Luxcellence - Fundsquare

Luxcellence

Audited annual report

at30109ll0

RCS Luxembourg B 64.695

O!tobole Publhhlng Sytte.n: CoRoporf€ro by CO.LJnk, 8elglum.

Luxcellence

Table of Contents

Management and Administration

Board of Directors

Audit report

Combined fi nancial statements

Luxcellence - Diversified Porfolio

Lrxcellence - Genesis Fund

Lr.rxcellence - ICON Conservative Euro

Luxcellence - ICON Dynamic Euro

Luxcellence - Polunin Emergi:rg Markets Technology Fund

Luxcellence - Senhouse European Focus Fuad

Luxcellence - Nexar Liquid Fund

Luxcellence - Virtuoso Fund

Notes to the Financial Statements

Page

J

4

5

14

22

26

30

37

49

55

10

Subscription can only be received oa the basis of the latest prospectus accompanied by the latest aanual report as *'ellas by the l3lgst ssmi-annual report, if published after the latest annual report. The details of the changes in portfoliocomposition are held at the disposal of the shareholders at the registered office of the SICAV and are available uponrequest free of charge.

Poge 2

Luxcellence

Management and Administration

REGISTERED OFFICE

MANAGEMENT COMPANY

CUSTODIAN, DOMICILIARY ANDADMINISTRATIVE AGENT

AUDITOR

P ORTFOLIO MANAGERS AND/ORII.IVESTMENTMANAGERSFor the sub-fund Luxcellence - Diversified Portfolio

For the sub-fund Luxcellence - Genesis Fund

5, Allde SchefferL - 2520 LuxembourgGrand Duchy of Luxembourg

Luxcellence Management Company S.A.5, Allde SchefferL -2520 LuxembourgGrand Duchy of Luxembourg

CACEIS Bank Luxembowg S.A.5, Allde SchefferL -2520 LuxembourgGrand Duchy of Luxembourg

PricewaterhouseCoopers S.i r.l,400, Route d'EschB.P. 1,143

L - 1014 LuxembourgGrand Duchy of Luxembourg

GDP Gestione Di Patrimoni SIM S.p.A.Via Leone XIII n.14I - 20145 MilaooItaly

BNP Paribas Asset Management S.A.5, Avenue Kl€berF - 75116 ParisFrance

BancaAlbertini Syz & C. S.p.A.Via Borgonuovo 14

I - 20121 MilanItaly

Degroof Gestion Institutionnelle Luxembourg12, Rue Eugdne RuppertL - 2453 LuxembourgGrand Duchy of Luxembourg

Poge 3

Management and Administration (continued)

For the sub-fiuds Luxcellence - ICON Conservative

Euro and Luxcellence - ICON Dynamic Euro

For the sub-fuad Luxcellence - Polunin EmergingMarkets Technology Fund

For the zub-fund Luxcellence - Senhouse EuropeanFocus Fuod

For the sub-fund Luxcellence - Nexar Liquid Fund

For the sub'fund Luxcellence - Virtuoso Fund

II.MSTMDNT ADVISORFor the sub-fund Luxcellence - Genesis Fund

PRESIDENT

Mr. Antoine Gilson de Rouvreux

DIRECTORS

Mrs Sandrine LeclercqMrs Francesca de Bartolomdo

Luxcellence

Cr6dit Agricole Asset Management90, Boulevard PasteurF-75015ParisrFrance

Merrill Lynch Bank (Suisse) S.A.18, Rue de ContaminesCH - 1211 Geneve 3Switzerland(until December 5, 2049)

Petercarn S.A.19, Place Sainte GuduleB - 1000BruxellesBelgique(nntil December 5, 2009)

Polunin Capital Partners Ltd146, Buckingham Palace RoadLondon SWI'W 9TRUnited Kingdom

Senhouse Capital LLP20/22 Bedford RowLondon WCIR 4JSUnited Kingdom

Nexar Capital LLC .

767 Fiffl Avenue. l9' FloorNew York, NY 10153USA

Old Park Capital Limited3 Queen Steet, MayfairLondonWlJ5 PAUnitedKingdom

Global Wealth Management SA.7, Rue VersonnexCEI-1207 GeneveSwizerland

Board of Directors

Managing Director, Luxcellence Management Company S.A.

General Counsel, CACEIS Bank LuxembourgBusiness Development Director, CACEIS Bank Luxembourg

Poge 4

Audit report

To the Shareholders ofLuxcellence

PrlcewaterhouscCoopcrsSocidtd i responsabilit€ limitCe

400, Route d'RchB.P. t,{43

L-1014 LuxcnrbourgTelephonc +352 494848-1

Facsimile +352 494848-2900

www.pwc.c.om/[email protected]

We have audited the accompanying financial statements of Luxcellence and of each of its sub-funds,which comprise the statement of net assets and the securities portfolio as at September 30,2010 and thestatement of operations and changes in net assets for the year then ended, and a summary of significantaccounting policies and other explanatory notes to the financial statements.

Board of Directors of the SICAV's responsibilify for the financial statements

The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these

financial statements in accordance with Luxembourg legal atrd regulatory requirements relating to thepreparation of the financial statements. This responsibility includes: designing, implementing andmaintaining intemal conhol relevant to the preparation and fair presentation of financial statements thatare free from material misstatement, whether due to fraud or error; selecting and applying appflcpriateaccounting policies; and making accourting estimates that are reasonable in the circumstances.

Responsibilify of the ('R6vlseur dtentreprises agr66"

Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with International Standards on Auditing as adopted for Luxembourgby the "Conrmission de Surveillance du Secteur FinancieC'. Those standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assurance whether the

financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the judgment of the "Rdviseur d'entreprisesagrdd", including the assessment of the risks of material misstatement of the financial scatements,

rvhether due to fraud or enor. In making those risk assessmenb, the "R€viseur d'entreprises agr€6"considers internal control retevant to the entity's prep.u"tion and fair presentation of the frnancialstatements in order to design audit procedures that are appropriate in the circumstances, but not for thepu4)ose of expressing an opinion on the effectiveness of the entity's intenral control. An audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by the Board of Directors of the SICAV, as well as evaluating the overallpresentation of the financial statements.

Cabina dc rdvisioo rgr{d

F-\pcd cornptablc (sutoriruion gowemcmentale no95992)

R.C.S. L&\embourg B 65 4?7 - Copital social EIJR 516 950 - TVA LU17564447

Poge 5

PricewaterhouseCoopersRepresented by

./7/s-4taventMarx

We believe that the audit evidence we have obtained is sufflcient and appropriate to provide a basis for our

audit opinion.

0pinion

In our opinion, these financial statements give a true and fair view of the financial position of Luxcellence

and ofeach ofits sub-firnds as of September 30, 2010, and ofthe results oftheir operations and changes intheir net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements

relating to the preparation ofthe financial statements.

Other matters

Supplementary information included in the annual report has been reviewed in the coutext of our mandate

but has not been subject to specific audit procedwes carried out in accordance with the standards described

above. Consequently, we express no opinion on such information. Holvever, we have no observation to

make conceming such information in the context of the financial statements taken as a whole.

S.A r.l. Luxembourg, January 25, 201 |

Pogo 6

Luxcellence

Combined

Poge 7

LuxcellenceCombined

Financial Statements at 30/09/10

Statement of net assets at 30/09110

ExDlessed i,t USD

Assels

Secuillies porlfolio of morket volueCost piceUnrealised apprecialion on the secnities portfolio

Cosh ol bonk ond liquiditieslnleresl receivobleFormotion expensesBrokeR receivobleSubscriben receivobleDividends receivoble

Note2.2

Unreolised net oppreciolion on forword foreign exchonge controcls Note5,2.7

Unreolised net oppreciolion on finonciol futures Note6,2.8

Receivoble on spoi exchongeOlher ossels

Liobilities

Bonk overdroftsBroken poyobleToxe d'obonnement poyoblePerformonce Jees

Equolizof ion poyoble to shoreholdersSubscriben poyobleUnreolised nel depreciotion on forword foreign exchonge conirocis Note5,2.7

Unreolised nel depreciolion on finonciol fulures Note6,2.8

Accrued monogemenl & odvisory fees Note4

Poyoble on spot exchongeOlher liobilities

Nei qsset volue

thc occoEparyilg Dot€ form atr iltc€rol pad oflhcse fEoDcicl stctcmcots

Note2.6

Note 3

Noto 4

265,960J0824

14r,129,r74.20141,009,961.25

119,212.95

123,460,888.84

3:769.74

154,798.49

sgr226.sl238,828.80

90,972.67

1132s2.80

150,128.00

96.29

27,s7t.90

top0t,72t,2l

1,718,209.09

4,824,444.76

28,04s.85

55,206.88

21,499.93

r,046,769.88

2,134,894.41

690,670.69

237,798.39

112.64

144,068.69

255,058p87.03

Poge I

LuxcellenceCombined

Statement of Operations and Changes in Net Assets from 0l/10i09 to 30/09/10

Exprcssed in USD

lncomeNet dividendsNet interest on bondsBonk interest on cosh occountBonk interest on time depositsOther income

Expenses

Amortisotion of formotion expensesMonogement & odvisory feesCustodion & sub-custodion feesToxe d'obonnementAdministrotive expensesPerformonce ond License feesDomiciliotion feesProfessionol feesEonk interest on overdrqftsLegol feesOther expenses

Net loss from inveslments

Net reolised profit / loss on:

- soles of investment securities- options- forword foreign exchonge controcis- finonciol futures- foreign exchonge

Net reolised profit

Movement in net unreolised oppreciotion / depreciqtion on:

- invesfments- forword foreign exchonge controcts- finonciol futures

Increose in net ossets os o result of operotions

Subscription copitolisotion shoresSubscription distribution shoresRedemption copitqlisotion shores

Redemption distribution shores

lncreose in net ossets

Reevoluotion difference

Net qssets of the beginning of the yeor

Net ossets of the end of the yeor

Note2,5

Note2.5

Notc2.5

Note2.5

Note2.6

Note 4

Note4

Note 3

Note4

Note2.2

Note2.3

Note2.9

Note2.7

Note2.8

Note2.4

2,226,158,26

r,336,s75.98

863,15 r.75

6,843.86

r0,55'1.94

9,028.73

3,651,041,96

46,323.r8

1,574,770,88

t56,4rr.4983,314.78

348,516.34

481,629.20

353n.23l17,345.60

s8,&9.24

56,428.56

698,325.46

-1130,883.70

8,1 14,201.12

1d436.8s

2,293,549.53

-3,884,243.8s

-t,029,785.61

4,077,274.34

685,984.31

-2,021,641.6r

-212,977.U

2,528,640.00

112,002,092.36

6,653,256.84

-33,088,3s3.?3

-2,098,480.9r

E5897,154.56

-10,557p25,58

179,619,058.05

255,058,987,03

Poge9

Luxcellence- Diversified Portfolio

Poge l0

Luxcellence - Diversified Portf olio

Manager's Report

During the reporting period (from 0913012009 to 09/30/2010) the Federal Reserve (Fed), the Bank ofEngland @oE) aud, later in the year, the European Central Bank (ECB) tried to keep the economicmechanism efficient in a "coordinated" effort in order to avoid the feared econornic double dip.

For the frst half of the period, the public fiscal policy was used as stimulus in Europe as well as inEngland and in America; in the second part of the year, however, UK and Europe (especially itsperiphery) have begun to focus on fiscal discipline to try to fix the public finances while the UnitedStates continued to use fiscal policy that rvould promote economic recovery.The high degree of liquidity in the systern, even if not transmitted to the public, supported the

beginning of a healing process in the financial sector. With the chance of a roll-over of the toxic assets

held by banla, the primary market of corporate bonds regained pace and featured spreads that were farless volatile than in 2008-2009.

Conceming sovereign debt the bigger clouds came from the European penphery because, after thebailout of Greece in May, the uncertainty about the ability to repay the debt by Ireland, Portugal, Spain

and Italy continued to strengthen (and consequentty peripheral bond spreads widened).Meanwhile the real economy siarted to regain momentum with a sharp increase in indushialproduction and a recovery in intemational hade. Some concerns still remain on high number ofunemployed in the Westem economies while a broad economic stimulus helped stabitize the privatedemand.

In this picture, US stock markets kept rising with S&P 500 np 7,96% during the period and Nasdaq

100 up 16,23%. In Europe, even the stock markets suffered the problem of the European peripherywith the core markets up @AX t9,75yo, FTSE 100 +8,08%) and the periphery down (MIB 40 -I2,64yv,IBEX 35 -10,56%). The Pan European Eurostoxx 50 index retraced by 4,34%.Differences among markets rvere driven most by the nature of the recovery, which rewarded the

industrial and consumer sector while financials continued to languish.For asset managernent, it was a very challenging year dominated by the loss of consistency of the mostcommon inter-market correlation.

Next year witl be crucial for understanding the sustainabitity of economic recovery. It will be

important to observe the reaction of the ecoromy at the end of the monetary stimulus that the Fed and

the ECB are implementing.Concerning the real economy, in the 2011 there should likety be a significant reduction ofunemployment rate while the private deuoand should remain at current level even without extemal aidin order to consider the economy into a sustainable recovery phase. Financial sectors could sufler,more than others, the reduction of liquidity in the markets.Concerning bond markets, the outlook for 2011 depend on the effectiveness of fiscal consolidationmeasures adopied, however, if the debt crisis would involve Spain and especially Italy so the

European debt markets (including core Europe) would suffer heavy falls.

Luxembourg, January, 201 I

The figures stated in this report are historical and not necessarily indicative of future perfonnance.

