FCP OP MEDICAL BioHe@lth-Trends - medical.lu

FCP OP MEDICAL
Sub-fund: FCP OP MEDICAL BioHe@lth-Trends
A mutual investment fund organized under the laws of the Grand-Duchy of Luxembourg
Audited Annual Report as of September 30, 2005
Fund Administration:
Oppenheim Pramerica Asset Management S.à r.l.

Contents
ANNUAL REPORT
As of September 30, 2005
FCP OP MEDICAL
Sub-fund: FCP OP MEDICAL BioHe@lth-Trends
2 __ Performance of the Capital Markets in the Period under Review
12 __ The key facts, At-a-glance, Statement of Operations,
Changes in Net Assets, Classification of Investments a.o.
14 __ Statement of Assets and Liabilities
18 Notes to the Audited Annual Report
19 Auditor’s Report
20 Tax Information for German Investors
21 Partners
Distribution of the fund’s shares has been notified in Switzerland
in accordance with article 45 of the Swiss law (AFG) to the Swiss
Banking Supervisory and announced in the Republic of Austria in
accordance with Section 30 InvFG of the Finanzmarktaufsicht,
Vienna.
This 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
Prospectus, 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.
Prospectuses are available free of charge from the Management
Company, the Custodian Bank, the Paying Agency, the
Representative and any of the Distributors.
A statement of the changes to the schedule of investments in
the period under review is available from the head office of
the fund administrator, the Swiss representative, the paying
agents and the distributors.
The name of the management company changed as of October 15,
2004 into Oppenheim Pramerica Asset Management S.à r.l..
This report is a translation of the original German Audited Annual
Report. In case of any translation queries between the German and
the English version, please refer to the original German document.
With effect from October 1, 2005, the assets of the FCP OP
MEDICAL fund will be subject to Part I of the Luxembourg Law
of December 20, 2002 on Undertakings for Collective Investments.
1

Development of the Capital Markets in the Period under Review
Development of the capital markets in the period under review
Health growth market and general financial conditions
Health – that is to say a better quality of life and longer life
expectancy – is generally regarded as one of the highest priorities
in developed industrial nations. Accordingly, the risk of illness
within the population is covered through various types of insurance
in such countries. Generally speaking, the scope of services
provided by health insurance companies has expanded
continuously since the 1950s. This is reflected in the increase in
premium rates among the health insurance companies. In
Germany, these rates have increased among statutory health
insurance funds from 6% of the basis for assessment of income in
1950 to 14.2% in 2005 (source: Federal Ministry for Health and
Social Security, FAZ Sunday, 26 June, 2005).
In the USA the biggest and fastest-growing health market, the
healthcare sector, has expanded from a 5% share of gross national
product (GNP) in 1960 to 15% in 2004 (a volume of some
USD 1,700 billion). Growth in the health sector was therefore
constantly above that of GNP, and ultimately became the biggest
sector in the US economy. By the end of the decade, the health
sector could even rise to around 18% of GNP (source: Centers for
Medicare and Medicaid Services).
Fig.1: Growth of health expenditure in USD billions in the
USA, Source: CMS
In addition to the structure of the health insurance systems,
demographic change, medical progress and innovative
developments in diagnostics and therapies have been the major
driving forces behind the growth of health expenditure.
In the booming economy of the late 1990s, the increasing cost of
healthcare and drugs did not appear to be a problem. However, in
the current difficult economic climate, and against a background of
global competition, the continuing rise in health expenditure is
becoming an increasing burden.
The introduction of a host of cost-cutting measures is designed to
ease the burden on both companies and national budgets brought
about by the rise in health expenditure. At the same time, the
measures represent an attempt to promote cost-conscious
behaviour on the part of patients. With the largest demographic
group among the industrialised nations, the so-called ‘baby
boomers’, due to reach retirement age by the end of the decade, the
time for such measures has become pressing. The population is not
just becoming older, however – it is also becoming increasingly
overweight. The American Heart Association estimates that 135
million people, or 46% of the US population, are overweight or
2
Expenditure in USD billions
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1960
1962
1964
1966
1968
1970
1972
1974
1976
Expenditure in USD billions in % BSP
in % BSP
20
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
18
16
14
12
10
8
6
4
2
0
obese. Being overweight increases the risk of chronic illnesses
such as heart disease, diabetes, high blood pressure, arthrosis and
strokes. At the same time, new molecular biology discoveries
coupled with an improved understanding of the nature of certain
illnesses and modern procedures in medical technology have
resulted in innovative therapeutic facilities. This combination of
increased demand on the one hand and innovations in the field of
medical technology on the other brings with it considerable
potential for growth – and therefore costs. Innovative products
with a clear competitive advantage should be among the winners in
such an environment.
Positioning for future investment performance in the health
sector
The healthcare sector represents an important part of the overall
investment market. According to the finance and IT sector, it is the
third-largest investment area (13.7% of the S&P 500 Index, A.G.
Edwards, 2004). In terms of the USA, the investment market for
the health sector is currently running at around USD 2,500 billion
(sources: Pacific Growth 2005, Yahoo Finance 2005, internal
calculations). In principle, the momentum of growth inherent in the
health sector also offers a good basis for above-average investment
performance in the future. However, in the light of the cost
problems, an increasingly selective strategy will be required in this
respect. The requirements for a successful stock picking strategy
will therefore increase in future.
Sub-sectors of the health sector
The health sector is not a single uniform area; rather it is
subdivided into different sub-sectors with different growth
dynamics. A broad distinction can be drawn between the following
three areas:
1) Products, i.e. drugs (pharmaceutical, biotech, speciality
pharmaceutical) and medical technology procedures or
applications,
2) Services, e.g. health insurance companies and the drugs trade,
3) Facilities, e.g. hospitals and diagnostics centres.
As investment areas, these different sectors within the health care
investment market have very different weightings and future
expectations.
Pharma
45%
Biotech
12%
Emerging Pharma
13%
Services
14%
Medtech
16%
Fig. 2: Weighting of the health care sub-sectors in the health
care investment market; Source: A.G. Edwards, Morgan
Stanley, internal calculations.
The Mid / Small Cap segment as a neglected investment area
In addition to the choice of sub-sectors, the size of a company,
measured against the market capitalisation, is crucial to the success
of an investment. In the USA, the healthcare sector includes 643

Development of the Capital Markets in the Period under Review
listed companies with a total market capitalisation of around USD
2,500 billion (source: Pacific Growth, 2005). Over half of this
investment volume is accounted for by the 41 Big Cap companies
with market capitalisation in excess of USD 10 billion (i.e. Blue
chips such as Pfizer, Johnson & Johnson and Amgen). Most of the
Big Cap companies belong to the pharmaceuticals sector. Yet it is
the far more extensive and, at the same time, disparate Mid and
Small Cap segment, with its 602 companies, which contains many
companies with innovative product developments and better than
average opportunities for growth.
The majority of investors are interested in blue-chip companies
with a high market capitalisation. It is for this reason that the shares
represented in the well-known indices represent, for the most part,
the focus of interest for both institutional investors – such as
insurance companies and investment funds – and many private
investors. Second-line stocks, that is to say companies with
average or low market capitalisation, remain for the most part out
of the picture. Accordingly, most of the investment funds in the
health sector have shown that they concentrate their investments in
Big Cap companies in the pharmaceutical, biotech and MedTech
sector. This, in turn, means that there is a risk of overlapping with
global investment funds.
One of the reasons for this is the often lack of, or at best inadequate
level of, research, the consequence of which could be an inefficient
market for these second-line stocks. Investment teams with special
expertise within the sector, such as the investment adviser Medical
Strategy, exploit this market inefficiency, tracking down as yet
largely unknown companies through carefully targeted analysis.
With such a stock picking strategy, it should be possible – in the
healthcare sector in particular – to achieve investment performance
above the index level over the long term.
Development trends in the various segments of the health
sector
Some of the most important segments in the health market, from an
investment point of view, are set out in more detail below:
Pharmaceutical industry
The global drugs market was worth USD 550 billion in 2004. Of
this figure, 45.1% was accounted for by North America, 26.2% by
the European Union, and 10.5% by Japan. Just 60% of these drugs
sales are generated by the 20 largest pharmaceuticals companies,
led by Pfizer, Sanofi and Glaxo (source: Pharmaceutical Executive,
May 2005, IMS Health Data).
Following the dynamic growth of the pharmaceuticals companies
in the second half of the 1990s – a situation made more favourable,
in particular, by a new product cycle, expansion of field services
and facilities for direct advertising to consumers – the current
decade is characterised rather by weak growth as a consequence of
a large number of patents set to expire for so-called blockbuster
products (annual sales of over USD 1 billion) and thus competition
among generic products. In 2004, there were 82 such blockbuster
products (source: MedAdNews, May 2005), though many of them
will lose their patent in coming years.
WR Hambrecht (2005), for example, anticipates patents set to
expire for drugs with annual sales of USD 88 billion (related to
2004) for the period 2006 to 2010. This is aggravated by the fact
that, due to a decline in research efficiency, there is an insufficient
number of products in the pipeline at the pharmaceutical
companies, and therefore there are too few new blockbusters
available to compensate for the decline in sales.
The current successful strategy of compensating for growth
problems through price increases and so-called ‘me-too products’,
i.e. through modifications and combinations of known medical
preparations, also appears to be reaching its limit. Insurance
companies are increasingly excluding such “apparent innovations”
from their recommended drugs lists, while at the same time calling
for far higher additional contributions for brand products than for
their generic counterparts. For example, the average additional
contribution per patient is USD 5 to 10, whilst for brand
preparations the figure is between 20 and 50 dollars.
It is easy to see from these statistics why drug companies are
relying increasingly on the licensing-in of products and M&A
measures on the one hand, and on cost reductions – e.g. in
Administration, Sales and Research – on the other. Companies
such as Pfizer, Merck and Wyeth have already begun to introduce
corresponding restructuring measures. The valuations of the
pharmaceutical companies remain considerable. Ten companies,
for example, have a market capitalisation of over USD 60 billion –
with Pfizer heading the list at around USD 180 billion. The pricesales
ratios are between three and five for most of these companies.
Biotechnology
Biotechnology is increasingly emerging as the crucial driving force
behind innovative drug development. In the past 25 years, for
example, almost 200 medical preparations have been introduced as
a result of research in the field of biotechnology, with around 800
products currently at the clinical development stage (source:
BIOS/IMS, 2005). In 2004, annual sales of the biotech companies
stood at USD 54.6 billion (source: E&Y Report 2005) and, with a
large number of pioneering innovations for the treatment of cancer,
diabetes and infectious diseases, double-figure growth rates are
expected to continue.
According to an analysis carried out by Morgan Stanley
(September 2005), oncological drugs, in particular, will contribute
to the success of the biotech companies. The expectation is that in
the next few years, new cancer drugs will account for more than
50% of the increase in drug expenditure. This would represent
oncological preparations as a proportion of US expenditure on
drugs increasing from 16% (2004) to 22% (2007).
The market capitalisation of all listed biotechnology companies in
the USA stands at around USD 350 billion. Of this figure, 70% is
accounted for by the ten largest companies (such as Amgen,
Genentech, Gilead Sciences etc.). The more than 300 remaining
listed biotechnology companies, responsible for the majority of the
potential products currently undergoing clinical testing, account
for just 30% of the total market capitalisation of this sector. This
represents an average valuation of around USD 300 million per
company. These Mid and Small Cap stocks are primarily
development companies, that is to say the products are at the
clinical development stage or are going through the licensing
process. The Small and Mid Cap companies therefore represent an
interesting opportunity-risk profile.
For the large biotech companies, on the other hand, licensing-in
and M&A measures are becoming increasingly important in the
battle to secure an adequate growth rate. The licensing-in
competition for new medical preparations with Big Pharma has
3

