FONDACO GLOBAL FUND

as at 31/12/14

Fonds Commun de Placement

Database Publishing System: CO-Reporter® by CO-Link, Belgium.

Audited annual report

FONDACO GLOBAL FUND

R.C.S Luxembourg B 137.128Fondaco Lux S.A.

FONDACO GLOBAL FUND

Table of contents

Management and Administration Page 3 Manager’s Report Page 5 Audit Report Page 13 - Consolidated Page 15

- Fondaco Global Fund - Fondaco Lux Global Equities Page 18

- Fondaco Global Fund - Fondaco Lux EU Conviction Equities Page 23

- Fondaco Global Fund - Fondaco Lux Euro Cash Page 28

- Fondaco Global Fund - Fondaco Lux European Convertible Bonds Page 33

- Fondaco Global Fund - Fondaco Lux Asia Gov Active Beta Fund (formerly Fondaco Global Fund - Fondaco Lux Asia Maximum Bond Fund)

Page 40

- Fondaco Global Fund - Fondaco Lux International Bond Core Page 46

- Fondaco Global Fund - Fondaco Lux Global Inflation Linked (liquidated as at May 12, 2014)

Page 53

Notes to the financial statements Page 56 Supplementary information (unaudited) Page 65 No subscription may be accepted on the basis of the financial reports. Subscriptions are accepted only if they have been made on the basis of the current prospectus dated August 2014, which will be accompanied by the latest annual report and the latest semi-annual report if this is more recent than the annual report.

FONDACO GLOBAL FUND

Management and Administration

THE FUND Fondaco Global Fund 5, Allée Scheffer, L-2520 Luxembourg, Grand Duchy of Luxembourg. MANAGEMENT COMPANY Fondaco Lux S.A. 5, Allée Scheffer, L-2520 Luxembourg, Grand Duchy of Luxembourg. MEMBERS OF THE BOARD OF DIRECTORS OF THE MANAGEMENT COMPANY Chairman Fabio Libertini – Chief Financial Officer – Fondaco S.g.r. S.p.A., Vittorio Emanuele II, 71, Turin, Italy. Directors Henri Ninove – Director, Ersel Gestion Internationale S.A., 17 rue Jean l’Aveugle, 1148 Luxembourg, Grand Duchy of Luxembourg. Sharon Bentley-Hamlyn – Aubrey Capital Management Ltd, 22 Stafford Street, Edinburgh EH3 7BD, United-Kingdom (until April 10, 2014). Paolo Crozzoli, Senior Client Advisor, Fuchs & Associés Finance, 47 Boulevard Prince Henri, 1724 Luxembourg (since April 10, 2014). DELEGATES OF THE BOARD OF DIRECTORS WHO EFFECTIVELY CONDUCT THE BUSINESS OF THE MANAGEMENT COMPANY Noemi Madau – Head of Compliance Officer of Fondaco Lux S.A., 5, Allée Scheffer, L-2520 Luxembourg, Grand Duchy of Luxembourg. Giulio Senatore – Head of Risk Management of Fondaco Lux S.A., 5, Allée Scheffer, L-2520 Luxembourg, Grand Duchy of Luxembourg (until August 31, 2014). Manuela Boggione – Operations Team Responsible – Fondaco S.g.r. S.p,A., Vittorio Emanuele II n.71 - Turin - Italy. CUSTODIAN AND PAYING AGENT CACEIS Bank Luxembourg 5, Allée Scheffer, L-2520 Luxembourg, Grand Duchy of Luxembourg. ADMINISTRATIVE AGENT CACEIS Bank Luxembourg 5, Allée Scheffer, L-2520 Luxembourg, Grand Duchy of Luxembourg.

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Management and Administration (continued)

INVESTMENT MANAGERS For Fondaco Lux Global Equities: Independent Franchise Partners LLP, level 5, 20 Balderton Street, London W1K 6TL, United Kingdom. For Fondaco Lux EU Conviction Equities : Aubrey Capital Management Ltd, 22 Stafford Street, Edinburgh EH3 7BD, United Kingdom. For Fondaco Lux Euro Cash: Fondaco S.g.r. S.p.A, Vittorio Emanuele II, 71, Turin, Italy. For Fondaco Lux European Convertible Bonds: Aberdeen Asset Managers Limited, 10 Queen’s Terrace, Aberdeen AB10 1YG, United Kingdom. For Fondaco Lux Asia Gov Active Beta Fund: Fondaco S.g.r. S.p.A, Vittorio Emanuele II, 71, Turin, Italy. For Fondaco Lux International Bond Core: Colchester Global Investors Limited, Heathcoat House, 20 Savile Row, London W1S 3PR, United Kingdom. For Fondaco Lux Global Inflation Linked: Blackrock Advisors (UK) Ltd, 33 King William Street, London EC3R 9AS, United Kingdom. AUDITOR PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator, B.P. 1443, 1014 Luxembourg, Grand Duchy of Luxembourg

FONDACO GLOBAL FUND

Manager’s Report

Fondaco Lux Global Equities Your Global Franchise Fund appreciated slightly more than the broader global equity market in 2014, delivering a total return of 21.43% in EUR terms (gross of fees); the MSCI World (Net) Index rose 19.50% in EUR terms. Given where we are in this market cycle, we are pleased with these returns and trust that you are too. However, we would encourage clients to continue to evaluate the strategy’s returns over longer intervals and especially over full market cycles. We don't build Franchise portfolios to outpace fast-rising markets. Our goal is to earn attractive returns over a full market cycle while minimizing business and valuation risk. Experience in prior market cycles has taught us that if we succeed in protecting our clients’ capital from catastrophic loss in falling markets, then the natural compounding power of the companies we invest in should allow the Franchise strategies to earn a superior return. We are pleased that this has been the case over the course of the current market cycle. The three stocks with the strongest returns in EUR terms in 2014 were Zoetis (+61%), Apple (+59%) and Microsoft (+44%). The three stocks with the weakest returns were Coach (-44%), Davide Campari (-14%) and Scotts Miracle-Gro (-6%). The three biggest contributors to the Fund’s return were Apple, Novartis and Zoetis, which contributed 221, 157 and 148 basis points to the portfolio’s return respectively. The largest detractors from the Fund’s return were Coach, Davide Campari and GlaxoSmithKline which detracted 98, 32 and 18 basis points respectively. Portfolio Changes in 2014 During 2014, we initiated positions in Kirin Holdings, SABMiller and Zoetis. Kirin is the second largest beer company in Japan and possesses strong positions in a number of attractive beer markets. It has the largest market share in Australia and the number two position in Brazil, both markets with substantial profit pools. The company owns a 49% stake in San Miguel, the beer monopoly in the Philippines. Kirin has an opportunity to improve margins and returns on capital. We also believe significant value can be created by divesting non-core assets. Finally, we think there is an opportunity for the company’s Board to improve capital discipline via increased dividends and buybacks. SABMiller is the world’s second-largest brewer by revenues and owns key brands including Grolsch, Fosters, Miller, Peroni, Pilsner Urquell and VB. The company has significant exposure to attractive beer markets in Africa and Latin America. We estimate that approximately 60% of profits are earned from countries where the company has a market share in excess of 70%. This level of market share confers not only scale benefits in manufacturing but also access to distribution that is difficult for competitors to replicate. Our analysis suggests that there is significant opportunity for the company to improve margins, particularly in the United States and Latin America, and that management is taking the appropriate actions to address this. Zoetis was spun out of Pfizer in the first half of 2013 and is the largest global animal health company. The company produces medicines and vaccines for livestock and pets, as well as diagnostic products and genetic tests. Much like human health companies, Zoetis’ intangible assets lie in its strong brands and patents. These brands and patents confer resilient pricing power and sustain a 30% return on capital. We believe the company has significant potential to improve margins through cost savings and better working capital management. When combined with revenue growth, these improved margins should lead to healthy compounding of free cash flow in the medium to long-term. The key risks to the investment include increased government regulation and a divisional management team from Pfizer that lacks experience running an independent company. We initiated the position in Zoetis in May. Subsequent to this, Zoetis has attracted the attention of activist investors, which has led to strong stock price returns. At the end of December 2014, the company’s shares traded on an estimated free cash flow yield below 5%. Balancing the valuation against the activist involvement, we will continue to monitor the situation carefully.

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Manager’s Report (continued)

We sold the positions in Coach, Colgate-Palmolive, Scotts Miracle-Gro and Unilever. Coach is a US-based leather goods, handbag and accessory manufacturer and market leader in the high-margin premium handbag market in the US. The company held an investor day in June 2014 at which it announced restructuring plans that led us to reduce our expectations for the company’s sales, earnings and cash flows for the foreseeable future. Following the investor day, we decided to sell the position. We think that many of the actions that management outlined at the investor day should be good for the brand in the long-term. For example, the company plans to decrease the frequency and breadth of discounts, focus on its top markets within the US and improve product presentation in its stores. All of these should enhance brand equity. In addition, the designs from the new creative director appear to be stronger than in prior years and the company continues to grow in the men’s and international markets. However, two factors concerned us. First, the closure of unproductive US retail stores will skew the store footprint even more towards factory outlets. We view this as detrimental to brand equity. Second, our assessment of the financial impact of the restructuring suggests that the company will struggle to compound free cash flow for the foreseeable future. When combined with the execution risk of its transformation to a lifestyle brand, these new concerns caused us to reassess our investment thesis. On balance, the risk/reward trade-off had become less attractive and so we sold the position. We will no doubt go back and re-visit Coach once we start to see some evidence of how the restructuring is progressing. We sold the position in Colgate-Palmolive in May. The company is the global leader in the toothpaste and manual toothbrush categories with significant exposure to emerging market countries. The shares had performed well since our initial purchase in October 2010, delivering a total return of approximately 95% in USD terms compared to the broader MSCI World (Net) Index total return of approximately 50%. We continue to appreciate the quality of Colgate-Palmolive’s franchise and see several growth opportunities for the company. However, the share price had appreciated well ahead of its free cash flow growth and the estimated free cash flow yield fell below our 4.5% valuation threshold. We completed the final sale of Scotts Miracle-Gro in March 2014. We initiated the position in August 2005. Scotts Miracle-Gro is the world’s leading marketer of branded lawn and garden products. Our original investment thesis was predicated on its ability to lead category pricing through effective brand management and product innovation. The company has generated only modest revenue growth and margin improvement despite healthy growth in its underlying categories. Scotts Miracle-Gro’s share price rose 41% in 2013 and, at an estimated free cash flow yield of 5.5%, our analysis suggested the valuation no longer provided sufficient compensation for the risks associated with this company. Finally, we sold the position in Unilever in May. The company’s shares had performed well since our initial purchase in March 2005, delivering a total return in USD terms of approximately 190% compared to the broader MSCI World (Net) Index total return of approximately 80%. The company has a geographically advantaged portfolio with strong positions in emerging markets. In addition, the company’s category exposure has improved significantly during the time we have owned the stock, with a larger proportion of the portfolio focused on higher margin and faster growing personal care categories. Notwithstanding the improvement in the underlying business and consistent execution from the management team, the estimated free cash flow yield of the company’s shares fell below our 4.5% threshold. During the year we also trimmed positions in McGraw Hill Financial, Mondelēz, Moody’s, Novartis, Reckitt Benckiser and Zimmer, primarily for valuation reasons. Proceeds from these, and the final sales noted above, were re-invested into the new holdings and into existing positions in the portfolio including Accenture, British American Tobacco, Diageo, eBay, GlaxoSmithKline, Japan Tobacco, Microsoft and Philip Morris International. After the stock price and portfolio changes outlined above, your Global Franchise portfolio offered an estimated free cash flow yield of 5.8% for 2015. This valuation is not expensive in absolute terms but it is below the portfolio’s long term average. Rising stock prices coupled with limited earnings growth - partly due to weak economic activity and partly due to the stronger US Dollar - served to temper the growth in reported earnings and free cash flow.

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One of the other challenges we are wrestling with is a substantial compression of valuations not unlike what we observed between 2005-‘07. In the earlier part of this market cycle, free cash flow yields in our universe of companies were broadly distributed across a range from low to high single digits. More recently, we observe a very tight clustering of free cash flow yields around the middle of the range with little differentiation for gradations of quality or growth. We see anecdotal evidence that there is an analogous compression of valuations in the wider equity market and even in credit markets too. We think the portfolio continues to offer good value compared to very low yielding government bonds or richly-priced broader equity markets. However, further progress in stock markets may be difficult to sustain without meaningful improvement in earnings. Given this, we continue to focus on investing in only the highest quality franchises at reasonable valuations. Notes:

• Past investment returns are no guarantee of future results. Returns are provided GROSS of fees in EUR terms and include the reinvestment of dividends and income. Source: Northern Trust.

