FCP OP MEDICAL BioHealth-Trends - medical.lu

FCP OP MEDICAL 

Sub-fund: FCP OP MEDICAL BioHealth-Trends 

A M U T U A L I N V E S T M E N T F U N D O R G A N I Z E D U N D E R T H E L A W S O F T H E G R A N D - D U C H Y O F L U X E M B O U R G 

A N N U A L R E P O R T A S O F D E C E M B E R 3 1 , 2 0 1 0 

____ 

FUND ADMINISTRATION: 

OPPENHEIM ASSET MANAGEMENT SERVICES S.À R.L. 

FUND DISTRIBUTION: 

OPPENHEIM FONDS TRUST GMBH 

____


Sub-fund: FCP OP MEDICAL BioHealth-Trends 

A N N U A L R E P O R T A S O F D E C E M B E R 3 1 , 2 0 1 0 

Fundsreport 3 

The key facts, At-a-glance, Statement of Operations, Changes in Net Assets, 

Classification of Investments a.o. 9 

Statement of Assets and Liabilities 13 

Notes to the Annual Report 17 

Report of the Réviseur d’Entreprises agréé 19 

Tax information for German Investors 20 

Partners 24 

1

Distribution of the fund’s units has been announced in the 

Federal Republic of Germany in accordance with Section 132 

InvG of the Bundesanstalt für Finanzdienstleistungsaufsicht, 

Frankfurt. Distribution of the fund’s units has been 

announced in Switzerland in accordance to art. 45 AFG of 

the Eidgenössische Bankenkommission, Bern and in the 

Republic of Austria in accordance with Section 36 InvFG of 

the Finanzmarktaufsicht, Vienna. 

This Annual Report does not constitute an offer or an 

invitation to purchase units of the Fund. Statements on future 

performances can not be made on basis of this Annual 

Report. This Annual Report should be read exclusively in 

conjunction with the most recent version of the Prospectuses, 

the Fund’s Management Regulations and the last Annual 

Report. If the cut-off day of the Annual Report exceeds more 

than eight months a more recent Semi-Annual Report will be 

provided in addition to the Annual Report. 

The Prospectuses are available free of charge at the 

Management Company, at the Custodian Bank, at the 

representative in Switzerland and at the paying and 

distribution agents mentioned in this report. 

A statement of the changes to the schedule of investments 

in the period under review is available free of charge 

from the head office of the fund administrator, the swiss 

representative, the paying agents and the distributors. 

The name of the sub-fund FCP OP MEDICAL BioHe@lth- 

Trends changed with effect 15 November, 2010 to FCP OP 

MEDICAL BioHealth-Trends. 

The original report is in German language. In case of any 

doubt on translation the original document shall prevail.

FCP OP MEDICAL BioHealth-Trends / Annual Report as of December 31, 2010 

Fundsreport 

FCP OP MEDICAL BioHealth-Trends is a healthcare fund 

for global investment that focuses on mid and small caps. Its 

objective is to outperform the indices over the long term by 

systematically concentrating on future high-growth markets 

in the healthcare industry. Given that product innovations in 

the pharmaceuticals industry and medical technology are 

among the most important growth drivers in the healthcare 

sector, the Fund primarily invests in young companies with 

business models built on innovation. The Fund especially 

targets companies with products that are soon to be released, 

new on the market or starting to be profitable. The Fund 

contains only a small proportion of companies with products 

in the relatively early stages of development. 

The investment focus is primarily on biotechnology firms 

that develop new drugs for illness currently lacking treatment 

or adequate treatment. Emerging pharmaceutical companies 

specialising in innovative preparations for specialty therapy 

areas represent another investment segment. In addition to 

the drug sector, the Fund also invests in medical technology, 

which offers many innovative product developments to 

improve diagnosis and therapy for a variety of disorders. 

Since small and mid cap stocks in the healthcare sector often 

display increased volatility (e.g. due to dependence on 

clinical results), the Fund controls company-specific risk by 

broadly spreading its investments over approximately 80 

positions. 

The Fund's investment style is oriented toward pure stock 

picking, without being tied to a benchmark. In this way, the 

Fund allows long-term investors to tap into the future 

potential of dynamic growth segments in the healthcare 

sector. 

Founded on 30 October 2000, FCP OP MEDICAL 

BioHealth-Trends has now been on the market for more than 

ten years. Over this period, the Fund has outperformed both 

related healthcare and broader market indices (also see Fig. 

2, p.5). In addition, FCP OP MEDICAL BioHealth-Trends 

recorded the top performance of +43.24 % in a 10-year 

comparison with other biotechnology funds, representing a 

lead of 53.8 % over the second place fund (Micropal peer 

group comparison of 15 biotechnology funds approved for 

distribution in Germany as at 30 December 2010, data in 

euros). 

Investment strategy during the reporting period 

General conditions and sector-specific events 

The economic recovery continued in most of the major 

industrialised countries in 2010, with support from expansive 

monetary and tax measures in the USA in particular. The 

global economy therefore offered a favourable environment 

for the equity markets, which were only temporarily 

impacted by the euro debt crisis in the second quarter. As a 

result, the broad market indices recorded increases, such as 

the 13 % increase in the S&P 500 and the 11 % increase in 

the Dow Jones Industrial (all data in US dollars). 

Since healthcare is a defensive sector, it remained 

significantly behind the broad market in this environment. 

This was also due to a number of sector-specific events, such 

as continuing revenue losses due to patent expirations in the 

pharmaceutical sector at the same time that research 

efficiency is declining, additional costs due to healthcare 

reforms, and price pressure from economising measures in 

the public budgets of many EU countries. Given these 

circumstances, the S&P 500 Healthcare Index HCX only 

achieved a gain of +1 %. This was the worst performance of 

all 10 sector sub-indices of the S&P 500. The main 

contributing factors were the underperformances in the Big 

Pharma (-3 %) and medical technology (-4 %) sub-segments. 

However, even the large cap biotechnology companies only 

achieved an increase of +1.9 % (relative to the S&P 500 

Healthcare sub-sectors). Only the highly diversified Nasdaq 

Biotechnology Index NBI (comprised of 130 securities) 

achieved performance comparable to the broad market, 

recording an increase of 15 %. Close to 8 % of this 

performance occurred in December, with a major 

contribution attributable to Intermune’s 145 % increase in 

value due to an EU approval recommendation (all data in US 

dollars). 

In view of the sector-specific challenges, the largest 

companies in the sector, and Big Pharma in particular, find 

themselves in a comprehensive process of transformation 

(including cost reductions, biotechnology integration and 

diversification), of which the success is still impossible to 

predict. The resulting scepticism of many investors led in the 

end to significant underperformance by the large drug 

manufacturers (Amex Pharmaceutical Index DRG in USD: 

-1 % in 2010). As a result, the valuations of Big Pharma 

companies are at historically low levels, with an average 

price-earnings ratio (based on expected earnings for 2011) of 

10.2 for US pharmaceutical companies and 11.0 for the EU 

(Jeffries, 11 January 2011). 

3


At the same time, the valuations of large cap biotechnology 

companies increasingly approached those of the large cap 

pharmaceutical companies. Mature product portfolios also 

lead to low growth rates for these companies, causing the 

price-earnings ratio (for the next 12 months) to decline from 

19 in 2006 to a current value of approximately 13, which is 

also a historically low value. Part of this is due to the 

uncertainty surrounding the expected competition by 

biosimilars, as high sales antibody products such as Rituxan 

and Enbrel will lose their patents in the USA or Europe 

starting in 2012/13 (Lazard, 6 January 2011). MorganStanley 

(17 June 2010) estimates the overall sales volume of 

biotechnology products with expired patent protection over 

the next five years (until 2015/16) to be approximately USD 

62 billion. 

The negative impression about large cap biotechnology 

companies is also reflected in the breakdown of performance 

according to market capitalisation for 2010. The performance 

of 5.1 % recorded by high cap biotechnology companies 

(> USD 2 billion) lagged significantly behind mid cap 

companies. Companies in the USD 1 to 2 billion segment 

rose by 28.3 %, and those in the USD 0.5 to 1 billion 

segment by 9.0 %. The performance of small cap shares, 

however, was surprisingly weaker. Growth was 5.7 % in the 

segment from USD 200 to 500 million and companies with a 

capitalisation of less than USD 200 million even ended the 

year with a loss of -10.7 % (BIOCENTURY of 3 January 

2011, see Table 1). This weakness was due in part to the 

difficult funding conditions for small companies with 

products in the early stages of clinical development. 

