EUROPANEL SICAV - Banque Privée Edmond de Rothschild Europe

EUROPANEL SICAV 

Société d'Investissement à Capital Variable 

Audited Annual Report 

as at 

December 31, 2009 

R.C.S Luxembourg B 68 909


TABLE OF CONTENTS 

DIRECTORS AND ADMINISTRATION .................................................................................................................................................. 5 

INFORMATION TO THE SHAREHOLDERS AND NET ASSET VALUE PER SHARE ..................................................................... 6 

REPORT ON THE ACTIVITIES OF THE FUND ..................................................................................................................................... 7 

INDEPENDENT AUDITOR'S REPORT ................................................................................................................................................... 23 

COMBINED STATEMENT OF NET ASSETS ......................................................................................................................................... 24 

COMBINED STATEMENT OF OPERATIONS ....................................................................................................................................... 25 

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MULTI STRATEGIES 26 

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STATEMENT OF NET ASSETS 26 

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STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS 27 

STATISTICAL INFORMATION AND CHANGES IN THE NUMBER OF SHARES, OF NET ASSETS AND OF NET 

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ASSET VALUE PER SHARE 28 

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STATEMENT OF INVESTMENTS IN SECURITIES AND OTHER NET ASSETS 29 

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GEOGRAPHICAL CLASSIFICATION OF THE INVESTMENTS IN SECURITIES 30 

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ECONOMIC CLASSIFICATION OF THE INVESTMENTS IN SECURITIES 31 

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EURO LONG /SHORT 32 

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FIXED INCOME 38 

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DIVERSIFIED 44 

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3


TABLE OF CONTENTS 

(continued) 

EMERGING ..................................................................................................................................................................................................................... 

EUROPEAN CONTINENT 51 

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NOTES TO THE FINANCIAL STATEMENTS ........................................................................................................................................ 57 

4


DIRECTORS AND ADMINISTRATION 

BOARD OF DIRECTORS 

Mr Cyril JULLIARD 

Managing Director, 

Europanel Research And Alternative Asset Management 

Paris 

Mr Bertrand VAN HOUTTE 

Managing Director, 

Europanel Research And Alternative Asset Management 

Paris 

Mr Philippe VISCONTI 

First Vice-President, 

Banque Privée Edmond de Rothschild Europe 

Luxembourg 

Mr Guy VERHOUSTRAETEN 

Senior Vice-President, 

Banque Privée Edmond de Rothschild Europe 

Luxembourg 

Mr Pierre DELANDMETER 

Member of the Luxembourg Bar 

Luxembourg 

INVESTMENT ADVISOR (until September 15, 2009) 

BANQUE PRIVEE EDMOND DE ROTHSCHILD 

EUROPE 

20, Boulevard Emmanuel Servais 

L-2535 Luxembourg 

INVESTMENT MANAGER 

EUROPANEL RESEARCH AND ALTERNATIVE 

ASSET MANAGEMENT 

49-51, Avenue George V 

F-75008 Paris 

CUSTODIAN BANK, REGISTRAR, 

TRANSFER, PAYING, DOMICILIARY 

AND ADMINISTRATIVE AGENT 


EUROPE 



REGISTERED OFFICE 



AUDITORS (Réviseur d'entreprises) 

DELOITTE SA 

560, rue de Neudorf 


LEGAL ADVISOR IN LUXEMBOURG 

ELVINGER, HOSS & PRUSSEN 

2, Place Winston Churchill, 


SPONSORING INSTITUTIONS 


EUROPE 




ASSET MANAGEMENT 

49-51, Avenue George V 

F-75008 Paris 

5


INFORMATION TO THE SHAREHOLDERS 

Notices concerning the Company are published in 

newspapers designated by the Board of Directors, 

presently in the Luxemburger Wort and in the Financial 

Times and, if prescribed by law, are published in the 

Mémorial, the official gazette of Luxembourg, and are 

lodged with the Registrar of the Luxembourg District 

Court. 

The current Articles of Incorporation of the Company are 

lodged with the Registrar of the Luxembourg District 

Court, from whom copies may be obtained. 

The issue price and the redemption price of the Company 

shares are made public at the Registered Office of the 

Company, where annual and semi-annual reports may be 

obtained. 

The shares of the Sub-Funds are, or will be on issue, listed 

on the Luxembourg Stock Exchange. 

According to the Company's current Prospectus, the 

Directors would like to draw your attention to the fact that, 

in principle, the investors and/or the shareholders must 

comply with the deadlines applicable to the reception of 

the subscription, redemption and conversion orders. Any 

requests for derogation from these deadlines must be sent 

in writing, to the Registrar and Transfer Agent of the 

Company which will forward the said derogation requests 

to the Directors of the Company for approval. The 

Company's Board of Directors will deal with all the 

derogation requests in a fair manner and will give its 

approval only if the best interests of the shareholders of the 

Company are preserved. Investors or shareholders having 

sent a request(s) for derogation are invited to enquire about 

the status of such request(s) by contacting the Company's 

Registrar and Transfer Agent. 

Subscriptions cannot be received on the basis of financial 

reports. Subscriptions are valid only if made on the basis 

of the current prospectus, supplemented by the last annual 

report and the most recent semi-annual report if published 

thereafter. 

NET ASSET VALUE PER SHARE 

The Net Asset Value per share of each Sub-Fund is 

determined on the last Luxembourg bank business day of 

each month. 

The Net Asset Value nearest to the last day of the Sub- 

Funds’ financial year and half-year is, however, replaced 

by a Net Asset Value calculated on the last day of the 

concerned period. 

6


• ECONOMIC HIGHLIGHTS 

REPORT ON THE ACTIVITIES OF THE FUND * 

In 2009, the joint actions of central banks saved the modern capitalist system from almost certain death. The injections of 

liquidity, the quantitative easing program, the fiscal stimuli have allowed the economy to regain confidence in financial system 

and financial intermediaries. The returns on risky asset classes were positive throughout the year 2009. 

Following a very challenging 2008 environment, the beginning of 2009 on the equity markets brought two negative months, 

propelled by a macroeconomic recession, historical low level of investor confidence and massive sale of equity portfolio 

associated with the attitude of divestment, despite the fiscal stimulus and public authorities’ support. 

From March, the stock market remained very volatile, but has finished on a positive note. The good results of banks’ stress 

tests, the TARP plan (U.S. Treasury buying toxic assets) and the intervention of the main central banks have supported the 

equity markets. 

An early recovery should occur in the global economy in 2010. However, it is about a relatively slow process, with the central 

banks’ exiting strategies expected for the first half and a potential increase in interest rates starting with the Q3. The global 

growth forecasts indicate 2.7% for 2010 (1.7% for the Eurozone, 2.9% for the U.S. and 5.2% for the emerging countries). 

As for the equity markets, the consensus shows +20% YTD on average, with an expansion of the corporate earnings thanks to 

the economic recovery. 

The volatility of sovereign bond markets should persist after tensions caused firstly by the removal of the central banks’ 

quantitative easing and secondly by massive supply of government bonds. The volatility is also increasing due to increased 

pressure on sovereign bonds issuers such as Greece, Ireland, Portugal and many more ... which opens the door to new 

performance drivers. 

• ALTERNATIVE STRATEGIES RETROSPECTIVE FOR 2009 

‣ Global Macro & CTA: 

Global Macro managers have again benefited from high volatility in the asset classes they traded. 

Thus our selection of macro managers was able to benefit from opportunities on sovereign bonds, equities, foreign exchange 

and commodities. Following their outstanding performance in 2008, we conclude at the end of 2009 that the Global Macro 

discretionary strategy repeated the same achievement: being de-correlated of stocks and bond markets, while generating 

absolute return, with limited volatility. 

On the other hand for the CTAs, the 2009 performance was not as good as expected. Indeed, although they have benefitted 

from a similar volatility regime, they have suffered from violent trend reversals on asset classes that were, nevertheless, at their 

highest levels of return in 2009. 

‣ Fixed Income Strategies: 

G7 strategies have generally well driven throughout 2009. After 2008, exceptional year with massive investor redemptions and 

dramatic rise in costs of leverage, 2009 proved to be smoother and more lucrative for Fixed Income Managers. 

Since the beginning of 2009, the sovereign interest rates have benefited from the normalization of the volatility while 

continuing to offer significant opportunities (dislocation following the massive issuance of government bonds, quantitative 

easing, fiscal stimuli, macroeconomic uncertainty ... etc). 

2010 should bring even more interesting opportunities given the tensions caused by the closure of the economic recovery plans 

and the potential tightening of the monetary policies as from the Q3. 

7


Long / Short Equity Europe 

Long / Short Equity Strategy rebounded in 2009 after being severely tested in 2008; however it was not able to return to the 

levels of December 2007. 

The managers in this strategy tended to position themselves in a bull market scenario: on average they have thus increased 

their net exposure and benefited from the upward trend of the markets. 

Nevertheless, there were mixed performances being recorded in an uncertain environment with high volatility, especially as the 

main market moves have resulted from calls on different sectors rather than pure stock picking. Traders who combined topdown 

vision and knowledge of the market flows have thus achieved the best performance. As a consequence of the return of 

risk appetite, the small caps outperformed the large caps whilst the cyclical shares outperformed the defensive ones. 

Managers exposed to emerging markets, of which the most had a net long bias, have performed exceptionally well in markets 

that have been forecasting a scenario of "decoupling" between emerging and developed countries. The main concern remained 

in fact the ability of the developed countries’ governments to finance their interventionist policy vs. anaemic growth prospects 

for 2009-2010. 

2010 is expected to be a positive year for equity markets, at least for its 1st half with the return in green of the bottom-up 

strategies based on fundamental analysis. A key issue for markets in 2010 will be the impact of the monetary policy tightening 

expected for the 2nd half of year. 

The most important element in the portfolio construction is thus diversification of styles, liquidity and transparency. 

‣ Event Driven: 

After enduring a period of strong turbulence in 2008, the Event Driven managers have returned to positive performance in 

2009, helped by a recovery of the M&A activity encouraged by improved financing terms and very attractive expectations of 

earnings for arbitrage funds. 

