NMX®30 Infrastructure Global THEAM Easy UCITS ETF
Semi-Annual Report 2015
Semi-annual report for the period from 1 January 2015 to 30 June 2015
BNP Paribas Investment Partners LuxembourgR.C.S. B-27 605
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Table of contents
Page 3
Page
Organisation 4
Information 5
Financial statements at 30/06/2015 6
Key figures relating to the last 3 years 7
Securities portfolio at 30/06/2015 8
Notes to the financial statements 10
No subscriptions can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus which will be accompanied by a copy of the latest available annual report and a copy of the latest available semi-annual report, if published after such annual report.
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Organisation
Page 4
Registered office33 rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg
Board of Directors of the Management Company
Chairman
Mr. Marc RAYNAUD, Head of Global Fund Solutions, BNP Paribas Investment Partners, Paris
Members
Mrs. Sylvie BAIJOT, Deputy Chief Executive Officer, BNP Paribas Investment Partners Luxembourg, Hesperange (since 18 March 2015)
Mr. Pascal BIVILLE, Head of Strategy and Finance, BNP Paribas Investment Partners, Paris
Mr. Stéphane BRUNET, Chief Executive Officer, BNP Paribas Investment Partners Luxembourg, Hesperange
Mrs. Charlotte DENNERY, Chief Operating Officer, BNP Paribas Investment Partners, Paris (until 18 March 2015)
Mr. Anthony FINAN, Deputy-Head of Distributors Business Line, BNP Paribas Investment Partners, Paris
Mr. Laurent NICOLAI de GORHEZ, Global Relationship Manager – Operations, BNP Paribas Investment Partners Luxembourg, Hesperange (since 18 March 2015)
Mr. Carlo THILL, Chairman of the Management Board, BGL BNP Paribas Luxembourg, Luxembourg
Management CompanyBNP Paribas Investment Partners Luxembourg, 33 rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg
BNP Paribas Investment Partners Luxembourg is a Management Company in the meaning of Section 15 of the Luxembourg Law of 17 December 2010 concerning undertakings for collective investment.
The management company performs the functions of administration, portfolio management and marketing duties.
Effective investment managerTHEAM S.A.S., 1 boulevard Haussmann, F-75009 Paris, France
Custodian, Paying Agent, Registrar and Transfer Agent
BNP Paribas Securities Services, Luxembourg Branch, 33 rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg
AuditorPricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg, Grand Duchy of Luxembourg
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Information
Page 5
NMX®30 Infrastructure Global THEAM Easy UCITS ETF (the “Fund”) is organized in and under the laws of the Grand Duchy of Luxembourg as a Mutual Investment Fund (“Fonds Commun de Placement”).
The Fund is governed by the provisions of Part I of the Law of 17 December 2010, as amended, governing Undertakings for Collective Investment. The Fund was incorporated for an indefinite term in Luxembourg on 6 September 2007 under the denomination “EasyETF NMX30 Infrastructure Global”.
On 31 July 2014, the Fund was renamed into NMX®30 Infrastructure Global THEAM Easy UCITS ETF.
The Fund is managed by BNP Paribas Investment Partners Luxembourg (the “Management Company”). The Management Company was incorporated on 19 February 1988 in the form of a limited company (“société anonyme”) under the laws of the Grand Duchy of Luxembourg for an unlimited period. The articles of incorporation were published in the Mémorial C, Recueil des Sociétés et Associations (the “Mémorial”), on 25 May 1988 after having been filed with the Registrar of the District Court of and in Luxembourg where they may be consulted. The last modification of the articles of incorporation is dated 31 July 2014 and has been published with the Mémorial on 9 October 2014. Its majority shareholder is BNP Paribas Investment Partners, Paris.
The Management Company is governed by chapter 15 of the Law of 2010 and in that capacity, is in charge of the Fund’s collective management of portfolio.
The Fund’s objective is to replicate as closely as possible the NMX®30 Infrastructure Global Index (the Benchmark) in order to achieve a performance comparable to that of NMX®30 Infrastructure Global Total Return Index, which is denominated in euro and calculated with dividends reinvested. As the Fund is index-based, its objective is to maintain a tracking deviation in absolute terms between its Net Asset Value and the value of the relevant Benchmark Index. The anticipated level of tracking error between the Fund and the level of the Benchmark Index, in normal market conditions, is 1% at the maximum. The methodology of the NMX®30 Infrastructure Global Total Return Index is provided to the Fund under license from LPX GmbH. The license costs are recorded in the Statement of Operations and Changes in Net Assets under the caption “Other fees” of the present financial statements.