Poge | |

Luxcellence - Diversified Porlf olio

Financial Statements at 30/09/10

Statement of net assets at30/09110

Erprcssed tu EUR

Assets

Cosh oi bonk ond liquidities

Liobilities

Toxe d'obonnement poyoblePerformonce feesAccrued monogemenl & odvisory fees

Oiher liobilities

Net osset volue

Copilolisolion shores

Toiol Net Assets

Capitnlisation shares

Number of shares

Net asset value per share

Note 3

Note 4

Note 4

Changes in number ofshares outstanding from 0l/10/09 to 30/09/10

TrpssJns9

71,!55,127.39

95,852.42

8,908.19

40,450.53

21,98r.78

24,511.92

71,259,274.97

SharesShares redeemed outstandlng at

3A109110

92,303.736 620,681.703

SharesoutstandiDg Bt

0ul0/09

712,985.439

Year endbtg al:

EUR

Shsres issued

30t09tLo

71,259,274.97

620,681:t03

114.80

30t09t09

80,976,595.91

712,98s.439

113.57

30/09i08

u,992,s22.58

770,789.769

I10.35

0.000

Key figrues relating to the last 3 years

Tbc occoopalying notcs forr! a! iDte8rol port ofthese financill stotemctrts

Pogs l2

Luxcellence - Diversified PortfolioStatement of Operations and Changes in Net Assets from 01/10/09 to 30/09i l0

Emressed in EUR

lncomeNet dividendsNet interesi on bondsBonk interest on cosh occount

Expenses

Amortisotion of formotion expensesMonogement & odvisory feesCustodion & sub-custodion feesToxe d'obonnementAdminislrolive expensesPerformonce ond License feesDomiciliotion feesProfessionol feesBonk inierest on overdroftsLegol feesOther expenses

Net income from investments


- soles of investment securities- options- finonciol fufures- foreign exchonge

Net reolised profit

Movement in net unreolised oppreciotion / depreciotion on:

- investments

Increose in net ossets os o result of operqtions

Redemption copiiolisotion shores

Decreose in net ossets

Net ossets ot the beginning of the yeor

Net ossets qt the end of the vesr

Thc cccortparying dota fomr an idlcg.il pon oflhatc fimdcial Etrteficntg

Note2.5

Note2.5

Note2.5

Note 2.6

Note4

Note4

Note 3

Note4

Note2,2

Note 2.3

Note2,9

Note2.8

Note24

513,539.10

2,8t7.39

510,533.70

188.01

299,129,8t

156.39

89,463.97

39,570.47

26,558.78

45,194.22

40,450.53

1,875.00

8,074.57

1,80r.84

14,084.27

3r,899.79

^4f4n9.27

2,183,9t3.18

r0,578.00

-152,654.11

10,186.51

2,866132.85

-2,018,266.13

u8,166,72

-10,565,487.66

-9,7r732n.94

80.976.595.91

71,259,274,97

Poge l3

Luxcellence'Genesis Fund

Poge l4

Luxcellence - Genesis Fund

Manager's Report

During the year from September 2009 until September 2010 the sub-firnd performed + 9.52%.For the same period the US equity market was positive approximately 736% (S&P 500) and theEuropean equity markets were on average positive approximately 1.15% (DJ Eurostoxx 50 i.e. SX5PIndex). During the same period the bond market had a performance of approximatety 6.08%.

For nruch of November, most financial markets and assets were supported by sigus that the recovery wasgaining kaction, comments frorn Cenkal Banks that they would remain supportive and indications thatthe massive infirsion of liquidity that has supported asset price appreciation would not be withdrawn inthe near temr.Throughout November, economic data was supportive. Economists and the World Bank alike upgradedgrowth estimates for 2010 with China and other Asian economies expected to grow faster than previouslyestimated. Consumer confidence in the UK was beginning to show signs of improvement, consumerspending in the US and Europe is beginning to improve and home sales in the US were recovering.During November, the Bank of England (BoE) and the European Central Bank (ECB) both teft interestrates unchanged and the Federal Reserve (Fed) indicated that they would keep interest rates near zero for"an extended period'. Financial markets continue to benefit from the excess liquidity that is seekinghigher rates of rehrm. With interest rates, particularly in the US, at or near zero an ever expanding supplyof money was supporting risk assets,

Market activity in December nrirrored the major asset class performances that we saw for much of the

second half of 2009. Given the continued underlying strength in equity markets, bond markets came

under pressure during December. Bond markets have been under selling pressure as investors have

become increasingly concemed that policy makers from many economies with large fiscal deficits havegiven few prooouncements toward their plans to tackle their rising debts. In the currency markets the US

dollar was generally fimrer, appreciating against the yen as the lapanese economy sank further intorecession and also rising against the Euro as the markets become focused on the stability of the monetaryunion given rising fiscal deficits in a number of member counhies such as Greece and Portugal. TheAlternative Inves&rents posted a positive rerum of 0.64% in December, totalizing a YTD positiveperformance of. 13.7 7

o/o.

The year began on a positive note with optimism that global growth would continue to gain momentumand stimulus measures would onLy be withdrawn once the recovery was well enffenched, An increased

number of asset allocators added risk by overweighting equities, high yield credit and emerging markets.A level of complacency emerged based upon a view that any potential issues, such as higher rates orreduced stimulus measures, would not present themselves until the second half of the year.

After moving higher, most risk assets have recently retreated in rcsponse to a number of events, China'sattempts to limit lending and begin withdrawing stimulus me.rsures, the Greek budget deficit, Obama'sproposal (the Volcker Rule) to reduce the risk profile of US banks and even speculation that BenBernanke w'ould not be reappointed Fed Chainnan all combined to reversie the momentum that had drivenasset prices higher.In March the focu has shifted from balance sheet liabitities to fiscal deficits and sovereign debt. Years offiscal irresponsibility and the recently imFlemented stimulus meiuiwes have led to unsustainable fiscaldeficits and to concerns of defautt and economic decline. Thus far this focus has been timited to a

relatively small number of countries, but the reality is that these issues have become endemic to mostwestem countries. As the scope and magnitude of those considered "too big to fail" expands, both the

ability an<l willingness to provide support will be severely tested.

Poge l5


Manager's Report (continued)

When Dubai faced the possibility of default, Abu Dhabi provided support, but it is unlikely that these

loans did not come with strings attached. Now that Greece was facing a fiscal crisis, the European Union(EU) has pledged "determined and coordinated action" but bas failed to provide tangible details ofsuchsupport aod how it rvill be provided.

The fiscal issues that have been highlighted by Greece are not urique. If Greece were to default focus

would immediately shift to the other little PIGS (Porhrgal, Ireland/Italy, Greece and Spain) who share

similar undesirable fiscal characteristics. Ironically, the fi.urdamental fiscal positions of Greece and the

other PIGS are not all that different those of the UK and US. The UK was running a fiscal deficit ittexcess of 12.5% of GDP and the US was expecting to run a deficit in excess of l0%. The fiscal situationin the US was expected to remain under pressure with the US Congressional Budget Office zuggesting

that the US will "never" run a balanced budget again. What is different from Greece is that neither the UKnor the US is in danger of default. For the foreseeable future they will continue to have the ability tofinance their fiscal positions, but it may increasingly come at higher costs.

In April we saw the global recovery in the early stages of development and was therefore fragile. The

fears and issues outlined above are still real and must be addressed accordingly,In the meantime, investors have begun to look beyond many of the negatives and have cbosen to focus

upon the improving outlook.

Market sentiment has risen significantly and volatility has fallen dramatically. As markets gain

momenfum an air of complacency has begun to emerge. Investors, many of whom were underinvestedand all of whom are under pressure to perform, are increasing exposure to risk assets and reducing theircash positions. Cash within US equify mutual ftnds was reduced &om 5.7o/o to 3.6Yo at a pace faster than

at any time in the past 18 years.

The last time cash was at these levels, the market was about to begin a 57%o decline. While supportiveflrndamentals and reasonable valuations would zuggest that such a market correction was extremelyunlikely, the prevailing level of complacency and consensus view that the "best of all worlds" can be

sustained may be setting the stage for a pullback. The market risks that seemed so troubling not long ago

still exist, but have been obscured by investors who, perhaps unwisely, are focusing inteutly and

exclusively upon economic recovery.

The pace at which the global economy and corporate profits were growing in May was truly remarkable.

The global recovery was not only being supported by economic activity within China and the emergingeconomies, but also from positive hends in developed counties. V/ithin Europe, Japan and the USmanufacturing and consumption has exceeded expectations and leading indioators are suggesting that the

recovery is taking hold. Even some of the more problematic areas, zuch as employment and real estate,

are showing signs of modest improvement. Likewise, corporate profits were also surprising on the upside.

During the first quarter US and European eamings are expected to grow by 45% and 50% respectivelyand of those companies that have already reported, over 70olo have exceeded analyst's estimates. Eamingsestimates are being ilcreased at a rate not seen since 2006 reflecting the growing confidence thatcompaoios will benefit from the improving economic environment.

The recent Greek crisis and broader European fiscal issues have zubjected the Euro to sipificant pressure

in June. Some have even gone so far as to suggest that this may be the "beginning of the end", whileothers contend that this is merely the "end of the beginning". The problems inherent to the Euro have

Pogs 16


Managerts Report (continued)

been clearly illustrated by the crisis and it is becoming increasingLy apparent that the EU must embrace

change; change which may ultimately lead to a stronger more stable Euro . .. or to its obsolescence,

During the past 6 months the Buro has gone from being the "reserve currency in waiting" to facingpossible extinction.

As we mark the half way point of 2010 many investors are questioning whether the glass is half empty orhalf firll. The year has seen markets rise and markets fall as economic, geopolitical and corporate events

are reviewed and reassessed based upon the most recent data, development or results. As we entered the

second half of the year markets will continue to react to this ebb and flow of information as inve$tors

assess rvhether the glass is indeed halfempfy or halffirll.

There is an enonnous divergence of opinion over the strength of the gtobaL economy, the sustainability ofcorporate eamings, 0re role that financial reform will play and the impact of fiscal defrcits on gtowth and

the implementation of effective fiscal and monetary poticy. While bulls and bears may see these issues ineither a positive or negative light, some of the prevailing views and perceptions may not firlly oraccurately reflect these issues,

As we embark upon the second half of the year it will become increasingly evident as to whether furtheraction is required or whether current policies and initiatives are sufficient to address prevailing issues ineffect, whether the glass is half empty or half full.

There is little doubt that the economic and finaucial environment has shown broad improvement.Investors, keen not to repeat their mistakes of 2009, have proactively increased their exposure to riskassets in the hope that the prevailing environment of economic growth and accommodative monetarypolicy will be sustained, Many of the concems and risks that weighed so heavily upon investor sentiment

and threaten economic grorvth have faded into the background (at least temporarily).Some investors seem to believe that they have zuccessfirlly scaled the wall of worry while others appear

to be in the process of dismantling it, yet the bricks remain, and it may not be long before a new wall isunder construction. Wrile liquidiry will be suffrcient to support markets in the near term, for markets to

be sustained on a long term basis, it is critical that some of this liquidity begin to see its way into the real

economy. Until there is greater evidence of this capital flow, it will be difficult to establish the stongeconomic foundations that are necessary to support a robust financial system and higher asset prices.

Markets and investors have become "good news junkies" and require their daily fix. The events of the

past month have served as a wakeup call to the issues that persist. After flirting with economic and

financial Armageddon, it is implausible to believe we could rehrn to normal unscathed. We will continue

io face the fallout from 2008-2009 and witl be forced to content with the effects of a divergent recovery.

While this may result in greater volatility and require inoreased investor vigilance, evidence continues to

build that the global economy is on the road to recovery. There will be disappoinrnents along the way,but also sufficient positive news to provide investors with their required fx.

Globat Wealth Management SA


The figures stated in this report are historical and not necessarily indicative of future perfofinance.

Poge l7

Assels

Securities porifolio ol morkei volueCost price(Jntealised depreciation on the sedrities ponfolio

Cosh oi bonks ond liquiditiesBroken receivobleDividends receivobleUnreolised net oppreciotion on finonciol futures

Liobilities

Brokers poyobleToxe d'obonnement poyobleAccrued monogemenl & odvisory feesOlher liobilities

Net ossei volue

Luxcellence * Genesis Fund

Finaneial Statements rt 30109 ll0Statement of net assets at30lA9/fi

Eryressed tu EUR

Sharesoutltrnding at

01/10/09

410,627.132

Key figures relating to the last 3 years

Year ending at: 30/09/10

EUR 2r,696,525.M

392,176.132

55.32

The ac{oEpalyirg loles fom ar itltlgral palt oftb€sc iualcial sblrm.nts

Note 22

Note 6, 2.8

Note3

Note 4

Changes in number of shares outstanding from 0l/10/09 to 30/09/10

22,049,750,60

20,620,325.6522,171,621.92

-1,551,296.27

t,044,233.27

2s9404.42

15,787.26

l10,000.00

353,225.56

303,364.72

1,946.21

36,615.40

lt299.27

21,696,525.04

SharesShares issued Shares redeemed outstaDding at

30/09/10

0.000 18,451.000 392,176.132Copilolisolion shores

Tolol Net Assets

Capitalisadou shoresNumbcr ofshores

Net asset volue per share

30i09/09

20J12,',l89.95

410s27.132

50.51

30i09/08

23,787,505.99

441,728.1t2

53.8s

Po96 l8

Luxcellence - Genesis FundSecurities portfolio at 30/09/10

F,xprcssed tu EUR

qt!.ndry Dcdomh6tios QuohtiotrculrEtrcy

o/o sf.sdtltiltxea tdluc

|lESC(s

Tronsferoble securities odmitted to on officiol stock exchonge listing qnd/or deolt inon cnoiher reguloted morket

Shores

A uslnb15,855 VOESTALPINE AG

Be,gium7,550 ANHEUSER.BUSCH TNBEV Nv

15,819 D$(IA4,500 a{coRE

Denmork6,000 vEsTAs \I'IND SYSIEI{S

Finlond30"200 NFSIE OrL3?,750 NOKIAOY'I1,325 SAMPO OYr-A-22,650 IJPM KI'IUMENE CORT

Fronce5,669 AIR LIQUIDE SA

3,500 AtsToM sA6,5?5 BNP PENIBAS SA

8,()OO DANONE SA *

15,100 FRANCE TELECOM SA

I,88? UORE{L SA18,8?5 SUEZ EIMRONNEMENT COIIIPANY SA

5,662 TOTAL SA

Germony3,??5 ALLTANZ SE REO SHS

3,?75 BEIERSDORF AG4,000 DEUTSCHE BANK AC REC SHS

3!7?5 HEIDELBERCCEMEI.IT AG

4152 IJNDE .A6914 MUENCHEI.IER RUECKVERSICHERUNCS AG REG SHS

t2,835 SAP AG3,775 STEMENS AC REG SHS

7,550 NTYSSENKRUPP AG

Greece8,682 PIJBLIC POWER CORP OF GREECE

Itoly22,650 ANSALDO STS SPA

1I,?78 ASSICURJqZI OM GENERALI SPA

37,500 AUTOGRILL SPA *

26125 BENETTON GROUP SPA

?5,500 CAMPARI POST FRAZIONANIENTO

7,474 DTASORTN

151,000 EDISoN sPA '149,200 ELTCA S.P.A.

