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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Himalayan Fd | LSE:HYF | London | Ordinary Share | NL0000464154 | ORD EUR0.01 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 35.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMHYF
RNS Number : 8797W
Himalayan Fund N.V.
29 April 2016
Chairman's Letter 2015
Dear Shareholders,
Last year, I coined the sporting phrase "a game of two halves" to describe the performance of Indian equity markets. In 2015 the phrase can similarly be applied to global equity investing. In the first half, we saw optimism holding sway and driving markets steadily upwards through May. Then widespread panic over the possibility of a very hard landing in China brought markets down to a trough in August and shrouded the global economic outlook in pessimism. Equity markets recovered their composure sporadically through
year-end, bringing the second half to a close with widespread small loses for the year. The MSCI All Countries World Index lost 2.7% for the year, with Europe losing 5.4%, offset by a 4.7% gain in the Far East. In developed country indices, the US registered -0.8%, the UK -11% and Japan, on the back of strong monetary stimulus gained 7.8%. The Emerging Markets segment was dominated by a roller-coaster ride in China, which closed with a loss of 10% for the year..
In India, our benchmark, the re-named Nifty 50 Index in USD lost 8.4%, including a 4.8% depreciation of the Rupee against the US Dollar. The Net Asset Value per share of your Fund fell by $0.37 from $51.01 to $50.64 in 2015, a decrease of 0.7%. It is with distinctly mixed feelings, therefore, that I can report outperformance of the Fund by 7.7 percentage points relative to our performance benchmark, though in a falling market.
Soft commodity prices continued to prevail in 2015, providing a benign inflation context in the global economy. The striking feature, however, was the comprehensive collapse in the price of oil, as Saudi Arabia pumped hard to maintain market share of production against upstart shale producers in the US. The resulting "consumer dividend" was slow to materialize but the startling side-effect was to present monetary policymakers with the problem of deflation. Between aggressive quantitative easing and, eventually negative interest rates central banks duly responded but by year-end their armoury was starting to look exhausted. In the absence of much- needed structural reform in Europe in particular and with fiscal policy action seemingly off the menu, the outlook for global economic growth remains weak.
In 2015, India appeared to plot a distinctive course amongst emerging economies. Major risk factors, such as a dramatic slowdown in Chinese growth, soft global growth and heightened geo political risks were muted in their effects. The oil price collapse, on the other hand, has been a major positive. The Rupee was relatively resilient compared to double-digit depreciation in some major currencies, like the Euro. This was a reflection of strong FDI flows as well as the fact that foreign portfolio investors continued to be net buyers of Indian equities for the fourth successive year, albeit at the subdued level of just $3.2bn. Domestic institutional investors became a significant factor in the local markets, buying a net $11bn in cash equity. This may be the consequence of a government initi ative to encourage investors to switch from physical to financial assets.
The Modi government has drawn much criticism for perceived failure to reform key policy areas. The introduction of nationwide GST has been thwarted by political obstruction. Other major reforms such as in land acquisition and employment law have also been frustrated. On the other hand, there have been significant policy achievements, which have added economic substance and external stability. A headline success has been the development of a stable monetary policy framework and effective management of the monetary aggregates by the RBI. This has been consistently supported by a commitment to fiscal consolidation by central government, which has been substantially helped by the declining price of energy. The net effect has been that by year-end, India was firmly on a path of monetary easing and effective liquidity management, with a current account deficit down to 1.7% of GDP, a fiscal deficit below 4% of GDP and inflation comfortably within the RBI's target of 5%. Meanwhile, India's external reserves stand near recent peak levels of $350 billions.
Throughout 2015, we maintained our overweight positions in the Healthcare and Consumer Goods sectors. In Healthcare, we varied the relative holdings in Lupin (an index stock) and Torrent Pharma (non-index) and at year-end our Sector weighting was about double the index weight, at 14.7%. In Consumer Goods, we also held a weighting of just over twice the index, at 20.9%. Pidilite Industries, a market leader in adhesives, is our largest holding and we anticipate sustained earnings growth as aggregate demand accelerates. Our Financial Sector exposure is still concentrated in the private sector, where asset quality is better and the risks associated with the application of more strenuous provisioning norms by the RBI are lower. Our largest holding is in Kotak Mahindra Bank, which is coming to the end of a successful integration of its acquisition of ING Vysia Bank. Its high quality management and asset base, combined with operational benefits from the acquisition give us confidence in sustained earnings growth. We conti nue to steer clear of the Telecoms Sector, where we find regulatory and competition risks to be of concern. In Metals and Mining, global depression is enough to warn us off and in Transport, we have not yet found a compelling case to take on exposure.
