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ALTUS TRUST : GLOBAL OPPORTUNITIES

EQUITY FUND

ALTUS

REPORTS AND FINANCIAL STATEMENTS (UNAUDITED)

FOR PERIOD FROM JANUARY 30, 2010 TO JULY 30, 2010

ALTUS TRUST : GLOBAL OPPORTUNITIES EQUITY FUND ALTUS

2

Contents

Pages

Administration 3

Statement of financial position 4

Statement of comprehensive income 5

Statement of changes in net assets attributable to holders of redeemable participating units 6

Statement of cash flows 7

Notes to the financial statements 8-45

Schedule of investments 46-47

Distribution statement 48

Statement of movements in Schedule of investments 49

Performance table 50


3

ADMINISTRATION

Trustee Manager HSBC Trustee (Cayman) Limited Lyxor Asset Management PO BOX 484 Tour Société Générale HSBC House, 17 Cours Valmy 68 West Bay Road, 92987 Paris-La Défense Grand Cayman KYI-1106 France Cayman Islands Registered Office Custodian HSBC Trustee (Cayman) Limited Société Générale PO BOX 484 29 boulevard Haussmann HSBC House, 75009 Paris 68 West Bay Road, France Grand Cayman KYI-1106 Cayman Islands Guarantor Auditors Société Générale PricewaterhouseCoopers 29 boulevard Haussmann P.O. Box 258GT 75009 Paris Strathvale House France George Town Grand Cayman KY1 – 1104

Cayman Islands


4

STATEMENT OF FINANCIAL POSITION

AS AT JULY 30, 2010

JULY 30, JANUARY 29,

Note 2010 2010

USD USD

Assets

Cash and cash equivalents 2(i) 0.00 112.79

Financial assets at fair value through profit or loss 1, 2(d), 8 2,620,745.47 2,582,540.35

Other receivable 100,022.35 0.00

Total assets 2,720,767.82 2,582,653.14

Liabilities

Due to the bank 2(i),5 99,936.54 0.00

Accrued expenses and other payables 2(k) 574.47 587.18

Liabilities (excluding net assets attributable 100,511.01 587.18

to holders of redeemable participating units)

( )

Net assets attributable to holders 2,620,256.81 2,582,065.96

of redeemable participating units

Total Liabilities 2,720,767.82 2,582,653.14

The accompanying notes form an integral part of these financial statements.


5

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM JANUARY 30, 2010 TO JULY 30, 2010

JULY 30, JANUARY 29, Note 2010 2010 USD USD Revenue Dividend Income 0.00 1,492.29 Realised gain/(loss) on investments 285,184.54 (601,118.12)

Net change in unrealised gain/(loss) on investments (178,574.81) 677,085.69

Net gain/(loss) on financial assets 2(d) 106,609.73 75,967.57 at fair value through profit or loss

Total Investment Income/(loss) 106,609.73 77,459.86

Expenses Management and other fees 3 (1,283.90) (2,893.70)

Total Operating expenses (1,283.90) (2,893.70) Operating profit/(loss) 105,325.83 74,566.16 Finance costs Distribution to holders of redeemable participating units 2(l) 0.00 0.00

Increase/(decrease) in net assets attributable 105,325.83 74,566.16 to holders of redeemable participating units from operations



6

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING UNITS


JULY 30, JANUARY 29,

Note 2010 2010

USD USD

Net assets attributable to holders of redeemable 2,582,065.96 3,550,276.55

participating units at beginning of the period

Proceeds from redeemable participating units issued 6 0.00 0.00

Redemptions of redeemable participating units 6 (67,134.98) (1,042,776.75)

Total 2,514,930.98 2,507,499.80

Increase/(decrease) in net assets attributable to holders 105,325.83 74,566.16

of redeemable participating units from operations

( )

Net assets attributable to holders of redeemable 7 2,620,256.81 2,582,065.96

participating units at end of the period



7

STATEMENT OF CASH FLOWS


JULY 30, JANUARY 29, 2010 2010 USD USD Cash flows from operating activities

Purchase of financial assets (5,127,374.57) (13,738,086.24)

Proceeds from sale of financial assets (including realized gains) 4,782,893.09 15,895,982.89

Dividend Income 0.00 1,492.29

Amount paid on financial assets (300,023.91) 0.00

Amount received on financial assets 612,887.65 (1,113,356.34)

Operating expenses paid (1,296.61) (3,216.94)

Net cash (outflow)/inflow from operating activities (32,914.35) 1,042,815.66

Cash flows from financing activities

Distributions paid to holders of redeemable participating units 0.00 0.00

Proceeds from redeemable participating units issued 0.00 0.00

Redemptions of redeemable participating units (67,134.98) (1,042,776.75)

Net cash (outflow)/inflow from financing activities (67,134.98) (1,042,776.75)

Net increase/(decrease) in cash and cash equivalents (100,049.33) 38.91

Cash and cash equivalents at the beginning of the period 112.79 73.88

Cash and cash equivalents at the end of the period (99,936.54) 112.79



8

NOTES TO THE FINANCIAL STATEMENTS

Note to the attention of the reader

The notes stated on the left of the financial statements are references to the Appendix E of the Code of

Units Trust and Mutual Funds of the Securities and Futures Commission in Hong-Kong.

1 Fund’s principal activity

Altus Trust (the "Trust") was formed by a Trust Deed dated May 2, 2002 and registered as an exempted

trust under the Trusts Law of the Cayman Islands on May 9, 2002. The Trust was registered as a

mutual fund under the Mutual Funds Law of the Cayman Islands on 15th May 2002. Altus Trust: Global

Opportunities Equity Fund (the "Fund") is a sub-fund of the Trust and was formed by a Supplemental

Deed dated April 7, 2004.The Fund is a sub-fund of the Trust and accordingly under the laws of the

Cayman Islands does not require separate registration as a mutual fund since it falls under the

umbrella registration of the Trust. The Fund commenced operations in May 2004. The Fund is

authorised by the Securities and Futures Commission in Hong Kong and is required to comply with the

Code on Unit Trusts and Mutual Funds established by the Securities & Futures Commission of Hong

Kong.

