rainbow fund - andbank.com · unaudited semi-annual report as at 31st march 2018 rainbow fund ......

Management Company: ANDBANK ASSET MANAGEMENT LUXEMBOURG R.C.S. Luxembourg B 147 174

Unaudited semi-annual report as at 31st March 2018

RAINBOW FUND A mutual investment Fund organised under the laws of the Grand-Duchy of Luxembourg with an umbrella structure

R.C.S. Luxembourg K879

No subscription can be received on the basis of this financial report. Subscriptions are only valid if made on the basis of the current prospectus and the key investor information document ("KIID"), supplemented by the latest annual report and the most recent semi-annual report, if published thereafter.

RAINBOW FUND

Contents

1

Organisation ........................................................................................................................................... 2

General information ............................................................................................................................... 5

Combined statement of net assets ....................................................................................................... 6

RAINBOW FUND - Emerging Market Equities ..................................................................................... 7 Statement of net assets ........................................................................................................................ 7 Statement of investments and other net assets ................................................................................... 8 Industrial and geographical classification of investments ...................................................................10 Statement of changes in investments .................................................................................................11

RAINBOW FUND - Rainbow Flexile Allocation ..................................................................................12 Statement of net assets ......................................................................................................................12 Statement of investments and other net assets .................................................................................13 Industrial and geographical classification of investments ...................................................................15 Statement of changes in investments .................................................................................................17

RAINBOW FUND - Balanced Portfolio 3 .............................................................................................19 Statement of net assets ......................................................................................................................19 Statement of investments and other net assets .................................................................................20 Industrial and geographical classification of investments ...................................................................22 Statement of changes in investments .................................................................................................23

Notes to the financial statements .......................................................................................................24

Additional information .........................................................................................................................28

RAINBOW FUND

2

Organisation

Registered Office of ANDBANK ASSET MANAGEMENT LUXEMBOURG the Management Company 4, rue Jean Monnet L-2180 LUXEMBOURG Management Company ANDBANK ASSET MANAGEMENT LUXEMBOURG 4, rue Jean Monnet L-2180 LUXEMBOURG Board of Directors of the Management Company Chairman Galo Juan SASTRE Non-Executive Advisor ANDBANK GROUP ANDORRA (until 17th October 2017) Dagmar Isabel VALCARCEL SCHNÜLL Independent Chairman (since 17th October 2017) Directors Josep Xavier CASANOVAS Chief Risk Officer ANDBANK GROUP ANDORRA Philippe ESSER Director ANDBANK ASSET MANAGEMENT LUXEMBOURG LUXEMBOURG Juan Manuel GARCIA SANCHEZ Managing Director ANDBANK LUXEMBOURG LUXEMBOURG (until 18th October 2017) Alain LÉONARD Director ANDBANK ASSET MANAGEMENT LUXEMBOURG LUXEMBOURG Jacobo BALTAR GARCIA-PEÑUELA General Secretary & Head of International Supervision ANDBANK GROUP ANDORRA (since 17th October 2017)

RAINBOW FUND

Organisation (continued)

3

Conducting Officers of the Luis GOMEZ GONZALEZ Management Company General Director ANDBANK ASSET MANAGEMENT LUXEMBOURG LUXEMBOURG Andres POMAR Head of Asset Management ANDBANK ASSET MANAGEMENT LUXEMBOURG LUXEMBOURG Investment Advisor ALTERAREA EAFI, SL, c/ Principe 53 - 3a , 36202 Vigo - Pontevedra SPAIN (until 30th January 2018) ALTERAREA EAFI, SL, Calle urzais 5 - 2 Planta CP 36201 Vigo, Pontevedra SPAIN (since 31st January 2018) Depositary and Paying Agent KBL EUROPEAN PRIVATE BANKERS S.A., 43, Boulevard Royal L-2955 LUXEMBOURG (since 1st October 2017) CACEIS Bank, Luxembourg Branch 5, allée Scheffer, L-2520 LUXEMBOURG (until 30th September 2017) Administrative Agent, Registar and EUROPEAN FUND ADMINISTRATION S.A. Transfert Agent 2, rue d’Alsace L-1122 LUXEMBOURG (since 1st October 2017) CACEIS Bank, Luxembourg Branch 5, allée Scheffer, L-2520 LUXEMBOURG (until 30th September 2017) Domiciliary Agent, ANDBANK ASSET MANAGEMENT LUXEMBOURG 4, rue Jean Monnet L-2180 LUXEMBOURG Cabinet de révision agréé Mazars Luxembourg 10A, rue Henri M. Schnadt L-2530 LUXEMBOURG

RAINBOW FUND

Organisation (continued)

4

Global Distrubutor ANDBANK ASSET MANAGEMENT LUXEMBOURG 4, rue Jean Monnet L-2180 LUXEMBOURG Auditor of the Management Company KPMG Luxembourg, Société ccopérative 39, Avenue John F. Kennedy L-1855 LUXEMBOURG

RAINBOW FUND

5

General information

RAINBOW FUND (hereinafter referred to as the "Fund") is an unincorporated coproprietorship of the transferable securities and other eligible assets (hereinafter referred to as "securities") of the Fund, managed in the interest of its co-owners (hereinafter referred to as the "Unitholders") by ANDBANK ASSET MANAGEMENT LUXEMBOURG (hereinafter referred to as the "Management Company"), a company incorporated under the laws of the Grand Duchy of Luxembourg and having its registered office in Luxembourg. The assets of the Fund are separate from those of the Management Company. The Fund is organised under the laws of the Grand-Duchy of Luxembourg as a collective investment fund with multiple compartments ("fonds commun de placement à compartiments multiples") pursuant to the provisions of part I of the amended Law of 17th December 2010 relating to undertakings for collective investment. The Directive 2014/91/EU of the European Parliament and of the Council of 23rd July 2014 amending the Directive 2009/65/EC had been transposed by the law of 10th May 2016 coming into force on 1st June 2016 and amending the 2010 Law. At the date of the financial statements, the following Sub-Funds are open: - RAINBOW FUND - Emerging Market Equities in EUR - RAINBOW FUND - Rainbow Flexible Allocation in EUR - RAINBOW FUND - Balanced Portfolio 3 in EUR