4 

Market capitalisation Performance in % 

> USD 2,000m +5.1 

USD 1,000-1,999m +28.3 

USD 500-999m +9.0 

USD 200-499m +5.7 

< USD 200m -10.7 

Table 1: 2010 performances of biotechnology securities 

according to market capitalisation (all data in USD) 

In general, however, the funding situation in the 

biotechnology sector showed improvement. While USD 24.3 

billion was raised by a variety of funding measures in 2009, 

funding in the biotechnology sector reached a volume of 

USD 36.2 billion in 2010 (Biocentury, 3 January 2011). 

The medical technology sector fell by -4 % in 2010, making 

it the healthcare segment with the poorest performance. The 

leading medical technology companies are also feeling the 

disadvantage of having a mature product portfolio with a 

lack of product innovation. The resulting competitive 

pressures lead to more difficult price negotiations that, 

combined with tight hospital budgets, resulted in price 

reductions. The affected products include high margin 

implants, such as defibrillators, stents, orthopaedic implants 

and dental implants. The medical technology sector was also 

adversely affected by the reduced demand for medical and 

hospital services due to high unemployment and increased 

health insurance co-payments and excesses. The medical 

technology sector has now lost the average 15 per cent 

premium over the S&P 500 that it enjoyed over the last 10 

years and is currently trading at an 8 per cent discount 

(Morgan Stanley, 3 January 2011). 

The structural change that the large caps (which, after all, 

make up approximately 75 % of the market capitalisation, 

Goldmann Sachs, 14 December 2010) are undergoing is a 

burden on the healthcare sector. After two years of 

healthcare sector underperformance in comparison with the 

S&P 500, this sub-segment now has a price-earnings ratio of 

11 (for the next 12 months), which is a 16 % valuation 

discount relative to the S&P 500 (price-earnings ratio of 13 

for the next 12 months) (Leerink Swann, 5 January 2011). 

The industry transformation process mentioned above also 

led to lively M&A activity in part aimed at rejuvenating 

existing product portfolios and pipelines by acquiring smaller 

companies with innovative products. 

Fund strategy and investment performance 

Its strategic focus on small and mid cap securities clearly 

distinguishes FCP OP MEDICAL BioHealth-Trends from 

most other funds in the healthcare and biotechnology sectors, 

which primarily focus on large cap stocks. 

140 

135 

130 

125 

120 

115 

110 

105 

100 

95 

90 

01/10 02/10 03/10 04/10 05/10 06/10 07/10 08/10 09/10 10/10 11/10 12/10 

FCP OP Medical Biohe@lth-Trends EUR Nasdaq Biotechnology Index EUR Amex Pharmaceuticals Index EUR S&P 500 EUR 

Figure 1: Comparison of FCP OP MEDICAL BioHealth Trends 

with Nasdaq Biotechnology Index, AMEX Pharmaceutical Index 

and S&P 500 Index (all data in EUR) from 1/1/2010 to 

30/12/2010, as at 30/12/2010 

Source: Datastream (price indices in EUR), Oppenheim Asset Management Services 

S.à r.l. (Fund: performance calculated using the BVI method). Index performance 

calculations and exchange rate conversions performed using closing prices and 

exchange rates on the preceding day. Since the Fund invests primarily in North 

America, the time difference is taken into account. 

The Fund’s Unit Class EUR recorded an increase in value of 

20.9 %* over the reporting period (see Fig. 1), which 

represented an underperformance of -5.8 % compared to the 

Nasdaq Biotechnology Index (NBI in EUR), which rose 

26.7 %. The underperformance of the Fund can be explained 

by the difficult situation in the medical technology segment

120 

110 

100 

90 

80 

70 

60 

50 

40 

30 


(which is not represented at all in the NBI) and for 

biotechnology companies with a market capitalisation of less 

than USD 500 million (which make up only 8 % of the 

market capitalisation of the NBI). In contrast, the Fund's 

performance was 13.3 % higher than the DRG 

pharmaceuticals index (+7.6 % in EUR), and only a slight 

-1.8 % lower than the broad market S&P 500 (+22.7 %) (all 

data in EUR). 

FCP OP MEDICAL BioHealth-Trends is available in both a 

currency hedged and a non-currency hedged unit class. The 

currency hedged Unit Class EUR H rose by 13.3 %* over the 

reporting period. 

A key factor that distinguishes the investment strategy used 

by FCP OP MEDICAL BioHealth-Trends is its stock picking 

method, which does not depend on any indices. The Fund's 

investment strategy remained unchanged during the reporting 

period in terms of its primary focus on young companies 

with innovative products whose future development should 

bring corresponding increases in value. 

Since the inception of the Unit Class EUR on 30 October 

2000, the Fund has maintained a considerable lead over 

related healthcare indices and broad market indices (see Fig. 

2). For example vs.: 

• Nasdaq Biotechnologieindex NBI (in EUR): +63.3 % 

• AMEX Pharmaindex DRG (in EUR): +69.0 % 

• S&P 500 Index (in EUR): + 57.1 % 

• MSCI World Index (in EUR): +50.2 % 

20 

10/00 10/01 10/02 10/03 10/04 10/05 10/06 10/07 10/08 10/09 10/10 


BioHe@lth-Trends 

Anteilklasse EUR 

MSCI World Index (in 

EUR) 

S&P 500 Index (in 

EUR) 

Amex Pharma-Index 

(in EUR) 

NASDAQ Biotech- 

Index (in EUR) 

Figure 2: Comparison of FCP OP MEDICAL BioHealth Trends 

with Nasdaq Biotechnology Index, AMEX Pharmaceutical Index 

and S&P 500 Index (all data in EUR) since the inception of the 

Fund (from 30/10/2000 to 30/12/2010), as at 30/12/2010 

Source: Datastream (price indices in EUR), Oppenheim Asset 

Management Services S.à r.l. (Fund: performance calculated using the 

BVI method). Index performance calculations and exchange rate 

conversions performed using closing prices and exchange rates on the 

preceding day. Since the Fund invests primarily in North America, the 

time difference is taken into account. 

FCP OP MEDICAL BioHealth-Trends (Unit Class EUR) 

held 1st place in a 10-year peer group comparison of 15 

funds in the biotechnology segment, and 2nd place in a 

3-year peer group comparison of 19 funds (Micropal list as at 

30 December 2010). 

Compared to the biotechnology fund category (in which the 

average performance of all funds is calculated), FCP OP 

MEDICAL BioHealth-Trends achieved outperformances for 

rolling annual returns over a variety of periods, as shown in 

the table below from Morningstar. 

Rolling returns 


Biotechnology 

(%) 

BioHealth-Trends 

fund category 

1-year (2010) 20.88 17.62 

3-year p.a. 11.37 3.54 

5-year p.a. 2.23 0.16 

Since inception p.a. 1.44 -5.17 

Table 2: Rolling annual returns; source: Morningstar Factsheet, 

30/12/2010 

Cumulative returns show a similar picture, as can be seen in 

the following table: 

Cumulative return FCP OP MEDICAL 

Biotechnology 

(%) 

BioHealth-Trends 

fund category 

3-year 38.12 11.01 

5-year 11.68 0.80 

10-year 43.24 -31.68 

Since inception 15.64 

Table 3: Cumulative returns; source: Morningstar Factsheet, 

30/12/2010 

This means that FCP OP MEDICAL BioHealth-Trends 

provided a 10-year cumulative return that was 74.92 % 

higher than the average of all funds in the biotechnology 

fund category. 

FCP OP MEDICAL BioHealth-Trends received a number of 

awards during the reporting year. In January 2010, for 

example, the renowned financial newspaper €uro awarded 1st 

place to Unit Class EUR of the Fund and 2nd place to the 

currency hedged Unit Class EUR H for their 2009 

performance in the biotechnology equity fund category. In 

June 2010, STANDARD & POOR’S awarded the Fund its 

"Long Term Fund Management Rating" for consistently good 

management performance. The Fund has received an “AA” 

rating for the sixth time in a row. 

The portfolio held 86 stock positions at the end of the 

reporting period, compared to 79 at the beginning. The lively 

portfolio activity throughout the year is shown by the fact 

that the Fund invested in a total of 122 stock positions during 

that time. Purchases and sales were made based on news 

reports, achievement of target prices or due to takeovers. 

