SOCIETE D'INVESTISSEMENT A INCORPORATED IN LUXEMBOURG

LINDE PA VALUE FUND

SOCIETE D'INVESTISSEMENT A CAPITAL VARIABLE INCORPORATED IN LUXEMBOURG

UNAUDITED SEMI-A?"UAL REPORT FOR THE PERIOD AS AT JUNE 30,2003

No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual report and the most recent semi-annual report, if published thereafter.

.- .

LINDE PARTNERS VALUE FUND SICAV

3 f JtllL. 2003

BOARD OF DIRECTORS

Chairman:

Directors:

Registered Ofice:

Investment Adviser:

Custodian, Administrative, Corporate, Domiciliary and Paying Agent:

Registrar and Trunsjer Agent:

Distributor:

Independent Auditors:

Mr. Bernard HERMAN Senior Vice President Dexia Banque Intemationale A Luxembourg, Luxembourg

Mr. Per LORENZEN Attach6 de Direction Dexia Asset Management, Luxembourg

Mr. Claus LINDE Managing Director and Director Linde Partners Asset Management S.A., Strassen

Mr. Peter ANDERSEN Vice President Dexia Banque Internationale A Luxembourg, Luxembourg

Mr. Per Henrik JENSEN Vice President Dexia Banque Internationale A Luxembourg, Luxembourg

69, route d’Esch, L- 1470 Luxembourg

Linde Partners Asset Management S.A. 134, route d’Arlon L-8008 Strassen

Dexia Banque Intemationale A Luxembourg 69, route d‘Esch L-1470 Luxembourg

First European Transfer Agent 5, rue Thomas Edison L- 1445 Strassen

Linde Partners Asset Management S.A. 134, route d’Arlon L-8008 Strassen

PricewaterhouseCoopers S.a r.1. Reviseur d’entreprises 400, route d’Esch L- 147 1 Luxembourg

1


GENERAL INFORMATION

The annual general meeting of Shareholders will be held at the registered office of the SICAV or at such other place in Luxembourg on the second Wednesday of the month of May in each year at 11.30 am., or if any such day is not a bank Business Day in Luxembourg, on the next following bank Business Day in Luxembourg. The first annual general meeting was held in 2002.

Notices of all general meetings are sent to the holders of registered shares by post at least 8 days prior to the meeting at their addresses shown on the register of Shareholders. Such notices include the agenda and specify the time and place of the meeting and the conditions of admission. They also refer to the rules of quorum and majority required by Luxembourg law and laid down in Articles 67 and 67-1 of the Law of August 10, 1915 on commercial companies (as amended) and in the Articles of Incorporation of the SICAV.

Audited annual reports are published within 4 months following the end of the accounting year and unaudited semi- annual reports are published within 2 months following the period to which they refer.

The annual reports are made available at the registered office of the SICAV during normal business hours. The SICAV's accounting year ends on 3 1" December each year. The accounts of the SICAV are held in EUR.

As from June 16, 2003, the net asset value per share of each sub-fund is determined for each class on a daily basis instead of a weekly basis.

A detailed schedule of portfolio changes for each Sub-Fund is available fi-ee of charge upon request at the registered office of the SICAV.

2

LINDE PARTNERS VALUE FUND STCAV

DIRECTOR’S REPORT

The first half of 2003 has really been a roller coaster ride with a lot of volatility and uncertainty. Interest rates continued to fall to levels not seen for decades but still completely overshadowed by worries about the world economy, war in Iraq and company earnings.

The average stock market measured by MSCI World grew by 1.9% and MSCI Japan fell by 5.6% both calculated in EUR.

The best performing sector in MSCI World was IT with a positive return of 7.8%. The worst performing sector was Consumer Stables with a negative return of 7.2%.

All 3 sub-funds showed negative returns over the period. Bearing our very conservative investment approach in mind, this is not a huge surprise with the above-mentioned development in MSCI.

Linde Partners Value Fund - Global Linde Partners Value Fund - Blue Chip Value

Linde Partners Value Fund - Japan

-3.3% -3.6%

-6.1%

MSCI World +1.9% +1.9%

MSCI Japan -5.6%

We (still) strongly believe that Japan will be t.2 place to be in .-.e years to come, with politics- reforms and takeovers on the agenda. This will again make Japan a favored place to invest.