• Data as at 31 December 2014. Stock returns reflect total return in EUR for the period the stock was held from 1 January 2014 to 31 December 2014.

• The document has been prepared as information for investors and it is not a recommendation to buy or sell any particular security or to adopt any investment strategy. The comments and free cash flow yield estimates reflect the views of Independent Franchise Partners, LLP at the date of publication and are subject to change without notice to the recipients of this document. Free cash flow yield estimates are based on the Firm’s proprietary research and methodology. The portfolio’s valuation reflects the portfolio’s estimated free cash flow yield as at 31 December 2014 and is subject to change without notice.

Fondaco Lux EU Conviction Equities In the full year 2014 the Fund rose 7.3% versus a rise of 6.8% for the index (Fund performance figures stated net of fees). The Fund started the year well, outperforming in Q1, lagged the index over the next two quarters, finally picking up speed in Q4 to end the year ahead. There was in fact only one notably weak month in terms of relative performance, April, which saw a great rotation out of growth stocks and into value following a bout of risk aversion in the market. Fortunately this was recompensed as the market sentiment towards growth stocks recovered in Q4, on the expectations of QE in Europe and as the oil price plummeted from $100 to $60. This can be expected to benefit European non-oil producing countries, companies and individuals alike. The Fund had little exposure to oil by Q4, and what remained was sold. The Fund ended the year with 40 stocks, having acquired some 19 new positions. Turnover at 66% was slightly higher than in previous years. Fortunately there is no shortage of opportunity in European markets right now. The Fund ended 2014 with a broad geographic spread of investments, the largest weights being in Germany 27%, UK 22%, France 15%, and Switzerland 13%. The Fund had no exposure to Emerging Markets in 2014, having sold its last remaining position (in Turkey) in 2013. In terms of sector exposures the largest by the year end were in Semiconductors & Semiconductor Equipment 12%, Real Estate 10%, Diversified Financials 9%, Capital Goods 9%, Retailing 8%, Insurance 7%, Banks 7%, Automobiles & Components 7%, Media 6%, and Consumer Durables & Apparel 6%. Given the growth stock approach of the Fund, supported by Aubrey’s key tailwinds of Rising Prosperity, Behavioural Change, Innovation and Economic Maturity, this is entirely consistent. Semiconductors are delivering very high levels of earnings growth as innovation improves connectivity in many areas of life from smart phones, to cars and the Internet of Things. Real estate and diversified financials are benefiting as investor flows search out enhanced yield and returns.

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In the full year 2014 the best performing stocks, held for the whole year, were the following: Leonteq (structured products) rose 133% over the year as the company reported strong trading results with sales up 26% and net earnings +55%. We believe there is more to come as the company signs up new white-label partners for its products in Asia and elsewhere. Patrizia Immobilien (real estate) rose 75% as the company grew sales 34% and earnings (adj.) 55%; Elmos (semiconductors) rose 51% responding to an 11% rise in sales and a 92% rise in EPS. Ingenico (payment terminals & services) rose 50% reflecting a 17% rise in sales and a 46% rise in EPS; Bankinter rose 34%, revenues and EPS rising 6% and 14% respectively. Persimmon (UK housebuilder) rose 27% reflecting strong trading, supported by government sponsored schemes, delivering a 23% rise in sales and 44% rise in EPS; Whitbread (budget hotels and coffee shops) rose 27% following a 13% rise in sales and a 19% rise in EPS. Rathbone rose 27% growing sales and earnings 13% and 18% respectively. SES rose 26% despite sales and earnings growth of only 3% and 6%, the high dividend yield proving attractive in a market searching for yield. Great Portland Estates (property developer) rose 23% not fully reflecting in our view a 62% rise in sales and EPS in 2014. Of the stocks held for the full year only two delivered negative returns, Publicis which fell 10% after the proposed merger with Omnicom fell through and Generali, which fell 1%, the ongoing restructuring still perhaps not fully appreciated in the market. Modest growth is expected on average for the Eurozone in 2015, trend or slightly above trend growth in the UK, and any positive surprises can be expected to send markets higher. The Eurozone is benefitting from Quantitative Easing, a weaker currency and oil price, as well as low interest rates. European companies expect low double digit average EPS growth this year and it appears that a recovery in the investment cycle is underway. Governments are taking measures to stimulate the housing markets in the UK and France in particular. Politics remain a risk, with a Greek exit still a distinct possibility and an EU referendum in the UK possibly paving the way for a British exit, should the Conservatives win the general election in May. Against these concerns, Aubrey’s Wealth Cycle approach is leading us to areas of strong growth and companies with strong cash generation, many of whom are paying sizeable dividends back to shareholders. Fondaco Lux Euro Cash The Fund obtained a return equal to 0,06% in 2014, consistent with its characteristics and slide slightly below its benchmark, the Citigroup 1M Cash, which gained the 0.09%. While minimum rating required on sovereign and credit issuances is AA, given the extraordinary conditions of European money markets, characterized by a level of interest rates at historical lows, with negative yields on short maturities, the Fund has also been exposed to investment grade sovereign issuances (excluded Spain) for no more than 25% of the total assets. Volatility has been very low and reached 0.06% on the whole year, consistently with the conditions of the European money market. Commercial papers represented a large portion of the managed portfolio, almost 50% of the total assets; the investable universe have exposed to core and semi core sovereign or covered bond issuances, penalizing the performance of the Fund, given the extremely low returns of high credit quality money market bonds on very short term maturity (less than six months) during the year. Half of the portfolio, in particular, was invested in Italian Bonds and French bonds. In particular, Italian Bonds have roughly represented 25% of the overall portfolio and allowed to slightly increase the carry and the yield to maturity of the portfolio.

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Furthermore, the exposure of commercial papers have been increased steadily during the year, always with a maturity less than four months. Furthermore, on average only the 8% of them have been considered as not quoted money market instruments. Almost all the issuers have been instead Bank Institutions, or Government or listed issuers and have been considered eligible. The average portfolio duration was slightly shorter than 2 months in 2014 and has never exceeded the operational internal limit of one hundred and eighty days: on average it has been slightly higher than the duration of the Citigroup 1M Cash. The portfolio have never been exposed towards corporate bond as there was no offer with positive returns on short maturities (less than one year) in the market. The Nat Asset Value of the Fund vary significantly during the year: it was larger than 90 million in January but then fell down to 60 millions in September and then reached again 70 million in December. Fondaco Lux European Convertible Bonds Please note that the period covered by this report runs from 1st of January 2014 to 31st of December 2014. Financial markets summary 2014 was a volatile year for financial markets. Investors’ risk aversion increased due to geopolitical tensions (Russia, Ukraine) and slowing Asian demand. Economic activity indicators in Europe deteriorated which contrasted with the sustained growth trend in the US. Consequently, the ECB adopted further accommodative measures cutting its policy rates first in June and then again in September and fuelling speculations of direct QE to come in 2015. European interest rates decreased steadily over the entire period while equities and high-yield credit remained volatile. Financial assets performance Over the period, the Euro Stoxx equity index was up 1.71%, the 10-year German government yield decreased by 89bps, the BBB corporate bond spreads decreased by 23bps and the high-yield corporate bond spreads widened by 50bps. The benchmark of the fund, the UBS Europe Convertible Bond index, was up 4.69%. The convexity of the convertible bond asset class was demonstrated and the sensitivity of the universe to the most impacted sectors quickly decreased. As a result, European convertible bonds outperformed the European equity indices given their high exposure to Oil and Banks. Convertible bond valuations (implied volatilities) were very elevated at the start of the period and began to correct in the end of Q2 and during Q3 but then recovered in Q4 due to QE speculations and a subdued primary issuance. The European convertibles primary volume decreased to USD 26.6 billion from USD 29.5 billion in 2013.

Portfolio activity and positioning • Equity positioning:

We started 2014 with a small overweight position in equity sensitivity which we soon reduced to neutral and then to underweight at the end of March as economic data deteriorated and earnings estimates in Europe appeared too elevated. We maintained a small underweight target relative to the benchmark for the rest of the year which had a mostly positive effect on performance.

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• Credit positioning: In the first half of the year we kept our position from the end of 2013 – neutral credit spread duration vs the

benchmark and an underweight in the lowest credit quality names. Initially this was a source of underperformance as high yield bonds continued to rally but we decided in the second half to move to an underweight spread duration position. This was beneficial as credit became more volatile and our underweight in the most speculative issuers was also a source of over-performance as high yield spreads underperformed greatly relative to investment grade.

• Interest rate positioning: In the beginning of the period we kept a small underweight effective duration position, which had a negative impact. We moved back to a neutral duration position (vs the benchmark) at the end of the first quarter as very low growth and inflation eventually led to further measures by the ECB.

• Convertible bonds positioning: Valuations kept increasing for the first few months of 2014 so we restrained ourselves from investing in some of the most expensive names. The portfolio benefitted from a slightly lower sensitivity to volatility vs the benchmark in the end of Q2 when we saw a pick-up in new issuance and valuations started to fall. Although the correction was relatively short-lived, we gained some exposure and managed to remain neutral for the rest of the period. Our overweight position in large investment grade bonds was beneficial as their valuations increased quickly in the last quarter.

Portfolio performance The performance of the fund was slightly above the benchmark over the period. In the first half of the period our security selection weighted on relative performance: our underweight position in some names of the lower credit quality segment was a source of underperformance, as was our overweight in some cyclical capex-driven sectors (eg Oil Services, Equipment, Cables). In the volatile second half our overweight in large-cap cyclical companies with global exposure and the technology sector were advantageous as they outperformed the rest of the universe. The other main positive was our strategic underweight in some of the most speculative names as their equity and credit underlying moves underperformed the broader convertible market. Meanwhile, our overweight in oil services as well as some specific situations (eg: Gagfah takeover) weighted to an extent on relative performance. Fondaco Lux Asia Gov Active Beta Fund The Fund’s return was positive in 2014, approximately 15%, showing a relatively high volatility, close to 6%, but consistent with the characteristics of the underlying markets. The excess return with respect to its relevant benchmark was negative, close to 3.7%, affected mainly by several factors: the different weight of each country (the underweight of Korea and the overweight of China affected the underperformance), the overall fund’s total expense ratio, the relevant transaction cost and the fiscal treatment in some of the markets included in the investment universe; according to the characteristics of the fund, the tracking error was close to 3.8%. The Fund’s performance has been firmly positive and was driven by two factors: the favorable dynamics of Asian interest rates, mainly due to Central Banks’ rates cut and currency appreciation. The portfolio result was positively affected by the relevant appreciation of all the main Asian currencies with respect to the Euro.

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The investment universe comprises eight Asian countries: Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand, China and Honk Kong. The portfolio composition and construction has been changed in January: The Fund directly invests in the most liquid Asian local currency bond market countries through an equally weighted approach in order to limit turnover and transaction costs and to maximize countries and currencies diversification. Portfolio is periodically built up and rebalanced through an optimization quantitative model based on a “stratified sampling” approach in order to offer an efficient exposure to the standard market, minimizing transaction costs at each monthly rebalancing, monitoring the portfolio volatility and the number of securities. The amount of transaction costs paid by the Fund, even with less liquid markets, has been significantly lower. The NAV of the Fund steadily increased in 2013 from around 17M Euro to less than 19M for mark to market effect. Fondaco Lux International Bond Core Global bond yields generally fell in 2014 but the Citi World Government Bond Index generated a return of -0.48% as the strength of the US dollar outweighed the rally in bond markets. This appreciation of the Dollar was one of the major themes of the year, along with the 50% drop in the oil price. The Dollar Index, which averages the exchange rates of the Dollar against the world’s major currencies rallied 12.8% in 2014. The Fondaco portfolio returned -0.49% (gross of fees) representing an outperformance of 0.97% relative to the overall market benchmark. A clear theme of monetary policy divergence emerged during the past year as the Federal Reserve reduced and eventually ended its quantitative easing (QE) programme, raising the spectre of interest rate increases in 2015. Meanwhile the Bank of Japan announced an increase in the size of its asset purchase programme, and the European Central Bank reduced interest rates to new lows, including a negative deposit rate, and announced an asset purchase programme targeted at asset-backed securities and covered bonds. As the year came to an end, speculation was mounting that the ECB would soon announce government bond purchases and they subsequently did in January 2015. Lower interest rates and the rising probability of purchases by the ECB pushed yields in the euro area ever lower in 2014 and the region saw the highest US dollar hedged returns over the year. The higher yielding markets of Spain and Italy generated returns of 16.9% and 15.7% in US dollar hedged terms. Belgium was another exceptional performer, rallying over 14% in US dollar hedged terms and even the core German market produced double digit gains as yields fell to historically low levels. In the US, despite robust economic growth of over 4% annualized in the second and third quarters, falling unemployment and the ending of QE, the treasury market still generated a healthy return of 4.9%. Over the course of the year Colchester reduced exposure to the euro area as real yields declined dramatically. Exposure was increased to the US market as the relative real yield differential between the US and Europe was eroded.

