Fortis Funds (Nederland) N.V. - BNP Paribas Investment Partners

Fortis Investments 

Fortis Funds (Nederland) N.V. 

Halfjaarverslag 2009 

30-06-2009

Fortis Funds (Nederland) N.V. Condensed Interim Report 2009 

30 June 2009 UNAUDITED 

Contents 

Report of the Board of Directors 2 

CONDENSED INTERIM FINANCIAL STATEMENTS 

Condensed interim balance sheet 5 

Condensed interim income statement 6 

Condensed interim statement of changes in equity 7 

Condensed cash flow statement 8 

Selected notes to the condensed interim financial statements 9 

Other information 13 

1



Report of the Board of Directors 

Corporate developments 

On 1 April 2008, Fortis Investments and ABN AMRO Asset Management combined to form an asset 

management company which initiated a number of integration activities. 

On 1 November 2008, ownership over ABN AMRO Investment Management Funds B.V. changed 

from ABN AMRO Asset Management (Netherlands) B.V. to Fortis Investment NL Holding N.V. 

followed by ABN AMRO Investment Management Funds B.V. acquiring the entire assets of Fortis 

Funds (Nederland) N.V. (hereafter the amalgamated company) under universal title in which the 

acquired company ceased to exist. Subsequently the name ABN AMRO Investment Management 

Funds B.V. has been changed to Fortis Funds (Nederland) N.V. and the legal form changed from a 

private limited company to a public limited liability company. 

In the condensed Interim Report 2008 we reported on Fortis Investments intended strategic 

partnership with Ping An. As at the end of September 2008, it was announced that this partnership 

would not pursue. 

The ownership of Fortis and therefore also indirectly of Fortis Funds (Nederland) N.V. changed due to 

the nationalization in fall 2008. The Belgian and Netherlands Governments purchased almost 100% 

and the Luxembourg government almost 50% of the shares in the Fortis bank entity in their country. 

During 2008, the range of funds managed by Fortis Funds (Nederland) N.V. was rationalized. The 

fund ranges of former ABN AMRO Asset Management and Fortis Investments were combined to 

reach synergies and to create a stronger combined fund range. 

On 13 May 2009, BNP Paribas acquired approximately 75% of the shares in Fortis Bank S.A., 

Brussels. The remaining 25% of the issued share capital is held by the Belgian State and minority 

shareholders. Through this transaction, BNP Paribas Investment Partners (“BNPP IP”) and Fortis 

Investments are now part of the same group of companies, combined to use this excellent opportunity 

to create synergies and form an ambitious, top-tier asset management company with an expanded 

global footprint. Recently, the integration discussions between Fortis Investments and BNPP IP have 

started, however they are in such a preliminary stage that no decisions have yet been made on the 

new corporate structure of the combined entities, including Fortis Funds (Nederland) N.V. (also the 

“Company”). 

In the coming period, there will be an additional focus on the merger with BNP Paribas. In the second 

quarter of 2009, a new fund was introduced, the BNP Paribas Convertible Bond Fund 2011. It 

currently has EUR 85 mln assets under management. 

2



Half year results in 2009 

The Company’s net profit decreased by EUR 11.4 million to EUR 0.2 million compared to the same 

period in 2008. The earned management fees dropped significantly as a result of lower assets under 

management; EUR 9.5 billion at 30 June 2009 compared to EUR 14.1 billion a year earlier. Although 

impacted by a new transfer pricing policy the fee margin improved from 19% (30 June 2008) to 22% 

(30 June 2009). 

The administrative expenses decreased by EUR 5.2 million to EUR 2.8 million due to effects coming 

from the new transfer pricing policy. Given the negative trend in market conditions, financial income 

went down from EUR 0.7 million at 30 June 2008 to EUR 0.2 million over the same period last year. 

