LEMANIK SICAV R.C. No B 44.893 Audited annual report As at May 31,2005 No subscription can be received on the basis of this financial report. Subscriptions are only valid if made on the basis of the current prospectus supplemented by the latest annual report and the most recent semi-annual report, if published thereafter.
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LEMANIK SICAV
R.C. No B 44.893
Audited annual report As at May 31,2005
No subscription can be received on the basis of this financial report. Subscriptions are only valid if made on the basis of the current prospectus supplemented by t h e latest annual report and the most recent semi-annual report, if published thereafter.
REPORT OF THE BOARD OF DIRECTORS ...--.-...._..____..... ................................................................. 7
REPORT OF THE AUDITORS .............................................................................................................. 12
STATEMENT OF NET ASSETS ........................................................................................................... 13
STATEMENT OF OPERATIONS AND OTHER CHANGES IN NET ASSETS .................................... 18
STATISTICAL INFORMATION ............................................................................................................. 23 GLOBAL BALANCED .......................................................................................................................... 28
STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ................................ GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS INDUSTRIAL CLASSIFICATION OF INVESTMENTS .....................................
. . . . . . .
ACTIVE GROWTH __________________.____._._____. ............................................................................................... 33 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS .......... GEOGWPHICAL CLASSIFICATION OF INVESTMENTS .................. INDUSTRIAL CLASSIFICATION OF INVESTMENTS .........................
EUROPEAN BOND ............................................................................................................................... 37 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ................................................. GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS ......................................................... INDUSTRIAL CLASSIFICATION OF INVESTMENTS ...................................................................... 38
ASIAN OPPORTUNITY ......................................................................................................................... 39 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ....................................................... 39 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS INDUSTRIAL CLASSIFICATION OF INVESTMENTS .......
GLOBAL INCOME ................................................................................................................................ 47 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ....................................................... 47 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS 48 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ...................................................................... 48
EUROPEAN SPECIAL SITUATIONS ................................................................................................... 49 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS.. . . . . . . INDUSTRIAL CLASSIFICATION OF INVESTMENTS ...............
ITALY ................................................................................................... .... _........__..___________..__ .._._...__..___. 56 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ....................................................... 56 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS 59 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ...................................................................... 59
EURO OPPORTUNITIES CP .................................................................................................................. 60 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ....................................................... 60 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS .................................. 61 INDUSTRIAL CLASSIFICATION OF INVESTMENTS 61
CONVERTIBLE BOND AND EQUITY (formerly CONVERTIBLE BOND) ........................................ 62 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS 62 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS ................... ....................... ........... .......... 66 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ......................................... 67
1
LEMANIK SICAV (continued)
EUROIMPULCE PORTFOLIO .............................................................................................................. 68 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ..... ............................ 68 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS., ...... ........................................... 69 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ................ ........................................... 69
SPRING ................................................................................................................................................. 70 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS .................................. 70 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS ........ ............................ 73 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ............... ....................................... 74
GLOBAL BOND .................................................................................................................................... 75 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ............................ 75 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS ....... ............................ 78 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ........................ .............................. 79
GLOBAL INVESTMENT ....................................................................................................................... 80 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ............................ 80 GEOGRAPHICAL CLASSl Fl CAT1 ON OF INVESTMENTS ........ ............................ 85 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ............... ............................ 86
FLEXIBLE BLUE (formerly BLUE) ...................................................................................................... 87 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ..... ............................. 87 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS ............................................................... 89 INDUSTRIAL CLASSIFICATION OF INVESTMENTS .................................. ............................. 90
WORLD PORTFOLIO EQUITIES ......................................................................................................... 91 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ............................. 91 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS ........ ......................................... 94 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ......................... ................................ 95
FLEX DURATION (formerly WORLD BONDS) ................................................................................... 96 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ............................. 96 GEOGRAPHICAL CLASSl F KATION OF INVESTMENTS ........ ................................. 97 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ............... ............................. 97
FLEX STRATEGY ................................................................................................................................. 98 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ....................................................... 98 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS ........ ............................. 99 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ............... ............................. 99
EURO OPPORTUNITIES CP l l ........................................................................................................... 100 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ..................................................... 100 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS ...... ............................... 101 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ............. ........................... 101
FLEX IDEA (formerly CALCIO MANAGER) ..................................................................................... 102 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS ..................................................... 102 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS .............. ........................... 103 INDUSTRIAL CLASSIFICATION OF INVESTMENTS ............. ........................... 103
NOTES TO THE FINANCIAL STATEMENTS .................................................................................... 104
Directors: Mr Carlo CAMPER10 ClANl CASA4FUNDS S.A. Manager via San Salvatore 6 CH6900 Paradiso Until October 28, 2004
Mr Michele ZORZI LEMANIK S.A. Director via Cantonale 19 CH-6900 Lugano From October 28, 2004
Mr Jean Louis CATRYSSE Sella Bank Luxembourg SA. (anciennement IBL Investment Bank Luxembourg S.A.) First Vice President 4, boulevard Royal L-2449 Luxembourg Until September 23, 2004
Mr Carlo SAGRAMOSO LEMANIK S.A. Director via Cantonale I 9 CH-6900 Lugano From October 28, 2004
Mrs Aleccandra DEGIUGNO Sella Bank Luxembourg S.A. (anciennement IBL Investment Bank Luxembourg SA.) Director 4, boulevard Royal L-2449 Luxembourg From October 13, 2004
Mr Roberto DI CARLO Sella Bank Luxembourg S.A. (anciennement IBL Investment Bank Luxembourg SA.) General Manager 4, boulevard Royal L-2449 Luxembourg From June 14, 2005
Mr Pietro TASCA Sella Bank Luxembourg SA. (anciennement IBL Investment Bank Luxembourg S.A.) General Manager 4, boulevard Royal L-2449 Luxembourg Until June 14, 2005
Registered Office
4, boulevard Royal, L-2449 Luxembourg
Domiciliary Agent, Administrative Agent, Registry and Transfer Agent
Sella Bank Luxembourg S.A., 4, boulevard Royal, L-2449 Luxembourg
Custodian Bank and Paying Agent
Sella Bank Luxembourg SA., 4, boulevard Royal, L-2449 Luxembourg
Ifigest Sim S.p.A Piazza Santa Maria Soprano I 1-50125 Firenze
Xelion Banca S.p.A. via Pirelli 32 1-20124 Milano
Banca Sella S.p.A. via ltalia 2 1-1 3900 Biella (From 12th November 2004)
Banca Arditi Galati S.p.A. viale G. Marconi 45 1-731 00 Lecce (From 12th November 2004)
Inteca Sirn S.p.A. Corco Vittorio Emanuele II 68 I-IO121 Torino
On Line Sirn via Caradosso 14 1-201 23 Milano
ImiWeb Sirn S.p.A. via Cavriana 20 1-201 23 Milano
Piazza Affari Sirn S.p.A Piazza San Giorgio 2 1-20123 Milano
Banca Ifigect S.p.A. Piazza S. Maria Soprano 1-50125 Firenze (From Is t December 2004)
Banca di Palermo via Villareale 2 1-901 40 Palermo (From 12th November 2004)
Banca Bovio Calderari via Osc Mazzurana 63 Palazzo Tabarelli 1-381 00 Trento (From 12th November 2004)
Banca del Valdarno Credit0 Cooperativo Piazza della Liberta 26 1-52027 San Giovanni Valdarno (From 29th September 2003)
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LEMANIK SICAV
Distributor for the comDartment EURO OPPORTUNITIES CP is:
Euro Commercial Bank Strada dei Censiti, 21 1-47891 ROVERETA (Repubblica di San Marino)
- Corresoondant banks in Italy are:
Banca Popolare Commercio e Industria via della Moscova 33 1-20121 Milano
Banca Sella S.p.A. via Italia 2 1-1 3900 Biella
Representative for Switzerland (*) is:
Lemanik S A via Cantonale , I9 CH-6900 Lugano
Listinq aqent is:
Banque et Caisse d'Epargne de I'Etat, Luxembourg
r) no distribution in Switzerland
The statutes, the prospectus and also the annual reports and the semi-annual reports can be obtained free of charge by t h e representative in Switzerland, by the Paying and Information Agent in Germany, by the correspondents and the distributors in Italy as well as at the registered office of the SICAV.
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LEMANIK SICAV
REPORT OF THE BOARD OF DIRECTORS
INTRODUCTION The second half 2004 and first half 2005 have been characterised by global uncertainty about the sustainability of the current pace of growth. Real GDPs growing around 3.6% in US, 2.1% in Japan, 1.8% in UK and 1.1% in Euro zone put the American and Japanese economies on top of the list, even though they definitely live two different stages of the economic cycle.
Stock indices highlight these differences over the reference period: UK, the most advanced in the cycle, had the best performing stock market, peaking in March ‘05, but also the biggest decline from top; US rose in second half ‘04 and was substantially stable in first half ‘05 with economic conditions consolidating; Europe has been picking up recently while Japan still lags.
Monetary policy, as expressed by Central Bank target rates, has been particularly explicit in US, where the Federal Reserve has been raising rates a quarter point at every single meeting, in accordance with its wording of “a pace that is likely to be measured”. The Bank of England is definitely done with interest rate hikes and next move will likely be a cut, while the European Central Bank is keeping a stable policy of low rates to support growth in Euro zone.
