Universe, The CMI Global Network Fund - Clerical Medical

Universe, The CMI Global Network Fund
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL
Universe, The CMI Global Network Fund, (the "Company’’) was incorporated as an investment fund in the Grand Duchy of Luxembourg on 12 April
1990 and commenced its activities on 1 June 1990. The articles of incorporation were amended for the last time by notarial deed of 25 July 2005
published in the Mémorial on 24 August 2005. The Company qualifies as an investment company with variable capital (’’Société d’Investissement
à Capital Variable’’ or ‘‘SICAV’’) regulated under the part I of the law of 20 December 2002. The Company is established for an undetermined
duration. The Company comprises 30 sub-funds, each relating to a separate investment portfolio comprising securities, cash, other assets and
liabilities.
2. SIGNIFICANT ACCOUNTING POLICIES
The Financial Statements are presented in accordance with Luxembourg regulations relating to investment funds.
The following is a summary of the significant accounting policies adopted by the Company:
(a) Valuation of Securities:
All securities in the investment portfolios are quoted on a recognised stock exchange, or dealt in on another regulated market. Financial
instruments, which comprise short-term certificates of deposit and commercial paper, are valued at cost as it is intended to hold these
instruments until maturity. The difference between the cost and the maturity value is recognized as interest income over the year. In
these financial statements, securities and financial derivative instruments have been valued using the closing prices on 29 September
2010 for securities listed in the American continent’s stock exchange, prices at 1 p.m. (CET) on 30 September 2010 have been used
for securities listed in the European stock exchange and closing prices on 30 September 2010 for securities listed in eastern countries’
stock exchange.
It should be noted that the valuation of the investments based on the closed prices (for all markets) as at 30 September 2010, if used,
would have not been materially different.
(b) Translation of Foreign Currencies:
Transactions in foreign currencies are converted into the currency of the sub-fund at the exchange rate ruling at the date of the
transactions. Assets and liabilities are converted into the currency of the sub-fund at the exchange rate ruling at the balance sheet date
at 9.30 am or 12.30 pm (CET).
The combined statements of net assets, operations and changes in net assets are presented in euro (EUR), based on the closing
exchange rate prevailing at the balance sheet date.
(c) Allocation of Expenses:
(d) Income:
Each sub-fund is charged with the expenses directly attributable to it. Expenses not attributable to a particular sub-fund are normally
allocated to the sub-funds so that each one is charged with the same amount.
Dividends are recognised on an ex-dividend basis, net of withholding taxes in the country of origin. Interest is recognised on an accruals
basis.
(e) Profit and Loss from Sales of Securities:
(f) Equalisation:
The realised profit and loss arising on sales of securities is based on the average cost of the securities.
The Company uses the accounting practice of equalisation, by which a portion of the proceeds from subscriptions and costs of
redemptions of shares, equivalent on a per share basis to the amount of undistributed net investment income on the date of the
transaction, is credited or charged to undistributed income. On payment of a dividend the balance on the equalisation account is
included in the amount available for distribution. As a result, undistributed net investment income per share is unaffected by
subscriptions and redemptions of shares.
g) Valuation of futures
The valuation of futures admitted to an official listing or any other organised market is based on the last known price or, if the futures are
traded on more than one market, on the basis of the last known price in the market on which the contract was concluded by the SICAV.
Futures that are not listed or traded on a stock exchange or any other organised market will be valued at their probable market value
estimated conservatively and in good faith.
3. MANAGEMENT FEES
The Company has appointed as ‘‘Management Company’’, CMI Asset Management (Luxembourg) S.A., a company incorporated under the laws of
Luxembourg on 22 December 1988. The Management Company is responsible for the day to day management of the investments and is entitled
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