Development of the Capital Markets in the Period under Review
significantly strengthened the negotiating hand of the Small- and
Mid Cap biotech companies and may be interpreted as a potential
value-adding factor.
In terms of the valuations, the limits between Big Pharma and Big
Biotech become visibly blurred. Six biotech companies already
have market capitalisations in excess of USD 10 billion, with two
– Amgen and Genentech – are valued at around USD 90 billion.
The price-sales ratios of the large biotech companies are in the 6 to
10 range.
Speciality Pharma
Speciality Pharma companies concentrate for the most
part geographically on one region, e.g. North America or
Europe. They cover few, i.e. two or three, therapy areas, focusing
primarily on sales and marketing. Other key functions are
outsourced. In the 1990s, this type of company became
increasingly important in the drugs market as Big Pharma
concentrated increasingly on so-called blockbuster products for the
wider market at the expense of the potential in many special
indication areas. The younger speciality pharmaceutical companies
were able to take full advantage of these gaps in the market,
licensing-in and successfully marketing, in particular, innovative
medical preparations for fast-growing specialist areas such as
dermatology, ophthalmology, gastroenterology, gynaecology and
neurology.
The advantages of these niche segments are that there is reduced
competition, and therefore lower marketing costs and, in most
cases, less price sensitivity. This means that, with lower sales
volumes, specialist companies can achieve above-average profits.
In recent times, because of the increasing price competition,
generic product companies in particular have been expanding their
business model towards patented specialist drugs.
Drug delivery companies
The drug delivery companies represent a further sub-segment in
the drugs sector. By developing new types of administering
technologies, known as drug delivery, these companies are making
a substantial contribution to progress in the field of drugs.
According to a study carried out by Nomura, the number of drugs
that employ innovative release technologies – such as delayed
release of active agents, transdermal plaster systems and inhalable
active agent preparations – has increased substantially. They now
account for 13% of drug sales worldwide.
According to the Institute for Medicines Research, about 15% of
pharmaceutical research budgets is spent on projects using drug
delivery technologies. In biotechnology, in particular, these
procedures are used to extend the duration of the effect of the drug
(e.g. deposit injections) or as an alternative to injections (e.g.
administration as a nasal spray). Since drug delivery products, in
contrast with research into new drugs, are based for the most part
on known substances, a shorter development time and lower
development risk can make this area of the healthcare sector a
particularly attractive one.
Medical technology
In addition to the drugs, medical technology is the second-largest
product area in the healthcare sector. The segment is relatively
heterogeneous, comprising hospital products (e.g. syringes and
catheters), laboratory equipment (including for in vitro
diagnostics), complicated medical products (e.g. defibrillators) and
4
a broad range of diagnostics equipment such as nuclear magnetic
resonance tomographs.
Technical progress in areas, such as microelectronics and materials
technology is making a significant contribution to the increasing
importance of new products in the field of medical technology used
in the treatment of impaired bodily functions or illness conditions.
So, for example, in many sectors – including cardiology and
neurology – medical technology in the form of active implants
such as heart pacemakers and neurostimulators are competing with
more traditional drug-based forms of therapy. Medical technology
has enjoyed particular success recently in the combination of
medicines and drugs, such as drug-releasing stents for preventing
arteriosclerotic vascular obliterations. Medical technology in the
field of passive implants such as artificial hip and knee joints is
currently without competition. Moreover, new image-based
procedures provide improved diagnosis facilities and increased
application of minimally invasive surgical techniques.
The development period for many Medtech products is far shorter
than it is for drugs and, thanks to ongoing technological
improvements, there are no problems associated with generic
products. The rapidly growing worldwide Medtech market is
estimated at more than USD 230 billion (source: Oppenheim
Research, 2004).
Healthcare information technologies (e-health)
Health costs are growing more quickly than gross national
products, while at the same time the efficiency of the health
economy is trailing far behind that of the rest of the economy
(Information Week Study 2004). One response to this dilemma
therefore lies in the call for increased use of modern information
technologies in the health sector. The American government is at
the forefront of this initiative, investing some USD 125 million
over the next few years to promote the application of information
technologies in the healthcare sector. Similar initiatives are also
being pursued in Europe.
The group of e-health companies is very heterogeneous, as
information technology can be used in many and varied ways to
resolve a host of different tasks. The companies have set
themselves the overall goal of improving administration,
coordination, documentation and therapy management – including
monitoring success in hospitals, general practices and other care
facilities – through the use of modern information and Internet
technology.
Apart from efficiency, the lack of up-to-date information
technology also has an adverse impact on the quality of medical
care. The Institute of Medicine, for example, has established that
mistakes in medical treatment could account for as many as 98,000
unnecessary deaths in the USA. This makes avoidable medical
mistakes the eighth most frequent cause of death in the USA. The
consequential financial costs of such mistakes are estimated at
USD 8 billion a year.
As a result, health insurance companies are becoming increasingly
interested in the introduction of information technology. In
particular, electronic patient files in combination with electronic
prescription software promises to make a major contribution to
improved quality and increased efficiency, since by taking into
account all illness-related data both erroneous drug prescriptions
and duplicate examinations can be avoided.

Development of the Capital Markets in the Period under Review
Healthcare institutions and services
Companies in this segment are fundamental to the provision of
medical services and application of products in the drug and
medical technology fields. They include hospital enterprises,
special clinics for outpatient surgery, nursing care and
rehabilitation facilities, health insurance companies, practice
management companies, purchasing management companies for
drugs (PBMs), disease management companies and wholesale
companies for drugs and medical products, as well as chemist's
shop chains.
The changing requirements in health also offer promising future
prospects for specialist companies, for example diagnostics centres
through the latest image-based procedures, special clinics through
the application of minimally-invasive operation techniques, and
commercial enterprises through focusing on the field of fastgrowing
biotechnology drugs.
Investment concept of FCP OP MEDICAL BioHe@lth-Trends
With its independent stock picking strategy, the FCP OP
MEDICAL BioHe@lth-Trends investment fund is consistently
orientated towards the fast-growing future markets in the
healthcare industry. In this respect, the fund concentrates
particularly on Mid and Small Cap companies with innovative
products and services.
Investment areas / main investment objectives
The main investment objective of FCP OP MEDICAL BioHe@lth-
Trends is young companies in the fields of biotechnology,
Speciality Pharma, drug delivery and medical technology which
develop and market products for the diagnosis and treatment of
illnesses. Other smaller investment segments for the fund include
the e-health and healthcare services sectors.
Young companies that are in the early stage of their development
and which offer above-average opportunities for growth over the
longer term are the common denominator in all of these segments.
The strategic investment concept
FCP OP MEDICAL BioHe@lth-Trends bases the choice of its
portfolio companies primarily on the following principles:
• Degree of innovation: Does the company have the potential to
set new standards in its field and therefore become a market
leader?
• Stage of development: Is the product sufficiently close to
market to enable the opportunity-risk ratio to be specifically
evaluated?
• Valuation: Does the current share price, in relation to the fair
valuation expected in two to three years, offer better than
average growth potential?
It is evident from this investment strategy that the emphasis of the
fund’s investment activity is on small and medium-sized (Small
and Mid Cap) companies.
The fund adopts a pure stock picking strategy which is not
benchmark-oriented. The investment style is classified as GARP
(growth at a reasonable price).
The Medical Strategy team specialising in the health field is
responsible for fund consultancy. Potential investments are
selected on the basis of a constantly updated database comprising
more than around 700 healthcare companies (with quantitative and
qualitative parameters). Such a systematic approach enables
companies which are broadly undiscovered, and therefore
undervalued, to be identified at an early stage.
Based on its Mid and Small Cap-oriented investment strategy, FCP
OP MEDICAL BioHe@lth-Trends differs from most other
healthcare funds, which are often index-oriented or many of which
invest in the Big Cap companies in the pharmaceuticals or biotech
sector. The volatility of the fund is therefore more pronounced than
is the case with standard investments.
In order that the fund can maintain its strategy aimed at Mid and
Small Cap companies, provision is made for a restriction of the
fund volume over a certain size.
The fund’s chosen approach is aimed at achieving an increase in
value over the longer term that is above the market average.
Risk control
In order to limit the impact of unexpected setbacks which have to
be factored into young growth companies, for example product
delays in the development of drugs, a policy of special risk control
has been established within the fund. The following measures are
applied in this respect:
• Concentration on companies with products at the advanced
stage of development or in the early marketing phase
• A sufficiently broad-based distribution (currently about 90-100
stocks)
• Weighting of individual stocks according to their opportunityrisk
profile
• Use of derivative financial instruments before critical events
such as study results and product licensing
• Flexible cash management according to the valuation level
Fund strategy in the reporting period
General conditions and sector-specific events
The biotech sector experienced both light and gloom over the past
financial year. On the plus side, the sector was able to benefit from
important product licences, for example for the cancer drugs
Tarceva (lung cancer), Clolar (leukaemia) and Avastin (bowel
cancer) and the new diabetes drugs Byetta and Symlin. At
USD 150 billion, diabetes is one of the most costly illnesses in the
American health system (WR Hambrecht, 2005). Other bright
spots on the licensing front included Macugen, a drug used to treat
serious eye diseases (age-related macular degeneration) and
Lunesta, the first drug on the market for long-term treatment of
chronic sleep disorders.
These bright spots in the biotech sector were significantly
overshadowed, however, by the withdrawal of the new multiple
sclerosis drug Tysabri. A serious, albeit rare, side effect forced the
hand of both Biogen Idec and Elan and the drug was withdrawn.
However, it was the Small and Mid Cap sector, in particular, which
felt the impact most, whilst the higher-capitalised companies in the
biotech sector were able to compensate for the setback with the
announcement of quarterly figures that far exceeded expectations.
In addition to a number of patents set to expire among the
blockbuster products, the Pharma sector also had to cope with the
cessation of marketing of Cox-II-Hemmer (pain therapy) Vioxx
(Merck&Co.) and Bextra (Pfizer). The sector was hit particularly
hard by the compensation cases involving Vioxx, the total figure
5

