jb - fcp op medical 20141231 en · in case of any doubt on translation ... based on the development...

FCP OP MEDICAL (Sub-fund: FCP OP MEDICAL BioHealth-Trends)

A M U T U A L I N V E S T M E N T F U N D O R G A N I Z E D U N D E R T H E L A W S O F T H E G R A N D - D U C H Y O F L U X E M B O U R G

A N N U A L R E P O R T A S O F D E C E M B E R 3 1 , 2 0 1 4

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FUND ADMINISTRATION:

OPPENHEIM ASSET MANAGEMENT SERVICES S .À R.L .

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1

FCP OP MEDICAL (Sub-fund: FCP OP MEDICAL BioHealth-Trends)

A N N U A L R E P O R T A S O F D E C E M B E R 3 1 , 2 0 1 4

Fund report 3

The Key Facts, At a Glance, Statement of Operations, Changes in Net Assets, Classification of Investments u.a. 13

Statement of Assets and Liabilities 17

Notes to the Annual Report 22

Report of the Réviseur d’Entreprises agréé 24

Tax Information for German Investors 25

Partners 29

Distribution of the fund’s units has been announced in the

Federal Republic of Germany in accordance with Section 310

KAGB of the Bundesanstalt für Finanzdienstleistungs-

aufsicht, Frankfurt. Distribution of the fund’s units has been

announced in Switzerland in accordance with art. 120 KAG

of the Eidgenössische Finanzmarktaufsicht, Bern and in the

Republic of Austria in accordance with art. 140 InvFG of the

Finanzmarktaufsicht, Vienna.

This Annual Report does not constitute an offer or an

invitation to purchase units of the Fund. Statements on future

performances cannot be made on basis of this Annual Report.

The subscription of fund units is based on the most recent

version of the Prospectuses, the Fund’s Management

Regulations and the latest Annual Report. If the cut-off day

of the Annual Report exceeds more than eight months a more

recent Semi-Annual Report will be provided in addition to

the Annual Report.

The Prospectuses are available free of charge at the

Management Company, at the Custodian Bank, at the

representative in Switzerland and at the paying and

distribution agents mentioned in this report.

A statement of the changes to the schedule of investments

in the period under review is available free of charge

from the head office of the fund administrator, the swiss

representative, the paying agents and the distributors.

The original report is in German language. In case of any

doubt on translation the original document shall prevail.

FCP OP MEDICAL BioHealth-Trends / Annual Report as of December 31, 2014

3

The FCP OP MEDICAL BioHealth-Trends healthcare fund

invests mainly in mid and small caps in the biotech, pharma

and medtech sectors. Through its consistent focus on these

rapidly growing markets of the future in healthcare, the

Fund’s long-term objective is an investment performance that

outstrips the evolution of the various indices. Product

advances in the pharmaceutical industry and medical

technology are some of the most important drivers of growth

in the health sector. Consequently, the Fund invests

predominantly in young companies whose business model is

based on the development of innovative products. The Fund

concentrates on firms with products close to or newly

launched on the market or firms on the verge of achieving

profitability. In these phases of their development, firms

generally experience an above-average increase in value. On

the other hand, companies with product candidates in

relatively early stages of development play only a small role

in the Fund’s portfolio.

The particular focus of the Fund’s investment strategy is on

biotechnology companies that are developing new therapies

for diseases for which there has hitherto been no or only

inadequate treatment. Another segment of the portfolio is

made up of medical technology companies, which are

supplying many new products for improved diagnoses and

treatments.

Mid and small cap prices in the health sector are subject at

times to considerable volatility, due to their dependency on

clinical results, for example, or to their lower liquidity levels

(relative to daily trading volumes). The Fund’s portfolio

contains between 80 and 90 equity positions; this broad of

investment both minimizes the risks associated with

individual stocks and satisfies the need for flexibility.

The Fund follows a pure stock-picking approach, without

being tied to any benchmark. In this way the Fund gives

long-term investors an opportunity to share in the future

potential of the dynamically growing segments of the health

sector.

The FCP OP MEDICAL BioHealth-Trend’s consistent

strategic approach has proved its worth. Since the Fund’s

launch on 30.10.2000, it has performed handsomely, gaining

158.5% (EUR share class). This gives it a lead of 72.7% over

the Nasdaq Biotech-Index, 170.1% over the DRG pharma

index and 153.6% over the S&P 500, which represents the

broader market (all figures in EUR, status as at 30/12/2014).

2014 reviewed –

General conditions and sector-specific events

Measured by the S&P 500 Healthcare index (+24.5%), the

healthcare sector outperformed the broader S&P 500 index

(+12.6%) in 2014 for the fourth year in a row and was again

the second-best sector, just behind Utilities. Bringing up the

rear were Commodities and Telecoms.

In contrast to 2013, the performance of the different

healthcare sub-sectors was more balanced. Nevertheless, the

biotech sector was again the best performer (up 33.8%) due

to strong biotech drug innovation.

Unlike in 2013, however, the biotech sector’s

outperformance in 2014 was driven by increases in sales and

profits and the corresponding increase in future earnings

expectations rather than by increases in valuations. Biotech

was followed by Healthcare Providers (up 29.4%),

Healthcare Equipment (up 25.3%) and Pharmaceuticals (up

20.2%). It is striking that the small caps represented in the

S&P 600 Small-Cap Healthcare Index generally performed

significantly less well (up 11.7%) (all figures in USD,

FactSet, close 30/12/2014).

According to an analysis by Bernstein Research (28/03/2014,

14/01/2015), the current biotech boom has been driven since

the beginning of 2012 by the 6 largest companies (Amgen,

Biogen Idec, Celgene, Gilead, Regeneron and Alexion, also

known collectively as ABCGRA), which have contributed

nearly 80% of the total increase in the sector’s value. These

heavyweights now account for around 75% of the sector’s

total capitalization of more than 700 billion USD. The

sector’s risk has never been so highly concentrated. In 2001,

the 6 biggest biotech companies (Amgen, Genentech,

Genzyme, Immunex, Chiron, Idec) accounted for only 48%

of the total capitalization of around 300 billion USD.

The expansion of the Nasdaq Biotech Index (NBI) from 118

companies last November to its present 154 reflects the

record high number of biotech IPOs. As a result, it is a more

appropriate benchmark for the sector than the S&P 500

Biotech, since it also represents the development stage

companies that are so typical of the sector. Ultimately,

however, the NBI is also dominated by the almost 60%

weighting of the 10 biggest index companies. Accordingly, it

ended the year with a gain of 34.4% (in USD, FactSet, close

30/12/2014), thereby outperforming the S&P 500 for the fifth

year in a row. This stand-out performance is the result of the

new, broadly-based product era with significant advances in

the treatment of serious diseases, coupled with convincing

increases in sales and profits.

Fund report


4

The biotech sector’s growth potential and the predictability

of its earnings are currently at unequalled levels. The reasons

are primarily twofold. Firstly, since the beginning of 2011

the FDA (US Food and Drug Administration) has approved

144 innovative drugs (NMEs). The 41 approvals granted in

2014 – particularly in the fields of oncology and rare disease

– constituted the second-highest figure since 1996. Many of

the new drugs were launched successfully, including

Sovaldi®/Harvoni® from Gilead, Tecfidera® from Biogen

Idec, Vimizim® from BioMarin, Imbruvica® from

Pharmacyclics and Xtandi® from Medivation. Secondly,

biotech value assessments remain within historic ranges: the

average P/E ratio of 23 for 2015 compares with an average

growth rate of almost 18% (UBS, 06/01/2015).

Against this backdrop, the IPO window opened wide in 2014,

with 112 emerging biopharmaceutical companies taking the

plunge with an initial public offering. Taking all financing

measures into account, a record amount of 54.5 billion USD

was raised. In the biotech sector, small caps accounted for

almost 80% of equity financing, a total of 19 billion USD

(Biocentury 05/01/2015).

Growth prospects have improved in the big pharma sector as

well. Most importantly, drug pipelines continue to advance.

Thus Bristol-Myers Squibb and Merck & Co. are industry

leaders in the exciting area of immuno-oncology drugs. Now

that the major patent expiries are a thing of the past, this is

allowing more companies to return to steadier long-term

growth. We have seen big pharma companies restructuring,

swapping businesses and pursuing M&As to varying degrees

in order to maximize their growth prospects. With a PER of

17 for 2015, average valuations (without Bristol-Myers

Squibb) are only 6% above the S&P 500 market multiple of

16. By historic standards, this is not expensive in view of a

growth rate of around 9% and a dividend yield of 3%

(Jefferies, 10/11/2014).

After many years of declining or stagnating healthcare

volumes, the sector began to rebound in 2014, driven by

coverage increases related to the Affordable Care Act (ACA)

and an improving US economy. This drove the

outperformance in the Healthcare Provider and Service

segment.

As beneficiaries of these higher volumes and with their

exposure to new product cycles and strong M&A activity,

large cap medtech stocks were also outperformers and are

now trading at a premium relative to the broader market with

a PER of 20 for 2015 (18 without M&A candidates) and

growth expectations of around 10% (S&P 500 with PER of

16, Leerink, 17/12/2014). This premium marks a departure

from the previous four years, when MedTech was trading at a

discount.

The increase in new approvals is to a large extent a result of

the bio-pharma industry’s success in translating the

molecular genomic information derived from the decoding of

the human genome into a better understanding of the

underlying biological and molecular causes of diseases. The

approval highlights in 2014 were Keytruda® (Merck & Co.)

and Opdivo® (Bristol-Myers Squibb), the first drugs in the

new class of checkpoint receptor PD-1 antibodies for cancer

immunotherapy. A further improvement in hepatitis C

therapy was Gilead’s Harvoni®, a combination pill of

Sovaldi® and the NS5A protein inhibitor ledispavir.

Harvoni® given once daily can cure this disease within eight

weeks. Amgen’s Blincyto® (Blinatumomab) is the first BiTE

molecule based on a product platform developed by Munich

biotech company Micromet and AstraZeneca’s Lynparza® is

the first PARP inhibitor for the personalized treatment of

ovarian carcinomas (BRCA mutation). Abbvie’s Viekira

Pak® is the second all-oral hepatitis C treatment regimen.

Table 1 on the following page gives a selection of the most

promising drugs approved in 2014:


5

The sector saw just a few setbacks in 2014. Oncothyreon’s

cancer vaccine Stimuvax® missed its endpoints in a phase III

lung cancer study and Endocyte suspended its phase III trial

with Vintafolide because an interim analysis could not

demonstrate efficacy. Further phase III failures were reported

by Exelixis and Sunesis.

The healthcare sector’s upside potential was further

demonstrated by strong M&A activity. In the biotech sector,

Roche’s 8.3 billion USD takeover

bid for Intermune was the most

prominent performance driver.

