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

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%
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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.