13 - 02.15.20 KREDITANSTALT FUER WIEDERAUFBAU 0.875% 03.18.14 - 03.18.19 THYSSENKRUPP AG EMTN 4% 02.25.13 - 08.27.18 VOLKSWAGEN INTERNATIONAL FINANCE NV FRN PERPETUAL 4.625% 03.24.14 EUR 530,428.25 101.225 534,468.00 0.77 EUR 248,177.25 105.925 264,812.50 0.38 EUR 4,994,434.50 101.850 5,092,500.00 7.33 EUR 1,026,229.35 107.935 1,079,350.00 1.55 EUR 1,524,484.50 105.370 1,580,550.00 2.27 8,551,680.50 12.30 TOTAL GERMANY 8,323,753.85 IRELAND 500,000.00 1,500,000.00 BANK OF IRELAND 3.25% 01.15.14 - 01.15.19 BANK OF IRELAND FRN EMTN 4.25% 06.11.14 - 06.11.24 EUR 509,709.83 104.120 520,600.00 0.75 EUR 1,496,804.50 99.710 1,495,650.00 2.15 2,016,250.00 2.90 TOTAL IRELAND 2,006,514.33 ITALY 1,000,000.00 300,000.00 500,000.00 500,000.00 350,000.00 1,000,000.00 300,000.00 1,000,000.00 1,000,000.00 ENEL SPA FRN 5% 01.15.14 - 01.15.75 FGA CAPITAL IRELAND PLC EMTN 2.625% 04.17.14 - 04.17.19 FGA CAPITAL IRELAND PLC EMTN 4% 10.17.13 - 10.17.18 FIAT FINANCE & TRADE LTD SA EMTN 4.75% 03.21.14 - 03.22.21 FINMECCANICA FINANCE SA EMTN 4.5% 12.05.13 - 01.19.21 INTESA SANPAOLO VITA SPA 5.35% 09.18.13 - 09.18.18 ROTTAPHARM LTD - REG-S 6.125% 11.14.12 - 11.15.19 UNICREDITO ITALIANO SPA EMTN 3.95% 02.01.06 - 02.01.16 UNICREDIT SPA FRN - PERPETUAL 8% 04.03.14 EUR 995,604.50 105.385 1,053,850.00 1.52 EUR 298,558.25 102.705 308,115.00 0.44 EUR 506,743.75 108.587 542,935.00 0.78 EUR 510,204.50 104.319 521,595.00 0.75 EUR 351,786.57 105.265 368,427.50 0.53 EUR 1,020,366.75 111.450 1,114,500.00 1.60 EUR 302,377.50 108.566 325,698.00 0.47 EUR 1,015,979.50 103.030 1,030,300.00 1.48 USD 734,956.88 106.935 783,692.40 1.13 6,049,112.90 8.70 493,375.00 0.71 493,375.00 0.71 544,912.50 0.78 544,912.50 0.78 1,057,190.00 1.52 1,057,190.00 1.52 TOTAL ITALY 5,736,578.20 JERSEY 500,000.00 RZB FINANCE JERSEY IV LTD FRN PERPETUAL 5.169% 05.16.06 EUR TOTAL JERSEY 486,552.25 98.675 486,552.25 KAZAKHSTAN 550,000.00 KAZAGRO NATIONAL MANAGEMENT HOLDING JSC EUR EMTN 3.255% 05.22.14 - 05.22.19 548,544.50 TOTAL KAZAKHSTAN 548,544.50 99.075 LUXEMBOURG 1,000,000.00 TRAFIGURA FUNDING SA EMTN 5.25% 11.29.13 - 11.29.18 EUR TOTAL LUXEMBOURG 1,033,103.00 1,033,103.00 The notes are an integral part of these financial statements. 11 105.719 KITE FUND SICAV Quantity or Face Value TOTAL RETURN Description Cost Value per security Market value (see notes) EUR 1,005,944.50 100.900 1,009,000.00 1.45 EUR 998,794.75 98.740 987,400.00 1.42 EUR 1,027,890.69 104.711 1,047,110.00 1.51 USD 383,266.29 105.795 387,668.85 0.56 USD 728,489.40 99.860 731,841.98 1.05 4,163,020.83 5.99 488,530.00 0.70 488,530.00 0.70 369,647.63 0.53 369,647.63 0.53 Ccy % of net assets NETHERLANDS 1,000,000.00 1,000,000.00 1,000,000.00 500,000.00 1,000,000.00 AEGON NV FRN EMTN 4% 04.25.14 - 04.25.44 DELTA LLOYD NV FRN - PERPETUAL 4.375% 06.13.14 ING VERZEKERINGEN NV FRN 4.625% 04.08.14 - 04.08.44 KONINKLIJKE KPN NV FRN - REG-SHS 7% 03.28.13 - 03.28.73 LUKOIL INTERNATIONAL FINANCE BV REG-SHS 3.416% 04.24.13 - 04.24.18 TOTAL NETHERLANDS 4,144,385.63 PORTUGAL 500,000.00 BANCO ESPIRITO SANTO SA 4% 01.21.14 - 01.21.19 EUR TOTAL PORTUGAL 499,134.25 97.706 499,134.25 RUSSIA 500,000.00 ROSNEFT INTERNATIONAL FINANCE LTD REG-SHS - USD LOAN PARTICIPATION NOTE 3.149% 12.06.12 - 03.06.17 367,361.21 TOTAL RUSSIA 367,361.21 100.877 SPAIN 250,000.00 300,000.00 1,000,000.00 1,000,000.00 1,000,000.00 GRUPO ISOLUX CORSAN FINANCE BV REG-S 6.625% 03.20.14 - 04.15.21 HOCHTIEF AG 2.625% 05.28.14 - 03.20.20 SPAIN 3.8% 01.29.14 - 04.30.24 SPAIN 2.75% 06.20.14 - 10.31.24 TELEFONICA EUROPE BV FRN PERPETUAL 5% 03.31.14 EUR 250,364.75 102.125 255,312.50 0.37 EUR 298,321.25 101.625 304,875.00 0.44 EUR 995,434.50 109.670 1,096,700.00 1.57 EUR 991,972.25 99.820 998,200.00 1.44 EUR 1,030,966.75 104.345 1,043,450.00 1.50 3,698,537.50 5.32 