Yield curves have generally flattened around the world: sometimes because of higher short term rates, but generally speaking because yields have moved lower and longer rates reached new historic lows. This is mainly due to exceptionally low risk premia for longer maturities and hunger for yield in a very stable inflation environment. The big increase in oil prices looks like the biggest threat to this scenario and to the sustainability of growth.
Another topic of discussion has recently been the housing boom, already slowing and curbing consumption in UK, but still growing in US. This is not a global issue yet: Japan housing market is just starting to show new signs of life. Anyway, US house prices and the related wealth that fuelled consumption and spending in the past years are deemed to slow soon.
Currency markets experienced relevant moves: increasing focus on US twin deficits resulted in a steep decline of the dollar index during the second half of last year. Renewed dollar strength in 2005 came from expectations of superior US growth and favourable interest rate differential.
For the rest of the year the investment community seems to favour Europe and Japan: the former has lagged global growth but should finally benefit of it, also thanks to weaker Euro, and the latter should be at the beginning of a new era of self sustaining growth.
GLOBAL BALANCED The fund kept a low risk profile in 2004 - 2005 with a percentage of highly rated Italian and foreign bonds equal to 70% of the assets (bonds: 80% denominated in Euro and 20% denominated in USD) with a medium-low duration to avoid negative variations, A 20% portfolio share was allocated in Italian equity with a focus on “blue chips”. The fund will keep a wait and see approach until the international scenario clears up.
ACTIVE GROWTH Last year has not been positive for our fund and for the sectors in which we invest. The negative performance of 18.36% has been mainly caused by the devaluation of our Accupoll position, which contributed for over 80% of the fund’s loss, for the reasons we will explain later. The markets that we see as our benchmarks, like NASDAQ or Morgan Stanley Hi Tech have severely underperformed the Europeans one like Dow Jones Eurostoxx 50 (NASDAQ +B.g%,M.St.H.Tech +I .01%, Dow Jones Euro Stoxx +9.6%). The investment policy, which had been very active in 2004, has been instead targeted towards a slower portfolio rotation in 2005, together with a lower equity exposure that has been in average between 60% and 70% of assets.
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LEMANIK SICAV
The main holdings in Europe are today: France Telecom, Sogecable and Vivendi Universal, instead in the USA are: Accupoll, Motorola and Intel. The severe pressure on the Tech sector that we have seen since the beginning of the year ,seems now abating, perhaps also due to the fact that there is a widespread even if tentative sign of economic recovery. The Accupol position, which operates in electronic voting machines in the USA, has been devalued from I$ to 0.25 cents, even if the company has formidable growth opportunities; (since the majority of the shares were rectricted)to account for the fund raising difficulties (that now seem over) and the delay of the assignment of federal funds to the states. We announce also that next fall we will have a substantial shift in the investment strategy and a change in the base currency of the fund.
EUROPEAN BOND The fund maintains a very conservative investment policy, with a bias for variable rate bonds so as to contain market risk.
ASIAN OPPORTUNITY Equity market remained generally unchanged during the first six months of the year. Several factors created uncertainty among investors. China tried to slow its economic growth with restrictions in the real estate, construction and production segment. Strong growth pushed oil prices from US$ 35 to US$ 50, putting global consumption at risk. The Federal Reserve changed its monetary policy towards higher cost of money. The high correlation, Asian countries have versus the global economic cycle and their dependence on oil was reflected in by the markets movement. The second part of the year saw trust returning toward the stock markets. China maintained its growth at around 9.5% and the US consumers did not show any signs of weakness. Inflation in the developed world remained well contained, even as commodity prices saw large advances. This situation pushed markets to new highs in the later part of the year. The fund closed its fiscal year with an increase of 12%, outperforming its benchmark MSCl local Far East by 9.52%. We expect next year to see Japan finally emerging from its deflationary spiral and the fund is largely overweight the country with a sector allocation towards local stocks.
GLOBAL INCOME The fund suffered substantial redemptions which left the directors less of a leeway in the portfolio management. In these circumstances the management had to ensure the fund's continuity and to select a new advisor capable of contributing a new influx of funds.
EUROPEAN SPECIAL SITUATIONS During the fiscal year ended on May 31'' 2005, LEMANIK SlCAV - EUROPEAN SPECIAL SITUATIONS recorded a positive performance of 9.34%. The NAV per share increased from 13.17 to 14,40 Euro. At the same time the benchmark increased by 6.05%. The fund performance has thus been good in relative and absolute terms. The manager has been cautious with regards to the stock markets, forecasting a slow economic activity in Europe. Once again though the markets' reaction in the light of a sluggish economy have been surprising. The Italian market has been mainly driven by the oil related stocks and by the renewed activity (and rumours) in banking and manufacturing industries. The fund has underperformed the benchmark until first quarter 2005 when the markets have receded swiftly. The fund has reacted very well in such situation, thank to the implementation of hedging strategies (sale of fut Ure contracts). The high oil price has up to now failed to impact significantly on corporate earnings thank mainly to the deflationary effect coming from a steep increase in productivity from Asian manufacturers. We nonetheless believe that the risk of inflation and thus an increase in interest rates is still present. Would this be the case, some sectors could be badly hurt, especially the real estate market, so important in offsetting the negative effects that a sluggish economy could have had on consumer spending.
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LEMANIK SICAV
The manager will probably keep the net equity exposure between 30% and 35% through value based investments and special situations like mergers and corporate restructuring. The objective is to maintain a low correlation to equity markets and to produce positive absolute returns reducing volatility and maximum drawdown by the implementation of hedging strategies.
ITALY After posting a result of + I 1.12% in the previous period, also in the period under review (June 2004 - May 2005) the Italian equity market was able to rebound with a result of + 18.04%. The Italy compartment in all this period maintained an equity share around 37% on average, thus stressing its feature as a "moderately balanced" compartment. On consideration of this investment policy, the compartment was able to beat the Mibtel index performance, with a t. 10.09% , with a steady low level of risk, and with funds under management on a considerable increase, having reached 180 mio. This result was obtained thanks to a careful stock selection. These stocks such as Danieli, Dada, Esprinet, warr.Milano, Vittoria Ass, performed markedly better than the index.
EURO OPPORTUNITIES CP Starting on 1st July 2001, the Euro Equity CP fund has been managed with a methodology aimed at protecting the initial investment, i.e. at ensuring that the Nav of the fund reached at least the July 2001 pricing of 10.14 f over a five year period. The protection is ensured by a dynamic, quantitative technique which indicates the percentage to be invested in equity and bonds. The initial amount invested in equity was 50%; subsequently this percentage was gradually reduced owing to the decline of equity markets. Indeed the algorithm requires that a fall in the Nav is followed by a decline in the amount invested in risky assets (Le. equity) and consequently an increase in the percentage invested in bonds. Vice versa, in case of an increase in the Nav of the fund, the percentage allocated in equity can be increased, and that invested in bonds decreased. Starting from April 2002, the algorithm required the percentage invested in equity to be reduced to zero, and it remained substantially unchanged ever since. Therefore the fund was not able to benefit from the increase in equity markets in 2003 and the early months of 2004. However, the objective of protecting the capital at the end of the above mentioned period is fully achievable, also thanks to an OTC option written with an Italian primav financial institution.
As far as the bond component of the fund is concerned, it has necessarily been invested in bonds, maturing around July 2006. Preference has been given to bonds issued by EU governments, although a few corporate bonds with AAA rating are included. No unrated bonds have been included. The strategy adopted led to an out performance with respect to the benchmark, composed by the Eurostoxx 50 index at 60% and by Citigroup Euro 3 - 5 years at 40%, by a percentage which in the period July 2001 to May 2005 was 3.16%.
CONVERTIBLE BOND & EQUITY (formerly Convertible Bond) The price of the fund has decreased from € 11.15 (28'h May 2004) to f 9.54 (31" May 2005) for a loss of 14.44%. The GSBB Global Convertible Bond Index has increased by 0.15 % during the same period from 1432.00 to 1434.26. The comparatively weak performance of the fund is basically due to a high liquidity from the month of August 2004 to the month of May 2005. The price decrease of the fund during the first months of 2005 was accentuated by a price adjustment on non quoted securities. The performance of Convertible bonds has been disappointing from the beginning of 2004 until May 2005, basically because of important redemptions by hedge funds specialized in convertible arbitrage. The convertible bond market offers today interesting valuations on a historical basis. The new rules for the fund in force since loth May 2005 allows the fund manager to invest less than 50% in convertible bonds which offers a higher degree of flexibility. The combination of low historically low valuation of convertible bonds and of equities relative to the low interest rates induces the manager to optimism for fiscal year 2005 -2006.
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LEMANIK SICAV
EUROIMPULSE PORTFOLIO The fund is undergoing a transitional period and has suffered substantial redemptions. The directors' task in these circumstances was to reduce the risks as much as feasible by investing only in governmental and supranational fixed rate bonds.
