Sub-Investment Manager of the sub-fund “Bank of China International (BOCI) Commerzbank – Shanghai Stock Exchange 50 A Share Index. UCITS ETF”.
47 KB – 19 Pages
PAGE – 1 ============
Société d™Investissement à Capital Variable R.C.S Luxembourg N° B 201.144 Bank of China International (BOCI) Commerzbank, SICAV Annual Report From October 29, 2015 (date of incorporation) to December 31, 2016 (Audited) No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus and relevant Key Investor Information Document (“KIID”) which will be accompanied by a copy of the latest available annual report and a copy of the latest available semi-annual report, if published thereafter.
PAGE – 2 ============
Bank of China International (BOCI) Commerzbank, SICAV 1Table of Contents Management and Administration 2Directors’ report 4Audit report5Statistics7Shanghai Stock Exchange 50 A Share Index UCITS ETF Statement of Net Assets as at December 31, 2016 8Statement of Operations and Changes in Net Assets for the period ended December 31, 2016 8Statement of Changes in Number of Shares 8Securities Portfolio as at December 31, 2016 9Portfolio Breakdowns 10Top Ten Holdings 10Notes to the Financial Statements 11Total Expense Ratio (TER) and Portfolio Turnover Rate (PTR) as at December 31, 2016 (unaudited) 1Remuneration Policy (unaudited) 1Tracking Error as at December 31, 2016 (unaudited) 1
PAGE – 3 ============
Bank of China International (BOCI) Commerzbank, SICAV 2Registered office of the CompanyUntil March 8, 2016:25, rue Edward SteichenL-2540 Luxembourg, Grand Duchy of LuxembourgAs of March 8, 2016:60, avenue J.F. KennedyL-1855 LuxembourgGrand Duchy of LuxembourgBoard of Directors of the CompanyMr. Peter Corner, Chairman of the Board of Directors Commerzbank AG, London Branch, 30, Gresham Street, EC2P 2XY London, United KingdomMr. Mathias Turra, Member of the Board of DirectorsCommerz Funds Solutions S.A., 25, rue Edward Steichen, L-2540 Luxembourg, Grand Duchy of LuxembourgMr. Jörg Geiben, Member of the Board of DirectorsCommerzbank AG, Mainzer Landstraße 153, D-60327 Frankfurt am Main, GermanyDr. Qi Chen, Member of the Board of DirectorsCommerz Funds Solutions S.A., 25, rue Edward Steichen, L-2540 Luxembourg, Grand Duchy of LuxembourgManagement Company Commerz Funds Solutions S.A. 25, rue Edward SteichenL-2540 Luxembourg, Grand Duchy of LuxembourgBoard of Directors of the Management Company Mr. Thomas Timmermann, Chairman of the Board of DirectorsCommerzbank AG, Mainzer Landstraße 153, D-60327 Frankfurt am Main, GermanyMr. Hermann BergerCommerzbank AG, Mainzer Landstraße 153, D-60327 Frankfurt am Main, GermanyMr. Peter Corner Commerzbank AG, London Branch, 30, Gresham Street, EC2P 2XY London, United KingdomMr. Thomas Meyer zu Drewer Commerzbank AG, Mainzer Landstraße 153, D-60327 Frankfurt am Main, GermanyMr. Andreas Neumann Commerzbank AG, Mainzer Landstraße 153, D-60327 Frankfurt am Main, GermanyMr. Mathias TurraCommerz Funds Solutions S.A., 25, rue Edward Steichen, L-2540 Luxembourg, Grand Duchy of LuxembourgMr. Roberto VilaCommerzbank AG, London Branch, 30, Gresham Street, EC2P 2XY London, United KingdomInvestment ManagerCommerzbank AG, Mainzer Landstraße 153, D-60327 Frankfurt am Main, GermanySub-Investment Manager of the sub-fund Bank of China International (BOCI) Commerzbank – Shanghai Stock Exchange 50 A Share Index UCITS ETFBOCI-Prudential Asset Management Limited 27/F, Bank of China Tower, 1 Garden Road, Hong KongManagement and Administration