However, biotech company Idenix

also received a 3.9 billion USD

bid from Merck & Co. for its

nucleotide polymerase inhibitor

against hepatitis C and the orphan

drugs specialist Prosensa was the

target of a 0.8 billion USD offer

from BioMarin. The highly

fragmented emerging or speciality

pharma sector was characterized

by consolidation: US company

Allergan received an offer of 66

billion USD from Actavis and

Endo took over Auxilium for 2.2

billion USD. The MedTech sector

also saw consolidation in the large

cap segment with the takeover of

Carefusion by Becton Dickinson

and of Covidien by Medtronic.

However, innovation-driven

M&A was also a feature, with

technology leader Nobel

Biocare (dental implants) being

taken over by Danaher and

imaging specialist Volcano

being acquired by Dutch

conglomerate Philips.

Now that the bio-pharma

industry, with its innovative

products with curative or life-

prolonging properties, has

once again been able to gain

the upper hand in price

setting, health insurers are

trying to offset their losses by

focusing on undifferentiated

products with multiple

competitors. Thus large

insurers in the USA are

demanding price discounts

from manufacturers for placing their products on exclusive

drug reimbursement lists. One of the consequences has been

disappointing sales forecasts from Glaxo for its asthma

products and from Sanofi for insulin. More surprising was an

agreement that PBM Express Scripts reached with AbbVie at

the end of the year to offer Viekira Pak® exclusively, despite

product differentiating characteristics, and to exclude

Gilead’s HCV products. The exact level of discounting was

not disclosed. Biosimilars became a discussion point during

the year but not a tangible threat.

Product Indication Mode of action Company

Vimizim® Morquio A Syndrome Enzyme replacement therapy BioMarin

Otezla® Psoriatric arthritis PDE4 inhibitor Celgene

Cyramza® Gastric Cancer VEGFR2 antagonist Lilly/Dyax

Zydelig® Leukemia Phophoinositide 3‐Kinase inhibitor Gilead

Esbriet®Idiopathic pulmonary

fibrosisUnclear Roche/Intermune

Keytruda® Melanoma PD‐1 inhibitor Merck & Co.

Harvoni® Hepatitis CNS5A inhibitor + NS5B nucleotide

polymerase inhibitorGilead

Blincynto® Leukemia Bispecific mab (CD19 + CD3) Amgen

Lynparza® Ovarian Cancer PARP inhibitor Astra Zeneca

Zerbaxa®Abdominal and urinary

infectionsCell wall synthesis inhibitor Cubist

Vikiera Pak® Hepatitis CInhibits NS3/4A, NS5A, NS5B palm

polymerase, CYP3AAbbvie

Opdivo® Melanoma PD‐1 inhibitorBristol‐Myers Squibb

Squibb

Table 1: Selected FDA approvals in 2014

Target company Sector Taken over byUSD in

millionsPremium*

Idenix Biotech Merck & Co. 3,900 239%

Covidien MedTech Medtronic 42,900 29%

CareFusion MedTech BectonDickinson 12,200 26%

Intermune Biotech Roche 8,300 63%

Nobel Biocare MedTech Danaher 2,200 23%

Auxilium Emerging Pharma Endo 2,200 31%

Prosensa Biotech BioMarin 0,840 100%

Allergan Speciality Pharma Actavis 66,000 10%

Volcano MedTech Philips 1,000 55%

Cubist Speciality Pharma Merck & Co. 8,400 34%

Table 2: Selected companies in receipt of a takeover offer in 2014

(* = premium over the closing share price before announcement)

Product Indication Mode of action Company

Vimizim® Morquio A Syndrome Enzyme replacement therapy BioMarin

Otezla® Psoriatric arthritis PDE4 inhibitor Celgene

Cyramza® Gastric Cancer VEGFR2 antagonist Lilly/Dyax

Zydelig® Leukemia Phophoinositide 3‐Kinase inhibitor Gilead

Esbriet®Idiopathic pulmonary

fibrosisUnclear Roche/Intermune

Keytruda® Melanoma PD‐1 inhibitor Merck & Co.

Harvoni® Hepatitis CNS5A inhibitor + NS5B nucleotide

polymerase inhibitorGilead

Blincynto® Leukemia Bispecific mab (CD19 + CD3) Amgen

Lynparza® Ovarian Cancer PARP inhibitor Astra Zeneca

Zerbaxa®Abdominal and urinary

infectionsCell wall synthesis inhibitor Cubist

Vikiera Pak® Hepatitis CInhibits NS3/4A, NS5A, NS5B palm

polymerase, CYP3AAbbvie

Opdivo® Melanoma PD‐1 inhibitor Bristol‐Myers Squibb

Table 1: Selected FDA approvals in 2014


6

The Federal Reserve ended its quantitative easing (QE)

policy in October but left the interest rate near zero with the

expectation of a hike in the second half of 2015. Accordingly

we saw some weakness in the emerging markets. Europe slid

into a recession-like phase against the backdrop of sanctions

against Russia and the ECB announced the possibility of a

QE program of its own. Accordingly the dollar appreciated

relative to the euro by more than 13% in 2014. Once again,

this persistent global economic uncertainty ultimately

favored the large cap segment.

Consequently, an analysis by Biocentury (05/01/2015)

demonstrated above-average growth, with a gain of 32% for

biotech companies with a market capitalization greater than 5

billion USD and 11% for mid cap companies above 1 billion

USD market capitalization. In contrast, companies with a

market capitalization of less than 1 billion USD saw

significant declines of 7% (market capitalization 500 - 999

million USD) and 14% (less than 200 million USD market

capitalization) respectively, as the following compilation

shows:

The profitable biotech large caps benefitted from their

scarcity and their high weightings in the ETFs (IBB) mostly

used by generalists. A further possible reason for small cap

underperformance is that there was a record number of 112

IPOs in 2014 (Biocentury 05/01/2015), making the segment

confusing for analysts and investors.

There was a similar picture in the medical technology sector.

Large caps and mid caps increased in value by 24.7% and

21.6% respectively; small caps, in contrast, stagnated,

gaining only 1.1% (in USD, Morgan Stanley, 05/01/2015)

Performance and portfolio strategy in the reporting year

With its strategic focus on mid and small cap values, the

FCP OP MEDICAL BioHealth-Trends clearly sets itself

apart from the sector’s standard investment funds. Most of

the other funds align themselves with an index and are, like

the indices, overwhelmingly focused on more highly

capitalized companies in the healthcare, pharma and biotech

industries. For example, the 10 largest positions in the

Nasdaq Biotech-Index account for almost 60% of the index’s

value.

As described in the review, the performance in 2014 was

primarily the result of the fundamental strength of the

biotech sector. Against this backdrop, the FCP OP

MEDICAL BioHealth-Trends fund, with its focus on small

and mid caps in the biotech sector, achieved a very healthy

gain of 33.5% (Unit Class EUR), thereby outperforming the

broader market indices S&P 500 (+28.4%) and MSCI World

(+18.4%). The Fund’s performance against the small cap-

oriented healthcare indices Russell 2000 Healthcare

(+36.1%) and S&P 600 Healthcare (+26.7%) was

comparable. However, a certain degree of risk aversion due

to macroeconomic uncertainties and the strong fundamentals

favoring the biotech large caps meant that the FCP OP

MEDICAL BioHealth-Trends fund underperformed the large

cap-dominated Nasdaq Biotech Index NBI (+54.5%) but

outperformed the large cap index Amex Pharma (+30.6%)

(Table 4).

The curve shapes (Figure 1) of the indices and of the FCP

OP MEDICAL BioHealth-Trends were generally correlated

with developments in the healthcare sector, macroeconomic

events and political decision-making. However, performance

in 2014 was not significantly affected by the geopolitical

crises in Ukraine or the fighting against Islamic State in the

Middle East.

S&P 500 28,4%

Dow Jones Industrial 23,8%

MSCI World 18,4%

Amex Pharma 30,6%

NASDAQ Biotech 54,5%

Russell 2000 Health 36,1%

S&P 600 Healthcare 26,7%

Tabel le 4: Performance‐Übers icht für führende Indizes in Euro

(27.12.2013 bis 29.12.2014, Oppenheim Asset Management Services S.à r.l .)

Market capitalization PerformanceNumber of

companies

>5,000 million USD 32,4% 31

1,000‐5,000 million USD 11,2% 72

500‐999 million USD ‐6,9% 80

200‐499 million USD 3,6% 157

<200 million USD ‐14,0% 393

Table 3: Performance of biotech companies in 2014 relative to their market

capital ization, Biocentury, 01/05/2015

S&P 500 28,4%

Dow Jones Industrial 23,8%

MSCI World 18,4%

Amex Pharma 30,6%

NASDAQ Biotech 54,5%

Russell 2000 Health 36,1%

S&P 600 Healthcare 26,7%

Table 4: Performance of leading indices in EUR (12/27/2013 – 12/29/2014,

Oppenheim Asset Management Services S.à r.l .)


companies

>5,000 million USD 32.4% 31

1,000‐5,000 million USD 11.2% 72

500‐999 million USD ‐6.9% 80

200‐499 million USD 3.6% 157

<200 million USD ‐14.0% 393


capital ization, Biocentury, 01/05/2015

S&P 500 28.4%

Dow Jones Industrial 23.8%

MSCI World 18.4%

Amex Pharma 30.6%

NASDAQ Biotech 54.5%

Russell 2000 Health 36.1%

S&P 600 Healthcare 26.7%

Table 4: Performance of leading indices in EUR (12/27/2013 – 12/29/2014,



companies

>5,000 million USD 32.4% 31

1,000‐5,000 million USD 11.2% 72

500‐999 million USD ‐6.9% 80

200‐499 million USD 3.6% 157

<200 million USD ‐14.0% 393


capita l i zation, Biocentury, 05/01/2015

S&P 500 28.4%

Dow Jones Industrial 23.8%

MSCI World 18.4%

Amex Pharma 30.6%

NASDAQ Biotech 54.5%

Russell 2000 Health 36.1%

S&P 600 Healthcare 26.7%

Table 4: Performance of leading indices in EUR (27/12/2013 ‐ 29/12/2014,



7

The first quarter saw a strong reporting season, with results

above expectations on the basis of successful recent product

launches. Product innovations such as Alprolix® (blood

clotting factor, Biogen Idec) and Otezla® (psoriasis, Celgene)

also received their FDA approval and outstanding

effectiveness data for the LDL cholesterol lowering drugs

from the PCSK9 antibody group were presented at the ACC

congress. In the spring the biotech sector experienced some

weakness. Statements by private payers and lawmakers on

drug pricing triggered doubts about the pharmaceutical

industry’s price setting power. The FCP OP MEDICAL

BioHealth-Trends, with its mid and small cap focus, was not

much affected by this debate and outperformed the NBI at

quarter end.