Late in the year, we initiated a small position in a non-index IT stock, Firstsource Solutions and our timing was rewarded with a return
contribution of 35.2%. Otherwise our Healthcare stocks were the top contributors: Lupin returned 27.7% and Torrent Pharma 20%. The next biggest contributor was Indian Hotels, which we added during the year and brought us a return of 21%. Indraprashtha Gas, which we re-entered during the year, returned 20.1%. In the Financial Sector, Kotak Mahindra added 12.7% and HDFC Bank 12%. On the downside, South Indian Bank disappointed and we sold our position and ICICI Bank (-38.7%) and Axis Bank (-26.6%) both suffered following unexpectedly large loan loss provisions. We had an interest in thirty stocks in total during the year, of which half generated positive returns and the other half negative. On average, the portfolio held about twenty-two positions.
We continue to pursue our long-term strategic objective of generating outperformance by selecting stocks with visible earnings growth potential over the medium term, while demonstrating high governance standards. We are quite prepared to be absent from an industry sector if we cannot see the possibility of it contributing to our overall objective. Equally, we are happy to hold c oncentrated positions at both sector and stock levels and we believe this approach has contributed substantially to recent outperformance.
Once again we note that investment strategists have been advising clients to avoid emerging markets. This year, however, they are making an exception in the case of India, where forecasts of GDP growth in the 7-7.5% range mean the country looks like being the fastest-growing large economy. It is at last being recognised that in a fairly weak global context India offers economic and policy stability and the prospect of attractive equity returns as a consequence. Low-key yet sustained reform measures, public sector investment with enhanced execution and a positive outlook for growth in consumer demand should eventually drive a recovery in private sector investment. With the Indian economy running on all three growth drivers, expanding aggregate demand, as well as public and private sector investment, the outlook for equity returns is good.
Once again I thank our long-standing shareholders for their continued commitment and our friends and associates at Indasia Fund Advisors in Mumbai, whose support has again been invaluable. We continue to look for new promoters for the Fund and at the time of writing have discussions under way with a number of parties.
Ian McEvatt
29 April 2016
Directors' Report 2015
The Fund
In the Financial Year ended December 31st 2015, the Net Asset Value (NAV) per share of the Fund fell from $51.01 to $50.64, a difference of 0.7%. The first Execution Day on NYSE Euronext Amsterdam in 2015 was January 2nd, when the Transaction Price for the Fund's Ordinary Shares was $51.76; the last Execution Day was December 28th, when the transaction Price was $50.63. The difference of $1.13 represented a decline of 2.2%. Between the same two dates, the Nifty 50 Index in US Dollar terms fell from 4596 to 4152, a difference of 9.7%. Thus the Transaction Price outperformed the Fund's performance benchmark by 7.5% in the holding period in question.
At the start of 2015, there were 235,416 Ordinary Shares of the Fund in the hands of shareholders. By the end of the year, the number had fallen to 207,748, a drop of 11.8%. In the face of weak sentiment on equity investment in general and in the absence of a substantial trigger for upward movement in the Indian market we experienced a steady flow of small redemptions through the year.
The Portfolio
We started the year with twenty-one holdings in the portfolio; the top ten holdings represented 74.1% of the portfolio and 51.4% of the total value was invested in stocks which are components of the Nifty Index. The largest sectoral concentrations were Financials, with 25.1% of the portfolio, Consumer Goods, with 22.5%, Healthcare with 18.6% and IT with 13.8%. We had no exposure to Metals and Mining, Construction or Telecom stocks.
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Portfolio turnover during the year was 51.6% as we held a total of 30 stocks for some period during the year and ended with 24 holdings. At year-end, our sectoral distribution was dominated by the same sectors, though the weightings reflected the degree of relative performance. Financials made up 29.5%, Consumer Goods 18.2%, Healthcare 14.4% and IT 13.8%. Meanwhile, exposure to the Auto Sector was reduced to a single two-wheeler manufacturer, at 4.7%. We re-entered the Construction Sector with a 5.4% holding in non-index engineering and construction counter. The Energy and Industrials Sectors were stable at around 2% of the portfolio.
At year-end, the top four holdings had an aggregate weight of 35% and one, Kotak Mahindra Bank, stood at 10.6%. There were 24 holdings; the top ten represented 68.3% of the portfolio and 49% of the portfolio comprised stocks which were components of t he benchmark index.
Administration
The legal structure of the Fund did not change in 2015. The Board is still in direct control of investment management through the Investment Committee, which is convened by the Chairman, who also acts as record-keeper. Caceis Bank Luxembourg Amsterdam Branch (formerly Caceis Netherlands NV) continues as the Administrator and AIFMD Depository of the Fund and calculates the Net Asset Value on a weekly basis. Citibank Mumbai is the local Custodian of the Fund. During the year under review and so far as your Board is aware, the Fund has effectively
operated in conformity with the Administrative Organization and Internal Control procedures.