PAGE – 4 ============
Bank of China International (BOCI) Commerzbank, SICAV 3Custodian and Paying AgentBNP Paribas Securities Services – Luxembourg Branch 60, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of LuxembourgRegistrar and Transfer AgentBNP Paribas Securities Services – Luxembourg Branch 60, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of LuxembourgAdministrator and Domiciliary AgentBNP Paribas Securities Services – Luxembourg Branch 60, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of LuxembourgAuditorPricewaterhouseCoopers, Société coopérative 2 rue Gerhard Mercator, B.P. 1443 L-1014 Luxemburg Grand Duchy of LuxembourgManagement and Administration (continued)
PAGE – 6 ============
pwc Audit report To the Shareholders of Bank of China International (BOCI) Commerzbank, S1CAV Following our appointment by the General Meeting of the Shareholders, we have audited the accompanying financial statements of Bank of China International (BOCI) Commerzbank, SICAV (the “Company) and of its sub-funds, which comprise the Statement of Net Assets and the Securities Portfolio as at December 31, 2016 and the Statement of Operations and Changes in Net Assets for the period then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the Company for the financial statements The Board of Directors of the Company is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the “R•yiseur d’entreprises agree” Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the “R•yiseur d’entreprises agree, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the “R•yiseur d’entreprises agree considers internal control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the Company, as well as evaluating the overall presentation of the financial statements We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of Bank of China International (BOCI) Commerzbank, SICAV and of its sub-funds as of December 31, 2016, and of the results of their operations and changes in their net assets for the period then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements PricewaterhouseCoopers, Societe cooperative, 2 rue Gerhard Mercator, B P 1443, L-1014 Luxembourg T +352 494848 1, F:+352 494848 2900, www.pwc lu Cabinet de revision agree. Expert-comptable (autorisation gouvernementale n†10028256) R. C S. Luxembourg B 65 477 – WA LU25482518 5
PAGE – 8 ============
Bank of China International (BOCI) Commerzbank, SICAV 7The accompanying notes are an integral part of these financial statements. Statistics *No information available for December 31, 2015 due to an extended audit period from October 29, 2015 (date of incorporation) to December 31, 2016. **Class A (RMB) D has been launched on November 12, 2015. ***Class A (EUR) D has been launched on November 30, 2016. Shanghai Stock Exchange 50 A Share Index UCITS ETF Net Asset Value 77,341,190.11 –CNHNet asset value per share A (EUR) D12.59–EURA (RMB) D92.07–CNH Number of shares A (EUR) D70,000.00–A (RMB) D770,000.00– December 31, 2014 December 31, 2016 December 31, 2015
PAGE – 9 ============