In the second quarter, important information regarding the

revolutionary drug class of immuno-oncology agents was

disclosed at ASCO, the world-leading clinical oncology

conference. Additional types of tumors had been treated

successfully with PD1/PDL1 inhibitors and combination

therapy produced synergistic effects. Great hopes are being

pinned on a number of products produced by some of the

Fund’s portfolio companies, such as Varlilumab from

Celldex, Incyte’s IDO1 inhibitor and Innate Pharma’s anti-

KIR antibody. Merck & Co.'s takeover of Idenix for 3.9

billion USD (takeover premium of 239% over the previous

day's closing price) also focused increased attention on

biotech prices in the small and mid cap segment, so that the

Fund continued to outstrip the NBI.

At the beginning of the third quarter, with Fed comments

about a biotech bubble still ringing in investors’ ears, the

sector experienced increased volatility, which persisted over

the summer. Small cap biotech companies (market

capitalization <1 billion USD) suffered most, with many of

them recording two-digit falls in stock price. Lack of action

on the pricing front and a healthy second and third quarter

earnings season helped the sector to recover in the second

half of the year. In contrast to the large cap-dominated

Nasdaq Biotech-Index (NBI), which benefitted from the very

positive biotech reporting season, the small and mid cap-

oriented FCP OP Medical BioHealth-Trends was unable to

catch up. The Nasdaq Biotech Index (NBI) reached a new

all-time high in August, boosted by Roche’s 8.3 billion USD

takeover bid for the biotech company Intermune (included in

the portfolio). Keytruda® – the first PD1/PDL1 antibody –

was particularly striking among the FDA approvals in

September.

In October the markets saw increased volatility, again in

conjunction with the Federal Reserve ending its historic

quantitative easing program. However, the current biotech-

generated innovation cycle proved to be such a powerful

growth generator that biotech large cap companies again

exceeded consensus expectations in the fourth quarter

reporting season and increased their profit forecasts. The

Nasdaq Biotech Index reached a new all-time high of 3,370

points. Many mid caps that had also had successful product

launches, such as portfolio companies BioMarin, Incyte,

Medivation, Seattle Genetics and Dyax, reported similar

levels of growth but did not benefit to the same extent. In

December we saw high volatility due to Express Scripts’

announcement of the exclusion of Gilead’s HCV products

from its drug reimbursement list, but the sector recovered

rapidly, reflecting the lack of alternative growth investments.

The Fund ended the reporting year on a high of 310.16 EUR

(Unit Class EUR).

The FCP OP MEDICAL

BioHealth-Trends fund is

available in a US dollar-hedged

tranche and a tranche that is not

currency-hedged. The currency-

hedged Unit Class EUR H

gained 25.3%* in the reporting

period and ended the year at a

value of 304.44 EUR.

The focus of the FCP OP

MEDICAL BioHealth-Trends

sub-fund’s strategy is on small

and mid caps. Fourteen per cent

of the sub-fund’s volume is

invested in companies with a

market capitalization between 1

and 10 billion USD and around

47% in companies with a market

capitalization under 1 billion

Figure 1: Performance of the FCP OP MEDICAL BioHealth‐Trends (+33.5%, EUR share class) compared

with the Russell 2000 Health Care‐Index (36.1%), Nasdaq Biotech‐Index (54.5%) and the Amex Pharma‐

Index DRG (+30.6%), in EURFigure 1: Performance of the FCP OP MEDICAL BioHealth‐Trends (+33.5%, Unit Class EUR) compared with

the Russel l 2000 Health Care‐Index (36.1%), Nasdaq Biotech‐Index (54.5%) and the Amex Pharma‐Index

DRG (+30.6%), in EUR for the period 30/12/13 to 29/12/14

Figure 1: Performance of the FCP OP MEDICAL BioHealth‐Trends (+33.5%, Unit Class EUR) compared with

the Russel l 2000 Health Care‐Index (36.1%), Nasdaq Biotech‐Index (54.5%) and the Amex Pharma ‐Index

DRG (+30.6%), in EUR for the period 30/12/2013 to 29/12/2014


8

USD (Table 5). In

comparison with the

market capitalization

groups below 1 billion

USD, which saw

substantial declines as

Biocentury’s analysis

shows (Table 3), the

fund performed

particularly well, with a

gain of 33.5% (Unit

Class EUR) clearly

indicating it had

benefitted from the

Medical Strategy fund

investment advisor’s

stockpicking approach.

The size of the individual portfolio positions is adjusted to

the risk/reward ratio in order to mitigate the risks associated

with smaller caps by holding more positions in this tier. This

is especially true for companies with products still in

development (phase III and earlier).

The Fund’s performance is based largely on its stock-picking

approach, which in turn is guided by fundamentals. Some

stocks made above-average contributions to the Fund’s

strong performance during their holding period by virtue of

some substantial price increases. Table 6 shows those with

the greatest percentage increases. It is striking that most of

the outperforming companies are at the commercial stage,

having just launched new, innovative products.

During 2014 there were just a few setbacks in the sub-funds

portfolio. Examples include biotech companies such as

ImmunoGen (down 59%), with a disappointing clinical study

for label expansion for its breast cancer drug Kadcyla®, and

Sarepta (down 27%), with a regulatory delay because the

FDA requested further clinical data for its product against

Duchenne muscular dystrophy. MedTech company Staar

Surgical (down 43%) missed sales expectations for its lead

product Visian® and received an FDA warning letter

regarding violations of quality system regulations.

The ongoing consolidation in the industry also contributed to

the fund’s performance. During the reporting period, three

portfolio companies – biotech company Intermune and

emerging pharma firms Forest and Furiex – were taken over

or received offers with premiums of up to 60%.

At year end, the 10 largest positions in the Fund’s portfolio

accounted for 31.2% of its volume, which constitutes a

significantly lower concentration of risk than the Nasdaq

Biotech-Index. In this latter index, the top 10 positions

account for about 60% of volume. The two largest positions

in the Fund were the biotech company BioMarin (4.4%) and

the medtech company Atricure (3.7%) (cf. top 5 in Table 7).

At the end of the reporting period, the portfolio contained 89

companies compared with 81 at the beginning. The portfolio

saw a great deal of activity over the course of the year. This

included in particular targeted investments in phases of

company development associated with above-average

increases in value. Over the course of the year, there were 52

new entrants to the Fund and 44 complete sales. As a result

of this activity, the Fund was invested in a total of 133

companies. The purchases and sales were determined by

news flows or the attainment of target prices or resulted from

takeovers. This fundamental timing made a significant

contribution to the performance of the mid and small cap-

oriented Fund, which exceeded that of the appropriate

comparator groups.

Market capitalization

segmentWeight Number of positions

>10.000 m USD 36,4% 15

1.000‐10.000 m USD 13,6% 10

500‐1.000 m USD 19,6% 17

200‐499 m USD 19,0% 21

<200 m USD 7,9% 26

Liquidität 3,5% ‐

∑ 100,0% 89

Table 5: Portfol io structure by market capital ization;

status as at 30/12/2014

CompanyPrice increase

in %*Reason

Intermune 396% Successful Esbriet® launch in Europe and takeover by Roche

Achillion

Pharmaceuticals 274% Clinical progress with oral HCV drugs

Skyepharma PLC 181% Successful launch of asthma product Flutiform®

Furiex 147% Takeover by Forest

Omeros Corp. 117% FDA approval for Omidria® and reimbursement

Edwards Lifesciences 96% Strong Sapien® sales and win in patent dispute with Medtronic

Dyax Corp. 93% Kalbitor® sales exceeded consensus expectations

Tekmira

Pharmaceuticals78% Development of Ebola treatment

Tetraphase 76% New antibiotic for severe bacterial infections

Medivation 54% Sales growth with Xtandi® and label expansio

Table 6: Stocks in the portfolio with the greatest % price increase in the reporting year in national currency (* = absolute stock price

performance from the first day to the last day of the holding period in 2014)


segmentWeight Number of positions

>10.000 m USD 36.4% 15

1.000‐10.000 m USD 13.6% 10

500‐1.000 m USD 19.6% 17

200‐499 m USD 19.0% 21

<200 m USD 7.9% 26

Liquidity 3.5% ‐

∑ 100.0% 89

Table 5: Portfol io structure by market capita l i zation;

status as at 30/12/2014

CompanyPrice increase

in %*Reason

Intermune 396% Successful Esbriet® launch in Europe and takeover by Roche

Achillion

Pharmaceuticals 274% Clinical progress with oral HCV drugs

Skyepharma PLC 181% Successful launch of asthma product Flutiform®

Furiex 147% Takeover by Forest

Omeros Corp. 117% FDA approval for Omidria® and reimbursement

Edwards Lifesciences 96% Strong Sapien® sales and win in patent dispute with Medtronic

Dyax Corp. 93% Kalbitor® sales exceeded consensus expectations

Tekmira

Pharmaceuticals78% Progress with RNA‐based therapies

Tetraphase 76% New antibiotic for severe bacterial infections

Medivation 54% Sales growth with Xtandi® and label expansio

Table 6: Stocks in the portfolio with the greatest % price increase in the reporting year in national currency (* = absolute stock price

performance from the first day to the last day of the holding period in 2014)


9

Some further comments on the structure of the fund

portfolio

With regard to the various investment segments in the health

sector, the main areas of fund investments were innovative

drug developers in the biotech (47%) and emerging

pharmaceutical sectors (16%). As a result, 63% of the fund’s

volume is invested in innovative drug developers.

The portfolio is primarily focused on companies that already

have products in the market. Eighty-one per cent of the

Fund’s volume is invested in companies that have launched

at least one product. Forty-five per cent of the Fund’s

volume is invested in profitable companies and 34% in

companies that have products on the market but have not yet

achieved profitability. However, there are several companies

in this last group that are on the verge of profitability. This

underlines our focus on companies that have potential for

strong earnings growth and no need of new financing. Ten

per cent is invested in companies with products in phase III

or in the approval process and 6% in companies with

products in earlier stages of development. In these latter

groups, the companies we have invested in either have

sufficient cash

for at least 24

months or offer

strong partnering

opportunities.

The regional distribution of the Fund’s assets reflects the

importance of the market in question and the number of

listed companies in the healthcare sector. Accordingly, the

majority of the investments (66%) were in North America,

followed by Europe with 31%.

The FCP OP MEDICAL BioHealth-Trends portfolio still

contains some pre-IPO holdings, which are valued

conservatively. The largest of these positions (1.2%) is in the

Berlin biotech company Noxxon Pharma AG. Noxxon is

developing Spiegelmers (chemically synthesized RNA

aptamers). This is a platform for a new class of active

ingredient, which could constitute an alternative to

monoclonal antibodies. Positive phase II proof-of-concept

data has already been produced for three of Noxxon’s

products. These are Emapticap for the treatment of

inflammatory diabetic kidney diseases, Olaptesed against

hematological tumors and Lexaptepid for the mobilization of

iron metabolism in anemia. Another private company is the

investment company BioM AG (0.1%). BioM AG has a stake

in 10 German biotech companies.