Compliance 

The Board of Directors paid significant attention to applicable law and regulations, including the 

Financial Supervision Act (Wet op het financieel toezicht (Wft)) and the in 2008 published DUFAS 

Principles of Fund Governance. The Company’s Board assured that required amendments, where 

necessary, were made in a timely manner, in prospectuses and other public information, internal 

procedures, organisation and guidelines, amongst others. 

Internal control framework and risk assessment policies 

Although the Company is not exposed significantly to financial risks from financial instruments, 

market movements may impact financial results as net income from fees is closely related to the 

underlying net asset value of the investment funds while administrative expenses are only up to a 

certain extend related to movements in net asset value. Furthermore, the performance of the 

Company might be affected by a significant loss of clients due to weak performances of our 

investments funds, changes in strategy by our distribution partners, inability to deliver the products 

our clients need, operational errors and negative sentiment in the market in general. 

The Board of Directors of Fortis Funds (Nederland) N.V. is responsible for the daily business, but the 

daily operations are outsourced to other Fortis Investments entities and external parties. The Board 

has designed policies, procedures and structures as well as reporting lines to monitor outsourced 

activities, to control operational activities and to identify risks. The internal control framework has 

been designed to achieve the Company goals by effectively evaluating and monitoring risks. Within 

this framework Compliance department ensures overall compliance with external regulations and 

applicable law. The department of Operational Risk Management assures the accuracy of the internal 

control measures and administration descriptions. 

. 

Amsterdam, 28 August 2009 

The Board of Directors 

J.L. Roebroek (Chairman) 

C.A.M. Haas M.C. Van Beusekom M.P. Maagdenberg 

3



CONDENSED INTERIM FINANCIAL STATEMENTS 

4



Condensed interim balance sheet 

(x € 1,000) 

Notes 

30-Jun-09 

31-Dec-08 

ASSETS 

Current assets 

Trade and other receivables 10,874 13,645 

Cash and cash equivalents 47,169 44,656 

58,043 58,301 

Total assets 58,043 58,301 

EQUITY AND LIABILITIES 

EQUITY 

Equity attributable to the equity holders of the Company 

Share capital 3 227 227 

Share premium 3 12,102 12,102 

Retained earnings 2,614 14,032 

14,943 26,361 

LIABILITIES 

Current liabilities 

Trade and other payables 43,100 31,940 

43,100 31,940 

Total equity and liabilities 58,043 58,301 

The notes on pages 9 to 13 are an integral part of these financial statements. 

5



Condensed interim income statement 

(x € 1,000) 

Half year ended 30 June 

Notes 2009 2008 

Management and other fees 47,924 94,265 

Distribution, sales and advisory costs (43,159) (76,041) 

Income from fees - net 4,765 18,224 

Administrative expenses (4,711) (9,339) 

Operating profit 54 8,885 

Finance income 173 723 

Finance income 173 723 

Profit before income tax 227 9,608 

Income tax expenses 4 (58) (2,448) 

Net profit for the year 169 7,160 


6



Condensed interim statement of changes in equity 

(x € 1,000) 

Attributable to equity 

holders of the Company 

Share Other Share Retained Total 

Capital Reserve Premium Earnings Equity 

Notes 

At 1 January 2008 454 - 11,875 16,370 28,699 

Profit for the period 7,160 7,160 

Dividend 2007 (13,925) (13,925) 

At 30 June 2008 454 - 11,875 9,605 21,934 

Profit for the period 4,427 4,427 

Business combination (227) - 227 - 

At 31 December 2008 227 - 12,102 14,032 26,361 

Profit for the period 169 169 

Dividend 2008 5 (11,587) (11,587) 

At 30 June 2009 227 - 12,102 2,614 14,943 

The notes on page 9 to 13 are is an integral part of these financial statements. 