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It was a difficult year for emerging markets in general with the Dollar strengthening and the prospect of tightening global liquidity conditions as the Fed begins to tighten policy later this year. Many of the emerging market economies with strong institutions and prudent macroeconomic policies were able to reduce interest rates to counter lower growth and maintain investor confidence however. In Mexico for example, highly significant structural reforms are being implemented to increase competition in certain sectors such as telecoms, and to allow foreign investment in the energy sector, which should boost productivity. In Poland the central bank was able to reduce interest rates to a record low of 2% to underpin growth as the country’s balance sheet remains robust. Both the Polish and Mexican bond markets generated strong US dollar hedged returns of 7.4% over the year. The Brazilian bond market underperformed amid a closely contested presidential election whilst the Brazilian central bank was forced to increase interest rates despite a weakening economy due to a build-up of inflationary pressures. Nonetheless the Brazilian bond market still eked out a positive return in US dollar hedged terms over the year, rallying 1.1%. On the currency markets, all of the major currencies declined against the US dollar. The worst performers tended to be the currencies of oil-exporting economies, such as the Norwegian krone, and those where monetary policy was being loosened over the past 12 months, such as the euro, the Japanese yen and the Swedish krona. The euro and the yen dropped 12% and 14% against the Dollar, whilst the Swedish and Norwegian currencies fell 21.9% and 23.6% respectively. The portfolio was significantly underweight the euro in 2014 and its depreciation was a major contributor to the relative outperformance over the period. The portfolio increased exposure to a number of currencies where valuations became more attractive during the year, specifically the yen and the Norwegian krone.

Luxembourg, April 30, 2015 Note: The information stated in this report is historical and not necessarily indicative of future performance.

Audit Report To the Unitholders of FONDACO GLOBAL FUND We have audited the accompanying financial statements of FONDACO GLOBAL FUND and of each of its sub-funds, which comprise the Statement of net assets and the Securities portfolio as at 31 December 2014 and the Statement of operations and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the Management Company for the financial statements The Board of Directors of the Management Company is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the Management Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the “Réviseur d’entreprises agréé” Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier”. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the “Réviseur d’entreprises agréé”, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the “Réviseur d’entreprises agréé” considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the Management Company, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. PricewaterhouseCoopers, Société coopérative, 2, rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg T: +352 494848 1, F:+352 494848 2900, www.pwc.lu Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256) R.C.S. Luxembourg B 65 477 - TVA LU25482518

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Opinion

In our opinion, the financial statements give a true and fair view of the financial position of FONDACOGLOBAL FUND and of each of its sub-funds as of 3 I December 2014, and of the results of their operations andchanges in their net assets for the year then ended in accordance with Luxembourg legal and regulatoryrequirements relating to the preparation of the financial statements.

Other matters

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

not been subject to specific audit procedures carried out in accordance with the standards described above.

Consequently, we express no opinion on such information. However, we have no observation to make concerningsuch information in the context of the financial statements taken as a whole.

PricewaterhouseCoopers, Soci6td coop6rative Luxembourg, April 30, 2015

Christophe Pittie

Poge l4

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FONDACO GLOBAL FUNDConsolidated

The accompanying notes form an integral part of these financial statements

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597,227,226.94Assets560,954,039.40Securities portfolio at market value 2Note503,761,958.70Cost price57,192,080.70Unrealised profit on the securities portfolio23,043,915.09Cash at banks and liquidities9,000,000.00Term deposits2,391,344.69Interest receivable

2,203.56Formation expenses 11Note254,742.29Dividends receivable

1,153,735.33Unrealised net profit on forward foreign exchange contracts 2, 7Note399,985.44Unrealised net profit on credit default swaps 2, 8Note27,261.14Other assets

1,308,307.63Liabilities490,000.00Collateral payable 14Note15,206.66Taxe d'abonnement payable 4Note

130,021.56Unrealised net loss on forward foreign exchange contracts 2, 7Note592,570.07Accrued management and advisory fees51,842.51Accrued professional fees5,092.83Payable on spot exchange

23,574.00Other liabilities

595,918,919.31Net asset value

FONDACO GLOBAL FUND

Financial Statements as at 31/12/14

Expressed in EUR

Statement of net assets as at 31/12/14

Consolidated


17Page

11,577,373.52Income4,092,466.48Net dividends 2Note6,629,797.57Net interest on bonds 2Note

4,063.62Bank interest on cash account 2Note3,315.00Bank interest on time deposits

42.94Other financial income604,722.23Interest on credit default swaps242,965.68Securities lending income 2, 9Note

3,214,997.56Expenses3,558.18Amortisation of formation expenses 11Note

2,209,733.84Management & advisory fees 5Note70,912.90Custodian & sub-custodian fees 6Note54,070.89Taxe d'abonnement 4Note

102,720.91Administrative expenses10,149.33Domiciliation fees66,852.37Professional fees13,991.66Bank interest on overdrafts26,993.00CSSF and legal fees

497,184.33Transaction fees 12Note1,082.29Interest on credit default swaps

157,747.86Other expenses

8,362,375.96Net income from investments

Net realised profit / loss on:9,460,739.17- sales of investment securities 2Note-319,111.92- forward foreign exchange contracts 2Note-177,180.00- financial futures 2Note

1,005,460.05- credit default swaps 2Note-4,896,170.68- foreign exchange 2Note

13,436,112.58Net realised profit

Movement in net unrealised appreciation / depreciation on:21,156,944.34- investments 2Note

542,728.60- forward foreign exchange contracts 2Note-78,000.00- financial futures 2Note

-533,823.16- credit default swaps 2Note

34,523,962.36Increase in net assets as a result of operations

-2,099,990.27Dividends paid 13Note40,702,153.96Subscription capitalisation units

422,809,896.24Subscription distribution units-21,339,248.96Redemption capitalisation units

-510,904,163.11Redemption distribution units

-36,307,389.78Decrease in net assets

13,464,279.86Reevaluation of opening consolidated NAV

618,762,029.23Net assets at the beginning of the year

595,918,919.31Net assets at the end of the year

EUR

Statement of Operations and Changes in Net Assets from 01/01/14 to 31/12/14

FONDACO GLOBAL FUNDConsolidated

Expressed in

18Page

FONDACO GLOBAL FUND- FONDACO LUX GLOBAL EQUITIES


19Page

119,132,628.17Assets116,106,066.52Securities portfolio at market value 2Note76,687,431.01Cost price39,418,635.51Unrealised profit on the securities portfolio2,822,855.70Cash at banks and liquidities

198,619.40Dividends receivable5,086.55Other assets

180,019.73Liabilities2,973.82Taxe d'abonnement payable 4Note

161,382.52Accrued management and advisory fees11,967.98Accrued professional fees3,695.41Other liabilities



Expressed in EUR


FONDACO GLOBAL FUND - FONDACO LUX GLOBAL EQUITIES

Class IDistribution units 834,235.10 834,235.10 834,235.10 834,235.10

Changes in number of units outstanding from 01/01/14 to 31/12/14

Units issued Units redeemed Units outstandingas at 31/12/14

Units outstandingas at 01/01/14

Key figures

Class I

Capitalisation units

0.000.00 0.00

0.00522,470.12

167.48Number of unitsNet asset value per unit

Distribution units

142.590.00

834,235.10 834,235.10118.2079.94

0.000.000.00

Number of unitsNet asset value per unitDividend per unit

EUR EUR EUR

Total Net Assets 118,952,608.44 98,608,380.86 87,501,753.38

31/12/1231/12/1331/12/14Year ending as at:

EUR


20Page

ANHEUSER-BUSCH INBEV NV43,745 4,105,905.70 3.45EUR

Transferable securities admitted to an official stock exchange listing and/or dealt inon another regulated market 116,106,066.52 97.61

Shares 116,106,066.52 97.61

Belgium 4,105,905.70 3.45

DANONE41,160 2,241,162.00 1.88EURFrance 4,832,517.00 4.06

SANOFI34,250 2,591,355.00 2.18EUR

ACCENTURE - SHS CLASS A54,299 4,007,639.10 3.37USDIreland 4,007,639.10 3.37

CAMPARI POST FRAZIONAMENTO373,448 1,926,991.68 1.62EURItaly 1,926,991.68 1.62

JAPAN TOBACCO172,300 3,952,430.04 3.33JPYJapan 7,369,923.76 6.20

KIRIN HOLDINGS CO LTD331,200 3,417,493.72 2.87JPY

EXPERIAN GROUP253,433 3,553,058.49 2.99GBPJersey Island 3,553,058.49 2.99

SWEDISH MATCH106,881 2,762,135.73 2.32SEKSweden 2,762,135.73 2.32

NESTLE SA REG SHS61,683 3,742,483.35 3.15CHFSwitzerland 9,216,583.65 7.75

NOVARTIS AG REG SHS71,270 5,474,100.30 4.60CHF

WOLTERS KLUWER135,972 3,446,890.20 2.90EURThe Netherlands 3,446,890.20 2.90

BRITISH AMERICAN TOBACCO PLC112,388 5,068,719.80 4.26GBPUnited Kingdom 22,317,510.53 18.76

DIAGEO PLC127,693 3,041,563.19 2.56GBPGLAXOSMITHKLINE PLC197,061 3,494,052.39 2.94GBPIMPERIAL TOBACCO GROUP PLC142,479 5,206,757.86 4.37GBPINDIVIOR56,662 109,081.93 0.09GBPRECKITT BENCKISER GROUP PLC56,662 3,803,994.85 3.20GBPSABMILLER PLC36,790 1,593,340.51 1.34GBP

ABBOTT LABORATORIES LTD91,755 3,413,751.58 2.87USDUnited States of America 52,566,910.68 44.19

APPLE INC59,145 5,395,169.70 4.53USDEBAY62,661 2,906,107.45 2.44USDJOHNSON AND JOHNSON53,856 4,654,123.32 3.91USDKELLOGG41,933 2,267,753.83 1.91USDMC GRAW-HILL INC41,304 3,037,254.59 2.55USDMICROSOFT CORP125,216 4,806,647.00 4.04USDMONDELEZ INTERNATIONAL INC170,236 5,110,386.10 4.30USDMOODY S CORP32,387 2,564,355.58 2.16USDMSCI94,035 3,686,641.38 3.10USDPHILIP MORRIS INTERNATIONAL INC78,153 5,260,577.54 4.42USDPROCTER AND GAMBLE CO41,133 3,096,405.08 2.60USDZIMMER HOLDINGS INC26,489 2,482,858.05 2.09USDZOETIS INC -A-109,247 3,884,879.48 3.27USD

Total securities portfolio 116,106,066.52 97.61

Securities portfolio as at 31/12/14EURExpressed in


Quantity/Nominal Denomination Quotation

currency% of net

assetsMarket value

21Page

United States of America 44.19United Kingdom 18.76Switzerland 7.75Japan 6.20France 4.06Belgium 3.45Ireland 3.37Jersey Island 2.99The Netherlands 2.90Sweden 2.32Italy 1.62

97.61

Breakdown per country % of net assets

Geographical breakdown


Tobacco and alcoholic drinks 27.67Pharmaceuticals and cosmetics 19.86Holding and finance companies 13.21Foods and non alcoholic drinks 11.24Miscellaneous consumer goods 5.80Graphic art and publishing 5.45Office supplies and computing 4.53Internet and Internet services 4.04Miscellaneous services 3.37Retail trade, department stores 2.44

97.61

Breakdown per sector % of net assets

Economical breakdown


22Page

Statement of Operations and Changes in Net Assets from 01/01/14 to 31/12/14Expressed in EUR


2,519,573.79Income2,483,243.94Net dividends 2Note

193.53Bank interest on cash account 2Note36,136.32Securities lending income 2, 9Note

772,657.91Expenses607,485.28Management & advisory fees 5Note13,493.55Custodian & sub-custodian fees 6Note10,874.41Taxe d'abonnement 4Note20,418.97Administrative expenses2,021.76Domiciliation fees

17,452.57Professional fees6,723.01CSSF and legal fees

70,554.19Transaction fees 12Note23,634.17Other expenses

1,746,915.88Net income from investmentsNet realised profit / loss on:

4,095,745.86- sales of investment securities 2Note-78,929.39- foreign exchange 2Note

5,763,732.35Net realised profitMovement in net unrealised appreciation / depreciation on:

14,580,495.23- investments 2Note

20,344,227.58Increase in net assets as a result of operations105,916,240.77Subscription distribution units


