annual report & financial statements - omnis...

Annual Report &Financial StatementsOmnis Portfolio Investments ICVC

For the year ended 30 September 2017

PageOmnis Portfolio Investments ICVC

Directory* 3

Authorised Corporate Director’s (“ACD”) Report* 4

Certification of Financial Statements by Directors of the Authorised Corporate Director* 5

Statement of the ACD’s Responsibilities 6

Statement of the Depositary’s Responsibilities 7

Report of the Depositary to the Shareholders of the Company 8

Independent Auditor’s Report to Shareholders 9

Accounting Policies and Financial Instruments 12

Fund Investment Commentaries and Financial Statements*

Omnis Alternative Strategies Fund 20

Omnis Asia Pacific Equity Fund 35

Omnis Developed Markets (ex-UK, ex-US) Equity Fund 53

Omnis Emerging Markets Equity Fund 70

Omnis European Equity Fund 89

Omnis Global Bond Fund 105

Omnis Income and Growth Fund 143

Omnis UK Bond Fund 162

Omnis UK Equity Fund 180

Omnis US Equity Fund 197

General Information 215

* Collectively, these comprise the Authorised Corporate Director’s Report.

* Please note that telephone calls may be recorded for monitoring and training purposes, and to confirm investors’instructions.

The Company and Head OfficeOmnis Portfolio Investments ICVCWashington HouseLydiard FieldsSwindon SN5 8UBIncorporated in England and Walesunder registration number IC000982

Website address: www.omnisinvestments.com(Authorised and regulated by the FCA)

Directors and Secretary of the ACDStuart Buckingham (resigned 24 March 2017)Peter DavisPhilip Martin (resigned 31 December 2017)Douglas NaismithDominic SheridanJudith Worthy (appointed 25 August 2017)

Andy Whipp (Secretary)

RegistrarDST Financial Services International LimitedDST HouseSt Nicholas LaneBasildonEssex SS15 5FS

AuditorDeloitte LLPStatutory AuditorSaltire Court20 Castle TerraceEdinburgh EH1 2DB

Customer Service CentreOmnis Portfolio Investments ICVCPO BOX 10191Chelmsford CM99 2APTelephone: 0345 140 0070*

DepositaryState Street Trustees Limited20 Churchill PlaceLondon E14 5HJ(Authorised and regulated by the FCA)

Authorised Corporate Director (“ACD”)Omnis Investments LimitedWashington HouseLydiard FieldsSwindon SN5 8UB(Authorised and regulated by the FCA)

Investment ManagersBaillie Gifford & CoCalton Square1 Greenside RowEdinburgh EH1 3AN(Authorised and regulated by the FCA)

BNY Mellon Investment Management EMEALimited160 Queen Victoria StreetLondon EC4V 4LA(Authorised and regulated by the FCA)

Jupiter Asset Management LimitedThe Zig Zag Building 70 Victoria StreetLondon SW1E 6SQ(Authorised and regulated by the FCA)

Octopus Investments Limited33 HolbornLondon EC1N 2HT(Authorised and regulated by the FCA)

Schroder Investment Management Limited31 Gresham StreetLondon EC2V 7QA(Authorised and regulated by the FCA)

T. Rowe Price International Limited60 Queen Victoria StreetLondon EC4N 4TZ(Authorised and regulated by the FCA)

Thomas White International440 South LaSalle StreetSuite 3900Chicago, Illinois 60605(Authorised and regulated by the SEC)

Threadneedle Asset Management Limited78 Cannon StreetLondon EC4N 6AG(Authorised and regulated by the FCA)

Woodford Investment Management Limited9400 Garsington RoadOxford Business ParkOxford OX4 2HN(Authorised and regulated by the FCA)

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Omnis Portfolio Investments ICVC

Directory

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Authorised Corporate Director’s (“ACD”) Report

We are pleased to present the Annual Report & Audited Financial Statements for Omnis PortfolioInvestments ICVC for the year ended 30 September 2017.

Authorised Status

Omnis Portfolio Investments ICVC (“the Company”) is an investment company with variable capitalincorporated in England and Wales under registered number IC000982 and authorised by theFinancial Conduct Authority (“FCA”) with effect from 3 September 2013. The Company has anunlimited duration.

Shareholders are not liable for the debts of the Company.

Head office: Washington House, Lydiard Fields, Swindon, SN5 8UB

The Head Office is the address of the place in the UK for service on the Company of notices orother documents required or authorised to be served on it.

Structure of the Company

The Company is structured as an umbrella company, in that different Funds may be establishedfrom time to time by the ACD with the approval of the FCA. On the introduction of any new Fundor Class, a revised prospectus will be prepared setting out the relevant details of each Fund orClass.

The Company is a UCITS scheme.

The assets of each Fund will be treated as separate from those of every other Fund and will beinvested in accordance with the investment objective and investment policy applicable to that Fund.Investment of the assets of each of the Funds must comply with the FCA’s Collective InvestmentSchemes Sourcebook (“COLL”) and the investment objective and policy of the relevant Fund.

Cross Holdings

There were no shares in any sub-fund held by other sub-funds of the ICVC.

Base Currency

The base currency of the Company is Pounds Sterling. Each Fund and Class is designated in PoundsSterling.

Share Capital

The minimum share capital of the Company is £1 and the maximum is £100,000,000,000. Sharesin the Company have no par value. The share capital of the Company at all times equals the sumof the Net Asset Values of each of the Funds.

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Certification of Financial Statements by Directors of the AuthorisedCorporate DirectorFor the year ended 30 September 2017

Director’s Certification

This report has been prepared in accordance with the requirements of COLL, as issued and amendedby the FCA. We hereby certify the report on behalf of the Directors of Omnis Investments Limited.

The Directors are of the opinion that it is appropriate to continue to adopt the going concern basisin the preparation of the financial statements as the assets of the Funds consist predominately ofsecurities that are readily realisable and, accordingly, the Funds have adequate resources to continuein operational existence for the foreseeable future.

Dominic Sheridan

Judith Worthy

Director, For and on Behalf of Omnis Investment Limited

23 January 2018

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Statement of the ACD’s ResponsibilitiesFor the year ended 30 September 2017

The Authorised Corporate Director (“ACD”) of Omnis Portfolio Investments ICVC (“Company”) isresponsible for preparing the Annual Report and the Financial Statements in accordance with theOpen-Ended Investment Companies Regulations 2001 (“the OEIC Regulations”) as amended, theFCA’s Collective Investment Schemes Sourcebook (“COLL”) and the Company’s Instrument ofIncorporation.

The OEIC Regulations and COLL require the ACD to prepare Financial Statements for each annualaccounting period which:

• are in accordance with United Kingdom Generally Accepted Accounting Practice (“UnitedKingdom Accounting Standards and applicable law”) including Financial Reporting Standards102 (“FRS 102”) applicable in the UK and Republic of Ireland and the Statement ofRecommended Practice: “Financial Statements of Authorised Funds” issued by the InvestmentAssociation (formerly Investment Management Association) (“IMA SORP”) in May 2014; and

• give a true and fair view of the financial position of the sub funds as at the end of that periodand the net revenue and the net capital gains or losses on the property of the sub funds forthat period.

In preparing the Financial Statements, the ACD is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards and the IMA SORP have been followed,subject to any material departures disclosed and explained in the Financial Statements; and

• prepare the Financial Statements on the going concern basis unless it is inappropriate topresume that the Company will continue in operation.

The ACD is responsible for keeping proper accounting records that disclose with reasonable accuracyat any time the financial position of the Company and enable them to ensure that the FinancialStatements comply with the applicable IMA SORP and United Kingdom Accounting Standards andapplicable law. The ACD is also responsible for the system of internal controls, for safeguarding theassets of the Company and for taking reasonable steps for the prevention and detection of fraudand other irregularities.

In accordance with COLL 4.5.8BR, the Annual Report and the audited Financial Statements wereapproved by the board of directors of the ACD of the Company and authorised for issue on23 January 2018.

Omnis Investments Limited

23 January 2018

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Statement of Depositary’s ResponsibilitiesFor the year ended 30 September 2017

The Depositary must ensure that the Company is managed in accordance with the Financial ConductAuthority’s Collective Investment Schemes Sourcebook, the Open-Ended Investment CompaniesRegulations 2001 (SI 2001/1228), as amended, the Financial Services and Markets Act 2000, asamended, (together “the Regulations”), the Company’s Instrument of Incorporation and Prospectus(together “the Scheme documents”) as detailed below.

The Depositary must in the context of its role act honestly, fairly, professionally, independently andin the interests of the Company and its investors.

The Depositary is responsible for the safekeeping of all custodial assets and maintaining a recordof all other assets of the Company in accordance with the Regulations.

The Depositary must ensure that:

• the Company’s cash flows are properly monitored1 and that cash of the Company is bookedinto the cash accounts in accordance with the Regulations;

• the sale, issue, repurchase, redemption and cancellation of shares are carried out inaccordance with the Regulations;

• the value of shares of the Company are calculated in accordance with the Regulations;

• any consideration relating to transactions in the Company’s assets is remitted to the Companywithin the usual time limits;

• the Company’s income is applied in accordance with the Regulations; and

• the instructions of the Authorised Fund Manager (“the AFM”) which is the UCITS ManagementCompany, are carried out (unless they conflict with the Regulations).

1 This requirement on the Depositary applied from 18 March 2016.

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Report of the Depositary to the Shareholders of the CompanyFor the year ended 30 September 2017

Having carried out such procedures as we consider necessary to discharge our responsibilities asDepositary of the Company, it is our opinion, based on the information available to us and theexplanations provided, that in all material respects the Company, acting through the ACD:

(i) has carried out the issue, sale, redemption and cancellation, and calculation of the price ofthe Company’s shares and the application of the Company’s revenue in accordance with COLLand, where applicable, the OEIC Regulations and the Instrument of Incorporation andProspectus of the Company; and

(ii) has observed the investment and borrowing powers and restrictions applicable to theCompany.

State Street Trustees LimitedDepositary London

23 January 2018

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Independent Auditor’s Report to ShareholdersFor the year ended 30 September 2017

Report on the audit of the financial statements

Opinion

In our opinion the financial statements:

• give a true and fair view of the financial position of the sub-funds as at 30 September 2017and of the net revenue and and the net capital gains/(losses) on the property of the sub-fundsfor the year ended 30 September 2017; and

• have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting Practice including Financial Reporting Standard 102 “The Financial ReportingStandard applicable in the UK and Republic of Ireland”, the Statement of RecommendedPractice “Financial Statements of UK Authorised Funds”, the rules in the Collective InvestmentSchemes Sourcebook and the Instrument of Incorporation.

We have audited the financial statements of the Omnis Portfolio Investments ICVC (the ‘Company’)which comprise the Accounting Policies and Financial Instrument notes and for each sub-fund:

• the Statement of Total Return;

• the Statement of Change in Net Assets Attributable to Shareholders;

• the Balance Sheet;

• the related notes; and

• the distribution tables.

The financial reporting framework that has been applied in their preparation is applicable law andUnited Kingdom Accounting Standards, including Financial Reporting Standard 102 “The FinancialReporting Standard applicable in the UK and Republic of Ireland” (United Kingdom GenerallyAccepted Accounting Practice), the Statement of Recommended Practice: “Financial Statements ofUK Authorised Funds” issued by the Investment Association in May 2014, the Collective InvestmentSchemes Sourcebook and the Instrument of Incorporation.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK))and applicable law. Our responsibilities under those standards are further described in the auditor’sresponsibilities for the audit of the financial statements section of our report.

We are independent of the Company in accordance with the ethical requirements that are relevantto our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and wehave fulfilled our other ethical responsibilities in accordance with these requirements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Conclusions relating to going concern

We are required by ISAs (UK) to report in respect of the following matters where:

• the authorised corporate director’s (ACD’s) use of the going concern basis of accounting inpreparation of the financial statements is not appropriate; or

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Conclusions relating to going concern (continued)

• the ACD has not disclosed in the financial statements any identified material uncertaintiesthat may cast significant doubt about the Company’s ability to continue to adopt the goingconcern basis of accounting for a period of at least twelve months from the date when thefinancial statements are authorised for issue.

We have nothing to report in respect of these matters.

Other information

The ACD is responsible for the other information. The other information comprises the informationincluded in the Annual Report, other than the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and, except to theextent otherwise explicitly stated in our report, we do not express any form of assurance conclusionthereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated. If we identify such material inconsistencies or apparent materialmisstatements, we are required to determine whether there is a material misstatement in thefinancial statements or a material misstatement of the other information. If, based on the work wehave performed, we conclude that there is a material misstatement of this other information, weare required to report that fact.

We have nothing to report in respect of these matters.

Responsibilities of Depositary and ACD

As explained more fully in the Statement of Depositary’s Responsibilities and the Statement of ACD’sResponsibilities, the Depositary is responsible for the safeguarding the property of the Companyand the ACD is responsible for the preparation of the financial statements and for being satisfiedthat they give a true and fair view, and for such internal control as the ACD determines is necessaryto enable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.

In preparing the financial statements, the ACD is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and usingthe going concern basis of accounting unless the ACD either intends to liquidate the Company orto cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with ISAs (UK) will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located onthe Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This descriptionforms part of our auditor’s report.

Independent Auditor’s Report to Shareholders (continued)For the year ended 30 September 2017

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Independent Auditor’s Report to Shareholders (continued)For the year ended 30 September 2017

Use of our report

This report is made solely to the Company’s Shareholders, as a body, in accordance withParagraph 4.5.12R of the Collective Investment Schemes Sourcebook of the Financial ConductAuthority. Our audit work has been undertaken so that we might state to the Company’sShareholders those matters we are required to state to them in an auditor’s report and for no otherpurpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyoneother than the Company and the Company’s Shareholders as a body, for our audit work, for thisreport, or for the opinions we have formed.

Report on other legal and regulatory requirements

Opinion on other matters prescribed by the Collective Investment SchemesSourcebook

In our opinion:

• proper accounting records for the Company and the sub funds have been kept and thefinancial statements are in agreement with those records;

• we have received all the information and explanations which, to the best of our knowledgeand belief, were necessary for the purposes of our audit; and

• the information disclosed in the Annual Report for the year ended 30 September 2017 for thepurpose of complying with Paragraph 4.5.9R of the Collective Investment SchemesSourcebook is consistent with the financial statements.

Deloitte LLPStatutory AuditorEdinburgh, United Kingdom

23 January 2018

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Accounting Policies and Financial InstrumentsFor the year ended 30 September 2017

1. Accounting Basis and Policies

(a) Basis of accountingThe Financial Statements have been prepared under the historical cost basis, as modified bythe revaluation of investments and in accordance with Financial Reporting Standard 102 (“FRS102”) and in accordance with the Statement of Recommended Practice (“SORP”) for FinancialStatements of Authorised Funds issued by the Investment Management Association (nowknown as the Investment Association) in May 2014.

As described in the Certification of Financial Statements by Directors of the ACD on page 5,the ACD continues to adopt the going concern basis in the preparation of the FinancialStatements of the Funds.

(b) Recognition of revenueDividends on quoted equities and preference shares are recognised when the securities arequoted ex-dividend and are recognised net of attributable tax credits.

Revenue from unquoted securities is recognised when the dividend is declared.

Rebates of annual management charges (“AMC”) on underlying investments are accountedfor on an accruals basis and recognised as revenue or capital in line with the treatment ofthe charge on the underlying Fund.

Revenue from debt securities is accounted for on an effective yield basis. Accrued interest onpurchase and sale contracts is recognised as revenue and transferred to revenue or capitalas appropriate.

Distributions from Collective Investment Schemes are recognised when the schemes arequoted ex-distribution. Equalisation returned with the distribution is deducted from the costof the investment and does not form part of the distributable revenue.

Interest on bank and other cash deposits is recognised on an accruals basis.

All revenue includes withholding taxes but excludes irrecoverable tax credits.

Any reported revenue from an offshore fund, in excess of any distribution received in thereporting period, is recognised as revenue no later than the date on which the reporting fundmakes this information available.

Returns on derivative transactions have been treated as either revenue or capital dependingon the motives and circumstances on acquisition.

(c) Treatment of stock and special dividendsThe ordinary element of stock dividends received in lieu of cash dividends is credited to capitalin the first instance followed by a transfer to revenue of the cash equivalent being offeredand this forms part of the distributable revenue.

Special dividends are reviewed on a case by case basis in determining whether the dividendis to be treated as revenue or capital. Amounts recognised as revenue will form part of thedistributable revenue. The tax treatment follows the treatment of the principal amount.

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Accounting Policies and Financial Instruments (continued)For the year ended 30 September 2017

1. Accounting Basis and Policies (continued)

(d) Treatment of expensesExpenses of the Funds are charged against revenue except for costs associated with thepurchase and sale of investments which are allocated to the capital of the Funds.

Rebates on the fees payable to the ACD are accounted for on an accruals basis and recognisedas revenue or capital in line with the treatment of the ACD fee on each fund. Rebates on thefees payable to the ACD are netted off against the expense to which they relate.

(e) Allocation of revenue and expenses to multiple share classes and fundsAny revenue or expenses not directly attributable to a particular share class or fund willnormally be allocated pro-rata to the net assets of the relevant share classes and funds.

(f) TaxationTax is provided for using tax rates and laws which have been enacted or substantively enactedat the balance sheet date.

Corporation tax is provided for on the income liable to corporation tax less deductibleexpenses.

Corporation tax is provided for on realised gains on non-reporting offshore funds lessdeductible expenses. Deferred tax is provided for on unrealised gains on non-reportingoffshore funds less deductible expenses.

Deferred tax is provided using the liability method on all timing differences arising on thetreatment of certain items for taxation and accounting purposes, calculated at the rate atwhich it is anticipated the timing differences will reverse. Deferred tax assets are recognisedonly when, on the basis of available evidence, it is more likely than not that there will betaxable profits in the future against which the deferred tax asset can be offset.

Overseas capital gains tax is recognised when paid and no provision is made for this.

(g) Distribution policyThe net revenue after taxation, as disclosed in the Financial Statements, after adjustmentfor items of a capital nature, is distributable to shareholders as dividend or interestdistributions. Any revenue deficit is deducted from capital at year end.

In addition, portfolio transaction charges will be charged wholly to the capital of all Funds.Accordingly, the imposition of such charges may constrain the capital growth of every Fund.

The ACD has elected to pay all revenue less expenses charged to revenue and taxation as afinal distribution at the end of the annual accounting period.

Interim distributions may be made at the ACD’s discretion and in line with the Prospectus.

(h) Basis of valuation of investmentsListed investments are valued at close of business bid prices excluding any accrued interestin the case of fixed interest securities, on the last business day of the accounting period.

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(h) Basis of valuation of investments (continued)Market value is defined by the SORP as fair value which is the bid value of each security.

Collective Investment Schemes are valued at quoted bid prices for dual priced funds and atquoted prices for single priced funds, on the last business day of the accounting period.

The fair value of derivative instruments is mark to market value. The forward currencycontracts are valued at the prevailing forward exchange rates.

Unquoted investments are valued at fair value, which represents the ACDs’ view of the amountfor which an asset could be exchanged between knowledgeable and willing parties in an arm’slength transaction. This does not assume that the underlying business is saleable at the reportingdate or that its current shareholders have an intention to sell their holding in their near future.

The unquoted investments are valued on a monthly basis, and where a material event occursthat significantly impacts the existing valuation, at the ACD’s best estimate of fair value. TheACDs valuation includes information from an independent valuation firm, taking into accountrecognised valuation techniques where appropriate, price of recent transactions, achievementor not of key milestones, discounted cash flows, valuations from reliable sources, financialperformance, and other relevant factors. These procedures comply with the revisedInternational Private Equity and Venture Capital Valuation Guidelines (IPEVCV) for thevaluation of unquoted investments.

(i) Exchange ratesTransactions in foreign currencies are recorded in Sterling at the rates ruling at the dates ofthe transactions. Assets and liabilities expressed in foreign currencies at the end of theaccounting period are translated into Sterling at the closing mid market exchange rates rulingon that date.

(j) Dilution adjustmentThe ACD may require a dilution adjustment on the sale and redemption of shares if, in itsopinion, the existing shareholders (for sales) or remaining shareholders (for redemptions)might otherwise be adversely affected. In particular, the dilution adjustment may be chargedin the following circumstances: where the scheme property is in continual decline; on a Fundexperiencing large levels of net sales relative to its size; on ‘large deals’; in any case wherethe ACD is of the opinion that the interests of remaining shareholders require the impositionof a dilution adjustment.

(k) EqualisationEqualisation applies only to shares purchased during the distribution period (Group 2 shares).It represents the accrued revenue included in the purchase price of the shares.

After averaging it is returned with the distribution as a capital repayment. It is not liable toincome tax but must be deducted from the cost of the shares for Capital Gains Tax purposes.

(l) DerivativesSome of the Funds may enter into permitted transactions such as derivative contracts orforward foreign currency transactions. Where these transactions are used to protect orenhance revenue, the revenue and expenses are included within net revenue in the Statementof Total Return.


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(l) Derivatives (continued)Where the transactions are used to protect or enhance capital, the gains/losses are treatedas capital and included within gains/losses on investments in the Statement of Total Return.Any open positions in these types of transactions at the period end are included in the BalanceSheet at their mark to market value.

2. Derivatives and other financial instruments

In pursuing the investment objectives a number of financial instruments are held which maycomprise securities and other investments, cash balances and debtors and creditors that arisedirectly from operations. Derivatives, such as futures or forward currency contracts, may beutilised for hedging purposes.

The ACD maintains a detailed Risk Management Policy for identifying, measuring anddocumenting mitigation activities for those risks to which the Funds may be exposed.

Certain Funds are measured using the Value at Risk Methodology and the remainder usingthe Commitment Methodology.

Risk Utilisation of the VaR LimitFund Measurement Lowest Highest Average

Omnis Alternative Strategies Fund Commitment N/A N/A N/AOmnis Asia Pacific Equity Fund Commitment N/A N/A N/AOmnis Developed Markets (ex-UK, ex-US) Equity Fund Commitment N/A N/A N/AOmnis Emerging Markets Equity Fund Commitment N/A N/A N/AOmnis European Equity Fund Commitment N/A N/A N/AOmnis Global Bond Fund Value at Risk 6.03% 7.92% 7.14%Omnis Income and Growth Fund Commitment N/A N/A N/AOmnis UK Bond Fund Value at Risk 4.41% 6.84% 5.73%Omnis UK Equity Fund Commitment N/A N/A N/AOmnis US Equity Fund Commitment N/A N/A N/A

None of the Funds using the commitment method employ significant leverage.

The Value at Risk Methodology is Absolute VaR which is the maximum expected loss for thePortfolio over a defined holding period, one month, at a confidence level of 99%. VaR iscalculated using a factor exposure model, based on two years’ historic price data.

(a) Foreign currency riskThe revenue and capital value of the assets of the Funds can be significantly affected bycurrency translation movements.

The ACD has identified three principal areas where foreign currency risk could impact the Funds:

• Movements in rates affect the value of investments

• Movements in rates affect the short term timing differences

• Movements in rates affect the revenue received

There is the risk that the value of such assets and/or the value of any distributions from suchassets may decrease if the underlying currency in which assets are traded falls relative to thebase currency in which Shares of the relevant Fund are valued and priced.


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2. Derivatives and other financial instruments (continued)

(a) Foreign currency risk (continued)The Funds of the Company are not required to hedge their foreign currency risk, althoughthey may do so through foreign currency exchange contracts, forward contracts, currencyoptions and other methods. To the extent that the Funds of the Company do not hedge theirforeign currency risk or such hedging is incomplete or unsuccessful, the value of the Fundsof the Company’s assets and revenue could be adversely affected by currency exchange ratemovements. There may also be circumstances in which a hedging transaction may reducecurrency gains that would otherwise arise in the valuation of the Funds of the Company incircumstances where no such hedging transactions are undertaken.

(b) Interest rate risk profile of financial assets and liabilitiesThe interest rate risk is the risk that the value of the Funds of the Company’s investmentswill fluctuate due to changes in the interest rate. Cashflows from floating rate securities, bankbalances, or bank overdrafts will be affected by the changes in interest rates. As the Fundsof the Company’s objective is to seek capital growth, these cashflows are considered to be ofsecondary importance and are not actively managed. The details of each Funds’ interest raterisk profile is shown in notes 13, 14 or 15 of the individual fund notes.

The Omnis Global Bond Fund and the Omnis UK Bond Fund invest primarily in interest-bearingsecurities, although other Funds may also invest in these types of securities to a lesser degree.

(c) Credit riskThe Omnis Global Bond Fund and the Omnis UK Bond Fund invest primarily in interest-bearingsecurities, although other Funds may also invest in these types of securities to a lesser degree.If any individual company fails to perform well, then the credit rating of that company mayfall and the bonds would fall in price as a result of the perceived increased credit risk. Adheringto investment guidelines and avoiding excessive exposure to one particular issuer can limitcredit risk. The ACD closely monitors the ratings of the bonds within the portfolio.

(d) Liquidity riskThe primary source of liquidity risk is the liability to shareholders for any cancellation of shares.The assets of the Funds comprise, in the main, of ready realisable securities, but, subject tothe Regulations, the Funds of the Company may invest up to and including 10% of theScheme Property of the Funds of the Company in transferable securities which are notapproved securities (essentially transferable securities which are admitted to official listing inan EEA state or traded on or under the rules of an eligible securities market). Such securitiesand instruments are generally not publicly traded, may be unregistered for securities lawpurposes and may only be able to be resold in privately negotiated transactions with a limitednumber of purchasers. The difficulties and delays associated with such transactions couldresult in the Funds of the Company’s inability to realise a favourable price upon disposal ofsuch securities, and at times might make disposition of such securities and instrumentsimpossible. To the extent that Funds of the Company invest in such securities and instrumentsthe terms of which are privately negotiated, the terms of these may contain restrictionsregarding resale and transfer.


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(d) Liquidity risk (continued)The Omnis Income & Growth Fund actively utilises the opportunity for investment inunapproved securities. The unquoted investments are in small and medium sized unlistedcompanies which, by their nature, entail a higher level of risk and lower liquidity thaninvestments in large quoted companies. The ACD aims to limit the risk attaching to theinvestment portfolio by ensuring that a robust, structured selection and monitoring processis applied. The ACD reviews the investment portfolio on a regular basis.

In addition, certain listed securities and instruments, particularly securities and instrumentsof smaller capitalised or less seasoned issuers, may from time to time lack an active secondarymarket and may be subject to more abrupt or erratic price movements than securities oflarger, more established companies or stock market averages in general. In the absence ofan active secondary market the Funds of the Company’s ability to purchase or sell suchsecurities at a fair price may be delayed.

(e) Market price riskThe Funds of the Company invest primarily in equities, bonds, units in Collective InvestmentSchemes and derivatives. The values of these investments are not fixed and may go down aswell as up. This may be the result of a specific factor affecting the value of an individual equity orbe caused by general market factors (such as government policy or the health of the underlyingeconomy) which can affect the entire portfolio. The Investment Manager seeks to minimise theserisks by holding a diversified portfolio in line with the objectives of each Fund. In addition, themanagement of the Funds of the Company complies with the FCA’s COLL sourcebook, whichincludes rules prohibiting a holding greater than 20% of assets in any one Fund.

If the market prices had increased or decreased by 10% as at the balance sheet date, thenet asset values of the Funds would have changed by the following amounts. Thesecalculations are applied to non-derivative securities only.

Increase Decrease Fund Name £’000 £’000

Omnis Alternative Strategies Fund 21,767 21,767 Omnis Asia Pacific Equity Fund 14,686 14,686 Omnis Developed Markets (ex-UK, ex-US) Equity Fund 38,884 38,884 Omnis Emerging Markets Equity Fund 33,458 33,458 Omnis European Equity Fund 7,958 7,958 Omnis Global Bond Fund 30,260 30,260 Omnis Income and Growth Fund 28,370 28,370 Omnis UK Bond Fund 88,735 88,735 Omnis UK Equity Fund 92,004 92,004 Omnis US Equity Fund 52,409 52,409

(f) Counterparty riskTransactions in securities entered into by the Funds of the Company give rise to exposure tothe risk that the counterparties may not be able to fulfil their responsibility by completingtheir side of the transaction. The Investment Managers minimise this risk by conducting tradesthrough only the most reputable counterparties.

The ACD monitors the Funds’ exposure to individual counterparties and applies limits which maynot be exceeded. The table below shows the counterparty risk as at the balance sheet date:


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(f) Counterparty risk (continued)Omnis Global Bond Fund2017 CollateralCounterparty Forwards Futures Options Swaps Pledge £’000 £’000 £’000 £'’00 £’000

Barclays (83) – 96 (4) –BNP Paribas 241 – 82 – 300Citibank (363) – – (2) –Citigroup Global Markets 33 – 170 (3) 290Goldman Sachs (41) – – – –HSBC (110) – – – –JP Morgan Chase 309 – 169 1 297Morgan Stanley – – 276 1 240Nomura 49 – – – –Royal Bank of Canada (UK) (2) – – – –Standard Chartered 3 – – – –State Street Bank and Trust 28 – – – –UBS (401) (45) 20 – 1,626

Omnis UK Bond Fund2017 CollateralCounterparty Forwards Futures Options Swaps Pledge £’000 £’000 £’000 £’00 £’000

Goldman Sachs 190 – – – –HSBC – – – – –

Omnis Global Bond Fund2016 CollateralCounterparty Forwards Futures Options Swaps Pledge £’000 £’000 £’000 £'’00 £’000

Australia and New Zealand Banking (2) – – – –Barclays (49) – 4 – –BNP Paribas 76 – – – –Citibank 209 – 4 – –Credit Suisse 41 – 20 – –Deutsche Bank (6) – – – –Goldman Sachs (63) – – – –HSBC 234 – – – –JP Morgan Chase 175 – 18 (239) –Royal Bank of Canada (UK) 45 – – – –Royal Bank of Scotland 357 – – – –SEB 1 – – – –Standard Chartered (43) – 22 – –State Street Bank and Trust (199) – – – –UBS 25 (31) – (2) 659Westpac (4) – – – –

Omnis UK Bond Fund2016 CollateralCounterparty Forwards Futures Options Swaps Pledge £’000 £’000 £’000 £’00 £’000

Goldman Sachs (80) – – – –


19



(g) Default riskThe Omnis Global Bond Fund and the Omnis UK Bond Fund invest primarily in bonds that areat risk of default at any given time. The risk of default is mitigated by the regular monitoringof bonds internally and externally through ratings agencies.

(h) Derivatives and forward transactionsAll of the Funds may use derivatives for the purposes of Efficient Portfolio Management and,where disclosed below, certain of the Funds’ of the Company utilise derivative instrumentsfor investment purposes.

Global Bond FundInterest Rate Swaption, Currency Option, Interest Rate Swap, Credit Default Swap, Futuresand Forward Foreign Exchange.

UK Bond FundForward Foreign Exchange – for the purpose of hedging against the potential negative effectof currency movements on the portfolio.

The Global Bond Fund entered into exchange traded derivatives during the year. The marketvalue of the exchange traded derivatives (deemed to be futures contracts) and globalexposure that exists through the open futures contracts as at 30 September 2017 were:

Market value Exposureas at as at

30 September 30 SeptemberContract description 2017 2017

£’000 £’000Australian Bond 10 Year Futures December 2017 (101) 4,614 Australian Bond 3 Year Futures December 2017 (57) 12,750 Canadian Bond 10 Year Futures December 2017 (4) 1,385 Euro-Schatz Futures December 2017 (2) 4,653 German Euro BOBL Futures December 2017 (49) 18,773 German Euro BTP Futures December 2017 30 (10,148)German Euro BUND Futures December 2017 41 (7,542)German Euro OAT Futures December 2017 9 (2,742)Japan Bond 10 Years December 2017 (53) 9,991 Long Gilt Futures December 2017 (50) 1,610 US Treasury Long Bond December 2017 (118) 8,675 US Treasury Note 10 Year Futures December 2017 84 (10,692)US Treasury Note 2 Year Futures December 2017 55 (23,862)US Treasury Note 5 Year Futures December 2017 (47) 8,175 US Treasury Ultra Bond Futures December 2017 217 (24,419)The counterparty for these transactions was UBS Limited. Margin is paid or received on futurescontracts to cover an exposure by the counterparty to the Fund or by the Fund to the counterparty.

(i) Fair value of financial assets and financial liabilitiesThere is no material difference between the value of the financial assets and liabilities, asshown in the balance sheet, and their fair value.

(j) LeverageLeverage is defined as any method by which a Fund increases its exposure to investmentsthough borrowing or the use of derivatives. The leverage employed for each Fund is disclosedin the Notes to the Financial Statements and is calculated as the sum of the net asset valueand the incremental exposure generated through the use of derivatives (calculated inaccordance with the commitment approach (CESR/10-788)) divided by the net asset value.