The Fund also has an indirect interest in pre-IPO companies

via the private equity company Safeguard (1.5%) and HBM

Healthcare Investments AG (2.0%). Attractive exit

opportunities are to be expected here.

Subsektoren Anteil am Fondsvolumen Anzahl der Unternehmen

Biotech 46,5% 49

Emerging Pharma 16,5% 21

Pharma 14,0% 6

Medtech 19,5% 13

Liquidity 3,5% ‐

∑ 100,0% 89

Tabel le 8: Portfol iostruktur nach Healthcare‐Subsektoren

Sub‐sector Weight Number of positions

Biotech 46.5% 49

Emerging Pharma 16.5% 21

Pharma 14.0% 6

Medtech 19.5% 13

Liquidity 3.5% ‐

∑ 100.0% 89

Table 8: Portfol io structure by healthcare sub‐sectors

Product status WeightNumber of

positions

In the market 80.6% 56

Approval process or phase 3 10.6% 15

Phase 2 and earlier 5.3% 18

Liquidity 3.5% ‐

∑ 100.0% 89

Table 9: Portfol io structure by product status

CompanyShare in fund

assets


(in million USD)Sector Comments

BioMarin

Pharmaceutical4.4% 13,529 Biotechnology

US biotech company specializing in rare diseases with five

products in the market, sales in excess of 500 million USD and

strong pipeline

AtriCure 3.7% 522 Emerging Medtech

US medtech company, specializing in innovative treatment

methods for stroke prophylaxis, e.g. minimally invasive ablation

techniques; sales in excess of 100 million USD and profitable in

2015

Medivation 3.1% 7,849 BiotechnologyUS biotech company, producer of Xtandi®, a successful prostate

cancer drug, growing strongly, profitable

Cerus 3.0% 488 Emerging Medtech

US medtech company – innovative technology for ‘disinfecting’

blood plasma and platelets; US approval end of 2014; US market

potential over 450 million USD

Incyte 3.0% 12,483 Biotechnology

US biotech company, first‐in‐class JAK inhibitor approved for use

against myelofibrosis; growing strongly and profitable; IDO

inhibitor as immuno‐oncological combination partner in pipeline

Table 7: Top 5 positions in the portfolio, Status as at 30/12/2014


10

In addition, the Fund successfully subscribed to seven stock

market launches, including the IPOs of Ultragneyx, Uniqure,

Achaogen and Zafgen. However, most of the share

allocations were disappointingly small.

The Fund also participated in four equity financing projects

(mostly PIPE transactions), namely at Immune

Pharmaceuticals, Bioline Rx, Can-Fite and Pharming. This

enabled it to acquire shares at a discount, together with

warrants in some cases.

The Fund still includes 11 positions with warrants or rights

that have considerable upside potential. In the reporting

period, the buying options for Tekmira, Pharming, Cerus and

Retrophin were exercised, producing profits of over 3 million

USD.

Sauren Fund Research once again awarded the fund advisor 3

gold medals in the Biotechnology Shares category.

At the end of the reporting year, the fund volume was 111.0

million EUR (start: 94.4 million EUR). The sole contributory

factor here was the positive price evolution, since the number

of fund units fell by 11%, from 390,575 to 347,736.

Performance over the longer term

The pharmaceutical industry requires an uninterrupted supply

of innovative drugs, since sales and valuations decline not

only as a result of patent expiries but also through

‘obsolescence’ in a competitive product market in which

innovation is necessary to survive. Against this background,

the long-term investment strategy of the FCP OP MEDICAL

Biohealth-Trends can be readily understood. By investing in

newly established small and mid-cap companies, the Fund is

investing in the urgently needed supply of innovations that

provides the basis for future growth and hence increases in

value. Since the launch of the FCP OP MEDICAL Biohealth-

Trends’ Unit Class EUR on 30.10.2000, it has appreciated in

value by 158.5%* and has significantly outperformed both

the relevant healthcare indices and those representing the

broader market (Figure 2), thereby demonstrating the value

of its strategy.

As a result, the FCP OP MEDICAL BioHealth-Trends has

achieved an average annual return of 6.9% since it was first

launched. In contrast, Morningstar (31.12.2014) puts the

annual return for the entire biotech fund category at just

3.6%.

Outlook and positioning for 2015

The biotech and pharma sectors have focused their research

and development on severe chronic diseases (high burden of

illness) with unmet medical needs and drugs for smaller

patient populations, e.g. rare genetic diseases (Orphan drugs)

and personalized medicine (genetic profiles). Companies that

offer real medical innovation with a meaningful disease

impact – especially the lifesavers – will be best positioned.

With the high number of 2014 drug approvals, it is expected

the newly marketed therapies can continue to drive sector

performance in 2015. The process of replacing an older

generation of therapeutics with new innovative disease-

modifying treatments is just in its early stages.

More breakthrough preparations are also close to market. We

expect approval to be granted in the second half of 2015 for

Amgen’s Evolocumab and Regeneron’s/Sanofi’s Alirocumab,

the first representatives of the new PCSK9 substance class

for reducing cardiovascular risk among patients with high

cholesterol levels and/or arteriosclerosis. Jefferies puts

potential sales for this product class at 18 billion USD

(25/03/2014). And for the first time in years, a new principle

for the treatment of cardiac insufficiency is being introduced

(LCZ696 from Novartis). Cancer immunotherapy, especially

combination therapies, will remain the hottest area.

Approvals are also expected for rare genetic diseases

(Vertex, Alexio, Synageva) and infections

(Merck & Co.). In addition, we see a lot of

significant phase 2 and 3 results on the

near-term horizon. The SLAMF7 antibody

Elotuzumab (AbbVie/BMY) and the BCL-2

inhibitor ABT-199 (AbbVie/Roche)

promise progress in the treatment of

leukemia. Results for the new class of

CETP inhibitors for the reduction of

cardiovascular events caused by high

cholesterol levels are being presented by

Merck & Co. and Eli Lilly and Eli Lilly

and Biogen could score in the difficult area

of Alzheimer’s research with their anti-

amyloid treatments. Sanofi will present

data on LixiLan, a GLP 1/insulin Figure 2: Outperformance of the FCP OP MEDICAL Biohealth‐Trends s ince launch in EUR on

30/10/2000


11

combination for the treatment of diabetes. Expectations are

high for the new group of CDK4/6 inhibitors (Pfizer’s

Palbociclib) for the treatment of solid tumors. The FDA

environment should remain favorable and, in view of the 35

submissions made in 2014 (Morgan Stanley, 06/01/2015),

drug approvals should stay on a high level. This is further

proof of the unique nature of this sector, whose sustained

innovation cycle is bringing an historically unparalleled

flood of new therapeutic breakthroughs to market. For the

USA alone, Bernstein Research expects additional sales of

201 billion USD by 2020 due to the launch of new product

classes (e.g. cancer immunotherapy) (26/09/2014).

Pricing power for innovative biotechnology products will be

stable, despite the debates about Gilead's hepatitis C drugs

Sovaldi®/Harvoni®. However, price pressures will intensify

in product groups in which there are few differentiating

characteristics, such as interferon products for the treatment

of multiple sclerosis or anti-TNF antibodies for the treatment

of rheumatism. Health insurers looking for savings will focus

in future on cheaper biosimilars. According to Express

Scripts, the potential for savings up to 2024 through the use

of biosimilars is 250 billion USD in the US healthcare

system alone (Biotech 2014, Burrill). There are not yet any

biosimilars on the market in the USA, although this situation

is certainly set to change very soon and we expect the first

approvals of biosimilars in 2015. BLAs have been submitted

to the FDA for biosimilars of the anemia drug epoetin alfa

(Epogen®, Amgen), the neutropenia drug filgrastim

(Neupogen®, Amgen) and the long-acting neutropenia drug

pegfilgrastim (Neulasta®, Amgen), as well as for the

rheumatism drug infliximab (Remicade® , Johnson &

Johnson). Furthermore, Eli Lilly’s biosimilar version of

Sanofi’s basal insulin product Lantus had become the object

of patent disputes in the USA. Finally, the first submission

for a biosimilar version of Humira®, the world’s best-selling

drug, is expected at the end of 2015.

Alongside these factors, a lack of growth elsewhere in the

economy is driving increased investment into the

biotechnology sector, and particularly into the innovative

small and mid-cap segment, which is providing a broadly

based supply of innovative drugs.

After a stronger than anticipated 2014 for large cap

pharmaceuticals, the group is now trading at a premium. This

is justified because drug pipelines continue to advance, with

more novel, value-added products beginning to emerge.

Moreover, since the ‘patent cliff year’ of 2012, the number

of significant patent expiries is declining, so that many

companies should return to steadier long-term

growth. However, the appreciation of the dollar may be a

risk factor for the quarterly results of companies with high

shares of sales outside the USA.

The IMS Institute for Healthcare Informatics (November

2014) expects global drug spending to reach about USD 1.3

trillion by 2018, up from USD 989 billion in 2013. The

product innovation cycle, population growth and increased

access to healthcare are the factors driving growth in drug

spending. IMS forecasts that emerging markets will account

for about 30% of global spending in 2018, up from 24.5% in

2013.

Heading into 2015, MedTech fundamentals appear healthy

with major orthopedic and cardio markets stable. Regarding

the premium valuation for large caps, we expect more value

creation in companies with new product cycles and exposure

to fast-growth end markets. These include trans-catheter

heart valves, drug-coated balloon catheters for the treatment

of vascular diseases and diabetes management with tubeless

insulin pumps and subcutaneous sensors for continuous

glucose monitoring. With regard to M&A and the megadeals

of 2014, we expect acquirers in 2015 to increasingly refocus

on smaller companies with unique technologies to fill

product gaps.

In the coming months, value drivers for the small/mid caps in

the FCP OP MEDICAL BioHealth-Trends portfolio should

be mostly fundamentals (approvals, positive clinical data,

increasing revenues, M&A). For example, companies in the

sub-portfolio waiting for approval/regulatory decisions

include Vertex, Actelion, Vectura, BioMarin, Basilea,

Relypsa and Spectrum Pharmaceuticals. In this tier,

Neurocrine Biosciences, Celldex, Innate Pharma, Achaogen,

Achillion and Array Biopharma are mostly driven by clinical

product news flows, whereas SkyePharma, Seattle Genetics,

Incyte, Medivation are driven by reporting sales, as are

medtech companies Cerus and Edwards Lifesciences, to

name just two in that sector.

