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BNP PARIBAS ISLAMIC FUND FCP

Annual Reportat 31/12/2012

R.C.S. Luxembourg B 27 605

BNP PARIBAS ISLAMIC FUND

Table of contents

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

Page

Organisation 4

Information 5

Manager's report 6

Sharia Supervisory Committee’s Report 8

Audit report 9

Financial statements at 31/12/2012 11

Key figures relating to the last 3 years 12

Securities portfolio at 31/12/2012 13

Notes to the financial statements 15

Unaudited appendix 21


Organisation

Management Company

BNP Paribas Investment Partners Luxembourg, 33, rue de Gasperich, L-5826 Hesperange, Luxembourg

Board of Directors of BNP Paribas Investment Partners Luxembourg:

Chairman

Mr Marc RAYNAUD, Head of “Global Funds Solutions”, BNP Paribas Investment Partners, Paris

Members

Mr Christian VOLLE, Director of BNP Paribas Investment Partners Luxembourg (until March 31, 2012)

Mr Max DIULIUS, Global Head, EEMEA & LATAM Regions, BNP Paribas Investment Partners, Paris (from April 4, 2012)

Mr Eric MARTIN, Chairman of the Management Board, BGL BNP Paribas Luxembourg, Luxembourg

Mr Stéphane BRUNET, Chief Executive Officer, BNP Paribas Investment Partners Luxembourg, Luxembourg

Mr Anthony FINAN, Head of Marketing, Communication & Group Networks, BNP Paribas Investment Partners, Paris

Mr Marnix ARICKX, Managing Director, BNP Paribas Investment Partners Belgium, Brussels

Mrs Charlotte DENNERY, Chief Operating Officer, BNP Paribas Investment Partners, Paris

Central Administration

BNP Paribas Investment Partners Luxembourg, 33, rue de Gasperich, L-5826 Hesperange, Luxembourg

Custodian, Paying Agent, Transfer Agent and Registrar

BNP Paribas Securities Services, Luxembourg branch, 33, rue de Gasperich, L-5826 Hesperange, Luxembourg

Auditor

PricewaterhouseCoopers, Société coopérative, 400, route d’Esch, B.P. 1443, L-1014 Luxembourg, Luxembourg

Investment Manager

BNP Paribas Asset Management, 1, boulevard Haussmann, F-75009 Paris, France (until June 29, 2012)

THEAM SAS, 1, boulevard Haussmann, F-75009 Paris, France (from June 30, 2012)

Sharia Supervisory Committee

Sheikh Nizam Yaquby

Dr. Abdul Sattar Abu Ghuddah

Dr. Mohamed Daud Bakar

Paying Agent and Representative in Switzerland

Unitholders can apply to the Custodian Bank or the bank listed below about payment services or to obtain the prospectus, KIIDs, Management Regulations, annual and semi-annual reports of BNP PARIBAS ISLAMIC FUND free of charge.

Representative in Switzerland

BNP Paribas Investment Partners (Suisse) S.A., 2, place de Hollande, CH-1204 Geneva

Paying Agent in Switzerland

BNP Paribas Securities Services, Paris, Zurich Branch, Selnaustrasse 16, CH-8002 Zurich


Information

BNP PARIBAS ISLAMIC FUND (the "Fund") is a Mutual Investment Fund (fonds commun de placement – abbreviated to “FCP”), created under Luxembourg law on February 10, 2006 for an indefinite period.

The Fund is currently governed by the provisions of Part I of the law of December 17, 2010 governing undertakings for collective investment as well as by the Directive 2009/65/EC.

The management regulation of the Fund initially signed on February 1, 2006, was filed at the “Greffe du Tribunal d’Arrondissement” and its publication in the “Mémorial, Recueil Spécial des Sociétés et Associations” (The “Mémorial”) was made by a notice of the deposit at the “Greffe” on February 10, 2006.

The current version of the management regulation was signed on June 30, 2012 and filed at the “Greffe du Tribunal d’Arrondissement”. Its publication in the “Mémorial, Recueil Spécial des Sociétés et Associations” (The “Mémorial”) will be made by a notice of the deposit at the “Greffe”. The date of deposit will be inserted in the next annual report.