11,300 EMSPA.1,550 ERC SPA

34,000 IrAI-TCEMENTI SPA I40,000 MEDIOBANCA SPA *

I I ,325 SAES CETTERS

60100 srAs sPA75,500 SNAM RETE CAS SPA

70,000 sor.I I3J5O TERNA SP.{ '

Luxembourg2,265 ARCELORTTfiTTAL SA REG SHS

SPoinr5,r00 ENAGAS

Sweden25,500 BOLIDEN AB

Swkedond3,246 HOLCIM LTD REC SHS

4,983 NESTLE SA R-EG SHS

8,305 NOVARIIS AG REG SITS

2,265 ROCHE HOLDING AG GBNUSSSCHEIN

Thc accomo! ying notls form ao intcgrrl ps.t ofthcsc finlocial Etatcmcots

EUR

EUR

EUR

EUR

EUR

EUR

E1JR

EI,JR

EUR

EIjREIJR

ETJR

EIJR

HMEUR

ETJR

ETJR

EUR

ETJR

E{mET'REIID

Et,RET.IR

EUR

EUR

EIJR

EIIR

EUR

ETJR

ETJR

ETIR

ETJR

ET'R

EUR

EI'RFt tp

EUR

EUR

EUR

EUR

EUR

ETJR

FIID

ETJR

SEK

CHF

CHF

CHF

CI{F

14191,359.41 66,79%

L119L359.11 66.79v.

431.t76,73 1.99%41r,t16.13 1.99%

523,102,17 2.41%329,029,00 t.st%.t9,845.67 0.21%

a444X7.50 0.61%

162,840.00 0.75%162"840.00 0.75%

1,r18.04r.75 5.15%339,?50.00 1.51%

212,L71.50 t.25r/o

n3,668.75 1.03%

282,445.50 t.N%

2,215,898.40 10.21%

5t2,024.08 2.36%

131,250.00 0.(t1%

34qr98,25 r.6r%

35r,480.00 t.62%

2A\r28j0 t.t2%155,015.92 O.1t%

259,908.75 t.20%

211,87290 0.99%

2,214,278.49 10.2r%315,892.00 1.46%

t67,98',t.5s 0;1',1%

157,040.00 0.12%

f33,880.38 0.62%

40/32t.76 t.86%

96,004.80 0.44%

468,220.80 LL1%292,86.1.50 1.35%

418566.75 O.82%

99,843.M 0,16%99,843.00 0,46v"

3,989,689.19 18.39%214,495.50 0.9v4l72t90l.M O.K%

3.15,562.50 1.59%

148,112.13 0.68%

129,557.50 1,52%

,817 ,92 | .04%

140,883.00 0.65%

225,739.60 | .U./.179,557.00 0.83%

73J2s.75 0.34%

22t,1',10.00 t.02%269,000.00 l.u%70,X28,25 0.32%

4n,9y..o$ 1.97%

2??A62s0 1.28%

318,500.00 r,4'l%349,942.59 l.6L%

55,096,t3 0.25%55,096.13 o.25Yr

223,25i,50 1.03%223,253.50 t,OrL

285,422.85 L32%28542,.85 t32%

930,251.37 4,29%155pr2.10 0.72%

r96,96t;12 091%353,61',1.32 r.63%

224460.23 t.03%

Pqge l9

Luxcellence - Genesis FundSecurities portfolio at 30/09/10

Expressed in EUR

Qutltity DcoomiagtioaQuolatiJDcDrrlrrcy

Morket volucY. oI Del

8SSCI5

Ihe Nethertonds9,060 AATBERTS INDUSTRIES NV

IO,OOO HEINEKEN}TVI2,5OO KONINKIIJKE PHILIPS ELECTRONICS }W22,650 STMICROELECIRONICS NV

I5,IOO UNILEVER}w

United Kngdom22,650 BHP BILLITON PLC

24,915 DIAGEO PLC

4'OOO MEGGITT PLC

United Slotes of Arnen'co45,OOO LEIIMAN BROT}TERS HOLDINGS INC

Shores of Ucis

Shores/Unlts In Investmenl funds

Luxernbo urg37.650 GWM SICAV GLOBAL OPPORTUMIES -G CAP

4q000 7Ir slcAv ABSoLUTE -A- EUR DIS

Froclions

Total securities porffolio (* Note 8)

ET'R

EUR

ELIR

EI,]R

EUR

GBP

CBIIGBP

USD

1,23t,315.85 5.69%

I ,0?5.60 0.519',0

376850.00 t.73%

288,3t2.50 t.33%

127,t79.75 O.'f/o331,898.00 1.53o/o

1,005,t13.4553\074.35

3t7 244,73

t55,7 .37

1.836.531,836.53

6128,93.00

612&e34.00

6,128,9t1.00 28.25%

a016,534.00 9.29%

4l12J00.0S 18.960/o

32.24 0.00q,6

70,620)2s,65 95,04V.

4,63962.45%

t.46%0.72%

0.01%0.01%

28.25%

zE.E h

IiTTP

EI'R

Tha occomp{|ying lotca forDo an iDtrgral p8rl ofthesc firlDcial stltemclts

Poge 20


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

Exoressed in EUR

lncomeNet dividendsNet interest on bondsBonk interest on cosh occountBonk interest on time deoosits

Expenses

Monogement & odvisory feesCustodion & sub-custodion feesToxe d'obonnementAdminislrolive expensesDomiciliotion feesProfessionol feesBonk interest on overdroftsLegol feesOther expenses

Net income from investments

Net reqlised profit / loss on:

- soles of investment securifies- finonciol fufures- foreign exchange

Net reolised profit


- investments- finqnciol futures

Increose in net ossets os o result of operotions

Redemption copitolisotion shqres

lncreqse in net ossets

Net ossets ot the beginning of the yeor

Net ossets ot the end of the yeqr

Note2.5

Note2.5

Note2.5

Note2.5

Note4Note4

Note 3

38&993.09

386,004.85

2,581.72

329.52

77.00

254,942.95

156Jr0.16

17,429.52

9,300.26

23,367.02

2,000.00

r0,304.00

12,345.t'7

826.96

22,659.86Note2.2

Note2.3

Note 2.8

Note2.4

134,050.14

88,043.00

290,002.00

60,424.14

572,519.28

1,033,08r.19

351,500.00

1,957,L80,47

- t,003,365.38

953,735.09

2A,742,789.95

21,696,525.04

Pog€ 2l

Luxcellence- ICON Conservative Euro

Poga22

Luxcellence - ICON Conservotive Euro

Manager's Report

Equiry markets rose strongly in March 2010, surging to their highest level since September 2008, as

market focus shifted from sovereign risk to the global recovery story.Robust business surveys across the globe confirmed the improvement in manufacturing activity.

Fears of a sovereign default in the Euro zone receded with the announcement that European leadershad finally agreed on a rescue package for Greece,Equity markets are now in positive t€rritory year to date, having effaced all the losses incurredbetween mid-Ianuary and mid-February.The euro remained under pressure, edging down to 1.35 against the dollar. Commodity prices wereunderpinned by solid data from China confirming that Chinese demand would continue to be a driverfor the sector.

Regarding our invesftnent policy, we remain overweight on equities by 3% and slightly on bonds. Theeamings cycle is improving and though earnings revisions decelerate, they remain on a positive tend.Nevertheless, investors are more and more focused on the exit strategies ancl their impact on themonetary and fiscal policies which still remain loose.

In response to the request by the board to liquidate the Fund, we reduced in Aprit our exposure to midcap stocks in order to increase the liquidify of ihe portfolio and reduce the tracking error with the

benchmark.

Luxernbourg, January, 20 I I

The {igures stated in this report are historical and not necessarily indicative of funre perfolrnance.

Pqge 23

Assels

Cosh ot bonks ond liquidities

Liqbilities

Toxe d'obonnemenf poyobleOther liobilities

Nel ossef volue

Closs ACopilolisotion shores

Closs B

Copilolisolion shores

Tolol Net Assets

Closs A

Capitalisation sharesNumber of shares


Closs B

Capitalisation shores

Nurnber ofshares

Net asset value p€r sharc


Financial Statements it 23 I 04110

Statement ofnet assets at23/04/10

Expresscd in EUR

Note 3

Changes in nurnber ofshares oulstanding &om 0lil0l09 to23/04/10

5,840.58

5,840.58

5,840.58

33.26

s,807.32


Period ending at: 23104110

TIlo ac{oDrpaD}ing Do&s foro .r int.gral pon of lhasc finamiol 6tatcnEnt8

SbaresShores redeemed outstandiing at

23104110

2,572.?tO

9,15.{.000

30/09i09

r,076,600.41

EUR

2,572.230

92.44

EUR

9,154.000

91.64

30/09/08

7,575,32t.43

EUR

4,572.230

92.M

EI.JR

12,s69.000

91.85

Sharesoutstanding at

0ut0t09

2,5',12.230

9,1s4.000

Sbares issued

0.000

0.000

0.000

0.000

Poge 24


Statement of Operations aod Changes in Net Assets from 01/10/09 to 23/04110

Expressed in EUR

rncome

Net dividendsNet interest on bondsBonk interest on cosh occount

Erpenses

Amortisotion of formotion expensesMqnogement & odvisory feesCustodion & sub-custodion teesToxe d'obonnementAdminisfroiive expensesDomiciliotion feesProfessionol feesBonk interest on overdroftsLegol feesOther expenses

Net loss from investments


- soles of investment securities- finonciol futures

Net reolised loss

Movement in net unreolised oppreciotion / depreciqtion on:- investments- finonciol futures

Decreose in net ossets os o result of operotions

Redemption copitolisotion shoresClass A

Class B

Decreqse in net ossets

Net ossets ot the beginning of the period

Net ossets ot the end of the period

Thc occoopsnyi.rg ootes fomr an iatcgml part ofthcsc fittidcial 6tat.mcn$

Noie2.5

Note2.5

Note2.5

Note2.6

Note4Note4

Note 3

Nore2.2

No!e?.3

Note2.8

19,668.61

t,826.77

t7,837.71

+.tJ

78,44439

8,478.05

33,645.s0

505.71

299.2r

19,426.42

1,404.08

6,r50.16

6.05

5,175.24? 14? (l7

-58,775.78

45187.94

t0298.96

-2,988,88

-26469.21

-620.00

-30,078.09

-t946,522.32-231,827.82

-814,694.50

-1,076600.,11

1,076,600.41

Poge25

Luxcellence- ICON Dynamic Euro

Poge26

Luxcellence - ICON Dynomic Euro

Manager's Report

. Equify markets rose strongly in March 2010, surging to their highest level since September 2008, as

market focus shifted from sovereign risk to the gLobal recovery story,Robust business surveys cross the globe confirmed the improvement in manufacturing activity.

Fears of a sovereign default in the Euro zone receded with the announcement thai European leadershad finally agreed on a rescue package for Greece.Equity markets are now in positive territory year to date, having effaced all the losses incurredbetween mid-Ianuary and mid-February.The euro remained under pressure, edging down to 1.35 against the dollar. Cornmodity prices wereunderpinned by sotid data from Qhins seafirming that Chinese demand would continue to be adriver for the sector,

Regarding our investoent policy, rve remain overweight on equitiesby 7% and on bonds by 70 bpof dwation. The earnings cycle is improving and though earnings revisions decelerate, they remainon a positive heud.Nevertheless, investors are more and more focused on the crisis exit strategies and their irnpact onthe monetary and fiscal policies which still remain loose.

In response to the request by the board to liquidate the Fund, we reduced in April our exposure tomid cap stocks in order to increase the liquidity of the portfolio and reduce the tracking eror withthe benchmark.

Lrxembourg, Ianuary, 201 1

The figures stated in this report are historical and not necessarily indicative of future performance.