Development of the Capital Markets in the Period under Review
for which analysts are estimating at anything up to USD 50 billion
(source: Wallstreet Journal Online, 24.10.2005). The companies
attempted to compensate for poor sales figures by not only
introducing cost-cutting programmes, but also by attempting to
bolster product pipelines through licensing deals and M&A
measures, including Pfizer's acquisition of the biotech company
Vicuron. Finally, the aforementioned product withdrawals also led
to stricter risk assessment by the licensing authority the FDA.
Apart from additional warning signs among drugs already
marketed, licence applications increasingly saw additional requests
for data or indication restrictions.
In the Speciality Pharma sector, companies with a broad range of
generic products in the pipeline were best positioned to benefit
from the large number of patent expirations. Winners included
companies who were able to launch generic products with 6-month
exclusivity, such as Barr Laboratories, Endo Pharmaceuticals and
Ivax. Older generic products, on the other hand, have seen price
competition intensify as Indian manufacturers of generic products
increasingly make their presence felt on the markets. This, in turn,
has intensified consolidation pressure within the sector, notably in
the takeover of Hexal by Sandoz and Teva’s acquisition of Ivax.
The success of the Medtech sector continues to be based on the
timely introduction and expansion into the market of products to
treat arteriosclerosis (drug eluting stents), cardiac dysrhythmias
and heart failure (implantable defibrillators) and arthrosis and joint
wear and tear (artificial hip and knee joints). One segment that is
becoming increasingly important is that of equipment for
neurostimulation. These devices are currently used in indications
such as Parkinson's disease, epilepsy and pain. Now, for the first
time, the FDA has approved a device for use in treating severe
depression – the VNS System from Cyberonics. The sector has also
been boosted by takeovers, including Johnson&Johnson paying
USD 26 billion (6 times sales) to acquire Guidant, and Siemens
taking over CTI Molecular Imaging, one of the foremost
manufacturers of Positron Emission Tomography (PET) equipment
(for the early diagnosis of specific illnesses). The Medtech sector
suffered individual setbacks as a consequence of product
withdrawals (e.g. at Boston Scientific) and new rules governing
acquisitions in hospitals (gain sharing) designed to achieve more
favourable discounts from manufacturers.
E-health sector companies are profiting from the constant pressure
on costs in health care, the increasing success of image-based
diagnostics procedures such as computer or nuclear magnetic
resonance tomography, and safety-related discussions in respect of
medication errors. Particularly impressive results have been
achieved by manufacturers of electronic health records and
complete hospital information systems, picture archiving and
communications systems used in the administration of digital
image findings, and suppliers of special software systems for
health insurance companies. At the same time, the growth
expectations for this sector resulted in takeovers – including
Cedara Software (image processing) and IDX Systems (hospital
information systems). The healthcare service sector continued to
perform well. Drug procurement companies and health insurance
companies profited from falling costs as a consequence of the
increased use of generic products and efficiency gains through the
use of the latest information technology. In terms of purchasing
power, the hand of the health insurance companies is being further
strengthened as the trend towards consolidation continues, for
example with the merger of United Health and Pacific Care.
6
Investment performance
Over the financial year from 1st October 2004 to 30th September
2005, FCP OP MEDICAL BioHe@lth-Trends stock rose from
EUR 94.66 per share to EUR 118.11 (+24.8%*). This is 13.2%
better than the biotech index NBI (in €), 0.2% better than the BTK
(biotech index for higher-capitalised profitable biotech
companies), and 18.3% better than the Amex Pharma index DRG
(in €) (see Fig. 3).
130
120
110
100
90
80
01.10.2004
01.11.2004
01.12.2004
01.01.2005
01.02.2005
01.03.2005
01.04.2005
01.05.2005
01.06.2005
01.07.2005
01.08.2005
01.09.2005
MedicalBioHe@lth-Trends NBI DRG BTK
Fig. 3: Price performance of FCP OP MEDICAL
BioHe@lth-Trends in the financial year 04/05 as a %
compared with the DRG, BTK and NBI index (in €);
start of the financial year = 100
With Small and Mid Cap stocks, in particular, a positive company
performance (licences, results of clinical trials, partnerships etc.)
can have a far higher than average impact on that company’s share
price. This is also illustrated by the following six companies with
the sharpest price increases in the fund during the period under
review:
BSD Medical Positive clinical results +193%
Hologic Growth and expansion of
profitability +177%
Transkaryotic Therapies Takeover +147%
Trizetto Growth and profitability +145%
Lifecore Biomedical Growth and expansion of
profitability +143%
Cubist Growth and aspired-to
indication expansion +107%
Tab. 1: Companies with the biggest price increases during the
period under review
The fund continued to profit from the ongoing concentration
process in the still relatively heavily fragmented health care sector
(see Tab.). The markups on the stock market listing paid at the time
of the takeovers prior to announcement of the deals were as much
as 85%, illustrating that the Small and Mid Cap sector has an
attractive valuation level.

Development of the Capital Markets in the Period under Review
Price
Company Acquisition by markup in %
Transkaryotic Therapies Shire +22%*
Orphan Medical Jazz Pharma +26%*
Corixa GlaxoSmithKline +48%*
Bone Care International Genzyme +35%
Vicuron Pfizer +85%*
InKine Pharma Salix Pharma +64%
Guilford MGI Pharma +56%*
IVAX Teva Pharma +14%*
Tab. 2: Takeovers by portfolio companies and price markups
(*included in the fund portfolio)
The major causes of the more significant price falls among
individual stocks in the reporting period were:
• product sales which, by the end of the period under review, fell
short of expectations, e.g. Indevus (–28%) and Enzon (–17%).
• delays in the licensing process, such as with Epix (–25%) or
side effects in clinical studies which can limit market potential,
such as with NPS Pharma (–53%), and
• failures of licensing studies, for example at Corgentech (–53%).
Nevertheless, such setbacks can also represent new or repeat
purchase opportunities if the problems that have occurred are
considered as solvable, and therefore only temporary.
Overall, sales in the fund resulted in a realised profit of
EUR 10.3 million by 30th September 2005.
A detailed presentation of selected companies with interesting
development progress can be found at the end of this report.
Changes in segment weighting
Weighting of the various investment segments is a direct
consequence of the stock picking process – i.e. according to the
sector in which the companies with the most promising
opportunity-risk profile can be identified.
6
4
2
0
-2
-4
-6
-8
5.1
-3.6
Bio-Tech Emerging
Pharma
-5.7
Med-Tech
2.3
Drug
Delivery
E-Health Genomics Healthcare
Services
Fig. 4: Change in the distribution of the various segments over
the course of the financial year
In the Biotechnology sector, which received a 46% weighting at
the beginning of the reporting period, one notable correction
following the cessation of marketing of the biotechnology drug
Tysabri affected the Mid and Small Cap stocks more than their
higher-capitalised counterparts. Despite the weakness of the sector,
several individual investments recorded above-average results, for
0.8
1.1
-0,3
0.4
Cash
example transkaryotic therapies (orphan diseases) and Vertex
(infectious diseases) which saw prices increase by more than
100%. As a result of the weakness within the sector, the weightings
of individual positions were increased and new investments
transacted. The result was a gradual increase in the biotech
segment share to 50.2%.
The Medtech sector weighting fell from 17.8% to 12.1%. In this
particular segment, various companies with innovative product
developments, such as Intuitive Surgical (operation robots), Aspect
Medical Systems (narcosis management) Lifecore Biomedical
(teeth implants), BSD Medical (hyperthermia) and Hologic (digital
mammography) achieved above-average market gains, so that,
from the valuation aspect, profits were realised. Over the course of
the reporting period, interesting new companies in the Mid and
Small Cap segment with corresponding growth potential were
included in the portfolio.
Several investments also proved successful in the Emerging
Pharma sector, with notable profits realised by companies
operating in the generic products sector. They included companies
such as Alpharma, Stada, Ivax, Barr Laboratories and Endo
Pharmaceuticals. Nevertheless, the weighting was only down from
24.6% to 21.0% following new investments. The attractiveness of
these companies lies in products in the early launch phase in fastgrowing
indication areas, for example Critical Therapeutics
(respiratory diseases), Santarus (stomach and bowel diseases) and
Cubist (infectious diseases).
Investments in the e-health sector increased over the course of the
investment period, from 3.1% to 3.9%, whilst the weighting in the
Service sector was down from 2.3% to 2.0%. Here, too, the
companies making profits were those with above-average price
performance. They included Allscripts (electronic patient files),
Trizetto (software for health insurance companies), Vital Images
(3-D image processing), Nexus (hospital information systems) and
Curanum (nursing care centres). These were offset by higher
weightings of remaining positions and new investments,
particularly among companies with hospital information systems
and transaction software.
At the start of the financial year, the fund’s cash reserve stood at
1.5%. During the financial year the reserve fluctuated between 3
and 6%, settling at 2.9% at the end of the reporting period.
Healthcare Services
Genomics 2%
1%
E-Health
4%
Drug Delivery
6%
Med-Tech
12%
Emerging Pharma
21%
Cash
3%
Bio-Tech
51%
Fig. 5: Distribution of fund investments by investment area
PIPE investments and IPOs
During the reporting period, the fund participated in three Private
Placements in Public Equities (PIPEs). This is a special form of
7