Audited annual reports, unaudited semi-annual reports and changes in the portfolio over the year may be obtained by the Unitholders without any cost at the offices of the Management Company, of the Custodian and of any Paying Agent.

The documents and information are also available on the website www.bnpparibas-ip.com.


Manager’s report

ECONOMIC AND FINANCIAL CLIMATE

Early 2012 saw the continuation of the recovery that had started the previous autumn. Until March, investor enthusiasm was driven by news regarded as positive concerning US growth and above all by the conviction that central banks would continue to provide liquidity. The theme of central banks’ liquidity measures dominated the markets throughout the year and contributed to solid equity performance. In the spring, this development was partially jeopardised due to doubts regarding the health of the global economy and renewed concerns about the European sovereign debt crisis, which weighed on financial markets until July. These factors led central banks to restate their commitment to supporting economic activity and ensuring that the markets would continue to operate. Their statements, which resulted in the September announcement of further quantitative easing measures, reassured investors and gave equities a golden summer. The European Central Bank (ECB) played a decisive role. On 26 July, the sovereign debt crisis seemed to be reaching another climax with fears circulating regarding several peripheral countries and the Spanish banking system, as well as massive pressure on the long-term rates concerned. Questions were even being asked about the consequences for Germany of its contribution to stability mechanisms. This was when ECB President Mario Draghi stated that the institution was “ready to do whatever it takes to save the euro”, clearing the way for purchases of securities to mitigate eurozone liquidity risk. Equity performance was more modest and somewhat chaotic, however, as several issues remained unresolved.

OUTLOOK

The main factors likely to influence investor decisions, and therefore the direction of financial markets, have barely changed for 2013. The global economic picture is still mixed, as it seems that the recent upturn will not lead to a significant and sustainable acceleration in growth. The latter will continue to be held back in the short term by ongoing fiscal consolidation. US fiscal policy for 2013 remains a major element of uncertainty despite the agreement approved by the Senate at the very end of the year. A decision on spending has been deferred, with cuts delayed by two months. In the eurozone, the ECB’s commitment seems to have banished extreme risks but a definitive solution to the sovereign debt crisis has not yet been implemented and several unknowns persist, particularly in the political sphere. One of the few positive points to cling to in 2013 is the attitude of central banks, who recently confirmed their intention to maintain very accommodative monetary policies or to relax them even further. This commitment may cause investors to shift their attention to equities due to the lack of a better alternative, but caution will dominate for the time being as the situation remains rather difficult to interpret.


Manager’s report

INVESTMENT POLICY

BNP PARIBAS ISLAMIC FUND -Equity Optimiser invests in 30 of the stocks making up the Dow Jones Islamic Market Titans 100 index.

Stocks are selected from the index once a year, retaining the 30 with the highest returns.

The Dow Jones Islamic Market Titans 100 index recorded gains of 10.74% over the year. Over the same period, the fund’s Institutional unit was up to 12.61%. This past performance is not necessarily a guide to the future results of the Fund.

30/12/2011 31/12/2012 Change

Dow Jones Islamic Market Titans 100 Index 2 225.61 2 464.69 +10.74%

BNP Paribas Islamic Fund – Unit “Classic Capitalisation” 1 296.37 1 445.69 +11.52%

BNP Paribas Islamic Fund – Unit “I-Capitalisation” 136 210.51 153 382.41 +12.61%

BNP Paribas Islamic Fund – Unit “Privilege” 13 375.69 14 991.58 +12.08%

The Board of Directors Luxembourg, February 28, 2013

Note: The information stated in this report is historical and not necessarily indicative of future performance.