Poge 27

Assets

Cosh oi bonks qnd liquidities

Liobilities

Toxe d'obonnement poyobleOiher liobilities

Net ossei volue

Closs ACopiiolisofion shores

Clqss BCopitolisolion shores

Totol Net Asseis

Closs A

Cnpitalisation sharesNumber ofshares


Closs B


Net asset value per shore


Financial Statements * 23 / 04 I l0Statement of net assets at23lM/10

Expressed in EUR

Note 3

Changes in nrunber ofshares outstanding from 0l/10/09 to 23/04110

s,321.02

5,527.02

5,521,02

23.96

s497.06

Sharesoutstanding at

01/10/09

2,500.674

13,124.374

SlraresShares issued Shares redeemeil outstsnaling at

23104/l0

0.000

0.000

2,500.674

13,t24.374

0.000

0.000


Peiod ending at: 23l04ll0

Tbe ocaoEpatryirg Dotw fono a! irrlegml p{i of fte$€ fi.Dorcicl srtes|cnts

3U09tng

1,26't,912.79

EUR

2,s00.674

81.95

EUR

13,124.374

80.99

30/09/08

2,424;748.20

EUR

5,680.60s

86.25

EI.JR

2249s.351

86.01

Poge28


Statement of Operations and Changes in Net Assets from 0l/10i09 to 23/04/10Emressed in EUR

lncomeNet dividendsNet interesi on bonds

Expenses

Amortisoiion of formotion expensesMonogement & odvisory feesCustodion & sub-custodion feesToxe d'obonnementAdminishotive expensesDomiciliotion feesProfessionol feesBonk interest on overdroftsLegol feesOf her exoenses

Net loss from investments


- soles of investment securiiies- finonciol futures

Net reolised loss


- investments- finonciol futures

Decreose in net ossets os o result of operotions

Redemption copitolisotion shoresClass A

Clu;s B

Decreose in net qssets

Net qssets of the beginning of the period

Net ossets ot the end of the period

Nots2.5

Note2,5

Note2.6

Note4

Note4

Note3

Note2.2

Note 2.3

Note2.8

14,614,03

7,123.U

?,490.39

82,598.99

8,478.05

34,85t.72

553.09

276.63

t9,464.43

1,404.08

6,150.16

57.27

4,008.33

7,355.23

-67,984.96

-5,971.40

9,249.39

-64,706,97

58,368.15

-870.00

-7,2t8,82

-1,260,701.97-203,077.41

-1,057,626.56

-1,267,912,79

1,261,912.79

Poge29

Luxcellence- Polunin Emerging Markets Technology Fund

Poge 30

Luxcellence - Polunin Emerging Morkets Technology Fund

Managerts Report

The fourth full year of performance history for the Fund was characterised by a good perfomrancerelative to both the MSCI EM Information Technology index, and also compared to the much broaderMSCI EMF index of alt emerging counffies and sectors. Over the year the Fund NAV rose *26.0Yo,whereas the MSCI EMF m Index rose +9.5% and the broader MSCI EMF index rose +17.7%.

In contast to last year, the Fund's lack of exposwe to the largest companies in the sector benefitted itsperformance significantly as most such stocks were poor performers. The exception was Infosys inIndia which rose t4Lo/o. Elsewhere Samsung Electronics fell -0.7Vo, TSMC fell by -15% and Hon HaiPrecision rose only +4.7%. Most of the action occurred in specific sectors such as Photovoltaic cellmanufacturers, where the Fund maintained a good allocation throughout the year. These sectors arenot well represented in the benchmarks and are poorly analysed by the principal inveshent banks.This lack of information has created a great deal of ineffrciency in valuations which the Fund was ableto successfirlly exploit during the year.

The overall attitude of gtobal investors to the technology sector has continued to improve from thevery low levels of interest witnessed at the top of the comrnodities boom 1n2007 and 2008. Potentialinvestors are at least wilting to hear the investment case

for a larger allocation to the Technology sector, but feware witling to commit capital to the idea at this stage.The NASDAQ index continues to outperforrn both theS&P500 (which has a significant Technology weighting)and more particularly the MSCI World index of gtobalequities, Within emerging markets, Tecbnology sectorshares performed exceptionally well between the top ofthe commodity boom in 2007/2008 and mid 2010, sincewhen the perforrnance has come off the boil as higherbeta sectors have taken a lead in the emerging marketsrally that started in September.

The following perfomrance charts of the DatasheamEmerging Markets Technology index highlight itsperfonnance in relation to some currently popular assets

classes. The first chart shows that emerging marketTechnology shares have fallen by over 90% compared withthe gold price since their peak in 1999. HoweverTechnology staged a very strong rebound in 2009 and thejudgement of the market for the future is still uncertain.

ou@erforming hanGomely since the mid

Compared rvithgtobal equities(Chart 2),

Technologyshares have been1990s. However

this likely has had more to do rvith their emerging marketcharacteristics than with their Technology sector status.Lastly, rvhen compared to the best performing asset class,global emerging market equities (which of course includesthe best sectors of the last decade such as raw materials andbanking), the picture is less clear (see Chart 3). TheTeclmology sector within emerging markets suffered terribly following the tech bust in 2000,

deslining by -75% up to 2007, Since then tech has started to perform much better, but has barelyrecovered any of its previous losses.

rrEsNOat</ilJwf,ll)5FRCt\r i7,,l t /64 TO r 7/t rn O MOt.tlr-Y

oz*or-d-oi-os-o7oi-iii-iii

Pqge 3l

Luxcellence - Polunin Emerging Mqrkets Technology Fund


Market participants put forward many theories and reasons for this chronic underperformance. The

technology investment glut of 1995 to 2002 is still being worked off, with excess capacity in many

sectors. Companies have little pricing power and consolidation among ildustry players has been

virtually non-existent. Tecbnology sector balance sheets in Asia are so strong that refum on equity

appears to be permanently depressed. The list of reasons continues. The key question is how much ofthis bad news has been discounted by the markets. We believe the Fund is well positioned to benefitfrom any change of investor sentiment to this asset class, and that any such change is much rnore

likely to be positive than negative at this stage ofthe cycle.

Luxembourg, January, 20 1 1

The figures stated in this report are historical and not necessarily indicative of future performance.

Poge 32


F inancial Statements at 30109 I L0

Statement ofnet assets at 30/09/10

Expressed in USD

Assets

Securities portfolio of morket volueCosl priccUnrealised apprecialion on the sccltrities poflfolio

Cosh ot bonk ond liquiditiesFormotion exoensesBrokers receivobleDividends receivobleOther ossets

Liobilities

Toxe d'obonnement poyobleEquolizotion poyoble to shoreholdenSubscriben poyobleAccrued monogement & odvisory feesPoyoble on spot exchongeOther liobilities

Net osset volue

Closs ACopitolisotion shores

Totol Net Assets

Closs A

Capitalisation shares

Number ofohares

Net a-sset value per sh8re

Note2.2

Note2.6

Note 3

Note4

Changes in number ofshares outstanding from 01/10i09 to 30/09i l0

14,U0,186.8r

ShoresShares redeemed outsttnding st

30/09/t0

8,510.477 12,7&5.929

11,264,203.06

13,975,227.7313,838,753.00

136,474.7j

17,032.46

1,32L34

237,19r.36

rr,930.u21,499.93

94,016.25

354.32

2t,499.93

r3,786.55

s2,304.96

tL2.&5,95?.85

Sharesoutstanillng et

0r/r0/09

15,026.078

Shsres Issued

6,270.328


Yearendingat: 30109110

usD 14,170,186.81

USD

r2,785.929

1,108.26

30/09/09

13,2r 1,668.43

USD

rsg26.0'18

879.25

30/09i08

22,046,s48.40

USD

32,t78.468

685.13

Poge 33

Luxcellence - Polunin Emerging Morkets Technology FundSecurities portfolio at 30/09/10

Erprxsed in USD

Qu@tity Dt!omiDsliooQ!olalion Morket Yoluc

Y.of NIoseE

Tronsferoble securities odmitted fo on officiol slock exchonge lisling ond/or deoll inon onoiher reguloted morkel

Shares

Bermudo7,361900 CHINA SOI.AR TNERGY

&ithh Vkgin lslonds33JOO RENESOLA

9,400 RENESOI,,A . ADR REPR 2 SHS

coyrnon ls,onds7O2OO CIIINA SUNERGY ADR RTPR"SIIS

5I,OOO JA SOLAR HOLDINGS CO LTD.ADR REPR I SIIS

39,IOO I,DK SOLAR- ADRRECEIPTREPR I SII

I 3OO NEW ORIENIAL EDUCATION & TECH.GR ADR RBI29.600 SOI.ARFUN PO\VER HLDGS -ADR. F.ECPR 5 SHS

395.OOO SOLARGIGA ENERGY

I83,IOO TI{E I.NITED I.ABOMTORIES INTL HLDG LTD

Chino6t 4200 BEDING DONGFANG ELECTROMCS GROIIP -B-

Hong Kong295,OOO TMUSON HOLDINGS COMPA}IY LlD

Maloysio258,960 UMSEI'I (M)

Singopore43OO,OOO GUANGZiAO INDUSTRIAL FORNST BIOT.GP.LTD

South Koreo2E7OO CRYSTALGENOMICS

I 6600 DISPLAY MANTJFACTT'RING SERVICE CO LTD

9O,OOO HANDYSOFT - SUSPENDED -

203 HANMI HOLDINGS

609 HANMI PHARM

27,300 }iANMI SEMICONDUCTOR CO LTD

4J93 I'ANSOL r,cD rNC

176.39 INNOCELL CORPgJOO ruSUNO EI'IGINEERING CO

4500 Ivrlt CO LTD32,860 K C TECH CO LTD

9 300 L,C DISPLq.Y

2,OOO LG ELECTROMCS INC

5.050 I,G LJFE SCIENCES LTD

I,480 SAI'SIiNG SDI CO LTD

2.1.495 gNU PRECI$ON CO LTD

8-2OO TECHNOSEMIC'}IAM CO LTD

28,100 ZALMAN TECE CO

Toiwon54,900 ABNOVA (TW)

I 14,635 ALTEK CORPORA]]ON

9I,OOO APCB INCr73-t00 ARDENTTC -SH$I t5.800 ASIA OPnCA!9I,9IO BRIGTIT LED ELECTROMCS CORP

I 8O,OOO CHIN-POON INDUSTRIAL

3,9?6 COMPAT ET ECiROMCS606,800 coMPEQ T4ANUFACRURTNG CO

I14,700 D LINK CORP

305J00 EPISIL TTCHNOLOGTES

295.728 ETRON TECTTNOLOGY

64,000 FORMOSA EPITAXY INC

99,700 GENESYS LOCIC

283.173 GIANTPLUS TECHNOLOGY

69.400 TIANNSTAR DISPLAY CORP

32q58 HUGA OPTOTECH INC48,3I I INSIDE SOFTWARE

16.442 JENTNCH PRECISION

248,133 KING CORE EI,ECIROMCS INC

32I,9OO KING YU.AN ELECIRICS320 OOO MOSEL VI'IELIC INC

3O.OOO NAN YA PRINTED C'IRCI,IT BOARD

Ths ocroEpaoying ootc! forD ao intcSral pan oftbcsc fiodlciol stalcmanls

HKD

GBP

USD

USD

USD

USD

USD

USD

HKDHKD

HKD

HKD

IVIYR

SGD

KRWKR1V

I(R\YKRWKRWXRW

KRWKRWXRWl(RWKRWKRWKRWKRWKR\YKRWKRW

KRW

TWDTWDTWDlWDTWDTWDTWDTWDTWDTWDTWDTWD

TWDTWDT\I'DTWD

TWDTWDTWDTWDTWDTWDlWD

t1,i22,729.2t 94,920/"

1321190221 93,4V.

187,765.23 r.i3%t87J65.23 r.33%

321,t56.15 2J7%203,656.45 1.44%

7,500.00 0.83%

2,162,348.59 15.26%316,602.00 2.23%

475,830.00 3,35./?,

40t ,948.00 2.9%| 26,8!r,00 0.9v/.389240.00 2.75%

,674,24 0.68%

355100.35 2,5t%

152,695.4 L08%152,695.V t.03%

137,939.52 0.97%137,939.52 0.910h

t66,095.71 t.t?%166,(D5.?l r.t't%

457,664.t5 3.2396457 ,{A.r5 321%

2,834,920.23 20.0r%168,819.13 t.lv/o157856.60 r.lt%

0.00 0.0CPti

7,1v2.46 0.05%

61420,74 0.43%

188,663.90 r.3t%t95,025.'t4 t.3\vo

160,1t6.62 t,13%189898.50 l.ZV/o

92,545.50 0.6Svo

162,U6.7t l.t4%321,350.60 2.28%

r68,559.s3 r.ty/o25r,116.00 1.78%

202A8t.n r,43%u3,82220 1.72%

189,133.97 t.33%

81,5?0.71 0.580/o

6,259,227,26 11.1696t87,t50.tD Lrz%t102s6.34 t.2@/o

91228.82 0.66%

138,fi4.57 0.97%

188,295.68 1.3!%

107,968.46 0,76%

t4?196.r0 r.u%4,693.63 O.O1y.

