audited annual report and accounts

31 December 2011

Sarasin Irish Unit Trusts

FSA Recognised Funds

Sarasin IE EquiSar - Global Thematic (GBP)

Sarasin IE GlobalSar - Dynamic (GBP)

Sarasin IE GlobalSar - Dynamic (USD)

Sarasin IE GlobalSar - Income (GBP)

Sarasin IE GlobalSar - Cautious (GBP)

Sarasin IE GlobalSar - Cautious (USD)

Sarasin IE Sustainable Equity - Real Estate Global (USD)

For the year 1 January 2011 to 31 December 2011

Audited annualreport and accounts

1

Notification of Amendments to the Sarasin Unit Trusts

Redomiciliation of the Guernsey Unit Trusts to Ireland

On 1 July 2011 the Guernsey Unit Trusts were redomiciled to Ireland as UCITS IV compliant Irish Unit Trusts.

As part of the re-domiciliation to the Republic of Ireland the following Guernsey fund characteristics were changed:

Guernsey Fund Characteristics Irish Fund Characteristics Only income and accumulation units available for investment

Introduction of income and accumulation unit classes: "A" units for retail investors, "B" units for institutional investors and "X" units for Sarasin & Partners LLP discretionary clients

Dual pricing: investors received either an “offer" price (at which units can be bought) or a "bid" price (at which units can be sold)

Single swinging pricing: investors receive one price at which units can be bought and/or sold

Fixed administration charge of 0.345% Reduction in fixed administration charge by at least 0.065%

Electronic Transfer charges

From 1 July 2011, all unitholder distribution and redemption proceeds can be paid at the unitholder’s expense by electronic transfer to an account in the name of the unitholder in the currency of the relevant unit class (or in such other currency as the Manager shall determine) by the Settlement Date. However, payment of the electronic transfer expense by the unitholder is at the Manager’s, Sarasin Funds Management (Ireland) Limited, discretion. As such the Manager has decided not to charge this expense to unitholders.

2

Sarasin IE Investment Funds Sarasin IE EquiSar - Global Thematic (GBP) Sarasin IE GlobalSar - Dynamic (USD) Sarasin IE GlobalSar - Income (GBP) Sarasin IE GlobalSar - Cautious (GBP) Sarasin IE GlobalSar - Cautious (USD) Sarasin IE Sustainable Equity - Real Estate Global (USD) Sarasin IE GlobalSar - Dynamic (GBP) Table of contents Overview Key Information 4 Board of Directors of the Manager and Directory 7 Introduction 8 Manager's Responsibilities 9 Trustee's Responsibilities 9 Manager’s Report 10 Investment Themes 12 Sarasin IE EquiSar - Global Thematic (GBP) Investment Review 13 Performance Statistics 15 Thematic and Geographic Allocations 16 Fund Details 17 Schedule of Investments 19 Sarasin IE GlobalSar - Dynamic (USD) Investment Review 23 Performance Statistics 26 Thematic, Geographic and Asset Allocations 27 Fund Details 28 Schedule of Investments 30 Sarasin IE GlobalSar - Income (GBP) Investment Review 37 Performance Statistics 39 Asset, Bond and Currency Allocations 40 Fund Details 41 Schedule of Investments 43 Sarasin IE GlobalSar - Cautious (GBP) Investment Review 51 Performance Statistics 54 Asset Exposure 55 Fund Details 55 Schedule of Investments 57 Sarasin IE GlobalSar - Cautious (USD) Investment Review 65 Performance Statistics 68 Asset Exposure 69 Fund Details 69 Schedule of Investments 71 Sarasin IE Sustainable Equity - Real Estate Global (USD) Investment Review 79 Performance Statistics 81 Thematic and Geographic Allocations 82 Fund Details 83 Schedule of Investments 85

3

Table of contents (continued) Sarasin IE GlobalSar - Dynamic (GBP) Investment Review 88 Performance Statistics 91 Thematic, Geographic and Asset Allocations 92 Fund Details 93 Schedule of Investments 95 Financial Statements Independent Auditor's Report 103 Statement of Total Return 105 Statement of Changes in Net Assets Attributable to Unitholders 105 Balance Sheet 107 Notes to the Financial Statements 109 Supplemental Unaudited Information 137 Reports of the Trustee 139

4

Key Information

Sarasin IE Sarasin IE Sarasin IE EquiSar - GlobalSar - GlobalSar - Global Thematic Dynamic Income (GBP) (USD) (GBP) Base currency Sterling US Dollars Sterling Launch date August 1996 January 1993 July 2002 Net Asset Value at 31 December 2011 £121 million $135 million £136 million Performance return since launch 143.4% 179.0% 48.6% Performance return 1 year -11.9% -6.8% 8.8% 3 years 15.8% 19.5% 16.9% 5 years 7.5% -3.4% 3.3% Income distribution (for the year 01.01.11 to 31.12.11 ) £410,047 $929,817 £4,127,029 Dealing day Daily Daily Daily Sedol number Distribution units B67TMS3 B5MF795 B540C37 Accumulation units B59Z3G7 B5LQMV6 B571KS8

5

Key Information Sarasin IE Sarasin IE GlobalSar - GlobalSar – Cautious (USD) Cautious (GBP) Base currency US Dollars Sterling Launch date February 2008 October 2007 Net Asset Value at 31 December 2011 $51 million £23 million Performance return since launch -11.5% -4.0% Performance return 1 year -3.7% -3.2% 3 years 14.3% 13.5% 5 years - Income distribution (for the year 01.01.11 to 31.12.11 ) $145,625 £218,693 Dealing day Daily Daily Sedol number Distribution units B4Q42X0 B5TZRR6 Accumulation units B5NCZ79 B51L8K2

6

Key Information Sarasin IE Sustainable Sarasin IE Equity – GlobalSar - Real Estate Dynamic (GBP) Global (USD) Base currency GBP US Dollars Launch date January 1988 June 2006 Net Asset Value at 31 December 2011 £199 million $25 million Performance return since launch 481.2% -20.4% Performance return 1 year -6.7% -7.9%

3 years 13.5% 42.0% 5 years 1.9% -35.5% Income distribution (for the year 01.01.11 to 31.12.11 ) £1,910,007 $57,961 Dealing day Daily Daily Sedol number Distribution units B57ZRF6 B60WGN2 Accumulation units B5TYT77 B5PX075 Prices are quoted daily on our website at www.sarasin.co.uk. There is no redemption charge. All data cited is sourced from Sarasin & Partners LLP as at 31.12.11 in base currency on a NAV basis, gross income reinvested. Past performance does not guarantee future returns. The value of investments and the income from them can go down as well as up and an investor may not get back the amount originally invested. This can be as a result of market movements and also of variations in the exchange rates between currencies. It should be noted that in respect of Sarasin IE GlobalSar – Dynamic (GBP) and Dynamic (USD), Sarasin IE GlobalSar – Income (GBP), Sarasin IE GlobalSar Cautious Funds and Sarasin IE Sustainable Equity – Real Estate Global (USD), 80% of the Manager's annual and administration charges are deducted from the Fund's capital, and in respect of Sarasin IE EquiSar – Global Thematic (GBP) 60% of the Manager's annual and administration charges are deducted from the Fund’s capital which may constrain future growth. There is no minimum investment period, though we would recommend that you view your investment as medium to long term (i.e. 5 to 10 years).

7

Board of Directors of the Manager and Directory Nils Ossenbrink (Chairman) Appointed 24 June 2011 Manager* Managing Director and Head of Products, Sarasin Funds Management Bank Sarasin & Co. Ltd., (Ireland) Limited, Elisabethenstrasse 62, Georges Court, CH-4002 Basel 54-62 Townsend Street, Dublin 2 Guy Matthews Appointed 24 June 2011 Partner, Trustee** Sarasin & Partners LLP, Citco Bank Nederland N.V., Dublin Branch Juxon House, Appointed 1 July 2011 Dublin Branch, Block 3, Custom House Plaza, 100 St. Paul’s Churchyard, IFSC, London EC4M 8BU Dublin 1 Michael Barr Northern Trust Appointed 23 May 2011 Fiduciary Services (Ireland) Limited Partner, Appointed 24 June 2011 A&L Goodbody, Georges Court, 1 North Wall Quay, 54-62 Townsend Street, IFSC, Dublin 2 Dublin 1 Investment Adviser Sarasin & Partners LLP, Fergus Crawford Appointed 24 June 2011 Appointed 23 May 2011 Juxon House, Chief Executive Officer, 100 St. Paul’s Churchyard, Sarasin & Partners LLP, London EC4M 8BU 5 Fitzwilliam Square, Telephone (020) 7038 7000 Dublin 2, Fax (020) 7038 6850 (Authorised and Regulated by the FSA) Hans Peter Grossman Appointed 24 June 2011 Administrator and Registrar* Managing Director, Northern Trust International Fund Sarasin Investmentfonds AG, Administration Services (Ireland) Limited Wallstrasse 9 Appointed 24 June 2011 CH-4002 Basel George’s Court, 54-62 Townsend Street, Simon Rivett-Carnac Dublin 2 Appointed 24 June 2011 Partner, Auditor* Sarasin & Partners LLP, KPMG, Juxon House, Chartered Accountant, 100 St Paul’s Churchyard, Statutory Audit Firm, London EC4M 8BU 1 Harbourmaster Place, IFSC, Dublin 1 Irish Legal Advisers to the Trust A&L Goodbody, International Financial Services Centre, North Wall Quay, Dublin 1 * On 1 July 2011 the Guernsey Unit Trusts were redomiciled to Ireland as UCITS IV compliant Irish Unit Trusts. **Citco Bank Nederland N.V. is trustee to Sarasin IE GlobalSar – Dynamic (GBP). Northern Trust Fidiciary Services (Ireland) Limited are trustee to Sarasin IE GlobalSar – Dynamic (USD), Sarasin IE EquiSar – Global Thematic (GBP), Sarasin IE GlobalSar – Dynamic (USD), Sarasin IE GlobalSar – Cautious (GBP) and Cautious (USD) and Sarasin IE GlobalSar – Income (GBP).

8

Introduction Authorisation Sarasin IE EquiSar – Global Thematic (GBP), Sarasin IE GlobalSar – Dynamic (USD), Sarasin IE GlobalSar – Income (GBP), Sarasin IE GlobalSar – Cautious (GBP), Sarasin IE GlobalSar – Cautious (USD), Sarasin IE Sustainable Equity – Real Estate Global (USD) and Sarasin IE GlobalSar – Dynamic (GBP) (collectively known as “the Funds”) are regulated by the Central Bank of Ireland (“the Central Bank”) as open-ended unit trusts and authorised as Undertakings for Collective Investment in Transferable Securities (“UCITS”). The Funds are recognised in the United Kingdom by the Financial Services Authority (“FSA”) under Section 270 of the Financial Services and Markets Act, 2000. Sarasin & Partners LLP, who are authorised and regulated by the FSA, market the Funds in the UK. Sarasin CI Real Estate Equity (USD) was renamed to Sarasin CI Sustainable Equity- Real Estate Global (USD) effective 20 August 2010. With effect from 1 January 2011; Sarasin CI GlobalSar Dollar Balanced Fund was renamed Sarasin CI GlobalSar - Dynamic (USD). Sarasin CI GlobalSar Sterling Balanced Fund was renamed Sarasin CI GlobalSar - Dynamic (GBP). Sarasin CI GlobalSar IIID (GBP) was renamed Sarasin CI GlobalSar - Cautious (GBP). Sarasin CI GlobalSar IIID (USD) was renamed Sarasin CI GlobalSar - Cautious (USD). With effect from 1 July 2011, the Funds were redomiciled to Ireland as UCITS IV Compliant Irish Unit Trusts as follows: Guernsey domicile to 30 June 2011. Irish Domicile from 1 July 2011. Sarasin CI EquiSar Sterling Global Thematic Fund Sarasin IE EquiSar - Global Thematic (GBP) Sarasin CI GlobalSar – Dynamic (USD) Sarasin IE GlobalSar – Dynamic (USD) Sarasin CI GlobalSar – Income (GBP) Sarasin IE GlobalSar – Income (GBP) Sarasin CI GlobalSar – Cautious (GBP) Sarasin IE GlobalSar – Cautious (GBP) Sarasin CI GlobalSar – Cautious (USD) Sarasin IE GlobalSar – Cautious (USD) Sarasin CI Sustainable Equity - Sarasin IE Sustainable Equity - Real Estate Global (USD) Real Estate Global (USD) Sarasin CI GlobalSar – Dynamic (GBP) Sarasin IE GlobalSar – Dynamic (GBP) The only class active at 31 December 2011 was Class A. At a board meeting dated 16 September 2011 it was resolved by the board of directors of the Manager to approve the creation of the following classes:

- Class GBP Accumulating Units share class in Sarasin IE Sustainable Equity – Real Estate Global (USD).

- Class A EUR share class in Sarasin IE EquiSar - Global Thematic (GBP) Manager Sarasin Funds Management (Guernsey) Limited, a wholly owned subsidiary of Bank Sarasin & Co. Ltd, of Basel, Switzerland was Manager of the Funds until 30 June 2011. A new Manager was appointed, Sarasin Funds Management (Ireland) Limited (the “Manager”) when the Funds redomiciled to Ireland. The Manager was incorporated 23 May 2011 and is a wholly owned subsidiary of Sarasin & Partners, LLP. Investment Adviser Sarasin & Partners LLP (the “Investment Advisor”), London, is authorised and regulated by the FSA, and is a subsidiary of Bank Sarasin & Co. Ltd, of Basel, Switzerland.

9

Manager’s Responsibilities The Manager is responsible for preparing the Annual Report and Funds financial statements in accordance with the applicable laws and regulations. In preparing the financial statements the Manager is required to:

- select suitable accounting policies and then apply them consistently;

- comply with the disclosure requirements of the Statement of Recommended Practice for the Financial Statements of Authorised Funds issued by the Investment Management Association (IMA);

- follow UK generally accepted accounting principles and applicable UK accounting standards;

- keep proper accounting records which enable it to demonstrate that the financial statements comply with European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 ;

- make judgements and estimates that are reasonable and prudent; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the scheme will continue in operation.

Trustee’s Responsibilities The trustee is required to:

- take responsibility for safe-keeping the assets of the Funds in accordance with the European Communities (Undertakings for Collective Investments in Transferable Securities) regulations (“the Regulations”);

- ensure that the funds are managed by the Manager in accordance with the Trust Deed and the Regulations; and

- prepare a report for inclusion in the annual report on the conduct of the manager in relation to the management of the funds in accordance with the Trust Deed and the Regulations.

10

Manager’s Report The World Economy 2011 is likely to go down in history as the year that everything happened. Inflationary fears took centre stage as the year began, with food prices outpacing their 2008 highs and oil prices tipping the $100/barrel mark. As the first quarter continued, though, three major events shook the world: firstly, a devastating earthquake in Japan, and its subsequent nuclear crisis; secondly, the evident beginning of the ‘Arab Spring’ in the Middle East; and thirdly, not only did the EU deal on a Greek bailout package fail to calm market fears, but the Portuguese government fell, prompting all out fear over the European sovereign crisis. Throughout the spring, most economic data points were weaker than expected, in part due to supply chain disruptions resulting from the Japanese earthquake, but probably also owing to the ongoing Chinese slowdown. Market focus gradually moved back towards the outlook for monetary and fiscal policy: the US debt ceiling was reached on 16th May, tensions escalated between ECB officials and EU leaders about a possible Greek debt restructuring, and Spanish and Italian ruling parties suffered massive losses at regional elections. The summer months were then characterised by global market mayhem, as escalating US political tensions saw a lack of agreement on the debt ceiling and threats of debt downgrades from rating agencies, while in Europe a series of bailouts – direct and indirect – attempted to calm the chaos. China witnessed further rate hikes, while Japan and Switzerland enacted currency interventions, and it became clear that global growth was slowing. The European soap opera held the market’s attention throughout autumn, and after much stalling and fanfare, a broad framework devised by euro zone leaders – including a debt haircut of 50% for private investors, recapitalisation of banks, and a three-year €489 billion ECB bank liquidity programme – had a more positive market impact than many predicted. There were new leaders for the ECB, Italy, Greece and Spain, and an alarming rise in most euro zone government bond yields. Elsewhere in Europe, the Bank of England introduced a new, four-month £75 billion cycle of quantitative easing. In the emerging markets there was a general loosening of monetary policy, while the US witnessed the rebirth of Operation Twist (last seen in 1961) with a $400 billion plan to buy bonds, and started to see more reasonable macroeconomic activity and data, regarding housing in particular. As the year draws to a close a divergent world appears to be emerging, with signs of improvement in the US, Europe in recession, and the emerging world facing a softer landing than some had feared. 2012 will of course hold extreme austerity across Europe, and problems are also arising in emerging economies, with Chinese inflation back to 2008 levels, and the Indian economy slowing fast. However, there is some optimism to be found on the horizon. The EU (minus the UK) is showing some unity at last, and the ESM (a new primary bailout mechanism with €500 billion firepower) is set to be available by July 2012. The US is witnessing signs of decent components for recovery, particularly in auto, housing and manufacturing. Demand is resilient, consumers are spending, and initial jobless claims are at their lowest since May 2008, signalling employment growth. GDP expectations for 2012 are also improving slightly, pointing to a brighter new year. Global Bond Outlook Despite losing their AAA rating and political wrangling, the US saw their long-term bond yield drop by almost 250 basis points in 2011. A sharp decline especially occurred during the summer, on the back of fears of a double-dip recession and further monetary policy action by the Fed (operation twist). The same trend was seen in the UK and Germany – with 10-year bond yields reaching or close to historical lows. The most significant moves took place in the intra-European bond markets, as the debt crisis intensified further. Default fears drove Greek 10-year bond yields from around 12% at the end of 2010 to as high as 39% mid-December. Bond yields in Portugal, Italy and Spain to a lesser extent also ended 2011 much higher (respectively up by 660bp, 220bp and 10bp). Only Ireland managed to see a reduction in its borrowing costs. While France’s 10-year bond yield remained broadly unchanged, the spread to German’s bond yield almost topped 200 basis points, a level unseen since the early 1990’s.

11

Manager’s Report (continued) While deflationary forces and central bank actions may continue to put downward pressures on bond yields, a normalisation is most likely, especially if risk aversion recedes. Tensions in the intra-euro bond spreads are unlikely to ease significantly though, as the recession triggered by austerity measures and banks de-leveraging weigh on public balance, especially in the periphery. Conversely, German bond yields will benefit from political uncertainty and potential ratings downgrades in the rest of Europe. Currencies Currency markets were very volatile in 2011. The US dollar started to depreciate against most currencies, mainly as a result of interest rate differentials and as the Federal Reserve implemented its QE2 programme. However, during the summer, a reversal of fortunes occurred: given the intensification of the European crisis, the greenback regained its safe-haven status. This trend was then reinforced by better economic news out of the US in the autumn and signs of a soft-landing in the developing countries. Overall, after having weakened by almost 10% against the euro, the US dollar ended the year 3.5% stronger versus the euro. Similarly, the US dollar returned to its late-2010 levels against sterling and emerging market currencies, having lost respectively around 5% and 4% by mid-year. Finally, despite a devastating earthquake, coordinated and unilateral FX intervention, the Japanese yen appreciated by almost 6% the US dollar. The US dollar uptrend is likely to carry on over the next few months, as the US economic backdrop appears to be on a better footing than its counterparts. Moreover, emerging market currencies will continue to suffer from a declining interest rate environment and the euro from the recession and political indecision. Though volatile, sterling is likely to remain range-bound, as the positive of the UK’s AAA status together with an already undervalued level should offset the drag from a new recession and an even looser monetary policy. Global Equity Outlook Despite the Arab Spring, higher oil prices and the Japanese earthquake, global equity markets remained well-oriented during the first half of 2011 – albeit very volatile. During the summer, however, political friction both in the US and in Europe, together with recession fears and European banks woes, triggered a massive sell-off. Equity markets then experienced a bumpy ride, in line with political development, but managed to recover part of their losses. The US stock market was the best performer amongst the major ones, including those in emerging markets, followed by the UK market. 2012 will also be a heavily political year, adding uncertainty and hence volatility. Against this backdrop, income driven, cash-flow rich companies and those benefiting from structural changes are likely to continue to outperform. Guy Monson Chief Investment Officer Sarasin & Partners LLP All opinions and estimates contained in this report constitute the Company's judgement and view as of the date of the report and are subject to change without notice. The report is for the assistance of the recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgement by the recipient.

12

Investment Themes Corporate Restructuring The Corporate Restructuring theme identifies companies where value will be created either by soon-to-be initiated internal programs, or due to external pressure. The Strong get Stronger The Strong Get Stronger (SgS) theme looks for sector "Gorillas" able to fund their business and growth autonomously to gain a relative advantage over their competitors. These companies are able to invest for market share in a weak economic environment. Intellectual Property and Excellence Intellectual Property and Excellence (IP & E) theme seeks companies with superior intellectual property embedded in the excellence of their people, products, process, or distribution. We particularly favour companies that dominate the Research and Development spend of their industry and are considered the employer of choice. Pricing Power The Pricing Power theme seeks moments when a catalyst will trigger evidence of pricing power which will drive earnings forward and justify a re-rating. Alternatively, it recognises price setting companies who pitch prices at the level to assure themselves a superior margin and the ability to fund market share gains year after year. The Security of Supply The Security of Supply theme identifies opportunities created by consideration of national or corporate strategic necessities. The best targets will have characteristics of inevitability, so risk should be relatively low, being well underwritten by strategic investors, while also having strong upside potential due to probable competition for control.

13

Sarasin IE EquiSar – Global Thematic (GBP) Investment Review for the year 1 January to 31 December 2011 We have had a particularly difficult year, with the fund underperforming by some 7% net of fees. Markets have been driven predominantly by European fears, and concerns about the depth and trajectory of the China slowdown. The underlying trend was a slow loss of confidence, rotation into defensive stocks and geographically into North America. Emerging markets have suffered, despite seemingly resilient growth characteristics. This has been the mainstay of many companies’ growth expectations, and the deceleration has been met with broad multiple compression. We entered the year with a reasonable, albeit a somewhat consensus, view that economic growth in the US economy would be sustained, and indeed would be strong enough to carry global GDP with it. We had expressed this by overweighting our Pricing Power theme (which tends to be somewhat cyclical) and underweighting Strong get Stronger (which tends to perform better in more difficult market environments). Sectorally, we were exposed to industrials, but not so much to the basic materials and energy production areas of the market where we had begun to be concerned about the effects of unwinding the bubble in the Chinese property sector. The supply shock driven energy price rise emerging from the Arab Spring and Japanese tsunami led us to underperform the market in the early stages of the year. Our top down view about the sustainability of the recovery changed in May, and we took action to alter the character of the portfolio. We placed greater emphasis on trends which are more resilient in an uncertain environment, replacing, for example, positions like Alcatel Lucent, Fiat Industrial, Schroders and Peabody Coal with positions in Heinz, WalMart, Time Warner and PNC Financial Services. Although we underperformed the initial stages of the aggressive sell off which began in August, we made ground back as the sell off continued, and the portfolio stabilised over Q3, before, disappointingly, giving back over 2% of relative in the final month of the year. Theme Performance Our Pricing Power theme saw weakness throughout the year, as investor concern switched from inflation to deflation. While our continued caution has directed us away from more industrial Pricing Power names, we reduced the theme allocation from about 30% to below 20% over 2011. Corporate Restructuring contributed negatively through the year, although it started to perform better as markets recovered. We have been making a gradual shift in theme emphasis towards more transparent and measurable restructuring plans in defensive areas. Home Depot was one of the theme’s strongest performers. The deteriorating world economic outlook was not supportive of Security of Supply stocks. Although Security of Supply is one of our most economically sensitive themes, our holdings continued to be a balance of cyclical and non-cyclical names, with companies like Fresenius Medical Care and Time Warner well positioned to perform in spite of economic weakness. Intellectual Property and Excellence was a stand-out performer over the year, as investors focussed on reliable growth stocks. We moved theme weightings from 16% to 29% over the course of the year. The Strong get Stronger disappointed towards the beginning of the period, even as market conditions began to deteriorate. Corporate balance sheets remained strong, so initially this characteristic conferred little competitive advantage. This began to change in Q3, and we increased our weighting in the theme accordingly.

14

Sarasin IE EquiSar – Global Thematic (GBP) Investment Review for the year 1 January to 31 December 2011 (continued) Global Equity Outlook The world remains a difficult place, with three major areas of concern: European debt (and the possibility of both a German and French downgrade in the near term); the still questionable sustainability of the US economic recovery; and the extent of the Chinese slowdown. There are in fact limits to what the market will tolerate in deficit spending, and if the history tells us anything it is that one cannot solve a debt crisis by lending more money to the insolvent. The equities of high quality global companies with long-term thematic drivers remain a compelling investment, given their ability to grow their cash flow in real terms and provide attractive total returns (with yields equivalent to many bonds), their diversity of currency exposure, liquidity and – in many cases – financial independence from the banking system. As we focus on themes and more reliable trends across the global markets, we find many opportunities for well managed companies to prosper. We do believe the portfolio has the right balance of stocks with strong or improving fundamentals, the value of which will be realised in due course. Our stock selection remains concentrated around those trends we consider to be robust in difficult economic circumstances, such as ageing, dietary change, emerging market consumption growth, data obesity and input optimisation.

15

Sarasin IE EquiSar – Global Thematic (GBP)

Performance Statistics Performance of Sarasin IE EquiSar – Global Thematic (GBP) STG – 1.8.96 to 1.1.12. NAV prices used (bid to bid prior to 1.7.11), gross income reinvested

Return Since 1.8.96

Total Return in % 2011 2010 2009 2008 2007 2006 3 year 5 year % change Annualised

Sarasin IE EquiSar Sterling -11.9 17.6 11.8 -18.9 14.5 9.2 15.8 7.5 143.4 5.9

MSCI World Equity Index -4.8 15.3 15.7 -17.9 7.2 5.3 27.0 11.7 108.0 4.9 Source: Sarasin & Partners LLP/Lipper as at 31.12.11, STG, NAV, gross income reinvested. Past performance should not be seen as an indication of future performance. The value of investments and the income fromthem can go down as well as up and you may not get back the amount you originally invested. This can be as a result of marketmovements and also of variations in exchange rates between currencies. There is no minimum investment period, though we would recommend you view your investment as a medium to long term one (i.e. 5-10 years). 60% of the Manager’s annual and administration charges are deducted from the Fund’s capital, which may constrain future capital growth. Sarasin IE EquiSar –Global Thematic (GBP) is subject to an initial charge of up to 5%.

100

120

140

160

180

200

220

240

260

280

Aug-96 Aug-98 Aug-00 Aug-02 Aug-04 Aug-06 Aug-08 Aug-10

Sarasin IE EquiSar - Global Thematic (GBP) World Equity Index

Price Indexed

16


Thematic and Geographic Allocations as at 31 December 2011 Thematic Equity Allocation

Geographic Equity Allocation

Corporate Restructuring,

21.9%

The Strong get Stronger,

18.8%

Security of Supply, 14.0%

Pricing Power, 17.4%

Intellectual Property and Excellence,

27.9%

United Kingdom,

6.7%

Europe ex. UK, 21.7%

Japan, 11.1%

Multi-Regional 1.2%

North America,

50.0%

Pacific ex. Japan, 3.4%

Emerging Markets,

5.9%

17


Fund Details Performance HistoryUNIT PRICES

Highest Lowest Highest LowestBuying Selling Buying Selling

Price Price Price PriceCalendar year £ £ £ £ 2007 25.03 20.22 27.63 22.212008 25.50 15.27 28.22 17.022009 22.39 14.78 25.31 16.572010 25.92 19.69 29.48 22.302011 (up to 30 June 2011) 26.00 22.61 29.58 25.762011 (from 1 July 2011)* 25.50 19.21 29.18 21.99* From 1 July 2011 dual pricing was replaced with single pricing.

DISTRIBUTIONSDistribution Units

Net IncomeDistributed Distribution

Net Income Per £1,000 Net Income Per £1,000Distributed invested Distributed Equalisation Distribution invested

Per Unit at 01.08.96 Per Unit Per Unit Per Unit at 01.08.96 Calendar year £ £ £ £ £ £ 2007 0.1750 17.50 - 0.1750 0.1750 17.50 2008 0.2700 27.00 0.0326 0.2374 0.2700 27.00 2009 0.1848 18.48 - 0.1848 0.1848 18.48 2010 0.1213 12.13 - 0.1213 0.1213 12.13 2011 0.1691 16.91 - 0.1691 0.1691 16.91

Accumulation UnitsNet Income

Accumulated DistributionNet Income Per £1,000 Net Income Per £1,000

Allocated invested Distributed Equalisation Distribution investedPer Unit at 01.08.96 Per Unit Per Unit Per Unit at 01.08.96

Calendar year £ £ £ £ £ £ 2007 0.1925 19.25 - 0.1925 0.1925 19.25 2008 0.2997 29.97 - 0.2997 0.2997 29.97 2009 0.2075 20.75 - 0.2075 0.2075 20.75 2010 0.1376 13.76 - 0.1376 0.1376 13.76 2011 0.2012 20.12 - 0.2012 0.2012 20.12

NET ASSET VALUESNAV per Unit

Distribution Accumulation Distribution Accumulation NAV of Fund £ £ £

31.12.07 5,073,253 4,144,116 23.51 25.95 226,816,824 31.12.08 5,520,968 4,109,315 18.47 20.58 186,590,167 31.12.09 4,840,589 4,413,371 20.87 23.60 205,197,833 31.12.10 3,045,641 3,945,476 21.76 29.95 184,474,391 31.12.11 2,297,062 2,951,210 21.26 24.43 120,945,948

Distribution Units Accumulation Units

Units in Issue

Group 1 Group 2

Group 1 Group 2

18


Fund Details (continued) Performance History (continued) Distribution An interim distribution of 10.95 pence per unit was declared on 5 July 2011 payable on 19 July 2011 on all Distribution units in issue at 4 July 2011. In respect of Accumulation units 15.90 pence per unit was transferred to the capital account on 5 July 2011. A final distribution of 5.96 pence per unit was declared on 5 January 2012 payable on 19 January 2012 on all Distribution units in issue at 4 January 2012. In respect of Accumulation units 4.22 pence per unit was transferred to the capital account on 5 January 2012. Total Expense Ratio The total expense ratio of the Fund for the year ended 31 December 2011 was 1.85% (31 December 2010: 1.88%). Objective The investment objective of this Fund is to achieve long term capital growth and income generation through investment in a broad portfolio of international stocks (and on occasion convertible or straight bonds). There will be no inherent bias towards the securities of any one country or region and the Manager will be free to allocate funds to whichever market it regards as holding the best long term investment opportunities.

