TIDMHYF
RNS Number : 2968Q
Himalayan Fund N.V.
29 August 2014
29 August 2014
Himalayan Fund N.V.
Semi Annual Report 2014
The complete version may be found on
http://www.himalayanfund.nl/annual-reports/
Contents
Multiple year overview Himalayan Fund
N.V. 3
Profile 4
Directors' Report 5
Financial statements 7
Balance sheet 8
Profit & Loss account 9
Statement of Cash Flows 10
Notes 11
Notes to the Balance sheet 13
Notes to the Profit & Loss account 16
Portfolio Breakdown 18
Other information 19
Himalayan Fund N.V.
open-end investment Fund (in Dutch: beleggingsmaatschappij met
veranderlijk kapitaal)
Registered office: c/o Inviqta
Legmeerdijk 182
1187 NJ Amstelveen
The Netherlands
Board of Directors: Ian McEvatt, Chairman
Dwight Makins
Robert Meijer *
Karin van der Ploeg *
Administrator: CACEIS Bank Luxembourg Amsterdam Branch
De Ruyterkade 6-i
1013 AA Amsterdam
The Netherlands
Custodian: Citibank
3rd Floor, Trent House
G Block, Plot No 60
Bandra Kurla Complex
Bandra (East) Mumbai - 400 051
India
Listing Agent / Bank /
Fund Agent: Kas Bank N.V.
Auditor: Mazars Paardekooper Hoffman Accountants N.V.
Mazars Tower, Delflandlaan 1
1062 EA Amsterdam
For information or Prospectus: Website:http://www.himalayanfund.nl
Email:karin@himalayanfund.nl
Phone: +31(0)206411161
* Dutch resident
Multiple year overview Himalayan Fund N.V.
30-06-2014 31-12-2013 31-12-2012 31-12-2011 31-12-2010
Net Asset
Value (USD
x 1,000)
Net Asset
Value
according
to balance
sheet 11,629 10,853 14,137 15,896 22,445
Less:
value
priority
shares 14 14 14 14 14
11,615 10,839 14,123 15,882 22,431
--------------------- ----------------------- --------------------- ------------------- ----------------------
01-01-2014 01-01-2013 01-01-2012 01-01-2011 01-01-2010
30-06-2014 30-06-2013 30-06-2012 30-06-2011 30-06-2010
Profit and
loss
(USD x 1,000)
Income from
investments 137 89 164 53 120
Capital
gains/losses 2,618 -1,256 690 -2,081 677
Expenses -277 -223 -291 -373 -384
Tax - 22 15.00 - -
Total
investment
result 2,478 -1,368 578 -2,401 413
---------------------- ------------------------ -------------------- -------------------- ---------------------
Number of
ordinary
shares
outstanding 258,309 347,373 432,610 346,405 408,135
Per ordinary
share
Net Asset
Value
share (USD) 44.97 34.65 35.03 50.97 49.98
Transaction
price Euronext
Amsterdam
end of
reporting
period
(USD) 44.28 33.81 33.89 50.79 49.44
Income from
investments
(USD) 0.53 0.26 0.38 0.15 0.29
Capital
gains/losses
(USD) 10.13 -3.61 1.59 -6.00 1.66
Expenses (USD) -1.07 -0.64 -0.67 -1.08 -0.94
Tax - 0.06 0.04 - -
Total
investment
result
(USD) 9.59 -3.93 1.34 -6.93 1.01
---------------------- ------------------------ -------------------- -------------------- ---------------------
Profile
General
Himalayan Fund N.V. (the "Fund") is an open-endinvestment
company (in Dutch: beleggingsmaatschappij met veranderlijk
kapitaal) incorporated under Dutch Law with its statutory seat
in Amsterdam, The Netherlands. The Fund has 4,450,005
Ordinary Shares and 49,995 Priority Shares in issue.