198,113.39 1.4V/o

125,378.25 0.880/,

i80,786.76 t.28r/o

227,180.87 1,6V/"

86,858.82 0.6176

193,071.70 1.366/"

208p5.2t 7.47%

1J8396.03 O.98%

318,537.64 2.25%

134534.40 0.95%

96,3 r 0.54 0.8%ut449.43 t,IV/"t45,795.96 1.03V"

178221.46 126%6,19r.59 0.9yo

Poge 34

Luxcellence - Polunin Emerging Morkets Technology FundSecurities portfolio at 30i09/I0

Exorcssed in USD

Qulotity DcBomid{tioo Quobtiooc1rlTeEcy

% ofdett\l]ul(et vuut

INSCG

13I,3I7 PAN INTERNATIONAL INDUSTRIAL CORP

I5O,OOO PAN IIT INTERNATIONAL195,000 QISDA CORF

439,398 RITEK CORPORATION

81,514 STNG,AMERTCAN STLICON PRODUCTS rNC

133,800 SPRINCSOF| INC2 16,000 SIjNPLUS TECHNOLOGY

I 7q240 TArr TECHNOT,OCY CO Lm168,600 TAIWAN SEMICONDUCTOR CO LTD117,480 TOPCO SCIEIITIFIC CO LTD67,000 Txc coRP

244,852 TYNTEK CORI118,745 TINIMCRON TECHNOLOGY CORP

306800 wn6IN IECHNOLOGY CORPORATION

489,500 YACEO CORPORATTON

Thoitond1.{O,OOO DELTA ELECTROMC.F- REC

I,187,500 SOLARTRON. POREIGN RECTSTERED

I,600,000 SVI FOREIGN REGTSTERED

Uniled Sloles of Amedco8,500 IG.ATE

Opllons, Woronls, Rlghlr

Ihe Nethedonds30,700 n MoRGAN (POI,ARIS SOFT\4 16.02.15 WAR

Other tronsferoble securitiesOptlons, Wononb, Rlghls

Unifed Kingdoms0,499 UBS LONDON OTOTECH IND) $.0?.13 WAR

86,000 uBs LoNDoN ovAFER WOnKS) 09.07.13 WAR

Unifed Slofes of Amenbo4,900 crrlcRoup (INTosYs TEcHNo) 24.10.12 wAR

Total securities porffolio

TWDTWDTWDTWDTWD

TWD

TWDTWI}TNDT\IDTWDTWD

T\vDT'wx)

THB

T1IB

T}IB

USD

USD

205,t20,40 t.45%184,3?0.13 130%138153.59 0.98%

123,908.?8 0.81%

244,5X8.U l.1r%167,t27.82 l.l8%t66,6u,5r t.t8%r91,'1vt;10 t.37%135,996.02 0.96%

150,979.35 r.m%u9,667.74 0.81%

202,988.53 |43%20838?.87 t.4't%

179,219.93 r,26v.

210,?38.10 1,49%

377,899.23 2.67%125,?00.07 0.89%

105,642.43 0.75%

116,556,13 t.gt%

154,190.00 L09%154,190.00 1.099'.

110,827.00 0.18y.

fi0,827.00 0.78%110 827.00 0;18%

6s\498.52 4.601/.

652A98.52 1.60%

318,730.t2 2.25%

187,869.51 1.31%

t3q860.6r 0.9Y/.

333,768.10 2,35%333,768.10 2.35%

13p75,227JX 98,62Y.

USD

USD

USD

Tha lccotlvrallyina ootcs fonr e! idcErd Dad ofthcsc f(rltrcial statemsnts

Poge 35


Statement of Operations and Changes inNet Assets from 01/10/09 to 30i09/10

ExDressed in ASD

lncomeNet dividendsOlher income

Expenses

Amortisolion of formotion expensesMonogement & odvisory feesCuslodion & sub-custodion fees

Toxe d'obonnementAdminislrotive expensesDomiciliotion feesProfessionol feesBonk inleresl on overdroftsLegol feesOlher exoenses

Net loss from invesfments


- soles of investment securilies- foreign exchonge

Net reolised profil

Movement in net unreolised opprecioiion / deprecioiion on:

- invesfments

Increose in nel ossets os o result of operqtions

Subscriplion copilolisolion shoresCIasA

Redemplion copitolisolion shoresClass A

lncreqse in nel ossets

Nei ossets ot the beginning of the yeor

Nei ossels of fhe end of ihe yeor

Th9 ocroopaoyiu-q lotrs form c! idrgtol pd ofthcsc finorcill shtcmcnts

Note 2.5

Noie 2.6

Note4

Note4

Note 3

Note2.2

Note2.3

Note2.4

149287.74

140,867.73

8lL9.4t

438,783.57

2,034.59

222,653.71

16220.06

1,487.34

42,572.36

3,025.06

I1,084.48

1,290.15

7,727.49

130,694.33

-289'396.43

r,465,817.94

44,606.16

1,131,71535

2,M5,419.16

3,177,1345t

5,999,544.725,999,544.72

-8,2r8,160.85-8,218,160.85

9s&st838

t3prr,66E.4!

14,170,186.8t

Poge 36

Luxcellence- Senhouse European Focus Fund

Poge 37

Luxcellence - Senhouse Europeon Focus Fund

Manager's Report

Over the course ofthe reporting year the Senhouse European Focus Fund (SEFF) generated a retum of2.70olo versus the FTSE Europe ex-IlK's -246%. During this period, SEFF held only equities, and did

not have any holdings in govemment bonds. A variable weighting of cash was held as appropriate to

the prevailing market conditions, as the manager waited for valuations in certain "target" companies to

become more attractive.

The seemingly small net change in both the index and the firnd over ttre reporting year could give a

misleading impression of calm in global markets. Indeed, nothing could be fitrther from the tuth as

global markets encountered considerable volatility over the twelve month period. A sharp fall inmmkets in November 2009 gave way to what is traditionally termed the "Santa Claus Rally" into the

year end. However, the holiday spirit rapidly gave way to reality, as markets focused on the Southem

European tates' solvency. The manager had long been concerned about the stresses that the eurozone

would face given the inherent contradictions in the make-up of the euro, which had always been a

political, rather than economic, construct. As such, markets should not bave been surprised when

Soutbem European states were rocked by national debt concerns, The fi.rnd retained a weighting in the

Spanish-listed telecoms company, Telefonica, but this was the only Southern European holding, once

the stake in Fiat had been so1d.

These fears gave way to a rebound in risk assets in lQ 10, which proved to be a 'pain trade" for the

fund, given the manager's decision to remove risk from the firnd until some clear form of political

and/or economic settlement had been reacbed. Howevet, tbe market's complacency was shortJived as

further political ructions came to dominate the markets, and the ECB was forced to rorv back on rules

and procedures that had been designed as the foundations of the euro's credibility, in order to buy

short-term confidence in the markets that the single currency union would not break up, Therefore, the

ECB started to buy government debt, and European banks moved holdings ofrislqy sovereign debt into

parts of their balance sheets which meant that suoh holdings would not have to be marked to n:arket.

Aware of the risks that these banks held and continue to bold, the manager remained zero-weighted inEuropean financials.

This view is in keeping with the philosophy and investrnent process of the fund manager; namely that

risk is viewed on an absolute basis, on a company by company case. In other words, the manager is

happy for the firnd's sectoral and stock constituents to differ uarkedly from those of the index, given

that tbe index can itself be replete with companies that bave their own risk dynamics in absolute terms.

The four main investnent themes tlat the manager has identified as being the most favourable to seek

value in are as follows: Consolidation and restructuring. One company, SSL, was bought by Reckitt

Benckiser. Anotler holding, Subsea &, merged with a competitor. Repsol benefitted from a Sinopec

"buy in'' of their Brazilian assets, and other holdings such as BASF are continuing to restucture. The

second is a shift in consumer preferences, either downwards in the West, or uprvards in emerging

markets. Such a company is Piaggio, breaking in to new markets such as the US where sales are

growing by 50Yo as consumers oshift down', and in India where consumers 'shift up'. Another theme

is the ownership of companies that offer high dividend yields, well covered by cashflow. The telecom

sector is an excellent example, where revenue growth is driven by t}te existential growth in data usage

propelled by the widespread availability of "smart phones", in an environment where fixed income

instruments (whether corporate or sovereign) have limited capital upside and are currently pricing in

an extended period ofdeflation.

Poge 38



Going forward, the manager will remain focussed on companies' fundamentals, especially companies

trading at athactive valuations and which gamer a large percentage of their earnings from overseas

markets which continue to shorv resilient and secular grorvth.

Julian Pendock. London. October 20. 2010.

The figures stated in this report are historical and not necessarily indicative of future perfonnance.

Poge 39


Financial Statements at 34fi9 flO

Statement of net assets at 30/09110

Emresseel itr GBP

Assets

Securities portfolio ol morket volueCost price(Jnrealised appreciation on the seanities portfolio

Cosh ol bonk ond liquiditiesFormotion expensesSubscribers receivobleReceivoble on spol exchonge

Liobilities

Toxe d'obonnement poyobleAccrued monogemenl & odv'tsory feesOiher liobililies

Net osset volue

Closs ADistribulion shores

Closs BDistribufion shores

Tolol Nel Assels

Closs A

Distribution sharesNumber ofshares

Net asset value p€r sbare

Closs B

Distribution sharesNumber of shares


Note2.2

Note 2.6

Note 3

Note4

Changes in nurnber ofshares outstanding from 0l/10/09 to 30109110

11,873,742.80

SbaresShares issued Shares redeemed outstanding at

30/09/10

11p00,755.48

93s3,430.208,233,834.99

1,t 19,59s.21

2,430,259.45

5,215.72

717,769.44

60.67

25,012,68

1,4M.55

10,326.s2

13,201.61

0.000


Sharesoulstanding at

0l/10i09

96,628.2s7

Yeor ending at:

GBP

32,143.416

14,576.000

15,026.110

0.000

1"t3,745.563

14s76.000

30/09/10

11,875,742.80

GBP

I13,745.563

92.55

GBP

14,s76.000

92.52

30/09/09

8,7t0,241.7 |

GBP

96,628.257

90.14

GBP

30/09/08

1,868,5s6.29

GBP

24,9483U74.90

GBP

Tha lccooparying lotes form ar integral pot oflhese flloicial stoterDcDts

Poge40

Luxcellence - Senhouse Europeon Focus FundSecurities portfolio at 30/09/10

Exoressed in GBP

Qu!!tity Dcaomirstioo QuohlioncllrrCOsy

lrlarkcrvaluc %ofdctltscul

Tronsferoble securities odmitted to on officiol stock exchonge listing ond/or deolt inon onother reguloted morket

Shoret

9,333,651.20 78.59%

9J33,6srr0 7859y.

590.130.77 1.9716

590{30;t't 4.9't%

548,876.74 4.62%548,876.74 4,62%

985.378.63 8.10%405,865.14 3.42%

5'19,513.49 4.88%

t.628,J9t.00 13,70%439,095.09 J.1V/.5T2,862.05 4.40%

666,433.86 5.60%

589,898.62 4.97%589,898.62 1.97%

675,659.32 5.69%6',t5,659.32 5.69%

1,t79,882.94 9.94%662,96t.94 5.59%

516,92r.00 4.35%

559,991.81 1,72%Js9,994.81 4.72%

1,601,495.97 13.48%

588151.39 4.9s%

531212.19 4.41%

482,032.19 4,06%

973,642.40 8.20%509,930.?2 4.30%

463,7!.68 3,90%

19,779.00 0,r1%

19,79,00 O.r1y.

19,779.00 0.17%19,?79.00 0.r7%

9,353,130.20 78,16%

Belgium15,740 A}THEUSER.BUSCH INBEV NV

Coymon lslonds44,810 SUESEA T rNC

FronceI2,J?4 AISTOM SA

33,790 ITVENDI SA

Ge'.r.onyIO,98O BASF . NAMEN AKT12,675 METRO AG,{8,315 TOCi{uM AG

Itoty294,766 PIAGGTO AND C SPA

PolandI?7,OOO POLISH TELECOM SA

Spo,n,t0,?09 Rrpsol l?F sA33,088 TELEFONICA SA

Sweden26,875 A)(FOOD AB

Switzertondt?,290 NESTLE SA REG SHS

2,068 SWISSCOL{ SHS NOL{2,994 SYNCENTA NAMEN

Ihe Nelherfonds5T,990 KONINKUJKE KPN NV24,5t0 UNILEVERIW

Shores of Ucis

Shores/UnAs h lnveslmenl funds

Germony180 ISHARES EB REO( COVERNEIIIENT DE(J 5.5-10.5

Total securities portfolio

EUR

NOK

EIJR

EUR

ELIRPI IT'

EUR

Ft rp

PLN

EUR

EUR

SEK

CIIFC}TF

CHF

EUR

EUR

Thc lqoompanying dot$ forlt ao idtrgral pa* of&csc fi@scial stntcmcnts

Poge,tl


Statement of Operations and Changes in Net Assets from 0l/10i09 to 30/09/10

Expr*sed in GBP

lncomeNet dividendsBonk interest on cosh occountOtherincome

Exoenses

Amoriisotion of formolion expensesMonogement & odvisory feesCustodion & sub-custodion feesToxe d'obonnemenlAdminislrolive expensesDomiciliotion feesProfessionol feesBonk inleresi on overdroftsLegol feesOlher expenses

Net income from investmenls


- soles of inveslment securiiies- foreign exchonge

Nei reolised profit

Movemeni in net unreolised oppreciotion / depreciotion on:

- invesf menls

Increose in nei osseis os q result of operotions

Subscripiion dishibulion shoresClass A

Class B

Redemotion dislribution shoresClass A

lncreose in nel osseis

Net ossets of lhe beginning of the yeor

Net qssels ol fhe end of the yeor

The occoElrarying Dotcs fon! an hrlgral pql oflb€sc firdDci.l stlrcmcnls

Note2.5

Note2.5

Note2.6

Note4

Nole 4

Note 3

Note2.2

Note2.3

Note 2.4

309,584.21

109203.22

8.99

372.00

273?76.42

2,165.69

78,936.43

28,793.s4

5,343.47

63,883.02

2,614.07

5,582.47

58.90

9,787.65

76,71r.18

36307.79

570,5&.53

-70,943.92

535,928.40

-240,356.68

295F7r,72

4,192,166.092,913,486.35

I,278,679.74

-r,322236.72-1,322,236.72

3,16sFol.o9

8:fl0p4r,71

1r,87s,742.80

Poge42

Luxcellence- Nexar Liquid Fund

Poge 4il

Luxcellence - Nexor Liquid Fund

Manager's Report

Nexar Liquid Fund rvas launched in December of 2009. The fund provides weekly liquidify to investors

and invests in liquid UCITS III hedge funds. The objectives of the fund are: (i) to provide investors with a

vehicle to diversiff lheir investrnents in UCITS III funds; (ii) to choose the best frrnds within each

strategy in which to iDvest; (iii) to provide low volatility; (iv) to provide steady retums and; (v) to Protectinveston' capital.We believe that the Nexar Liquid Fund is a good cash substitute. Our goal is to attempt to provide

investors witb a retum of approximately Libor + 300bp (basis points).

