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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 |
From Apr 2019 to Apr 2024
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
Hot Features
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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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