19


Schedule of Investments

As at 31 December 2011Fair Value % of

Holdings Investment Assets GBP Net Assets

Equities: 99.10% (31 Dec 2010: 96.63%)

Corporate Restructuring: 21.52% (31 Dec 2010: 17.17%)

46,885 Citigroup 811,290 0.67 158,500 Dell 1,512,307 1.25 169,500 Hartford Financial Services Group 1,794,886 1.48 152,504 Home Depot 4,143,326 3.43 60,800 Jardine Matheson Holdings 1,850,076 1.53

136,200 MTN Group 1,561,260 1.29 255,000 Nissan Motor 1,470,982 1.22 196,209 Pfizer 2,752,942 2.28 67,300 PNC Financial Services Group 2,537,627 2.10

111,000 Tokio Marine Holdings 1,577,574 1.30 210,857 UBS AG-Reg 1,613,468 1.33 84,200 Wal-Mart Stores 3,265,821 2.70 93,445 Weyerhaeuser 1,140,998 0.94

Total Corporate Restructuring 26,032,557 21.52

Intellectual Property and Excellence: 27.49% (31 Dec 2010: 22.35%)

61,693 Alere 921,863 0.76 50,000 ASML Holdings 1,354,247 1.12 56,838 BorgWarner 2,347,201 1.94 53,134 Generale d'Optique Essilor International 2,398,922 1.98 52,000 Danone 2,102,507 1.74 2,450 Deutsche Bank 1,409,260 1.17

14,300 Fanuc 1,405,922 1.16 3,340 Google Class A 1,386,579 1.15

39,187 Informatica 940,954 0.78 12,800 International Business Machines 1,540,985 1.27 38,000 International Flavors & Fragrances 1,294,935 1.07 5,800 Intuitive Surgical 1,746,791 1.44

369,141 Linc Energy 262,352 0.22 134,500 Novozymes Class B 2,672,351 2.21 151,000 Oracle 2,519,109 2.08 61,100 Procter & Gamble 2,645,335 2.19 91,000 Unicharm 2,879,554 2.38 15,500 United Technologies 742,615 0.61

103,400 Verizon Communications 2,678,140 2.21

Total Intellectual Property and Excellence 33,249,622 27.49

20


Schedule of Investments (Continued)


Holdings Investment Assets (continued) GBP Net Assets

Pricing Power: 16.99% (31 Dec 2010: 29.72%)

273 Central Japan Railway 1,478,957 1.22 121,481 Correctionsof America 1,614,875 1.34 87,100 CSL 1,823,264 1.51 75,500 Exelon 2,134,258 1.76 43,495 General Cable 713,803 0.59 45,500 Kabel Deutschland 1,495,287 1.24

241,000 Kubota 1,295,525 1.07 182,000 Mitsubishi Estate 1,745,230 1.44 47,000 Saipem 1,289,315 1.07

166,341 SK Telecom ADR 1,456,923 1.20 53,700 Swiss Re 1,754,128 1.45

172,000 Virgin Media 2,375,445 1.96 64,800 Waste Management 1,373,212 1.14

Total Pricing Power 20,550,222 16.99

Security of Supply: 13.23% (31 Dec 2010: 11.98%)

411,000 Centrica 1,178,337 0.97 76,400 Fresenius Medical Care 3,343,853 2.76

239,100 Gazprom 1,641,019 1.36 68,000 Koninklijke Boskalis Westminster 1,592,241 1.32

155,000 SES 2,379,587 1.97 19,000 Sociedad Quimica Y Minera 652,752 0.54

110,158 Time Warner 2,592,372 2.14 17,700 UBS AG – Asian Defence basket 1,335,819 1.10 49,000 Umicore 1,285,951 1.06

Total Security of Supply 16,001,931 13.23

The Strong get Stronger: 18.48% (31 Dec 2010: 15.41%)

182 AP Moeller - Maersk 771,985 0.64 54,000 Automatic Data Processing 1,898,156 1.57 64,000 Barrick Gold 1,877,615 1.55 59,000 HJ Heinz 2,072,094 1.71

318,000 HSBC Holdings 1,558,359 1.29 156,172 JDS Uniphase 1,060,745 0.88 121,700 Jeronimo Martins 1,306,171 1.08 54,500 Occidental Petroleum 3,302,998 2.73

21




Holdings Investment Assets (continued) GBP Net Assets

The Strong get Stronger (continued): 18.48% (31 Dec 2010: 15.41%)

247,600 Pearson 2,986,056 2.47 1,910 Rakuten 1,317,362 1.09

535,000 Tesco 2,152,305 1.78 53,000 Yum! Brands 2,041,626 1.69

Total The Strong get Stronger 22,345,472 18.48

Fixed Interest: 0.00% (31 Dec 2010: 2.14%) - -

Collective Investment Scheme: 1.39% (31 Dec 2010: 1.13%)

1,630,000 Sarasin AgriSar Fund Class B Accumulation 1,677,270 1.39

Total Collective Investment Scheme 1,677,270 1.39

Total Equities 119,857,074 99.10

Total Investment Assets 119,857,074 99.10

Financial Derivative Instruments: 0.00% (31 Dec 2010: -0.16%)

Cash 1,177,935 0.97

Other Net Liabilities (89,061) (0.07)

Net Assets Attributable to Unitholders at bid prices 120,945,948 100.00

% of TotalAssets

Portfolio Classification 31.12.11Transferable securities admitted to official stock exchange listingor traded on a regular market 96.60 Collective Investment Schemes 1.37 Cash 0.99 Other Assets 1.04

100.00

22


Summary of Material Portfolio Changes for the year ended to 31 December 2011

Sales

Holding £ 107,732 Peabody Energy 3,926,570

1,060,200 Alcatel-Lucent 3,493,911 63,536 Bayerische Motoren Werke 3,439,044

230,000 Intel 3,076,318 145,255 Eads 2,762,697 144,000 Schroders 2,592,794 106,505 Gen. Cable 2,538,178 300,000 Fiat Indl. 2,483,570 123,708 Arcelormittal 2,463,203 234,000 Cisco Sys. 2,434,713 290,100 Mgm Resorts Intl. 2,430,345 56,162 Borgwarner 2,426,225 39,000 Lorillard 2,396,546 43,800 Fedex 2,380,140

192,760 Weyerhaeuser 2,254,308 424,141 Icap 2,192,026 46,000 Holcim 2,183,205

162,022 Itau Unibanco Hldg. Adr Prf 2,152,094 57,100 Daimler 2,118,052

129,787 Foster Wheeler 2,075,458 Total proceeds of all sales during the year 26,129,527

Purchases

Holding £ 481,000 HSBC Holdings 3,490,532 166,000 Oracle 3,388,345 147,200 Verizon Comms. 3,290,721 82,000 Pnc Finl. Servs. Grp. 3,049,967 92,700 Wal-Mart Stores 3,048,610 73,700 Procter & Gamble 2,998,584 90,270 Hj Heinz 2,931,890

215,709 Pfizer 2,795,479 121,158 Time Warner 2,616,784 57,100 Daimler 2,576,444

245,757 Ubs 2,570,800 57,000 Danone 2,531,268

263,100 Gazprom Adr 2,463,388 46,000 Holcim 2,310,455

210,000 Yahoo! 2,290,919 174,700 Mtn Grp. 2,201,551 59,000 Swiss Reinsurance 2,112,626

171,672 Jds Uniphase 2,046,829 49,500 Kabel Deutschland Hldg. 1,842,769 58,000 Yum! Brands 1,834,209

Total cost of all purchases during the year 43,852,415

The significant changes to the portfolio are the 20 largest sales and purchases based on a comparisonbetween the holdings as at 31 December 2010 and 31 December 2011.

23

Sarasin IE GlobalSar – Dynamic (USD) Investment Review for the year 1 January 2011 to 31 December 2011 Macro overview As 2011 began, inflationary fears took centre stage, as food prices outpaced their 2008 highs and oil prices reached $100/barrel on the back of the turmoil in Egypt. Central banks in Brazil, India and China further tightened their policies, while in the developed economies the sovereign crisis eased somewhat throughout January, thanks to successful bond issuances, though very disappointing Q4 GDP growth in the UK showed the fragility of the recovery. As the first quarter continued, most hard data and confidence indicators signalled robust global growth, particularly in the manufacturing sector, but this was overshadowed by three major events which shook the last month of the quarter. Firstly, a devastating earthquake in Japan, with its subsequent nuclear crisis, provoked a swift and accommodative response from the Bank of Japan. Secondly, tensions in the Middle East intensified further, and thirdly, not only did the EU deal on a Greek bailout package fail to calm market fears, but the Portuguese government fell, prompting all out fear over the sovereign crisis. As April began, the market focus gradually moved back towards the outlook for monetary and fiscal policy, as the ECB hiked interest rates, and the Fed continued its loose monetary policy. Moving into May, most economic data points were weaker than expected, in part due to the supply chain disruptions resulting from the Japanese earthquake, but probably also owing to the ongoing Chinese slowdown. Fiscal policy – and politics – was also centre-stage: the US debt ceiling was reached on 16th May: tensions escalated between ECB officials and EU leaders about a possible Greek debt restructuring, and Spanish and Italian ruling parties suffered massive losses at regional elections. Escalating Greek tensions and increasing fears of a global slowdown hit the markets during the first half of June, but signs of smoother Japanese supply chains, decreasing oil prices, more positive US manufacturing data and a short-term resolution of the Greek debt crisis provided some relief. July was characterised by political and fiscal debate, with a lack of agreement on the US debt ceiling issue and with threats of US debt downgrade from the ratings agencies. Meanwhile in Europe, Greek was afforded another €110 billion bailout together with a 21% reduction in debt, while China witnessed further rate hikes. August began with global market mayhem, as both US fiscal and political woes and the euro zone turmoil deepened. Obama came under fire over his handling of the US debt ceiling affair, while across the Atlantic the ECB bought €36 billion of Spanish and Italian government bonds, attempting to calm continuing European chaos. Japan and Switzerland enacted currency interventions, and it became clear that global growth was slowing. As the third quarter ended, grave concerns over the Greek situation continued, with neither the banks nor the EFSF yet ready for a default. The US witnessed the rebirth of Operation Twist (last seen in 1961) with a $400billion plan to buy bonds, while poor news flow in both the US and Europe showed manufacturing at a standstill. In the emerging markets there was a general loosening of monetary policy, and fears of a hard landing in China increased. Europe held the spotlight again in November, with new leaders for the ECB, Italy, Greece, and (soon) Spain, and an alarming rise in most euro zone government bond yields. Deteriorating growth in the UK convinced the Chancellor to slightly alter course in his autumn statement, with credit easing and an emphasis on infrastructure projects, alongside further cuts. A divergent world appeared to be emerging, with signs of improvement (particularly in housing) in the US, Europe in recession, and the emerging world facing a soft landing. However, there were signs of optimism as the year drew to a close. The US saw indications of decent components for recovery, particularly in housing and manufacturing, and GDP expectations for 2012 are also improving slightly. In the euro zone, the ECB announced a three-year €489 billion bank liquidity programme, and the EU (excluding the UK) showed some unity in its conviction to solve the ongoing crisis. In the emerging world, Chinese inflation fell back to pre-stimulus 2008 levels, allowing policy makers the potential to engineer a soft landing, while elsewhere in the emerging world the slowing pace of the Indian economy was a cause for concern.

24

Sarasin IE GlobalSar – Dynamic (USD) Investment Review for the year 1 January 2011 to 31 December 2011 (continued) Portfolio overview As 2011 began, we decreased our bond positions and increased equities; further orienting towards real assets given the environment of increasing inflationary pressure. We sold a significant proportion of our nominal government bonds, reinvesting some of the proceeds into index-linked positions. We sold our position in Sun Hung Kai (Hong Kong property) as we have serious concerns about property in and around China, as well as Nestle and McDonalds on fears about increasing input costs and slowing emerging market growth, rotating into Zurich Financial and Statoil. Our asset allocation added value over the January, but we did suffer poor relative performance in our equity book. Equity markets moved ahead in February (albeit with increasing levels of volatility) with companies proving in the earnings season that the corporate sector remained in rude health. Within equities, we took profits in Schroder’s and Informatica (which were touching new highs) and sold Heinz (on our concerns over the inflationary impact of its inputs on margins). As March began, we reduced our equity exposure in the face of waning market sentiment and global events. We sold Delta and FedEx (which we felt were negatively exposed to the rising oil price). As such, we were relatively defensively positioned when the Japanese tragedy struck, and were able to protect value as the markets fell some 6-8% in response. We introduced MTN – a telecommunication company operating predominately in Africa and the Middle East – to our portfolio. The fund modestly outperformed in April, which saw both equities and bonds posting positive returns. Our European holdings contributed the most, with core names like Fresenius, Umicore, Essilor and BMW performing well. We sold Lorillard, as the stock hit our target price, and Activision Blizzard, which lacked near-term catalysts for re-rating. We initiated a position in Holcim – a cement manufacturer positioned to benefit from growth in global construction spend, and were pleased to see it as April’s top contributor. However, macro data created significant uncertainty, pushing equity markets lower into May. We marginally reduced our equity exposure by taking profits in some cyclical mining and industrial positions, and disposed of BMW (which had been a spectacular performer), beginning a position in Daimler, which was more attractively valued and had exposure to the strongly growing commercial vehicles market. We also adjusted the fund’s exposure to the energy sector, switching Statoil into Gazprom within our Security of Supply theme. At the margin we sold our residual positions in Exelon and Cisco, two stocks whose thematic credentials we felt had been undermined. Early in June, fearful of short-term market weakness, we top sliced some of our energy and emerging market holdings, and also began a position in Danone, which we believed able to exploit the health and wellness mega trend. We became increasingly convinced that banks were priced too pessimistically and bought shares in Intesa (Italian bank), which has recently raised capital, and continued our strategy in credit markets of focusing on financials by purchasing the debt of Credit Agricole (French national champion). As we entered the third quarter of 2011, political uncertainty drove the majority of risk assets lower. We increased our fixed interest weighting, adding to UK government bonds and selecting credit positions to provide some protection. We sold MGM following a very strong run, as well as top slicing long-term favourite EADS, as it looked vulnerable to profit-taking. At the very end of July (and after a strong run up in price) we sold the residual gold position which had been in the portfolio since the credit crisis of 2008. Following downward revisions to US GDP figures in August, we redoubled our efforts to trim our more economically sensitive stocks. After a mid-month bounce of 7%, we reduced our equity weighting further, and added some portfolio insurance to protect from further falls. We kept the proceeds largely in cash, but did increase our bond weighting, buying both government bonds and highly rated corporate bonds. After another fall in markets we also purchased a position in a convertible bond fund where we believed valuations looked compelling. Throughout September, we made a number of changes within the portfolio, all slightly defensive in nature as growth and earnings expectations were marked down more aggressively. We increased the duration of our fixed income component, as shorter-dated yields appeared very low and we felt the demand from pension funds for the long end dampens the risk of rising yields there. Equity markets looked to be range trading; we tried to lessen some risk at the top of this range, mainly by reducing bank equity exposure and replacing this with lower risk corporate bonds.

25

Sarasin IE GlobalSar – Dynamic (USD) Investment Review for the year 1 January 2011 to 31 December 2011 (continued) Portfolio overview (continued) With Europe under the microscope again in November, the month was an extremely volatile one, with equity markets falling by approximately 10% peak to trough, and Italian and even French bonds falling aggressively, only to recover most of the loss in the last four days of the month. UK government bonds rose as the market questioned Germany’s previously reliable safe haven status. We began a position in Google, a company we viewed as having tremendous potential. We also reinitiated a position in gold following its recent fall, given the considerable concern over fiat currency and the levels of debt built up around the world. After quite a tumultuous second half to 2011, December proved relatively calm, with most equity markets realising their lowest volatility since July. US stocks led the way in returns and, while Oracle unfortunately disappointed on earnings, more defensive stocks like Altria, ADP and Home depot performed strongly. Despite the apparent signs of some risk appetite returning, there was no corresponding fall in safe haven sovereign bond markets, with the government debt of the UK, Germany and the US all rallying into the year end to post some of their best annual returns since the 1990s. Corporate bonds also did well, with some of our senior bank paper in particular staging a recovery. Into the rally, and to position ourselves for 2012, we began to reduce our financial underweight, buying UBS and PNC financial (a US listed bank). Outlook We remain confident in our underweight to government bonds, with short and medium-term yields now too close to zero to maintain last year’s momentum. While 2011 served to remind investors that capitalism requires confidence in order to work, there are signs that the measures recently taken by the ECB have restored some faith in the global financial system and increased the chances of recovery. However, as expectations increase, so does the risk of disappointment, and we feel a premium is still to be recognised for thematic companies which can combine superior earnings visibility with the support of conservative valuations.

26

Sarasin IE GlobalSar – Dynamic (USD)

Performance Statistics US$ – 13.1.93 to 1.1.12. NAV prices used (bid to bid prior to 1.7.11), gross income reinvested.

Return Since 13.1.93


Sarasin IE GlobalSar - Dynamic (USD) -6.8 7.3 19.5 -27.6 11.7 14.7 19.5 -3.4 179.0 5.6 *US Bond Index 9.6 5.8 -3.7 13.9 9.0 3.1 11.7 38.7 221.9 6.4 MSCI World Equity Index -5.5 11.8 30.0 -40.7 9.0 20.1 37.2 -11.3 226.7 6.4 **US$ Deposit 0.2 0.3 0.3 2.9 5.4 5.2 0.8 9.4 96.7 3.6 Source: Sarasin & Partners LLP/Lipper as at 31.12.11, US$, NAV, gross income reinvested. *Citigroup US WGBI TR **LIBOR USD 1 month Past performance should not be seen as an indication of future performance. The value of investments and the income from them can go down as well as up and you may not get back the amount you originally invested. This can be as a result of market movements and also of variations in exchange rates between currencies. There is no minimum investment period, though we would recommend you view your investment as a medium to long term one (i.e. 5-10 years). 80% of the Manager’s annual and administration charges are deducted from the Fund’s capital, which may constrain future capital growth. Sarasin IE GlobalSar – Dynamic (USD) is subject to an initial charge of up to 5%.

100

140

180

220

260

300

340

Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11


Price Indexed

27


Thematic, Geographic and Asset Allocations as at 31 December 2011 Asset Allocation

Thematic Equity Allocation


Equities, 59.9%

Property, 2.9%

Alternative Assets, 6.5%

Cash, 2.2%

Fixed Interest, 28.5%


Strategic Holdings,

11.1%


19.9%



28.1%


15.4%

Emerging Markets, 6.6%


Japan, 8.7%

Multi-Regional, 6.2%

North America, 40.5%


United Kingdom, 13.4%

28



Distribution Units Accumulation UnitsHighest Lowest Highest Lowest

Buying Selling Buying SellingPrice Price Price Price

Calendar year US$ US$ US$ US$ 2007 57.82 48.06 84.20 69.27 2008 57.07 35.60 83.11 52.98 2009 47.53 32.58 72.70 49.11 2010 49.41 41.27 77.26 64.39 2011 (up to 30 June 2011) 51.24 44.92 80.96 71.03 2011 (from 1 July 2011) 50.08 40.67 79.43 65.06 * From 1 July 2011 dual pricing was replaced with single pricing.

DISTRIBUTIONSDistribution Units

Net IncomeDistributed Distribution

Net Income Per US$1,000 Net Income Per US$1,000Distributed invested Distributed Equalisation Distribution invested

Per Unit at 14.01.94 Per Unit Per Unit Per Unit at 14.01.94 Calendar year US$ US$ US$ US$ US$ US$ 2007 1.0600 66.70 0.1122 0.9478 1.0600 66.70 2008 1.1150 70.16 0.1281 0.9869 1.1150 70.16 2009 1.0430 65.63 - 1.0430 1.0430 65.63 2010 0.9962 62.69 0.0529 0.9433 0.9962 62.69 2011 0.8948 56.30 - 0.8948 0.8948 56.31


Accumulated DistributionNet Income Per US$1,000 Net Income Per US$1,000


Calendar year US$ US$ US$ US$ US$ US$ 2007 1.5357 96.66 0.2116 1.3241 1.5357 96.66 2008 1.6485 103.76 0.1123 1.5362 1.6485 103.76 2009 1.5828 99.62 - 1.5828 1.5828 99.63 2010 1.5491 97.50 - 1.5491 1.5491 97.50 2011 1.6180 101.83 0.0331 1.5849 1.6180 101.83

NET ASSET VALUES

Distribution Accumulation Distribution Accumulation NAV of Fund US$ US$ US$

31.12.07 1,626,425 1,748,683 54.40 78.42 225,643,097 31.12.08 893,328 1,454,329 38.65 56.83 117,179,584 31.12.09 1,027,503 1,355,439 44.68 68.35 138,557,063 31.12.10 1,538,169 1,137,078 49.84 78.04 165,387,210 31.12.11 1,023,179 1,348,343 42.11 68.23 135,078,509

Units in Issue NAV per Unit

Group 1 Group 2

Group 1 Group 2

29


Fund Details (continued) Distribution An interim distribution of 54.48 cent per unit was declared on 5 July 2011 payable on 19 July 2011 on all Distribution units in issue at 4 July 2011. In respect of Accumulation units 110.65 cent per unit was transferred to the capital account on 5 July 2011. A final distribution of 35.00 pence per unit was declared on 5 January 2012 payable on 19 January 2012 on all Distribution units in issue at 4 January 2012. In respect of Accumulation units 51.15 cent per unit was transferred to the capital account on 5 January 2012. Total Expense Ratio The total expense ratio of the Fund for the year ended 31 December 2011 was 1.84% (31 December 2010: 1.88%). Objective The investment objective of this Fund is to achieve long term capital growth and income generation with a lower risk profile than pure stock market alternatives by investment on a global basis.

30




Holdings Investment Assets USD Net Assets

Equities: 68.12% (31 Dec 2010: 67.80%)


41,931 Citigroup 1,121,654 0.83 72,000 Home Depot 3,024,000 2.24 37,600 Jardine Matheson 1,768,704 1.31 83,661 MTN Group 1,482,527 1.10

106,600 Nissan Motor 950,617 0.70 114,900 Pfizer 2,492,181 1.83 12,257 PNC Financial Services 714,461 0.53

100,000 UBS AG 1,182,916 0.88 30,000 Wal-Mart Stores 1,798,800 1.33



18,565 ASML Holding 777,328 0.58 18,271 AstraZeneca 834,926 0.62 14,303 BorgWarner 913,103 0.68 34,000 Canon 1,494,023 1.11 20,000 Essilor International 1,395,902 1.03 26,750 Danone 1,672,012 1.24

900 Deutsche Bank 800,293 0.59 8,300 Fanuc 1,261,493 0.93 2,500 Google - A Shares 1,604,425 1.19

136,904 ICAP 724,232 0.54 14,660 International Business Machines 2,728,373 2.02 18,000 International Flavors & Fragrances 948,240 0.70

140,000 Linc Energy 153,816 0.11 180,000 London & Stamford Property 299,688 0.22 32,700 Novartis 1,867,975 1.38 49,845 Novozymes - B Shares 1,530,997 1.13 74,163 Oracle 1,912,664 1.42 28,000 Procter & Gamble 1,874,040 1.39 2,300 Samsung Electronics 1,052,250 0.78

38,000 Unicharm 1,858,869 1.38 10,245 United Technologies 755,876 0.56


31




Holdings Investment Assets (continued) USD Net Assets


61,700 Altria Group 1,836,809 1.36 190 Central Japan Railway 1,591,211 1.18

63,000 Mitsubishi Estate 933,906 0.69 203,773 Prudential 1,975,129 1.46 40,202 SABMiller 1,406,105 1.04 18,288 Saipem 775,548 0.57 82,634 SK Telecom 1,118,864 0.83 75,000 Virgin Media 1,601,250 1.19 36,005 Waste Management 1,179,524 0.87



316,550 Centrica 1,402,980 1.04 53,037 France Telecom 823,368 0.61 20,905 Fresenius Medical Care 1,414,443 1.05 99,943 Gazprom 1,060,395 0.79 22,530 Koninklijke Boskalis Westminster 815,535 0.60 69,000 SES 1,637,572 1.21 12,367 Sociedad Quimica y Minera 656,811 0.49 38,778 Time Warner 1,410,744 1.04 27,060 Total 1,382,972 1.02 20,300 Umicore 823,580 0.61


Strategic Holdings: 6.26% (31 Dec 2010: 2.33%)

700,000 Bluecrest Allblue 1,803,911 1.34 15,000 Gold Bullion Securities 2,281,200 1.69 70,000 Hammerson 390,324 0.29

903,195 International Public Partnerships 1,679,688 1.24 1,072,901 NB Distressed Debt Investment 1,029,985 0.76

16,440 Vornado Realty Trust 1,264,565 0.94

Total Strategic Holdings 8,449,673 6.26

32



As at 31 December 2011Bond Fair Value % of

Holdings Investment Assets (continued) Rating USD Net Assets


211 AP Moeller - Maersk A/S 1,383,570 1.02 27,700 Automatic Data Process 1,505,218 1.11

181,987 British Land 1,288,508 0.95 27,000 Coca-Cola 1,893,780 1.40 8,793 Exxon Mobil 749,427 0.56

30,060 HJ Heinz 1,632,258 1.20 151,021 HSBC Holdings 1,144,087 0.85 100,000 Jeronimo Martins 1,659,170 1.23 17,000 Occidental Petroleum 1,592,730 1.18

101,600 Pearson 1,894,185 1.40 8,000 Simon Property Group 1,038,240 0.77

192,000 Tesco 1,194,078 0.89 29,346 Yum! Brands 1,747,554 1.29



Bonds: 28.24% (31 Dec 2010: 31.36%)

Fixed Interest: 24.29% (31 Dec 2010: 29.98%)

1,500,000 AT&T 3.875% 15/08/2021 A- 1,583,587 1.17 900,000 Bank of America 4.75% 01/08/2015 A- 867,151 0.64

2,000,000 Canadian Government 4.00% 01/06/2017 AAA 2,227,257 1.65 1,500,000 Canadian Government 4.50% 01/06/2015 AAA 1,637,046 1.21 1,250,000 EDF 6.50% 26/01/2019 A+ 1,440,925 1.07 1,000,000 Eksportfinans A/S 5.50% 26/06/2017 BBB- 908,770 0.67

500,000 Enel Finance International 5.00% 14/09/2022 A- 577,625 0.43 800,000 IPIC GMTN 5.50% 01/03/2022 AA- 801,040 0.59

1,000,000 Netherlands Government 4.50% 15/07/2017 AAA 1,491,932 1.10 900,000 Old Mutual 8.00% 03/06/2021 BBB- 1,322,177 0.98 500,000 Porterbrook Rail Finance 5.50% 20/04/2019 BBB 823,783 0.61

1,000,000 Qtel International 5.00% 19/10/2025 A 990,300 0.73 1,000,000 Siemens Financial 5.75% 17/10/2016 A+ 1,158,010 0.86 1,550,000 Time Warner 4.00% 15/01/2022 BBB 1,589,074 1.18 1,500,000 Toyota Motor 2.80% 11/01/2016 A+ 1,547,619 1.15

700,000 UK Gilt 4.50% 07/09/2034 AAA 1,368,458 1.01 1,500,000 US Treasury 3.25% 31/03/2017 AAA 1,677,070 1.24

33




Holdings Investment Assets (continued) Rating USD Net Assets

Fixed Interest (continued): 24.29% (31 Dec 2010: 29.98%)

2,400,000 US Treasury 3.875% 15/08/2040 AAA 2,865,374 2.12 1,000,000 US Treasury 4.00% 15/02/2014 AAA 1,078,516 0.80 1,800,000 US Treasury Inflation Index 0.625% 15/07/2021 AAA 1,932,277 1.43 1,000,000 US Treasury Inflation Index 2.625% 15/07/2017 AAA 1,299,448 0.96

395,000 US Treasury Inflation Index 3.375% 15/04/2032 AAA 775,600 0.57 1,300,000 Wal-Mart Stores 3.625% 08/07/2020 AA 1,422,281 1.05 1,300,000 Waste Management 4.75% 30/06/2020 BBB- 1,423,781 1.05

Total Fixed Interest 32,809,101 24.29

Floating Interest: 3.96% (31 Dec 2010: 1.38%)

600,000 Barclays Bank 14.00% Variable 29/11/2049 BBB 1,032,816 0.77 1,250,000 HSBC Capital Funding 4.61% 29/12/2049 A- 1,139,375 0.84

700,000 Hutchison Whampoa International 6.00% 29/12/2049 BBB 694,169 0.51 1,200,000 Rabobank Nederland 11% 29/12/2049 A 1,412,100 1.05 1,000,000 United Overseas Bank 5.375% 03/09/2019 A- 1,051,050 0.78

Total Floating Interest 5,329,510 3.96

Total Bonds 38,138,611 28.24

Financial Derivative Instruments: 0.32% (31 Dec 2010: 0.05%)

Forward Currency Contracts : 0.32% (31 Dec 2010: 0.05%)

Counterparty Currency Currency Currency Maturity Unrealised % ofBuys Sells Rate Date Gain Net Assets

Bank of New York USD 12,745,398 EUR 9,590,000 1.3290 22/03/2012# 329,343 0.24

Bank of New York USD 15,022,846 GBP 9,660,000 1.5552 22/03/2012# 100,889 0.07

Total fair value gains on Forward Currency Contracts 430,232 0.32

34



As at 31 December 2011

Financial Derivative Instruments (continued): 0.00% (31 Dec 2010: 0.05%)

Options: 0.00% (31 Dec 2010: 0.09%)

Counterparty Description Base Strike No. of Maturity Fair Value % ofCurrency Price Contracts Date USD Net Assets

Goldman Sachs Nikkei 225 Call* JPY 10,000 6309/03/2012# 3,257 0.00

Total Options 3,257 0.00

Total Financial Derivative Instruments 433,489 0.32


Investment Liabilities

Financial Derivative Instruments: -0.24% (31 Dec 2010: -0.28%)

Forward Currency Contracts : -0.03% (31 Dec 2010: -0.28%)

Counterparty Currency Currency Currency Maturity Unrealised % ofBuys Sells Rate Date Loss Net Assets

Bank of New York USD 4,089,333 GBP 2,658,000 1.5385 22/03/2012# (16,522) (0.01)

Bank of New York USD 4,144,012 JPY 321,451,000 0.0129 22/03/2012# (16,955) (0.02)

Total fair value losses on Forward Currency Contracts (33,477) (0.03)

Open Futures Contracts : -0.16% (31 Dec 2010: 0.00%)

Counterparty Description Country Currency No. of Unrealised % ofContracts loss Net Assets

Goldman Sachs DJ Stoxx 50 December 2012 Germany EUR 140# (222,775) (0.16)

Total fair value loss on Open Futures Contracts (222,775) (0.16)

35





Options: -0.04% (31 Dec 2010: 0.00%)


Goldman Sachs BP Put** GBP 440 (100)17/02/2012# (17,391) (0.01)

Goldman Sachs British Land Put** GBP 450 (76)16/03/2012# (25,848) (0.02)

Goldman Sachs Nestle Put** CHF 46 (190)16/03/2012# (2,021) (0.00)

Goldman Sachs USD 80 (82)21/01/2012# (2,952) (0.00)

Total Options (48,212) (0.04)

Total Financial Derivative Instruments (304,464) (0.24)

Total Investment Liabilities (304,464) (0.24)

Total Value of Investments 130,283,245 96.45

Cash 4,875,889 3.61

Other Net Liabilities (80,625) (0.06)


% of TotalAssets

Portfolio Classification 31.12.11

Transferable securities admitted to official stock exchange listingor traded on a regular market 95.64 Over the Counter derivatives 0.32 Cash 3.58 Other Assets 0.46 Total 100.00 # Derivatives* Covered by underlying assets**

Occidental Petroleum Put**

Not covered by underlying assets

36



Sales

Holding US$2,500,000 Eksportfinans 5.5% 25/05/2016 2,516,250 2,500,000 HSBC Middle East 3.00% 21/10/15 USD 2,465,200

93,600 Intel 2,137,980 13,500 Gold Bullion Secs. 2,091,828 22,900 Bayerische Motoren Werke 2,044,173 63,887 Eads 1,961,238 21,000 VF 1,953,769

1,500,000 Us Treasury Inflation Index 2% 15/01/2016 1,919,500 1,650,000 Siemens Financial 5.75% 17/10/2016 1,880,010

21,000 Fedex 1,852,960 1,650,000 Glaxosmithkline 4.85% 15/05/2013 1,774,080

23,000 Mcdonald'S 1,717,588 1,500,000 Rasgas 6.75% 30/09/2019 1,697,550

1,500 S&P 500 Usd 12.1% Auto Note Jul 23 2014 (Citi) 1,653,300 62,200 Statoil Asa 1,634,818

146,300 Activision Blizzard 1,623,857 1,500,000 St Engineering 4.8% 16/07/2019 1,594,500

7,500 Zurich Finl. Serv. 1,552,562 28,400 Nestle 1,549,726 1,700 S&P 500 Usd 11% Auto Note Apr 15 2014 (Socgen) 1,525,750

Total proceeds of all sales during the year $117,966,237

Purchases

Holding US$244,773 Prudential 2,714,573 15,000 Gold Bullion Secs. 2,457,834 74,163 Oracle 2,448,388

1,800,000 Us Treasury Bonds 0.625% 2021 1,915,242 26,750 Danone 1,913,646

700,000 Bluecrest Allblue £ Acc 1,881,669 27,000 Coca-Cola 1,843,554

100,000 Jeronimo Martins 1,763,005 60,000 Hartford Finl. Servs. Grp. 1,733,437 34,000 Canon 1,709,572 1,700 S&P 500 Usd 11% Auto Note Apr 15 2014 (Socgen) 1,700,000

83,661 Mtn Grp. 1,698,908 300,000 Invensys 1,682,785 21,716 Holcim 1,660,959

615,000 Intesa Sanpaolo 1,660,680 30,000 Wal-Mart Stores 1,613,275

903,195 Intl. Public P/Ships. 1,607,746 1,500,000 United States Treas Nts 3.00% 31/03/2017 1,606,816 1,000,000 Netherlands (Government Of) 4.5% Bond 15/07/2017 1,572,432

30,060 HJ Heinz 1,541,834 Total cost of all purchases during the year $96,196,763


37

Sarasin IE GlobalSar – Income (GBP)

Investment Review for the year 1 January 2011 to 31 December 2011 Economic Background Just when it looked as if we might get a gradual return to economic normality, the economic landscape was hit by three simultaneous crises and the outlook for bonds and equities altered significantly. The Arab Spring, the Japanese tsunami and the euro zone’s failure to deliver a swift and comprehensive solution to the sovereign crisis brought equities to a halt and saw gilt yields embark on another major move downwards. The yield shift was given added impetus later in July as the market turned its firepower onto semi-core Europe, mounting a concerted attack on Italian and Spanish government bonds. By comparison, the political stability in the UK and the determination of the government to stay with its austerity programme has underscored the AAA rating. UK gilt yields fell well below those for France, and even dipped below those for Germany for a short while just before the December EU summit. The focus on Europe’s travails, however, distracted attention away from the US, where there has been a steady improvement in economic data including, importantly, a falling unemployment rate. The most recent forecast for US growth in 2012 from the OECD is +2.0%, which is welcome albeit not spectacular news. OECD has the same number pencilled in for Japan, and for China they are expecting growth of 8.5%. So, with the world’s three leading economies continuing to expand, even if at a moderate pace by pre-crisis standards, we think it is important not to become over-bearish. Portfolio Activity We started the year hedged against a rise in yields, but as Spring approached it became less and less likely that this would happen, so we lengthened the duration of the portfolio. We also became concerned that a global slowdown would impact emerging markets where we had modest currency exposures. These we started to reduce, which proved prescient as in the 3rd quarter several of these currencies weakened significantly. Proceeds, which were coming out of AAA-rated supranationals, were re-invested in high quality UK issues, and the overall credit rating of the fund has remained AA-. Our natural tendency has been to upgrade the quality of the portfolio, aware that corporates with an affiliation to France, Italy or Spain risked being tainted by the sovereign debt rating downgrades despite themselves having a well diversified international income base. 2011 was not an easy year for equities, but we remained defensively positioned in companies with strong thematic credentials and a long-term durable franchise to at least maintain their dividend (and preferably grow it above the rate of inflation). Four of our five themes performed considerably better than benchmark: the MSCI All Countries World Index (expressed in sterling), which was down 6.5% for the year. Our second largest theme, ‘Intellectual Property & Excellence’, was up almost 5% and our largest theme, ‘Security of Supply’ (24% of equities), had a good Q4 to finish about 2% lower for the year. Investment Outlook Gilt yields start 2012 at an exceptionally low level (just under 2% at the 10-year point) having been assisted by safe haven buying as well as the Bank of England’s second quantitative easing programme. The euro zone situation remains the focus of investors’ attention and is only partially resolved by the provision of unlimited credit to banks. The sovereign debt/GDP numbers need to show signs of improvement before the markets can start to believe that there is light at the end of the tunnel. We expect the euro zone to continue to muddle through without a blockbuster solution; rather an aggregation of supportive measures which the market will eventually realise should be sufficient. However the probability of a euro break-up although low would be high impact.