The Investment Objective of the Fund is to provide investors with :

�� a predetermined First Year Cash Payout of 10% of US$ 10.40 (i.e. US$ 1.04 per unit) in respect of

Units held as at the First Year Cash Payout Date; and

�� the potential for capital growth linked to the Performance of the Managed Portfolio measured

over the life of the Fund up until the applicable Maturity Date (means the earlier of the

anniversary of the Launch Date on or after May 12, 2006 on which the Performance of the

Managed Portfolio is equal to or greater than 45% since the Launch Date; and the 10th

anniversary of the Launch Date, being May 12, 2014, or if the determination of the Net Asset

Value of the Fund is suspended on that day, the Business Day next following the lifting of such

suspension.).

The Managed Portfolio will be comprised of 20 stocks which are managed during the life of the Fund in

accordance with the Manager’s dynamic investment strategy. The Fund’s holding of Stocks are

reduced throughout the Fund’s investment period as the performance of the best performing Stock is

locked-in on each Observation Date, resulting in the Fund’s divestment of such Stock. Investors should

note that the Realisation Price per Unit on the applicable Maturity Date will be fully exposed to the

Performance of the Managed Portfolio measured over the life of the Fund up until the relevant Maturity

Date.


9

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

The Basket of Stocks is initially composed of the following stocks:

Name of Stock Relevant Stock Exchange

BANK OF AMERICA CORP New York Stock Exchange

CHEVRONTEXACO CORP New York Stock Exchange

COCA-COLA CO/THE New York Stock Exchange

ENDESA S.A. Spanish Continuous

ENEL SPA Milan Stock Exchange

ENI SPA Milan Stock Exchange

GENERAL MOTORS CORP New York Stock Exchange

IBERDROLA SA Spanish Continuous

KELLOGG CO New York Stock Exchange

MATSUSHITA ELECTRIC INDUST Tokyo Stock Exchange

NESTLE SA-REGISTERED VIRT-X

NIPPON TELEGRAPH & TELEPHONE Tokyo Stock Exchange

NISSAN MOTOR Tokyo Stock Exchange

SARA LEE CORP New York Stock Exchange

SOUTHERN CO New York Stock Exchange

TAKEDA CHEMICAL INDUSTRIES Tokyo Stock Exchange

TIM SPA Milan Stock Exchange

TOTAL SA Paris Stock Exchange

TOYOTA MOTOR CORP Tokyo Stock Exchange

UNICREDITO ITALIANO SPA Milan Stock Exchange

The terms definitions and the details of the investment objectives are set in the Fund Specific

Memorandum.

On Launch Date, the Fund has invested at least 90% of its assets in the Managed Portfolio, composed

of the 20 equally weighted stocks; the balance of the Fund’s assets may be invested in short term

deposits and other investments permitted by the Fund’s investment restrictions.

Unitholders are entitled to request the realisation of their Units on each Dealing Day during the life of

the Fund at the then prevailing Realisation Price per Unit (calculated by reference to the applicable Net

Asset Value per Unit).

In particular, from the 2nd anniversary of the Launch Date onwards, if the Performance of the

Managed Portfolio is equal to or greater than 45% since the Launch Date, the Fund will mature.

Unitholders who realise their Units on a Maturity Date will be entitled to receive a Realisation Price per

Unit as at the applicable Maturity Date which is guaranteed to be equal to the higher of:

(i) the then prevailing Net Asset Value per Unit; or

(ii) US$ 10.40 x (100% + Performance of the Managed Portfolio as at the Maturity Date)


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Société Générale entered into a deed of guarantee for the benefit of Unitholders pursuant to which it

will guarantee:

�� payment of the First Year Cash Payout in respect of Units held as at the First Year Cash Payout

Date; and

�� payment of a Realisation Price per Unit calculated by reference to the Net Asset Value per Unit in

accordance with the formula set out above in respect of Units held and realised on the

applicable Maturity Date. Investors should note that this does not amount to a capital guarantee

in respect of an investor’s original investment in the Fund and the Realisation Price per Unit on

the Maturity Date will be fully exposed to the Performance of the Managed Portfolio as at the

relevant Maturity Date.

2 Summary of significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out

below.

(a) Basis of preparations

These financial statements have been prepared on the historical cost basis, except for the

revaluation of financial assets and liabilities at fair value through profit or loss and in

accordance with International Financial Reporting Standards. The preparation of financial

statements in accordance with International Financial Reporting Standards requires

management to make estimates and assumptions that affect the reported amounts of assets

and liabilities and disclosure of contingent assets and liabilities at the date of the financial

statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from the estimates included in the financial statements.

Standards, amendments and interpretations effective in the financial year ending January 31,

2011 but not relevant for the Fund’s operations:

The following interpretation to existing standards has been published and is mandatory for the

Fund’s accounting periods beginning on or after February 1, 2009 or later periods but is not

relevant for the Fund’s operations:

�� IAS 23 (amendment), ‘Borrowing costs’;

�� IAS 39 and IFRIC 9 (amendments), ‘Embedded derivatives’ (effective for all periods ending

on or after June 30, 2009);

�� IAS 39 and IFRS 7 (amendments), ‘Reclassification of financial assets’;

�� IFRS 1 (amendment), ‘First-time adoption of IFRS’, and IAS 27, ‘Consolidated and separate

financial statements’;

�� IFRS 2 (amendment), ‘Share-based payment’;


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�� IFRS 8, ‘Operating segments’ and

�� IFRIC 15, ‘Agreements for construction of real estates’.