Development of the Capital Markets in the Period under Review
financing smaller listed companies within which a group of
institutional investors acquires sizeable blocks of shares at a
discount on the current market price. In addition, they are
frequently associated with subscription rights for shares (warrants)
in the corresponding companies. The following table is an
overview of the conditions of these PIPEs.
Discount on the Plus
Company stock exchange price Stock rights
Adherex –20% 30%
Cenes –25% –
Vernalis –10% –
Tab. 3: PIPE investments during the reporting period
The fund also participated in the initial public offerings (IPOs) of
the biotech companies Paion and Intercell, which were
subsequently sold at a profit.
Trading situations
In the past year, a small part of the fund volume was reinvested in
special trading situations, notably with higher-capitalised
companies. Special situations were used in which expected stockpromoting
events had not yet been adequately included in the price.
They included the broad range of innovative products in the
pipeline at Boston Scientific, the launch of a completely new type
of sleep-inducing drug at Takeda, the stable growth of Synagis and
progress in the pipeline at Medimmune, the favourable growth
prospects for Rebif at Serono following the cessation of marketing
of Tysabri, and, at Schering-Plough, the anticipated turnaround
associated with the launch of the cholesterol-reducing drug Vytorin.
Pre-trading investments
In the pre-trading sector, no new investments were transacted. The
portfolio companies BioM, Wilrx, Micromet and Noxxon Pharma
carried out successful financings during the reporting period. The
fund participated in the financing of Micromet and Noxxon Pharma.
Due to the difficult environment for pre-IPO investments (only
limited financing and exit opportunities), particularly for the
German sector, identifiable risks were value-adjusted at four
companies. The stock of the biotech company Axxima was written
down due to the insolvency.
There is now a total of six pre-trading investments in the fund. The
share of the fund volume is 2.0%.
Characterisation of investments
– By stage of development
The fund portfolio is consistently geared towards growth
companies the majority of whose products are either in the final
phase of development or are already being launched on the market.
Accordingly, 76% of the fund’s volume is invested in companies
with new products on the market. Of these companies, a third are
already profitable, while the others are on course towards
profitability. A further 12% is invested in companies whose
products are either in the final phase of development or are at the
licensing stage. Just 9% of the investment volume relates to
companies with earlier product projects (see Fig. 6).
8
Fig. 6: Distribution of fund investments (percentage of fund
volume) according to the development stage of the
products
– By market capitalisation
In line with its chosen strategy, the fund invests primarily in small
and medium-sized companies in the healthcare sector.
Consequently, 49% of the fund volume is accounted for by stocks
with a market capitalisation of under USD 500 million, and 29%
by stocks with a market capitalisation of between USD 500 million
and USD 1.5 billion (see Fig. 6). Finally, higher-capitalised
companies with a valuation of USD 1.5 billion and above
accounted for just 19% of the fund volume.
80
60
40
20
0
Products in
Phase III and
the licensing
process
12%
49%
73
Early clinical
phases
6%
29%
18
Cash
3%
Products on the market
51%
19%
Number of companies As a % of fund’s volume
80%
70%
60%
50%
40%
30%
20%
10%
Fig. 7: Distribution of fund investments (percentage of fund
volume) according to the market capitalisation and
number of companies
– By weighting
The ten major positions in the fund (see table) together make up
28.9% of the fund volume. All of these companies already have
products on the market.
11
Products on the
market and
profitable
25%
3%
US$ 500m US$ 1500m US$ 1.5 bn cash
0%

Development of the Capital Markets in the Period under Review
Company Sector Weighting
Icos Biotech 3.5%
Ligand Biotech 3.2%
Biomarin Biotech 3.0%
Medimmune Biotech 3.0%
UCB Biotech 3.0%
OSI Pharma Biotech 2.9%
Berna Biotech Biotech 2.8%
Schering-Plough Pharmaceutical industry 2.7%
Cubist Pharma Emerging Pharma 2.6%
Alkermes Drug Delivery 2.3%
Tab. 4: The top 10 positions in the fund portfolio as of
30.09.2005
– By region
In terms of market importance and the number of listed innovative
companies in the healthcare sector, the majority of investments
(77%) are in North America. Europe accounted for 20%, and
Japan/others the remaining 3% (see Fig. 8).
Europe
20%
Japan/Other
3%
North America
77%
Fig. 8: Percentage distribution of fund investments by region
Investment approach and performance of the fund since its
launch on 30th October 2000
The fund was launched on 30th October 2000. The investment
strategy of the fund consists in achieving above-average
performance through targeted stock picking of Mid and Small Cap
companies in selected growth segments of the healthcare sector.
This approach has remained unchanged to date. It has proven to be
advantageous when compared, for example, with a purely
biotechnology fund, particularly the opportunity for flexible
investment in companies in the various healthcare sectors.
Since its launch, i.e. over a period of almost five years, FCP OP
MEDICAL BioHe@lth-Trends has outperformed the broad-based
biotechnology index NBI (in €) by some 54%. Even when
compared with the BTK, an index which represents the larger
biotech companies, the fund performed better by 35.2% (in €). FCP
OP MEDICAL BioHe@lth-Trends outperformed the DRG index –
which reflects, in particular, the performance of the big US drug
companies – by 45.70% (in €). The fund therefore achieved its
objective of above-average performance in the healthcare sector
(see Fig. 9).
FCP OP MEDICAL BioHe@lth-Trends was valued by various
rating agencies. Based on the fund’s good performance, Standard
& Poor’s awarded it the maximum five stars. In May 2005,
Standard & Poor’s awarded it an “AA” rating. Further plaudits
came from Morning Star (5 stars), Finanzen (FondsNote 1) and
Sauren Fonds Research (3 gold medals). (All awards as at:
30 September 2005)
120
100
80
60
40
20
30.10.2000
30.01.2001
30.04.2001
30.07.2001
30.10.2001
30.01.2002
30.04.2002
30.07.2002
30.10.2002
30.01.2003
30.04.2003
30.07.2003
30.10.2003
30.01.2004
30.04.2004
30.07.2004
30.10.2004
30.01.2005
30.04.2005
30.07.2005
30.10.2005
MedicalBioHe@lth-Trends NBI DRG BTK
Fig. 9: Performance of FCP OP MEDICAL BioHe@lth-Trends
as a% since its launch compared with various healthcare
indices (in €), 30.10.2000 = 100
Performance of sold fund shares and the fund volume
The fund recorded inflows of funds during the period under review,
with the number of shares increasing by 71,182 to a total of
1,256,920.
The fund volume increased by some 32.4% from
EUR 112.2 million to EUR 148.5 million.
Outlook
New licences issued in 2004 and 2005, as well as pharmaceutical
industry product development agreements with leading antibody
companies such as Medarex and Cambridge Antibody, represented
an impressive confirmation of the innovative power of
biotechnology. As biotech companies have full pipelines (over 800
drugs at the clinical development phase), it may be assumed that
biotechnology will continue to be the core area for further growth
of the drug sector. There are interesting new product developments,
for example, in the diabetes sector with the first inhalable insulin
(Exubera), in ophthalmology with a new drug to prevent loss of
sight as a consequence of age-related macular degeneration
(Lucentis), and in oncology with new drugs for treating renal cell
carcinoma (Sorafenib), ovarian carcinoma (Telcyta) and leukaemia
(Revlimid). In the cardiovascular segment, new drugs for the
treatment of Angina pectoris (Ranexa) and pulmonary
hypertension (Thelin) are close to being launched on the market.
Drugs for treatment of diseases of the central nervous system are at
an advanced stage of development – including Cerovive (stroke),
Vivitrex (alcohol dependency), and Indiplon (sleep disorders). On
top of the new products coming through, the absence of any threat
from generic products is contributing to growth in the biotech
sector. This is because in both America and Europe there is not yet
a definitive licensing procedure in place for bio-generic products.
SG Cowen (2005) therefore expects to see annual growth of +19%,
compared with just +4% for Big Pharma, in the period to 2009.
Small and medium-sized drug developers in the emerging biotech
and drug delivery segments are in a particularly advantageous
position in respect of new product developments.
For most companies in the pharmaceutical sector, problems would
seem to be continuing to outstrip opportunities. For example,
analysts estimate the volume of patents set to expire in 2006 at a
9