At the date of the financial statements, the following Classes are issued:

- the Class EUR - accumulation Units for the Retail clients for all the Sub-Funds; The net asset value per unit of each Sub-Fund is expressed in Euros (EUR) and shall be determined by the Management Company on the 15th day and the last day of each month which is a bank business day in Luxembourg (the "Valuation Day"). If the Valuation Day is not a bank business day in Luxembourg, the net asset value will be determined on the previous day which is a bank business day in Luxembourg. The first Valuation Day shall be the 15th day or last day of the month following the end of the initial offering period. The net asset value will be determined on the basis of the last available price by dividing the value of the assets less the liabilities (including any provisions considered by the Management Company to be necessary or prudent) of the relevant sub-fund by the total number of Units outstanding of such sub-fund at the time of the determination of such NAV. Annual reports including audited Financial Statements and semi-annual reports including unaudited Financial Statements are published and made available, free of charge, to the unitholders at the registered office of the Administrator. The accounts of the Fund are closed each year on 30th September. The net asset value and the issue, repurchase and conversion prices are available to the public at the offices of the Management Company, the Placing Agents, and the Administrator. All notices to unitholders will be sent to the unitholders at their addresses indicated in the register of unitholders Any notice of dissolution, liquidation or merger should be published in the RESA and in at least two newspapers in Luxembourg (insofar as required by applicable regulations) and in newspapers issued in countries where the Fund's units are offered or sold as decided by the Management Company from time to time. Any other financial information to be published concerning the Fund or the Management Company, including any suspension of the net asset value of any Sub-Fund, will be made available to the public at the offices of the Management Company, the Distributors and the Administrator.

RAINBOW FUND

Combined statement of net assets (in EUR) as at 31st March 2018

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

6

Assets Securities portfolio at market value 22,130,614.72 Cash at banks 1,524,315.62 Income receivable on portfolio 96,940.44 Prepaid expenses 16,103.16

Total assets 23,767,973.94

Liabilities Bank overdrafts 88.23 Expenses payable 113,881.75

Total liabilities 113,969.98

Net assets at the end of the period 23,654,003.96

RAINBOW FUND - Emerging Market Equities

Statement of net assets (in EUR) as at 31st March 2018


7

Assets Securities portfolio at market value 8,767,344.97 Cash at banks 53,284.69 Income receivable on portfolio 30,854.82 Prepaid expenses 7,145.50


Liabilities Expenses payable 57,173.06



Breakdown of net assets per unit class

Unit class Number of

units

Currency of

unit class

NAV per unit in currency of

unit class

Net assets per unit class

(in EUR)

EUR 38,087.03 EUR 231.09 8,801,456.92

8,801,456.92


Statement of investments and other net assets (in EUR) as at 31st March 2018


8

Currency Number / nominal value

Description Cost Market value % of total net assets

Investments in securities

Transferable securities admitted to an official stock exchange listing

Shares

BRL 17,000 Cia Energetica Minas Gerais Pref 33,786.77 35,733.04 0.40 BRL 7,600 Cia Saneamento Minas Gerais SA 82,687.44 89,727.46 1.01 BRL 13,000 EcoRodovias Infra Logistica SA 33,754.26 27,931.79 0.31 BRL 50,000 Metalurgica Gerdau SA Pref 52,096.36 87,662.84 0.99

202,324.83 241,055.13 2.73

EUR 100,000 JSC Surgutneftegaz spons ADR repr 10 Pref Shares 53,725.66 422,000.00 4.79 EUR 12,000 Martifer SA 96,000.00 4,044.00 0.04 EUR 100,000 Mosenergo spons ADR repr 50 Shares 57,920.00 193,000.00 2.19 EUR 12,005 Telefonica SA 150,979.94 96,376.14 1.09

358,625.60 715,420.14 8.12

IDR 540,000 Astra Intl Tbk 6,046.53 232,345.10 2.63 IDR 341,775 Bank Niaga CIMB (PT) Tbk A 17,994.74 23,569.10 0.26 IDR 4,788,400 Bank Pan Indonesia (PT) Tbk 54,072.70 301,988.98 3.43 IDR 201,955 Bank Permata (PT) Tbk A Ser A 22,572.82 6,963.50 0.07 IDR 110,000 Indorama Synthetics (PT) Tbk Reg 3,871.23 9,076.90 0.10 IDR 580,000 PT Holcim Indonesia Tbk 14,495.56 27,348.59 0.31 IDR 480,000 Ramayana Lestari Sent (PT) Tbk 7,254.75 38,193.72 0.43 IDR 220,000 Tempo Scan Pacific (PT) Tbk 956.32 21,071.38 0.23

127,264.65 660,557.27 7.50

JPY 2,000 Softbank Group Corp 24,841.33 121,498.52 1.38 KRW 4,500 DB HiTek Co LTD Reg 48,866.61 50,720.64 0.57 KRW 2,018 Hansol Hgs Co Ltd 15,351.86 7,232.26 0.08 KRW 1,231 Hansol Paper Co Ltd 0.00 14,956.69 0.16 KRW 68 Hyundai Construc Equip Co Ltd Reg 0.00 9,223.32 0.10 KRW 72 Hyundai Elect & En Sys Co Ltd Reg 0.00 4,539.07 0.05 KRW 551 Hyundai Heavy Industrie Co Ltd 10,936.11 55,578.36 0.63 KRW 257 Hyundai Robotics Co Ltd Reg 46,818.76 85,723.04 0.97 KRW 1,648 KB Financial Gr Inc 19,758.11 76,440.95 0.86 KRW 980 KCC Corp 13,360.44 258,734.47 2.93 KRW 2,714 LG Electronics Inc 8,033.75 227,093.20 2.58

