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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