5


As at 30 December 2010, the 10 largest positions in the fund 

portfolio represented close to 28 % of the assets under 

management. The five largest positions were as follows: 

6 

Company Weighting 

in % 

Market 

capitalisation 

in USD m 

Segment Remarks 

ImmunoGen 4.3 640 Biotechnology Leader in antibody toxin 

conjugates 

Celera 3.2 508 Biotechnology Biomarkers, for 

personalised medicine 

among other things 

HBM 

Bioventures 

2.9 463 Biotechnology Investment company 

with investments in 35 

companies, mostly 

privately held 

Biomarin 2.8 2,785 Biotechnology Products (orphan 

drugs) against rare 

hereditary illnesses 

Ligand 2.8 175 Biotechnology Broad pipeline, already 

a variety of products on 

the market through 

partners 

Table 4: Five largest positions in the portfolio, as at 30/12/2010 

The Fund mainly invests in companies that have at least one 

product on the market (71.8 % of assets under management) and 

are either already profitable (40.8 %) or on the way to 

profitability (31.0 %). A further 14.5 % of assets under 

management are invested in companies whose products are in 

the final stage of clinical development or in the approval 

process. Only 10.9 % of assets under management were invested 

in companies with products in the early stages of product 

development (see Fig. 3). In this latter group, care was also 

taken to ensure that companies had sufficient funding for at least 

two years or had products or technologies that would be 

attractive to a partner. 

Companies with 

products on the 

market 

31,0 % 

Profitable 

companies with 

products on the 

market 

40,8 % 

Liquidity and other 

2,8 % 

Products in the 

early clinical phase 

10,9 % 

Products in Phase 

III and in the 

approval process 

14,5 % 

Figure 3: Portfolio structure of FCP OP MEDICAL BioHealth- 

Trends according to product status, in percentage of assets under 

management as at 30/12/2010 

In accordance with the Fund's primary focus on young 

companies and small and mid cap securities, 46.9 % of the 

assets under management were invested in companies with a 

market capitalisation of less than USD 500 million (23.1 % 

in companies below USD 200 million and 23.8 % in 

companies between USD 200 and 500 million). 20.4 % of the 

assets under management were in companies whose market 

capitalisation was between USD 500 million and 1.5 billion, 

6.7 % in companies with a market capitalisation of between 

USD 1.5 and 5 billion, and 23.2 % in companies with a 

market capitalisation greater than USD 5 billion (see Fig. 4). 

30 

25 

20 

15 

10 

5 

23,1 

0 

< USD 200m USD 200-500m USD 500-1,500m USD 1,500 -5,000m > USD 5,000m Liquidity and other 

Number 32 26 11 4 13 

Figure 4: Portfolio structure of FCP OP Medical BioHealth- 

Trends according to market capitalization, in percentage of 

assets under management (figures under the bars indicate the 

number of companies in each segment) as at 30/12/2010 

In terms of the different investment segments in the 

healthcare sector, the main areas of Fund investment at 

period end were innovative drug developers in the 

biotechnology segment, with a weighting of 53.3 %, and the 

emerging pharmaceuticals sector with 30.2 %. 10.3 % of 

assets under management were invested in companies in the 

medical technology sector, and 3.4 % in the healthcare 

services sector. 

The regional breakdown of assets under management reflects 

the importance of each market and the number of innovative 

listed companies in the healthcare sector. A majority of the 

investments (67 %) are hence in North America. 29.0 % are 

in European countries and 1 % in other regions (see Fig. 5). 

Liquidity holdings were 3 %. 

29,0% 

Fig. 5: Breakdown of assets under management according to 

region, as at 30/12/2010 

Progress in product development, product partnerships and, 

finally, market approval by the examining authorities are key 

factors in the performance of portfolio companies. 

Companies in the FCP OP MEDICAL BioHealth-Trends 

portfolio also reported significant product advances in the 

last year. The following companies, for example, received 

market approval for their products (in the USA unless 

otherwise indicated): 

• Biomarin Pharmaceutical Inc. for Zenas (orphan product 

for treating Lambert-Eaton-Rooke syndrome, approved 

in the EU) 

23,8 

1,0% 

20,4 

3,0% 

6,7 

67,0% 

North America Europe Other Liquidity 

23,2 

2,8


• Ligand Pharmaceuticals Inc. for Revolade (for treating 

idiopathic thrombocytopenic purpura, partnership with 

Glaxo, EU approval) 

• AtriCure Inc. for AtriClip (closure system for cardiac 

atrial appendages) 

• BSD Medical Corp. for MicrothermX (for tumour 

radiation) 

• Prostrakan Group PLC for Fortesta (for treating 

hypogonadism, partnership with Endo Pharma) 

The following companies are examples of holding that 

entered into product partnerships and platform deals: 

• Basilea Pharmaceutica AG issued Astellas a license for 

Isavuconazole, a drug undergoing approval studies for 

the treatment of serious systemic fungal infections. In 

addition to an advance payment of CHF 75 million, 

Basilea can receive further milestone payments of up to 

CHF 478 million and double-digit royalties based on 

product sales. The company also retained co-promotion 

rights. 

• Neurocrine Biosciences Inc. entered into a partnership 

with Abbott for an endometriosis product, receiving 

advanced payments of USD 75 million, as well as future 

performance payments of up to USD 500 million and 

royalties on future sales. 

The Fund also profited from the ongoing process of 

consolidation in the drug and medical technology sectors. A 

number of portfolio companies were acquired at high price 

premiums or received takeover offers during the reporting 

period: 

Acquired Sub-segment From Takeover premium 

Bioform Medical technology Merz Pharma 60% 

OSI Pharma Biotechnology Astellas 55% 

Javelin Emerging 

pharmaceuticals 

Hospira 61% 

ATS Medical Medical technology Medtronic 54% 

Zymogenetics Biotechnology Bristol Myers 

Squibb 

84% 

Crucell Biotechnology Johnson & 

Johnson 

58% 

Cypress Emerging 

Financial 

160% 

pharmaceuticals investors 

Genzyme Biotechnology Sanofi 40% 

Table 5: Portfolio companies acquired in 2010, the takeover 

premium is based on the share price before the takeover 

announcement 

The importance that stock picking has for the investment 

performance of FCP OP MEDICAL BioHealth-Trends is 

clearly demonstrated by the fact that selected investments are 

able to achieve price gains that far exceed the average. For 

example, the companies listed below achieved the largest 

price gains in the Fund during the reporting period. 

Above-average price losses were mainly the result of 

development setbacks (e.g. Ipsen, Curis and Neuroseach), 

denial of approval (e.g. Xenoport), disappointing sales or 

earnings (e.g. Biodelivery, Dyax, Auxilium), or the end of a 

partnership (e.g. Response Biomedical). 

Company Sub-sector Reasons Price 

gains 

(in LC) 

Amarin Emerging 

pharmaceuticals 

Successful completion of 

an approval study for 

lipid reducer 

Approval for tumour 

radiation device 

487% 

BSD Medical Medical 

technology 

259% 

Neurocrine 

Biotechnology Successful completion of 233% 

Bioscience 

Phase II study of 

Elagolix and partnership 

with Abbott 

Swedish Orphan Biotechnology Merger with Swedish 149% 

Biovitrum 

Orphan and advances 

for haemophilia products 

Cypress Emerging Acquired by financial 119% 

pharmaceuticals investors 

Staar Surgical Medical 

Improved financial 107% 

technologies structure and progress in 

approval of Visian TICL 

YM Biosciences Biotechnology Advances in 

development of JAK 

inhibitors 

88% 

OSI 

Pharmaceuticals 

Biotechnology Acquired by Astellas 85% 

Ziopharm Biotechnology Start of approval study 

for Zymafos 

82% 

Atricure Medical 

Sales growth and 

78% 

technology introduction of a new 

product 

Table 6: Companies with above-average price gains (in local 

currency, LC) during the reporting period 

In the case of pre-market investments, the Berlin 

biotechnology company Noxxon now has a second 

proprietary Spiegelmer product in clinical development, 

NOX-A12 (for stem cell mobilisation), to follow NOX-E36 

(for inflammatory kidney diseases). The start of clinical 

development for another preparation (NOX-H94 to mobilise 

iron metabolism for anaemia) is scheduled for the beginning 

of 2011. Based on these product advances, Noxxon was able 

to successfully raise EUR 35 million in funding in May (new 

lead investor NGN Capital). FCP OP MEDICAL BioHealth- 

Trends participated in this funding. 