163,125.64 790,242.00 8.97

PHP 370,500 Aboitiz Equity Ventures Inc 22,091.70 389,267.44 4.42 PHP 143,568 Ayala Land Inc 24,942.22 91,845.01 1.04 PHP 199,000 First Philippine Holdings Corp 143,112.34 204,433.99 2.32 PHP 128,800 Ginebra San Miguel Inc Reg 64,714.76 51,122.51 0.58 PHP 3,990 Globe Telecom Inc 51,821.18 100,734.87 1.14 PHP 14,700 Greenergy Hgs Inc Reg 8,349.29 0.00 0.00 PHP 255,000 Intl Container Terminal Servcs 20,312.23 396,913.87 4.50 PHP 300,000 Ionics Inc Reg 3,714.35 11,440.46 0.12 PHP 55,000 Manila Electric Co 19,264.05 272,236.22 3.09 PHP 147,979 Metropolitan Bank & Trust Co Reg 69,769.35 197,625.72 2.24 PHP 1,180 Philippine Lg Distance Tel Co 22,909.76 26,999.48 0.30 PHP 130,642 Security Bank Corp 35,422.08 488,034.09 5.54

486,423.31 2,230,653.66 25.34

THB 7,500 Advanced Info Serv PCL Foreign Reg 10,434.32 40,590.84 0.46 THB 60,600 Bangkok Bank PCL Foreign Reg 103,731.15 340,588.35 3.86 THB 79,580 Delta Electronic Thailand PCL Foreign Reg 38,680.49 140,804.41 1.59 THB 209,375 Krung Thai Bank PCL Foreign Reg 68,261.09 102,965.10 1.16 THB 99,157 PTT Global PCL Foreign Reg 15,988.67 243,813.98 2.77 THB 32,500 Siam Cement Public Co Ltd Foreign 55,845.64 422,821.23 4.80


Statement of investments and other net assets (in EUR) (continued) as at 31st March 2018


9



THB 26,000 Sri Ayudhya Cap PCL Reg 8,354.20 31,627.03 0.35 THB 178,600 Thaicom PCL Foreign Reg 36,336.73 55,300.85 0.62 THB 662,603 TMB Bank PCL Foreign Reg 41,310.54 44,136.39 0.50 THB 7,800 Total Access Communication PCL Foreign Reg 4,982.68 9,031.46 0.10

383,925.51 1,431,679.64 16.26

USD 20,000 Acron OJSC spons GDR repr 1/10 Shares Reg S 62,691.75 124,168.15 1.41 USD 45,500 Gazprom PJSC spons ADR repr 2 Shares 369,320.18 179,681.06 2.04 USD 10,000 JSC Surgutneftegaz ADR repr 10 Shares 33,698.44 39,685.12 0.45 USD 13,171 MMC Norilsk Nickel PJSC spons ADR repr 1 Share 7,036.07 198,120.83 2.25 USD 2,500 Mobile Telesystems PJSC ADR repr 2 Shs 25,038.66 23,109.07 0.26 USD 12,000 Oil Co Lukoil PJSC spons ADR repr 1 Share 110,387.52 670,994.97 7.62 USD 7,195 Rostelecom ADR spons repr 6 Shares 61,334.92 40,465.31 0.45 USD 1,480 Samsung SDI Co Ltd spons ADR Repr 1/4 Shares 144A 10,999.34 53,809.45 0.61 USD 8,000 Sberbank of Russia PJSC spons ADR repr 4 Shares 40,063.41 120,954.39 1.37 USD 11,332 Tatneft PJSC spons ADR repr 6 Shares 25,289.27 580,486.80 6.59 USD 3,000 Uralkaliy PJSC GDR repr 5 Shares 42,715.69 24,062.58 0.27 USD 37,500 Veon Ltd spons ADR repr 1 share 95,710.09 80,344.10 0.91 USD 100,000 VTB Bank PJSC GDR spons GDR repr 2000 Shares 169,497.93 158,902.78 1.80

1,053,783.27 2,294,784.61 26.07

Total shares 2,800,314.14 8,485,890.97 96.41

Closed-ended investment funds

USD 1,809 Aberdeen Indonesia Fd Inc Dist 6,725.97 10,702.49 0.12

Total closed-ended investment funds 6,725.97 10,702.49 0.12

Warrants and rights

KRW 97 Hyundai Heavy Industrie Co Ltd Droits de sousc 09.03.18 0.00 2,705.48 0.03

Total warrants and rights 0.00 2,705.48 0.03

Other transferable securities

Shares

USD 23,102 Irkutskenergo JSC spons ADR repr 50 Shares 116,940.96 261,789.51 2.97

Total shares 116,940.96 261,789.51 2.97

Warrants and rights

PHP 37,218 Metropolitan Bank & Trust Co Droits de sousc 04.04.18 0.00 6,256.52 0.07

Total warrants and rights 0.00 6,256.52 0.07

Total investments in securities 2,923,981.07 8,767,344.97 99.61

Cash at banks 53,284.69 0.60

Other net assets/(liabilities) -19,172.74 -0.21

Total 8,801,456.92 100.00


Industrial and geographical classification of investments as at 31st March 2018

10

Industrial classification

(in percentage of net assets)

Energy 24.27 %

Financials 22.67 %

Industrials 18.78 %

Utilities 12.00 %

Cyclical consumer goods 5.75 %

Raw materials 5.49 %

Telecommunications services 5.37 %

Technologies 4.29 %

Non-cyclical consumer goods 0.58 %

Healthcare 0.23 %

Investment funds 0.12 %

Total 99.61 %

Geographical classification

(by domicile of the issuer) (in percentage of net assets)