We expect investors to refocus attention on small and mid-

cap biotech companies in 2015. As a result of the more than

100 IPOs in 2014, the sector has become even stronger and

more diversified, with interesting products in development.

Analyst and investors are still familiarizing themselves with

the new names. To the specialist, this creates an opportunity

to discover inefficiencies or a number of ‘hidden gems’.

Furthermore, both big pharma and biotech companies are

dependent on small and mid caps with interesting products to

fill gaps in their pipelines. In view of the fact that the cost of

capital remains extremely low, we expect M&A activity to be

strong in 2015.

The FCP OP MEDICAL BioHealth-Trends portfolio is

exposed to a significant number of small/mid cap companies,

in the hope that they will generate outperformance. Overall,

the most important aspects of our investments remain

fundamentals and the prospects of individual companies.


12

Summary

Through its focus on medium-sized and small companies in

the healthcare sector that are developing innovative products

(biotechnology, medtech, emerging pharma, etc.), the FCP

OP MEDICAL BioHealth-Trends should continue to offer

investors who take a long-term view potential for above-

average price growth compared with the market as a whole.

Luxembourg, February 4, 2015

Oppenheim Asset Management Services S.à r.l.

Stephan Rudolph Sascha Steinhardt

*) calculated according to BVI Bundesverband Investment

und Asset Management e.V.

The statements about the capital market environment are

consistent with the state of information at the time of the

reporting. The investment advisor reserves the right to

modify his assessment.

Presentation of the Value at Risk (VaR) figures and

leveraging effect in accordance with the regulations in

force in Luxembourg (CSSF Circular 11/512):

The total risk attached to the investment assets FCP OP

MEDICAL BioHealth-Trends is calculated on the basis of

the relative value at risk approach. The value at risk of the

fund is limited up to 200% of the value at risk of the

benchmark. The presentation relates to the financial year

under review.

The composition of the benchmark:

100 % MSCI World Healthcare

The following potential value at risk amounts arose as at the

relevant calculation dates during the financial year under

review. The figures represent the absolute utilised capacity

of the 200% limit.

Smallest potential value at risk 89,47 %

Largest potential value at risk 117,95 %

Average value at risk 105,23 %

The management company is expecting a leverage effect of

up to 200% of the respective total net assets. This percentage

rate does not constitute an additional investment limit and

may vary from time to time.

The average leveraging effect reached as a result of the use

of derivatives during the financial year under review

amounted to 24,97 %.

The value at risk is calculated on the basis of a variance-

covariance approach which is supplemented with Monte

Carlo simulations for the purposes of recognising

asynchronous, non-linear risks. A 99% confidence level over

a 20-day holding period and an effective historical

observation period of 1 year is used as a statistical parameter

set. Risk is measured by comparison with a derivate-free

benchmark. Market risk constitutes the risk arising out of

unfavourable developments in market prices for the Fund

assets.


The accompanying notes form an integral part of these financial statements. 13

THE KEY FACTS

Investment policy Shares in biotechnology, medical

technology, health industry and pharmacy

German Security-code

Unit Class EUR 941.135

Unit Class EUR H A0F69B

Unit Class I A0MNRQ

Unit Class I H A0MQG5

Unit Class I X 1) A12GCR

ISIN-code

Unit Class EUR LU0119891520

Unit Class EUR H LU0228344361

Unit Class I LU0294851513

Unit Class I H LU0295354772

Unit Class I X 1) LU1152054125

Swiss Security-code

Unit Class EUR 1.148.391

Unit Class EUR H 2.256.911

Unit Class I 3.032.638

Unit Class I H 3.041.692

Unit Class I X 1) -

Fund currency EUR

Date of inception

Unit Class EUR 30.10.2000

Unit Class EUR H 01.10.2005

Unit Class I 02.05.2007

Unit Class I H 02.05.2007

Unit Class I X 1) -

Financial year 01.01. - 31.12.

Reporting period 01.01.2014 - 31.12.2014

First offering price per unit

Unit Class EUR 126,00 EUR

Unit Class EUR H 124,02 EUR

Unit Class I 129,00 EUR

Unit Class I H 133,72 EUR

Unit Class I X 1) -

(each incl. subscription fee)

First bid price per unit

Unit Class EUR 120,00 EUR

Unit Class EUR H 118,11 EUR

Unit Class I 122,86 EUR

Unit Class I H 127,35 EUR

Unit Class I X 1) -

Subscription fee up to 5,00 %

Redemption fee

Unit Class I X 1) 0,30 %

if holding period < 6 months

Management fee p.a. up to 1,90 %

plus performance bonus

Custodian bank fee p.a. up to 0,15 %

Dividends none

1) The Unit Class has not been issued as at the end of the reporting period.

AT A GLANCE 31.12.2014

Total Net Assets (EUR million) 111,01

Units in circulation Class (EUR) - (units) 184.167

Bid price Class (EUR) - (EUR per unit) 310,16

Offering price Class (EUR) - (EUR per unit) 325,67

Units in circulation Class (EUR H) - (units) 33.202

Bid price Class (EUR H) - (EUR per unit) 304,44

Offering price Class (EUR H) - (EUR per unit) 319,66

Units in circulation Class (I) - (units) 109.163

Bid price Class (I) - (EUR per unit) 335,02

Offering price Class (I) - (EUR per unit) 351,77

Units in circulation Class (I H) - (units) 21.204

Bid price Class (I H) - (EUR per unit) 339,76

Offering price Class (I H) - (EUR per unit) 356,75

DEVELOPMENT OF THE TOTAL NET ASSETS

OVER THE LAST 3 YEARS

VALUES AT FINANCIAL YEAR-END (IN EUR)

Financial year Total Net Assets

01.01.2011 - 31.12.2011 79.468.198,95

01.01.2012 - 31.12.2012 71.087.916,71

01.01.2013 - 31.12.2013 94.416.138,74

01.01.2014 - 31.12.2014 111.005.334,49

Financial year

EUR EUR H I I H

01.01.2011 - 31.12.2011 134,04 133,03 137,59 142,44

01.01.2012 - 31.12.2012 150,51 153,17 156,21 164,95

01.01.2013 - 31.12.2013 232,28 243,03 247,22 266,57

01.01.2014 - 31.12.2014 310,16 304,44 335,02 339,76

DEVELOPMENT OF THE NET ASSET VALUE

OVER THE LAST 3 YEARS

VALUES AT FINANCIAL YEAR-END

Net Asset Value per Unit (in EUR)



DEVELOPMENT OF THE NET ASSET VALUE (IN EUR)

UNIT CLASS EUR

Highest net asset value per unit

in the reporting period (30.12.2014) 310,16

Lowest net asset value per unit


Performance in the period under review *) 33,53 %

Performance since commencement *) 158,47 %

Performance over the last 3 years


UNIT CLASS EUR H








12,29%

54,33%

33,53%

-20%

0%

20%

40%

60%

80%

01.01.12 - 31.12.12 01.01.13 - 31.12.13 01.01.14 - 31.12.14

Performance*) of the financial periods in %

15,14%

58,67%

25,27%

-20%

0%

20%

40%

60%

80%

01.01.12 - 31.12.12 01.01.13 - 31.12.13 01.01.14 - 31.12.14



UNIT CLASS I









UNIT CLASS I H








*) calculated according to BVI Bundesverband Investment und Asset Management e.V.

Past performance is no indication of current or future performance. The performance

data do not take account of commissions and costs on the issue and redemptions of units.

13,53%

58,26%

35,51%

-20%

0%

20%

40%

60%

80%

01.01.12 - 31.12.12 01.01.13 - 31.12.13 01.01.14 - 31.12.14


15,80%

61,61%

27,46%

-20%

0%

20%

40%

60%

80%

01.01.12 - 31.12.12 01.01.13 - 31.12.13 01.01.14 - 31.12.14




STATEMENT OF CHANGES IN THE NUMBER OF UNITS

OUTSTANDING FROM 01.01.2014 TO 31.12.2014

UNIT CLASS EUR

Number of units outstanding at the beginning

of the reporting period 183.105

Number of units issued 69.143

Number of units redeemed -68.081

Number of units outstanding at the end




UNIT CLASS EUR H









UNIT CLASS I









UNIT CLASS I H



Number of units issued 371




GEOGRAPHIC CLASSIFICATION

OF INVESTMENTS

% of fund's

assets

USA 60,35

Switzerland 10,60

Great Britain 6,11

Denmark 4,00

France 3,80

Germany 3,68

Israel 2,86

Belgium 2,86

Canada 1,46

Netherlands 0,47

Cayman Islands 0,29

Austria 0,00

96,48

CURRENCY CLASSIFICATION

OF INVESTMENTS

% of fund's

assets

USD 64,57

CHF 10,60

EUR 10,34

GBP 6,11

DKK 4,00

CAD 0,86

96,48

ECONOMIC CLASSIFICATION

OF INVESTMENTS

% of fund's

assets

Bio-Tech 46,47

Med-Tech 19,47

Emerging Pharma 16,47

Pharma 14,07

96,48



CHANGES IN NET ASSETS (IN EUR)

FOR THE PERIOD FROM 01.01.2014 TO 31.12.2014

Net assets at the beginning

of the financial year 94.416.138,74

Subscriptions (EUR) 18.926.367,27

Subscriptions (EUR H) 5.924.235,47

Subscriptions (I) 32.952.435,57

Subscriptions (I H) 112.853,60

Redemptions (EUR) -18.171.026,24

Redemptions (EUR H) -12.196.733,70

Redemptions (I) -31.515.880,91

Redemptions (I H) -6.596.040,54

Total proceeds from unit transactions -10.563.789,48

Income equalisation -117.327,60

Net result -4.950.627,64

Realized gain/loss

on investments 24.014.967,32

on foreign exchange transactions -2.071,12

on foreign forward exchange transactions -834.906,52

Net change in unrealized

appreciation/depreciation

on investments 9.332.408,52

on foreign exchange transactions 480.456,20

on foreign forward exchange transactions -769.913,93

Result of operations 27.270.312,83

Total net assets at the end

of the financial year 111.005.334,49

STATEMENT OF OPERATIONS (IN EUR)

FOR THE PERIOD FROM 01.01.2014 TO 31.12.2014

(INCL. INCOME EQUALISATION)