Standards, amendments and interpretations to existing standards that are not yet effective

and not relevant for the Fund’s operations:

The following interpretations are mandatory for the Fund’s accounting periods beginning on or

after July 1, 2009 or later periods but are not relevant for the Fund’s operations:

�� IAS 27 (revised), ‘Consolidated and separate financial statements’ (effective from July 1,

2009);

�� IAS 39 (amendment), ‘Financial instruments: Recognition and measurement’ (effective from

July 1, 2009);

�� IFRS 1 (amendments), ‘Additional exemptions for first-time adopters’ (effective from

January 1, 2010);

�� IFRS 2 (amendments), ‘Group cash-settled share-based payment transactions’ (effective

from January 1, 2010);

�� IFRS 3 (revised), ‘Business combinations’ (effective from July 1, 2009);

�� IFRS 9, ‘Financial instruments: classification and measurement’ (effective from 1 January

2013);

�� IFRIC 17, ‘Distributions of non-cash assets to owners’ (effective from July 1, 2009); and

�� IFRIC 18, ‘Transfers of assets from customers’ (effective from July 1, 2009).

All references to net assets throughout this document refer to net assets attributable to holders

of redeemable participating units unless otherwise stated.

(b) Segment reporting

A business segment is a group of assets and operations engaged in providing products or

services that are subject to risks and returns that are different from those of other business

segments. A geographical segment is engaged in providing products or services within a

particular economic environment that is subject to risks and returns that are different from

those of segments operating in other economic environments.

The Fund is invested in securities traded on regulated markets and in a Euro Medium Term Note

(“EMTN”). In addition, the Cash and cash equivalent is managed so as always be more or less

equal to nil. It is therefore not relevant to proceed to a segment analysis.


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(c) Functional and presentation currency

Items included in the Fund’s financial statements are measured using the currency of the

primary economic environment in which it operates (‘the functional currency’).

This is the US dollar, which reflects the Fund’s primary activity of investing in international

assets and the fact that the units are issued in US dollars.

The presentation currency is the same as the functional currency.

(d) Financial assets and liabilities at fair value through profit or loss

Classification

Financial assets and liabilities have been designated by management at fair value through profit

or loss at inception.

Recognition and derecognition

Regular-way purchases and sales of investments are recognised on trade date – the date on

which the Fund commits to purchase or sell the asset. Financial assets and liabilities are

derecognised when the rights to receive cash flows from the securities have expired or have

been transferred and the Fund has transferred substantially all risks and rewards of ownership.

Measurement

Investments are initially recognised at fair value and transaction costs for all financial assets

and financial liabilities carried at fair value through profit or loss are expensed as incurred.

Gains and losses arising from changes in the fair value of the ‘financial assets at fair value

through profit or loss’ category are included in the statement of comprehensive income in the

period in which they arise.

The investments comprise an Euro Medium Term Note (EMTN) and equities. The EMTN has been

issued by SGA Société Générale Acceptance N.V. and is guaranteed by Société Générale.

Fair value estimation

Listed investments (ie: equities of the basket) are valued at the official close of business bid

price on the principal regulated market.


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The Euro Medium Term Note (EMTN) is valued at its fair market value as determined in good

faith by the Counterparty using a pricing methodology taking into account observable market

data such as time value, intrinsic value, interest rates and dividends and non observable market

data such as correlation between the constituents of the Basket of Stocks and volatility.

The Manager is also able to determine the EMTN price, using its own written pricing

methodology which consists in computing a set of parameters (observable traditional market

datas such as interest rates, non observable implicit datas such as volatility and correlation) in

an independent pricing tool (which is also commonly used by market participants). The pricing

is conducted by a dedicated team. The general methodology used is a Monte Carlo approach

with 10 thousands paths. Market data such as stock prices, dividends, interest rates, swap rates,

or historical volatility are gathered through BLOOMBERG. Volatility matrices are gathered

through TOTEM.

To minimise risks, should there be any doubt as to the valuation, the Manager will request an

independent person to review the value of the EMTN to ensure the price quoted is fair.

The resulting unrealised gains and losses on investments are recognised in the statement of

comprehensive income. Security transactions are accounted for on the trade date (the date on

which the order to buy or sell is executed). Realised gains and losses on sales of securities are

calculated on an average cost basis and are recorded in the statement of comprehensive

income.

The Fund adopted the amendment to IFRS 7, effective January 1, 2009. This requires the Fund to

classify fair value measurements using a fair value hierarchy that reflects the significance of the

inputs used in making the measurements. The fair value hierarchy has the following levels:

�� Level I – Unadjusted quoted prices in active markets that are accessible at the measurement

date for identical, unrestricted assets or liabilities. The type of investments which would

generally be included would include equities and derivatives listed on a securities

exchange.

�� Level II – Quoted prices in markets that are not considered to be active or financial

instruments for which all significant inputs are observable, either directly or indirectly

(including quoted prices for similar investments in active markets, interest rates and yield

curves, credit risks, etc.). The type of investments which would generally be included in this

category would include corporate bonds, bank debt and certain over-the-counter

derivatives.

�� Level III – Prices or valuations that require inputs that are both significant to the fair value

measurement and unobservable. The type of investments which would generally be

included in this category would include private or debt securities issued by private entities.

The inputs or methodology used for valuing securities are not necessarily an indication of

the risks associated with investing in those securities.


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(e) Foreign exchange

Foreign currency transactions are translated into USD using the exchange rates prevailing at the

dates of the transactions. Foreign exchange gains and losses resulting from the settlement of

such transactions and from the translation at year-end exchange rates of assets and liabilities

denominated in foreign currencies are recognised in the statement of comprehensive income

and included in realised and unrealised gains/(loss) on investments.

(f) Investment income and expenses

Dividend income on equity is credited to Dividend Income in the statement of comprehensive

incomewhen the security is quoted as ex-dividend.

All expenses are accounted for on an accrual basis.