In 2015, your Board held four formal Board Meetings and conducted one Annual General Meeting.
The Investment Committee continued to receive research services from the Chairman of the Fund and from Indasia Fund Advisers Pte. Limited, of Mumbai. The Board is satisfied that it has the substance and procedures to carry out these responsibilities in a suitable manner and that the Fund's portfolio is consistent with the long-term investment objective.
The Board reviews the conduct of the administration of the Fund by the Administrator at regular management meetings. The Directors believe that the Administrator is capable of exercising the appropriate level of control over the operations of the Fund and has done so during the year under review.
Emerging markets investment was not a popular choice in 2015 and attempts at raising new money for the Fund were not successful. Nonetheless, we were asked during the year to clarify the Fund's stance on paying marketing rebates or trail fees. The Fund's Ordinary Shares are not and never have been "rebate shares" and the Fund has no agreements in place to pay rebates to intermediaries.
The Directors continue to manage expenditure tightly though further significant cost reduction is difficult. The TER decreased in 2015, in spite of the reduction in the value of total assets, the denominator in the calculation, thanks to tight expense control. We are actively working to generate new inflows to the Fund and believe that renewed prospects for attractive returns from investing in India will help with the effort. Any success in doing so will lead to a steady reduction in the TER.
Compliance
In preparation for each quarterly Board meeting, the Fund's Reporting Entity (Inviqta) prepared a checklist of compliance with corporate governance policy for the Oversight Entity (Mr. Dwight Makins) and the Board which was discussed during each Board meeting. There have been no breaches of the corporate governance policy during the year 2015.
The Fund is a long only equity fund and as such does not use leverage or derivatives in its portfolio. Thus the portfolio is exposed fully to the market price movements in its holdings of Indian stocks. There were no significant holdings of debt instruments in the portfolio, so there is no exposure to credit risk. The Fund does not engage in securities' lending and has confirmed with its custodian that its stocks have not been used for securities' lending. As a matter of policy, the Fund does not hedge currency exposure in the portfolio. In 2015, the Rupee depreciated by 4.8% against the US dollar and this affected the portfolio valuation. This depreciation happened in spite of the balance of payments enjoying the benefit of a rapid fall in the price of energy, one of its key components. The principal negative influences were weak manufacturing exports and volatile foreign portfolio investment flows. There were no instances during the year when market liquidity suffered disruptive events which might have prevented orderly execution of orders.
Beyond the portfolio, the Investment Committee monitors the performance of market counterparties, notable stock brokers and custodians. We monitor the performance of brokers on a regular basis, taking account of execution, price, research and sales support. Transactions are allocated equally between brokers, though volumes can vary depending on specialist skills demonstrated, such as execution in particular market segments or sectors. We experienced no problems due to market disruption of execution failures during 2015. Payment of commission rebates is not a normal practice in Indian markets and the Fund does not maintain soft-dollar arrangements, nor has it any intention of doing so.
We continue to receive excellent service from our local market custodian and had no operational problems or failures in reporting during
the year.
Risk management
Board Member Mr. Robert Meijer is responsible for oversight of risk management and reports accordingly to the Board. The key risk management guidelines concern concentration in the portfolio and dispersion of risk. We monitor the aggregate value of the top four holdings against a guideline of 40%. We further observe a 10% limit on the value of any stock holding. If the value of a hol ding exceeds this limit due to appreciation, the holding is reviewed regularly by the Investment Committee and adjusted where appropriate. Finally, in order to ensure our stock holdings can contribute to performance, we generally apply a minimum target weight of 2.5% although for tactical reasons an initial purchase may be smaller.
During the year, the upper concentration limits have been exceeded due to market appreciation; the positions concerned have been monitored by the Investment Committee and appropriate action taken when necessary.
In terms of risk analysis, the Board monitors the Synthetic Risk and Reward Indicator (SRRI) prescribed in Article 8 and Annex I of the KII implementing Regulation on a monthly basis. According to the SRRI calculation over a five-year timespan, your Fund is in category 6 for risk evaluation purposes and this is reflected in the KID statement on the Fund's website. This risk rating is due to a sustained period of stable returns over the timespan of the analysis. This is not typical for an emerging markets fund and the Directors feel the indicator does not adequately reflect the risk of higher levels of return fluctuation than in developed markets. There are additional risks involved in emerging markets investing, including exchange rate risk, market risk arising from liquidity flows, operational risk from weaknesses in local systems and process failure and focused strategy risk where concentrated investment strategy may lose the benefits of diversification.