553,482.07 0.80 553,482.07 0.80 TOTAL SPAIN 3,567,059.50 SWITZERLAND 750,000.00 CREDIT SUISSE GROUP AG FRN PERPETUAL 6.25% 06.18.14 USD TOTAL SWITZERLAND 560,473.60 100.697 560,473.60 UNITED KINGDOM 3,000,000.00 1,500,000.00 750,000.00 HBOS PLC FRN 4.375% 10.29.04 - 10.30.19 ROYAL BK SCOTLAND PLC FRN EMTN 4.625% 09.22.04 - 09.22.21 XSTRATA FINANCE CANADA LTD - REG-S RATING LKD 2.7% 10.25.12 - 10.25.17 EUR 2,994,534.00 100.560 3,016,800.00 4.34 EUR 1,520,779.50 103.270 1,549,050.00 2.23 USD 565,863.22 102.743 564,727.93 0.81 5,130,577.93 7.38 TOTAL UNITED KINGDOM 5,081,176.72 UNITED STATES OF AMERICA 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 GE CAPITAL EUROPEAN FUNDING EMTN 1.625% 01.15.13 - 03.15.18 GE CAPITAL EUROPEAN FUNDING FRN 0.786% 05.02.13 - 05.03.16 GOLDMAN SACHS GROUP INC FRN EMTN 0.695% 01.30.07 - 01.30.17 APPLE INC 2.4% 05.03.13 - 05.03.23 TOTAL UNITED STATES OF AMERICA EUR 2,006,664.50 103.225 2,064,500.00 2.97 EUR 2,000,212.25 100.470 2,009,400.00 2.89 EUR 1,981,472.25 99.585 1,991,700.00 2.87 USD 1,441,476.80 94.855 1,390,323.88 2.00 7,455,923.88 10.73 7,429,825.80 The notes are an integral part of these financial statements. 12 KITE FUND SICAV Quantity or Face Value TOTAL RETURN Ccy Description Cost Value per security 149,273.89 99.628 Market value (see notes) % of net assets VENEZUELA 200,000.00 PETROLEOS DE VENEZUELA SA - REG-S 4.9% 10.28.09 - 10.28.14 USD TOTAL VENEZUELA TOTAL BONDS 146,028.35 0.21 149,273.89 146,028.35 0.21 51,018,134.15 52,198,439.44 75.08 296,460.00 0.43 296,460.00 0.43 230,050.00 665,625.00 296,700.00 309,700.00 0.33 0.95 0.43 0.45 1,502,075.00 2.16 295,880.00 317,100.00 344,400.00 290,500.00 295,770.00 318,300.00 282,000.00 0.43 0.46 0.49 0.42 0.43 0.45 0.41 2,143,950.00 3.09 197,969.63 0.28 197,969.63 0.28 220,000.00 0.32 220,000.00 0.32 324,900.00 0.47 324,900.00 0.47 254,960.00 0.37 254,960.00 0.37 211,271.19 0.30 211,271.19 0.30 337,200.00 0.48 EQUITIES BELGIUM 6,000.00 ETABLISSEMENT DELHAIZE FRERES & CIE LE LION - EUR GROUPE DELHAIZE SA -PSTOTAL BELGIUM 298,810.84 49.410 298,810.84 FRANCE 25,000.00 25,000.00 20,000.00 5,000.00 AIR FRANCE - KLM ROISSY CHARLES DE GAULLE ALSTOM M6 METROPOLE TELEVISION SA PUBLICIS GROUPE SA EUR EUR EUR EUR TOTAL FRANCE 281,698.96 722,857.62 300,390.47 316,960.77 9.202 26.625 14.835 61.940 1,621,907.82 GERMANY 4,000.00 30,000.00 30,000.00 10,000.00 6,000.00 10,000.00 5,000.00 ADIDAS AG - REG SHS AIXTRON SE - REG SHS COMMERZBANK AG EVONIK INDUSTRIES AG LANXESS AG METRO AG SAP SE EUR EUR EUR EUR EUR EUR EUR TOTAL GERMANY 306,414.46 354,960.38 346,240.60 281,407.05 327,235.56 300,219.98 281,901.04 73.970 10.570 11.480 29.050 49.295 31.830 56.400 2,198,379.07 IRELAND 3,500.00 EATON CORP PLC USD TOTAL IRELAND 194,863.68 77.180 194,863.68 ITALY 20,000.00 GALA SPA EUR TOTAL ITALY 250,081.00 11.000 250,081.00 LUXEMBOURG 30,000.00 ARCELORMITTAL SA - NEW REG EUR TOTAL LUXEMBOURG 380,333.80 10.830 380,333.80 NETHERLANDS 40,000.00 AEGON NV EUR TOTAL NETHERLANDS 261,570.50 6.374 261,570.50 SINGAPORE 4,000.00 AVAGO TECHNOLOGIES LTD USD TOTAL SINGAPORE 181,736.24 72.070 181,736.24 SPAIN 3,000.00 100,000.00 INDUSTRIA DE DISENO TEXTIL INDITEX SA - REG SHS MAPFRE SA - REG SHS EUR 317,959.55 112.400 EUR 305,702.30 2.911 TOTAL SPAIN 623,661.85 291,100.00 0.42 628,300.00 0.90 329,735.27 0.47 329,735.27 0.47 SWITZERLAND 1,500.00 ZURICH INSURANCE GROUP AG - REG SHS CHF TOTAL SWITZERLAND 314,260.70 314,260.70 The notes are an integral part of these financial statements. 