SPRING Undoubtedly positive year for our Sicav that in the period increases its value of beyond 8.24%. thanks to the growth almost constant on all world-wide securities markets. The composition of our NAV to the 31" May 2005 was not substantially different regarding the end of the previous year: a third partly in equities, a third partly in bonds and the remaining in financial instruments, of which 28% approximately in liquid availabilities. To the inside of the various areas, they have been some variations: in the equity one we have closed the positions on the Australian market, increased those on the Indian market and reduced the presence on the USA markets. In the bond one we have replaced the investments in USD with called obligations of high rating but in emergent country currencies (Poland, Turkey) that they have allowed to raise the rendering of the portfolio, to which then has joined also a gain on the exchange rate (in the first half year 2005, Euro has been devaluated regarding these currencies while it is remained substantially stationary regarding the USD). As far as the present and the next future, we have increased of approximately 15% the equity weight expecting larger profits from companies and we reduced the liquidity by almost 15%.
GLOBAL BOND The management of the fund last year was extremely cautious. Long term yields at record lows and the advanced stage of economic recovery seemed to worsen the riskheward profile of longer durations. Floating rate notes were favoured to reduce the interest rate risk of the portfolio. We added few subordinated issues, while focusing on the best ratio between issuer solidity and Libor spread along the credit curve. Trimming currency exposure and concentrating on the denomination currency avoided its relative strength could narrow the performance. Equity investments were limited to few convertibles, thus respecting the fundamental nature of the fund.
GLOBAL INVESTMENT Since I"' March, activity has been concentrated on the reorganisation of the portfolio, in particular on the reduction of individual positions which are larger than 4% - 5% of the net asset value of the fund. Equity investment represented a significant part of total fund assets, and it is actively managed. The fund invests in large capitalization securities with a medium and long term perspective. Exposure to the various economic sectors is based on earnings growth perspectives. As far as currencies are concerned, hedging operations can be made in order to manage currency risks.
FLEXIBLE BLUE (formerly Blue) The price of the fund has decreased from € 643.68 (28'h May 2004) to € 604.14 (31" May 2005) for a loss of 6.14%. The fund was managed in an equity neutral way from October 2004 up until May 2005. This means that the risks were limited through the forward sale of equity indices and foreign currencies. The equity portfolios were not able to do better than the underlying indices. This is the reason why the result from October 2004 to May 2005 was practically even.
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LEMANIK SICAV
WORLD PORTFOLIO EQUITIES Since 1" March, activity has been concentrated on the reorganisation of the portfolio, in particular on the reduction of individual positions which are larger than 4% - 5% of the net asset value of the fund. The net equity exposure of the fund for the period just ended was around 80% and the equity part was actively managed. The fund invests in large capitalization securities with a medium and long term perspective. Exposure to the various economic sectors is based on earnings growth perspectives. As far as currencies are concerned, hedging operations can be made in order to manage currency risk.
FLEX DURATION (formerly World Bonds) The portfolio which is invested mainly in top quality bonds denominated in Euro posted good returns in the course of the year while maintaining a particularly low volatility. In the meantime the fund has been gradually invested in "grandfathered" bonds which exempt the fund from euro-taxation. The fund's duration has been actively managed through the use of futures on the German Bund.
FLEX STRATEGY During this year, the sub-fund has been invested in its reference benchmark S & P500 without taking any currency risks. US indices have not realised good performances, but only a marginal movement, maybe because of the less attractive valuations than the European indices, maybe because of the monetary tightening. In spite of the upward and downward movements, the sub-fund has been able to manage the volatility but has not been able to perform, because of the underlying market.
EURO OPPORTUNITIES CP II The fund is managed with a methodology aimed at protecting the initial investment: the operations and the variations in the equity component or bond component will be determined only based on the market trends and as a result of a mathematical formula. The equity component tracks the Eurostoxx index while the bond component (in a prevalent way during all this review period) has been composed of 4 highly rated government issues.
FLEX IDEA (formerly Calcio Manager) The sub-fund is exposed to the Japanese market; even this market has been in a trading range for a long period. Finally in the last months the index seems to be set up to rise and therefore the sub- fund is ready to perform.
September 1,2005 The Board of Directors
Notice: The information in this report represents historical data and is not an indication of future results
11
Deloitte Deloitte Consulting SaRL 560, rue de Neudorf L-2220 Luxembourg B.P. 1173 L-1011 Luxembourg
To the Shareholders of LEMANIK SICAV (Investment Company with Variable Capital with multiple compartments)
Following our appointment by the Annual General Meeting of Shareholders, we have audited the financial statements, which consist of the combined statement of net assets, the combined statement of operations and other changes in net assets and the notes to the financial statements of LEMANIK SICAV (Investment Company with Variable Capital with multiple compartments) as well as the statement of net assets, the statement of operations and other changes in net assets, and the statement of investments and other net assets of each of its compartments for the year ended May 31, 2005. 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 as evaluating the overall financial statements’ presentation. We believe that our audit provides a reasonable basis for our opinion.
The financial statements include various unquoted investments disclosed in the statement of investments and other net assets under the heading “Other transferable securities - shares” for an amount of USD 142,537.58 (1.07% of the total net assets) in the compartment Active Growth, USD 54,596.52 (3.02% of the total net assets) in the compartment Global Income, EUR 378.07 (0.002% of the total net assets) in the compartment European Special Situations and EUR 32,378.46 (0.73% of the total net assets) in the compartment Convertible Bond & Equity. The financial statements also include quoted investments disclosed in the statement of investments and other net assets under the heading “Transferable securities admitted to another regulated market-shares’’ for an amount of USD 895,873.50 (6.75% of the total net assets) in the compartment Active Growth and EUR 218,364.83 (4.87% of the total net assets) in the compartment Convertible Bond & Equity. These investments have been stated at fair value as determined by the Board of Directors of the Company in the absence of readily ascertainable or representative market values. We have not been able to obtain sufficient information to assess the adequacy of this fair value and, because of the inherent uncertainty of valuation, the Board of Directors’ estimates of fair value may differ significantly from the value that would have been used had a ready market existed, and the difference could be material.
In our opinion, except for any adjustments to the financial statements that might have been found to be necessary had we been able to obtain sufficient evidence concerning the valuation of the assets mentioned in the previous paragraph, the attached financial statements described above give, in conformity with the Luxembourg legal and regulatory requirements, a true and fair view of the financial position of LEMANIK SICAV (Investment Company with Variable Capital with multiple compartments) and of each of its compartments at May 31, 2005 and the results of their operations and changes in their net assets for the year then ended.
Supplementary information 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 observations to make concerning such information in the context of the financial statements taken as a whole.
DELOITTE SA Reviseur d’entreprises
Partner Partner
September 1, 2005 Audit. Tax. Consulting. Financial Advisory.
Member of Deloitte Touche Tohrnatsu
12 Societe a Rerponrabilite Limitee au capital de 35.000 EUR RCS Luxembourg B 54.931 Autorisation d’Ctablissement: n‘ 96.519
ASSETS Portfolio: - cost - Net unrealised results
Cash & other liquid assets: - Cash at bank - Time deposits - Deposits on futures
LEMANIK SICAV
STATEMENT OF NET ASSETS as at May 31,2005
Notes COMBINED GLOBAL , .CTIVE EUROPE BALANCED GROWTH BOND
2a
Other assets:
- Receivables on investments sold - Receivables on subscriptions - Dividends 8 coupons - Bank interest - Interest receivable on bonds - Prepaid expenses
- Unrealised gain on forward foreign exchange contracts - Other receivables
- Formation expenses, net 2f
- Unrealised gain on future contracts 7 6
LIABILITIES - Unrealised loss on forward foreign exchange contracts - Unrealised loss on futures contracts -Taxesandexpensespayable I Payables on redemptions
6 7
Payables on securities purchased
NET ASSETS
Net asset value per share Number of shares
Net asset value per share category A Number of shares category A outstanding
Net asset value per share category B Number of shares category B outstanding
Net asset value per share category C Number of shares category C outstanding
Net asset value per share category D Number of shares category D outstanding
- Receivables on investments sold - Receivables on subscriptions - Dividends 8 coupons - Bank interest - Interest receivable on bonds - Prepaid expenses
- Unrealised gain on forward foreign exchange contracts - Other receivables
- Formation expenses, net 2f
- Unrealised gain on future contracts 7 6
LIABILITIES - Unrealised loss on forward foreign exchange contracts - Unrealised loss on futures contracts - Taxes and expenses payable - Payables on redemptions
6 7
Payables on securities purchased
NET ASSETS
Net asset value per share Number of shares
Net asset value per share category A Number of shares category A outstanding
Net asset value per share category B Number of shares category B outstanding
Net asset value per share category C Number of shares category C outstanding
Net asset value per share category D Number of shares category 0 outstanding
4,923,806.84 1,083,181 2 4 4,830,193.16 Cash & other liquid assets: - Cash at bank - Time deposits - Deposits on futures
I ,296,977.1 7 6.648.30 1,121,624.85 0.00 402,409.62 0.00
1,242.34 138,490.34 1,190.58
Other assets: - Formation expenses, net - Receivables on investments sold - Receivables on subscriptions - Dividends & coupons - Bank interest - Interest receivable on bonds - Prepaid expenses
- Unrealised gain on forward foreign exchange contracts - Unrealised gain on futures contracts 7
6 . - Other receivables
2f 559.37 0.00
7,487.04 7.179.87 2,851.96
0.oc 0.oc 0.oc 0.oc 0.oc
5,971,086.82
0.00 0.00
22,375.00 2,381.97
834.08 220,030.99
0.00 0.00 0.00 0.00
17,608,453.76
0.00 45,400.00 44,680.86 20,007.68
162.15 81,274.41 7,135.1 8 6,445.53
9,416.00 0.00 0.00 0.00
224.03 6,330,618.04
3,934.39
152.16 0.00 0.00
4,698.74 312.34
0.00 0.00 0.00 0.00 0.00
1,635,892.74 - LIABILITIES - Unrealised loss on forward foreign exchange contracts - Unrealised loss on futures contracts -Taxesandexpensespayable - Payables on redemptions
NET ASSETS 17,498,365.22 6,254,701.05 1,588,291.59 5,942,569.56
Net asset value per share Number of shares
Net asset value per share category A Number of shares category A outstanding
798.81 5.81 1.74'
Net asset value per share category B Number of shares category B outstanding
8.921.79 604.14 117.0 700.481 2,629.024 I 1 ,I 11.36:
Net asset value per share category C Number of shares category C outstanding
8.96 103.14 1,953,354.653 50.000
Net asset value per share category D Number of shares category D outstanding
9.52 500.000
The accompanying notes are an integral part of these financial statements.