38


Investment Review for the year 1 January 2011 to 31 December 2011 (continued) Investment Outlook (continued) We should be prepared for the safe haven aspect of gilts to become even more acute, i.e. for yields to fall further before the situation gets better. Recession in the UK and on the continent should keep yields subdued. At the same time, the scope for better-than-expected outcomes should not be ignored, and it is for this reason that we have our positioning in credit and equities to take advantage of an improvement in the corporate environment. Compared with (Western) governments and consumers, many large international companies are in good shape financially. Dividend yields are well in excess of the ‘safe haven’ government bonds and, more importantly, they demonstrate the strong potential for further growth, thereby providing a degree of inflation protection. The relative valuation of equities has halved in the past ten years, despite robust profits growth. Accordingly, we feel it will be important to maintain an appropriate level of equity exposure to what we believe are first class companies, supported by some of the strongest financial metrics we can ever remember having seen. All the same, a critical element of investing successfully in 2011 was to remain flexible, and given the high degree of current uncertainty, this characteristic is likely to be required throughout 2012. It is easy to become transfixed by the known risks when often it is unexpected events that dominate financial markets. Whatever the twists and turns of politics or financial events, we remain acutely aware that investors need income. We strive, therefore, to achieve a consistently above-average yield and aim to achieve that with a steady capital performance.

39


Performance Statistics STG – 9.7.02 to 1.1.12. NAV prices used (bid to bid prior to 1.7.11), gross income reinvested.

Performance of Sarasin IE GlobalSar – Income (GBP)

2011 2010 2009 2008 2007 2006 3 year 5 years Return Since 9.7.02 Total Return in % % change Annualised

Sarasin IE Income Portfolio 3.3 6.4 6.3 -10.9 4.6 4.5 16.9 8.8 48.6 4.3*£ Deposit Index 0.8 0.7 1.5 6.1 6.0 4.9 3.0 16.0 39.6 3.6

Source: Sarasin & Partners LLP/Lipper as at 31.12.11, STG, NAV, gross income reinvested. LIBOR GBP 1 month Past performance does not guarantee future returns. The value of investments and the income from them can go down as well as up and you may not get back the amount you originally invested. This can be as a result of market movements and also variations in the exchange rates between currencies. There is no minimum investment period, though we would recommend that you view your investment as a medium to long term one (i.e. 5 to 10 years). 80% of the Manager's annual and administration charges are deducted from the Fund's capital, which may constrain future capital growth. Sarasin IE GlobalSar – Income (GBP) is subject to an initial charge of up to 4%.

90

100

110

120

130

140

150

Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11


Price Indexed

40


Bond, Asset and Currency Allocations as at 31 December 2011 Asset Allocation

Bond Allocation by type

Currency Allocation

Property, 0.1%

Equities, 17.8%


Cash, 2.6%


Asset Backed

Bonds, 5.2%

Floating Rate Notes,

0.5%

Corporate Bonds, 56.5%

Govt. Agency, GTD, 5.1%

Govt. Treasuries,

32.7%

Euro, 1.1%

Japanese Yen, 0.4%

Other, 2.5%

Swiss Franc, 0.8%

US Dollar, 1.5%

Sterling, 93.7%

41



Distribution Units Accumulation UnitsHighest Lowest Highest LowestBuying Selling Buying Selling

Price Price Price PriceCalendar year £ £ £ £ 2007 11.44 10.93 14.33 13.552008 11.94 9.38 15.00 12.222009 10.36 8.92 14.18 11.832010 10.66 9.75 15.20 13.512011 (up to 30 June 2011) 10.60 9.89 15.41 14.242011 (from 1 July 2011) 10.54 9.67 15.45 14.37* From 1 July 2011 dual pricing was replaced with single pricing.

DISTRIBUTIONSDistribution Units Net Income

Distributed DistributionNet Income Per £1,000 Net Income Per £1,000Distributed invested Distributed Equalisation Distribution invested

Per Unit at 11.07.02 Per Unit Per Unit Per Unit at 11.07.02 Calendar year £ £ £ £ £ £ 2007 0.4350 43.50 0.0179 0.4171 0.4350 43.50 2008 0.4490 44.90 0.0062 0.4428 0.4490 44.90 2009 0.4440 44.40 0.0654 0.3786 0.4440 44.40 2010 0.4036 40.36 0.0496 0.3540 0.4036 40.36 2011 0.4023 40.23 0.0161 0.3862 0.4023 40.23


Accumulated DistributionNet Income Per £1,000 Net Income Per £1,000


Calendar year £ £ £ £ £ £ 2007 0.5368 53.68 0.0816 0.4552 0.5368 53.68 2008 0.5766 57.66 - 0.5766 0.5766 57.66 2009 0.5968 59.68 0.0845 0.5123 0.5968 59.68 2010 0.5668 56.68 0.1002 0.4665 0.5668 56.68 2011 0.6018 60.18 0.0618 0.5400 0.6018 60.18

NET ASSET VALUES


31.12.07 2,220,386 923,131 11.33 - 38,247,715 31.12.08 4,168,282 855,283 9.70 - 51,006,875 31.12.09 8,653,255 1,923,987 9.80 - 110,578,765 31.12.10 9,345,274 2,336,998 10.03 14.30 127,098,479 31.12.11 10,780,181 1,993,837 9.86 14.85 135,894,724


Group 1 Group 2

Group 1 Group 2

42


Fund Details (continued) Distribution An interim distribution of 9.85 pence per unit was declared on 5 April 2011 payable on 19 April 2011 on all Distribution units in issue at 4 April 2011. In respect of Accumulation units 14.18 pence per unit was transferred to the capital account on 5 April 2011. A second interim distribution of 11.44 pence per unit was declared on 5 July 2011 payable on 19 July 2011 on all Distribution units in issue at 4 July 2011. In respect of Accumulation units 18.19 pence per unit was transferred to the capital account on 5 July 2011. A third interim distribution of 9.83 pence per unit was declared on 5 October 2011 payable on 19 October 2011 on all Distribution units in issue at 4 October 2011. In respect of Accumulation units 14.26 pence per unit was transferred to the capital account on 5 October 2011. A final distribution of 9.11 pence per unit was declared on 5 January 2012 payable on 19 January 2012 on all Distribution units in issue at 4 January 2012. In respect of Accumulation units 13.55 pence per unit was transferred to the capital account on 5 January 2012. Total Expense Ratio The total expense ratio of the Fund for the year ended 31 December 2011 was 1.60% (31 December 2010: 1.64%). Objective The investment objective of this Fund is to achieve a consistently attractive level of income coupled with long term capital appreciation, whilst aiming to preserve the value of capital over the longer term.

43





Equities: 19.50% (31 Dec 2010: 21.98%)


300,000 F&C Asset Management 192,600 0.14 30,000 Investor AB B Shares 358,315 0.27 18,000 Jardine Matheson Holdings 547,720 0.40 25,000 Pfizer 350,767 0.26



20,000 Annaly Capital Management 207,776 0.15 15,000 Astrazeneca 443,400 0.33 14,000 Canon 397,947 0.29 8,000 Du Pont de Nemours 237,221 0.17

40,000 GlaxosmithKline 586,400 0.43 16,000 Nestle 592,338 0.44 12,000 Novartis 443,428 0.33



30,000 Altria Group 577,722 0.42 10,000 BHP Billiton 186,100 0.14 80,000 Prudential 501,600 0.37 70,000 United Utilities 420,700 0.31


44






10,000 Aggreko 201,600 0.15 120,000 Centrica 344,040 0.25 100,000 Drax Group 543,000 0.40 25,000 France Telecom 251,058 0.19 15,000 Koninklijke Boskalis Westminster 351,230 0.26

100,000 National Grid 620,000 0.46 70,000 Pennon Group 498,050 0.37

360,000 SATS 383,479 0.28 15,000 Seadrill 322,433 0.24 25,000 SES 383,804 0.28 45,000 Smiths Group 409,275 0.30 30,000 Statoil ASA 492,983 0.36 17,000 Total 562,022 0.41



500,000 3i Infrastructure 600,000 0.44 300,000 Aberdeen Asian Income Fund 501,750 0.37 150,000 City of London Investment Trust 424,800 0.31 100,000 Edinburgh Investment Trust 470,500 0.35 170,000 Henderson Far East Income 455,600 0.34 400,000 International Public Partnerships 481,200 0.35 51,000 Mercantile Investment Trust 435,795 0.32

235,000 Schroder Oriental Income 344,275 0.25



9,000 Bank of Nova Scotia 287,297 0.21 140,000 British Land 641,200 0.47 11,000 Coca-Cola 499,088 0.37 40,000 HSBC 196,020 0.14 54,500 Pearson 657,270 0.48 27,000 Royal Dutch Shell 659,745 0.49


45





Collective Investment Schemes: 6.20% (31 Dec 2010: 4.60%)

550,000 Investec Series III - Emerging Markets Local Currency Debt Fund 568,480 0.41 7,000,000 Sarasin Global Equity Income Fund (Sterling Hedged) - Class B Income 7,868,000 5.79

Total Collective Investment Schemes 8,436,480 6.20


Bonds: 77.27% (31 Dec 2010: 76.32%)Bond

Fixed Interest: 67.74% (31 Dec 2010: 75.32%) Rating

1,700,000 Abbey National Treasury Services 5.125% 14/04/2021 AAA 1,772,534 1.30 500,000 America Movil 5.75% 28/06/2030 A- 579,125 0.43 700,000 AT&T 5.875% 28/04/2017 A- 808,403 0.59

1,200,000 Bank of America 6.125% 15/09/2021 A- 1,080,692 0.80 1,250,000 BG Energy Capital 5.125% 07/12/2017 A 1,406,249 1.03 1,200,000 BP Capital Markets 4.325% 10/12/2018 A 1,284,854 0.95 1,000,000 Brambles Finance 4.625% 20/04/2018 BBB+ 883,137 0.65

650,000 Bupa Finance 7.50% 04/07/2016 BBB+ 712,955 0.52 2,500,000 Canadian Government 4.50% 01/06/2015 AAA 1,764,933 1.30 1,350,000 Centrica 7.00% 19/09/2018 A- 1,653,876 1.22

114,484 Dignity Finance 6.31% 31/12/2023 A 136,961 0.10 550,000 Dignity Finance 8.151% 31/12/2030 BBB 747,554 0.55

1,180,060 Dolphin Energy 5.888% 15/06/2019 A+ 823,958 0.61 1,400,000 Eastern Power Networks 8.50% 31/03/2025 BBB+ 1,960,912 1.44 1,000,000 EDF Energy 6.875% 12/12/2022 A+ 1,223,795 0.90 1,400,000 Enel Finance International 5.75% 14/09/2040 A- 1,103,747 0.81 3,500,000 European Investment Bank 8.75% 25/08/2017 AAA 4,596,393 3.38

900,000 Finmeccanica Finance 8.00% 16/12/2019 BBB- 803,843 0.59 800,000 France Telecom 5.25% 05/12/2025 A- 861,335 0.63

2,000,000 GE Capital UK Funding 4.125% 28/09/2017 AA 2,086,172 1.54 500,000 GlaxoSmithKline Capital 5.25% 19/12/2033 A+ 595,429 0.44

1,000,000 Go-Ahead Group 5.375% 29/09/2017 BBB- 1,056,973 0.78 750,000 Great Rolling Stock 6.875% 27/07/2035 BBB 852,060 0.63

1,000,000 Iberdrola Finanzas 6.00% 01/07/2022 A- 1,011,920 0.74 781,000 Instituto de Credito Oficial 4.50% 07/03/2013 A+ 761,352 0.56

1,000,000 Investor 4.50% 12/05/2023 A+ 864,523 0.64

46




Holdings Investment Assets Rating GBP Net Assets

Fixed Interest: 67.74% (31 Dec 2010: 75.32%) (continued)

1,300,000 IPIC 6.875% 14/03/2026 AA- 1,316,922 0.97 1,350,000 John Lewis 6.125% 21/01/2025 NA 1,445,972 1.06 1,300,000 JPMorgan Chase 4.25% 25/01/2017 A+ 1,340,651 0.99 1,100,000 Lloyds TSB Bank 6.75% 24/10/2018 A 1,142,649 0.84 1,500,000 Morgan Stanley 4.50% 23/02/2016 A 1,153,030 0.85

400,000 National Grid Gas 6.00% 13/05/2038 A- 478,289 0.35 1,000,000 Old Mutual 8.00% 03/06/2021 BBB- 950,311 0.70 1,500,000 Optus Finance 4.625% 15/10/2019 A 1,024,161 0.75

350,000 Porterbrook Rail Finance 5.50% 20/04/2019 BBB 373,018 0.27 1,000,000 Porterbrook Rail Finance 6.50% 20/10/2020 BBB 1,133,806 0.83 1,700,000 Rabobank Nederland 4.00% 10/09/2015 AA+ 1,776,199 1.31

950,000 Rolls-Royce 6.75% 30/04/2019 A- 1,168,963 0.86 1,000,000 Royal Bank of Scotland 6.875% 17/05/2025 A 967,155 0.71 1,250,000 RWE Finance 5.50% 06/07/2022 A- 1,404,184 1.03

500,000 Safeway 6.00% 10/01/2017 A- 570,518 0.42 650,000 SPI Australia 5.125% 11/02/2021 A- 712,609 0.52

1,000,000 SSE 5.00% 01/10/2018 A- 1,102,026 0.81 600,000 Stagecoach Group 5.75% 16/12/2016 BBB- 635,532 0.47 600,000 Statoil ASA 6.875% 11/03/2031 AA- 833,461 0.61 750,000 Telecom Italia 5.625% 29/12/2015 BBB 715,266 0.53 622,000 Tesco 5.00% 24/03/2023 A- 677,882 0.50 498,522 Tesco Property Finance 3 5.744% 13/04/2040 A- 537,068 0.40

1,642,014 Tesco Property Finance 4 5.801% 13/10/2040 A- 1,783,636 1.31 2,500,000 UK Treasury 4.00% 07/03/2022 AAA 2,951,745 2.17 1,500,000 UK Treasury 4.25% 07/12/2027 AAA 1,831,475 1.35 1,000,000 UK Treasury 4.50% 07/03/2013 AAA 1,049,064 0.77 7,000,000 UK Treasury 4.50% 07/03/2019 AAA 8,434,293 6.21 3,500,000 UK Treasury 4.50% 07/09/2034 AAA 4,426,090 3.26 3,000,000 UK Treasury 4.75% 07/09/2015 AAA 3,454,323 2.54 6,000,000 UK Treasury 8.00% 07/06/2021 AAA 9,192,744 6.76 1,500,000 UK Treasury 8.00% 27/09/2013 AAA 1,698,339 1.25 1,000,000 Unilever 4.75% 16/06/2017 A+ 1,136,579 0.84

700,000 Wellcome Trust Finance 4.625% 25/07/2036 AAA 769,195 0.57 1,500,000 Wellcome Trust Finance 4.75% 28/05/2021 AAA 1,698,207 1.25

700,000 WM Morrison Supermarkets 4.625% 08/12/2023 A- 740,341 0.54


47






1,250,000 Amlin 6.50% 19/12/2026 BBB- 950,000 0.70 400,000 Aviva 6.625% 03/06/2041 BBB+ 333,349 0.25

1,100,000 Barclays Bank 14.00% Variable 29/11/2049 BBB 1,224,850 0.90 668,000 BPCE 12.50% 29/08/2049 BBB- 381,095 0.28 350,000 Chester Asset Receivables 03 Series B 15/07/2013 A 335,758 0.25

1,000,000 Credit Agricole 8.125% 29/10/2049 BBB 633,394 0.47 400,000 F&C Commercial Prop Finance 5.23% 30/06/2017 AAA 413,402 0.30

1,000,000 Hutchison Whampoa Intl 6.00% 29/12/2049 BBB 641,484 0.47 750,000 Legal & General 6.385% 29/05/2049 BBB 582,863 0.43

1,600,000 Lloyds TSB Bank 6.9625% 29/05/2020 BBB- 1,235,920 0.91 235,011 Marston's Issuer 1.6396% 15/07/2020 A 209,525 0.15 750,000 Nationwide Building Society 5.25% 23/11/2020 BBB+ 710,437 0.52 250,000 Old Mutual 4.50% 18/01/2017 BBB- 208,587 0.15

1,500,000 SSE 5.453% 29/10/2049 BBB 1,444,059 1.06 961,000 Standard Life 6.75% 29/07/2049 BBB+ 761,227 0.56 600,000 Swiss Reinsurancevia ELM 6.3024% 29/03/2049 A- 465,194 0.34 500,000 Thames Water Utilities Cayman Fin 5.375% 21/07/2025 BBB- 525,799 0.39

1,000,000 Thames Water Utilities Cayman Fin 5.75% 13/09/2030 BBB- 1,020,866 0.75 800,000 Yorkshire Water Services 6.00% 24/04/2025 BBB 862,127 0.63


Total Bonds 104,999,324 77.27




Bank of New York GBP 3,439,454 EUR 4,022,000 0.8552 22/03/2012# 68,456 0.05

Total fair value gain on Forward Currency Contracts 68,456 0.05



48




Holdings Investment Liabilities GBPNet Assets


Forward Currency Contracts : -0.02% (31 Dec 2010: -0.28%)

Counterparty Currency Currency Currency Maturity Unrealised % ofBuys Sells Rate Date Loss et Assets

Bank of New York GBP 4,998,200 USD 7,773,000 0.6430 22/03/2012# (33,794) (0.02)

Total fair value loss on Forward Currency Contracts (33,794) (0.02)

Options: -0.01% (31 Dec 2010: 0.00%)

Counterparty Description Base Strike No. of Maturity Fair Value % ofCurrency Price Contracts Date GBP et Assets

Goldman Sachs Glaxosmithkline Call* GBP 1,450 (40) 20/01/2012# (12,200) (0.01) Goldman Sachs Nestle Put* CHF 46 (50) 16/03/2012# (344) (0.00)





Cash 3,817,929 2.81

Other Net Assets 557,325 0.41


49




% of TotalAssets


Transferable securities admitted to official stock exchange listingor traded on a regular market 89.27 Collective Investment Schemes 6.12 Over the Counter derivatives 0.05 Cash 2.77 Other Assets 1.79 Total 100.00

# Derivatives* Not covered by underlying assets

50



Sales

Holding £3,000,000 UK Treasury 4.75% 07/03/2020 3,649,1403,500,000 FMS Wertmanagement 1.295% 16/06/2014 3,493,0003,000,000 UK Treasury 4.00% 07/03/2022 3,456,4803,000,000 UK Treasury 5.00% 07/03/2018 3,382,7253,000,000 UK Treasury 4.75% 07/09/2015 3,297,5522,310,000 UK Treasury 8.00% 07/06/2021 3,287,6381,950,000 UK Treasury 8.00% 27/09/2013 2,270,8922,250,000 UK Treasury 2.25% 07/03/2014 2,266,2851,600,000 Sarasin Global Equity Income Fund (Sterling Hedged) - Class B Income 1,934,140

15,000,000 Norwegian Government 5.00% 15/05/2015 1,908,2441,750,000 European Investment Bank 4.75% 06/06/2012 1,822,080

500,000 UK Treasury Index-Linked 2.50% 16/04/2020 1,608,4161,550,000 Experian Finance 4.75% 23/11/2018 1,606,3941,600,000 Koninklijke NV 5.75% 17/09/2029 1,595,9201,500,000 Network Rail 2.50% 03/07/2014 1,510,9651,219,000 John Lewis 8.375% 08/04/2019 1,480,7791,500,000 Netherlands Government 4.50% 15/07/2017 1,438,4031,300,000 Intesa Sanpaolo 5.50% 19/12/2016 1,300,0001,250,000 Nationwide Building Society 5.625% 09/09/2019 1,257,0001,500,000 Bank of America 4.625% 07/08/2017 1,246,349

Total proceeds of all sales during the year £109,755,754

Purchases

Holding £8,000,000 UK Treasury 4.50% 07/03/2019 9,359,3105,500,000 UK Treasury 4.00% 07/03/2022 5,787,1184,000,000 Sarasin Global Equity Income Fund (Sterling Hedged) - Class B Income 4,539,4003,500,000 European Investment Bank 8.75% 25/08/2017 4,531,6612,810,000 UK Treasury 8.00% 07/06/2021 4,094,4773,500,000 UK Treasury 4.50% 07/09/2034 4,088,2703,500,000 FMS Wertmanagement 1.149% 16/06/2014 3,500,3503,000,000 UK Treasury 4.75% 07/03/2020 3,436,6203,000,000 UK Treasury 4.75% 07/09/2015 3,297,5522,000,000 GE Capital UK Funding 4.125% 28/09/2017 2,023,6052,100,000 Lloyds TSB Bank 6.9625% 29/05/2020 1,988,8401,500,000 UK Treasury 4.25% 07/12/2027 1,800,9751,400,000 Eastern Group 8.50% 31/03/2025 1,769,0961,700,000 Abbey National Treasury Services 5.125% 14/04/2021 1,735,2151,650,000 Tesco Property Finance 4 5.801% 13/10/2040 1,662,3551,350,000 Centrica 7.00% 19/09/2018 1,649,4301,550,000 Experian Finance 4.75% 23/11/2018 1,578,5811,500,000 Network Rail 2.50% 03/07/2014 1,497,2701,500,000 Netherlands Government 4.50% 15/07/2017 1,474,2791,350,000 John Lewis 6.125% 21/01/2025 1,386,731

Total cost of all purchases during the year £116,060,858


51

Sarasin IE GlobalSar – Cautious (GBP)

Investment Review for the year 1 January 2011 to 31 December 2011 Macro overview As 2011 began, inflationary fears took centre stage, as food prices outpaced their 2008 highs and oil prices reached $100/barrel on the back of the turmoil in Egypt. Central banks in Brazil, India and China further tightened their policies, while in the developed economies the sovereign crisis eased somewhat throughout January, thanks to successful bond issuances, though very disappointing Q4 GDP growth in the UK showed the fragility of the recovery. As the first quarter continued, most hard data and confidence indicators signalled robust global growth, particularly in the manufacturing sector, but this was overshadowed by three major events which shook the last month of the quarter. Firstly, a devastating earthquake in Japan, with its subsequent nuclear crisis, provoked a swift and accommodative response from the Bank of Japan. Secondly, tensions in the Middle East intensified further, and thirdly, not only did the EU deal on a Greek bailout package fail to calm market fears, but the Portuguese government fell, prompting all out fear over the sovereign crisis. As April began, the market focus gradually moved back towards the outlook for monetary and fiscal policy, as the ECB hiked interest rates, and the Fed continued its loose monetary policy. Moving into May, most economic data points were weaker than expected, in part due to the supply chain disruptions resulting from the Japanese earthquake, but probably also owing to the ongoing Chinese slowdown. Fiscal policy – and politics – was also centre-stage: the US debt ceiling was reached on 16th May: tensions escalated between ECB officials and EU leaders about a possible Greek debt restructuring, and Spanish and Italian ruling parties suffered massive losses at regional elections. Escalating Greek tensions and increasing fears of a global slowdown hit the markets during the first half of June, but signs of smoother Japanese supply chains, decreasing oil prices, more positive US manufacturing data and a short-term resolution of the Greece debt crisis provided some relief. July was characterised by political and fiscal debate, with a lack of agreement on the US debt ceiling issue and with threats of US debt downgrade from the ratings agencies. Meanwhile in Europe, Greek was afforded another €110 billion bailout together with a 21% reduction in debt, while China witnessed further rate hikes. August began with global market mayhem, as both US fiscal and political woes and the euro zone turmoil deepened. Obama came under fire over his handling of the US debt ceiling affair, while across the Atlantic the ECB bought €36 billion of Spanish and Italian government bonds, attempting to calm continuing European chaos. Japan and Switzerland enacted currency interventions, and it became clear that global growth was slowing. As the third quarter ended, grave concerns over the Greek situation continued, with neither the banks nor the EFSF yet ready for a default. The US witnessed the rebirth of Operation Twist (last seen in 1961) with a $400 billion plan to buy bonds, while poor news flow in both the US and Europe showed manufacturing at a standstill. In the emerging markets there was a general loosening of monetary policy, and fears of a hard landing in China increased. Europe held the spotlight again in November, with new leaders for the ECB, Italy, Greece, and Spain, and an alarming rise in most euro zone government bond yields. Deteriorating growth in the UK convinced the Chancellor to slightly alter course in his autumn statement, with credit easing and an emphasis on infrastructure projects, alongside further cuts. A divergent world appeared to be emerging, with signs of improvement (particularly in housing) in the US, Europe in recession, and the emerging world facing a soft landing. However, there were signs of optimism as the year drew to a close. The US saw indications of decent components for recovery, particularly in housing and manufacturing, and GDP expectations for 2012 are also improving slightly. In the euro zone, the ECB announced a three-year €489 billion bank liquidity programme, and the EU (excluding the UK) showed some unity in its conviction to solve the ongoing crisis. In the emerging world, Chinese inflation fell back to pre-stimulus 2008 levels, allowing policy makers the potential to engineer a soft landing, while elsewhere in the emerging world the slowing pace of the Indian economy was a cause for concern.

52


Investment Review for the year 1 January 2011 to 31 December 2011 (continued) Portfolio overview At the start of 2011 we held underweight bond allocations in favour of equities; oriented towards real assets given the environment of increasing inflationary pressure. We sold a significant proportion of our nominal government bonds, reinvesting some of the proceeds into index-linked positions. We sold our position in Sun Hung Kai (Hong Kong property) as we had serious concerns about property in and around China, as well as Nestle and McDonalds on fears about increasing input costs and slowing emerging market growth, rotating into Zurich Financial and Virgin Media. Our asset allocation added value over January, but we suffered poor relative performance in our equity book. Equity markets moved ahead in February (albeit with increasing levels of volatility) with companies proving in the earnings season that the corporate sector remained in rude health. Within equities, we took profits in Centrica and halved our position in Itau Unibanco, the Brazilian bank. As March began, we reduced our equity exposure in the face of waning market sentiment and global events. We sold Delta and FedEx (which we felt were negatively exposed to the rising oil price). As such, we were relatively defensively positioned when the Japanese tragedy struck, and were able to protect value as the markets fell some 6-8% in response. We introduced MTN – a telecommunication company operating predominately in Africa and the Middle East – to our portfolio. The fund performed well in April, which saw both equities and bonds posting positive returns. Our European holdings contributed the most, with core names like Fresenius, Umicore, Essilor and BMW performing well. We sold Lorillard, as the stock hit our target price, and Activision Blizzard, which lacked near-term catalysts for re-rating. We initiated a position in Holcim – a cement manufacturer positioned to benefit from growth in global construction spend, and were pleased to see it as April’s top contributor. However, macro data created significant uncertainty, pushing equity markets lower into May. We marginally reduced our equity exposure by taking profits in some cyclical mining and industrial positions, and disposed of BMW (which had been a spectacular performer), beginning a position in Daimler, which was more attractively valued and had exposure to the strongly growing commercial vehicles market. We also adjusted the fund’s exposure to the energy sector, switching Statoil into Gazprom within our Security of Supply theme. At the margin we closed our exposure to Exelon (which was through options) and Cisco, two stocks whose thematic credentials we felt had been undermined. Early in June, fearful of short-term market weakness, we top sliced some of our energy and emerging market holdings, and also began a position in Danone, which we believed able to exploit the health and wellness mega trend. We became increasingly convinced that banks were priced too pessimistically and bought shares in Intesa Sanpaolo, which has recently raised capital, and continued our strategy in credit markets of focusing on financials by purchasing the debt of Credit Agricole. As we entered the third quarter of 2011, political uncertainty drove the majority of risk assets lower. We increased our fixed interest weighting, adding to UK government bonds and selecting credit positions to provide some protection. We sold MGM following a very strong run, as well as top slicing long-term favourite EADS, as it looked vulnerable to profit-taking. At the very end of July (and after a strong run up in price) we sold the residual gold position which had been in the portfolio since the credit crisis of 2008. Following downward revisions to US GDP figures in August, we redoubled our efforts to trim our more economically sensitive stocks. After a mid-month bounce of 7%, we reduced our equity weighting further, and added some portfolio insurance to protect from further falls. We kept the proceeds largely in cash, but did increase our bond weighting, buying both government bonds and highly rated corporate bonds. After another fall in markets we also purchased a position in a convertible bond fund where we believed valuations looked compelling. Throughout September, we made a number of changes within the portfolio, all slightly defensive in nature as growth and earnings expectations were marked down more aggressively. We increased the duration of our fixed income component, as shorter-dated yields appeared very low and we felt the demand from pension funds for the long end dampens the risk of rising yields there. Equity markets looked to be range trading; we tried to lessen some risk at the top of this range, mainly by replacing bank equity exposure with lower risk bank bonds and selling short-term call options as markets hit areas of technical resistance.

53


Investment Review for the year 1 January 2011 to 31 December 2011 (continued) Portfolio overview (continued) With Europe under the microscope again in November, the month was an extremely volatile one, with equity markets falling by approximately 10% peak to trough, and Italian and even French bonds falling aggressively, only to recover most of the loss in the last four days of the month. UK government bonds rose as the market questioned Germany’s previously reliable safe haven status. We began a position in Google, a company we viewed as having tremendous potential and reinitiated a position in gold following its recent fall, given the considerable concern over fiat currency and the levels of debt built up around the world. After quite a tumultuous second half to 2011, December proved relatively calm, with most equity markets realising their lowest volatility since July. US stocks led the way in returns and, while Oracle unfortunately disappointed on earnings, more defensive stocks like Altria, ADP and Home Depot performed strongly. Despite the apparent signs of some risk appetite returning, there was no corresponding fall in safe haven sovereign bond markets, with the government debt of the UK, Germany and the US all rallying into the year end to post some of their best annual returns since the 1990s. Corporate bonds also did well, with some of our senior bank paper in particular staging a recovery. Into the rally we began to reduce our financial underweight, buying positions in UBS and PNC Financial. Outlook We remain confident in our underweight to government bonds, with short and medium-term yields now too close to zero to maintain last year’s momentum. While 2011 served to remind investors that capitalism requires confidence in order to work, there are signs that the measures recently taken by the ECB have restored some faith in the global financial system and increased the chances of recovery. However, as expectations increase, so does the risk of disappointment, and we feel a premium is still to be recognised for thematic companies which can combine superior earnings visibility with the support of conservative valuations.

54


Performance Statistics STG – 15.10.07 to 1.1.12. NAV prices used (bid to bid prior to 1.7.11), gross income reinvested

Performance of Sarasin IE GlobalSar - Cautious (GBP)

Return since 15.10.07 Total Return in % 2011 2010 2009 2008 3 year 5 year % change annualised

Sarasin IE GlobalSar - Cautious (GBP) -3.2 8.3 8.2 -17.3 13.5 - -4.0 -1.0

Source: Sarasin & Partners LLP as at 31.12.11, STG, NAV, gross income reinvested. Please remember past performance should not be seen as an indication of future performance. The value of investments and the income from them can go down as well as up and you may not get back the amount you originally invested. This can be as a result of market movements and also of variations in exchange rates between currencies. There is no minimum investment period, though we would recommend you view your investment as a medium to long term one (i.e. 5-10 years). 80% of the Manager's and annual administration charges are deducted from the Fund's Capital, which may constrain future growth. Sarasin IE GlobalSar -Cautious (GBP) is subject to an initial charge of up to 5%.

70

75

80

85

90

95

100

105

110

Oct-07 Oct-08 Oct-09 Oct-10 Oct-11


Price Indexed

55

Sarasin IE GlobalSar – Cautious (GBP) Fund Details

Performance HistoryUNIT PRICES

Highest Lowest Highest Lowest Buying Selling Buying Selling

Price Price Price Price Calendar year £ £ £ £ 2008 (15 Oct '07) 10.86 7.66 10.86 7.77 2009 9.34 7.22 9.72 7.43 2010 9.86 8.48 10.50 8.87 2011 (up to 30 June 2011 10.02 9.10 10.64 9.67 2011 (from 1 July 2011) 9.84 8.64 10.50 9.29 * From 1 July 2011 dual pricing was replaced with single pricing.

DISTRIBUTIONS Group 1Distribution Units Net Income

Distributed DistributionNet Income Per £1,000 Net Income Per £1,000 Distributed invested Distributed Equalisation Distribution invested

Per Unit at 15.10.07 Per Unit Per Unit Per Unit at 15.10.07 Calendar year £ £ £ £ £ £ 2008 (from 15 Oct '07) 0.2590 25.90 0.1051 0.1539 0.2590 25.90 2009 0.1200 12.00 0.0293 0.0907 0.1200 12.00 2010 0.1579 15.79 0.0841 0.0738 0.1579 15.79 2011 0.1916 19.16 0.0849 0.1067 0.1916 19.16

Accumulation Units Group 1Net IncomeDistributed Distribution

Net Income Per £1,000 Net Income Per £1,000 Distributed invested Distributed Equalisation Distribution invested

Per Unit at 15.10.07 Per Unit Per Unit Per Unit at 15.10.07 Calendar year £ £ £ £ £ £ 2008 (from 15 Oct '07) 0.2607 26.07 0.1133 0.1474 0.2607 26.07 2009 0.1239 12.39 0.0219 0.1020 0.1239 12.39 2010 0.1656 16.56 0.0001 0.1655 0.1656 16.56 2011 0.1793 17.93 0.0803 0.0990 0.1793 17.93



31.12.08 1,970,329 1,555,852 8.26 8.38 29,318,397 31.12.09 2,308,335 1,849,224 8.79 9.14 37,207,923 31.12.10 1,203,934 1,894,538 9.36 9.88 29,983,310 31.12.11 1,119,841 1,414,535 8.82 9.61 23,475,453

Asset Exposure

Allocation Long Short Gross Net% % % %

Fixed Interest 41.6 - 41.6 41.6Equities 45.6 4.8 50.5 40.8Property 2.1 - 2.1 2.1Alternative Assets 9.9 - 9.9 9.9Liquid Assets - - - 5.6Totals 99.2 4.8 104.1 100


Group 2

Group 2

Units in Issue

56


Fund Details (continued) Distribution An interim distribution of 10.95 pence per unit was declared on 5 July 2011 payable on 19 July 2011 on all Distribution units in issue at 4 July 2011. In respect of Accumulation units 9.79 pence per unit was transferred to the capital account on 19 July 2011. A final distribution of 8.21 pence per unit was declared on 5 January 2012 payable on 19 January 2012 on all Distribution units in issue at 4 January 2012. In respect of Accumulation units 8.14 pence per unit was transferred to the capital account on 5 January 2012. Total Expense Ratio The total expense ratio of the Fund for the year ended 31 December 2011 was 2.01% including performance fee and 2.01% excluding performance fee (31 December 2010: 2.40% including performance fee and 1.93% excluding performance fee). Objective The stated investment objective of the Fund is to provide a real return to shareholders over the medium term by investment in a broad, diversified and global portfolio of investments. The Fund will also seek to avoid market set-backs by using a variety of protective measures.