20

Omnis Alternative Strategies Fund

Investment Objective

To achieve a positive return above the rate for cash over the longer term. Cash is measured as GBPLIBOR over a three year rolling period.

Investment Policy

The Fund will be invested to exploit anomalies in markets including in the equity, fixed interest andproperty markets. The Fund intends to invest primarily in a range of collective investment schemes.The Fund will also invest in exchange traded products, money market instruments, cash and nearcash, deposits, transferable securities, derivative instruments and warrants. Subject to the require-ments of the Regulations, the Fund will normally remain fully invested. There will be no restrictionson the underlying content of the investments held, in terms of investment type, geographical oreconomic sector, other than those imposed by the Regulations, meaning that the fund managerhas the absolute discretion to weight the portfolio towards any investment type or sector, includingcash, at any time.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives maybe used for the purposes of hedging and efficient portfolio management.

Investment Review

Over the period the Omnis Alternative Strategies Fund returned 0.68% and the benchmark(GBP LIBOR 3-month) returned 0.34% [source: Financial Express, bid to bid, net income reinvested].

At the start of the period, we made a small investment in Vanguard S&P 500 ETF as we felt it offeredgood value while the US market was relatively weak. We also introduced Fulcrum Diversified CoreAbsolute Return to the portfolio. This global fund seeks to make gains regardless of market conditionsby investing in equities, bonds and commodities. When global bond markets strengthened inNovember, we took the opportunity to reduce holdings in iShares GBP Index-Linked Gilts ETF. Wealso reduced Royal London Absolute Return Government Bond, which had not performed in line withour expectations.

We maintained the portfolio’s diversified balance of holdings in early 2017, with a preference forinvestments with more cautious investment strategies. This included topping up Henderson UKAbsolute Return and Standard Life Global Absolute Return Strategies. In April, we made a newinvestment in Muzinich Global Tactical Credit, which offers a defensive approach in fixed interestmarkets. We switched some cash into bonds with short maturity dates by adding to L&G Short DatedCorporate Bond and introducing iShares GBP Ultrashort Bond ETF.

We took some profits from our holding in iShares UK Property ETF ahead of May’s UK general electionto reduce the portfolio’s exposure to a sector we thought might be adversely affected by the result.In July, we maintained the portfolio’s diversified balance of holdings by continuing to build up MuzinichGlobal Tactical Credit, Fulcrum Diversified Alpha and L&G Short Dated Corporate Bond. We alsoreduced our holding in BlackRock European Absolute Return following a change in manager, withthe intention of building this up if, as we suspect, the change proves to be a positive one.

In August, we continued to increase our holdings in Henderson UK Absolute Return and OaktreeGlobal Convertibles. We adjusted holdings in shorter-dated credit by adding to L&G Short CorporateBond and Muzinich Global Tactical Credit. We took the opportunity to top up a number of holdingsin a number of funds on market dips in September. We also used inflows to the portfolio to add toour holdings in Jupiter Absolute Return, Invesco Perpetual GTR, Fulcrum Diversified Alpha, H20MultiReturns and Hermes Absolute Credit.

Investment Manager’s ReportFor the year ended 30 September 2017

21


Market Overview

Market reaction to Donald Trump’s US presidential election triumph in November was a surprise.Central banks continued to signal to markets that the conditions were right to start raising interestrates. The US Federal Reserve’s interest rate rises of 0.25% in December and a further 0.25% inMarch were generally well received by investors. Market uncertainty grew when Trump’s healthcarereform bill failed to obtain Congressional approval. Nevertheless, market sentiment was generallymore positive about the chances of his tax reform receiving stronger backing. The escalating warof words between the US and North Korea over its missile testing failed to unsettle markets.

March’s announcement by the UK government to begin the process of the UK leaving the EuropeanUnion and confusion over the Brexit plan unsettled investors. Also unsettling was the result of June’ssnap general election that saw a hung parliament. Markets reacted favourably to pro-Europeancentrist Emmanuel Macron’s victory in France’s presidential election, but he faces tough challengesahead. German chancellor Angel Merkel’s re-election win in September could pave the way for achange in the government’s view on fiscal policy. The case for central banks to raise interest ratesappeared to strengthen at the end of the period, as did the likelihood of an end to austeritymeasures by governments in the developed world.

Outlook

There are plenty of things for investors to be positive about, yet we still maintain an element ofcaution. Continuing improvement in global economic growth presents a strong case to add toequities. However, after a prolonged bull run of rising prices, we feel markets are looking a littleexpensive. Short-term market corrections created by geo-political events, such as growing concernover North Korea’s missile testing, may provide more attractive buying opportunities. For now, weretain a neutral view on equities generally, although we continue to favour overseas markets aheadof the UK. Returns across our portfolios benefited from a weakened sterling in September, whichproved to be one of the key performance drivers for the month. Otherwise, despite growing politicaluncertainty, markets have not moved a great deal and volatility remains low.

Investment ManagerOctopus Investments Limited13 October 2017

Investment Manager’s Report (continued)For the year ended 30 September 2017

22


A Income30/09/2017 30/09/2016 30/09/2015

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 103.84 102.31 101.28 Return before operating charges* 2.20 3.23 2.96 Operating charges (1.40) (1.41) (1.38)Return after operating charges 0.80 1.82 1.58

Distributions (0.28) (0.29) (0.55)Closing net asset value per share 104.36 103.84 102.31

* after direct transaction costs of: 0.01 0.02 0.06

PerformanceReturn after operating charges 0.77% 1.78% 1.56%

Other informationClosing net asset value (£’000) 235,622 157,211 99,595Closing number of shares 225,784,287 151,401,448 97,345,563Operating charges 1.35% 1.37% 1.34%Direct transaction costs 0.01% 0.02% 0.06%

Prices (p)Highest share price 104.91 104.50 104.91Lowest share price 103.11 101.66 99.29

Comparative TableAs at 30 September 2017

23


Operating ChargeSynthetic Rebates from Total

Other expense underlying Transaction operating AMC expenses ratio funds costs charge

Date (%) (%) (%) (%) (%) (%)

30/09/2017Share Class A Income 0.75 0.05 0.67 (0.12) 0.00 1.35

30/09/2016Share Class A Income 0.75 0.05 0.71 (0.14) 0.00 1.37

The Operating Charge is the ratio of the Fund’s total disclosable costs (excluding overdraft interest)to the average net assets of the Fund. When a Fund invests a substantial proportion of its assetsin other UCITS or Collective Investment Undertakings (CIU), the OCF shall take account of theongoing charges incurred in the underlying CIUs and disclose as a Synthetic expense ratio.

• This indicator is based on historical data and may not be a reliable indication of the futurerisk profile of the Fund.

• The risk category shown is not guaranteed to remain unchanged and may shift over time.

• The risk and reward indicator table demonstrates where a Fund ranks in terms of its potentialrisk and return. The higher the rank the greater the potential reward but the greater the riskof losing money. The lowest category does not mean ‘risk free’.

• The Fund appears as a “3” on the scale. This is because the Fund invests in a diverse mixtureof investments.

Risk Warning

An investment in an Open Ended Investment Company should be regarded as a medium to longterm investment. Investors should be aware that the price of Shares and the income from themmay fall as well as rise and investors may not receive back the full amount invested. Pastperformance is not a guide to future performance. Investments denominated in currencies otherthan the base currency of a Fund are subject to fluctuation in exchange rates, which may befavourable or unfavourable.

Share Class A 1 2 3 4 5 6 7

Typically lower rewards Typically higher rewards

Higher riskLower risk3

Risk and Reward ProfileAs at 30 September 2017

Performance Information As at 30 September 2017

24


Holdingsor Nominal Market value % of TotalValue Investments £’000 Net Assets

Collective Investment Schemes 79.96% [78.52%]60,000 Acadian Diversified Alpha D GBP 617 0.26 314,896 Acadian Diversified Alpha F GBP 2,988 1.27 3,333 Amundi Absolute Volatility Euro Equities 2,956 1.25

6,763,687 BlackRock European Absolute Alpha 9,084 3.85 9,594,664 BNY Mellon Absolute Return Equity 11,752 4.99

54,987 Fulcrum Diversified Absolute Return 5,525 2.34 9,248,760 Henderson UK Absolute Return 15,242 6.47 10,225,816 Hermes Absolute Return Credit 10,598 4.50 11,809,068 Invesco Perpetual Global Targeted Returns 14,104 5.99 2,757,924 iShares Corporate Bond Index 4,209 1.79 3,723,496 iShares Overseas Corporate Bond Index 5,414 2.30 15,666,124 Jupiter Absolute Return 8,916 3.78 3,719,813 Legal & General Dynamic Bond 3,984 1.69 21,221,368 Legal & General Short Dated Sterling Corporate Bond Index 11,661 4.95

39,052 Melchior European Absolute Return 4,114 1.75 129,349 Muzinich Global Tactical Credit Hedged GBP 13,208 5.61 71,649 Muzinich Long Short Credit Yield 9,365 3.97

2,848,120 NGAM H2O MultiReturns 4,362 1.85 134,167 NN (L) Alternative Beta 13,802 5.86 63,456 Oaktree Global Convertible Bond 6,946 2.95

1,114,834 Old Mutual Absolute Return Government Bond 11,293 4.79 7,255,154 Old Mutual Global Equity Absolute Return 12,401 5.26 7,145,492 Standard Life Global Absolute Return Strategies 5,861 2.49

188,402 79.96

Exchange Traded Funds 12.42% [7.00%]100,000 iShares Core FTSE 100 727 0.31 125,000 iShares Core UK Gilts 1,626 0.69 20,000 iShares Corp Bond 0-5yr 2,116 0.90 40,000 iShares GBP Index-Linked Gilts 702 0.30 103,206 iShares Global Infrastructure 2,005 0.85 22,500 iShares UK Gilts 0-5yr 2,985 1.27 150,000 iShares UK Property 882 0.37 128,500 iShares Ultrashort Bond 12,894 5.47 17,000 iShares USD Treasury Bond 7-10yr 2,503 1.06 79,539 Vanguard S&P 500 2,833 1.20

29,273 12.42

Portfolio of investments 217,675 92.38 Net other assets 17,947 7.62Net assets 235,622 100.00

The investments have been valued in accordance with note 1(h) of the Accounting Policies and Financial Instruments.

All investments are Collective Investment Schemes unless otherwise stated.

Comparative figures shown above in square brackets relate to 30 September 2016.

Gross purchases for the year: £110,999,000 [2016: £104,651,000] (See note 15).

Total sales net of transaction costs for the year: £30,087,000 [2016: £61,987,000] (See note 15).

Portfolio StatementAs at 30 September 2017

25


01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 1,030 1,837 Revenue 3 2,262 1,358 Expenses 4 (1,582) (964)Interest payable and similar charges 5 (3) (4)

Net revenue before taxation 677 390 Taxation 6 (91) (30)Net revenue after taxation 586 360 Total return before distributions 1,616 2,197 Distributions 7 (592) (360)Change in net assetsattributable to Shareholdersfrom investment activities 1,024 1,837

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000

Opening net assetsattributable to Shareholders 157,211 99,595

Amounts receivable on issue of Shares 78,711 55,954 Amounts payable on cancellation of Shares (1,324) (175)

77,387 55,779 Change in net assets attributable

to Shareholders from investment activities (see above) 1,024 1,837

Closing net assets attributable to Shareholders 235,622 157,211

Statement of Change in Net Assets Attributable to Shareholders For the year ended 30 September 2017

Statement of Total ReturnFor the year ended 30 September 2017

26


30/09/17 30/09/16Note £’000 £’000 £’000 £’000

Assets:Fixed assets:Investments 217,675 134,443

Current assets:Debtors 8 908 5,755 Cash and bank balances 9 19,682 21,055

Total current assets 20,590 26,810Total assets 238,265 161,253Liabilities:Investment liabilities – –Creditors:Distribution payable (628) (386)Other creditors 10 (2,015) (3,656)

Total creditors (2,643) (4,042)Total liabilities (2,643) (4,042)Net assets attributable to Shareholders 235,622 157,211

Balance SheetAs at 30 September 2017

27



The Fund’s Financial Statements have been prepared on the basis detailed on pages 12 to 15.

2. Net capital gains01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000

The net capital gains during the year comprise:Currency gains 163 42 Non-derivative securities 838 1,798 Rebates received from underlying funds 32 –Transaction charges (3) (3)Net capital gains 1,030 1,837

3. Revenue01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000

Bank interest 2 6 Franked dividends from Collective Investment Schemes 57 50 Interest income from Collective Investment Schemes 695 541 Offshore funds dividends 1,258 590 Overseas dividends 1 –Rebates received from underlying funds 198 171 Unfranked dividends from Collective Investment Schemes 51 –Total revenue 2,262 1,358

4. Expenses01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000

Payable to the ACD, associates of the ACD, and agents of either of them

AMC fees 1,499 910 1,499 910

Payable to the Depositary, associates of the Depositary and agents of either of them

Depositary fees 56 32 Safe custody fees 10 5

66 37 Other expensesAudit fees 9 9 Professional fees 7 7 Publication fees 1 1

17 17 Total expenses 1,582 964

Audit fees are £7,700 ex VAT (2016: £7,550).

Notes to the Financial Statements For the year ended 30 September 2017

28


5. Interest payable and similar charges01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000

Interest 3 4 Total interest payable and similar charges 3 4

6. Taxation

(a) Analysis of the tax charge in the year01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000

Corporation tax 91 30 Total taxation for the year (Note 6 (b)) 91 30

(b) Factors affecting the tax charge for the year

The tax assessed for the year is different from that calculated when the standard rate ofcorporation tax for an open ended investment company of 20% (2016: 20%) is applied tothe net revenue before taxation. The differences are explained below:

01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 677 390 Net revenue for the year multiplied by the standard rate of corporation tax 135 78

Effects of:Rebated capital expenses deductible for tax purposes 7 –Revenue not subject to corporation tax (51) (48)Total tax charge for the year 91 30

OEICs are exempt from tax on capital gains in the UK. Therefore, any capital return is not included within thereconciliation above.

(c) Provision for deferred tax

There is no provision required for deferred taxation at the Balance Sheet date in the currentyear or prior year.

Notes to the Financial Statements (continued)For the year ended 30 September 2017

29


7. Distributions

The distributions take account of revenue received on the creation of Shares and revenuededucted on the cancellation of Shares, and comprise:

01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Interim – 39 Final 628 386 Add: Revenue paid on cancellation of Shares 1 –Deduct: Revenue received on creation of Shares (37) (65)Net distribution for the year 592 360

Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 586 360 Tax relief from capital* 6 –Net distribution for the year 592 360

*Tax relief has arisen whereby excess revenue expenses have been utilised to reduce the tax arising on offshorecapital gains.

Details of the distributions per Share are set out in the distribution tables on page 34.

8. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 11 7 Amounts due for rebates from underlying funds 68 58 Amounts receivable for creation of Shares 795 2,219 Income tax recoverable 33 170 Sales awaiting settlement – 3,301 Prepaid expenses 1 –Total debtors 908 5,755

9. Cash and bank balances30/09/17 30/09/16

£’000 £’000

Cash and bank balances 19,682 21,055 Total cash and bank balances 19,682 21,055


30


10. Other creditors30/09/17 30/09/16

£’000 £’000

Corporation tax payable 91 141 Purchases awaiting settlement 1,750 3,408

1,841 3,549 Accrued expensesManager and AgentsAMC fees 144 93

144 93 Depositary and AgentsDepositary fees 11 3 Safe custody fees 7 1 Transaction charges 2 –

20 4 Other accrued expensesAudit fees 9 9 Publication fees 1 1

10 10 Total other creditors 2,015 3,656

11. Related party transactions

Management fees paid to the ACD, are disclosed in note 4 and amounts due at the year endare disclosed in note 10.

Monies received and paid by the ACD through the creation and cancellation of Shares aredisclosed in the Statement of Change in Net Assets Attributable to Shareholders and amountsdue at the year end are disclosed in notes 8 and 10.

The ACD and its associates (including other authorised investment funds managed by theACD) have no Shareholdings in the Company at the year end.

Significant Shareholdings

As at the balance sheet date, the following had significant Shareholdings within the Fund:

Shareholders 30/09/17 (%)

Sterling ISA Managers (Nominees) Limited 71.30FundsDirect Nominees Limited 28.70


31


12. Share Classes

The Share Classes and ACD’s Annual Management Charges applicable to each Share Classare as follows:

%

Share Class A Income 0.75

Each Share Class has equal rights in the event of the wind up of any fund.

The reconciliation of the opening and closing numbers of shares of each class is shown below:

30/09/16 Issued Cancelled Converted 30/09/17

Share Class A Income 151,401,448 75,654,936 (1,272,097) – 225,784,287

13. Capital commitments and contingent liabilities

There were no contingent liabilities or outstanding commitments at the balance sheet date(2016: nil).


The main risks from the Fund’s holding of financial instruments, together with the ACD’s policyfor managing these risks, are disclosed in note 2 on pages 15 to 19 of the report.

(a) Foreign currency risk

A proportion of the financial net assets of the Fund are denominated in currencies other thanSterling with the effect that the balance sheet and total return can be affected by currencymovements.

The Fund holds an insignificant foreign currency exposure at 30 September 2017 therefore acurrency table has not been disclosed.

Changes in exchange rates would have no material impact on the valuation of foreign currencyfinancial assets or liabilities as at the balance sheet date. Consequently, no sensitivity analysishas been presented.


32



(b) Interest rate risk profile of financial assets and liabilities

The Fund does not invest in either fixed or floating rate securities and interest rate riskexposure is restricted to interest receivable on bank deposits or payable on bank overdraftpositions which will be affected by fluctuations in interest rates.

As at 30 September 2017, 8.35% of the Fund’s assets were interest bearing (2016: 13.39%).

Changes in interest rates would have no material impact on the valuation of floating ratefinancial assets or liabilities as at the balance sheet date. Consequently, no sensitivity analysishas been presented.

15. Portfolio transaction costs01/10/16 to 30/09/17 01/10/15 to 30/09/16

£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the year before transaction costs:

Collective investment schemes 110,986 104,639 110,986 104,639

Commissions – Collective investment schemes 13 12 Total purchase costs 13 12 Gross purchase total 110,999 104,651 Analysis of total sale costsGross sales in the year before transaction costs:

Collective investment schemes 30,091 61,997 30,091 61,997

Commissions – Collective investment schemes (4) (10)Total sale costs (4) (10)Total sales net of transaction costs 30,087 61,987

The portfolio transaction costs table above includes direct transaction costs suffered by theFund during the year.

For the Fund’s investment in Collective Investment Scheme holdings there will potentially bedealing spread costs applicable to purchases and sales. However, additionally there are indi-rect transaction costs suffered in those underlying funds, throughout the holding period forthe instruments, which are not separately identifiable and do not form part of the analysisabove.


33


15. Portfolio transaction costs (continued)01/10/16 to 01/10/15 to

30/09/17 30/09/16Transaction costs as percentage of principal amounts % %

Purchases – CommissionsCollective investment schemes 0.0116% 0.0115%

Purchases – TaxesCollective investment schemes 0.0000% 0.0000%

Sales – CommissionsCollective investment schemes 0.0150% 0.0161%

Sales – TaxesCollective investment schemes 0.0000% 0.0000%

01/10/16 to 01/10/15 to30/09/17 30/09/16

Transaction costs as percentage of average net asset value % %

Commissions 0.0087% 0.0181%Taxes 0.0000% 0.0000%

At the balance sheet date the average portfolio dealing spread was 0.07% (2016: 0.09%).

16. Post balance sheet events

There are no post balance sheet events which require adjustments at the year end.

17. Fair value disclosure30/09/17 30/09/16

Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000

Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 29,273 – 12,293 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly 188,402 – 122,150 –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – – – –

217,675 – 134,443 –


34


Interim Distribution in pence per Share

Group 1 Shares purchased prior to 1 October 2016Group 2 Shares purchased on or after 1 October 2016 to 31 March 2017

Distribution DistributionNet paid paid

revenue Equalisation 31/05/17 31/05/16(p) (p) (p) (p)

Share Class A IncomeGroup 1 0.0000 – 0.0000 0.0342Group 2 0.0000 0.0000 0.0000 0.0342

Final Distribution in pence per Share

Group 1 Shares purchased prior to 1 April 2017Group 2 Shares purchased on or after 1 April 2017 to 30 September 2017

Distribution DistributionNet payable paid



Distribution TableAs at 30 September 2017

35

Omnis Asia Pacific Equity Fund


The aim of the Fund is to provide capital growth.

Investment Policy

The Fund intends to invest primarily in equities issued by companies incorporated in or havingsignificant operations in the Asia Pacific region, including: Japan, Hong Kong, Singapore, Australiaand New Zealand. The Fund may also invest in other transferable securities such as warrants anddeposits, and may also invest in money market instruments and units in collective investmentschemes. No more than 10% of the Property of the Fund will be invested in other collectiveinvestment schemes.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives mayalso be used for the purposes of hedging and efficient portfolio management. It is not anticipatedthat such use of derivatives will have a significant effect on the risk profile of the Fund.

Investment Review

Over the period the Omnis Asia Pacific Equity Fund returned 7.62% and the benchmark (MSCIPacific) returned 10.59% [source: Financial Express, bid to bid, net income reinvested].

Within the region, Hong Kong and Singapore were the top performing markets. Australia lagged,although it remained in positive territory. The investment environment has shown continued signsof improvement during the period.

During the first half of the year, Australia began to see a recovery in corporate profits and economicactivity, benefitting from a rebound in commodity prices and a resurgence in demand from acrossthe region, notably China. More recently we have seen business sentiment improve and corporatecapital expenditure projections increase accordingly, for the first time in four years. Against this theindustry background has become more challenging for Australian banks. The regulator there hasincreased capital requirements to a level well above that demanded in other regions and concernssurrounding property affordability continue to linger.

Japan is enjoying a strong recovery in activity and has now seen GDP growth for six consecutivequarters. There has also been a marked improvement in business and consumer sentiment; theformer has reached its highest level in a decade and it is worthy of note that domestic consumptionis showing tentative signs of revival.

Another development is that labour markets continue to tighten with, for the example, the ratio ofjob offers to applicants reaching its highest level since the bubble era. This arguably bodes well forfuture wage inflation, which in turn should drive higher consumption.

Sentiment was positive towards the semi-autonomous territories of Hong Kong and Macau, on theback of a continued recovery in Chinese consumption and investment, which began at the end of2016. For example, footfall and spending in Macau has risen strongly and commercial real estateprices in Hong Kong’s central business district were buoyant during the period. Singapore hasbenefited from a recovery in global trade and its financial services sectors has enjoyed a boost fromhigher asset prices and a more general cyclical recovery.


36


Outlook

We believe that the Fund is well placed to deliver above average performance when measured overlong periods of time. The Fund holds shares in interesting businesses across the region which benefitfrom strong management teams, durable competitive advantages and a long runway of growth.Notwithstanding this, we continue to generate a healthy flow of new ideas with opportunities inAustralian healthcare emerging as a particularly promising area which is worthy of further work.

Investment ManagerBaillie Gifford & Co11 October 2017


37


Material Portfolio ChangesFor the year ended 30 September 2017

Purchases Sales

Portfolio Name Cost £’000 Portfolio Name Proceeds £’000Baillie Gifford Japanese Smaller Companies 9,038 Sands China 1,412 MS&AD Insurance 4,247 Denso 1,408 United Overseas Bank 4,161 Asahi 1,105 SBI 3,891 Shiseido 1,103 Advantest 3,877 Baillie Gifford Japanese Smaller Companies 737 Shiseido 3,657 Aristocrat Leisure 726 Galaxy Entertainment 3,592 Pigeon 549 Shimano 3,533 SMC 345 Bridgestone 3,433 Treasury Wine Estates 229 SMC 3,214 Cochlear 199

38


A Income30/09/2017 30/09/2016

(p) (p)

Change in net assets per ShareOpening net asset value per Share 119.34 100.00**Return before operating charges* 10.10 19.83 Operating charges (1.09) (0.39)Return after operating charges 9.01 19.44

Distributions (1.17) (0.10)Closing net asset value per Share 127.18 119.34

* after direct transaction costs of: 0.06 0.02

PerformanceReturn after operating charges 7.55% 19.44%

Other informationClosing net asset value (£’000) 147,693 39,387Closing number of shares 116,126,878 33,004,789Operating charges 0.86% 0.83%Direct transaction costs 0.05% 0.01%

Prices (p)Highest share price 134.60 121.25Lowest share price 115.95 99.22

** Share class A Income launched on 3 May 2016 at a price of 100 pence.


39


Operating ChargeTotal

Other Transaction operatingAMC expenses costs charge

Date (%) (%) (%) (%)

30/09/17Share Class A Income 0.75 0.07 0.04 0.86


The Operating Charge is the ratio of the Fund’s total disclosable costs (excluding overdraft interest)to the average net assets of the Fund.




• The Fund appears as a “5” on the scale. This is because the Fund invests in the shares ofcompanies whose values tend to vary more widely than other asset classes.

Risk Warning






Performance InformationAs at 30 September 2017

40



Collective Investment Scheme 9.08% [8.80%]305,009 Baillie Gifford Japanese Smaller Companies 13,408 9.08

13,408 9.08

Equity 90.36% [88.69%]

Australia 12.85% [15.96%]#133,992 BHP Billiton 2,020 1.37 394,568 Brambles 2,077 1.41 45,027 Cochlear 4,193 2.84

630,485 Mesoblast 500 0.34 411,697 SEEK 3,994 2.70 383,511 Treasury Wine Estates 3,071 2.08 334,312 Washington H Soul Pattinson & Co 3,115 2.11

18,970 12.85

Cayman Islands 0.00% [0.00%]#

China 1.68% [1.16%]872,000 Tsingtao Brewery 2,484 1.68

2,484 1.68

Hong Kong 11.54% [9.38%]293,200 AIA 1,610 1.09

1,160,000 Galaxy Entertainment 6,083 4.12 186,800 Hong Kong Exchanges and Clearing 3,740 2.53 74,000 Jardine Matheson 3,490 2.36

5,367,000 PAX Global Technology 2,120 1.44 17,043 11.54

Ireland 2.16% [2.59%]#307,829 James Hardie Industries 3,190 2.16

3,190 2.16

Israel 0.58% [0.87%]1,335,300 Sarine Technologies 858 0.58

858 0.58


41



Japan 57.47% [54.26%]406,400 Advantest 5,659 3.83 52,200 Asahi 1,574 1.07

149,700 Bridgestone 5,057 3.42 86,000 CyberAgent 1,865 1.26 80,900 Denso 3,048 2.06 25,600 FANUC 3,857 2.61 6,900 Fast Retailing 1,511 1.02

277,000 Japan Exchange 3,650 2.47 110,400 Japan Tobacco 2,694 1.82 235,600 Kakaku.com 2,232 1.51 472,100 LIFULL 3,054 2.07 159,400 Makita 4,781 3.24 228,400 MS&AD Insurance 5,469 3.70 31,000 Nabtesco 857 0.58 14,500 Nidec 1,325 0.90

119,200 Olympus 3,007 2.04 143,100 Pigeon 3,639 2.46 407,700 Rakuten 3,311 2.24 357,400 SBI 4,004 2.71 41,600 Shimano 4,124 2.79

181,300 Shiseido 5,400 3.66 18,100 SMC 4,751 3.22 69,600 SoftBank 4,181 2.83 76,200 Sugi Holdings 3,012 2.04

176,300 Suruga Bank 2,831 1.9284,893 57.47

Macao 0.00% [0.96%]#

Singapore 4.08% [3.51%]467,443 United Overseas Bank 6,019 4.08

6,019 4.08

Portfolio of investments 146,865 99.44 Net other assets 828 0.56 Net assets 147,693 100.00


All investments are ordinary Shares unless otherwise stated and admitted to official stock exchange listings.

# Since the previous report the classification headings have been updated by data providers. Comparative figures havebeen updated where appropriate.




Portfolio Statement (continued)As at 30 September 2017

42


01/10/16 to 30/09/17 03/05/16 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 3,101 2,762 Revenue 3 1,983 104

Expenses 4 (777) (63)Net revenue before taxation 1,206 41 Taxation 5 (126) (9)Net revenue after taxation 1,080 32 Total return before distributions 4,181 2,794 Distributions 6 (1,080) (32)Change in net assetsattributable to Shareholdersfrom investment activities 3,101 2,762

01/10/16 to 30/09/17 03/05/16 to 30/09/16£’000 £’000 £’000 £’000

Opening net assets attributable to Shareholders 39,387 –

Amounts receivable on issue of Shares 105,205 36,625Amounts payable on cancellation

of Shares – –105,205 36,625

Change in net assets attributable to Shareholders from investment activities (see above) 3,101 2,762




43


30/09/17 30/09/16Note £’000 £’000 £’000 £’000

Assets:Fixed assets:

Investments 146,865 38,397Current assets:

Debtors 7 1,657 1,624 Cash and bank balances 8 1,707 973

Total current assets 3,364 2,597 Total assets 150,229 40,994 Liabilities:Investment liabilities – –Creditors:

Bank overdrafts 10 – (3)Distribution payable (903) (34)Other creditors 9 (1,633) (1,570)



44


1. Accounting Basis and PoliciesThe Fund’s Financial Statements have been prepared on the basis detailed on pages 12 to 15.

2. Net capital gains01/10/16 to 03/05/16 to30/09/17 30/09/16

£’000 £’000

The net capital gains during the year comprise:Currency gains/(losses) 168 (17)Forward currency contracts (103) 13 Non-derivative securities 3,077 2,767 Transaction charges (41) (1)Net capital gains 3,101 2,762

3. Revenue01/10/16 to 03/05/16 to 30/09/17 30/09/16

£’000 £’000

Franked dividends from Collective Investment Schemes 64 –Overseas dividends 1,855 104Scrip dividends 64 –Total revenue 1,983 104

4. Expenses01/10/16 to 03/05/16 to 30/09/17 30/09/16

£’000 £’000

Payable to the ACD, associates of the ACD, andagents of either of them

AMC fees 715 52 Rebate for fixed expenses – (2)

715 50 Payable to the Depositary, associates of the Depositary and agents of either of them

Depositary fees 27 2 Safe custody fees 22 –

49 2 Other expensesAudit fees 9 7 Professional fees 3 2 Publication fees – 2 Custodian out of pocket expenses 1 –

13 11 Total expenses 777 63


Notes to the Financial StatementsFor the year ended 30 September 2017

45


5. Taxation

(a) Analysis of the tax charge in the year01/10/16 to 03/05/16 to30/09/17 30/09/16

£’000 £’000

Irrecoverable overseas tax 126 9 Total taxation for the year (Note 5 (b)) 126 9



01/10/16 to 03/05/16 to30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 1,206 41 Net revenue for the year multiplied by

the standard rate of corporation tax 241 8Effects of:Irrecoverable overseas tax 126 9 Movement in excess management expenses 149 12Overseas tax expensed (1) –Revenue not subject to corporation tax (389) (20)Total tax charge for the year 126 9



There is no provision required for deferred taxation at the Balance Sheet date in the currentyear or prior period.

(d) Factors that may affect future tax charges

At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £161,706 (2016: £12,393) in relation to surplus management expenses. It isunlikely that the Fund will generate sufficient taxable profits in the future to utilise this amountand therefore no deferred tax asset has been recognised in the year.


46


6. Distributions


01/10/16 to 03/05/16 to30/09/17 30/09/16

£’000 £’000

Interim 293 –Final 903 34 Deduct: Revenue received on creation of Shares (116) (2)Net distribution for the year/period 1,080 32 Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 1,080 32 Net distribution for the year 1,080 32


7. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 567 95 Amounts receivable for creation of Shares 1,090 1,529 Total debtors 1,657 1,624


£’000 £’000

Cash and bank balances 1,707 973 Total cash and bank balances 1,707 973


47


9. Other creditors30/09/17 30/09/16

£’000 £’000

Purchases awaiting settlement 1,485 1,539 1,485 1,539

Accrued expensesManager and AgentsAMC fees 90 21

90 21 Depositary and AgentsDepositary fees 7 1 Safe custody fees 17 –Transaction charges 25 1



10. Bank overdrafts30/09/17 30/09/16

£’000 £’000

Bank overdrafts – 3 Total bank overdrafts – 3








Sterling ISA Managers (Nominees) Limited 77.70


48


12. Share Classes

The Share Classes and ACD’s Annual Management Charges applicable to each Fund are asfollows:

%





Share Class A Income 33,004,789 83,122,089 – – 116,126,878



14. Derivatives and other financial instrumentsThe main risks from the Fund’s holding of financial instruments, together with the ACD’s policyfor managing these risks, are disclosed in note 2 on pages 15 to 19 of the report.

(a) Foreign currency riskA proportion of the financial net assets of the Fund are denominated in currencies other thanSterling with the effect that the balance sheet and total return can be affected by currencymovements.