16
LEMANIK SICAV
STATEMENT OF NET ASSETS (continued) as at May 31,2005
Notes FLEX FLEX EURO
(FORMERLY WORLD CP II DURATION STRATEGY OPPORTUNITIES
ASSETS (in EUR) (in EUR) (in EUR) Portfolio: - cost 40,772,765.57 29,048,886.30 21,071,389.01 - Net unrealised results 2a 824,203.1 9 194,107.70 624,759.19
BONDS)
FLEX IDEA (FORMERLY
CALCIO MANAGER)
(in EUR)
1,610,651.12 2,553.55
1,613,204.67 41,596,968.76 29,242,994.00 21,696,148.20 Cash & other liquid assets: - Cash at bank - Time deposits - Deposits on futures
175,013.20 1,080,019.14 0.00 1,872,625.04
2,364,691.25 2,744,443.08
413,046.16 0.00
367.885.69
11,469,881.09 0.00
299,108.48
Other assets:
- Receivables on investments sold - Receivables on subscriptions - Dividends & coupons - Bank interest - Interest receivable on bonds - Prepaid expenses - Unrealised gain on futures contracts 7 - Unrealised gain on forward foreign exchange contracts 6 - Other receivables
~ Formation expenses, net 2f 1,410.00 0.00 0.00 0.00
1,524.82 456,137.69
0.00 300,075.28
1,068.02 0.00
1,337.26 0.00
31,691.69 0.00
795.98 1 97,698.58
0.00 160.61 0.00
0.00 0.00
27,785,368.97
2,051.53 0.00 0.00 0.00
1,309.05 4,143.45
0.00 0.00 0.00 0.00
2,401,640.55
559.33 0.00
54,226.26 0.00
34,593.23 446,321.23
0.00 0.00 0.00 0.00
53,901,658.38 32,542,9 I 4.26 LIABILITIES - Unrealised loss on forward foreign exchange contracts 6 - Unrealised loss on futures contracts 7 - Taxes and expenses payable - Payables on redemptions - Payables on securities purchased
0.00 125,447.05 15,783.93
0.00 0.00
0.00 0.00 0.00 0.00
88,818.05 89,262.83 4,930.25 32,407.41
0.00 0.00 93,748.30 121,670.24
0.00 21 1,250.00 112,392.44
2,193.84 3,674,391 -96 4,000,228.24 141,230.98
NET ASSETS 2,260,409.57 49,901,430.14 32,449,165.96 27,663,698.73
Net asset value per share Number of shares
987.35 107.05 32,865.000 258,412.692
887.72 2.546.31 7
Net asset value per share category A Number of shares category A outstanding
1,057.59 47.092.01 7
Net asset value per share category B Number of shares category B outstanding
5,116.66 18.993
Net asset value per share category C Number of shares category C outstanding
Net asset value per share category D Number of shares category D outstanding
The accompanying notes are an integral part of these financial statements
17
.- . -. . . . . .. . . _. - ... . -
LEMANIK SICAV
STATEMENT OF OPERATIONS AND OTHER CHANGES IN NET ASSETS
For the year ended May 31,2005
Notes GLOBAL ACTIVE EUROPEAN COMBINED BALANCED GROWTH BOND
(in USD) (in EUR) (in USD) (in EUR) NET ASSETS AT THE BEGINNING OF THE YEAR 402,206,030.85 2,319,037.98 17,237,574.98 139,354.22
INCOME Income from investments: - Dividends, net ~ Bond interest, net - Bank interest, net Other income
- Placing agent and correspondent bank fees 19,260.47 0.00 0.00 0.00 I Registrar and transfer agent fees 275,003.07 373.50 4,217.43 100.00
Other expenses: ~ Annual tax - Amortisation of formation expenses - Audit and legal fees - Printing and publishing expenses - Administration and other expenses - Bank interest
NET RESULT ON INVESTMENTS Net realised result on: - investments - foreign exchange I futures contracts NET REALISED RESULT Change in net unrealised appreciationl(depreciati0n) on: - investments I forward foreign exchange contracts - futures contracts RESULT OF OPERATIONS
- Registrar and transfer agent fees 30,852.54 3,136.12 12,770.52 115,937.00 - Placing agent and correspondent bank fees 0.00 0.00 0.00 0.00
Other expenses: - Annual tax - Amortisation of formation expenses - Audit and legal fees - Printing and publishing expenses - Administration and other expenses - Bank interest
5 17,067.96 0.00
21,146.65 6,516.71
11 1,197.41
1,505,401.68 13,457.07 I
NET RESULT ON INVESTMENTS Net realised result on: - investments - foreign exchange - futures contracts NET REALISED RESULT Change in net unrealised appreciationl(depreciation) on: - investments - forward foreign exchange contracts - futures contracts RESULT OF OPERATIONS
The accompanying notes are an integral pafl of these financial statements
19
LEMANIK SICAV
STATEMENT OF OPERATIONS AND OTHER CHANGES IN NET ASSETS (continued)
For the year ended May 31,2005
NET ASSETS AT THE BEGINNING OF THE YEAR
INCOME Income from investments: - Dividends, net - Bond interest, net - Bank interest, net Other income
Notes EURO OPPORTUNITIES
CP
(in EUR)
EXPENSES Fees: - Advisory fees 3 - Performance fees 4 - Custodian and administration fees - Placing agent and correspondent bank fees - Registrar and transfer agent fees
Other expenses: - Annual tax - Amortisation of formation expenses - Audit and legal fees - Printing and publishing expenses - Administration and other expenses - Bank interest
5
NET RESULT ON INVESTMENTS Net realised result on: - investments - foreign exchange - futures contracts NET REALISED RESULT Change in net unrealised appreciationl(depreciati0n) on: - investments - forward foreign exchange contracts - futures contracts RESULT OF OPERATIONS
The accompanying notes are an integral part of these financial statements
20
LEMANIK SICAV
STATEMENT OF OPERATIONS AND OTHER CHANGES
For the year ended May 31,2005
Notes
NET ASSETS AT THE BEGINNING OF THE YEAR
INCOME Income from investments: - Dividends, net - Bond interest, net - Bank interest, net Other income
EXPENSES Fees: - Advisory fees 3 - Performance fees 4 - Custodian and administration fees - Placing agent and correspondent bank fees I Registrar and transfer agent fees
Other expenses: - Annual tax - Amortisation of formation expenses - Audit and legal fees - Printing and publishing expenses - Administration and other expenses - Bank interest
NET RESULT ON INVESTMENTS Net realised result on: - investments - foreign exchange - futures contracts NET REALISED RESULT Change in net unrealised appreciationl(depreciati0n) on: - investments - forward foreign exchange contracts - futures contracts RESULT OF OPERATIONS
Subscriptions of shares Redemptions of shares
NET ASSETS AT THE END OF THE YEAR
5
IN NET ASSETS (continued)
GLOBAL GLOBAL FLEXIBLE WORLD BOND INVESTMENT BLUE PORTFOLIO
(FORMERLY BLUE) EQUITIES (in EUR) (in EUR) (in EUR) (in EUR)
0.00 - Registrar and transfer agent fees 3,033.00 - Placing agent and correspondent bank fees
Other expenses: - Annual tax - Amortisation of formation expenses - Audit and legal fees - Printing and publishing expenses - Administration and other expenses - Bank interest
NET RESULT ON INVESTMENTS Net realised result on: - investments - foreign exchange - futures contracts NET REALISED RESULT Change in net unrealised appreciation/(depreciation) on: - investments - forward foreign exchange contracts - futures contracts RESULT OF OPERATIONS
Subscriptions of shares Redemptions of shares
NET ASSETS AT THE END OF THE YEAR
5 23,618.26 302.31
20,726.66 5,614.25
35,606.82 0.00
588,677.27
846,773.52
147,260.57 403,462 -90
(1,014,150.00) 383,346.99
I ,110,920.19 0.00
1,263,317.18 (230,950.00)
21,357,423.01 (1 0,532,130.32) 10,825,292.69
IN NET ASSETS (continued)
FLEX OPPORTUNITIES FLEX IDEA STRATEGY CP II (Formerly Calclo
(in EUR) (in EUR) (in EUR) 27,979,570.97 35,667,622.05 190,659.88
Number of A Class capitalisation shares outstanding - outstanding at the beginning of the year - 2,181,382.399 - subscribed - 2,023,147.389 - redeemed - 689,575.625
- 3,514,954.063 - outstanding at the end of the year
Net asset value per A Class capitalisation share - as at 31.05.2005 - as at 31.05.2004 - as at 31.05.2003
9.44 8.45 5.37
Number of B Class capitalisation shares outstanding
- subscribed - redeemed 3,892.432 - outstanding at the end of the year - 86,546.994
- outstanding at the beginning of the year - 64,360.559 - 26,07a.867