The Fund also participated in the private funding for six 

other companies, namely YM Biosciences, Neurocrine 

Biosciences, Dyax and Pharming, Cerus and WorldHeart. It 

was hence able to purchase shares at a discount from the 

current market price, together with warrants in some cases. 

Change in fund units and assets under management 

The Fund had EUR 101.6 million in assets under 

management at the end of the reporting period (beginning of 

period: EUR 78.5 million). This growth was due to price 

increases as well as net inflows of EUR 6.8 million. The 

number of Fund units rose by 8.3 % from 667,697 to 

722,926. 

Outlook 

Forecasts for the global healthcare market assume that it will 

grow 1.25 to 1.5 times as fast as gross domestic product over 

the next 10 years. In absolute terms, the leading markets in 

7


the USA, Europe and Japan are expected to grow by USD 1.8 

- 2.0 trillion, and the rest of the world (in particular the 

emerging markets) by USD 1.7 - 2.2 trillion (Morgan 

Stanley, 7 January 2010, sources IMF and WHO). With 

respect to drug expenditures, IMS Health (21 April 2010) 

predicts annual growth rates of approximately 5 %, which 

corresponds to an increase in global drug sales from USD 

839 billion in 2009 to USD 1.1 trillion in 2014. In the 

industrialised countries, this is primarily based on expected 

product innovations and the increasing age of the population. 

The strong growth in emerging market demand for healthcare 

services is correlated with the above-average increase in 

prosperity there. 

In contrast to these growth forecasts, current valuations of 

pharmaceutical, biotechnology and medical technology 

companies are at historically low levels, mainly due to a 

focus on generally weak growth resulting from structural 

factors. This weak growth is primarily the result of extensive 

drug patent expirations (it is estimated that approximately 

USD 180 billion in annual sales will become patent-free 

between 2009 and 2016, Morgan Stanley, 17 June 2010), as 

well as government healthcare reforms and economising 

measures in public budgets that could negatively affect 

healthcare expenditures in the industrialised countries. On 

the other hand, US healthcare reform could, by itself, trigger 

a significant growth spurt starting in 2014 by enrolling more 

than 32 million Americans in health insurance plans. 

New drugs in both the pharmaceutical and biotechnology 

sectors will once again make key contributions to this 

growth. These include, for example, a second generation of 

antibodies with improved characteristics, new cancer 

medications and products for CNS illnesses, such as multiple 

sclerosis and Alzheimer’s disease. Further advances can also 

be expected in terms of medications for auto-immune 

illnesses such as rheumatism, antibiotics for multiresistant 

germs and preparations for stroke, cardiac dysrhythmias and 

diabetes. In addition, companies have also specialised in new 

vaccine development, so-called "orphan" products for rare 

hereditary illnesses (e.g. Gaucher’s disease) and targeted 

therapies for personalised medicine based on genetic 

profiles. 

The prospects for the medical technology sector are also 

varied. Due to a mature product portfolio, intensive price 

competition is having an adverse effect on the sales growth 

of many products. The competitive situation is, however, 

having a positive effect on purchases of innovative medical 

technology capital goods for diagnosis and therapy in the 

hospital sector. In addition, a strengthening of the economic 

upturn could be expected to overcome the recessionary 

weakness in self-pay products (aesthetic products, dental 

implants, hearing aids) and co-payments by patients should 

8 

eliminate the backlog of surgical interventions built up in 

previous years. Product innovations, such as molecular or 

gene-based testing systems, innovative minimally invasive 

procedures for replacing heart valves, robot-controlled 

surgical technologies, innovative radiation procedures for 

cancer therapy, and imaging procedures are also attractive 

growth segments. 

The process of transformation already begun by large cap 

companies will continue. As a result, M&A activities can 

also be expected to continue in the future, which means that 

small and mid cap companies with innovative and well 

differentiated products can be expected to be attractive 

licensing partners and takeover candidates. Continued 

economic recovery should also improve the funding 

conditions for small cap companies with market 

capitalisations of less than USD 500 million, so that they too 

can pursue product development in financial security. 

Summary 

FCP OP MEDICAL BioHealth-Trends' focus on small and 

mid cap companies developing innovative products in the 

healthcare sector (biotechnology, medical technology, 

emerging pharmaceuticals, etc.) is designed to offer long- 

term investors potential price gains that will continue to 

exceed average market growth rates. The small and mid cap 

segment still continues to offer favourable conditions for 

positive price performance, even after the good performance 

achieved by the Fund in the last two years. 

*) calculated according to BVI Bundesverband Investment 

und Asset Management e.V. 

The statements about the capital market environment are 

consistent with the state of information at the time of the 

reporting. The investment advisor reserves the right to 

modify his assessment.


THE KEY FACTS 

Investment policy Shares in biotechnology, medical 

German Security-code 

technology, health industry and pharmacy 

Unit Class EUR 941.135 

Unit Class EUR H A0F69B 

Unit Class I A0MNRQ 

Unit Class I H A0MQG5 

ISIN-Code 

Unit Class EUR LU0119891520 

Unit Class EUR H LU0228344361 

Unit Class I LU0294851513 

Unit Class I H LU0295354772 

Swiss Security-code 

Unit Class EUR 1.148.391 

Unit Class EUR H 2.256.911 

Unit Class I 3.032.638 

Unit Class I H 3.041.692 

Fund currency EUR 

Date of inception 

Unit Class EUR 30.10.2000 

Unit Class EUR H 01.10.2005 

Unit Class I 02.05.2007 

Unit Class I H 02.05.2007 

Financial year 01.01. - 31.12. 

Reporting period 01.01.2010 - 31.12.2010 

First offering price per unit 

Unit Class EUR 126,00 EUR 

Unit Class EUR H 124,02 EUR 

Unit Class I 129,00 EUR 

Unit Class I H 133,72 EUR 

(each incl. offering premium) 

First bid price per unit 

Unit Class EUR 120,00 EUR 

Unit Class EUR H 118,11 EUR 

Unit Class I 122,86 EUR 

Unit Class I H 127,35 EUR 

Subscription fee up to 5,00 % 

Management fee p.a. up to 1,90 % 

plus performance bonus 

Custodian bank fee p.a. up to 0,15 % 

Dividends none (reinvested) 

AT-A-GLANCE 31.12.2010 

Total Net Assets (EUR millions) 101,65 

Units in circulation Class (EUR) - (units) 370.450 

Bid price Class (EUR) - (EUR per unit) 138,77 

Offering price Class (EUR) - (EUR per unit) 145,71 

Units in circulation Class (EUR H) - (units) 101.580 

Bid price Class (EUR H) - (EUR per unit) 141,07 

Offering price Class (EUR H) - (EUR per unit) 148,12 

Units in circulation Class (I) - (units) 209.358 

Bid price Class (I) - (EUR per unit) 141,65 

Offering price Class (I) - (EUR per unit) 148,73 

Units in circulation Class (I H) - (units) 41.538 

Bid price Class (I H) - (EUR per unit) 150,60 

Offering price Class (I H) - (EUR per unit) 158,13 

DEVELOPMENT OF THE TOTAL NET ASSETS 

OVER THE LAST 3 YEARS 

VALUES AT FINANCIAL YEAR-END 

Financial year Total Net Assets 

01.10.2006 - 31.12.2007 

(in EUR) 

01.01.2008 - 31.12.2008 51.191.562,56 

01.01.2009 - 31.12.2009 78.501.097,30 

01.01.2010 - 31.12.2010 

DEVELOPMENT OF THE NET ASSET VALUE OVER 

THE LAST 3 YEARS 

VALUES AT FINANCIAL YEAR-END 

Financial Year 

110.208.840,60 

101.647.221,24 

Net Asset Value per Unit (in EUR) 

EUR EUR H I I H 

01.10.2006 - 31.12.2007 100,47 111,50 100,33 111,54 

01.01.2008 - 31.12.2008 68,76 75,17 69,02 78,79 

01.01.2009 - 31.12.2009 114,80 124,56 115,86 131,57 

01.01.2010 - 31.12.2010 138,77 141,07 141,65 150,60 

9


DEVELOPMENT OF THE NET ASSET VALUE (IN EUR) 

UNIT CLASS EUR 

Highest net asset value per unit 

in the reporting period (30.12.2010) 138,77 

Lowest net asset value per unit 


Performance in the period under review *) 20,88 % 

Performance since commencement *) 15,64 % 

Performance over the last 3 years 


UNIT CLASS EUR H 








*) calculated according to BVI Bundesverband Investment und Asset Management e.V. 