The table below shows the foreign currency risk profile at the balance sheet date:

Net foreign currency exposure30/09/17 30/09/16

Currency £’000 £’000

Australian Dollar 22,303 7,085 Hong Kong Dollar 15,953 3,564 Japanese Yen 84,203 20,379 Singapore Dollar 6,960 1,647 US Dollar 3,439 924 Total foreign currency exposure 132,858 33,599 Sterling 14,835 5,788 Total net assets 147,693 39,387

If GBP to foreign currency exchange rates had strengthened/increased by 10% as at thebalance sheet date, the net asset value of the fund would have decreased by £13,286,000(2016: decreased by £3,054,000). If GBP to foreign currency exchange rates hadweakened/decreased by 10% as at the balance sheet date, the net asset value of the fundwould have increased by £13,286,000 (2016: increased by £3,733,000). These calculationsassume all other variables remain constant.


49








£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the period

before transaction costs:Equities 104,058 34,066 Collective Investment Schemes 9,038 33,759

113,096 67,825 Commissions – Equities 25 1 Taxes – Equities 17 1 Total purchase costs 42 2 Gross purchase total 113,138 67,827 Analysis of total sale costsGross sales in the period

before transaction costs:Equities 7,082 70 Collective Investment Schemes 737 32,129

7,819 32,199 Commissions – Equities (4) –Taxes – Equities (2) –Total sale costs (6) –Total sales net of transaction costs 7,813 32,199


Separately identifiable direct transaction costs (commissions and taxes etc.) are attributableto the Fund’s purchase and sale of equity shares. Additionally for equity shares there is adealing spread cost (the difference between the buying and selling prices) which will besuffered on purchase and sale transactions.


50


15. Portfolio transaction costs (continued)

For the Fund’s investment in Collective Investment Scheme holdings there will potentially bedealing spread costs applicable to purchases and sales. However, additionally there areindirect transaction costs suffered in those underlying funds, throughout the holding periodfor the instruments, which are not separately identifiable and do not form part of the analysisabove.

01/10/16 to 03/05/16 to30/09/17 30/09/16

Transaction costs as percentage of principal amounts % %

Purchases – CommissionsEquities 0.0240% 0.0029%Collective Investment Schemes 0.0000% 0.0000%

Purchases – TaxesEquities 0.0163% 0.0029%Collective Investment Schemes 0.0000% 0.0000%

Sales – CommissionsEquities 0.0565% 0.0000%Collective Investment Schemes 0.0000% 0.0000%

Sales – TaxesEquities 0.0282% 0.0000%Collective Investment Schemes 0.0000% 0.0000%

01/10/16 to 03/05/16 to30/09/17 30/09/16







51





Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 133,457 – 34,932 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly 13,408 – 3,465 –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – – – –

146,865 – 38,397 –

52







Share Class A IncomeGroup 1 0.3965 – 0.3965 N/AGroup 2 0.3770 0.0195 0.3965 N/A






Share class A Income launched on 3 May 2016 at a price of 100 pence.

53

Omnis Developed Markets (ex-UK, ex-US) Equity Fund


The aim is to achieve capital growth.

Investment Policy

The Fund intends to invest primarily in companies incorporated in, or significantly exposed to,developed markets, excluding the United Kingdom and the United States of America. The Fund mayalso invest in other transferable securities (for example, other international equities which, for theavoidance of doubt, may include equities in the UK and US), units in collective investment schemes,money market instruments, warrants and deposits as detailed in the Prospectus. No more than10% of the Scheme Property of the Fund will be invested in other collective investment schemes.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives mayalso be used for the purposes of hedging and efficient portfolio management.

Investment Review

Over the period the Omnis Developed Markets (ex-UK, ex-US) Equity Fund returned 13.41% andthe benchmark (MSCI EAFE Ex-UK) returned 16.28% [source: Financial Express, bid to bid, netincome reinvested].

Developed market equity prices advanced strongly during the review period on increased optimismabout economic growth in the eurozone and Japan. Growth trends from most major economies inEurope have met or exceeded expectations in recent quarters, helped by stable domestic demandand the recovery in global trade. Better than expected export volume growth has helped theJapanese economy as well, though domestic consumer demand remains relatively soft. Energy andcommodity prices weakened during the first half of 2017, before rebounding in the third quarter.As a result, the growth outlook for major resource exporting countries such as Canada and Australiahas brightened.

The financials sector led the gains during the review period as the prospect of wider net interestmargins and a recovery in credit demand lifted banking stocks. The technology sector continued tosee strong gains as several large companies exceeded analyst estimates for revenues and earnings.Despite persistent concerns that technology stocks are richly valued, the fast pace of revenueexpansion continued to attract investors. The materials and industrials sectors rebounded from theprevious quarter’s decline as higher product prices and increased capital spending are expected toboost margins and cash flows in the coming quarters.

Weak stock selection in financials, consumer discretionary, technology, consumer staples, andmaterials sectors offset the gains in healthcare and telecom sectors during the review period. Onthe positive side, higher allocation to technology, materials and consumer discretionary sectorshelped the Fund’s relative performance. At the region level, stock selection was negative in Europeand Japan.

Techtronic Industries, which sells power tools and household cleaning equipment across majormarkets, contributed the most to Fund returns as construction activity continued to perk up. Othermajor contributors to relative returns included European banking groups ING and BNP Paribas.Investors in European financials were encouraged by the prospect of stable regulatory policies andthe significantly reduced possibility of returning to a negative interest rate environment.

The Fund’s Japanese holdings detracted the most from returns during the review period. JapanTobacco and Nippon Telegraph & Telephone were hurt as investor attention shifted from stableindustries that are driven by domestic demand to Japanese exporters. E-commerce and other onlineservices provider Rakuten declined as revenue and earnings growth was below expectations.



54

Market Overview

Economic growth outlook for the eurozone continues to brighten and the International MonetaryFund (IMF) has lifted its GDP growth estimates for the region to 2.1% for this year. The EuropeanCentral Bank (ECB) is more confident and expects the pace of expansion to reach 2.2%.Manufacturing sector growth is at multi-year highs while the services sector is also expanding at ahealthy pace. The euro’s appreciation against the dollar has so far not dulled the recovery in exportsso far, though further currency strength could hurt competitiveness. Further, capital investments inthe eurozone now exceed the level seen before the 2008 global financial crisis. Despite the positivetrends, low inflation risks should allow the ECB to hold its benchmark rate unchanged through nextyear.

The Japanese economy is also gaining speed and the IMF expects growth of 1.3% this year, helpedby exports and investments. Domestic consumption could strengthen in Japan, and boost growthin the coming quarters. As in the eurozone, inflation remains stubbornly low in Japan and the centralbank is expected to continue its bond purchases.

Outlook

The risk of heightened market volatility as the leading central banks start winding down, andeventually reverse, their quantitative easing measures has alarmed investors over the last year.Such fears have eased recently, as the prospect of policy tightening has dimmed. The ECB iscommitted to continue its bond purchases through the end of this year, and is ready to extend it ifnecessary. It is expected to discuss the winding down of the quantitative easing program later thisyear, but a decision is likely only after the central bank is more confident about economic growthand inflation trends. In Japan, the central bank is likely to continue with its ongoing bond purchasesthrough the first half of next year. Although the economic outlook has improved, inflation remainswell below the target set by Bank of Japan. However, reduced availability of assets to buy couldlimit the scale of its bond purchases in the future.

The Fund is currently positioned to benefit from the accelerating global economic growth and thecontinuing uptrend in commodity prices. Relative to its benchmark, it is now overweight materials,energy and financials sector. Exposure to sectors less sensitive to economic growth, such asconsumer staples and healthcare, has been reduced and there are currently no holdings in theutilities sector.

Purchases in the financials sector include French lender BNP Paribas, investment bank Natixis, andRoyal Bank of Canada. These are well-managed, high-quality firms that are well positioned to takeadvantage of the growth opportunities. In the industrials sector, the Fund added Swedish industrialtools manufacturer Atlas Copco, Japanese electric motor manufacturer Nidec Corp, and CanadianNational Railway. In the technology sector, new purchases included fabrication equipmentmanufacturer ASML Holding and services provider Atos Corp. The Fund also added Jardine Cycleand Carriage, a leading automobile distributor in East Asia.

The positions sold during the review period reduced the Fund’s exposure to consumer staples,healthcare and telecom. In addition to Japan Tobacco, the Fund also sold Swedish Match and RoyalAhold Delhaize in the consumer staples sector. Healthcare holdings sold included UCB SA, RocheHolding, and Astellas Pharma. Danish jewellery retailer Pandora A/S was also sold as the companyis finding it difficult to sustain revenue growth, despite its efforts to expand in Asia.

Invest ment Ma nagerThomas White International Ltd13 October 2017


55


A Income30/09/2017 30/09/2016 30/09/2015

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 115.47 93.68 96.42 Return before operating charges* 15.05 24.36 (0.45)Operating charges (0.87) (0.74) (0.71)Return after operating charges 14.18 23.62 (1.16)



PerformanceReturn after operating charges 12.28% 25.21% (1.20%)



Distribution

Distribution



56





Date (%) (%) (%) (%)







• The Fund appears as a “5” on the scale. This is because the Fund invests in assets thattypically carry medium risk and offer medium rewards compared with other categories ofassets.

Risk Warning





57



Australia 4.93% [4.35%]162,600 Australia & New Zealand Banking 2,814 0.7252,500 CSL 4,113 1.05295,300 Newcrest Mining 3,630 0.92226,000 Rio Tinto 8,790 2.24

19,347 4.93

Belgium 0.00% [1.51%]

Canada 4.34% [0.00%]131,200 Canadian National Railway 8,082 2.06 155,400 Royal Bank of Canada 8,937 2.28

17,019 4.34

Denmark 1.19% [3.88%]157,300 Danske Bank 4,684 1.19

4,684 1.19

Finland 0.00% [2.10%]

France 20.09% [11.04%]81,550 Airbus 5,775 1.4748,800 Atos 5,644 1.44200,000 BNP Paribas 12,026 3.0734,200 Cie Generale des Etablissements Michelin 3,719 0.9564,900 Eiffage 5,009 1.2826,100 LVMH Moet Hennessy Louis Vuitton 5,363 1.37

1,733,000 Natixis 10,330 2.6367,700 Safran 5,153 1.31

259,800 Total 10,397 2.65169,700 Valeo 9,388 2.3985,000 Vinci 6,021 1.53

78,825 20.09

Germany 12.01% [13.56%]142,650 Fresenius 8,575 2.1962,200 Fuchs Petrolub Preference Shares 2,732 0.7088,800 Henkel Preference Shares 9,002 2.2924,400 Münchener Rückversicherungs 3,888 0.99160,500 SAP 13,085 3.3454,800 Siemens 5,746 1.46186,000 thyssenkrupp 4,094 1.04

47,122 12.01

Hong Kong 8.83% [8.20%]1,548,000 AIA 8,501 2.171,073,000 BOC Hong Kong 3,881 0.99866,000 Galaxy Entertainment 4,541 1.16

4,444,500 Techtronic Industries 17,686 4.5134,609 8.83



58


Ireland 2.91% [2.07%]248,500 CRH 7,033 1.79305,600 Ryanair 4,378 1.12

11,411 2.91

Israel 3.66% [1.11%]91,300 Check Point Software Technologies 7,757 1.9821,400 Elbit Systems 2,353 0.6073,300 Frutarom Industries 4,239 1.08

14,349 3.66

Japan 19.05% [30.52%]448,000 Asahi Kasei 4,107 1.0548,800 Daikin Industries 3,676 0.94258,600 Hoya 10,384 2.65567,700 Kansai Paint 10,642 2.7119,100 Keyence 7,553 1.9397,200 Nidec 8,882 2.2644,000 Nitori 4,685 1.19118,400 Otsuka 5,652 1.44129,200 SoftBank 7,762 1.98133,900 Sompo 3,879 0.99139,600 Sundrug 4,298 1.10134,400 Yaskawa Electric 3,173 0.81

74,693 19.05

Netherlands 11.03% [9.90%]47,300 ASML 6,002 1.53

925,100 ING 12,700 3.24118,000 Koninklijke DSM 7,201 1.84229,200 Koninklijke Philips 7,051 1.80369,751 RELX 5,866 1.5099,800 Unilever 4,397 1.12

43,217 11.03

New Zealand 0.00% [0.93%]

Portugal 0.00% [0.96%]

Singapore 1.21% [0.00%]220,800 Jardine Cycle & Carriage 4,762 1.21

4,762 1.21

Spain 0.80% [1.32%]111,300 Industria de Diseno Textil 3,126 0.80

3,126 0.80


59



Sweden 7.05% [3.24%]186,200 Atlas Copco 5,861 1.49256,300 Essity 5,175 1.32106,000 Hexagon 3,904 0.99419,300 Husqvarna 3,203 0.82260,100 Investor 9,543 2.43

27,686 7.05

Switzerland 2.04% [5.21%]450 Sika 2,496 0.64

20,900 Swiss Life 5,490 1.407,986 2.04

Portfolio of investments 388,836 99.14Net other assets 3,367 0.86Net assets 392,203 100.00


All investments are ordinary shares unless otherwise stated and admitted to official stock exchange listings.






60

01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 37,714 65,568Revenue 3 9,349 8,632

Expenses 4 (2,678) (2,233)Interest payable and similar charges 5 (1) (1)Net revenue before taxation 6,670 6,398Taxation 6 (633) (644)Net revenue after taxation 6,037 5,754Total return before distributions 43,751 71,322Distributions 7 (6,037) (5,754)Change in net assets attributable to Shareholders from investment activities 37,714 65,568

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000

Opening net assets attributable to Shareholders 358,031 253,109

Amounts receivable on issue of Shares 19,598 53,991Amounts payable on cancellation of Shares (23,151) (14,653)

(3,553) 39,338Dilution adjustment 11 16Change in net assets attributable to Shareholders from investment activities (see above) 37,714 65,568




61


30/09/17 30/09/16Note £’000 £’000 £’000 £’000


Current assets:Debtors 8 6,390 2,176Cash and bank balances 9 5,566 3,430

Total current assets 11,956 5,606Total assets 400,792 363,291Liabilities:Investment liabilities – –Creditors:Distribution payable (3,813) (4,916)Other creditors 10 (4,776) (344)




62



2. Net capital gains01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

The net capital gains during the year comprise:Currency losses (474) (140)Forward currency contracts – 33Non-derivative securities 38,192 65,678Transaction charges (4) (3)Net capital gains 37,714 65,568

3. Revenue01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Bank interest 1 3Overseas dividends 9,348 8,629Total revenue 9,349 8,632

4. Expenses01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000


AMC fees 2,458 2,0522,458 2,052

Payable to the Depositary, associates of theDepositary and agents of either of them

Depositary fees 107 83Safe custody fees 92 75

199 158 Other expensesAudit fees 9 9 Professional fees 11 12 Publication fees 1 1Custodian out of pocket expenses – 1

21 23Total expenses 2,678 2,233



63


5. Interest payable and similar charges

01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000


6. Taxation

(a) Analysis of the tax charge in the year01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Irrecoverable overseas tax 633 644Total taxation for the year (Note 6 (b)) 633 644



01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 6,670 6,398Net revenue for the year multiplied by the standard rate of corporation tax 1,334 1,280

Effects of:Irrecoverable overseas tax 633 644Movement in excess management expenses 534 414Overseas tax expensed (4) (6)Revenue not subject to corporation tax (1,864) (1,688)Total tax charge for the year 633 644





At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £1,286,179 (2016: £752,159) in relation to surplus management expenses. It isunlikely that the Fund will generate sufficient taxable profits in the future to utilise this amountand therefore no deferred tax asset has been recognised in the year.



64


7. Distributions


01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Interim 2,217 767Final 3,813 4,916Add: Revenue paid on cancellation of Shares 85 142Deduct: Revenue received on creation of Shares (78) (71)Net distribution for the year 6,037 5,754


Net revenue after taxation 6,037 5,754Net distribution for the year 6,037 5,754


8. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 613 1,123Amounts receivable for creation of Shares 419 454Overseas withholding tax recoverable 732 584Sales awaiting settlement 4,625 14Prepaid expenses 1 1Total debtors 6,390 2,176


£’000 £’000

Cash and bank balances 5,566 3,430Total cash and bank balances 5,566 3,430

65



10. Other creditors30/09/17 30/09/16

£’000 £’000

Amounts payable for cancellation of Shares – 122Dilution adjustment payable – 1 Purchases awaiting settlement 4,471 –

4,471 123Accrued expensesManager and AgentsAMC fees 212 190

212 190 Depositary and AgentsDepositary fees 19 8Safe custody fees 61 13Transaction charges 3 –

83 21 Other accrued expensesAudit fees 9 9Publication fees 1 1

10 10 Total other creditors 4,776 344










66


12. Share Classes

The Share Classes and ACD’s Annual Management Charges applicable to each Fund are as follows:

%
















Australian Dollar 19,375 15,607 Canadian Dollar 17,047 –Danish Krone 7,511 13,932 Euro 181,755 152,579 Hong Kong Dollar 34,702 29,363 Israeli Sheqel 6,592 2,757 Japanese Yen 74,974 110,222 New Zealand Dollar – 3,443 Norwegian Krone 48 7 Singapore Dollar 4,762 –Swedish krona 27,685 11,596 Swiss Franc 8,126 18,762 US Dollar 7,784 1,255 Total foreign currency exposure 390,361 359,523 Sterling 1,842 (1,492)Total net assets 392,203 358,031

67




(a) Foreign currency risk (continued)







£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the year before transaction costs:Equities 301,552 162,918

301,552 162,918 Commissions – Equities 363 230Taxes – Equities 227 53Total purchase costs 590 283Gross purchase total 302,142 163,201

Analysis of total sale costsGross sales in the year before transaction costs:

Equities 309,484 119,508309,484 119,508

Commissions – Equities (375) (167)Taxes – Equities (20) (3)Total sale costs (395) (170)Total sales net of transaction costs 309,089 119,338




68


15. Portfolio transaction costs (continued)01/10/16 to 01/10/15 to30/09/17 30/09/16


Purchases – CommissionsEquities 0.1204% 0.1412%

Purchases – TaxesEquities 0.0753% 0.0325%

Sales – CommissionsEquities 0.1212% 0.1397%

Sales – TaxesEquities 0.0065% 0.0025%

01/10/16 to 01/10/15 to30/09/17 30/09/16








Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 388,836 – 357,685 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly – – – –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – – – –

388,836 – 357,685 –

69













70

Omnis Emerging Markets Equity Fund



Investment Policy

The Fund intends to invest primarily in companies incorporated in, or significantly exposed to,emerging markets. The Fund may also invest in other transferable securities (for example, otherinternational equities), units in collective investment schemes, money market instruments, warrantsand deposits as detailed in the Prospectus. No more than 10% of the Scheme Property of the Fundwill be invested in other collective investment schemes.


Investment Review

Over the period the Omnis Emerging Markets Equity Fund returned 18.39% and the benchmark(MSCI Emerging Markets) returned 18.57% [source: Financial Express, bid to bid, net incomereinvested].

On a stock level the largest positive contribution came from SK Hynix, which is one of only threecompanies operating in the global dynamic random-access memory (DRAM) memory chip industry.The stock rose substantially, and in our view the company should continue to benefit from increasingdemand for memory and continued pricing power, as supply limitations remain.

Another strong stock was Indian oil refinery and petroleum products marketing company HindustanPetroleum Company (HPCL). The company also owns pipelines and has an automotive lubricantsbusiness. It announced strong results over the period under review, aided by the impact of fuelprice deregulation in India. The market also reacted positively to the in-principle approval from theboard of the state-run Oil and Natural Gas Corporation to buy the Indian government’s existing51.1% stake in HPCL.

We also benefited from a holding in Autohome, which is the leading online advertising platform inChina. During the third quarter of 2017, the company surprised the market with guidance that wasahead of consensus, as the company expects fiscal Q3 2017 revenue to be between $220m-$227m,compared to analyst estimates of $207m. Electronic components and cable manufacturer Bizlink,and Brazilian-listed education company Kroton, were among the other positive stories over the yearunder review, on the back of strong results.

On a relative basis, some of the largest negative impacts on the fund’s performance came from notholding either of the Chinese internet giants Tencent and Alibaba. Between them these stocks makeup around 8% of the MSCI Emerging Markets benchmark, so they can have huge sway on fundperformance in the sector. We choose not to hold either stock as we see greater opportunities forunder-appreciated change elsewhere across the emerging market universe.

Another negative was Ginko, the Taiwan-based contact lens manufacturer with 30% of the marketshare in mainland China. Its share price weakened after it announced disappointing Q2 2017 results,especially regarding its gross margin which dropped 5.1 percentage points year-on-year. This wasprincipally down to the change in mix with a greater share of disposable lens versus long-wearproducts. The company also continues to suffer from the aftermath of the closure of its Horienfacility in early 2017.


71


The fund’s investment in Bumi Serpong Damai, an Indonesian real estate developer, was the largestnegative contributor to the portfolio’s returns relative to the benchmark. Despite the successfulimplementation of a tax amnesty by the government and the lower interest rate environment –both of which in our view should support the Indonesian property market longer term – the markethas been slow to re-price this change.

Market Overview

Emerging market share prices were especially strong in the first half of the period under review,when a continued rebound in commodity prices, some positive economic data and the prospect ofa prolonged period of supportive global monetary policy gave investors confidence. Towards theend of 2016, investor enthusiasm was tempered by the presidential election in the US; emergingmarkets weakened in November due to the election of Donald Trump and the consequent sharprise in the dollar and concern over increased protectionism.

This had a large negative impact on Latin American stock markets, particularly Mexico, where thepeso fell substantially. Elsewhere, remarkable events in India, where prime minister Narendra Modi’sdecision to suddenly halt the use of 500 and 1,000 rupee notes, caused short-term disruption.

Emerging markets made a strong recovering in the early months of 2017. China, the world’s second-largest economy, was the strongest performing market over the quarter, propelled by encouragingeconomic data. In contrast, Russian stocks were weaker, although an interest rate cut from thecentral bank helped to improve sentiment as inflation came back under control while growth showedsigns of returning. Brazil once again found itself engulfed in a corruption scandal that put presidentTemer under pressure.

Outlook

Fund positioning at both a sector and a country level is, as always, a function of where the globalemerging markets team identifies compelling businesses at attractive valuations. 2017 has so farbeen a year of attractive returns for emerging market in investors. Despite this, factors such as theworrying escalation of rhetoric coming from both Pyongyang and Washington, alongside the ongoingconcerns about the levels of debt in China, remind us that there are always risks that need to beconsidered.

Although we remain cognisant of these risks, and always endeavour to construct a robust anddiverse portfolio for the fund, we take comfort that an environment of rising earnings meansvaluations have not got out of hand. The one exception, perhaps, is in some of the larger stocks inthe index that are widely held by investors because of their perceived quality or growth prospects;for these companies valuations are in many cases rather high, in our view. That is not a problemfor us in terms of idea generation, however, as we continue to take advantage of the fund’s flexibilityto be invested further down the market cap spectrum to explore more compelling opportunitiesamong mid and small caps, as well as selectively in frontier markets. Taken all together, when welook at emerging markets from the bottom-up we do not have any difficulty in finding interestingopportunities and stocks must compete to get into the portfolio.

Investment ManagerJupiter Asset Management Limited13 October 2017


Investment Review (continued)

72



Purchases Sales

Portfolio Name Cost £’000 Portfolio Name Proceeds £’000Guaranty Trust Bank 7,125 Randon Implementos e ParticipacoesJupiter Emerging & Frontier Income Trust 7,065 Preference Shares 5,444 Almacenes Exito 6,588 Tata Motors ADR 5,216 Reliance Capital 6,402 First Quantum Minerals 4,996 MMC Norilsk Nickel ADR 5,861 NMC Health 4,902 Grupo Lala 5,819 Ser Educacional 4,309 Hengan International 5,818 JD.com 4,277 China Biologic Products 5,674 Advanced Semiconductor Engineering 3,998 Kroton Educacional 5,471 Commercial International Bank Egypt GDR 3,824 Hon Hai Precision Industry 5,425 Samsung Electronic GDR 3,678 Fomento Economico Mexican 3,580

73


A Income30/09/2017 30/09/2016 30/09/2015

(p) (p) (p)








74




Date (%) (%) (%) (%)







• The Fund appears as “6” on the scale. This is because the Fund invests in the shares ofcompanies whose values tend to vary more widely than other asset classes.

Risk Warning







75



Brazil 6.98% [9.68%]905,739 Itau Unibanco Preference Shares 9,252 2.77

2,147,500 Kroton Educacional 10,121 3.03 3,631,300 Mills Estruturas e Servicos de Engenharia 3,936 1.18

23,309 6.98

Canada 0.00% [1.37%]

China 18.87% [20.16%]5,180,500 3SBio 6,189 1.85

136,200 Autohome ADR* 6,098 1.82 48,400 Baidu ADR* 8,936 2.67

12,925,000 Bank of China 4,749 1.42 78,544 China Biologic Products 5,398 1.61

335,984 China Distance Education ADR* 1,670 0.50 8,960,000 China Petroleum & Chemical 4,993 1.49

20,076,000 Haichang Ocean Park 3,774 1.13 904,000 Hengan International 6,228 1.86 321,531 Hollysys Automation Technologies 5,179 1.55

1,742,000 Longfor Properties 3,275 0.98 33,771 NetEase ADR* 6,640 1.99

63,129 18.87

Colombia 1.88% [0.00%]1,613,934 Almacenes Exito 6,292 1.88

6,292 1.88

Egypt 0.00% [1.44%]

Hong Kong 3.08% [2.11%]641,000 AIA 3,520 1.05

6,552,000 China Unicom Hong Kong 6,790 2.03 10,310 3.08

India 10.03% [11.77%]2,649,647 Hindustan Petroleum 13,001 3.89

413,681 InterGlobe Aviation 5,167 1.54 784,550 Reliance Capital 5,253 1.57 418,689 Reliance Home Finance 483 0.14 148,734 State Bank of India GDR** 4,257 1.27 388,359 Torrent Pharmaceuticals 5,425 1.62

33,586 10.03


76



Indonesia 4.84% [4.13%]9,116,900 Bank Negara Indonesia Persero 3,733 1.12

90,636,800 Bumi Serpong Damai 8,878 2.65 106,619,000 Pakuwon Jati 3,569 1.07

16,180 4.84

Malaysia 0.00% [1.02%]

Mexico 3.68% [2.59%]5,616,200 Fibra Uno Administracion*** 7,065 2.11 4,155,200 Grupo Lala 5,248 1.57

12,313 3.68

Nigeria 2.15% [0.76%]87,642,035 Guaranty Trust Bank 7,187 2.15

7,187 2.15

Panama 1.34% [1.67%]48,393 Copa 4,492 1.34

4,492 1.34

Philippines 2.63% [1.35%]273,145 GT Capital 4,653 1.39

54,296,000 Megaworld 4,167 1.24 8,820 2.63

Russia 4.81% [3.86%]805,366 MMC Norilsk Nickel ADR* 10,301 3.08

2,860,900 Sberbank Preference Shares 5,772 1.73 16,073 4.81

South Africa 6.70% [6.56%]3,492,924 Ascendis Health 3,876 1.16

563,967 MTN 3,872 1.16 59,510 Naspers 9,592 2.87

241,741 Tiger Brands 5,035 1.51 22,375 6.70

South Korea 13.37% [12.59%]85,136 Hyundai Motor Preference Shares 5,679 1.70 52,663 LG Chem Preference Shares 8,671 2.59 11,176 Samsung Electronics Preference Shares 14,997 4.48

285,246 SK Hynix 15,389 4.60 44,736 13.37


77



Taiwan 9.46% [10.42%]2,056,000 Chroma ATE 5,332 1.59

648,000 Ginko International 3,329 1.00 2,180,000 Hon Hai Precision Industry 5,707 1.71

626,000 MediaTek 4,478 1.34 1,113,000 Merida Industry 3,693 1.10

325,400 Taiwan Semiconductor Manufacturing ADR* 9,110 2.72 31,649 9.46

Turkey 1.47% [1.63%]1,212,218 Ulker Biskuvi Sanayi 4,901 1.47

4,901 1.47

United Arab Emirates 1.06% [1.45%]15,386,483 Air Arabia 3,560 1.06

3,560 1.06

United Kingdom 4.02% [2.94%]104,084 BGEO 3,393 1.01

7,065,000 Jupiter Emerging & Frontier Income Trust 7,630 2.28 89,239 NMCHealth 2,453 0.73

13,476 4.02

United States 3.65% [2.86%]926,027 Bizlink 6,407 1.92 548,722 Eros International 5,787 1.73

12,194 3.65

Portfolio of investments 334,582 100.02 Net other assets (78) (0.02)Net assets 334,504 100.00

The investments have been valued in accordance with note 1(h) of the Accounting Polices and Financial Instruments.



* American Depositary Receipt.

** Global Depositary Receipt.

*** Real Estate Investment Trust.




78


01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 45,767 70,785 Revenue 3 7,018 4,615 Expenses 4 (2,510) (1,599)Interest payable and similar charges 5 – (1)

Net revenue before taxation 4,508 3,015 Taxation 6 (714) (416)Net revenue after taxation 3,794 2,599 Total return before distributions 49,561 73,384 Distributions 7 (3,896) (2,625)Change in net assets attributable to Shareholdersfrom investment activities 45,665 70,759

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000


Amounts receivable on issue of Shares 70,527 42,102 Amounts payable on cancellation

of Shares (12,221) (11,686)58,306 30,416



Statement of Change in Net Assets Attributable to ShareholdersFor the year ended 30 September 2017


79



30/09/17 30/09/16Note £’000 £’000 £’000 £’000


Investments 334,582 231,363 Current assets:

Debtors 8 1,685 1,010Cash and bank balances 9 1,348 308


Distribution payable (2,641) (1,874)Other creditors 10 (470) (274)


80




£’000 £’000

The net capital gains during the year comprise:Currency losses (129) (245)Forward currency contracts (3) 134 Non-derivative securities 45,940 70,928 Transaction charges (41) (32)Net capital gains 45,767 70,785

3. Revenue01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Bank interest – 1 Overseas dividends 6,900 4,518 UK dividends 118 95 Stock lending income – 1 Total revenue 7,018 4,615

4. Expenses01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000


AMC fees 2,073 1,330 2,073 1,330



371 198 Other expensesAudit fees 9 9 Professional fees* 19 15 Publication fees 1 1 Custodian out of pocket expenses 11 20 ADR fees 26 26

66 71 Total expenses 2,510 1,599 Audit fees are £7,700 ex Vat (2016: £7,550).* Includes tax service fee paid to Deloitte LLP £9,969 (2016: £6,880).


81


5. Interest payable and similar charges01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Interest – 1 Total interest payable and similar charges – 1

6. Taxation


£’000 £’000

Irrecoverable overseas tax 638 416Overseas capital gains tax 76 –Total taxation for the year (Note 6 (b)) 714 416



01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 4,508 3,015 Net revenue for the year multiplied

by the standard rate of corporation tax 902 603 Effects of:Expenses not deductible for tax purposes 5 –Irrecoverable overseas tax 638 390 Movement in excess management expenses 248 156 Overseas capital gains tax in capital 76 26 Overseas tax expensed (25) (12)Revenue not subject to corporation tax (1,130) (747)Total tax charge for the year 714 416







82


7. Distributions


01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Interim 1,384 747 Final 2,641 1,874 Add: Revenue paid on cancellation of Shares 36 67 Deduct: Revenue received on creation of Shares (165) (63)Net distribution for the year 3,896 2,625


Net revenue after taxation 3,794 2,599 Expenses charged to capital 26 –Capital gains tax 76 26 Net distribution for the year 3,896 2,625


8. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 97 20 Amounts receivable for creation of Shares 820 989 Sales awaiting settlement 767 –Prepaid expenses 1 1 Total debtors 1,685 1,010


£’000 £’000



83


10. Other creditors30/09/17 30/09/16

£’000 £’000

Amounts payable for cancellation of Shares – 83 – 83


211 141 Depositary and AgentsDepositary fees 16 5 Safe custody fees 205 32 Transaction charges 28 3


10 10 Total other creditors 470 274










84


12. Share Classes


%











85





Changes in exchange rates would have no material impact on the valuation of foreign currencyfinancial assets or liabilities as at the balance sheet date. Consequently, no sensitivity analysishas been presented.The table below shows the foreign currency risk profile at the balance sheet date:



Brazilian Real 23,312 22,307Canadian Dollar – 3,161Colombian Peso 6,292 –Hong Kong Dollar 40,171 27,052Indian Rupee 29,614 18,316Indonesian Rupiah 16,180 9,511Malaysian Ringgit – 2,339Mexican Peso 12,313 5,959Nigerian Naira 7,205 1,847Philippine Peso 8,819 3,105Russian Ruble 5,772 2,508South African Rand 22,382 15,127South Korean Won 44,735 26,124Taiwan Dollar 28,945 21,005Turkish Lira 4,901 3,747UAE Dirham 3,560 3,352US Dollar 68,016 59,286Total foreign currency exposure 322,217 224,746 Sterling 12,287 5,787 Total net assets 334,504 230,533


(b) Interest rate risk profile of financial assets and liabilitiesThe Fund does not invest in either fixed or floating rate securities and interest rate riskexposure is restricted to interest receivable on bank deposits or payable on bank overdraftpositions which will be affected by fluctuations in interest rates.