13 267.300 KITE FUND SICAV Quantity or Face Value TOTAL RETURN Ccy Description Cost Value per security 181,182.07 253,012.70 183,551.44 173,341.64 349,800.84 138,728.69 96,928.81 229,121.15 377,395.18 47.100 18.420 50.720 17.240 26.280 92.950 57.620 55.560 34.580 Market value (see notes) % of net assets UNITED STATES OF AMERICA 5,000.00 17,500.00 5,000.00 15,000.00 18,000.00 2,000.00 2,750.00 6,500.00 15,000.00 CITIGROUP INC CLOUD PEAK ENERGY INC FOOT LOCKER INC FORD MOTOR CO GENERAL ELECTRIC CO HONEYWELL INTERNATIONAL INC JPMORGAN CHASE & CO METLIFE INC QUANTA SERVICES INC USD USD USD USD USD USD USD USD USD 172,590.41 236,240.00 185,855.32 189,519.66 346,675.88 136,240.16 116,126.60 264,667.95 380,138.63 0.25 0.34 0.27 0.27 0.50 0.20 0.17 0.38 0.54 TOTAL UNITED STATES OF AMERICA 1,983,062.52 2,028,054.61 2.92 TOTAL EQUITIES 8,308,668.02 8,137,675.70 11.71 1,052,300.00 1.52 1,052,300.00 1.52 738,965.46 1.06 738,965.46 1.06 1,031,640.00 1.48 REVERSE CONVERTIBLE BONDS FRANCE 1,000,000.00 SOCIETE GENERALE SA FRN 6.75% 04.07.14 - EUR TOTAL FRANCE 1,028,829.50 105.230 1,028,829.50 GERMANY 1,000,000.00 DEUTSCHE BANK AG FRN - PERPETUAL 6.25% 05.27.14 - USD TOTAL GERMANY 729,746.66 100.832 729,746.66 SPAIN 1,000,000.00 BANCO SANTANDER SA FRN CONV - PERPETUAL 6.25% 03.12.14 - EUR 1,022,956.75 103.164 TOTAL SPAIN 1,022,956.75 1,031,640.00 1.48 TOTAL REVERSE CONVERTIBLE BONDS 2,781,532.91 2,822,905.46 4.06 62,108,335.08 63,159,020.60 90.85 380,340.17 0.55 TOTAL TRANSFERABLE SECURITIES AND MONEY MARKET INSTRUMENTS ADMITTED TO AN OFFICIAL STOCK EXCHANGE OR DEALT IN ON ANOTHER REGULATED MARKET OTHER TRANSFERABLE SECURITIES BONDS CHINA 500,000.00 LENOVO GROUP LTD 4.7% 05.08.14 - 05.08.19 USD 368,351.67 103.795 TOTAL CHINA 368,351.67 380,340.17 0.55 TOTAL BONDS 368,351.67 380,340.17 0.55 EQUITIES FRANCE 5,000.00 0.00 0.00 TOTAL FRANCE DAT PUBLICIS GROUPE SA 14-06.23.14 EUR 50.00 0.00 0.00 TOTAL EQUITIES 50.00 0.00 0.00 368,401.67 380,340.17 0.55 TOTAL OTHER TRANSFERABLE SECURITIES 50.00 The notes are an integral part of these financial statements. 14 0.000 KITE FUND SICAV Quantity or Face Value TOTAL RETURN Description Ccy Cost Value per security 178,024.93 14.293 Market value (see notes) % of net assets INVESTMENT FUNDS OPEN-ENDED INVESTMENT FUNDS UNITED STATES OF AMERICA 15,000.00 ISHARES PLC S&P 500 UCITS ETF -EUR- 214,387.50 0.31 TOTAL UNITED STATES OF AMERICA EUR 178,024.93 214,387.50 0.31 TOTAL OPEN-ENDED INVESTMENT FUNDS 178,024.93 214,387.50 0.31 TOTAL INVESTMENT FUNDS 178,024.93 214,387.50 0.31 62,654,761.68 63,753,748.27 91.71 5,347,587.70 415,015.48 7.69 0.60 69,516,351.45 100.00 TOTAL INVESTMENTS IN SECURITIES Cash/(bank overdraft) Other assets and liabilities TOTAL NET ASSETS The notes are an integral part of these financial statements. 15 KITE FUND SICAV TOTAL RETURN GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS IN SECURITIES June 30, 2014 (in %) COUNTRIES % of net assets France Germany United States of America Italy Spain United Kingdom Netherlands Ireland Luxembourg Finland Switzerland Kazakhstan Jersey Portugal China Russia Brazil Belgium Singapore Cayman Islands Venezuela 17.93 16.45 13.96 9.02 7.70 7.38 6.36 3.18 1.99 1.52 1.27 0.78 0.71 0.70 0.55 0.53 0.52 0.43 0.30 0.22 0.21 TOTAL INVESTMENTS IN SECURITIES 91.71 Other assets/(liabilities) and liquid assets NET ASSETS 8.29 100.00 16 KITE FUND SICAV TOTAL RETURN ECONOMIC CLASSIFICATION OF THE INVESTMENTS IN SECURITIES June 30, 2014 (in %) ECONOMIC SECTORS % of net assets Banks and other credit institutions Holding and finance companies Insurance Energy and public utilities Retail trade Government bonds Road vehicles Office supplies and computers Mining industry Miscellaneous services Data transmission Transportation Chemicals Hotels, restaurants and leisure Electronics and semiconductors Graphic industry and publishing houses Electrotechnical and electronic industry Textiles and clothing industry Agriculture and fishing Pharmaceutical and cosmetics industry Building and building materials Internet and software services Investment