We believe that we probably have seen the worst in the stock markets and that the high quality companies we have in the 3 funds will be able to post a positive return in 2003. On the other hand we do not expect a roaring bull marked like we saw in the late 1990s.

Most of our investments are currently trading at 50% of “fair value” with no or low net debt on the balance sheet and positive eamings expectations for 2003.

We look forward to the remainder of the year with confidence.

Luxembourg, July 18,2003

The figures stated in this report are historical and not necessarily indicative at future performance.

3

LINDE PARTNERS VALUE FUND STCAV

COMBINED STATEMENT OF NET ASSETS AS AT JUNE 30,2003 (expressed in EUR)

Linde Partners Linde Partners Linde Partners Combined Value Fund - Value Fund - Value Fund -

Global Japan Blue Chip Value

ASSETS

Investments in securities at market value (note 2a) Cash at bank Amounts receivable on subscriptions lnterest and dividends receivable, net Formation expenses, net (note 2e) Other assets

LIABILITIES

Amounts payable on redemptions Advisory commission payable (note 3) Taxes and expenses payable

TOTAL NET ASSET VALUE

Number of shares outstanding - Capitalisation - Distribution

Net asset value per share - Capitalisation - Distribution

13,631,574 1,683,046 2,331,480 17,646,100 972,94 1 724,738 1,032,266 2,129,945

0 0 10,364 10,364 25,672 1 1,999 5,951 43,622 10,394 0 0 10,394 16,93 1 0 2,477 19,408

14,657,5 12 2,419,783 3,382,538 20,459,833

(25,414) 0 0 (25,414) (14,637) (2,390) (3,364) (20,391) (52,637) (1 2,597) (14,628) (79,862) (92,688) (14,987) (17,992) (125,667)

14,564,824 2,404,796 3,364,546 20,334,166

169,556.359 1,110.000 10,815.000 3,375.000 25,000.000 25,000.000

84.22 92.10 93.94 84.22 92.10 93.94

The accompanying notes form an integral part of these financial statements.

4


CHANGES IN THE NUMBER OF SHARES FOR THE PERIOD AS AT JUNE 30,2003

Linde Linde Linde Partners Partners Partners

Value Fund - Value Fund - Value Fund - Global Japan Blue Chip Value

Capitalisation Distribution Capitalisation Distribution Capitalisation Distribution

Number of shares outstanding at the beginning of the period 165,766.727 2,075.000 1,110.000 25,000.000 655.000 25,000.000

Number of shares issued 14,9 13.271 1,340.000 0.000 0.000 10,160.000 0.000

Number of shares redeemed (1 1,123.639) (40.000) 0.000 0.000 0.000 0.000

Number of shares outstanding at the end of the period 169,556.359 3,375.000 1,110.000 25,000.000 10,815.000 25,000.000

STATISTICS

Total Net Assets - June 30,2003 - December 31,2002 - December 3 1, 200 1

Net asset value per share - June 30,2003 - Capitalisation - Distribution

- December 3 1,2002 - Capitalisation - Distribution

- December 3 1,2001 - Capitalisation - Distribution

Linde Partners Linde Partners Linde Partners Value Fund - Japan Value Fund - Global Value Fund - Blue Chip

Value

14,564,824 14,6 12,845 5,987,279

84.22 84.22

87.06 87.06

102.80 102.80

2,404,796 2,561,874

92.10 92.10

98.12 98.12

3,364,546 2,500,373

93.94 93.94

97.46 97.46

5


LINDE PARTNERS VALUE FUND - GLOBAL (expressed in EUR)

STATEMENT OF INVESTMENTS AS AT JUNE 30,2003

2.25 0.76 1.73

Description Quantity Currency Acquisition cost Evaluation % of net assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

SHARES

AUSTRIA ANDRITZ AG GRAZ

BELGIUM GROUPE DELHAIZE SA UCB

DENMARK BRYGGERIGRUPPEN CARLSBERG AS B DANISCO A/S

FINLAND HUHTAMAKI OY KONE OY-B-

FRANCE FROMAG. BEL VACHE Q. RIT REMY COINTREAU SA

GERMANY BOSS AG DOUGLAS HOLDING AG ESCADA AG FRESENIUS MEDICAL CARE AG GERRY WEBER INT. KRONES AG KRONES AG /VORZUG MAN AG SUEDZUCKER AG VOSSLOH AG