Objective
The Fund's principal objective is to generate long-term capital
appreciation for its shareholders by investing in the stock markets
of the Indian sub-continent. The Fund currentlyinvests only in the
Indian stock markets; the discretion to invest a small proportion
of the portfolio in contiguous markets is not currently exercised.
The Fund is registered as a Foreign Investment Institution (FII)
with the Securities and Exchange Board of India which enables it to
hold its own investments directly with its custodian, Citibank NA
in Mumbai.
Open-end status
The Fund is classified as an open-end investment company in The
Netherlands and its Ordinary Shares are traded weekly through the
Euronext Fund Service of NYSE Euronext Amsterdam. Liquidity is
assured by the Fund buying and selling its own shares in the market
at a Transaction Price based on Net Asset Value and holding
re-purchased shares in treasury pending re-sale.
Investment support
The Fund has entered into agreements with Mr. Ian McEvatt and
IndAsia Fund Advisors Pvt Ltd in Mumbai. Both parties provide the
Fund with research reports.
Registered office
The Fund has appointed Inviqta, a partnership of lawyers
established in Amstelveen, The Netherlands, to provide
domiciliation and company secretarial services.
Administrator
CACEIS Bank Luxembourg Amsterdam Branch (CBL AB) established in
Amsterdam, The Netherlands, has been appointed by the Fund as the
Administrator of Himalayan Fund N.V. CBL AB is an integral part of
an international fund administration network operating under the
CACEIS name.
Corporate Governance
The Board of Directors has adopted a Code of Governance
(Principles on Fund Governance) practice which is available for
downloading from the official website. The Fund does not actively
use its voting rights at shareholder meetings of companies in which
it has invested.
Taxation
In order to qualify as a Fiscal Investment Institution in The
Netherlands, the Fund is obliged to distribute all of its fiscal
income and will then be subject to 0% rate of Dutch corporate
income tax on its profits. It is the intention that the Fund is
managed in such a way as to maintain this status.
The Fund is registered as a Foreign Investment Institution with
the Securities and Exchange Board of India: this enables the Fund
to enjoy the benefits of the tax treaty between India and The
Netherlands, so that the proceeds of investment in India can be
received free of tax.
For the benefit of UK investors, the Fund has registered with
Her Majesty's Revenue and Customs (HMRC) as a Reporting Fund with
effect from financial year 2011. Subject to regular reporting
requirements, investment in the Fund by UK tax payers will enjoy
equivalent treatment to domestic mutual funds for UK tax purposes.
It's the Fund's intention to maintain compliance with the
requirements of Reporting Fund status.
When the Fund has held investments in Bangladesh and Sri Lanka
in the past, dividends received have been subject to withholding
tax which has been carried as an expense in the profit and loss
account. No capital gains tax is levied in Sri Lanka; the Fund has
been able to claim exemption from capital gains tax in Bangladesh
due to its tax exempt status in The Netherlands.
Directors' Report
The Fund
The Net Asset Value (NAV) per share of your Fund was US$44.97 on
June 30th, 2014, 26.2% higher than the closing NAV of $35.64 on
December 31st, 2013. Over the same period, the Fund's performance
benchmark, the S&P CNX Nifty index in US$ terms, advanced by
24.4%%. Thus, your Fund outperformed its benchmark by 1.8%. For
comparison purposes, the Transaction Price for the Fund's shares
was US$34.98 on January 3rd the first Execution Day of 2014 and on
June 27th, the last Execution Day of the period under review, the
Transaction Price was US$44.44, a rise of 27%. Over the comparable
period, the benchmark index rose
25.5%, including Rupee appreciation of 2.8% against the US
dollar.
The number of Ordinary Shares held by third parties on December
31st, 2013 was 304,503; by mid-year, this had fallen to 259,224.