8The accompanying notes are an integral part of these financial statements. Bank of China International (BOCI) Commerzbank, SICAV Shanghai Stock Exchange 50 A Share Index UCITS ETF (in CNH) Statement of Operations and Changes in Net Assets for the period ended December 31, 2016 CNHAssetsInvestment in securities at cost 2.574,124,508.59 Unrealised appreciation / (depreciation) on securities 2.32,079,028.71 Investment in securities at market value 2.276,203,537.30 Cash at bank 236,380.57Formation expenses 71,145,696.45 Total assets77,585,614.32 LiabilitiesAccrued expenses 8244,424.21 Total liabilities 244,424.21Net assets at the end of the period 77,341,190.11 NotesStatement of Net Assets as at December 31, 2016 IncomeDividends (net of withholding taxes) 1,066,548.62Bank interest509.88Other income106,767.36Total income 1,173,825.86ExpensesAll-in fees6337,542.51 Transaction costs 10139,898.83 Amortisation of formation expenses 7143,653.75 Other expenses 9252,689.98 Total expenses 873,785.07Net investment income / (loss) 300,040.79Net realised gain / (loss) on: Investments2.3(86,043.88) Foreign currencies transactions (135,939.39)Net realised gain / (loss) for the period 78,057.52Net change in unrealised appreciation / (depreciation) on: Investments2.22,079,028.71 Increase / (Decrease) in net assets as a result of operations2,157,086.23Proceeds received on subscription of shares 75,184,103.88 Net amount paid on redemption of shares -Net assets at the beginning of the period -Net assets at the end of the period 77,341,190.11 CNHNotesStatement of Operations and Changes in Net Assets for the period ended December 31, 2016 Number of shares in issue at the end of the period Number of shares in issue at the beginning of the period Number of shares subscribedNumber of shares redeemedStatement of Changes in Number of Shares A (EUR) D-70,000.00-70,000.00A (RMB) D-770,000.00-770,000.00
PAGE – 10 ============
Bank of China International (BOCI) Commerzbank, SICAV 9Shanghai Stock Exchange 50 A Share Index UCITS ETF (in CNH) The accompanying notes are an integral part of these financial statements. Securities Portfolio as at December 31, 2016 AGRICULTURAL BANK OF CHINA-A CNY 2,116,680.00 2.74 682,800.00 Transferable securities admitted to an official exchange listing Shares Banks BANK OF BEIJING CO LTD -A CNY 2,834,304.00 3.66 290,400.00 BANK OF CHINA LTD-A CNY 2,476,800.00 3.20 720,000.00 BANK OF COMMUNICATIONS CO-A CNY 2,859,612.00 3.70 495,600.00 CHINA CITIC BANK CORP LTD-A CNY 415,368.00 0.54 64,800.00 CHINA EVERBRIGHT BANK CO-A CNY 1,107,312.00 1.43 283,200.00 CHINA MERCHANTS BANK-A CNY 4,053,297.60 5.24 230,301.00 CHINA MINSHENG BANKING-A CNY 3,649,433.60 4.72 401,920.00 IND + COMM BK OF CHINA – A CNY 1,905,120.00 2.46 432,000.00 INDUSTRIAL BANK CO LTD -A CNY 4,532,112.00 5.87 280,800.00 SHANGHAI PUDONG DEVEL BANK-A CNY 2,395,189.60 3.10 147,760.00 28,345,228.80 36.66 CHINA MERCHANTS SECURITIES-A CNY 744,648.00 0.96 45,600.00 Financial services CITIC SECURITIES CO-A CNY 2,524,632.00 3.26 157,200.00 DONGXING SECURITIES CO LT-A CNY 746,232.00 0.96 37,200.00 EVERBRIGHT SECURITIE CO -A CNY 786,708.00 1.02 49,200.00 GUOTAI JUNAN SECURITIES CO-A CNY 1,695,408.00 2.19 91,200.00 HAITONG SECURITIES CO LTD-A CNY 2,589,300.00 3.36 164,400.00 HUATAI SECURITIES CO LTD-A CNY 964,440.00 1.25 54,000.00 INDUSTRIAL SECURITIES CO-A CNY 642,600.00 0.83 84,000.00 ORIENT SECURITIES CO LTD-A CNY 1,546,788.00 2.00 