5,978 EUR 146,757 138,690 0.95 146,757 138,690 0.95

10,749 EUR 181,504 285,8 16 1.96 8,447 EUR 204,9 12 191,156 1.31

386,416 476,972 3.27

10,105 DKK 284,326 405,359 2.78 2,700 DKK 83,295 87,956 0.60 4,500 DKK 146,860 154,469 1.06

514,481 647,784 4.44

7,600 EUR 66,7 18 66,880 0.46 8,616 EUR 217,393 303,111 2.08

284,111 369,991 2.54

1,450 EUR 137,284 159,790 1.10 9,000 EUR 218,864 244,170 1.68

356,148 403,960 2.78 I

26,000 6,000

32,667 21,150 20,204

700 800

18,686 9,500

1 1,000

EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR

207,015 162,430 59 1,549

1,147,100 108,190 25,168 29,674

212,567 164,248 241.073

2,889,014

327,600 1 10,400 25 1,536 898,875 I07,08 1 34,300 4 1,600

268,144 142,025 342,100

2,523,661

6



STATEMENT OF INVESTMENTS AS AT JUNE 30,2003 (continued)

Description Quantity Currency Acquisition cost Evaluation ?4 of net assets

IRELAND GLANBIA PLC /-A- IWP TNTL/+IWP HLDS A ATTACH.

ITALY DAVIDE CAMPARI

JAPAN ASAHT BREWERIES DAIICHI PHARMAC. CO LTD DAINIPPON PHARMACEUTICAL CO FAMILYMART CO LTD FUJlTEC CO

KIKKOMAN COW. KIRIN BREWERY CO. LTD ON0 PHARMACEUTICAL CO SANKYO CO. LTD TANABE SEIYAKU CO. LTD WORLD YAMANOUCHI PHARMACEUTICAL YONEX CO LTD

TTO-YOKADO

NETHERLANDS HEINEKEN NV KONINKL. WESSANEN KONINKLIJKE VENDEX KBB

SWITZERLAND BOBST GROUP SA. PRILLY CIBA SPEZ. CHEMIE HLD CLAMANT NESTLE ROCHE HOLDING AG THE SWATCH GROUP AG

113,000 1,322,334

8,400

53,000 9,000

17,000 4,000

37,000 4,000

27,000 29,000

6,000 37,000 37,000 5,000

13,000 15,000

EUR 163,235 175,150 1.20 EUR 694,479 290,913 2.00

857,714 466,063 3.20

EUR 253,555 280,560 1.93 253,555 280,560 1.93

JPY 43 1,638 JPY 193,830 JPY 133,247 JPY 66,438 JPY 143,886 JPY 80,883 JPY 167,134 JPY 223,244 JPY 216,337 JPY 499,449 JPY 362,568 JPY 83,410 JPY 368,804 JPY 53,899

3,024,767

280,713 102,832 91,158 62,68 1

140,557 84,O 13

156,417 178,809 162,182 387,614 2 17,864

85,291 297,260 50,956

2,298,347

1.93 0.7 1 0.63 0.43 0.97 0.58 1.07 1.23 1.11 2.66 1 S O 0.59 2.04 0.35

15.80

3,024 EUR 109,762 94,288 0.65 125,000 EUR 1,130,443 712,500 4.89 12,500 EUR 11 1,388 122,125 0.84

1,35 1,593 928,913 6.38

8,800 CHF 322,932 236,022 1.62 2,000 CHF 135,333 107,929 0.74

32,700 CHF 810,392 265,225 1.82 1,100 CHF 199,462 197,633 1.36

14,050 CHF 1,130,135 955,698 6.56 33,500 CHF 605,400 534,766 3.67

3,203,654 2,297,273 15.77

7

LINDE PARTNERS VALUE FUND SlCAV




UNITED KINGDOM CADBURY SCHWEPPES SAFEWAY PLC

UNITED STATES OF AMERICA BARR LABORATORIES INC CONAGRA FOODS INC HEINZ (J.H.) CO MERCK & CO. INC

SARA LEE CORP. TOYS R US INC.