The following quantitative risk data cover sixty valuation periods which ended on an NAV calculation date during 2015. The mean return for the portfolio over the sixty periods was 0.01% per period; the comparable figure for the benchmark was -0.12%, reflecting mean portfolio outperformance of 13 basis points per period. The standard deviation of returns was 1.9 for the portfolio and 2.3 for the benchmark, showing less dispersion of returns around the mean for the portfolio than for the benchmark.
The highest loss in any period was 4.7% for the portfolio and 5.1% for the benchmark and during the year, the portfolio had 30 out of
sixty periods of positive return by comparison with 29 for the benchmark.
Relative to the benchmark, the portfolio had a Tracking Error of 1.2 and an Information Ratio of 4.1 for the year. These two ratios demonstrate that the risk and portfolio management decisions taken during the year provided consistent added value in portfolio returns relative to the benchmark.
The Outlook
The Directors would like to thank our shareholders for their continuing support of the Fund. The Indian market started 2016 weakly, in keeping with global equity markets. At the time of writing, sentiment in India is improved, however, as monetary easing, combined with fiscal consolidation is perceived to be providing a stable policy environment. Government efforts to accelerate public sector investment appear to be bearing fruit and benign inflation is providing a basis for further interest rate cuts. Initial monsoon forecasts are very optimistic, as the El Nino effect weakens, so the contribution of agriculture to growth should accelerate, boosting rural consumer demand. Thus two major drivers of growth, consumer demand and public sector investment, should contribute strongly to GDP growth this year. They should also help to stimulate a long-awaited recovery in private sector investment which would have the economy driving on all growth cylinders. Fund policy is to invest in companies from a broad market universe selected for visible earnings growth potential and high governance standards. The Directors believe that Fund's portfolio is well positioned to benefit from India's leading growth prospects and renewed momentum in Indian markets.
Amsterdam, 29 April 2016
Board of Directors
Ian McEvatt, Chairman Dwight Makins
Robert Meijer
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Karin van der Ploeg
Financial statements Himalayan Fund N.V. Annual Report 2015 Balance sheet (before profit appropriation) 31-12-2015 31-12-2014 USD Notes USD Investments Securities 10.108.751 4.1 11.907.241 Other assets Cash at banks 465.306 5 200.116 Receivables Receivable on security transactions 94.841 6.1 - Due to subscriptions - 6.2 4.944 Other receivables - 6.3 - 94.841 4.944 Current liabilities (due within one year) Payable on security transactions 77.498 7.1 - Due to redemptions - 7.2 13.349 Other liabilities, accruals and deferred income 56.570 7.3 75.295 Total current liabilities 134.068 88.644 Total of receivables and other assets less current liabilities 426.079 116.416 Total assets less current liabilities 10.534.830 12.023.657 ------------ ------------ Shareholders' equity Issued capital 17.752 8.1 18.488 Share premium 18.504.968 8.2 19.947.953 General reserve -7.942.782 8.3 -11.914.402 Undistributed result current year -45.108 8.4 3.971.618 Total shareholders'equity 10.534.830 12.023.657 ------------ ------------ Net Asset Value per share 50,64 51,01 Profit & Loss account 01-01-2015 01-01-2014 31-12-2015 31-12-2014 USD Notes USD Income from investments Dividends 99.956 9.1 146.244 Interest income 40 9.2 4 Other income 483 9.3 71.492 100.479 217.740 Capital gains/losses Unrealised gains on investments 275.208 4 3.485.272 Unrealised losses on investments -2.224.393 4 -787.449 Realised price gains on investments 2.843.600 4 2.223.946 Realised price losses on investments -74.221 4 -103.730 Realised currency gains on investments - 4 9.647 Realised currency losses on investments -438.088 4 -521.817 Other exchange differences -36.614 -18.101 345.492 4.287.768 Expenses Investment research fees 191.179 10.1 176.087 Other expenses 299.900 10.2 357.803 491.079 533.890 Total investment result -45.108 3.971.618 ------------ ------------ Total investment result per ordinary share -0,22 16,87 Statement of Cash Flows 01-01-2015 01-01-2014 31-12-2015 31-12-2014 USD notes USD Cash flow from investing activities Income from investments 100.479 9 217.740 Expenses -491.079 10 -533.890 Result of operations -390.600 -316.150 Purchases of investments -2.827.529 4 -1.127.892 Sales of investments 5.008.125 4 4.268.428 2.180.596 3.140.536 Change in short term receivables -89.897 6 -4.944 Change in current liabilities 45.426 7 -132.047 -44.471 -136.991 Cash flow from investing activities 1.745.525 2.687.395 Cash flow from financing activities Received on shares issued 236.378 8 86.268 Paid on shares purchased -1.680.099 8 -2.886.814 Cash flow from financing activities -1.443.721 -2.800.546 Other exchange differences -36.614 -18.101 Change in cash and cash equivalents 265.190 -131.252 Cash and cash equivalents as at 1 January 200.116 331.368 ------------ ------------ Cash and cash equivalents as at 31 December 465.306 200.116 ------------ ------------ Notes 1 General Himalayan Fund N.V. ('the Fund') is an open-end investment company (in Dutch: beleggingsmaatschappij met veranderlijk kapitaal) incorporated under Dutch law and has its statutory seat in Amsterdam. The Fund is listed both on NYSE Euronext Amsterdam and on The London Stock Exchange. This annual report is prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code and the Act on the Financial Supervision (AFS) ("Wet op het financieel toezicht"). Since December 1991 the Fund is licensed to undertake investment activities according to the Act on the Financial Supervision. 