20,344,227.58Increase in net assets



23Page

FONDACO GLOBAL FUND- FONDACO LUX EU CONVICTION EQUITIES


24Page

110,338,917.83Assets108,676,893.97Securities portfolio at market value 2Note89,356,724.51Cost price19,320,169.46Unrealised profit on the securities portfolio1,584,552.34Cash at banks and liquidities

56,122.89Dividends receivable21,348.63Other assets





Expressed in EUR


FONDACO GLOBAL FUND - FONDACO LUX EU CONVICTION EQUITIES





Key figures

Class I


0.000.00 0.00

0.00492,424.00


Distribution units

118.870.00

926,785.90 926,785.90110.7419.05

0.000.000.00


EUR EUR EUR

Total Net Assets 110,164,703.87 102,631,977.67 53,244,196.27

31/12/1231/12/1331/12/14Year ending as at:

EUR


25Page

AMS91,000 2,743,585.48 2.49CHF


Shares 108,676,893.97 98.65

Austria 2,743,585.48 2.49

JYSKE BANK A/S51,000 2,142,365.05 1.94DKKDenmark 2,142,365.05 1.94

CHRISTIAN DIOR18,000 2,572,200.00 2.33EURFrance 16,597,183.60 15.07

CREDIT AGRICOLE SA235,000 2,528,600.00 2.30EURESSILOR INTERNATIONAL SA30,000 2,780,400.00 2.52EURHERMES INTERNATIONAL SA1,020 300,696.00 0.27EURINGENICO SA48,725 4,252,718.00 3.87EURPUBLICIS GROUPE31,640 1,887,009.60 1.71EURSODEXHO SA28,000 2,275,560.00 2.07EUR

ADLER MODEMAERKTE238,000 3,201,100.00 2.91EURGermany 21,931,485.50 19.91

BMW AG24,000 2,154,480.00 1.96EURCONTINENTAL AG16,000 2,808,800.00 2.55EURELMOS SEMICONDUCTOR220,000 3,564,000.00 3.24EURGEA GROUP AG101,000 3,696,600.00 3.36EURGRENKELEASING AG31,000 2,758,690.00 2.50EURPATRIZIA IMMOBILIEN-NAMEN AKT-307,450 3,747,815.50 3.39EUR

GREENCORE GROUP PLC736,785 2,717,194.34 2.47GBPIreland 5,630,244.34 5.11

KINGSPAN GROUP203,000 2,913,050.00 2.64EUR

ASSICURAZIONI GENERALI SPA126,000 2,142,000.00 1.94EURItaly 2,142,000.00 1.94

MYSALE GROUP661,708 707,709.09 0.64GBPJersey Island 707,709.09 0.64

GRANDE CITY PROPERTIES S.A.289,000 3,517,130.00 3.19EURLuxembourg 5,894,330.00 5.35

SES GLOBAL CERT.GC FID.DEP.REC(1-A-SHS)80,000 2,377,200.00 2.16EUR

BANKINTER REG.SHS462,000 3,095,862.00 2.81EURSpain 3,095,862.00 2.81

ATLAS COPCO AB -A-101,000 2,328,665.46 2.11SEKSweden 2,328,665.46 2.11

ARYZTA45,000 2,879,985.03 2.61CHFSwitzerland 11,382,195.78 10.33

AUTONEUM HOLDING AG23,400 3,298,789.87 2.99CHFLEONTEQ AG19,254 3,843,273.59 3.50CHFVZ HOLDING AG9,203 1,360,147.29 1.23CHF

ASML HLDG34,000 3,043,000.00 2.76EURThe Netherlands 4,426,680.00 4.02

KENDRION64,000 1,383,680.00 1.26EUR

CHIME COMMUNICATION493,000 1,804,162.10 1.64GBPUnited Kingdom 27,345,993.40 24.83

DIALOG SEMICONDUCTOR134,000 3,929,550.00 3.57EURGREAT PORTLAND EST337,000 3,204,767.73 2.91GBPHOWDEN JOINERY GROUP552,000 2,866,516.33 2.60GBPPERSIMMON PLC170,000 3,456,736.04 3.14GBPPRUDENTIAL PLC113,000 2,172,488.89 1.97GBPRATHBONE BROTHERS SHS78,000 2,056,413.89 1.87GBPST JAME'S PLACE CAPITAL324,500 3,405,776.05 3.09GBPWHITBREAD72,392 4,449,582.37 4.04GBP

PRICELINE.COM INC2,450 2,308,594.27 2.10USDUnited States of America 2,308,594.27 2.10





currency% of net

assetsMarket value

26Page

United Kingdom 24.83Germany 19.91France 15.07Switzerland 10.33Luxembourg 5.35Ireland 5.11The Netherlands 4.02Spain 2.81Austria 2.49Sweden 2.11United States of America 2.10Italy 1.94Denmark 1.94Jersey Island 0.64

98.65




Electronics and semiconductors 15.93Real estate companies 9.49Banks and credit institutions 8.92Building materials and trade 7.04Insurance 7.00Holding and finance companies 6.80Textiles and garments 5.51Machine and apparatus construction 5.47Foods and non alcoholic drinks 5.08Road vehicles 4.95Internet and Internet services 4.60Hotels and restaurants 4.04Graphic art and publishing 3.35Various capital goods 2.60Tires and rubber 2.55Pharmaceuticals and cosmetics 2.52Communications 2.16Miscellaneous services 0.64

98.65




27Page



1,812,472.01Income1,609,222.54Net dividends 2Note

165.19Bank interest on cash account 2Note203,084.28Securities lending income 2, 9Note

1,082,559.80Expenses645,470.75Management & advisory fees 5Note16,316.17Custodian & sub-custodian fees 6Note10,889.59Taxe d'abonnement 4Note10,749.67Administrative expenses2,188.48Domiciliation fees

13,499.22Professional fees531.60Bank interest on overdrafts

4,100.60CSSF and legal fees354,429.75Transaction fees 12Note24,383.97Other expenses

729,912.21Net income from investmentsNet realised profit / loss on:

4,766,071.83- sales of investment securities 2Note463,211.65- foreign exchange 2Note








28Page

FONDACO GLOBAL FUND- FONDACO LUX EURO CASH


29Page

69,879,457.56Assets50,971,356.72Securities portfolio at market value 2Note50,967,247.92Cost price

4,108.80Unrealised profit on the securities portfolio9,896,030.23Cash at banks and liquidities9,000,000.00Term deposits

12,070.61Interest receivable





Expressed in EUR


FONDACO GLOBAL FUND - FONDACO LUX EURO CASH

Class ICapitalisation units 179,568.00 397,897.86 208,646.00 368,819.86

Distribution units 707,542.07 196,213.28 588,688.91 315,066.44




Key figures

Class I


102.30368,819.86 179,568.00

102.24407,206.36


Distribution units

101.94315,066.44 707,542.07

101.89225,613.05


EUR EUR EUR

Total Net Assets 69,848,487.33 90,447,590.18 64,639,757.42

31/12/1231/12/1331/12/14Year ending as at:

EUR


30Page

MICHELIN -15 15/01U3,000,000 2,999,915.01 4.30EUR


Bonds 28,990,601.34 41.50

France 7,999,064.66 11.45

SUEZ ENVIRONNEMENT ZCP 1201152,000,000 1,999,394.63 2.86EURVEOLIA ENVIRONNEMENT ZCP 1401153,000,000 2,999,755.02 4.29EUR

ITALIE ZCP 1404154,000,000 3,998,784.15 5.72EURItaly 13,993,669.65 20.04

ITALIE ZCP 2702153,500,000 3,497,528.15 5.01EURITALY BOT (12 MESI) 14-15 13/02U2,500,000 2,498,541.55 3.58EURITALY BOT (12MESI) 14-15 14/01U4,000,000 3,998,815.80 5.73EUR

ENEL FINA INTE SA ZCP 12-01-152,000,000 1,999,297.46 2.86EURLuxembourg 1,999,297.46 2.86

REED ELSEVIER PROPER ZCP 1201152,000,000 1,999,533.44 2.86EURSwitzerland 1,999,533.44 2.86

TELEFONICA EUROPE 14-15 03/03U3,000,000 2,999,036.13 4.29EURThe Netherlands 2,999,036.13 4.29

CORIO NV ZCP 27-01-15500,000 499,939.59 0.72EUR

Other transferable securities 499,939.59 0.72

Bonds 499,939.59 0.72

The Netherlands 499,939.59 0.72

COFACE SA ZCP 2702152,000,000 1,999,635.06 2.86EUR

Money market instruments 21,480,815.79 30.75

Bonds 21,480,815.79 30.75

France 1,999,635.06 2.86

MATCHPOINT FINANCE -15 26/01U3,000,000 2,999,883.33 4.29EURIreland 2,999,883.33 4.29

CDP REGS 14-15 12/02U3,000,000 2,998,960.35 4.29EURItaly 2,998,960.35 4.29

CORIO NV ZCP 2601152,000,000 1,999,705.04 2.86EURThe Netherlands 1,999,705.04 2.86

BANK OF CHINA LONDON ZCP 1707153,000,000 2,984,124.45 4.27EURUnited Kingdom 11,482,632.01 16.45

HITACHI CAPITAL (UK) -15 26/01U500,000 499,953.34 0.72EURIMPERIAL TOBACCO FIN ZCP 2001152,000,000 1,999,863.90 2.86EURNATIONAL GRID -15 18/03U3,000,000 2,999,140.26 4.30EURSUMITOMO CORP CAP EUROPE ZCP 2002153,000,000 2,999,550.06 4.30EUR





currency% of net

assetsMarket value

31Page

Italy 24.33United Kingdom 16.45France 14.31The Netherlands 7.87Ireland 4.29Luxembourg 2.86Switzerland 2.86

72.97




Countries and central government 24.33Utilities 11.45Holding and finance companies 6.44Tires and rubber 4.30Healthcare and social services 4.30Communications 4.29Miscellaneous sectors 4.29Banks and credit institutions 4.27Unit trusts 3.58Graphic art and publishing 2.86Insurance 2.86

72.97




32Page



180,848.04Income177,269.81Net interest on bonds 2Note

263.23Bank interest on cash account 2Note3,315.00Bank interest on time deposits

136,721.07Expenses72,897.95Management & advisory fees 5Note7,680.79Custodian & sub-custodian fees 6Note6,859.30Taxe d'abonnement 4Note

14,492.09Administrative expenses1,421.68Domiciliation fees

11,406.62Professional fees421.42Bank interest on overdrafts

3,150.68CSSF and legal fees66.50Transaction fees 12Note



-46,193.41- sales of investment securities 2Note

-2,066.44Net realised lossMovement in net unrealised appreciation / depreciation on:

40,043.81- investments 2Note

37,977.37Increase in net assets as a result of operations40,702,153.96Subscription capitalisation units20,000,000.00Subscription distribution units

-21,339,248.96Redemption capitalisation units-59,999,985.22Redemption distribution units




33Page

FONDACO GLOBAL FUND- FONDACO LUX EUROPEAN CONVERTIBLE

BONDS


34Page

115,587,025.43Assets109,957,521.37Securities portfolio at market value 2Note102,718,169.97Cost price

7,239,351.40Unrealised profit on the securities portfolio4,676,820.76Cash at banks and liquidities

552,697.86Interest receivable399,985.44Unrealised net profit on credit default swaps 2, 8Note

740,021.06Liabilities490,000.00Collateral payable 14Note

2,871.18Taxe d'abonnement payable 4Note130,021.56Unrealised net loss on forward foreign exchange contracts 2, 7Note95,881.88Accrued management and advisory fees12,581.43Accrued professional fees5,092.83Payable on spot exchange3,572.18Other liabilities



Expressed in EUR


FONDACO GLOBAL FUND - FONDACO LUX EUROPEAN CONVERTIBLE BONDS

Class ADistribution units 996,417.75 0.00 0.00 996,417.75




Key figures

Class A

Distribution units

115.262.11

996,417.75 996,417.75111.983.51

996,417.75105.632.94


EUR EUR EUR

Total Net Assets 114,847,004.37 111,576,049.22 105,248,538.49

31/12/1231/12/1331/12/14Year ending as at:

EUR


35Page

ECONOCOM GRP SA 1.50 14-19 15/01A54,047 561,955.53 0.49EUR


Convertible bonds 105,870,124.60 92.18

Belgium 1,417,955.53 1.23

SAGERPAR REGS CV 0.375 13-18 09/10A800,000 856,000.00 0.74EUR

SIEM KAPITAL INC 1.00 12-19 12/09S1,400,000 1,040,885.91 0.91USDCayman Islands 1,040,885.91 0.91