ROBERT MONDAVI -A-

VIRGIN ISLANDS (UK) TOMMY HILFIGER CORP.

28,300 64,157

7,500 12,650 7,250

16,300 9,850 4,600

21,235

17.078

TOTAL TRANSFERABLE SECURlTIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TOTAL INVESTMENTS

GBP 142,443 147,155 1.01 GBP 221,143 239,249 1.64

363,586 386,404 2.65

USD 35 1,530 USD 33 1,252 USD 282,728 USD 843,03 1 USD 338,556 USD 73,716

2,436,879 USD 2 16,066 -

429,658 2.95 262,578 1.80 207,922 1.43 869,656 5.97 215,3 10 1.48

74,166 0.5 I 2 19,275 1.51

2,278,565 15.65

USD 110,039 134,391 0.92 110,039 134,391 0.92

16,178,714 13,631,574 93.63

16,178,714 13,63 1,574 93.63


LINDE PARTNERS VALUE FUND - GLOBAL

GEOGRAPHIC DIVISION OF INVESTMENTS AS AT JUNE 30,2003 (expressed as a percentage of net assets)

Germany Japan Switzerland United States of America Netherlands Denmark Belgium Ireland France United Kingdom Finland Italy Austria Virgin Islands (UK)

17.35 15.80 15.77 15.65 6.38 4.44 3.27 3.20 2.78 2.65 2.54 1.93 0.95 0.92

93.63 %

9


LINDE PARTNERS VALUE FUND - GLOBAL

ECONOMIC DMSION OF INWSTMENTS AS AT JUNE 30,2003 (expressed as a percentage of net assets)

Pharmaceuticals Food and non-alcoholic drinks Beverages Retail Apparel Healthcare products Machinery diversified Chemicals Electrical compo & equipment Hand machine tools Cosmetics personal care Building materials and trade Packaging & containers Leisure time

25.44 20.01 12.28 7.79 6.23 6.17 4.94 2.56 2.35 2.08 2.00 0.97 0.46 0.35

93.63 %

IO


LINDE PARTNERS VALUE FUND -JAPAN (expressed in EUR)




SHARES

JAPAN ASAHI BREWERIES ASAHI BROADCASTING C O W CHARLE CO LTD CHUO WAREHOUSE CO LTD CHUOH PACK INDUSTRY CO LTD DAIICHI PHARMAC. CO LTD DATNTPPON PHARMACEUTICAL CO DENKYOSHA CO LTD EISAl CO. LTD FAMILYMART CO LTD FUJITEC CO FUJIX LTD ICHIKAWA CO LTD IT0 EN LTD

KIKKOMAN COW. KIRlN BREWERY CO. LTD MAEZAWA KASEI INDUSTRIES CO NISSUI PHARMACEUTICAL CO LTD ON0 PHARMACEUTICAL CO SANKYO CO. LTD TANABE SEIYAKU CO. LTD TOY0 TEC CO LTD WAKTTA + CO LTD WORLD YAMANOUCHI PHARMACEUTICAL YONEX CO LTD YUSHIRO CHEMICAL INDUSTRY CO

ITO-YOKADO

18,000 3,000 1,000

14,000 12,000 8,000 7,000 2,000 6,000 4,400 9,000 9,000 5,000 2,600 3,000

13,000 1 1,000 7,000 8,000 3,000 9,000

12,000 2 1,000 13,000 4,500 3,000 1,000 7,000

JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY

113,517 11 1,853

6,053 58,086 27,142

114,358 51,917 35,737

11 8,850 73,08 1 73,887 28,114 33,609 73,389 60,662 76,OS 1 71,075 68,856 31,531 94,377

11 1,133 97,247 6 9 3 14 34,636 75,069 77,733 3,432

33,955 1,824,864

95,336 97,090

5,245 7037 1 22,355 9 1,406 37,536 39,362

108,267 68,949 72,178 24,196 29,149 76,547 63,010 75,312 67,824 65,201 32,729 81,091 94,284 70,659 58,144 47,960 76,762 68,598 3,397