2. Principles of valuation 2.1 Investments The investments are valued based on the following principles: - listed securities are valued at the most recent stockmarket price as at the end of the accounting period which can be considered fair value; - non or low marketable securities are, according to the judgement of the Investment Advisor, valued at the best effort estimated price, taking into account the standards which the Investment Advisor thinks fit for the valuation of such investments. Expenses related to the purchase of investments are included in the cost of investments. Sales charges, if any, are deducted from gross proceeds and will be expressed in the capital gains/losses. 2.2 Foreign currency translation Assets and liabilities in foreign currencies are translated into US dollars at the rate of exchange as at the balance sheet date. All exchange differences are taken to the profit and loss account. Income and expenses in foreign currencies are translated at the exchange rate as per transaction date. -------------------------------------------------------------------------------------------------- Rates of exchange as at 31 December 2015, equivalent of 1 US dollar: -------------------------------------------------------------------------------------------------- Euro 0,92056 Srilanka Rupee 144,24998 Indian Rupee 66,15622 Bangladesh Taka 78,47501 ----------------------------------- ----------- ------------------------------------- --------- 2.3 Other assets and liabilities Other assets and liabilities are stated at nominal value. If required, provisions have been taken for irrecoverable receivables. 2.4 Income recognition principles The result is determined by deducting expenses from the proceeds of dividend, interest and other income in the period under review. The realized revaluations of investments are determined by deducting the purchase price from the sale proceeds. The unrealized revaluations of investments are determined by deducting the purchase price or the balance sheet value at the start of the period under review from the balance sheet value at the end of the period under review. Brokerage fees payable on the acquisition of investments, if any, are considered to be part of the investments costs, and as a result, are not taken to the profit and loss account. 2.5 Cash flow statement The Cash Flow statement has been prepared according to the indirect method. 3. Risk Management
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Investing in emerging and developing markets carries risks that are greater than those associated with investment in securities in developed markets. In particular, prospective investors should consider the following: 3.1 Currency Fluctuations The Fund invests primarily in securities denominated in local currencies whereas the Ordinary Shares are quoted in US dollars. The US dollar price at which the Ordinary Shares are valued is therefore subject to fluctuations in the US dollar/ local currency exchange rate. 3.2 Counterparty Risk The Fund deals principally in listed stocks traded on the BSE and the NSE in India. All transactions are book-entry and settlement is fully automated. In the event of non-delivery by either side, the transaction fails. In this case recovery can be achieved by delivery against payment or the transaction abandoned. 3.3 Concentration Risk The investment restrictions for the Fund in section IX INVESTMENT POLICIES of the Prospectus, limit the possibility for concentration of risk by stock and sector. Investors should note that the portfolio will be concentrated in the Indian sub-continent. 3.4 Market Volatility Securities exchanges in emerging markets are smaller and subject to greater volatility than those in developed markets. The Indian market has in the past experienced significant volatility and there is no assurance that such volatility will not occur in the future. 3.5 Market Liquidity A substantial proportion of market capitalization and trading value in emerging markets can be represented by a relatively small number of issuers. Also, there is a lower level of regulation and monitoring of the activities of investors, brokers and other market participants than in most developed markets. Disclosure requirements may be less stringent and there may be less public information available about corporate activity. As a result, liquidity may be impaired at times of high volatility. The Indian markets have withstood high volatility in the recent past and recovered momentum because of excellent corporate results. This has shown that the liquidity in the shares of the top companies is strong, as further emphasized by demand for those shares through Depository Receipts in overseas markets. Furthermore, standards of governance and transparency are improving dramatically under the impetus of the regulatory bodies. Other contiguous markets are not necessarily the same and the Fund only invests in them with the utmost care. 3.6 Fund Liquidity The Fund's rules allow weekly purchases and sales of Ordinary Shares but in order to allow orderly management of the portfolio in the interest of continuing shareholders, the value of purchases may be limited to 5% of the net asset value of the Fund on any one Execution Day. 3.7 Political Economy The Fund's portfolio may be adversely affected by changes in exchange rates and controls, interest rates, government policies, inflation, taxation, social and religious instability and regional geo-political developments. 