Our exposure to funds active in this sector was almost zero in 2009. By year-end the launch of several interesting funds in this 

area has enabled us to rebuild an allocation to this strategy; thus we select managers who might be able to take advantage of 

definite opportunities for 2010. 

‣ Multistrategies/ Convertible Arbitrage: 

Historical irony, after 2008, undoubtedly its worst year ever, the convertible arbitrage strategy proved to be the most profitable 

strategy in 2009 (+44.1% in 2009 vs. -31.6% in 2008). 

Convertible bonds have undoubtedly benefited from the return of investors’ risk appetite. Recovery of equity markets and 

credit combined with a return to normal levels of volatility has therefore contributed to the CBs market recovery. 

Also with record low levels of risk-free rates, investors continue to reduce their allocations to treasuries, the escape solution 

chosen after the 2008 crisis. Their return to higher risk/ profit assets in 2010 is thereby supporting the CBs strategies. 

• PERFORMANCE ANALYSIS – EUROPANEL-MULTI STRATEGIES 

As at December 31, 2009, the Net Asset Value per share of EUROPANEL-MULTI STRATEGIES amounted to EUR 206.84. 

EUROPANEL’s SICAV assets under management were EUR 113 millions (of which EUR 52.5 millions for Europanel-Multi 

Strategies). 

Over 2009, EUROPANEL-Multi Strategies registered a gain of 2.76% vs +12.9% for the HFRX Global Hedge Fund Euro 

Index and +4.51% for the EuroMTS Global. The 12-month volatility of our fund was 5.1% versus 3.3% for the HFRX Global 

Hedge Fund Index (€) and 3.4% for the Euro MTS. 

8


Performance from December 31, 2008 to December 31, 2009 

EUROPANEL HFRX Global Hedge Fund (€) Euro MTS Global 

2009 performance 2.76 % 12.9% 4.5% 

2009 annualised volatility 5.1% 3.3% 3.4% 

2009 monthly performances: 

Europanel- 

Multi 

Strategies 

HFRX 

Global 

Hedge € 

Euro MTS 

Global 

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec YTD 

2009 

0,80% 1,09% -3,33% -0,60% 1,33% -0,69% 0,72% 1,78% 2,32% -1,19% 0,43% 0,17% 2,76% 

1,32% -0,38% 0,15% 1,31% 2,96% 0,07% 1,56% 1,23% 2,14% -0,09% 1,62% 0,39% 12,9% 

-1,12% 1,13% 0,96% 0,66% -1,48% 1,23% 1,86% 0,56% 0,84% -0,13% 0,67% 

- 

0,70% 4,5% 

Chart of monthly performance – 2009: 

4% 

3% 

2% 

1% 

0% 

-1% 

-2% 

-3% 

-4% 

Europanel - Multi Strategies 

HFRX Global Hedge € 

Euro MTS Global 

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 

9


• CONTRIBUTION ANALYSIS - EUROPANEL-MULTI STRATEGIES (MS I) 

Taking net cumulated performance per category, we get the following table & chart: 

Strategy 

Perf. (bps net) 

Global Macro &CTA 465 

Long Short Equity 119 

Multistrategies 6 

Fixed Income -104 

Event Driven -210 

TOTAL MS I 276 

2009 Contributions by strategy within Europanel-Multi Strategies Fund (bps net): 

Global Macro 

&CTA 

465 

Long Short 

Equity 

119 

Multistrategies 

6 

Fixed Income 

-104 

Event Driven 

-210 

-250 -125 0 125 250 375 500 

Europanel-Multi Strategies: Cumulated NET Contributions by strategy in 2009 (bps) 

500 

375 

250 

Long Short Equity 

Fixed Income 

Global Macro & CTA 

Multistrategies 

Event driven 

125 

0 

-125 

-250 

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 

10


As our statistical analysis shows, the Fund has an annual return of 7.1% since its inception (May99). 

Graph of historical performances – since inception (%): 

235 

220 

205 

190 

175 

Europanel MS 

HFRI FOF Comp (€) 

50 MSCI Europe/ 50 

EuroMTS 

160 

145 

130 

115 

100 

85 

06 99 

03 00 

12 00 

09 01 

06 02 

03 03 

12 03 

09 04 

06 05 

03 06 

12 06 

09 07 

06 08 

03 09 

12 09 

11


• EUROPANEL-MULTI STRATEGIES: 

HOW DID OUR ALLOCATION BEHAVE OVER 2009? 

‣ Global Macro & CTAs 

The Global Macro managers are again the best performers to the Fund’s performance this year (+572 bps gross). 

As for the CTAs, they have experienced a more difficult year: unfortunately in 2009 the strategy did not renew the impressive 

performance recorded one year ago. Nevertheless, their contribution (-31 bps gross) is penalizing only a little the global 

performance of Europanel MS. 

We are particularly satisfied with the performance of our Global Macro managers’ selection in 2009. The Brevan Howard 

funds are again top contributors: +19% YTD (i.e. +157 bps gross) for the Brevan Howard Master fund and +25% YTD (i.e. + 

134 bps gross) for the Brevan Howard Emerging Markets fund. But the best contributor of the year is CQS Directional 

Opportunities, generating +56%YTD, i.e. a contribution of 179 bps gross to the Fund’s performance). 

Our Macro funds have managed extremely well their exposure to sovereign interest rates, forex, precious metals and obviously 

to the equity market rally. All in all, the totality of the selected managers have seamlessly anticipated and accompanied the 

investor’s return to risky assets starting from March 2009. 

Our CTAs had to struggle through a difficult year, as the industry indices indicate (Lyxor CTA Long Term: -9.3%; HFRI 

Macro Systematic -2.45% on YTD). Nevertheless, some funds in our selection largely overperformed the indices – such as 

BlueTrend, up 4.5% YTD and benefiting by the end of the year from the long rates rally succeeding the flight to quality 

triggered by the Dubai crisis. 

Generally, the CTAs were negatively impacted by sudden and violent trend breaks in the equity markets, fixed income rates, 

currencies and commodities. The major part of these markets effectively featured rough trends on short term, making the 

capture of signals & profits even harder to get by the CTAs in the H1 2009 (-37 bps gross). Hopefully, the second part of the 

year was milder for some of our CTAs that had successfully captured the positive momentum on equities & energy as well as 

the downward trend on the USD. 

Early 2010 the CTAs present a more interesting positioning as they adopt a bullish stance on the equities through a net long 

exposure on the future indices, whilst staying long on sovereign rates (rates that tend to rise during panic episodes on the risky 

assets – the “flight to quality” process) and gold. The options experts call this “being long the wings with a straddle pay-off”. 

‣ Long/Short Equity Strategies : 

With +119 bps net, this pocket is the second best contributor to the Fund’s performance in 2009. 

A defensive construction of the portfolio enabled us to diversify our positions and to rebalance them at very reasonable levels. 

As a result, the funds in this pocket showed performance contributions concentrated in a small range (from +57 to -20 bps 

gross). 

Within our L/S Equity selection the managers were prudently positioned during 2009. 

Thus in the first half of the year they have posted a negative contribution (-61 bps gross). This corresponds to a very 

conservative opinion of our managers as regarding markets’ ability to recover in a sustainable way. 

A lot of them have either conserved a very low net long exposure to the markets during the H1 or selected defensive stocks in 

sectors such health, telecoms or food. Unfortunately, these sectors have underperformed others, more cyclical, such as natural 

resources, industrials or financials. 

As for the H2, the managers having delayed to rebalance their portfolios partly captured the rally on the cyclical stocks. They 

abandoned part of their gains in October, with the sudden sector rotation with financial stocks and utilities underperforming 

significantly whereas consumer staples were up. All in all they finished the 2nd half with a positive contribution (+293 bps 

gross). 

On this backdrop, the best contributors in 2009 were naturally as follows: 

1) Funds exposed to emerging markets: MW Global Opportunities (+40 bps), Nevsky (+37 bps) 

2) Traders & beta timers (Jabcap Global Balanced, TT Mid Caps) 

3) Funds with a long bias and in some cases with a focus on small & mid caps (Maga SC – the best contributor with +57 

bps; Parus, Pensato Europa, BR UK Em). 

12


As for 2010, we will keep a diversified pocket as by style, exposure and sectors, whilst keeping our focus on liquidity and 

transparency. 

‣ Multistrat/Equity : 

In 2009 this allocation was on average at 1.5% of the total Fund’s assets; its contribution is thus marginal (+6 bps net). 

There were only three lines in this pocket, mainly funds whose positions were progressively sold (as they had set up side 

pockets); by the end of 2009 this allocation counts for 1% only. 

‣ Event Driven : 

This pocket has been our greatest deception in 2009 (-210 bps net of contribution), for an average allocation of 6%. 

BlueBay Recovery Value, a Debt specialist in this pocket, saw its liquidity deteriorating along with the obstruction of the 

financing markets. Its portfolio is a collection of special situations with probable exits ranging up to 3 years. The manager’s 

role is to monetize this portfolio. 

After an in-depth underlying analysis, we decided to apply a 36% discount to this position, as a fair reflection of its general 

liquidity terms. This discount is reintegrated gradually, in line with the sale of the assets by the manager; in 2009, some 4% of 

the fund’s NAV were paid back to investors. 

During the 4th quarter, we have entered a new fund, Tyrus Capital Event, one of the most successful launching of the year ($ 

800 Mn). Thus the Event Driven allocation to this strategy amounts 10% by the end of the year, as we think the M&A arbitrage 

strategy once again offers attractive prospects. 

‣ Fixed Income : 

2008 & 2009 were very thrilling years for the fixed income strategies… and 2010 seems to be even more promising. In 2008 

our managers had to adopt an end-of-the-world stance, certainly with some success (mainly thanks to the G4 trades on the 

short & long term rates curves). 

Whilst entering 2009, as the short term rates touched historical low levels, our managers were playing the downward trend on 

long term rates, then, starting from March, the steepening of the long term. 