(g) Redeemable participating units

The Fund issues redeemable units which are redeemable at the holder’s option and are

classified as financial liabilities in accordance with IAS 32, ‘Financial Instruments – Presentation’.

Redeemable units can be put back to the Fund at any time for cash equal to a proportionate

share of the Fund’s net asset value.

The redeemable unit is carried at the redemption amount that is payable at the statement of

financial position date if the holder exercises the right to put the unit back to the Fund.

Redeemable units are issued and redeemed at the holder’s option at prices based on the Fund’s

net assets value per unit at the time of issue or redemption. The Fund’s net asset value per unit

is calculated by dividing the net assets attributable to the holders of redeemable units with the

total number of outstanding redeemable units.

(h) Proceeds and payments on issue and redemption of units

The net asset value of the Fund is computed bi-monthly and at the end of each month.

Prices for issues and redemptions are based on the latest available underlying prices on the day

immediately preceding the valuation day (usually the underlying closing prices).

Proceeds and payments for units issued and redeemed during fund life are shown as

movements in the statement of changes in net assets attributable to holders of redeemable

participating units.


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(i) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held and other short-term highly

liquid investments with original maturities of three months or less.

For the purpose of the statement of cash flows, cash and cash equivalents comprise bank

balances net of bank overdrafts.

(j) Pre-operation costs

There were no pre-operation costs incurred by the Fund.

(k) Accrued expenses and other payables

Accrued expenses and other payables are recognised initially at fair value and subsequently

stated at amortised cost using the effective interest method.

(l) Finance costs

Distributions to holders of redeemable units and other finance costs such as interest expenses

are recognised in the statement of comprehensive income as finance costs.

(m) Critical accounting estimates and judgements

Management makes estimates and assumptions concerning the future. The resulting

accounting estimates will, by definition, seldom equal the related actual results.

Estimates and assumptions that have a significant risk of causing a material adjustment to the

carrying amounts of assets and liabilities within the next financial year are outlined below.

Fair value of derivative financial instruments

The Fund may, from time to time, hold financial instruments that are not quoted in active

markets, such as over-the-counter derivatives. Fair values of such instruments are determined

by using valuation techniques. Where valuation techniques are used to determine fair value,

they are validated and periodically reviewed by experienced personnel at the Manager's.

The Fund's financial assets and financial liabilities are held for the purpose of being traded or

are expected to be realised within one year.


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3 Fees

Management fees

The Manager is entitled to receive from the Fund a quarterly management fee (payable in arrears)

accrued on and calculated as at each Valuation Day at the current rate of 0.10% percent per annum of

the Net Asset Value of the Fund. Management Fees are accounted for on an accrual basis.

The rate of the annual management fee will not be increased during the life of the Fund.

The Manager may share any fees it receives with distributors or agents procuring subscriptions in the

Fund.

The Manager and other companies within the Manager's group may with the prior written consent of

the Trustee deal with the Fund, both as principal and agent, and, subject as provided above, may

retain any benefit which they receive as a result.

The Manager, at its discretion, was entitled to an initial sales charge of 4 percent of the issue price of

each Unit subscribed during and after the close of the Initial Offer Period. The Manager may re-allow

or pay all or part of the initial sales charge (and any other fees it receives) to recognised intermediaries

or such other persons as the Manager may at its absolute discretion determine.

Trustee's Fees, Hong Kong Representative Fees, Auditors’ Fees, Custodian Fees,

Guarantor’s fees and Registrar’s Agent Fees

The Trustee fees, Hong Kong Representative fees, Auditors' fees, Custodian fees, Guarantor’s fees and

Registrar’s Agent fees will be paid by the Manager.

Establishment Costs and Expenses

The preliminary establishment expenses of the Fund, including the legal fees, the costs and expenses

in obtaining authorisation of the Fund in Hong Kong and in the Cayman Islands, the preparation, the

translation and the printing of the Explanatory Memorandum are estimated to be approximately

US$100,000. Such fees were paid upfront and were accounted for during the first financial year of the

Fund.

4 Taxation

No provision for Hong Kong profits tax has been made as interest, dividend income and realised gains

on disposal of investments of the Fund are excluded from the charge to profits tax under either

sections 14, 26 or 26A of the Inland Revenue Ordinance.

Under Cayman Island Law, there is no income, withholding, or capital gains taxes payable by the Fund.


17


5 Bank loans, overdrafts and other borrowings

Bank overdrafts total USD 99,936.54 as presented in the Statement of financial position as at

July 30, 2010.

There were no bank loans, overdrafts and other borrowings as at January 29, 2010.

6 Redeemable participating units in issue

For the period from

January 30, 2010 to For the year ended

July 30, 2010 January 29, 2010

Units outstanding at the beginning of the period 233,867.830 331,796.000

Units issued 0.00 0.000

Units redeemed (6,030.760) (97,928.170)

Units outstanding at the end of the period 227,837.070 233,867.830

7 Net asset value per unit

As at July 30, As at January 29,

2010 2010

Net assets attributable to holders of 2,620,256.81 2,582,065.96

redeemable participating units

Number of units in issue 227,837.07 233,867.83

Net asset value per unit 11.50 11.04

8 Transactions with Manager and its related parties

(a) Investment transactions with related parties of the Manager

The following is a summary of the transactions entered into during the year between the Fund and the

Manager and its related parties in addition to those disclosed in note 3.

Related parties of the Manager are those as defined in the Code on Unit Trusts and Mutual Funds

established by the Securities & Futures Commission of Hong Kong. All such transactions were entered

into in the ordinary course of business and on normal commercial terms.


18


Investment transactions with related parties of the Manager:

% of the Aggregate value of % of the Fund's total Average purchases and Fund's total commission rate of Name of company sales of securities transactions paid in the year commission USD % For the period from January 30, 2010 to July 30, 2010 Société Générale 9,910,267.66 100.00 0.00 0.00 Year ended January 29, 2010 Société Générale 29,634,069.13 100.00 0.00 0.00

The Manager, Lyxor Asset Management, is also a 100% subsidiary of Société Générale.