Sharia Supervisory Committee’s Report

Complying with written guidelines relating to Islamic Sharia criteria, the Fund does not invest in equity securities where the issuer’s core activity or activities relate to conventional banking or any other interest-related activity, alcohol, tobacco, gaming, gambling, leisure, biotechnology companies involved in human/animal genetic engineering, arms manufacturing, life insurance, pork production, packaging and processing or any other activity relating to pork and sectors/companies significantly affected by the above. In addition, the Fund does not invest in any issuer that is unacceptable under Islamic Sharia principles due to excessive debt. The current criteria exclude issuers whose gross interest-bearing debt to gross assets ratio exceeds the percentage permitted under Islamic Sharia from time to time (which currently is 33 per cent). Furthermore, it is not permissible for the Fund to pay or receive interest, although the receipt and payment of dividends from equity securities is acceptable. However, dividends received by the Fund from its investments may comprise an amount which is attributable, for Islamic Sharia purposes, to interest income earned or received by the underlying investee companies as well as to the interest-bearing debt. In this case, the amount of the dividend will be calculated in accordance with Islamic Sharia criteria (dividend cleansing procedure). In accordance with Islamic Sharia, the amount of dividend income so attributed will be donated once a year by the Fund to charities with no direct or indirect benefit accruing to the Fund at the absolute discretion of the Directors. Since that dividend income received by the Fund will be accumulated and rolled up outside the capital of the Fund.

SHARIA OPINION The BNP Paribas’ Fund Shari’ah Supervisory Committee (the “FSSC”), chaired by Sheikh Nizam Yaquby, issued the following Shari’ah opinion on January 21st of 2013 on the BNP Paribas Islamic Fund Equity Optimiser, sub-fund of the BNP Paribas Islamic Fund, after a detailed discussion and review of the Fund’s Documents. In the name of Allah, the Most Gracious, the Most Merciful All praise is due to Allah, the Cherisher of the world, and peace and blessing be upon the Prophet of Allah, on his family and all his companions

BNP Paribas Islamic Fund Equity Optimiser

Quarter 1, 2, 3 & 4 2012 Shari’ah Compliance Report

With reference to the Shari’ah Opinion issued on the 16th February 2006, based on its view of the structure and investment process of the Fund and on the information provided by the Fund’s Manager, the FSSC hereby confirm that the Fund’s portfolio holding as well as its transactions during the year (ended 31st December 2012) are in compliance with the Islamic investment guidelines required by the FSSC. The FSSC has reviewed and endorsed the methodology used by the Fund’s Manager to calculate a pro rate of the Fund’s earnings arising from interest income earned or received by the underlying investee companies as well as to the interest-bearing debt, and the earnings arising from restricted activities for the period under review which were as follows: First, Second, Third & Fourth Quarter 2012 Total Impure Income: USD$: 69 561.78 In accordance with the Fund prospectus dated June 2012, the above total amount will be donated to a charity. This donation will have neither direct nor indirect benefit accruing to the Fund. A copy of this proposal has been filed with BNP Paribas’ Sharia Supervisory Committee secretary. And Allah Knows best.

……………………………………………. ………………………………….…………………… ……………………………………………..……. Sheikh Nizam Yaquby Dr. Abdul Sattar Abu Ghuddah Dr. Mohamed Daud Bakar Dated: 21st Janaury 2013

PricewaterhouseCoopers, Société coopérative, 400 Route d’Esch, B.P. 1443, L-1014 Luxembourg T: +352 494848 1, F:+352 494848 2900, www.pwc.lu

Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256) R.C.S. Luxembourg B 65 477 - TVA LU25482518

Audit report

To the Unitholders of BNP PARIBAS ISLAMIC FUND We have audited the accompanying financial statements of BNP PARIBAS ISLAMIC FUND, which comprise the statement of net assets and the securities portfolio as at December 31, 2012 and the statement of operations and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements.

Responsibility of the Board of Directors of the Management Company 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 judgment 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.

&wre.I-

weWe beLieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion,

0pinion

In our opinion, the f nancial statements give a true and fair view of the f nancial position of BNP PARIBAS |SLAMIC

FUND as of December 31,2012, and of the results of its operations and changes in its net assets for the year thenended in accordance with Luxembourg Legal and regu[atory requirements relating to the preparation of the financialstatements,

2ther matterc

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 concerningsuch information in the context of the financial statements taken as a whole.