In the same time, and given the very abundant supply on the primary markets of sovereign bonds, the fixed income managers 

started to initiate more aggressive arbitrage trades such as: basis trades (future vs cash), intra-curve arbitrage, arbitrage 

between countries… Dislocations succeeding massive govies supply have become an alternative source of returns, instead of 

the directional rally having occurred in 2008. 

Our RV arbitragers (Capula RV, Prologue) did very well in 2009: they have profited from market discrepancies and thus 

contributed positively to the Fund’s performance. 

On the other hand, our Loans specialists were unfortunately negative contributors (-151 bps), with an investment universe 

completely decimated in 2008. We have sold our position in Alpstar on the secondary market, whilst NAC, our leveraged loan 

manager undergoing restructuration, suspended redemptions to investors. Nevertheless, end 2009 we were able to close this 

position having lost about 60% YTD. 

Looking into 2010 we have identified excellent managers with a long & short style and we are quite positive for the next phase 

of the cycle where self-satisfaction is no longer in the agenda. 

13


• INVESTMENT STRATEGY ANALYSIS - EUROPANEL-MULTI STRATEGIES 

As regards the investments in the master fund, the AMF-regulated FCP Europanel Multistrategies II (MS II), per total we 

withdrew from 13 funds and invested in 18 new funds during 2009. 

HFs IN 

Sector Healthcare 

TrT Enhanced Lyxor 

TT Mid Cap Europe 

Cazenove European Alpha Absolute Return 

TT Financials Long Short 

Nevsky 

NBCG Desmond 

Marshall Wace Manager Strategies Global 

Opportunities 

Pensato Europa 

Jabcap Global Balanced 

Cazenove Absolute UK Dynamic 

Parus 

Arrowgrass International 

EEA Europe Long Short 

NBCG Malta Transtrend 

Tyrus Capital Event 

GLG Emerging Markets 

Numen Credit Opportunities 

HFs OUT 

Amplitude Lyxor 

Otus 

Polar Capital Paragon 

Arrowgrass International 

Horseman European Select 

Capula Global Relative Value 

Horseman Global 

Cazenove European Alpha Absolute Return 

NBCG Desmond 

TT Financials Long Short 

TrT Enhanced Lyxor 

Jabcap Global Balanced 

NAC European Credit 

As of December 31, 2009, the number of funds invested through the bias of the master fund, MS II, was 25 - slightly up vs. the 

end of 2008 (22). 

Event 

Driven 5% 

CASH 27% 

Long Short 

Equity 26% 

Event 

Driven 

10% 

Multistrat 

egies 1% 

Fixed 

Income 

4% 

Cash 1% 

Global 

Macro 

&CTA 34% 

Multistrate 

gies 4% 

Global 

Macro 

&CTA 25% 

Fixed 

Income 

13% 

Long 

Short 

Equity 

50% 

ALLOCATION by STRATEGY : Dec. 31 st , 2008 ALLOCATION by STRATEGY: Dec. 31 st , 2009 

14


In 2009 we have increased allocation to L/s Equity managers (from 26% to 50%) as well as to solid Global Macro funds, while 

diminishing the investments in the fixed income (from 13% to 4%) and consequently to the stabilization of the markets after 

the 2008 crisis, the Cash positions. 

As for 2010 we plan to favour more the Event Driven & Distressed strategies, as well as niche managers in the Long Short 

Equity area. 

• PERFORMANCE ANALYSIS FOR EUROPANEL-EURO LONG/SHORT 

Europanel-Euro Long/Short monthly performance (%): 

Europanel- 

Euro 

Long/Short 


2009 

0,76% 0,80% -0,45% 0,21% 1,65% -0,31% 0,72% 2,07% 1,51% -1,79% -0,33% 0,80% 5,71% 

YTD Net contributions by strategy for Europanel-Euro Long/Short: 

Long Bias 

268 

CTA/Commo 

251 

Variable Bias 

43 

Market Neutral 

39 

Multistrat/Eqty. 

-30 

-50 0 50 100 150 200 250 300 

Europanel-Euro Long/Short gained 5.71% in 2009, whilst the MSCI Europe index rose by 23.4% YTD. 

Europanel-Euro Long/Short – Equity Exposure during 2009: 

(through the bias of the investments made by the master fund, the AMF-regulated FCP Europanel Long Short II) 

15


Europanel - Euro Long/Short: Equity Exposure during 2009 

140% 

120% 

100% 

80% 

84% 

60% 

50% 

40% 

20% 

0% 

01/2009 

02/2009 

03/2009 

04/2009 

05/2009 

06/2009 

07/2009 

08/2009 

09/2009 

10/2009 

11/2009 

12/2009 

Gross 

Long 

Gross 

Short 

Net exposure 

GROSS Total 

Our managers generally adopted a bullish stance for 2009: on average they have thus increased their net exposure and 

benefited from the upward trend of the markets. 

However, there are also some that recorded unsatisfactory performance, in a context of high volatility: their bets proved to be 

wrong as the small caps finally outperformed the large caps whilst the cyclical shares did better than the defensive ones. 

Comments by sub-strategy: 

‣ Long Bias: 

Unsurprisingly, this pocket is the best contributor to the Fund’s performance in 2009 (+ 268 bps net). 

On this backdrop, the 2009 best contributors were mainly: 

- Our managers exposed to the emerging markets such as Nevsky, EEA 

- Those focused on the small & mid caps or to UK (SW Mitchell SC, Maga SC, BR UK Em, Cazenove UK) 

‣ CTA/ Commodities: 

This pocket composed by a trader of energy commodities, Bluegold, had an average allocation of 3.8% but brought the 2nd 

best contribution (+251 bps net); the manager did exceptionally well exploited the oil rally, with a total performance of +55% 

in 2009. 

‣ Variable Bias: 

During the first half of the year, this bucket recorded a negative contribution, corresponding to a very conservative opinion of 

our managers regarding a solid market recovery. As a result, part of them have either conserved a very low net long exposure 

or selected defensive stocks (health, food) … unfortunately those that have underperformed the cyclical stocks (natural 

resources, industrials or financials). 

Eventually in the H2 they rebalanced their portfolios and partially captured the September rally on the cyclical stocks. The 

sudden sector rotation seen further (financial stocks and utilities underperforming significantly whereas consumer staples were 

up) diminished their gains for the year (+43 bps net). 

‣ Multistrat /Equity 

The pocket had a very low allocation during 2009 (0.7% on average) and counted mainly two lines. These managers were not 

able to supply normal liquidity to investors thus having suspended redemptions. We hope to get a full liquidation of these lines 

in the next few months. 

16


During the 4Q, we have added to this pocket a new Event Driven fund, Tyrus Capital Event, one of the most successful 

launching of the year ($ 800 Mn). Thus end 2009 the Multistrat/Equity allocation is up to 2% as we think the M&A arbitrage 

strategy once again offers attractive prospects. 

‣ Market Neutral: 

There is a modest contribution (+39 bps) given this bucket’s average allocation (30%) in 2009. Our managers were penalized 

by a market driven by sector-oriented bets. 

Out of the five funds in this pocket during the year, four have ended in green, but the 5th is the worst contributor to the 

Europanel LS performance in 2009, having generating negative alpha following a terrible stock picking. This fund redeemed in 

June has impacted the YTD performance with -91 bps gross. 

Portfolio in 2010 

• For 2010, the outlook for equity markets is mixed. The short term outlook seems encouraging with low risk against a 

backdrop of particularly accommodative monetary policies. However, major uncertainty subsists over the six to 

eighteen month horizon (growth, debt, end of stimulus packages, etc.). Given this environment, our investment policy 

for 2010 focuses on the following: 

Rebalancing positions in favour of variable bias fund managers focusing on large cap and 

opportunistic investments at the expense of funds with a small-caps focus 

Creating a pocket of theme-based and niche funds with highly specialised fund managers that we 

have already identified 

Further adding to our exposure to funds active in emerging countries but solely through managers 

with top down and flows analysis approaches 

Increasing the Fund’s exposure to Event Driven managers to take advantage of the expected 

acceleration in mergers & acquisitions 

• PERFORMANCE ANALYSIS FOR EUROPANEL-FIXED INCOME 

Europanel-Fixed Income monthly performances (%): 

Europanel 

Fixed 

Income 


2009 

0,75% 0,22% -3,04% -0,48% 1,95% -0,06% 1,28% 0,63% 1,64% 0,41% 0,40% 0,29% 3,98% 

On the last 12 months, Europanel-Fixed Income Fund recorded a gain of 3.98%. 

YTD Net contributions by strategy for Europanel-Fixed Income: 

Credit 

493 

Diversified 

CBs 

123 

107 

G7 

44 

Special Sit. 

-369 

-400 -200 0 200 400 600 

17


Overall, our portfolio recorded a performance of almost 4% in 2009, against a dropdown of timid recovery after the global 

financial crisis that affected especially the credit & loans funds by the end of 2008. The fund was again run on a concentrated 

basis allowing us to focus on the most experienced European manager of each asset class. 

We were impacted by the exit of the Special Situation fund (-369 bps net) which turns out to be a private equity like portfolio 

of European companies. We sold with a discount of 34% to protect the liquidity profile of the Fund. 

The Credit allocation delivered +493 bps net. With hindsight we could have leveraged on the massive credit rally which 

occurred in 2009: our exposure via CQS Directional (+55% YTD) and CBs specialist (+30% YTD) benefitted from that move. 

Looking into 2010 we are keeping faith for the strategy; nevertheless, we add managers with a long short stance as we believe 

there will be opportunities on both sides. 

Our liquid market RV (G7) exposure had a modest contribution (+44 bps net) but in line with a modest risk profile. We still 

see opportunities in 2010 but on a smaller scale. 

The Diversified bucket (+123 bps net) needs to be split by macro styles: 

- CTAs were down and reduced in H1 - as we saw risk of equity correlation; we’ll keep this allocation low into 2010 

- Fixed income directional components (Brevan Howard’s Macro & EM funds) delivered the lion share performance; we 

keep our allocation although we forecast a more volatile environment 

• PERFORMANCE ANALYSIS FOR EUROPANEL-DIVERSIFIED 

Europanel-Diversified monthly performance: 

Europanel- 

Diversified 


2009 

0,52% 0,36% -2,23% -1,34% 0,78% -0,66% 0,48% 1,05% 1,74% -0,92% 0,57% -0,22% 0,07% 

YTD Net contributions by strategy for Europanel-Diversified: 

Global Macro 

Commo. 