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Financial statements at 30/06/2015
Page 6
NMX®30 InfrastructureGlobal THEAM Easy
UCITS ETF
Expressed inNotes
EUR
Statement of net assetsAssets 31 518 509
Securities portfolio at cost price 26 072 021Unrealised gain / (loss) on securities portfolio 5 261 848
Securities portfolio at market value 2 31 333 869Other assets 184 640
Liabilities 130 975Bank overdrafts 105 806Other liabilities 25 169
Net asset value 31 387 534Statement of operations and changes in net assets
Income on investments and assets 2 631 623Management fees 4 99 232Bank interest 2 366Other fees 5 73 432
Total expenses 173 030Net result from investments 458 593Net realised result on:
Investments securities 7 764 974Financial instruments (11 365)
Net realised result 8 212 202Movement on net unrealised gain / (loss) on:
Investments securities (4 646 197)
Change in net assets due to operations 3 566 005Net subscriptions / (redemptions) 3 (35 744 229)Increase/(Decrease) in net assets during the year / period (32 178 224)Net assets at the beginning of the financial year / period 63 565 758Net assets at the end of the financial year / period 31 387 534
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Key figures relating to the last 3 years
Page 7
NMX®30 Infrastructure Global THEAM Easy UCITS ETF
EUR EUR EUR Number of units
31/12/2013 31/12/2014 30/06/2015 30/06/2015
Net Assets 45 123 512 63 565 758 31 387 534
Net asset value per unit
Class A Euro 39.9172 51.5385 53.8536 582 831
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Securities portfolio at 30/06/2015
Page 8
Expressed in EURQuotation currency
% of net assetsMarket ValueQuantity Denomination
Transferable securities admitted to an official stock exchange listing and/or traded on another regulated market
31 333 869 99.83
Shares 31 333 869 99.83
United States of America 15 759 937 50.21
21 904 AMERICAN TOWER CORP USD 1 833 983 5.84
9 284 AMERICAN WATER WORKS USD 405 206 1.29
17 347 CROWN CASTLE INTERNATIONAL USD 1 250 192 3.98
27 818 ENERGY TRANSFER EQUITY LP USD 1 602 119 5.10
102 733 ENTERPRISE PRODUCTS PARTNERS USD 2 755 959 8.78
89 386 KINDER MORGAN USD 3 079 813 9.82
6 679 SBA COMMUNICATIONS USD 689 180 2.20
12 839 SEMPRA ENERGY USD 1 140 092 3.63
34 632 SPECTRA ENERGY USD 1 013 286 3.23
38 637 WILLIAMS COMPANIES USD 1 990 107 6.34
Canada 3 200 420 10.20
44 195 ENBRIDGE CAD 1 855 809 5.92
36 847 TRANSCANADA CAD 1 344 611 4.28
United Kingdom 3 046 207 9.71
193 006 NATIONAL GRID GBP 2 226 332 7.10
12 508 SEVERN TRENT GBP 367 410 1.17
35 936 UNITED UTILITIES GBP 452 465 1.44
Spain 2 267 423 7.22
46 253 ABERTIS INFRAES.A EUR 680 382 2.17
2 405 ABERTIS INFRAESTRUCTURAS S.A. EUR 35 378 0.11
51 623 GAS NATURAL SDG EUR 1 050 012 3.34
6 979 RED ELECTRICA EUR 501 651 1.60
Italy 2 135 678 6.80
42 600 ATLANTIA EUR 944 016 3.00
180 587 SNAM RETE GAS EUR 770 745 2.46
106 185 TERNA EUR 420 917 1.34
Hong Kong 1 636 536 5.21
133 265 CHINA MERCHANTS HOLDINGS INTL HKD 512 982 1.63
596 869 HKG AND CHINA GAS HKD 1 123 554 3.58
France 856 469 2.73
5 106 AEROPORT DE PARIS EUR 517 493 1.65
11 709 EUTELSAT COMMUNICATIONS EUR 338 976 1.08
Australia 643 850 2.05
100 361 TRANSURBAN UNIT AUD 643 850 2.05
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Securities portfolio at 30/06/2015
Page 9
Expressed in EURQuotation currency
% of net assetsMarket ValueQuantity Denomination
Japan 601 805 1.92
126 230 TOKYO GAS JPY 601 805 1.92
Luxembourg 524 831 1.67
17 416 SES GLOBAL DEPOSITARY RECEIPT EUR 524 831 1.67
Brazil 392 309 1.25
91 069 CCR SA BRL 392 309 1.25
Germany 268 404 0.86
4 764 FRAPORT AG EUR 268 404 0.86
Total securities portfolio 31 333 869 99.83
Page 10
Notes to the financial statements
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Notes to the financial statements at 30/06/2015
Page 11
Note 1 - General information
Events that occurred during the financial period from 1 January 2015 to 30 June 2015
No special event occurred during the financial period from 1 January 2015 to 30 June 2015.