39,888 1,683,046

TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING 1,824,864 1,683,046

3.96 4.04 0.22 2.93 0.93 3.80 1.56 1.64 4.50 2.87 3.00 1.01 1.21 3.18 2.62 3.13 2.82 2.7 1 1.36 3.37 3.92 2.94 2.42 1.99 3.19 2.85 0.14 1.66

69.97

69.97

TOTAL INVESTMENTS

11

1,824,864 1,683,046 69.97

LlNDE PARTNERS VALUE FUND SICAV

~~

LINDE PARTNERS VALUE FUND - JAPAN


Japan

12

69.97 69.97 %


LINDE PARTNERS VALUE FUND - JAPAN

ECONOMIC DIVISION OF INVESTMENTS AS AT JUNE 30,2003 (expressed as a percentage of net assets)

Pharmaceuticals Beverages Building materials and trade Retail Media Distribution wholesale Apparel Food and non-alcoholic dr inks Storage warehousing Commercial services Textiles and garments Chemicals Packaging & containers Leisure time

24.30 9.96 5.71 5.49 4.04 3.85 3.19 3.13 2.93 2.42 2.22 1.66 0.93 0.14

69.97 %

13


LINDE PARTNERS VALUE FUND - BLUE CHIP VALUE (expressed in EUR)


Description Quantity Currency Acquisition cost Evaluation O/a of net assets


SHARES

BELGIUM GROUPE DELHAIZE SA UCB

DENMARK CARLSBERG AS B DANISCO NS NOVO NORDISK A/S B

GERMANY BOSS AG DOUGLAS HOLDING AG ESCADA AG FRESENIUS AG GERRY WEBER INT. KRONES AGNORZUG MAN AG SUEDZUCKER AG

JAPAN ASAHI BREWERIES DAIICHI PHARMAC. CO LTD DAINIPPON PHARMACEUTICAL CO EISAI CO. LTD IT0 EN LTD

KIKKOMAN COW. KIRIN BREWERY CO. LTD SANKYO CO. LTD YAMANOUCHI PHARMACEUTICAL

ITO-YOKADO

SWITZERLAND CIBA SPEZ. CHEMIE HLD CLAMANT

2,6 13 3,366

900 2,600 1,400

3,397 3,999 6,874 2,5 17

12,163 1,218 7,237 3,904

15,000 5,000 5,000 2,700 1,000 1,000

1 1,000 10,000 6,000 3,000

783 14,794

14

EUR 44,843 69,480 2.07 EUR 76,4 15 76,173 2.26

121,258 145,653 4.33

DKK 27,765 29,3 19 0.87 DKK 83,980 89,248 2.65 DKK 43,456 42,874 1.27

155,201 161,441 4.79

EUR 32,044 42,802 1.27 EUR 77,63 1 73,582 2.19 EUR 83,612 52,930 1.57 EUR 86,547 118,299 3.52 EUR 78,348 64,464 1.92 EUR 68,155 63,336 1.88 EUR 87,862 103,85 1 3.09 EUR 54,647 58,365 1.73

568,846 577,629 17.17

JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY

8 1,224 75,724 37,451 593 18 28,890 20,230 64,678 63,144 72,27 1 79,161

582,291

79,447 57,129 26,811 48,720 29,44 1 2 1,003 63,726 61,658 62,856 68,598

519,389

2.36 1.70 0.80 1.45 0.88 0.62 I .89 1.83 1.87 2.04

15.44

CHF 53,775 42,254 1.26 CHF 167,514 1 19,992 3.57


LINDE PARTNERS VALUE FUND - BLUE CHIP VALUE (expressed in EUR)



NESTLE ROCHE HOLDrNG AG THE SWATCH GROUP AG

UNITED KINGDOM CADBURY SCHWEPPES SAFEWAY PLC

UNITED STATES OF AMERICA CONAGRA FOODS INC HEINZ (J.H.) CO KELLOGG co MCDONALD’S CORP. MERCK & CO. INC SARA LEE CORP. TOYS R US INC.