10 

80% 

60% 

40% 

20% 

0% 

-20% 

-40% 

-60% 

80% 

60% 

40% 

20% 

0% 

-20% 

-40% 

-60% 

-31,56% 

66,96% 

20,88% 

01.01.08 - 31.12.08 01.01.09 - 31.12.09 01.01.10 - 31.12.10 

Performance*) of the financial year in % (left scale) 

Accumulated performance on month-end basis, indicated on 100 per 

01.01.08 (right scale) 

-32,58% 

65,70% 

13,25% 

01.01.08 - 31.12.08 01.01.09 - 31.12.09 01.01.10 - 31.12.10 




180 

160 

140 

120 

100 

80 

60 

40 

180 

160 

140 

120 

100 

80 

60 

40 


UNIT CLASS I 








80% 

60% 

40% 

20% 

0% 

-20% 

-40% 

-60% 

-31,21% 


UNIT CLASS I H 




67,86% 





80% 

60% 

40% 

20% 

0% 

-20% 

-40% 

-60% 

22,26% 

01.01.08 - 31.12.08 01.01.09 - 31.12.09 01.01.10 - 31.12.10 




-29,36% 

66,99% 

14,46% 

01.01.08 - 31.12.08 01.01.09 - 31.12.09 01.01.10 - 31.12.10 




Past performance is no indication of current or future performance. The performance 

data do not take account of commissions and costs on the issue and redemptions of units. 

180 

160 

140 

120 

100 

80 

60 

40 

180 

160 

140 

120 

100 

80 

60 

40


STATEMENT OF CHANGES IN THE NUMBER OF UNITS 

OUTSTANDING FROM 01.01.2010 TO 31.12.2010 

UNIT CLASS EUR 

Number of units outstanding at the beginning 

of the reporting period 424.075 

Number of units issued 185.415 

Number of units redeemed -239.040 

Number of units outstanding at the end 




UNIT CLASS EUR H 









UNIT CLASS I 









UNIT CLASS I H 







GEOGRAPHIC CLASSIFICATION 

OF INVESTMENTS 

% of fund's 

assets 

USA 59,05 

Switzerland 9,54 

United Kingdom 7,52 

France 4,58 

Germany 3,03 

Sweden 2,47 

Denmark 2,36 

Israel 2,29 

Canada 2,28 

Belgium 1,61 

Cayman Islands 0,75 

Austria 0,60 

Norway 0,59 

Australia 0,34 

Greece 0,17 

CURRENCY CLASSIFICATION 


97,18 

% of fund's 

assets 

USD 66,26 

CHF 9,54 

EUR 8,80 

GBP 6,47 

SEK 2,47 

DKK 2,36 

NOK 0,59 

CAD 0,35 

AUD 0,34 

ECONOMIC CLASSIFICATION 


97,18 

% of fund's 

assets 

Bio-Tech 53,34 

Emerging Pharma 30,19 

Med-Tech 10,26 

Healthcare-Services 3,39 

97,18 

11


CHANGES IN NET ASSETS (IN EUR) 

FOR THE PERIOD FROM 01.01.2010 TO 31.12.2010 

Net assets at the beginning 

of the reporting period 78.501.097,30 

Subscriptions (EUR) 

Subscriptions (EUR H) 

Subscriptions (I) 

Subscriptions (I H) 

Redemptions (EUR) 

Redemptions (EUR H) 

Redemptions (I) 

Redemptions (I H) 

Total proceeds from unit transactions 6.777.390,94 

Income equalisation -52.735,58 

Net investment income/expense -3.155.761,73 

Realized gain/loss 

on investments 12.044.082,94 

on options -98.623,05 

on foreign exchange transactions -48.254,22 

on foreign forward exchange transactions -1.045.453,48 

Net change in unrealized 

appreciation/depreciation 

on investments 8.754.387,63 

on foreign exchange transactions 51.757,16 

on foreign forward exchange transactions -80.666,67 

Result of operations 16.421.468,58 

Total net assets at the end 

of the reporting period 

12 

23.084.848,13 

2.458.449,65 

14.935.229,02 

1.224.324,32 

-30.087.538,86 

-1.654.915,34 

-1.036.360,17 

-2.146.645,81 

101.647.221,24 

STATEMENT OF OPERATIONS (IN EUR) 

FOR THE PERIOD FROM 01.01.2010 TO 31.12.2010 

(INCL. INCOME EQUALISATION) 