57





Equities: 54.77% (31 Dec 2010: 74.46%)


25,700 BP 117,500 0.50 5,588 Citigroup 96,694 0.41 9,900 Dell 94,460 0.40 6,460 Hartford Financial Services Group 68,407 0.29 9,820 Home Depot 266,796 1.14 4,300 Jardine Matheson Holdings 130,844 0.56

15,470 MTN Group 177,333 0.76 19,400 Nissan Motor 111,910 0.48 13,775 Pfizer 193,272 0.82 8,200 Tokio Marine 116,542 0.50

15,400 UBS AG-Reg 117,840 0.50 5,000 Wal-Mart Stores 193,932 0.83 4,753 Weyerhaeuser 58,036 0.25



4,350 ASML Holdings 117,819 0.50 3,160 AstraZeneca 93,410 0.40 3,300 Canon 93,802 0.40 2,080 Danone 84,100 0.36

250 Deutsche Bank 143,802 0.61 3,330 Du pont de Nemours 98,743 0.42 1,300 Fanuc 127,811 0.54 3,620 Generale D’Optique Essilor International 163,438 0.70

285 Google Class A 118,316 0.50 19,650 ICAP 67,242 0.28 3,330 Informatica 79,960 0.34

585 International Business Machines 70,428 0.30 4,554 International Flavors & Fragrances 155,188 0.66

52,100 Linc Energy 37,028 0.16 4,737 Novartis 175,043 0.75 8,300 Novozymes Class B 164,911 0.70 9,096 Oracle 151,747 0.65

58





Intellectual Property and Excellence (continued): 12.31% (31 Dec 2010: 14.95%)

5,530 Procter & Gamble 239,422 1.02 670 Samsung Electronics 198,282 0.84

5,300 Unicharm 167,710 0.71 2,920 United Technologies 139,361 0.59 7,900 Verizon Communications 204,616 0.87



13,320 Altria Group 256,508 1.09 27 Central Japan Railway 146,270 0.62

2,600 Kabel Deutschland 85,445 0.36 15,000 Mitsubishi Estate 143,838 0.61 27,408 Prudential 171,848 0.73 6,300 SABMiller 142,537 0.62 6,380 Saipem 175,018 0.75

18,009 SK Telecom 157,735 0.67 19,980 United Utilities 120,080 0.51 10,867 Virgin Media 150,081 0.64 5,830 Waste Management 123,547 0.53



12,500 BG 171,875 0.73 44,000 Centrica 126,148 0.53 2,840 Fresenius Medical Care 124,300 0.53

36,200 Invensys 75,803 0.32 4,196 Koninklijke Boskalis Westminster 98,251 0.42

12,670 SES Receipt 194,512 0.83 3,821 Sociedad Quimica y Minera de Chile ADR 131,272 0.56 6,105 Time Warner 143,670 0.61 4,620 Total 152,738 0.65 1,912 UBS AG – Asian Defence basket 144,299 0.61 3,470 Umicore 91,066 0.39


59






139,163 Bluecrest Allblue Fund 231,985 1.00 3,215 Gold Bullion Securities 316,280 1.35

159,655 International Public Partnerships 192,065 0.82 50,000 NB Distressed Debt Inv Fd Ltd Subscription Shares 42 0.00

450,820 NB Distressed Debt Investment Fund 279,958 1.19



47,194 3i Group Plc 84,619 0.36 23 AP Moeller - Maersk 97,558 0.42

4,850 Automatic Data Processing 170,482 0.73 4,000 Barrick Gold 116,825 0.50

32,782 British Land 150,142 0.64 5,300 Coca Cola 240,470 1.02 4,080 Deutsche Bank 207,975 0.89 2,330 Exxon Mobil 128,460 0.55

31,132 HSBC Holdings 152,562 0.65 3,554 Occidental Petroleum 215,392 0.92

15,000 Pearson 180,900 0.77 4,250 Yum! Brands 163,715 0.70


Collective Investment Schemes: 11.89% (31 Dec 2010: 0.00%)

250,000 Sarasin AgriSar Fund - Class B Income 257,250 1.10 29,910 Sarasin IE Real Estate Equity GBP Fund 368,850 1.57 2,622 Brevan Howard Investment II - Macro FX Fund 282,626 1.20 9,630 Findlay Park Latin American Fund 96,244 0.41

495,000 Investec Series III - Emerging Markets Local Currency Debt Fund 511,632 2.18 260,000 JO Hambro Capital Management - Emerging Markets Fund 245,960 1.05 51,605 Jupiter - Global Convertibles Fund (SICAV) 482,511 2.06 3,300 Muzinich - EnhancedYield Short-Term Fund 324,027 1.38

24,790 Polar Capital Global Technology USD fund - Class I 222,421 0.95



60





Bonds: 37.79% (31 Dec 2010: 18.95%)


155,000 America Movil Sab De Cv 5.75% 28/06/2030 A- 179,529 0.76 150,000 Bank of America 6.125% 15/09/2021 A- 135,087 0.58 200,000 Bank of Scotland 9.375% 15/05/2021 BBB 183,681 0.78 150,000 BP Capital Markets 4.325% 10/12/2018 A 160,607 0.68 350,000 Canadian Government 4.00% 01/06/2017 AAA 252,131 1.07 150,000 Centrica 7.00% 19/09/2018 A- 183,764 0.78 200,000 Dignity Finance 8.151% 31/12/2030 BBB 271,838 1.16 150,000 Eastern Power Networks 4.75% 30/09/2021 BBB+ 158,023 0.67 100,000 European Investment Bank 5.375% 07/06/2021 AAA 117,219 0.50 100,000 Finmeccanica Finance 8.00% 16/12/2019 BBB- 89,316 0.38 150,000 Great Rolling Stock 6.875% 27/07/2035 BBB 170,412 0.73 150,000 Irish Life & Permanent 4.00% 10/03/2015 BBB 92,665 0.39 135,000 John Lewis 6.125% 21/01/2025 NA 144,597 0.62 250,000 JPMorgan Chase 4.25% 25/01/2017 A+ 257,818 1.10 100,000 Porterbrook Rail Finance 7.125% 20/10/2026 BBB 119,321 0.51 150,000 Royal Bank Of Scotland 6.375% 07/12/2028 A 133,388 0.57 150,000 RWE Finance 5.50% 06/07/2022 A- 168,502 0.72 200,000 Societe Generale 3.875% 17/12/2015 A+ 182,793 0.78 150,000 SSE 5.00% 01/10/2018 A- 165,304 0.70 850,000 UK Treasury 0.75% 22/03/2034 AAA 1,048,408 4.47 500,000 UK Treasury 3.75% 07/09/2020 AAA 578,432 2.46 250,000 UK Treasury 4.00% 07/03/2022 AAA 295,175 1.26 450,000 UK Treasury 4.25% 07/12/2027 AAA 549,442 2.34 600,000 UK Treasury 4.50% 07/09/2034 AAA 758,758 3.23 200,000 UK Treasury 4.50% 07/12/2042 AAA 258,219 1.10 350,000 UK Treasury 4.75% 07/09/2015 AAA 403,004 1.72 150,000 UK Treasury 8.00% 07/06/2021 AAA 229,819 0.98 150,000 Unilever 4.75% 16/06/2017 A+ 170,487 0.73 550,000 United Kingdom Gilt Inflation Linked 0.125% 22/03/2029 AAA 582,120 2.48



200,000 Barclays Bank 14.00% Variable 29/11/2049 BBB 222,700 0.95 200,000 FMS Wertmanagement 1.29% 16/06/2014 AAA 199,476 0.85 250,000 Hutchison Whampoa International 6.00% 29/12/2049 BBB 160,505 0.68 150,000 Legal & General 6.385% 29/05/2049 BBB 116,573 0.50 200,000 Swiss Reinsurancevia 5.252% 29/05/2049 A- 131,357 0.56

Total Floating Interest 830,611 3.54

Total Bonds 8,870,470 37.79

61






Forward Currency Contracts: 0.16% (31 Dec 2010: 0.07%)


Bank Of New York GBP 1,639,342 EUR 1,917,000 0.8552 22/03/2012# 32,628 0.14

Bank Of New York USD 418,100 GBP 267,618 0.6401 22/03/2012# 3,046 0.01

Bank Of New York JPY 11,046,400 GBP 91,275 0.0083 22/03/2012# 1,291 0.01

Total fair value gains on forward currency contracts 36,965 0.16

Options: 0.32% (31 Dec 2010: 0.72%)

Counterparty Description Base Strike No. of Maturity Fair Value % ofCurrency Price Contracts Date GBP Net Assets

Goldman Sachs Euro Currency Put* USD 1,300 38 06/01/2012# 37,180 0.16

Goldman Sachs Fiat Call* EUR 11 4916/03/2012# 8 0.00

Goldman Sachs Foster Wheeler USD Call* USD 40 100 21/01/2012# 259 0.00

Goldman Sachs FTSE 100 Index Put* GBP 5,200 1316/03/2012# 16,510 0.07

Goldman Sachs Gazprom Call* USD 11 324 16/03/2012# 11,527 0.05

Goldman Sachs IBM Corporation Call* USD 190 54 21/01/2012# 8,069 0.03

Goldman Sachs Nikkei 225 Call* JPY 10,000 2009/03/2012# 669 0.00




62




Investment Liabilities GBP Net Assets

Financial Derivative instruments: -0.32% (31 Dec 2010: -0.92%)

Forward Currency Contracts: -0.14% (31 Dec 2010: -0.82%)

Counterparty Currency Currency Currency Maturity Unrealised % ofBuys Sells Rate Date Loss Net Assets

Bank Of New York GBP 2,688,469 USD 4,181,000 0.6430 22/03/2012# (18,226) (0.08)

Bank Of New York GBP 914,982 JPY 110,464,000 0.0083 22/03/2012# (10,678) (0.05)

Bank Of New York EUR 191,700 GBP 164,122 0.8561 22/03/2012# (3,451) (0.01)




Counterparty Description Country Currency No. of Unrealised % ofContracts loss Net Assets



Goldman Sachs Euro Stoxx 50 March 2012 Germany EUR (50)# (36,718) (0.16)

Total fair value losses on Open Futures Contracts (75,246) (0.32)

Options : -0.39% (31 Dec 2010: -0.10%)


Goldman Sachs Euro Dividend Dec 2013** EUR 100 (28)20/12/2013# (40,561) (0.17)

Goldman Sachs Fiat Put March 2012** EUR 9 (49)16/03/2012# (50,862) (0.22)


63







Cash 1,179,820 5.03



% of TotalAssets


Transferable securities admitted to official stock exchange listingor traded on a regular market 81.93 Collective Investment Schemes 11.69 Over the Counter derivatives 0.47 Cash 4.94 Other Assets 0.97

100.00 # Derivatives* Covered by underlying assets**

Credit Rating Quality Analysis

Fair Value % ofGBP Net Assets

Unrated securities 144,597 0.61

The table below represents an analysis of the Net Assets held in unrated fixed and floating rate investments based on Standard and Poor's ratings.

Not covered by underlying assets

64



Sales

Holding £800,000 UK Treasury 1.25% 22/11/2017 1,154,23911,135 Gold Bullion Securities 1,010,907

750,000 UK Treasury 0.625% 22/11/2042 959,641900,000 European Investment Bank 1.056% 30/01/2014 899,743

900 S&P 500 USD 12.10% Auto Note 23/07/2014 613,450420,000 UK Treasury 1.125% 22/11/2037 567,083450,000 UK Treasury 4.00% 07/03/2022 520,407

900 RWC Partners 501,947400,000 UK Treasury 4.25% 07/12/2027 468,093145,000 UK Treasury 2.50% 17/07/2024 431,179

92 DAX (Xetra) Put 7000 Options 16/09/2011 390,953700 S&P 500 USD 11.00% Auto Note 28/04/2014 382,589

379,000 The Royal Bank of Scotland 6.70% 21/07/2011 377,46910,463 Novartis 359,90121,600 Intel 303,54693,060 Alcatel Lucent 300,975

2,500,000 Norway (Kingdom of) 6.50% 15/05/2013 294,77814,497 European Aeronautics and Space 292,317

385,000 US Treasury 1.75% 15/01/2025 291,186200,000 UK Treasury 1.25% 22/11/2055 287,830

Total proceeds of all sales during the year £31,835,634

Purchases

Holding £850,000 UK Treasury 4.00% 22/03/2034 977,267900,000 European Investment Bank 1.056% 30/01/2014 900,306720,000 UK Treasury 1.25% 22/11/2017 898,522850,000 UK Treasury 4.25% 07/12/2027 881,302750,000 UK Treasury 0.625% 22/11/2042 870,525700,000 UK Treasury 4.50% 07/09/2034 789,15657,572 Jupiter Global Convertibles Fund (SICAV) 566,508

550,000 UK Treasury 0.125% 22/03/2029 556,085500,000 UK Treasury 4.75% 07/09/2015 549,840500,000 UK Treasury 3.75% 07/09/2020 534,255500,000 UK Treasury 4.00% 07/03/2022 516,413400,000 UK Treasury 4.50% 07/12/2042 472,116

700 S&P 500 USD 11.00% Auto Note 28/04/2014 429,553145,000 UK Treasury 2.50% 17/07/2024 401,209

3,800 Gold Bullion Securities 397,92012,500 Automatic Data Processing 358,006

300,000 European Investment Bank 5.375% 07/06/2021 329,25014,796 Oracle 301,8734,900 Deutsche Bank 07/03/2013 299,095

260,000 J O Hambro Capital Management 297,700Total cost of all purchases during the year £26,230,701


65

Sarasin IE GlobalSar – Cautious (USD)

Investment Review for the year 1 January 2011 to 31 December 2011 Macro overview As 2011 began, inflationary fears took centre stage, as food prices outpaced their 2008 highs and oil prices reached $100/barrel on the back of the turmoil in Egypt. Central banks in Brazil, India and China further tightened their policies, while in the developed economies the sovereign crisis eased somewhat throughout January, thanks to successful bond issuances, though very disappointing Q4 GDP growth in the UK showed the fragility of the recovery. As the first quarter continued, most hard data and confidence indicators signalled robust global growth, particularly in the manufacturing sector, but this was overshadowed by three major events which shook the last month of the quarter. Firstly, a devastating earthquake in Japan, with its subsequent nuclear crisis, provoked a swift and accommodative response from the Bank of Japan. Secondly, tensions in the Middle East intensified further, and thirdly, not only did the EU deal on a Greek bailout package fail to calm market fears, but the Portuguese government fell, prompting all out fear over the sovereign crisis. As April began, the market focus gradually moved back towards the outlook for monetary and fiscal policy, as the ECB hiked interest rates, and the Fed continued its loose monetary policy. Moving into May, most economic data points were weaker than expected, in part due to the supply chain disruptions resulting from the Japanese earthquake, but probably also owing to the ongoing Chinese slowdown. Fiscal policy – and politics – was also centre-stage: the US debt ceiling was reached on 16th May: tensions escalated between ECB officials and EU leaders about a possible Greek debt restructuring, and Spanish and Italian ruling parties suffered massive losses at regional elections. Escalating Greek tensions and increasing fears of a global slowdown hit the markets during the first half of June, but signs of smoother Japanese supply chains, decreasing oil prices, more positive US manufacturing data and a short-term resolution of the Greece debt crisis provided some relief. July was characterised by political and fiscal debate, with a lack of agreement on the US debt ceiling issue and with threats of US debt downgrade from the ratings agencies. Meanwhile in Europe, Greek was afforded another €110 billion bailout together with a 21% reduction in debt, while China witnessed further rate hikes. August began with global market mayhem, as both US fiscal and political woes and the euro zone turmoil deepened. Obama came under fire over his handling of the US debt ceiling affair, while across the Atlantic the ECB bought €36 billion of Spanish and Italian government bonds, attempting to calm continuing European chaos. Japan and Switzerland enacted currency interventions, and it became clear that global growth was slowing. As the third quarter ended, grave concerns over the Greek situation continued, with neither the banks nor the EFSF yet ready for a default. The US witnessed the rebirth of Operation Twist (last seen in 1961) with a $400 billion plan to buy bonds, while poor news flow in both the US and Europe showed manufacturing at a standstill. In the emerging markets there was a general loosening of monetary policy, and fears of a hard landing in China increased. Europe held the spotlight again in November, with new leaders for the ECB, Italy, Greece, and Spain, and an alarming rise in most euro zone government bond yields. Deteriorating growth in the UK convinced the Chancellor to slightly alter course in his autumn statement, with credit easing and an emphasis on infrastructure projects, alongside further cuts. A divergent world appeared to be emerging, with signs of improvement (particularly in housing) in the US, Europe in recession, and the emerging world facing a soft landing. However, there were signs of optimism as the year drew to a close. The US saw indications of decent components for recovery, particularly in housing and manufacturing, and GDP expectations for 2012 are also improving slightly. In the euro zone, the ECB announced a three-year €489 billion bank liquidity programme, and the EU (excluding the UK) showed some unity in its conviction to solve the ongoing crisis. In the emerging world, Chinese inflation fell back to pre-stimulus 2008 levels, allowing policy makers the potential to engineer a soft landing, while elsewhere in the emerging world the slowing pace of the Indian economy was a cause for concern.

66


Investment Review for the year 1 January 2011 to 31 December 2011 (continued) Portfolio overview At the start of 2011 we held underweight bond allocations in favour of equities; oriented towards real assets given the environment of increasing inflationary pressure. We sold a significant proportion of our nominal government bonds, reinvesting some of the proceeds into index-linked positions. We sold our position in Sun Hung Kai (Hong Kong property) as we had serious concerns about property in and around China, as well as Nestle and McDonalds on fears about increasing input costs and slowing emerging market growth, rotating into Zurich Financial and Virgin Media. Our asset allocation added value over January, but we suffered poor relative performance in our equity book. Equity markets moved ahead in February (albeit with increasing levels of volatility) with companies proving in the earnings season that the corporate sector remained in rude health. Within equities, we took profits in Centrica and halved our position in Itau Unibanco, the Brazilian bank. As March began, we reduced our equity exposure in the face of waning market sentiment and global events. We sold Delta and FedEx (which we felt were negatively exposed to the rising oil price). As such, we were relatively defensively positioned when the Japanese tragedy struck, and were able to protect value as the markets fell some 6-8% in response. We introduced MTN – a telecommunication company operating predominately in Africa and the Middle East – to our portfolio. The fund performed well in April, which saw both equities and bonds posting positive returns. Our European holdings contributed the most, with core names like Fresenius, Umicore, Essilor and BMW performing well. We sold Lorillard, as the stock hit our target price, and Activision Blizzard, which lacked near-term catalysts for re-rating. We initiated a position in Holcim – a cement manufacturer positioned to benefit from growth in global construction spend, and were pleased to see it as April’s top contributor. However, macro data created significant uncertainty, pushing equity markets lower into May. We marginally reduced our equity exposure by taking profits in some cyclical mining and industrial positions, and disposed of BMW (which had been a spectacular performer), beginning a position in Daimler, which was more attractively valued and had exposure to the strongly growing commercial vehicles market. We also adjusted the fund’s exposure to the energy sector, switching Statoil into Gazprom within our Security of Supply theme. At the margin we closed our exposure to Exelon (which was through options) and Cisco, two stocks whose thematic credentials we felt had been undermined. Early in June, fearful of short-term market weakness, we top sliced some of our energy and emerging market holdings, and also began a position in Danone, which we believed able to exploit the health and wellness mega trend. We became increasingly convinced that banks were priced too pessimistically and bought shares in Intesa Sanpaolo, which has recently raised capital, and continued our strategy in credit markets of focusing on financials by purchasing the debt of Credit Agricole. As we entered the third quarter of 2011, political uncertainty drove the majority of risk assets lower. We increased our fixed interest weighting, adding to UK government bonds and selecting credit positions to provide some protection. We sold MGM following a very strong run, as well as top slicing long-term favourite EADS, as it looked vulnerable to profit-taking. At the very end of July (and after a strong run up in price) we sold the residual gold position which had been in the portfolio since the credit crisis of 2008. Following downward revisions to US GDP figures in August, we redoubled our efforts to trim our more economically sensitive stocks. After a mid-month bounce of 7%, we reduced our equity weighting further, and added some portfolio insurance to protect from further falls. We kept the proceeds largely in cash, but did increase our bond weighting, buying both government bonds and highly rated corporate bonds. After another fall in markets we also purchased a position in a convertible bond fund where we believed valuations looked compelling. Throughout September, we made a number of changes within the portfolio, all slightly defensive in nature as growth and earnings expectations were marked down more aggressively. We increased the duration of our fixed income component, as shorter-dated yields appeared very low and we felt the demand from pension funds for the long end dampens the risk of rising yields there. Equity markets looked to be range trading; we tried to lessen some risk at the top of this range, mainly by replacing bank equity exposure with lower risk bank bonds and selling short-term call options as markets hit areas of technical resistance.

67


Investment Review for the year 1 January 2011 to 31 December 2011 (continued) Portfolio overview (continued) With Europe under the microscope again in November, the month was an extremely volatile one, with equity markets falling by approximately 10% peak to trough, and Italian and even French bonds falling aggressively, only to recover most of the loss in the last four days of the month. UK government bonds rose as the market questioned Germany’s previously reliable safe haven status. We began a position in Google, a company we viewed as having tremendous potential and reinitiated a position in gold following its recent fall, given the considerable concern over fiat currency and the levels of debt built up around the world. After quite a tumultuous second half to 2011, December proved relatively calm, with most equity markets realising their lowest volatility since July. US stocks led the way in returns and, while Oracle unfortunately disappointed on earnings, more defensive stocks like Altria, ADP and Home Depot performed strongly. Despite the apparent signs of some risk appetite returning, there was no corresponding fall in safe haven sovereign bond markets, with the government debt of the UK, Germany and the US all rallying into the year end to post some of their best annual returns since the 1990s. Corporate bonds also did well, with some of our senior bank paper in particular staging a recovery. Into the rally we began to reduce our financial underweight, buying positions in UBS and PNC Financial. Outlook We remain confident in our underweight to government bonds, with short and medium-term yields now too close to zero to maintain last year’s momentum. While 2011 served to remind investors that capitalism requires confidence in order to work, there are signs that the measures recently taken by the ECB have restored some faith in the global financial system and increased the chances of recovery. However, as expectations increase, so does the risk of disappointment, and we feel a premium is still to be recognised for thematic companies which can combine superior earnings visibility with the support of conservative valuations.

68


Performance Statistics USD – 10.3.08 to 1.1.12. NAV prices used (bid to bid prior to 1.7.11), gross income reinvested.

Performance of Sarasin IE GlobalSar - Cautious (USD)

Return Since 10.03.08 Total Return in % 2011 2010 2009 2008* 3 year 5 years % change annualised

Sarasin IE GlobalSar - Cautious (USD) -3.7 5.3 12.7 -22.6 14.3 - -11.5 -3.1 Source: Sarasin & Partners LLP as at 31.12.11, US$, NAV, gross income reinvested. *Since launch on 10.03.08

Please remember past performance should not be seen as an indication of future performance. The value of investments and the income from them can go down as well as up and you may not get back the amount you originally invested. This can be as a result of market movements and also of variations in exchange rates between currencies. There is no minimum investment period, though we would recommend you view your investment as a medium to long term one (i.e. 5-10 years). 80% of the Manager's annual and administration charges are deducted from the Fund's capital, which may constrain future capital growth. Sarasin IE GlobalSar – Cautious (USD) is subject to an initial charge of up to 5%.

60

65

70

75

80

85

90

95

100

105

Mar-08 Mar-09 Mar-10 Mar-11


69


Fund Details

PERFORMANCE HISTORYUNIT PRICES


Price Price Price PriceCalendar year US$ US$ US$ US$ 2008 (from Feb '08) 10.78 7.18 10.78 7.22 2009 9.04 6.74 9.30 6.84 2010 9.32 8.10 9.75 8.33 2011 (up to 30 June 2011 9.57 8.60 9.98 9.07 2011 (from 1 July 2011) 9.35 8.17 9.77 8.62 * From 1 July 2011 dual pricing was replaced with single pricing.

DISTRIBUTIONSDistribution Units Net Income Net Income

Distributed AccumulatedNet Income Per US$1,000 Net Income Per US$1,000Distributed invested Distributed Equalisation Distribution invested

Per Unit at 11.02.08 Per Unit Per Unit Per Unit at 11.02.08 Calendar year US$ US$ US$ US$ US$ US$ 2008 (from Feb '08) 0.1210 12.10 0.1086 0.0124 0.1210 12.14 2009 0.0946 9.46 0.0454 0.0492 0.0946 9.46 2010 0.1380 13.80 0.1207 0.0173 0.1380 13.80 2011 0.1615 16.15 0.0875 0.0740 0.1615 16.15

Accumulation UnitsNet Income Net IncomeDistributed Accumulated

Net Income Per US$1,000 Net Income Per US$1,000Distributed invested Distributed Equalisation Distributed invested

Per Unit at 11.02.08 Per Unit Per Unit Per Unit at 11.02.08 Calendar year US$ US$ US$ US$ US$ US$ 2008 (from Feb '08) 0.1214 12.14 0.0724 0.0490 0.1214 12.14 2009 0.0961 9.61 0.0312 0.0649 0.0961 9.61 2010 0.1422 14.22 0.0129 0.1293 0.1422 14.22 2011 0.1507 15.0657 0.0427 0.1080 0.1507 15.07



31.12.08 813,155 3,033,951 7.90 7.94 30,513,495 31.12.09 605,314 2,488,503 8.53 8.74 26,920,639 31.12.10 349,232 2,652,444 8.83 9.16 27,388,740 31.12.11 954,734 4,924,016 8.26 8.85 51,463,990

Asset Exposure

Allocation Long Short Gross Net% % % %

Fixed Interest 38.8 - 38.8 38.8Equities 39.1 1.4 40.5 37.7Property 1.7 - 1.7 1.7Alternative Assets 3.4 - 3.4 3.4Liquid Assets - - - 18.4Totals 83.0 1.4 84.4 100.0

Units in Issue


Group 1 Group 2

Group 1 Group 2

70


Fund Details (continued) Distribution An interim distribution of 10.16 cents per unit was declared on 5 July 2011 payable on 19 July 2011 on all Distribution units in issue at 4 July 2011. In respect of Accumulation units 7.85 cents per unit was transferred to the capital account on 19 July 2011. A final distribution of 5.99 cents per unit was declared on 5 January 2012 payable on 19 January 2012 on all Distribution units in issue at 4 January 2012. In respect of Accumulation units 7.22 cents per unit was transferred to the capital account on 5 January 2012. Total Expense Ratio The total expense ratio of the Fund for the year ended 31 December 2011 was 2.05% including performance fee and 2.04% excluding performance fee (31 December 2010: 2.91% including performance fee and 1.97% excluding performance fee). Objective The stated investment objective of the Fund is to provide a real return to shareholders over the medium term by investment in a broad, diversified and global portfolio of investments. The Fund will also seek to avoid market set-backs by using a variety of protective measures.

71





Equities: 41.18% (31 Dec 2010: 63.16%)


29,600 BP 209,208 0.41 10,200 Citigroup 272,850 0.53 13,900 Dell 205,025 0.40 9,130 Hartford Financial Services Group 149,458 0.29

13,200 Home Depot 554,400 1.08 6,250 Jardine Matheson Holdings 294,000 0.57

16,100 MTN Group 285,302 0.55 28,200 Nissan Motor 251,477 0.49 18,172 Pfizer 394,151 0.77 18,500 UBS AG-Reg 218,839 0.43 6,600 Wal-Mart Stores 395,736 0.77

38,190 Westfield 303,035 0.59 5,744 Weyerhaeuser 108,351 0.21



5,050 ASML Holdings 211,447 0.41 4,520 AstraZeneca 206,550 0.40 3,400 Canon 149,402 0.29 3,010 Danone 188,140 0.37

439 Deutsche Bank 390,365 0.76 4,280 Du pont de Nemours 196,195 0.38 2,000 Fanuc 303,974 0.59 3,910 Generale D’Optique Essilor International 272,899 0.53

385 Google Class A 247,081 0.48 28,550 ICAP 151,032 0.29 4,400 Informatica 163,328 0.32

975 International Business Machines 181,457 0.35 6,514 International Flavors & Fragrances 343,158 0.67

79,940 Linc Energy 87,829 0.17 6,587 Novartis 376,280 0.73

10,215 Novozymes Class B 313,755 0.61 13,405 Oracle 345,715 0.67 7,440 Procter & Gamble 497,959 0.97

760 Samsung Electronics 347,700 0.68

72




Holdings Investment Assets Fair Value % of USD Net Assets

Intellectual Property and Excellence (continued): 11.85% (31 Dec 2010: 14.99%)

7,500 Unicharm 366,882 0.71 3,896 United Technologies 287,447 0.56

11,700 Verizon Communications 468,468 0.91



17,874 Altria Group 532,109 1.03 37 Central Japan Railway 309,868 0.60

3,360 Kabel Deutschland 170,700 0.33 18,000 Mitsubishi Estate 266,830 0.52 35,400 Prudential 343,125 0.67 8,981 SABMiller 314,119 0.61 8,200 Saipem 347,741 0.68

24,622 SK Telecom 333,382 0.65 28,700 United Utilities 266,648 0.52 10,900 Virgin Media 232,715 0.45 8,440 Waste Management 276,494 0.54



12,500 BG 265,702 0.52 63,770 Centrica 282,635 0.55 4,435 Fresenius Medical Care 300,074 0.58 6,590 Koninklijke Boskalis Westminster 238,543 0.46

16,970 SES Receipt 402,748 0.78 4,050 Sociedad Quimica y Minera de Chile ADR 215,095 0.42 8,985 Time Warner 326,874 0.64 6,020 Total 307,668 0.60 2,978 UBS AG – Asian Defence basket 347,441 0.68 5,050 Umicore 204,881 0.40


73




Holdings Investment Assets USDNet Assets


4,290 Gold Bullion Securities 652,423 1.27 141,117 International Public Partnerships 262,438 0.51

3,920 Vornado Realty Trust 301,526 0.59



25 AP Moeller - Maersk 163,930 0.32 7,088 Automatic Data Processing 385,162 0.75 5,670 Barrick Gold 256,000 0.50

34,280 British Land 242,710 0.47 6,921 Coca-Cola 485,439 0.94 6,298 Deutsche Bank 496,289 0.96 3,820 Exxon Mobil 325,579 0.63

44,550 HSBC Holdings 337,497 0.66 4,840 Occidental Petroleum 453,460 0.88

24,300 Pearson 453,038 0.88 5,934 Yum! Brands 353,370 0.69



Bonds: 38.12% (31 Dec 2010: 22.15%)Bond

Fixed Interest: 33.75% (31 Dec 2010: 22.15%) Rating

550,000 AT&T 3.875% 15/08/2021 A- 580,649 1.13 50,000 Bank of Scotland 9.375% 15/05/2021 BBB 70,988 0.14

300,000 BP Capital Markets 2.248% 01/11/2016 A 301,406 0.59 450,000 Canadian Government Bond 4.00% 01/06/2017 AAA 501,133 0.97 450,000 Canadian Government Bond 4.5% 01/06/2015 AAA 491,114 0.95 350,000 Coca-Cola 1.80% 01/09/2016 A+ 355,419 0.69 252,870 Dolphin Energy 5.888% 15/06/2019 A+ 272,948 0.53 300,000 Electicite de France 6.50% 26/01/2019 A+ 345,822 0.67 100,000 Enel Finance International 5.00% 14/09/2022 A- 115,525 0.22 300,000 Finland Government Bond 3.5% 15/04/2021 AAA 425,920 0.83 350,000 General Electric Capital 3.50% 29/06/2015 AA 366,702 0.71 200,000 GlaxoSmithKline Capital 4.85% 15/05/2013 A+ 211,647 0.41

74




Holdings Investment Assets Rating USDNet Assets

Fixed Interest (continued): 33.75% (31 Dec 2010: 22.15%)

300,000 International Business Machines 1.95% 22/07/2016 A+ 308,257 0.60 400,000 IPIC GMTN 5.50% 01/03/2022 AA- 400,520 0.78 50,000 Irish Life & Permanent 4.00% 10/03/2015 BBB 47,750 0.09

300,000 JPMorgan Chase 4.25% 25/01/2017 A+ 478,272 0.93 300,000 Old Mutual 8.00% 03/06/2021 BBB- 440,726 0.86 100,000 Porterbrook Rail Finance 5.50% 20/04/2019 BBB 164,757 0.32 250,000 Qtel International Finance 5.00% 19/10/2025 A 247,575 0.48 450,000 Time Warner 4.00% 15/01/2022 BBB 461,344 0.90 250,000 Toyota Motor Credit 2.80% 11/01/2016 A+ 257,936 0.50 100,000 UK Treasury 0.75% 22/03/2034 AAA 190,675 0.37 390,000 UK Treasury 4.25% 07/12/2027 AAA 736,132 1.43 150,000 UK Treasury 4.50% 07/09/2034 AAA 293,241 0.57

1,065,000 US Treasury 2.125% 15/08/2021 AAA 1,090,044 2.12 1,000,000 US Treasury 2.625% 15/08/2020 AAA 1,076,875 2.09 1,500,000 US Treasury 3.25% 31/03/2017 AAA 1,677,070 3.26

400,000 US Treasury 3.875% 15/08/2040 AAA 477,562 0.93 1,000,000 US Treasury 4.00% 15/08/2018 AAA 1,175,625 2.28