HOLDGROVE FINANCE 1.00 12-17 24 09S2,400,000 1,893,144.91 1.65USDCyprus 1,893,144.91 1.65

NOKIA CV REGS 5.00 12-17 26/10S1,500,000 4,072,500.00 3.55EURFinland 6,093,940.00 5.31

SOLIDIUM CV 0.00 14-18 04/09U400,000 414,240.00 0.36EURSOLIDIUM CV REGS 0.50 12-15 29/09A1,600,000 1,607,200.00 1.40EUR

AIR FRANCE KLF CV 4.97 09-15 01/04A29,000 343,932.85 0.30EURFrance 24,207,414.12 21.08

AIR FRANCE KLM CV 2.03 13-23 15/02A60,467 689,827.79 0.60EURALCATEL CV 4.25 13-18 01/07S753,400 2,507,801.30 2.18EURAXA SA CV SUB 3.75 00-17 01/01A4,100 1,129,872.89 0.98EURBNP PARIBAS CV 0.25 12-15 21/09A500,000 541,250.00 0.47EURCAP GEMINI CV 0.00 13-19 01/01U9,556 778,814.00 0.68EURCGG VERITAS CV 1.25 13-19 01/01S7,534 188,877.38 0.16EURCREDIT AGRICOLE CV 0.00 13-16 06/12U11,900 895,046.60 0.78EURFAURECIA CV 3.25 12-18 01/01A7,800 247,921.95 0.22EURFONCIERE DES REGIONS 0.875 13-19 01/04S5,330 488,042.31 0.42EURFONCIERE DES REGIONS 3.34 11-17 01/01S14,800 1,393,600.70 1.21EURMICHELIN SA -ML- CV 0.00 07-17 01/01U6,500 892,125.00 0.78EURMISARTE CV 3.25 10-16 01/01A5,900 1,027,623.04 0.89EURNEOPOST SA (SHS) CV 3.75 09-15 01/02A9,300 772,056.96 0.67EURNEXANS SA CV 2.50 12-19 01/01A13,100 921,080.42 0.80EURNEXANS SA CV 4.00 09-16 01/01A28,800 1,573,341.28 1.37EURSUEZ ENV CV (SHS) 0.00 14-20 27/02U11,620 230,076.00 0.20EURTECHNIP CV (SHS) 0.50 10-16 01/01A4,750 393,789.84 0.34EURTECHNIP SA CV 0.25 11-17 01/01A34,600 3,286,314.15 2.87EURUNIBAIL RODAMCO CV 0.00 14-21 01/07U5,162 1,489,829.93 1.30EURUNIBAIL RODAMCO SE 0.75 12-18 01/01A16,995 4,416,189.73 3.86EUR

ADIDAS INTL FIN.CV 0.25 12-19 14/06A600,000 651,900.00 0.57EURGermany 12,617,054.77 10.99

DEUTSCHE POST CV 0.60 12-19 06/12A2,400,000 3,321,000.00 2.89EURDEUTSCHE WOHNEN 0.875 14-21 08/09A400,000 461,500.00 0.40EURDEUTSCHE WOHNEN REGS 0.50 13-20 22/11S700,000 859,250.00 0.75EURFRESENIS REGS CV 0.00 14-19 24/09U900,000 1,016,950.01 0.89EURFRESENIUS MED CARE CV 1.125 14-20 31/01S700,000 771,905.54 0.67EURLEG IMMOBILIEN CV 0.50 14-21 01/07S1,500,000 1,824,750.00 1.59EURRAG STIFTUNG CV 0.00 14-18 31/12U2,300,000 2,305,750.00 2.01EURSGL CARBON CV 3.50 09-16 30/06A250,000 250,625.00 0.22EURTUI AG CV 2.75 11-16 24/03S15,600 1,153,424.22 1.00EUR

MNV CV 3.375 13-19 02/04S2,100,000 2,129,166.69 1.85EURHungary 2,129,166.69 1.85

BUZZI UNICEM CV 1.375 13-19 17/07S700,000 730,450.00 0.64EURItaly 7,963,007.00 6.93

ENI (GALP ENERGIA) CV 0.25 12-15 30/11A2,900,000 2,891,242.00 2.51EURENI SPA CV 0.625 13-16 18/01A2,300,000 2,432,710.00 2.12EURPRYSMIAN CV 1.25 13-18 08/03S1,100,000 1,123,375.00 0.98EURSAFILO CV 1.25 14-19 22/05S200,000 175,000.00 0.15EURSCHEMATRENTQUATTRO CV 0.25 13-16 29/11A600,000 610,230.00 0.53EUR

BALFOUR BEATTY FIN CV 1.875 13-18 03/12S1,000,000 1,225,758.65 1.07GBPJersey Island 5,994,438.34 5.22

BRITISH LAND CV 1.50 12-17 10/09S400,000 607,435.08 0.53GBPCARILLION FINANCE CV 2.50 14-19 19/12S400,000 529,733.91 0.46GBPDERWENT LONDON CAP CV 1.125 13-19 24/07S700,000 991,879.39 0.86GBPGREAT PORTLAND 1.00 13-18 10/09S1,000,000 1,427,098.77 1.24GBPVEDANTA RESOURCE CV 5.50 09-16 13/07S1,500,000 1,212,532.54 1.06USD

APERAM REGS CV 0.625 14-21 08/07S800,000 660,257.01 0.57USDLuxembourg 4,908,830.76 4.27




currency% of net

assetsMarket value


36Page

GBL VERWALTUNG CV 1.25 13-17 07/02A1,700,000 2,016,625.00 1.76EURKLOECKNER & CO. CV 2.50 10-17 22/12A1,350,000 1,331,985.94 1.16EURSUBSEA 7 INC CV 1.00 06-17 05/10S1,200,000 899,962.81 0.78USD

PARPUBLICA SGPS SA CV 5.25 10-17 28/09A3,850,000 4,167,240.00 3.63EURPortugal 4,167,240.00 3.63

ABENGOA CV 4.50 10-17 03/02S500,000 496,250.00 0.43EURSpain 5,058,583.38 4.40

ABENGOA CV REGS 6.25 13-19 17/07S200,000 191,500.00 0.17EURINTL CONSOL AIRLIN CV 1.75 13-18 31/05S1,000,000 1,518,750.00 1.32EURLA CAXA CV 1.00 13-17 25/11S2,500,000 2,852,083.38 2.48EUR

AB INDUSTRIVARDEN 0.00 14-19 15/05U5,000,000 569,848.32 0.50SEKSweden 1,835,848.32 1.60

INDUSTRIVAERDEN CV 1.875 11-17 27/02S1,200,000 1,266,000.00 1.10EUR

SWISS LIFE HLDG 0.00 13-20 02/12U1,100,000 1,082,983.32 0.94CHFSwitzerland 1,082,983.32 0.94

ACS ACTIVIDADES CV 2.625 13-18 22/10Q1,000,000 1,118,500.00 0.97EURThe Netherlands 20,654,896.82 17.98

BNP ARBITRAGE ISS 0.00 11-16 15/06U1,080,000 1,299,024.00 1.13EURLUKOIL INTL CV (SHS) 2.625 10-15 16/06S4,500,000 3,577,073.26 3.11USDQIAGEN FINANCE CV 0.375 14-19 19/03S2,200,000 1,913,557.29 1.67USDSALZGITTER FIN CV 2.00 10-17 08/11A1,750,000 2,013,375.00 1.75EURSIEMENS FIN CV 1.05 12-17 16/08S9,250,000 8,380,077.27 7.30USDSTMICROELCTRONICS NV 0.00 14-19 03/07U800,000 632,040.00 0.55USDWERELDHAVE NV CV 1.00 14-19 22/05S1,700,000 1,721,250.00 1.50EUR

AABAR INV REGS CV 4.00 11-16 27/05S2,000,000 2,385,000.00 2.08EURUnited Arab Emirates 2,385,000.00 2.08

DIALOG SEMICONDUCTOR 1.00 12-17 12/04S1,400,000 1,498,285.20 1.31USDUnited Kingdom 2,419,734.73 2.11

IMMARSAT CV 1.75 07-17 16/11S800,000 921,449.53 0.80USD

MAGNOLIA FIN PLC CV FL.R 06-49 20/06Q1,000,000 960,000.00 0.84EUR

Floating rate bonds 2,585,000.00 2.25

Jersey Island 960,000.00 0.84

FORTFINLUX SA REG-S FL.R 02-49 29/11Q2,500,000 1,625,000.00 1.41EURLuxembourg 1,625,000.00 1.41

BW GROUP LTD CV 1.75 14-19 10/09S400,000 270,236.77 0.24USD

Other transferable securities 1,502,396.77 1.31

Convertible bonds 1,502,396.77 1.31

Bermuda 270,236.77 0.24

BNP PAR ARBITRAGE CV 0.00 14-20 07/04U1,200,000 1,232,160.00 1.07EURThe Netherlands 1,232,160.00 1.07





currency% of net

assetsMarket value

37Page

France 21.08The Netherlands 19.05Germany 10.99Italy 6.93Jersey Island 6.06Luxembourg 5.68Finland 5.31Spain 4.40Portugal 3.63United Kingdom 2.11United Arab Emirates 2.08Hungary 1.85Cyprus 1.65Sweden 1.60Belgium 1.23Switzerland 0.94Cayman Islands 0.91Bermuda 0.24

95.74




38Page

Holding and finance companies 34.15Petroleum 10.86Real estate companies 8.91Communications 7.51Miscellaneous sectors 5.49Transportation 4.70Electrical engineering and electronics 2.84Coal mining and steel industry 2.80Banks and credit institutions 2.66Building materials and trade 2.39Insurance 1.92Electronics and semiconductors 1.86Biotechnology 1.67Pharmaceuticals and cosmetics 1.56Unit trusts 1.50Aerospace industry 1.32Hotels and restaurants 1.00Tires and rubber 0.78Internet and Internet services 0.68Textiles and garments 0.57Road vehicles 0.22Utilities 0.20Photographics and optics 0.15

95.74





39Page



2,468,457.75Income1,863,033.05Net interest on bonds 2Note

659.53Bank interest on cash account 2Note42.94Other financial income

604,722.23Interest on credit default swaps

512,247.51Expenses386,366.31Management & advisory fees 5Note12,024.38Custodian & sub-custodian fees 6Note11,421.44Taxe d'abonnement 4Note22,687.50Administrative expenses2,325.41Domiciliation fees

18,147.52Professional fees1,426.59Bank interest on overdrafts5,518.41CSSF and legal fees

22,511.47Transaction fees 12Note1,082.29Interest on credit default swaps



758,813.92- sales of investment securities 2Note-486,482.07- forward foreign exchange contracts 2Note-177,180.00- financial futures 2Note

1,005,460.05- credit default swaps 2Note255,561.34- foreign exchange 2Note


2,988,670.22- investments 2Note-318,285.12- forward foreign exchange contracts 2Note-78,000.00- financial futures 2Note

-533,823.16- credit default swaps 2Note

5,370,945.42Increase in net assets as a result of operations-2,099,990.27Dividends paid 13Note




40Page

FONDACO GLOBAL FUND- FONDACO LUX ASIA GOV ACTIVE BETA FUND


41Page

19,411,950.50Assets18,954,256.49Securities portfolio at market value 2Note17,223,604.54Cost price1,730,651.95Unrealised profit on the securities portfolio

307,294.74Cash at banks and liquidities148,195.71Interest receivable

2,203.56Formation expenses 11Note

23,849.02Liabilities793.36Taxe d'abonnement payable 4Note




Expressed in EUR


FONDACO GLOBAL FUND - FONDACO LUX ASIA GOV ACTIVE BETA FUND


Class ADistribution units 29,958.64 0.00 0.00 29,958.64




Key figures

Class I

Distribution units

108.68150,000.00 150,000.00

94.29150,000.00


EUR EUR EUR

Class A


0.000.00 0.00

0.0066,897.63


Distribution units

103.030.00

29,958.64 29,958.6489.530.00

29,958.6498.742.40


EUR EUR EUR

Total Net Assets 19,388,101.48 16,825,232.02 25,300,090.85

31/12/1231/12/1331/12/14Year ending as at:

EUR


42Page

CHINA 2.56 12-17 29/06S5,000,000 652,196.97 3.35CNH


Bonds 18,354,104.39 94.66

China 2,414,741.11 12.45

CHINA 2.87 13-16 27/06S1,500,000 197,651.73 1.02CNHCHINA 3.09 13-18 22/11S500,000 65,985.69 0.34CNHCHINA 3.09 13-20 29/06S1,000,000 131,123.07 0.68CNHCHINA GOVT BOND 3.02 13-18 27/06S4,000,000 526,859.72 2.72CNHCHINA GOVT BOND 3.48 12-27 29/06U500,000 65,842.09 0.34CNHCHINA GOVT REGS 3.10 12-22 29/06S1,500,000 194,863.63 1.01CNHCHINA (REP.) 1.40 11-16 18/08S4,000,000 514,732.73 2.65CNHCHINE 2.60 13-16 22/11S500,000 65,485.48 0.34CNH