In addition to the transactions shown above, the Fund may also receive/pay other amounts on

financial assets/financial liabilities from/to a related party.

(b) The Fund utilises the brokerage, custodian, agency and banking services of Société

Générale, related parties of the Manager.

9 Soft commission arrangements

During the year, the Manager and its related parties did not enter into any soft commission

arrangements with brokers.

10 Stock lending arrangements

There are no stock-lending arrangements.

11 Commitments

There are no commitments.

12 Negotiability of assets

The Fund’s assets are not restricted by statutory or contractual requirements and therefore are freely

negotiable.

13 Contingent liabilities

There are no contingent liabilities.


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14 Post-statement of financial position event

There are no post-statement of financial position events

15 Financial Risk Disclosures

(a) Concentration of risks

As at July 30, 2010, the Fund is mainly invested in quoted securities and an EMTN: it is therefore

exposed to a variety of financial risks: market risk (including currency risk, interest rate risk and

price risk), credit risk, counterparty risk and liquidity risk. Investors should be aware that the

risks of the Fund will depend to a great extent on the risk of its underlying assets.

(b) Market risk

The Fund is subject to market fluctuations and to the risks inherent in all investments. The

Realisation Price of Units and the income from them may go down as well as up.

On a bi-monthly basis, the Manager performs a first set of controls including coherence

controls on the NAV of the Fund and checks on the prices provided by the counterparty.

Under the supervision of its Risk Management Department, the Manager performs an overall

measurement of these risks. Such analysis is done through a Modified Value at Risk (MVaR)

methodology which aims at defining the maximum bi-monthly decrease of the Fund’s NAV

under normal market conditions. To properly compare emerging markets stocks, low liquid

stocks, hedge funds or private equity, the Manager is using a customized VaR since the

standard deviation of the original VaR methodology is not adequate. As these asset returns are

not normally distributed, the MVaR is a better measure as it accounts for standard deviation,

skewness and kurtosis at a given confidence level. The Manager computes its MVaR analysis

with its own IT systems using historical data (with a minimum limit set at 40 dates under which

the calculation is considered not relevant). MVaR is calculated based on historical NAVs since

the fund’s inception and the confidence level used for the calculation is set at 99 %. The main

limit of this analysis might be its reliance on historical data to simulate a future performance.

The MVaR methodology covers the measurement of market price risk, interest rate risk and

foreign currency risk.

As at July 30, 2010, in normal market conditions, the maximum bi-monthly decrease of Altus

Trust: Global Opportunities Equity Fund’s NAV should not be greater than 6.80% with a

confidence level of 99 % (6.86 % in January 29, 2010).

As mentioned above, the market risk of the Fund is linked to the market risk of its underlying

assets. To mitigate these risks, the underlying basket of stocks is composed of large

corporations from OECD countries and is diversified in various economic sectors.


20


Market price risk

In order to achieve its investment objective, the Fund invests in an EMTN and a basket of

equities to capture the potential growth of these companies selected by the Manager at its

absolute discretion.

All securities investments present a risk of loss of capital. The maximum risk resulting from

financial instruments is determined by the fair value of the financial instruments.

Equities are valued at the official close of business bid price on their principal regulated market.

As stated in Note 2d, the EMTN is valued at its fair market value as determined in good faith by

the Counterparty using a pricing methodology taking into account observable market data and

non observable market data. An independent valuation is performed by the Manager of the

Fund.

Interest rate risk

The Fund’s financial assets and liabilities are mostly non-interest bearing with the exception of

the EMTN. As a result, the Fund is not subject to significant amounts of risk due to fluctuations

in the prevailing levels of market interest rates. Any excess cash and cash equivalents are

invested at short-term market interest rates.

The tables below summarise the Fund's exposure to interest rate risks. It includes the Fund's assets

and trading liabilities at fair values:

At July 30, 2010 1 – 3 3 months - 1 - 5 More than Non interest

(in USD) months 1 year years 5 years bearing Total Asset :

Financial assets at fair value - - 187,567.53 - 2,433,177.94 2,620,745.47

through profit or loss

Cash and cash equivalents - - - -

Other receivable - - - - 100,022.35 100,022.35

Total Assets - - 187,567.53 - 2,533,200.29 2,720,767.82

Liabilities :

Accrued expenses and - - - - 574.47 574.47

other payables

Due to the bank - - - - 99,936.54 99,936.54

Redeemable shares - - - - 2,620,256.81 2,620,256.81

Total liabilities - - - - 2,720,767.82 2,720,767.82

Total interest sensitivity gap - - 187,567.53 - (187,567.53) -


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At January 29, 2010 1 – 3 3 months - 1 - 5 More than Non interest

(in USD) months 1 year years 5 years bearing Total

Asset :

Financial assets at fair value - - 258,614.17 - 2,323,926.18 2,582,540.35


Cash and cash equivalents - - - - 112.79 112.79

Total Assets - - 258,614.17 - 2,324,038.97 2,582,653.14

Liabilities :

Accrued expenses and - - - - 587.18 587.18

other payables

Redeemable shares - - - - 2,582,065.96 2,582,065.96

Total liabilities - - - - 2,582,653.14 2,582,653.14

Total interest sensitivity gap - - 258,614.17 - (258,614.17) -

Currency risk

The Fund will have exposure to fluctuations in currency exchange rates where it invests directly

or indirectly in securities denominated in currencies other than US dollars. It may, in part, seek

to offset the risks associated with such exposure through foreign exchange transactions.

The markets in which foreign exchange transactions are effected are highly volatile, highly

specialised and highly technical. Significant changes including changes in liquidity and prices

can occur in such markets within very short periods of time often within minutes. Foreign

exchange trading risks include, but are not limited to, exchange rate risk, interest rate risk and

potential interference by foreign governments through regulation of local exchange markets,

foreign investment or particular transactions in foreign currency.