L/E Equity 

Multistrat. 

Fixed Inc. 

CTA 

Event Driven 

28 

22 

-3 

-42 

-108 

-170 

280 

-200 -100 0 100 200 300 

On the backdrop of an incipient recovery after the very severe financial crisis seen end 2008, Europanel-Diversified Fund 

ended 2009 almost flat (+0.07% YTD). 

The portfolio was positively impacted by the performance of the Equity L/S, Global Macro/ fixed income and commodity 

managers and negatively impacted by CTA, credit and event driven managers. 

18


Event Driven allocation was mainly composed by a fund whose portfolio comprises private equity companies which delivered 

no returns in 2009. The manager is waiting for a longer catalyst than we expected initially. We have decided to discount 34% 

of the NAV of the manager in order to take into account the liquidity premium. 

Looking forward we will reinforce this strategy via Equity specialists and also distress debt and capital structure arbitrage 

experts: we see a lot if opportunities in this sector for 2010. 

Fixed Income had a net negative contribution: we were underweight on Credit funds and were impacted by the liquidation of 

our leveraged loan manager undergoing restructuration. 

With hindsight we think that our weighting was inappropriate but the universe of the manager was decimated in 2008. 

Looking into 2010 we have identified excellent managers with a long & short style and we are quite positive for the next phase 

of the cycle where complacency is no longer in the agenda. 

The CTAs were negatively affected (-108 bps net) by the absence of real trends; looking forward we don’t expect a much 

better environment. 

We’ll keep a small allocation in 2010 as we see the strategy as an “out of the money put” in case of crisis. 

Our Commodity manager has been doing well within the oil sector (+28 bps of contribution, i.e. + 55% YTD) we keep our 

view that they can extract good value from their niche expertise. 

As for the Long /Short Equity selection, it was a bit of a disappointment with its modest contribution (+22 bps net); this can 

only be explained by a low beta and a very conservative positioning from our “survivors of 2008”. Those managers with an 

alpha bias could hardly avoid the rally of some bad companies as the market rally was indiscriminate. 

Global Macro is the best performer in 2009 (+280 bps net) via bond specialists exploiting the steepening of the G3 yield 

curves and clear central banks commitment to “save the system”. 

We see 2010 as a more complex path for those managers; thus we’ll reduce our exposure to them. 

The portfolio in 2010 is positioned for a recovery in growth via emerging markets and a rebound of M&A 

activity in Europe. 

• PERFORMANCE ANALYSIS FOR EUROPANEL-EMERGING EUROPEAN CONTINENT 

Europanel-Emerging European Continent monthly performance: 

Europanel- 

Emerging 

European 

Continent 


2009 

1,10% -0,39% 2,63% 3,77% 4,34% -0,76% 0,62% 0,27% 5,19% 0,59% 0,25% 0,73% 19,73% 

The fund, which was launched at the end of September 2007, is investing in Hedge Fund managers focusing on Emerging 

Europe, combining alternative and traditional strategies. 

Europanel-Emerging European Continent ended 2009 up almost 20%, whilst the MSCI EM Eastern Europe won 66% YTD. 

19


YTD Net contributions (bp) by strategy for Europanel-Emerging European Continent: 

Long Only 

1233 

Macro 

Long Bias 

452 

405 

Variable Bias 

-117 

-250 0 250 500 750 1000 1250 

Allocation by strategy for Europanel-Emerging European Continent: 

Long Bias 

16% 

Macro 

35% 

Macro 

17% 

Cash 8% 

Biais 

Long 

33% 

Variable 

Bias 30% 

Cash 19% 

Biais 

Variable 

18% 

Long 

Only 24% 

ALLOCATION at DEC 31st, 2008 ALLOCATION at DEC 31st, 2009 

Gross contributions (bps) by Strategy – Europanel-Emerging European Continent: 

1500 

1250 

1000 

750 

500 

Biais long 

Long Only 

Biais Variable 

MACRO 

250 

0 

-250 

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

20


After 2008, the worst year in Emerging Markets since 1998, 2009 has brought back the recovery, especially in the Eastern 

Europe and MENA regions (MSCI EMEA up 63.5% YTD). 

We have carefully increased our beta to the markets through the addition of long only & long bias funds in portfolio during 

2009. Thus, the Fund has adopted a cautious profile, with an average gross exposure (long+short) of 56% and an average net 

exposure at 27% % during the year 

We have also seized down the allocation to the Macro segment (from 35% to 17%), a pocket that we introduced in 2008 to 

bring strategy diversification and some hedging during bearish market conditions. 

Europanel-Emerging European Continent – Equity Exposure since inception: 

Europanel EE - Equity Exposure 

100% 

80% 

60% 

40% 

20% 

0% 

09/2007 

12/2007 

03/2008 

06/2008 

09/2008 

12/2008 

03/2009 

06/2009 

09/2009 

12/2009 

Gross Long Gross Short NET Gross 

Comments by sub-strategy: 

‣ Macro 

This pocket, the second best contributor to the Fund’s performance in 2009 (+452 bps net), is composed by one single manager 

with a significant weighting (17% at the end of 2009), Brevan Howard Emg Mkts Strat. The fund was up 25% in 2009; 

except December, it brought positive contributions every month and helped to decorrelate & protect the portfolio during the 

difficult phases of the recovery. 

‣ Variable Bias: 

Just like last year, this pocket was the worst contributor to the performance (-117 bps net in 2009). 

On our 2009 selection of 5 funds, two brought very disappointing contributions: Horseman EM and Blackrock MENA, as their 

managers positioned their portfolio net short and have switched too late when the upward trend became more than obvious. 

One of them also had a limited exposure to the Emirates (approx. 9%). We redeem the first one early 2010, whilst the second 

one has closed end 2009. 

On the other hand, there was also a very positive surprise from OCCO EE; this fund has pursued a very successful stock 

picking policy, mainly on Russia and Poland. It gained 50% in 2009 while maintaining a very low net market exposure of 

15% on average. 

21


‣ Long Only & Long Bias: 

Our Long Only pocket was naturally the best performer & contributor in 2009 as our Russia specialist have captured the 

tremendous rally on this markets (East Cap Russia up 122% YTD) ie +1233 bps net of contribution to the Fund. 

The long bias selection also has an important part of contribution to the performance (+405 bps net), especially due to Nevsky 

(+528 bps gross) up 31% YTD. 

Portfolio in 2010 

For 2010 we are going to re-allocate capital to an increasing number of managers with Macro focus and very liquid 

underlyings; nevertheless we will keep a long bias on the region – especially on Russia and probably on Turkey, countries that 

feature important investment prospects 

April 29, 2010 

EUROPANEL RESEARCH AND 

ALTERNATIVE ASSET MANAGEMENT 

* Indications and comparisons are historical and are not necessarily an indication of future results. 

22

INDEPENDENT AUDITOR'S REPORT 

Deloitte SA 

Audit, Tax, Consulting 

Financial Advisory 

560, rue de Neudorf 


B.P.1173 


Tel: +352 451 451 

Fax: +352 451 452 401 

www.deloitte.lu 

To the shareholders of 


(Société d'Investissement à Capital Variable) 



Following our appointment by the annual general meeting of 

the Shareholders dated May 22, 2009, we have audited the 

accompanying financial statements of EUROPANEL SICAV 

and of each of its sub-funds, which comprise the combined 

statement of net assets, the statement of net assets and the 

statement of investments in securities and other net assets as 

at December 31, 2009 and the combined statement of 

operations, the statement of operations and changes in net 

assets for the year then ended, and a summary of significant 

accounting policies and other explanatory notes to the 

financial statements. 

Board of Directors’ responsibility for the financial statements 

The Board of Directors of the SICAV is responsible for the 

preparation and fair presentation of these financial statements 

in accordance with Luxembourg legal and regulatory 

requirements relating to the preparation of the financial 

statements. This responsibility includes: designing, 

implementing and maintaining internal control relevant to the 

preparation and fair presentation of financial statements that 

are free from material misstatement, whether due to fraud or 

error; selecting and applying appropriate accounting policies; 

and making accounting estimates that are reasonable in the 

circumstances. 

Auditor’s responsibility 

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 by the Institut des réviseurs d’entreprises. Those 

standards require that we comply with ethical requirements 

and plan and perform the audit to obtain reasonable assurance 

whether the financial statements are free from material 

misstatement. 

An audit involves performing procedures to obtain audit 

evidence about the amounts and disclosures in the financial 

statements. The procedures selected depend on the auditor’s 

judgement, 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 auditor 

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 SICAV, 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 EUROPANEL SICAV and 

of each of its sub-funds as of December 31, 2009, and of the 

results of their operations and changes in their net assets for 

the year then ended in accordance with the 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. 