The net turnover in the Fund's Ordinary Shares in the first half of
this year was just 14.8%. This year opened with almost all market
strategists forecasting that 2014 would be the year of the dollar
and that emergingmarkets across the board would be laggards as
investors withdrew funds in aversion to risk. In the event, dollar
weakness continued through the first half-year and some emerging
markets have turned out to be the best performing, supported by
sustained foreign portfolio flows. Investment in emerging markets
demands long-term commitment and in the first half of 2014, India
rewarded investors who stayed the course. We commend our
long-standing shareholders for their commitment and thank them for
their continuing loyalty.
The Market
The first half of 2014 was good for equity investors as the MSCI
World Index returned 4.9%, almost identical to the return achieved
in thecomparable period in 2013. Developed markets were solidly in
the black, the US up by 6.1%, Europe by 3.5% and the UK by
3.1%. In emergingmarkets, the MSCI Emerging Markets Index was
returned 4.8%, with Brazil and South East Asian markets
particularly strong. China, by contrast was a loser, with the MSCI
China index down 2.6% and the A share index sharply down, by
8.3%.
Against this background, India was a star turn amongst all
markets in the first half-year. In spite of broadly negative
forecasts at the outset, foreign portfolio investment was sustained
in the expectation of a change of government at national elections
in May. The outgoing Congress coalition surrendered all initiative
on the policy front and pretty much gave up the struggle against
the wave of electoral support for Narendra Modi's BJP juggernaut.
In the event, against expectations, the BJP won the first outright
majority in the Lok Sabha for twenty-five years, seizing power with
a declared intention of restoring growth and vigour in the
languishing economy. For most of the period though, the economy
still struggledunder the dead hand of the outgoing governmentfor
which the Finance Minister stuck to his word in reining in
expenditure to limit the fiscal deficit. Meanwhile, the RBI held
its relatively firm anti- inflationary stance, boosting reserves
and helping the current account deficit back to manageable levels.
This reversed the previous year's sharp depreciation of the Rupee
and nursed the exchange rate back to the Rs60/$1 level by end-June.
By the end of the period, investor sentiment was very positive, the
new governmentwas making the right noises and the markets were
awaiting the BJP's first budget as a harbinger of future
intent.
In the stock markets, daily trading increased steadily, so that
by the end of the period, daily trading volume was $3.5bn, well
above the trailing twelve month average of $2.6bn. Foreign
portfolio inflows amounted to almost $15bn by the end of June and
volatility generally subsided, except for some very short-lived
spikes. In contrast to developed markets, where recent advances
have been driven substantially by multiple expansion, valuation
parameters have not become too stretched. The price/earnings ratio
for the Nifty atmid-year was 14.5 in an historic range of 10 to 25
and the price to book ratio was 2.5 times against an historic
average of 3.0.
In terms of investment strategy, we continue to reduce our
exposure to the energy sector and limit our financial sector
holdings to private sector stocks only. Our overweight positions in
the consumer and healthcare sectors are making a significant
contribution to performance. Strong relative outperformers during
the period were Powergrid, ONGC, Larsen & Toubro and Ultratech
Cement. We continue to avoid the Metals and Mining sector and limit
our exposure to Power generation due to regulatory uncertainty.
We have kept the number of holdings at around 20 but have
reduced our aggregate Nifty exposure from 63% to 57% while
increasing our top ten exposures from 68% to almost 72%.
The growth outlook has been transformed under the new
government,with current fiscal year forecasts moving steadily
upwards towards the upper end of the 5 to 6% range. Investor
sentiment is holding through the slow summer season, even as the
onset of the southwest monsoon has been slow; rains have now picked
up in volume and geographic distribution. At the time of writing,
rainfall is back within the "normal"range compared to the long-term
average and reservoirs are moving into the above average capacity
level. This is helpful for the continuing attack on food inflation,
which is starting to soften with supply chains under pressure from
the new governmentto improve efficiency. For market participants,
there are two optimistic signals emerging: even difficult decisions
by the governmentare being welcomed and a return of retail interest
in equitiesis becoming evident. Overall, it seems that key
elements
of Modi's "Gujarat model" of administration will feature over
time, giving rise to the hope that the economic and administrative
success of Gujarat will be repeated at the national level. We have
adjusted our portfolio to align with the growth prospects and hope
to be able to maintain recent outperformance over the medium term.