At July 30, 2010, the Fund had the following currency exposures (expressed in USD and monetary and

non-monetary items):

USD EUR JPY

Financial assets at fair value 636,214.74 1,544,669.17 439,861.56


Other assets 100,022.35 - -

Other liabilities (100,511.01) - -

Net exposure 635,726.08 1,544,669.17 439,861.56


22


At January 29, 2010, the Fund had the following currency exposures (expressed in USD and monetary

and non-monetary items):

USD CHF EUR JPY Financial assets at fair value 258,614.17 433,351.52 1,411,175.05 479,399.61 through profit or loss

Other assets 112.79 0.00 0.00 0.00

Other liabilities (587.18) 0.00 0.00 0.00

Net exposure 258,139.78 433,351.52 1,411,175.05 479,399.61

The following are the exchange rates used to translate foreign currency assets to base currency as at

July 30, 2010:

USD 1.0000

CHF 0.95673

EUR 1.3069

JPY 0.01150

The following are the exchange rates used to translate foreign currency assets to base currency as at

January 29, 2010:

USD 1.0000

CHF 0.95069

EUR 1.3999

JPY 0.01107

(c) Liquidity Risk

Liquidity risk is the risk that the Fund may not be able to generate sufficient cash resources to

settle its obligations in full as they fall due or can only do so on terms that are materially

disadvantageous.

The Fund’s assets comprise mainly realisable securities, which can be readily sold and an EMTN.

The Fund is exposed to bi-monthly cash redemptions of redeemable units. At end of the period,

the redeemable units amounted to USD 2,620,256.81 increasing by 1.48% in comparison with

January 29, 2010 (USD 2,582,065.96).

The Manager may suspend the realisation of Units or delay the payment of realisation proceeds

during any periods in which the determination of the Net Asset Value of the relevant Fund is

suspended.


23


Over-The-Counter EMTN may also be illiquid. As a result, the Fund may not be able to liquidate

quickly its investments in this instrument at an amount close to its fair value to meet its liquidity

requirements. In order to meet realisation requests prior to Maturity Date, the Counterparty is

compelled to quote a price to unwind any part of the EMTN. The price will reflect the market

liquidity conditions and the size of the transactions.

The tables below summarise the Fund's non-derivative liabilities into relevant maturity groupings

based on the remaining period at the statement of financial position date to the contractual maturity

date:

At July 30, 2010 Less than 3 – 12 More than No stated 3 months months 12 months maturity Total Liabilities : Accrued expenses and other payables 574.47 - - - 574.47

Due to the bank 99,936.54 - - - 99,936.54

Redeemable shares 2,620,256.81 - - - 2,620,256.81

Total liabilities 2,720,767.82 - - - 2,720,767.82

At January 29, 2010 Less than 3 – 12 More than No stated 3 monthsmonths 12 monthsmaturity Total Liabilities : Accrued expenses and 587.18 - - - 587.18 other payables

Redeemable shares 2,582,065.96 - - - 2,582,065.96

Total liabilities 2,582,653.14 - - - 2,582,653.14

As at July 30, 2010 and January 29, 2010 there were no financial derivative liabilities.

In accordance with the Fund’s policy, the Manager monitors the Fund’s liquidity positions on a

bi-monthly basis.


24


Fair value measurement risk The following table analyses within the fair value hierarchy the Fund’s financial assets and liabilities measured at fair value at July 30, 2010, as discussed in note 2 (d): Assets Level 1 Level 2 Level 3 Total Balance Financial assets designated at fair 2,433,177.94 - 187,567.53 2,620,745.47 value through profit or loss Total financial assets at fair value 2,433,177.94 - 187,567.53 2,620,745.47 Financial liabilities designated at fair - - - - value through profit or loss Total financial liabilities at fair value - - - - The following table analyses within the fair value hierarchy the Fund’s financial assets and liabilities measured at fair value at January 29, 2010, as discussed in note 2 (d): Assets Level 1 Level 2 Level 3 Total Balance Financial assets designated at fair 2,323,926.18 - 258,614.17 2,582,540.35 value through profit or loss Total financial assets at fair value 2,323,926.18 258,614.17 2,582,540.35 Financial liabilities designated at fair - - - - value through profit or loss Total financial liabilities at fair value - - - - The following table presents the movement in level 3 instruments for the period ended July 30, 2010 by class of financial instrument: Assets EMTN Total financial assets Opening balance 258,614.17 258,614.17

Purchases 300,023.91 300,023.91

Sales (611,591.04) (611,591.04)

Gains and losses recognized in profit and loss 240,520.49 240,520.49

Closing balance 187,567.53 187,567.53

Total gains or losses for the year included (71,046.64) (71,046.64) in the statement of comprehensive income for assets held at the end of the year


25


(d) Credit risk

Credit risk is the risk that a counterparty will be unable to pay amounts in full when due.

Impairment provisions are provided for losses that have been incurred by the statement of

financial position if any.

The Manager monitors counterparty credit risk by setting various limits such as limits on the

gross assets with a single issuer or counterparty at the Fund asset level. The Fund adheres to

the general principle of diversification in relation to its derivative instruments. These limits are

also followed if the counterparty of the Fund is a related party of the Manager.

Investors should note that Société Générale will act as both the Counterparty and Custodian of

the Fund’s assets and the Guarantor of the EMTN. Additionally, the manager, Lyxor asset

Management is also a 100% subsidiary of Société Générale.

As a result, the Fund is exposed to the credit risk resulting from a default of Société Générale in

honouring its commitments relative to the EMTN Programme agreed by the counterparties at

each payment date and on Maturity Date.

This risk is minimized by the fact that Société Générale has a proven track record and a leading

market reputation in derivatives trading. It is well qualified to provide the necessary risk

management techniques required for pricing and hedging these types of complex derivatives.