Deloitte SA 

Réviseur d’entreprises 

E. van de Kerkhove 

Partner 

Luxembourg , April 29, 2010 

23


COMBINED STATEMENT OF NET ASSETS 


(in EUR) 

ASSETS 

Portfolio: 

- Cost 118,061,243.59 

- Net unrealised result (5,076,926.19) 

112,984,317.40 

Cash: 

- Cash at sight 315,530.51 

Other assets: 

- Prepaid on Investment 1,197,893.11 

- Formation/reorganisation expenses, net 6,303.00 

- Unrealised gain on forward foreign exchange contracts 3,402.55 

- Unrealised gain on swaps contracts 2,368.59 

- Prepaid expenses 5,000.00 

- Other 21,251.55 

114,536,066.71 

LIABILITIES 

Bank overdraft: 

- Cash at sight 1,189,202.92 

Other liabilities: 

- Taxes and expenses payable 375,240.92 

- Unrealised loss on forward foreign exchange contracts 47,085.15 

- Unrealised loss on swaps contracts 43,762.78 

- Other 981.77 

1,656,273.54 

NET ASSETS 112,879,793.17 

The notes are an integral part of these financial statements 

24


COMBINED STATEMENT OF OPERATIONS 

Year ended December 31, 2009 

(in EUR) 

INCOME 

Income from investments: 

- Dividends, net 22,063.35 

- Bond interest, net 48,715.91 

Bank interest, net 13,174.76 

Other income 258,001.14 

341,955.16 

EXPENSES 

Fees: 

- Investment Management fee 1,113,418.54 

- Performance fee 213,080.65 

- Investment advisory, intermediaries, selling agents, 

1,124,747.47 

custodian, sponsor fees and safekeeping charges 

Other expenses: 

- Annual tax 58,477.85 

- Amortisation of formation/reorganisation expenses 2,300.00 

- Audit and legal fees 40,247.90 

- Printing and publishing fees 1,628.95 

- Administration and other expenses 62,403.92 

2,616,305.28 

NET OPERATING RESULT (2,274,350.12) 

Net realised result on: 

- Sales of investments 12,051,913.08 

- Foreign exchange 2,466,590.42 

NET REALISED RESULT 12,244,153.38 

Change in net unrealised appreciation/(depreciation) 

on: 

- Investments (4,709,935.58) 

- Forward foreign exchange contracts (3,687,309.52) 

- Swaps contracts (41,394.19) 

NET INCREASE/(DECREASE) IN NET ASSETS AS A 

RESULT OF OPERATIONS 

3,805,514.09 


25


MULTI STRATEGIES 

STATEMENT OF NET ASSETS 


(in EUR) 

ASSETS 

Portfolio: 

(see notes) 

- Cost 63,032,439.70 

- Net unrealised result (6,079,000.40) 

56,953,439.30 

Cash: 


Other assets: 


- Other 21,251.55 

56,979,379.86 

LIABILITIES 





894,053.18 

NET ASSETS 56,085,326.68 

Net asset value per share 

Shares outstanding 

206.84 

271,159.00000 


26



STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS 


(in EUR) 

NET ASSETS AT THE BEGINNING OF THE YEAR 134,690,116.55 

INCOME 





247,928.33 

EXPENSES 

Fees: 

- Investment Management fee (see notes) 597,779.44 



(see notes) 645,249.22 


- Annual tax (see notes) 32,469.83 


- Printing and publishing fees 881.92 


1,328,524.49 

NET OPERATING RESULT (1,080,596.16) 


- Sales of investments (see notes) 6,013,602.87 

- Foreign exchange 1,859,786.73 



on: 

- Investments (2,821,371.13) 

- Forward foreign exchange contracts (2,781,560.61) 

NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT 

OF OPERATIONS 

1,189,861.70 

MOVEMENTS IN CAPITAL 

Subscriptions of shares 501,916.18 

Redemptions of shares (80,296,567.75) 

(79,794,651.57) 

NET ASSETS AT THE END OF THE YEAR 56,085,326.68 


27



STATISTICAL INFORMATION 


SHARES 

Shares outstanding at the beginning of the year 669,144.00000 


Redemptions of shares (400,447.00000) 

Shares outstanding at the end of the year 271,159.00000 


EUR 

Highest 208.06 

09.30.09 

Lowest 197.11 

04.30.09 

At the end of the year 206.84 

CHANGES IN THE NUMBER OF SHARES, 

OF NET ASSETS AND 

OF NET ASSET VALUE PER SHARE 

Date 

12.31.07 

12.31.08 

12.31.09 

Number of 

shares 

outstanding 

Net 

Assets 

Ccy 

Net asset 

value 

per share 

966,027.00000 228,413,209.99 

EUR 

236.45 

669,144.00000 134,690,116.55 

EUR 

201.29 

271,159.00000 56,085,326.27 

EUR 

206.84 


28



STATEMENT OF INVESTMENTS IN SECURITIES 

AND OTHER NET ASSETS 


(in EUR) 

Number Description Ccy 

Cost Value 

per 

security 

Market 

value 

(see notes) 

% of 

net 

assets 

INVESTMENT FUNDS 

OPEN-ENDED INVESTMENT FUNDS 

WORLD 

538,058 ERAAM EUROPANEL RESEARCH ALTERNATIVE 

MULTISTRATEGIES II FCP 

1,298.408564 CPIM STRUCTURED CREDIT FUND 1000 INC -AQ1- IN 

LIQUIDATION * 

58,786 MILLENIUM GLOBAL EMERGING CREDIT FD LTD - 

USD- IN LIQUIDATION 1* 

TOTAL WORLD 

EUR 57,340,232.15 105.850 56,953,439.30 101.55 

USD 96,462.33 0.000 0.00 0.00 

USD 5,595,745.22 0.000 0.00 0.00 

63,032,439.70 

56,953,439.30 

101.55 

TOTAL OPEN-ENDED INVESTMENT FUNDS 63,032,439.70 

56,953,439.30 101.55 

TOTAL INVESTMENT FUNDS 63,032,439.70 

56,953,439.30 101.55 

TOTAL INVESTMENTS IN SECURITIES 63,032,439.70 

56,953,439.30 101.55 

Cash/(bank overdraft) (850,271.96) (1.52) 

Other assets/(liabilities) (17,840.66) (0.03) 

TOTAL NET ASSETS 56,085,326.68 100.00 

* discounted securities (see notes) 


29



GEOGRAPHICAL CLASSIFICATION 

OF THE INVESTMENTS IN SECURITIES 


(in %) 

COUNTRIES 

% of 

net 

assets 

World 101.55 

TOTAL INVESTMENTS IN SECURITIES 

101.55 

Other assets/(liabilities) (1.55) 

NET ASSETS 100.00 


30



ECONOMIC CLASSIFICATION 



(in %) 

ECONOMIC SECTORS 

% of 

net 

assets 

Investment funds 101.55 


101.55 




31


EURO LONG /SHORT 



(in EUR) 

ASSETS 

Portfolio: 

(see notes) 

- Cost 39,416,901.00 

- Net unrealised result (478,424.29) 

38,938,476.71 

Cash: 


Other assets: 


39,099,381.97 

LIABILITIES 





253,743.48 

NET ASSETS 38,845,638.49 



129.65 

299,614.00000 


32





(in EUR) 


INCOME 



- Bond interest, net 48,715.91 


64,045.09 

EXPENSES 

Fees: 


- Performance fee (see notes) 186,510.30 



(see notes) 421,060.13 






1,017,742.00 

NET OPERATING RESULT (953,696.91) 


- Sales of investments (see notes) 5,686,037.11 

- Foreign exchange 380,367.23 



on: 

- Investments (2,251,131.71) 

- Forward foreign exchange contracts (539,313.66) 


OF OPERATIONS 

2,322,262.06 


Subscriptions of shares 4,063,692.05 


(37,819,298.45) 



33





SHARES 






EUR 


09.30.09 

Lowest 123.58 

01.30.09 





Date 

12.31.07 

12.31.08 

12.31.09 

Number of 

shares 

outstanding 

Net 

Assets 

Ccy 

Net asset 

value 

per share 

1,196,518.00000 169,706,840.84 

EUR 

141.83 

606,146.00000 74,342,674.88 

EUR 

122.65 

299,614.00000 38,845,638.53 

EUR 

129.65 


34






(in EUR) 


Cost Value 

per 

security 

Market 

value 

(see notes) 

% of 

net 

assets 



WORLD 

365,482.22931 ERAAM EUROPANEL RESEARCH ALT AM LONG 

SHORT II FCP 

TOTAL WORLD 

EUR 39,416,901.00 106.540 38,938,476.71 100.24 

39,416,901.00 

38,938,476.71 

100.24 


38,938,476.71 100.24 


38,938,476.71 100.24 


38,938,476.71 100.24 

Cash/(bank overdraft) 154,297.51 0.40 

Other assets/(liabilities) (247,135.73) (0.64) 



35






(in %) 

COUNTRIES 

% of 

net 

assets 

World 100.24 


100.24 




36






(in %) 


% of 

net 

assets 



100.24 




37


FIXED INCOME 



(in EUR) 

ASSETS 

Portfolio: 

(see notes) 

- Cost 353,211.18 

- Net unrealised result 2,022.80 

355,233.98 

Cash: 


Other assets: 

- Prepaid on Investment 120,000.00 

- Prepaid expenses 24.86 

578,200.79 

LIABILITIES 


- Cash at sight 7.10 


- Taxes and expenses payable 

- Unrealised loss on forward foreign exchange contracts (see notes) 

4,186.06 

1,764.66 

5,957.82 

NET ASSETS 572,242.97 



101.90 

5,616.00000 


38


FIXED INCOME 



(in EUR) 

NET ASSETS AT THE BEGINNING OF THE YEAR 839,650.19 

INCOME 



Bank interest, net 371.13 

2,416.38 

EXPENSES 

Fees: 


- Performance fee (see notes) 620.35 



(see notes) 7,269.27 


- Annual tax (see notes) 280.23 

- Audit and legal fees 197.90 



35,557.79 



- Sales of investments (see notes) 113,959.17 


NET REALISED RESULT 101,829.55 


on: 

- Investments (43,640.41) 



OF OPERATIONS 

24,275.62 



(291,682.84) 

NET ASSETS AT THE END OF THE YEAR 572,242.97 


39


FIXED INCOME 



SHARES 


Subscriptions of shares 0.00000 




EUR 


12.31.09 

Lowest 95.48 

04.30.09 





Date 

12.31.07 

12.31.08 

12.31.09 

Number of 

shares 

outstanding 

Net 

Assets 

Ccy 

Net asset 

value 

per share 

10,517.00000 1,218,302.88 

EUR 

115.84 

8,568.00000 839,650.19 

EUR 

98.00 

5,616.00000 572,243.00 

EUR 

101.90 


40


FIXED INCOME 




(in EUR) 


Cost Value 

per 

security 

Market 

value 

(see notes) 