86



£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the year

before transaction costs:Equities 147,711 88,129 Collective Investment Schemes 7,065 –

154,776 88,129 Commissions – Equities 232 96 Taxes – Equities 99 69 Total purchase costs 331 165 Gross purchase total 155,107 88,294

Analysis of total sale costsGross sales in the year

before transaction costs:Equities 98,040 52,481

98,040 52,481 Commissions – Equities (139) (82)Taxes – Equities (73) (41)Total sale costs (212) (123)Total sales net of transaction costs 97,828 52,358



01/10/16 to 01/10/15 to30/09/17 30/09/16






01/10/16 to 01/10/15 to30/09/17 30/09/16





87






Assets Liabilities Assets Liabilities£’000 £’000 £’000 £’000

Valuation techniqueLevel 1: The unadjusted quoted price in an active marketfor identical assets or liabilities 334,582 – 231,363 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly – – – –Level 3: Inputs are unobservable(ie for which market data isunavailable) for the asset or liability – – – –

334,582 – 231,363 –

88













89

Omnis European Equity Fund



Investment Policy

The Fund intends to invest primarily in equities issued by companies incorporated in or havingsignificant operations in Europe, excluding the United Kingdom. The Fund may invest in othertransferable securities such as warrants and deposits, and may also invest in money marketinstruments and units in collective investment schemes. No more than 10% of the Property of theFund will be invested in other collective investment schemes.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives mayalso be used for the purposes of hedging and efficient portfolio management. It is not anticipatedthat such use of derivatives will have a significant effect on the risk profile of the Fund.

Investment Review

Over the period the Omnis European Equity Fund returned 18.09% and the benchmark (FTSE WorldEurope Ex UK) returned 22.70% [source: Financial Express, bid to bid, net income reinvested].

Being underweight financials while overweight more defensive sectors like healthcare has beenpainful, but within this sector allocation our stock selection has proved beneficial. Actelion, the Swisspharmaceutical company, was the top contributor to performance, following confirmation of Johnson& Johnson’s successful $30bn cash bid for the company. The holding returned over 50% in sterlingterms over the period.

A number of other holdings in the Fund performed well following strong earnings, such asAroundtown, Kion and Kingspan. Other strong performers included Euronext, which benefited fromincreased trading volumes; ING, from the financials rally; Kion, on positive margin developments;and ASML, on better-than-expected results.

Pandora detracted from performance over the quarter. After years of growth, sentiment aroundtheir North American business has fallen, following negative read-across from Tiffany & Co andSignet Jewelers in the US. We recognise that growth in mature markets such as the UK and the USwill not provide the same kind of historical growth as previously seen in less mature markets likeAsia and even continental Europe. However, we believe that Pandora is being valued as being ex-growth, which we do not believe is an accurate assessment.

Media-related stocks also performed poorly over the period. ProSiebenSat.1 detracted fromperformance after the company reduced its revenue guidance for Q3 in its German-speakingbroadcasting segment. Publicis’ share price also fell despite meeting earnings expectations aftercompetitor WPP reduced its growth forecast.

Merger & acquisition (M&A) activity was a significant driver of performance over the twelve months,notably from the likes of Actelion and Syngenta, two holdings which we took profits on over April,following Syngenta’s acquisition by ChemChina and Actelion’s acquisition by Johnson & Johnson. Interms of other trading activity, we sold out of Altice – which had outperformed market expectationsfollowing its US expansion – as we were concerned about the company’s seemingly unlimitedappetite for M&A in the US. We sold out of Novartis, following weak uptake of a key new drug inits portfolio, ongoing margin weakness and failure to turn around the Alcon eye care business. Wealso reduced the fund’s position in Publicis, as organic growth across the media sector as a wholeproved weaker than expected.


90


Investment Review (continued)

We recycled some of these proceeds into Elis, Aroundtown and Kingspan, strong performers overthe period. We also added Prosegur Cash in April, a Madrid-headquartered cash handling business.Whereas many investors are paying increasingly high premiums for plays on the cash digitisationtrend, this stock trades at a significant discount to peers. However, it operates in areas, such asLatin America, where the cash handling market is undergoing significant growth. We also boughtinto Innogy over October 2016 as we wanted to participate in the company’s IPO at attractivevaluations.

Market Overview

European equity markets rose over the period, despite high levels of political uncertainty whichdominated the year under review. The period began with the election of Donald Trump in the USelection. Optimism over the potential for fiscal stimulus, rising rates, and financial deregulation ledto a global equity market rally.

Political uncertainty also dominated European markets during the first half of 2017, as nationalistpoliticians appeared to continue to garner support. However, concerns somewhat faded followingthe election of moderate, pro-EU Emmanuel Macron in France’s presidential election in June, whichled to a rally in European equities.

Financials, banks in particular, led performance over the year. This reflects supportive earningsresults; positive stress test results; continued restructuring progress; positive sentiment from Italianand Spanish bank recapitalisation measures; and expectations of rate rises.

Inflationary pressures rose in 2017 following better-than-expected macroeconomic data acrossmany countries in Europe. In June, Mario Draghi of the ECB hinted that the central bank may betaking a more hawkish position, commenting that the eurozone was heading towards “reflation”.This led to a global dip in equity and bond markets, before recovering again in July. The euro roseover the period, strengthening in August following strong economic data and the unwinding of the“Trump trade”. This led equity markets to decline, but they recovered again in September, despiteescalating tension in North Korea and the outcome of the Catalonian referendum on independence.Against the backdrop of positive sentiment over robust GDP growth globally, it appeared thatinvestors took any setback as an opportunity to buy into markets.

Outlook

As we enter the next reporting season, we anticipate the usual volatility in individual stocks. Flowsand momentum in European equities remain high but we believe there is complacency around thevaluation of growth companies, particular mid-caps, which has led valuations to reach all-time highsin many cases. We remain committed to a disciplined approach to discovering stock opportunitiesthat may be missed by the market while maintaining a portfolio of reasonably priced, qualitybusinesses.

Investment ManagerJupiter Asset Management Limited13 October 2017


91


A Income30/09/2017 30/09/2016

(p) (p)

Change in net assets per ShareOpening net asset value per share 111.92 100.00**Return before operating charges* 19.90 12.32 Operating charges (1.17) (0.40)Return after operating charges 18.73 11.92

Distributions (1.70) –Closing net asset value per share 128.95 111.92

* after direct transaction costs of: 0.35 0.23

PerformanceReturn after operating charges 16.73% 11.92%

Other informationClosing net asset value (£’000) 80,654 18,483Closing number of shares 62,547,376 16,514,942Operating charges 0.95% 0.90%Direct transaction costs 0.28% 0.22%

Prices (p)Highest share price 133.60 112.94Lowest share price 103.48 97.84

** Share class A Income launched on 3 May 2016 at a price of 100 pence.


92




Date (%) (%) (%) (%)








Risk Warning





Higher riskLower risk


93



Austria 2.47% [1.99%]30,151 Andritz 1,300 1.61 6,375 Lenzing 690 0.86

1,990 2.47

Belgium 3.27% [1.45%]38,345 Ageas 1,343 1.67 20,970 Umicore 1,293 1.60

2,636 3.27

Denmark 6.88% [7.85%]44,689 ISS 1,343 1.67 55,495 Novo Nordisk 1,979 2.45 30,265 Pandora 2,224 2.76

5,546 6.88

Finland 3.29% [3.52%]596,241 Nokia 2,656 3.29

2,656 3.29

France 18.39% [22.18%]26,181 Amundi 1,616 2.00 63,413 Bureau Veritas 1,216 1.51 66,163 Edenred 1,338 1.66 52,309 Elis 1,044 1.29 13,900 Iliad 2,748 3.41 4,795 LVMH Moet Hennessy Louis Vuitton 985 1.22

18,149 Publicis 945 1.17 69,506 SPIE 1,425 1.77 20,105 Valeo 1,112 1.38 33,908 Vinci 2,402 2.98

14,831 18.39

Germany 23.41% [19.17%]238,346 Aroundtown 1,271 1.58 23,740 Bayer 2,407 2.98 43,285 Brenntag 1,794 2.22 7,396 Continental 1,399 1.73

41,044 Fresenius Medical Care 2,993 3.71 21,197 Gerresheimer 1,221 1.51 63,706 Infineon Technologies 1,193 1.48 39,387 Innogy 1,304 1.62 14,192 KION 1,012 1.26 52,390 ProSiebenSat.1 Media 1,331 1.65 36,294 SAP 2,959 3.67

18,884 23.41


94



Ireland 6.86% [2.98%]87,012 CRH 2,463 3.05 37,273 Kingspan 1,178 1.46

132,416 Ryanair 1,897 2.35 5,538 6.86

Italy 2.46% [0.00%]124,981 UniCredit 1,984 2.46

1,984 2.46

Luxembourg 0.96% [1.27%]19,857 Aperam 772 0.96

772 0.96

Netherlands 12.48% [12.09%]10,360 ASML 1,315 1.63 36,019 Euronext 1,633 2.02 46,660 Flow Traders 935 1.16 52,348 GrandVision 986 1.22 30,397 Heineken 2,238 2.78

215,726 ING 2,962 3.67 10,069 12.48

Spain 3.02% [1.61%]23,353 Amadeus IT 1,131 1.40

584,200 Prosegur Cash 1,307 1.62 2,438 3.02

Sweden 5.98% [3.15%]64,742 Assa Abloy 1,100 1.36

137,390 Essity 2,774 3.44 150,568 Svenska Cellulosa 948 1.18

4,822 5.98

Switzerland 5.90% [13.47%]15,184 Cie Financiere Richemont 1,035 1.28 15,511 Roche 2,952 3.66

139 Sika 771 0.96 4,758 5.90

United Kingdom 3.30% [1.30%]167,744 RELX 2,661 3.30

2,661 3.30

Portfolio of investments 79,585 98.67 Net other assets 1,069 1.33 Net assets 80,654 100.00




Gross purchases for the year/period: £68,438,000 [2016: £25,571,000] (See note 14).

Total sales net of transaction costs for the year/period: £12,524,000 [2016: £9,523,000] (See note 14).


95


01/10/16 to 30/09/17 03/05/16 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 6,532 1,011 Revenue 3 1,263 31

Expenses 4 (403) (35)Net revenue/(expense) before taxation 860 (4)Taxation 5 (104) (3)Net revenue/(expense) after taxation 756 (7)Total return before distributions 7,288 1,004 Distributions 6 (756) 1 Change in net assets attributable to Shareholdersfrom investment activities 6,532 1,005

01/10/16 to 30/09/17 03/05/16 to 30/09/16£’000 £’000 £’000 £’000



of Shares (111) –55,639 17,478





96


30/09/17 30/09/16Note £’000 £’000 £’000 £’000



Debtors 7 701 859 Cash and bank balances 8 1,460 670


Distribution payable (993) –Other creditors 9 (99) (56)

Total creditors (1,092) (56)Total liabilities (1,092) (56)Net assets attributable to Shareholders 80,654 18,483


97




£’000 £’000

The net capital gains during the year comprise:Currency (losses)/gains (75) 50Non-derivative securities 6,669 962Transaction charges (62) (1)Net capital gains 6,532 1,011

3. Revenue01/10/16 to 03/05/16 to30/09/17 30/09/16

£’000 £’000

Overseas dividends 1,261 23 Rebates received from underlying funds 2 8 Total revenue 1,263 31

4. Expenses01/10/16 to 03/05/16 to30/09/17 30/09/16

£’000 £’000


AMC fees 365 24 Rebate for fixed expenses – (2)

365 22Payable to the Depositary, associates of theDepositary and agents of either of them

Depositary fees 14 1Safe custody fees 10 –

24 1 Other expensesAudit fees 9 7Professional fees 5 3Publication fees – 2

14 12Total expenses 403 35

Audit fees are £7,700 ex Vat (2016: £6,040).


98


5. Taxation


£’000 £’000



The tax assessed for the year is different from that calculated when the standard rate ofcorporation tax for an open ended investment company of 20% (2016: 20%) is applied tothe net revenue/(expense) before taxation. The differences are explained below:

01/10/16 to 03/05/16 to30/09/17 30/09/16

£’000 £’000

Net revenue/(expense) before taxation 860 (4)Net revenue/(expense) for the year multiplied by

the standard rate of corporation tax 172 (1)Effects of:Irrecoverable overseas tax 104 3 Movement in excess management expenses 77 5 Revenue not subject to corporation tax (249) (4)Total tax charge for the year 104 3





At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £82,695 (2016: £5,236) in relation to surplus management expenses. It is unlikelythat the Fund will generate sufficient taxable profits in the future to utilise this amount andtherefore no deferred tax asset has been recognised in the year.


99


6. Distributions


01/10/16 to 03/05/16 to 30/09/17 30/09/16

£’000 £’000

Interim 42 –Final 993 –Add: Revenue paid on cancellation of Shares 2 –Deduct: Revenue received on creation of Shares (281) (1)Net distribution for the year/period 756 (1)Reconciliation of net revenue/(expense)after taxation to distributions

Net revenue/(expense) after taxation 756 (7)Revenue deficit – 6 Net distribution for the year 756 (1)


7. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 18 –Amounts due for rebates from underlying funds – 1Amounts receivable for creation of Shares 587 725Overseas withholding tax recoverable 96 2Sales awaiting settlement – 131Total debtors 701 859


£’000 £’000

Cash and bank balances 1,460 670Total cash and bank balances 1,460 670


100



£’000 £’000

Purchases awaiting settlement – 36 – 36


49 10 Depositary and AgentsDepositary fees 4 Safe custody fees 8 Transaction charges 29 1

41 1Other accrued expensesAudit fees 9 7 Publication fees – 2

9 9 Total other creditors 99 56









11. Share Classes


%





Share Class A Income 16,514,942 46,117,746 (85,312) – 62,547,376


101













Danish Krone 5,563 1,415 Euro 64,540 12,618 Swedish Krona 4,821 582 Swiss Franc 4,780 2,492US Dollar 657 –Total foreign currency exposure 80,361 17,107 Sterling 293 1,376 Total net assets 80,654 18,483







102



£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the period

before transaction costs:Equities 68,313 16,946Collective Investment Schemes – 8,608

68,313 25,554Commissions – Equities 38 4 Taxes – Equities 87 13 Total purchase costs 125 17Gross purchase total 68,438 25,571

Analysis of total sale costsGross sales in the period

before transaction costsEquities 12,537 427Collective Investment Schemes – 9,096

12,537 9,523Commissions – Equities (13) –Total sale costs (13) –Total sales net of transaction costs 12,524 9,523



For the Fund’s investment in Collective Investment Scheme holdings there will potentiallybe dealing spread costs applicable to purchases and sales. However, additionally there areindirect transaction costs suffered in those underlying funds, throughout the holding periodfor the instruments, which are not separately identifiable and do not form part of theanalysis above.


103


14. Portfolio transaction costs (continued)01/10/16 to 03/05/16 to30/09/17 30/09/16






01/10/16 to 03/05/16 to30/09/17 30/09/16








Valuation techniqueLevel 1: The unadjusted quotedprice in an active market foridentical assets or liabilities 79,585 – 17,010 –Level 2: Inputs other than quotedprices included within Level 1 thatare observable for the asset orliability, either directly or indirectly – – – –Level 3: Inputs are unobservable(ie for which market data is unavailable) for the asset or liability – – – –

79,585 – 17,010 –


104







Share Class A IncomeGroup 1 0.1110 – 0.1110 n/aGroup 2 0.1087 0.0023 0.1110 n/a






105

Omnis Global Bond Fund


To achieve a return of a combination of income and capital growth.

Investment Policy

The Fund intends to invest (directly or indirectly) primarily in non-Sterling denominated governmentand non-government fixed and variable interest rate securities. The Fund may also invest in othertransferable securities (for example, Sterling denominated fixed and variable interest rate securities),units in collective investment schemes, money market instruments, deposits, derivative instrumentsand warrants as detailed in the Prospectus. No more than 10% of the Scheme Property of the Fundwill be invested in other collective investment schemes.


Investment Review

Over the period the Omnis Global Bond Fund returned -4.22% and the benchmark (BoA ML GlobalBroad Market) returned -4.43% [source: Financial Express, bid to bid, net income reinvested].

Bond yields have increased on the back of a mixture of higher political and interest rate uncertaintyin the past year. Sterling volatility also weighed on the index as the value of the pound fluctuated,but strengthened overall during the period.

The first six months of the period were driven by the market’s appraisal of the US election outcomein Q4 2016. Anticipation of expansive US fiscal policy and protectionist trade stance contributed tothe increased demand for risky assets, such as credit and equities, which continued into Q1 2017.However, a lack of tangible pro-growth policies left the market questioning the ability of the newadministration to further support the growth trajectory of the US. As a result, expectations of higherinflation and higher rates began to be pared back in the US during Q2 2017. The pull back fromtrade protectionism also supported emerging market assets, which like corporate bonds boostedperformance during the past 12 months.

The second quarter also brought political challenges closer to home. The snap UK election in Juneincreased the uncertainty around the ability to negotiate Brexit. Accordingly, June marked the lowpoint for UK government bond yields, which had declined since January as the market anticipated‘lower for longer’ policy from the Bank of England. This trend was a positive for portfolioperformance. However, the valuation of sterling increased as the market expected a ‘softer’ Brexitfrom a political perspective. Sterling rallied particularly versus the dollar, which had a negativeimpact on returns given the Fund’s underweight in sterling versus the benchmark.

Continued political uncertainty in Q3 2017 was joined by global central banks signalling an intentionto begin removing policy accommodation. The net outcome over the quarter was a hawkish shift,albeit the only concrete policy announcement came from the US Federal Reserve and itsconfirmation of the balance sheet reduction. Anticipation of the announcement was likely acontributing factor in the upwards move in yields in September, which reversed the narrowing seenin August. Prior to this, markets had arguably been underestimating the pace of tightening. HigherUS yields were positive for performance later in the quarter having been a headwind to returnspreviously.

In the UK, the more hawkish turn of the Bank of England occurred against a backdrop of abovetarget inflation and low unemployment, leading to a significant increase in UK government bondyields and a rally in sterling against both the euro and the dollar.



106


Market Overview

The challenge for fixed income investors over the past 12 months has arguably been to reconcilegrowth and upside risks to consumer inflation with low yields and low realised wage growth. Thisobstacle has not dissuaded central banks from edging towards the removal of policyaccommodation.

Having increased rates in December 2016, as well as March and June 2017, the Federal Reserveannounced it will commence the reduction of its balance sheet at a rate of $10bn per month fromOctober. The European Central Bank gave indications it is preparing to reduce the pace ofquantitative easing. Meanwhile the Bank of England openly talked about rate rises although, amidslowing growth and unconstructive Brexit negotiations, markets were little moved at the time. Withinflation data coming in significantly above target, governor Carney and several members of theMonetary Policy Committee gave a firm indication a rate hike was under discussion.

Global bond yields increased in the US, Europe and UK over the period, with demand for corporateand emerging market assets continuing to support prices for these assets. This demand helped tokeep a cap on market volatility, with fixed income markets remaining range bound over the period.The new challenge for investors is therefore to understand what will be the catalyst to break out ofrecent ranges.

Outlook

A defining characteristic of markets in 2017 has been that despite a clear hawkish shift from centralbanks, volatility continued to decline.

We are beginning to see of the unwinding of global central bank liquidity. The most likely pathremains a gradual pace of tightening and stimulus withdrawal, but as inflation and monetary policynormalise, volatility is likely to rise. Tantrum-type episodes are a more significant risk. Oneinvestment implication of this is to avoid crowded trades, particularly those investors have beendrawn to in an increasingly challenging search for yield. Crowded trades are particularly vulnerableto a global repricing of risk and lower liquidity.

A key consideration moving forward is that central banks appear to have become more prepared tosurprise markets. Both the Bank of Canada and the Bank of England have displayed such tendenciesover the summer. This is potentially exacerbated by markets that seemingly remain behind thecurve in terms of the shifting global policy regime.

Inflation globally should begin to normalise, as strong growth reduces global slack, but aggressivetightening by central banks seems unlikely. Broadly, the collective stance of central banks seems tonow comprise greater tolerance for volatility and asset price weakness, but intolerance for significantdislocations.

The prospect of a large fiscal easing programme from the Trump administration has recently beengaining momentum and is a potential source of volatility. A tax package is ultimately likely to bedelivered given the political incentives and could potentially dis-anchor inflation expectations, butit is likely to be a complicated and protracted process.

The current economic expansion is already above average in terms of its duration relative to history.There is little evidence to be concerned over the possibility of recession, but given the degree ofuncertainty abroad, it is a risk which bears vigilant monitoring. Furthermore, the risk posed by arapid increase in inflation expectations is that central banks would be obliged to counter with tighterpolicy, resulting in a negative scenario for risk assets.

107



Given the likely rise in volatility and unattractive valuations in many assets, portfolio constructionand balancing risks is critical. The overall duration stance and exposure to major developed globalbond markets will be actively managed in terms of magnitude and on a country by country basis.Some of the most attractive opportunities currently are in emerging markets and securitised sectorswhere selectivity is crucial. Emerging markets have had a prolonged run of solid gains and wouldbe vulnerable in a sustained dollar rally. Pockets of credit also remain attractive and would benefitfrom higher growth expectations in the event of US fiscal stimulus.

Investment ManagerSchroder Investment Management Limited13 October 2017

108



Purchases Sales

Portfolio Name Cost £’000 Portfolio Name Proceeds £’000United States Treasury Note/Bond United States Treasury Note/Bond 0.75% 15/02/2019 11,765 0.75% 15/02/2019 11,789 United States Treasury Inflation Indexed United States Treasury Note/Bond Bonds 0.125% 15/07/2026 11,155 0.875% 15/06/2019 10,518 United States Treasury Note/Bond United States Treasury Note/Bond 1.75% 30/09/2022 10,274 1.875% 30/11/2021 9,740 United States Treasury Note/Bond United States Treasury Inflation Indexed1.875% 30/11/2021 10,186 Bonds 0.125% 15/07/2026 7,336 United States Treasury Note/Bond Spain Government Bond 1.5%1% 31/05/2018 7,844 30/04/2027 5,986 United States Treasury Bill 0% 25/01/2018 7,511 Italian Government Bonds 1% 15/10/2024 5,484 Spain Government Bond 1.5% 30/04/2027 5,869 United States Treasury Bill 0% 27/07/2017 5,328 France Government Bond OAT 2% UK Treasury 1.5% 22/07/2026 4,687 25/05/2048 5,857 United States Treasury Bill 0% 27/04/2017 4,088 United States Treasury Note/Bond France Government Bond OAT 2% 1.625% 15/02/2026 5,630 25/05/2048 3,952 United States Treasury Bill 0% 27/07/2017 5,392

109


A Income30/09/2017 30/09/2016 30/09/2015

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 127.53 102.42 101.57Return before operating charges* (4.77) 27.59 2.82Operating charges (0.68) (0.60) (0.56)Return after operating charges (5.45) 26.99 2.26



PerformanceReturn after operating charges (4.27%) 26.35% 2.23%




110


Ongoing Charge FigureTotal


Date (%) (%) (%) (%)







• The Fund appears as a “4” on the scale. This is because the Fund invests in fixed incomeinvestments whose values do not fluctuate widely.

Risk Warning







111



Africa 0.21% [0.21%]AUD 750,000 African Development Bank 2.75% 03/02/2020 442 0.14GBP 100,000 Investec 2016 4.5% 05/05/2022 107 0.03GBP 124,000 Investec 2017 4.5% 05/05/2022 133 0.04

682 0.21

Australia 1.89% [1.42%]AUD 7,725,000 Australia Government Bond 5.5% 21/04/2023 5,223 1.69

EUR 100,000 BHP Billiton Finance 5.625% 22/10/2079 106 0.03AUD 500,000 New South Wales Treasury 6% 01/03/2022 335 0.11EUR 200,000 Westpac Banking 1.5% 24/03/2021 185 0.06

5,849 1.89

Austria 0.07% [0.05%]EUR 100,000 UNIQA Insurance 6% 27/07/2046 107 0.03EUR 100,000 UNIQA Insurance 6.875% 31/07/2043 109 0.04

216 0.07

Barbados 0.00% [0.75%]Belgium 1.16% [1.05%]

EUR 500,000 Anheuser-Busch FRN 0.049% 29/03/2018 441 0.14EUR 40,000 Anheuser-Busch 1.5% 17/03/2025 37 0.01

EUR 100,000 Anheuser-Busch 2% 17/03/2028 94 0.03EUR 100,000 Belfius Bank 0.75% 12/09/2022 88 0.03

EUR 2,350,000 Belgium Government International Bond0.5% 22/10/2024 2,103 0.68

USD 1,110,000 Belgium Government International Bond 1.125%05/03/2018 826 0.27

3,589 1.16

Bermuda 0.00% [1.68%]Brazil 0.15% [0.24%]

USD 600,000 Brazilian Government International Bond 4.875%22/01/2021 478 0.15

478 0.15

Canada 3.43% [3.72%]GBP 1,000,000 Bank of Montreal FRN 0.47613% 29/01/2018 1,000 0.32

USD 190,000 Bank of Nova Scotia 2.45% 22/03/2021 142 0.05CAD 5,500,000 Canada Housing Trust No 1 2.9% 15/06/2024 3,404 1.10CAD 2,539,000 Canadian Government Bond 1.5% 01/06/2026 1,447 0.47CAD 3,157,000 Canadian Government Bond 3.5% 01/06/2020 1,976 0.64

CAD 668,000 Canadian Government Bond 3.5% 01/12/2045 479 0.15EUR 100,000 Canadian Imperial Bank of Commerce 0% 25/07/2022 87 0.03EUR 230,000 Canadian Imperial Bank of Commerce 0.375% 15/10/2019 205 0.07USD 350,000 Canadian Natural Resources 3.85% 01/06/2027 262 0.08USD 507,000 Cenovus Energy 4.25% 15/04/2027 372 0.12USD 320,000 Enbridge 6% 15/01/2077 252 0.08


112



Canada 3.43% [3.72%] (continued)USD 300,000 Manulife Financial 4.061% 24/02/2032 224 0.07USD 300,000 Province of Quebec Canada 2.875% 16/10/2024 229 0.07USD 750,000 Royal Bank of Canada 1.875% 05/02/2020 557 0.18

10,636 3.43

Denmark 0.17% [0.32%]DKK 4,000,000 Denmark Government Bond 1.5% 15/11/2023 518 0.17

518 0.17

Finland 0.03% [0.00%]EUR 101,000 Kojamo 1.5% 19/06/2024 89 0.03

89 0.03

France 7.80% [6.65%]EUR 200,000 Accor 1.25% 25/01/2024 177 0.06EUR 100,000 Autoroutes du Sud de la France 1.25% 18/01/2027 89 0.03GBP 100,000 AXA 5.453% Perpetual 113 0.04USD 850,000 Banque Federative du Credit Mutuel 2.7% 20/07/2022 634 0.20USD 250,000 BPCE 2.25% 27/01/2020 187 0.06EUR 100,000 BPCE 2.75% 30/11/2027 94 0.03USD 550,000 BPCE 3% 22/05/2022 411 0.13GBP 100,000 BPCE 5.25% 16/04/2029 117 0.04EUR 200,000 BPCE SFH 1% 08/06/2029 174 0.06

EUR 2,700,000 Caisse d’Amortissement de la Dette Sociale 0.125%25/11/2022 2,395 0.77

USD 1,000,000 Caisse d’Amortissement de la Dette Sociale 1.875%28/07/2020 744 0.24

USD 870,000 Caisse d’Amortissement de la Dette Sociale 1.875%12/02/2022 641 0.21

USD 300,000 Caisse d’Amortissement de la Dette Sociale 3.375%20/03/2024 236 0.08

EUR 200,000 Capgemini 1.75% 01/07/2020 183 0.06EUR 200,000 Carmila 2.375% 16/09/2024 188 0.06EUR 100,000 Cie de Financement Foncier 0.125% 18/02/2020 89 0.03EUR 100,000 Coentreprise de Transport d’Electricite 2.125% 29/07/2032 90 0.03EUR 940,000 Council Of Europe Development Bank 1.75% 24/04/2024 910 0.29GBP 300,000 Council Of Europe Development Bank 1.875% 22/12/2018 304 0.10EUR 100,000 Credit Agricole 1.875% 20/12/2026 91 0.03EUR 100,000 Credit Agricole Assurances 4.25% Perpetual 95 0.03EUR 100,000 Credit Agricole Assurances 4.5% Perpetual 97 0.03EUR 100,000 Electricite de France 5% Perpetual 96 0.03GBP 100,000 Electricite de France 6% Perpetual 106 0.03

EUR 2,507,000 France Government Bond OAT 2% 25/05/2048 2,288 0.74EUR 8,480,000 France Government Bond OAT 2.25% 25/05/2024 8,502 2.74

EUR 100,000 Fromageries Bel 1.5% 18/04/2024 90 0.03


113




France 7.80% [6.65%] (continued)EUR 100,000 Holding d’Infrastructures de Transport SAS 2.25%

24/03/2025 95 0.03EUR 450,000 HSBC SFH France 0.375% 11/03/2022 403 0.13EUR 100,000 Ingenico 1.625% 13/09/2024 88 0.03EUR 100,000 Orange 5% Perpetual 101 0.03GBP 100,000 Orange 5.75% Perpetual 111 0.04EUR 73,000 RCI Banque 0.75% 26/09/2022 64 0.02

EUR 100,000 SEB 1.5% 31/05/2024 89 0.03USD 2,000,000 SFIL 2% 30/06/2020 1,492 0.48

EUR 300,000 Societe Fonciere Lyonnaise 2.25% 16/11/2022 283 0.09EUR 100,000 TDF Infrastructure SAS 2.5% 07/04/2026 92 0.03EUR 100,000 TDF Infrastructure SAS 2.875% 19/10/2022 96 0.03EUR 200,000 Teleperformance 1.5% 03/04/2024 178 0.06EUR 100,000 TOTAL 2.25% Perpetual 91 0.03EUR 300,000 TOTAL 2.708% Perpetual 273 0.09

EUR 1,700,000 UNEDIC ASSEO 1.25% 28/03/2027 1,562 0.5024,159 7.80

Germany 5.45% [8.50%]EUR 100,000 ADO Properties 1.5% 26/07/2024 88 0.03

EUR 2,600,000 Bundesobligation 0% 08/04/2022 2,328 0.75EUR 3,550,000 Bundesrepublik Deutschland 0.25% 15/02/2027 3,088 1.00EUR 1,800,000 Bundesrepublik Deutschland 2.5% 15/08/2046 2,064 0.67

EUR 100,000 Commerzbank 7.75% 16/03/2021 108 0.03EUR 100,000 Deutsche Bahn Finance 0.875% 11/07/2031 82 0.03EUR 110,000 Deutsche Wohnen 1.375% 24/07/2020 100 0.03EUR 100,000 Eurogrid 1.625% 03/11/2023 93 0.03

EUR 3,170,000 Kreditanstalt fuer Wiederaufbau 0.625% 22/02/2027 2,800 0.90USD 2,000,000 Kreditanstalt fuer Wiederaufbau 2% 02/05/2025 1,452 0.47USD 1,800,000 Landesbank Baden-Wuerttemberg 2.125% 31/01/2020 1,343 0.43USD 2,700,000 Landeskreditbank Baden-Wuerttemberg Foerderbank

1.375% 21/07/2021 1,965 0.63USD 750,000 Landwirtschaftliche Rentenbank 2% 13/01/2025 545 0.18USD 700,000 Landwirtschaftliche Rentenbank 2.375% 10/06/2025 521 0.17AUD 200,000 Landwirtschaftliche Rentenbank 4.75% 06/05/2026 130 0.04GBP 100,000 RWE 7% Perpetual 107 0.03EUR 122,000 Volkswagen Leasing 1.375% 20/01/2025 107 0.03

16,921 5.45

114




Guernsey 0.09% [0.09%]EUR 200,000 Credit Suisse 1% 12/03/2019 179 0.06EUR 100,000 Credit Suisse Funding Guernsey 1.25% 14/04/2022 91 0.03