We believe that under the Modi government, Indian markets
can look forward to continued upward momentum driven by a
recovery in consumer confidence which already emerging, as well as
a recovery in private sector investment.
Administration
The Fund's website provides access to all regulatory and
statutory information on the Fund, the address is:
www.himalayanfund.nl
On June 4th, the AGM of the Fund was held in Amsterdam; the
Annual Report for 2013 was adopted by unanimous vote and the
Directors were discharged from their responsibilities for the
year.
At a board meeting on the same day, the directors agreed to
enter into a new contract with CACEIS Bank Luxembourg, Amsterdam
Branch (CACEIS) with a view to facilitating compliance with the
terms of AIFMD. This will in due course entail terminating the
Fund's relationship with its existing Custodian Citibank Mumbai as
Caceis takes on the responsibilities of Depository Bank.
Compliance
with AIFMD has added to the Fund's administrative burden and
costs for no obvious benefit.
At the same board meeting, the directors approved in principle
making certain changes to the Fund's operating structure, including
adoption of a "dual board" structure as part of an agreementwith
its corporatefinance advisers Altitude Equity Capital Ltd. This
exercise is expected to include a private placement of Ordinary
Shares with substantial new long-term private and institutional
investors to help future development of the Fund.
Conclusion
The Directors would like to thank our long-standing shareholders
for their continuing support for the Fund in market conditions
which which provide considerable encouragement by comparisonwith
last year. In compliance with regulatory requirements,the Directors
review the Synthetic Risk and Reward Indicator (SRRI) on a regular
basis. As at June 30th, the calculation puts the Fund in
Category
6, one category below the level of last year. This reduction is
attributable to consistent positive monthly returns during the
period under review. It is not unusual for a fund investing in
emerging market equities to have a high risk rating and the
Directors remind shareholders of the risk statements in the Fund's
Prospectus which is available for download from the Fund's
website.
Amsterdam, August 28th, 2014
Board of Directors
Ian McEvatt, Chairman
Dwight Makins
Robert Meijer
Karin van der Ploeg
Financial statements Himalayan Fund N.V. Semi Annual Report
2014
Balance sheet
(before profit appropriation)
30-06-2014 31-12-2013
USD USD
Notes
Investments
Securities 11,339,245 4.1 10,741,908
Short term receivables
Receivable on security transactions - 5.1 -
Dividend receivable 26,935 5.2 -
Other receivables - 5.3 -
26,935 -
Other assets
Cash at banks 435,158 6 331,368
Current liabilities (due within one year)
Payable on security transactions 81,226 7.1 -
Due to redemptions - 7.2 158,614
Other liabilities, accruals and deferred income 90,925 7.3 62,078
Total current liabilities 172,151 220,692
Total of receivables and other assets less
current liabilities 289,942 110,676
Total assets less current liabilities 11,629,187 10,852,584
--------------------- -----------------------
Shareholders' equity
Issued capital 17,765 8.1 18,419
Share premium 21,048,851 8.2 22,748,568
General reserve -11,914,403 8.3 -10,865,740
Undistributed result current year 2,476,974 8.4 -1,048,663
Total shareholders' equity 11,629,187 10,852,584
--------------------- -----------------------
Net Asset Value per share 44.97 35.64
Profit &Loss account
01-01-2014 01-01-2013
30-06-2014 30-06-2013
USD USD
Notes
Income from investments
Dividends 65,601 9.1 87,769
Other income 71,082 9.3 1,285
136,683 89,054
Capital gains/losses
Unrealised price gains/losses on investments 1,577,407 4 -541,367
Unrealised currency gains/losses on investments 516,967 4 -371,092