As of July 30, 2010, the credit rating of Société Générale from Standard & Poor’s was A+ (A+ in

January 2010).

In accordance with the Fund’s policy, the Manager monitors the Fund’s credit positions on a

bi-monthly basis.

(e) Counterparty risk

Counterparty risk is the risk that the counterparty trading with the Fund will be unable to meet

its obligation to make payments or to settle a trade on the due form.

The counterparty risk is reduced by the fact that different divisions within Société Générale will

be responsible for selecting, monitoring and providing custody over the Fund’s assets. Société

Générale’s compliance procedures require effective segregation of duties and responsibilities

between relevant divisions within Société Générale: each division is run as a separate

operational unit, segregated by Chinese walls and run by different management teams.

In accordance with the Fund’s policy, the Manager monitors the Fund’s credit positions on a

bi-monthly basis.


26


(f) Cross-fund liability risk

In accordance with the Trust Deed, the assets and liabilities of the Fund are segregated from the

asset and liabilities of the other funds of the Altus Trust.


27

E

1

Altus

Altus

�� 10.40

10% 1.04

��

45%

20


28

( )

BANK OF AMERICA CORP

CHEVRONTEXACO CORP

COCA-COLA CO/THE

ENDESA S.A. Spanish Continuous

ENEL SPA

ENI SPA

GENERAL MOTORS CORP

IBERDROLA SA Spanish Continuous

KELLOGG CO

MATSUSHITA ELECTRIC INDUST

NESTLE SA-REGISTERED VIRT-X

NIPPON TELEGRAPH & TELEPHONE

NISSAN MOTOR

SARA LEE CORP

SOUTHERN CO

TAKEDA CHEMICAL INDUSTRIES

TIM SPA

TOTAL SA

TOYOTA MOTOR CORP

UNICREDITO ITALIANO SPA

90% 20

45%

( i )

( i i ) 10.40 x 100% +


29

( )

��

��

2

(a )

�� 23

�� 39 9

�� 39 7

�� 1

27

�� 2


30

( )

�� 8

�� 15

�� 27

�� 39

�� 1

�� 2

�� 3

�� 9 :

�� 17

�� 18

(b )


31

( )

( c )

(d )

SGA Société Générale Acceptance N.V.

( )


32

( )

10,000 (Monte Carlo approach) BLOOMBERG

TOTEM

(

)

7

�� 1

�� 2

�� 3


33

( )

(e )

( f )

(g )

32

(h )


34

( )

( i )

( j )

(k )

( l )

(m)


35

( )

3

0.10%

4%

100,000

4

14 26 26A


36

( )

5

99,936.54

6

233,867.830 331,796.000

0.00 0.000

(6,030.760) (97,928.170)

227,837.070 233,867.830

7

2,620,256.81 2,582,065.96

227,837.07 233,867.83

11.50 11.04

8

(a )

3


37

( )

9,910,267.66 100.00 0.00 0.00

29,634,069.13 100.00 0.00 0.00

(b )

9

10

11

12

13


38

( )

14

15

(a )

(b )

MVAR

40 40

99%

99% Altus

6.80%

6.86%


39

( )

2d

:

1 3 3 1

1 5 5

- - 187,567.53 - 2,433,177.94 2,620,745.47

- - - -

- - - - 100,022.35 100,022.35

- - 187,567.53 - 2,533,200.29 2,720,767.82

- - - - 574.47 574.47

- - - - 99,936.54 99,936.54

- - - - 2,620,256.81 2,620,256.81

- - - - 2,720,767.82 2,720,767.82

- - 187,567.53 - (187,567.53) -


40

( )

1 3 3 1

1 5 5

- - 258,614.17 - 2,323,926.18 2,582,540.35

- - - - 112.79 112.79

- - 258,614.17 - 2,324,038.97 2,582,653.14

- - - - 587.18 587.18

- - - - 2,582,065.96 2,582,065.96

- - - - 2,582,653.14 2,582,653.14

- - 258,614.17 - (258,614.17) -

636,214.74 1,544,669.17 439,861.56

100,022.35 - -

(100,511.01) - -

635,726.08 1,544,669.17 439,861.56


41

( )

258,614.17 433,351.52 1,411,175.05 479,399.61

112.79 0.00 0.00 0.00

(587.18) 0.00 0.00 0.00

258,139.78 433,351.52 1,411,175.05 479,399.61

1.0000

0.95673

1.3069

0.01150

1.0000

0.95069

1.3999

0.01107

( c )

2,620,256.81

(2,582,065.96 ) 1.48%


42

( )

3 12

3 12

574.47 - - - 574.47

99,936.54 - - - 99,936.54

2,620,256.81 - - - 2,620,256.81

2,720,767.82 - - - 2,720,767.82

3 12

3 12

587.18 - - - 587.18

2,582,065.96 - - - 2,582,065.96

2,582,653.14 - - - 2,582,653.14


43

( )

2(d)

1 2 3

2,433,177.94 - 187,567.53 2,620,745.47

2,433,177.94 - 187,567.53 2,620,745.47

- - - -

- - - -

2(d)

1 2 3

2,323,926.18 - 258,614.17 2,582,540.35

2,323,926.18 - 258,614.17 2,582,540.35

- - - -

- - - -

3

258,614.17 258,614.17

300,023.91 300,023.91

(611,591.04) (611,591.04)

240,520.49 240,520.49

187,567.53 187,567.53

(71,046.64) (71,046.64)


44

( )

(d )

A+ ( A+)

(e )


45

( )

( f )