270 0.09

Iceland 0.09% [0.04%]EUR 103,000 Arion Banki 0.75% 29/06/2020 91 0.03EUR 100,000 Arion Banki 2.5% 26/04/2019 91 0.03EUR 100,000 Islandsbanki 1.75% 07/09/2020 91 0.03

273 0.09

Ireland 0.52% [0.66%]USD 350,000 AerCap Ireland Trust 3.5% 26/05/2022 267 0.09EUR 100,000 Allied Irish Banks 4.125% 26/11/2025 95 0.03EUR 191,000 Bank of Ireland 1.25% 09/04/2020 173 0.06USD 204,000 Bank of Ireland 4.125% 19/09/2027 151 0.05EUR 100,000 CRH Finance 1.375% 18/10/2028 86 0.03GBP 50,000 ESB Finance 6.5% 05/03/2020 56 0.02

EUR 100,000 FCA Bank Ireland 2.875% 26/01/2018 89 0.03EUR 100,000 GAS Networks Ireland 1.375% 05/12/2026 90 0.03USD 620,000 Shire Acquisitions Investments Ireland DAC 2.4%

23/09/2021 459 0.15GBP 85,118 Small Business Origination Loan Trust 2016-1 DAC

FRN 2.4545% 15/12/2024 85 0.031,551 0.52

Italy 2.79% [6.76%]GBP 100,000 Assicurazioni Generali 6.416% Perpetual 109 0.04EUR 100,000 Italgas 1.625% 18/01/2029 88 0.03EUR 880,000 Italy Buoni Poliennali Del Tesoro 0.35% 15/06/2020 781 0.25

EUR 1,430,000 Italy Buoni Poliennali Del Tesoro 0.95% 15/03/2023 1,256 0.41EUR 2,000,000 Italy Buoni Poliennali Del Tesoro 2.05% 01/08/2027 1,745 0.56EUR 3,538,000 Italy Buoni Poliennali Del Tesoro 3.45% 01/03/2048 3,170 1.02EUR 1,600,000 Italy Buoni Poliennali Del Tesoro 3.5% 01/12/2018 1,472 0.48

8,621 2.79

Japan 13.00% [16.48%]JPY 348,000,000 Japan Government Ten Year Bond 0.1% 20/12/2026 2,318 0.75

JPY 1,564,000,000 Japan Government Ten Year Bond 1.2% 20/12/2020 10,791 3.48JPY 662,300,000 Japan Government Thirty Year Bond 1.1% 20/03/2033 4,890 1.58JPY 838,400,000 Japan Government Thirty Year Bond 1.9% 20/09/2042 7,000 2.26JPY 361,000,000 Japan Government Thirty Year Bond 2.3% 20/05/2030 3,020 0.98

JPY 1,587,000,000 Japan Government Twenty Year Bond 2.1% 20/09/2024 12,070 3.90USD 200,000 Sumitomo Life Insurance 4% 14/09/2077 146 0.05

40,235 13.00

115




Jersey 0.00% [0.09%]Luxembourg 0.92% [0.38%]

EUR 100,000 Allergan Funding SCS 1.25% 01/06/2024 89 0.03EUR 100,000 Allergan Funding SCS 2.125% 01/06/2029 90 0.03USD 465,000 Allergan Funding SCS 3.8% 15/03/2025 359 0.12EUR 122,000 Eurofins Scientific 2.125% 25/07/2024 109 0.04

EUR 2,200,000 European Financial Stability Facility 0% 17/11/2022 1,942 0.63EUR 230,000 European Financial Stability Facility 1.25% 24/05/2033 202 0.07

2,791 0.92

Macao 0.07% [0.00%]USD 290,000 Wynn Macau 5.5% 01/10/2027 219 0.07

219 0.07

Malaysia 0.18% [0.00%]MYR 3,090,000 Malaysia Government Bond 3.654% 31/10/2019 549 0.18

549 0.18

Mexico 2.71% [0.58%]MXN 38,345,000 Mexican Bonos 5.75% 05/03/2026 1,469 0.47MXN 21,360,000 Mexican Bonos 7.5% 03/06/2027 915 0.30

MXN 111,200,000 Mexican Bonos 8.5% 31/05/2029 5,125 1.65EUR 100,000 Petroleos Mexicanos 2.5% 21/08/2021 92 0.03USD 750,000 Petroleos Mexicanos 6.5% 13/03/2027 618 0.20EUR 213,000 Sigma Alimentos 2.625% 07/02/2024 199 0.06

8,418 2.71

Netherlands 2.88% [2.35%]GBP 100,000 ABN AMRO Bank 1% 30/06/2020 100 0.03EUR 100,000 Achmea 4.25% Perpetual 92 0.03EUR 100,000 Achmea 6% 04/04/2043 102 0.03EUR 160,000 Achmea Bank 1.125% 25/04/2022 145 0.05

USD 2,900,000 Bank Nederlandse Gemeenten 2.375% 01/02/2022 2,182 0.70EUR 100,000 Cetin Finance 1.423% 06/12/2021 91 0.03USD 500,000 Cooperatieve Rabobank UA 4.625% 01/12/2023 401 0.13EUR 169,000 Deutsche Telekom International Finance 1.375%

30/01/2027 150 0.05USD 180,000 Deutsche Telekom International Finance FRN 1.77389%

19/09/2019 134 0.04EUR 100,000 ELM BV for Swiss Life Insurance & Pension 4.5% Perpetual 98 0.03EUR 100,000 Enel Finance International 1% 16/09/2024 89 0.03EUR 100,000 Generali Finance 4.596% Perpetual 93 0.03USD 200,000 ING 3.15% 29/03/2022 152 0.05GBP 480,000 ING Bank FRN 0.67838% 27/11/2017 480 0.14GBP 200,000 Koninklijke KPN 5% 18/11/2026 236 0.08GBP 50,000 Koninklijke KPN 5.75% 17/09/2029 63 0.02

GBP 122,000 LafargeHolcim Sterling Finance Netherlands 3%12/05/2032 119 0.04

116



Netherlands 2.88% [2.35%] (continued)USD 525,000 Mondelez International Holdings Netherlands 1.625%

28/10/2019 387 0.12EUR 1,200,000 Netherlands Government Bond 2.5% 15/01/2033 1,300 0.42

EUR 214,000 NIBC Bank 1.5% 31/01/2022 194 0.06USD 1,614,000 Petrobras Global Finance 7.375% 17/01/2027 1,322 0.43

EUR 100,000 RELX Finance 1% 22/03/2024 89 0.03USD 145,000 Shell International Finance 3.25% 11/05/2025 110 0.04USD 421,000 Shell International Finance 4% 10/05/2046 316 0.10CHF 200,000 UPC 6.75% 15/03/2023 163 0.05EUR 100,000 Vonovia Finance 1.25% 06/12/2024 89 0.03EUR 100,000 Vonovia Finance 1.625% 15/12/2020 92 0.03EUR 100,000 Vonovia Finance 1.75% 25/01/2027 90 0.03EUR 100,000 Vonovia Finance 4% Perpetual 96 0.03

8,975 2.88New Zeland 0.00% [0.61%]Norway 0.00% [0.42%]Peru 0.05% [0.00%]

USD 200,000 Petroleos del Peru 5.625% 19/06/2047 155 0.05155 0.05

Philippines 0.18% [0.28%]USD 750,000 Asian Development Bank 2% 22/01/2025 546 0.18

546 0.18Poland 0.81% [0.50%]

EUR 2,600,000 Poland Government International Bond 1.375%22/10/2027 2,332 0.75

EUR 220,000 Tauron Polska Energia 2.375% 05/07/2027 200 0.062,532 0.81

Portugal 0.06% [0.00%]EUR 200,000 Banco Santander Totta 1.25% 26/09/2027 176 0.06

176 0.06Romania 0.06% [0.00%]

EUR 216,000 Romanian Government International Bond 2.875%26/05/2028 198 0.06

198 0.06Singapore 0.00% [0.77%]Spain 2.30% [2.46%]

EUR 100,000 Autonomous Community of Madrid Spain 4.3%15/09/2026 108 0.03

EUR 100,000 Bankia 1% 14/03/2023 91 0.03EUR 100,000 Bankia 4% 22/05/2024 92 0.03EUR 100,000 Bankinter 2.5% 06/04/2027 90 0.03EUR 100,000 CaixaBank 1.125% 12/01/2023 88 0.03


117



Spain 2.30% [2.46%] (continued)EUR 100,000 CaixaBank 1.25% 11/01/2027 90 0.03EUR 100,000 Canal de Isabel II Gestion 1.68% 26/02/2025 90 0.03EUR 100,000 Deutsche Bank SA Espanola 0.625% 15/12/2021 90 0.03EUR 100,000 IE2 Holdco SAU 2.375% 27/11/2023 94 0.03EUR 100,000 Inmobiliaria Colonial 1.45% 28/10/2024 87 0.03EUR 100,000 Inmobiliaria Colonial 1.863% 05/06/2019 91 0.03EUR 100,000 NorteGas Energia Distribucion 0.918% 28/09/2022 88 0.03EUR 100,000 NorteGas Energia Distribucion 2.065% 28/09/2027 89 0.03EUR 300,000 Santander Consumer Finance 0.875% 24/01/2022 267 0.09

EUR 5,908,000 Spain Government Bond 1.45% 31/10/2027 5,128 1.66EUR 100,000 Telefonica Emisiones 2.318% 17/10/2028 92 0.03USD 500,000 Telefonica Emisiones 5.213% 08/03/2047 407 0.13

7,082 2.30Sweden 1.75% [1.62%]

EUR 100,000 Essity 0.625% 28/03/2022 89 0.03EUR 202,000 Molnlycke 1.875% 28/02/2025 184 0.06GBP 100,000 Skandinaviska Enskilda Banken 1.25% 05/08/2022 99 0.03EUR 300,000 Stadshypotek 1% 01/04/2019 270 0.09

USD 2,200,000 Stadshypotek 2.5% 05/04/2022 1,649 0.53USD 2,800,000 Svensk Exportkredit 1.75% 18/05/2020 2,083 0.67SEK 6,500,000 Sweden Government Bond 3.5% 01/06/2022 691 0.22USD 500,000 Sweden Government International Bond 0.875%

23/01/2018 372 0.125,437 1.75

Switzerland 0.91% [0.67%]EUR 151,000 Credit Suisse 1.25% 17/07/2025 133 0.04

USD 1,000,000 Credit Suisse 3.574% 09/01/2023 762 0.25CHF 1,350,000 Swiss Confederation Government Bond 4% 11/02/2023 1,288 0.42

EUR 200,000 UBS Group Funding Switzerland 1.75% 16/11/2022 186 0.06USD 320,000 UBS Group Funding Switzerland 4.125% 24/09/2025 251 0.08EUR 200,000 UBS Group Funding Switzerland FRN 0.371% 20/09/2022 179 0.06

2,799 0.91United Kingdom 6.67% [6.75%]

EUR 100,000 Annington Funding 1.65% 12/07/2024 89 0.03GBP 118,000 Annington Funding 3.935% 12/07/2047 125 0.04GBP 137,000 Arqiva Financing 4.04% 30/06/2035 145 0.05GBP 200,000 Aviva 5.125% 04/06/2050 216 0.07GBP 120,000 Barclays 2.375% 06/10/2023 120 0.04EUR 100,000 Barclays 2.625% 11/11/2025 91 0.03GBP 100,000 Barclays 3.125% 17/01/2024 103 0.03GBP 100,000 Barclays 3.25% 12/02/2027 103 0.03USD 255,000 Barclays Bank 10.179% 12/06/2021 235 0.08EUR 124,000 BAT International Finance 2.25% 16/01/2030 112 0.04USD 70,000 BP Capital Markets 3.062% 17/03/2022 53 0.02


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United Kingdom 6.67% [6.75%] (continued)EUR 100,000 Channel Link Enterprises Finance 1.761% 30/06/2050 89 0.03EUR 110,000 Coventry Building Society 2.5% 18/11/2020 104 0.03EUR 100,000 Credit Suisse 1.375% 29/11/2019 91 0.03EUR 200,000 Credit Suisse FRN 0.119% 16/10/2019 178 0.06EUR 100,000 DS Smith 2.25% 16/09/2022 94 0.03GBP 380,372 EMF-UK 2008-1 FRN 1.276394% 13/03/2046 382 0.12USD 167,000 Ensco 5.75% 01/10/2044 89 0.03GBP 180,129 Eurosail PRIME-UK 2007-A FRN 0.70219% 13/09/2045 172 0.06GBP 200,000 FCE Bank 2.759% 13/11/2019 205 0.07EUR 200,000 G4S International Finance 1.5% 09/01/2023 180 0.06EUR 104,000 G4S International Finance 1.5% 02/06/2024 92 0.03EUR 200,000 Global Switch 2.25% 31/05/2027 182 0.06GBP 50,000 Great Rolling Stock 6.25% 27/07/2020 56 0.02

GBP 100,000 InterContinental Hotels 3.875% 28/11/2022 109 0.04EUR 100,000 ITV 2% 01/12/2023 91 0.03EUR 100,000 ITV 2.125% 21/09/2022 92 0.03EUR 200,000 Lloyds Bank 1.375% 16/04/2021 185 0.06GBP 100,000 Lloyds Bank 5.125% 07/03/2025 124 0.04GBP 100,000 Lloyds Bank 7.5% 15/04/2024 134 0.04EUR 220,000 Lloyds Banking FRN 0.45% 21/06/2024 196 0.06EUR 100,000 London Stock Exchange 0.875% 19/09/2024 88 0.03EUR 100,000 London Stock Exchange 1.75% 19/09/2029 88 0.03EUR 300,000 Nationwide Building Society 0.5% 23/02/2024 265 0.09EUR 500,000 Nationwide Building Society 0.75% 25/06/2019 449 0.14EUR 152,000 Nationwide Building Society 1.375% 29/06/2032 133 0.04EUR 101,000 Nationwide Building Society 2% 25/07/2029 89 0.03

USD 1,545,000 Reckitt Benckiser Treasury Services 2.75% 26/06/2024 1,143 0.37GBP 100,000 RL Finance Bonds No. 2 6.125% 30/11/2043 112 0.04GBP 925,417 RMAC Securities No 1 FRN 0.46231% 12/06/2044 888 0.29EUR 100,000 Royal Bank of Scotland 0.5% 15/05/2024 88 0.03EUR 100,000 Royal Bank of Scotland 2% 08/03/2023 92 0.03EUR 107,000 Royal Bank of Scotland 2.5% 22/03/2023 101 0.03USD 500,000 Royal Bank of Scotland 3.875% 12/09/2023 380 0.12GBP 100,000 Royal Bank of Scotland 6.625% 17/09/2018 105 0.03EUR 100,000 Royal Mail 2.375% 29/07/2024 95 0.03GBP 60,000 Santander UK 3.875% 15/10/2029 68 0.02

GBP 100,000 Santander UK 5.75% 02/03/2026 130 0.04EUR 100,000 Santander UK FRN 0.451% 18/05/2023 89 0.03GBP 100,000 Scotland Gas Networks 3.25% 08/03/2027 107 0.03GBP 145,000 Shaftesbury Chinatown 2.348% 30/09/2027 141 0.05EUR 216,000 Smiths 2% 23/02/2027 196 0.06EUR 100,000 SSE 2.375% Perpetual 90 0.03GBP 100,000 SSE 3.875% Perpetual 103 0.03USD 200,000 Standard Chartered 2.1% 19/08/2019 149 0.05USD 540,000 Tesco 6.15% 15/11/2037 419 0.14


119



United Kingdom 6.67% [6.75%] (continued)GBP 100,000 Thames Water Utilities Finance 5.125% 28/09/2037 131 0.04

GBP 2,900,000 UK Treasury 1.5% 22/01/2021 2,985 0.96GBP 2,500,000 UK Treasury 1.5% 22/07/2026 2,550 0.82GBP 3,680,000 UK Treasury 3.25% 22/01/2044 4,661 1.50

GBP 237,000 Unique Pub Finance 7.395% 28/03/2024 271 0.09GBP 100,000 Yorkshire Building Society 3.375% 13/09/2028 97 0.03GBP 100,000 Yorkshire Building Society 3.5% 21/04/2026 106 0.03

20,646 6.67United States 41.30% [33.48%]

USD 525,000 Abbott Laboratories 4.75% 30/11/2036 428 0.14EUR 100,000 AbbVie 0.375% 18/11/2019 89 0.03USD 63,000 AbbVie 2.9% 06/11/2022 48 0.02USD 37,000 AbbVie 3.6% 14/05/2025 28 0.01

USD 150,000 Aflac 4% 15/10/2046 111 0.04USD 200,000 Ally Financial 5.75% 20/11/2025 161 0.05USD 639,000 Amazon.com 2.8% 22/08/2024 477 0.15USD 240,000 American International 3.3% 01/03/2021 183 0.06USD 53,000 American International 3.9% 01/04/2026 41 0.01

USD 655,000 American Tower 3.375% 15/10/2026 481 0.16USD 491,404 AmeriCredit Automobile Receivables Trust 2016-2

1.42% 08/10/2019 366 0.12USD 335,000 Amgen 2.65% 11/05/2022 251 0.08USD 128,000 Amphenol 3.2% 01/04/2024 96 0.03USD 635,000 Anadarko Petroleum 4.85% 15/03/2021 502 0.16USD 595,000 Analog Devices 3.125% 05/12/2023 449 0.14USD 780,000 Anheuser-Busch Finance 3.3% 01/02/2023 601 0.19EUR 170,000 Apple 1.375% 24/05/2029 150 0.05USD 165,000 Arch Capital Finance 5.031% 15/12/2046 137 0.04EUR 126,000 AT&T 2.35% 04/09/2029 112 0.04EUR 120,000 AT&T 2.45% 15/03/2035 99 0.03EUR 100,000 AT&T 3.55% 17/12/2032 97 0.03GBP 125,000 AT&T 3.55% 14/09/2037 120 0.04GBP 100,000 AT&T 4.375% 14/09/2029 111 0.04USD 970,000 AT&T 4.9% 14/08/2037 729 0.24USD 367,000 AT&T 5.15% 15/03/2042 280 0.09GBP 100,000 AT&T 5.5% 15/03/2027 121 0.04USD 175,000 AvalonBay Communities 3.35% 15/05/2027 131 0.04EUR 210,000 Bank of America 1.379% 07/02/2025 188 0.06USD 222,000 Bank of America 3.5% 19/04/2026 168 0.05USD 305,000 Bank of America 3.593% 21/07/2028 229 0.07USD 715,000 Bank of America 3.705% 24/04/2028 540 0.17USD 320,000 Bank of America 4.443% 20/01/2048 258 0.08GBP 100,000 Bank of America 6.125% 15/09/2021 117 0.04USD 755,000 Bank of America 6.25% Perpetual 619 0.20EUR 100,000 Bank of America FRN 0.449% 04/05/2023 89 0.03USD 100,000 Barrick North America Finance 5.7% 30/05/2041 89 0.03


120



United States 41.30% [33.48%] (continued)USD 190,000 Barrick North America Finance 5.75% 01/05/2043 172 0.06EUR 100,000 BAT Capital 1.125% 16/11/2023 89 0.03GBP 102,000 BAT Capital 2.125% 15/08/2025 100 0.03

USD 1,330,000 BAT Capital 3.222% 15/08/2024 993 0.32USD 200,000 BB&T FRN 1.89% 15/06/2020 150 0.05EUR 100,000 Becton Dickinson 1% 15/12/2022 88 0.03USD 100,000 Becton Dickinson 2.675% 15/12/2019 75 0.02USD 680,000 Becton Dickinson 3.363% 06/06/2024 509 0.16USD 250,000 Branch Banking & Trust 2.625% 15/01/2022 189 0.06USD 140,000 Bunge Finance 3% 25/09/2022 104 0.03USD 250,000 Burlington Northern Santa Fe 4.15% 01/04/2045 196 0.06

USD 1,455,000 Cabela’s Credit Card Master Note Trust FRN1.88444% 16/08/2021 1,089 0.35

USD 135,000 Calpine 5.25% 01/06/2026 100 0.03USD 70,000 Capital One 2.5% 12/05/2020 52 0.02

USD 460,000 Capital One 3.05% 09/03/2022 347 0.11USD 360,000 Capital One 3.375% 15/02/2023 272 0.09USD 825,000 Capital One FRN 1.86444% 15/02/2024 623 0.20USD 500,000 Cardinal Health 3.079% 15/06/2024 374 0.12USD 175,000 CBL & Associates 4.6% 15/10/2024 124 0.04USD 197,000 CBS 2.5% 15/02/2023 145 0.05USD 350,000 CCO 5.875% 01/04/2024 276 0.09USD 370,000 Charter Communications Operating Capital 4.908%

23/07/2025 293 0.09USD 300,000 Cheniere Corpus Christi 5.125% 30/06/2027 230 0.07USD 510,000 Church & Dwight 3.15% 01/08/2027 375 0.12USD 170,000 Cintas No 2 2.9% 01/04/2022 129 0.04USD 530,000 Citibank Credit Card Issuance Trust 2.19% 20/11/2023 396 0.13

USD 1,500,000 Citigroup 2.75% 25/04/2022 1,120 0.36USD 1,000,000 Citigroup 3.3% 27/04/2025 751 0.24USD 1,430,000 Citigroup Commercial Mortgage Trust 2013-375P

3.63483% 10/05/2035 1,078 0.35USD 3,179,970 CLI Funding V 2.83% 18/03/2028 2,347 0.76USD 1,695,000 Cold Storage Trust 2017-ICE3 FRN 2.58444%

15/04/2036 1,271 0.41USD 440,000 Cold Storage Trust 2017-ICE3 FRN 3.33444%

15/04/2036 330 0.11USD 360,000 CommScope Technologies 6% 15/06/2025 286 0.09

USD 1,025,000 Community Health Systems 6.25% 31/03/2023 754 0.24USD 255,000 Concho Resources 3.75% 01/10/2027 190 0.06USD 121,000 Continental Resources 5% 15/09/2022 91 0.03

USD 1,650,684 CoreVest American Finance 2.544% 15/06/2048 1,222 0.39USD 555,000 Cox Communications 3.15% 15/08/2024 408 0.13USD 640,000 CRC Escrow Issuer 5.25% 15/10/2025 480 0.15USD 240,000 CVS Health 3.875% 20/07/2025 185 0.06USD 400,000 Devon Energy 5.85% 15/12/2025 342 0.11


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United States 41.30% [33.48%] (continued)]USD 500,000 Crown Castle International 3.2% 01/09/2024 370 0.12USD 420,000 Crown Castle International 5.25% 15/01/2023 346 0.11EUR 200,000 Digital Euro Finco 2.625% 15/04/2024 189 0.06USD 965,000 Digital Realty Trust 3.7% 15/08/2027 723 0.23USD 375,000 Discover Bank 4.2% 08/08/2023 296 0.10USD 265,000 Discover Card Execution Note Trust 2.39% 15/07/2024 199 0.06

USD 1,800,000 Discover Card Execution Note Trust FRN 1.77444%15/09/2021 1,350 0.44

USD 525,000 Discovery Communications 2.95% 20/03/2023 391 0.13USD 245,000 DISH DBS 7.75% 01/07/2026 209 0.07USD 135,000 Dow Chemical 4.625% 01/10/2044 105 0.03USD 55,000 Duke Energy Ohio 3.7% 15/06/2046 40 0.01

USD 721,000 Dynegy 8.125% 30/01/2026 554 0.18USD 70,000 Eastman Chemical 4.65% 15/10/2044 55 0.02

USD 240,000 Ecolab 3.7% 01/11/2046 168 0.05USD 250,000 Eldorado Resorts 6% 01/04/2025 196 0.06USD 645,000 Element Rail Leasing II 3.585% 19/02/2045 482 0.16USD 239,000 EMD Finance 2.95% 19/03/2022 181 0.06USD 523,000 Energy Transfer Partners 4.05% 15/03/2025 395 0.13USD 190,000 Energy Transfer Partners 5.3% 15/04/2047 140 0.05USD 360,000 EOG Resources 2.625% 15/03/2023 266 0.09

USD 1,255,000 EQT 3.9% 01/10/2027 934 0.30USD 528,347 Fannie Mae Connecticut Avenue Securities FRN

6.13444% 25/11/2024 446 0.14USD 1,367,549 Fannie Mae Pool 4% 01/06/2047 1,074 0.35USD 1,095,202 Fannie Mae Pool 4% 01/08/2047 860 0.28

USD 210,000 Fidelity National Information Services 4.5% 15/08/2046 161 0.05USD 200,000 Fifth Third Bank 3.85% 15/03/2026 153 0.05USD 200,000 Fifth Third Bank FRN 1.44294% 27/09/2019 150 0.05USD 200,000 First Data 5.375% 15/08/2023 155 0.05USD 260,000 First Republic Bank 2.375% 17/06/2019 195 0.06USD 250,000 First Republic Bank 4.625% 13/02/2047 191 0.06USD 195,000 Fortive 2.35% 15/06/2021 145 0.05USD 265,000 Fortive 4.3% 15/06/2046 204 0.07

USD 1,090,940 Freddie Mac Gold Pool 4% 01/07/2047 857 0.28USD 1,090,687 Freddie Mac Gold Pool 4% 01/08/2047 856 0.28USD 3,000,000 Freddie Mac Multifamily Structured Pass Through

Certificates 3.12% 25/09/2026 2,293 0.74USD 2,825,000 Freddie Mac Multifamily Structured Pass Through

Certificates 3.284% 25/06/2025 2,196 0.71USD 365,000 General Motors Financial 4.375% 25/09/2021 288 0.09USD 140,000 Georgia Power 4.3% 15/03/2042 109 0.04USD 490,000 Glencore Funding 4.125% 30/05/2023 379 0.12EUR 330,000 Goldman Sachs 1.375% 15/05/2024 295 0.10USD 870,000 Goldman Sachs 2.905% 24/07/2023 647 0.21USD 285,000 Goldman Sachs 3.75% 22/05/2025 218 0.07


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United States 41.30% [33.48%] (continued)EUR 210,000 Goldman Sachs FRN 0.291% 26/09/2023 185 0.06USD 81,000 Hartford Financial Services 5.125% 15/04/2022 67 0.02

USD 120,000 Hasbro 3.5% 15/09/2027 88 0.03USD 333,000 HealthSouth 5.75% 15/09/2025 258 0.08USD 365,000 Hewlett Packard Enterprise 3.6% 15/10/2020 281 0.09USD 484,000 Hexcel 3.95% 15/02/2027 369 0.12USD 670,000 Hilton USA Trust Class C 4.333283% 05/11/2038 511 0.16USD 670,000 Hilton USA Trust Class D 4.333283% 05/11/2038 494 0.16USD 210,000 Home Depot 4.25% 01/04/2046 167 0.05USD 500,000 HSBC 1.7% 05/03/2018 373 0.12

USD 1,250,000 Intel 2.875% 11/05/2024 943 0.30CAD 1,000,000 International Bank for Reconstruction & Development

1.125% 11/03/2020 586 0.19USD 190,000 International Paper 4.8% 15/06/2044 150 0.05USD 29,000 JC Penney 5.65% 01/06/2020 21 0.01

USD 406,000 JC Penney 5.875% 01/07/2023 304 0.10EUR 220,000 Johnson Controls International 1% 15/09/2023 195 0.06USD 410,000 Johnson Controls International 4.5% 15/02/2047 322 0.10EUR 100,000 JPMorgan Chase 0.625% 25/01/2024 87 0.03EUR 200,000 JPMorgan Chase 1.5% 27/01/2025 183 0.06EUR 103,000 JPMorgan Chase 1.638% 18/05/2028 92 0.03

USD 1,000,000 JPMorgan Chase 3.625% 13/05/2024 776 0.25USD 770,663 JPMorgan Mortgage Trust 2017-2 3.5% 25/05/2047 588 0.19USD 422,850 JPMorgan Mortgage Trust 2017-3 3.5% 25/08/2047 322 0.10USD 140,000 Keysight Technologies 4.6% 06/04/2027 110 0.04USD 145,000 Kinder Morgan 5.55% 01/06/2045 116 0.04USD 400,000 Kroger 3.5% 01/02/2026 293 0.09USD 255,000 Lockheed Martin 4.7% 15/05/2046 212 0.07USD 179,000 M&T Bank 5.125% Perpetual 140 0.05

USD 1,000,000 Manufacturers & Traders Trust 3.4% 17/08/2027 749 0.24USD 194,000 Mastr Asset Backed Securities Trust 2005-WMC1 FRN

2.18222% 25/03/2035 145 0.05USD 239,000 McDonald’s 4.875% 09/12/2045 199 0.06USD 175,000 Medtronic 4.625% 15/03/2045 148 0.05USD 520,000 MetLife 3% 01/03/2025 388 0.13USD 140,000 Microsoft 2.875% 06/02/2024 106 0.03USD 180,000 Microsoft 3.3% 06/02/2027 138 0.04USD 140,000 Microsoft 4.1% 06/02/2037 113 0.04USD 100,000 MidAmerican Energy 3.95% 01/08/2047 77 0.02EUR 100,000 Mondelez International 2.375% 06/03/2035 85 0.03USD 180,000 Monsanto 4.4% 15/07/2044 137 0.04USD 750,000 Moody’s 2.625% 15/01/2023 554 0.18USD 155,000 Moody’s 2.75% 15/12/2021 116 0.04EUR 140,000 Morgan Stanley 1% 02/12/2022 125 0.04EUR 100,000 Morgan Stanley 1.375% 27/10/2026 87 0.03GBP 120,000 Morgan Stanley 2.625% 09/03/2027 120 0.04

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United States 41.30% [33.48%] (continued)USD 1,129,000 Morgan Stanley 3.875% 27/01/2026 871 0.28

USD 700,000 Morgan Stanley 3.875% 29/04/2024 545 0.18USD 305,000 Morgan Stanley 5.55% Perpetual 237 0.08EUR 460,000 Morgan Stanley FRN 0.371% 19/11/2019 410 0.13USD 94,000 MPLX LP 4.875% 01/12/2024 75 0.02

USD 825,000 MPT Operating Partnership 5% 15/10/2027 630 0.20USD 500,000 Multi-Color 4.875% 01/11/2025 377 0.12USD 200,000 Nabors Industries 5.5% 15/01/2023 146 0.05USD 230,000 Nestle 2% 30/09/2019 172 0.06

USD 1,000,000 Nestle 2.125% 14/01/2020 749 0.24USD 120,000 NetApp 2% 27/09/2019 89 0.03USD 832,000 Newell Brands 3.85% 01/04/2023 650 0.21USD 111,000 Noble Energy 3.9% 15/11/2024 85 0.03USD 250,000 Norfolk Southern 3% 01/04/2022 190 0.06USD 575,000 OnDeck Asset Securitization Trust II 4.21% 17/05/2020 431 0.14USD 560,000 One Market Plaza Trust 2017-1MKT 4.0163% 10/02/2032 434 0.14USD 375,000 One Market Plaza Trust 2017-1MKT 4.1455% 10/02/2032 286 0.09USD 376,000 ONEOK 4.95% 13/07/2047 280 0.09USD 134,000 ONEOK Partners 3.375% 01/10/2022 101 0.03USD 300,000 PepsiCo 4% 02/05/2047 231 0.07USD 100,000 Philip Morris International 1.375% 25/02/2019 74 0.02USD 250,000 Philip Morris International 1.625% 21/02/2019 186 0.06USD 155,000 Philip Morris International 2.625% 06/03/2023 115 0.04USD 160,000 Philip Morris International 3.25% 10/11/2024 121 0.04USD 75,000 Phillips 66 FRN 1.95361% 15/04/2019 56 0.02

USD 438,000 Plains All American Pipeline 3.65% 01/06/2022 327 0.11USD 750,000 PNC Bank 2.55% 09/12/2021 562 0.18USD 320,000 PNC Bank 2.95% 23/02/2025 238 0.08EUR 232,000 Priceline 0.8% 10/03/2022 207 0.07EUR 110,000 Prologis 3% 02/06/2026 109 0.04USD 734,000 Prudential Financial 4.5% 15/09/2047 554 0.18USD 512,000 QUALCOMM 2.6% 30/01/2023 383 0.12USD 250,000 Regions Financial 2.75% 14/08/2022 186 0.06USD 55,000 Reynolds American 4.45% 12/06/2025 44 0.01USD 55,000 Reynolds American 5.85% 15/08/2045 50 0.02

USD 660,000 Rockwell Collins 3.5% 15/03/2027 500 0.16USD 150,000 Roper Technologies 2.8% 15/12/2021 112 0.04USD 200,000 S&P Global 3.3% 14/08/2020 153 0.05USD 340,000 Sabine Pass Liquefaction 4.2% 15/03/2028 254 0.08USD 340,225 Santander Drive Auto Receivables Trust April 2014