% of 

net 

assets 



WORLD 

420.0000 BREVAN HOWARD EMERGING MARKETS STRAT 

FUND EURO-A- 

EUR 52,684.40 134.310 56,410.20 9.86 

246.0900 BREVAN HOWARD FUND LTD -A- EUR SHS EUR 27,291.90 252.510 62,140.19 10.86 

530.000000 CAPULA GLOBAL RELATIVE VALUE FUND EUR -E- EUR 71,472.82 137.190 72,710.70 12.71 

33.49 PROLOGUE FEEDER FUND LTD -B- EUR - SERIE EUR 50,050.00 1,518.390 50,850.88 8.89 

INITIAL 

190.0000 BLUETREND FUND LTD -B- USD 24,646.37 251.210 33,065.32 5.78 

46.1537 CQS DIRECTIONAL OPPORT FEEDER FUND LTD -B- USD 53,949.81 2,503.850 80,056.69 13.98 

1B - NNI 

824 MILLENIUM GLOBAL EMERGING CREDIT FD LTD - USD 73,115.88 0.000 0.00 0.00 

USD- IN LIQUIDATION 1* 

TOTAL WORLD 

353,211.18 

355,233.98 62.08 

TOTAL OPEN-ENDED INVESTMENT FUNDS 353,211.18 

355,233.98 62.08 

TOTAL INVESTMENT FUNDS 353,211.18 

355,233.98 62.08 

TOTAL INVESTMENTS IN SECURITIES 353,211.18 

355,233.98 62.08 

Cash/(bank overdraft) 102,934.85 17.99 

Other assets/(liabilities) 114,074.14 19.93 

TOTAL NET ASSETS 572,242.97 100.00 



41


FIXED INCOME 




(in %) 

COUNTRIES 

% of 

net 

assets 

World 62.08 


62.08 

Other assets/(liabilities) 37.92 



42


FIXED INCOME 




(in %) 


% of 

net 

assets 



62.08 




43


DIVERSIFIED 



(in EUR) 

ASSETS 

Portfolio: 

(see notes) 

- Cost 13,980,795.66 

- Net unrealised result 1,256,961.65 

15,237,757.31 

Cash: 


Other assets: 

- Prepaid on Investment 

- Unrealised gain on forward foreign exchange contracts (see notes) 

957,893.11 

1,920.21 

- Unrealised gain on swaps contracts (see notes) 2,368.59 


16,251,497.27 

LIABILITIES 






45,418.29 

42,495.22 

- Unrealised loss on swaps contracts (see notes) 43,762.78 

- Other 981.77 

354,423.33 

NET ASSETS 15,897,073.94 



1,349.45 

11,780.45333 


44


DIVERSIFIED 



(in EUR) 


INCOME 



25,858.25 

EXPENSES 

Fees: 




(see notes) 32,382.10 






168,242.08 



- Sales of investments (see notes) 907,754.42 


NET REALISED RESULT 973,392.92 


on: 

- Investments (633,140.01) 


- Swaps contracts (41,394.19) 


OF OPERATIONS 

11,203.49 




190,198.97 



45


DIVERSIFIED 



SHARES 



Redemptions of shares (98.45650) 



EUR 

Highest 1,360.49 

02.27.09 

Lowest 1,312.24 

04.30.09 

At the end of the year 1,349.45 




Date 

12.31.07 

12.31.08 

12.31.09 

Number of 

shares 

outstanding 

Net 

Assets 

Ccy 

Net asset 

value 

per share 

11,188.47762 15,711,470.87 

EUR 

1,404.25 

11,638.97151 15,695,671.48 

EUR 

1,348.54 

11,780.45333 15,897,073.95 

EUR 

1,349.45 


46


DIVERSIFIED 




(in EUR) 


Cost Value 

per 

security 

Market 

value 

(see notes) 

% of 

net 

assets 

OTHER TRANSFERABLE SECURITIES 

CLOSED-ENDED INVESTMENT FUNDS 

WORLD 

994.845288 POLYGON GLOBAL OPPORTUNITIES USD F NNI - IN 

LIQUIDATION * 

TOTAL WORLD 

USD 86,558.80 55.500 38,247.40 0.24 

86,558.80 

38,247.40 

0.24 

TOTAL CLOSED-ENDED INVESTMENT FUNDS 86,558.80 

38,247.40 0.24 

TOTAL OTHER TRANSFERABLE SECURITIES 86,558.80 

38,247.40 0.24 



EUROPEAN COMMUNITY 

8,149.30 EEA EUROPE LONG SHORT FUND LTD EUR NNI EUR 1,000,070.00 113.310 923,397.18 5.81 

EEA EUROPE LONG SHORT FUND LTD EUR NNI - EUR 31,130.33 0.20 

EQUALISATION 

TT MID-CAP EUROPE LONG/SHORT FUND LTD -A- EUR 6,341.38 0.04 

EQUALISATION 

1,945.2099 TT MID-CAP EUROPE LONG/SHORT FUND LTD -A- IN EUR 480,049.98 256.730 499,393.74 3.14 

REIMBURSEMENT DEC. 

166,671.4684 NBCG FUND SICAV DESMOND - IN REIMBURSEMENT USD 1,011,759.04 8.857 1,022,656.37 6.43 

DEC. 

TOTAL EUROPEAN COMMUNITY 

2,491,879.02 

2,482,919.00 15.62 

UNITED KINGDOM 

2,924.21001 BLACKROCK UK EMERGING COMPANIES HEDGE 

FUND -I- EUR 

718.7542 CAZENOVE UK DYNAMIC ABSOLUTE RETURN 

FUND -C- EUR 

TOTAL UNITED KINGDOM 

EUR 411,778.09 232.887 681,011.02 4.28 

EUR 1,323,498.88 1,825.583 1,312,145.74 8.26 

1,735,276.97 

1,993,156.76 

12.54 

WORLD 

6,678.58 BLUEBAY VALUE RECOVERY FUND LTD EUR CL -S- EUR 837,150.45 76.800 513,000.43 3.23 

* 

3,438.996100 BLUETREND FUND LTD -B- EUR EUR 600,070.00 239.320 823,019.89 5.18 

BREVAN HOWARD EMERGING MARKETS STRAT EUR 25,616.41 0.16 

FUND EURO -A- EQUALISATION 

11,797.9381 BREVAN HOWARD EMERGING MARKETS STRAT EUR 1,340,101.80 134.310 1,584,581.07 9.96 

FUND EURO-A- 

3,794.8501 BREVAN HOWARD FUND LTD -A- EUR SHS EUR 396,861.22 252.510 958,237.60 6.03 

266.8350 DISCUS NON US HOLDING LTD CL -S- EUR - SIDE EUR 34,152.45 63.310 16,893.32 0.11 

POCKET 

8,000.00 MARSHALL WACE MANAGER STRATEGIES GLOBAL EUR 800,050.00 113.090 904,720.00 5.69 

OPPORT FD-EUR 

376.74 NEVSKY FUND LTD -B- UNRESTRICTED EUR 1,072,731.50 3,061.700 1,153,464.86 7.25 

PARUS FUND LTD COMPANY -A- EQUALISATION EUR 25,428.21 0.16 

2,115.21 PARUS FUND LTD COMPANY -A- EUR EUR 600,075.89 304.256 643,564.70 4.05 

535.83 PROLOGUE FEEDER FUND LTD -B- EUR - SERIE EUR 800,050.00 1,518.390 813,598.91 5.12 

INITIAL 

6,560.486128 SECTOR HEALTHCARE FUND -A- EUR 800,050.00 127.740 838,036.50 5.27 

SECTOR HEALTHCARE FUND -A- EQUALISATION EUR 6,707.35 0.04 

1,295.6056 BLUEGOLD GLOBAL FUND INC -A- USD NNI USD 438,320.25 479.710 430,560.70 2.71 

BLUEGOLD GLOBAL FUND INC -A- USD NNI - USD 11,662.97 0.07 

EQUALISATION COTE A 1 USD 

2,511.64 ELBRUS FUND LTD USD CL -AS- SP 

USD 25,160.27 4.070 5,842.36 0.04 

* 

3,653.2725 JABCAP GLOBAL BALANCED FD LTD -D2- REST USD 438,732.15 170.190 430,723.85 2.71 


47


DIVERSIFIED 


Cost Value 

per 

security 

Market 

value 

(see notes) 

% of 

net 

assets 

JABCAP GLOBAL BALANCED FD LTD -D2- REST - USD 12,952.84 0.08 

EQUALISATION 

105,420.5230 NBCG FUND SICAV MALTA TRANSTREND USD USD 667,161.00 8.934 652,494.36 4.10 

80.299236 SOFAER CAPITAL NATURAL RESOURCE HEDGE FD - USD 6,566.70 31.690 1,762.85 0.01 

E- NI 

12,000.0000 TYRUS CAPITAL EVENT FD LTD USD USD 809,847.19 104.722 870,564.97 5.48 

TOTAL WORLD 

9,667,080.87 

10,723,434.15 


15,199,509.91 95.61 


15,199,509.91 95.61 

67.45 


15,237,757.31 95.85 






48


DIVERSIFIED 




(in %) 

COUNTRIES 

% of 

net 

assets 

World 67.69 

European Community 15.62 

United Kingdom 12.54 


95.85 




49


DIVERSIFIED 




(in %) 


% of 

net 

assets 



95.85 




50


EMERGING EUROPEAN CONTINENT 



(in EUR) 

ASSETS 

Portfolio: 

(see notes) 

- Cost 1,277,896.05 

- Net unrealised result 221,514.05 

1,499,410.10 

Cash: 

- Cash at sight 346.82 

Other assets: 

- Prepaid on Investment 

- Formation/reorganisation expenses, net (see notes) 

120,000.00 

6,303.00 

- Unrealised gain on forward foreign exchange contracts (see notes) 1,482.34 


1,627,606.82 

LIABILITIES 






35,191.21 

2,825.27 

148,095.73 

NET ASSETS 1,479,511.09 



81.81 

18,084.00000 


51





(in EUR) 


INCOME 


- Dividends, net 893.48 

Bank interest, net 813.63 

1,707.11 

EXPENSES 

Fees: 


- Performance fee (see notes) 25,950.00 



(see notes) 18,786.75 


- Annual tax (see notes) 711.75 

- Amortisation of formation/reorganisation expenses (see notes) 2,300.00 

- Audit and legal fees 520.40 


- Administration and other expenses 256.70 

66,238.92 



- Sales of investments (see notes) (669,440.49) 