HK GOV'T 0.97 11-16 08/12S4,000,000 427,380.27 2.20HKDHong Kong 2,377,892.31 12.26

HK GOV'T 1.47 14-19 20/02S1,000,000 106,546.40 0.55HKDHK MONETARY AUTH 2.31 11-21 21/06S1,900,000 210,290.06 1.08HKDHKSAR GOV 2.46 11-21 04/08S1,000,000 110,481.20 0.57HKDHONG KONG 10Y1706 4.85 07-17 27/06S1,000,000 116,592.71 0.60HKDHONG KONG GOVT 1.94 13-23 04/12S1,950,000 209,325.80 1.08HKDHONG KONG GOVT 1606 4.83 06-16 07/06S7,200,000 812,416.88 4.19HKDHONGKONG MONETARY 3.56 08-18 25/06S3,350,000 384,858.99 1.99HKD

INDONESIA -FR0040- 11.00 06-25 15/09S10,000,000,000 802,985.03 4.15IDRIndonesia 2,281,046.26 11.77

INDONESIA -FR0057- 9.50 10-41 15/05S1,161,000,000 84,216.34 0.43IDRINDONESIA FR0068 8.375 13-34 15/03S855,000,000 57,069.69 0.29IDRINDONESIA FR70 8.375 13-24 15/03S718,000,000 49,008.23 0.25IDRINDONESIE 7.875 13-19 15/04S2,250,000,000 149,923.81 0.77IDRINDONESIE 10.50 08-38 15/07S2,476,000,000 196,352.98 1.01IDRINDONESIE FR30 10.75 05-16 15/05S1,896,000,000 131,332.89 0.68IDRINDONESIE FR35 12.90 06-22 15/06S5,830,000,000 493,819.47 2.56IDRINDONESIE S.-FR0031- 11.00 05-20 15/11S4,162,000,000 316,337.82 1.63IDR

MALAISIE S 0112 3.418 12-22 15/08S1,039,000 232,461.81 1.20MYRMalaysia 2,233,190.80 11.52

MALAISIE S 09/0002 4.378 09-19 29/11S974,000 233,590.77 1.20MYRMALAISIE S 11/0001 4.16 11-21 15/07S500,000 117,850.44 0.61MYRMALAYSIA GOVT 4.048 14-21 30/09S500,000 117,319.05 0.61MYRMALAYSIA GVT 3.26 13-18 01/03S1,098,000 254,105.17 1.31MYRMALAYSIA GVT 4.262 06-16 15/09S1,300,000 309,160.71 1.59MYRMALAYSIA 0210 4.012 10-17 15/09S676,000 160,099.20 0.83MYRMALAYSIA 0304 5.734 04-19 30/07S980,000 247,963.89 1.28MYRMALAYSIAN GOV-08/003 5.248 08-28 15/09S1,523,000 387,573.96 2.00MYRMALAYSIAN S.0113 3.172 13-16 15/07S740,000 173,065.80 0.89MYR

PHILIPPINE GOV T 3.50 14-21 20/03S2,600,000 47,207.74 0.24PHPPhilippines 2,351,171.44 12.13

PHILIPPINES 3.875 12-19 22/11S5,250,000 98,569.90 0.51PHPPHILIPPINES 5.00 11-18 18/08S3,383,000 65,861.93 0.34PHPPHILIPPINES 8.25 10-35 16/12S35,822,000 946,265.78 4.88PHPPHILIPPINES T-BONDS 8.00 11-31 19/07S6,896,000 175,879.03 0.91PHPPHILIPPINES -1042- 9.125 06-16 04/09S12,143,000 246,247.58 1.27PHPPHILIPPINES -1048- 7.875 09-19 19/02S11,460,000 247,364.09 1.28PHPPHILIPPINES -1054- 6.375 11-22 19/01S15,206,000 321,594.36 1.66PHPPHILIPPINES -7-49- 7.00 10-17 31/03S10,110,000 202,181.03 1.04PHP

SINGAPORE 2.50 09-19 01/06S652,000 423,197.08 2.18SGDSingapore 2,465,592.55 12.71

SINGAPORE 2.75 12-23 01/07S556,000 360,053.29 1.86SGDSINGAPORE 3.00 09-24 01/09S500,000 330,769.33 1.71SGDSINGAPORE 3.75 01-16 01/09S691,000 452,156.82 2.33SGDSINGAPORE GOVERNMENT 3.50 07-27 03/01S817,000 564,946.17 2.90SGDSINGAPOUR GOVT 3.25 05-20 01/09S500,000 334,469.86 1.73SGD

KOREA 2.75 12-17 10/09Q129,950,000 99,593.37 0.51KRWSouth Korea 1,822,177.76 9.40

KOREA -DY- 3.00 12-42 10/03S172,420,000 132,887.86 0.69KRWKOREA -DY- 3.00 13-23 10/03S275,820,000 215,348.64 1.11KRWKOREA -DY- 3.50 12-17 10/03S300,910,000 233,656.95 1.21KRW




currency% of net

assetsMarket value


43Page

KOREA -DY- 3.75 13-33 10/12S705,770,000 606,759.48 3.13KRWKOREA -DY- 4.00 11-16 10/03S324,850,000 250,459.66 1.29KRWKOREA TREAS -DY- 4.25 11-21 10/06S282,050,000 236,010.05 1.22KRWKOREE -DY- 3.50 14-24 10/03S58,550,000 47,461.75 0.24KRW

MINISTRY FIN.THAILAND 3.875 09-19 13/06S19,403,000 514,945.06 2.66THBThailand 2,408,292.16 12.42

MINISTRY OF FINANCE 3.125 10-15 11/12S2,000 50.52 0.00THBTHAILAND GOVT 2.80 10-17 10/10S6,150,000 156,116.36 0.81THBTHAILAND GOVT 3.25 11-17 16/06S10,885,000 279,160.01 1.44THBTHAILAND GOVT 3.65 10-21 17/12S18,827,000 500,086.27 2.58THBTHAILAND GOVT 4.875 09-29 22/06S18,633,000 548,611.06 2.82THBTHAILAND GOVT 5.40 06-16 27/07S9,050,000 237,796.99 1.23THBTHAILAND GOVT 5.85 06-21 31/03S5,796,000 171,525.89 0.88THB

KOREA 3.25 13-18 10/09S416,940,000 325,926.50 1.68KRW


Bonds 537,009.12 2.77

South Korea 537,009.12 2.77

KOREA -DY- 3.37 13-23 10/09S130,850,000 104,986.74 0.54KRWKOREA TREAS -DY- 3.125 14-19 10/03S135,980,000 106,095.88 0.55KRW

KOREA TREAS -DY- FL.R 09-19 29/06S64,500,000 63,142.98 0.33KRW

Floating rate bonds 63,142.98 0.33

South Korea 63,142.98 0.33





currency% of net

assetsMarket value

44Page

Singapore 12.71South Korea 12.50China 12.45Thailand 12.42Hong Kong 12.26Philippines 12.13Indonesia 11.77Malaysia 11.52

97.76




Countries and central government 97.76

97.76




45Page




144,455.25Expenses1,379.13Amortisation of formation expenses 11Note

77,777.37Management & advisory fees 5Note9,912.67Custodian & sub-custodian fees 6Note2,970.29Taxe d'abonnement 4Note3,565.73Administrative expenses

346.86Domiciliation fees1,850.30Professional fees3,486.82Bank interest on overdrafts

667.34CSSF and legal fees29,624.86Transaction fees 12Note12,873.88Other expenses


-139,601.65- sales of investment securities 2Note-785,981.42- foreign exchange 2Note

-322,997.78Net realised lossMovement in net unrealised appreciation / depreciation on:







46Page

FONDACO GLOBAL FUND- FONDACO LUX INTERNATIONAL BOND CORE


47Page

197,089,620.84Assets189,116,234.30Securities portfolio at market value 2Note201,846,972.90Cost price-12,730,738.60Unrealised loss on the securities portfolio

4,545,385.18Cash at banks and liquidities2,030,924.42Interest receivable1,396,077.49Unrealised net profit on forward foreign exchange contracts 2, 7Note

999.45Other assets





Expressed in USD


FONDACO GLOBAL FUND - FONDACO LUX INTERNATIONAL BOND CORE

Class I-EURDistribution units 35,228.48 35,228.48 35,228.48 35,228.48

Class I-USDDistribution units 1,240,650.23 1,853,287.71 1,240,650.23 1,853,287.71





48Page

Key figures


Class I-EUR

Distribution units

101.9935,228.48 35,228.48

101.582,424,549.68


EUR EUR EUR

Class I-USD


0.000.00 0.00

0.0061,364.41


Distribution units

103.901,853,287.71 1,240,650.23

103.8075,644.89


USD USD USD

Total Net Assets 196,896,940.18 133,711,630.83 350,280,763.81

31/12/1231/12/1331/12/14Year ending as at:

USD


49Page

AUSTRALIA 4.50 09-20 15/04S4,440,000 4,026,368.97 2.04AUD


Bonds 188,453,164.69 95.71

Australia 19,269,512.24 9.79

AUSTRALIA 122 5.25 05-19 15/03S4,040,000 3,709,720.42 1.88AUDAUSTRALIA -135- 4.25 11-17 21/07S2,310,000 1,988,919.69 1.01AUDAUSTRALIE GVT -130- 4.75 10-16 15/06S3,830,000 3,243,203.77 1.65AUDAUSTRALIE GVT -217- 6.00 04-17 15/02S7,140,000 6,301,299.39 3.21AUD

AUSTRIA 1.15 13-18 19/10A840,000 1,061,291.58 0.54EURAustria 3,324,802.04 1.69

AUSTRIA EMTN 4.00 05-16 15/09A1,750,000 2,263,510.46 1.15EUR

BELGIAN 0318 3.75 10-20 28/09A3,300,000 4,788,962.86 2.44EURBelgium 6,764,250.87 3.44

BELGIQUE OLO -60- 4.25 10-41 28/03A1,080,000 1,975,288.01 1.00EUR

BRAZIL -DY- 0.00 09-19 15/06S3,440 1,295,468.29 0.66BRLBrazil 11,096,318.65 5.64

BRAZIL -DY- 0.00 10-23 01/01S8,163 2,871,211.12 1.46BRLBRAZIL -DY- 6.00 08-28 21/01S3,287 3,041,316.79 1.54BRLBRAZIL -DY- 6.00 10-50 15/08S1,965 1,842,531.46 0.94BRLBRAZIL-DY- 10.00 14-25 01/01S5,890 2,045,790.99 1.04BRL

CANADA GOVT 2.50 13-24 01/06S3,210,000 2,942,149.62 1.50CADCanada 4,111,623.00 2.09

CANADIAN GOVERNMENT 1.75 14-19 01/09S1,330,000 1,169,473.38 0.59CAD

CZECH REPUBLIC EMTN 5.00 08-18 11/06A1,480,000 2,081,154.81 1.06EURCzech Republic 2,081,154.81 1.06

BRD 3.25 10-42 04/07A620,000 1,081,075.37 0.55EURGermany 6,801,114.36 3.45

BUNDESREPUB DEUTS. 2.50 10-21 04/01A4,130,000 5,720,038.99 2.90EUR

IRISH GOVT TREASURY 5.40 09-25 13/03A5,760,000 9,604,668.41 4.88EURIreland 9,604,668.41 4.88

ITALY BTP 4.00 10-20 01/09S1,220,000 1,710,477.19 0.87EURItaly 4,981,991.17 2.53

ITALY BTP 5.00 09-40 01/09S2,040,000 3,271,513.98 1.66EUR

JAPAN 0.40 11-16 20/09S788,800,000 6,629,779.72 3.36JPYJapan 25,044,776.71 12.71

JAPAN GOVT 317 1.10 11-21 20/09S1,441,700,000 12,849,607.90 6.52JPYJAPAN 036 JGB 2.00 12-42 20/03S87,200,000 857,132.74 0.44JPYJAPAN 292 JGB 1.70 08-18 20/03S534,850,000 4,708,256.35 2.39JPY

EUROP.INVEST.BK 6.00 10-20 06/08S5,280,000 4,994,169.70 2.54AUDLuxembourg 4,994,169.70 2.54

MALAYSIA GOVT 4.048 14-21 30/09S13,320,000 3,802,289.90 1.93MYRMalaysia 9,084,419.07 4.61

MALAYSIA GVT 4.262 06-16 15/09S7,503,000 2,170,792.82 1.10MYRMALAYSIAN S.0114 4.181 14-24 15/07S10,840,000 3,111,336.35 1.58MYR