Development of the Capital Markets in the Period under Review
record USD 26.8 billion. The percentage of sales under threat from
patent expirations by 2008 will be 40% at Pfizer, Wyeth 33%,
Merck 31%, Sanofi 24%, Eli Lilly and GlaxoSmithKline 22%
each, and Bristol Meyers 21% (source: WR Hambrecht).
Moreover, manufacturers of generic products are increasingly
challenging Big Pharma patents, for example Zyprexa / Lilly (USD
5 billion sales), Lipitor / Pfizer (USD 11 billion sales) and Plavix /
Sanofi (USD 5 billion sales). Reduced research efficiency and
increasing price pressure brought about by the many so-called
'me-too products' in the Pharma sector are also having a negative
impact. At present this is affecting the valuations of drug
companies. For example, the price-profit ratio for US drug
companies for the year 2005 is 15 (Morgan Stanley, 2005), whilst
at the same time the dividend yield is 2.4% (Lehmann, 2005).
The high cash reserves and one-off opportunity for the repatriation
of more than USD 100 billion under the US Job Creation Act may
be regarded as positive. This means that there are increasing
resources available to Big Pharma for acquisitions (this is likely to
be of more interest to small and medium-sized companies).
Moreover, the Medicare Modernization Act will come into force in
January 2006 in the USA under which, for the first time, provision
will be made under health insurance for those on pensions for
reimbursement of the cost of drugs. However, it is still unclear
whether, in terms of profit, the anticipated increases in the volume
of drugs will be neutralised by the required price reductions. The
fund will keep a keen eye on the sector to see if any interesting
situations develop.
The Emerging Pharma or Speciality Pharma sector – which
specialises in specialist treatments – will continue to profit in
future both from less price competition and lower marketing costs
in the niche segments. With regard to the record number of patent
expirations in 2006, Speciality Pharma companies, in particular,
appear to be favourably positioned from the generic products
aspect. A number of new developments are also expected in the
ZNS segment, including drugs for the treatment of pain
(Oxymorphone), migraine (Trexima), attention disorders
(Attenace) and narcolepsy (Nuvigil). Moreover, there are
promising product developments in the fields of ophthalmology,
gastroenterology, respiratory diseases and gynaecology. As a
result, above-average growth rates may also be expected in this
investment segment.
Demographic change also favours innovative medical technology.
Important progress in the development of products in areas such as
orthopaedics (e.g. artificial discs, a more flexible joint
replacement), cardiology (e.g. cardiac management),
ophthalmopathy (e.g. implantable contact lenses) or neurology (e.g.
titanium spirals for stroke prophylaxis) offer above-average
prospects for growth. Progress is also anticipated in the treatment of
diabetes with the development of an artificial pancreas, in
cardiology with minimally-invasive repair of heart valves and
minimally-invasive treatment of atrial fibrillations, and of diseases
of the central nervous system through new facilities for the
application of neurostimulation. At the same time, manufacturers in
Asia and Latin America are increasingly looking for cost-effective
production opportunities to enable greater flexibility in terms of
pricing in the wake of procurement cost problems in hospitals. The
sector therefore continues to offer very many interesting areas for
potential investment in the Mid and Small Cap segment.
10
Since electronic networking was introduced in the NHS (National
Health Service) in Britain – with an investment volume of
USD 11 billion, the biggest civilian IT project – there have been
corresponding initiatives for the introduction of electronic patient
files in France, Germany and the USA. Furthermore, within the
scope of the Medicare Modernization Act, efforts are being made
to install an electronic prescription system by the end of 2008. This
represents an increasing recognition of the opportunities offered by
modern e-health companies for increasing efficiency in medical
care. Moreover, it is expected that hospitals will step up
investments in their information technology facilities in a bid to
improve productivity and results. Health insurance companies are
increasingly basing the refund of medical expenses on the quality
of the service provided by hospitals.
Healthcare service companies that offer new concepts in the areas
of disease management, specialist care facilities, rehabilitation and
home care will also benefit from the improved infrastructure in the
health systems.
When selecting its positions, the fund will take into account the
changing environment. With the targeted bias towards small and
medium-sized companies in the healthcare sector offering
innovative product developments, FCP OP MEDICAL
BioHe@lth-Trends should continue to be able to offer the longer
term-oriented investor the potential for gains above the market
average.
Presentation of selected companies (as of 30 September 2005)
Emerging Biotech
Biomarin (BMRN) – Market capitalisation: USD 643 million at a
price of USD 8.68
The American biotech company Biomarin develops and markets
innovative genetically engineered drugs for the treatment of
genetically-related enzyme deficiency illnesses (primarily those
affecting children). The two main products – Aldurazyme and
Naglazyme – are licensed for the treatment of various forms of
mucopolysaccharidosis. According to information from the
company itself, estimated sales for Aldurazyme, which is marketed
together with Genzyme, are around USD 65-70 million for 2005.
Naglazyme, which was licensed in the USA in 2005 and for which
there are no alternative forms of treatment, is marketed
independently by Biomarin. Phase III includes Phenoptin for the
medicinal treatment of phenylketonuria (currently only treatable
through strict diet). The European and Japanese rights for the
substance were licensed to Serono, which is bearing the major
costs of the development. Analysts at SG Cowen (report of 2
August 2005) forecast that Biomarin would break even by 2008, on
the basis of estimated sales of around USD 190 million.
Emerging Pharma
Cubist Pharmaceuticals (CBST) – Market capitalisation:
USD 1,155 million at a price of USD 20.15
Cubist Pharmaceuticals is a company that has specialised in the
development of anti-infective agents. The company’s main product,
Cubicin, is an injectable antibiotic which, according to existing data,
is suitable mainly for the treatment of gram-positive infections. It is
also notable for its efficacy in killing multi-resistant agents.
It is licensed in the USA for the treatment of serious skin
infections, and has recorded cumulative sales of USD 100 million

Development of the Capital Markets in the Period under Review
since it was launched in the market (source: Morgan Stanley).
Phase III studies of Cubicin in relation to the indications
endocarditis and bacteremia have been successfully concluded. On
the basis of this data, an extension to the licence was applied for in
September.
Peak sales potential for Cubicin is estimated at almost USD 500
million (source: Thomas Weisel); the company could become
profitable in 2006.
In HepeX-B (licensed-in by XTL Biopharmaceuticals), the
company also has a monoclonal antibody for the prevention of
hepatitis B infections during liver transplants which is at the
second phase of clinical development.
E-health
Eclipsys (ECLP) – Market capitalisation: USD 869 million at a
price of USD 18.19
The e-health company Eclipsys is one of the leading US
manufacturers of modern communications technology for
hospitals. With its software products – which are marketed under
the name of Sunrise – Eclipsys contributes to the automation of
administrative, financial and technical processes in hospitals. The
aim of these technologies, like the electronic health file, is more
efficient organisation of patient treatment. Weaknesses such as
medication errors and duplicate examinations in day-to-day
hospital business can be avoided with these systems. Eclipsys
achieved a turnaround following high levels of investment in
upgrading the product programme and converting sales to a
subscription system. Management expects sales of up to USD 380
million in 2005 and a return to profitability, with a profit of up to
USD 0.10 per share.
Medtech
Conceptus (CPTS) – Market capitalisation: USD 299 million at
a price of USD 11.80
The medical technology company Conceptus has developed a new
type of product for permanent contraception. A micro-spiral
(trading name: Essure) is positioned in the fallopian tube during a
30-minute operation under local anaesthetic. After three months an
impermeable tissue barrier is formed. With a success rate of 99.8%,
Essure is one of the most effective methods of contraception. In
principle, Essure can be used by any gynaecologist who has
received instruction in the positioning technique. For many
women, the treatment represents a gentle, minimally-invasive
alternative to tubal sterilisation, e.g. through transection of the
fallopian tube or thermocoagulation.
Drug Delivery
Depomed (Depo) – Market capitalisation: USD 258 million at a
price of USD 6.70
Depomed is one of the group of drug delivery companies
developing new, patented active agent formulations for known
drug substances. The company specialises in oral forms of retard to
reduce application frequency. The gastric retention system
developed by Depomed is particularly suitable for substances that
are reabsorbed in the upper digestive tract. After they have been
swallowed, the polymer matrix tablets swell up by absorbing liquid
and therefore remain longer in the stomach. The result is a regular
release of the active agent over a longer period of time. Depomed
has already had two products licensed – the antibiotic Proquin XR
and the diabetes drug Glumetza. Both products only have to be
applied once a day, and are aimed at markets with sales of several
hundred million US dollars. Depomed has licensed products to
Speciality Pharma companies, and receives up to 25% royalties on
sales. Further products are at the clinical development stage.
Pre-IPO
Wilex AG – Post Money Valuation: EUR 55 million
Wilex AG is a German biotechnology company specialising in the
development of new cancer treatments, including treatment of
kidney and breast cancer. The treatments are used in connection
with biological target structures that are linked directly to the onset
and development of cancer. Wilex has a balanced development
portfolio with three potential products under clinical development,
as well as other programmes at earlier stages of development. The
main product, Rencarex is already at the Phase III licensing stage
for the treatment of kidney cancer. Two other active agents,
so-called urokinase inhibitors for the treatment of breast cancer and
other solid tumours, are at the first and second stages of
development. The product is expected to be marketed in the short
and medium term in the form of partnerships with pharmaceutical
companies. Against a background of recent financing worth some
€30 million and a planned partnership deal for the main product
Rencarex, Wilex expects the company to be floated on the stock
exchange over the next 12-18 months.
*) calculated in accordance with Bundesverband Investment und
Asset Management e.V. (BVI)
11