Realised price gains/losses on investments 893,454 4 -24,857
Realised currency gains/losses on investments -362,035 4 -304,974
Other exchange differences -8,230 -13,242
2,617,563 -1,255,532
Expenses
Investment research fees 102,499 10.1 71,192
Other expenses 174,773 10.2 152,158
277,272 223,350
Tax - 22,076
Total investment result 2,476,974 -1,367,752
--------------------- ----------------------
Total investment result per ordinary share 9.59 -3.94
Statement of Cash Flows
01-01-2014 01-01-2013
30-06-2014 30-06-2013
USD USD
Notes
Cash flow from investing activities
Income from investments 136,683 9 89,054
Expenses -277,272 10 -223,350
Tax - 22,076
Result of operations -140,589 -112,220
Purchases of investments -468,121 4 -763,418
Sales of investments 2,496,577 4 2,007,428
2,028,456 1,244,010
Change in short term receivables -26,935 5 -518,786
Change in current liabilities -48,541 7 81,507
-75,476 -437,279
Cash flow from investing activities 1,812,391 694,511
Cash flow from financing activities
Received on shares issued 26,933 8 82,799
Paid on shares purchased -1,727,304 8 -802,524
Cash flow from financing activities -1,700,371 -719,725
Other exchange differences -8,230 -13,242
Change in cash and cash equivalents 103,790 -38,456
Cash and cash equivalents as at 1 January 331,368 146,282
--------------------- ----------------------
Cash and cash equivalents as at 30 June 435,158 6 107,826
--------------------- ----------------------
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 semi annual report is preparedin accordance with Part 9
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 stock market
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 Committee, valued at the best
effort
estimated price, taking into account the standards which the
Investment Committee 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 June 30th, 2014, equivalent of 1 US
dollar:
Euro 0.73038 Srilanka Rupee 130.32502
Indian Rupee 60.14502 Bangladesh Taka 77.60001
2.3 Other assets and liabilities
Other assets and liabilitiesare 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, andas 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
Investing in emergingand 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 occurrenceand 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 theRBI. 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 non exchange-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 30-06-2014 31-12-2013
4. Investments USD USD
4.1 Statement of changes in securities
Position as at 1 January 10,741,908 14,040,909
Purchases 468,121 1,402,672
Sales -2,496,577 -3,967,386
Unrealised price gains/losses on investments 1,577,407 -491,998
Unrealised currency gains/losses on investments 516,967 -247,534
Realised price gains/losses on investments 893,454 712,984
Realised currency gains/losses on investments -362,035 -707,739
Position as at 30 June 11,339,245 10,741,908
------------------ ---------------------
Historical cost 6,405,421 7,902,458
The portfolio comprises of shares, mainly listed.
The total unlisted shares held directly by the Fund amounted to
USD 131,350 (31 December 2013: USD 133,674).
The portfolio breakdown as at 30 June 2014 is specified on page
18 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 2014 are USD 10,331 (2013: USD 8,654).
5. Receivables
5.1 Receivable on security transactions
These include transactions still unsettled as at the balance
sheet date.
5.2 Dividend receivable
These include dividend accruals which become payable after
balance sheet date.
5.3 Other receivables
These include other transactions still unsettled as at the
balance sheet date.
6. Cash at banks
This includes immediately due demand deposits at banks.
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 repurchase of shares
Himalayan still unsettled as at the balance sheet date.