Russia 34.51 %

Philippines 25.41 %

Thailand 16.26 %

South Korea 9.62 %

Indonesia 7.50 %

Brazil 2.73 %

Japan 1.38 %

Spain 1.09 %

The Netherlands 0.91 %

United States of America 0.12 %

Portugal 0.04 %

Total 99.61 %


Statement of changes in investments from 1st October 2017 to 31st March 2018

11

Currency Description Purchases Sales Other

Shares

EUR Softbank Group Corp Reg 0 0 -2,000

IDR Astra Intl Tbk 0 300,000 0

JPY Softbank Group Corp 0 0 2,000

KRW DB HiTek Co LTD Reg 4,500 0 0 KRW Hyundai Construc Equip Co Ltd Reg 0 0 34 KRW Hyundai Elect & En Sys Co Ltd Reg 0 0 36 KRW Hyundai Robotics Co Ltd Reg 140 0 0

USD Oil Co Lukoil PJSC spons ADR repr 1 Share 0 1,400 0 USD Tatneft PJSC spons ADR repr 6 Shares 0 5,000 0 USD VTB Bank PJSC GDR spons GDR repr 2000 Shares 100,000 0 0

Warrants and rights

BRL Cia Energetica Minas Gerais Droits de sousc 29.11.17

0 17,000 17,000

KRW Hyundai Construc Equip Co Ltd Droits de sousc 07.11.17

0 0 -10

KRW Hyundai Elect & En Sys Co Ltd Droits de sousc 10.11.17

0 0 -11

KRW Hyundai Heavy Industrie Co Ltd Droits de sousc 09.03.18

0 0 97

PHP Metropolitan Bank & Trust Co Droits de sousc 04.04.18

0 0 37,218

RAINBOW FUND - Rainbow Flexile Allocation



12

Assets Securities portfolio at market value 9,176,945.32 Cash at banks 1,072,913.85 Income receivable on portfolio 10,121.85 Prepaid expenses 4,478.83


Liabilities Expenses payable 28,664.67





units

Currency of

unit class


unit class


(in EUR)

EUR 99,694.07 EUR 102.67 10,235,795.18

10,235,795.18




13





Shares

AUD 1,800 Wesfarmers Ltd 49,145.72 46,701.88 0.45 CAD 2,325 Alimentation Couche Tard Inc B 95,800.32 84,405.63 0.82 CAD 2,300 Restaurant Brands Intl Inc When Issued 104,090.32 106,157.04 1.03

199,890.64 190,562.67 1.86

CHF 700 Co Financière Richemont SA 51,015.77 51,100.65 0.49 CHF 1,000 LafargeHolcim Ltd Reg 48,821.99 44,518.99 0.43 CHF 700 Nestlé SA Reg 49,642.12 45,058.67 0.44 CHF 1,400 Novartis AG Reg 99,220.50 92,071.75 0.89

248,700.38 232,750.06 2.27

DKK 2,700 Novo Nordisk AS B 99,786.32 107,747.44 1.05 DKK 1,000 Orsted Reg 45,822.38 52,582.63 0.51

145,608.70 160,330.07 1.56

EUR 1,034 Air Liquide SA 99,075.00 102,862.32 1.00 EUR 300 ASML Holding NV 45,900.00 48,045.00 0.46 EUR 570 Bayerische Motorenwerke AG 50,020.35 50,245.50 0.49 EUR 600 CapGemini SE 54,420.00 60,720.00 0.59 EUR 255 Continental AG 50,235.00 57,196.50 0.55 EUR 1,550 Daimler AG Reg 99,655.88 106,903.50 1.04 EUR 3,100 Danone 198,458.49 203,763.00 1.99 EUR 1,300 Deutsche Post AG Reg 48,282.00 46,176.00 0.45 EUR 2,750 Dialog Semiconductor Plc 104,609.87 53,061.25 0.51 EUR 9,000 Engie SA 133,041.20 121,995.00 1.19 EUR 500 Essilor Intl SA 54,250.00 54,800.00 0.53 EUR 3,000 Fortum Oyj 49,815.00 52,350.00 0.51 EUR 1,355 Fresenius SE & Co KGaA 99,910.00 84,091.30 0.82 EUR 5,000 Gestamp Automocion Bearer 28,000.00 33,100.00 0.32 EUR 9,700 Industria de Diseno Textil SA 296,748.00 246,671.00 2.40 EUR 270 L'Oréal SA 51,961.50 49,504.50 0.48 EUR 750 Paragon AG 50,135.85 50,850.00 0.49 EUR 3,300 Repsol SA 49,500.00 47,569.50 0.46 EUR 600 SAFRAN SA 52,440.00 51,588.00 0.50 EUR 2,200 Salvatore Ferragamo SpA 50,475.70 49,324.00 0.48 EUR 157,000 Sonae SGPS SA Reg 149,271.34 171,915.00 1.67 EUR 16,500 Telefonica SA 153,120.00 132,462.00 1.29 EUR 4,000 Tenaris SA Reg 48,400.00 55,800.00 0.54 EUR 1,100 Vapiano SE Bearer 25,058.18 24,145.00 0.23 EUR 650 Vinci SA 49,725.00 51,935.00 0.50

2,092,508.36 2,007,073.37 19.60

JPY 4,300 Asics Corp 52,331.25 64,697.58 0.63 JPY 1,400 Dentsu Inc 50,736.28 49,959.58 0.48 JPY 200 Fast Retailing Holdings Co Ltd 48,236.38 66,082.97 0.64 JPY 5,000 Rakuten Inc 49,316.59 34,351.99 0.33 JPY 8,800 Tohokushinsha Film Corp Reg 50,319.73 51,576.50 0.50

250,940.23 266,668.62 2.60

KRW 550 Hyundai Home Shop Network Corp 52,277.41 44,760.25 0.43 SEK 10,300 Kindred Group Plc SDR 99,927.45 114,417.36 1.11 USD 1,200 Alibaba Group Holding Ltd ADR repr 1 Share 108,526.43 178,743.71 1.74 USD 3,000 AT&T Inc 87,095.15 86,795.97 0.84 USD 500 Biogen Inc 133,039.22 111,110.21 1.08 USD 1,600 Celgene Corp 154,604.24 115,838.34 1.13 USD 6,700 Cisco Systems Inc 181,123.23 233,211.33 2.27 USD 1,300 Coca-Cola Co 50,130.79 45,819.67 0.44