3.8 Legal and Regulatory Compliance The Fund is responsible for ensuring that no action taken by it or by any contracted service provider might cause a breach of any legal or regulatory requirement. The Fund and all of its service providers maintain adequate control procedures to guard against any such occurrence and these procedures are subject to regular review. Should such a breach occur inadvertently, control procedures should detect it and institute corrective action without delay. 3.9 Financial Crisis Almost uniquely amongst financial markets, the Indian financial sector was insulated against any consequences of the recent financial crisis by the tight control exercised by the RBI. Bank balance sheets were free of toxic assets and capital ratios were maintained. Ratios of non-performing assets remained within historic norms. 3.10 Credit risk The principal credit risk is counterparty default (i.e., failure by the counterparty to perform as specified in the contract) due to financial impairment or for other reasons. Credit risk is generally higher when a nonexchange-traded or foreign exchange-traded financial instrument is involved. Credit risk is reduced by dealing with reputable counterparties. The Fund manages credit risk by monitoring its aggregate exposure to counterparties. Notes to the Balance sheet 31-12-2015 31-12-2014 4. Investments USD USD 4.1 Statement of changes in securities Position as at 1 January 11.907.241 10.741.908 Purchases 2.827.529 1.127.892 Sales -5.008.125 -4.268.428 Unrealised gains on investments 275.208 3.485.272 Unrealised losses on investments -2.224.393 -787.449 Realised price gains on investments 2.843.600 2.223.946 Realised price losses on investments -74.221 -103.730 Realised currency gains on investments - 9.647 Realised currency losses on investments -438.088 -521.817 Position as at 31 December 10.108.751 11.907.241 ----------- ----------- Historical cost 6.520.663 6.369.968 The portfolio comprises of shares, mainly listed. The total unlisted shares held directly by the Fund amounted to USD 123,163 (2014: USD 114,616). The portfolio breakdown as at 31 December 2015 is specified on page 21 and 22 of this report. 4.2 Transaction costs The transaction costs for the purchase of investments are capitalized within the historical cost price and for sales the transaction costs are discounted from the sales price. Transaction costs in 2015 are USD 26,103 (2014: USD 18,811). 5. Cash at banks This includes immediately due demand deposits at banks. 6. Receivables 6.1 Receivable on security transactions These include transactions still unsettled as at the balance sheet date. 6.2 Other receivables These include other transactions still unsettled as at the balance sheet date. 7. Current liabilities (due within one year) 7.1 Payable on security transactions These include transactions still unsettled as at the balance sheet date. 7.2 Due to redemptions These include the debts in respect of the redemptions of shares Himalayan still unsettled as at the balance sheet date. 7.3 Other liabilities, accruals and deferred income Payable investment research fee 12.511 21.985 Payable administration fee 4.363 5.042 Payable auditors fee 19.954 22.409 Other expenses payable 19.742 25.859 56.570 75.295 ----------- ----------- 8. Shareholders' equity The authorised share capital of the Fund is EUR 60,000 (2014: EUR 60,000) and consists of: - Ordinary shares of EUR 0.01 each 5.000.100 - Priority shares of EUR 0.20 each 49.995 31-12-2015 31-12-2014 8.1 Issued capital number USD USD Ordinary shares: Position as at 1 January 235.416 4.258 4.189 Sold 4.406 44 18 Purchased -32.074 -321 -705 Revaluation -459 756 Position as at 31 December 207.748 3.522 4.258 ------------------ ----------- ----------- Priority shares: Position as at 1 January 49.995 14.230 14.230 Sold - - - Revaluation - - Position as at 31 December 49.995 14.230 14.230 ------------------ ----------- ----------- Total issued capital 17.752 18.488 ----------- ----------- As at 31 December 2015 the issued and subscribed share EUR EUR capital amounts to: (Ordinary shares, par value EUR 0.01 (2014: EUR 0.01) 4.450.005 44.500 44.500 (Priority shares, par value EUR 0.20 (2014: EUR 0.20) 49.995 9.999 9.999
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54.499 54.499 ----------- ----------- The Fund became open-ended on 7 April 2000. As at 31 December 2015 a total of 4,242,257 Ordinary Shares have been purchased, meaning that 207,748 Ordinary Shares are still outstanding as at 31 December 2015. Ordinary Shares purchased by the Fund are directly charged against capital and share premium. 8.2 Share premium USD USD Position as at 1 January 19.947.953 22.748.568 Received on shares sold 236.334 86.250 Paid on shares purchased -1.679.778 -2.886.109 Revaluation of outstanding capital 459 -756 Position as at 31 December 18.504.968 19.947.953 ----------- ----------- 31-12-2015 31-12-2014 USD USD 8.3 General reserve Position as at 1 January -11.914.402 -10.865.740 Transferred from undistributed result 3.971.620 -1.048.662 Position as at 31 December -7.942.782 -11.914.402 ------------------ ----------- 8.4 Undistributed result Position as at 1 January 3.971.620 -1.048.662 Transferred to general reserve -3.971.620 1.048.662 Total investment result -45.108 3.971.618 Position as at 31 December -45.108 3.971.618 ------------------ ----------- Three years Himalayan Fund N.V. 31-12-2015 31-12-2014 31-12-2013 Net Asset Value (USD x 1,000) Net Asset Value according to balance sheet 10.535 12.024 10.853 Less: value priority shares 14 14 14 10.521 12.010 10.839 ------------------ ------------------ ----------- Number of Ordinary Shares outstanding 207.748 235.416 304.103 Per Ordinary Share (USD) Net Asset Value share 50,64 51,01 35,64
Notes to the Profit & Loss account
9. Income from investments
9.1 Dividends
This refers to net cash dividends including withholding tax. Stock dividends are considered to be cost free shares. Therefore, stock dividends are not presented as income.