- Foreign exchange (2,597.66) 

NET REALISED RESULT (736,569.96) 


on: 

- Investments 1,039,347.68 



OF OPERATIONS 

257,911.22 



(2,923,934.25) 



52





SHARES 






EUR 

Highest 81.81 

12.31.09 

Lowest 68.82 

02.27.09 





Date 

12.31.07 

12.31.08 

12.31.09 

Number of 

shares 

outstanding 

Net 

Assets 

Ccy 

Net asset 

value 

per share 

103,939.00000 10,868,355.38 

EUR 

104.56 

60,668.00000 4,145,534.12 

EUR 

68.33 

18,084.00000 1,479,513.77 

EUR 

81.81 


53






(in EUR) 


Cost Value 

per 

security 

Market 

value 

(see note) 

% of 

net 

assets 



EUROPEAN COMMUNITY 

2,975.567646 EAST CAPITAL RUSSIAN FUND SEK 155,786.12 1,187.770 344,105.68 23.25 

967.5698 OCCO EASTERN EUROPEAN FUND -A- USD 168,115.58 280.900 188,285.49 12.73 

OCCO EASTERN EUROPEAN FUND -A- 

USD 2,296.97 0.16 

EQUALISATION 

TOTAL EUROPEAN COMMUNITY 

323,901.70 

534,688.14 36.14 

WORLD 

2,070.43786 BLACKROCK MIDDLE EAST & NORTH AFRICA 

OPPORT FD -I- 

EUR 223,284.84 104.175 215,688.88 14.58 

1,750.0000 BREVAN HOWARD EMERGING MARKETS STRAT EUR 175,015.31 134.310 235,042.50 15.88 

FUND EURO-A- 

4,113.93 ELBRUS FUND LTD EUR CL -BS- SP 

EUR 45,668.68 2.880 9,774.69 0.66 

* 

977.80 HORSEMAN EMERGING MARKET OPPORT FUND LTD EUR 200,916.61 165.420 161,747.68 10.93 

EUR -A- 

51.62 NEVSKY FUND LTD -B- UNRESTRICTED EUR 138,978.91 3,061.700 158,044.96 10.68 

14,969.4200 OCCAM UMBRELLA FUND PLC GLOBAL EMERGING EUR 170,130.00 12.320 184,423.25 12.47 

MARKETS -A- 

TOTAL WORLD 

953,994.35 

964,721.96 65.20 


1,499,410.10 101.34 


1,499,410.10 101.34 


1,499,410.10 101.34 






54






(in %) 

COUNTRIES 

% of 

net 

assets 

World 65.20 

European Community 36.14 


101.34 




55






(in %) 


% of 

net 

assets 



101.34 




56


NOTES TO THE FINANCIAL STATEMENTS 


GENERAL 

EUROPANEL SICAV (hereafter “the Company”) is a 

Luxembourg incorporated company with variable capital 

(société d’investissement à capital variable) which was set 

up for an unlimited duration in Luxembourg in the form of 

a public company limited by shares (société anonyme) on 

March 23, 1999 in accordance with the provisions of Part 

II of the Law of December 20, 2002 and the law of August 

10, 1915 on commercial companies (the "Law of August 

10, 1915"). 

The Articles of Incorporation were published in the 

Mémorial C, Recueil spécial des Sociétés et Associations 

(the «Mémorial») on April 24, 1999. 

The Company is registered at the Luxembourg Register of 

Commerce under the number B 68 909. 

The Company is organised as a "multiple Sub-Funds 

company", i.e. composed of Sub-Funds. Each Sub-Fund 

constitutes a separate pool of assets (invested in 

accordance with the particular investment features 

applicable to the Sub-Fund as provided in the Sub-Fund 

Particulars) and liabilities and is represented by a specific 

Class of Shares. 

For each Sub-Fund, the investment policy, the Classes of 

shares issued in respect of such Sub-Fund, the details of 

the offering of such shares and of the management and 

administration of the Sub-Fund are set out in the "Sub- 

Fund Particulars". 

The Company's capital and the net assets of all the Sub- 

Funds are expressed in Euros (EUR). 

As at December 31, 2009, the following Sub-Funds are in 

operation: 

EUROPANEL SICAV – MULTI STRATEGIES 

EUROPANEL SICAV – EURO LONG/SHORT 

EUROPANEL SICAV – FIXED INCOME 

EUROPANEL SICAV – DIVERSIFIED 

EUROPANEL SICAV – EMERGING EUROPEAN 

CONTINENT 

The Board of Directors reserves the right, at any point in 

time, to launch new Sub-Funds in the future. 

On August 31, 2009, the Board of Directors of the 

Company decided to amend the investment policy of the 

sub-funds Europanel Sicav – Euro Long/Short and 

Europanel Sicav – Multi Strategies so that the Sub-Funds 

are organised as a Master-Feeder Structure allocating the 

most substantial part of their assets to the two French 

funds Europanel Long Short II and Europanel 

Multistrategies II. 

SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES 

The financial statements of the Company have been 

prepared in accordance with accounting principles 

generally accepted in Luxembourg, including the 

following significant policies: 

a) Combined financial statements 

The combined financial statements of the Company are 

expressed in Euros (EUR) being the “Reference 

Currency” of the net assets of the Company. The 

financial statements relating to the various Sub-Funds 

are expressed in the Reference Currency of the relevant 

Sub-Fund. 

b) Valuation of the investments in securities 

Securities listed on an official Stock Exchange or 

traded on any other regulated market are valued at the 

last available price in Luxembourg on the principal 

market on which such securities are traded, as provided 

by a pricing service approved by the Board of 

Directors. If such prices are not representative of the 

fair value, such securities as well as other permitted 

assets, are valued at a fair value at which it is expected 

that they may be resold, as determined in good faith by 

and under the direction of the Board of Directors. 

Securities not quoted or dealt in on any regulated 

market are valued at the last available price in 

Luxembourg, unless such price is not representative of 

their true value; in this case, they are valued at a fair 

value at which it is expected that they may be resold, as 

determined in good faith by and under the direction of 

the Board of Directors. 

c) Valuation of investment funds 

Investments in private investment funds are valued 

based on the independently audited net asset values of 

the investee funds, if available. For those investee 

funds which are not publicly traded and independently 

audited financial statements are not yet available or the 

year end of investee fund is non-coterminous, the 

Board of Directors bases its valuation on the investee 

funds’ latest announced (official) net asset values or on 

their latest unofficial net asset values (i.e. which are not 

generally used for the purposes of subscription and 

redemption of shares of the target funds) as provided 

by the relevant administrators if more recent than their 

official net asset values. It is possible that the investee 

funds’results may subsequently be adjusted when such 

results are subject to audit and such adjustments may 

be material to the Fund. 

57


SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES (continued) 

If events have occurred which may have resulted in a 

material change of the net asset value of such share or 

units in other UCI since the day on which the latest 

official net asset value was calculated, the value of 

such shares or units may be adjusted in order to reflect, 

in the reasonable opinion of the Directors, such change 

of value. 

d) Net realised gain or loss on sales of investments 

Realised gains or losses on sales of investments are 

calculated on the basis of average cost of the 

investments sold. 

e) Conversion of foreign currencies 

The accounting records and the financial statements of 

each Sub-Fund are expressed in Euros (EUR). Bank 

accounts, other net assets and market value of the 

investments in securities expressed in currencies other 

than EUR are converted into EUR at the exchange rates 

prevailing on the date of the balance sheet. Income and 

expenses in currencies other than EUR are converted 

into EUR at the rate of exchange prevailing at payment 

date. 

f) Cost of investments in securities 

Cost of investments in securities in currencies other 

than EUR is converted into EUR at the exchange rate 

applicable at purchase date. 

g) Formation expenses 

Formation expenses are amortised on a straight line 

basis over a period of 5 years. 

h) Forward foreign exchange contracts and exchange 

swap contracts 

Forward foreign exchange contracts and exchange 

swap contracts are valued at the forward rate applicable 

at the balance sheet assets date for the remaining period 

until maturity. 

Gains or losses resulting from forward foreign 

exchange contracts and exchange swap contracts are 

recognised in the statement of changes in net assets. 

i) Income and expenses recognition 

Dividends are taken into account on the date upon 

which the relevant investments are first listed as exdividend. 

Interest income is accrued on a daily basis. 

Income is recorded net of withholding tax, if any. 

Expenses are accounted for on an accrual basis. 

Expenses are charged to the Statement of Operations 

and Changes in Net Assets except for expenses 

incurred on the acquisition of an investment which are 

included within the cost of that investment. Expenses 

arising on the disposal of investments are deducted 

from the disposal proceeds. 

EXCHANGE RATES AS AT 

DECEMBER 31, 2009 

1 EUR = 10. 270943 SEK 

1 EUR = 1.443501 USD 

1 EUR = 0. 895666 GBP 

COMMISSIONS ON ISSUE 

AND REPURCHASE OF THE 

COMPANY'S SHARES 

The subscription price per Share is based on the Net Asset 

Value per Share of each Sub-Fund, on any Valuation Day. 

The subscription price of each Sub-Fund will be equal to 

the Net Asset Value per Share of the Sub-Fund concerned 

on the relevant Valuation Day increased by subscription 

charge up to a maximum of 1.5% and increased by a sales 

charge of a maximum of 5% payable to the selling 

agent(s). 

Shares of each Sub-Fund are redeemed at a redemption 

price based on the relevant corresponding Net Asset Value 

per Share of the Sub-Fund concerned on the relevant 

Valuation Day decreased by a redemption fee of a 

maximum of 5% which will be for the benefit of the Sub- 

Fund concerned and is principally intended to cover any 

redemption charges which may be charged by the 

Investment Funds and also to cover the cost of borrowing 

to satisfy redemption cash needs. The redemption price of 

each Sub-Fund may also be decreased by a withdrawal 

charge up to a maximum of 5% which may be used to pay 

recognised agents. Once redemption charges are 

determined for a Sub-Fund, all shareholders of said Sub- 

Fund whose Shares are redeemed on the same Valuation 

Day shall, in principle, pay the same redemption charges. 