PricewaterhouseCoopers, Soci6td coop€rativeRepresented by

Luxembourg ApriL 12, 20L3

Anne Laurent


Financial statements at 31/12/2012

The accompanying notes form an integral part of these financial statements

BNP Paribas Islamic Fund -

Equity Optimiser

Expressed in

Notes USD

Statement of net assets Assets

33 616 297

Securities portfolio at cost price

30 782 643

Unrealised gain / (loss) on securities portfolio

2 662 098

Securities portfolio at market value 4 33 444 741

Cash at banks and time deposits

106 456

Other assets

65 100

Liabilities

126 352

Other liabilities

126 352

Net asset value

33 489 945

Statement of operations and changes in net assets

Income on investments and assets

1 220 918 Management fees 6 550 891 Other fees 7 288 369 Custodian bank fees

27 502

Administration fees

40 196 Taxes 8 18 119

Total expenses

925 077

Net result from investments

295 841

Net realised result on:

Investments securities 4 1 462 428 Financial instruments 4 (18 203)

Net realised result

1 740 066

Movement on net unrealised gain / (loss) on:

Investments securities 4 2 124 516

Change in net assets due to operations

3 864 582

Net subscriptions / (redemptions)

(9 274 118)

Increase / (Decrease) in net assets during the year / period

(5 409 536)

Net assets at the beginning of the financial year / period

38 899 481

Net assets at the end of the financial year / period

33 489 945


Key figures relating to the last 3 years


BNP Paribas Islamic Fund - Equity Optimiser

USD USD USD Number of units

31/12/2010 31/12/2011 31/12/2012 31/12/2012

Net assets 42 649 422 38 899 481 33 489 945

Net asset value per unit Unit "Classic- Capitalisation" 1 260.09 1 296.37 1 445.69 20 359.521

Unit "I-Capitalisation" 131 161.39 136 210.51 153 382.41 14.230

Unit "Privilege" 12 907.10 13 375.69 14 991.58 124.981


Securities portfolio at 31/12/2012


Expressed in USD

Quantity Denomination Quotation currency Market value % of net

assets

Transferable securities admitted to an official stock exchange listing and/or traded on another regulated market