Net asset value per B Class capitalisation share - as at 31.05.2005 - as at 31.05.2004 - as at 31.05.2003
132.83 117.85
Number of C Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed - redeemed - outstanding at the end of the year
Net asset value per C Class capitalisation share - as at 31.05.2005 - as at 31.05.2004 - as at 31 -05.2003
Number of D Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed - redeemed - outstanding at the end of the year
Net asset value per D Class capitalisation share - as at 31.05.2005 - as at 31 -05.2004
The accompanying notes are an integral part of these financial statements
23
LEMANIK SICAV
STATISTICAL INFORMATION (continued) as at May 31,2005
Total net assets - as at 31.05.2005 - as at 31.05.2004 - as at 31.05.2003
Number of capitalisation shares outstanding - outstanding at the beginning of the year - subscribed
- redeemed 252,945.21 9 3:478:212.650 338i978.085 - outstanding at the end of the year - 1,625,775.308 11,054,573.499 383,018.816
Net asset value per capitalisation share - as at 31.05.2005 - as at 31.05.2004 - as at 31 -05.2003
14.40 13.17 12.80
Number of A Class capitalisation shares outstanding I outstanding at the beginning of the year 22,087.134
16.15 9.80 14.69 9.82 13.01 9.98
- subscribed - redeemed 9,000.000 - outstanding at the end of the year I 3,087. I 34
Net asset value per A Class capitalisation share - as at 31 -05.2005 - as at 31.05.2004 - as at 31.05.2003
USD 12.39 USD 12.42 USD 12.33
Number of B Class capitalisation shares outstanding - outstanding at the beginning of the year 1,464,308.707 - subscribed 5,157.000 - redeemed 1,314,588.957 - outstanding at the end of the year 154,876.750
Net asset value per B Class capitalisation share - as at 31.05.2005 EUR 8-65 - as at 31.05.2004 EUR 8.75 - as at 31.05.2003 EUR 9-01
Number of C Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed - redeemed - outstanding at the end of the year
Net asset value per C Class capitalisation share - as at 31.05.2005 - as at 31 -05.2004 - as at 31.05.2003
Number of I3 Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed - redeemed - - outstanding at the end of the year
Net asset value per D Class capitalisation share - as at 31.05.2005 - as at 31.05.2004
The accompanying notes are an integral part of these financial statements.
24
LEMANIK SICAV
STATISTICAL INFORMATION (continued) as at May 31,2005
Total net assets - as at 31.05.2005 - as at 31.05.2004 - as at 31.05.2003
Number of capitalisation shares outstanding - outstanding at the beginning of the year - subscribed
CONVERTIBLE EUROIMPULSE SPRING GLOBAL BOND BOND AND EQUITY PORTFOLIO
- redeemed 775,249.078 1,461.851 54.664 - outstanding at the end of the year 470,463.316 25,881.965 923.61 I
Net asset value per capitalisation share - as at 31.05.2005 - as at 31.05.2004 - as at 31.05.2003
Number of A Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed - redeemed
9.54 6.47 9,602.35 11.15 6.72 8,871.47 8.73 6.94 8, i 8 a m
- outstanding at the end of the year
Net asset value per A Class capitalisation share - as at 31.05.2005 - as at 31 -05.2004 - as at 31.05.2003
Number of B Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed
-- - redeemed - outstanding at the end of the year
Net asset value per B Class capitalisation share - as at 31.05.2005 - as at 31.05.2004 - as at 31.05.2003
Number of C Class capitalisation shares outstanding - outstanding at the beginning of the year - 1,123,497.537 - subscribed - 1,244,158.608 - redeemed - 414,301.492 - outstanding at the end of the year - 1,953,354.653
Net asset value per C Class capitalisation share - as at 31.05.2005 - as at 31.05.2004 - as at 31.05.2003
8.96 8.81 9.04
Number of D Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed - redeemed - outstanding at the end of the year
500.000
500.000
Net asset value per D Class capitalisation share - as at 31.05.2005 - as at 31.05.2004
9.52 9.36
The accompanying notes are an integral part of these financial statements.
25
LEMANIK SICAV
STATISTICAL INFORMATION (continued) as at May 31,2005
Total net assets - as at 31 -05.2005 - as at 31.05.2004 - as at 31.05.2003
Number of capitalisation shares outstanding - outstanding at the beginning of the year - subscribed
GLOBAL FLEXIBLE WORLD FLEX DURATION INVESTMENT BLUE PORTFOLIO (FORMERLY WORLD
- outstanding at the end of the year 5,811.741 47,092.017
Net asset value per A Class capitalisation share - as at 31.05.2005 798.80 1,057.59 - as at 31.05.2004 342,218.63 763.41 1,028.36 - as at 31.05.2003 333,177.84 715.60 1,024.76
Number of B Class capitalisation shares outstanding - outstanding at the beginning of the year 690.827 2,119.924 33o,a31.429 1 1.032 - subscribed 487.283 1,574.575 i ,816.938 7.961 - redeemed 477.629 1,065.475 321,537.004 - outstanding at the end of the year 700.481 2,629.024 11,111.363 18.993
Net asset value per B Class capitalisation share - as at 31.05.2005 - as at 31.05.2004 - as at 31 -05.2003
Number of C Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed
- redeemed - outstanding at the end of the year 50.000
Net asset value per C Class capitalisation share - as at 31.05.2005 - as at 31 -05.2004 - as at 31.05.2003
Number of 0 Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed
103.14 97.30
- redeemed - outstanding at the end of the year
Net asset value per 0 Class capitalisation share - as at 31.05.2005 - as at 31.05.2004
The accompanying notes are an integral part of these financial statements.
26
LEMANIK SlCAV
STATISTICAL INFORMATION (continued) as at May 31,2005
FLEX IDEA (FORMERLY CALCIO
MANAGER)
FLEX EURO STRATEGY OPPORTUNITIES
(in EUR) (in EUR)
CP II
(in EUR) Total net assets - as at 31.05.2005 -as at 31.05.2004 - as at 31.05.2003
32,449,165.96 27,979,570.97 16,807.545.50
27,663,698.73 35,667,622.05 7,202,573.38
2,260,409.57 190,659.88
Number of capitalisation shares outstanding - outstanding at the beginning of the year - subscribed
25,617.000 1 1.667.000
352,440.81 3 12,838.78a
136.375 2,349.342
1 06,867.003 258,412.692 2,546.317
- redeemed 4,419.000 - outstanding at the end of the year 32,865.000
Net asset value per capitalisation share - as at 31.05.2005 987.35 - as at 31.05.2004 1,092.23 - as at 31.05.2003 1,005.12
107.05 101.20 99.67
887.72 970.90
Number of A Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed - redeemed - outstanding at the end of the year
Net asset value per A Class capitalisation share - as at 31.05.2005 - as at 31.05.2004 - as at 31.05.2003
Number of B Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed - redeemed - outstanding at the end of the year
Net asset value per B Class capitalisation share - as at 31 -05.2005 - as at 31.05.2004 - as at 31.05.2003
Number of C Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed - redeemed - outstanding at the end of the year
Net asset value per C Class capitalisation share - as at 31.05.2005 - as at 31.05.2004 - as at 31.05.2003
Number of 0 Class capitalisation shares outstanding - outstanding at the beginning of the year - subscribed - redeemed - outstanding at the end of the year
Net asset value per D Class capitalisation share - as at 31.05.2005 - as at 31.05.2004
The accompanying notes are an integral part of these financial statements.
27
LEMANIK SICAV
GLOBAL BALANCED
STATEMENT OF INVESTMENTS AND OTHER NET ASSETS as at May 31,2005
(in EUR)
Currency Quantity Description cost Market % of Net Value Assets
Transferable securities admitted to an official Stock Exchanqe
Shares
Banks and other credit institutions
EUR 3,250 BANCA IFlS S.P.A. BANCA IFlS AZ EUR 1,448 BANCA POPOLARE DI LODl EUR 2.474 BANCHE POPOLARI UNITE SCRL
The accompanying notes are an integral part of these financial statements.