260,000 US Treasury Inflation Indexed Bonds 0.625% 15/07/2021 AAA 279,107 0.54 400,000 US Treasury Inflation Indexed Bonds 1.125% 15/01/2021 AAA 461,111 0.90 385,000 US Treasury Inflation Indexed Bonds 1.75% 15/01/2028 AAA 499,714 0.97 500,000 US Treasury Inflation Indexed Bonds 2.375% 15/01/2025 AAA 763,002 1.48 500,000 US Treasury Inflation Indexed Bonds 3.375% 15/04/2032 AAA 981,772 1.91 550,000 Wal-Mart Stores 3.625% 08/07/2020 AA 601,734 1.17 200,000 Waste Management 4.75% 30/06/2020 BBB- 219,043 0.43



150,000 Barclays Bank 14.00% Variable 29/11/2049 BBB 258,204 0.50 850,000 Caisse d'amortissement de la dette sociale 0.77% 02/07/2014 AAA 858,542 1.67 400,000 HSBC Capital Funding 4.61% 29/12/2049 A- 364,600 0.71 300,000 Hutchison Whampoa International 6.00% 29/12/2049 BBB 297,501 0.58 400,000 Rabobank Nederland 11.00% 29/12/2049 A 470,700 0.91


Total Bonds 19,618,664 38.12

75





Forward Currency Contracts: 0.12% (31 Dec 2010: 0.07%)


Bank of New York USD 1,840,707 EUR 1,385,000 1.3290 22/03/2012# 47,564 0.09 Bank of New York USD 2,122,793 GBP 1,365,000 1.5552 22/03/2012# 14,256 0.03

Total fair value gains on Forward Currency Contracts 61,820 0.12

Options: 0.20% (31 Dec 2010: 2.47%)

Counterparty Description Base Strike No. of Maturity Fair Value % ofCurrency Price Contracts Date USDNet Assets

Goldman Sachs Euro Currency Put* USD 1.3 38 06/01/2012# 57,475 0.11 Goldman Sachs Fiat Call* EUR 11 34 16/03/2012# 9 0.00 Goldman Sachs Foster Wheeler USD Call* USD 40 67 21/01/2012# 268 0.00 Goldman Sachs FTSE 100 Index Put* GBP 5,200 10 16/03/2012# 19,633 0.04 Goldman Sachs Gazprom Call* USD 11 302 16/03/2012# 16,610 0.03 Goldman Sachs IBM Corporation Call* USD 190 39 21/01/2012# 9,009 0.02 Goldman Sachs Nikkei 225 Call* JPY 10,000 21 09/03/2012# 1,086 0.00




76




Holdings Investment Liabilities USD Net Assets



Counterparty Currency Currency Currency Maturity Unrealised % ofBuys Sells Rate Date LossNet Assets

Bank of New York USD 1,024,107 JPY 79,440,000 0.0129 22/03/2012# (4,190) (0.01)

Total fair value loss on Forward Currency Contracts (4,190) (0.01)


Counterparty Description Country Currency No. of Unrealised % ofContracts LossNet Assets

Goldman Sachs DJ Stoxx 50 December 2012 Germany EUR 21# (30,996) (0.06) Goldman Sachs DJ Stoxx 50 December 2013 Germany EUR 33# (25,187) (0.05) Goldman Sachs Euro Stoxx 50 March 2012 Germany EUR (17)# (19,297) (0.04)

Total fair value losses on Open Futures Contracts (75,480) (0.15)

Options: -0.19% (31 Dec 2010: -0.24%)

Counterparty Description Base Strike No. of Maturity Fair Value % ofCurrency Price Contracts Date USDNet Assets

Goldman Sachs Euro Dividened Dec 2013** EUR 100.0000 (19) 20/12/2013# (42,549) (0.08) Goldman Sachs Fiat Put March 2012** EUR 9.0000 (34) 16/03/2012# (54,557) (0.11)




77





Cash 10,077,222 19.58



% of TotalAssets


Transferable securities admitted to official stock exchange listingor traded on a regular market 78.67 Over the Counter derivatives 0.32 Cash 19.43 Other Assets 1.58

100.00

# Derivatives* Covered by underlying assets** Not covered by underlying assets

78



Sales

Holding US$6,000 Gold Bullion Securities 885,512

135,000 UK Treasury 2.50% 17/07/2024 651,104 42,004 Jupiter - Global Convertibles Fund (SICAV) 603,763

530 S&P 500 USD 12.10% Auto Note 23/07/2014 584,166 19,600 Tokio Marine 488,967

62 DAX (Xetra) Put 7000 Options 16/09/2011 475,272 500 S&P 500 USD 11.00% Auto Note 15/04/2014 448,750

8,001 Novartis 446,786 270,000 Italy (Republic of) 2.10% 15/09/2017 426,960 350,000 European Investment Bank 2.375% 14/03/2014 363,377 180,000 UK Treasury 0.625% 22/11/2042 354,362 320,000 Canadian Government 4.50% 03/02/2015 353,738 217,000 The Royal Bank of Scotland 6.70% 21/07/2011 349,483 350,000 HSBC Mideast 3.00% 21/10/2015 348,250 10,620 European Aeronautics Defence & Space 346,220

160,000 UK Treasury 1.25% 22/11/2032 327,409 300,000 US Treasury 4.00% 15/02/2014 325,277 13,155 Intel 297,924 9,860 CSL 293,103

310 Deutsche Bank 0.00% 04/11/2011 292,287 Total proceeds of all sales during the year $26,129,527

Purchases

Holding US$1,500,000 US Treasury 3.25% 31/03/2017 1,606,8161,000,000 US Treasury 4.00% 15/08/2018 1,180,3131,000,000 US Treasury 2.625% 15/08/2020 1,072,6371,065,000 US Treasury 2.125% 15/08/2021 1,069,992

850,000 Caisse d'Amortissement de la Dette Sociale 0.772% 02/07/2014 858,806452,000 US Treasury 3.375% 15/04/2032 842,059500,000 US Treasury 2.375% 15/01/2025 708,637

4,290 Gold Bullion Securities 697,35642,004 Jupiter - Global Convertibles Fund (SICAV) 682,384

390,000 UK Treasury 4.25% 07/12/2027 653,807135,000 UK Treasury 2.50% 17/07/2024 596,151550,000 Wal-Mart Stores 3.625% 08/07/2020 590,688550,000 AT&T 3.875% 15/08/2021 564,839

6,298 Deutsche Bank 561,99316,405 Oracle 528,57810,588 Automatic Data Processing 511,305

500 S&P 500 USD 11.00% Auto Note 15/04/2014 500,000450,000 Canadian Government 4.00% 01/06/2017 490,620300,000 JPMorgan Chase 4.25% 25/01/2017 483,010

6,921 Coca Cola 472,177Total cost of all purchases during the year $43,852,415


79

Sarasin IE Sustainable Equity – Real Estate Global (USD)

Investment Review for the year 1 January 2011 to 31 December 2011 2011 has been a very long year from a political and economic standpoint, with the Arab Spring, Japanese earthquake and tsunami, severe flooding in Queensland, policy intervention in China, Hong Kong and Singapore, euro zone insolvency issues, the end of QE2, US debt ceiling issues, and a slowing economic recovery. Listed real estate held up well through out the first half of the year, and having benefitted from the improving lending environment through 2009 and 2010 it was back to old fashioned fundamentals with a slowly improving economic backdrop alongside positive supply demand dynamics. However, the euro crisis deteriorated rapidly in the second half, causing investor sentiment to turn negative in amazement at the lack of political will to solve or at least draw a line under the issues. As the situation worsened, contagion in global markets increased and investors began to fear that the lending environment (life blood of real estate) would seize up again. These worries seem to have been eased by the announcement of the long-term ECB refinancing operations in December. We also feel it is important to point out that the majority of listed real estate companies balance sheets are in much better shape, having recapitalised, consolidated and improved the quality of their portfolios (selling off non-core assets), and restructured their debt so there is more unsecured debt and maturities are more evenly spread, allowing companies to use the mortgage markets (secured debt) which are still very competitive if lending does tighten up. On a regional basis, we have seen a significant difference (approximately 32%) between the strongest (North America) and the weakest (Singapore) regions. There has also been a definite case of ‘the haves and have nots’ as those companies with prime assets in prime locations have seen an improvement in fundamentals, yet secondary assets continue to lag. Our tilt to the companies with the best quality assets globally has definitely benefitted the funds this year. The US strength has definitely been down to solid results during the year, with REITs with the best quality assets and strong balance sheets outperforming, coupled with a pick up in the US economic figures in the 4th quarter driving US markets up strongly. Australia was the second strongest region, having had a poor start to 2011 due to the flooding, its relative performance picked up as the political and economic picture rapidly deteriorated in the US and Europe during July/August. Australia was deemed to be far enough away to be least affected by these issues. This, coupled with stock buybacks and rate cuts in the 4th quarter making the REITs high and stable dividends very attractive, helped relative performance. The UK was the strongest region at the midpoint of the year, as strong results led to interest from investors as they warmed to the idea of rental growth underpinning yields and leading to higher dividends in a low interest rate environment. The economic turmoil that ensued in the second half caused a significant relative underperformance, as fears of contagion from Europe intensified leading to relative underperformance for the year. In Asia, continued policy intervention, a slowing Chinese economy and nervousness over the Middle Eastern situation alongside expectations of rental declines in Singapore and Hong Kong made these the weakest regions. The shorter lease lengths compared to other regions generally cause more volatility in these markets, and with this in mind we believe that at some point during 2012 we should see a bottoming of rents, creating opportunities in Hong Kong where supply is so restricted. I am not sure it is necessary to make much of a comment on Europe; its comings and goings have been well reported by the press, and this has obviously led to weakness in the region. The key has been to avoid companies with any PIIGs exposure (Portugal, Ireland, Italy and Greece). This is quite hard to do as a lot of good quality European property companies have some exposure there. Areas of strength were Germany and Switzerland. Japan proved frustrating as returns were significantly hampered by the sad events of 11th March. Before the earthquake we had been positive on Japan, as the outlook for prime office in Tokyo continued to improve. After 11th March we saw a significant sell off in the Japanese market. However, over time it became clear that there was little or no structural damage to prime office buildings, and we started to see activity pick up and vacancy levels fall, leading to outperformance from the region. A weaker 4th quarter on the economic front and an increase in the vacancy numbers due to some short-term supply pared back some of the outperformance.

80


Investment Review for the year 1 January 2011 to 31 December 2011 (continued) On an asset allocation basis, we felt Asia ex-Japan would be hampered by worries over emerging markets overheating, a property-related slow down in China and a roll over of rents in Hong Kong and Singapore. We were also wary of Europe due to the Greek situation and worries of contagion to other euro members. The UK seemed to us a better place to invest in comparison, as although it was a time of austerity it had the flexibility of its own currency and was seen to be taking the necessary steps. Japan also seemed to offer a good opportunity as developers were trading at significant discounts to their net asset values, and we felt the outlook for prime office in Tokyo was improving and vacancy levels showed signs topping out. In the US, a neutral to slight overweight seemed appropriate after a strong couple of years and valuations up with events. Lastly, as mentioned earlier. we believed that in this sub-par economic recovery the quality and location of assets would be of the utmost importance. In the Sarasin IE Sustainable Equity – Real Estate Global Fund (USD), as a whole, those companies screening as sustainable have helped performance this year as they are usually the ones with good management teams, better asset quality and stronger balance sheets, all of which have been positive drivers this year. However, the lack of sustainable stocks in a number of regions has been frustrating. The US has been the largest positive contributor, benefitting from large overweights to Boston Properties (the largest and best quality office REIT) and Simon Property (the largest US REIT specialising in high quality Malls and outlet centres). The European listed real estate market is one of the most developed markets from a sustainable perspective, and we therefore benefitted from a similar tilt as the Sarasin IE Real Estate – Global Fund (GBP), except for a lack of sustainable German names. Stock selection in Japan was the largest detractor from performance during the year, outweighing the alpha generated by being underweight the region. At the start of the year, there were only three high beta office developers screening as sustainable, and we were overweight all three. This created significant alpha up until the earthquake when the high beta nature of the stocks caused them to sell off much more than the market. The events of 11th March obviously disrupted the recovery in Japan and this was compounded further by economic and political problems elsewhere in the world. Singapore was also frustrating, and although we benefitted from an underweight to the region the fact that three out of the four sustainable stocks had exposure to the residential market led to underperformance from our stock selection due to the continued intervention. We feel the outlook for 2012 looks reasonable with solid fundamentals; construction at record lows, improved balance sheets through recapitalisations, the sale of non-core assets, strong access to attractively priced debt, debt maturities more evenly spread, significantly less secured debt (allowing access to the favourable mortgage markets if necessary), and a stability and visibility of earnings, due to lease lengths, that should appeal to investors in this low interest rate environment. However, at present there is a disconnect between the solid fundamentals and the pricing of the listed real estate sector (15%-20% discount) caused by economic and political uncertainty. However, any improvement in sentiment could lead to a return above our expectation of 8%-12% (driven purely by the dividend and earnings growth) as the discount narrows.

81


Performance Statistics Performance of Sarasin IE Sustainable Equity – Real Estate Global (USD) STG – 1.6.06 to 1.1.12. NAV prices used (bid to bid prior to 1.7.11), gross income reinvested

Performance of Sarasin IE Sustainable Equity – Real Estate Global (USD)

2011 2010 2009 2008 2007 2006 3 year 5 year Return Since

01.06.06 Total Return in % % change Annualised

Sarasin IE Sustainable Equity - Real Estate Global (USD) -7.9 15.7 33.4 -50.5 -8.3 - 42 -35.5 -20.4 -4.0

S&P Developed BMI Property -5.8 21.5 37.7 -47.6 N/a - 57.7 - - - Source: Sarasin & Partners LLP/Lipper as at 31.12.11, USD, NAV, gross income reinvested. Past performance should not be seen as an indication of future performance. The value of investments and the income from them can go down as well as up and you may not get back the amount you originally invested. This can be as a result of market movements and also of variations in exchange rates between currencies. There is no minimum investment period, though we would recommend you view your investment as a medium to long term one (i.e. 5-10 years). 80% of the Manager’s annual and administration charges are deducted from the Fund’s capital, which may constrain future capital growth. Sarasin IE Sustainable Equity – Real Estate Global (USD) Fund is subject to an initial charge of up to 5%. The Fund will also have a target of 50% hedged back into base currency (US Dollars).

20

40

60

80

100

120

140

Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11


Price Indexed

82


Thematic and Geographic Allocations as at 31 December 2011

Thematic Allocation



12.2%

Pricing Power,

32.5


Strategic Holdings,

0.6


42.5%


10.8%

North America,

49.3%

Japan, 10.1%

Europe ex. UK, 9.6%

United Kingdom,

6.2%


83




Price Price Price PriceCalendar year US$ US$ US$ US$2007 14.37 10.76 14.48 10.93 2008 11.86 4.26 12.03 4.46 2009 7.31 3.46 7.96 3.70 2010 8.36 6.17 9.38 6.812011 (up to 30 June 2011) 8.78 7.44 9.92 8.412011 (from 1 July 2011) 8.66 6.33 9.91 7.24* From 1 July 2011 dual pricing was replaced with single pricing.


Distributed Distribution Net Income Per $1,000 Net Income Per $1,000 Distributed invested Distributed Equalisation Distribution invested

Per Unit at 01.06.06 Per Unit Per Unit Per Unit at 01.06.06 Calendar year US$ US$ US$ US$ US$ US$2007 0.2750 25.50 0.0467 0.2283 0.2750 25.50 2008 0.2490 23.09 0.0615 0.1875 0.2490 23.09 2009 0.1956 18.14 0.0205 0.1751 0.1956 18.14 2010 0.1570 14.56 0.0150 0.1420 0.1570 14.56 2011 0.1887 17.50 0.0157 0.1730 0.1887 17.50

Accumulation Units Net IncomeAccumulated Distribution

Net Income Per $1,000 Net Income Per $1,000Allocated invested Distributed Equalisation Distribution investedPer Unit at 01.01.06 Per Unit Per Unit Per Unit at 01.01.06

Calendar year US$ US$ US$ US$ US$ US$2007 0.2785 30.37 0.0318 0.2467 0.2785 30.37 2008 0.2588 28.22 0.0643 0.1945 0.2588 28.22 2009 0.2110 23.01 0.0001 0.2109 0.2110 23.01 2010 0.1744 19.02 0.0325 0.1419 0.1744 19.02 2011 0.2078 22.67 0.0088 0.1990 0.2078 22.67

NET ASSET VALUES


31.12.07 91,346 3,139,777 11.16 11.33 36,606,615 31.12.08 166,911 1,923,453 5.34 5.60 11,654,610 31.12.09 141,239 3,542,385 6.91 7.53 27,640,225 31.12.10 224,414 2,561,451 7.70 8.64 23,866,680 31.12.11 322,333 2,859,486 6.74 7.94 24,891,343



Group 1 Group 2

Group 1 Group 2

84


Fund Details (continued) Distribution An interim distribution of 10.89 cents per unit was declared on 5 July 2011 payable on 19 July 2011 on all Distribution units in issue at 4 July 2011. In respect of Accumulation units 12.51 cents per unit was transferred to the capital account on 5 July 2011. A final distribution of 7.98 cents per unit was declared on 5 January 2012 payable on 19 January 2012 on all Distribution units in issue at 4 January 2012. In respect of Accumulation units 8.27 cents per unit was transferred to the capital account on 5 January 2012. Total Expense Ratio The total expense ratio of the Fund for the year ended 31 December 2011 was 2.07% (31 December 2010: 1.95%). Objective The Fund will invest globally in listed shares and equity securities of companies whose activities are concentrated mainly in the real estate sector and which take ecological and social sustainability issues into account in their business’ operations.

85





Equities: 98.75% (2010: 98.66%)

Corporate Restructuring: 10.62% (2010: 9.82%)

64,247 Cogdell Spencer 272,407 1.10 1,176 Gecina 97,202 0.39 1,202 Icade 90,378 0.36

641 NTT Urban Development 433,270 1.74 30,421 Prologis 868,519 3.49 40,000 Segro 127,444 0.51 95,140 Westfield Group Stapled Units 754,930 3.03


Intellectual Property and Excellence: 12.02% (2010: 16.64%)

13,026 Big Yellow Group 48,892 0.20 182,000 Capitaland 308,107 1.24 18,600 Castellum 228,099 0.91 33,110 CB Richard Ellis Group 502,279 2.02 27,000 City Developments 184,910 0.74 4,371 Deutsche Euroshop 140,238 0.56

156,798 Dexus Property Group 130,799 0.53 7,969 Federal Realty Investment Trust 727,012 2.92

19,100 Regency Centers REIT 721,216 2.90


Pricing Power: 32.09% (2010: 27.86%)

20,312 Apartment Investment & Management 464,942 1.87 241,488 Capitamall Trust 315,901 1.27 182,817 CFS Retail Property Trust 312,446 1.26 139,462 Commonwealth Property Office 134,071 0.54 200,000 Cromwell Property Group Stapled Units 136,318 0.55 21,000 Daibiru 131,089 0.53 10,000 Derwent London 240,078 0.97 17,613 Digital Realty Trust 1,182,713 4.75 15,964 Douglas Emmett 293,738 1.18

100,955 GPT Group 315,294 1.26 54,666 Great Portland Estates 273,553 1.10 48,550 Hammerson 270,718 1.09

225,000 Hysan Development 737,164 2.96 14,000 Land Securities Group 136,998 0.55 71,469 Mitsubishi Estate 1,059,450 4.26

843 Mobimo Holding 187,064 0.75 145,000 MTR 467,594 1.87 21,149 Shaftesbury 153,009 0.61 36,000 UDR 908,640 3.65

106,447 Westfield Retail Trust 266,390 1.07


86





Security of Supply: 1.36% (2010: 1.81%)

1,579 Befimmo S.C.A 103,710 0.42 5,460 Corio 234,123 0.94

Total Security of Supply 337,833 1.36

Strategic Holdings: 0.61% (2010: 3.62%)

344,158 BGP Holdings - - 19,719 Fabege 152,873 0.61

Total Strategic Holdings 152,873 0.61

The Strong get Stronger: 42.05% (2010: 38.91%)

17,940 Boston Properties 1,793,641 7.20 35,000 British Land 247,808 1.00 23,793 Brookfield Properties 372,598 1.50 20,241 First Capital Realty 343,270 1.38 9,004 Klepierre 252,015 1.01

31,864 Lend Lease 231,769 0.93 58,380 Mitsui Fudosan 845,803 3.40 19,100 Simon Property Group 2,478,798 9.96

135,328 Stockland 433,658 1.74 107,283 Sun Hung Kai Properties 1,339,665 5.38

4,302 Unibail-Rodamco 761,082 3.06 16,550 Vornado Realty Trust 1,273,026 5.11 1,429 Wereldhave 94,210 0.38




Cash 259,331 1.04



% of TotalAssets


Transferable securities admitted to official stock exchange listingor traded on a regular market 98.29 Cash 1.04 Curent Assets 0.67 Total 100.00

87



Sales

Holding Description USD

134,000 Hysan Development 627,13238,696 Land Securities Group 464,87027,000 Sun Hung Kai Properties 402,9643,684 Boston Properties 372,830

37,611 British Land 347,643128,000 Capitaland 322,047

2,255 Simon Property Group 269,0682,621 Vornado Realty Trust 225,0053,591 Digital Realty Trust 203,9241,333 Cofinimmo S.A. 150,667

69,000 Keppel Land 147,32515,600 Westfield Group Stapled Units 138,8781,520 Federal Realty Investment Trust 130,841

86,000 Capitamall Trust 127,1996,599 CB Richard Ellis Group 122,705

24,910 Segro 121,7357,000 Mitsubishi Estate 117,1051,072 Wereldhave 99,7652,217 Regency Centers REIT 94,008

430 Unibail-Rodamco 91,513

Total proceeds of all sales during the year $7,498,597

Purchases

Holding Description USD

6,468 Simon Property Group 711,27946,000 Sun Hung Kai Properties 697,6645,915 Boston Properties 548,3296,167 Vornado Realty Trust 526,241

25,000 Mitsubishi Estate 470,12430,079 Land Securities Group 371,05042,101 British Land 356,89375,000 Hysan Development 307,0405,189 Digital Realty Trust 296,006

28,954 Westfield Group Stapled Units 266,05514,000 Mitsui Fudosan 253,7075,223 Regency Centers REIT 212,672

225 NTT Urban Development 210,9828,901 UDR 209,0148,064 CB Richard Ellis Group 208,805

992 Unibail-Rodamco 200,12240,000 Segro 166,05423,000 Daibiru 165,5001,973 Federal Realty Investment Trust 158,562

10,371 Prologis 155,903

Total cost of all purchases during the year $10,955,665

The significant changes to the portfolio are the 20 largest sales and purchases based on acomparison between the holdings as at 31 December 2010 and 31 December 2011.

88

Sarasin IE GlobalSar – Dynamic (GBP)

Investment Review for the year 1 January 2011 to 31 December 2011 Macro overview As 2011 began, inflationary fears took centre stage, as food prices outpaced their 2008 highs and oil prices reached $100/barrel on the back of the turmoil in Egypt. Central banks in Brazil, India and China further tightened their policies, while in the developed economies the sovereign crisis eased somewhat throughout January, thanks to successful bond issuances, though very disappointing Q4 GDP growth in the UK showed the fragility of the recovery. As the first quarter continued, most hard data and confidence indicators signalled robust global growth, particularly in the manufacturing sector, but this was overshadowed by three major events which shook the last month of the quarter. Firstly, a devastating earthquake in Japan, with its subsequent nuclear crisis, provoked a swift and accommodative response from the Bank of Japan. Secondly, tensions in the Middle East intensified further, and thirdly, not only did the EU deal on a Greek bailout package fail to calm market fears, but the Portuguese government fell, prompting all out fear over the sovereign crisis. As April began, the market focus gradually moved back towards the outlook for monetary and fiscal policy, as the ECB hiked interest rates, and the Fed continued its loose monetary policy. Moving into May, most economic data points were weaker than expected, in part due to the supply chain disruptions resulting from the Japanese earthquake, but probably also owing to the ongoing Chinese slowdown. Fiscal policy – and politics – was also centre-stage: the US debt ceiling was reached on 16th May: tensions escalated between ECB officials and EU leaders about a possible Greek debt restructuring, and Spanish and Italian ruling parties suffered massive losses at regional elections. Escalating Greek tensions and increasing fears of a global slowdown hit the markets during the first half of June, but signs of smoother Japanese supply chains, decreasing oil prices, more positive US manufacturing data and a short-term resolution of the Greek debt crisis provided some relief. July was characterised by political and fiscal debate, with a lack of agreement on the US debt ceiling issue and with threats of US debt downgrade from the ratings agencies. Meanwhile in Europe, Greek was afforded another €110 billion bailout together with a 21% reduction in debt, while China witnessed further rate hikes. August began with global market mayhem, as both US fiscal and political woes and the euro zone turmoil deepened. Obama came under fire over his handling of the US debt ceiling affair, while across the Atlantic the ECB bought €36 billion of Spanish and Italian government bonds, attempting to calm continuing European chaos. Japan and Switzerland enacted currency interventions, and it became clear that global growth was slowing. As the third quarter ended, grave concerns over the Greek situation continued, with neither the banks nor the EFSF yet ready for a default. The US witnessed the rebirth of Operation Twist (last seen in 1961) with a $400 billion plan to buy bonds, while poor news flow in both the US and Europe showed manufacturing at a standstill. In the emerging markets there was a general loosening of monetary policy, and fears of a hard landing in China increased. Europe held the spotlight again in November, with new leaders for the ECB, Italy, Greece, and (soon) Spain, and an alarming rise in most euro zone government bond yields. Deteriorating growth in the UK convinced the Chancellor to slightly alter course in his autumn statement, with credit easing and an emphasis on infrastructure projects, alongside further cuts. A divergent world appeared to be emerging, with signs of improvement (particularly in housing) in the US, Europe in recession, and the emerging world facing a soft landing. However, there were signs of optimism as the year drew to a close. The US saw indications of decent components for recovery, particularly in housing and manufacturing, and GDP expectations for 2012 are also improving slightly. In the euro zone, the ECB announced a three-year €489 billion bank liquidity programme, and the EU (excluding the UK) showed some unity in its conviction to solve the ongoing crisis. In the emerging world, Chinese inflation fell back to pre-stimulus 2008 levels, allowing policy makers the potential to engineer a soft landing, while elsewhere in the emerging world the slowing pace of the Indian economy was a cause for concern.

89

Sarasin IE GlobalSar – Dynamic (GBP) Investment Review for the year 1 January 2011 to 31 December 2011 (continued) Portfolio overview As 2011 began, we decreased our bond positions and increased equities; further orienting towards real assets given the environment of increasing inflationary pressure. We sold a significant proportion of our nominal government bonds, reinvesting some of the proceeds into index-linked positions. We sold our position in Sun Hung Kai (Hong Kong property) as we have serious concerns about property in and around China, as well as Nestle and McDonalds on fears about increasing input costs and slowing emerging market growth, rotating into Zurich Financial and Statoil. Our asset allocation added value over the January, but we did suffer poor relative performance in our equity book. Equity markets moved ahead in February (albeit with increasing levels of volatility) with companies proving in the earnings season that the corporate sector remained in rude health. Within equities, we took profits in Schroder’s and Informatica (which were touching new highs) and sold Heinz (on our concerns over the inflationary impact of its inputs on margins). As March began, we reduced our equity exposure in the face of waning market sentiment and global events. We sold Delta and FedEx (which we felt were negatively exposed to the rising oil price). As such, we were relatively defensively positioned when the Japanese tragedy struck, and were able to protect value as the markets fell some 6-8% in response. We introduced MTN – a telecommunication company operating predominately in Africa and the Middle East – to our portfolio. The fund modestly outperformed in April, which saw both equities and bonds posting positive returns. Our European holdings contributed the most, with core names like Fresenius, Umicore, Essilor and BMW performing well. We sold Lorillard, as the stock hit our target price, and Activision Blizzard, which lacked near-term catalysts for re-rating. We initiated a position in Holcim – a cement manufacturer positioned to benefit from growth in global construction spend, and were pleased to see it as April’s top contributor. However, macro data created significant uncertainty, pushing equity markets lower into May. We marginally reduced our equity exposure by taking profits in some cyclical mining and industrial positions, and disposed of BMW (which had been a spectacular performer), beginning a position in Daimler, which was more attractively valued and had exposure to the strongly growing commercial vehicles market. We also adjusted the fund’s exposure to the energy sector, switching Statoil into Gazprom within our Security of Supply theme. At the margin we sold our residual positions in Exelon and Cisco, two stocks whose thematic credentials we felt had been undermined. Early in June, fearful of short-term market weakness, we top sliced some of our energy and emerging market holdings, and also began a position in Danone, which we believed able to exploit the health and wellness mega trend. We became increasingly convinced that banks were priced too pessimistically and bought shares in Intesa (Italian bank), which has recently raised capital, and continued our strategy in credit markets of focusing on financials by purchasing the debt of Credit Agricole (French national champion). As we entered the third quarter of 2011, political uncertainty drove the majority of risk assets lower. We increased our fixed interest weighting, adding to UK government bonds and selecting credit positions to provide some protection. We sold MGM following a very strong run, as well as top slicing long-term favourite EADS, as it looked vulnerable to profit-taking. At the very end of July (and after a strong run up in price) we sold the residual gold position which had been in the portfolio since the credit crisis of 2008. Following downward revisions to US GDP figures in August, we redoubled our efforts to trim our more economically sensitive stocks. After a mid-month bounce of 7%, we reduced our equity weighting further, and added some portfolio insurance to protect from further falls. We kept the proceeds largely in cash, but did increase our bond weighting, buying both government bonds and highly rated corporate bonds. After another fall in markets we also purchased a position in a convertible bond fund where we believed valuations looked compelling. Throughout September, we made a number of changes within the portfolio, all slightly defensive in nature as growth and earnings expectations were marked down more aggressively. We increased the duration of our fixed income component, as shorter-dated yields appeared very low and we felt the demand from pension funds for the long end dampens the risk of rising yields there. Equity markets looked to be range trading; we tried to lessen some risk at the top of this range, mainly by reducing bank equity exposure and replacing this with lower risk corporate bonds.

90

Sarasin IE GlobalSar – Dynamic (GBP) Investment Review for the year 1 January 2011 to 31 December 2011 (continued) Portfolio overview (continued) With Europe under the microscope again in November, the month was an extremely volatile one, with equity markets falling by approximately 10% peak to trough, and Italian and even French bonds falling aggressively, only to recover most of the loss in the last four days of the month. UK government bonds rose as the market questioned Germany’s previously reliable safe haven status. We began a position in Google, a company we viewed as having tremendous potential. We also reinitiated a position in gold following its recent fall, given the considerable concern over fiat currency and the levels of debt built up around the world. After quite a tumultuous second half to 2011, December proved relatively calm, with most equity markets realising their lowest volatility since July. US stocks led the way in returns and, while Oracle unfortunately disappointed on earnings, more defensive stocks like Altria, ADP and Home depot performed strongly. Despite the apparent signs of some risk appetite returning, there was no corresponding fall in safe haven sovereign bond markets, with the government debt of the UK, Germany and the US all rallying into the year end to post some of their best annual returns since the 1990s. Corporate bonds also did well, with some of our senior bank paper in particular staging a recovery. Into the rally, and to position ourselves for 2012, we began to reduce our financial underweight, buying UBS and PNC financial (a US listed bank). Outlook We remain confident in our underweight to government bonds, with short and medium-term yields now too close to zero to maintain last year’s momentum. While 2011 served to remind investors that capitalism requires confidence in order to work, there are signs that the measures recently taken by the ECB have restored some faith in the global financial system and increased the chances of recovery. However, as expectations increase, so does the risk of disappointment, and we feel a premium is still to be recognised for thematic companies which can combine superior earnings visibility with the support of conservative valuations.

91


Performance Statistics Performance of Sarasin IE GlobalSar – Dynamic (GBP) STG – 1.1.88 to 1.1.12. NAV prices used (bid to bid prior to 1.7.11), gross income reinvested

Performance of Sarasin IE GlobalSar – Dynamic (GBP)

Return since 1.1.88


Sarasin IE GlobalSar - Dynamic (GBP) -6.7 9.4 11.2 -17.9 9.4 8.0 13.5 1.9 481.2 7.6 *UK Bond Index 16.9 7.3 -0.8 13.5 4.7 0.5 24.4 47.9 619.4 8.6 MSCI World Equity Index -4.8 15.3 15.7 -17.9 7.2 5.3 27.0 11.7 428.0 7.2 **£ Deposit Index 0.6 0.6 0.9 5.5 6.0 4.9 2.1 14.2 348.2 6.4

Source: Sarasin & Partners LLP/Lipper as at 31.12.11, STG, NAV, gross income reinvested. *Citigroup UK WGBI TR **LIBOR GBP 1 month Past performance should not be seen as an indication of future performance. The value of investments and the income from them can go down as well as up and you may not get back the amount you originally invested. This can be as a result of market movements and also of variations in exchange rates between currencies. There is no minimum investment period, though we would recommend you view your investment as a medium to long term one (i.e. 5-10 years). 80% of the Manager’s annual and administration charges are deducted from the Fund’s capital, which may constrain future capital growth. Sarasin IE GlobalSar – Dynamic (GBP) is subject to an initial charge of up to 5%.

100

200

300

400

500

600

Jan 88 Jan 92 Jan 96 Jan 00 Jan 04 Jan 08 Jan 12


Price Indexed

92


Thematic, Geographic and Asset Allocations as at 31 December 2011 Asset Allocation

Thematic Equity Allocation


Equities, 60.9%

Property, 3.3%




15.4%


16.7%

Strategic Holdings,

19.0%




25.6%

United Kingdom,

12.1%


Japan, 9.9%

Multi-Regional,

12.9%

North America,

36.7%


Emerging Markets,

7.3%

93



Distribution Units Accumulation UnitsHighest Lowest Highest LowestBuying Selling Buying Selling

Price Price Price PriceCalendar year £ £ £ £ 2007 34.23 29.43 56.53 48.282008 34.30 23.56 56.81 39.822009 29.86 22.63 52.02 38.812010 31.80 26.76 56.66 47.232011 (up to 30 June 2011) 31.98 28.46 57.52 51.192011 (from 1 July 2011) 31.54 25.98 57.13 47.24* From 1 July 2011 dual pricing was replaced with single pricing.