Income 

Interest on bonds 6.952,90 

Dividends 445.635,41 

Interest on bank deposits 6.689,97 

Income equalisation -9.669,10 

Total income 449.609,18 

Expenses 

Management fee -1.463.649,55 

Performance bonus -1.800.695,33 

Custodian bank fee -145.024,50 

Taxe d'Abonnement -36.855,88 

Audit fee -11.000,00 

Other expenses -210.550,33 

Expense equalisation 62.404,68 

Total expenses -3.605.370,91 

Net investment income/expense -3.155.761,73 

Realized gain/loss 10.851.752,19 

Net change in unrealized 

appreciation/depreciation 8.725.478,12 

Result of operations 16.421.468,58


STATEMENT OF ASSETS AND LIABILITIES AS OF 31.12.2010 

Shares 

Number Price Market Value %*) of 

Currency of Securities description in (EUR) Net Assets 

Shares Currency 31.12.2010 

AUD 1.005.865 ChemGenex Pharmaceuticals Ltd. 0,4450 345.431,33 0,34 

CAD 1.809.883 Adherex Technologies Inc. 0,0550 75.935,32 0,07 

CAD 118.500 Protox Therapeutics Inc. 0,7200 65.085,08 0,06 

CAD 837.017 Response Biomedical Corp. 0,3400 217.091,99 0,21 

CHF 139.160 Addex Pharmaceuticals Ltd. NA 9,8100 1.094.667,31 1,08 

CHF 38.483 Basilea Pharmaceutica AG NA 65,1000 2.008.855,19 1,98 

CHF 88.443 HBM BioVentures AG NA 42,0000 2.978.595,16 2,93 

CHF 23.000 Lonza Group AG NA 77,2500 1.424.705,32 1,40 

CHF 48.500 Novartis AG NA 56,3000 2.189.519,70 2,15 

DKK 32.294 Alk-Abello A/S -B- 322,5000 1.397.417,80 1,37 

DKK 23.827 Bavarian Nordic A/S 246,0000 786.464,61 0,77 

DKK 466.928 Topotarget A/S 3,3600 210.505,72 0,21 

EUR 310.676 Alapis S.A. 0,5400 167.765,04 0,17 

EUR 26.100 Eurofins Scientific S.A. 54,1700 1.413.837,00 1,39 

EUR 52.000 Intercell AG 11,7400 610.480,00 0,60 

EUR 124.762 Marseille-Kliniken AG 2,5500 318.143,10 0,31 

EUR 46.000 Rhoen-Klinikum AG 16,3000 749.800,00 0,74 

EUR 41.300 Sanofi-Aventis 49,1500 2.029.895,00 2,00 

EUR 62.500 UCB S.A. 26,1800 1.636.250,00 1,61 

GBP 964.283 BTG PLC 2,3300 2.636.755,14 2,59 

GBP 147.600 GlaxoSmithkline PLC 12,6600 2.192.953,55 2,16 

GBP 630.115 Prostrakan Group PLC 0,8925 659.990,09 0,65 

GBP 737.729 Vectura Group PLC 0,6900 597.386,38 0,59 

GBP 1.071.729 Vernalis PLC 0,3875 487.378,16 0,48 

NOK 117.270 Clavis Pharma ASA 40,2000 603.092,58 0,59 

SEK 2.175.026 Karo Bio A.B. 1,9300 467.737,11 0,46 

SEK 439.606 Swedish Orphan Biovitrum AB 41,8000 2.047.481,39 2,01 

USD 342.547 Achillion Pharmaceuticals Inc. 4,0000 1.043.953,09 1,03 

USD 496.352 Adolor Corp. 1,2500 472.716,34 0,47 

USD 164.680 Amarin Corp. PLC ADR 8,5000 1.066.499,38 1,05 

USD 51.400 Amgen Inc. 55,8700 2.187.976,30 2,15 

USD 150.000 Amylin Pharmaceuticals Inc. 14,8300 1.694.857,67 1,67 

USD 235.554 Arqule Inc. 6,0700 1.089.381,51 1,07 

USD 292.198 Array BioPharma Inc. 3,0100 670.107,62 0,66 

USD 117.999 AtriCure Inc. 10,2700 923.314,37 0,91 

USD 68.000 Auxilium Pharmaceuticals Inc. 21,1400 1.095.253,68 1,08 

USD 271.896 AVI Biopharma Inc. 2,1200 439.176,91 0,43 

USD 56.100 Baxter Intl. Inc. 50,9100 2.176.039,54 2,14 

USD 700.368 BioDelivery Sciences Intl. Inc. 3,2100 1.712.900,56 1,69 

USD 139.100 Biomarin Pharmaceutical Inc. 27,2600 2.889.041,66 2,84 

USD 401.903 BioScrip Inc. 5,2900 1.619.860,98 1,59 

USD 33.068 BioSpecifics Technologies Corp. 25,2901 637.175,84 0,63 

13



USD 50.000 Biostar Pharmaceuticals Inc. 2,7000 102.857,18 0,10 

USD 171.607 BSD Medical Corp. 4,7300 618.439,13 0,61 

USD 164.872 Cardiome Pharma Corp. 6,0000 753.700,81 0,74 

USD 677.744 Celera Corp. 6,3000 3.253.172,22 3,20 

USD 143.930 Celsion Corp. 2,1000 230.288,07 0,23 

USD 803.928 Cerus Corp. 2,5500 1.561.917,75 1,54 

USD 135.200 Concord Medical Services Holdings Ltd. ADR 7,4000 762.270,71 0,75 

USD 267.348 Cytokinetics Inc. 2,0875 425.210,76 0,42 

USD 71.500 Durect Corp. 3,5700 194.480,06 0,19 

USD 674.680 Dyax Corp. 2,0800 1.069.207,50 1,05 

USD 138.748 Endologix Inc. 7,3400 775.931,91 0,76 

USD 134.502 Escalon Medical Corp. 1,3000 133.221,07 0,13 

USD 227.734 Flamel Technologies S.A. ADR 6,9200 1.200.700,78 1,18 

USD 86.608 Furiex Pharmaceuticals Inc. 14,1000 930.417,66 0,92 

USD 45.300 Genzyme Corp. 71,1300 2.455.001,91 2,42 

USD 52.000 Gilead Sciences Inc. 36,4000 1.442.133,78 1,42 

USD 20.000 Hospira Inc. 55,5000 845.714,55 0,83 

USD 600.715 Immunogen Inc. 9,5000 4.348.033,74 4,28 

USD 1.011.300 Insmed Inc. 0,6311 486.271,72 0,48 

USD 417.102 Ligand Pharmaceuticals Inc. 8,9100 2.831.527,60 2,79 

USD 687.461 Ligand Pharmaceuticals Inc. Metabasis General CVR 0,0150 7.856,70 0,01 

USD 687.461 Ligand Pharmaceuticals Inc. Metabasis Glucagon CVR 0,0180 9.428,04 0,01 

USD 687.461 Ligand Pharmaceuticals Inc. Metabasis Roche CVR 0,0215 11.261,27 0,01 

USD 687.461 Ligand Pharmaceuticals Inc. Metabasis TR Beta CVR 0,0220 11.523,16 0,01 

USD 101.267 Maxygen Inc. 3,9800 307.080,22 0,30 

USD 85.269 MediciNova Inc. 4,8600 315.739,02 0,31 

USD 147.000 Mylan Inc. 21,2000 2.374.400,74 2,34 

USD 118.814 Myrexis Inc. 4,2100 381.110,17 0,37 

USD 232.392 Neurocrine Biosciences Inc. 7,8100 1.382.843,49 1,36 

USD 529.503 NovaDel Pharma Inc. 0,1900 76.651,89 0,08 

USD 61.983 Omnicell Inc. 14,6900 693.737,57 0,68 

USD 325.590 Orthovita Inc. 2,0500 508.540,73 0,50 

USD 152.300 Pfizer Inc. 17,6000 2.042.271,11 2,01 

USD 173.700 Progenics Pharmaceuticals Inc. 5,4000 714.651,65 0,70 

USD 103.400 QLT Inc. 7,1600 564.071,80 0,55 

USD 171.000 Safeguard Scientifics Inc. 16,9600 2.209.646,40 2,17 

USD 123.487 Spectranetics Corp. 5,0900 478.894,50 0,47 

USD 393.766 Spectrum Pharmaceuticals Inc. 7,0200 2.106.086,21 2,07 

USD 335.007 Staar Surgical Co. 6,2300 1.590.167,06 1,56 

USD 132.109 Sucampo Pharmaceuticals Inc. 3,7700 379.467,49 0,37 

USD 1.314.803 Sunesis Pharmaceuticals Inc. 0,5350 535.938,92 0,53 

USD 45.818 Syneron Medical Ltd. 10,4300 364.100,49 0,36 

USD 521.735 Talon Therapeutics Inc. 0,4600 182.855,75 0,18 

14 



Shares Currency 31.12.2010



USD 49.500 Teva Pharmaceutical Industries Ltd. ADR 52,0400 1.962.652,04 1,93 

USD 274.900 Titan Pharmaceuticals Inc. 1,2400 259.715,13 0,26 

USD 147.000 Vanda Pharmaceuticals Inc. 9,3500 1.047.200,33 1,03 

USD 54.719 World Heart Corp. 2,3000 95.888,56 0,09 

USD 314.167 YM Biosciences Inc. 2,2500 538.572,17 0,53 

USD 287.468 ZIOPHARM Oncology Inc. 4,7500 1.040.360,71 1,02 

Total Shares 95.744.686,75 94,19 

Non-listed securities 




EUR 83.352 BioM AG - Private Placement 1,5000 125.028,00 0,12 

EUR 716 Eurofins Scientific S.A. 14,2800 10.224,48 0,01 

WTS Call 29.06.17 Eurofins Scientific EUR 40,00 

EUR 4.764 NOXXON Pharma AG - Private Placement 330,2600 1.573.358,64 1,55 

EUR 950 NOXXON Pharma AG - Private Placement -B- 330,2600 313.747,00 0,31 

USD 105.264 Cerus Corp. 0,0000 0,00 0,00 

WTS Call 16.11.15 USD 3,20 - Registered 

USD 68.494 EpiCept Corp. 0,0000 0,00 0,00 

WTS Call 22.06.12 USD 4,41 - Restricted 

USD 300.000 Indevus-Nebido CSR 0,0000 0,00 0,00 

USD 300.000 Indevus-Octreotide Endo CSR 0,4900 112.000,04 0,11 

USD 461.391 Indevus-Octreotide Valera CSR 0,7400 260.136,72 0,26 

USD 461.391 Indevus-Stent CSR 0,0000 0,00 0,00 

USD 433.177 Innovive Pharmaceuticals Inc. 0,0000 0,00 0,00 

Escrow (American Stock Transfer) 

USD 67.000 Innovive Pharmaceuticals Inc. Escrow (DTC) 0,0000 0,00 0,00 

USD 128.205 Innovive Pharmaceuticals Inc. 0,0000 0,00 0,00 


USD 227.600 Ligand Pharmaceuticals Inc. CVR (Pharmacopeia) 0,0000 0,00 0,00 

USD 1.921.413 Neurogen Corp. CVR H3 0,0000 0,00 0,00 

USD 1.921.413 Neurogen Corp. CVR Merck 0,0000 0,00 0,00 

USD 49.655 NovaDel Pharma Inc. 0,0000 0,00 0,00 


USD 500.000 Tikvah Therapeutics Inc. 07-09 Conv. 0,0000 0,00 0,00 

USD 351.220 World Heart Corp. - Restricted 1,8860 504.686,57 0,50 

USD 351.220 World Heart Corp. 0,0000 0,00 0,00 


USD 208.334 YM Biosciences Inc. 0,6500 103.174,97 0,10 

WTS Call 10.03.15 USD 1,60 - Registered 

USD 51.836 ZIOPHARM Oncology Inc. 0,0000 0,00 0,00 


USD 80.500 ZIOPHARM Oncology Inc. 0,4925 30.206,68 0,03 


15



USD 38.278 ZIOPHARM Oncology Inc. 0,0000 0,00 0,00 

16 


Total Non-listed Securities 3.032.563,10 2,98 

Total Investment Portfolio 98.777.249,85 97,18 

Bank Deposits 3.333.312,46 3,28 

Other Assets 

Interests receivable 76.190,50 0,07 

Dividends receivable 34.778,34 0,03 

Receivables from subscriptions 46.811,78 0,05 

Total Other Assets 157.780,62 0,16 

Liabilities 




Taxe d'Abonnement -9.035,00 -0,01 

Liabilities from purchase of investments -27.147,36 -0,03 

Liabilities from redemptions -14.474,69 -0,01 

Liabilities from foreign forward exchange transactions -554.464,64 -0,55 

Other liabilities -16.000,00 -0,02 

Total Liabilities -621.121,69 -0,61 

Total Net Assets 101.647.221,24 100,00 

Net asset value Unit Class EUR 138,77 

Number of units outstanding Unit Class EUR 370.450 

Net asset value Unit Class EUR H 141,07 

Number of units outstanding Unit Class EUR H 101.580 

Net asset value Unit Class I 141,65 

Number of units outstanding Unit Class I 209.358 

Net asset value Unit Class I H 150,60 

Number of units outstanding Unit Class I H 41.538 

*) The rounding down of the percentage in the calculation can result in marginal rounding differences.