14



USD 2,800 Freeport McMoRan Inc 32,453.10 39,925.34 0.39 USD 4,900 General Electric Co 146,089.71 53,604.93 0.52 USD 1,650 General Motors Co 50,974.62 48,661.74 0.47 USD 360 IBM Corp 50,055.25 44,826.16 0.43 USD 1,500 Intel Corp 49,830.00 63,398.80 0.61 USD 500 Lululemon Athletica Inc 25,568.63 36,162.96 0.35 USD 3,800 Macy's Inc 129,559.06 91,715.63 0.89 USD 3,100 Merck & Co Inc 165,759.71 137,037.01 1.33 USD 2,900 Microsoft Corp 142,336.92 214,805.23 2.09 USD 1,190 Mondelez Intl Inc 42,334.40 40,300.84 0.39 USD 5,600 Oracle Corp 201,633.89 207,920.79 2.03 USD 1,075 Palo Alto Networks Inc 140,804.54 158,362.28 1.54 USD 1,960 Qualcomm Inc 89,175.11 88,137.96 0.86 USD 1,400 Schlumberger Ltd 101,317.55 73,601.69 0.71 USD 500 ServiceNow Inc 53,700.29 67,136.02 0.65 USD 2,900 Softbank Group Corp Unspons ADR repr 1/2 Share 99,597.04 88,009.66 0.85 USD 1,100 Tencent Holdings Ltd unspons ADR repr 1 Share 48,265.97 47,572.63 0.46 USD 3,200 Teva Pharma Ind Ltd ADR repr 1 Share 113,098.46 44,382.41 0.43 USD 3,850 Twenty-First Century Fox Inc A 91,741.18 114,637.64 1.11 USD 2,650 Under Armour Inc A 50,023.02 35,162.72 0.34 USD 1,020 Walt Disney Co (The) 91,842.80 83,143.00 0.81

2,630,680.31 2,550,024.67 24.91

ZAR 1,900 Tiger Brands Ltd 48,597.84 48,514.66 0.47

Total shares 5,818,277.04 5,661,803.61 55.31

Open-ended investment funds

Investment funds (UCITS)

EUR 38,700 Aberdeen Global World Resources Equity Fd A Hedged EUR Cap

522,171.36 476,876.88 4.65

EUR 452,855.372 BNY Mellon Global Fds Plc Short-Dated HY Bond EUR I Cap 475,000.00 472,192.30 4.61 EUR 4,872 Halley SICAV Alinea Global I Cap 498,113.28 490,707.84 4.79 EUR 4,827.211 Natixis Intl Fds (Lux) I Loomis Sayles ST Em Mks Bd HIA Cap 493,871.96 490,010.19 4.78 EUR 36,386.647 PIMCO Fds Gl Investors Ser Plc Inc Istl EUR Cap 495,950.00 494,858.40 4.83 EUR 3,350 Salar Fd Plc E1 EUR Cap 505,883.50 498,480.00 4.86 EUR 3,507.006 Vontobel Fd Emerging Markets Equity HI (Hedged) Cap 502,238.33 498,520.90 4.87

Total investment funds (UCITS) 3,493,228.43 3,421,646.51 33.42

Tracker funds (UCITS)

EUR 2,700 iShares STOXX Europe 600 Banks UCITS ETF (DE) Dist 50,584.50 46,591.20 0.45 EUR 2,200 Lyxor UCITS ETF Stoxx Europe 600 Bks Cap 50,578.00 46,904.00 0.45

Total tracker funds (UCITS) 101,162.50 93,495.20 0.91


Cash at banks 1,072,913.85 10.48

Other net assets/(liabilities) -14,063.99 -0.13

Total 10,235,795.18 100.00



15



Investment funds 34.34 %

Technologies 15.67 %

Cyclical consumer goods 15.24 %

Healthcare 7.29 %


Industrials 4.12 %

Utilities 2.21 %



Energy 1.72 %

Total 89.65 %


Industrial and geographical classification of investments (continued) as at 31st March 2018

16




Luxembourg 19.65 %

Ireland 14.31 %

France 7.26 %

Germany 4.55 %

Spain 4.49 %

Japan 3.46 %

Switzerland 2.27 %

Canada 2.21 %

Cayman Islands 2.21 %

Portugal 1.67 %

Denmark 1.56 %

Malta 1.11 %

Curacao 0.71 %

United Kingdom 0.51 %

Finland 0.51 %

Italy 0.48 %

South Africa 0.47 %


Australia 0.45 %

South Korea 0.43 %

Israel 0.43 %

Total 89.65 %



17


Shares

CAD BlackBerry Ltd Reg 0 11,400 0

CHF Co Financière Richemont SA 700 0 0 CHF Nestlé SA Reg 700 0 0 CHF Novartis AG Reg 1,400 0 0

DKK Orsted Reg 1,000 0 0

EUR Air Liquide SA 0 0 94 EUR ASML Holding NV 300 0 0 EUR Covestro AG 0 770 0 EUR Deutsche Post AG Reg 1,300 0 0 EUR Dialog Semiconductor Plc 2,750 0 0 EUR Essilor Intl SA 500 0 0 EUR Industria de Diseno Textil SA 5,100 0 0 EUR Intl Consolidated Air Gr SA 0 15,000 0 EUR L'Oréal SA 270 0 0 EUR Paragon AG 750 0 0 EUR Repsol SA 3,300 0 0 EUR SAFRAN SA 600 0 0 EUR Salvatore Ferragamo SpA 2,200 0 0 EUR SAP SE 0 1,500 0

JPY Asics Corp 4,000 0 0 JPY Dentsu Inc 1,400 0 0 JPY Tohokushinsha Film Corp Reg 8,800 0 0