FCP OP MEDICAL BioHe@lth-Trends Audited Annual Report as of September 30, 2005
The key facts
Investment policy Shares in biotechnology, medical
technology, health industry and pharamacy
German Security-Code 941.135
ISIN-Code LU0119891520
Swiss Security-Code 1,148,391
Fund currency EUR
Date of inception 30.10.2000
Financial year 01.10. – 30.09.
Reporting period 01.10.2004 – 30.09.2005
First offering price (per unit)
(incl. offering premium)
126.00 EUR
First bid price per unit 120.00 EUR
Subscription fee 5.00%
Management fee p.a. 1.70%
plus performance bonus
Custodian fee p.a. 0.15%
Dividends none, as retained
Development of the net asset value (in EUR)
Highest net asset value per unit
in the reporting period
Lowest net asset value per unit
(13.09.2005) 119.29
in the reporting period (26.10.2004) 89.24
Performance in the period under review* 24.77 %
Performance since commencement*
Performance over the last 3 years
–1.58 %
100%
*) calculated according to Bundesverband and Asset Management e.V (BVI)
Historical performance is no indication of current or future
performance.
Performance data does not include the commissions and charges
made for the issue or redemption of units
12
80%
60%
40%
20%
0%
-20%
54.83%
0.85% 24.77%
01.10.02 – 30.09.03 01.10.03 – 30.09.04 01.10.04 – 30.09.05
Performance*) of the financial years in % (left scale)
Accumulated performance on month-end basis, indicated on
100 (right scale)
200
180
160
140
120
100
800
At-a-glance
30.09.2005
Total Fund assets (EUR millions) 148.46
Units in circulations (unit) 1,256,920
Bid price (EUR per unit) 118.11
Offering price (EUR per unit) 124.02
Evolution over the last 3 years
Values at financial year-end (in EUR)
Financial year NAV per Unit Total net assets
01.10.2001 – 30.09.2002 60.62 61,710,615.19
01.10.2002 – 30.09.2003 93.86 89,304,231.08
01.10.2003 – 30.09.2004 94.66 112,246,056.38
01.10.2004 – 30.09.2005 118.11 148,458,627.32
Evolution of the funds’ assets (in EUR)
for the period 01.10.2004 to 30.09.2005
Net assets at the beginning
of the financial year 112,246,056.38
Subscriptions 43,636,160.53
Redemptions –37,334,958.27
Capital inflow/outflow (net) 6,301,202.26
Ordinary net income –2,344,876.10
Realized gains/losses
on investments 10,254,460.35
on foreign currency exchange transactions –9,305.88
Change in net unrealized appreciation/depreciation
on investments 21,974,049.57
on foreign currency transactions 37,040.74
Net income/loss from operations 29,911,368.68
Total net assets at the end
of the financial year 148,458,627.32

FCP OP MEDICAL BioHe@lth-Trends Audited Annual Report as of September 30, 2005
Statement of Income and Expenses (in EUR)
for the period from 01.10.2004 to 30.09.2005
Income
Interest on bonds 195.33
Dividends 139,083.61
Interest from cash at the bank 93,607.15
Total income 232,886.09
Expenses
Management fee –2,142,765.21
Depositary bank fee –189,067.53
Taxe d’Abonnement –64,175.41
Pro rata set-up costs –12,000.00
Audit fees –10,000.00
Other expenses –159,754.04
Total expenses –2,577,762.19
Ordinary net earnings –2,344,876.10
Realized Gain/Loss
Changes in net unrealized
10,245,154.47
appreciation/depreciation 22,011,090.31
Net income/loss from operations 29,911,368.68
Development of units in circulation
in the period from 01.10.2004 to 30.09.2005
Number of units in circulation
at the start of the reporting period 1,185,738
Number of units issued 425,996
Number of units redeemed
Number of units outstanding
–354,814
at the end of the reporting period 1,256,920
Geographic classification
of investments
USA
% of fund’s
assets
67.72
Great Britain 7.34
Canada 6.45
Switzerland 5.86
Belgium 2.95
Germany 2.22
Japan 1.93
France 1.00
Australia 0.71
Denmark 0.55
96.73
Currency classification
of investments
USD
% of fund’s
assets
71.07
GBP 7.34
CHF 5.68
EUR 5.35
CAD 4.10
JPY 1.93
AUD 0.71
DKK 0.55
96.73
Economic classification
of investments
% of fund’s
assets
Biotechnology 50.24
Emerging Pharma 20.94
Med-Tech 12.07
Drug Delivery 6.37
E-Health 3.93
Healthcare Services 2.05
Genomics 1.13
96.73
13

FCP OP MEDICAL BioHe@lth-Trends Audited Annual Report as of September 30, 2005
Statement of Assets and Liabilities as of 30.09.2005
Interest Exchange Market value % * ) of
Currency Quantity Securities description rate rate (EUR) net
% 30.09.2005 assets
Shares
AUD 1,566,936 Biota Holdings Ltd. 1.0700 1,058,506.49 0.71
CAD 760,000 Adherex Technologies Inc. 1.2900 693,217.31 0.47
CAD 183,300 AnorMED Inc. 4.1500 537,869.18 0.36
CAD 895,900 CryoCath Technologies Inc. 5.1500 3,262,367.35 2.20
CAD 1,118,500 Inex Pharmaceuticals Corp. 0.1350 106,766.71 0.07
CAD 437,000 Isotechnika Inc. 2.2000 679,782.87 0.46
CAD 222,300 Labopharm Inc. 3.5500 557,999.64 0.38
CAD 1,023,300 StressGen Biotechnologies Corp. 0.3350 242,389.54 0.16
CHF 41,336 BB Biotech AG 73.3500 1,945,835.33 1.31
CHF 535,923 Berna Biotech AG NA 12.1000 4,161,647.42 2.80
CHF 20,000 HBM BioVentures AG NA 81.4800 1,045,823.83 0.70
CHF 2,400 Serono S.A. -B- 835.0000 1,286,101.48 0.87
DKK 49,600 Genmab A/S 122.5000 814,188.38 0.55
EUR 210,500 IsoTis AG NA 1.2500 263,125.00 0.18
EUR 121,306 Marseille-Kliniken AG 10.7300 1,301,613.39 0.88
EUR 99,500 UCB S.A. 44.0000 4,378,000.00 2.95
EUR 170,428 Wilex AG 2.3000 391,984.40 0.26
GBP 314,217 Acambis PLC 2.3975 1,103,474.19 0.74
GBP 510,000 Alizyme PLC 1.0150 758,245.96 0.51
GBP 800,000 Antisoma PLC 0.2100 246,083.88 0.17
GBP 779,900 BTG PLC 2.1350 2,438,993.73 1.64
GBP 785,000 GW Pharmaceuticals PLC 0.7900 908,386.42 0.61
GBP 1,500,000 Innovata PLC 0.2575 565,773.21 0.38
GBP 125,230 Shire Pharmaceuticals Group PLC 6.8650 1,259,281.45 0.85
GBP 3,274,257 Skyepharma PLC 0.3925 1,882,462.39 1.27
GBP 1,483,777 Vernalis PLC 0.7325 1,592,025.97 1.07
GBP 2,174,340 Xenova Group PLC 0.0450 143,322.33 0.10
JPY 58,000 Takeda Pharmaceutical Co. Ltd. 6,730.0000 2,869,100.49 1.93
USD 300,258 Abiomed Inc. 10.0300 2,497,807.86 1.68
USD 95,000 Adolor Corp. 10.6000 835,204.79 0.56
USD 357,191 AeroGen Inc. 0.7350 217,746.59 0.15
USD 242,747 Alkermes Inc. 16.9500 3,412,613.32 2.30
USD 464,000 AMICAS Inc. 5.3300 2,051,203.26 1.38
USD 487,626 AP Pharma Inc. 1.6900 683,497.71 0.46
USD 403,900 Aradigm Corp. 1.0600 355,093.91 0.24
USD 100,439 Arena Pharmaceuticals Inc. 9.9300 827,208.78 0.56
USD 2,611 Aspect Medical Systems Inc. 30.1400 65,270.00 0.04
USD 221,948 Axcan Pharma Inc. 12.8800 2,370,994.83 1.60
USD 261,600 Bally Total Fitness Holding Corp. 4.4500 965,519.96 0.65
USD 157,900 Bioenvision Inc. 7.9100 1,035,910.23 0.70
USD 626,252 Biomarin Pharmaceutical Inc. 8.6800 4,508,502.95 3.04
14

FCP OP MEDICAL BioHe@lth-Trends Audited Annual Report as of September 30, 2005
Statement of Assets and Liabilities as of 30.09.2005
Interest Exchange Market value %*) of
Currency Quantity Securities description rate rate (EUR) net
% 30.09.2005 assets
USD 207,700 BioSante Pharmaceuticals Inc. 3.3300 573,646.35 0.39
USD 143,510 BioScrip Inc. 6.5400 778,436.91 0.52
USD 37,000 Boston Scientific Corp. 23.3500 716,559.27 0.48
USD 101,600 Caraco Pharmaceutical Laboratories Ltd. 8.6000 724,695.67 0.49
USD 170,490 Cardiac Science Corp. 10.3000 1,456,463.63 0.98
USD 323,645 CardioDynamics Intl. Corp. 1.3600 365,065.94 0.25
USD 299,742 Ciphergen Biosystems Inc. 1.8100 449,976.34 0.30
USD 184,963 Conceptus Inc. 11.8000 1,810,215.90 1.22
USD 173,988 Corcept Therapeutics Inc. 5.0200 724,413.48 0.49
USD 150,000 Critical Therapeutics Inc. 9.2500 1,150,791.11 0.78
USD 226,426 Cubist Pharmaceuticals Inc. 20.1500 3,784,119.58 2.55
USD 50,000 CV Therapeutics Inc. 26.8300 1,112,638.76 0.75
USD 187,250 CYTOGEN Corp. 3.9100 607,242.40 0.41
USD 192,726 Depomed Inc. 6.7000 1,070,973.24 0.72
USD 502,915 Discovery Laboratories Inc. 6.1000 2,544,414.91 1.71
USD 165,431 Eclipsys Corp. 18.1900 2,495,819.09 1.68
USD 73,106 Embrex Inc. 11.5540 700,565.73 0.47
USD 302,375 Encysive Pharmaceuticals Inc. 11.8900 2,981,887.42 2.01
USD 278,859 Endologix Inc. 5.0500 1,167,991.15 0.79
USD 430,239 Enzon Pharmaceuticals Inc. 6.4500 2,301,616.69 1.55
USD 522,650 EP MedSystems Inc. 2.6320 1,140,933.54 0.77
USD 185,904 EPIX Pharmaceuticals Inc. 7.8400 1,208,838.56 0.81
USD 97,861 Flamel Technologies S.A. ADR 18.3500 1,489,392.72 1.00
USD 150,068 Human Genome Sciences Inc. 13.4400 1,672,826.39 1.13
USD 92,554 Icagen Inc. 6.7000 514,320.11 0.35
USD 229,746 Icos Corp. 27.5500 5,249,682.88 3.54
USD 459,097 Indevus Pharmaceuticals Inc. 2.7700 1,054,745.62 0.71
USD 1,413,040 Inyx Inc. 1.3100 1,535,285.89 1.03
USD 352,400 Isolagen Inc. 1.5700 458,879.93 0.31
USD 647,484 Ligand Pharmaceuticals Inc. -B- 8.8000 4,725,798.72 3.18
USD 188,478 Medarex Inc. 9.2900 1,452,244.99 0.98
USD 122,000 Medicines Co. 21.5400 2,179,561.04 1.47
USD 163,000 Medimmune Inc. 32.9500 4,454,577.62 3.00
USD 365,589 Monogram Biosciences Inc. 2.3500 712,565.00 0.48
USD 191,176 Neose Technologies Inc. 2.1800 345,663.38 0.23
USD 74,647 NitroMed Inc. 18.1300 1,122,467.23 0.76
USD 85,905 NPS Pharmaceuticals Inc. 10.4600 745,269.99 0.50
USD 15,000 Omnicell Inc. 9.7600 121,424.01 0.08
USD 174,000 OSI Pharmaceuticals Inc. 29.7500 4,293,383.92 2.89
USD 81,400 Palatin Technologies Inc. 2.2500 151,904.43 0.10
USD 169,557 ProxyMed Inc. 5.1800 728,465.50 0.49
USD 289,900 Quadramed Corp. 1.8300 440,010.27 0.30
15