9.2 Interest income
Most of this amount was received on outstanding cash balances.
9.3 Other income
From 6 March 2009 this refers to the charges of 0.35% received on shares issued and repurchased.
These costs are to cover transaction costs in relation with the purchase and sale of Ordinary Shares and are booked as an income for the Fund.
01-01-2015 01-01-2014 10. Expenses 31-12-2015 31-12-2014 USD USD 10.1 Investment research fees Research Fee 162.271 161.900 Custody Fee and Charges 28.908 14.187 ---------- ---------- 191.179 176.087 ---------- ----------
Expenses directly related to the management of investments, like custody fees and transfer charges as well as other paying agent fees, are deducted from the result.
10.2 Other expenses Administration Fees and Charges 59.282 70.079 Company Secretarial and Domiciliation Fees 33.509 40.158 Bank Expenses 2.563 2.032 Regulatory Fees and Charges 19.938 23.886 Listing Expenses 19.000 19.250 Audit Fees 29.441 29.894 Fiscal Advisory Fees 14.500 11.960 Advertising and Promotion 8.287 20.595 Corporate Finance Fees - 30.000 Listing Agent Fees 36.720 48.655 Directors Fees 62.150 59.416 Board Expenses 25.370 20.390 Correspondent Bank fees 2.981 - Miscellaneous 2.667 4.457 VAT Reclaims previous years -16.508 -22.969 --------- --------- 299.900 357.803 --------- ---------
Audit fees include the audit of the financial statements by the external auditor Mazars amounting to USD 16,838 (2014: USD 15,250).
Ongoing Charges Ratio The Ongoing Charges Ratio (cost ratio) is calculated as follows: the total expenses of the Fund divided by the average NAV*. The Ongoing Charges Ratio of the Fund for the reporting period is equal to: 4.28 % (2014: 4.72 %). Turnover ratio The turnover ratio is calculated as follows: the total sum of purchases plus sales minus subscriptions minus redemptions divided by the average NAV *. The turnover ratio of the Fund for the reporting period is equal to: 51.62 % (2014: 21.41 %). * - The average Net Asset Value of the Company for reporting period is calculated as the sum of every available Net Asset Value in the current year divided by the number of observations. Comparison of real cost with cost according to Prospectus** According to Prospectus Actual costs USD USD Investment Research fee (1) 144.000 162.271 Administration fee (2) 59.282 59.282 Secretarial and Domiciliation fees (3) 33.509 33.509 Costs for the Board (4) 100.000 87.520 **- As per the Prospectus of 7 June 2010. 1) Ian McEvatt receives an annual fee of USD 114,000 for investment research and IndAsia Fund Advisors Pvt Ltd receives an annual fee of USD 42,000. According to the Prospectus the research investment fees amount USD 144,000. However, actual costs in 2014 amount USD 161,900. The difference is caused by increased research fees of Indasia Fund Advisors Pvt.Ltd. 2) CACEIS Bank Luxembourg Amsterdam Branch is paid a fixed fee of EUR 50,000 per year for administration services. 3) Inviqta has been appointed to provide domicile and company secretarial services to the Fund for a fixed fee of EUR 25,000 (exclusive VAT) per year. 4) The Prospectus states that the remuneration of the Directors is subject to a limit of USD 100,000 in aggregate per year. In 2014 the remuneration of the Directors was USD 62,985 (inclusive VAT) in total so far. Directors fees per person are as follows: Ian McEvatt: USD 10,000 (2013: USD 10,000); Dwight Makins: USD 18,500 (2013: USD 18,500); Robert Meijer: USD 22,385 (2013: USD 22,420); Karin van der Ploeg***: USD 12,100 (2013: USD 12,100). Board expenses (exclusive remuneration of the Directors) amount to USD 20,390 in 2014. *** Karin van der Ploeg is a partner of Inviqta. It has been agreed that members of the Board who are also directors/partners of the service providers