We tend to invest in approximately twenty firnds, which we believe provide substantial diversification, Atthe outset, the fund was launcbed with approximately eleven names, but over the course of tle year, wegradually increased the n^mes in the portfolio to approximately twenfy during the third quarter of tbe

year. We have conducted extensive research on UCITS III funds and have seleoted approximately sixtypotential underlying fi.rnds for complete investment research review and risk due diligence. We divide the

construction of tbe Nexar Liquid Fund portfolio into primarily tlree main shategies: Eguity Hedge,

Relative Value and Global Macro/CTA. Given our cautious stance on the markets throughout 2010, wehave limited the allocation to directional longishort equity managers. At launch, this allocation reached

28.5% and it continued to exceed 20% until late May. Since tlen, the allocation has been reduced.

Allocation to Relative Value, primarily consisting of market neutral equity funds, bas represented to bulkof the allocation, or approximately 40Vo, while Global Macro/CTA has remained around 30%.'We have

held some cash over the course of the year, but consistently lowered it, until reaching approximately 3%

currently. Our aim is to deliver a fund that is de-correlated to the equity markets and with a fairly lowbeta. Torvard this end, we invest dynarnically in the Nexar Short Bias UCITS fund, which helps dampen

overall volatility ofthe portfolio and to reduce the beta. Consequently, we have been running tbe portfoliowith approximately 0.05 beta for most of the year.

Portfolio tumover in our diversified firnd of firnds is approximately 30o/o per annum, which allows us tobetter re-allocate assets among shategies and to bring new and better undetlying funds to the line-up. Asthe UCITS III format has become more appealing to hedge fund managers, we have seen the quality ofthe managers available for investrent improve.

The Nexar Liquid Funtl posted positive perfonuances for both the first aod tle third quarter of 98bp and

96bp, respectively, for the Euro share class. The firnd suffered its largest drawdown rnonth in May given

tle increase in volatility in the markets due to the European sovereign debt crisis. The second quarterclosed witb a loss of l80bp for the same share class. Since then, we believe that the portfolio has

performed very well, delivering positive retums for July-October montls, despite extreme up and downmoves in the markets. The beta of the fund has decreased steadily from approximately 0.10 at inception toapproximately 0.05 in July, rvhere it has since remained fairly steady.

It is worth notiag that January and February performance reflects primarily costs (fees) of running the

fund, as the ftst inveshnent made was on February 25th. Our risk aversion at the beginning of the year

made us delay investing for a couple of months.

Nexar Capital SAS

Lrxembourg, January, 201 I

The figures stated in this report are historical and not necessarily indicative offuture performance.

Pogs 44


Financial Statements at 3UA9 fiO

Statement of net assets at 30/09/10

Ex4rcssed iu EUR

Assets

Securifies portfolio of market volueCost price

Unrealbed appreciation on the sccarittes portfolio

Cosh ot bonk ond liouiditiesFormoiion expenses Note2.5

Unreolised net oppreciotion on forword foreign exchonge controcts Note5,2,7

Other ossets

Liobilities

Bonk overdrottsBrokers poyoble

Note2.2

r.000

427.369

r,000.000

6,965.531

20,000.000

8,622.449

4,000.000

33,323,696.51

29,I19,31 t.l628,890,740.74

228,570.42

4,062,993.44

53,961.69

82,98t.24

4,448.98

1rs45,722.81

1,258,682.5 r

234,237.99

2,906.87

23,082.77

26,812.67

Toxe d'obonnement poyobleAccrued monogement & odvisory feesOther liobilities

Net osset volue

Closs A EURCopitolisotion shores

Closs AF EUR

Copitolisotion shores

Closs AF USDCopitolisotion shores

Closs I EURCopilolisotion shores

Closs I USDCopitolisotion shores

C|oss PF EURCopitolisotion shores

Closs PF USDCopitolisotion shores

Note 3

Note4

Changes in number ofshares outstanding from I l/01/10 to 30/09/10

31,777,971.70

SheresShares redeemed outstandlng !t

30/09/10

Shorcsoutltanding at Shores lssued

1tl01/t0

0.000 0.000

0.000

0.000

999.000

0.000

16.898

2,000.000

1.000

427.369

1,000.000

5,966.531

20,000.000

8,605.551

2,000.000

0.000

0.000

0.000

0.000

0.000

0.000

Pogo 15

Tolol Nei Assets

Closs A EUR

Crpitalisotion shares

Number of shares

Net asset value pef shue

Closs AF EUR

CspitslisatioD shares

Number ofshares


Closs AF USD

Copitalisation sbares

Number ofshares

Net asset vBlue per shar€

Closs I EUR

Capitalisation shares

Number ofshares


Gloss I USD

Capilalisation sharesNumber of sbares

Net asset value per sharc

Clqss PF EUR

Capitalisatlon sbaresNumber ofshares


Closs PF USD




Key figures relatiog to the last 3 years

Periodendingat: 30109tL0

EUR tr,777,973.70

ET]R

1.000

983.64

EUR

427.369

9W.95

USD

1,000.000

986.75

EUR

5,966.531

990.99

USD

20,000.000

1,00s.90

EUR

8,605.551

997.36

USD

2,000.000

99r.79

Tfic dccoDpatryiDg trotes forlr a! idegral pEt ofthesc fllatrgiol sbtEm.lts

30/09/09 30/09i08

Poge46

Luxcellence - Nexor Liquid FundSecurities portfolio at 30/09/10

ExDressed it EUR

Quodtity Dcuomi!otion Quotrtioacrurlocy

t(orkct vduc 96 ofoctrulscu

Shores of Ucis

Shores/Unlls In lnveslment funds

France3.548 NEJGR SHORT BLAS UCITS .I. EUR 3 DEC

6pl4 RWOLI EQUTTY Fr.lND 4DEC CA.P

3,330 RWOLI US BOND FD FCP -I- CAP

IrelandI 0,079 I\{ARSRALL WACE DEVELOPED EUE TO['S .4. EUR

Luxembourg5,932 AC FCP STAT VALTJE MKT NTL ? VOL -EI'R A.6,826 BREVAN TIOWARD IIW II I{ACRO FX-B EUR- CAP

IO.O55 DB PLATTNT'M IV DBX SYSTEMATTC AI.P.TIGE.

166 EXANE FIJNDS I ARCHINIEDES .A. CAP

I48 EXANE RINDS I SICAV TEMPLIERS FD -A- CAP

509.2 I 6 GARTMORE VAR GBR ABS RET .I HDG CAP

I IOJ82 HENDERSON HORVARPAN EUE ALP+.I2. CAP

t8,429 MAN TJMB VARAHL TREND.I\{US I2O EUR- CAP

10,325 T,GRRILL LYI'ICH SOL YORK ED UCITS -B ETJR-

9,745 I{L I}W SOL BLUETREND UCITS .EU B ACc-24,9?3 ML TNV SOL VAR GLG EUE OPP UCITS .8. EIJR

I I , I& SCHRODER GAIA VAR EGERTON EUE EQ -C CAP

United Krngdom1237.945 BT"ACKROCKTJKABS AI,PHA FD.D' GBP CAP(,I 12"969 CAZENOVE ABS RET FD IJK ABS TCT FD .P2.

780,490 CF ODEY FD IJK ABSOLUTE RETURN .INS- GBP

Total securities portfolio

ETJR

Ff rp

EUR

EUR

EUR

EUR

E{JR

EIJR

EUR

EtJR

EUR

EUR

EUR

EUR

EUR

EUR

CBP

ETJR

GBP

29,119,311,16 91.630/o

29,lt93rr.r6 91.63/.

5,067,649.7? 15,95%3,354,836.39 10.56%

985,?4t.18 3.r0%

727 ,072,20 2,29%

Lt0t,15t.39 3.48%1,105,15r.39 x!8%

t8,986,M0.88 t9.71%712199.55 2.24%

687,524.?3 2,16%

1,038,102.67 3n%2A21,287 .66 'l .63%

2,522288.63 7 .94%

2,571239;t5 8,lel.1,182,189.61 3J2%1,895,401.77 596%t,t2822t.93 3,55%

t,0't2,872.t9 3.38%

2,540,2t6.03 7.99%

1208,196.86 3.8V//"

3,960,469.t2 12.46%l,%6,145.86 5.56./o

r,058,655.65 3.33%

1,t35,667.6r 1.5'l%

19,[931Lr6 9r.63y.

Thc accoarpuyinS dote.e form an istcgrrl psrt ofthcsc fioarcirl slqtements

Poge 17


Statement of Operations and Changes inNet Assets from 11/01/10 to 30i09/10Expr*sed in EUR

lncomeBonk inierest on cosh occounl

Expenses

Amoriisoiion of formotion expensesMonogemenl & odvisory feesCuslodion & sub-custodion feesToxe d'obonnemenlAdminislrolive expensesDomiciliotion feesProfessionol feesBonk inJeresl on overdroftsLegol feesOlher expenses

Net loss from investmenls


- soles of inveslment securilies- forword foreign exchonge conlrocts- foreign exchonge

Net reolised loss

Movement in net unreolised oppreciotion / depreciolion on:

- invesimenfs- forword foreign exchonge conlrocfs

Decreose in nei ossets os o result of operolions

Subscription copitolisolion shoresClass A EUR

Clast AF EUR

Class AF USD

Cltus I EUR

Class I USD

Class PF EUR

Class PF USD

Redemption copitolisolion shoresClass I EUR

Class PF EUR

Class PF USD

lncreose in net ossels

Net qssefs of lhe beginning of lhe period

Net ossels ot the end of lhe period

Thc occo8lranying lotes fonD atr iDtelml part ofthe.se liloDciol ststements

Note 2.5

Note2,6

Note 4

Note4Note 3

Note2.2

Note 2.3

Note2.7

Note2.4

4,482,U

4482.44

249,8/'4,49

6,009.39

142,630.57

3,r 35.55

3,s46.10

18,625.09

7,000.00

25,912.90

1,571.32

698.49

40,711.08

-245358.05

-170,M5.05

-t,16t,278.M-s51,910.81

-2,129,391,95

228,s70.42

82,981.24

-1,817,u0.29

36,120,987.921,000.00

426,000.00

734,9r s.8s

7,000,000.00

16,365,942.40

8,718,224.00

2,874,905.67

-2,52s,t73.93-989,074.46

-16,754.97

-I,519,344.50

37,777,973J0

31,777973.70

Poge.E

Luxcellence- Virtuoso Fund

Poge49


Managerts Report

The Sub-Fund Luxcellence - Virtuoso Fund was launched on March 2,2010 and re-allocates on amonthly basis between Euro Equities (through Euro Stoxx 50 fuhues haded on Eurex), Euro

Government Bonds (through Euro Bund futures traded on Eurex), European real estate stocks and

Euro money market instruments (short-tenn Euro Commercial Papers), The Sub-Fund is managed in asystematic way according to the Virtuoso stategy investnent formula. It aims at producing consisteut

absolute retums over medium-term periods with a controlled volatility'

The performaoce of the USD share class between March 2, 2010 and Septenrber 30, 2010 was minus

6.63% and that of *re GBP share class rvas rninus 7.63% during tle same period. Througbout all thisperiod and despite sigrificant market shocks mainly driven by the Euro Sovereign Debt crisis, the

Sub-Fund maintained a low volatility profile at around 7%. As a comparisoq the Euro equity market(represented by the Euro Stoxx 50 Index) dropped 4.5% during the same timeframe with a volatility of27o/o.

By analyzing the behaviour oftle Sub-Fund during the period from launch to September, 30, 2010,

we can identify the following six periods:

- From launch to mid-April 2010, the Sub-Fund exhibited a very stable flat behaviour;

- From mid-April 2010 to mid-May 2010, an extemal shock, in the form of the Greek crisis,invalidated the monthly allocation, rvhich consisted in a 50% notional exposure to Euro Stoxx 50

futures and a 100%, notional expoflue to Euro Bund futures. Although the Euro Stoxx 50 Index felldown by 16%, the Sub-Fund only fell by 4.87% despite a 50% exposure to Euro Stoxx 50 futures.

This demonstrated the ability of the Virtuoso shategy to build rather balanced monthly portfolios. Inthe case of the April/lvlay portfolio, the negative impact of the 50% exposrue to Ewo Stoxx 50 futures

was strongly mitigared by tbe positive impact of the 100% exposure to Euro Bund futures, rvhichslqyrocketed during the Greek crisis.

- From mid-May 2010 to end of July 2010, tle Sub-Fund managed to exhibit a very stable flatbehaviour despite the exheme instability of the markets in the wake of the Greek crisis.

- From beginning of August 2010 to mid-August 2010, the Sub-Fund was hit by the external shock

caused by the uncertainties relating to the US motretary policy (the so-called Quantitative Easing 2program), which led to an 8.5% draw-down in Euro equities. With 50% notional exposrue to EuroStoxx 50 futures, tle Sub-Fund went down by 2.95%.

