Westlb Mellon Compass Fund Société D’Investissement À Capital Variable Luxembourg - RCS B67580
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WestLB Mellon Compass Fund Société d’Investissement à Capital Variable Luxembourg - RCS B67580 Audited Annual Report for the Year ended November 30, 2011 No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual and the most recent semi-annual report, if published thereafter. WestLB Mellon Compass Fund – Annual Report as at November 30, 2011 WestLB Mellon Compass Fund Société d’Investissement à Capital Variable Registered Office European Bank & Business Center 6, route de Trèves L-2633 Senningerberg BOARD OF DIRECTORS CUSTODIAN, PAYING AGENT, TRANSFER AGENT, Martin Tillert (Chairman) REGISTRAR, FUND ACCOUNTING Managing Director, J.P. Morgan Bank Luxembourg S.A. WestLB Mellon Asset Management Holdings Limited, European Bank & Business Center London, United Kingdom 6, route de Trèves L-2633 Senningerberg, Grand Duchy of Luxembourg Mohammed Bhatti¹ Chief Operations Officer, DISTRIBUTORS Blackfriars Asset management Ltd. WestLB AG London, United kingdom Herzogstraße 15 D-40217 Düsseldorf, Germany Greg Brisk² Chief Operating Officer, WestLB Mellon Asset Management BNY Mellon Asset Management International Ltd. KAGmbH, Elisabethstraße 65 160,Queen Victoria Street D-40217 Düsseldorf, Germany UK-London EC4V 4LA United Kingdom BNY Mellon Asset Management International Ltd. Philippe Farhi Madrid Branch Deputy Managing Director, C/José Abascal, 45-4a planta Banque d’Orsay, ES-28003 Madrid, Spain Paris, France BNY Mellon Asset Management International Ltd. Udo Goebel Milan Branch Managing Director, Via Agnello 8 WestLB Mellon Asset Management (Luxembourg) S.A., I-20121 Milan, Italy Grand Duchy of Luxembourg Banque d’Orsay S.A.5 Anne de Nonancourt Immeuble Etoile Saint – Honoré Associate Director, 21, rue Balzac WestLB Mellon Asset Management (Luxembourg) S.A., F-75008 Paris, France Grand Duchy of Luxembourg Oddo Asset Management S.A. 6 MANAGEMENT COMPANY4 12, boulevard de la Madeleine former: DELEGATED MANAGEMENT COMPANY 75009 Paris France WestLB Mellon Asset Management (Luxembourg) S.A. 1, rue Jean-Pierre Brasseur DekaBank Deutsche Girozentrale L-1258 Luxembourg, Grand Duchy of Luxembourg Mainzer Landstraße 16 D-60325 Frankfurt, Germany MANAGEMENT COMPANY3 Deka-WestLB Asset Management (Luxembourg) S.A. BNY Mellon Asset Management International Ltd. 1, rue Jean-Pierre Brasseur The Bank of New York Mellon Center L-1258 Luxembourg, Grand Duchy of Luxembourg 160 Queen Victoria Street UK-London EC4V 4LA United Kingdom BNY Mellon Asset Management Latin America S.A. Isidora Govenechea 3365 of 1701 Las Condes, Santiago ¹ until October 31, 2011 Chile PC 7550120 ² since November 1, 2011 3 until November 30, 2011 4 since December 1, 2011 5 until January 31, 2011 6 since February 1, 2011 WestLB Mellon Compass Fund 1 WestLB Mellon Compass Fund – Annual Report as at November 30, 2011 WestLB Mellon Compass Fund Société d’Investissement à Capital Variable Registered Office European Bank & Business Center 6, route de Trèves L-2633 Senningerberg 2 AUDITOR Rainer Mach PricewaterhouseCoopers S.à r.l. Managing Director, 400, route d’Esch DekaBank Deutsche Girozentrale, L-1471 Luxembourg, Grand Duchy of Luxembourg Luxembourg, Grand Duchy of Luxembourg 2 PAYING AND INFORMATION AGENT IN GERMANY Manfred Karg WestLB AG Head of General Secretarial Services, Herzogstraße, 15 DekaBank Deutsche Girozentrale, D-40217 Düsseldorf, Germany Frankfurt, Germany REPRESENTATIVE AND PAYING AGENT IN SUB-MANAGERS SWITZERLAND BNP Paribas Securities Services S.A. Blackfriars Asset Management Ltd. Selnaustrasse, 16 Bank of New York Mellon Centre P.O. Box 2119 160 Queen Victoria Street CH-8002 Zurich, Switzerland London EC4V 4LA, United Kingdom PAYING AND INFORMATION AGENT IN AUSTRIA Raiffeisen Bank International AG BNP Paribas Asset Management SAS Am Stadtpark 9 1, Boulevard Haussmann A-1030 Vienna, Austria F-75009 Paris, France WestLB Mellon Asset Management KAGmbH BOARD OF DIRECTORS Elisabethstraße 65 OF THE MANAGEMENT COMPANY D-40217 Düsseldorf, Germany Martin Tillert (Chairman)1 Standish Mellon Asset Management Company LLC Managing Director, Bank of New York Mellon Center WestLB Mellon Asset Management Holdings Limited, 201 Washington Street Suite 2900, One Boston Place London, United Kingdom Massachusetts 02108-4408, USA Peter Raab1 BNY Mellon Asset Management (UK) Ltd. Managing Director, Bank of New York Mellon Center WestLB Mellon Asset Management KAGmbH, 160 Queen Victoria Street Düsseldorf, Germany London EC4V 4LA, United Kingdom Udo Göbel1 Managing Director, WestLB Mellon Asset Management (Luxembourg) S.A., Luxembourg, Grand Duchy of Luxembourg Ulrich Gallus (Chairman)2 Head of Asset Management, DekaBank Deutsche