KRW Hyundai Home Shop Network Corp 550 0 0

USD AT&T Inc 3,000 0 0 USD Bioverativ Inc Reg S 0 250 0 USD Coca-Cola Co 1,300 0 0 USD Microsoft Corp 0 1,000 0 USD NetFlix Inc 0 360 0 USD ServiceNow Inc 500 0 0 USD Tencent Holdings Ltd unspons ADR repr 1 Share 1,100 0 0

Bonds

EUR Ireland 5.5% T-Bonds 12/18.10.17 0 400,000 0

Money market instruments

EUR Espana 0% T-Bills Sen 16/08.12.17 0 3,500,000 0 EUR Espana 0% T-Bills Sen 17/09.03.18 3,000,000 3,000,000 0 EUR France 0% BTF Sen 17/22.11.17 0 500,000 0

Investment funds (UCITS)

EUR Aberdeen Global World Resources Equity Fd A Hedged EUR Cap

38,700 0 0

EUR BNY Mellon Global Fds Plc Short-Dated HY Bond EUR I Cap

452,855.372 0 0

EUR Halley SICAV Alinea Global I Cap 4,872 0 0


Statement of changes in investments (continued) from 1st October 2017 to 31st March 2018

18


EUR Natixis Intl Fds (Lux) I Loomis Sayles ST Em Mks Bd

HIA Cap 4,827.211 0 0

EUR Natixis Intl Fds (Lux) I Loomis Sayles ST Em Mks Bd HRA Cap

4,800 4,800 0

EUR PIMCO Fds Gl Investors Ser Plc Inc E EUR Hedge Cap

38,150 38,150 0

EUR PIMCO Fds Gl Investors Ser Plc Inc Istl EUR Cap 36,386.647 0 0 EUR Salar Fd Plc E1 EUR Cap 3,350 0 0 EUR Vontobel Fd Emerging Markets Equity HI (Hedged)

Cap 3,507.006 0 0

EUR Vontobel Fd SICAV Emerging Markets Equity H (Hedged) Cap

2,280 2,280 0

RAINBOW FUND - Balanced Portfolio 3



19

Assets Securities portfolio at market value 4,186,324.43 Cash at banks 398,117.08 Income receivable on portfolio 55,963.77 Prepaid expenses 4,478.83


Liabilities Bank overdrafts 88.23 Expenses payable 28,044.02





units

Currency of

unit class


unit class


(in EUR)

EUR 252,055.68 EUR 18.32 4,616,751.86

4,616,751.86




20





Shares

EUR 33,304 Abengoa SA A 0.01 892.55 0.01 EUR 344,388 Abengoa SA B 0.01 3,616.07 0.07 EUR 2,000 Acciona SA 125,985.00 123,440.00 2.67 EUR 3,449 Actividad Const y Servicios SA 65,440.26 109,160.85 2.36 EUR 1,800 Axa SA 31,275.00 38,880.00 0.84 EUR 24,360 Banco Santander Reg SA 46,720.03 128,986.20 2.79 EUR 6,400 E.ON SE Reg 68,584.63 57,728.00 1.25 EUR 6,400 Gas Natural SDG SA 68,985.37 124,096.00 2.68 EUR 21,268 Iberdrola SA 96,141.04 127,012.50 2.75 EUR 15,000 JSC Surgutneftegaz spons ADR repr 10 Pref Shares 31,950.00 63,300.00 1.37 EUR 14,367 Koninklijke KPN NV 43,164.85 35,012.38 0.75 EUR 56,000 Mapfre SA Reg 108,795.81 151,256.00 3.27 EUR 1,500 Martifer SA 12,000.00 505.50 0.01 EUR 20,000 Mosenergo spons ADR repr 50 Shares 44,000.00 38,600.00 0.83 EUR 14,000 Naturhouse Health SA 67,514.86 51,100.00 1.10 EUR 35,500 Obrascon Huarte Lain SA 103,365.92 122,936.50 2.66 EUR 4,000 Orange SA 71,935.00 55,140.00 1.19 EUR 77,803 Sacyr SA 173,501.75 168,910.31 3.65 EUR 6,387 Siemens Gamesa Rene Energy SA 56,857.26 83,190.68 1.80 EUR 13,771 Telefonica SA 185,644.58 110,553.59 2.39 EUR 140 Uniper SE Reg 0.00 3,465.00 0.07

1,401,861.38 1,597,782.13 34.60

TRY 10,500 Turk Telekomunikasyon AS 29,012.30 14,329.74 0.31 TRY 2,000 Turkiye Petrol Rafinerileri AS 29,965.75 44,492.47 0.96

58,978.05 58,822.21 1.27

USD 11,000 DHT Holdings Inc 40,432.54 30,352.22 0.65 USD 21,000 Gazprom PJSC spons ADR repr 2 Shares 83,106.53 82,929.72 1.79 USD 10,000 JSC Surgutneftegaz spons ADR repr 10 Pref Shares 42,515.50 40,740.14 0.88 USD 600 Oil Co Lukoil PJSC spons ADR repr 1 Share 23,529.00 33,549.75 0.72

189,583.57 187,571.83 4.06

Total shares 1,650,423.00 1,844,176.17 39.94

Bonds

BRL 600,000 BRF SA 7.75% Sen Reg S 13/22.05.18 167,767.43 146,325.49 3.16 BRL 600,000 Odebrecht Finance Ltd 8.25% Sen Reg S13/25.04.18 155,861.91 119,891.83 2.59

323,629.34 266,217.32 5.76

EUR 225,100 Abengoa Abenewco 2 SAU VAR TOG PIK Reg S 17/31.03.23 221,280.00 35,439.74 0.76 EUR 100,000 Altice NV 6.25% Reg S Sen 15/15.02.25 100,000.00 92,625.00 2.00 EUR 100,000 Chemours (The) Co 6.125% Sen 16/15.05.23 93,500.00 105,010.00 2.27 EUR 200,000 GPB Eurobond Finance Plc 4% Reg S Gazprombank