Notes to the Annual Report 

The Management Company may assign other companies of 

the Oppenheim group with the management of the funds or 

with duties of the central administration in accordance with 

Luxembourg regulations and under its own responsibility 

and its own costs. 

The financial statements have been prepared in accordance 

with Luxembourg regulations relating to investment funds. 

The market value of the securities corresponds to the most 

recent market or fair value available. Non-listed securities 

are valued at their acquisition costs or fair market value. 

The cost of securities is the weighted average cost of all the 

purchases of these securities. For securities that are priced in 

a currency other than the Fund’s currency, the average cost 

is calculated with the exchange rate of the purchase date. 

The net realized profit and loss on sales of securities is 

determined on the basis of the average cost of securities 

sold. 

Unrealized profits and losses resulting from the valuation of 

securities are taken into account in the result. 

All liquid assets are valued at their nominal value. 

The Fund maintains its books and records in EUR. 

All assets and liabilities not expressed in EUR are converted 

into EUR at the exchange rates prevailing as of December 

29, 2010. 

Australian Dollar AUD 1,295800 = EUR 1 

Canadian Dollar CAD 1,310901 = EUR 1 

Swiss Franc CHF 1,247100 = EUR 1 

Danish Krone DKK 7,452900 = EUR 1 

British Pound GBP 0,852100 = EUR 1 

Norwegian Krone NOK 7,816800 = EUR 1 

Swedish Krona SEK 8,974700 = EUR 1 

US-Dollar USD 1,312501 = EUR 1 

Outstanding foreign forward exchange contracts are valued 

at the foreign forward exchange rate for the remaining 

period of the transaction. The unrealized profits and losses 

are taken into account in the financial statements. 

Foreign Unrealized 

Maturity Forward Profit/Loss 

Sale Date Purchase Exchange Rate (EUR) 

EUR 441.338,73 14.02.11 USD 600.000,00 1,312460 15.817,59 

USD 18.970.000,00 14.02.11 EUR 13.883.474,72 0,761927 -570.282,23 

-554.464,64 

As with the payment for the custodian bank (up to 0,15 % 

p.a.), the renumeration of the management company (up to 

1,90 % p.a.) is computed on the basis of the daily Net Asset 

Value calculation. These are calculated and paid at the end 

of each month. During the reporting period the management 

company received a management fee amounting to EUR 

1.463.649,55 and the custodian bank received a custodian 

bank fee amounting to EUR 145.024,50. 

A trailer fee will be paid to the distributor for the 

distribution of the investment fund and to the asset manager 

to be taken out of the management fee. 

Institutional unitholders who are holding fund units for third 

parties receive reimbursement out of the management fee. 

The investment advisor receives a performance bonus. 

Where it is payable, the performance bonus is equivalent to 

15 % (for Unit Class EUR and EUR H) and 10 % (for Unit 

Class I and I H) of the excess increase in value relative to 

the net asset value per unit and half year. The term „excess 

increase in value“ refers to the appreciation per half year 

which exceeds 2,5 % – adjusted by earlier dividends paid 

and broken financial years. The performance bonus is 

calculated on each day of calculation and deferred 

accordingly; it is only paid if the net asset value per unit as 

at the half year-end – compared with the high at the end of 

the previous half year – records a new high („high water 

mark“), and only then on the new excess increase in value 

that is above the stated high of the net asset value per unit at 

the end of a previous half year. The net asset value per unit 

is adjusted by dividends paid. 

17


The Total Expense Ratio (TER) indicates the costs on the 

Fund’s total assets for the period from January 1, 2010 to 

December 31, 2010. With the exception of the transaction 

costs and the performance bonus, all costs of the fund are 

shown in relation to the average total fund assets. 

In accordance with the Swiss Funds Association (SFA) 

method the following TER-values arise: 

TER incl. performance bonus TER (in %) 

Unit Class EUR 4,05 

Unit Class EUR H 4,40 

Unit Class I 3,67 

Unit Class I H 3,09 

TER excl. performance bonus TER (in %) 

Unit Class EUR 2,13 

Unit Class EUR H 2,15 

Unit Class I 1,73 

Unit Class I H 1,59 

In accordance with the Swiss Funds Association (SFA) the 

Portfolio Turnover Rate (PTR) for the period from 

January 1, 2010 to December 31, 2010 amounts to 1,24. 

Under Luxembourg legislation and regulations, the Fund is 

subject to an annual subscription tax („Taxe 

d’Abonnement“) of 0,05 % p.a. for Unit Class EUR and 

EUR H and of 0,01 % for Unit Class I and I H on its net 

assets, payable quarterly and computed on the basis of the 

net assets of the Fund at the end of each quarter. 

An income adjustment is made in the taxable income; it 

includes net income accrued during the accounting period 

which the buyer of the unit pays in the issue price and which 

the seller of the unit receives by way of reimbursement in 

the bid price. 

The name of the sub-fund FCP OP MEDICAL BioHe@lth- 

Trends changed with effect 15 November, 2010 to FCP OP 

MEDICAL BioHealth-Trends. 

Due to the fact that FCP OP MEDICAL only consists of one 

sub-fund, the FCP OP MEDICAL BioHealth-Trends, as of 

December 31, 2010, the composition of the Total Net Assets, 

the Changes in Net Assets and the Statement of Operations 

of the FCP OP MEDICAL BioHealth-Trends corresponds at 

the same time to the consolidated statements of 

FCP OP MEDICAL. 

18


Report of the Réviseur d’Entreprises agréé 

Report on the financial statements 

Following our appointment by the Board of Directors of the 

Management Company, we have audited the accompanying 

financial statements of FCP OP MEDICAL and each of its 

sub-funds, which comprise the statement of net assets and 

the statement of investments and other net assets as at 

December 31, 2010 and the statement of operations and the 

statement of changes in net assets for the year then ended, 

and a summary of significant accounting policies and other 

explanatory information. 

Board of Directors of the Management Company 

responsibility 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 

judgement 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. 

Opinion 

In our opinion, the financial statements give a true and fair 

view of the financial position of FCP OP MEDICAL and 

each of its sub-funds as of December 31, 2010, and of the 

results of its operations and changes in its net assets for the 

year then ended in accordance with Luxembourg legal and 

regulatory requirements relating to the preparation of the 

financial statements. 

Other matter 

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 concerning such 

information in the context of the financial statements taken 

as a whole. 

Luxembourg, March 29, 2011 

KPMG Audit S.à r.l. 