7.3 Other liabilities, accruals and deferred income
Payable investment reseach fee 10,690 16,810
Payable administration fee 5,705 5,741
Payable auditors fee 18,803 20,669
Other expenses payable 55,727 18,858
90,925 62,078
------------------- ----------------------
8. Shareholders' equity
The authorised share capital of the Fund is EUR 60,000 (31
December 2013: 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 30-06-2014 31-12-2013
8.1 Issued capital number USD USD
Ordinary shares:
Position as at 1 January 304,103 4,189 4,829
Sold 600 6 38
Purchased -46,394 -464 -661
Revaluation - -196 -17
Position as at 30 June 258,309 3,535 4,189
--------------------- -------------------- -----------------------
Priority shares:
Position as at 1 January 49,995 14,230 14,230
Sold - - -
Revaluation - - -
Position as at 30 June 49,995 14,230 14,230
--------------------- -------------------- -----------------------
Total issued capital 17,765 18,419
-------------------- -----------------------
As at 30 June 2014 the issued and subscribed
share capital amounts to: Ordinary shares,
par value EUR 0.01 (31 December 2013: EUR EUR EUR
0.01) 4,450,005 44,500 44,500
Priority shares, par value EUR 0.20 (31 December
2013: EUR 0.20) 49,995 9,999 9,999
54,499 54,499
-------------------- -----------------------
The Fund became open-ended on 7 April 2000. As at 30 June 2014 a
total of 4,191,696 Ordinary Shares have been purchased, meaning
that 258,309 Ordinary Shares are still outstanding as at 30 June
2014. 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 22,748,568 24,983,207
Received on shares sold 26,927 139,317
Paid on shares purchased -1,726,840 -2,373,973
Revaluation of outstanding capital 196 17
Position as at 30 June 21,048,851 22,748,568
------------------ --------------------
30-06-2014 31-12-2013
USD USD
8.3 General reserve
Position as at 1 January -10,865,740 -12,813,588
Transferred from undistributed result -1,048,663 1,947,848
Position as at 30 June -11,914,403 -10,865,740
------------------- ----------------------
8.4 Undistributed result
Position as at 1 January -1,048,663 1,947,848
Transferred to/from general reserve 1,048,663 -1,947,848
Total investment result 2,476,974 -1,048,663
Position as at 30 June 2,476,974 -1,048,663
------------------- ----------------------
Three years Himalayan Fund N.V.
30-06-2014 31-12-2013 31-12-2012
Net Asset Value (USD x 1,000)
Net Asset Value according to balance
sheet 11,629 10,853 14,137
Less: value priority shares 14 14 14
11,615 10,839 14,123
--------------------- ------------------- ----------------------
Number of Ordinary Shares
outstanding 258,309 304,103 366,411
Per Ordinary Share
Net Asset Value
share (USD) 44.97 35.64 38.54
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 March 6, 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.
01-01-2014 01-01-2013
10. Expenses 30-06-2014 30-06-2013
USD USD
10.1 Investment research fees
Research fee 93,500 66,194
Custody Fee and Charges 8,999 4,998
------------------ ----------------------
102,499 71,192
------------------ ----------------------
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. These expenses are included in
other investment management fees with the exception ofthe transfer
charges. Transfer charges are accounted for in the investment
revaluation reserve.
10.2 Other expenses
Administration Fees and Charges 35,717 33,922
Company Secretarial and Domiciliation Fees 20,734 19,970
Bank Expenses 1,793 5,047
Regulatory Fees and Charges 12,203 11,039
Legal Expenses -1,360 648
Distribution fees 25,492 -
Listing Expenses 8,427 8,926
Audit Fees 10,699 9,427
Fiscal Advisory Fees 3,370 10,910
Advertising and Promotion 11,557 11,039
Directors Fees 33,341 29,564
Board Expenses 10,235 8,735
Miscellaneous 2,565 2,931
------------------ ---------------------
174,773 152,158
------------------ ---------------------
On-going charges ratio
The on-going charges ratio is calculated as follows: the total
expenses of the Fund, excluding transaction fees and cost of
interest, divided by the average NAV*.
The expense ratio of the Fund for the reporting period is equal
to 2.58 %; annualised 5.16% (annualised 2013: 3,25 %).
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 11.27 %; annualised 22.53 % (annualised 2013: 27,47 %).
* - The Fund has a weekly NAV. The average Net Asset Value of
the Company for the reporting period is calculated as the sum of
the weekly Net Asset Values divided by the number of
observations.