Distributed DistributionNet Income Per £1,000 Net Income Per £1,000Distributed invested Distributed Equalisation Distribution invested

Per Unit at 07.01.94 Per Unit Per Unit Per Unit at 07.01.94 Calendar year £ £ £ £ £ £ 2007 0.6610 41.38 0.0641 0.5969 0.6610 41.38 2008 0.7900 49.46 - 0.7900 0.7900 49.46 2009 0.6780 42.45 - 0.6780 0.6780 42.45 2010 0.6230 39.01 - 0.6230 0.6230 39.01 2011 0.5349 33.49 - 0.5349 0.5349 33.49

Accumulation Units Net IncomeAccumulated Distribution

Net Income Per £1,000 Net Income Per £1,000Allocated invested Distributed Equalisation Distribution investedPer Unit at 07.01.94 Per Unit Per Unit Per Unit at 07.01.94

Calendar year £ £ £ £ £ £ 2007 1.0854 64.03 - 1.0854 1.0854 64.03 2008 1.3260 78.22 0.0456 1.2804 1.3260 78.22 2009 1.1705 69.05 - 1.1705 1.1705 69.05 2010 1.1027 65.05 - 1.1027 1.1027 65.05 2011 1.2282 72.45 0.0840 1.1442 1.2282 72.45



2007 3,746,722 2,528,361 32.33 53.38 256,237,274 2008 2,588,174 2,378,748 25.89 43.77 171,134,234 2009 3,146,817 2,518,236 28.02 48.82 211,139,760 2010 3,933,865 2,616,499 30.00 53.45 257,850,619 2011 3,184,725 2,263,261 27.10 49.89 199,224,779

Group 1 Group 2

Units in Issue

Group 1 Group 2

94

SARASIN IE GlobalSar – Dynamic (GBP)

Fund Details (continued) Performance History (continued) Distribution An interim distribution of 32.58 pence per unit was declared on 5 July 2011 payable on 19 July 2011 on all Distribution units in issue at 4 July 2011. In respect of Accumulation units 80.55 pence per unit was transferred to the capital account on 5 July 2011. A final distribution of 20.91 pence per unit was declared on 5 January 2012 payable on 19 January 2012 on all Distribution units in issue at 4 January 2012. In respect of Accumulation units 42.27 pence per unit was transferred to the capital account on 5 January 2012. Total Expense Ratio The total expense ratio of the Fund for the year ended 31 December 2011 was 1.84% (31 December 2010: 1.89%). Objective The investment objective of this Fund is to achieve long term capital growth and income generation with a lower risk profile than pure stock market alternatives by investment on a global basis.

95

SARASIN IE GLOBALSAR - DYNAMIC (GBP)




Equities: 70.77% (31 Dec 2010: 71.81%)


53,430 Citigroup 924,544 0.46 149,750 Hartford Financial Services Group 1,585,748 0.80 130,000 Home Depot 3,531,923 1.77 64,000 Jardine Matheson 1,947,448 0.98

210,894 MTN Group 2,417,477 1.21 259,600 Nissan Motor 1,497,517 0.75 225,000 Pfizer 3,156,899 1.58 27,496 PNC Financial Services 1,036,769 0.52

138,400 Tokio Marine Holdings 1,966,994 0.99 200,000 UBS AG 1,530,391 0.77 80,000 Wal-Mart Stores 3,102,917 1.56



42,145 ASML Holding 1,141,495 0.57 42,809 AstraZeneca 1,265,434 0.64 32,784 BorgWarner 1,353,859 0.68 84,100 Canon 2,390,523 1.20 47,739 Cie Generale d'Optique Essilor International 2,155,346 1.08 61,800 Danone 2,498,749 1.25 2,300 Deutsche Bank 1,322,978 0.66

19,000 Fanuc 1,868,009 0.94 5,800 Google - A Shares 2,407,831 1.21

327,320 ICAP 1,120,089 0.56 26,323 International Business Machines 3,169,011 1.59 40,000 International Flavors & Fragrances 1,363,089 0.68

360,000 Linc Energy 255,855 0.13 74,600 Novartis 2,756,644 1.38

125,710 Novozymes - B Shares 2,497,704 1.25 142,000 Oracle 2,368,963 1.19 68,300 Procter & Gamble 2,957,060 1.48 4,000 Samsung Electronics 1,183,776 0.59

88,300 Unicharm 2,794,117 1.40 25,014 United Technologies 1,193,824 0.60


96






150,300 Altria Group 2,894,386 1.45 396 Central Japan Railway 2,145,300 1.08

156,000 Mitsubishi Estate 1,495,912 0.75 461,538 Prudential 2,893,843 1.45 66,219 SABMiller 1,498,205 0.75 42,373 Saipem 1,162,386 0.58

149,888 SK Telecom 1,312,817 0.66 140,000 Virgin Media 1,933,502 0.97 72,000 Waste Management 1,525,791 0.78



550,000 Centrica 1,576,850 0.79 100,767 France Telecom 1,011,933 0.51 53,197 Fresenius Medical Care 2,328,311 1.17

200,000 Gazprom 1,372,663 0.69 54,663 Koninklijke Boskalis Westminster 1,279,951 0.64

165,850 SES 2,546,158 1.27 27,778 Sociedad Quimica Y Minera 954,324 0.48 98,606 Time Warner 2,320,516 1.16 45,000 Total 1,487,705 0.75 14,943 UBS AG 1,127,748 0.57 50,800 Umicore 1,333,190 0.67



1,585,467 Bluecrest Allblue 2,642,973 1.33 25,000 Gold Bullion Securities 2,459,409 1.23

2,162,195 International Public Partnerships 2,601,121 1.31

97





Strategic Holdings (continued): 5.43% (31 Dec 2010: 4.67%)

2,502,259 NB Distressed Debt Investment 1,553,897 0.78 31,500 Vornado Realty Trust 1,567,359 0.79



646,903 3i Group 1,159,897 0.58 479 AP Moeller - Maersk A/S 2,031,762 1.02

74,600 Automatic Data Processing 2,622,268 1.32 422,126 British Land 1,933,337 0.97 47,300 Coca-Cola 2,146,078 1.09 19,981 Exxon Mobil 1,101,611 0.55 55,060 HJ Heinz 1,933,992 0.97

298,573 HSBC Holdings 1,463,157 0.73 40,900 Occidental Petroleum 2,478,764 1.24

243,900 Pearson 2,941,434 1.48 441,177 Tesco 1,774,855 0.89 71,734 Yum! Brands 2,763,283 1.39


Collective Investment Schemes: 9.42% (31 Dec 2010: 2.25%)309,393 Sarasin IE Real Estate Equity (GBP) - Accumulation 3,815,434 1.92 23,345 Brevan Howard Investment Fund II - Macro FX Fund 2,515,918 1.26

2,500,000 Investec Series III - Investec Emerging Markets Local Currency Debt 2,584,000 1.30

2,380,000 2,251,480 1.13 450,200 Jupiter Global Fund - Global Convertibles 4,062,829 2.04 393,619 Polar Capital Funds - Global Technology Fund 3,531,593 1.77



JO Hambro Capital Management UK Umbrella Fund - Emerging Markets Fund

98





Bonds: 25.00% (31 Dec 2010: 27.77%)


950,000 America Movil 5.75% 28/06/2030 A- 1,100,338 0.55 1,250,000 AT&T 7.00% 30/04/2040 A- 1,689,800 0.85 1,200,000 Bank of America 6.125% 15/09/2021 A- 1,080,692 0.54 1,100,000 Centrica 7.00% 19/09/2018 A- 1,347,602 0.68 1,500,000 Dignity Finance 8.151% 31/12/2030 BBB 2,038,785 1.02

700,000 EDF 6.875% 12/12/2022 A+ 856,657 0.43 1,500,000 European Investment Bank 4.25% 07/12/2021 AAA 1,620,146 0.81 1,000,000 Finmeccanica Finance 8.00% 16/12/2019 BBB- 893,159 0.45 1,200,000 Great Rolling Stock 6.875% 27/07/2035 BBB 1,363,297 0.68

450,000 Iberdrola 6.00% 01/07/2022 A- 455,364 0.23 1,000,000 Irish Life & Permanent 4.00% 10/03/2015 BBB 617,769 0.31 1,650,000 John Lewis 6.125% 21/01/2025 NA 1,767,299 0.89 1,000,000 JPMorgan Chase 4.25% 25/01/2017 A+ 1,031,270 0.52

800,000 Lloyds TSB Bank 6.75% 24/10/2018 A 831,018 0.42 1,650,000 Porterbrook Rail Finance 7.125% 20/10/2026 BBB 1,968,798 0.99 1,300,000 Royal Bank of Scotland 7.50% 29/04/2024 A 1,334,986 0.67 1,200,000 RWE Finance 5.50% 06/07/2022 A- 1,348,016 0.68 1,000,000 Societe Generale 5.00% 20/12/2018 A+ 892,027 0.45 1,500,000 UK Treasury 1.25% 22/11/2027 AAA 2,306,681 1.16 2,000,000 UK Treasury 3.75% 07/09/2020 AAA 2,313,728 1.16 2,000,000 UK Treasury 4.00% 07/03/2022 AAA 2,361,396 1.19 2,000,000 UK Treasury 4.00% 07/09/2016 AAA 2,286,410 1.15 3,000,000 UK Treasury 4.50% 07/09/2034 AAA 3,793,791 1.90 1,500,000 UK Treasury 4.50% 07/12/2042 AAA 1,936,646 0.97 1,500,000 UK Treasury 8.00% 07/06/2021 AAA 2,298,186 1.15 1,000,000 UK Treasury Index-Linked 0.75% 22/03/2034 AAA 1,233,422 0.62

950,000 Wellcome Trust Finance 4.625% 25/07/2036 AAA 1,043,908 0.52



780,000 Aviva 6.125% 14/11/2036 BBB+ 616,654 0.31 1,500,000 Barclays Bank 14.00% 29/11/2049 BBB 1,670,250 0.83

700,000 Chester Asset Receivables 03 Series B 15/07/2013 A 671,516 0.34 2,000,000 Credit Agricole 5.136% 29/12/2049 BBB 1,093,684 0.55 1,000,000 Hutchison Whampoa International 10 29/12/2049 BBB 641,484 0.32

99





Bonds (continued): 4.36% (31 Dec 2010: 2.12%)

Floating Interest (continued): 4.01% (31 Dec 2010: 1.93%)

1,500,000 Legal & General 6.385% 29/05/2049 BBB 1,165,725 0.59 500,000 Nationwide Building Society 5.25% 23/11/2020 BBB+ 473,625 0.24

1,900,000 Nationwide Building Society 6.25% 29/10/2049 BBB+ 1,390,912 0.70 350,000 Old Mutual 4.50% 18/01/2017 BBB- 292,022 0.15


Total Bonds 49,827,063 25.00




Bank of New York GBP 17,128,855 EUR 20,030,000 0.8552 22/03/2012# 340,918 0.17

Total fair value gain on Forward Currency Contract 340,918 0.17

Options: 0.00% (31 Dec 2010: 0.09%)

Counterparty Description Base Strike No. of Maturity Fair Value % ofCurrency PriceContracts Date GBP Net Assets

Goldman Sachs Nikkei 225 Call* JPY 10,000 148 09/03/2012# 4,949 0.00




100








Bank of New York GBP 31,945,266 USD 49,680,000 0.6430 22/03/2012# (215,986) (0.11)

Bank of New York GBP 9,687,562 JPY 1,169,560,000 0.0083 22/03/2012# (113,054) (0.06)


Open Futures Contracts: -0.12% (31 Dec 2010: 0.00%)

Counterparty Description Country Currency No. of Unrealised % ofContracts Gain/(loss) Net Assets


Total fair value loss on Open Futures Contracts (236,747) (0.12)

Options: -0.04% (31 Dec 2010: 0.00%)

Counterparty Description Base Strike No. of Maturity Fair Value % ofCurrency PriceContracts Date GBP Net Assets

Goldman Sachs BP Put** GBP 440 (224) 17/02/2012# (25,200) (0.01)

Goldman Sachs British Land Put** GBP 450 (172) 16/03/2012# (37,845) (0.02)

Goldman Sachs Nestle Put** CHF 46 (430) 16/03/2012# (2,959) (0.00)

Goldman Sachs Occidental Petroleum Put**USD 80 (190) 21/01/2012# (4,425) (0.00)


101




Investment Liabilities GBP Net Assets




Bank Overdraft (2,510,699) (1.26)

Other Net Assets 3,297,839 1.66


% of TotalAssets


Transferable securities admitted to official stock exchange listingor traded on a regular market 87.92 Collective Investment Schemes 9.17 Over the Counter derivatives 0.17 Cash 0.53 Other Assets 2.21 Total 100.00

# Derivatives* Covered by underlying assets** Not covered by underlying assets

102



Sales

Holding £ 9,600,000 Uk Treasury 4.75% 07/09/2015 10,732,4782,000,000 Uk Treasury 2.5% Index-Linked 16/04/2020 6,669,2055,000,000 Uk Treasury 4% 07/03/2022 5,635,559

226,450 Intel 3,207,6493,000,000 Rabobank Nederland 4% 10/09/2015 3,139,300

159,167 Eads 3,080,72854,954 Bayerische Motoren Werke 2,984,134

2,500,000 Uk Treasury 4.5% Bond 07/12/2042 2,951,6132,350,000 United Kingdom(Government Of) 0.625% Idx-Lkd Gilt 2,913,096

30,000 Gold Bullion Secs. 2,894,71251,000 Fedex 2,761,187

2,000,000 Uk Treasury Index-Linked 1.125% 22/11/2037 2,700,39347,000 Vf 2,667,81685,000 Hj Heinz 2,589,1173,700 S&P 500 Usd 12.1% Auto Note Jul 23 2014 (Citi) 2,521,963

262,900 Mgm Resorts Intl. 2,503,889154,900 Statoil Asa 2,486,696

4,500 S&P 500 Usd 11% Auto Note Apr 15 2014 (Socgen) 2,459,5031,700,000 United Kingdom(Government Of) 1.875% Idx/Lkd Stk 2,397,275

18,810 Zurich Finl. Serv. 2,375,635Total proceeds of all sales during the year £138,092,217

Purchases

Holding £ 4,000,000 Uk Treasury 4.5% Bond 07/12/2042 4,721,160

450,200 Jupiter Gbl. Gbl. Convs. 'I' £ Inc 4,283,4283,750,000 United Kingdom(Government Of) 4.5% Bds 07/09/2034 4,195,650

550,738 Prudential 3,814,367186,466 Oracle 3,810,557

3,500,000 Uk Treasury 4% 07/03/2022 3,648,381393,619 Polar Capital Global Technology I Usd 3,286,932

3,000,000 United Kingdom(Government Of) 3.75% Gilt 07/09/020 3,145,47063,900 Danone 2,860,492

156,750 Hartford Finl. Servs. Grp. 2,840,64988,800 Canon 2,788,933

221,894 Mtn Grp. 2,777,8764,500 S&P 500 Usd 11% Auto Note Apr 15 2014 (Socgen) 2,761,414

794,000 Invensys 2,746,0102,350,000 United Kingdom(Government Of) 0.625% Idx-Lkd Gilt 2,727,6452,380,000 J O Hambro Capital Emerging Markets Institutional 2,725,1001,616,000 Intesa Sanpaolo 2,705,987

80,000 Wal-Mart Stores 2,630,94725,000 Gold Bullion Secs. 2,628,92455,238 Holcim 2,617,338

Total cost of all purchases during the year £164,895,258

The significant changes to the portfolio are the 20 largest sales and purchases based on acomparison between the holdings as at 31 December 2010 and 31 December 2011.

103

Sarasin IE Investment Funds

Independent auditor’s report to the Unitholders of Sarasin IE Investment Funds

We have audited the financial statements of Sarasin IE EquiSar – Global Thematic (GBP), Sarasin IE GlobalSar – Dynamic (USD), Sarasin IE GlobalSar – Income (GBP), Sarasin IE GlobalSar – Cautious (GBP), Sarasin IE GlobalSar – Cautious (USD), Sarasin IE Sustainable Equity – Real Estate Global (USD) and Sarasin IE GlobalSar – Dynamic (GBP) (collectively referred to as “the Funds’”) for the year ended 31 December 2011 which comprise the Statement of Total Return, the Balance Sheet, the Statement of Changes in Net Assets Attributable to the Unitholders and the related notes. These financial statements have been prepared under the accounting policies set out therein. This report is made solely to the Funds’ unitholders, as a body, in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice ‘Financial Statements of Authorised Funds’ issued by the Investment Management Association (the “Statement of Recommended Practice for Authorised Funds”). Our audit work has been undertaken so that we might state to the Funds’ unitholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Funds and the Funds’ unitholders as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors of the manager and auditor The manager of the Funds’ responsibilities for preparing the Annual Report and the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), are set out in the Statement of Manager’s Reponsibilities.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011.

We read the other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. The other information comprises only the Report of the Trustee, Manager’s Report, Investment Themes, Supplemental Unaudited Information, Schedules of Investments, Investment Review, Performance Statistics, Asset Allocations and Fund Details. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the manager of the Funds in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Funds’ circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

104


Independent auditor’s report to the Unitholders of Sarasin IE Investment Funds

Opinion on financial statements In our opinion the financial statements:

the financial statements give a true and fair view, in accordance with UK Generally Accepted Accounting Practice, of the state of affairs of the Funds as at 31 December 2011 and of their losses for the year then ended;

the financial statements have been properly prepared in accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011.

Darina Barrett

For and on behalf of

KPMG

Chartered Accountants, Statutory Audit Firm

1 Harbourmaster Place

IFSC

Dublin 1

Date: 22 March 2012

The maintenance and integrity of the Sarasin website is the responsibility of the Directors of the Manager; the work carried out by the auditor does not involve consideration of these matters and, accordingly, the auditor accepts no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

105

Sarasin IE Investment Funds Statement of Total Return

For the year ended 31 December 2011

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £

IncomeNet capital (losses)/gains 3 (21,954,391) 32,727,935 (12,902,344) 9,744,824 (455,337) 4,021,079Revenue 4 2,851,724 3,308,471 4,640,387 4,634,419 6,071,436 5,496,887Expenses 5 (2,843,522) (3,327,308) (2,746,826) (2,945,368) (1,967,365) (1,954,312)Net revenue before taxation 8,202 (18,837) 1,893,561 1,689,051 4,104,071 3,542,575Witholding tax suffered 13 (574,536) (720,674) (552,288) (552,355) (224,887) (142,985)Net revenue after taxation (566,334) (739,511) 1,341,273 1,136,696 3,879,184 3,399,590

(22,520,725) 31,988,424 (11,561,071) 10,881,520 3,423,847 7,420,669

Finance Costs 7 (1,395,200) (1,229,462) (3,537,863) (3,376,543) (5,183,962) (4,846,990)

(23,915,925) 30,758,962 (15,098,934) 7,504,977 (1,760,115) 2,573,679

Statement of Change in Net Assets Attributable to Unitholders


01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £

184,474,391 205,197,833 165,387,210 138,557,063 127,098,479 110,578,765Movement due to sales and repurchases of units

21,273,102 20,241,045 20,599,860 46,218,015 41,620,431 35,547,637

(61,651,200) (72,274,457) (38,209,993) (29,302,572) (32,212,689) (22,832,699)(40,378,098) (52,033,412) (17,610,133) 16,915,443 9,407,742 12,714,938

(23,915,925) 30,758,962 (15,098,934) 7,504,977 (1,760,115) 2,573,679

765,580 551,008 2,400,366 2,409,727 1,148,618 1,231,097

120,945,948 184,474,391 135,078,509 165,387,210 135,894,724 127,098,479

The notes on pages 109 to 136 form part of these financial statements.

Notes

Retained distribution on accumulation units

Closing net assets attributable to Unitholders

Total (Expense)/ Income before distributions

Change in Net Assets Attributable to Unitholders

Opening net assets attributable to Unitholders

Amounts received on creation of units

Amounts paid on cancellation of units

Change in net assets attributable to Unitholders from investment activities

GlobalSar -

EquiSar -

Global Thematic (GBP)

Sarasin IE

GlobalSar -

Dynamic (USD)

Income (GBP)

Sarasin IE

Sarasin IE

EquiSar -


Sarasin IE

GlobalSar -

Dynamic (USD)

Sarasin IE

GlobalSar -

Income (GBP)

Sarasin IE

106

Sarasin IE Investment Funds Statement of Total Return (continued)


01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £

IncomeNet capital (losses)/gains 3 (1,138,261) 2,461,172 (1,280,300) 1,462,658 (2,465,817) 3,270,284 (21,668,487) 19,839,301Revenue 4 789,502 887,109 821,670 686,352 968,651 960,994 7,280,536 6,806,001Expenses 5 (551,190) (799,033) (707,016) (803,158) (569,745) (535,651) (4,057,641) (4,365,978)Net revenue before taxation 238,312 88,076 114,654 (116,806) 398,906 425,343 3,222,895 2,440,023Witholding tax suffered 13 (76,666) (98,136) (79,742) (78,105) (168,535) (150,530) (878,638) (836,442)

Net revenue after taxation 161,646 (10,060) 34,912 (194,911) 230,371 274,813 2,344,257 1,603,581

(976,615) 2,451,112 (1,245,388) 1,267,747 (2,235,446) 3,545,097 (19,324,230) 21,442,882

Finance Costs 7 (569,789) (607,559) (552,615) (426,884) (655,117) (680,325) (5,583,149) (4,937,731)

(1,546,404) 1,843,553 (1,798,003) 840,863 (2,890,563) 2,864,772 (24,907,379) 16,505,151

Statement of Change in Net Assets Attributable to Unitholders (continued)


01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £

29,983,310 37,207,923 27,388,740 26,920,639 23,866,680 27,640,225 257,850,619 211,139,760Movement due to sales and repurchases of units

4,619,318 2,208,795 30,905,298 4,799,490 11,197,224 8,309,948 45,259,166 59,598,174

(9,874,496) (11,590,190) (5,595,337) (5,539,924) (7,910,697) (15,489,311) (82,223,620) (32,290,490)(5,255,178) (9,381,395) 25,309,961 (740,434) 3,286,527 (7,179,363) (36,964,454) 27,307,684

(1,546,404) 1,843,553 (1,798,003) 840,863 (2,890,563) 2,864,772 (24,907,379) 16,505,151

293,725 313,229 563,292 367,672 628,699 541,046 3,245,993 2,898,024

23,475,453 29,983,310 51,463,990 27,388,740 24,891,343 23,866,680 199,224,779 257,850,619


Notes

Retained distribution on accumulation units

Closing net assets attributable to Unitholders

Total (Expense)/ Income before distributions

Change in Net Assets Attributable to Unitholders

Opening net assets attributable to Unitholders

Amounts received on creation of units

Amounts paid on cancellation of units

Change in net assets attributable to Unitholders from investment activities

Sustainable Equity -

Cautious (GBP) Cautious (USD) Real Estate Global (USD)

GlobalSar - GlobalSar -

Sarasin IE Sarasin IE Sarasin IE

GlobalSar - GlobalSar - Sustainable Equity -



Dynamic (GBP)

Sarasin IE

GlobalSar -

Dynamic (GBP)

Sarasin IE

GlobalSar -

107

Sarasin IE Investment Funds Balance Sheet

as at 31 December 2011

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Notes £ £ US$ US$ £ £

AssetsInvestment assets: 2

118,179,804 182,187,671 130,154,220 164,146,544 123,060,872 118,582,573

1,677,270 2,080,800 - - 8,436,480 6,340,660

- - 433,489 87,387 68,456 -Other AssetsAccrued income and debtors 9 1,266,398 118,620 626,429 1,586,632 2,464,322 2,174,086Bank deposits 1,063,761 837,100 4,056,718 1,063,531 3,700,398 1,068,368Margin accounts 150,838 - 819,171 37,937 117,531 466,295Total other assets 2,480,997 955,720 5,502,318 2,688,100 6,282,251 3,708,749Total Assets 122,338,071 185,224,191 136,090,027 166,922,031 137,848,059 128,631,982

Investment liabilities 2

- 300,949 304,464 464,853 46,338 353,934Other LiabilitiesCreditors 1,218,498 340,731 348,925 545,775 925,288 267,284Bank overdraft 36,664 - - - - -Distribution payable 8 136,961 108,120 358,129 524,193 981,709 912,285Total other liabilities 1,392,123 448,851 707,054 1,069,968 1,906,997 1,179,569Total Liabilities 1,392,123 749,800 1,011,518 1,534,821 1,953,335 1,533,503Net Assets Attributable to Unitholders 120,945,948 184,474,391 135,078,509 165,387,210 135,894,724 127,098,479

The financial statements on pages 105 to 136 were approved by the Board of Directors of Sarasin Funds Management (Ireland) Limitedon 22 March 2012 and signed on its behalf by:

Director: Michael Barr Director: Fergus Crawford


19


EquiSar - GlobalSar - GlobalSar -

11

Investments in transferable securities

Investments in collective investment schemesUnrealised gains on derivatives

Unrealised losses on derivatives

Global Thematic (GBP) Dynamic (USD) Income (GBP)

108

Sarasin IE Investment Funds Balance Sheet (continued)

as at 31 December 2011

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Notes £ £ US$ US$ US$ US$ £ £

AssetsInvestment assets 2

19,562,486 26,149,485 40,811,812 23,365,826 24,580,921 23,547,921 179,966,734 238,894,693

2,791,521 1,859,143 - - - - 18,761,254 11,582,776

111,187 865,582 165,910 694,899 - - 345,867 127,778Other AssetsAccrued income and debtors 9 231,020 350,245 817,296 124,797 167,305 112,841 4,524,599 1,707,910Bank deposits 713,248 1,086,458 9,571,097 3,432,010 259,331 312,357 18,491 9,152,405Margin accounts 466,572 381,551 506,125 304,736 - - 1,073,533 7,069Total other assets 1,410,840 1,818,254 10,894,518 3,861,543 426,636 425,198 5,616,623 10,867,384Total Assets 23,876,034 30,692,464 51,872,240 27,922,268 25,007,557 23,973,119 204,690,478 261,472,631

Investment liabilities 2

199,024 322,878 176,776 180,851 - - 636,216 1,998,094Other LiabilitiesCreditors 109,654 310,548 174,303 328,934 90,494 93,423 561,599 483,309Margin accounts overdraft - - - 6,631 - - 74,236 -Bank overdraft - - - - - - 3,528,487 -Distribution payable 8 91,903 75,728 57,171 17,112 25,720 13,016 665,161 1,140,609Total other liabilities 201,557 386,276 231,474 352,677 116,214 106,439 4,829,483 1,623,918Total Liabilities 400,581 709,154 408,250 533,528 116,214 106,439 5,465,699 3,622,012Net Assets Attributable to Unitholders 23,475,453 29,983,310 51,463,990 27,388,740 24,891,343 23,866,680 199,224,779 257,850,619

The financial statements on pages 105 to 136 were approved by the Board of Directors of Sarasin Funds Management (Ireland) Limitedon 22 March 2012 and signed on its behalf by:

Director: Michael Barr Director: Fergus Crawford


19

11

Investments in transferable securities

Investments in collective investment schemes


Sarasin IE Sarasin IE Sarasin IEGlobalSar - GlobalSar - Sustainable Equity -

Unrealised gains on derivatives

Unrealised losses on derivatives

Sarasin IEGlobalSar -

Dynamic (GBP)

109

Sarasin IE Investment Funds Notes to the Financial Statements of Sarasin IE EquiSar – Global Thematic (GBP), Sarasin IE GlobalSar – Dynamic (USD), Sarasin IE GlobalSar – Income (GBP), Sarasin IE GlobalSar – Cautious (GBP), Sarasin IE GlobalSar – Cautious (USD), Sarasin IE Sustainable Equity – Real Estate Global (USD) and Sarasin IE GlobalSar – Dynamic (GBP). 1. Accounting convention Basis of accounting These financial statements comprise the separate financial statements for the following funds - Sarasin IE EquiSar – Global Thematic (GBP), Sarasin IE GlobalSar – Dynamic (USD), Sarasin IE GlobalSar – Income (GBP), Sarasin IE GlobalSar – Cautious (GBP), Sarasin IE GlobalSar – Cautious (USD), Sarasin IE Sustainable Equity – Real Estate Global (USD) and Sarasin IE GlobalSar – Dynamic (GBP),collectively known as “the Funds”. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments, and in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice ‘Financial Statements of Authorised Funds’ issued by the Investment Management Association (the “Statement of Recommended Practice for Authorised Funds”). They are also prepared in accordance with the provisions of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011. The European Communities (Undertakings for Collective Investments in Transferable Securities) Regulations 2011 include certain additional annual report disclosure requirements, including disclosure of transaction costs. The Central Bank of Ireland has indicated that these requirements may be prospectively adopted for financial periods beginning on or after 1 July 2011. Accordingly, these will be addressed by the Funds next year. 2. Principal Accounting Policies The preparation of financial statements requires management to make certain estimates and assumptions that may effect the amounts reported in the Financial Statements and accompanying notes. A summary of the applicable accounting policies are set out below: a) Income Dividends are accounted for on an ex-dividend basis and shown gross of withholding taxes where applicable. Equalisation received from holdings in collective investment schemes is treated as a return of capital. Stock dividends, where received, are accounted for as income or capital depending on the facts of each particular case. Interest on securities and bank deposit interest is accrued on a day to day basis. Interest on securities is calculated using the original effective interest rate of the instrument. b) Investment assets and liabilities The quoted investments of each Fund have been valued at the bid-market prices ruling as at midday on the year end date, net of any accrued interest which is included in the Balance Sheet as an income related item. The unquoted investments held by the Funds are valued at a price that the Manager considers to represent fair value, which may be cost. Fair value is the amount at which the unquoted securities could be exchanged in an arm’s length transaction between informed and willing parties, other than in a forced or liquidation sale. Where the underlying unlisted investments’ administrator publishes net asset values of the investments, fair value is normally derived as the published net asset value (bid) as at the year end date. The valuation date of each investment may not always be coterminous with the valuation date of the Sarasin IE Investment Funds and in such cases the valuation of the investment at the last valuation date is used.

110

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 2. Principal Accounting Policies (continued) b) Investment assets and liabilities (continued). Collective investment schemes quoted on a regulated exchange are valued at the bid-market prices ruling as at midday on the year end date. Units in Collective investment schemes not quoted on a regulated exchange shall be valued by reference to the latest available net asset value of the units at the valuation point for the relevant dealing day as published by the collective investment scheme. Each Fund may utilise futures, options and forwards for hedging purposes. Open contracts are marked to market at the year end date. Profits and losses arising on the disposal of investments are presented in the Statement of Total Return. Unrealised gains and losses arising from the revaluation of investments are also presented in the Statement of Total Return. c) Redeemable units The Fund's units are assessed as liability instruments. The units are redeemable at the unitholders option. Distributions of these units are recognised in the Statement of Total Return as a finance cost. Class A was the only class in operation at the year end. d) Foreign exchange Assets and liabilities, as at the year end date, other than those denominated in the base currency of the Funds have been translated at the rate of exchange ruling as at midday on the balance sheet date. Differences arising are dealt with in the Statement of Total Return. Income and expenditure transactions are translated at the rate ruling at the date of the transaction. The profits or losses on forward foreign exchange contracts are dealt with in the Statement of Total Return. Forward foreign exchange contracts which remain open at the year end are revalued using the forward rate on the year end date. e) Trade Date Accounting All “regular way” purchases and sales of financial assets are recognised on a trade date i.e. the date that the entity commits to purchase or sell that asset. Regular way purchases or sales of financial assets that require delivery of the asset within the time frame are generally established by regulations or conventions in the market place. f) Fund Commissions The Funds’ commissions and charges incurred on the purchase and sale of investments are reported in the Statement of Total Return in net capital gains. g) Cash Flow Statement

Under Financial Reporting Standard No. 1 the Funds are exempt from the requirement to prepare a Cash Flow statement on the grounds that the Funds are open ended investment funds and these Financial Statements include a Statement of Changes in Net Assets Attributable to Unitholders.

111

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 2. Principal Accounting Policies (continued) (h) Expenses All expenses other than those relating to the purchase and sale of investments are charged against revenue, on an accruals basis. However, in determining the amount available for distribution, a percentage of the total expenses will be transferred to capital for each Fund as detailed below. Sarasin IE EquiSar – Global Thematic (GBP) - 60% Sarasin IE GlobalSar – Dynamic (USD) - 80% Sarasin IE GlobalSar – Income (GBP) - 80% Sarasin IE GlobalSar – Cautious (GBP) - 80% Sarasin IE GlobalSar – Cautious (USD) - 80% Sarasin IE Sustainable Equity - - 80% Real Estate Global (USD) Sarasin IE GlobalSar – Dynamic (GBP) - 80% (i) Cash and cash equivalents Cash includes cash in hand and cash held with brokers and are valued at face value and any accrued interest where applicable. Margin cash represents the cash held with the broker Goldman Sachs. Cash in hand is held with Northern Trust (Guernsey) Limited.