MEXICAN BONOS 7.50 06-27 03/06S12,760,000 962,845.62 0.49MXNMexico 16,441,721.65 8.35

MEXICAN BONOS 7.75 11-42 13/11S6,377,000 495,648.40 0.25MXNMEXICAN BONOS 8.00 09-20 11/06S80,020,000 6,096,511.37 3.10MXNMEXICAN BONOS -M 30- 10.00 06-36 20/11S50,160,000 4,762,931.99 2.42MXNUTD MEXICAN STS 10.00 04-24 05/12S46,750,000 4,123,784.27 2.09MXN

NEW ZEALAND INDEXED 2.00 12-25 20/09Q1,660,000 1,372,003.15 0.70NZDNew Zealand 21,394,544.38 10.86

NEW ZEALAND -1217- 6.00 04-17 15/12S9,130,000 7,620,468.70 3.87NZDNEW ZELAND GVT 319 5.00 10-19 15/03S15,030,000 12,402,072.53 6.29NZD

NORWEGIAN 3.00 14-24 14/03A16,150,000 2,426,619.14 1.23NOKNorway 10,076,242.66 5.12

NORWEGIAN 3.75 10-21 25/05A43,570,000 6,710,588.46 3.41NOKNORWEGIAN GOVT 2.00 12-23 24/05A6,730,000 939,035.06 0.48NOK

POLAND PS0418 3.75 12-18 25/04A7,910,000 2,351,189.85 1.19PLNPoland 5,256,515.61 2.67

POLOGNE 3.25 13-19 25/07A9,850,000 2,905,325.76 1.48PLN

SOUTH AFRICA 6.50 10-41 28/02S25,450,000 1,723,532.16 0.88ZARSouth Africa 5,768,313.05 2.93

Securities portfolio as at 31/12/14USDExpressed in



currency% of net

assetsMarket value


50Page

SOUTH AFRICA 6.75 06-21 31/03S48,770,000 4,044,780.89 2.05ZAR

EUROFIMA BALE EMTN 6.25 03-18 28/12S1,300,000 1,198,140.95 0.61AUDSwitzerland 1,198,140.95 0.61

NETHERLANDS GOVT 3.25 11-21 15/07A330,000 475,848.18 0.24EURThe Netherlands 475,848.18 0.24

US TREAS N/B AF-2016 0.875 11-16 31/12S6,730,000 6,754,711.89 3.43USDUnited States of America 20,683,037.18 10.50

US TREASURY NOTE 1.625 14-19 31/08S2,930,000 2,932,746.87 1.49USDUS TREASURY NOTE 2.00 14-21 31/08S1,960,000 1,965,665.67 1.00USDUS TREASURY NOTES 2.375 14-24 15/08S1,960,000 1,996,750.00 1.01USDUSA TREASURY BONDS 5.375 01-31 15/02S5,040,000 7,033,162.75 3.57USD

NEW ZEALAND INDEXED 3.00 13-30 20/09Q740,000 663,069.61 0.34NZD


Bonds 663,069.61 0.34

New Zealand 663,069.61 0.34


Securities portfolio as at 31/12/14USDExpressed in



currency% of net

assetsMarket value

51Page

Japan 12.71New Zealand 11.20United States of America 10.50Australia 9.79Mexico 8.35Brazil 5.64Norway 5.12Ireland 4.88Malaysia 4.61Germany 3.45Belgium 3.44South Africa 2.93Poland 2.67Luxembourg 2.54Italy 2.53Canada 2.09Austria 1.69Czech Republic 1.06Switzerland 0.61The Netherlands 0.24

96.05




Countries and central government 92.90Supranational 3.15

96.05




52Page

Statement of Operations and Changes in Net Assets from 01/01/14 to 31/12/14Expressed in USD


4,382,400.15Income4,375,164.90Net interest on bonds 2Note

3,366.53Bank interest on cash account 2Note3,868.72Securities lending income 2, 9Note

600,207.94Expenses1,460.05Amortisation of formation expenses 11Note

481,264.06Management & advisory fees 5Note12,180.56Custodian & sub-custodian fees 6Note11,882.27Taxe d'abonnement 4Note26,991.82Administrative expenses1,393.01Domiciliation fees5,440.56Professional fees9,824.04Bank interest on overdrafts4,674.53CSSF and legal fees

20,325.89Transaction fees 12Note24,771.15Other expenses


3,136,491.67- sales of investment securities 2Note301,051.78- forward foreign exchange contracts 2Note

-3,384,059.41- foreign exchange 2Note


-9,717,628.52- investments 2Note1,773,261.65- forward foreign exchange contracts 2Note

-4,108,690.62Decrease in net assets as a result of operations205,865,220.83Subscription distribution units





53Page

FONDACO GLOBAL FUND- FONDACO LUX GLOBAL INFLATION LINKED


54Page

Class IDistribution units 1,039,927.74 0.00 1,039,927.74 0.00




FONDACO GLOBAL FUND - FONDACO LUX GLOBAL INFLATION LINKED

Key figures

Class I

Distribution units

0.000.00 1,039,927.74

97.731,159,124.98


EUR EUR EUR

Total Net Assets 0.00 101,636,169.51 120,649,050.11

31/12/1231/12/1312/05/14Period/year ending as at:

EUR


55Page


FONDACO GLOBAL FUND - FONDACO LUX GLOBAL INFLATION LINKED


547.92Securities lending income 2, 9Note

70,336.92Expenses972.45Amortisation of formation expenses 11Note

22,013.74Management & advisory fees 5Note1,419.18Custodian & sub-custodian fees 6Note1,236.21Taxe d'abonnement 4Note8,500.58Administrative expenses

693.94Domiciliation fees6.52Bank interest on overdrafts

2,969.87CSSF and legal fees3,200.00Transaction fees 12Note



-2,566,132.04- sales of investment securities 2Note-81,422.68- forward foreign exchange contracts 2Note

-1,953,405.22- foreign exchange 2Note

-4,443,983.98Net realised lossMovement in net unrealised appreciation / depreciation on:

7,181,165.67- investments 2Note-604,431.16- forward foreign exchange contracts 2Note

2,132,750.53Increase in net assets as a result of operations-103,768,920.04Redemption distribution units


101,636,169.51Net assets at the beginning of the period

0.00Net assets at the end of the period

56Page

FONDACO GLOBAL FUNDNotes to the financial statements

FONDACO GLOBAL FUND

Notes to the financial statements as at 31/12/14

1. General FONDACO GLOBAL FUND (the “Fund”) is a “fonds commun de placement” organised in and under the laws of the Grand Duchy of Luxembourg in the form of an open-ended mutual investment fund. The Fund is registered under the scope of Part I of the modified Luxembourg law of December 17, 2010, as amended relating to Undertakings for Collective Investment. The Fund is, as a consequence of the repealing of the aforementioned EC Directive 85/611, qualify as an Undertaking for Collective Investment in Transferable Securities under the EC Directive 2009/65 of July 13, 2009 and be subject to the Luxembourg law of December 17, 2010, as amended relating to Undertakings for Collective Investment. The Fund has sub-funds, each constituting a distinct portfolio of assets and liabilities:

• Fondaco Global Fund - Fondaco Lux Global Equities • Fondaco Global Fund - Fondaco Lux EU Conviction Equities • Fondaco Global Fund - Fondaco Lux Euro Cash • Fondaco Global Fund - Fondaco Lux European Convertible Bonds • Fondaco Global Fund - Fondaco Lux Asia Gov Active Beta Fund • Fondaco Global Fund - Fondaco Lux International Bond Core

As at May 12, 2014, the sub-fund Fondaco Global Fund - Fondaco Lux Global Inflation Linked was liquidated and put it in dormant. As at January 31, 2014, the Board of Directors decided, by circular resolution, to amend the name of the sub-fund Fondaco Global Fund - Fondaco Lux Asia Maximum Bond Fund as follows :

• Fondaco Global Fund - Fondaco Lux Asia Gov Active Beta Fund. The annual financial statements of the Fund include a consolidation of all the sub-funds. These consolidated figures are expressed in “Euro” (EUR), all figures expressed in another currency being converted into EUR on the basis of the average rate of the last known bid and offer rates on December 31, 2014.

2. Summary of significant accounting principles

a) Presentation of the financial statements The financial statements are presented in accordance with Luxembourg regulations on investment funds.

b) Valuation of investments The value of any cash on hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued as aforesaid and not yet received shall be deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof shall be arrived at after making such discount as the Fund may consider appropriate in such case to reflect the true value thereof. The value of securities and/or financial derivative instruments which are quoted or dealt in on any stock exchange shall be based on the previous day closing prices and, if appropriate, on the average price on the stock exchange which is normally the principal market of such securities and/or financial derivative instruments, and each security and/or financial derivative instruments traded on any other regulated market shall be valued in a manner as similar as possible to that provided for quoted securities and/or financial derivative instruments.

FONDACO GLOBAL FUND

Notes to the financial statements as at 31/12/14 (continued)

2. Summary of significant accounting principles (continued) For non-quoted securities or securities not traded or dealt in on any stock exchange or other regulated market, as well as quoted or non-quoted securities on such other market for which no valuation price is available, or securities for which the quoted prices are not representative of the fair market value, the value thereof shall be determined prudently and in good faith, by the board of directors of the Management Company on the basis of foreseeable sales prices. Shares or units in open-ended investment funds shall be valued at their last available calculated net asset value, reduced by any applicable charges. Money market instruments are valued at:

• Market value plus any accrued interest for instruments having, at the moment of their acquisition by the Fund, an initial or remaining maturity of more than 12 months, until the instruments have a remaining maturity of less than 12 months at which time they will move to an amortised cost basis plus accrued interest, and

• On an amortised cost basis plus accrued interest for instruments having, at the moment of their acquisition by the Fund, an initial or remaining maturity of less than 12 months.

Financial derivative instruments which are not listed on any official stock exchange or traded on any other organised market shall be subject to reliable and verifiable valuation on a daily basis in accordance with market practice. The Fund is authorized to apply other adequate valuation principles for the assets of the Fund and/or the assets of a given sub-fund if the aforesaid valuation methods appear impossible or inappropriate due to extraordinary circumstances or events. The schedules of investments of this report have been valued with last available closing prices at the date of the Net Asset Value (NAV) calculation, which was December 31, 2014.

c) Realised profit and loss on investments The profits and losses on sales of investments have been determined on the basis of average cost.

d) Foreign exchange The value of assets denominated in a currency other than the reference currency of a sub-fund shall be determined by taking into account the previous day closing rate of exchange.

e) Forward foreign exchange contracts Outstanding forward foreign exchange contracts are valued at the forward exchange rate applicable to the remaining life of the contract. The unrealised gains or losses on open forward currency contracts are calculated as the difference between the contracted rate and the rate to close out the contract. Realised gains and losses include net results on contracts which have been settled or offset by other contracts with the same counterparty. Details on open contracts at December 31, 2014 are found in note 7.

f) Dividend and interest income

Dividend income is recorded as of the ex-dividend date and net of withholding tax. Interest income is recorded on an accrual basis and net of withholding tax.

FONDACO GLOBAL FUND


2. Summary of significant accounting principles (continued)

g) Securities lending income Securities lending income is recognised on a cash basis and recorded in the statement of operations and changes in net assets under the heading “Securities lending income”.

h) Swaps A Credit Default Swap (“CDS”) is a bilateral agreement in which one counterparty (the protection buyer) pays a periodic fee in return for a contingent payment by the protection seller following a credit event on any reference issuers. When the difference between the loss due to a credit event and the periodic fee is positive, the protection buyer usually receives a cash settlement corresponding to such difference. When such difference is negative, the cash settlement is usually received by the protection seller. The unrealised appreciation and depreciation is disclosed in the statement of net assets.

i) Abbreviations included in Financial Statement - XX : Perpetual Bonds - CV: Convertible - Q: Quarterly - A: Annual - S: Semi-Annual - M: Monthly - U: Zero Coupon Bond

3. Currency rates The exchange rates used as at December 31, 2014 for the calculation of the Net Asset Value and the financial statements as follows:

1 EUR = 1.47865 AUD 1 EUR = 17.83585 MXN 1 EUR = 3.21655 BRL 1 EUR = 4.23095 MYR 1 EUR = 1.40155 CAD 1 EUR = 9.07240 NOK 1 EUR = 1.20235 CHF 1 EUR = 1.54820 NZD 1 EUR = 7.52395 CNH 1 EUR = 54.12855 PHP 1 EUR = 7.44635 DKK 1 EUR = 4.29810 PLN 1 EUR = 0.77605 GBP 1 EUR = 9.47255 SEK 1 EUR = 9.38375 HKD 1 EUR = 1.60345 SGD 1 EUR = 14,986.47000 IDR 1 EUR = 39.81065 THB 1 EUR = 145.07895 JPY 1 EUR = 1.21005 USD 1 EUR = 1,330.02650 KRW 1 EUR = 13.99875 ZAR

4. Tax status As legislation now stands, the Fund is subject to a Luxembourg Tax at an annual rate of 0.05% payable at the end of each quarter and calculated on the amount of the net assets of each Sub-Fund at the end of each quarter-year. The rate of the annual subscription tax is set at 0.01% for the sub-funds or Classes of Units, if the Units in these sub-funds or Classes are reserved for one or more Institutional Investors, as well as for those sub-funds whose sole purpose is collective investment in money market instruments and/or deposits with credit institutions.