Altus


46

SCHEDULE OF INVESTMENTS AS AT JULY 30, 2010

Number of securities Fair value % of (Notional amount) USD Net Assets

Financial assets at fair value through profit or loss

Unlisted / Unquoted financial assets

EURO MEDIUM TERM NOTE (EMTN) 649,100.00 187,567.53 7.16

Total unlisted / unquoted financial assets 187,567.53 7.16

Listed / Quoted financial assets

Germany ALLIANZ SE-NOM 1,525.00 177,020.26 6.75 DEUTSCHE LUFTHANSA N 12,269.00 195,939.83 7.48 DEUTSCHE TEL AG-NOM 5,901.00 79,742.25 3.04 MUENCHENER RU AG-NOM 1,076.00 148,567.61 5.67 RWE AG 2,402.00 171,147.76 6.53 SIEMENS AG-NOM 1,110.00 107,958.04 4.12 France TOTAL SA 3,173.00 159,029.54 6.07 Italy ENI SPA 12,282.00 251,845.62 9.61 TELECOM ITALIA SPA 192,560.00 253,418.26 9.67 Japan NIPPON TELEGRAPH & TELEPHONE 5,071.00 211,403.78 8.07 NISSAN MOTOR CO LTD 29,694.00 228,457.78 8.72 America BANK OF AMERICA CORP 16,297.00 228,646.91 8.73 SARA LEE CORP 14,885.00 220,000.30 8.40 Total listed / quoted financial assets 2,433,177.94 92.86

Total Financial assets at fair value 2,620,745.47 100.02 through profit or loss

Total Financial assets at fair value 3,028,942.05 through profit or loss at purchase date


47

SCHEDULE OF INVESTMENTS AS AT JANUARY 29, 2010

Number of securities Fair value % of (Notional amount) USD Net Assets

Financial assets at fair value through profit or loss


EURO MEDIUM TERM NOTE (EMTN) 649,100.00 258,614.17 10.02

Total unlisted / unquoted financial assets 258,614.17 10.02

Listed / Quoted financial assets

Germany BASF SE 2,155.00 120,746.81 4.68 RWE AG 2,670.00 238,729.01 9.25 VOLKSWAGEN AG 188.00 16,851.49 0.65 France TOTAL SA 3,465.00 199,919.69 7.74 SANOFI-AVENTIS 704.00 51,917.70 2.01 Italy ENEL SPA 36,630.00 198,959.95 7.71 ENI SPA 7,865.00 183,980.67 7.13 TELECOM ITALIA SPA 148,649.00 219,330.80 8.49 UNICREDIT SPA 66,448.00 180,738.93 7.00 Japan NIPPON TELEGRAPH & TELEPHONE 5,433.00 231,732.97 8.97 NISSAN MOTOR CO LTD 30,540.00 247,666.64 9.59 Switzerland NESTLE SA 4,157.00 199,973.41 7.74 ROCHE HOLDING AG-BJ 1,357.00 233,378.11 9.04 Total listed / quoted financial assets 2,323,926.18 90.00

Total Financial assets at fair value 2,582,540.35 100.02 through profit or loss

Total Financial assets at fair value 3,051,060.31 through profit or loss at purchase date



48

DISTRIBUTION STATEMENT


JULY 30, 2010 JANUARY 29, 2010

USD USD

Undistributed income / (loss) brought forward 646,700.74 572,134.58

Operating profit / (loss) 105,325.83 74,566.16

Interim distributions to holders of redeemable participating units 0.00 0.00

Final distributions to holders of redeemable participating units 0.00 0.00

Increase / (decrease) in net assets attributable to holders 105,325.83 74,566.16

of redeemable participating units from operations

Undistributed income/(loss) carried forward 752,026.57 646,700.74


49

STATEMENT OF MOVEMENTS IN SCHEDULE OF INVESTMENTS


Percentage holdings Percentage holdings of net assets of net assets JULY 30, 2010 JANUARY 29, 2010 Variation over the period Financial assets at fair value through profit or loss


EURO MEDIUM TERM NOTE (EMTN) 7.16 10.02 (2.86) Total unlisted / unquoted financial assets 7.16 10.02 (2.86)

Germany ALLIANZ SE-NOM 6.75 0.00 6.75 BASF SE 0.00 4.68 (4.68) DEUTSCHE LUFTHANSA N 7.48 0.00 7.48 DEUTSCHE TEL AG-NOM 3.04 0.00 3.04 MUENCHENER RU AG-NOM 5.67 0.00 5.67 RWE SE 6.53 9.25 (2.72) SIEMENS AG-NOM 4.12 0.00 4.12 VOLKSWAGEN AG 0.00 0.65 (0.65) France TOTAL SA 6.07 7.74 (1.67) SANOFI-AVENTIS 0.00 2.01 (2.01) Italy ENEL SPA 0.00 7.71 (7.71) ENI SPA 9.61 7.13 2.48 TELECOM ITALIA SPA 9.67 8.49 1.18 UNICREDIT SPA 0.00 7.00 (7.00) Japan NIPPON TELEGRAPH & TELEPHONE 8.07 8.97 (0.90) NISSAN MOTOR CO LTD 8.72 9.59 (0.87) Switzerland NESTLE SA 0.00 7.74 (7.74) ROCHE HOLDING AG-BJ 0.00 9.04 (9.04) America BANK OF AMERICA CORP 8.73 0.00 8.73 SARA LEE CORP 8.40 0.00 8.40 Total listed / quoted financial assets 92.86 90.00 2.86

Total financial assets at fair value through profit or loss 100.02 100.02 0.00


50

PERFORMANCE TABLE


Net asset values for last 3 years

Total net asset value Net asset value per unit USD USD As at July 30, 2010 2,620,256.81 11.50 As at January 29, 2010 2,582,065.96 11.04 As at January 30, 2009 3,550,276.55 10.70 As at January 31, 2008 5,204,270.28 11.14

Performance record for last 10 years

Highest issue Lowest redemption

price per unit price per unit USD USD

From January 30, 2010 to July 30, 2010 11.50 10.97

From January 31, 2009 to January 29, 2010 11.13 10.25

From February 1, 2008 to January 30, 2009 11.27 9.97




From May 12, 2004 to January 31, 2005 10.29 9.89

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