FCP OP MEDICAL BioHe@lth-Trends Audited Annual Report as of September 30, 2005
Statement of Assets and Liabilities as of 30.09.2005
Interest Exchange Market value % * ) of
Currency Quantity Securities description rate rate (EUR) net
% 30.09.2005 assets
USD 234,504 Santarus Inc. 6.1200 1,190,323.98 0.80
USD 230,000 Schering-Plough Corp. 21.1500 4,034,611.44 2.72
USD 469,520 Sequenom Inc. 0.7200 280,381.98 0.19
USD 276,780 Sonic Innovations Inc. 4.3700 1,003,181.81 0.68
USD 558,157 Staar Surgical Co. 5.2700 2,439,666.70 1.64
USD 188,900 Tanox Inc. 14.6900 2,301,533.29 1.55
USD 431,667 Tapestry Pharmaceuticals Inc. 0.3800 136,049.19 0.09
USD 72,481 Telik Inc. 16.6000 997,920.10 0.67
USD 350,200 Titan Pharmaceuticals Inc. 1.7700 514,106.29 0.35
USD 194,862 Trimeris Inc. 14.8800 2,404,881.02 1.62
USD 363,500 Unigene Laboratories Inc. 2.9500 889,385.28 0.60
USD 45,000 Vertex Pharmaceuticals Inc. 20.8800 779,303.30 0.52
USD 209,395 Vical Inc. 5.0900 883,990.50 0.60
USD 377,657 VIVUS Inc. 3.5900 1,124,489.73 0.76
USD 971,509 World Heart Corp. 1.0200 821,883.96 0.55
USD 86,700 ZymoGenetics Inc. 16.3600 1,176,429.49 0.79
Total shares 140,614,855.90 94.72
Warrants
GBP 927,672 Xenova Group PLC WTS Call 31.12.08 GBP 0,125 0.0000 0.00 0.00
Total warrants 0.00 0.00
Long (bought) call options
USD 40,100 Call Andrx Corp. USD 20,00 Jan. 2007 1.4000 46,562.46 0.03
Total long (bought) call options 46,562.46 0.03
Non-listed securities
CAD 1,900,000 Adherex Technologies Inc.
WTS Call 19.12.08 CAD 2,15 – Restricted
0.0000 0.00 0.00
EUR 83,352 BioM AG – Private Placement 2.0000 166,704.00 0.11
EUR 225,317 Micromet AG 04-06 Conv. – Private Placement 24.00 1.0000 225,317.00 0.15
EUR 88,040 Micromet AG S. (E) Vz. – Private Placement 5.6800 500,067.20 0.34
EUR 83,425 Micromet AG S. (F) Vz. – Private Placement 5.9900 499,715.75 0.34
EUR 75,043 NOXXON Pharma AG – Private Placement 1.0000 75,043.00 0.05
EUR 2,000 NOXXON Pharma AG 02-05 – Private Placement 3.00 5.0000 10,000.00 0.01
EUR 30,769 NOXXON Pharma AG
04-10 S. -A- Conv. – Private Placement
14.00 0.3300 10,153.77 0.01
EUR 30,769 NOXXON Pharma AG
04-10 S. -B- Conv. – Private Placement
14.00 0.3300 10,153.77 0.01
16

FCP OP MEDICAL BioHe@lth-Trends Audited Annual Report as of September 30, 2005
Statement of Assets and Liabilities as of 30.09.2005
Interest Exchange Market value %*) of
Currency Quantity Securities description rate rate (EUR) net
% 30.09.2005 assets
EUR 105,000 NOXXON Pharma AG
05-11 S. -A- Conv. – Private Placement
14.00 1.0000 105,000.00 0.07
GBP 1,500,000 K S Biomedix Holdings PLC
deferred consideration Xenova Group
0.0000 0.00 0.00
USD 357,142 Adherex Technologies Inc. – Private Placement 0.9945 294,584.05 0.20
USD 535,714 Adherex Technologies Inc. WTS Restricted 0.0000 0.00 0.00
USD 180,000 Hybridon Inc. WTS Call 20.04.09 USD 1,14 – Restricted 0.0000 0.00 0.00
USD 100,000 Oscient Pharmaceut. Corp. WTS
Call 29.09.08 USD 3,48 – Restricted
0.0000 0.00 0.00
USD 200,000 Palatin Technologies Inc. – Restricted 2.1000 348,347.58 0.23
USD 30,000 Palatin Technologies Inc. WTS
Call 26.01.09 USD 4,06 – Restricted
0.0000 0.00 0.00
USD 833,333 Tensys Medical Inc. -D- Pfd. – Restricted 1.0000 691,165.56 0.47
Total of non-listed securities 2,936,251.68 1.98
Total securities 143,597,670.04 96.73
Cash in bank 4,292,153.91 2.89
Other assets
Interest receivable 195.33 0.00
Dividends receivable 1,294.89 0.00
Receivable for investments sold 1,127,587.20 0.76
Receivable for units sold 70,554.40 0.05
Total other assets 1,199,631.82 0.81
Liabilities
Taxe d’Abonnement –18,500.00 –0.01
Payable for investments purchased –408,753.65 –0.28
Payable for fund shares redeemed –188,574.80 –0.13
Other liabilities –15,000.00 –0.01
Total liabilities –630,828.45 –0.42
Total net assets 148,458,627.32 100.00
Net asset value per unit 118.11
Number of units in circulation 1,256,920
*) The rounding down of percentages in the calculation can result in marginal rounding differences
17

Notes to the Audited Annual Report
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 stocks 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 the 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 translated into
EUR at the exchange rates prevailing as of September 30, 2005.
Australian Dollar AUD 1.583950 = EUR 1
Canadian Dollar CAD 1.414275 = EUR 1
Swiss Franc CHF 1.558197 = EUR 1
Danish Krone DKK 7.462646 = EUR 1
British Pound GBP 0.682694 = EUR 1
Japanese Yen JPY 136.049609 = EUR 1
US-Dollar USD 1.205692 = EUR 1
The setup expenses are written off over a period of up to five years.
As with the payment for the custodian bank (currently 0.15% p.a.),
the remuneration of the fund administrator (currently 1.70% p.a.)
is computed on the basis of the daily net asset value calculation.
They are calculated and paid at the end of each month.
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 shareholders who are holding fund shares for third
parties receive reimbursements out of the management fees.
The Total Expense Ratio (TER) indicates the costs on the Fund’s
total assets for the financial year. With the exception of the
transaction costs, all costs of the fund are shown in relation to the
average total fund assets. During the year no performance fees
were paid.
TER (excl. performance fees) 2.06%
TER (incl. performance fees) 2.06%
18
The investment advisor receives a performance bonus. Where it is
payable, the performance bonus is equivalent to 15.00% of the
excess increase in value relative to the net asset value per unit and
year. The term ‘excess increase in value’ refers to the appreciation
per financial year which exceeds 8.00% – 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 financial yearend
– compared with the high at the end of the previous financial
year – records a new high (the so-called “high water mark”), and
only then on the new excess increase in value that is above the
stated high of the net inventory value per unit at the end of a
previous financial year. The net inventory value per unit is adjusted
by any dividends paid.
Under Luxemburg legislation and regulations, the Fund is subject
to an annual subscription tax (“Taxe d’Abonnement”) of 0.05% 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.
With effect from the October 1st, 2005, the assets of the FCP OP
MEDICAL fund will be subject to Part I of the Luxembourg Law
of December 20, 2002 on Undertakings for Collective Investments.
Furthermore, the subfund FCP OP MEDICAL Biohe@alth-Trends
dated October 1st, 2005 has launched an additional shareclass. A
EUR H shareclass has been issued alongside the EUR shareclass,
with the objective of safeguarding the foreign currency risk of
those investments not in euros as far as possible.