FONDACO GLOBAL FUND


5. Management & advisory fees A quarterly management company fee for the Management Company, is payable at the end of each quarter, based on the average Net Asset Value of the relevant Unit Class during that quarter. The management company fee may be charged at different rates for individual sub-funds and Unit Classes within a sub-fund or may be waived in full. In addition to the management company fee, a quarterly investment management fee for the relevant Investment Manager, is payable at the end of the relevant quarter and is based on the average of the Net Asset Value of the relevant Unit Class during that quarter. The Management Company may appoint an Investment Advisor, which is entitled to receive an advisory fee paid by the Management Company out of the management company fee. As at December 31, 2014, the effective management company fee rates and effective investment management fee rates for the different Unit Classes, expressed as a percentage of the Net Asset Value of the relevant sub-funds, are as follows:

Sub-fund / Unit Class Management company

fee rate

Investment management

fee rate Fondaco Lux Global Equities Class I 0.04 % 0.40 % Fondaco Lux EU Conviction Equities Class I 0.04 % 0.56 % Fondaco Lux Euro Cash Class I 0.025 % 0.075 % Fondaco Lux European Convertible Bonds Class A 0.12 % 0.22 % Fondaco Lux Asia Gov Active Beta Fund* Class I 0.15 % 0.25 % Class A 0.15 % 0.35 % Fondaco Lux International Bond Core Class I 0.04 % 0.365 % Fondaco Lux Global Inflation Linked Class I 0.04 % 0.07 % * The effective management company fee rates and the effective investment management fee rates have been modified since January 1, 2014 for the sub-fund Fondaco Lux Asia Gov Active Beta Fund. Previously, the effective management company fee rates were 0.10% for the both Unit Class and the effective investment management fee rates were 0.15% for the both Unit Class.

6. Custodian & sub-custodian fees A maximum fee of 0.045 % p.a. is calculated and paid monthly on the monthly average of the sub-fund's Net Asset Value to the Custodian, Administrative Agent and the Registrar and Transfer Agent, determined by joint agreement with the Management Company. As regards the sub-fund Fondaco Lux Asia Gov Active Beta Fund, this maximum fee is 0.15% p.a. calculated and paid monthly on the monthly average of the sub-fund's Net Asset Value.

FONDACO GLOBAL FUND


7. Forward foreign exchange contracts

Fondaco Global Fund - Fondaco Lux European Convertible Bonds

Purchase Currency Sale Currency Maturity date Unrealised profit/loss

in EUR 254,366.20 EUR 200,000.00 GBP 13/02/2015 -3,157.53

4,183,825.95 EUR 5,230,000.00 USD 13/02/2015 -136,559.72322,022.40 EUR 400,000.00 USD 13/02/2015 -8,404.26

80,535.66 EUR 100,000.00 USD 13/02/2015 -2,071.87136,776.78 EUR 170,000.00 USD 13/02/2015 -3,656.08200,000.00 GBP 251,948.20 EUR 13/02/2015 5,575.53400,000.00 USD 320,452.80 EUR 13/02/2015 9,973.86462,766.38 EUR 570,000.00 USD 13/02/2015 -8,095.00180,000.00 USD 144,439.38 EUR 13/02/2015 4,252.62900,000.00 USD 731,339.10 EUR 13/02/2015 12,120.89

TOTAL -130,021.56 The counterparties of the forward foreign exchange contracts are HSBC (London), Union Bank of Switzerland (London), Barclays Bank PLC (London), Citibank NA (London), Goldman Sachs International Finance LTD, Deutsche Bank AG (London) and Royal Bank of Canada (London).

Fondaco Global Fund - Fondaco Lux International Bond Core


in USD 2,441,087.15 USD 80,385,000.00 THB 10/02/2015 2,704.85

100,706,000.00 TWD 3,302,377.44 USD 10/02/2015 -115,105.127,799,000.00 MYR 2,327,503.88 USD 10/02/2015 -104,407.067,150,504.51 USD 18,567,000.00 BRL 10/02/2015 237,913.44

17,888,647.52 USD 23,190,447.67 NZD 13/01/2015 -215,354.533,046,186,484.00 JPY 26,564,390.47 USD 13/01/2015 -1,154,892.46

24,068,463.73 USD 27,966,098.94 AUD 13/01/2015 1,201,470.863,754,000.00 CAD 3,310,230.50 USD 10/02/2015 -71,939.065,801,223.85 ZAR 509,192.21 USD 10/02/2015 -10,933.854,426,000.00 SEK 598,279.51 USD 10/02/2015 -32,808.59

481,429.67 USD 1,636,968.24 PLN 10/02/2015 21,430.922,007,015.32 GBP 3,182,911.55 USD 13/01/2015 -53,750.70

19,060,711.18 USD 15,290,194.97 EUR 13/01/2015 556,640.5411,769,871.67 USD 160,738,783.48 MXN 10/02/2015 893,197.083,861,996.02 EUR 4,710,800.95 USD 31/03/2015 -33,785.59

993,260.64 USD 6,747,000.00 NOK 10/02/2015 94,456.061,167,209.34 USD 1,326,000.00 CAD 10/02/2015 23,367.87

828,625.75 USD 11,311,000.00 MXN 10/02/2015 63,247.851,174,082.76 USD 1,326,999.99 CAD 10/02/2015 29,383.71

644,810.86 USD 1,662,000.00 BRL 10/02/2015 26,087.481,184,504.03 USD 1,335,000.01 CAD 10/02/2015 32,906.80

36,063,000.00 THB 1,093,812.56 USD 10/02/2015 118.0335,996,000.00 THB 1,093,428.67 USD 10/02/2015 -1,530.458,326,000.00 THB 252,278.57 USD 10/02/2015 281.29

308,869.20 USD 400,000.00 NZD 13/01/2015 -3,396.96

FONDACO GLOBAL FUND


7. Forward foreign exchange contracts (continued)

Fondaco Global Fund - Fondaco Lux International Bond Core (continued)


in USD 5,878,000.00 MXN 395,729.11 USD 10/02/2015 2,095.191,711,000.00 EUR 2,140,828.87 USD 13/01/2015 -70,190.47

717,000.00 CAD 615,610.23 USD 10/02/2015 2,902.952,697,000.00 PLN 797,931.12 USD 10/02/2015 -39,993.41

10,820,000.00 NOK 1,445,364.29 USD 10/02/2015 -3,806.921,045,609,000.00 JPY 8,926,277.77 USD 13/01/2015 -204,421.79

11,774,000.00 ZAR 993,987.20 USD 10/02/2015 17,406.96376,000.00 GBP 591,347.23 USD 13/01/2015 -5,121.27

18,890,000.00 TWD 605,060.86 USD 10/02/2015 -7,209.746,548,000.00 MYR 1,869,415.02 USD 10/02/2015 -2,633.841,644,934.96 USD 12,221,999.99 NOK 10/02/2015 16,606.422,451,212.81 USD 36,214,999.99 MXN 10/02/2015 176.024,054,321.11 USD 475,134,000.00 JPY 13/01/2015 91,023.874,257,710.69 USD 5,214,000.00 AUD 13/01/2015 -5,793.171,727,404.01 USD 5,878,000.00 PLN 10/02/2015 75,645.365,697,218.70 USD 4,573,640.00 EUR 13/01/2015 162,217.57

623,046.01 USD 726,000.00 CAD 10/02/2015 -3,233.603,248,566.51 USD 4,210,000.01 NZD 13/01/2015 -38,037.56

918,393.34 USD 10,646,000.00 ZAR 10/02/2015 3,923.704,524,576.95 USD 15,721,999.99 PLN 10/02/2015 106,415.36

43,925,000.00 NOK 5,948,753.37 USD 10/02/2015 -96,590.01506,554.93 EUR 617,240.73 USD 13/01/2015 -4,212.04503,223.04 USD 7,398,832.02 MXN 10/02/2015 2,474.82

2,414,788.70 AUD 1,954,544.46 USD 13/01/2015 20,035.811,367,248.42 USD 3,682,000.00 BRL 10/02/2015 -4,092.091,431,778.14 USD 5,039,000.00 MYR 10/02/2015 -4,813.04

TOTAL 1,396,077.49 The counterparties of the forward foreign exchange contracts are Citibank NA (London).

8. Swaps Credit Default Swaps (CDS)

Fondaco Global Fund - Fondaco Lux European Convertible Bonds

Counterparty Nominal CurrencyMaturity

Date Buy /Sell

Underlying Market value in

EUR

Unrealised profit/loss

in EUR

CREDIT SUISSE INTERNATIONAL LDN 6,000,000.000 EUR 20/12/2019 SELL

ITRAXX XOVER S22 V1 399,985.44 399,985.44

TOTAL 399,985.44 399,985.44

FONDACO GLOBAL FUND


9. Securities Lending As at December 31, 2014, the Fund had entered into fully collateralised securities lending agreements with first-class financial institutions, as follows:

Sub-Funds Currency Counterparty Market Value of

securities lent Collateral

Amount receivedType of

collateral

Fondaco Lux Global Equities EUR Caceis Bank 7,718,928.79 8,082,623.89 Cash Fondaco Lux EU Conviction Equities EUR Caceis Bank 6,956,129.34 7,306,614.00 Cash Fondaco Lux International Bond Core USD Caceis Bank 19,587,958.71 20,598,327.82 Cash

Net income on Securities Lending is disclosed in the caption “Securities Lending Income”. For the year ended December 31, 2014, the securities lending income generated by the Fund is as follows:

Sub-Funds CurrencyTotal gross amount

of Securities Lending Income

Direct-indirect costs and Fees deducted

from gross Securities Lending

Income

Total net amount of Securities

Lending Income

Fondaco Lux Global Equities EUR 51,623.31 15,486.99 36,136.32

Fondaco Lux EU Conviction Equities EUR 290,120.40 87,036.12 203,084.28

Fondaco Lux International Bond Core USD 5,526.74 1,658.02 3,868.72

Fondaco Lux Global Inflation Linked EUR 782.74 234.82 547.92

10. Changes in the composition of the portfolio The report on the changes in the statement of investments is available upon request at the registered office of the Management Company of the Fund free of charge.

11. Amortisation of formation expenses Formation expenses are amortised over a period of five years.

12. Transaction fees Transaction fees include mainly brokerage fees and custodian fees linked to transactions (buy or sell) on portfolio securities, options contracts and other derivative instruments. The transaction fees included in bond spreads are directly included in the acquisition costs of those bonds and are therefore not included in this caption "Transaction fees".

13. Dividends The Fund has distributed the following dividends during the year under review:

Sub-fund Unit Class Currency Payment date Unitary dividend

in EUR

Fondaco Lux European Convertible Bonds Class A EUR 05/11/14 2.1075

FONDACO GLOBAL FUND


14. Collateral The following table reports the collateral held or paid to manage the counterparty exposure on OTC derivatives.

Sub-Fund Counterparty Currency

Collateral Cash Paid by the Fund in favour of the Counterparty

Collateral Cash held by the

Counterparty in favour of the Fund

Fondaco Lux European Convertible Bonds Crédit Suisse EUR - 490,000.00 The amount of collateral has been received by the Fund and booked in “Cash at banks and liquidities” (asset) versus “Collateral payable” (liability).

FONDACO GLOBAL FUND

Supplementary information (unaudited)

Global exposure calculation method

The following sub-funds use the commitment approach in order to monitor and measure the global exposure:

• Fondaco Global Fund - Fondaco Lux Global Equities • Fondaco Global Fund - Fondaco Lux EU Conviction Equities • Fondaco Global Fund - Fondaco Lux Euro Cash • Fondaco Global Fund - Fondaco Lux European Convertible Bonds • Fondaco Global Fund - Fondaco Lux Asia Gov Active Beta Fund • Fondaco Global Fund - Fondaco Lux International Bond Core • Fondaco Global Fund - Fondaco Lux Global Inflation Linked (liquidated as at May 12, 2014)

FONDACO GLOBAL FUND

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