Note 2 - Principal accounting methods
a) Presentation of the financial statements
The financial statements of the Fund are presented in accordance with the legislation in force in Luxembourg on Undertakings for Collective Investment. The consolidation currency of the Fund is the euro (EUR).
The statement of operations and changes in net assets covers the financial period from 1 January 2015 to 30 June 2015.
b) Net asset value
This semi-annual report is prepared on the basis of the last net asset value as at 30 June 2015.
c) Valuation of the securities portfolio
Investments listed on an official stock exchange or dealt in on another Regulated Market which operates regularly and is recognized and open to the public, are valued at the last available price, and, in the event that there are several such markets, on the basis of the last available price on the principal market for that investment. If such a price does not reflect the investment’s fair value, it is valued at its probable sales value, which shall be estimated with prudence and in good faith by the Board of Directors of the Management Company.
Investments not dealt in or listed on a stock exchange or on a Regulated Market operating regularly, recognized and open to the public, are valued at their probable sales value, which shall be estimated with prudence and in good faith by the Board of Directors of the Management Company.
Liquid assets, money market instruments and all other instruments may be valued at the last known closing price on the valuation day or according to the linear depreciation method. In the case of linear depreciation, money market instruments are disclosed in Portfolio at cost and their value is increased in the Statement of Operations and Changes in Net Assets by the accrued interest under the caption “Bank Interest”. Portfolio positions will be regularly reviewed under the supervision of the Management Company in order to determine whether there is a difference between the valuation found according to the closing price method and linear depreciation method. If there is a difference that is likely to result in significant dilution or to be detrimental to the Unitholders, appropriate corrective action may be taken, including, if necessary, calculation of the net asset value using the last known closing prices.
The list of changes in the portfolio during the financial period from 1 January 2015 to 30 June 2015, is available free of charge at the Registered Office of the Management Company of the Fund.
d) Conversion of foreign currencies
The cost of investments denominated in currencies other than the Fund accounting currency is converted into that currency at the exchange rate prevailing at the purchase date.
Income and expenses in currencies other than the Fund accounting currency are converted into that currency at the exchange rate at the transaction date.
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Notes to the financial statements at 30/06/2015
Page 12
At the end of the financial period, the assets and liabilities denominated in currencies other than the Fund accounting currency are converted into that currency at the exchange rates prevailing at that date. The resulting realized and unrealized foreign exchange profits or losses are included in the Statement of Operations and Changes in Net Assets.
The exchange rates used as at 30 June 2015 for the conversion of the Fund’s assets and liabilities not denominated ineuro (EUR) are as follows:
EUR 1 = AUD 1.44965EUR 1 = BRL 3.46115EUR 1 = CAD 1.39100EUR 1 = GBP 0.70845EUR 1 = HKD 8.63785EUR 1 = JPY 136.33905EUR 1 = USD 1.11420
e) Forward Foreign Exchange Contracts
Open Forward Foreign Exchange Contracts are valued at the exchange rate prevailing at the valuation date on the remaining life of the contracts. Resulting changes in unrealized profits or losses and the realized profits and losses are included in the Statement of Operations and Changes in Net Assets.
f) Income
Dividends are recorded at the ex-dividend date. Interest is recorded on an accrual basis.
g) Tracking error
The Fund aims to achieve a return comparable to that of the NMX®30 Infrastructure Global Total Return Index (NMXI30TR) (this Fund’s “Benchmark Index”). The anticipated level of tracking error between the Fund and the level of the Benchmark index, in normal market conditions, is 1 % at the maximum.
The Fund aims at replicating as closely as possible the performance of its reference index. However, it may experience some degree of tracking error due to the replication costs.