2.6% 16/11/2020 255 0.08USD 300,000 SBA Communications 4.875% 01/09/2024 230 0.07USD 200,000 SES Global Americas 2.5% 25/03/2019 149 0.05USD 550,000 Sherwin-Williams 3.45% 01/06/2027 412 0.13USD 87,000 Sirius XM Radio 5.375% 15/07/2026 68 0.02

USD 467,000 Smithfield Foods 2.7% 31/01/2020 350 0.11

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United States 41.30% [33.48%] (continued)USD 215,000 Southwestern Energy 7.5% 01/04/2026 166 0.05USD 355,000 Southwestern Energy 7.75% 01/10/2027 274 0.09USD 923,973 SpringCastle America Funding 3.05% 25/04/2029 693 0.22USD 310,000 State of Illinois 5.1% 01/06/2033 234 0.08USD 390,000 SunTrust Banks 2.7% 27/01/2022 292 0.09USD 275,000 SUPERVALU 6.75% 01/06/2021 194 0.06

USD 1,369,000 TAL Advantage V 3.55% 20/11/2038 1,019 0.33USD 500,000 Target 2.5% 15/04/2026 356 0.11

USD 1,040,000 Tenet Healthcare 4.625% 15/07/2024 766 0.25USD 137,245 Towd Point Mortgage Trust 2017-1 2.75% 25/10/2056 103 0.03USD 769,163 Towd Point Mortgage Trust 2017-2 2.75% 25/04/2057 576 0.19USD 503,973 Towd Point Mortgage Trust 2017-3 2.75% 25/06/2057 378 0.12USD 259,095 Towd Point Mortgage Trust 2017-4 2.75% 25/06/2057 194 0.06USD 500,000 Tyson Foods 3.55% 02/06/2027 377 0.12USD 155,000 United Rentals North America 4.625% 15/10/2025 117 0.04USD 305,000 United Rentals North America 4.875% 15/01/2028 228 0.07

USD 2,500,000 United States Treasury Bill 0% 01/02/2018 1,856 0.60USD 6,695,000 United States Treasury Bill 0% 25/01/2018 4,973 1.61

USD 10,800,000 United States Treasury Inflation IndexedBonds 0.125% 15/07/2026 7,990 2.58

USD 5,280,000 United States Treasury Inflation IndexedBonds 0.375% 15/01/2027 3,938 1.27

USD 7,000,000 United States Treasury Note/Bond 1% 31/05/2018 5,208 1.68USD 9,360,000 United States Treasury Note/Bond 1.625% 15/02/2026 6,628 2.14

USD 13,930,000 United States Treasury Note/Bond 1.75% 30/09/2022 10,283 3.32USD 11,525,000 United States Treasury Note/Bond 2.5% 15/02/2046 7,981 2.58

USD 375,000 United States Treasury Note/Bond 2.5% 15/05/2046 259 0.08USD 78,300 United States Treasury Note/Bond 3% 15/02/2047 60 0.02

USD 200,000 Valero Energy 3.4% 15/09/2026 147 0.05USD 215,000 Ventas Realty 3.5% 01/02/2025 161 0.05USD 500,000 Verizon Communications 4.272% 15/01/2036 366 0.12USD 192,000 VMware 2.3% 21/08/2020 143 0.05GBP 100,000 Wells Fargo 2% 28/07/2025 98 0.03EUR 150,000 Wells Fargo 2% 27/04/2026 140 0.05GBP 100,000 Wells Fargo 2.125% 22/04/2022 102 0.03EUR 200,000 Wells Fargo FRN 0.153% 24/04/2019 177 0.06USD 430,000 Williams Partners 4% 15/09/2025 327 0.11EUR 200,000 Zimmer Biomet 1.414% 13/12/2022 180 0.06EUR 100,000 Zimmer Biomet 2.425% 13/12/2026 92 0.03USD 295,000 Zoetis 3% 12/09/2027 216 0.07

127,998 41.30Swap 0.00% [(0.11)%]

EUR 1,000,000 Barclays Interest Rate Swap EUR 1.398% 15/08/2027 (4) 0.00EUR 1,000,000 Citibank Interest Rate Swap EUR 1.417% 15/08/2027 (2) 0.00EUR 1,004,000 Citigroup Interest Rate Swap EUR 1.41% 15/08/2027 (4) (0.01)EUR 1,000,000 JPMorgan Interest Rate Swap EUR 1.402% 15/08/2027 (4) 0.00

125




Swap 0.00% [(0.11)%] (continued)EUR 2,000,000 JPMorgan Interest Rate Swap EUR 1.422% 15/08/2027 (3) 0.00EUR 1,555,000 JPMorgan Interest Rate Swap EUR 1.4794% 15/01/2022 9 0.01

EUR 60,820 Morgan Stanley Credit Default Swap EUR 1% 20/06/2022 1 0.00(7) 0.00

Options 0.26% [0.03%]AUD 5,170,000 AUD PUT USD CALL 0.795 96 0.03EUR 8,550,000 AUD PUT USD CALL 0.958 1 0.00EUR 8,360,000 EUR PUT GBP CALL 0.857 81 0.03

EUR (3,940,000) IRS SWAPTION 0.545 EUR EURIBOR 0 0.00EUR 3,940,000 IRS SWAPTION 0.945 EUR EURIBOR 20 0.01

EUR (3,940,000) IRS SWAPTION 1.345 EUR EURIBOR 0 0.00USD 8,470,000 IRS SWAPTION 2.3 USD LIBOR 170 0.05

USD 16,750,000 IRS SWAPTION 2.4 USD LIBOR 276 0.09USD 9,760,000 USD CALL JPY PUT 111.8 169 0.05

813 0.26Futures (0.03)% [(0.01)%]

62 Australian Bond 10 Year Futures December 2017 (101) (0.03)196 Australian Bond 3 Year Futures December 2017 (57) (0.02)17 Canadian Bond 10 Year Futures December 2017 (4) 0.0047 Euro-Schatz Futures December 2017 (2) 0.00

162 German Euro BOBL Futures December 2017 (49) (0.02)(85) German Euro BTP Futures December 2017 30 0.01(53) German Euro BUND Futures December 2017 41 0.01(20) German Euro OAT Futures December 2017 9 0.00

10 Japan Bond 10 Years December 17 (53) (0.02)12 Long Gilt Futures December 2017 (50) (0.02)79 US Treasury Long Bond December 2017 (118) (0.04)

(105) US Treasury Note 10 Year Futures December 2017 84 0.03(148) US Treasury Note 2 Year Futures December 2017 55 0.02

94 US Treasury Note 5 Year Futures December 2017 (47) (0.02)(243) US Treasury Ultra Bond Futures December 2017 217 0.07

(45) (0.03)Forward Currency Contracts (0.09)% [0.41%]Bought AUD2,690,391 for USD2,161,199 Settlement17/10/2017 (38) (0.01)Bought AUD648,045 for GBP391,484 Settlement17/10/2017 (13) 0.00Bought BRL9,437,800 for USD3,000,890 Settlement03/11/2017 (22) (0.01)Bought BRL12,620,400 for USD4,055,810 Settlement03/10/2017 (49) (0.02)Bought CAD2,586,200 for NOK16,554,081 Settlement17/10/2017 (9) 0.00Bought CAD1,104,400 for GBP684,650 Settlement17/10/2017 (27) (0.01)

126




Forward Currency Contracts (0.09)% [0.41%] (continued)Bought CZK36,821,300 for EUR1,373,929 Settlement09/11/2017 38 0.01Bought CZK71,474,803 for EUR2,668,962 Settlement06/11/2017 71 0.02Bought CZK76,166,897 for EUR2,838,479 Settlement03/11/2017 81 0.03Bought CZK38,843,500 for USD1,544,952 Settlement06/11/2017 167 0.05Bought CZK41,330,000 for GBP1,424,201 Settlement17/10/2017 (23) (0.01)Bought EUR23,809,266 for GBP21,206,505 Settlement17/10/2017 (221) (0.07)Bought IDR84,073,309,712 for USD6,387,951Settlement 17/10/2017 (114) (0.04)Bought INR401,004,046 for USD6,253,767Settlement 17/10/2017 (93) (0.03)Bought JPY3,020,124,795 for GBP20,658,716Settlement 17/10/2017 (657) (0.21)Bought MXN101,934,559 for GBP4,305,902Settlement 17/10/2017 (134) (0.04)Bought MYR4,358,424 for USD1,041,234 Settlement17/10/2017 (7) 0.00Bought NOK16,488,948 for CAD2,546,300 Settlement17/10/2017 27 0.01Bought NOK27,318,201 for GBP2,622,147 Settlement17/10/2017 (65) (0.02)Bought NZD3,441,500 for USD2,532,772 Settlement17/10/2017 (34) (0.01)Bought NZD800,298 for GBP440,007 Settlement17/10/2017 (9) 0.00Bought RUB117,076,948 for USD2,035,236Settlement 17/10/2017 (5) 0.00Bought TRY7,514,800 for GBP1,610,033 Settlement17/10/2017 (43) (0.01)Bought USD4,019,795 for BRL12,620,400 Settlement03/10/2017 22 0.01Bought USD685,003 for IDR9,174,245,167 Settlement17/10/2017 3 0.00Bought USD1,284,988 for INR83,693,121 Settlement17/10/2017 4 0.00Bought USD5,569,579 for KRW6,312,525,971Settlement 17/10/2017 42 0.01Bought USD5,524,385 for TWD165,368,100Settlement 17/10/2017 50 0.02Bought USD1,547,837 for ZAR21,010,800Settlement 17/10/2017 (3) 0.00

127




Forward Currency Contracts (0.09)% [0.41%] (continued)Bought USD2,224,957 for GBP1,639,005 Settlement 26/10/2017 18 0.01Bought USD49,053,928 for GBP36,774,656 Settlement 17/10/2017 (229) (0.07)Bought ZAR20,649,900 for USD1,544,789 Settlement 17/10/2017 (14) 0.00Bought ZAR26,348,000 for GBP1,515,913 Settlement 17/10/2017 (65) (0.02)Sold AUD19,268,030 for GBP11,640,161 Settlement 17/10/2017 378 0.12Sold CAD449,547 for GBP278,228 Settlement 17/10/2017 10 0.00Sold CHF1,487,000 for GBP1,167,650 Settlement 17/10/2017 22 0.01Sold EUR18,312,320 for GBP16,243,028 Settlement 17/10/2017 102 0.03Sold JPY110,017,483 for GBP728,767 Settlement 17/10/2017 0 0.00Sold MXN177,049,604 for GBP7,475,811 Settlement 17/10/2017 229 0.07Sold NZD4,350,198 for GBP2,387,173 Settlement 17/10/2017 45 0.01Sold SEK36,410,314 for GBP3,435,042 Settlement 17/10/2017 109 0.04

Sold USD38,787,329 for GBP29,016,235 Settlement 17/10/2017 119 0.04 (337) (0.09)



All investments are ordinary Bonds unless otherwise stated.


Gross purchases for the year (excl. Derivatives): £351,761,000 [2016: £176,270,000] (See note 16).

Total sales net of transaction costs for the year (excl. Derivatives): £238,231,000 [2016:£123,763,000] (See note 16).

128



Associated Bond Ratings as at 30 September 2017% of TotalNet Assets

Bonds RatingAAA 34.94AA 12.86A 25.74BBB 19.20BB 2.81B 0.95Bonds 96.50Uninvested Cash 2.45Interest Rate Swaps and Forwards 1.05Net Assets 100.00

The above information has been supplied by the Investment Manager.

129



01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital (losses)/gains 2 (15,717) 35,782 Revenue 3 4,947 3,470

Expenses 4 (1,283) (794)Interest payable and similar charges 5 (23) (11)Net revenue before taxation 3,641 2,665 Taxation 6 (7) –Net revenue after taxation 3,634 2,665 Total return before distributions (12,083) 38,447 Distributions 7 (3,634) (2,665)Change in net assets attributable to Shareholdersfrom investment activities (15,717) 35,782

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000



of Shares (585) (3,537)116,873 48,442

Change in net assets attributable to Shareholders from investment activities (see above) (15,717) 35,782



130



30/09/17 30/09/16Note £’000 £’000 £’000 £’000



Debtors 8 5,840 3,459 Cash and bank balances 9 15,856 4,004

Total current assets 21,696 7,463 Total assets 327,100 217,161Liabilities:Investment liabilities (2,372) (1,319)Creditors:

Bank overdrafts 11 (192) (309)Distribution payable (2,484) (1,790)Other creditors 10 (12,317) (5,164)


131



2. Net capital (losses)/gains01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

The net capital (losses)/gains during the year comprise:Brokers commission on futures (45) (18)Currency losses (282) (1,000)Derivative contracts (169) (794)Forward currency contracts (721) 2,321 Non-derivative securities (14,399) 35,318 Transaction charges (101) (45)Net capital (losses)/gains (15,717) 35,782

3. Revenue01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Bank interest 30 2 Interest from Debt Securities 5,029 3,599 Revenue from swaps (112) (131)Total revenue 4,947 3,470

4. Expenses01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000


AMC fees 1,160 713 1,160 713







132



£’000 £’000


6. Taxation


£’000 £’000

Irrecoverable overseas tax 7 –Total taxation for the year (Note 6 (b)) 7 –



01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 3,641 2,665 Net revenue for the year multiplied by the standard

rate of corporation tax 728 533 Effects of:Irrecoverable overseas tax 7 –Relief for indexation on UK Gilts (1) –Tax deductible interest distributions (727) (533)Total tax charge for the year 7 –





133


7. Distributions


01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Interim 1,581 835 Final 2,484 1,461 Add: Revenue paid on cancellation of Shares 2 13 Deduct: Revenue received on creation of Shares (433) (177)Income tax withheld at source – 533 Net distribution for the year 3,634 2,665 Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 3,634 2,665 Net distribution for the year 3,634 2,665


8. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 1,734 1,189 Amounts receivable for creation of Shares 2,000 1,177 Overseas withholding tax recoverable 23 9 Sales awaiting settlement 2,082 1,080 Prepaid expenses 1 4 Total debtors 5,840 3,459


£’000 £’000

Cash and bank balances 14,038 3,036 Amount held at futures clearing houses and brokers 1,818 968 Total cash and bank balances 15,856 4,004


134


10. Other creditors30/09/17 30/09/16

£’000 £’000

Purchases awaiting settlement 12,092 5,063 12,092 5,063





11. Bank overdrafts30/09/17 30/09/16

£’000 £’000

Amounts overdrawn at futures clearing houses and brokers 192 309 Total bank overdrafts 192 309


135










13. Share Classes

The Share Classes and ACD’s Annual Management Charges applicable to each Share classare as follows:

%





Share Class A Income 163,547,943 94,307,827 (453,026) – 257,402,744




136








Net foreign Net foreign currency currencyexposure exposure30/09/17 30/09/16


Australian Dollar (2,615) 161 Brazilian Real 2,300 1,540 Canadian Dollar 8,367 5,229 Colombian Peso – 381 Czech Koruna 8,976 150 Danish Krone 524 622 Euro 62,707 46,333 Indian Rupee 3,613 3,118 Indonesian Rupiah 4,138 2,019 Japanese Yen 58,893 37,409 Malaysian Ringgit 768 564 Mexican Peso 4,618 643 New Israeli Sheqel – 170 New Russian Ruble 1,511 1,763 New Taiwan Dollar (4,066) –New Zealand Dollar (58) (2,366)Norwegian Krone 2,551 4,460 Peruvian Nouveau Sol – 371 Polish Zloty – 410 Singapore Dollar – (1,272)South African Rand 1,430 450 South Korean Won (4,093) 1,552 Swedish Krona (2,628) 2,131 Swiss Franc 361 1,590 Thai Baht – 474 Turkish Lira 1,567 1,911 US Dollar 149,887 95,653 Total foreign currency exposure 298,751 205,466 Sterling 10,984 3,113 Total net assets 309,735 208,579


137



(a) Foreign currency risk (continued)



The table below shows the interest rate risk profile at the balance sheet date:

Financial assetsFloating rate Fixed rate not carrying

financial assets financial assets interest TotalCurrency Assets £’000 £’000 £’000 £’000

30/09/17Australian Dollar 512 6,131 211 6,854 Brazilian Real 87 – 2,213 2,300 Canadian Dollar 95 7,891 476 8,462 Czech Koruna – – 8,976 8,976 Danish Krone – 518 6 524 Euro 2,054 64,933 7,349 74,336 Indian Rupee – – 3,613 3,613 Indonesian Rupiah – – 4,138 4,138 Japanese Yen 247 40,088 19,339 59,674 Malaysian Ringgit – 549 777 1,326 Mexican Peso 46 7,509 137 7,692 New Russian Ruble – – 1,512 1,512 Norwegian Krone – – 2,551 2,551 South African Rand – – 1,431 1,431 South Korean Won 14 – – 14 Sterling 17,190 15,778 2,976 35,944 Swedish Krona – 690 7 697 Swiss Franc 5 1,452 50 1,507 Turkish Lira – – 1,567 1,567 US Dollar 6,302 146,370 3,346 156,018 Total 26,552 291,909 60,675 379,136


138



(b) Interest rate risk profile of financial assets and liabilities (continued)



30/09/16Australian Dollar 53 2,679 41 2,773 Brazilian Real – – 1,540 1,540 Canadian Dollar 71 5,832 44 5,947 Colombian Peso – – 381 381 Czech Koruna – – 150 150 Danish Krone – 520 102 622 Euro 1,683 50,942 3,974 56,599 Indian Rupee – – 3,118 3,118 Indonesian Rupiah – – 2,019 2,019 Japanese Yen – 33,791 4,537 38,328 Malaysian Ringgit – – 564 564 Mexican Peso 36 1,219 26 1,281 New Israeli Sheqel – – 170 170 New Russian Ruble – – 1,763 1,763 New Zealand Dollar 14 1,278 15 1,307 Norwegian Krone – 878 3,582 4,460 Peruvian Nouveau Sol – – 371 371 Polish Zloty 2 1,048 36 1,086 Singapore Dollar 18 1,602 12 1,632 South African Rand – – 450 450 South Korean Won – – 1,552 1,552 Sterling 3,165 11,095 2,137 16,397 Swedish Krona – 714 1,417 2,131 Swiss Franc – 1,574 37 1,611 Thai Baht – – 474 474 Turkish Lira – – 1,911 1,911 US Dollar 6,987 86,589 3,707 97,283 Total 12,029 199,761 34,130 245,920


139




FinancialFloating rate Fixed rate liabilities not

financial financial carryingliabilities liabilities interest Total

Currency Liabilities £’000 £’000 £’000 £’00030/09/17Australian Dollar – – 9,469 9,469 Canadian Dollar 90 – 4 94 Euro 102 – 11,525 11,627 Japanese Yen – – 782 782 Malaysian Ringgit – – 559 559 Mexican Peso – – 3,074 3,074 New Taiwan Dollar – – 4,066 4,066 New Zealand Dollar – – 58 58 South Korean Won – – 4,107 4,107 Sterling – – 24,962 24,962 Swedish Krona – – 3,326 3,326 Swiss Franc – – 1,146 1,146 US Dollar – – 6,131 6,131 Total 192 – 69,209 69,401 30/09/16Australian Dollar – – 2,612 2,612 Canadian Dollar 21 – 697 718 Euro 288 – 9,978 10,266 Japanese Yen – – 919 919 Mexican Peso – – 638 638 New Zealand Dollar – – 3,673 3,673 Polish Zloty – – 676 676 Singapore Dollar – – 2,904 2,904 Sterling – – 13,284 13,284 Swiss Franc – – 21 21 US Dollar – – 1,630 1,630 Total 309 – 37,032 37,341


(c) Leverage

There was 133.10% leverage as at 30 September 2017, other than that available to the Fundas a result of its ability to borrow up to 10% of its value on a permanent basis.


140



16. Portfolio transaction costs01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000


before transaction costs:Bonds 351,761 176,270

351,761 176,270 Commissions – Derivatives 21 8 Total purchase costs 21 8 Gross purchase total 351,782 176,278 Analysis of total sale costsGross sales in the year

before transaction costs:Bonds 238,231 123,763

238,231 123,763 Commissions – Derivatives (20) (8)Taxes – Bonds (1) –Total sale costs (21) (8)Total sales net of transaction costs 238,210 123,755


For the Fund’s investment transactions in debt instruments any applicable transaction chargesform part of the dealing spread for these instruments.

01/10/16 to 01/10/15 to30/09/17 30/09/16


Purchases – CommissionsBonds 0.0000% 0.0000%

Purchases – TaxesBonds 0.0000% 0.0000%

Sales – CommissionsBonds 0.0000% 0.0000%

Sales – TaxesBonds 0.0004% 0.0000%

01/10/16 to 01/10/15 to30/09/17 30/09/16




141







Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 143,169 (481) 105,141 (46)Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset orliability, either directly or indirectly 162,235 (1,891) 108,112 (4,828)Level 3: Inputs are unobservable (ie for which market data isunavailable) for the asset or liability – – – –

305,404 (2,372) 213,253 (4,874)

142


Interim Distribution in pence per share


Distribution DistributionGross paid paid


Share Class A Income #Group 1 0.7837 – 0.7837 0.6114Group 2 0.3439 0.4398 0.7837 0.6114

Final Distribution in pence per share


Distribution DistributionGross payable paid


Share Class A Income #Group 1 0.9652 – 0.9652 0.8933Group 2 0.4856 0.4796 0.9652 0.8933

# Share class converted from net to gross on 1 October 2016.


143

Omnis Income and Growth Fund


The aim of the Fund is to provide income together with capital growth.

Investment Policy

The Fund aims to invest primarily (meaning at least 70% of its scheme property) in UK listedsecurities including companies which are listed but not incorporated in the UK. In addition, the Fundmay invest up to ten (10) percent of its scheme property in unquoted companies (the “UnlistedPortfolio”). The Fund may invest in transferable securities, unlisted securities, money marketinstruments, warrants, units in collective investment schemes and deposits as detailed in the mostrecent Prospectus.

The Fund may make use of derivatives for the purposes of efficient portfolio management. It is notanticipated that such use of derivatives will have a significant effect on the risk profile of the Fund.

Investment Review

Over the period the Omnis Income and Growth Fund returned 3.37% and the benchmark (FTSEAll-Share) returned 11.94% [source: Financial Express, bid to bid, net income reinvested].

The Fund delivered a positive return during the period but trailed that of the broader UK stockmarket. This relative underperformance can be attributed in part to absence from parts of themarket that have performed most strongly.

Performance has, however, also been impacted by adverse share price moves from some of theFund’s investments. Most prominently, Provident Financial experienced significant operationaldisruption in its household consumer credit division. This has been very disappointing for thecompany and its investors, but we believe that the market has substantially over-reacted to thenews. We have maintained our exposure to the business, believing that it will recover from thesetemporary problems, although we acknowledge that it may take some time to do so.

Elsewhere, the Fund’s exposure to early-stage biotechnology businesses such as 4D Pharma andVernalis also hindered performance. Businesses such as these may take a long time to fulfil theirpotential but the stock market is not well-endowed with patience. Sometimes this can manifestitself in share price weakness which cannot be explained by fundamentals – although this can befrustrating, it is also an opportunity that long-term investors can exploit.

More positively, the portfolio’s significant positions in stocks such as AstraZeneca and Legal &General delivered a meaningful contribution to performance. There were also notable contributionsfrom Purplebricks and Burford Capital. These are both young, dynamic businesses that are provinghighly disruptive in their respective industries. The former continues to deliver rapid growth in theUK as it significantly disrupts the traditional estate agency business model – it is now also replicatingthis success in Australia and the US. Meanwhile, Burford Capital, announced very strong financialresults, underscoring its dominant position in the fast-growing litigation finance market.

As the year has progressed, we have become increasingly attracted to a contrarian investmentopportunity that has emerged in UK-focused businesses. We believe the market consensus hasbecome far too cautious about the outlook for the UK economy and, as a result, the fund hasincreased its exposure to some high-quality UK businesses, such as Lloyds, Barratt Developmentsand British Land. The Fund remains exposed to more globally-facing businesses such as AstraZenecaand Imperial Brands, but this part of the portfolio has reduced in size in recent months on valuationgrounds.


144


Market Overview

Global equity markets have been increasingly narrowly focused, with returns driven by stocks thatare seen as proxies for Chinese credit growth. In the UK that means mining companies, Asianexposed banks and some consumer staples businesses. We do not believe that this behaviour isfully justified by what is really happening in the economy, nor do we believe it is sustainable.Nevertheless, it has been a headwind to performance during the period.

Outlook

As long-term investors, sometimes what we are trying to do will not chime with the mood of themarket. Although in the short-term, this is painful to endure, our response to it is to continuouslyretest our investment hypothesis. In doing so, we have repeatedly returned to the same conclusion– our long-term strategy is very appropriate for the current investment context.

We remain cautious about the growth prospects for the global economy. Clearly, this view is not apopular one at the moment with financial markets becoming, in our view, far too complacent aboutthe global growth outlook. In particular, the fundamentals of the Chinese economy are troubling.Policymakers have prioritised economic stability but it has come at a cost – the Chinese economyhas become dangerously dependent on credit and it seems inevitable that the already substantialbad debt problem in China will result in some form of banking crisis.

This suggests that the global growth outlook is not quite as sanguine as market behaviour wouldsuggest. Some parts of the UK stock market which have performed well in recent months, now lookvery vulnerable should Chinese growth, and that of the global economy more broadly, begin tofalter.

By contrast, the UK economy appears relatively well-positioned, in our view, with the prospect ofsustainable growth in years ahead. Again, this is not a widely held view but, with a functioningbanking system and a strong labour market, the UK economy appears to be in much better shapethan many commentators would suggest.

The Fund is exposed to what we believe to be the most attractively valued parts of our investmentuniverse. This results in an attractive mix of unloved domestically focused businesses, some high-quality, global-dependable growth companies and an exciting collection of much earlier-stagescience-based businesses with incredible long-term growth potential.

Although the fund has endured a challenging period of performance over the past twelve months,we remain absolutely confident that it is appropriately positioned and capable of delivering veryattractive returns in the years ahead.

Investment ManagerWoodford Investment Management Limited13 October 2017


145



Purchases Sales

Portfolio Name Cost £’000 Portfolio Name Proceeds £’000AstraZeneca 12,639 British American Tobacco 13,376 Lloyds Banking 11,118 GlaxoSmithKline 13,311 Imperial Tobacco 9,842 Aviva 4,933 Eve Sleep 6,864 International Consolidated Airlines 3,765 Legal & General 5,988 G4S 3,527 Provident Financial 5,954 Cranswick 2,743 Royal Bank of Scotland 5,108 Redrow 2,278 Redrow 5,062 Eurocell 2,215 Aviva 4,777 Lancashire 2,180 British Land 4,347 Beazley 1,666

146



A Income A Accumulation 30/9/2017 30/9/2016 30/9/2017 30/9/2016 (p) (p) (p) (p)

Change in net assets per ShareOpening net asset value per share 103.65 100.00** 104.93 100.00**Return before operating charges* 4.57 5.54 4.59 5.54 Operating charges (1.08) (0.61) (1.08) (0.61)Return after operating charges 3.49 4.93 3.51 4.93

Distributions (2.27) (1.28) (2.30) (1.28)Retained distributions on accumulation shares – – 2.30 1.28 Closing net asset value per share 104.87 103.65 108.44 104.93

* after direct transaction costs of: 0.45 0.76 0.46 0.76 Performance Return after operating charges 3.37% 4.93% 3.35% 4.93% Other information Closing net asset value (£’000) 258,012 85,061 22,027 27,038Closing number of shares 246,036,553 82,064,446 20,312,167 25,767,135Operating charges 1.03% 1.03% 1.02% 1.03%Direct transaction costs 0.43% 0.76% 0.43% 0.76% Prices (p) Highest share price 110.98 107.19 113.39 107.18Lowest share price 96.95 91.25 98.13 91.25

** Share classes A Income and Accumulation launched on 29 February 2016 at a price of 100 pence.

147





Date (%) (%) (%) (%)

30/09/17Share Class A Income 0.90 0.11 0.01 1.02Share Class A Accumulation 0.90 0.11 0.01 1.0230/09/16Share Class A Income 0.90 0.07 0.06 1.03Share Class A Accumulation 0.90 0.07 0.06 1.03





• The Fund appears as a “5” on the scale. This is because the Fund invests in the shares ofcompanies whose values tend to vary more widely than other asset classes.

• The Fund is expected to invest up to 10% of its assets in securities that are not readilytradeable (unlisted securities), which are fair valued by the ACD and may be less liquid thanlisted securities.

Risk Warning






148



Banks 5.88% [0.00%]16,097,440 Lloyds Banking 10,900 3.892,108,000 Royal Bank of Scotland 5,656 2.02

16,556 5.91

Chemicals 0.05% [0.20%]801,600 Itaconix 152 0.05

152 0.05

Construction & Materials 2.54% [1.02%]3,079,290 Breedon 2,602 0.931,640,000 Forterra 4,551 1.63

7,153 2.56

Electricity 1.46% [1.05%]1,320,241 Drax 4,109 1.47

4,109 1.47

Electronic & Electrical Equipment 0.52% [0.00%]1,079,412 Strix 1,457 0.52

1,457 0.52

Equity Investment Instruments 0.00% [1.53%]

Financial Services 10.42% [12.66%]836,983 Allied Minds 1,117 0.40

1,388,798 Arix Bioscience 2,722 0.97 685,116 Burford Capital 7,084 2.53

2,112,222 IP 2,862 1.02 2,032,841 Morses Club 2,861 1.02 3,372,681 Non-Standard Finance 2,664 0.95 402,642 Provident Financial 3,338 1.19

2,774,920 Redde 4,988 1.78554,634 Touchstone Innovations 1,664 0.59

29,300 10.45

Fixed Line Telecommunications 1.27% [1.00%]8,907,147 CityFibre Infrastructure 3,563 1.27

3,563 1.27

Food Producers 0.00% [1.03%]

General Retailers 2.72% [1.52%]104,733 Next 5,504 1.97

2,910,000 Topps Tiles 2,182 0.787,686 2.75


149



Health Care Equipment & Services 1.36% [2.16%]2,690,091 NetScientific 1,089 0.39 3,126,575 Sphere Medical 11 0.001,214,974 Spire Healthcare 2,722 0.97

3,822 1.36

Household Goods & Home Construction 10.40% [0.00%]665,668 Barratt Developments 4,087 1.46428,000 Bovis Homes 4,682 1.67959,416 Countryside Properties 3,329 1.19

7,559,653 Eve Sleep 7,938 2.83515,000 Redrow 3,051 1.09

1,688,047 Taylor Wimpey 3,300 1.181,343,000 Watkin Jones 2,938 1.05

29,325 10.47

Industrial Engineering 0.86% [1.23%]891,425 Xeros Technology 2,425 0.87

2,425 0.87

Industrial Transportation 2.17% [1.38%]1,560,000 Eddie Stobart Logistics 2,434 0.871,369,302 Stobart 3,694 1.32

6,128 2.19

Life Insurance 4.44% [4.64%]4,816,889 Legal & General 12,505 4.47

12,505 4.47

Media 1.05% [0.61%]254,780 Euromoney Institutional Investor 2,966 1.06

2,966 1.06

Non-life Insurance 0.00% [2.63%]Pharmaceuticals & Biotechnology 17.57% [28.36%]

744,186 4d pharma 2,642 0.94 7,183,009 Abzena 2,370 0.85464,793 AstraZeneca 23,026 8.22932,441 BTG 6,299 2.25

2,943,483 Circassia Pharmaceuticals 2,428 0.871,732,006 Horizon Discovery 3,880 1.39888,636 Mereo Biopharma 2,666 0.95

1,380,000 Synairgen 148 0.05 16,101,230 Tissue Regenix 1,771 0.63 5,994,511 Vernalis 824 0.29 2,729,618 Verseon 3,412 1.22

49,466 17.66


150



Real Estate Investment & Services 3.65% [1.61%*]1,709,500 Purplebricks 6,611 2.363,810,574 Raven Russia 1,829 0.652,971,690 Sirius Real Estate 1,828 0.65

10,268 3.66

Real Estate Investment Trust 5.79% [2.62%*]676,000 British Land 4,063 1.45

1,272,039 NewRiver 4,298 1.531,158,808 Phoenix Spree Deutschland* 3,766 1.352,192,982 Raven Russia REIT 2,610 0.93

14,737 5.26

Software & Computer Services 3.35% [1.58%]232,584 Micro Focus International 5,549 1.98929,000 Softcat 3,893 1.39

9,442 3.37

Support Services 10.45% [14.78%]1,923,789 AA 3,261 1.16 660,820 Babcock International 5,468 1.95

1,984,659 BCA Marketplace 4,351 1.55 744,979 Capita 4,209 1.50

1,603,895 Equiniti 4,829 1.73343,691 Equiniti rights issue expiry 17/10/16 369 0.13 424,000 HomeServe 3,526 1.26217,538 PayPoint 2,074 0.74

2,149,819 Utilitywise 1,354 0.48 29,441 10.50

Tobacco 5.64% [14.94%]499,079 Imperial Tobacco 15,888 5.67

15,888 5.67

Travel & Leisure 1.22% [1.09%]966,986 Hostelworld 3,433 1.23

3,433 1.23


151



Unquoted 7.94% [2.87%]350,375 ABLS Capital 261 0.09 850,000 Accelerated Digital Ventures Shares ‘A’ 808 0.29

40 Accelerated Digital Ventures Shares ‘B’ ** 0 0.00 1,180,869 Atom Bank 1,358 0.48 1,099,960 Autolus 2,508 0.90

4,013 BenevolentAI 2,716 0.97425,000 Cambridge Innovation Capital 336 0.12 34,066 Carrick Therapeutics 62 0.02 58,275 Cell Medica 417 0.15 4,067 Drayson Technologies 300 0.11 55,401 Econic Technologies 400 0.14

2 Evofem 1,335 0.48970,253 Federated Wireless 1,118 0.40

57,814,570 Fibre 7 UK 578 0.21 230,769 Gigaclear 750 0.27 464,468 Hawkeye 464 0.175,287 Metalysis 303 0.11 4,661 Nexeon 450 0.16 60,533 Novabiotics 500 0.18 47,311 Oxford Nanopore 2,460 0.88

869,565 Proton 1,000 0.36 19,126 Ratesetter (Retail Money Market) 700 0.25

9,766,221 RM2 1,136 0.4135,435,861 Sphere Medical 1,000 0.36

79,239 Ultrahaptics 500 0.18 261,780 Viamet Pharmaceuticals 394 0.14 107,775 Yoyo Wallet 467 0.17

22,321 8.00

Portfolio of investments 282,143 100.75 Net other assets (2,104) (0.75)Net assets 280,039 100.00

* Since the previous report the classification headings have been updated by data providers. Comparative figures havebeen updated where appropriate.