39
LEMANIK SICAV
ASIAN OPPORTUNITY
STATEMENT OF INVESTMENTS AND OTHER NET ASSETS (continued) as at May 31,2005
(in USD)
Currency Quantity Description
J PY 20,000 FIRST JUNKEN JPY 38,000 MlTSUBlSHl FUDOSAN CO
Chemistry JPY 20,000 CEMEDINE J PY 20,000 TOKYO OHKA KOGYO
Clock and watchmaking industry J PY 40,000 CITIZEN WATCH J PY 200,000 RHYTHM WATCH
Electronics and semiconductors J PY 50,000 KOA J PY 36,000 TAIYO YUDEN CO LTD JPY 80,000 TEIKOKU TSUSHIN J PY 65,000 NlCHlCON J PY 27.000 NIPPON CERAMIC CO LTD
Electro technical and electronic industry J PY 21,000 USHIO INC JPY 48,000 KOKUSAN DENKI J PY 80,000 TOSHIBA TEC
Graphic and publishing industry J PY 4,000 MOSHl MOSHO HOTLINE
Holding and finance companies J PY 18,000 CIRCLE K JAPAN J PY 8,000 T & D HOLDINGS JPY 100,000 NIKKO SECURITIES CO J PY 15,000 MlSUMl GROUP JPY 70 S'TOMO MlTSUl FlNL J PY 45 MlTSUBlSHl TOKYO FIN
Building and building materials EUR 32,650 AKTOR S.A. TECHNICAL COMPANY EUR 12,100 ITALMOBILIARE S.p.A.-RNC EUR 28,530 J & P-AVAX SA. EUR 58,010 MlCHANlKl S.A.
Electro technical and electronic industry EUR 1 1,400 SAES GElTERS-RNC
Energy and water supply EUR 1,800 E. ON AG EUR 14,200 ENDESA S.A. EUR 28,940 ENEL S.p.A. EUR 46,430 SNAM RETE GAS
Government bonds EUR 3,400 BELGACOM S A .
Graphic and publishing industry EUR 30,700 CALTAGIRONE EDITORE EUR 25,280 MONDADORI
The accompanying notes are an integral part of these financial statements
72
LEMANIK SICAV
SPRING
GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS As at May 31,2005
(in percentage of net assets)
Italy
Germany
Netherlands
United Kingdom
Japan
Sweden
Spain
United States
Austria
Supranational
Finland
Switzerland
Argentina
France
14.01%
11.27%
7.28%
7.27%
5.26%
4.99%
4.66%
4.61%
4.22%
2.33%
1.93%
1.15%
0.56%
0.51 %
TOTAL 70.05%
The accompanying notes are an integral part of these financial statements.
73
LEMANIK SICAV
SPRING
INDUSTRIAL CLASSIFICATION OF INVESTMENTS As at May 31,2005
(in percentage of net assets)
Banks and other credit institutions
Government bonds
Energy and water supply
Telecommunication
Tobacco and alcohol
Holding and finance companies
Mines and steel works
Mutual funds
Precious metal and stones
Bonds issued by supranational institutions
Retail trade
Paper rand wood industry
Oil
Graphic and publishing industry
Internet services
Insurance
Transportation
Chemistry
Miscellaneous services
Textile and clothing industry
TOTAL
19.66%
9.78%
5.76%
3.56% 3.53%
3.39%
3.37%
3.01%
2.48%
2.33%
2.14%
1.93%
1.73%
1.59%
1.37%
1.28%
1.14%
1.12%
0.52%
0.36%
70.05%
The accompanying notes are an integral part of these financial statements
74
LEMANIK SICAV
GLOBAL BOND
STATEMENT OF INVESTMENTS AND OTHER NET ASSETS as at May 31,2005
(in EUR)
Currency Quantity/ Description cost Market % of Net Nominal Value Assets
Transferable securities admitted to an official Stock Exchanue
Shares
Food products and non-alcoholic drinks EUR 100,000 PARMALAT FINANZIARIA S.p.A.
Telecommunication USD 1 TELEFONICA DE ARGEN-SPON ADR
Total Shares
Bonds
Banks and other credit institutions EUR EUR EUR
EUR
EUR
EUR EUR EUR EUR
EUR
EUR EUR EUR EUR
1,000,000 500,000 100,000
275,000
360,000
200,032 500,000 500,000 300,000
100,000
146,157 600,000 300,000 aoo,ooo
ABN AMRO BANK NV 12-May-2009 4.625% BANCA ITALEASE 15-Oct-2009 FRN BANCA ANTONVENETA S.P.A. 1 3-JuI-2007 FRN BNCA POP COMMERCIO E IND 27-Jun-2011 3.442% BANCA POP EMlLlA ROMAGNA 28-Jun-2012 3.042% BANCA POPOLARE Dl LODl22-Dec-2006 FRN BANQUE FED CRED MUTUEL 29-Dec-1949 FRN COMMERZBANK AG 19-Apr-2012 6.2% DEPFA ACS BANK 29-Oct-2008 3% ENEL-SOCIETA PER AZlONl 20-May-201 1 4.125% MOSAI 1 A 30-Now2018 FRN DEN NORSKE BANK 15-Sep-2013 FRN RABOBANK NEDERLAND 28-Jul-2015 FRN SAN PAOLO IMI 28-Jun-2016 FRN
Transportation CHF 440 UNIQUE ZURICH AIRPORT 48,742.85 50,139.27 0.80% EUR 2,500 AUTOROUTES DU SUD DE LA FRAN 97,948.84 104,800.00 1.68% EUR 3,600 DEUTSCHE POST AG-REG 66,784.58 68,688.00 1.10% HKD 20,600 CHINA SHIPPING DEVELOPMENT-H 12,086.31 13,342.03 0.21%
225,562.58 236,969.30 3.79%
Total Shares 2,942,884.70 2,966,806.79 47.43%
Bonds
Bonds issued by supranational institutions CHF 100,000 EUROPEAN INVESTMENT BANK
The accompanying notes are an integral part of these financial statements.
93
LEMANIK SlCAV
WORLD PORTFOLIO EQUITIES
GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS As at May 31,2005
(in percentage of net assets)
United states
Italy
Switzerland
Germany federal rep
France
Spain
Korea
Finland
Netherlands
United kingdom
Brazil
Austria
Ireland
Japan
Canada
13.76%
10.65%
10.32%
9.04%
7.73%
4.48%
4.08%
3.65%
5.00%
3.09%
2.78%
2.08%
2.02%
1.37%
1.23%
TOTAL 81.28%
The accompanying notes are an integral part of these financial statements.
94
LEMANIK SICAV
WORLD PORTFOLIO EQUITIES
INDUSTRIAL CLASSIFICATION OF INVESTMENTS As at May 31,2005
(in percentage of net assets)
Oil
Energy and water supply
Machinery and apparatus construction
Pharmaceutical and cosmetics industry
food products and non-alcoholic drinks
Insurance
Electronics and semiconductors
Office supplies and computer
Paper and wood industry
Holding and finance companies
Transportation
Telecommunication
Non ferrous metals
Banks and other credit institutions
Electro technical and electronic industry
Miscellaneous trade
Road vehicles
Textile and clothing industry
Internet services
Tobacco and alcohol
Retail trade
Mutual funds
Building and building materials
10.06%
9.90%
6.24%
5.47%
4.70%
4.10%
4.08%
4.00%
3.65%
3.37%
2.96%
2.88%
2.78%
2.69%
2.62%
2.31%
1.91 Yo
1.51%
1.40%
1.39%
1.24%
1.23%
0.79%
TOTAL 81 -28%
The accompanying notes are an integral part of these financial statements.
95
LEMANIK SlCAV
FLEX DURATION lFormerly World Bonds)
STATEMENTOFINVESTMENTSANDOTHERNETASSETS as at May 31.2005
(in EUR)
Currency Nominal Description cost Market % of Net Value Assets
Transferable securities admitted to an official Stock Exchange. Bonds
Banks and other credit institutions EUR 3,000,000 BAYER HYPO- VEREINSBANK 06-Dec-2009
FRN EUR 3,516,795 BK NEDERLANDSE GEMEENTEN 07-May-
2012 6.125% EUR 2,500,000 KOMMUNALKREDIT AG 14-Sep-2007 FRN EUR 2,000,000 UBS AG JERSEY BRANCH 04-Sep-2008 0.5%
Bonds issued by supranational institutions EUR 8,000,000 COUNCIL OF EUROPE 20-Jan-201 1 4% EUR 3,615,198.29 COUNCIL OF EUROPE 24-Sep-2018 FRN EUR 1,417,674.28 INTL BK RECON 8. DEVELOP
25-F eb-2013 5.375%
Government bonds EUR 8,000,000 AUSTRIA 04-Jan-201 1 5.25%
Total transferable securities admitted to an official Stock Exchange, Bonds
Transferable securities admitted to an other reqular market. Bonds
Holding and finance companies EUR 2,500,000 BBVA CAPITAL FUNDING LTD
The accompanying notes are an integral part of these financial statements.
102
... .