Income

Dividends 479.159,79

Income equalisation -37.584,38

Total income 441.575,41

Expenses

Bank interest -1.684,12

Management fee -1.568.951,01

Performance bonus -3.605.560,32

Custodian bank fee -121.315,18

Taxe d'Abonnement -36.321,98

Audit fee -17.214,20

Other expenses -196.068,22

Expense equalisation 154.911,98

Total expenses -5.392.203,05

Net result -4.950.627,64

Realized gain/loss 23.177.989,68

Net change in unrealized

appreciation/depreciation 9.042.950,79

Result of operations 27.270.312,83



Securities listed on an official stock exchange

or traded in on another regulated market

Shares

CAD 111.111 Aurinia Pharmaceuticals Inc. Restricted 4,2700 334.775,73 0,30

CAD 102.040 Response Biomedical Corp. Restricted 0,7100 51.120,82 0,05

CAD 43.850 Tekmira Pharmaceuticals Corp. physical 16,1700 500.320,91 0,45

CHF 14.500 Actelion Ltd. NA 116,2000 1.400.581,89 1,26

CHF 30.303 Addex Therapeutics Ltd. NA 2,3200 58.439,70 0,05

CHF 18.312 Basilea Pharmaceutica AG NA 92,0000 1.400.418,96 1,26

CHF 26.863 HBM Healthcare Investments AG NA 97,9500 2.187.224,33 1,97

CHF 15.900 Lonza Group AG NA 111,5000 1.473.690,78 1,33

CHF 40.400 Novartis AG NA 92,9500 3.121.512,90 2,81

CHF 9.450 Roche Holding AG Gen.Sch. 270,0000 2.120.947,64 1,91

DKK 12.433 Alk-Abello A/S -B- 654,0000 1.092.871,44 0,98

DKK 161.300 H. Lundbeck A/S 124,7000 2.703.436,75 2,44

DKK 58.055 Zealand Pharma A/S 83,0000 647.639,18 0,58

EUR 31.851 Ablynx N.V. 9,1260 290.672,23 0,26

EUR 22.700 Bayer AG NA 115,0500 2.611.635,00 2,35

EUR 50.000 INNATE PHARMA -A- 8,0900 404.500,00 0,36

EUR 34.700 Sanofi 75,9000 2.633.730,00 2,37

EUR 44.625 UCB S.A. 64,5600 2.880.990,00 2,60

EUR 120.559 Valneva SE 4,1700 502.731,03 0,45

EUR 63.474 Vexim S.A. 10,7400 681.710,76 0,61

GBP 34.600 AstraZeneca PLC 45,5700 2.010.869,25 1,81

GBP 3.301.042 Oxford Biomedica PLC 0,0525 221.023,82 0,20

GBP 331.662 Skyepharma PLC 3,3200 1.404.308,44 1,27

GBP 687.570 Vectura Group PLC 1,2725 1.115.843,83 1,01

GBP 3.311.028 Vernalis PLC 0,4800 2.026.902,21 1,83

USD 87.200 Abbott Laboratories 45,6000 3.261.954,23 2,94

USD 56.700 AbbVie Inc. 67,1400 3.122.920,52 2,81

USD 33.433 Achaogen Inc. 13,0400 357.642,79 0,32

USD 56.134 Achillion Pharmaceuticals Inc. 12,6550 582.753,21 0,52

USD 23.800 Amgen Inc. 162,8500 3.179.517,76 2,86

USD 133.932 Anthera Pharmaceuticals Inc. 1,6700 183.483,65 0,17

USD 43.314 Aquinox Pharmaceuticals Inc. 6,8200 242.331,13 0,22

USD 42.840 Aradigm Corp. 7,6400 268.496,95 0,24

USD 705.926 Array BioPharma Inc. 4,8300 2.797.066,84 2,52

USD 260.824 AtriCure Inc. 19,1300 4.093.163,16 3,69

USD 104.794 BioAmber Inc. 8,4000 722.124,77 0,65

USD 5.300 Biogen Idec Inc. 343,4300 1.493.174,74 1,35

USD 258.590 BioLineRx Ltd. ADR 1,6600 352.140,80 0,32

USD 64.700 BioMarin Pharmaceutical Inc. 92,2100 4.894.167,53 4,41

STATEMENT OF ASSETS AND LIABILITIES AS OF 31.12.2014

Number Price Market Value %*) of

Currency of Securities description in (EUR) Net

Shares Currency 31.12.2014 Assets



USD 81.000 Biota Pharmaceuticals Inc. 2,2000 146.185,48 0,13

USD 65.000 Can-Fite Biopharma Ltd. ADR 3,5500 189.294,61 0,17

USD 47.222 Celldex Therapeutics Inc. 18,5000 716.659,13 0,65

USD 643.045 Cerus Corp. 6,2600 3.302.267,38 2,97

USD 404.876 Codexis Inc. 2,5400 843.630,53 0,76

USD 217.000 CTI BioPharma Corp. 2,3600 420.115,08 0,38

USD 557.167 Curis Inc. 1,2600 575.907,14 0,52

USD 122.689 Cytokinetics Inc. 6,6700 671.317,54 0,60

USD 174.000 Discovery Laboratories Inc. 1,1300 161.296,23 0,15

USD 90.707 Dyax Corp. 14,3300 1.066.310,12 0,96

USD 23.400 Edwards Lifesciences Corp. 129,4200 2.484.355,77 2,24

USD 1.175.407 Gevo Inc. 0,3450 332.662,55 0,30

USD 37.675 GlycoMimetics Inc. 7,4100 229.017,15 0,21

USD 280.720 ImmunoGen Inc. 6,2600 1.441.598,17 1,30

USD 54.600 Incyte Corp. 74,2600 3.326.167,56 3,00

USD 41.000 Insulet Corp. 46,5600 1.566.005,79 1,41

USD 164.360 IntelliPharmaCeutics Intl. Inc. 2,3000 310.113,38 0,28

USD 687.461 Ligand Pharmaceuticals Inc. 0,0450 25.377,99 0,02

Metabasis General CVR

USD 823.114 Ligand Pharmaceuticals Inc. 0,1150 77.652,31 0,07

Metabasis Glucagon CVR

USD 62.250 Lombard Medical Inc. 6,2300 318.144,15 0,29

USD 77.677 Lpath Inc. 2,7400 174.598,11 0,16

USD 41.200 Medivation Inc. 101,6200 3.434.574,51 3,09

USD 1.010.473 Nanosphere Inc. 0,3800 314.995,86 0,28

USD 136.439 Nautilus Inc. 14,8700 1.664.355,26 1,50

USD 17.500 Neurocrine Biosciences Inc. 22,4000 321.575,24 0,29

USD 45.037 Omeros Corp. 23,9100 883.375,94 0,80

USD 144.828 Oncothyreon Inc. 1,9100 226.925,05 0,20

USD 33.000 Paratek Pharmaceuticals Inc. 37,9200 1.026.546,92 0,92

USD 226.820 Progenics Pharmaceuticals Inc. 7,2000 1.339.708,70 1,21

USD 115.314 QLT Inc. 3,7300 352.847,79 0,32

USD 143.498 Retrophin Inc. 13,0000 1.530.332,27 1,38

USD 97.486 Safeguard Scientifics Inc. 20,0900 1.606.640,55 1,45

USD 42.200 Sarepta Therapeutics Inc. 14,4800 501.276,73 0,45

USD 83.428 Seattle Genetics Inc. 32,7000 2.237.979,58 2,02

USD 193.438 Sorrento Therapeutics Inc. 10,2000 1.618.596,14 1,46

USD 82.088 Spectrum Pharmaceuticals Inc. 6,8600 461.955,70 0,42

USD 62.430 Staar Surgical Co. 9,1500 468.609,37 0,42

USD 340.939 Syneron Medical Ltd. 9,4200 2.634.657,23 2,37

USD 49.500 Tandem Diabetes Care Inc. 12,4800 506.776,33 0,46

USD 80.558 Targacept Inc. 2,6100 172.482,77 0,16

USD 81.200 Tenax Therapeutics Inc. 3,8000 253.125,65 0,23







USD 38.300 Tokai Pharmaceuticals Inc. 14,3000 449.294,75 0,40

USD 116.338 Unilife Corp. 3,3700 321.623,69 0,29

USD 40.932 Uniqure B.V. 15,6300 524.829,79 0,47

USD 77.100 Vanda Pharmaceuticals Inc. 14,8300 937.976,73 0,84

USD 20.500 Vertex Pharmaceuticals Inc. 119,7900 2.014.517,11 1,81

USD 77.812 XenoPort Inc. 8,3200 531.087,94 0,48

USD 17.432 Zafgen Inc. 31,6300 452.317,04 0,41

USD 15.659 ZS Pharma Inc. 42,4100 544.789,63 0,49

Total Shares 105.141.286,12 94,72

Warrants

USD 15.088 Sunesis Pharmaceuticals Inc. 0,0300 371,32 0,00

WTS Call 31.03.16 USD 12,00 S. -B-

Total Warrants 371,32 0,00

Total Securities listed on an official stock exchange

or traded in on another regulated market 105.141.657,44 94,72

Other Securities

Non-listed Securities

CAD 2.777.777 Aurinia Pharma Inc. 0,0354 69.385,66 0,06

WTS 20.09.2016 Aurinia CAD 2,50

CAD 742.858 ICo Therapeutics Inc. WTS Call 17.05.18 CAD 0,40 0,0000 0,00 0,00

CAD 51.020 Response Biomedical Corp. 0,0000 0,00 0,00

WTS Call 07.11.16 Resp. Biom. CAD 3,58

CAD 2.304.475 Response Biomedical Corp. 0,0000 0,00 0,00

WTS Call 30.12.16 Resp. Biom. CAD 1,49

CAD 426.794 Telesta Therapeutics Inc. 0,0000 0,00 0,00

WTS Call 26.09.15 CAD 0,40

EUR 83.352 BioM AG - Private Placement 1,5000 125.028,00 0,11

EUR 590.862 Intercell AG Nachbesserungsrechte 0,0000 0,00 0,00

EUR 2.924 NOXXON Pharma AG Common Shares 201,6300 589.566,12 0,53

EUR 1.840 NOXXON Pharma AG Preference Shares -A- 201,6300 370.999,20 0,33

EUR 1.900 NOXXON Pharma AG Preference Shares -B- 201,6300 383.097,00 0,35

EUR 661.500 Pharming Group N.V. 0,0000 0,00 0,00

WTS Call 23.04.16 EUR 0,57 (1:1)

USD 559.739 Adolor Corp. CVR Gabs 144A Aeltus CBO 0,8500 390.302,23 0,35

USD 32.500 Can Fite Warrants 18 Call USD 6,43 0,0000 0,00 0,00







USD 145.833 Celsion Corp. 0,0000 0,00 0,00

WTS Call 14.07.16 USD 14,625 (4,5:1)n.Split-Restrict

USD 18.722 Immune Pharmaceuticals Inc. 1,8800 28.873,98 0,03

restr to be delivered + gesperrt

USD 52.083 Immune Pharmaceuticals Inc. 0,0000 0,00 0,00

WTS -A- Call 14.02.19 USD 3,00 (1:1)


WTS -B- Call 14.02.19 USD 3,50 (1:1)