14/01.07.19 161,150.00 206,653.00 4.47

EUR 260,000 Obrascon Huarte Lain SA 4.75% Sen 14/15.03.22 211,250.00 261,800.50 5.67 EUR 100,000 Portugal 4.45% Sen 08/15.06.18 102,080.00 100,958.50 2.18

889,260.00 802,486.74 17.38

GBP 180,000 Petrobras Global Finance BV 6.25% EMTN Sen 11/14.12.26 175,669.69 219,821.30 4.76 MXN 4,000,000 America Movil SAB de CV 7.125% Reg S Sen 14/09.12.24 180,516.05 168,169.19 3.64 MXN 20,000 Mexico 5% Bonos Sen 14/11.12.19 83,224.97 86,057.92 1.86 MXN 20,000 Petroleos Mexicanos 7.19% Reg S Sen 13/12.09.24 89,048.90 80,510.09 1.74

352,789.92 334,737.20 7.25

TRY 1,600,000 EIB 0% EMTN Ser 144 A Sen 07/05.09.22 223,029.42 194,630.74 4.21 TRY 800,000 Turkey 10.4% 14/27.03.19 192,519.70 159,438.19 3.45

415,549.12 354,068.93 7.66




21



USD 180,000 Bombardier Inc 6% Reg S Sen 14/15.10.22 144,728.99 144,969.24 3.14 USD 190,000 Dell Inc 7.1% Sen 98/15.04.28 161,044.18 169,608.38 3.67 USD 50,000 Venezuela 13.625% Sen 98/15.08.18 44,679.73 15,210.55 0.32

350,452.90 329,788.17 7.14

Total bonds 2,507,350.97 2,307,119.66 49.97

Transferable securities dealt in on another regulated market

Bonds

USD 50,916 Maxcom Telecom SA de CV Step-up 13/15.06.20 0.00 35,028.60 0.75

Total bonds 0.00 35,028.60 0.75


Cash at banks 398,117.08 8.62

Bank overdrafts -88.23 -0.00

Other net assets/(liabilities) 32,398.58 0.70

Total 4,616,751.86 100.00



22



Industrials 18.97 %

Financials 17.65 %

Energy 13.11 %


Countries and governments 7.83 %

Utilities 7.60 %


International institutions 4.21 %

Technologies 3.67 %


Total 90.67 %



Spain 34.70 %

Mexico 8.00 %



Russia 5.61 %

Turkey 4.72 %

Ireland 4.47 %

Luxembourg 4.21 %

Brazil 3.16 %

Canada 3.14 %

Cayman Islands 2.59 %

Portugal 2.19 %

France 2.03 %

Germany 1.32 %

Marshall Islands 0.65 %

Venezuela 0.32 %

Total 90.67 %



23


Shares

EUR Abertis Infraestructuras SA A 0 3,088 0 EUR Actividad Const y Servicios SA 0 0 46 EUR Banco Santander Reg SA 0 0 170 EUR Duro Felguera SA 0 62,787 0 EUR Iberdrola SA 0 0 452 EUR Mosenergo spons ADR repr 50 Shares 20,000 0 0 EUR Sacyr SA 40,000 0 1,587

Bonds

EUR Portugal 4.45% Sen 08/15.06.18 100,000 0 0

MXN America Movil SAB de CV 7.125% Reg S Sen 14/09.12.24

2,000,000 0 0

TRY EIB 0% EMTN Ser 144 A Sen 07/05.09.22 900,000 0 0 TRY SB Capital SA 7.4% LPN Reg S Ser 15 13/04.03.18 0 600,000 0 TRY Turkey 10.4% 14/27.03.19 200,000 0 0

Money market instruments

EUR Portugal 0% T-Bills Sen 17/19.01.18 60,000 160,000 0

RAINBOW FUND

Notes to the financial statements as at 31st March 2018

24

Note 1 - Significant accounting policies 1) Presentation of the financial statements

The financial statements of the Fund are prepared in accordance with the Luxembourg legal and regulatory requirements concerning undertakings for collective investment with generally accepted accounting principles in Luxembourg.

2) Valuation of assets

a) securities and financial derivative instruments listed or traded on any regulated market, stock exchange in an other state (“any State of Europe which is not a Member State, and any State of America, Africa, Asia and Oceania”) other regulated market are valued at the last available price on such markets. If a security or a financial derivative instrument is listed or traded on several markets, the last available price at the market which constitutes the main market for such securities or financial derivative instruments, will be determining;

b) securities not listed or traded on any regulated market, stock exchange in an other state or other

regulated market are valued at their last available market price;

c) securities for which no price quotation is available or for which the price is not representative of the fair market value, are valued prudently, and in good faith on the basis of their reasonably foreseeable sales prices;

d) the value of Money Market Instruments not listed or dealt in on any regulated market, stock

exchange in an other state (“any State of Europe which is not a Member State, and any State of America, Africa, Asia and Oceania”) or any other regulated market and with remaining maturity of less than 12 months and of more than 90 days is deemed to be the nominal value thereof, increased by any interest accrued thereon. Money Market Instruments with a remaining maturity of 90 days or less are valued by the amortised cost method, which approximates market value;

e) the financial derivative instruments which are not listed on any official stock exchange or traded on any other organised market are valued on a daily basis in accordance with market practice, with a constant, reliable and verifiable method;

f) Shares or Units in underlying open-ended investment funds are valued at their last available net

asset value.

g) in the event that extraordinary circumstances render such a valuation impracticable or inadequate, the Management Company is authorised, prudently and in good faith, to follow other rules in order to achieve a fair valuation of the assets of the Fund.

3) Acquisition cost of securities in the portfolio

The acquisition cost of the securities held by each Sub-Fund that are denominated in currencies other than the reference currency of the Sub-Fund is converted into this currency at the exchange rate prevailing on the date of purchase.

4) Net realised gain/(loss) on securities portfolio

The realised gains or losses on securities portfolio are calculated on the basis of the average acquisition cost.