LEMANIK SICAV
FLEX IDEA /Formerly Calcio Manaqer)
GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS As at May 31,2005
(in percentage of net assets)
Luxembourg
Belgium
Switzerland
Germany
Jersey
United States
United Kingdom
17.86%
16.24% 13.66%
13.55% 4.43%
2.96% 2.67%
TOTAL 71.37%
INDUSTRIAL CLASSIFICATION OF INVESTMENTS As at May 31,2005
(in percentage of net assets)
Bonds issued by supranational institutions
Banks and other credit institutions
Government bonds
31.52%
23.61 %
16.24%
TOTAL 71.37%
The accompanying notes are an integral part of these financial statements
103
LEMANIK SICAV
NOTES TO THE FINANCIAL STATEMENTS as at May 31,2005
NOTE 1 - GENERAL INFORMATION
LEMANIK SICAV (the "SICAV) was incorporated in Luxembourg on 1st September 1993 for an unlimited period as a "Societe d'lnvestissement a Capital Variable" with compartments under the laws of the Grand-Duchy of Luxembourg.
As at the date of the report, the following compartments are operational:
- LEMANIK SICAV - GLOBAL BALANCED - LEMANIK SICAV - ACTIVE GROWTH - LEMANIK SICAV - EUROPEAN BOND - LEMANIK SICAV -ASIAN OPPORTUNITY - LEMANIK SICAV - GLOBAL INCOME - LEMANIK SlCAV - EUROPEAN SPECIAL SITUATIONS - LEMANIK SICAV - ITALY
LEMANIK SICAV - EURO OPPORTUNITIES CP - LEMANIK SICAV - CONVERTIBLE BOND AND EQUITY
(formerly CONVERTIBLE BOND) - LEMANIK SICAV - EUROIMPULSE PORTFOLIO - LEMANIK SICAV - SPRING - LEMANIK SICAV - GLOBAL BOND - LEMANIK SICAV - GLOBAL INVESTMENT - LEMANIK SICAV - FLEXIBLE BLUE (formerly BLUE)
- LEMANIK SICAV - FLEX STRATEGY - LEMANIK SICAV - EURO OPPORTUNITIES CP I I - LEMANIK SICAV - FLEX IDEA (formerly CALCIO MANAGER)
in EUR (launched at October 30, 1993) in USD (launched at February 25, 1994) in EUR (launched at September 30, 1994) in USD (launched at April 20, 1994) in USD (launched at February 4, 1997) in EUR (launched at September 30, 1998) in EUR (launched at September 30, 1998) in EUR (launched at July 7, 1999) in EUR (launched at July 7, 1999)
in EUR (launched at February 1,2000) in EUR (launched at July 31, 2000) in EUR (launched at September 30, 1994) in EUR (launched at August 27,2000) in EUR (launched at October 18, 2000)
in EUR (launched at April 12, 2002) in EUR (launched at April 12, 2002)
in EUR (launched at February 24,2003) in EUR (launched at March 17,2003) in EUR (launched at June 3,2003)
As at May 10,2005, the compartment - GLOBAL BALANCED changed its currency into EUR (previously USD).
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
4 Valuation of investments in securities
The value of securities listed on any stock exchange or dealt in on any other regulated market is based on the last available price.
In the event that any of the securities held in the compartment portfolios are not listed on any stock exchange or quoted on any other regulated markets or if, with respect to securities listed on any stock exchange or quoted on any other regulated market, the price is not representative of the fair market value of the relevant securities, the value of such securities will be determined based on the reasonably foreseeable sales price determined prudently and in good faith.
Following a resolution taken by the Board of Directors by circular way, effective May 14, 2003, the Members of the Board of Directors of the LEMANIK SICAV have decided to create a Valuation Committee in order to assist them to take decisions with regards to the pricing of the private equity investments of the LEMANIK SICAV in verifying and certifying the valuation of such investments.
104
LEMANIK SICAV
NOTES TO THE FINANCIAL STATEMENTS (continued) as at May 31,2005
The Valuation Committee meets at least twice a year. Its minutes have to be ratified by a Circular Resolution taken by the Board of Directors of LEMANIK SICAV and are only valid when presently jointly. The final decision is taken by the Board of Directors about what prices to take into consideration based on the minutes of the Valuation Committee.
The Valuation Committee is composed by the following persons unless other information given by the Board of Directors:
- M. Carlo CAMPER10 ClANl (until April 27,2005) - M. Luca PARAVlClNl - M. Massimiliano CAGLIERO (until November 16,2004) - M. Marcel ZIMMERMANN (since April 28,2005) - M. Marco SAGRAMOSO (since October 28,2005)
Last Valuation Committee took place on May 18, 2005.
The Board of Directors of the SICAV has decided by circular way, effective May 18, 2005, to update the current price of the following investments:
Eposs Ltd Eposs Ltd Pref Pre-pay Solutions Ltd Ware On Earth Communications Inc Yellowbrix Inc Mendell American, Inc Synxis Corp Pref Ser B Conv The Way To Be Limited Oralscan Laboratories Inc Pref Ser F Conv Regent Energy Corp Accupoll Holdings Corp Yellowmix Series A Pref.
The unrealised gain/ (loss) on outstanding forward exchange contracts is determined on the basis of the forward exchange rates prevailing at valuation date.
4 Valuation of financial futures
Outstanding financial futures are valued on the basis of the last known market prices. The resulting unrealised gains or losses are booked and reflected in the statement of net assets.
d) Net realised profit/ (loss) on sales of investments
The net realised profit/ (loss) on sales of securities is determined on the basis of the average cost of securities sold.
e) Conversion of foreiqn currencies
Bank accounts, other assets and the market value of investments in securities expressed in currencies other than the reference currency of the different compartments are converted at the exchange rate prevailing at valuation date.
105
LEMANIK SICAV
NOTES TO THE FINANCIAL STATEMENTS (continued) as at May 31,2005
Income and expenses expressed in currencies other than the reference currency of the different Compartments are converted at the exchange rate prevailing at payment date.
Profit or loss on foreign exchange is included in the statement of operations.
The cost of securities expressed in currencies other than the reference currency of the different compartments is converted at the exchange rate prevailing at purchase date.
The statements of net assets and the statements of operations and other changes in net asset value are convetted at the exchange rates as at the date of the report. The accounts are consolidated in USD with the following exchange rates as at May 31, 2005: I USD= 1,323068 AUD 1 USD = 108.578245 JPY 1 USD= 1.255004 CAD 1 USD= 3.800000 MYR 1 USD= 1.248149 CHF 1 USD= 54.502221 PHP 1 USD= 0.812744 EUR 1 USD= 7.437463 SEK 1 USD= 0.550334 GBP 1 USD= 1.666585 SGD 1 USD= 7.780199 HKD 1 USD= 40.632431 THB 1 USD= 9,518.388575 IDR
9 Formation expenses
The formation expenses are capitalised and written off on a five-year straight line basis
9) Consolidated financial statements
The consolidated financial statements are expressed in USD.
The various items of the consolidated statement of net assets and the consolidated statement of operations are equal to the sum of the corresponding items of the financial statements of each Compartment converted into USD at the exchange rates prevailing at the closing date.
NOTE 3 - INVESTMENT ADVISORY FEES
A new agreement has been signed with LEMANIK Asset Management Luxembourg S.A. dated May 10, 2005. The Investment Advisor shall be paid at the end of each month a commission at an annual rate of:
~ I .65% calculated on the basis of the average net assets of the compartment - ACTIVE GROWTH ;
- 1.85% calculated on the basis of the average net assets of the compartment - ASIAN OPPORTUNIW ;
1.50% calculated on the basis of the average net assets of the following compartments - GLOBAL INCOME - Class B , - GLOBAL INVESTMENT - Class A , - EUROPEAN SPECIAL SITUATIONS and - ITALY ;
1.90% calculated on the basis of the average net assets of the compartment - WORLD PORTFOLIO EQUITIES ;
1.80% calculated on the basis of the average net assets of the compartment - EUROIMPULSE PORTFOLIO ;
-
-
-
106
LEMANIK SICAV
NOTES TO THE FINANCIAL STATEMENTS (continued) as at May 31.2005
NOTE 3 - INVESTMENT ADVISORY FEES (continued)
-
- 1.70% calculated on the basis of the average net assets of the compartment - FLEXIBLE BLUE ;
1.60% calculated on the basis of the average net assets of the compartment - CONVERTIBLE BOND AND EQUITY ;
1.25% calculated on the basis of the average net assets of the following compartments - GLOBAL BALANCED , - GLOBAL INCOME - Class A, - FLEX STRATEGY , - SPRING and - FLEX IDEA ;
1.00% calculated on the basis of the average net assets of the Compartment - GLOBAL BOND , and - EUROPEAN BOND ;
0.90% calculated on the basis of the average net assets of the compartment - FLEX DURATION Class A ;
0.70% calculated on the basis of the average net assets of the compartment - FLEX DURATION Class B ;
2.00% calculated on the basis of the average net assets of the compartments - EURO OPPORTUNITIES CP, - GLOBAL INVESTMENT Class B and C and - EURO OPPORTUNITIES CP II.