of the Fund receive a fixed annual management fee of USD 10,000. Employees The Fund has no employees. Amsterdam, Day Month 2016 Board of Directors Ian McEvatt, Chairman Dwight Makins Robert Meijer Karin van der Ploeg Portfolio breakdown As per 31 December 2015 percentage of total Net Market value Asset Value India USD % Auto Ancilliary 497.550 4,7 13.000 Bajaj Auto 497.550 Construction 711.615 6,8 153.000 HeidelbergCement 186.867 135.369 Kalpataru Power Transmission 524.748 Consumer discretionary 661.162 6,3 240.000 Indian Hotels 423.543 150.000 VIP Industries 237.619 Consumer goods 1.539.747 14,6 28.000 Agro Tech Foods 229.333 3.500 Nestle India 308.331
(MORE TO FOLLOW) Dow Jones Newswires
April 29, 2016 09:55 ET (13:55 GMT)
120.000 Pidilite 1.002.083 Energy 319.849 3,0 40.000 Indraprastha Gas 319.849 Financials 2.813.710 26,7 60.000 Axis Bank 407.309 39.000 HDFC Bank 637.942 135.000 ICICI Bank 533.317 103.000 Kotak Mahindra Bank 1.121.061 82.348 Magma Fincorp 114.081 Healthcare 1.544.224 14,7 24.000 Lupin 666.513 40.000 Torrent Pharmaceuticals 877.710 Industrials 263.224 2,5 6.000 Nirvikara Paper Mills 5.369 25.000 Supreme Industries 257.855 Media 171.142 1,6 38.000 Shemaroo Entertainment 171.142 Technology 1.463.365 13,9 250.000 Firstsource Solutions 163.250 18.000 HCL Technologies 232.658 22.000 Infosys 367.596 19.000 Tata Consultancy 699.861 Total Equity 9.985.588 94,8 Cash and cash equivalents 549.242 5,2 Canbank mutual fund 123.163 Net 426.079 4,0 NAV: 10.534.830
HIMALAYAN FUND N.V.
NOTICE OF THE ANNUAL GENERAL MEETING OF SHAREHOLDERS
Notice is hereby given that the Annual General Meeting of Shareholders ("AGM") of Himalayan Fund N.V. (the "Fund") will be held on Thursday 16 June 2016 at 12h30 at Herengracht 124-128, 1015 BT Amsterdam.
The annual report 2015 is now available. Copies of the annual report 2015 and the agenda of the AGM are published on the website of the Fund: www.himalayanfund.nl and may be obtained free of charge at the registered office of the Fund:
Himalayan Fund N.V.
Legmeerdijk 182
1187 NJ Amstelveen
The Netherlands
T/F 020-6411161
karin@himalayanfund.nl
The Board of Directors
April 29, 2016
(i) Shareholders (and other persons/entities entitled to attend the AGM) registered in the administration of the intermediaries as defined in the Securities Giro Act (Wet giraal effectenverkeer) ("Intermediaries" or "Intermediary") on Thursday 19 May 2016 (the "Registration Date") who have notified their intention to attend the AGM will have access to the meeting;
(ii) A shareholder shall only be entitled to attend and vote at the AGM whether in person or by proxy if such shareholder has deposited documentary proof of his shareholding obtained from their Intermediary, at the Registration Date at the registered office of the Fund (see above) at the latest at Friday 10 June 2016 before 16h00 in respect of which the shareholder shall be issued a receipt. A receipt must be presented to gain entry to the meeting;
(iii) Any shareholder shall be entitled to attend and vote in person or by proxy at the above meeting;
(iv) A shareholder may appoint one or more proxies to attend and, on a poll, vote instead of that shareholder. A proxy need not be a shareholder of the Fund;
(v) All instruments of proxy must be deposited at the registered office of the Fund at the latest at Friday 10 June 2016 before 16h00. The lodging of a form of proxy does not prevent a shareholder from attending and voting if he wishes;
(vi) Persons who wish to attend the AGM may be requested to furnish proof of their identity by means of a valid identity document.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKCDPNBKDBQB
(END) Dow Jones Newswires
April 29, 2016 09:55 ET (13:55 GMT)
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