RAINBOW FUND

Notes to the financial statements (continued) as at 31st March 2018

25

5) Investment portfolio income

Dividend income is recorded at the ex-date, net of any withholding tax. Interest income is recorded on an accrual basis, net of any withholding tax.

6) Formation expenses

Formation expenses were amortised on a straight line basis over a period of five years. 7) Conversion of foreign currencies

Cash at banks, other net assets and liabilities and the market value of the securities in portfolio expressed in currencies other than the reference currency of the Sub-Fund are converted into this currency at the exchange rate prevailing on the date of the financial statements. Income and expenses expressed in currencies other than the reference currency of the Sub-Fund are converted into this currency at the exchange rate prevailing on the date of the transaction.

8) Combined financial statements

The combined financial statements of the Fund are expressed in EUR and are equal to the sum of the corresponding items in the financial statements of each Sub-Fund.

Note 2 - Management fee The Board of Directors of the Fund has appointed ANDBANK ASSET MANAGEMENT LUXEMBOURG as the Management Company of the Fund. Management fees include Investment Management fees, Management Company and Risk Management fees. Note 3 - Investment Management fee The Management Company is entitled to receive an Investment Management fee, payable at the end of each quarter, at the following annual rates calculated on the average net assets of the relevant Sub-Fund for the quarter under review :

Sub-Funds Effective rates

- RAINBOW FUND - Balanced Portfolio 3 0.56% (with a minimum of EUR 10,800) p.a.

- RAINBOW FUND - Rainbow Flexible Allocation 0.25% (with a minimum of EUR 10,000) p.a.

- RAINBOW FUND - Emerging Market Equities 0.89% (with a minimum of EUR 10,800) p.a.

The remuneration of the Investment Advisor shall be paid by the Management Company out of the investment management fee as disclosed in the Prospectus.

RAINBOW FUND


26

Note 4 - Risk Management fees The Management Company is entitled to receive a Risk Management fee, payable at the end of each quarter, at the following annual rates calculated on the average net assets of the relevant Sub-Fund for the quarter under review :


- RAINBOW FUND - Balanced Portfolio 3 0.30% (with a minimum of EUR 9,000) p.a.

- RAINBOW FUND - Rainbow Flexible Allocation 0.15% for Class EUR with a minimum of EUR 20,000 p.a. for the Sub-Fund

- RAINBOW FUND - Emerging Market Equities 0.30% (with a minimum of EUR 19,000) p.a.

Note 5 - Depositary fees The Depositary is entitled to receive a variable fee, based on the average net assets of each Sub-Fund and payable monthly.This remuneration is subject to a minimum amount of EUR 8,500,- p.a. and per Sub-Fund out of the net assets at the end of the month. Note 6 - Distribution fees The Management Company is entitled to receive a distribution fee payable monthly in arrears, at the following rates calculated on the average net assets of the relevant Sub-Fund for the month under review:


- RAINBOW FUND - Balanced Portfolio 3 1.33% (until 18th February 2018)

1.13% (since 19th February 2018)

- RAINBOW FUND - Rainbow Flexible Allocation N/A

- RAINBOW FUND - Emerging Market Equities 2.10% (until 18th February 2018)

1.90% (since 19th February 2018)

Note 7 - Domiciliation fees The Management Company is entitled to receive a domiciliation fee, payable yearly in advance, for the amounts EUR 5,000 per Sub-Fund and per year. Note 8 - Central Administration fees (including the registrar and transfer service) The Administrative Agent will receive, out of the assets of each Sub-Fund, a remuneration calculated in accordance with customary banking practice in Luxembourg and expressed as a percentage per annum of the average monthly net assets thereof during the month under review and payable monthly in arrears. This remuneration amounts to a fee of maximum 0.008 % p.a. and per Sub-Fund out of the assets under administration, plus a fixed fee of 16,000 p.a. and per Sub-Fund for a fortnightly net asset calculation. The Depositary and the Administrator, Registrar and Transfer Agent are also entitled to transaction-based fees in accordance with its normal commercial scale as agreed with the Management Company, as well as reimbursement of its out-of-pocket expenses incurred by it on behalf of the Fund and/or the

RAINBOW FUND


27

Management Company and is finally entitled to receive fees in relation to the activity of compliance monitoring. Note 9 - Subscription, redemption and conversion fees Units are issued on any Valuation Day, provided that the request for subscription is received in Luxembourg prior to 2 p.m. (Luxembourg time) on the day immediately preceding the applicable Valuation Day. For all subscriptions, an issue commission may be added to the payment of the investor, of up to a maximum of 5%. The redemption price is equal to the net asset value per unit determined as of the day on which the redemption request is received by the Management Company, provided the request is received by the Management Company prior to 2 p.m. (Luxembourg time), on the day immediately preceding the applicable Valuation Day. No early redemption fees were applied during the period. Note 10 - Subscription duty ("taxe d’abonnement") The Fund is governed by Luxembourg Law. Pursuant to the legislation and regulations which are prevailing, the Fund is subject to an annual subscription duty (“taxe d’abonnement”) of 0.05% which is payable quarterly and calculated on the basis of the net assets of each Sub-Fund on the last day of each quarter. The rate of this tax is reduced to 0.01% for the class I share reserved to institutional investors. Pursuant to Article 175 (a) of the amended Law of 17th December 2010 the net assets invested in undertakings for collective investments already subject to the "taxe d’abonnement" are exempt from this tax.

RAINBOW FUND

Additional information as at 31st March 2018

28

Information concerning the transparency of securities financing transactions and of reuse of cash collateral (regulation EU 2015/2365, hereafter "SFTR") During the reporting period, the Fund did not engage in transactions which are subject to the publication requirements of SFTR. Accordingly, no information concerning the transparency of securities financing transactions and of reuse of cash collateral should be reported.

rainbow fund - andbank.com · unaudited semi-annual report as at 31st march 2018 rainbow fund ......

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