** Unlisted


All investments are ordinary Shares unless otherwise stated and admitted to official stock exchange listings.





152


Notes to the Aggregated Financial Statements (continued)For the year ended 30 September 2016

01/10/16 to 30/09/17 29/02/16 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 2,740 3,845 Revenue 3 6,399 1,077

Expenses 4 (2,022) (351)Interest payable and similar charges 5 (1) – Net revenue before taxation 4,376 726 Taxation 6 (1) –Net revenue after taxation 4,375 726 Total return before distributions 7,115 4,571 Distributions 7 (4,375) (726)Change in net assets attributable to Shareholdersfrom investment activities 2,740 3,845

01/10/16 to 30/09/17 29/02/16 to 30/09/16£’000 £’000 £’000 £’000


Amounts receivable on issue of shares 174,746 114,942 Amounts payable on cancellation of Shares (10,036) (7,018)

164,710 107,924 Change in net assets attributable to shareholders from investment activities (see above) 2,740 3,845

Retained distributions on accumulation Shares 490 330



153


30/09/17 30/09/16Note £’000 £’000 £’000 £’000


Current assets:Debtors 8 3,819 3,166 Cash and bank balances 9 1,762 63

Total current assets 5,581 3,229 Total assets 287,724 115,900 Liabilities:Investment liabilities – –Creditors:Bank overdrafts 11 – (25)Distribution payable (3,131) (1,054)Other creditors 10 (4,554) (2,722)



154





£’000 £’000

The net capital gains during the year comprise:Currency gains 15 –Forward currency contracts (20) 1 Non-derivative securities 2,767 3,866 Transaction charges (22) (22)Net capital gains 2,740 3,845

3. Revenue01/10/16 to 29/02/16 to 30/09/17 30/09/16

£’000 £’000

Interest income from Collective Investment Schemes 24 13 Overseas dividends 759 125 UK dividends 5,360 934 UK property income dividends 256 5 Total revenue 6,399 1,077

4. Expenses01/10/16 to 29/02/16 to 30/09/17 30/09/16

£’000 £’000


AMC fees 1,797 3211,797 321





Audit fees for the audit of the financial year ended 30 September 2017 are £15,000 ex Vat (2016: £7,540).

155




£’000 £’000

Interest 1 –Total interest payable and similar charges 1 –

6. Taxation


£’000 £’000

Irrecoverable overseas tax 1 –Total taxation for the year (Note 6 (b)) 1 –



01/10/16 to 29/02/16 to30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 4,376 726 Net revenue for the year multiplied bythe standard rate of corporation tax 875 145

Effects of:Irrecoverable overseas tax 1 –Movement in excess management expenses 348 67 Revenue not subject to corporation tax (1,223) (212)Total tax charge for the year 1 –






156



7. Distributions


01/10/16 to 29/02/16 to30/09/17 30/09/16

£’000 £’000

Interim 1,892 –Final 3,394 1,384 Add: Revenue paid on cancellation of Shares 53 63 Deduct: Revenue received on creation of Shares (964) (721)Net distribution for the year/period 4,375 726 Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 4,375 726 Net distribution for the year 4,375 726


8. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 490 213 Amounts receivable for creation of Shares 1,671 2,949 Income tax recoverable 6 2 Overseas withholding tax recoverable 19 2 Sales awaiting settlement 1,632 –Prepaid expenses 1 –Total debtors 3,819 3,166


£’000 £’000


157



10. Other creditors30/09/17 30/09/16

£’000 £’000

Amounts payable for cancellation of Shares 4 15 Purchases awaiting settlement 4,245 2,604

4,249 2,619 Accrued expensesManager and AgentsAMC fees 203 78

203 78 Depositary and AgentsDepositary fees 13 3 Safe custody fees 8 –Transaction charges 13 6

34 9 Other accrued expensesAudit fees 18 9 Professional fees 49 5 Publication fees 1 2


11. Bank overdrafts30/09/17 30/09/16

£’000 £’000

Bank overdrafts – 25Total bank overdrafts – 25









158



13. Share Classes


%

Share Class A Income 0.90 Share Class A Accumulation 0.90




Share Class A Income 82,064,446 164,041,069 (68,962) – 246,036,553Share Class A Accumulation 25,767,135 3,910,491 (9,365,459) – 20,312,167













159




£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the period before transaction costs:

Equities 227,391 111,332 Collective Investment Schemes 1,600 621

228,991 111,953 Commissions – Equities 105 57 Commissions – Collective Investment Schemes 2 1

Taxes - Equities 720 400 Taxes - Collective Investment Schemes – 3

Total purchase costs 827 461 Gross purchase total 229,818 112,414 Analysis of total sale costsGross sales in the period before transaction costs:

Equities (60,433) (3,596)Collective Investment Schemes (2,189) –

(62,622) (3,596) Commissions – Equities 27 2 Taxes – Equities – –Total sale costs 27 2 Total sales net of transaction costs (62,595) (3,594)



For the Fund’s investment in Collective Investment Scheme holdings there will potentially be dealing spread costs applicable to purchases and sales. However, additionally there are indirect transaction costs suffered in those underlying funds, throughout the holdingperiod for the instruments, which are not separately identifiable and do not form part of theanalysis above.

160




01/10/16 to 29/02/16 to30/09/17 30/09/16






01/10/16 to 29/02/16 to30/09/17 30/09/16


Commissions 0.0402% 0.0913%*Taxes 0.3619% 0.6574%


* Data in relation to comparative has been restated.





Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 261,368 – 109,465 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly – – – –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability 22,332 – 3,206 –

283,700 – 112,671 –

161







Share Class A IncomeGroup 1 0.9945 – 0.9945 N/AGroup 2 0.5387 0.4558 0.9945 N/A

Share Class A AccumulationGroup 1 1.0034 – 1.0034 N/AGroup 2 0.5708 0.4326 1.0034 N/A






Share Class A AccumulationGroup 1 1.2978 – 1.2978 1.2809Group 2 0.6129 0.6849 1.2978 1.2809

Share Classes A Income and Accumulation launched on 29 February 2016.

162

Omnis UK Bond Fund


To achieve a return of a combination of income and capital growth.

Investment Policy

The Fund intends to invest primarily in Sterling denominated government and non-governmentfixed and variable interest rate securities. The Fund may also invest in other transferable securities(for example, foreign currency fixed and variable interest rate securities), units in collectiveinvestment schemes, money market instruments deposits, derivatives and warrants as detailed inthe Prospectus. No more than 10% of the Scheme Property of the Fund will be invested in othercollective investment schemes.


Investment Review

Over the period the Omnis UK Bond Fund returned -3.62% and the benchmark (BoA ML SterlingBroad Market) returned -2.75% [source: Financial Express, bid to bid, net income reinvested].

Duration positioning was positive for performance overall. Having been broadly neutral in the lastthree months of 2016 when gilt yields were rising, the portfolio’s effective duration was longer thanthat of the index in the first quarter of 2017 as yields fell back. The strong positive contributionduring this period more than offset detraction thereafter. Meanwhile, asset allocation had a modestpositive effect. The fund was invested with a slight overweight to credit throughout the year. Thiswas beneficial as credit spreads over gilts narrowed over the period, particularly in the second half,when strong company earnings supported corporate credit. However, selection effect was a biggerdriver of performance, contributing around 37 basis points of the relative return.

Given what we considered to be full gilt valuations, we went into the period broadly in line with thebenchmark in terms of duration. However, as Donald Trump’s victory in the US presidential electionsparked a rally in risk assets and a corresponding rise in core bond yields, we decided to move theportfolio’s relative duration long of the index towards the end of 2016. Accordingly, our activity inthe gilts market accounted for the largest transactions over the period.

As mentioned, we maintained a slight overweight to credit risk throughout. As we potentially headtowards the end of what has been a particularly lengthy credit cycle the compensation for reachingdown the credit spectrum for extra return appears unappealing. Consequently, we are favouringmore defensive industry sectors including regulated utilities, healthcare and infrastructure in ourportfolio construction.

In terms of transaction activity within the corporate-bond market, the largest purchases includednew issues from Anheuser Busch InBev (2029), Annington Funding (2029), Akelius ResidentialProperty (2020), GKN Holdings (2032) and Digital Stout (2023). We also exited several issuers, withoutright sales of Virgin Money (2020), Aspire Defence (2040), Citigroup (2018, 2039), MondelezInternational (2035) and London & Quadrant Housing Trust (2026).


163

Omnis UK Bond Fund

Outlook

The domestic economic environment remains relatively weak and supportive of safe haven assets,such as gilts. UK consumers face falling real wages and rising personal debt, while Brexit-relateduncertainty will likely continue to hamper private-sector investment.

More positively, exports should provide some support for the economy, given the weaker pound,and the recent currency driven spike in inflation should be temporary.

The outlook for UK fixed income remains challenging, clouded by still-lofty gilt valuations and tightercorporate bond spreads. Nevertheless, investor demand for income without too much risk remainsa powerful supportive factor for investment-grade credit. Given this background, we expect acontinuation of the more muted returns seen this year compared to 2016.

Investment ManagerThreadneedle Asset Management Limited17 October 2017


164

Omnis UK Bond Fund

A Income30/09/2017 30/09/2016 30/09/2015

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 119.97 107.48 102.39 Return before operating charges* (2.63) 15.07 7.97 Operating charges (0.57) (0.55) (0.54)Return after operating charges (3.20) 14.52 7.43



PerformanceReturn after operating charges (2.67%) 13.51% 7.26%




165

Omnis UK Bond Fund



Date (%) (%) (%) (%)








Risk Warning






Performance Information As at 30 September 2017

166

Omnis UK Bond Fund


Collective Investment Schemes 0.00% [1.08%]

Corporate Bonds 31.48% [30.56%]€ 2,210,000 Akelius Residential Property 1.75% 07/02/2025 1,961 0.21 £3,320,000 Akelius Residential Property 2.375% 15/08/2025 3,237 0.35 £1,545,000 America Movil 6.375% 06/09/2073 1,694 0.19 £2,700,000 American International 5% 26/04/2023 3,103 0.34 £1,060,000 Amgen 5.5% 07/12/2026 1,324 0.14

£910,000 Anglian Water Services Financing 2.625% 15/06/2027 892 0.10 £5,065,000 Anheuser-Busch InBev 2.25% 24/05/2029 4,892 0.53 £2,235,000 Anheuser-Busch InBev 4% 24/09/2025 2,539 0.28 £3,666,000 Annington Funding 3.184% 12/07/2029 3,697 0.40 £1,655,000 Annington Funding 3.935% 12/07/2047 1,753 0.19 £1,884,000 APT Pipelines 3.5% 22/03/2030 1,951 0.21 £1,924,000 APT Pipelines 4.25% 26/11/2024 2,139 0.23 £2,285,000 Asciano Finance 5% 19/09/2023 2,548 0.28 £2,000,000 AT&T 4.25% 01/06/2043 2,085 0.23 £3,059,000 AT&T 4.375% 14/09/2029 3,390 0.37 £3,900,000 AT&T 5.5% 15/03/2027 4,710 0.51 £3,740,000 Aviva 6.625% 03/06/2041 4,265 0.47

£850,000 Babcock International 1.875% 05/10/2026 816 0.09 £1,953,000 BAE Systems 4.125% 08/06/2022 2,171 0.24 £5,400,000 Bank Nederlandse Gemeenten 5.75% 18/01/2019 5,746 0.63 £1,985,000 Bank of America 2.3% 25/07/2025 1,983 0.22

£950,000 Bank of America 7% 31/07/2028 1,327 0.15 £2,129,000 Barclays 3.125% 17/01/2024 2,202 0.24 £3,339,000 Barclays Bank 10% 21/05/2021 4,213 0.46 £1,015,000 BASF 1.75% 11/03/2025 1,010 0.11 £3,635,000 BAT Capital 2.125% 15/08/2025 3,572 0.39 £1,967,000 BAT International Finance 1.75% 05/07/2021 1,983 0.22 £1,720,000 BG Energy Capital 6.5% 30/11/2072 1,733 0.19 £2,008,000 BHP Billiton Finance 6.5% 22/10/2077 2,334 0.26 £1,200,000 BPCE 5.25% 16/04/2029 1,405 0.15

£876,777 Broadgate Financing 4.949% 05/04/2031 1,041 0.11 £2,724,000 BUPA Finance 2% 05/04/2024 2,695 0.29 £1,432,000 BUPA Finance 3.375% 17/06/2021 1,524 0.17 £1,825,000 BUPA Finance 5% 25/04/2023 2,044 0.22 £1,253,000 BUPA Finance 5% 08/12/2026 1,416 0.15 £4,160,000 Cadent Finance 2.125% 22/09/2028 4,012 0.44 £2,220,000 Cadent Finance 2.625% 22/09/2038 2,092 0.23 £1,300,000 Cadent Finance 2.75% 22/09/2046 1,229 0.13 £2,232,000 Clydesdale Bank 4.625% 08/06/2026 2,707 0.30

£975,000 Co-Operative Bank 4.75% 11/11/2021 1,069 0.12 £2,600,000 Credit Suisse 2.125% 12/09/2025 2,558 0.28 £1,950,000 Credit Suisse Group Funding Guernsey 2.75% 08/08/2025 1,994 0.22

£952,000 Crh Finance UK 4.125% 02/12/2029 1,078 0.12


167

Omnis UK Bond Fund


Corporate Bonds 31.48% [30.56%] (continued)£1,550,000 CYBG 3.125% 22/06/2025 1,547 0.17 £1,700,000 Deutsche Bank 1.875% 28/02/2020 1,705 0.19 £2,645,000 Deutsche Telekom International Finance 1.25% 06/10/2023 2,581 0.28 £2,280,000 Digital Stout 3.3% 19/07/2029 2,292 0.25 £2,888,000 Digital Stout 4.75% 13/10/2023 3,238 0.35 £1,440,000 Discovery Communications 2.5% 20/09/2024 1,408 0.15 £2,650,000 DS Smith 2.875% 26/07/2029 2,587 0.28 £1,381,000 E.ON International Finance 6.375% 07/06/2032 1,938 0.21 £1,820,000 Eastern Power Networks 4.75% 30/09/2021 2,057 0.22 £1,300,000 Eastern Power Networks 5.75% 08/03/2024 1,589 0.17 £2,180,000 Eversholt Funding 3.529% 07/08/2042 2,145 0.23 £1,785,000 Eversholt Funding 6.359% 02/12/2025 2,273 0.25

£930,000 First Hydro Finance 9% 31/07/2021 1,175 0.13 £2,104,000 G4S 7.75% 13/05/2019 2,311 0.25 € 875,000 G4S International Finance 1.5% 02/06/2024 777 0.09

£2,835,000 GKN 3.375% 12/05/2032 2,800 0.31 £950,000 GKN 5.375% 19/09/2022 1,099 0.12

£1,525,000 GKN 6.75% 28/10/2019 1,694 0.19 £1,338,000 Glencore Finance Europe 6% 03/04/2022 1,550 0.17 £2,546,000 Global Switch 4.375% 13/12/2022 2,827 0.31

£862,872 Greene King Finance 4.0643% 15/03/2035 940 0.10 £1,826,000 Greene King Finance 5.106% 15/03/2034 2,148 0.23

£100,000 Hammerson 3.5% 27/10/2025 106 0.01 £1,100,000 Heathrow Funding 4.625% 31/10/2046 1,407 0.15 £2,295,000 Heathrow Funding 5.225% 15/02/2023 2,681 0.29 £1,755,000 HSBC 2.625% 16/08/2028 1,750 0.19 £1,200,000 HSBC Bank 5.375% 22/08/2033 1,539 0.17

£760,000 Imperial Brands Finance 5.5% 28/09/2026 930 0.10 £1,845,000 Imperial Brands Finance 7.75% 24/06/2019 2,047 0.22 £1,220,000 ING Bank 6.875% 29/05/2023 1,262 0.14

£100,000 innogy Finance 4.75% 31/01/2034 122 0.01 £500,000 innogy Finance 6.125% 06/07/2039 728 0.08

£5,332,000 innogy Finance 6.25% 03/06/2030 7,253 0.79 £1,238,400 Integrated Accommodation Services 6.48% 31/03/2029 1,565 0.17 £1,700,000 InterContinental Hotels 3.875% 28/11/2022 1,858 0.20

£944,984 Juturna European Loan Conduit No 16 5.0636% 10/08/2033 1,146 0.13 £2,315,000 Kraft Heinz Foods 4.125% 01/07/2027 2,534 0.28 £1,700,000 Kreditanstalt fuer Wiederaufbau 1% 07/12/2017 1,702 0.19 £1,575,000 Kreditanstalt fuer Wiederaufbau 6% 07/12/2028 2,260 0.25

£875,000 Land Securities Capital Markets 1.974% 08/02/2026 882 0.10 £2,100,000 LCR Finance 4.5% 07/12/2028 2,676 0.29 £2,460,000 Legal & General 5.375% 27/10/2045 2,708 0.30 £1,243,000 Legal & General 5.5% 27/06/2064 1,341 0.15 £1,676,000 Legal & General 10% 23/07/2041 2,144 0.23 £1,081,000 Lloyds Bank 6% 08/02/2029 1,508 0.16


168

Omnis UK Bond Fund


Corporate Bonds 31.48% [30.56%] (continued)£1,864,000 Lloyds Bank 7.625% 22/04/2025 2,491 0.27 £2,936,000 London Power Networks 6.125% 07/06/2027 3,881 0.42

£629,491 Longstone Finance 4.791% 19/04/2036 727 0.08 £1,178,000 Marks & Spencer 3% 08/12/2023 1,202 0.13 £1,007,569 Meadowhall Finance 4.986% 12/07/2037 1,237 0.14 £1,500,000 Metropolitan Life Global Funding I 2.625% 05/12/2022 1,578 0.17

£981,943 Mitchells & Butlers Finance 5.574% 15/12/2030 1,147 0.13 £1,961,000 Motability Operations 4.375% 08/02/2027 2,325 0.25 £1,663,000 National Express 2.5% 11/11/2023 1,676 0.18 £4,110,000 National Westminster Bank 6.5% 07/09/2021 4,798 0.52 £1,140,000 NGG Finance 5.625% 18/06/2073 1,288 0.14 £2,279,000 Northern Gas Networks Finance 4.875% 30/06/2027 2,798 0.31 £1,090,000 Northern Powergrid Yorkshire 2.5% 01/04/2025 1,136 0.12 £1,305,000 Northumbrian Water Finance 1.625% 11/10/2026 1,244 0.14

£485,000 Peabody Capital No 2 4.625% 12/12/2053 672 0.07 £2,310,000 Pennon 2.875% Perpetual 2,324 0.25 £1,315,000 Phoenix 4.125% 20/07/2022 1,383 0.15 £1,200,000 Places For People Treasury 2.875% 17/08/2026 1,172 0.13 £1,220,000 Porterbrook Rail Finance 4.625% 04/04/2029 1,425 0.16

£243,000 PostNL 7.5% 14/08/2018 256 0.03 £2,195,000 Procter & Gamble 1.8% 03/05/2029 2,122 0.23

£775,000 Prudential 5.7% 19/12/2063 879 0.10 £370,000 RAC Bond 4.565% 06/05/2046 400 0.04 £440,000 RSA Insurance 5.125% 10/10/2045 489 0.05

£2,206,000 Scentre 2.375% 08/04/2022 2,280 0.25 £580,000 Scotland Gas Networks 3.25% 08/03/2027 621 0.07 £725,000 Segro 6.75% 23/11/2021 879 0.10

£1,932,000 Severn Trent Utilities Finance 3.625% 16/01/2026 2,137 0.23 $653,000 SGSP Australia Assets Pty 3.25% 29/07/2026 479 0.05

£1,695,000 SGSP Australia Assets Pty 5.125% 11/02/2021 1,890 0.21 £800,000 Sky 6% 21/05/2027 1,024 0.11 £457,000 Southern Gas Networks 2.5% 03/02/2025 472 0.05

£1,000,000 Southern Gas Networks 4.875% 21/03/2029 1,246 0.14 £1,060,000 Stagecoach 4% 29/09/2025 1,143 0.12 £1,610,000 Standard Chartered 4.375% 18/01/2038 1,789 0.20 £2,850,000 Telereal Securitisation 4.0902% 10/12/2033 2,980 0.33 £1,758,215 Telereal Securitisation 5.9478% 10/12/2033 2,165 0.24 £2,700,000 Temasek Financial I 4.625% 26/07/2022 3,115 0.34 £1,241,106 Tesco Property Finance 1 7.6227% 13/07/2039 1,605 0.18

£976,349 Tesco Property Finance 3 5.744% 13/04/2040 1,088 0.12 £661,054 Tesco Property Finance 5 5.6611% 13/10/2041 727 0.08

£1,423,000 Thames Water Utilities Cayman Finance 1.875% 24/01/2024 1,396 0.15 £1,610,000 Thames Water Utilities Cayman Finance 2.375% 03/05/2023 1,595 0.17

£893,000 Thames Water Utilities Cayman Finance 3.5% 25/02/2028 965 0.11


169

Omnis UK Bond Fund


Corporate Bonds 31.48% [30.56%](continued)£1,199,000 Time Warner Cable 5.25% 15/07/2042 1,352 0.15

£900,000 Time Warner Cable 5.75% 02/06/2031 1,060 0.12 £1,725,000 Transport for London 2.125% 24/04/2025 1,785 0.20 £2,865,000 TSB Banking 5.75% 06/05/2026 3,111 0.34

£640,000 UNITE USAF II 3.921% 30/06/2030 717 0.08 £1,475,000 Verizon Communications 4.75% 17/02/2034 1,716 0.19

£530,000 Vicinity Centres 3.375% 07/04/2026 566 0.06 € 1,400,000 Vonovia Finance 4% Perpetual 1,342 0.15 £2,224,000 Wells Fargo 2% 28/07/2025 2,180 0.24 £2,771,000 Welltower 4.8% 20/11/2028 3,207 0.35 £3,449,000 Western Power Distribution 3.625% 06/11/2023 3,707 0.41 £1,937,000 Western Power Distribution South West 5.875% 25/03/2027 2,504 0.27

£475,000 Western Power Distribution West Midlands 3.875% 17/10/2024 530 0.06 £2,100,000 Western Power Distribution West Midlands 5.75% 16/04/2032 2,849 0.31

£750,000 Western Power Distribution West Midlands 6% 09/05/2025 956 0.10 £2,433,000 Westfield America Management 2.125% 30/03/2025 2,368 0.26 £2,195,000 Wm Morrison Supermarkets 4.625% 08/12/2023 2,491 0.27

£585,000 WPP Finance 2013 2.875% 14/09/2046 501 0.05288,152 31.48

Government Bonds 65.35% [65.11%]£75,749,000 UK Treasury 0.75% 22/07/2023 74,971 8.19 £27,181,000 UK Treasury 1.25% 22/07/2018 27,365 2.99 £21,948,000 UK Treasury 1.25% 22/07/2027 21,645 2.37 £43,114,000 UK Treasury 1.5% 22/07/2047 39,058 4.27 £99,958,000 UK Treasury 1.75% 07/09/2037 97,218 10.63 £72,109,000 UK Treasury 1.75% 22/07/2019 73,783 8.06 £10,691,000 UK Treasury 2% 22/07/2020 11,125 1.22 £20,693,500 UK Treasury 2.5% 22/07/2065 25,817 2.82 £14,844,000 UK Treasury 3.25% 22/01/2044 18,803 2.06 £18,934,000 UK Treasury 3.5% 22/01/2045 25,136 2.75 £8,715,000 UK Treasury 3.75% 22/07/2052 12,987 1.42 £12,247,000 UK Treasury 4% 22/01/2060 20,406 2.23 £15,143,000 UK Treasury 4.25% 07/06/2032 20,214 2.21 £12,433,000 UK Treasury 4.25% 07/09/2039 17,623 1.93 £6,298,000 UK Treasury 4.25% 07/12/2046 9,549 1.04 £2,587,000 UK Treasury 4.25% 07/12/2049 4,061 0.44 £18,649,000 UK Treasury 4.25% 07/12/2055 31,293 3.42 £14,509,000 UK Treasury 4.5% 07/03/2019 15,351 1.68 £7,356,000 UK Treasury 4.5% 07/12/2042 11,126 1.22 £18,885,000 UK Treasury 4.75% 07/12/2030 26,004 2.84 £7,848,000 UK Treasury 4.75% 07/12/2038 11,767 1.29 £2,293,000 United Mexican States Treasury 5.625% 19/03/2114 2,469 0.27

597,771 65.35


170

Omnis UK Bond Fund


Municipal Bonds 0.16% [0.25%]£1,164,000 University of Liverpool 3.375% 25/06/2055 1,428 0.16

1,428 0.16

Forward Currency Contracts 0.02% [(0.02%)]Bought USD9,000 for GBP6,658 Settlement 21/11/2017 0 0.00Sold EUR4,679,500 for GBP4,264,347 Settlement 21/11/2017 136 0.01Sold USD12,000 for GBP9,177 Settlement 21/11/2017 0 0.00Sold USD1,782,000 for GBP1,380,490 Settlement 21/11/2017 54 0.01

190 0.02Portfolio of investments 887,541 97.01Net other assets 27,379 2.99Net assets 914,920 100.00


All investments are ordinary bonds unless otherwise stated.


Gross purchases for the year: £1,598,645,000 [2016: £633,509,000].

Total sales net of transaction costs for the year: £1,277,997,000 [2016: £450,501,000].

Associated Bond Ratings as at 30 September 2017% of TotalNet Assets

Bond RatingAAA 2.14AA 66.44A 4.23BBB 23.44BB 0.38Not rated 0.38Bonds 97.01Uninvested Cash 2.99Net Assets 100.00

The above information has been supplied by the Investment Manager. Bonds not rated are deemedby the Investment Manager to be BBB- or above, but the rating has not been sought by the issuer.


171

Omnis UK Bond Fund

01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital (losses)/gains 2 (27,504) 55,234Revenue 3 14,507 11,584

Expenses 4 (3,765) (2,354)Interest payable and similar charges 5 (1) (1)Net revenue before taxation 10,741 9,229 Taxation 6 – –Net revenue after taxation 10,741 9,229Total return before distributions (16,763) 64,463 Distributions 7 (10,741) (9,229)Change in net assetsattributable to Shareholdersfrom investment activities (27,504) 55,234

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000



of Shares (1,539) (1,422)323,357 173,123

Change in net assets attributableto Shareholders from investment activities (see above) (27,504) 55,234




172

Omnis UK Bond Fund

30/09/17 30/09/16Note £’000 £’000 £’000 £’000




Total current assets 34,058 28,860 Total assets 921,599 629,306 Liabilities:

Investment liabilities – (80)Creditors:

Distribution payable (6,245) (5,119)Other creditors 10 (434) (5,040)

Total creditors (6,679) (10,159)Total liabilities (6,679) (10,239)Net assets attributableto Shareholders 914,920 619,067


173

Omnis UK Bond Fund



2. Net capital (losses)/gains01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000

The net capital (losses)/gains during the year comprise:Currency losses (44) (5)Forward currency contracts (35) (381)Non-derivative securities (27,415) 55,626Transaction charges (10) (6)Net capital (losses)/gains (27,504) 55,234

3. Revenue01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000

Bank interest 2 3Interest from Debt Securities 14,504 11,275Interest income from Collective Investment Schemes – 231Rebates received from underlying funds 1 75Total revenue 14,507 11,584

4. Expenses01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000


AMC fees 3,467 2,1683,467 2,168



269 160Other expensesAudit fees 9 9Professional fees 18 15Publication fees 2 2

29 26Total expenses 3,765 2,354


Notes to the Financial Statements For the year ended 30 September 2017

174

Omnis UK Bond Fund

5. Interest payable and similar charges01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000

Interest 1 1Total interest payable and similar charges 1 1

6. Taxation

(a) Analysis of the tax charge in the year01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000

Total taxation for the year (Note 6 (b)) – –



01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 10,741 9,229Net revenue for the year multiplied by the standard

rate of corporation tax 2,148 1,846Effects of:Tax deductible interest distributions (2,148) (1,846)Total tax charge for the year – –





175

Omnis UK Bond Fund

7. Distributions


01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Interim 5,667 3,878Final 6,245 4,193Add: Revenue paid on cancellation of Shares 5 9Deduct: Revenue received on creation of Shares (1,176) (697)Income tax withheld at source – 1,846Net distribution for the year 10,741 9,229Reconciliation of net revenue after taxationto distributions



8. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 6,823 4,382Amounts due for rebates from underlying funds – 8Amounts receivable for creation of Shares 4,096 4,779Sales awaiting settlement 41 5,894Prepaid expenses 2 2Total debtors 10,962 15,065


£’000 £’000

Cash and bank balances 23,096 13,765Amount held at futures clearing houses and brokers – 30Total cash and bank balances 23,096 13,795


176

Omnis UK Bond Fund

10. Other creditors30/09/17 30/09/16

£’000 £’000

Purchases awaiting settlement – 4,783– 4,783


340 226Depositary and AgentsDepositary fees 43 14Safe custody fees 36 6Transaction charges 5 1

84 21Other accrued expensesAudit fees 9 9Publication fees 1 1

10 10Total other creditors 434 5,040









12. Share Classes

The Share Classes and ACD’s Annual Management Charges applicable to each Share classare as follows:

%







177

Omnis UK Bond Fund










The table below shows the interest rate risk profile at the balance sheet date:



30/09/17Euro 12 4,080 54 4,146Sterling 22,231 882,792 16,551 921,574US Dollar 853 479 2 1,334Total 23,096 887,351 16,607 927,05430/09/16Euro 48 1,281 38 1,367Sterling 13,649 591,242 24,343 629,234US Dollar 98 1,250 41 1,389Total 13,795 593,773 24,422 631,990


178

Omnis UK Bond Fund



Floating rate Fixed rate Financialfinancial financial liabilities notliabilities liabilities carrying interest Total

Currency Liabilities £’000 £’000 £’000 £’000

30/09/17Euro – – 4,128 4,128Sterling – – 6,678 6,678US Dollar – – 1,328 1,328Total – – 12,134 12,13430/09/16Euro – – 1,359 1,359Sterling – – 10,158 10,158US Dollar – – 1,406 1,406Total – – 12,923 12,923


15. Portfolio transaction costs

There were no broker transaction cost incurred during the year to 30 September 2017(30/09/16: nil).






Valuation techniqueLevel 1: The unadjusted quotedprice in an active market foridentical assets or liabilities 595,302 – 400,175 –Level 2: Inputs other than quotedprices included within Level 1 thatare observable for the asset orliability, either directly or indirectly 292,239 – 200,271 (80)Level 3: Inputs are unobservable(ie for which market data isunavailable) for the asset or liability – – – –

887,541 – 600,446 (80)


179

Omnis UK Bond Fund



Distribution DistributionGross paid paid


Share Class A Income#Group 1 0.8468 – 0.8468 0.9270Group 2 0.3819 0.4649 0.8468 0.9270



Distribution DistributionGross payable paid


Share Class A Income#Group 1 0.7859 – 0.7859 0.8125Group 2 0.4044 0.3815 0.7859 0.8125

# Share class converted from net to gross on 1 October 2016.


180

Omnis UK Equity Fund



Investment Policy

The Fund intends to invest primarily in companies incorporated in, or significantly exposed to, theUnited Kingdom. The Fund may also invest in other transferable securities (for example, internationalequities), units in collective investment schemes, money market instruments, warrants and depositsas detailed in the Prospectus. No more than 10% of the Scheme Property of the Fund will beinvested in other collective investment schemes.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives mayalso be used for the purpose of hedging and efficient portfolio management.