- From mid-August 2010 to mid-September 2010, the Sub-Fund shongly benefited from a well-balanced portfolio consisting in a 50% exposure to Europeau real estate slocks and 100% notionalexposure to Euro Bund futures. This portrolio proved highly resilient in the bear equity market period

of the last two rveeks of August 2010 and in the bull equily market period of the first two weeks ofSeptember 201 0. The Sub-Fun d rulLied by l.92Yo.

- From mid-September 2010 to end of September 2010, tbe Sub-Fund exhibited a relatively stable flatbehaviour.


The figures stated in this report are historical and not necessarily indicatjve of future performance.

Poge 50

Assets

Securities portfolio of market volueCost price

Unrealised apprecidtion on lhe seatities porlfolio

Cosh ot bonks ond liquiditieslnterest receivcbleFormotion expensesSubscriben receivobleDividends receivoble

Liobilities

Bonk overdroftsBrokers poyobleToxe d'obonnement poyoble

Closs A EURCopitolisotion shores

Closs A USDCopitolisotion shores

Closs A GBPCopitolisotion shores


tr'inancial Statements Lt 30 109 ll0Statement of net assets at30/09110

Etpressed tu EW

Note 2.2

Note2.6

Note 3

Sharesoutstandlng at Shares issued

02t03trc

37,957,592,77

SheresShares redeemed outrtrnding st

30i09/r0

41,841,237.03

32,550,374.4432,542,227.01

8,147.43

11,148,549.07

2,762.12

52,403.86

45,O19.77

42,12'.1.7?

5,883,&4,26

263.r9

2,997,306.99

4,745.00

756,875.24

r,5&,254.40

506,060.00

42,224.31

I l,915.13

Subscribers poyobleUnreolised net depreciotion on fonrrord foreign exchonge conlrocts Note5,2.?Unreolised nel depreciotion on finonciol fufures Note6,2.8Accrued monogement & odvisory fees Note 4

Other liqbilities

Net osset volue

Chanses in number of shares outstandins.from02l03/10 to 30/09/10

0.000

0.000

0.000

5,003.890

34,012.550

0.000

1,055.000

964.000

3,948.890

33,048.550

20.000 20.000

Thc lc€oBpsryitrg sotcs foro on iotcgrcl part of th6c 6@rciol strt€o€ots

Poge 5l

Toiql Nef Assels

Clcss A EUR

Capitalisation sharcs

Number ofshares


Closs A USD

Capitalisrti on shqres

Number ofshares

Net asset value Per sharc

Closs A GBP

Copitalisatlon sharesNumber of sbares




Periodandingat: 30/09/10

EUR 3'.t,957,592.77

USD

3848.890

933.72

GBP

33,048.5s0

vz5. t L

Thc occodllanling Dolcs fonD .n b:tegrdl p'rt of ftesc i'uoDcial statcmcnls

30/09/09 30/09i08

20.000

996.32

Poge 52

Luxcellence - Virtuoso FundSecurities portfolio at 30/09/10

LXDTCSSCA U EUI(

Qo{otity lrc'or.ltrBuon Quotstionqulency I\ftrlrct vstnc voofac'

ilasct6

Tronsferoble securities odmitted to on officiol stock exchonge listing qnd/or deolt inon onother regulqted morket

Bonds

FronceI,5OO,OOO CARREFOUR EUR

EIJR

ETJR

ETJR

EUR

EUR

EUR

ETJR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

ETJR

I,5(}O,OOO CASINO GUICHARD PERR .IOO9/ITU

-l0ll/l0u

lrelondl,500,000uMcREDttBANKIRL -101r/lou

Total securities porffolio

Thc accompauyisg ootEs forE a! iltcgral psrt of (hcsc fur^ldciol statsments

-t026/Lru

-r0 0zllu-10 2rAou

-10 12Jl0u

-10 2rt tu-10 194lU

27,05r,975,60 7t.26%

2dp8{59553 7r.08./.

20,987,2M,73 55.28%1,498,742,31 3.95%

1,498,834.24 3.95%

2,998,M1.28 ',t.90%

2,998,800.48 7.89%

1198,106,56 3,95%

r,498,323.54 3.95%

1,498,563.88 X.95%

ry'99,408.15 3.95%

1199,737.55 3,95%

2,999,125.26 1,89%

tA99,523.48 3,95%

r,199,770,87 3.95%11499,770.87 3.95%

2,998,117.50 7,90%2,998,41?.50 7.90%

1,199,200.43 3.9t%1J99,200.43 3,95%

3,000p00 coFIRouTE3,000,000 DANoNE FINANCE

1,500,000 GDF suEzI,5OO,OOO LAFARGE1,500,000 PPR FINANCE

1,500,000 PRovENcE ALPES COTE AZUR(REG) -t0 29lt0UI,SOO,OOORTEEDFTRANSPORT -IOI4/I(IU3.OOO.OOO UMON FINANCE GRAINS .IO O8/IOU

I,5OO,OOO VEOLIA ENVIRONNEMENT .IO 22,IOU

Germony1,500,000 COiI|I{ERZBANK AG

Luxembourg3,000,000ARCELORN{ITTAL -l0lrrlou

Uniled Kingdom1,500,000 TEsco

Shqres

-t0 0zltu

Itoll/9?'94 BEM STABILI SPA

Money moket insirumentsFronce

3,000,000 ExAcoMvrA cLAtREFoNT -10 ll/rou1,000,fii0 ttAvAs t0 08/t0u

673E0,07

67,380.07 0.18%6',7,180.07 0,r8%

5198,398.84 t4.49%

3,998,627.97 10,54%2,998,995.34 7.9t%

999,632,63 2,61%

1,499,770.87 3.95%1499,770.87 3.95%

32,55037111 85.75o4

Poge 53

Luxcellence - Viriuoso Fund

Statement of Operations and Changes inNet Assets from 02103/10 to 30/09/10

Eflressed in EUR

lncomeNel dividendsNel inieresl on bondsBonk inleresl on lime deposilsOfherincome

Expenses

Amortisolion of formotion expensesMonogement & odvisory feesCuslodion & sub-cuslodion fees

Toxe d'obonnementAdministrotive expensesPerformonce ond License feesDomicilioiion feesProfessionol ieesBonk inleresl on overdroftsLegolfeesOther expenses

Net loss from inveslmenls

Nei reqlised profit / loss on:

- soles of invesimenl securities- foword foreign exchonge controcls- finonciol fuf ures

- foreign exchonge

Net reolised profil

Movemenl in net unreolised oppreciofion / depreciotion on:

- investments- forword foreign exchonge conlrocls- finonciol futures

Decreose in net ossels os o resull of operofions

Subscriplion copilolisolion shoresClagsAEUR

Class A USD

Class A GBP

Redemplion copilolisolion shoresClass A USD

Class A GBP

lncreqse in net ossels

Net ossels ot the beginning of the period

Net osseis of the end of lhe period

Nole2.6

Note 4

Note 4

Note3

Note4

Note2.5

Note2.5

Note2.5

Note2.2

Note2.3

Note2.7

Note2.8

Note2.4

220,440,43

118,772.92

93,994.75

7,658.89

13.87

1,075,305,55

6,810.34

441,613.38

8,042.25

13,760.95

23,803.5s

312,443.08

6,945.11

14,7?4.97

zo, I I t.JJ

210.84

220323.7s

{54,865.12

1,467210.77

2,84r,780.33

-3,002,913.13

-158,051.07

293,t6t,78

8,147.43

-1,564,254.40

-506,060.00

-1,769,005.19

41,s47,936.2020,000.00

j,683,208.65

37,844,727.55

-r,82r,338.24-736,316.15

-1,085,022.09

37-957.59237

37957592J7

Poge 54

LuxcellenceFlotes to the Financial Statements

Poge 55

Luxcellence

Notes to the Financial Statements at September 30,2010

| 1. General

Luxcellence (the "SICAV" or the "Fund") is a Luxembourg Umbrella "Soci6t6 d'Investissement d Capital

Variable", incorporated on June 12,1998 under Part I of the Law of March 30, 1988. On November 30, 2005

the Fund is converted to Part I of the law of December 20, 2002 relating to Undertakings for Collective

Investment and the law of August 10, 1915 on Commercial Companies. The SICAV is submitted to part I ofthe law dated December2D,2002. The SICAV is registered at the Luxembourg Register of Commerce under

thenumberB 9.695.

The SICAV has several sub-fi:nds. As at September 30, 2010, six sub-firnds were active :

-Lrxcellence - Divenified Portfolio launched on Novernb er 26,2004-Luxcellence - Genesis Fund launched on November 8,2001-Luxcellence - Poluoin Emerging Markets Technology Fund launched onMay 22'2006

- Class A-Luxcellence - Senhouse European Focus Fund launched on March 5, 2008

- Class A- Class B

-Luxcellence - Nexar Liquid Fund launched on December 3 l, 2009- Class A EUR- Class AI EUR- Class AF USD- Class I EUR- Class I USD- ClassPF EUR- Class PF USD

-Luxcellence - Virtuoso Fund larmched on March 2, 2010

- Class A EUR- ClassAUSD- Class A GBP

Tbe Board of Directors of the Fund decided to put into liquidation with effect as of September 30,2010 the

Luxcellence - Diversified Portfolio sub-firnd and the sub-firnds Luxcellence - ICON Consewative Euro and

Luxcellence - ICON Dynamic Eruo with effect as of April 23,2010.

The shares available for the sub-funds are only capitalisation shares except for Luxcellence - Senhouse

European Focus Fund which has distribution shares.

1. Presentation of Financial Statements

The Financial Statements are prepared in accordance with Lrxembourg regulations relating to undertakings

for collective investment.

The Financial Statements are presented on the basis of the latest net asset value calculated duing the

financial year. In accordance with the prospectus, the net asset values were calculated using the latest pricesand exchange rates known at the time of calculation.

of2.

Poge 56

, of

Luxcellence

Notes to the Financial Statements at September 30, 2010 (continued)

2, Valuation of investments

Securities listed on an official stock exchange or traded on any other regulated market are valued at the latestavailable price.As investment principles, every time such prices ar€ not representative of the fair value of the relevantsecurities and in case of unquoted or not regularly traded securities, the used value is their respectivereasonable foreseeable sales price as determined prudentty and in good faith by the Board of Directors inaccordance with generally accepted valuation principles.ln case of a short-term money market instnrment, the value of the inskument based on the net acquisitioncost, is gradually adjusted to the repurchase price thereof. In the event of material changes in marketcondiiions, the valuation basis ofthe investment is adjusted to the new yields.In a case ofa short-term discowrt inshument its value based on the net acquisition cost, is gradually adjustedto the redemption price thereof.The transaction fees related to securities purchased are included under the caption "Other expenses" in the

statement ofoperations and changes in net assets.

3. Realised profft and loss on sales of lnvestments

The profit and loss on sales of investments have been deterrnined on the basis ofaverage cost.

4. Foreisn exchange

The Financial Statements of Luxcellence - Genesis Fun{ Lrxcellence - Diversified Portfolio, Luxcellence -ICON Conservative Euro, Luxcellence - ICON Dynamic Euro, Lrxcellence - Nexar Liquid Fund,

Lrxcellence - Virnroso Fund sub-funds are maintained in EUR; for Luxcellence - Polunin Emerging MarketsTechnology Fund, the Financial Statements are maintained in USD, and in GBP for Luxcellence - Senhouse

European Focus Fund.

The market value of inveshnents and other assets and liabilities expressed in other currencies than the

reference currrency of each sub-f,rnd, have been converted at the exchange rates ruling at the year-end date,

The costs of inveshnents expressed in other currencies than the teference curency of each sub-fund have

been converted at the exchange rates ruling on the date of acquisition.

Unrealised exchange gains/losses arising on the valuation of the securities portfolio at market value are

included in unrealised net appreciation/depreciation on inveshnent securities. Other exchange gainsAosses

are directly taken into the statement of operations and changes in net assets,

Income and expenditure in crnrencies other than the currency of the sub-fund are converted into the curencyof the sub-fund at the closing exchange rate in force on the day of the transaction.

Any resulting gain or loss made on foreign exchange is included in the statement of changes in net assets.

5. Income from investments

Dividends are recognised as income on the date which the respective securities are listed as "ex-dividend".Interest is accrued on each valuation day.

Poge 57

ofI con

Luxcellence

Notes to the Financial Statements at September 30' 2010 (continued)

6. Formation exoenses

The fomration expenses are amortised over a period of5 years.

7. Forward foreign exchange confracts

The SICAV is authorised to enter into forward foreign exchange coltracts for the purchase of a specificcrurency at a fixed price on a future date as a hedge or cross-hedge against either specific transactions orpo*folio positions, All commitrnents are marked-to-market at the applicable translation rates and any

unrealised appreciation or depreciation are recorded in the statement of operations and changes in net assets.

Realised profits or losses are recorded at the time the forward foreign exchange conhacts are offset byentering into a closing transaction or matured by delivery of the currency,

8. Futures contraets

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

9. Options

Options are valued at their liquidative value based upon the settlement price on the exchange on which theparticular option is tracled.

10. Combined Financial Statements

The SICAV's desigrratetl crurency is the USD. fhe combined statement of net assets and statement ofoperations and changes in net assets represent the total of the statement of net assets and the statement ofoperations and changes in net assets of the individual sub-funds translated in USD at the exchange ratesprevailing at year-end.

As at September 30,2010, the following significant exchange rates were used :

1 EUR= 1.3652 USDI GBP = 1.5758065447 USD

3. Tax status

The SICAV is registered rurder Luxembourg law as an inveslment company with variable capital (Soci6t€

d'Investissement e Capital Variable - SICA$. Accordingly, no Luxembourg income or capital gains tax is at

present payable. I{owever, it is subject to a "taxe d'abonnement" of 0.05% per annum , based on its net asset

value. This tax is payable quarterly. However, the reduced tax of 0.01% per annum is applied forLuxcellence - Polunin Emerging Markets Technology Fund and some classes of Luxcellence - Nexar LiquidFund as thev are resticted to Institutional Investors.