99,600.00 SINOLINK SECURITIES CO LTD-A CNY 390,900.00 0.51 30,000.00 12,631,656.00 16.34 AVIC AVIATION ENGINE CORP-A CNY 432,168.00 0.56 13,200.00 Insurance CHINA LIFE INSURANCE CO-A CNY 693,792.00 0.90 28,800.00 CHINA PACIFIC INSURANCE GR-A CNY 1,532,904.00 1.98 55,200.00 NEW CHINA LIFE INSURANCE C-A CNY 472,824.00 0.61 10,800.00 PING AN INSURANCE GROUP CO-A CNY 7,651,108.50 9.89 215,950.00 10,782,796.50 13.94 INNER MONGOLIA YILI INDUS-A CNY 1,584,000.00 2.05 90,000.00 Food services KWEICHOW MOUTAI CO LTD-A CNY 3,207,840.00 4.15 9,600.00 4,791,840.00 6.20 CHINA STATE CONSTRUCTION -A CNY 2,317,776.00 3.00 261,600.00 Real estate POLY REAL ESTATE GROUP CO -A CNY 1,139,424.00 1.47 124,800.00 3,457,200.00 4.47 CHINA NATIONAL NUCLEAR POW-A CNY 1,211,496.00 1.56 171,600.00 Energy CHINA PETROLEUM + CHEMICAL-A CNY 1,110,132.00 1.44 205,200.00 PETROCHINA CO LTD-A CNY 534,240.00 0.69 67,200.00 2,855,868.00 3.69 CHINA SHIPBUILDING INDUSTR-A CNY 1,123,056.00 1.45 158,400.00 Auto Parts & Equipment SAIC MOTOR CORP LTD-A CNY 1,463,280.00 1.89 62,400.00 2,586,336.00 3.34 BEIJING XINWEI TECHNOLOGY -A CNY 753,360.00 0.97 51,600.00 Telecommunication CHINA UNITED NETWORK-A CNY 1,815,804.00 2.35 248,400.00 2,569,164.00 3.32 CHINA COMMUNICATIONS CONST-A CNY 401,016.00 0.52 26,400.00 Building materials CHINA RAILWAY CONSTRUCTION-A CNY 717,600.00 0.93 60,000.00 CHINA RAILWAY GROUP LTD-A CNY 903,720.00 1.16 102,000.00 2,022,336.00 2.61 CRRC CORP LTD-A CNY 1,582,740.00 2.05 162,000.00 Diversified machinery 1,582,740.00 2.05 Denomination Quantity/ Nominal Market value in CNH Currency %NAV DAQIN RAILWAY CO LTD -A CNY 1,571,760.00 2.03 222,000.00 Transportation 1,571,760.00 2.03 CHINA NORTHERN RARE EARTH -A CNY 471,168.00 0.61 38,400.00 Metal CHINA SHENHUA ENERGY CO-A CNY 660,144.00 0.85 40,800.00 1,131,312.00 1.46 KANGMEI PHARMACEUTICAL CO-A CNY 1,092,420.00 1.41 61,200.00 Cosmetics 1,092,420.00 1.41 SHANGHAI ORIENTAL PEARL ME-A CNY 782,880.00 1.01 33,600.00 Distribution & Wholesale 782,880.00 1.01 76,203,537.30 98.53 Total securities portfolio 76,203,537.30 98.53 Denomination Quantity/ Nominal Market value in CNH Currency %NAV Summary of net assets %NAV 76,203,537.30 98.53 Total securities portfolio 236,380.57 0.31 Cash at bank 901,272.24 1.16 Other assets and liabilities 77,341,190.11 100.00 Total net assets
PAGE – 11 ============
Bank of China International (BOCI) Commerzbank, SICAV 10Shanghai Stock Exchange 50 A Share Index UCITS ETF (in CNH) The accompanying notes are an integral part of these financial statements. Investment category % of portfolio % of netassetsShares 100.00 98.53 100.00 98.53 Country allocation % of portfolio % of netassetsChina 100.00 98.53 100.00 98.53 Portfolio Breakdowns Top Ten Holdings Market value% ofnetassetsPING AN INSURANCE GROUP CO-A 7,651,108.50 9.89 Insurance INDUSTRIAL BANK CO LTD -A 4,532,112.00 5.87 Banks CHINA MERCHANTS BANK-A 4,053,297.60 5.24 Banks CHINA MINSHENG BANKING-A 3,649,433.60 4.72 Banks KWEICHOW MOUTAI CO LTD-A 3,207,840.00 4.15 Food services BANK OF COMMUNICATIONS CO-A 2,859,612.00 3.70 Banks BANK OF BEIJING CO LTD -A 2,834,304.00 3.66 Banks HAITONG SECURITIES CO LTD-A 2,589,300.00 3.36 Financial services CITIC SECURITIES CO-A 2,524,632.00 3.26 Financial services BANK OF CHINA LTD-A 2,476,800.00 3.20 Banks CNHSectorTop Ten Holdings
47 KB – 19 Pages