Auditor’s Report
Auditor’s Report
We have audited the financial statements, which consist of the
statement of net assets, the profit and loss account, the statement of
changes in net assets, the investment portfolio and other net assets
and the notes to the financial statements of FCP OP MEDICAL and
its subfund FCP OP MEDICAL BioHe@lth-Trends for the year
ended September 30, 2005. These financial statements are the
responsibility of the Board of Directors of the fund. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with International Standards
on Auditing. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by the Board of Directors of the fund in preparing the
financial statements, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the attached financial statements give, in
conformity with Luxembourg legal and regulatory requirements, a
true and fair view of the financial position of FCP OP MEDICAL
and its subfund FCP OP MEDICAL BioHe@lth-Trends at
September 30, 2005 and the results of its operations and changes in
its net assets for the year then ended.
Supplementary information included in the annual report has been
reviewed in the context of our mandate but has not been subject to
specific audit procedures carried out in accordance with the
standards described above. Consequently, we express no opinion
on such information. We have no observation to make concerning
such information in the context of the financial statements taken as
a whole.
Luxembourg, November 10, 2005
KPMG Audit S.à r.l.
Réviseurs d’Entreprises
Jörg Roth
This report is a translation of the original German audited annual
report. In case of any translation queries between the German and
the English version, please refer to the original German document.
19

Tax information for German investors
Tax information for German investors for the financial year ending 30.09.2005 in EUR per unit
For private For corporate For corporate
investors investors investors
according to according to
Income Tax Act Corporate
InvTA section 5 art. 1 Income Tax Act
No. 1 a) the amount of the distribution 0.0000 0.0000 0.0000
No. 1 b) the amount of the distributed income/deemed
distributed income
0.0000 0.0000 0.0000
No. 1 c) the following components included in the distribution/deemed
distributed income
aa) deemed distributed income from previous years 0.0000 0.0000 0.0000
bb) tax-exempt capital gains as defined in
section 2 art. 3 no. 1, sent. 1, InvTA
0.0000 0.0000 0.0000
cc) income as defined in section 3 no. 40, Income TA 0.0000 0.0000 0.0000
dd) income as defined in section 8b, Corporate Income TA 0.0000 0.0000 0.0000
ee) capital gains as defined in section 3 no. 40, Income TA 0.0000 0.0000 0.0000
ff) capital gains as defined in section 8b art. 2,
Corporate Income TA
0.0000 0.0000 0.0000
gg) income as defined in section 2 art. 3 no. 1, sent. 2, InvTA 0.0000 0.0000 0.0000
hh) tax-exempt capital gains as defined in
section 2 art. 3 no. 2, InvTA
0.0000 0.0000 0.0000
ii) income as defined in section 4 art. 1, InvTA 0.0000 0.0000 0.0000
jj) income as defined in section 4 art. 2, InvTA (dividends) 0.0954 0.0954 0.0954
jj) income as defined in section 4 art. 2, InvTA (interest) 0.0000 0.0000 0.0000
kk) income as defined in section 4 art. 2 InvTA 0.0000 0.0000 0.0000
No. 1 d) the amount of the distributed income, which gives rise to a
credit or refund of German withholding tax and
aa) as defined in section 7 art. 1 and 2, InvTA 0.0000 0.0000 0.0000
bb) as defined in section 7 art. 3, InvTA 0.0000 0.0000 0.0000
No. 1 e) the amount of the German withholding tax, which may
credited or refunded and
aa) as defined in section 7 art. 1 and 2, InvTA
(30 % Capital Gains Tax)
0.0000 0.0000 0.0000
bb) as defined in section 7 art. 3, InvTA 0.0000 0.0000 0.0000
No. 1 f) the amount of foreign withholding taxes on income,
which is included in the distributed income and deemed
distributed incomeas defined in section 4 art. 2, InvTA and
aa) which may be credited pursuant to section 34c art. 1,
Withholding Tax (dividends)
0.0147 0.0147 0.0147
aa) which may be credited pursuant to section 34c art. 1,
Withholding Tax (interests)
0.0000 0.0000 0.0000
20
bb) which is deductible pursuant to section 34c art. 3, Income TA 0.0000 0.0000 0.0000
cc) which is deemed paid pursuant to a double tax treaty 0.0000 0.0000 0.0000
No. 1 g) the amount of write-offs for depreciation or asset
depletion pursuant to section 3 art. 3 sent. 1, InvTA
0.0000 0.0000 0.0000
No. 1 h) the amount by which the income distributing entity claimed
a reduction in its corporate income tax liability under section 37 art. 3,
Corporate Income TA (Deduction of German Corporate Income Tax)
0.0000 0.0000 0.0000
For the purposes of disclosing tax information, KPMG Audit S.à r.l., Réviseurs d’Entreprises, Luxembourg, have certified, in accordance
with article 5 paragraph 1 no. 3 of the investment tax law, that the disclosure has been made as set down in article 5 paragragh 1 no. 3 of
the investment tax law.

Partners
Management Company and Central Administrator:
Oppenheim Pramerica Asset Management S.à r.l.
4, rue Jean Monnet
L-2180 Luxembourg
Registered office: Luxembourg; R.C. Luxembourg: B 28 878
Shareholders’ equity EUR 1.2 million (status: April 1, 2004)
Board of Directors:
Chairman:
Detlef Bierbaum
Partner of the banking organization
Sal. Oppenheim jr. & Cie. KGaA, Cologne
Dr. Bernd Borgmeier
Spokesman for the Board of Management of
Oppenheim Kapitalanlagegesellschaft mbH, Cologne
Joseph R. D’Onofrio
Member of the Board of Management of
Prudential International Investments, LLC, Newark*
Dr. Rupert Hengster (from 01.08.2005)
Spokesman for the Board of Management of
Oppenheim Kapitalanlagegesellschaft mbH, Cologne
J. Gabriel Irwin
Member of the Board of Management of
Prudential International Investments, LLC, Newark*
Ferdinand Alexander Leisten
Member of the Board of Management of
Oppenheim Capital Management GmbH, Cologne
Stephen Pelletier
Member of the Board of Management of
Prudential International Capital Group, Newark*
Harry Rosenbaum (until 31.07.2005)
Member of the Board of Management of
Sal. Oppenheim International S.A., Luxembourg
James J. Sullivan
Member of the Board of Management of
Prudential Fixed Income Prudential Financial, Inc., Newark*
* These companies belong to Prudential Financial, Inc. in the
Unites States of America. None of these companies is affiliated
with Prudential plc, a company headquartered in the United
Kingdom.
Board of Management:
Chairman:
Joseph R. D’Onofrio
Heinz Heisterkamp (until 30.06.2005)
J. Gabriel Irwin
Andreas Jockel
Harry Rosenbaum (since 01.07.2005)
Custodian Bank and Listing Agent at the
Luxembourg Stock Exchange:
Bank Sal. Oppenheim jr. & Cie. (Luxembourg) S.A.
4, rue Jean Monnet
L-2180 Luxembourg
Registered office: Luxembourg
Shareholders’ equity: EUR 60.0 Mio. (Status June 30, 2005)
Auditor:
KPMG Audit S.à r.l.
31, Allée Scheffer
L-2520 Luxembourg
Investment Advisors:
Medical Strategy Dr. med. Fischer Michael + Fischer Hans
Gesellschaft für strategische Konzeption im Gesundheitswesen
mbH, Waldsteinweg 14, D-95182 Döhlau
Further office: Elisabethstr.38, D-80796 Munich
(Financial services institute as defined by § 1 Abs. 1a KWG
[German Banking Act])
http://www.medicalstrategy.de
Investment Advisory Committee:
Chairman:
Dr. med. Michael Fischer
Managing partner of Medical Strategy GmbH, Munich
Heinz Heisterkamp
Member of the Board of Management (retiring) of
Oppenheim Pramerica Asset Management S.à r.l., Luxembourg
Harald Schwarz
Director Medical Strategy GmbH, Munich
Jürgen Wirtz
Authorised signatory of Deutschen Apotheker- und Ärztebank,
Düsseldorf
21

Partners
Scientific Advisory Board:
Prof. Dr. med. Richard H.W. Funk
Vice-Dean of the medical faculty and scientific
Director of the BIOTEC centre of Dresden Technical University
Prof. Dr. med. Peter Hohenberger
Chirurgische Universitätsklinik Mannheim, Sektion spezielle
chirurgische Onkologie und Thoraxchirurgie
Representative in Austria:
(Representative in accordance with § 29 InvFG and, at the
same time, domestic representative to the tax authorities in
Austria in accordance with § 42 in connection with § 40 Sect. 2
Sub-section 2 InvFG)
Sal. Oppenheim jr. & Cie. KGaA
Austrian Branch
Head Office Vienna
Palais Equitable
Stock im Eisen-Platz 3
A-1010 Vienna
Tax Agent in Austria:
Leitner + Leitner GmbH & CO KEG
Auditor and tax advisor
Ottensheimer Straße 30, 32 und 36
A-4040 Linz
Distribution in Austria:
Sal. Oppenheim jr. & Cie. KGaA
Austrian Branch
Head Office Vienna
Palais Equitable
Stock im Eisen-Platz 3
A-1010 Vienna
Representative in Switzerland:
Bank Sal. Oppenheim jr. & Cie. (Schweiz) AG
Uraniastraße 28
CH-8022 Zurich
The offering prospectus, management regulations as well as annual,
semi-annual and interim reports of the fund are available
free of charge at Bank Sal. Oppenheim jr. & Cie. (Schweiz) AG,
Uraniastraße 28, CH-8022 Zurich.
22
Paying Agents:
in Germany
Paying Agent in the Federal Republic of Germany and Listing
Agent for the shares at the Düsseldorf Stock Exchange and
Representative as defined by § 17 Sect. 3 No. 1 Letter b)
AuslInvestmG in the Federal Republic of Germany
Sal. Oppenheim jr. & Cie. KGaA
Unter Sachsenhausen 4
D-50667 Cologne
in Luxembourg
Bank Sal. Oppenheim jr. & Cie. (Luxembourg) S.A.
4, rue Jean Monnet
L-2180 Luxembourg
in Austria
Sal. Oppenheim jr. & Cie. KGaA
Austrian Branch
Head Office Vienna
Palais Equitable
Stock im Eisen-Platz 3
A-1010 Wien
in Switzerland
Bank Sal. Oppenheim jr. & Cie. (Schweiz) AG
Uraniastraße 28
CH-8022 Zurich
Stock Market Listing:
Düsseldorf Stock Exchange
Regulated market
Düsseldorf
Bourse de Luxembourg
Official trading
Luxembourg

Oppenheim Pramerica
Asset Management S.à r.l.
4, rue Jean Monnet
L-2180 Luxemburg
Telefon +352 22 15 22 1
Telefax +352 22 15 22 500
www.oppenheimpramerica.lu