funds Other Oil Aeronautical and astronomical industry 29.27 19.34 9.80 3.11 3.03 3.01 2.67 2.55 2.36 2.17 2.06 1.77 1.62 1.47 1.30 1.22 0.95 0.91 0.78 0.47 0.44 0.41 0.31 0.28 0.21 0.20 TOTAL INVESTMENTS IN SECURITIES 91.71 Other assets/(liabilities) and liquid assets NET ASSETS 8.29 100.00 17 KITE FUND SICAV NOTES TO THE FINANCIAL STATEMENTS June 30, 2014 Securities not listed on a stock exchange or dealt in on another regulated market which operates regularly, is recognised and open to the public shall be assessed on the basis of the probable sales value estimated with prudence and in good faith; GENERAL KITE FUND SICAV (the “Fund”) is a “société d’investissement à capital variable” with an umbrella structure, organized under Part I of the Law of December 17, 2010, as amended relating to Undertakings for Collective Investment (“Law of 2010”) and the Law of August 10, 1915 on the Commercial Companies (“Law of 1915”). c) Valuation of futures and options Futures and options, if any, are valued by reference to the last available day at closing price on the relevant market. The Fund was created on September 11, 2012 for an unlimited period and is registered with the Luxembourg trade and companies register under number B 171354. Its original Articles have been published in the Mémorial on September 18, 2012. The realised and unrealised, if any, results on futures and on options are included in the statement of changes in net assets, respectively under “Net realised result on sales of investments” or “Change in net unrealised appreciation/(depreciation) on futures” or “Change in net unrealised appreciation/(depreciation) on options”. As at June 30, 2014, the following Sub-Fund is available to investors: In the financial statements, the options quantities, include the size of the contract. KITE FUND SICAV - TOTAL RETURN d) Forward foreign exchange contracts The Board of Directors of the Fund may, at any time, decide to create further Sub-Funds. Forward foreign exchange contracts are valued at the forward rate applicable at the statement of net assets date for the remaining period until maturity. The Fund issues Shares of different classes. As at June 30, 2014, the following share class is available to investors: The realised result, if any, on forward foreign exchange contracts is included in the statement of changes in net assets of each Sub-Fund under “Net realised result on foreign exchange”. Class A Share which is denominated in EUR SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES e) Net realised gain or loss on sales of investments a) Presentation of financial statements Realised gains or losses on sales of investments are calculated on the basis of average cost of the investments sold. The financial statements are prepared in accordance with Luxembourg regulations relating to Undertakings for Collective Investment. f) Conversion of foreign currencies for each Sub-Fund b) Valuation of the investments in securities Cash at bank, other net assets as well as the market value of the investment portfolio in currencies other than the reference currency of the Sub-Fund are converted into the reference currency of the Sub-Fund at the exchange rate prevailing at the year end. The valuation of securities and/or financial derivative instruments listed on an official stock exchange or dealt in on another regulated market which operates regularly, is recognised and open to the public, is based on the last available price and, if such security and/or financial derivative instrument is traded on several markets, on the basis of the last available price known on the market considered to be the main market for trading this security and/or financial derivative instrument. If the last available price is not