32 101 029 95.85

Shares 32 101 029 95.85

United Kingdom 6 485 176 19.37 21 482 ASTRAZENECA GBP 1 015 935 3.03

32 762 BHP BILLITON GBP 1 134 020 3.39

145 205 BP GBP 1 002 626 2.99

44 680 GLAXOSMITHKLINE GBP 969 543 2.90

17 722 RECKITT BENCKISER GROUP GBP 1 117 391 3.34

21 824 RIO TINTO GBP 1 245 661 3.72 United States of America 6 074 418 18.13

30 751 BRISTOL-MYERS SQUIBB USD 1 002 175 2.99

18 197 CONOCOPHILLIPS USD 1 055 244 3.15

45 542 INTEL USD 939 531 2.81

22 028 LILLY AND CO.(ELI) USD 1 086 421 3.24

23 073 MERCK AND CO. INC. USD 944 609 2.82

41 724 PFIZER USD 1 046 438 3.12 Australia 3 477 293 10.38

30 023 BHP BILLITON AUD 1 156 394 3.45

18 480 RIO TINTO AUD 1 266 454 3.78

29 978 WOODSIDE PETROLEUM AUD 1 054 445 3.15 Switzerland 3 278 777 9.79

54 526 ABB CHF 1 116 906 3.34

16 817 NOVARTIS CHF 1 055 481 3.15

5 504 ROCHE HOLDING AG-GENUSSCHEIN CHF 1 106 390 3.30 Japan 3 095 286 9.24

31 200 CANON JPY 1 205 204 3.60

634 NTT DOCOMO JPY 909 223 2.71

22 000 TAKEDA PHARMACEUTICAL JPY 980 859 2.93 Germany 2 245 821 6.71

12 087 BASF EUR 1 133 811 3.39

10 261 SIEMENS EUR 1 112 010 3.32 France 2 167 167 6.47

11 841 SANOFI EUR 1 114 482 3.33

20 468 TOTAL EUR 1 052 685 3.14


Securities portfolio at 31/12/2012


Expressed in USD

Quantity Denomination Quotation currency Market value % of net

assets

Sweden 2 142 025 6.39 112 182 ERICSSON LM-B SHS SEK 1 122 609 3.35

29 540 HENNES & MAURITZ AB-B SHS SEK 1 019 416 3.04

Hong Kong 1 071 240 3.20 92 000 CHINA MOBILE HKD 1 071 240 3.20

Singapore 1 067 114 3.19 395 000 SINGAPORE TELECOM SGD 1 067 114 3.19

Norway 996 712 2.98 39 906 STATOIL ASA NOK 996 712 2.98

Shares/Units in investments funds

1 343 712 4.01

Shares/Units in investments funds 1 343 712 4.01

France 1 343 712 4.01 5000.0000 EASYETF DJ ISLAMIC MARKET TITANS 100 USD 1 343 712 4.01

Total securities portfolio 33 444 741 99.86

Notes to the financial statements


Notes to the financial statements at 31/12/2012

Note 1 - General

BNP PARIBAS ISLAMIC FUND (“the Fund”) has been established for an undetermined period. The Fund may be dissolved at any time by agreement between the Management Company and the Custodian. The Fund may further be dissolved in any circumstances imposed by Luxembourg law. The liquidation of the Fund may not be requested by its Unitholders or by their heirs and beneficiaries.

The net asset value is expressed in US Dollar (USD).

The Fund is open to Islamic and non-Islamic investors alike.

The Fund is an Umbrella Fund containing only one Sub-Fund, the BNP PARIBAS ISLAMIC FUND Equity Optimiser, open for subscriptions.

The business of the Fund shall at all times be conducted in a manner that complies with written guidelines relating to Islamic Sharia criteria.

The Fund will observe the following guidelines in its investment activities:

-it will not invest in equity securities where the issuer’s core activity or activities relate to any of the following sectors:

a) conventional banking or any other interest-related activity b) alcohol c) tobacco d) gaming e) gambling f) leisure g) biotechnology companies involved in human/animal genetic engineering h) arms manufacturing i) life insurance j) pork production, packaging and processing or any other activity relating to pork k) sectors/companies significantly affected by the above l) hotels and hospitality (unless no alcohol served) m) music n) films o) entertainment.

-it will not invest in any issuer that is unacceptable under Islamic Sharia principles due to excessive debt.

The current criteria exclude issuers whose gross interest-bearing debt to gross assets ratio exceeds the percentage permitted under Islamic Sharia from time to time (which currently is 33 per cent). In addition, it is not permissible for the Fund to pay or receive interest, although the receipt and payment of dividends from equity securities is acceptable. However, dividends received by the Fund from its investments may comprise an amount which is attributable, for Islamic Sharia purposes, to interest income earned or received by the underlying investee companies as well as to the interest-bearing debt. Where this is the case, the amount of any dividend which is so attributed will be calculated in accordance with Islamic Sharia criteria (dividend cleansing procedure). In accordance with Islamic Sharia, the amount of dividend income so attributed will be donated once a year by the Fund to charities with no direct or indirect benefit accruing to the Fund or any of its advisors, at the absolute discretion of the Directors. Since that dividend income received by the Fund will be accumulated and rolled up outside the capital of the Fund, a donation of dividend income to charities will have no effect on the net asset value of the Fund.



Note 2 – General Points

BNP PARIBAS ISLAMIC FUND may be officially subscribed and may solicit public savings in the countries in which it has obtained a commercial distribution licence:

- Luxembourg (February 20, 2006) - Austria (September 2, 2007) - France (July 7, 2009) - Switzerland (July 30, 2009).

In addition, BNP PARIBAS ISLAMIC FUND is a restricted recognized scheme in Singapore (since April 5, 2006). Before making any subscription in a country in which BNP PARIBAS ISLAMIC FUND is registered, it is necessary to verify the share categories and classes that are authorized for commercial distribution.

Note 3 – The Fund’s Units The Fund's capital is represented by the assets of its various Sub-Funds. Subscriptions are invested in the assets of the relevant Sub-Fund.

In each Sub-Fund, the Management Company may issue Units of the following categories, their main difference being the various commissions and fees charged: - “Classic”: offered to all types of investors. - “Privilege”: offered to all types of investors. This category differs from the “Classic” category in that a

specific management fee is charged and a minimum subscription amount is applied. - “I”: reserved to institutional investors and undertakings for collective investment. - “X”: reserved to authorized investors.

The categories “Classic” and “I” may offer two classes of Units: Capitalisation units and Distribution units. At the moment, no Distribution units are issued. The category “Privilege” and “X” offer only Capitalisation units.

Note 4 – Principal accounting methods The financial statements of the Fund are prepared in accordance with the regulatory requirements applicable in the Grand Duchy of Luxembourg.