7



Condensed interim cash flow statement 

(x € 1,000) 

Half year ended 

Notes 2009 2008 

Operating activities 

Profit before income tax 227 7,160 

Adjustment to reconcile profit before income tax to net cash flows 

Working capital adjustments: 

Decrease/ increase in trade and other receivables 2,771 6,656 

Increase/ decrease in trade and other payables 11,102 4,998 

Net cash flows used in operating activities 14,100 18,814 

Investing activities 

Investments - - 

Net cash flows used in investing activities - - 

Financing activities 

Equity: Proceeds from capital contribution - - 

Equity: Dividend paid to the equity holder of the Company (11,587) (13,925) 

Net cash flows used in financing activities (11,587) (13,925) 

Net increase /decrease in cash and cash equivalents 2,513 4,889 

Cash and cash equivalents at 1 January 44,656 45,467 

Cash and cash equivalents at 30 June 47,169 50,356 


8



Selected notes to the condensed interim financial 

statements 

1. Corporate information 

Fortis Funds (Nederland) N.V (the Company) is a public limited liability company (“naamloze 

vennootschap”) domiciled in The Netherlands and is a wholly-owned subsidiary of Fortis Investment 

NL Holding N.V., which in turn is a wholly owned subsidiary of Fortis Bank S.A.. 1 

The Company was incorporated in The Netherlands on 30 December 1966. The organisation chart of 

the group to which the Company belongs is as follows: 

BNP Paribas 

Fortis Bank S.A. 

Fortis Investment NL Holding N.V. 


The Company acts, amongst others, as director for other companies and operates as management 

company for investment institutions and investment funds. Investment funds offered to Dutch private 

clients are registered with the Netherlands Authority for the Financial Markets (AFM). The Company 

is subject to supervision of the Netherlands Central Bank (DNB) and the AFM and holds a license 

under the Wft (Wet op het financieel toezicht). 

These financial statements of Fortis Funds (Nederland) N.V. have been authorised for issue by the 

Board of Directors on 28 August 2009. 

2. Summary of significant accounting policies 

The principal accounting policies applied in the preparation of these financial statements are set out 

below. These policies have been consistently applied to all the years presented, unless otherwise 

stated. The financial statements are presented in euro, which is also the functional currency of the 

group to which the Company belongs, rounded to the nearest thousand, unless otherwise stated. 

2.1 Basis of preparation 

The condensed interim financial statements for the six months ended 30 June 2009 have been 

prepared in accordance with IAS 34 “Interim Financial Reporting”. The condensed interim financial 

statements should be read in conjunction with the financial statements for the year as at 31 

December 2008 2 . 

1 Also see Report of the Board of Directors, Corporate developments 

2 Please see www.fortisinvestments.com 

9



2.2 Accounting policies 

The same principles are used for the valuation of the assets and liabilities and determination of 

results as in the financial statements for the year ended 31 December 2008. 

3. Share capital and share premium 

Number of shares Ordinary Share Total 

shares premium 

x € 1,000 x € 1,000 x € 1,000 

At 1 January 2008 500 227 828 1,055 

Business combination 11,274 11,274 

At 31 December 2008 500 227 12,102 12,329 

Issued and paid up capital 

On 1 November 2008, the Company’s articles of association were amended with regard to share 

capital for the conversion of NLG to EUR ex article 178b Part 5, book 2 of the Dutch Civil Code. 

Before this amendment NLG amounts were converted into EUR in accordance with article 178c of the 

Dutch Civil Code. After conversion the authorised share capital amounts to EUR 450,000 consisting 

of 1,000 shares with a face value of EUR 450 each. 

In accordance with article 178a Part 5, book2 of the Dutch Civil Code a legal reserve is recognised for 

the difference between the value of the issued capital by using the official European Union conversion 

rate and the amended value in the articles of association. 

At 30 June 2009, 500 shares have been issued and fully paid. 

Share premium 

Share premium increased in 2008 due to the acquisition of the amalgamated company by the 

Company on 1 November 2008. The amalgamated company’s issued capital has been reclassified 

into share premium. 

Distribution of profit 

Dividends are recognised as a liability in the period in which they are declared. 