representative, the valuation shall be based on the probable sales value estimated by the Board of Directors with prudence and in good faith; Income and expenses in currencies other than the currency of the Sub-Fund are converted into the currency of the Sub-Fund at the exchange rate prevailing at the payment date. Resulting realised and unrealised foreign exchange gains and losses are included in the statement of operations of each Sub-Fund. 18 KITE FUND SICAV Until May 8, 2014, the Fund has been managed by MDO MANAGEMENT COMPANY S.A., a management company governed by Chapter 15 of the Law of 2010 (“The Management Company”), having its registered office at 19, rue de Bitbourg L- 1273 Luxembourg as its management company registered under Chapter 15 of the Law of 2010, according to a “Collective Portfolio Management Agreement” dated September 2012. The Management Company is a company incorporated in Luxembourg as a “société anonyme” on May 2007 for an indefinite duration and registered in the Luxembourg Commercial Register under Number B128627. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) g) Cost of investments in securities Cost of investments in securities in currencies other than the reference currency of the Sub-Fund is converted into the reference currency of the Sub-Fund at the exchange rate applicable at the purchase date. h) Formation expenses Formation expenses are amortised on a straight line basis over a period of 5 years. For the share class, the Management Company is entitled to receive from the Sub-Fund a fee of up to 0.12% p.a. (with a minimum fee of 30,000 EUR p.a.), calculated and accrued every Valuation Day on the quarterly average of the month end total assets under management of the previous quarter. The fees will be payable quarterly in arrears. In addition to the above, the Management Company is entitled to receive a fee of up to 32,000 EUR p.a. payable quarterly in arrears. i) Dividends and interest Dividends are recorded at ex-date. Interest is accounted for on a prorata basis. EXCHANGE RATES AS AT JUNE 30, 2014 1 1 1 CHF GBP USD = = = 0.822385 1.247966 0.732868 With effect as of May 8, 2014, the Board of Directors has appointed PHARUS MANAGEMENT LUX S.A. (“The Management Company”), having its registered office at 32-36 Boulevard d’Avranches L- 1160 Luxembourg as its management company registered under Chapter 15 of the Law of 2010, according to a “Management Company Services Agreement”. EUR EUR EUR COMMISSIONS ON ISSUE AND REPURCHASE OF SICAV'S SHARES The Management Company is a company incorporated in Luxembourg as a “société anonyme” on July 3, 2012 for an indefinite duration and registered in the Luxembourg Commercial Register under Number B169798. Shares are issued and redeemed at net asset value, subject to the subscription and redemption fees here above: - For both classes, the Management Company is entitled to receive a management company fee of 0.07 % per year, based on the net assets of the Sub-Fund, with a minimum of EUR 25.000 per year. This fee will be calculated on the quarterly average of the total net assets under management of the previous quarter. It will be payable quarterly in arrears. up to 3%, the Subscription Fee is payable at the discretion of the Board of Directors up to 3%, the Redemption Fee is payable at the discretion of the Board of Directors MANAGEMENT COMPANY FEE, INVESTMENT MANAGER FEE In addition, for the service of risk management of the SubFund, the Management Company is entitled to receive a fee of EUR 10.000 per year, payable quarterly in arrears. Management Company The Board of Directors is responsible for all commitments of the Fund and for the overall management and control of the Fund. It may carry out all acts of management of the assets of each