• Investment Securities

a) The value of non interest-bearing cash in hand, non remunerated deposits, bills and drafts payable at sight and accounts receivable, prepaid expenses, and dividends due but not yet received, shall comprise the nominal value of these assets, unless it is unlikely that this value could be received; in that event, the value will be determined by deducting an amount which the Management Company deems adequate to reflect the actual value of these assets;

b) The value of shares or units in undertakings for collective investment shall be determined on the basis of the last net asset value available on the Valuation Day (in other words, the market price if the UCI is listed or the net asset value announced by the UCI's administrative agent), or its unofficial net asset value if this is more recent (based in this case on a probable net asset value, estimated prudently and in good faith by the Board of Directors, or based on other sources such as information from the manager of the UCI);

c) The valuation of all securities listed on a stock exchange or any other regulated market, which functions regularly, is recognised and accessible to the public, is based on the closing price on the order acceptance date, or the price on the market day following that day for Asian markets, and, if the securities concerned are traded on several markets, on the basis of the most recent price on the major market on which they are traded; if this price is not a true reflection, the valuation shall be based on the probable sale price estimated by the Management Company in a prudent and bona fide manner;

d) Unlisted securities or securities not traded on a stock exchange or another regulated market which functions in a regular manner, is recognised and accessible to the public, shall be valued on the basis of the probable sale price estimated in a prudent and bona fide manner by a qualified professional appointed for this purpose by the Management Company;



e) Securities denominated in a currency other than the currency in which the sub-fund concerned is denominated shall be converted at the exchange rate prevailing on the Valuation Day. If exchange rates are not available, they will be determined prudently and in good faith according to the procedures adopted by the Management Company's Board of Directors;

f) All liquid instruments may be valued at their nominal value;

g) At its sole discretion, the Management Company's Board of Directors may permit the use of another valuation method if it believes that this valuation reflects the fair value of one of the Fund's assets more accurately;

Security transactions are accounted for on the date the securities are purchased or sold. Realized gains or losses on investments sold are computed on a weighted average cost basis.

• Income

Dividends are recorded as income on the ex-dividend date.

The caption "Income on investments and assets" in the "Statement of operations and changes in net assets" only includes dividends net of witholding tax.

• Presentation of the financial statements

The financial statements are presented on the basis of the net assets as at December 31, 2012. In accordance with the prospectus, the net assets were calculated using the latest exchange rates known at the time of calculation.

The stock market prices and exchange rates used to value the securities portfolio at the date of the report are those of December 31, 2012.

Note 5 – Foreign currency translation

The financial statements of the Fund are expressed in US Dollar (USD) and its accounting records are maintained in that currency. Assets and liabilities in other currencies than the USD are recorded in USD based on the exchange rates in effect at the statements of net assets’ date. Income and expenses in other currencies than the USD are recorded in USD based on the exchange rates in effect at the date of the transaction.

The resulting exchange differences are recorded in the statement of operations and changes in net assets.

The exchange rates used for the translation of the Fund’s assets and liabilities not denominated in USD at December 31, 2012 are as follows:

1 AUSTRALIAN DOLLAR (AUD) 1.038192 USD 1 SWISS FRANC (CHF) 1.092476 USD 1 EURO (EUR) 1.318400 USD 1 POUND STERLING (GBP) 1.625447 USD 1 HONG KONG DOLLAR (HKD) 0.129018 USD 1 JAPANESE YEN (JPY) 0.011565 USD 1 NORWEGIAN KRONE (NOK) 0.179687 USD 1 SWEDISH CROWN (SEK) 0.153718 USD 1 SINGAPORE DOLLAR (SGD) 0.818653 USD



Note 6 – Management fees

The management fee is defined for each unit class as mentioned below:

Sub-fund Category Management fee

BNP PARIBAS ISLAMIC FUND - Equity Optimiser

Classic Max. 1.50%

Privilege Max. 1.00%

I Max. 0.60%

X - The Management fee is payable monthly to the Management Company and calculated on the average net assets of the past month of each Unit category. Remuneration of the Managers and potential Sub-Managers is included in the fee paid to the Management Company.