112

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 3. Net capital (losses)/gains

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £Non-derivative securitiesGain on sale of Investments 12,071,548 19,169,095 2,533,256 3,431,675 2,022,896 2,426,159(Loss)/gain on revaluation of Investments (33,486,488) 14,857,832 (14,006,765) 8,536,285 (1,273,015) 3,037,681

(21,414,940) 34,026,927 (11,473,509) 11,967,960 749,881 5,463,840Derivative contracts

Loss on sale of Investments (387,458) (910,843) (1,313,972) (1,398,032) (1,327,147) (382,380)

Gain/(loss) on revaluation 299,988 (334,579) 571,489 (824,089) 343,683 (937,391)

(87,470) (1,245,422) (742,483) (2,222,121) (983,464) (1,319,771)

(Loss)gain on foreign currency movements (420,430) (38,000) (651,144) 24,302 (192,747) (106,828)Security transaction charges (31,551) (15,570) (35,208) (25,317) (29,007) (16,162)Net capital (losses)/gains (21,954,391) 32,727,935 (12,902,344) 9,744,824 (455,337) 4,021,079

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £Non-derivative securitiesGain on sale of Investments 1,575,922 3,319,936 828,404 1,669,999 343,723 181,918 5,145,776 9,635,363(Loss)/gain on revaluation of Investments (2,397,658) (114,884) (1,633,621) (50,251) (2,777,916) 3,322,331 (25,025,819) 14,181,139

(821,736) 3,205,052 (805,217) 1,619,748 (2,434,193) 3,504,249 (19,880,043) 23,816,502Derivative contracts

(Loss)/gain on sale of Investments (137,651) (1,001,527) (42,713) (417,987) 13,847 (154,210) (4,192,194) (1,293,485)(Loss)/gain on revaluation (201,095) 346,154 (277,307) 313,459 - - 1,704,056 (2,507,050)

(338,746) (655,373) (320,020) (104,528) 13,847 (154,210) (2,488,138) (3,800,535)

Gain/(loss) on foreign currency movements 37,578 (64,012) (126,236) (21,390) (31,050) (38,059) 744,346 (159,626)Security transaction charges (15,357) (24,495) (28,827) (31,172) (14,421) (41,696) (44,652) (17,040)Net capital (losses)/gains (1,138,261) 2,461,172 (1,280,300) 1,462,658 (2,465,817) 3,270,284 (21,668,487) 19,839,301




Dynamic (USD)


Dynamic (GBP)


Income (GBP)

Sarasin IEEquiSar -


The realised gains/(loss) from financial instruments represents the difference between the transaction price and its sale/settlement price. The unrealised gain/(loss) represents the difference between the transaction price, or the carrying amount of the financial instruments at the beginning of the year, and its carrying amount at the end of the year.

113

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 4. Revenue

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £Deposit Interest 4,380 18,892 8,569 19,299 1,947 4,914Interest on debt securities - - 1,638,503 2,091,846 4,499,935 4,526,737Dividends 2,836,966 3,286,506 2,983,556 2,523,274 1,554,084 956,622

Foreign exchange gain on income transactions 10,378 3,073 9,759 - 15,470 8,614

2,851,724 3,308,471 4,640,387 4,634,419 6,071,436 5,496,887

Dynamic (USD) Income (GBP)EquiSar - GlobalSar - GlobalSar -



01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £Deposit Interest 1,509 661 474 1,791 192 - 50,205 40,770Interest on debt securities 418,993 341,159 385,313 276,558 - - 2,317,011 2,776,023Dividends 368,873 541,240 433,974 408,003 968,459 959,474 4,904,229 3,970,198

Foreign exchange gain on income transactions 127 4,049 1,909 - - 1,520 9,091 19,010

789,502 887,109 821,670 686,352 968,651 960,994 7,280,536 6,806,001

5. Expenses

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

Notes £ £ US$ US$ £ £Payable to the manager, associates of the manager andagents of either of them:Manager's fee 15,16 2,762,943 3,270,857 2,654,210 2,875,380 1,890,148 1,864,486Other expensesAudit fee 8,413 15,347 12,618 9,273 11,537 6,734Other expenses 72,166 41,104 73,379 49,948 54,649 83,092Foreign exchange loss on income transactions - - 6,619 10,767 11,031 -

80,579 56,451 92,616 69,988 77,217 89,826Total expenses 2,843,522 3,327,308 2,746,826 2,945,368 1,967,365 1,954,312

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

Notes £ £ US$ US$ US$ US$ £ £Payable to the manager, associates of the manager andagents of either of them:Performance fee 12 155,776 1,967 258,312 - - - -Manager's fee 15,16 494,971 618,454 618,092 509,261 478,306 508,099 3,931,529 4,280,130Other expensesAudit fee 2,479 8,436 5,721 13,679 2,383 1,345 18,540 14,807Other expenses 53,048 16,367 79,468 20,542 87,120 26,207 102,365 71,041Foreign exchange loss on income transactions 680 - 1,768 1,364 1,936 - 5,207 -

56,207 24,803 86,957 35,585 91,439 27,552 126,112 85,848Total expenses 551,190 799,033 707,016 803,158 569,745 535,651 4,057,641 4,365,978

Audit fees pertain to fees due to KPMG for their audit of the Funds' books and records.

GlobalSar - GlobalSar - Sustainable Equity - Cautious (GBP)

Dynamic (GBP)

Dynamic (GBP)





GlobalSar -

Cautious (USD) Real Estate Global (USD)

Sarasin IEEquiSar -



Sarasin IEGlobalSar -Sarasin IE

114

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 6. Distribution policy As at each annual and interim accounting date, in respect of the year then ending, the net income available for allocation shall be allocated between Distribution Units and Accumulation Units in issue or deemed to be in issue of Sarasin IE EquiSar – Global Thematic (GBP), Sarasin IE GlobalSar – Dynamic (USD), Sarasin IE GlobalSar – Cautious (GBP), Sarasin IE GlobalSar – Cautious (USD), Sarasin IE Sustainable Equity – Real Estate Global (USD) and Sarasin IE GlobalSar – Dynamic (GBP. Distribution units are those which pay dividends while Accumulation units are those which do not pay dividends. As at the end of each calendar quarter, the net income available for allocation shall be allocated between Distribution Units and Accumulation Units in issue or deemed to be in issue of Sarasin IE GlobalSar – Income (GBP).

115

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 7. Finance Costs

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £

Income deducted on cancellation of units 349,796 407,941 441,989 393,057 305,484 223,220 Income received on issue of units (130,223) (113,894) (234,309) (576,821) (397,169) (294,701)Net adjustment for equalisation 219,573 294,047 207,680 (183,764) (91,685) (71,481)Distributions 410,047 384,407 929,817 1,150,580 4,127,029 3,687,374

Income accumulated during the period 765,580 551,008 2,400,366 2,409,727 1,148,618 1,231,097Total finance costs 1,395,200 1,229,462 3,537,863 3,376,543 5,183,962 4,846,990

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £

Income deducted on cancellation of units 86,954 57,785 32,498 29,304 106,420 199,841 1,026,660 430,000 Income received on issue of units (29,583) (15,652) (188,800) (35,376) (137,963) (86,843) (599,511) (781,567)Net adjustment for equalisation 57,371 42,133 (156,302) (6,072) (31,543) 112,998 427,149 (351,567)Distributions 218,693 252,197 145,625 65,284 57,961 26,281 1,910,007 2,391,274

Income accumulated during the period 293,725 313,229 563,292 367,672 628,699 541,046 3,245,993 2,898,024Total finance costs 569,789 607,559 552,615 426,884 655,117 680,325 5,583,149 4,937,731

8. Distributions and Accumulations

Distributions

Distributions have been declared in respect of the income units for the years ended 31 December 2010 and 31 December 2011, as follows:

XD Date Pay Date 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £07.04.10Amount 21/04/2010 - - - - - 859,348 Per Unit - - - - - 0.094005.07.10Amount 19/07/2010 - 276,287 - 626,387 - 956,234 Per Unit - 0.0858 - 0.5352 - 0.107105.10.10Amount 19/10/2010 - - - - - 956,506 Per Unit - - - - - 0.105005.01.11Amount 19/01/2011 - 108,120 - 524,193 - 912,285 Per Unit - 0.0355 - 0.4610 - 0.097505.04.11Amount 19/04/2011 - - - - 942,082 - Per Unit - - - - 0.0985 - 05.07.11Amount 19/07/2011 273,086 - 571,688 - 1,127,510 - Per Unit 0.1095 - 0.5448 - 0.1144 - 05.10.11Amount 19/10/2011 - - - - 1,075,728 - Per Unit - - - - 0.0983 - 05.01.12Amount 19/01/2012 136,961 - 358,129 - 981,709 - Per Unit 0.0596 - 0.3500 - 0.0911 -


Dynamic (GBP)


Sarasin IE Sarasin IE Sarasin IEEquiSar - GlobalSar - GlobalSar -

GlobalSar - Income (GBP)

Sarasin IE Sarasin IE Sarasin IEEquiSar - GlobalSar -

Global Thematic (GBP) Dynamic (USD)



116

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 8. Distributions and Accumulations (continued)

Distributions (continued)

Distributions have been declared in respect of the income units for the years ended 31 December 2010 and 31 December 2011, and 31 December 2011 as follows:

XD Date Pay Date 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £05.07.10Amount 19/07/2010 - 176,470 - 48,172 - 13,265 - 1,250,665 Per Unit - 0.0950 - 0.0890 - 0.0990 - 0.333005.01.11Amount 19/01/2011 - 75,728 - 17,112 - 13,016 - 1,140,609 Per Unit - 0.0629 - 0.0490 - 0.0580 - 0.290005.07.11Amount 19/07/2011 126,790 - 88,454 - 32,241 - 1,244,845 - Per Unit 0.1095 - 0.1016 - 0.1089 - 0.3258 - 05.01.12Amount 19/01/2012 91,903 - 57,171 - 25,720 - 665,162 - Per Unit 0.0821 - 0.0599 - 0.0798 - 0.2091 -

AccumulationsThe following have been transferred to the accumulated income re-invested account for the years ended 31 December 2010 and 31 December 2011 as follows:

XD Date 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £07.04.10Amount - - - - - 252,064 Per Unit - - - - - 0.130005.07.10Amount - 391,725 - 1,299,123 - 325,994 Per Unit - 0.0972 - 0.8273 - 0.149505.10.10Amount - - - - - 328,080 Per Unit - - - - - 0.148205.01.11Amount - 159,283 - 1,110,604 - 324,959 Per Unit - 0.0404 - 0.7218 - 0.139105.04.11Amount - - - - 261,130 - Per Unit - - - - 0.1418 - 05.07.11Amount 642,431 - 1,713,941 - 336,781 - Per Unit 0.1590 - 1.1065 - 0.1819 - 05.10.11Amount - - - - 280,915 - Per Unit - - - - 0.1426 - 05.01.12Amount 123,149 - 686,426 - 269,792 - Per Unit 0.0422 - 0.5115 - 0.1355 -

Dynamic (GBP)




Sarasin IE Sarasin IE Sarasin IEEquiSar - GlobalSar - GlobalSar -


117

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 8. Distributions and Accumulations (continued)Accumulations (continued)The following have been transferred to the accumulated income re-invested account for the years ended

31 December 2010 and 31 December 2011 as follows:

XD Date 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £05.07.10Amount - 187,477 - 232,722 - 374,404 - 1,546,412 Per Unit - 0.0992 - 0.0914 - 0.1093 - 0.586005.01.11Amount - 125,752 - 134,950 - 166,642 - 1,351,612 Per Unit - 0.0664 - 0.0508 - 0.0651 - 0.516705.07.11Amount 178,525 - 207,985 - 390,836 - 2,290,422 - Per Unit 0.0979 - 0.0785 - 0.1251 - 0.8055 - 05.01.12Amount 115,200 - 355,307 - 237,863 - 955,571 - Per Unit 0.0814 - 0.0722 - 0.0827 - 0.4227 -


Cautious (GBP) Cautious (USD) Real Estate Global (USD) Dynamic (GBP)

Sarasin IEGlobalSar - GlobalSar - Sustainable Equity - GlobalSar -

9. Accrued Income and Debtors

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £

Fixed interest receivable - - 484,516 595,804 1,845,558 1,800,961

133,364 93,572 134,515 109,584 85,158 72,086

Due from Manager 53,055 25,048 7,398 881,244 533,606 149,153

Due fom Broker 1,079,979 - - - - 151,886

1,266,398 118,620 626,429 1,586,632 2,464,322 2,174,086

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £

Fixed interest receivable 107,761 102,807 201,312 85,424 - - 848,885 1,014,230

42,383 28,151 48,464 18,478 120,626 73,175 391,689 219,531

Due from Manager 40,000 - 567,520 20,895 46,623 39,666 6,342 474,149

Due fom Broker 40,876 219,287 - - 56 - 3,277,683 -

231,020 350,245 817,296 124,797 167,305 112,841 4,524,599 1,707,910

GlobalSar -GlobalSar - GlobalSar - Sustainable Equity -

Dynamic (GBP)Cautious (GBP) Cautious (USD) Real Estate Global (USD)



Sarasin IE

Sarasin IE Sarasin IESarasin IE


Investment income receivable

Investment income receivable

118

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 10. Cash and bank balances

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £

Cash and bank balances 1,027,097 837,100 4,056,718 1,063,531 3,700,398 1,068,368

150,838 - 819,171 37,937 117,531 466,295

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £

Cash and bank balances 713,248 1,086,458 9,571,097 3,432,010 259,331 312,357 (3,509,996) 9,152,405

466,572 381,551 506,125 297,745 - - 999,297 7,069

Sarasin IE


Global Thematic (GBP) Dynamic (USD)

Sarasin IESarasin IE

Income (GBP)


Cash held at clearing houses and brokers

Sarasin IE

GlobalSar - GlobalSar - Sustainable Equity - GlobalSar -

Cautious (GBP) Cautious (USD) Real Estate Global (USD) Dynamic (GBP)

Cash held at clearing houses and brokers Cash and bank balances are held with Northern Trust (Guernsey) Limited (“NTGL”). NTGL is an indirect wholly owned subsidiary of the Northern Trust Corporation (“TNTC”). TNTC is publicly traded and a constituent of the S&P 500. TNTC has a credit rating of A+ (2010: AA-). Margin Cash is held with Goldman Sachs International and has a credit rating of A- (2010: A).

11. Creditors

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £

Due to Manager 494,316 8,782 85,144 235,563 51,404 2,645

Management fee accrual 155,403 227,975 170,441 211,349 131,651 128,911

26,245 53,021 28,407 48,610 27,720 37,260

Withholding tax payable 33,237 21,135 28,864 22,380 9,563 10,442

General expenses accrued 15,187 12,718 21,250 17,253 17,229 11,646

Audit fee accrual 8,593 17,100 14,819 10,620 8,521 7,500

Due to Broker 484,557 - - - 679,200 68,880

Spot contracts payable 960 - - - - -

1,218,498 340,731 348,925 545,775 925,288 267,284

Manager fee re custody and admin




119

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 11. Creditors - (continued)

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £

Due to Manager 7,499 85,671 - - - 21,275 198,575 25,316

Performance fee payable 12 155,776 1,968 258,312 - - - -

Management fee accrual 28,599 38,044 56,012 36,076 30,686 31,977 241,763 315,124

5,481 9,123 10,456 8,297 5,114 7,355 41,039 74,123

Withholding tax payable 3,401 3,421 5,842 3,386 24,524 20,322 45,645 34,126

General expenses accrued 12,114 8,713 18,156 9,319 14,520 10,955 26,000 17,920

Audit fee accrual 9,161 9,800 14,766 13,544 15,650 1,539 8,577 16,700

Due to broker 43,387 - 67,103 - - - - -

109,654 310,548 174,303 328,934 90,494 93,423 561,599 483,309



Manager fee re custody and admin

Sarasin IE

GlobalSar -

Dynamic (GBP)

GlobalSar - GlobalSar - Sustainable Equity -

12. Capital Expenses In respect of Sarasin IE GlobalSar – Dynamic (USD) an amount of $2,227,446 (31 December 2010: $2,343,564) has been transferred from the revenue account to the capital account. In respect of Sarasin IE GlobalSar - Income (GBP) an amount of £1,594,076 (31 December 2010: £1,534,963) has been transferred. In respect of Sarasin IE GlobalSar – Cautious (GBP) an amount of £455,765 (31 December 2010: £658,217) has been transferred. In respect of Sarasin IE GlobalSar – Cautious (USD) an amount of $584,642 (31 December 2010: $670,365) has been transferred. In respect of Sarasin IE Sustainable Equity – Real Estate Global (USD) an amount of $485,996 (31 December 2010: $469,984) has been transferred. In respect of Sarasin IE GlobalSar – Dynamic (GBP) an amount of £3,286,599 (31 December 2010: £3,509,820) has been treansferred These amounts represent 80% of the expenses of the relevant Fund which are deemed to be of a capital nature. In respect of Sarasin IE EquiSar - Global Thematic (GBP) an amount of £1,729,115 (31 December 2010: £2,006,046) has been transferred from the revenue account to the capital account. This amount represents 60% of the expenses of the relevant Fund which is deemed to be of a capital nature. 13. Taxation The amounts disclosed as taxation in the Statement of Total Return of each Fund relate solely to withholding tax suffered at source on income. All the Funds while domiciled in Guernsey were exempt from taxation in Guernsey under the provisions of the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989. Each Fund was liable to pay a fixed annual fee of £600, which is included within other expenses. Irish domiciled funds are not liable to tax in respect of income and gains, other than on the occurance of a chargeable event. A chargeable event includes any distribution or any redemption or transfer of share. A chargeable event does not include: (i) any transactions in relation to shares held in a recognised clearing system as designated by order of the Revenue Commissioners of Ireland; or (ii) an exchange of shares representing one Fund of the Company; or (iii) an exchange of shares arising on a qualifying amalgamation or reconstruction of the Company with another fund.

120

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 13. Taxation (continued) A chargeable event will not occur in respect of shareholders who are neither resident nor ordinarily resident in Ireland and who provide the Company with a relevant declaration to that effect. In the absence of an appropriate declaration, the Company will be liable to Irish Tax on the occurrence of a chargeable event. Capital gains, dividends and interest received may be subject to withholding taxes imposed by the Country of Origin and such taxes may not be recoverable by the Company or its shareholders. 14. Equalisation Equalisation is calculated by reference to prices prevailing on the dealing day on which units were purchased and, as such, represents the amount of income attributable to these units. Equalisation on these units is repaid with the first distribution after their issue or, if redeemed prior to this time, is included in the redemption proceeds. The income element of the issue and redemption prices is dealt with in the Statement of Total Return. For the purposes of United Kingdom taxation, equalisation is not liable to income tax but must be deducted from the cost of units for capital gains tax purposes. 15. Manager’s Fees In respect of Class A on each Fund the Manager receives a monthly fee equal to 1/12th of 1.50% of the mid-market value of the net assets of the Fund (notes 5 and 11). A proportion of the monthly Manager’s fee is consideration for the Trustee and Administration fees which are paid by the Manager. In respect of Funds holding positions with any Sarasin IE Fund, the value of the net assets are adjusted before the Manager’s Fee is calculated to avoid duplicating charges. In addition, the Manager will be entitled to receive a performance fee on both Sarasin IE GlobalSar – Cautious (GBP) and Sarasin IE GlobalSar – Cautious (USD) calculated as follows: Sarasin IE GlobalSar – Cautious (GBP) When the daily movement in the NAV per unit after adjusting for distributions is greater than the benchmark over the performance period; and when the NAV per unit (including any performance fee accrual and after adjusting for distributions) of the unit class is at least equal to the unit price at the start of the performance period; if the application of a performance fee to the NAV per unit, after adjusting for distributions, would cause a positive return to become negative, only the proportion of the performance fee that equates to that positive return would be levied, the benchmark being the Retail Price Index plus 3.5%. Any performance fee earned on shares that are redeemed during the Performance Period will not be returned to the relevant Fund during any subsequent period of underperformance. From the 1 January 2011 the performance fee basis changed and will be payable only when : i) the Net Asset Value per share of the Fund is greater than the Hurdle; and ii) the Net Asset Value (including any Performance Fee accrual and after adjusting for any distributions) per share of the share class is at least equal to the High Water Mark. The High Water Mark is reset at the end of the Performance Period, if and only if a performance fee is paid. If no performance fee is paid at the end of the Performance Period the High Water Mark will remain unchanged as of the end of the last Performance Period when a performance fee was paid. As at 31 December 2011 there was a performance fee payable of £12 (31 December 2010: £155,776).

121

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 15. Manager’s Fees (continued) Sarasin IE GlobalSar – Cautious (USD)) When the daily movement in the NAV per unit after adjusting for distributions was greater than the benchmark over the performance period; and when the NAV per unit (including any performance fee accrual and after adjusting for distributions) of the unit class was at least equal to the unit price at the start of the performance period; if the application of a performance fee to the NAV per unit, after adjusting for distributions, would cause a positive return to become negative, only the proportion of the performance fee that equates to that positive return would be levied, the benchmark being the 3 month US $ Libor plus 3%. Any performance fee earned on shares that are redeemed during the Performance Period will not be returned to the relevant Fund during any subsequent period of underperformance. From the 1 January 2011 the performance fee basis changed and will be payable only when : i) the Net Asset Value per share of the Fund is greater than the Hurdle; and ii) the Net Asset Value (including any Performance Fee accrual and after adjusting for any distributions) per share of the share class is at least equal to the High Water Mark. The High Water Mark is reset at the end of the Performance Period, if and only if a performance fee is paid. If no performance fee is paid at the end of the Performance Period the High Water Mark will remain unchanged as of the end of the last Performance Period when a performance fee was paid. As at 31 December 2011 there was a performance fee payable of US$1,968 (31 December 2010: US$nil). Performance fees crystallise on both Funds at 31 December each year. 16. Trustee’s Fees and Administrator’s Fee Until 30 June 2011 The Manager received a monthly fee for each Fund equal to 1/12th of 0.345% which was calculated on the same basis as the Manager’s fee described in note 15. This fee was revised in the Administrator agreement and Trust Deed on 1 July 2011 to equal 1/12th of 0.25%. which is calculated on the same basis as the Manager’s fee described in note 15. These fees are used to pay the Trustee and the Administrator. The Trustee fees in respect of Sarasin IE EquiSar Global Thematic (GBP) amounting to £55,263 (31 December 2010: £63,522), of which £33,158 (31 December 2010: £38,113) was transferred from the revenue account to the capital account as described in note 12, are paid by the Manager. The Administration fees in respect of Sarasin IE EquiSar Global Thematic (GBP) amounting to £397,343 (31 December 2010: £554,537), of which £229,857 (31 December 2010: £332,722) was transferred from the revenue account to the capital account as described in note 12, are also paid by the Manager. The Trustee fees in respect of Sarasin IE GlobalSar – Dynamic USD amounting to US$55,409 (31 December 2010: US$56,374), of which US$44,327 (31 December 2010: US$45,099) was transferred from the revenue account to the capital account as described in note 12, are paid by the Manager. The Administration fees in respect of Sarasin IE GlobalSar – Dynamic USD amounting to US$391,164 (31 December 2010: US$481,296), of which US$312,931 (31 December 2010: US$385,037) was transferred from the revenue account to the capital account as described in note 12, are also paid by the Manager. The Trustee fees in respect of SARASIN IE GlobalSar - Income (GBP) amounting to £45,311 (31 December 2010: £43,932), of which £36,249 (31 December 2010: £35,146) was transferred from the revenue account to the capital account as described in note 12, are paid by the Manager. The Administration fees in respect of Sarasin IE GlobalSar - Income (GBP) amounting to £315,852 (31 December 2010: £374,137), of which £252,682 (31 December 2010: £299,310) was transferred from the revenue account to the capital account as described in note 12, are also paid by the Manager. The Trustee fees in respect of Sarasin IE GlobalSar - Cautious (GBP) amounting to £10,013 (31 December 2010: £24,211), of which £8,010 (31 December 2010: £19,369) was transferred from the revenue account to the capital account as described in note 12, are paid by the Manager.

122

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 16. Trustee’s Fees and Administrator’s Fee (continued) The Administration fees in respect of Sarasin IE GlobalSar - Cautious (GBP) amounting to £75,035 (31 December 2010: £95,223), of which £60,028 (31 December 2010: £76,178) was transferred from the revenue account to the capital account as described in note 12, are also paid by the Manager. The Trustee fees in respect of Sarasin IE GlobalSar - Cautious (USD) amounting to US$12,256 (31 December 2010: US$9,940), of which US$9,805 (31 December 2010: US$7,952) was transferred from the revenue account to the capital account as described in note 12, are paid by the Manager. The Administration fees in respect of Sarasin IE GlobalSar - Cautious (USD) amounting to US$88,802 (31 December 2010: US$85,287), of which US$71,042 (31 December 2010: US$68,230) was transferred from the revenue account to the capital account as described in note 12, are also paid by the Manager. The Trustee fees in respect of Sarasin IE Sustainable Equity – Real Estate Global (USD) amounting to US$9,874 (31 December 2010: US$11,348), of which US$7,899 (31 December 2010: US$9,078) was transferred from the revenue account to the capital account as described in note 12, are paid by the Manager. The Administration fees in respect of Sarasin IE Sustainable Equity – Real Estate Global (USD) amounting to US$56,040 (31 December 2010: US$83,610), of which US$53,807 (31 December 2010: US$66,888) was transferred from the revenue account to the capital account as described in note 12, are also paid by the Manager. The Trustee fees in respect of Sarasin IE GlobalSar – Dynamic (GBP) amounting to £66,482 (31 December 2010: £85,732), of which £53,186 (31 December 2010: £68,586) was transferred from the revenue account to the capital account as described in note 12, are paid by the Manager. The Administration fees in respect of Sarasin IE Global Sar – Dynamic (GBP) amounting to £626,155 (31 December 2010: £727,971), of which £500,924 (31 December 2010: £582,377) was transferred from the revenue account to the capital account as described in note 12, are also paid by the Manager. 17. Dealing Commission The average rate for dealing commissions incurred relating to the purchases and sales within the portfolio during the year were 0.15% (31 December 2010: 0.18%) of the value of each transaction in respect of Sarasin IE EquiSar - Global Thematic (GBP), 0.15% (31 December 2010: 0.15%) in respect of Sarasin IE GlobalSar – Dynamic (USD), 0.10% (31 December 2010: 0.10%) in respect of Sarasin IE GlobalSar – Income (GBP), 0.19% (31 December 2010: 0.21%) in respect of Sarasin IE GlobalSar – Cautious (GBP), 0.15% (31 December 2010: 0.22%) in respect of Sarasin IE GlobalSal – Cautious (USD), 0.07% (31 December 2010: 0.06%) in respect of Sarasin IE Sustainable Equity – Real Estate Global (USD) and 0.15% (31 December 2010: 0.15%) in respect of Sarasin IE GlobalSar – Dynamic (GBP). 18. Reporting Fund Status New Offshore Funds legislation was introduced with effect from 1 December 2009. This amended the definition of an offshore fund and set out a new reporting fund regime to replace distributing fund status. The directors of the manager believe that the Funds will continue to be classed as Offshore Funds under the new definition and approval has been received from the HMRC for admission into the new reporting fund regime for the year ended 31 December 2011.

123

Sarasin IE Investment Funds Notes to the Financial Statements (continued) Note 19. Reconciliation of Net Assets Attributable to Unitholders

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 £ £ US$ US$ £ £

Capital account 107,280,262 171,310,315 95,499,516 128,204,231 129,059,951 121,672,615Revenue account 924,101 1,188,071 1,081,675 1,086,027 665,120 404,829Accumulated income 12,741,585 11,976,005 38,497,318 36,096,952 6,169,653 5,021,035

120,945,948 184,474,391 135,078,509 165,387,210 135,894,724 127,098,479

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 £ £ US$ US$ US$ US$ £ £

Capital account 21,978,662 28,812,509 49,885,077 26,411,231 21,077,621 20,728,486 148,675,120 210,550,007Revenue account 104,116 71,851 61,376 23,264 235,890 189,061 1,983,527 1,980,472Accumulated income 1,392,675 1,098,950 1,517,537 954,245 3,577,832 2,949,133 48,566,132 45,320,140

23,475,453 29,983,310 51,463,990 27,388,740 24,891,343 23,866,680 199,224,779 257,850,619


Dynamic (GBP)

Sarasin IE Sarasin IE Sarasin IEGlobalSar GlobalSar -

Global Thematic (GBP) Dynamic (USD) Income (GBP)EquiSar


Sarasin IE Sarasin IE Sarasin IEGlobalSar GlobalSar Sustainable Equity -

20. Related Party Transactions Sarasin Funds Management (Ireland) Limited ("the Manager") is regarded as a related party. Sarasin & Partners LLP ("the Investment Adviser") is also considered to be a related party. The fees of the Investment Adviser are paid by the Manager. The total amount payable in respect of the current year is disclosed separately in note 5. The fees payable to the Manager and the Trustee are explained in notes 15 and 16. The total amount payable in respect of the current year is disclosed separately in note 5. The amounts outstanding at the year end are disclosed in note 11. The following amounts due to the Investment Adviser remain outstanding at the year end and are included in other creditors.

Manager's FeeCurrency 31.12.2011 31.12.2010

Sarasin IE EquiSar - Global Thematic (GBP) GBP 155,403 227,975Sarasin IE GlobalSar - Dynamic (USD) USD 170,441 211,349Sarasin IE GlobalSar - Income (GBP) GBP 131,651 128,911Sarasin IE GlobalSar - Cautious (GBP) GBP 28,599 38,044Sarasin IE GlobalSar - Cautious (USD) USD 56,012 36,076Sarasin IE Sustainable Equity - Real Estate Global (USD) USD 30,686 31,977Sarasin IE GlobalSar - Dynamic (GBP) GBP 241,763 315,124 The directors of the Manager held no investments in the Funds as at 31 December 2011. It should also be noted that the following held units in the Funds as at 31 December 2011: Accumulation Units

Poppy Lilley Sarasin IE EquiSar – Global Thematic (GBP) 103 (Spouse of Guy Matthews)

124

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 20. Related Party Transactions – (continued) The following table shows investments made in other Funds’ managed by Sarasin & Partners LLP:

PercentageInvestment Currency Market Value Holding

GBP 1,677,270 1.39

GBP 7,868,000 5.79

GBP 257,250 1.10

GBP 368,850 1.57

GBP 3,815,434 1.92

Sarasin IE EquiSar - Global Thematic (GBP)Sarasin IE GlobalSar - Income (GBP)Sarasin IE GlobalSar - Cautious (GBP)


Sarasin AgriSar Fund Class A AccumSarasin Global Equity Income - Sterling HedgedSarasin AgriSar Fund Class B Income

Sarasin IE Real Estate Equity (GBP) Accum

Sarasin IE Real Estate Equity (GBP)

The following units were held by Bank Sarasin & Co Limited:

Income AccumulationUnits Units

Sarasin IE EquiSar - Global Thematic (GBP) 45,454 252,005Sarasin IE GlobalSar - Dynamic (USD) 637,278 506,022Sarasin IE GlobalSar - Income (GBP) 596,986 86,127Sarasin IE GlobalSar - Cautious (GBP) 297,254 424,547Sarasin IE GlobalSar - Cautious (USD) 133,776 1,788,104Sarasin IE Sustainable Equity - Real Estate Global (USD) 98,269 1,226,938Sarasin IE GlobalSar - Dynamic (GBP) 153,665 33,071 21. Investments The total cost of the investment portfolio for each Fund at year end was:

Currency 31.12.2011 31.12.2010Sarasin IE EquiSar - Global Thematic (GBP) GBP 110,075,878 140,431,119Sarasin IE GlobalSar - Dynamic (USD) USD 124,651,620 143,990,212Sarasin IE GlobalSar - Income (GBP) GBP 126,775,783 118,566,848Sarasin IE GlobalSar - Cautious (GBP) GBP 21,658,912 25,355,516Sarasin IE GlobalSar - Cautious (USD) USD 40,310,239 21,381,233Sarasin IE Sustainable Equity - Real Estate Global (USD) USD 25,045,009 21,234,094Sarasin IE GlobalSar - Dynamic (GBP) GBP 191,051,057 217,512,665 22. Disclosure of Dealing Arrangements The Manager may from time to time make arrangements with other persons under which those persons arrange for the provision to them of investment related services or other benefits the receipt of which is intended to assist them in the provision of Investment Management Services and be of benefit to the Funds. The Manager does not always make direct payment for such services but instead may place Fund business with those or other persons. The Funds will pay brokerage at rates not in excess of customary institutional full service brokerage rates and all transactions effected for the Funds will be such as to secure for them Best Execution, disregarding any benefit which might accrue directly or indirectly to the Fund from the services or benefits provided under such arrangements. No cash rebates will be retained by the Manager.

125

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 23. Risk Management The objectives, policies and strategy employed by the Manager in holding financial instruments are explained below: Sarasin IE EquiSar – Global Thematic (GBP) Investment Strategy It is the intention of the Manager that the bulk of the positions held in the Fund should be large and medium capitalisation stocks. However, there will also be holdings in some smaller stocks where they appear to hold particular growth opportunities. Sensitivity Analysis The Fund invests in equities. The exposure to equity markets is then reduced through the use of short futures and options. Exposure to foreign currencies is also altered through the use of forwards and occasionally options. The level of equity exposure varies over time depending on how positive the manager is; generally the level has been in the range of 90-100%. The Value At Risk (VaR) is independently calculated by RBS Luxembourg (RBSL) who evaluates the volatility and correlation of the Fund’s holdings over a period of 250 days. RBSL assess the sensitivity of each of the holdings to various factors, such as global stockmarkets, currencies, interest rates and commodity prices and then run a series of simulations to determine the responses of the overall fund. The VaR statistic adopted for Sarasin Funds is the “99% / 20-Day VaR” model. To calculate this figure RBSL produce one thousand, 20-day simulations, and the “99% / 20-day VaR” figure is the result exceeded only by the worst 1% of those 1,000 simulations. The “99% / 20-day VaR” for Sarasin IE EquiSar – Global Thematic (GBP) as at 31.12.2011 was 10.61%. Sarasin IE GlobalSar – Dynamic (USD) Investment Strategy The investment objective is achieved with a broadly diversified global fund covering all the world’s principal stock, bond and currency markets, enabling access to an entire worldwide balanced portfolio with a single investment product. As the objective is to seek a return in the base currency of this Fund, the Manager will, where deemed appropriate, undertake currency hedging. The Fund has no restrictions on the amounts it can invest in convertible bonds or warrants, fixed-interest or floating-rate securities (including zero bonds) and other interest-bearing instruments as defined in the Directive of the European Union on the taxation of investment income. Sensitivity Analysis The Fund invests in equities and bonds. The exposure to equity markets is then reduced through the use of short futures and options. Exposure to foreign currencies is also altered through the use of forwards and occasionally options. The level of equity exposure varies over time depending on how positive the manager is; generally the level has been in the range of 50-65%. The Value At Risk (VaR) is independently calculated by RBS Luxembourg (RBSL) who evaluates the volatility and correlation of the Fund’s holdings over a period of 250 days. RBSL assess the sensitivity of each of the holdings to various factors, such as global stockmarkets, currencies, interest rates and commodity prices and then run a series of simulations to determine the responses of the overall fund. The VaR statistic adopted for Sarasin Funds is the “99% / 20-Day VaR” model. To calculate this figure RBSL produce one thousand, 20-day simulations, and the “99% / 20-day VaR” figure is the result exceeded only by the worst 1% of those 1,000 simulations. The “99% / 20-day VaR” for Sarasin IE GlobalSar – Dynamic (USD) as at 31.12.2011 was 6.89%.