-
-
-
-
-
NOTE 4 - PERFORMANCE FEE
Based on an agreement, dated May 10, 2005 (see note 3), the Investment Advisor shall be paid an additional fee relating to the performance of each compartment as follows:
1. The additional fee, computed on the basis of the last net asset value of the month of each compartment, is fixed at 15% of one twelfth of the surplus realised during the month for the compartments - ACTIVE GROVVTH, - ASIAN OPPORTUNITY (each class of shares), - GLOBAL BALANCED, - GLOBAL INCOME - Class A, - GLOBAL BOND, - EUROPEAN BOND and -
EUROPEAN SPECIAL SITUATIONS (each class of shares).
2. The additional fee, computed on the basis of the last net asset value of the month of each compartment, is fixed at 20% of one twelfth of the surplus realised during the month for the compartments - GLOBAL INCOME - Class 6, - EURO OPPORTUNITIES CP (formerly EURO
and - EURO OPPORTUNITIES CP I I . EQUITIES CP), - CONVERTIBLE BOND AND EQUITY, - EUROIMPULSE PORTFOLIO, - SPRING,
3. The additional fee, computed on the basis of the last net asset value of the month of each compartment, is fixed at 25% of one twelfth of the surplus realised during the month for the compartment - ITALY.
4. The additional fee, computed on the basis of the last net asset value of the month of each compartment, is fixed at 30% of one twelfth of the surplus realised during the month for, the compartments - WORLD PORTFOLIO EQUITIES (each class of shares) and - FLEX DURATION (each class of shares).
5. Unlike the other compartments, the Investment Advisor is entitled to an additional commission for the compartments - FLEX STRATEGY and - FLEX IDEA, which is fixed at 10% of the net increase as a result of operations of each quarter.
6. Unlike the other compartments, the Investment Advisor is entitled to an additional commission for the compartment - FLEX BLUE which is fixed at 15% of the net increase as a result of operations of each quarter.
107
LEMANIK SICAV
NOTES TO THE FINANCIAL STATEMENTS (continued) as at May 31,2005
NOTE 4 - PERFORMANCE FEE (continued)
7. Unlike the other compartments, Global Investment is entitled to an additional commission for the compartment - GLOBAL INVESTMENT which is fixed at 20% of the net increase as a result of operations of each quarter.
The detailed calculation of the additional commission for each compartment is described in the prospectus .
LEMANIK Asset Management Luxemburg S.A., Investment Advisor of LEMANIK SICAV, has decided to renounce as from December 2, 2002, and this till further orders, to the performance fee on the compartment LEMANIK SICAV - EUROIMPULSE PORTFOLIO.
Following the circular resolution of the Board of Directors at June 19, 2002, the Board of Directors of the SICAV acknowledges that the calculation of the performance fee for LEMANIK SICAV - EURO OPPORTUNITIES CP has been suspended.
Lemanik Asset Management S.A. decided to suspend the calculation of the performance fee concerning the compartment LEMANIK SICAV - FLEX DURATION, starting from February 12,2004.
NOTE 5 - TAXATION
Under legislation and regulations currently prevailing in Luxembourg, the SICAV is not subject to any taxes on income or capital gains. The SICAV is, however, liable in Luxembourg to a tax of 0.05%, per annum of its assets, such tax being payable quarterly on the basis of the net assets of the SlCAV at the end of the relevant quarter.
NOTE 6 - FORWARD EXCHANGE CONTRACTS
At the date of the report the following forward exchange contracts are outstanding:
(in EUR) (2,000,000.00) (95,486.96) (1,496,557.92) 115,548.33 (1,500,000.00) (65,306.30) (1,167,042.71) 51,033.38 (1,500,000.00) (69,609.18) (I ,144,190.94) 64,888.75
1,068.02
110
LEMANIK SICAV
NOTES TO THE FINANCIAL STATEMENTS (continued) as at May 31,2005
NOTE 7 - FUTURES CONTRACTS
At the date of the report the following futures contracts are outstanding:
EUROPEAN SPECIAL SITUATIONS Type Number of Denomination
contracts Currency Commitments Unrealised (loss)
in currencv (in EUR)
Short (11.00) SP MIB INDEX
SPRING Type Number of Denomination
contracts
EUR (1,748,175) (5,425.00)
Currency Commitments Unrealised (loss) in currency (in EUR)
Short (20.00) DAX INDEX Short (10.00) EURO BUND Short (10.00) SP MIB INDEX
GLOBAL BOND Type Number of Denomination
EUR (2,242,000.00) (40,750.00) EUR (I ,223,100.00) (9,500.00) EUR (1,589,250.00) (29,750.00)
(80,000.00)
Currency Commitments Unrealised (loss) contracts in currency (in EUR)
Short (20.00) EURO BUND EUR (2,446,200.00) (45,400.00)
FLEXIBLE BLUE Type Number of Denomination
contracts Currency Commitments Unrealised (loss)
in currency (in EUR)
Short (15.00) EURO STOXXSO IDX FUTURE EUR (463,500.00) (8,850.00) Short (5.00) FTSE 100 IDX FUTURE GBP (366,547.04) (701 -49) Short (4.00) MINI S 8 P 500 IDX USD ( 1 93,807.2 1 ) (3,340.38)
(12.891 37)
FLEX DURATION Type Number of Denomination Currency Commitments Unrealised (loss)
contracts in currency (in EUR)
Short (75.00) EURO BUND EUR (9,173,250.00) (21 1,250.00)
FLEX STRATEGY Type Number of Denomination
contracts Currency Commitments Unrealised
in currency gain/( loss) (in EUR)
Long 115.00 S & P 500 IDX FUTURE USD 27,859,763.38 303,377.05 Short (20.00) US 10 YEAR NOTES USD (1,834,261.22) (3,301.77)
300,075.28
111
NOTES TO THE FINANCIAL STATEMENTS (continued) as at May 31.2005
NOTE 7 - FUTURES CONTRACTS (continued)
EURO OPPORTUNITIES CP II Type Number of Denomination Currency Commitments Unrealised gain
contracts in currency (in EUR)
Long 173.00 EURO STOXX50 IDX FUTURE EUR 5,345,700.00 160,610.00
FLEX IDEA Type Number of Denomination
contracts Currency Commitments Unrealised (loss)
in currency (in EUR) Long 49.00 NIKKEI USD USD 2,230,170.86 (125,447.1 1)
NOTE 8 - CHANGES IN THE COMPOSITION OF THE SECURITIES PORTFOLIO
A copy of any changes in the composition of the securities portfolio arising over the period in question may be obtained free of charge:
- at the registered office of the SICAV - by the representative in Switzerland - by the Paying and Information Agent in Germany - by the correspondents and the distributors in Italy.
NOTE 9 -WEB SITE
The portfolio management department has been re-enforced with the goal of providing more frequently and precise information regarding our respective funds, through our web site www.lemanik- - sicav.com.
This web site is regularly updated in order to satisfy our clients’ current needs and objectives.
NOTE 10 - PUT OPTIONS
The Compartment EURO OPPORTUNITIES CP has in its portfolio a European style put option “Lemanik SICAV Euro Opportunity CP Reg Cap PUT 0712006 OTC” with the following characteristics:
IMI Bank (Lux) S A . (the seller of the put option) gives the right to the compartment to transfer the total assets (shares, bonds, warrants, ....) in favour of IMI Bank (Lux) S.A. and receives back an amount that results from the number of shares issued at July 3, 2006 multiplied by the higher of:
- EUR 10.14 (NAV price as at July 2, 2001);
- 90% of the highest NAV obtained between July 2, 2001 and July 3, 2006;
- NAV value as at July 3, 2006 (valuation date).
112
LEMANIK SICAV
I
NOTES TO THE FINANCIAL STATEMENTS (continued) as at May 31,2005
NOTE 10 - PUT OPTIONS (continued)
The compartment EURO OPPORTUNITIES CPll (launched at 17m March 2003) has in its portfolio an European style put option “Lemanik SICAV Euro Opportunity CPll Reg Cap PUT 12/03/2010 OTC” with the following characteristics:
Banca IMI (the seller of the put option) gives the right to the compartment to transfer the total assets (shares, bords, warrants, ....) in favour of Banca IMI and receives back an amount denominated in EUR determined in accordance with the following formula:
C = R * Max (( 100- Final Value) / 100)); 0) Where: “R” means the Reference Amount as at the Expiration Date (March 12, 2010); “Final Value” means- the value of the Reference Dynamic Portfolio as at the Expiration Date (March 12,2010); “100” is the value of the reference Dynamic Portfolio as at the Initial Valuation Date (August 4, 2003); “Reference Amount” means the amount of EUR 40,840,956.95, provided that, over the life of this transaction, such amount may be reduced or increased by prior written agreement between the Seller and the Buyer.
NOTE I 1 -SUBSEQUENT EVENT
Following a resolution circular dated May 23, 2005, the Board of Directors decided to convert Lemanik SICAV into a UCITS Ill Fund. Therefore, the Board of Directors has convened the shareholders to the Extraordinary General Meeting of shareholders which will be held at the registered office of the SICAV on September 30, 2005 to approve the amendment and update of Article 3 of the Articles pursuant to the amended Law of December 20,2002.