Girozentrale, Frankfurt, Germany Volker Kurr3 Chief Executive Officer, WestLB Mellon Asset Management KAGmbH, Düsseldorf, Germany 1 since December 1, 2011 2 until November 30, 2011 3 until August 3, 2011 WestLB Mellon Compass Fund 2 WestLB Mellon Compass Fund – Annual Report as at November 30, 2011 TABLE OF CONTENTS Directors’ Report to Shareholders 4 Audit Report 13 Notes to the financial statements as at November 30, 2011 15 Statement of Net Assets as at November 30, 2011 23 Statement of Operations and Changes in Net Assets for the year ended November 30, 2011 26 Statement of Changes in the Number of Shares for the year ended November 30, 2011 30 Statistics as at November 30, 2011 33 Schedule of Investments as at November 30, 2011 36 WestLB Mellon Compass Fund - Euro Small Cap Equity Fund 36 WestLB Mellon Compass Fund - Eastern Europe Diversified Fund 38 WestLB Mellon Compass Fund - Global Emerging Markets Fund 39 WestLB Mellon Compass Fund - Euro Bond Fund 41 WestLB Mellon Compass Fund - Euro Corporate Bond Fund 42 WestLB Mellon Compass Fund - Euro High Yield Bond Fund 45 WestLB Mellon Compass Fund - Global Bond Fund 47 WestLB Mellon Compass Fund - Global Emerging Markets Bond Fund 50 WestLB Mellon Compass Fund - Global High Yield Bond Fund 52 WestLB Mellon Compass Fund - ABS Fund 57 WestLB Mellon Compass Fund – Euro Credit Short Duration Fund 58 Appendix 1 61 Appendix 2 64 Appendix 3 65 The Sub-Funds Latin America Fund and Quandus Euro Bond Fund exist as at November 30, 2011. However they have no investment as at November 30, 2011 due to the merger of Latin America Fund into Global Emerging Markets Fund and to the merger of Quandus Euro Bond Fund into Euro Bond Fund both with effective date November 30, 2011 and record date December 1, 2011. The Sub-Funds Euro Equity Fund, Japanese Equity Fund, Euro Balanced Fund and ABS Time Optimizer Fund also exist as at November 30, 2011. However they have no investment as at November 30, 2011 due to the liquidation with effective date November 30, 2011 and record date December 1, 2011. WestLB Mellon Compass Fund 3 WestLB Mellon Compass Fund – Annual Report as at November 30, 2011 Directors’ Report to Shareholders Market Review Equities Global The last twelve months were again characterised by strong volatility. Closing 2010 on a positive note, global markets saw an upbeat start to 2011, buoyed by benign economic data. The upheavals in North Africa delivered a first minor blow to markets. Then, the earthquake/tsunami hitting Japan on March 11 and the ensuing nuclear catastrophe further added to uncertainty. From midyear onwards, stock prices around the globe were mainly driven by the debt woes troubling several European countries. Europe Following the turn of the year 2010/2011, European stock markets continued to be driven mainly by the sovereign debt crisis in the Euroland periphery. Drawing the consequences in the face of Greece’s imminent default, the Premier resigned, thus clearing the way for a transition government. Fears of the debt crisis spreading to Italy also brought about a change in the Italian government. A downgrade of Portugal’s rating sparked further risk aversion among investors. At a summit held in October, EU leaders resolved to leverage the EFSF, to require a larger voluntary private-sector involvement in the haircut on Greece debt and to impose higher core capital ratios on banks. Although the details had yet to be ironed out, European stock markets recovered sharply from the annual lows reached in September. In November, coordinated measures launched by major international central banks to ease refinancing terms for banks helped further alleviate concerns among market participants. Japan From December 2011 to February 2011 Japanese equities rose by 9.25% despite the general mixed trends that prevailed in the Japanese economy, the unconvincing corporate earnings and the concerns linked to external factors such as the problems with the sovereign debt in Europe and political uncertainties in the Middle-East. Investors’ search for returns in 2011 was driving their re-allocation towards riskier assets. Then, the dramatic consequences of the disaster that hit Japan on March 11 naturally overwhelmed any other consideration about the economic situation or the market. Japanese equities lost almost 9% over the month. The uncertainties that continued to prevail about the situation at Fukushima, the power outages and supply chain issues continued to drag on the market. Despite strong efforts from companies to pro-actively address the consequences of the earthquake, the political uncertainties and a gloomier international situation weighed on investors optimism. The Nikkei 300 lost 11.6% from March to May 2011. Despite a better domestic economy, Japanese equities were caught in the market