WTS Call 23.06.16 USD 3,00 (1:1)

USD 433.177 Innovive Pharmaceuticals Inc. 0,0000 0,00 0,00

Escrow (American Stock Transfer)

USD 67.000 Innovive Pharmaceuticals Inc. Escrow (DTC) 0,0000 0,00 0,00

USD 352.942 Titan Pharmaceuticals Inc. 0,0000 0,00 0,00

WTS -A- 13.04.18 USD 0,89 - Restricted

Total Non-listed Securities 1.957.252,19 1,76

Total Other Securities 1.957.252,19 1,76

Total Investment Portfolio 107.098.909,63 96,48

Bank deposits 5.779.743,08 5,21

Other Assets

Other accounts receivable 47.893,90 0,04

Total Other Assets 47.893,90 0,04

Total Assets 112.926.546,61 101,73







Liabilities

Performance fee -1.529.265,16 -1,38

Taxe d'Abonnement -44.821,98 -0,04

Liabilities on foreign forward exchange transactions -347.124,98 -0,31

Total Liabilities -1.921.212,12 -1,73

Total Net Assets 111.005.334,49 100,00

Net asset value per unit - Unit Class EUR 310,16

Number of units outstanding - Unit Class EUR 184.167

Net asset value per unit - Unit Class EUR H 304,44

Number of units outstanding - Unit Class EUR H 33.202

Net asset value per unit - Unit Class I 335,02

Number of units outstanding - Unit Class I 109.163

Net asset value per unit - Unit Class I H 339,76

Number of units outstanding - Unit Class I H 21.204

*) The rounding down of the percentage in the calculation can result in marginal rounding differences.

OUTSTANDING FOREIGN FORWARD EXCHANGE CONTRACTS AS OF 31.12.2014

Forward Unrealized

Exchange Result Maturity Counter-

Sale Purchase Rate (EUR) (Valuta) party

EUR 1.292.155,71 USD 1.600.000,00 1,219661 19.694,95 23.02.2015 1)

USD 15.900.000,00 EUR 12.669.789,04 0,819913 -366.819,93 23.02.2015 1)

-347.124,98

The above-mentioned outstanding foreign forward exchange contracts were entered into

with the following counterparties:

1) Sal. Oppenheim jr. & Cie. Luxembourg S.A. (Member of Deutsche Bank AG Group)






22

The Management Company may assign other companies of

the Oppenheim group with the management of the funds or

with duties of the central administration in accordance with

Luxembourg regulations and under its own responsibility

and its own costs.

The financial statements have been prepared in accordance

with Luxembourg regulations relating to investment funds.

Due to the fact that FCP OP MEDICAL only consisted of

one sub-fund, the FCP OP MEDICAL BioHealth-Trends,

during the reporting period, the composition of the Total Net

Assets, the Changes in Net Assets and the Statement of

Operations of the FCP OP MEDICAL BioHealth-Trends

corresponds at the same time to the consolidated statements

of FCP OP MEDICAL.

The net asset value of the fund is expressed in EUR, the net

asset value of each unit class is expressed in the currency of

the unit class.

The market value of the securities corresponds to the most

recent market or fair value available. Non-listed securities

are valued at their acquisition costs or fair market value.

The cost of securities is the weighted average cost of all the

purchases of these securities. For securities that are priced in

a currency other than the Fund’s currency, the average cost

is calculated with the exchange rate of the purchase date.

The net realized profit and loss on sales of securities is

determined on the basis of the average cost of securities

sold.

During the fiscal year the fund paid an amount of

EUR 579.656,22 as transaction fees for the sales and

purchases of securities.

Unrealized profits and losses resulting from the valuation of

securities are taken into account in the result.

All liquid assets are valued at their nominal value.

The sub-fund maintains its books and records in EUR.

All assets and liabilities not expressed in EUR are converted

into EUR at the exchange rates prevailing as of December

29, 2014.

Canadian Dollar CAD 1,417199 = EUR 1

Swiss Franc CHF 1,203000 = EUR 1

Danish Krone DKK 7,440200 = EUR 1

British Pound GBP 0,784100 = EUR 1

US-Dollar USD 1,218999 = EUR 1

Outstanding foreign forward exchange contracts are valued

at the foreign forward exchange rate for the remaining

period of the transaction. The unrealized profits and losses

are taken into account in the financial statements.

As with the payment for the custodian bank (up to 0,15%

p.a.), the remuneration of the management company (up to

1,90% p.a.) is computed on the basis of the daily Net Asset

Value calculation. These are calculated and paid at the end

of each month. During the reporting period the management

company received a management fee amounting to

EUR 1.568.951,01 and the custodian bank received a

custodian bank fee amounting to EUR 121.315,18.

A trailer fee may be paid to the distributor for the

distribution of the investment fund and to the asset manager

to be taken out of the management fee.

Institutional unit holders who are holding fund units for third

parties may receive reimbursement out of the management

fee.

The investment advisor receives a performance bonus.

Where it is payable, the performance bonus is equivalent to

15% (for Unit Class EUR and Unit Class EUR H) and 10%

(for Unit Class I, Unit Class I H and Unit Class I X) of the

excess increase in value relative to the net asset value per

unit and half year. The term „excess increase in value“ refers

to the appreciation per half year which exceeds 2,5% –

adjusted by earlier dividends paid and broken financial

years. The performance bonus is calculated on each day of

calculation and deferred accordingly; it is only payable if the

net asset value per unit as at the half year-end – compared

with the high at the end of the previous half year – records a

new high („high water mark“), and only then on the new

excess increase in value that is above the stated high of the

net asset value per unit at the end of a previous half year.

The net asset value per unit is adjusted by dividends paid.

Notes to the Annual Report


23

The Total Expense Ratio (TER) indicates the costs on the

Fund’s total assets for the period from January 1, 2014 to

December 31, 2014. With the exception of the transaction

costs, all costs of the fund are shown in relation to the

average total fund assets.

In accordance with SFAMA method the following

TER-values arise:

TER incl. performance bonus TER (in %)Unit Class EUR 6,48Unit Class EUR H 4,81Unit Class I 4,46Unit Class I H 3,43 TER excl. performance bonus TER (in %)Unit Class EUR 2,11Unit Class EUR H 2,09Unit Class I 1,55Unit Class I H 1,57

In accordance with SFAMA method the Portfolio Turnover

Rate (PTR) for the period from January 1, 2014 to December

31, 2014 amounts to 0,18.

Under Luxembourg legislation and regulations, the Fund is

subject to an annual subscription tax („Taxe

d’Abonnement“) of 0,05% p.a. for Unit Class EUR and

Unit Class EUR H and of 0,01% for Unit Class I, Unit Class

I H and Unit Class I X on its net assets, payable quarterly

and computed on the basis of the net assets of the Fund at

the end of each quarter.

An income adjustment is made in the taxable income; it

includes net income accrued during the accounting period

which the buyer of the unit pays in the issue price and which

the seller of the unit receives by way of reimbursement in

the bid price.


24

Report on the financial statements

Following our appointment by the Board of Directors of the

Management Company, we have audited the accompanying

financial statements of FCP OP MEDICAL and each of its

sub-funds, which comprise the statement of net assets and

the statement of investments and other net assets as at

December 31, 2014 and the statement of operations and the

statement of changes in net assets for the year then ended,

and a summary of significant accounting policies and other

explanatory information.

Board of Directors of the Management Company

responsibility for the financial statements

The Board of Directors of the Management Company is

responsible for the preparation and fair presentation of these

financial statements in accordance with Luxembourg legal

and regulatory requirements relating to the preparation of the

financial statements, and for such internal control as the

Board of Directors of the Management Company determines

is necessary to enable the preparation of financial statements

that are free from material misstatement, whether due to

fraud or error.

Responsibility of the Réviseur d’Entreprises agréé

Our responsibility is to express an opinion on these financial

statements based on our audit. We conducted our audit in

accordance with International Standards on Auditing as

adopted for Luxembourg by the Commission de Surveillance

du Secteur Financier. Those standards require that we

comply with ethical requirements and plan and perform the

audit to obtain reasonable assurance about whether the

financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the

judgement of the Réviseur d’Entreprises agréé, including the

assessment of the risks of material misstatement of the

financial statements, whether due to fraud or error. In

making those risk assessments, the Réviseur d’Entreprises

agréé considers internal control relevant to the entity’s

preparation and fair presentation of the financial statements

in order to design audit procedures that are appropriate in

the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the entity’s internal control.

An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of

accounting estimates made by the Board of Directors of the

Management Company, as well as evaluating the overall

presentation of the financial statements.

We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

In our opinion, the financial statements give a true and fair

view of the financial position of FCP OP MEDICAL and

each of its sub-funds as of December 31, 2014, and of the

results of its operations and changes in its net assets for the

year then ended in accordance with Luxembourg legal and

regulatory requirements relating to the preparation of the

financial statements.

Other matter

Supplementary information included in the annual report has

been reviewed in the context of our mandate but has not

been subject to specific audit procedures carried out in

accordance with the standards described above.

Consequently, we express no opinion on such information.

However, we have no observation to make concerning such

information in the context of the financial statements taken

as a whole.

Luxembourg, February 19, 2015

KPMG Luxembourg, Société coopérative

Cabinet de révision agréé

Petra Schreiner

Report of the Réviseur d’Entreprises agréé


25

Tax Information for German Investors for the period from 01.01.2014 to 31.12.2014 in EUR per UnitFCP OP MEDICAL BioHealth-Trends EUR Private Business Business

LU0119891520 assets assets assets

German Investment Tax Act (InvStG) Section 5 Para. 1 (KStG) (EStG)

No. 1 a) Amount of distributed earnings 0,00000 0,00000 0,00000aa) Non-distributed earnings from previous years included in the distributed earnings 0,00000 0,00000 0,00000bb) Capital repayments included in the distributed earnings 0,00000 0,00000 0,00000

No. 1 b) Distributed earnings 0,00000 0,00000 0,00000No. 2) Non-distributed earnings 0,00000 0,00000 0,00000