Note 7 – Other fees For the period from January 1, 2012 to June 30, 2012, as remuneration for services rendered to the Fund in its capacity as Custodian Bank, Principal Paying Agent, Sub-Registrar and Sub-Transfer Agent, BNP Paribas Securities Services - Luxembourg Branch received a maximum annual fee of 0.13% calculated on the average of the net asset value of the Fund for the year for which the fee is payable. For the period from January 1, 2012 to June 30, 2012, as remuneration for the administration services rendered by the Management Company to the Fund, the Management Company received a maximum annual fee of 0.19% calculated on the average of the net asset values of the assets of the Sub-fund of the Fund for the period for which the fee is payable. As from July 1, 2012, custodian bank fees and administration fees are included under an all-in fee budget. Other fees are calculated and deducted monthly from the average net assets of a sub-fund, unit category, or unit class and serving to cover general custody assets expenses (remuneration of the custodian bank) and daily administration expenses (NAV calculation, record and book keeping, notices to the unitholders, providing and printing the documents legally required for the unitholders, domiciliation, auditors cost and fees…), except for brokerage fees, commissions for transactions not related to the deposit, director’s fees, Sharia Supervisory Committee’s fees, interest and bank fees, one-off expenses, and the “taxe d’abonnement” in force in Luxembourg, as well as any other specific foreign tax. Maximum other fees payable by the Sub-fund

Category Other fees (maximum)

Classic 0.35% I 0.30% Privilege 0.35% X 0.50%

On July 1, 2012, following the change of fees schedule, the Management Company has decided to charge to the Fund an amount of USD 205 201.72 corresponding to the difference between the operation costs supported by the Management Company on behalf of the Fund and the operation costs effectively paid by the Fund to the Management Company since the launch of the Fund.



Sub-fund Currency Transaction feesBNP PARIBAS ISLAMIC FUND - Equity Optimiser EUR 12 614

Note 8 – Taxes

The Fund is not liable to any Luxembourg income tax or capital gains tax.

The Fund is liable to an annual “taxe d’abonnement” in Luxembourg representing 0.05% of the net asset value. This rate is reduced to 0.01% for:

a) Sub-funds with the exclusive objective of collective investments in money market instruments and deposits with institutions;

b) Sub-funds with the exclusive objective of collective investments with credit institutions; c) Sub-funds, categories, or classes reserved for Institutional Investors, Managers, and UCIs.

The following are exempt from this “taxe d’abonnement”:

a) The value of assets represented by units, or shares in other UCIs, provided that these units or shares have already been subject to the “taxe d’abonnement”;

b) Sub-funds, categories and/or classes: (i) whose securities are reserved to Institutional Investors, Managers, or UCIs and (ii) whose sole object is the collective investment in money market instruments and the placing of deposits

with institutions, and (iii) whose weighted residual portfolio maturity does not exceed 90 days, and (iv) that have obtained the highest possible rating from a recognized rating agency;

c) Sub-funds, categories and/or classes reserved to: (i) institutions for occupational retirement pension or similar investment vehicles, set up at the initiative of

one or more employers for the benefit of their employees, and (ii) companies having one or more employers investing funds to provide pension benefits to their employees;

d) Sub-funds whose main objective is investment in microfinance institutions; e) Sub-funds, categories and/or classes:

(i) whose securities are listed or traded on at least one stock exchange or another regulated market operating regularly that is recognized and open to the public, and

(ii) whose exclusive object is to replicate the performance of one several indices.

When due, the “taxe d’abonnement” is payable quarterly based on the relevant net assets and calculated at the end of the quarter for which it is applicable.

In addition, the Fund may be subject to foreign UCI’s tax, and/or other regulators levy, in the country where the sub-fund is registered for distribution.

Note 9 – Transaction Fees

Transaction fees incurred by the Fund relating to purchase or sale of transferable securities, money market instruments, derivatives or other eligible assets are mainly composed of standard fees, sundry fees on transaction, stamp fees, brokerage fees, custody fees, VAT fees, stock exchange fees and RTO (Reception and Transmission of Orders) fees . Transaction fees are included in the cost of securities purchased and sold.

For the financial year from January 1, 2012 until December 31, 2012 these transaction fees were as follows:


Unaudited appendix

Global Market Risk Exposure

The Management Company of the Fund, after a risk profile assessment, decided to adopt the commitment approach to determine the global market risk exposure.

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