4. Income tax expenses 

The standard and effective tax rate for the period from 1 January to 30 June 2009 was 25.5% (2008: 

25.5%). 

5. Dividends 

Dividend 2008 (EUR 11.587 thousand) was paid in June 2009. 

10



6. Commitments 

Capital commitments 

Capital expenditure contracted for at the balance sheet date, but not yet incurred does not exist. 

Service Level Agreements 

The Company is committed to payments under service level agreements with Fortis Investment 

Management Netherlands N.V. Fortis Investment Management Netherlands N.V. is providing finance 

and management services to the Company. 

7. Related-party transactions 

The Company has related-party transactions with its direct shareholder; Fortis Investment NL Holding 

N.V. and other Fortis Investments related entities. 

In 2008 the Company had related-party transactions with its direct shareholder; ABN AMRO Asset 

Management (Netherlands) B.V., other ABN AMRO Asset Management related entities and other 

related-parties i.e. ABN AMRO Bank N.V. including its branches, other (non - Asset Management) 

ABN AMRO entities, Consortium banks and its key management. The company restated the amount 

reported in 2008 under line item ‘Other related parties’ for an amount of EUR 25.389 thousand as a 

consequence of the change of ownership over Fortis Investments. 

The following transactions were carried out with related parties: 

Distribution, sales and advisory costs, interest and re-invoicing 

Six months ended 30 June 

2009 2008 

Shareholder 9,124 23,783 

Other Fortis Investments/ ABN AMRO Asset Management entities 6,851 8,642 

15,975 32,425 

End balances arising from related-parties transactions: 

Receivables from related-parties: 

30-Jun-09 31-Dec-08 


1,134 3,372 

Receivables from related-parties relate to prepayments to third party clients on behalf of other Fortis 

Investment entities and accrued interest on bank accounts. These receivables are not secured and 

non-interest bearing. Prepayments on behalf of other Fortis Investments entities normally settle within 

30 - 90 days. Interest receivable normally settles quarterly. 

11



Payables to related-parties: 

30-Jun-09 31-Dec-08 

Shareholder 5,183 4,922 


6,661 10,912 

Payables to related-parties relate to distribution, sales and advisory fees and internal settlement cost. 

The payables bear no interest. No guarantees are given. Depending on the underlying agreement 

payables settle normally within 30 - 90 days. 

8. Declaration of liability 

Fortis Investment Management S.A., having its offices at Avenue de l’Astronomie 14, 1210 Brussels, 

Belgium, declared that it assumes as per 1 January 2008 the joint and several liabilities for the debts 

resulting from Legal acts of the Company, such in accordance with Section 2:403, section 1(f) of the 

Dutch Civil Code. 

The financial data of Fortis Funds (Nederland) N.V. is consolidated in the semi annual accounts of 

Fortis Bank S.A. 

The earlier declaration of liability assumed by ABN AMRO Holding N.V. has been withdrawn on 19 

December 2008. 

9. Events after the balance sheet date 

Compliance 

Financial Supervision Act (Wft) 

The license under the Financial Supervision Act requires the Company, amongst other requirements 

to: 

• Publish its condensed interim financial statements within 9 week after period ended; 

• Comply with a minimum amount of shareholders equity. 

Shareholders’ equity 

The shareholders’ equity of the Company amounts to at least EUR 125,000 together with 

supplementary shareholders’ equity of at least 0.02% of the amount by which the value of the assets 

under management exceeds EUR 250,000,000, up to a required maximum of EUR 10,000,000. 

The Company’s shareholders’ equity at 30 June 2009 (and 2008) is sufficient. 

12



OTHER INFORMATION 

13



Organisation 


Registered office 

De Entrée 99 

1101 HE Amsterdam 

The Netherlands 

Directors 

J.L. Roebroek (Chairman) 

C.A.M. Haas 

M.C. Van Beusekom 

M.P. Maagdenberg 

14



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Fortis Funds (Nederland) N.V. - BNP Paribas Investment Partners

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