440 84 1

7,228

17,500 15.895

3,181 3,468

907 3,45 7

952 1,000 3,483

TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TOTAL INVESTMENTS

CHF 79,785 79,053 2.35 CHF 60,606 57,206 1.70

482,360 413,887 12.31 CHF 120,680 115,382 3.43

GBP 87,662 90,997 2.70 GBP 56,29 1 59,274 1.76

143,953 150,27 1 4.46

USD 78,791 66,029 USD 99,687 99,458 USD 30,369 27,225 USD 63,864 67,617 USD 52,908 50,792 USD 16,025 16,123 USD 35,768 35,966

377,412 363,2 10

1.96 2.96 0.8 1 2.01 1.51 0.48 1.07

10.80

2,43 1,32 1 2,33 1,480 69.30

2,43 1,32 1 2,33 1,480 69.30

15


LINDE PARTNERS VALUE FUND - BLUE CHIP VALUE ~~~~ ~


Germany Japan Switzerland United States of America Denmark United Kingdom Belgium

7.17 5.44 2.3 1 0.80 4.79 4.46 4.33

69.30 Yo

16

LlNDE PARTNERS VALUE FUND SICAV

LINDE PARTNERS VALUE FUND - BLUE CHIP VALUE

ECONOMIC DIVISION OF INVESTMENTS AS AT JUNE 30,2003 (expressed as a percentage of net assets)

Food and non-alcoholic drinks 21.36 Pharmaceuticals Retail Beverages Machinery diversified Chemicals Apparel

18.12 9.32 5.94 4.91 4.83 4.76

69.30 %

17


NOTES TO THE FINANCIAL STATEMENTS AS AT JUNE 30,2003

Note 1 - General

LINDE PARTNERS VALUE FUND (the “SICAV”) is an open-ended investment company registered on the official list of collective investment undertakings pursuant to part I of the Luxembourg law of 30ih March 1988 on collective investment undertakings (the “law”). The STCAV was incorporated on September 12, 2001.

The investment objective of the SICAV is to manage the assets of each Sub-Fund for the benefit of its shareholders and to achieve a long-term capital growth by investing in a broad range of transferable securities.

The articles of Incorporation of the SICAV were published in the Memorial, “Recueil des Societes et Associations of Luxembourg”, on October 15, 2001. The SICAV is registered with the Registre de Commerce, Luxembourg under number B-83 606.

The SICAV is incorporated in Luxembourg under the laws of the Grand Duchy of Luxembourg as a “Societe Anonyme” qualifying as a “Societe d’Investissement a Capital Variable” (“SICAV”) with multiple Sub-Funds. The “umbrella” structure offers investors not only the advantage of being able to choose between different Sub-Funds but also of being able to switch between these Sub-Funds; furthermore, within each Sub-Fund, each investor can choose between capitalisation of the Sub-Fund’s earnings and distribution thereof in the form of dividends, by selecting either capitalisation shares or distribution shares.

As at June 30, 2003, three Sub-funds are activated:

- LINDE PARTNERS VALUE FUND - Global denominated in Euro (hereafter called “Global”)

- LINDE PARTNERS VALUE FUND - Japan denominated in Euro (hereafter called “Japan”)

- LINDE PARTNERS VALUE FUND - Blue Chip Value denominated in Euro (hereafter called “Blue Chip Value”)

Note 2 - Significant accounting policies

The financial statements are prepared in accordance with Luxembourg regulations relating to undertakings for collective investment.

a) Valuation of investments

The basic accounting principles for determining the Net Asset Value of the Sub-Funds are set forth in the Articles of Incorporation, the material provisions of which provide as follows:

(1) the value of any cash on hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued as aforesaid and not yet received are deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof is arrived at after making such discount as the Directors may consider appropriate in such case to reflect the true value thereof;

(2) the value of securities which are quoted or dealt in on any stock exchange is in respect of each security, the last known price, and where appropriate, the middle market price on the stock exchange which is normally the principle market for such security;

(3) securities dealt in on another Regulated Market are valued in a manner as near as possible to that described in the preceding paragraph;

(4) in the event that any of the securities held in any portfolio on the relevant Valuation Day are not quoted or dealt in on a stock exchange or another Regulated Market or, for any of the securities, no price quotation is available, or if the price as determined pursuant to sub-paragraphs (2) and/or (3) is not in the opinion of the Directors representative of the fair market value of the relevant securities, the value of such securities is determined based on the reasonably foreseeable sales price determined prudently and in good faith;

18


NOTES TO THE FINANCIAL STATEMENTS AS AT JUNE 30,2003 (continued)

Note 2 - Significant accounting policies (continued)

(5) all other assets are valued at their respective fair values as determined in good faith by the Directors in accordance with generally accepted valuation principles and procedures.

b) Net realised profit / (loss) on sales of investments

The net realised profit or loss on sales of investments is determined on the basis of the average cost of investments sold.

c) Conversion of foreign currencies

The SICAV maintains its accounting records in EUR and its financial statements are expressed in this currency.