Total amount of distributed/non-distributed earnings 0,00000 0,00000 0,00000No. 1 c) Included in the distributed earnings

aa) Income as defined by Sec. 2 Para. 2 Sentence 1 InvStG combined with Sec. 3 No. 40 EStGor in case of Sec. 16 InvStG combined with Sec. 8b Para. 1 KStG - 0,00000 0,00000

bb) Profit on sale as defined by Sec. 2 Para. 2 Sentence 2 InvStGcombined with Sec. 8b Para. 2 KStG or Sec. 3 No. 40 EStG - 0,00000 0,00000

cc) Income as defined by Sec. 2 Para. 2a InvStG (interest barrier) - 0,00000 0,00000dd) Tax-free profit on sale as defined by Sec. 2 Para. 3 No. 1 Sentence 1

of the version applicable on 31 December 2008 0,00000 - -ee) Income as defined by Sec. 2 Para. 3 No. 1 Sentence 2 of the version applicable

on 31 December 2008, if the income is not capital gains as defined by Sec. 20 EStG 0,00000 - -ff) Tax-free profit on sale as defined by Sec. 2 Para. 3 in the

version applicable on 1 January 2009 0,00000 - -gg) Income as defined by Sec. 4 Para. 1 0,00000 0,00000 0,00000hh) Income included in double letter gg) that is not subject to

the progression clause 0,00000 - 0,00000ii) Income as def. by Sec. 4 Para. 2 for which no deduction was made as def. by Para. 4 0,00000 0,00000 0,00000jj) Income included in double letter ii) to which Sec. 2 Para. 2 InvStG combined

with Sec. 8b Para. 2 KStG or Sec. 3 No. 40 EStG or in case of Sec. 16 InvStG combined with Sec. 8b Para. 1 KStG is applicable - 0,00000 0,00000

kk) Income included in double letter ii) as defined by Sec. 4 Para. 2 by which in line with atreaty to avoid double taxation one of the taxes considered to have been paid can beoffset against income tax or corporate income tax 0,00000 0,00000 0,00000

ll) Income included in double letter kk) to which Sec. 2 Para. 2 InvStG combined with Sec. 8b Para. 2 KStG or Sec. 3 No. 40 EStG or in case of Sec. 16 InvStG combined with Sec. 8b Para. 1 KStG is applicable - 0,00000 0,00000

mm) Income as def. by Sec. 21 Para. 22 Sent. 4 InvStG comb. with Sec. 8b Para. 1 KStG - 0,00000 -nn) Income included in double letter ii) as defined by Sec. 21 Para. 22 Sentence 4 InvStG, to which

Sec. 2 Para. 2 InvStG of the version as of 20 March 2013 combined with Sec. 8b Para. 1 KStG is applicable - 0,00000 -

oo) Income included in double letter kk) as defined by Sec. 21 Para. 22 Sentence 4 InvStG, to which Sec. 2 Para. 2 InvStG of the version as of 20 March 2013 combined with Sec. 8b Para. 1 KStG is applicable - 0,00000 -

No. 1 d) The portion of distributed earnings that can be offset against capital gains taxaa) as defined by Sec. 7 Para. 1 and Para. 2 0,00000 0,00000 0,00000bb) as defined by Sec. 7 Para. 3 0,00000 0,00000 0,00000cc) as defined by Sec. 7 Para. 1 Sentence 4 if included in double letter aa) 0,00000 0,00000 0,00000

No. 1 f) The amount of foreign tax incurred by the income contained in the distributed/non-distributed earningsas defined by Sec. 4 Para. 2, and

aa) can be offset as set out in Sec. 4 Para. 2 InvStG combined with Sec. 32d Para. 5 or Sec. 34c Para. 1 EStG or a treaty to avoid double taxation if no deduction has been made under Sec. 4 Para. 4 0,00000 0,23049 0,23049

bb) included in double letter aa) and incurred by income to which Sec. 2 Para. 2 InvStG combined with Sec. 8b Para. 2 KStG or Sec. 3 No. 40 EStG or in case ofSec. 16 InvStG combined with Sec. 8b Para. 1 KStG is applicable - 0,00000 0,23049

cc) that can be deducted under Sec. 4 Para. 2 InvStG combined with Sec. 34c Para. 3 EStG if no deduction was made under Sec. 4 Para. 4 of this Act 0,00000 0,00000 0,00000

dd) included in double letter cc) and incurred by income to which Sec. 2 Para. 2 InvStG combined with Sec. 8b Para. 2 KStG or Sec. 3 No. 40 EStG or in case ofSec. 16 InvStG combined with Sec. 8b Para. 1 KStG is applicable - 0,00000 0,00000

ee) which can be offset under a treaty to avoid double taxation and underSec. 4 Para. 2 combined with this treaty 0,00000 0,00000 0,00000

ff) included in double letter ee) and incurred by income to which Sec. 2 Para. 2 InvStG combined with Sec. 8b Para. 2 KStG or Sec. 3 No. 40 EStG or in case ofSec. 16 InvStG combined with Sec. 8b Para. 1 KStG is applicable - 0,00000 0,00000

gg) Income included in double letter aa) as defined by Sec. 21 Para. 22 Sentence 4 InvStG, to which Sec. 2 Para. 2 InvStG of the version as of 20 March 2013 combined with Sec. 8b Para. 1 KStG is applicable - 0,00000 -

hh) Income included in double letter cc) as defined by Sec. 21 Para. 22 Sentence 4 InvStG, to which Sec. 2 Para. 2 InvStG of the version as of 20 March 2013 combined with Sec. 8b Para. 1 KStG is applicable - 0,00000 -

ii) Income included in double letter ee) as defined by Sec. 21 Para. 22 Sentence 4 InvStG, to which Sec. 2 Para. 2 InvStG of the version as of 20 March 2013 combined with Sec. 8b Para. 1 KStG is applicable - 0,00000 -

No. 1 g) The amount for deductions for wear and depletion 0,00000 0,00000 0,00000No. 1 h) The withholding tax paid in the financial year, minus the

withholding tax reimbursed in the financial year or earlier financial years 0,42870 0,42870 0,42870For information only: amount of the non-deductable professional expenses as definedby Sec. 3 Para. 3 Sentence 2 No. 2 InvSTG in the version of 26 June 2013 0,00000 0,00000 0,00000

For the purposes of publishing the taxation principles, KPMG Luxembourg, Société coopérative, Réviseurs d’Entreprises, Luxembourg, has certified under Section 5 Para. 1 No. 3 InvStG that the information as per Section 5 Para. 1 No. 1 and 2 InvStG was calculated using the rules of German tax law.


26

Tax Information for German Investors for the period from 01.01.2014 to 31.12.2014 in EUR per UnitFCP OP MEDICAL BioHealth-Trends EUR H Private Business Business


































27

Tax Information for German Investors for the period from 01.01.2014 to 31.12.2014 in EUR per UnitFCP OP MEDICAL BioHealth-Trends I Private Business Business


































28

Tax Information for German Investors for the period from 01.01.2014 to 31.12.2014 in EUR per UnitFCP OP MEDICAL BioHealth-Trends I H Private Business Business


































29

MANAGEMENT COMPANY AND CENTRAL ADMINISTRATION:

Oppenheim Asset Management Services S.à r.l.

4, rue Jean Monnet, L-2180 Luxembourg

Shareholders’ equity: EUR 2,7 million

(status: January 1, 2014)

BOARD OF DIRECTORS:

(since 27.03.2014)

Chairman:

Holger Naumann

Managing Director

Deutsche Asset & Wealth Investment GmbH,

Frankfurt

Alfons Klein

Member of the Board

Sal. Oppenheim jr. & Cie. Luxembourg S.A., Luxembourg

Dr. Wolfgang Leoni

Chairman of the Board

Sal. Oppenheim jr. & Cie. AG & Co. KGaA, Cologne

Dr. Matthias Liermann

Managing Director

Deutsche Asset & Wealth Management GmbH,

Frankfurt

Marco Schmitz

Managing Director

Head of White Label & Fiduciary Management


Klaus-Michael Vogel

CEO

DWS Investment S.A., Luxembourg

(until 26.03.2014)

Chairman:

Dr. Wolfgang Leoni

Chairman of the Board


Vice chairman:

Detlef Bierbaum

Bankier, Cologne

Dr. Jörn Matthias Häuser

Chief Operating Officer


Alfons Klein

Member of the Board

Sal. Oppenheim jr. & Cie. Luxembourg S.A., Luxembourg

Stefan Molter

Head Product Development

Managing Director


EXECUTIVE BOARD:

(since 27.03.2014)

Thomas Albert, Speaker of the Board

Andreas Jockel (until 15.05.2014)

Ralf Rauch

Stephan Rudolph (since 01.09.2014)

Martin Schönefeld

Max von Frantzius (until 15.09.2014)

(until 26.03.2014)

Marco Schmitz, Chairman

Thomas Albert

Andreas Jockel

Max von Frantzius

CUSTODIAN BANK:

Sal. Oppenheim jr. & Cie. Luxembourg S.A.


Shareholders’ equity: EUR 50 million

(status: January 1, 2014)

AUDITOR:


39, Avenue John F. Kennedy, L-1855 Luxembourg

INVESTMENT ADVISOR:

Medical Strategy GmbH

Maria-Eich-Strasse 72, D-82166 Gräfelfing

Further Office: Daimlerstrasse 15, D-86356 Neusäß

(Financial service institute as defined

by § 1 Abs. 1a KWG [German Banking Act])

http://www.medicalstrategy.de

SCIENTIFIC ADVISORY BOARD:

Prof. Dr. med. Peter Hohenberger

Surgical University Clinic Mannheim,

Div. of Surgical Oncology and Thoracic Surgery

Prof. Dr. Manfred Weber

Head physician of the Medical Clinic I

Clinics of the city of Cologne

Partners


30

Prof. Dr. med. Thomas Zeller

Head physician of angiology of the heart clinics

Bad Krozingen

PAYING AGENTS:

in Luxembourg

Sal. Oppenheim jr. & Cie. Luxembourg S.A.


in Germany

Deutsche Bank AG

Taunusanlage 12, D-60325 Frankfurt am Main

in Austria

Deutsche Bank Österreich AG

Head Office Vienna

Stock im Eisen-Platz 3, A-1010 Vienna

DISTRIBUTION AGENTS:

in Germany

Sal. Oppenheim jr. & Cie. AG & Co. KGaA

Unter Sachsenhausen 4, D-50667 Cologne

and its branches

in Austria

Deutsche Bank Österreich AG

Head office Vienna

Stock im Eisen-Platz 3, A-1010 Vienna

TAX AGENT IN AUSTRIA:


39, Avenue John F. Kennedy, L-1855 Luxembourg

ADDITIONAL INFORMATION ON THE DISTRIBUTION OF UNITS IN OR

FROM SWITZERLAND:

Actual Representative und Paying Agent in Switzerland:

BNP Paribas Securities Services, Paris,

succursale de Zurich

Selnaustrasse 16

CH-8002 Zurich

The offering prospectuses, management regulations, the Key

Investor Information Document (KIID) as well as annual,

semi-annual and interim reports and a list of purchases and

sales of the fund are available free of charge at BNP Paribas

Securities Services, Paris, succursale de Zurich, Zurich.

Oppenheim Asset Management Services S.à r.l. 4, rue Jean Monnet 2180 Luxembourg

Luxembourg

Phone +352 2215 22-1 Fax +352 2215 22-500

www.oppenheim.lu

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