126

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 23. Risk Management – (continued) Sarasin IE GlobalSar – Income (GBP) Investment Strategy The Fund will be invested predominantly in fixed interest securities with the remainder in a mix of global equities, convertible bonds and cash. Sensitivity Analysis The Fund invests in equities and bonds. The exposure to equity markets is then reduced through the use of short futures and options. Exposure to foreign currencies is also altered through the use of forwards and occasionally options. The level of equity exposure varies over time depending on how positive the manager is; generally the level has been in the range of 0-25%. The Value At Risk (VaR) is independently calculated by RBS Luxembourg (RBSL) who evaluates the volatility and correlation of the Fund’s holdings over a period of 250 days. RBSL assess the sensitivity of each of the holdings to various factors, such as global stockmarkets, currencies, interest rates and commodity prices and then run a series of simulations to determine the responses of the overall fund. The VaR statistic adopted for Sarasin Funds is the “99% / 20-Day VaR” model. To calculate this figure RBSL produce one thousand, 20-day simulations, and the “99% / 20-day VaR” figure is the result exceeded only by the worst 1% of those 1,000 simulations. The “99% / 20-day VaR” for Sarasin IE GlobalSar – Income (GBP) as at 31.12.2011 was 2.32%. Sarasin IE GlobalSar – Cautious (GBP) Investment Strategy The fund pursues an active policy of allocating funds between the World’s bond, equity, collective investment schemes and public securities, derivatives and cash markets to secure a balance with medium term real return for unitholders. It is intended that derivatives will be used and held by the Fund principally as part of its capital protection measures but also in pursuit of the Fund’s objectives. Sensitivity Analysis The Fund invests in equities and bonds. The exposure to equity markets is then reduced through the use of short futures and options. Exposure to foreign currencies is also altered through the use of forwards and occasionally options. The level of equity exposure varies over time depending on how positive the manager is; generally the level has been in the range of 25-60%. The Value At Risk (VaR) is independently calculated by RBS Luxembourg (RBSL) who evaluates the volatility and correlation of the Fund’s holdings over a period of 250 days. RBSL assess the sensitivity of each of the holdings to various factors, such as global stockmarkets, currencies, interest rates and commodity prices and then run a series of simulations to determine the responses of the overall fund. The VaR statistic adopted for Sarasin Funds is the “99% / 20-Day VaR” model. To calculate this figure RBSL produce one thousand, 20-day simulations, and the “99% / 20-day VaR” figure is the result exceeded only by the worst 1% of those 1,000 simulations. The “99% / 20-day VaR” for Sarasin IE GlobalSar – Cautious (GBP) as at 31.12.2011 was 4.66%. Sarasin IE GlobalSar – Cautious (USD) Investment Strategy The fund pursues an active policy of allocating funds between the World’s bond, equity, collective investment schemes, warrants, government and public securities, derivatives and cash markets to secure a balance with medium term real return for unitholders. It is intended that derivatives will be used and held by the Fund principally as part of its capital protection measures but also in pursuit of the Fund’s objectives.

127

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 23. Risk Management (continued) Sarasin IE GlobalSar – Cautious (USD) Investment Strategy (continued) Sensitivity Analysis The Fund invests in equities and bonds. The exposure to equity markets is then reduced through the use of short futures and options. Exposure to foreign currencies is also altered through the use of forwards and occasionally options. The level of equity exposure varies over time depending on how positive the manager is; generally the level has been in the range of 25-60%. The Value At Risk (VaR) is independently calculated by RBS Luxembourg (RBSL) who evaluates the volatility and correlation of the Fund’s holdings over a period of 250 days. RBSL assess the sensitivity of each of the holdings to various factors, such as global stockmarkets, currencies, interest rates and commodity prices and then run a series of simulations to determine the responses of the overall fund. The VaR statistic adopted for Sarasin Funds is the “99% / 20-Day VaR” model. To calculate this figure RBSL produce one thousand, 20-day simulations, and the “99% / 20-day VaR” figure is the result exceeded only by the worst 1% of those 1,000 simulations. The “99% / 20-day VaR” for Sarasin IE GlobalSar – Cautious (USD) as at 31.12.2011 was 5.01%. Sarasin IE Sustainable Equity – Real Estate Global (USD) Investment Strategy The Fund will invest globally in listed shares and equity securities of companies whose activities are concentrated mainly in the real estate sector and which take ecological and social sustainability issues into account in their business’ operations. All REITs, equities, stocks, closed ended property investment funds or other companies managing properties must be quoted on a recognised stock exchange. The Fund can also invest in other indirect investments within the property sector. As the objective of the Fund is to seek a return in its base currency, the Manager will undertake a minimum of 50% currency hedging into the base currency. The Fund may not invest more than 15% of its net assets in convertible bonds or warrants, fixed-interest or floating-rate securities (including zero bonds) and other interest-bearing instruments. The Fund will not invest in any company whose principal business is the management, ownership or development of hotels or resorts or in business that operate contrary to ecological or social standards. Sensitivity Analysis The Fund invests in equities. The exposure to equity markets is then reduced through the use of short futures and options. Exposure to foreign currencies is also altered through the use of forwards and occasionally options. The level of equity exposure varies over time depending on how positive the manager is; generally the level has been in the range of 95-100%. The Value At Risk (VaR) is independently calculated by RBS Luxembourg (RBSL) who evaluates the volatility and correlation of the Fund’s holdings over a period of 250 days. RBSL assess the sensitivity of each of the holdings to various factors, such as global stockmarkets, currencies, interest rates and commodity prices and then run a series of simulations to determine the responses of the overall fund. The VaR statistic adopted for Sarasin Funds is the “99% / 20-Day VaR” model. To calculate this figure RBSL produce one thousand, 20-day simulations, and the “99% / 20-day VaR” figure is the result exceeded only by the worst 1% of those 1,000 simulations. The “99% / 20-day VaR” for Sarasin IE Sustainable Equity – Real Estate Global (USD) as at 31.12.2011 was 14.82%.

128

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 23. Risk Management (continued) Sarasin IE GlobalSar – Dynamic (GBP) Investment Strategy The investment objective is achieved with a broadly diversified global fund covering all the world’s principal stock, bond and currency markets, enabling access to an entire worldwide balanced portfolio with a single investment product. As the objective is to seek a return in the base currency of this Fund, the Manager will, where deemed appropriate, undertake currency hedging. The Fund has no restrictions on the amounts it can invest in convertible bonds or warrants, fixed-interest or floating-rate securities (including zero bonds) and other interest-bearing instruments as defined in the Directive of the European Union on the taxation of investment income. Sensitivity Analysis The Fund invests in equities and bonds. The exposure to equity markets is then reduced through the use of short futures and options. Exposure to foreign currencies is also altered through the use of forwards and occasionally options. The level of equity exposure varies over time depending on how positive the manager is; generally the level has been in the range of 50-65%. The Value At Risk (VaR) is independently calculated by RBS Luxembourg (RBSL) who evaluates the volatility and correlation of the Fund’s holdings over a period of 250 days. RBSL assess the sensitivity of each of the holdings to various factors, such as global stockmarkets, currencies, interest rates and commodity prices and then run a series of simulations to determine the responses of the overall fund. The VaR statistic adopted for Sarasin Funds is the “99% / 20-Day VaR” model. To calculate this figure RBSL produce one thousand, 20-day simulations, and the “99% / 20-day VaR” figure is the result exceeded only by the worst 1% of those 1,000 simulations. The “99% / 20-day VaR” for Sarasin IE GlobalSar – Dynamic (GBP) as at 31.12.2011 was 6.56%. a) Currency risk Certain of the financial assets and financial liabilities of each Fund are denominated in currencies other than the functional currency with the effect that the Balance Sheet and Statement of Total Return can be significantly affected by currency movements. The material currency exposures as at 31 December 2010 and 31 December 2011 are disclosed on the following page:

129

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 23. Risk Management (continued) a) Currency Risk (continued) Net M onetary Assets

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £AUD 2,085,616 5,655,889 153,816 2,730,703 - -CAD - - 3,876,155 4,449,599 2,060,303 1,568,909CHF 3,367,596 3,536,976 3,048,870 6,836,668 1,035,422 1,444,290DKK 3,444,336 4,957,980 2,914,567 3,056,404 - -EUR 18,548,081 31,324,882 15,389,980 18,469,487 4,833,869 10,427,023GBP - - 20,753,490 15,902,859 - -HKD - 3,402,880 - 2,690,488 - -IDR - - - 1,185,438 - 1,530,514JPY 13,173,939 20,903,367 8,100,940 9,872,294 404,565 398,496NOK - 1,927,631 - 2,554,141 492,983 3,362,706PHP - - - 450,877 - 483,908SEK - - - - 358,315 317,846SGD - - - - 383,479 809,993USD 68,251,756 91,309,431 - - 5,623,388 12,839,638ZAR 1,561,260 - 1,482,527 -Total 110,432,584 163,019,036 55,720,345 68,198,958 15,192,324 33,183,323

01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 - 01.01.2011- 01.01.2010 -31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £AUD 37,028 525,210 390,864 755,292 2,744,045 2,481,574 255,855 3,045,057CAD 252,859 - 995,320 274,068 346,246 269,091 - -CHF 292,883 1,582,326 595,119 1,471,182 187,064 132,183 4,284,076 10,204,177DKK 262,469 523,688 313,755 405,052 - 4,529,466 5,031,671EUR 1,231,809 3,241,232 3,124,609 2,947,074 1,772,958 2,201,867 17,924,552 29,900,686GBP - - 6,130,738 3,077,674 1,503,180 1,356,490 - -HKD - 617,354 - 581,139 2,577,569 3,233,778 - 3,810,335IDR - 294,374 - 219,838 - - - 1,853,581JPY 899,413 1,942,768 1,647,781 1,779,540 2,469,612 2,409,439 14,089,500 15,298,438KRW - 3,784 - - - - -NOK - 523,247 - 420,681 - - - 4,049,321PHP - 96,775 - 75,139 - - - 645,212SEK - - - 2,938 380,972 461,359 - -SGD - - - - 810,814 1,613,969 - -USD 5,860,353 9,459,558 - - - - 67,788,693 87,827,327ZAR 177,333 - 285,302 - - - 2,417,477 -Total 9,014,147 18,810,316 13,483,488 12,009,617 12,792,460 14,159,750 111,289,619 161,665,805

The amounts show n above take into account the effect of any forw ard contracts and other derivatives entered into to managethese currency exposure.


Dynamic (GBP)

EquiSar - GlobalSar - GlobalSarGlobal Thematic (GBP) Dynamic (USD) Income (GBP)


Sarasin IE Sarasin IE Sarasin IEGlobalSar - GlobalSar - Sustainable Equity


130

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 23. Risk Management (continued) (b) Interest rate risk profile of financial assets and financial liabilities The financial assets held by Sarasin IE Sustainable Equity – Real Estate Global (USD) and Sarasin IE EquiSar Global Thematic (GBP) are equity shares and other investments which neither pay interest nor have a maturity date. The financial assets held by Sarasin IE GlobalSar - Dynamic (USD), Sarasin IE GlobalSar – Income (GBP), Sarasin IE GlobalSar – Cautious (GBP), Sarasin IE GlobalSar – Cautious (USD) and Sarasin IE GlobalSar – Dynamic (GBP) include a number of bonds. The interest rate profile of the financial assets held by these five Funds together with the material cash and overdraft balances held in all the Funds at 31 December 2010 and 31 December 2011 were: Sarasin IE EquiSar - Global Thematic (GBP)

Currency

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ £ £ £ £

EUR (138) - (138) - -

GBP 1,214,599 3,030,939 1,214,599 817,379 - 2,213,560

JPY - 19,721 - 19,721 - -

USD (36,526) 1,700,901 (36,526) - - 1,700,901

Currency

31.12.2011 31.12.2010 31.12.2011 31.12.2010

% % Months Months

GBP - 27

USD - 11


Currency

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

US$ US$ US$ US$ US$ US$

CAD 3,864,303 4,434,964 - - 3,864,303 4,434,964

EUR 2,069,557 - - - 2,069,557 -

GBP 4,547,234 1,895,759 1,032,816 - 3,514,418 1,895,759

IDR - 1,139,314 - - - 1,139,314

JPY - 10,208 - 10,208 - -

NOK - 1,309,791 - - - 1,309,791

PHP - 442,378 - - - 442,378

USD 32,533,406 43,735,624 9,172,583 3,378,376 23,360,823 40,357,248

Fixed Rate Financial Assets Fixed Rate Financial Assets

Total Financial Assets Financial Assets

Floating Rate Fixed Rate

Financial Assets Financial Assets


Weighted Average Interest Rate Weighted Average Year for

Which Rate is Fixed

Total

131

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 23. Risk Management (continued) (b) Interest rate risk profile of financial assets and financial liabilities (continued)

31.12.2011 31.12.2010 31.12.2011 31.12.2010

% % Months Months

CAD 4.21 4.18 53 65

GBP 6.05 13.82 158 64

IDR - 6.56 - 44

NOK - 6.50 - 29

PHP - 5.00 - 55

EUR 4.64 - 98 -

USD 3.91 4.56 111 91


Currency

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ £ £ £ £

CAD 1,764,933 1,231,087 - - 1,764,933 1,231,087

EUR 3,109,277 7,345,285 208,587 - 2,900,690 7,345,285

GBP 101,071,003 76,674,500 15,525,357 2,737,765 85,545,646 73,936,735

IDR - 1,461,868 - - - 1,461,868

JPY 87 - 87 - - -

NOK - 2,346,617 - - - 2,346,617

PHP - 474,787 - - - 474,787

USD 2,871,953 8,927,932 1,023,834 - 1,848,119 8,927,932

Currency

31.12.2011 31.12.2010 31.12.2011 31.12.2010

% % Months Months

CAD 4.50 4.50 41 53

EUR 4.54 4.65 88 876

GBP 5.91 5.92 135 128

IDR - 7.05 - 136

NOK - 4.59 - 105

PHP - 5.00 - 55

USD 5.19 5.11 92 1,415


Currency

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ £ £ £ £

CAD 252,131 - - - 252,131 -

DKK - 47,929 - 47,929 - -

EUR 226,963 178,702 134,298 77,969 92,665 100,733

GBP 9,410,473 5,505,318 1,715,410 1,319,874 7,695,063 4,185,444

IDR - 281,153 - - - 281,153

JPY - 22,237 - 22,237 - -

NOK - 301,232 - - - 301,232

PHP - 94,957 - - - 94,957

USD 160,723 719,176 160,723 - - 719,176




Which Rate is Fixed






Which Rate is Fixed

Currency

132

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 23. Risk Management (continued) (b) Interest rate risk profile of financial assets and financial liabilities (continued)

31.12.2011 31.12.2010 31.12.2011 31.12.2010

% % Months Months

CAD 4.00 - 65 -

EUR 4.00 4.00 38 50

GBP 4.27 5.36 151 153

IDR - 7.01 - 34

NOK - 6.50 - 29

PHP - 5.00 - 50

USD - 7.44 - 69


Currency

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010


CAD 992,247 273,108 - - 992,247 273,108

EUR 589,195 312,298 - 47,778 589,195 264,520

GBP 2,632,995 680,866 258,204 (6,631) 2,374,791 687,497

IDR - 211,636 - - - 211,636

JPY - 30,374 - 30,374 - -

NOK - 224,536 - - - 224,536

PHP - 73,730 - - - 73,730

USD 25,481,449 7,989,850 12,068,565 3,658,594 13,412,884 4,331,256

Currency

31.12.2011 31.12.2010 31.12.2011 31.12.2010

% % Months Months

CAD 4.25 4.50 53 53

EUR 3.83 3.63 93 39

GBP 4.94 8.50 152 62

IDR - 6.42 - 41

NOK - 6.50 - 29

PHP - 5.00 - 50

USD 3.24 4.17 123 124


Currency

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010


USD 254,752 259,331 254,752 - -

SEK 57,605 - 57,605 - -


Which Rate is Fixed



Which Rate is Fixed





Weighted Average Interest Rate Weighted Average Year forCurrency

133

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 23. Risk Management (continued) (b) Interest rate risk profile of financial assets and financial liabilities (continued) Sarasin IE GlobalSar - Dynamic (GBP)

Currency31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ £ £ £ £EUR 835,555 2,297,765 217,786 - 617,769 2,297,765GBP 45,820,834 64,323,586 4,627,412 10,556,458 41,193,422 53,767,128IDR - 1,770,272 - - - 1,770,272JPY - 19,721 - 19,721 - -NOK - 2,329,494 - - - 2,329,494PHP - 633,050 - - - 633,050USD 659,975 9,341,084 659,975 3,552,723 - 5,788,361

Currency

31.12.2011 31.12.2010 31.12.2011 31.12.2010 % % Months Months

EUR 4.00 4.33 38 62GBP 5.33 5.33 169 157IDR - 6.99 - 34NOK - 4.43 - 52PHP - 5.00 - 50USD - 2.57 - 41

Weighted Average Interest Rate Weighted Average Year forWhich Rate is Fixed




c) Market price risk Market price risk arises mainly from uncertainty about future prices of financial instruments used in each Fund’s business. It represents the potential loss each Fund might suffer through holding market positions in the face of price movements. The Funds’ investment portfolios are exposed to market price fluctuations which are monitored by the Manager in pursuance of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the Scheme Particulars mitigates the risk of excessive exposure to any particular type of security or issuer. This is done by monitoring both net and gross exposure of the Funds on a daily basis. In addition, the ex-ante volatility and Value-at-Risk of the Fund is monitored daily and are calculated by a third-party risk analysis provider. This allows the holdings that contribute most to the particular Fund’s risk to be highlighted and ensures there is no undesirable concentration of risk in a particular stock, sector or country. d) Short term debtors and creditors Short term debtors and creditors are deemed immaterial to the Funds and have therefore been excluded from the financial instruments disclosures, other than the disclosure in respect of currency exposures. e) Fair value of financial assets and financial liabilities The carrying amount of financial assets and financial liabilities as presented in the Balance Sheet represents their fair value.

134

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 23. Risk Management (continued) f) Liquidity risk Liquidity risk exists when a particular instrument is difficult to purchase or sell. If a derivative transaction is particularly large or if the relevant market is illiquid (as is the case with many privately negotiated derivatives), it may not be possible to initiate a transaction to liquidate a position at an advantageous price, to assess or value a position or to assess the exposure to risk. An adverse price movement in a derivative position may also require a cash payment to counterparties that might in turn require, if there is insufficient cash available in a fund, the sale of investments under disadvantageous conditions. The primary source of this risk to the Funds is the liability to Unitholders for any redemption of units. This risk is minimized by holding cash and readily realizable securities and access to overdraft facilities. As at 31 December 2011 all redeemable units and liabilities presented on the Balance Sheet can be liquidated in less than one month (31 December 2010: 1 month). g) Counterparty and Settlement risk The Funds may enter into derivative transactions in over-the-counter markets, which will expose the Funds to the credit of their counterparties. The Funds may also be exposed to the risk of settlement default where the counterparty may default on its obligations to perform under the relevant contract. In the event of the bankruptcy or insolvency of a counterparty, the Funds could experience delays in liquidating the position as well as significant losses, including declines in value during the period in which the funds seeks to enforce their rights, the inability to realise any gains during such period and fees and expenses incurred in enforcing its rights. The Manager considers any risk of dealing through a broker to be minimal because delivery of stock by the funds is only made once payment has been received on a sale. On a purchase, payment would only be made once the stock has been received from the broker. If any party failed to meet their obligations then the trade would fail. Where cash is held in broker margin accounts these positions are monitored daily to ensure that the funds’ exposure to any individual counterparty is kept within strict limits. In addition each Fund has to comply with investment parameters as disclosed in the Scheme Particulars. Substantially all of the cash assets are held with Northern Trust (Guernsey) Limited (NTGL). Cash deposited with NTGL is deposited as banker and is held on its Balance Sheet. Accordingly, in accordance with usual banking practice, NTGL’s liability to the Fund in respect of such cash deposits shall be that of debtor and the Fund will rank as a general creditor of NTGL. The financial assets are held with the Custodian, Northern Trust Fiduciary Services (Ireland) Limited. These assets are held distinct and separately from the proprietary assets of the Custodian. Securities are clearly recorded to ensure they are held on behalf of the Fund. Bankruptcy or insolvency of the Custodian and or one of its agents or affiliates may cause the Fund’s rights with respect to the securities held by the Custodian to be delayed or limited. Both Northern Trust Fiduciary Services (Ireland) Limited and Northern Trust (Guernsey) Limited are wholly owned subsidiaries of Northern Trust Corporation. As at 31 December 2011 Northern Trust Corporation had a long term rating from Standard & Poor’s of A+. This risk is managed by monitoring the credit quality and financial positions of the Custodian the Fund uses. Northern Trust acts as its own sub-custodian in the U.S., the U.K., Ireland and Canada. In all other markets Northern Trust appoints a local sub - custodian. Northern Trust continually reviews its sub-custodian network to ensure clients have access to the most efficient, creditworthy and cost-effective provider in each market. h) Legal risk There is a possibility that the agreement(s) governing the derivative transactions and derivative techniques may be terminated due, for instance, to supervening illegality or change in the tax or accounting laws relative to those at the time such agreement was originated. There is also a risk if such agreements are not legally enforceable or the derivative transactions are not documented correctly.

135

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 24. Financial Derivative Instruments At the discretion of the Directors of the Investment Manager, the Funds may enter into financial derivative contracts such as total return swaps, swaptions, credit default swaps, forward contracts, futures, options (including currency options), interest rate swaps, repurchase agreements, convertible bonds and warrants for the purposes of protection, risk mitigation, currency hedging, alpha generation and exposure. As at 31 December 2011, the Funds have entered into options, forwards and futures contracts. Details of open financial derivative instruments at year end are disclosed in the Schedule of Investments. The risks related to these instruments are outlined in Note 23 Risk Management. The realised and unrealised gains/losses on derivative contracts for the years ending 31 December 2011 and 31 December 2010 are presented in Note 3 Net Capital Gains and Losses. 25. Portfolio Transaction Costs

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 £ £ US$ US$ £ £

79,669,682 82,428,450 96,040,577 90,874,714 116,025,401 89,846,557Commissions 138,645 149,559 101,083 92,085 13,633 14,092

36,738 20,193 55,103 33,352 21,824 25,903Total purchase costs 175,383 169,752 156,186 125,437 35,457 39,995Gross purchases total 79,845,065 82,598,202 96,196,763 91,000,151 116,060,858 89,886,552

Sales for the year before transaction costs 123,490,801 137,859,318 118,090,384 73,516,287 109,770,466 76,816,278Commissions (167,135) (171,254) (123,462) (81,589) (14,626) (10,530)Other costs (594) (4,816) (686) (1,726) (86) (1,354)Total sale costs (167,729) (176,070) (124,148) (83,315) (14,712) (11,884)

123,323,072 137,683,248 117,966,237 73,432,972 109,755,754 76,804,394

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 £ £ US$ US$ US$ US$ £ £

26,201,267 25,570,699 43,810,217 18,379,952 10,943,447 20,575,585 173,422,934 164,699,570Commissions 20,457 11,759 25,765 29,241 4,908 11,752 155,708 143,300

8,977 37,595 16,433 8,699 7,310 11,599 91,900 52,388Total purchase costs 29,434 49,354 42,198 37,940 12,219 23,351 247,608 195,688Gross purchases total 26,230,701 25,620,053 43,852,415 18,417,892 10,955,665 20,598,936 173,670,542 164,895,258

Sales for the year before transaction costs 31,861,977 36,104,384 26,156,585 22,769,677 7,504,879 26,811,623 205,090,479 138,216,795Commissions (26,061) (3,031) (26,817) (35,177) (5,239) (17,323) (187,328) (123,032)Other costs (282) (43,468) (241) (1,746) (1,043) (5,940) (1,333) (1,546)Total sale costs (26,343) (46,499) (27,058) (36,923) (6,282) (23,263) (188,661) (124,578)

31,835,634 36,057,885 26,129,527 22,732,754 7,498,597 26,788,360 204,901,818 138,092,217Total sales net of transaction costs

Other costs (including stamp duty)

Other costs (including stamp duty)

Purchases for the year before transaction costs

Purchases for the year before transaction costs

Analysis of total sale costs:

Analysis of total purchase costs:

Analysis of total purchase costs:

Analysis of total sale costs:

Total sales net of transaction costs

Dynamic (GBP)




Sarasin IE Sarasin IE Sarasin IEGlobalSar - GlobalSar - Sustainable Equity

Sarasin IE Sarasin IE Sarasin IEEquiSar - GlobalSar - GlobalSar

136

Sarasin IE Investment Funds Notes to the Financial Statements (continued) 26. Events during the year On 1 July 2011 the Guernsey Unit Trusts were redomiciled to Ireland as UCITS IV compliant Irish Unit Trusts. New prospectuses were issued on 1 July 2011 and revised on 7 December 2011. The Prospectuses were updated in December 2011 to reflect the fact that Sarasin IE GlobalSar – Dynamic (GBP) would no longer be registered for sale in South Africa. 27. Subsequent Events At a board meeting dated 16 September 2011 it was resolved by the board of directors of the Manager to approve the creation of the following classes: Class GBP Accumulating Units share class in Sarasin IE Sustainable Equity – Real Estate Global (USD). Class A EUR share class in Sarasin IE EquiSar - Global Thematic (GBP) 28. Contingent Liabilities and Commitments There were no contingent liabilities or commitments as at 31 December 2011 (31 December 2010: Nil).

137


Supplemental Unaudited Information The principal rates as at 31 December 2011 are as follows: Currency Sterling US Dollar US Dollar 1.5459 1.0000 Euro 1.1949 0.7730 Japanese Yen 119.6140 77.3750 Australian Dollar 1.5196 0.9830 Hong Kong Dollar 12.0085 7.7666 UK Sterling 1.0000 0.6469 Swiss Franc 1.4532 0.9400 Danish Krone 8.8978 5.7463 Canadian Dollar 1.5770 1.0182 Singapore Dollar 2.0090 1.2967 South African Rand 12.5185 8.0979 The following table lists details of the underlying collective investment schemes that the Funds invest in:

Underlying Collective Investment Scheme JurisdictionManagement Fee %

Performance Fee %

Brevan Howard Investment II - Macro FX Fund Luxembourg 1.00 20.00Findlay Park Latin American Fund Ireland 1.00 0.00Investec Series III - Emerging Markets Local Currency Debt Fund United Kingdom 0.75 0.00Jupiter - Global Convertibles Fund (SICAV) Luxembourg 0.90 0.00JO Hambro Capital Management - Emerging Markets Fund Ireland 0.85 15.00Muzinich - EnhancedYield Short-Term Fund Ireland 0.45 0.00Polar Capital Global Technology USD fund - Class I Ireland 0.75 10.00 Net Asset Value Per Unit The Net Asset Value per Unit at the year end date is determined by dividing the value of the Net Assets of the Funds by the number of Units in issue. The Net Asset Value per Unit is calculated using valuation principles which differ slightly from those used in preparing these financial statements. These differences relate to accounting treatments required with respect to unamortised preliminary expenses (for dealing purposes, these expenses are amortised over a period of time whereas for financial statement purposes, they are expensed immediately, in accordance with UK GAAP) and the use of bid prices (FRS 26) for financial statement purposes.

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ £ £

NAV per Unit per Valuation 23.08 26.40 57.20 61.91 10.76 10.96

Distribution payable on income units (0.02) (0.01) (0.15) (0.09) (0.08) (0.08)

Adjustment for bid prices re : FRS 26 (0.02) - (0.09) - (0.04) -

NAV per Unit per financial statements 23.04 26.39 56.96 61.82 10.64 10.88




138


Supplemental Unaudited Information – (continued) Net Asset Value Per Unit (continued)

31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010

£ £ US$ US$ US$ US$ £ £

NAV per Unit per Valuation 9.31 9.91 8.77 9.44 7.84 8.57 36.76 39.54

Distribution payable on income units (0.04) (0.02) (0.01) (0.01) (0.01) - (0.12) (0.18)

Other - (0.21) - (0.31) - - - -

Adjustment for bid prices re : FRS 26 (0.01) - (0.01) - (0.01) - (0.07) -

NAV per Unit per financial statements 9.26 9.68 8.75 9.12 7.82 8.57 36.57 39.36

Dynamic (GBP)

Sarasin IE

GlobalSar -



GlobalSar - GlobalSar - Sustainable Equity

Soft Commissions There were no soft commissions agreements entered into by the Manager on behalf of the Funds during the years ended 31 December 2011 and 31 December 2010. Stocklending No securities lending took place during the year ended 31 December 2011 (2010: nil).

139


Report of the Trustee for the period 1 January 2011 to 30 June 2011 (while domiciled in Guernsey) In respect of the period 1 January 2011 to 30 June 2011, we state that in our opinion, Sarasin Funds Management (Guernsey) Limited (the Manager), has managed the Sarasin CI GlobalSar – Dynamic (GBP) , Sarasin CI GlobalSar Dynamic (USD), Sarasin CI Equisar Sterling Global Thematic Fund, Sarasin CI GlobalSar – Income (GBP), Sarasin CI Sustainable Equity – Real Estate Global (USD), Sarasin CI GlobalSar – Cautious (GBP) and Sarasin CI GlobalSar – Cautious (USD) (the Funds):

a) In accordance with the limitations imposed on the investment and borrowing powers of the Funds

by the principal documents, by the scheme particulars and by the Protection of Investors (Bailiwick of Guernsey) Law, 1987; and,

b) In accordance with the provisions of the principal documents and the Collective Investment

Schemes (Class A) Rules 2002 and the Collective Investment Schemes (Class B) Rules 1990. BNP Paribas Trust Company (Guernsey) Limited St Peter Port Guernsey 26 March 2012

140


Report of the Trustee for the year ended 31 December 2011 of Sarasin IE EquiSar – Global Thematic (GBP), Sarasin IE GlobalSar – Dynamic (USD), Sarasin IE GlobalSar – Income (GBP), Sarasin IE GlobalSar – Cautious (GBP), Sarasin IE GlobalSar – Cautious (USD) and Sarasin IE Sustainable Equity – Real Estate Global (USD). We have enquired into the conduct of the Manager in respect of the Funds for the period 1st July 2011 to 31st December 2011, in our capacity as Trustee to the Trust.

This report including the opinion has been prepared for and solely for the unitholders in the Funds as a body, in accordance with the Central Bank of Ireland’s UCITS Notice 4, and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown.

Responsibilities of the Trustee Our duties and responsibilities are outlined in the Central Bank of Ireland’s UCITS Notice 4. One of those duties is to enquire into the conduct of the Trust in each annual accounting period and report thereon to the unitholders. Our report shall state whether, in our opinion, the Trust has been managed in that period in accordance with the provisions of the Fund’s Trust Deed and the Regulations. It is the overall responsibility of the Manager to comply with these provisions. If the Manager has not so complied, we as Trustee must state why this is the case and outline the steps which we have taken to rectify the situation. Basis of Trustee Opinion The Trustee conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its duties as outlined in UCITS Notice 4 and to ensure that, in all material respects, the Trust has been managed (i) in accordance with the limitations imposed on its investment and borrowing powers by the provisions of its constitutional documentation and the appropriate regulations and (ii) otherwise in accordance with the Fund’s constitutional documentation and the appropriate regulations. Opinion In our opinion, the Fund’s have been managed during the period, in all material respects: (i) in accordance with the limitations imposed on the investment and borrowing powers of the Fund by the trust deed and the Regulations; and (ii) otherwise in accordance with the provisions of the Trust Deed and the Regulations. Northern Trust Fiduciary Services (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2 Ireland 22 March 2012

141


Report of the Trustee to the unitholders

We have enquired into the conduct of the Manager, in respect of Sarasin IE GlobalSar – Dynamic (GBP) (“the Fund”), for the period 1st July 2011 to 31st December 2011, in our capacity as Trustee to the Fund.

This report including the opinion has been prepared for and solely for the unitholders in the Fund as a body, in accordance with the Central Bank of Ireland (“the Central Bank”) UCITS Notice 4, and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown.

Responsibilities of the Trustee

Our duties and responsibilities are outlined in the Central Bank UCITS Notice 4. One of these duties is to enquire into the conduct of the Fund in each annual accounting period and report thereon to the unitholders.

Our report shall state whether, in our opinion, the Fund has been managed, in that period, in accordance with the provisions of the Trust Deed and the Regulations. It is the overall responsibility of the Manager to comply with these provisions. If the Manager has not so complied, we as Trustee must state why this is the case and outline the steps which we have taken to rectify the situation.

Basis of Trustee Opinion

The Trustee conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its duties as outlined in UCITS Notice 4 and to ensure that, in all material respects, the Fund has been managed (i) in accordance with the limitations imposed on its investment and borrowing powers by the provisions of its constitutional documentation and the appropriate regulations and (ii) otherwise in accordance with its constitutional documentation and the appropriate regulations.

Opinion

In our opinion, the Fund has been managed during the period, in all material respects:

(i) in accordance with the limitations imposed on the investment and borrowing powers of the Manager and Trustee by the Trust Deed and the Regulations; and

(ii) otherwise in accordance with the provisions of the Trust Deed and the Regulations.

Citco Bank Nederland N.V. Dublin Branch 22 March 2012

audited annual report and accounts

Documents