Note 3 - Subscriptions and redemptions
The units issued by the Fund are in registered form. The Fund does not issue fractions of units. There is for the time being one class of units, with the following characteristics:
Class A Euro (active)
Subscriptions can be paid for in cash, or by the contribution of instruments and securities representative of the Benchmark.
All subscriptions of the financial period have been paid for in cash.
The subscription and redemption charges, if any, are recorded in the Statement of Operations and Changes in Net Assets under the caption “Income on investments and assets”.
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Notes to the financial statements at 30/06/2015
Page 13
Note 4 - Management fees (maximum per annum)
In consideration of its services, the Management Company receives a management fee at the following annual rate:
Class A Euro: up to 0.50% of the unit class’s net assets.
The management fees are calculated each Trading Day and provisioned during the month in question whenever the Net Asset Value is calculated. They shall be paid monthly, in arrears.
Note 5 - Other fees
For the period from 1 January 2015 to 22 February 2015, the Management Company acting as Administrative Agentwas entitled to an annual fee from the Fund corresponding to 0.02% of the Fund's net assets.
The Paying Agent and the Registrar and Transfer Agent were each entitled to a maximum annual fee from the Fund corresponding to maximum 0.01% of the Fund’s net assets.
The Custodian received an annual maximum fee from the Fund corresponding to maximum 0.02% of the Fund's net assets.
Those fees were calculated on each Trading Day and accrued during the month in question whenever the Net Asset Value is calculated. The fees were paid monthly, in arrears.
As from 23 February 2015, those fees are included under an all-in fee budget.
Other fees are calculated each Trading Day, provisioned during the month in question whenever the Net Asset Value is calculated and paid monthly in arrears from the average net assets of a sub-fund, share category, or share class and serving to cover general custody assets expenses (remuneration of the Custodian) and daily administration expenses (NAV calculation, record and book keeping, notices to the shareholders, providing and printing the documents legally required for the shareholders, domiciliation, license costs, auditors cost and fees…), except for brokerage fees, commissions for transactions not related to the deposit, director fees, interest and bank fees, extraordinary expenses, and the taxe d’abonnement in force in Luxembourg, as well as any other specific foreign tax and other regulators levy.
Note 6 - Taxes
Pursuant to Luxembourg law in force and in line with standard practice, the Fund is not liable for any Luxembourg income tax. Likewise, distributions made by the Fund are not subject to any withholding tax, without prejudice to the potential application of the Law of 21 June 2005 transposing Council Directive 2003/48/EC of the Council of 3 June 2003 on taxation of savings income in the form of interest payments into Luxembourg law.
In Luxembourg, the Fund is exempt from the obligation to pay subscription tax in accordance with Article 175(e) of the 2010 Law.
Some of the Fund’s portfolio income (in particular dividends and interest) may be subject to withholding tax in the countries in which it is generated.
NMX○R 30 Infrastructure Global THEAM Easy UCITS ETF
Notes to the financial statements at 30/06/2015
Page 14
Note 7 - Transaction fees
Transaction fees incurred by the Fund relating to purchase or sale of transferable securities, money market instruments, derivatives or other eligible assets are mainly composed of standard fees, sundry fees on transaction, stamp fees, brokerage fees, custody fees, VAT fees, stock exchange fees and RTO fees (Reception and Transmission of Orders). Transaction fees are included in the cost of securities purchased and sold.
For the financial period from 1 January 2015 to 30 June 2015, these transaction fees were as follows:
Sub-fund Currency Transaction feesNMX®30 Infrastructure Global THEAM Easy UCITS ETF EUR 8 029
Note 8 - Reclaiming withholding tax on dividends
In several European Union countries, dividends paid out by companies are taxed differently depending on whether they are paid to domestic or foreign entities. In fact, when dividends are paid to a foreign entity, the foreign entity is sometimes subject to a withholding tax. This represents a difference in tax treatment, which is considered as a breach of European Union law and the principle of the free movement of capital.
Since a number of decisions have been taken by the European Court of Justice and the Council of State in favour of foreign residents, the management company plans to apply for refunds of withholding tax paid on dividends received from foreign companies in respect of funds domiciled in Luxembourg where the prospect of obtaining such refunds is considered to be favourable to the funds concerned.
As the tax reclaim procedures must be undertaken with the tax authorities concerned, the final result of these procedures and the time the tax authorities would take to respond cannot be predicted.
Janu
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2013
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www.easyetf.com