Poge 58

Luxcellence

Notes to the Financial Statements at September 30, 2010 (continued)

4. , performance, license rnd custodian fees

The management, advisory, performance, license and custodian fees are as lbllows:

For Lrxcellence - Diversified Portfolio: The sub-flrnd pays a Management fee to the Management Company,payable quarterly, at an annual rate of 0.07% calculated on the sub-fund's average net asset value. TheManagement Company also coordinates the payments from the sub-frrnd to the Portfotio Managers, inrelation with the lnvestrnent Management fee at respective annual rates of 03A% calculated on the basis ofthe sub-fi.rnd's average net assets allocated to BNP Paribas Asset Management and 0.20% calculated on the

basis of the sub-fund's net assets allocated to GDP SIM S.p.A..

In addition, each of the Portfolio Managers is entitled to receive from the sub-fund, a pertbrmance feecalculated accrued and payable (if any) yearly in lureaxs, on December 31, at effective rates of, respectively,20% to BIrIP Paribas Asset Management, l|Yo to GDP SIM S.p.A. of the out performance of the allocatednet assets (withoui tax) if:

1) The appreciation of the allocated net assets exceeds the performance index, i.e.

the JP Morgan Euro Cash 3 months + 2% for BNP Paribas Asset Management;the JP Morgan Euro Cash 3 months +2Yofor GDP SIM S.p.A.;

2) The cumulative excess retum (CES:appreciation of the allocated net assets g)<6ssding theperformance index) at the end of the calculation period is greater than any previous higher CES

reached at the end of any preceding calculation period (fligh Water Mark).

For the year ended September 30, 2010, an amount of EUR 40,450.53 performance fees was charged to the

sub-fund.

As a percentage of the net asset value, the Custodian fee is a variable fee between 0.04% and 0.10% perannum.

For Luxcellence - Genesis Fund: The sub-fi,rnd does not pay in practice a Management fee to the

Management Company, although the prospectus indicates that the sub-firnd shall pay a management fee tothe Managernent Company, payabte quarterly, at an annual rate of maximum 1% per annurn calculated onthe sub-frnd's average net assets.

The Management Company also coordinates the payments frorn the sub-fund to the Portfolio Managers, inrelation with the Investment Management fee at respective annual rates of 0.075% calculated on the basis ofthe sub-fund's net assets allocated to Degroof Gestion Institutionnelle Luxembourg and 0.50% calculated on

the basis of the sub-firnd's net assets allocated to Banca Albertini Syz & C. S.p.A.,

Globat Wealth Management is entitled to receive an lnveshrent Advisory feg payable quarterly, as

compensation for the services it rendered to the sub-fund, at an annual rate of 0,30%o of the sub-fund'saverage net assets allocated to Degoof Gestion Institutionnelle Luxembourg.

As a percentage of the net asset value, the Custodian fee is a variable fee between 0,04% and 0.10% per

annum and payable mouthly.

For Luxcellence - ICON Conservative Euro: The sub-frurd pays a Management fee to the ManagemeniCompany, payable quarterly, at an annual rate of 0.04% calculated on the sub-fund's average net asset valueof each Class of Shares with a minimum of EUR 35,000 per annum.

Poge 59

Notes to the Financial Statements at September 30,2010 (continued)

| 4. Management, advisory, performance. license and custodian fees (continued) |

Luxcellence

The Management Company also coordinates the payments from the sub-fuad to the Portfolio Manager and

the Global Distributor, in relation with the Investnent Managernent fee at respective annual rates of 1.85%

calculated on the average net assets value of the A Class of Shares and 2.45o/o calculated on the average net

assets value of the B Class of Shares.

As a percentage of the net asset value, the Custodian fee is a variable fee between 0.14Yo and 0.20o/o per

annum.

For Luxcellence - ICON Dynamic Euro: The sub-fund pays a Management fee to the Management

Company, payable quarterly, at ao annual rate of 0.04% calculated on the sub-firnd's average net asset value

of each Class of Shares with a minimum of EllR 35,000 per annum. The Management Company also

coordinates the payments from the sub-fund to the Portfolio Manager aod the Global Disfibutor, in relation

with the Investment Management fee at respective annual rates of 1.85% calculated on the average net assets

value of the A Class of Shares and2.45o/o calculated on the average net assets value of the B Class of Shares.

As a percentage of the net asset value, the Custodian fee is a variable fee between 0.l4To and 0.20% per

aollrun,

For Luxcellence - Polunin Emereins Markets Technolog.y Fund: The sub-fund pays a Management fee to tleManagement Company, payable quarterly, at an annual rate of 0.10% calculated on the sub-firnd's average

net assets. The Management Company also coordinates the payments from the sub-fund to the Inveshnent

Manager, in relation with the Investrnent Management fee at an annual rate of 1.50o/o calculated on the sub-

fund's average net assets value.

In addition, the Investment Manager is entitled to receive a performance fee calculated as follows: 20% ofthe net new profits of the sub-fund, payable annually (if any) on December 31, and calculated on a share

equalization basis with the High Water Mark mechaoism.

For the year ended September 30, 2010, no perforrnance fee was charged to the sub-fund.

As a percentage ofthe net asset value, the Custodian fee is a variable fee between 0.04% and 0.10% perannum.

For Luxcellence - Senhouse European Focus Fund: The zub-fund pays a Management fee to the

Management Compaay, payable quarterly, at an armual rate of 0.l4Yo calculated on the sub-fund's average

net assets. The Management Company also coordinates the payments from the sub-fund to the InvesknentManager, in relation with the Investment Management fee at respective annual rates of 0,70% calculated on

the average net assets value of the A Class of Sbares and 0.75Yo calculated on the average net assets value ofthe B Class ofShares.

In addition, the Investment Manager is entitled to receive a performance fee calculated as follows: 15Yo ofthe increase in the net asset value per share of the Class in excess of the Hurdle Rate, subject to a maximumperformance fee of l% of tle current net asset value. The use of the Hurdle Rate ensures that investors willnot be charged a performance fee until any previous losses relative to the Hurdle Rate are recovered. TheHurdle Rate is the retum of tle index FTSE All Wodd Europe ex-UK TR GBP. The performance fee, if any,

is payable annually in atrears, in respect ofeach accounting period.

For the year ended September 30, 2010, no perforrnance fee was charged to the sub-fund.

Poge 60

Luxcellence

Notes to the tr'inancial Statements at September 30,2010 (continued)

4. license and custodian fees (contin

As a percentage of the oet asset value, the Custodian fee arnounts to 0.03% of the net asset value per share

class, with a minimum fee of EUR 2,500 per month.

For Luxcellence - Nexar Liquid Fund: The sub-firnd pays a Management fee to the Managernent Company,payable monthly, at an annual rate of 0.02%, with a minimum annual amount of EUR 30,000 and calculatedon the sub-fund's average net assets. The sub-fund also pays an Inveshnent Management fee to theInveshnent Manager, payable monthly and calculated on the average net assets value of each Class of Shares

at the following effective rates:

Investrnent Management fee

Class A EUR 1.60%Class AF EUR 2.00%Ctass AF USD 2.00%Class I EUR 0.60%Class I USD 0.60%CLass PF EUR 1.00%Class PF USD 1.00%

In addition, the Inveshnent Manager is entitled to receive a perforrnance fee, calculaied on the basis of the

average net assets of each Class of Shares and payable, if any, as of December 3 L The performance fee is apercentage of the out-performance attributable to each Class of Shares, being the appreciation (includingrealised and unrealised gains and losses) in the net assets of each Class of Shares in excess of theperformance of the EURIBOR one week * 200 basis points per annum (the "trurdle rate").

Perfomtance fee

Class A EUR 20.00%Class AF EURNoneClass AF USD NoneClass I EUR 20.00%Class I USD 20.00%Class PF E{"lRNoneClass PF USD None

For the year ended September 30, 2010, no performance fee was charged to the sub-fund.

As a percentage of the net asset value, the Custodian fee 'mounts to 0.03% of the net asset value per share

class, with a minimum fee of EUR 12,000 per annum. The minimum fee has been waived during the frst 6

months following the sub-fund's inception.

For Luxcellence - Virtuoso Fund: The sub-firnd pays a Management fee to the Management Company,payabte monthly, at ao annual rate of 0.02Yo, with a minimum annual amount of EUR 30,000 and calculated

on the sub-fund's average net assets. The sub-fund also pays an Investment Management fee to the

Investment Manager, payable monthly and calculated on the sub-fund's average net assets, at an arurual rate

of2%.

fu addition, the sub-flrnd pays to the Licensor a monthly license fee, in respect of each Class A Shares,

representing to 20Yo of the difference, if positive, between the Class A Shares net assets at each monthlyValuation Day and the same Class A Shares net assets on the preceding Monthly Valuation Day.

Poge 6l

Luxcellence

Notes to the Financial Statements at September 30,2010 (continued)

4. license and custodian fees

The calculation is based on the Class A Shares net assets after deduction of all fees payable over the

corresponding month and is adjusted to take into acoount subscription proceeds received by the Class AShares and the redemption paid to investors for the same Class A Shares. No loss carried forward principle is

applied in this calculation

For the year ended September 30, 2010, an amouot of EUR 312A43.08license fee was charged to the sub-

tund.

As a percentage of the net asset value, the Custodian fee amounts to 0.03% of the sub-fund's average net

assets, with a minimum fee of EUR 12,000 per annum. The minimum fee has been waived during the first 6months following the sub-fund's inception.

As at September 30, 2010, the sub-find Luxcellence - Nexar Liquid Fund had entered into the followingforward foreign exchange contracts:

Unrealisedappreciation/(depreciation)

Purchase Amount Amount EUR

As at September 30, 2010, the sub-ftnd Luxcellence - Virtuoso Fund had entered into the following forwardforeign exchange contracts:

unrealisedappreciation/(depre ci ation)

Purchase Amount Amount

EURGBPEURUSD

GBPUSDUSDEUR

2,921,797.8957,700.00

121,109.0023,030,753.74

31,330,711.893,624,871..18

920,476.75735,272.30

2As0,6s7.9870,516.35

104,950.0316,879,148.18

29n0t201029/10t201029t10/201029110/2010

Total

93,109.24(3,915.75)

(30.32)(6,18r.93)

Sale

GBPEURGBPEUR

EURSale

EUREURET.IR

USD

37,538,894.212,819,265.94

709,013.48990,992.65

t4/101201014n0/2010r4t10/2010r4tt0l20t0

Total

8298r.24

(r,374,993.67)(163,86s.i9)

(34,718.40)9,322.86

(1,564,254.40)

6. Positions on Futures Contracts

At Septernber 30, 2010, the open positions on financial futures were as follorvs:

Luxcellence - Genesis FundCurrency Quantity Buy- Sell Description Commitment

(EUR)Unrealised

appreciation/(depreciation)

(EI'R)EUR 300 S DJEIJRO STOXX sODECEMBER IO 8.223,000.00 110.000.00

Total 110.000.00

Poge 62

Luxcellence

Notes to the F'inancial Statements at September 30, 2010 (continued)

6. Posifions on f,'utures Contracts

,, to Lehman Brothers and other investments

As at September 30, 2010 the Luxcellence - Genesis Fund (ttre "sub-fund') holds a position of 45,000 sharesin Lehman Brothers Holding INC placed into administration. Within this context and in accordance with thedispositions ofthe Fund Prospectus, the Board has adopted in the circular resolution signed on December 22,2009 to valuate the securities until funher instructions, on a daily basis, at the market price provided byBloomberg as from the net asset value dated January 5,2010.

As at September 30, 2010 the Luxcellence - Polunin Emerging Markets Technotogy Fund (the "sub-fund')holds securities issued by Guangzhao tndustrial Forest Biotechnology Group Ltd. The quotation of thesecurities at the stock exchange of Singapow has been suspended since September 15, 2008. Since Iune [,2010, the securities have been again quoted at the Singapore Stock Exchange. Therefore, the Board has

adopted in the circular resolution signed on June 6, 2010 to valuate the securities at the last value quoted onan official stock exchange as Aom the net asset value dated June 7,2010.

As at September 30, 2010 the Luxcellence - Pohurin Emerging Markets Technology Fund holds securitiesissued by HandySoft Corporation. The quotation of the securities at the KRX Korea (KOSDAQ) Exchangehas been suspended as from August 2,2010. Within this context and in accordance with the dispositions ofthe Fund Prospechrs, the Board of Directors, in the circular resolution signed on August 24,2010, haddecided to value the securities at zero.

8. Guarantee

As at September 30, 2010 Luxcellence - Genesis Fund has entered into futures ftansactions (refer to note 6).Securities which have been given as guarantee for fuflres tansactions are evidenced by "*" in the portfolioof the sub-fund. As at september 30, 2010 the market value of these securities amounts to EUR 1,695,186.

9. event

The Board of Directors of the Fund decided to put into liquidation with effect as of November 15, 2010, the

sub-fund Luxcellence - Senhouse European Focus Fund.

Luxcellence - Virtuoso f,'undCurrency Quantity Buy- Sell Ilescription Commitment

(ErrR)Unrealised

appreclafion/(depreciation)

(EUR)EURETIR

104734

S

BEIJRO BUND FUTURE DECEMBER 10

DJ EIJRO STO)O( 50 DECEMBER 10

13,668,720.0020.096.920,00

(94,680.00)(411.380.00)

Total (506,060.00)

Poge 63

Documents

Luxcellence - Fundsquare