Cabinet de révision agréé 

Petra Schreiner 

19


Tax information for German investors for the financial year ended as of 31.12.2010 in EUR per unit 

FCP OP MEDICAL BioHe@lth-Trends (EUR) for private for corporate for corporate investors 

LU0119891520 investors investors according according to Corporate 

InvTA section 5 art. 1 to Income Tax Act Income Tax Act 

No. 1 a) the amount of the distribution 0,0000 0,0000 0,0000 

20 

components included in the amount of the distribution 

the deemed distributed income from previous years 

separated to specific financial years 0,0000 0,0000 0,0000 

the amount of substance distribution 0,0000 0,0000 0,0000 

No. 1 b) the amount of distributed income 0,0000 0,0000 0,0000 

No. 1 b) the amount of deemed distribution 0,0000 0,0000 0,0000 

therefrom non-deductible income-related expenses 0,0000 0,0000 0,0000 

as defined in sec. 3 art. 3 sent. 2 no. 2 InvTA 

No. 1 c) the following components included in the distribution / deemed distributed income 

bb) tax-exempt capital gains as defined 0,0000 - - 

in sec. 2 art. 3 no. 1, sent. 1, InvTA 

to apply in the frame of December 31, 2008 

cc) income as defined in sec. 3 no. 40, Income TA - 0,0000 - 

dd) income as defined in sec. 8b, Corporate Income TA - - 0,0000 

ee) capital gains as defined in sec. 3 no. 40, Income TA - 0,0000 - 

ff) capital gains as defined in sec. 8b art. 2, - - 0,0000 

Corporate Income TA 

gg) income as defined in sec. 2 art. 3 no.1, sent. 2, InvTA 0,0000 0,0000 0,0000 

hh) tax-exempt capital gains as defined in 0,0000 0,0000 0,0000 

sec. 2 art. 3 no. 2, InvTA 

ii) income as defined in sec. 4 art. 1, InvTA 0,0000 0,0000 0,0000 

jj) income as defined in sec. 4 art. 2, InvTA (dividends) 0,0000 0,0000 0,0000 

jj) income as defined in sec. 4 art. 2, InvTA (interest) 0,0000 0,0000 0,0000 

kk) income as defined in sec. 4 art. 2 InvTA (dividends) 0,0000 0,0000 0,0000 

kk) income as defined in sec. 4 art. 2 InvTA (interest) 0,0000 0,0000 0,0000 

ll) income as defined in sec. 2 art. 2a InvTA - 0,0000 0,0000 

(Barrier Regulation) 

No. 1 d) the amount of the distributed income, which gives rise to a credit or refund of German withholding tax 

as defined in sec. 7 art. 1 to 3 InvTA 0,0000 0,0000 0,0000 

No. 1 e) the amount of the German withholding tax, which may credited or refunded 


No. 1 f) the amount of foreign withholding taxes on income, which is included 

in the distributed income and deemed distributed income as defined in sec. 4 art. 2, InvTA and 

aa) which may be credited pursuant to sec. 34c art. 1, 0,0000 0,0000 0,0000 

Income TA (Withholding Tax dividends) 


Income TA (Withholding Tax interests) 

bb) which is deductible pursuant to sec. 34c art. 3, 0,0000 0,0000 0,0000 

Income TA (WithholdingTax) 

cc) fictitious foreign withholding tax amount (dividends) 0,0000 0,0000 0,0000 

cc) fictitious foreign withholding tax amount (interest) 0,0000 0,0000 0,0000 

No. 1 g) as defined in sec. 3 art. 3 sent. 1 InvTA 0,0000 0,0000 0,0000 

Depreciation deduction 

For the purposes disclosing tax information, KPMG Audit S.à r.l.,Cabinet de révision agréé, Luxembourg, have certified, in accordance with sec. 5 art. 1 no. 3 of the 

investment tax law, that the disclosure (translated from the certified German version) has been made as set down in sec. 5 art.1 no.1 and 2 of the investment tax law.



FCP OP MEDICAL BioHe@lth-Trends (EUR H) for private for corporate for corporate investors 
















































investment tax law, that the disclosure (translated from the certified German version) has been made as set down in sec. 5 art.1 no.1 and 2 of the investment tax law. 

21



FCP OP MEDICAL BioHe@lth-Trends (I) for private for corporate for corporate investors 




22 













































investment tax law, that the disclosure (translated from the certified German version) has been made as set down in sec. 5 art.1 no.1 and 2 of the investment tax law.



FCP OP MEDICAL BioHe@lth-Trends (I H) for private for corporate for corporate investors 
















































investment tax law, that the disclosure (translated from the certified German version) has been made as set down in sec. 5 art.1 no.1 and 2 of the investment tax law. 

23


24 

Partners 

MANAGEMENT COMPANY AND CENTRAL ADMINISTRATION: 

Oppenheim Asset Management Services S.à r.l. 

4, rue Jean Monnet, L-2180 Luxembourg 

Shareholders’ equity: EUR 2,7 million 

(status: January 1, 2011) 

BOARD OF DIRECTORS: 

Chairman: 

Dr. Wolfgang Leoni (since 17.03.2010) 

Member of the Board 

Sal. Oppenheim jr. & Cie. Komplementär AG, Cologne 

Vice chairman: 

Detlef Bierbaum 

Bankier, Cologne 

Jürgen Fiedler (since 01.07.2010) 



Dr. Jörn Matthias Häuser (since 01.07.2010) 

Chief Operating Officer 


Dr. Rupert Hengster (until 17.03.2010) 

Spokesman of the Board 

Oppenheim Kapitalanlagegesellschaft mbH, Cologne 

Alfons Klein (since 17.03.2010) 


Sal. Oppenheim jr. & Cie. Komplementär S.A., Luxembourg 

Christopher Freiherr von Oppenheim (until 17.03.2010) 

Personally Liable Partner 

Sal. Oppenheim jr. & Cie. S.C.A., Luxembourg 

Dr. Holger Michael Sepp (until 30.06.2010) 


Oppenheim Kapitalanlagegesellschaft mbH, Cologne 

EXECUTIVE BOARD: 

Marco Schmitz, Chairman 

Andreas Jockel 

Dr. Andreas Schmidt-von Rhein 

Max von Frantzius (since 01.07.2010) 

Anita Zuleger (until 30.04.2010) 

CUSTODIAN BANK: 

Sal. Oppenheim jr. & Cie. Luxembourg S.A. 


Shareholders’ equity: EUR 50 million 

(status: January 1, 2011) 

AUDITOR: 

KPMG Audit S.à r.l. 

9, Allée Scheffer, L-2520 Luxembourg 

INVESTMENT ADVISOR: 

Medical Strategy GmbH 

Maria-Eich-Strasse 72, D-82166 Gräfelfing 

Further office: Piechlerstrasse 3-5, D-86356 Neusäß 

(Financial service institute as defined 

by § 1 Abs. 1a KWG [German Banking Act]) 

http://www.medicalstrategy.de 

SCIENTIFIC ADVISORY BOARD: 

Prof. Dr. med. Peter Hohenberger 

Surgical University Clinic Mannheim, 

Div. of Surgical Oncology and Thoracic Surgery 

Prof. Dr. Manfred Weber 

Head physician of the Medical Clinic I 

Clinics of the city of Cologne 

Prof. Dr. med. Thomas Zeller 

Head physician of angiology of the heart clinics 

Bad Krozingen 

PAYING AGENTS: 

in Luxembourg 

Sal. Oppenheim jr. & Cie. Luxembourg S.A. 


in Germany 

Sal. Oppenheim jr. & Cie. AG & Co. KGaA 

Unter Sachsenhausen 4, D-50667 Cologne 

and its branches 

in Austria 

Deutsche Bank Österreich AG 

Head Office Vienna 

Stock im Eisen-Platz 3, A-1010 Vienna


DISTRIBUTION: 

in Germany 

Sal. Oppenheim jr. & Cie. AG & Co. KGaA 

Unter Sachsenhausen 4, D-50667 Cologne 

and its branches 

MS Capital Relations GmbH 

Piechlerstrasse 3-5, D-86356 Neusäß 

(The Company holds the permission in accordance with § 34 c GewO 

to distribute units of the Fund.) 

in Austria 

Deutsche Bank Österreich AG 

Head Office Vienna 

Stock im Eisen-Platz 3, A-1010 Vienna 

TAX AGENT IN AUSTRIA: 

Leitner + Leitner GmbH & Co KG 

Auditor and tax advisor 

Ottensheimer Straße 30, 32, 36, A-4040 Linz 

ADDITIONAL INFORMATION ON THE DISTRIBUTION OF UNITS IN OR 

FROM SWITZERLAND: 

Actual Representative und Paying Agent in Switzerland: 

BNP Paribas Securities Services, Paris, 

succursale de Zurich 

Selnaustrasse 16 

CH-8002 Zurich 

The offering prospectuses, management regulations as well 

as annual, semi-annual and interim reports of the fund are 

available free of charge at BNP Paribas Securities Services, 

Paris, succursale de Zurich, Zurich. 

25

Oppenheim Asset Management Services S.à r.l. 

4, rue Jean Monnet 2180 Luxembourg 

Luxembourg 

Oppenheim Fonds Trust GmbH 

Unter Sachsenhausen 4 50667 Cologne 

Phone +49 1802 145 145 * Fax +49 221 145-2900 

www.oppenheim-fonds.com 

*6 ct/call from German Telekom landline, cellphone charges max. 42 ct/min.

FCP OP MEDICAL BioHealth-Trends - medical.lu

Create successful ePaper yourself

Delete template?

Save as template?