Sub-fund and in particular it may purchase, sell, subscribe or exchange any transferable securities and exercise all rights directly or indirectly attached to the Fund’s assets. The Board of Directors shall be in charge of determining the investment policy of each Sub-fund. 19 KITE FUND SICAV MANAGEMENT COMPANY FEE, INVESTMENT MANAGER FEE (continued) The above mentioned percentages will be calculated “per tranche”. Investment Manager For example: if the NAV performance is 6%, the Performance Fee will be 10% of the NAV Performance exceeding 2% i.e. (6%2%)*10%=0,4%; if the NAV Performance is 9%, the Performance Fee will be 10% of the NAV Performance between 2% and 7% plus 15% of the NAV Performance exceeding 7%, i.e. [(7%-2%)*10%]+[(9%-7%)*15%]=0,5%+0,3%=0,8%. The Management Company has appointed PHARUS MANAGEMENT S.A., a Swiss based asset management company with registered office at Via Pollini 7, CH 6850 Mendrisio (Switzerland), duly enrolled at the Register of the Management Company held by FINMA, to act as Investment Manager of the Sub-Fund. PHARUS MANAGEMENT S.A. is in its turn authorised to appoint sub-investment managers or advisory companies, at its own expenses. The performance fee is calculated on the basis of the NAV after deduction of all expenses, liabilities, and management fees (but not performance fee), and is adjusted to take account of all subscriptions and redemptions. For both classes, the Investment Manager is entitled to receive from the Sub-Fund an investment management fee of 1,4 % per year (with a minimum fee of EUR 50.000 per year) calculated and accrued every Valuation Day on the total net value of the sub-fund and drawn from the availability of the latter the first trading day of the following month. The performance fee is equal to the out performance of the NAV per share multiplied by the number of shares in circulation during the calculation period. No performance fee will be due if the NAV per share before performance fee turns out to be below the Reference NAV for the calculation period in question. Part of these fees will serve as remuneration for the Investment Advisor. The Reference NAV is defined as the greater of the following two figures: The latest NAV per share after deduction of performance fee during the previous calculation period; and - The latest Reference NAV. - The Reference NAV for the first period is the initial NAV per share. Investment Advisor The Investment Manager has appointed Wise Consultants SA, a Swiss company with registered office at avenue Industrielle 4-6, CH1227 Carouge (Switzerland), as Investment Advisor to give recommendations to the Investment Manager for the manner in which the cash raised by the Sub-Fund might be invested or divested and provide information and documentation relating to the market contemplated by the investment policy of the SubFund. Provision will be made for this performance fee on each Valuation Day. If the NAV per share decreases during the calculation period, the provisions made in respect of the performance fee will be reduced accordingly. If these provisions fall to zero, no performance fee will be payable. PERFORMANCE FEE If shares are redeemed on a date other than that on which a performance fee is paid while provision has been made for performance fees, the performance fees for which provision has been made and which are attributable to the shares redeemed will be paid at the end of the period even if provision for performance fees is no longer made at that date. Gains which have not been realised may be taken into account in the calculation and payment of performance fees. Performance Fee In addition to the Investment Manager Fees, the Investment Manager shall be entitled to receive from the Sub-Fund a Performance Fee