Comparison of real cost with cost according
to Prospectus*
According to Prospectus Actual costs
USD USD
Research fee (1) 93,500 93,500
Administration fee (2) 35,717 35,717
Secretarial and Domiciliation fees (3) 20,734 20,734
Costs for the Board (4)
*- As per the Prospectus of 7 June 2010. 100,000 43,576
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.
2) CBL AB 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 aggregateper year.
In 2014 the remuneration of the Directors will be USD 64,800
(inclusive VAT). Directors fees per person in the first half year
of 2014 are as follows: Ian McEvatt*: USD 5,000; Dwight Makins: USD
9,250; Robert Meijer: USD 12,100; Karin van der Ploeg*: USD 6,050.
There was a small change in the fees compared to 2013 due to the
raise of the VAT from 19% to 21%. Board expenses (exclusive
remuneration of the Directors) amount to USD 10,235 for the first
half year of 2014.
* Ian McEvatt is also a director of the Priority Shareholder of
the Fund and 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 US$ 10,000.
Employees
The Fund has no employees.
Amsterdam, August 28th, 2014
Board of Directors
Ian McEvatt, Chairman
Dwight Makins
Robert Meijer
Karin van der Ploeg
Portfolio breakdown
As per June 30th, 2014
percentage
Market value of total Net
India USD Asset Value
Auto Ancillary 1,400,066 12.0
9,000 Bajaj Auto 346,592
84,000 Balkrishna 1,053,474
Construction 953,721 8.2
20,000 Larsen & Toubro 565,866
9,000 Ultra Tech Cement 387,855
Consumer
goo ds 2,158,543 18.6
28,000 Agro Tech Foods 273,180
40,000 ITC 216,178
3,500 Nestle India 286,875
200,000 Pidilite Industries 1,083,382
10,000 VST Industries 298,928
Energy 571,107 4.9
45,000 ONGC 317,869
15,000 Reliance Industries 253,238
Financials 2,822,427 24.3
75,000 HDFC Bank 1,024,461
25,000 ICICI Bank 589,471
60,000 Kotak Mahindra Bank 881,420
194,675 Magma Fincorp 327,075
Healthcare 1,874,748 16.1
50,000 Lupin 871,269
85,000 Torrent Pharmaceuticals 1,003,479
Technology 1,427,284 12.3
8,000 Cyient 228,066
19,000 Infosys Technologies 433,027
8,000 Tata Consultancy 766,191
Total Equity 11,207,896 96.4
Cash 421,291 3.6
Canbank mutual fund 131,350
Net 289,941
NAV 11,629,187 100.0
Other information
Personal interest
At the end of, or during the reporting period, none of the
members of the Board of Directors had any interests in securities
also being a part of the investments of the Fund.
Special controlling rights
Special rights are assigned to holders of Priority Shares. The
most important rights are:
- to submit a binding nomination for the appointment of the Directors
- to give their approval in advance of amendments in the
Articles of Association, legal merger, legal split and dissolving
the Fund.
The Priority Shares are all held in the name of Iceman Capital
Ltd.
Priority Shares
During 2011 & 2012 49.995 Priority Shares were held by
Iceman Capital Ltd. At the beginning of 2009 the nominal value of
the Priority Shares was Eur 0.01 each. On August 26, 2009 the
Articles of Association were amended and the nominal value of the
Priority Shares was increased to Eur 0.20 Each.
The directors of Iceman Capital Ltd. are Messrs. I. McEvatt,
P.J. Nicolle, M.T. Cordwell, J.W. Owen and E.H. Jostrom. The
directors of the Fund and the directors of Iceman Capital Ltd.
declare that to the best of their knowledge and belief
Appendix X, paragraph C, article10 of the listing Rules of
Euronext Amsterdam NV is complied with.
Independent Auditor's report
No audit was performed on these semi annual statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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