Shareholders of each Sub-Fund may ask to convert all or 

part of their shares to shares of another Sub-Fund, at a 

price based on the Net Asset Value per share of the 

relevant Sub-Fund. A conversion fee of a maximum of 5% 

of the converted shares’ net asset value shall be applied 

which will be for the benefit of the Sub-Fund disinvested. 

The conversion fee is principally intended to cover any 

redemption charges which may be charged by the 

Investment Funds and also to cover the cost of borrowing 

to satisfy redemption cash needs. 

58


INVESTMENT MANAGER, 

INTERMEDIARIES, SELLING AGENTS, 

INVESTMENT MANAGER, CUSTODIAN 

AND SPONSOR 

The Board of Directors of the Company has overall 

responsibility for the management and administration of 

the Company, its Sub-Funds and its corresponding 

Classes, for authorising the establishment of Sub-Funds 

and for setting and monitoring their investment policies 

and restrictions. 

In the performance of its duties, the Board of Directors is 

assisted by a Custodian Bank and an Investment Manager. 

Banque Privée Edmond de Rothschild Europe was the 

Investment Manager until September 15, 2009. 

INVESTMENT MANAGEMENT FEES, 

INTERMEDIARIES AND SELLING 

AGENTS FEES 


ASSET MANAGEMENT ("ERAAM") has been 

appointed to act as investment manager of the Company 

(the "Investment Manager"), to keep the investments of the 

Sub-Funds under constant review, to conduct the day-today 

management of the assets of the Company, to identify, 

evaluate, screen, select various Portfolio Managers to the 

Company, to monitor the performance and the investment 

strategy of the Portfolio Managers selected as well as other 

managers under consideration, to allocate and re-allocate 

the Sub-Fund’s assets among the selected Portfolio 

Managers, to monitor the investment policy of each Sub- 

Fund and the investment restrictions of the Company and 

to give such investment advice to the Company, in 

connection with the investment and reinvestment of the 

Sub-Fund’s portfolio, as the Company may request from 

time to time. 


ASSET MANAGEMENT has been approved by the 

"Commission des Opérations de Bourse"(C.O.B.), as of 

the date hereof referred to as the Autorité des Marchés 

Financiers (A.M.F.), on June 24, 2002 under number N° 

GP 02 008. 

In consideration for its services, the Company will pay to 

the Investment Manager a fixed fee as well as a 

performance fee that may be different for each Sub-Fund, 

as described in the prospectus of the Fund. 

The intermediaries' and selling Agents' fees may be part of 

the investment management fee and may be paid by the 

Investment Manager. 

Fixed fees 

The management fixed fee is calculated and accrued 

monthly and paid quarterly in arrears at a rate per annum 

(excluding taxes) of the Sub-Funds’ average Net Asset 

Value over the quarter. The management fixed fee is 

payable whether or not the management of the Sub-Funds 

is profitable. The rates are the following: 

EUROPANEL SICAV - MULTI STRATEGIES: 0.10% p.a. 

(2% before October 2009) 

EUROPANEL SICAV - EURO LONG/SHORT: 0.45% p.a. 

(2.30% before October 2009) 

EUROPANEL SICAV - DIVERSIFIED: 0.95% p.a. 

EUROPANEL SICAV - FIXED INCOME and 

EUROPANEL SICAV - EMERGING EUROPEAN 

CONTINENT: 2.3% p.a. 

Performance fees 

In addition, as long as the Sub-Funds EUROPANEL 

SICAV – MULTI STRATEGIES (until September 30, 

2009), EUROPANEL SICAV – EURO LONG/SHORT 

(until September 30, 2009), EUROPANEL SICAV – 

FIXED INCOME, and EUROPANEL SICAV – 

DIVERSIFIED are in existence, the Investment Manager 

receives, from each Sub-Fund, within five business days of 

the last business day of each twelve-month period starting 

at the beginning of each calendar year an annual 

performance fee of 10% of the appreciation of the Net 

Assets in excess of the appreciation the Net Assets would 

have experienced if they have been invested at a rate equal 

to the sequence of twice the Euro Libor 3 months’ rate 

(code Bloomberg EE0003M taken at the end of preceding 

quarter and kept constant for the current quarter) adjusted 

on a pro temporis basis for subscriptions and redemptions 

made during the period in each Sub-Fund. 

For the purpose of applying the performance fee rate, the 

Investment Manager begins each twelve-month period 

with zero rate gains and the performance fee calculation is 

reset to zero (no loss carry forward from one year to 

another). However, if there are net losses during a twelvemonth 

period, such losses are carried forward in such 

twelve-month period, and must be recovered before a 

further performance fee may be paid during the period. 

Regarding EUROPANEL SICAV – EMERGING 

EUROPEAN CONTINENT, as long as the Sub-Fund is in 

existence, the Investment Manager receives, from the Sub- 

Fund, within five business days of the last business day of 

each twelve-month period starting at the beginning of each 

calendar year an annual performance fee of 10% of the 

appreciation of the Net Assets in excess of the appreciation 

the Net Assets would have experienced if they have been 

invested at a rate equal to the Euro Libor 3 months’ rate 

(code Bloomberg EE0003M taken at the end of preceding 

59


INVESTMENT MANAGEMENT FEES, 

INTERMEDIARIES AND SELLING 

AGENTS FEES (continued) 

quarter and kept constant for the current quarter) adjusted 

on a pro temporis basis for subscriptions and redemptions 

made during the period (the “Performance Index”) in the 

Sub-Fund. 

For the purpose of applying the performance fee rate, the 

Investment Manager begins each twelve-month period 

with zero rate gains and the performance fee calculation is 

reset to zero (no loss carry forward from one year to 

another). 

However, if there are net losses during a twelve-month 

period, such losses are carried forward in such twelvemonth 

period, and must be recovered before a further 

performance fee may be paid during the period. 

CUSTODIAN AND SPONSOR FEES 

Under the terms of an agreement signed on May 3, 1999, 

Banque Privée Edmond de Rothschild Europe acts as 

Custodian, Domiciliary, Registrar, Transfer, Paying and 

Administrative Agent. The appendix of this agreement has 

been amended on January 1, 2008 and January 1, 2009. 

Under the terms of an agreement signed on December 6, 

2001, Banque Privée Edmond de Rothschild Europe acts 

as Co-Sponsor of the Company. 

The Custodian’s and the Sponsor’s fees are part of the 

management fees and are paid by the Investment Manager. 

ANNUAL TAX 

Under the prevailing laws and regulations, the company is 

subject in Luxembourg to a tax at the annual rate of 

0.05%, payable quarterly and calculated on the basis of its 

net assets at the end of each quarter. 

CHANGES IN THE SECURITIES 

PORTFOLIO 

A copy of the changes in the securities portfolio for 

EUROPANEL SICAV is available free of charge at the 

Registered Office of the Company. 

ILLIQUIDITY DISCOUNTS 

As a consequence of the current financial turmoil the 

Board of Directors decided to apply illiquidity discounts 

on relevant positions so as to reflect this new situation (of 

increased counterparty and valuation risks) and so as to 

maintain equal treatment among the Shareholders of the 

Company. 

Discounts have been applied as follows: 

Sub-Fund Securities Discount in % 

at 12.31.08 

Multi strategies CPIM STRUCT CRED 1000- 

AQI- FD/LIQ 

MILLENIUM GLOBAL 

EMERGING 

Fixed Income MILLENIUM GLOBAL 

Diversified 

European 

Emerging 

Continent 

EMERGING 

BLUEBAY VAL RECOV- 

EUR-S- FD/RBT06 

POLYGON GL OPP USD EX 

SHS-F- FD/LIQ 

ELBRUS USD-AS-FD-SP/DIS 

100 

100 

Discount in % 

at 12.31.09 

100 

100 

Total amount of the 

discount at 12.31.09 

28,193 

0 

Amount of the discount 

as a % of the total net 

assets at 12.31.09 

0.05 

0.00 

100 100 0 0.00 

14.4 

9.6 

0 

36 

18.50 

17.50 

297,378 

12,559 

1,789 

ELBRUS EUR-BS-FD-SPIDIS 0 17.50 2,073 0.14 

1.87 

0.08 

0.01 

60


FORWARD FOREIGN EXCHANGE AND SWAP CONTRACTS 

As at December 31, 2009, the following forward foreign exchange and swap contracts were outstanding : 

EUROPANEL SICAV - FIXED INCOME 

Sale Purchase Maturity 

USD 145,000.00 EUR 98,923.44 01.29.10 

USD 13,400.00 EUR 9,053.50 01.29.10 

The net unrealised result on the outstanding forward foreign exchange contracts as at December 31, 2009 for EUROPANEL SICAV - 

FIXED INCOME amounts to EUR -1,764.66 and is included in the statement of net assets of the Sub-Fund. 

EUROPANEL SICAV - DIVERSIFIED 


USD 3,880,000.00 EUR 2,647,054.81 01.29.10 

USD 85,000.00 EUR 57,454.17 01.29.10 

EUR 46,576.62 USD 70,000.00 01.29.10 


DIVERSIFIED amounts to EUR -40,575.01 and is included in the statement of net assets of the Sub-Fund. 


USD 850,000.00 EUR 565,215.95 01.29.10 

USD 580,000.00 EUR 404,200.90 01.29.10 

USD 1,190,000.00 EUR 804,358.41 01.29.10 

The net unrealised result on the outstanding swap contracts as at December 31, 2009 of EUROPANEL SICAV - DIVERSIFIED 

amounts to EUR -41,394.19 and is included in the statement of net assets of the Sub-Fund. 

EUROPANEL SICAV - EMERGING EUROPEAN CONTINENT 


USD 255,000.00 EUR 173,968.81 01.29.10 

SEK 2,930,000.00 EUR 286,830.28 01.29.10 

SEK 400,000.00 EUR 38,828.54 01.29.10 


EMERGING EUROPEAN CONTINENT amounts to EUR -1,342.93 and is included in the statement of net assets of the Sub-Fund. 

61

EUROPANEL SICAV - Banque Privée Edmond de Rothschild Europe

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