which is calculated as follows: The Investment Manager will receive a performance fee, paid annually, based on the net asset value (NAV), equivalent to: - 10 % of the performance of the NAV per share exceeding the Reference NAV (as defined hereafter) with a hurdle rate equal to 2% p.a. (and lower than 7% p.a.) - 15 % of the performance of the NAV per share exceeding the Reference NAV (as defined hereafter) with a hurdle rate equal to 7% p.a.. 20 KITE FUND SICAV PERFORMANCE FEE (continued) ANNUAL TAX In case of subscription, the performance fee calculation is adjusted to avoid that this subscription impacts the amount of performance fee accruals. To perform this adjustment, the performance of the NAV per share against the Reference NAV until the subscription date is not taken into account in the performance fee calculation. This adjustment amount is equal to the product of the number of subscribed shares by the positive difference between the subscription price and the Reference NAV adjusted by the hurdle at the date of the subscription. This cumulated adjustment amount is used in the performance fee calculation until the end of the relevant period and is adjusted in case of subsequent redemptions during the period. The Fund is subject to an annual tax in Luxembourg corresponding to 0.05% of the value of the net assets. This tax is payable quarterly on the basis of the Fund's net assets calculated at the end of the relevant quarter. CHANGES IN THE SECURITIES PORTFOLIO A copy of the list of changes in the portfolio of each SubFund may be obtained free of charge at the registered office of the Company for the period from January 1, 2014 to June 30, 2014. The performance fee calculation period shall correspond to the accounting year of the Fund. Performance fees are payable within 10 business days following the end of the calculation period. CUSTODIAN AND ADMINISTRATION FEES Edmond de Rothschild (Europe) has been appointed as Depositary Bank and Central Administrator for the Fund. The Depositary Bank and Central Administration are entitled to receive out of the assets of each Sub-fund fees calculated, in accordance with customary banking practice in Luxembourg, as an annual percentage of the average total net assets and are payable quarterly in arrears. They are also determined partly on a transaction basis and partly as a fixed sum. In addition, the Depositary Bank is entitled to be reimbursed by the Fund for its reasonable out-ofpocket expenses and disbursements and for the charges of any correspondents. TRANSACTIONS FEE The total amount of transaction fees is included in the statement of operations and changes in net assets and includes Custodian and Sub-Custodian fees, Correspondent’s expenses and Brokerage fees. COLLATERAL HELD AT BROKERS The total amount of cash collateral as at June 30, 2014 is disclosed in the Statement of net assets under: • “Cash at broker” for the collateral relating to the outstanding Future contracts. 21 KITE FUND SICAV FUTURES As at June 30, 2014, the following futures contract(s) was (were) outstanding with JP Morgan: For the collateral linked to these outstanding future contracts, please refer to the previous note "COLLATERAL HELD AT BROKERS" KITE FUND SICAV - TOTAL RETURN Sale / Purchase Sale Sale Quantity Contract(s) 60 30 Size Price as at 06.30.14 FUTURES ON INTEREST RATES GERMANY BD 10Y SEPT. 14 100,000 US T.NT 10Y SEP14 FUT/CBT 100,000 147.01 EUR 125.17 USD Commitment EUR as at 0 .30.14 6 EUR Unrealised result EUR (8,820,600.00) (136,400.00) (2,752,033.96) (18,894.36) (11,572,633.96) (155,294.36) The net unrealised result on the outstanding futures contract(s) as at June 30, 2014 for KITE FUND SICAV - TOTAL RETURN is included in the statement of net assets of the Sub-Fund. 22