Assets and liabilities expressed in currencies other than EUR are translated into EUR at the exchange rates prevailing as at June 30, 2003.

Income and expenses in currencies other than EUR are translated into EUR at the exchange rates prevailing at the transaction date.

The resulting profits and losses on translation are included in the Statement of Changes in Net Assets.

d) Combined financial statements of the SICAV

The combined statements of the SICAV are drawn up in Euro. Each item of the statement of net assets and statement of changes in net assets at June 30, 2003 are equal to the sum of the corresponding items in the financial statements of each Sub-Fund.

e) Formation expenses

The STCAV bears the costs of its establishment, including the costs of introduction with the regulatory authori- ties, notarial charges, the cost of preparing and printing the Prospectus and share certificates, and any other fees and costs incurred in connection with the establishment and launching of the SICAV.

These costs are amortised over the 5 first financial years on the assets of the Sub-Funds existing at the setting up of the SJCAV.

Costs in relation with the subsequent launching of new Sub-Funds are amortised on the assets of these new Sub- Funds over 5 financial years.

Note 3 - Investment advisory fees and performance fees

The Investment Adviser receives from the SICAV a monthly fee of 1.20% p.a. calculated on the average net asset value of Global, Japan and Blue Chip Value payable within the first ten business days after the last day of each month.

In addition, an annual performance fee is payable to the Investment Adviser mentioned above and is calculated as a percentage per annum of the increase in the net asset value of the Sub-Funds over the relevant financial year (excluding this performance fee) and adjusted for any proceeds from subscriptions or amounts paid out for redemptions.

Performance of the Sub-Funds means the variation in percentages of the net asset value per share determined with reference to the amounts and prices of the last Valuation Day in each financial year compared to the net asset value per share determined on the first Valuation Day of the same financial year.

The performance fees are equal to 10% of such performance.

The performance fee (if any) is accrued in respect of the Sub-Funds on each Valuation Day but is paid within 10 Business Days after the relevant financial year-end.

Any negative performance fee for a financial year is carried over into the succeeding year(s) to offset any positive performance in that subsequent period.

19


NOTES TO THE FINANCIAL STATEMENTS AS AT JUNE 30,2003 (continued)

Note 3 - Investment advisory fees and performance fees (continued) The performance fee which is effectively calculated at the end of each financial year only is provisioned at each Net Asset Value calculation so as to be faithfully reflected at each Net Asset Value calculation.

Note 4 - Subscription tax Under current law and practice, the SICAV is not liable to any Luxembourg income tax, nor are dividends paid by the SICAV liable to any Luxembourg withholding tax. However, the SICAV is liable in Luxembourg to a tax of 0.05% per annum of its net assets, such tax being payable quarterly and calculated on the basis of the net assets at the end of the relevant quarter.

Such tax is not applicable in respect of the portion of the assets of the SICAV (if any) invested in other Luxembourg collective investment undertakings.

No stamp duty or other tax is payable in Luxembourg on the issue of shares in the STCAV except a tax, payable once only, of EUR 1,239.47 which was paid upon incorporation.

Note 5 - Depositary bank commission The depositary bank is entitled to receive from the SICAV a commission payable quarterly in arrears, expressed as a percentage at the average net assets of the SICAV. As from October 28, 2002 the minimum was increased from EUR 6,500 to EUR 10,000 per year for the whole SICAV.

Note 6 - Distribution fees The distributor receives a quarterly fee applicable on the average net assets of each Sub-Fund that it has contributed to the SICAV at the maximum annual rate of 1%.

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SOCIETE D'INVESTISSEMENT A INCORPORATED IN LUXEMBOURG