Investment Review

Over the period the Omnis UK Equity Fund returned 11.01% and the benchmark (FTSE All-Share)returned 11.94% [source: Financial Express, bid to bid, net income reinvested].

The Fund benefited from overweight holdings in outperforming Rio Tinto and South 32, on improvingconditions in metals markets. Another positive contributor was Rentokil as it re-rated on increasedinvestor expectations about its long-term growth prospects. Underweight or nil holdings in Shireand Reckitt Benckiser also added value as both stocks underperformed on strategic and operationalconcerns. The portfolio was impacted by its holding in underperforming Provident Financial on profitwarnings in its home collected credit business, while Barclays underperformed on challenging tradingin its investment banking division. BT also underperformed on deteriorating trading whileunderweights or nil holdings in outperforming Unilever, HSBC and Glencore impacted the Fund’sperformance relative to the index.

Turning to activity, our stock selection has been driven by a pragmatic process whereby we havebeen seeking to identify mispriced opportunities with the inflection points necessary to deliver shareprice outperformance. The approach is bottom up and style neutral with holdings including value,growth, quality and restructuring ideas. Within this context, new holdings during the period includedBarclays, Capita, Johnson Matthey, Marks & Spencer, Micro Focus, Provident Financial, Qinetiq,Sainsbury, Smiths Group and Smurfit Kappa. We sold out of several stocks where we saw valuationdownside. These included BT, Carnival, Centrica, GSK, Halfords, HSBC, IHG, Man Group, Pearson,Prudential, Redrow, Rolls Royce, Shire, Tesco and Unilever.

Market Overview

The start of the period was dominated by the US presidential election and the surprise victory ofDonald Trump. Investors initially largely welcomed Trump’s pro-growth plans (cutting taxes, boostinginfrastructure spending, reducing regulation) but have since doubted the administration’s ability toimplement its policies. US economic data remained encouraging, with jobs figures showing particularstrength. However, inflation remained muted. At the end of the period, the Federal Reserve signalledits intention to start normalising monetary policy.

Meanwhile in Europe, the economic recovery continued to strengthen. The European Central Bank(ECB) extended its quantitative easing programme to December 2017; speculation gathered towardsthe end of the period that this would be extended into 2018 but that the monthly amount would bereduced. Meanwhile, political concerns were allayed with centrist candidates winning the Dutch andFrench elections. Inflation continued to be below the ECB’s target but worries over deflation receded.


181


Market Overview (continued)

It was a slightly different story in the UK which saw higher inflation during the period, largely due tosterling weakness following the Brexit vote in June 2016. The weaker currency meant more expensiveimports over the year. The Bank of England kept monetary policy unchanged, taking the view thatthe higher inflation would pass once the effect of weaker sterling dropped out of annual comparisons.Uncertainty over the UK’s Brexit plans continued. Prime minister Theresa May called a general electionin June 2017. The move was widely perceived as an effort to secure a mandate for the Brexitnegotiations but the Conservative Party lost its overall parliamentary majority.

Outlook

UK and other equity markets have prospered recently on the back of the so-called ‘goldilocks’combination of moderate growth, low inflation and supportive monetary policy. Any change inexpectations regarding any of these variables will affect UK equities both at the headline level andin terms of stock and sector leadership. Investors’ growing belief during September that UK and USrate tightening was getting closer should be seen in this context.

Regarding the sustainability of the goldilocks scenario, our feeling is that the consensus belief inmoderate global growth is supported by leading indicators while current economic data areconsistent with continued low but gently rising inflation. In this context, growing expectations amonginvestors of an inflection in global monetary policy also look justified. In short, we sense that marketsare beginning to recognise once again the alliterative ‘nascent normalisation narrative’ which hademerged most recently in the summer of 2016. Indeed, at the end of September, the market impliedprobability of the Fed hiking rates at its December 2017 meeting stood at 70%, compared to 34%a month previously. The comparable figure for a hike by the Bank of England at its Novembermeeting stood at 78%, up from 19% at the end of August. Meanwhile, US 10-year governmentbond yields and UK 10-year gilt yields stood at 2.3% and 1.4% respectively at month end against2017 lows of 2% and 0.9%

As to the implications for portfolio strategy, we are mindful that higher bond yields have historicallybeen positive for the performance of financials and cyclicals and negative for staples and utilities.The lower relative valuations in the former categories certainly have an influence on the prioritisationof our research efforts. This does not detract, however, from our ongoing bottom up focus,particularly at a time when technological, regulatory and political changes are having such aprofound effect on the competitive position of numerous companies. With this backdrop in mind,the portfolio is populated pragmatically with a range of holdings spanning growth, quality, valueand restructuring stories, all with attractive degrees of mispricing and the potential for the inflectionpoints to deliver share price outperformance.

Investment ManagerSchroder Investment Management Limited13 October 2017


182


A Income30/09/2017 30/09/2016 30/09/2015

(p) (p) (p)








183




ACD Other Transaction operatingAMC Rebate expenses costs charge

Date (%) (%) (%) (%) (%)

30/09/2017Share Class A Income 0.65 (0.02) 0.04 0.00 0.67

30/09/2016Share Class A Income 0.65 0.00 0.04 0.00 0.69






Risk Warning






184



Aerospace & Defence 4.97% [1.83%]5,698,604 BAE Systems 35,958 3.93 3,874,293 QinetiQ 9,558 1.04

45,516 4.97

Banks 11.24% [7.95%]17,675,047 Barclays 34,166 3.73 71,550,469 Lloyds Banking 48,447 5.29 2,738,558 Standard Chartered 20,306 2.22

102,919 11.24

Beverages 3.83% [0.00%]1,428,457 Diageo 35,040 3.83

35,040 3.83

Chemicals 1.26% [0.00%]337,840 Johnson Matthey 11,554 1.26

11,554 1.26

Construction & Materials 4.18% [0.00%]1,348,933 CRH 38,242 4.18

38,242 4.18

Electronic & Electrical Equipment 1.17% [0.00%]442,545 Spectris 10,661 1.17

10,661 1.17

Equity Investment Instruments 0.00% [0.39%]

Financial Services 4.04% [5.24%]2,058,189 NEX 13,605 1.49

697,876 Provident Financial 5,785 0.63 3,348,805 Tullett Prebon 17,531 1.92

36,921 4.04

Fixed Line Telecommunications 0.00% [2.95%]

Food & Drug Retailers 2.54% [2.02%]9,759,278 J Sainsbury 23,217 2.54

23,217 2.54

Gas, Water & Multi-utilities 0.00% [1.92%]

General Industrials 4.76% [0.00%]1,142,938 Smiths 18,024 1.97 1,095,136 Smurfit Kappa 25,517 2.79

43,541 4.76

General Retailers 2.63% [0.70%]6,818,072 Marks & Spencer 24,075 2.63

24,075 2.63


185



Health Care Equipment & Services 2.13% [0.00%]1,447,295 Smith & Nephew 19,495 2.13

19,495 2.13

Household Goods & Home Construction 1.14% [2.05%]955,729 Bovis Homes 10,456 1.14

10,456 1.14

Industrial Engineering 1.82% [2.02%]846,856 Weir 16,641 1.82

16,641 1.82

Industrial Transportation 0.77% [1.05%]453,299 James Fisher & Sons 7,022 0.77

7,022 0.77

Leisure Goods 0.99% [0.71%]5,244,986 Photo-Me 9,100 0.99

9,100 0.99

Life Insurance 4.39% [8.71%]5,798,977 Aviva 29,836 3.26 7,045,099 Just 10,314 1.13

40,150 4.39

Media 6.24% [7.49%]1,733,109 Daily Mail & General Trust 11,239 1.23

12,180,564 ITV 21,267 2.32 1,502,363 RELX 24,594 2.69

57,100 6.24

Mining 7.86% [4.42%]1,564,097 BHP Billiton 20,560 2.25 1,109,773 Rio Tinto 38,542 4.21 6,626,461 South32 12,773 1.40

71,875 7.86

Mobile Telecommunications 2.17% [4.32%]9,496,335 Vodafone 19,819 2.17

19,819 2.17

Oil & Gas Producers 10.75% [11.68%]13,628,978 BP 65,051 7.11 1,453,473 Royal Dutch Shell ‘B’ Shares 33,343 3.64

98,394 10.75

Oil Equipment, Services & Distribution 0.00% [0.93%]

Personal Goods 1.30% [4.07%]678,887 Burberry 11,928 1.30

11,928 1.30


186



Pharmaceuticals & Biotechnology 5.13% [11.65%]736,031 AstraZeneca 36,463 3.98

1,560,382 BTG 10,540 1.15 47,003 5.13

Real Estate Investment & Services 0.94% [1.05%]3,201,525 Grainger 8,583 0.94

8,583 0.94

Software & Computer Services 2.48% [0.00%]949,304 Micro Focus 22,650 2.48

22,650 2.48

Support Services 4.52% [2.04%]2,455,899 Capita 13,876 1.52 9,133,098 Rentokil Initial 27,454 3.00

41,330 4.52

Tobacco 7.30% [8.27%]1,101,102 British American Tobacco 51,443 5.62

482,568 Imperial Tobacco 15,363 1.68 66,806 7.30

Travel and Leisure 0.00% [4.31%]Portfolio of investments 920,038 100.55 Net other assets (5,073) (0.55)Net assets 914,965 100.00







187


01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 52,687 56,747Revenue 3 30,881 23,788

Expenses 4 (5,619) (4,034)Net revenue before taxation 25,262 19,754 Taxation 5 (74) (3)Net revenue after taxation 25,188 19,751 Total return before distributions 77,875 76,498 Distributions 6 (25,188) (19,751)Change in net assets attributable to Shareholdersfrom investment activities 52,687 56,747

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000


Amounts receivable on issue of Shares 164,407 182,220

Amounts payable on cancellation of Shares (4,494) (6,616)

159,913 175,604 Change in net assets attributable

to Shareholders from investment activities (see above) 52,687 56,747




188


30/09/17 30/09/16Note £’000 £’000 £’000 £’000




Total current assets 24,090 29,138 Total assets 944,128 715,874 Liabilities:

Investment liabilities – –Creditors:

Distribution payable (15,461) (13,106)Other creditors 9 (13,702) (403)



189





£’000 £’000

The net capital gains during the year comprise:Currency (losses)/gains (4) 7 Non-derivative securities 52,697 56,746 Transaction charges (6) (6)Net capital gains 52,687 56,747

3. Revenue01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Bank interest 2 7 Overseas dividends 1,095 43 Rebates received from underlying funds 150 –Scrip dividends 1,921 1,745 UK dividends 27,713 21,993 Total revenue 30,881 23,788

4. Expenses01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000


AMC fees 5,316 3,819 5,316 3,819




31 30 Total expenses 5,619 4,034 Audit fees are £7,700 ex VAT (2016: £7,550).


190


5. Taxation01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

(a) Analysis of the tax charge in the year




01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 25,262 19,754 Net revenue for the year multiplied by the

standard rate of corporation tax 5,052 3,951 Effects of:Irrecoverable overseas tax 74 3 Movement in excess management expenses 1,093 804 Revenue not subject to corporation tax (6,145) (4,755)Total tax charge for the year 74 3





At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £2,512,093 (2016: £1,419,133) in relation to surplus management expenses. Itis unlikely that the Fund will generate sufficient taxable profits in the future to utilise thisamount and therefore no deferred tax asset has been recognised in the year.


191


6. Distributions


01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Interim 11,063 7,878 Final 15,461 13,106 Add: Revenue paid on cancellation of Shares 37 69 Deduct: Revenue received on creation of Shares (1,373) (1,302)Net distribution for the year 25,188 19,751 Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 25,188 19,751 Net distribution for the year 25,188 19,751


7. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 1,939 887 Amounts due for rebates from underlying funds 74 –Amounts receivable for creation of Shares 3,651 4,479 Overseas withholding tax recoverable 3 2 Sales awaiting settlement 4,247 –Prepaid expenses 2 2 Total debtors 9,916 5,370


£’000 £’000

Cash and bank balances 14,174 23,768 Total cash and bank balances 14,174 23,768


192



£’000 £’000

Purchases awaiting settlement 13,134 –13,134 –




10 10 Total other creditors 13,702 403










193


11. Share Classes


%


















194



£’000 £’000 £’000 £’000



768,585 236,316 Commissions – Equities 869 156 Taxes – Equities 4,032 1,090 Total purchase costs 4,901 1,246 Gross purchase total 773,486 237,562 Analysis of total sale costsGross sales in the year

before transaction costs:Equities 588,569 61,048 Collective Investment Schemes 3,310 –

591,879 61,048 Commissions – Equities (717) (53)Commissions – Collective

Investment Schemes (4) –Total sale costs (721) (53)Total sales net of transaction costs 591,158 60,995



01/10/16 to 01/10/15 to30/09/17 30/09/16







195



01/10/16 to 01/10/15 to30/09/17 30/09/16








Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 920,038 – 686,736 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly – – – –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – – – –

920,038 – 686,736 –


196













197

Omnis US Equity Fund



Investment Policy

The Fund intends to invest primarily in companies incorporated in, or significantly exposed to, theUnited States of America. The Fund may also invest in other transferable securities (for example,other international equities), units in collective investment schemes, money market instruments,warrants and deposits as detailed in the Prospectus. No more than 10% of the Scheme Property ofthe Fund will be invested in other collective investment schemes.


Investment Review

Over the 12 month period to 30 September 2017 the Omnis US Equity Fund returned 11.59% andthe benchmark (Russell 1000) returned 14.10% [source: Financial Express, bid to bid, net incomereinvested].

For the period from 1st October 2016 to 6th August 2017.

The Fund underperformed its benchmark, the Russell 1000 Index, during the period. On a sectorbasis, the strongest relative performers were Real Estate and Telecommunication Services, whileInformation Technology, Consumer Staples, Energy and Health Care were the weakest.

The portfolio’s lack of exposure to the Real Estate sector aided relative returns, as the sector wasone of the weaker performers in the Index during the period. In Telecommunication Services, theportfolio benefited from a lack of exposure to diversified telecommunication services. Onethe downside, relative weakness stemmed from technology hardware, storage & peripherals in theInformation Technology sector. Stock selection among beverages weighed on performance inConsumer Staples. In Energy, the energy equipment & services segment detracted most fromrelative results.

Investment ManagerBNY Mellon Investment Management EMEA Limited25 September 2017


198


For the period 7th August 2017 to 30th September 2017.

On 7th August, responsibility for investment management was transferred from BNY MellonInvestment Management EMEA Limited to T.Rowe Price International Ltd. While this transferinvolved a degree of portfolio turnover, the transition was managed to minimise transaction costswhere possible.

Within the portfolio, our positioning is mainly driven by fundamental, stock-specific views. Duringthe period, we took advantage of select buying opportunities, as we identified high-qualitycompanies trading at compelling valuations. We also sold shares of certain holdings following theirstrong performance.

We are underweight the consumer discretionary sector as many brick-and-mortar retailers facesignificant online challenges and traditional U.S. media companies are competing in a difficultenvironment as consumers become more selective in their viewing. During the period, we initiateda position in L Brands, which owns the Victoria’s Secret and Bath & Body Works franchises. Thecompany’s dominant brands operate in the less competitive intimate apparel and personal caresubsectors, which drives consistent growth, strong free cash flow, and return on capital. We alsothink the firm has the potential for margin improvement as management’s strategic changes withVictoria’s Secret take effect.

We eliminated our position in AutoZone, a leading distributor of automotive replacement parts andaccessories in the United States. While we like the company’s strong management team, significantcash flow generation, and leading position in an attractive industry, we have concerns that e-commercewill disrupt the auto parts industry and threaten AutoZone’s long-term earnings potential.

We are also underweight the industrials and business services sector. During the period, we initiateda position in Emerson Electric, a multi-industrial company that recently divested several of itsunderperforming businesses. We believe what remains is a high-quality set of assets with leadingbrands and market positions, a large installed base of products, and differentiated technology thatwill drive attractive margins and returns. We also initiated a position in Stanley Black & Decker, amanufacturer of industrial tools and householder hardware and provider of security products andlocks. We believe the company possesses excellent brands and trades at an attractive valuation. Wethink returns will improve as the company focuses internally on lower-risk deals and driving higherorganic growth. Conversely, we eliminated our position in diversified aerospace and defence companyGeneral Dynamics. The stock has performed well in recent years and we believe it is fully valued. Wealso eliminated our position in conglomerate GE. While we believe the company has good assets in arange of industries, including Medical Devices, Life Sciences, Pharmaceutical, Automotive, SoftwareDevelopment and Engineering, we have concerns about its earnings quality and free cash flow.

We maintain a slight underweight position to the energy sector, as we see challengingsupply/demand dynamics for energy. During the period, we eliminated our position in oil and gasexploration and production company Occidental Petroleum due to concerns that the company hasstretched its balance sheet and will need to cut its capital expenditures in order to cover its stockdividend. We added to our position in integrated oil and gas company ExxonMobil. We’re encouragedby Exxon’s future growth potential in the next few years as shale becomes a larger portion of thecompany’s capital deployment mix. We believe the company’s low geopolitical risk, high downstreamexposure, and quality management team should drive higher returns and better capital efficiencyover time.

Elsewhere in the portfolio, we trimmed beverage company PepsiCo on valuation. The companyrecently reported solid results with better-than-expected revenues in the Latin America and Europesub-Saharan Africa regions.


199



Market Overview

At times, geopolitical tensions, including heightened rhetoric between the US and North Korea,worried investors, but overall equity market reactions were muted. Within the fund, stock selectiondetracted from relative returns, most notably within the consumer staples, healthcare, and energysectors. Conversely, an underweight allocation to real estate contributed to relative performance asthe sector underperformed the broader index during the period.

Outlook

Given the relatively full valuations in today’s market, it is getting more and more difficult to identifyattractive investment opportunities. In recognition of this, and the fact that we are far along intothe current economic cycle, we believe a more cautious approach is warranted. Within the fund,we expect stock selection will be the primary driver of longer-term outperformance. We havepositioned the portfolio for secular growth and continue searching for idiosyncratic investmentopportunities, including companies with strong pricing power and recurring revenue models, as wellas those we believe are on the right side of change.

Investment ManagerT. Rowe Price International Limited13 October 2017

200


A Income30/09/17 30/09/2016 30/09/2015

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 141.20 111.13 102.61Return before operating charges* 17.04 31.78 9.70Operating charges (1.06) (0.87) (0.80)Return after operating charges 15.98 30.91 8.90



PerformanceReturn after operating charges 11.32% 27.81% 8.67%




201




Date (%) (%) (%) (%)







• The Fund appears as a “5” on the scale. This is because the Fund invests in assets thattypically carry medium risk and offer medium rewards compared with other categoriesof assets.

Risk Warning




Higher riskLower risk



202




Aerospace & Defence 0.00% [2.84%]

Automobile & Parts 0.00% [1.71%]

Banks 8.71% [0.00%]279,838 JPMorgan Chase 19,915 3.61 723,671 KeyCorp 10,146 1.84 437,624 Wells Fargo 17,982 3.26

48,043 8.71

Beverages 1.63% [4.29%]108,271 PepsiCo 8,989 1.63

8,989 1.63

Chemicals 1.94% [1.30%]206,785 DowDuPont 10,664 1.94

10,664 1.94

Construction & Materials 0.00% [2.14%]

Electricity 4.65% [0.00%]92,854 NextEra Energy 10,140 1.84

111,475 PG&E 5,657 1.03 267,417 Southern 9,795 1.78

25,592 4.65

Electronic & Electrical Equipment 2.69% [0.00%]168,411 Agilent Technologies 8,059 1.46 144,900 Emerson Electric 6,787 1.23

14,846 2.69

Financial Services 5.04% [7.40%]151,733 Intercontinental Exchange 7,769 1.41 158,056 Morgan Stanley 5,675 1.03 182,803 Visa 14,335 2.60

27,779 5.04

Food & Drug Retailers 0.00% [1.09%]

Food Producers 3.06% [2.29%]152,716 Kraft Heinz 8,825 1.60 264,830 Mondelez International 8,026 1.46

16,851 3.06

Gas, Water & Multi-utilities 1.30% [0.00%]118,696 American Water Works 7,156 1.30

7,156 1.30

203




General Industrials 8.34% [4.71%]329,973 Ball 10,158 1.84 234,219 Danaher 14,973 2.72 147,454 Fortive 7,779 1.41 123,724 Honeywell 13,069 2.37

45,979 8.34

General Retailers 3.29% [12.29%]12,970 Amazon.com 9,285 1.69 47,164 Home Depot 5,748 1.04 98,700 L Brands 3,060 0.56

18,093 3.29

Health Care Equipment & Services 10.21% [7.00%]127,108 Becton Dickinson 18,561 3.37 242,391 Medtronic 14,045 2.55 69,831 Thermo Fisher Scientific 9,846 1.79 94,256 UnitedHealth 13,755 2.50

56,207 10.21

Household Goods & Home Construction 1.14% [0.00%]56,000 Stanley Black & Decker 6,301 1.14

6,301 1.14

Industrial Transportation 1.25% [2.54%]121,414 CH Robinson Worldwide 6,886 1.25

6,886 1.25

Media 2.94% [5.58%]374,786 Comcast 10,744 1.95 278,257 Twenty-First Century Fox 5,469 0.99

16,213 2.94

Non-life Insurance 5.92% [1.13%]222,536 American International 10,184 1.85 140,759 Marsh & McLennan 8,793 1.60 71,967 Willis Towers Watson 8,272 1.50

181,642 XL 5,340 0.97 32,589 5.92

Oil & Gas Producers 4.70% [0.85%]111,109 EOG Resources 8,011 1.45 244,029 Exxon Mobil 14,907 2.70 87,086 Hess 3,043 0.55

25,961 4.70

Oil Equipment, Services & Distribution 1.25% [1.07%]186,929 TransCanada 6,887 1.25

6,887 1.25

204




Personal Goods 0.00% [2.96%]

Pharmaceuticals & Biotechnology 2.09% [8.49%]241,717 Merck 11,534 2.09

11,534 2.09

Real Estate Investment Trust 1.36% [0.00%]73,424 American Tower 7,478 1.36

7,478 1.36

Software & Computer Services 8.76% [18.72%]23,110 Alphabet ‘C’ Shares 16,509 3.00 62,135 Facebook 7,911 1.44

299,794 Microsoft 16,634 3.02 102,946 salesforce.com 7,166 1.30

48,220 8.76

Support Services 3.07% [1.45%]73,877 Fiserv 7,099 1.29

188,139 Waste Connections 9,808 1.78 16,907 3.07

Technology Hardware & Equipment 6.93% [6.05%]143,885 Apple 16,516 3.00 403,955 Cisco Systems 10,123 1.84 170,145 QUALCOMM 6,573 1.19 94,344 Xilinx 4,980 0.90

38,192 6.93

Tobacco 2.24% [0.00%]149,222 Philip Morris International 12,347 2.24

12,347 2.24

Travel & Leisure 2.61% [1.99%]4,661 Priceline 6,357 1.15

146,199 Yum! Brands 8,020 1.46 14,377 2.61







205



01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000

IncomeNet capital gains 2 43,007 72,735Revenue 3 6,536 4,690

Expenses 4 (3,287) (2,088)Interest payable and similar charges 5 (4) –Net revenue before taxation 3,245 2,602Taxation 6 (897) (557)Net revenue after taxation 2,348 2,045Total return before distributions 45,355 74,780Distributions 7 (2,348) (2,045)Change in net assets attributable to Shareholders from investment activities 43,007 72,735

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000


Amounts receivable on issue of Shares 135,161 77,762Amounts payable on cancellation

of Shares (9,565) (6,929)125,596 70,833

Change in net assets attributable to Shareholders from investmentactivities (see above) 43,007 72,735



206



30/09/17 30/09/16Note £’000 £’000 £’000 £’000

AssetsFixed assets:


Debtors 8 3,625 5,584Cash and bank balances 9 27,872 12,075

Total current assets 31,497 17,659Total assets 555,588 391,933Liabilities:Investment liabilities – –Creditors:

Distribution payable (1,426) (1,296)Other creditors 10 (3,211) (8,289)


207



1. Accounting basis and policies



£’000 £’000

The net capital gains during the year comprise:Currency losses (632) (30)Non-derivative securities 43,631 72,777Transaction charges (14) (12)Compensation 22 –Net capital gains 43,007 72,735

3. Revenue01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Bank interest 9 2Interest from Debt Securities 1 –Overseas dividends 6,526 4,688Total revenue 6,536 4,690

4. Expenses01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Payable to the ACD, associates of the ACD,and agents of either of them

AMC fees 3,106 1,9713,106 1,971

Payable to the Depositary, associates of theDepositary and agents of either of them


157 95Other expensesAudit fees 9 9Professional fees 13 11Publication fees 2 2

24 22Total expenses 3,287 2,088Audit fees are £7,700 ex VAT (2016: £7,550).

208



5. Interest payable and similar charges01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Interest 4 –Total interest payable and similar charges 4 –

6. Taxation01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

(a) Analysis of the tax charge in the year

Irrecoverable overseas tax 897 557Total taxation for the year (Note 6 (b)) 897 557



01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 3,245 2,602Net revenue for the year multiplied by the

standard rate of corporation tax 649 520Effects of:Irrecoverable overseas tax 897 557Movement in excess management expenses 649 279Revenue not subject to corporation tax (1,298) (799)Total tax charge for the year 897 557





At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £1,214,977 (2016: £566,074) in relation to surplus management expenses. It isunlikely that the Fund will generate sufficient taxable profits in the future to utilise this amountand therefore no deferred tax asset has been recognised in the year.

209



7. Distributions


01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Interim 1,034 856Final 1,426 1,296Add: Revenue paid on cancellation of Shares 11 13Deduct: Revenue received on creation of Shares (123) (120)Net distribution for the year 2,348 2,045Reconciliation of net revenue after taxationto distributions



8. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 641 184Amounts receivable for creation of Shares 2,417 2,180Sales awaiting settlement 566 3,219Prepaid expenses 1 1Total debtors 3,625 5,584


£’000 £’000

Cash and bank balances 27,872 12,075Total cash and bank balances 27,872 12,075

210



10. Other creditors30/09/17 30/09/16

£’000 £’000

Purchases awaiting settlement 2,860 8,0672,860 8,067


291 198Depositary and AgentsDepositary fees 26 9Safe custody fees 14 3Transaction charges 10 2

50 14Other accrued expensesAudit fees 9 9Publication fees 1 1

10 10Total other creditors 3,211 8,289









211



12. Share Classes


%









The main risks from the Fund’s holding of financial instruments, together with the ACD’s policyfor managing these risks, are disclosed in note 2 on page l of the report.








Canadian Dollar 59 –US Dollar 550,150 376,131Total foreign currency exposure 550,209 376,131Sterling 742 6,217Total net assets 550,951 382,348


212









£’000 £’000 £’000 £’000



799,141 229,920Commissions – Equities 144 78Total purchase costs 144 78Gross purchase total 799,285 229,998

Analysis of total sale costsGross sales in the year


692,948 162,571Commissions – Equities (118) (64)Taxes – Equities (16) (3)Total sale costs (134) (67)Total sales net of transaction costs 692,814 162,504


213





01/10/16 to 01/10/15 to30/09/17 30/09/16






01/10/16 to 01/10/15 to30/09/17 30/09/16







Assets Liabilities Assets Liabilities£’000 £’000 £’000 £’000

Valuation techniqueLevel 1: The unadjusted quotedprice in an active market foridentical assets or liabilities 524,091 – 374,274 –Level 2: Inputs other than quotedprices included within Level 1 thatare observable for the asset orliability, either directly or indirectly – – – –Level 3: Inputs are unobservable(ie for which market data isunavailable) for the asset or liability – – – –

524,091 – 374,274 –

214













215


Classes of Shares

The Company can issue different Classes of Shares in respect of any Fund. Holders of Income Sharesare entitled to be paid the revenue attributable to such Shares, in respect of each annual or interimaccounting period. Holders of Accumulation Shares are not entitled to be paid the revenueattributable to such Shares, but that revenue is retained and accumulated for the benefit ofshareholders and is reflected in the price of Shares.

Valuation Point

The valuation point for each Fund is 12 noon on each dealing day (being each day which is abusiness day in London). Valuations may be made at other times under the terms contained withinthe Prospectus.

Buying and Selling Shares

The ACD will accept orders to deal in the shares on normal business days between 9:00 am and5:00 pm. Instructions to buy or sell shares may be either in writing to: PO Box 10191, Chelmsford,CM99 2AP or by telephone on 0345 140 0070*. A contract note will be issued by close of businesson the next business day after the dealing date to confirm the transaction.

Prices

The prices of shares for each Class in each Fund will be posted on www.fundlistings.com and canalso be obtained by telephoning the Administrator on 0345 140 0070* during the ACD’s normalbusiness hours.

Significant Information

During the year the investment manager of Omnis US Equity Fund changed from BNY MellonInvestment Managements EMEA Limited to T. Rowe Price International Limited.

Other Information

The Instrument of Incorporation, Prospectus and the most recent interim and annual reports maybe inspected at the office of the ACD which is also the Head Office of the Company and copies maybe obtained, free of charge, upon application to Omnis Investments Limited, PO Box 10191,Chelmsford CM99 2AP.

Shareholders who have any complaints about the operation of the Company should contact theACD or the Depositary in the first instance. In the event that a shareholder finds the responseunsatisfactory they may make their complaint direct to the Financial Ombudsman Service atExchange Tower, London E14 9SR.

* Please note that telephone calls may be recorded for monitoring and training purposes, and to confirm investors’ decisions.

Report

The annual report of the Company will be published within four months of each annual accountingperiod and the interim report will be published within two months of each interim accounting period.

Interim financial statements period ended 31 March

Annual financial statements year ended 30 September

Distribution Payment Dates

Interim 31 May

Final 30 November

General Information

216


Data Protection

The details you have provided will be held electronically by the Funds’ Registrar but will not be usedfor any purpose except to fulfil its obligations to shareholders.

Effects of Personal Taxation

Investors should be aware that unless their shares are held within an ISA, or switched betweenFunds in this OEIC, selling shares is treated as a disposal for the purpose of Capital Gains tax.

Risk Warning

An investment in an Open Ended Investment Company should be regarded as a medium to longterm investment. Investors should be aware that the price of shares and the income from themmay fall as well as rise and investors may not receive back the full amount invested. Pastperformance is not a guide to future performance. Investments denominated in currencies otherthan the base currency of a fund are subject to fluctuation in exchange rates, which may befavourable or unfavourable.

Protected Cell Regime

Please note, on 21 December 2011, the Open Ended Investment Companies Regulations 2001(SI 2001/1228) (“the Regulations”) were amended to introduce a Protected Cell Regime (“PCR”)for OEICs. Under the PCR each Fund represents a segregated portfolio of assets and accordingly,the assets of a Fund belong exclusively to that Fund and shall not be used or made available todischarge (directly or indirectly) the liabilities of, or claims against, any other person or body,including any other Fund and shall not be available for any such purpose. The Regulations alloweda transitional period for implementation of the PCR, until 20 December 2013. However, the Companyadopted the PCR on 30 September 2013. No reallocation of liabilities as described above wasnecessary at any time prior to 30 September 2013.

Remuneration

The ACD’s remuneration policy (“Remuneration Policy”) aims to ensure that its remuneration policiesand practices;

• are consistent with, and promote, sound and effective risk management;

• do not impair the ACD in its duty to act in the best interests of the Funds it manages;

• do not encourage risk taking which is inconsistent with the risk profiles or the instrumentconstituting the funds or the prospectus, as applicable, of the Funds it manages; and

• include appropriate fixed and variable components of remuneration, including salaries anddiscretionary pension benefits.

The Remuneration Policy will apply to those staff working for the ACD whose professional activitieshave a material impact on the risk profiles of the ACD or the Funds. The Remuneration Policy willapply for the first time in full for the financial year ended 31 December 2017.

Remuneration and benefits are agreed by the Directors of the ACD and reflect the performance ofthe identified member of staff individuals and of the Openwork Group, of which the ACD is a part.

Up to date details of the matters set out above are available via the ACD’s website,www.omnisinvestments.com. A paper copy will be made free of charge upon request.

General Information (continued)

annual report & financial statements - omnis...

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